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In search of true contract disparity

By: Inka Bajandas//April 10, 2015//

In search of true contract disparity

Inka Bajandas//April 10, 2015//

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The Diversified Builders & Engineers Council is a volunteer-run group that aims to serve as a voice for contractors owned by Hispanics or other minorities (Sam Tenney/91视频).

When Ortiz & Associates President Buzz Ortiz looked at the Oregon Department of Transportation‘s most recent disparity study, he was baffled by the findings.

The study, published in 2011, analyzed whether there is a level playing field for minority- and women-owned firms in the transportation contracting industry and ‘s contracts. The information is used to help ODOT work within the federal Disadvantaged Business Enterprise program for its federally funded contracts. Findings also shape the state agency’s goals to hire minority- or women-owned firms for future contracts funded by the Federal Highway Administration.

鈥淭he results were that the Hispanic community was being overutilized in the goals,鈥 Ortiz said. 鈥淭he truth is it really hasn’t been overutilized.鈥

The study’s finding that the only minority groups ODOT had underutilized for transportation construction contracts were African American- and subcontinent Asian-owned firms is grossly inaccurate, he said. This led Ortiz, whose Sandy-based firm specializes in asphalt milling, to get involved with the Diversified Builders & Engineers Council (DBEc). He serves as board secretary for the volunteer-run group that aims to serve as a voice for Hispanic and other minority contractors.

Members have been adamant about exposing what they believe are shortfalls with the data collected in the 2011 ODOT disparity study. Together with other minority contractor groups they’re pushing for a more accurate representation of Hispanic contractors in an updated disparity study that’s under way and scheduled to be released next year. In particular, group members say the 2011 study gathered data only from a handful of larger, more successful Hispanic-owned contractors, producing skewed results that leave out smaller companies.

鈥淭hat’s what got this organization going was trying to bring to light that was happening,鈥 Ortiz said. 鈥淲e’re trying to say, 鈥榊ou have some numbers, but we don’t think they’re entirely correct.’鈥

Concerns raised by the DBEc and other minority contractor groups about the 2011 study results have led ODOT officials to seek more oversight for the 2016 study being compiled by private consultant Keen Independent Research, said Tiffany Hamilton, small business programs manager with the ODOT Office of Civil Rights. The agency is seeking extensive public input and will expand the study’s sources for information on minority- and women-owned firms, she said.

鈥淎 lot of folks said, 鈥楬ey, we didn’t 鈥 participate (in the 2011 study),’鈥 Hamilton said. 鈥淚t led to a lot of poking at the report 鈥 We can control the process and make sure we do it differently this time.鈥

The DBEc was founded two years ago by Marcela Alcantar. She’s president of Portland-based Alcantar and Associates, which provides support services and project management for the transportation industry. Alcantar said one reason she started the DBEc was to advocate for a more inclusive 2016 study.

鈥淲e realized the pot was being distributed unfairly,鈥 she said. 鈥淭here were improvements that can be done.鈥

She believes Hispanic-owned construction and engineering companies were misrepresented in the 2011 ODOT disparity study because the firms were not involved enough while it was being compiled. Through the DBEc, these firm owners have been much more vocal about the data collection process for the 2016 disparity study, she said. In addition to serving as DBEc board president, Alcantar is a member of an ODOT external stakeholders group that provides oversight for the updated study.

Alcantar said she and other DBEc members know personally that Hispanic-owned companies, especially smaller startups, continue to struggle to break into the transportation construction and design industries. ODOT’s minority contracting goals can help those firms get a foot in the door, she said.

鈥淲e don’t want a handout; we want to work for it,鈥 Alcantar said. 鈥淲e just want an opportunity. Just give me one opportunity to show that I can. We have tried to bid, but there is a system in place that we can’t break in.鈥

Serving as a voice for the Hispanic contractor community is one way that the DBEc can ensure the updated disparity study better represents those businesses, said Manuel Casta帽eda, the group’s board vice president and a member of the external stakeholders group. He’s the owner of Hillsboro-based PLI Systems, which specializes in soil stabilization projects.

When Casta帽eda approached ODOT with concerns about the 2011 disparity study, he learned that Hispanic-owned firms like his own weren’t involved.

鈥淲hat I was told is that we were not at the table,鈥 he said. 鈥淭here was no representation from the Latino community. If you’re not at the table, you’re going to be left out.鈥

National Association of Minority Contractors of Oregon board President Andrew Colas said the group backs the DBEc’s assertions that the Hispanic community was misrepresented in the 2011 disparity study.

鈥淚 tend to agree with the comments in regards to the overutilization of Hispanic contractors,鈥 he said. 鈥淭hat was a skewed result.鈥

It’s among concerns that members raised with ODOT, Colas said. This includes pushing for the 2016 study to widen where it collects data on minority contractors. The study should go beyond relying on numbers compiled by Short Hills, N.J.-based credit reporting firm Dun & Bradstreet because many smaller minority-owned firms don’t register with this listing, he said.

鈥淚t’s a real way to create a smaller pool,鈥 Colas said. 鈥淚f they use the and (Minority Business Enterprise) database, that would be the best pool.鈥

Hamilton said ODOT does intend to use this state directory to collect data for the 2016 study.

鈥淲e’re trying to get as comprehensive a list as possible,鈥 she said.

ODOT officials have listened to NAMCO and the DBEc and acknowledge that results from the 2011 study may have been inaccurate, Hamilton said.

鈥淲e’re engaging them and listening to what they have to say,鈥 she said. 鈥淛ust a couple of firms can throw the whole analysis off.鈥

Casta帽eda said he’s confident that the DBEc’s efforts to represent Hispanic contractors will pay off when a draft of the 2016 disparity study is released early next year.

鈥淚 have a feeling the results will be different,鈥 he said.



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