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ODOT considers selective use of race-conscious goals for construction contractors
Nov. 14, 2007
For more information, contact Michael Cobb (503) 986-5753
In January 2007, ODOT retained MGT of America, Inc., to conduct a Disadvantaged Business Enterprise Disparity Study. The study is the result of a May 2005 decision by the U.S. Ninth Circuit Court that said a state department of transportation could not have a race-conscious disadvantaged business program without a disparity study demonstrating inequity in contracting opportunities. A disadvantaged business, or DBE, includes small businesses that are at least 51 percent owned by women, minorities (including African Americans, Hispanic Americans, Native Americans and Asian Americans) or other individuals on a case-by-case basis.
Findings
- The disparity study analyzed ODOT’s procurement trends and practices from October 1999 through September 2007 (federal FY 2000 through federal FY 2007).
- The study commends ODOT for establishing an Emerging Small Business program and a Small Contracting Pilot Program; for maintaining a best-in-class data system tracking DBE utilization; and for creating a good DBE Website.
- The study finds that African American-owned and Asian American-owned firms were underutilized as subcontractors.
- The study provides evidence that ODOT could reinstate selective use of regional race-conscious goals for both African American and Asian American construction subcontractors.
Next steps
- ODOT plans to amend its existing program by reinstating a narrowly tailored DBE goals program on some projects in specific geographic areas, based on the findings of the disparity study.
- ODOT will continue to strongly encourage private contractors to utilize disadvantaged businesses in fulfilling ODOT contracts, and ODOT will continue to strongly encourage disadvantaged businesses to become certified and bid on ODOT contracts.
- ODOT will continue to closely monitor disadvantaged business participation in ODOT contracting, and ODOT is already expanding its system capabilities to cover professional service contracting data.
Download the study from the ODOT Office of Civil Rights Web site.
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