Colette Holt & Associates Transportation Research Board 2014 Annual Meeting Disadvantaged Business Enterprise Committee Identifying Successful Practices

Colette Holt & Associates

Transportation Research BoardTransportation Research Board2014 Annual Meeting2014 Annual Meeting

Disadvantaged Business Enterprise Disadvantaged Business Enterprise CommitteeCommittee

Identifying Successful Practices in Identifying Successful Practices in thethe

FHWA DBE ProgramFHWA DBE Program

National Cooperative Highway Research National Cooperative Highway Research Project 20-95Project 20-95

Colette Holt & AssociatesColette Holt & Associates

13 January 201413 January 2014

Colette Holt & Associates 2

Research TeamResearch Team

Colette Holt & Associates (certified DBE & MWBE)Colette Holt & Associates (certified DBE & MWBE) Colette Holt, JD – Project Manager & Legal Counsel

Nationally recognized expert, educator & author on D/S/M/WBE issues

Conducted court-approved disparity studies & designed court-approved D/S/M/WBE programs for over 20 years

Expert for USDOJ in defense of the SBA 8(a) program Expert for SDOTs & other agencies in defense of D/M/WBE

programs Co-authored National Academy of Sciences Transportation

Research Board’s “Guidelines for Conducting a Disparity and Availability Study for the Federal DBE Program”



Colette Holt & AssociatesColette Holt & Associates Robert Ashby, JD – Legal &Program Analysis,

Stakeholder Outreach & Community Education Deputy General Counsel for Regulations & Enforcement for the

USDOT; counseled the Department for over 37 years Responsible for all DOT DBE regulations; advising state, local

and federal officials concerning DBE certification, goal setting and other DBE issues; and serving as liaison with the Department of Justice on DBE matters

Qualified expert witness; has offered testimony in federal courts on issues related to the USDOT DBE Program


Research Research TeamTeam

Colette Holt & AssociatesColette Holt & Associates Steven Pitts, Ph.D. – Economist & Statistician

Nationally recognized expert, educator & author on market issues regarding minorities for over 20 years

Associate Chair of the University of California at Berkeley’s Center for Labor Research & Education

Extensive experience using large databases, including Census Bureau files, to perform statistical analyses of labor & employment issues



Abaci Research & Consulting, LLCAbaci Research & Consulting, LLC Kim Stewart, MS – Quantitative &qualitative data

collection Most experienced researcher in the country on identifying,

collecting & preparing data for statistical analysis specifically for Disparity Studies & D/M/WBE program analysis

Extensive experience identifying & collecting data from agencies, prime contractors & subcontractors

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Research ObjectivesResearch Objectives

Identify Best Practices in the DBE Program to Identify Best Practices in the DBE Program to FacilitateFacilitate Broad participation of DBEs in SDOT contracts Successful “graduation” from the program Survivability outside the program

Address RFP Questions Concerning GraduatesAddress RFP Questions Concerning Graduates What are the numbers & percentage of DBEs who have

graduated in the last 5-10 years? What were the industry distributions of graduates?

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Research Objectives, cont.Research Objectives, cont.

How many have graduated for exceeding the PNW vs. the size cap?

How many graduates appealed decertification? What are successful graduates’ key characteristics? What has been firms’ experiences since graduation? What are the most important supportive services & what

additional services would be helpful?s

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Address RFP Questions Concerning All DBEsAddress RFP Questions Concerning All DBEs What are the numbers & distribution of successful

awardees by industry; size; minorities versus white females?

What are impediments & disincentives to graduate? What are the characteristics & performance measures of

successful non-graduated DBEs? What supportive services are most important & what

additional services would be helpful?

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Address RFP Questions Concerning PrimesAddress RFP Questions Concerning Primes What are the most commonly subcontracted items? Are primes aware of the SDOT’s DBE goal? How many different DBEs are used? How are subs selected? What information, methods & incentives would encourage

them to use new subs? Does the use of DBEs vary by the prime’s size &

industry? What is the effect of graduation on the use of DBEs?

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RFP Recommendation TopicsRFP Recommendation Topics

Best practices to expand the participation of DBEsBest practices to expand the participation of DBEs Effective supportive servicesEffective supportive services Effective management practices & approaches to Effective management practices & approaches to

support program successsupport program success DBE performance measuresDBE performance measures Effective data management practices to support Effective data management practices to support

programsprograms Further research to facilitate program Further research to facilitate program

improvementsimprovements

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Research Research PlanPlan

Survey SDOTs to Obtain:Survey SDOTs to Obtain: Information about all DBEs

Distribution across industries Information about gross receipts Racial, ethnic & gender breakdown of DBEs Likely DBE subcontracting industries Average DBE’s length of time in the program

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Research Research Plan, cont.Plan, cont.

Information about graduated DBEs Number & percentage who have graduated Basis for graduation: gross receipts &/or PNW Number & rate of appeals

Information about supportive services Types of services Mentor-protégé programs Participation rates Effectiveness of approaches

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Information about successful DBEs Graduated DBEs & still eligible firms Entrepreneurial success factors

Industry networks Supportive services programs Bonding & capital access Access to prime contract opportunities Mentor-protégé programs

Suggestions for enhancing DBE opportunities & graduation rates

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Survey DBEs to Obtain:Survey DBEs to Obtain: Information about the firm

Industry Size Location Years in business Racial, ethnic & gender ownership Work as prime, sub or both

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Information about graduation status Has it graduated

NAICS codes Basis: gross receipts or PNW

Appealed the decision Experiences since graduation If it still eligible, what factors impede graduation

Experiences with supportive services Types of services Types of service providers Most & least helpful

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Program suggestions Impediments to graduation Impediments to success Suggestions for SDOTs to:

Increase opportunities Encourage primes to use DBEs, unfamiliar DBEs &

graduated firms

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Survey Prime Contractors & Consultants to Obtain:Survey Prime Contractors & Consultants to Obtain: Information about the firm

Industry Size Location Years in business Racial, ethnic & gender ownership Work as prime, sub or both

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Utilization of subcontractors DBEs & non-DBEs

Scopes of work Size of contracts Criteria for subcontractor selection

Experiences with the DBE program Awareness of SDOT’s overall goal Utilization of graduated DBEs Solicitation factors for DBEs, unfamiliar DBEs & graduated

firms Market forces affecting DBEs, small firms & new market

entrants

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Survey Supportive Services Consultants to Obtain:Survey Supportive Services Consultants to Obtain: DBEs served

Number/year Distribution by size, industry & years in business Number that have graduated during last 5 years

Services offered Types Most utilized Most helpful

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Gather Data from Disparity StudiesGather Data from Disparity Studies Summarize DBE utilization by industries & race, ethnicity

& gender Review qualitative evidence

Traits of successful DBEs Effects of graduation Barriers to graduation Access to prime contracting opportunities Barriers to using new or unfamiliar DBEs

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Review DBE program best practices Management structures Race-neutral measures Data collection & monitoring systems Program success measures

Gather data from other sourcesGather data from other sources TRB reports Literature on entrepreneurial success USDOT guidance, handbooks, etc. Industry presentations & reports

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Produce Interim ReportProduce Interim Report Interview DBEsInterview DBEs

Selected for industry, location, race, ethnicity & gender Questions similar to surveys

Interview Prime ContractorsInterview Prime Contractors Selected for industry & location Questions similar to surveys

Interview SDOT PersonnelInterview SDOT Personnel Questions similar to surveys

Draft Preliminary & Final ReportsDraft Preliminary & Final Reports

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Anticipated Research ResultsAnticipated Research Results

Best PracticesBest Practices Expanding the industries & disadvantaged subgroups in

the DBE program Enhancing the factors supporting DBEs’ success Program design, structure, resources & management Effective Business Development services Performance measures for DBE growth & success in the

program & external markets Suggestions for Additional Research & Program Suggestions for Additional Research & Program

Data CollectionData Collection

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Implementation PlanImplementation Plan

Identify the Specific AudienceIdentify the Specific Audience Assess Potential Impediments to Successful Assess Potential Impediments to Successful

AdoptionAdoption Identify Potential LeadersIdentify Potential Leaders Determine Activities Necessary for Successful Determine Activities Necessary for Successful

ImplementationImplementation Develop Criteria for Measuring Progress & SuccessDevelop Criteria for Measuring Progress & Success

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Research ChallengesResearch Challenges

Obtaining Data from SDOTsObtaining Data from SDOTs Who has “graduated” & on what basis? Who has accessed supportive services & what was the

outcome? How to determine primes’ use of “new” firms, “graduated”

DBEs & make comparisons with non-DBEs? Obtaining Data from DBEsObtaining Data from DBEs

How to identify firms no longer in the programs? How to create pools of firms across industries, locations,

size, age, etc.?

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Research ChallengesResearch Challenges

Obtaining Data from PrimesObtaining Data from Primes How to increase cooperation (“what’s in it for them?”)? How to gather data on primes’ use of “new” firms,

“graduated” DBEs & comparisons with non-DBE subcontractors?

How to create pools of firms across industries, locations, size, age, etc.?

Obtaining Data from Supportive Services ProvidersObtaining Data from Supportive Services Providers What have been the SDOT’s record keeping

requirements? What, if any, success rubrics have been applied?

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Colette HoltColette Holt

3350 Brunell Drive3350 Brunell Drive

Oakland, CA 94602Oakland, CA 94602

773.255.6844773.255.6844

[email protected]@mwbelaw.com

www.mwbelaw.comwww.mwbelaw.com

Documents

Colette Holt & Associates Transportation Research Board 2014 Annual Meeting Disadvantaged Business Enterprise Committee Identifying Successful Practices