American DBE Magazine Spring 2014

SPRING 2014

CONCESSIONS INTERNATIONAL SEES BIG BUSINESS

Benefits of DBE Bonding

IN AIRPORT INDUSTRY

Idaho Contractor Sentenced

FOR FRAUD

Q&A with FHWA’s Warren Whitlock

AMAC Leaders Convene on Capitol Hill DBE Oscar Lewis Cleared for Takeoff

Russell Family: H. Jerome Russell Jr., Herman J. Russell Sr., Donata Russell Major and Michael B. Russell of Concessions International

50 Years of Industry Leading Experience

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Contents

FEATURES

Q&A with Warren Whitlock

Pressing Forward: Civil Rights in the FHWA

12 18 24

Concessions International

Conspiracy and Fraud in Treasure Valley

DEPARTMENTS 4 Publisher’s Page 7 6 17

DBE Program Spotlight: Heather Barry at DIA Business Development I: Beware of Contractor Violations Business Development II: Are you Protected?

TRANSPORTATION TRENDS: AVIATION, CIVIL/HIGHWAY AND TRANSIT 14 Highway Research Project to Study DBE Program Success 26 AMAC Convenes on Capitol Hill 30 MTA Building DBE Capacity ALSO IN THIS ISSUE 15 DBE Power Players: Oscar Lewis 34 DBE Power Players: Susan Wendt

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FROM THE PUBLISHER

The Intersection of Opportunity and Capacity Success as a DBE firm is often found at the intersection of opportunity and capacity.

While both thoroughfares are good on their own, the intersection of the two is the “sweet spot” of success. Having capacity without opportunity is akin to being all dressed up, but having nowhere to go.

Similarly, having opportunity without capacity is like winning a seven-day Mediterranean cruise with no money to get to the ship.

Some people believe that the two roads merge rather than intersect. This thought encompasses the belief that opportunity will lead to developing capacity, or that having capacity will automatically bring opportunity. However, experience has taught me that some firms having opportunity never develop capacity, and some firms with capacity are still denied opportunity. I believe the two roads are related, but still mutually exclusive.

This issue of American DBE Magazine has articles that consider both roads that must intersect on the way to success. On the road of opportunity, we examine the Small Business Development Program of the Metropolitan Transportation Authority in New York. MTA has implemented a Small Business Development Program that provides educational, technical assistance and prime contracting opportunities to qualifying small and DBE firms to provide the opportunity to build greater capacity. We also profile the Construction Careers Center High School in St. Louis, MO that is providing inner-city students the opportunity to gain valuable construction industry experience with the hopes that this will give them a head start toward careers in construction. In addition, we examine the work of Heather Barry, Director of Business Affairs at the Denver International Airport (DIA). Through DIA’s innovative approach to airport concessions management, DIA has excelled at providing opportunities for ACDBEs to own their own operations in their concessions program.

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This issue of American DBE also looks at the road to capacity by highlighting the success story of Concessions International, a firm that started as an ACDBE and through patience, persistence and wise decision making has become one of the largest airport concessions companies in the United States.

We also profile two DBE business owners, Susan Wendt and Oscar Lewis, who have taken bold and decisive steps to build the capacity for greater success in the transportation industry.

Finally, this issue of American DBE provides DBE/ACDBE firms, DBE program administrators, primes and other stakeholders engaging stories and information that will continue to develop either opportunity or capacity building for DBE/ ACDBE firms. I hope you enjoy.

Best wishes,

Shelton A. Russell, Publisher

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Spring 2014 Volume 2, Issue 2 Publisher: Shelton A. Russell Managing Editors: PR PROS, LLC Creative Director: William Cash

Because “That’s The Way We’ve Always Done It” Doesn’t Work Anymore.

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Business Development Over the past couple of years, I have seen an increase in cases in which minority contractors are being sued for violation of federal and state wage and hour laws. The basic scenario in these cases goes like this: Contractor hires Joe Smith as an “independent contractor” to assist with additional short-term work on an upcoming project. Mr. Smith works for the contractor for two to six months and then the project is completed.

Mr. Smith receives no benefits such as health insurance, retirement or overtime pay. While Mr. Smith is working for the contractor, he meets Ms. Jones who is fired by the contractor shortly thereafter. Ms. Jones believes that she was not paid for time which she worked before and after her normal work shift. She also believes that the company made automatic deductions for her lunch break even though she often was asked to meet with her supervisor or perform other work-related tasks during that time.

Mr. Smith and Ms. Jones consult with a plaintiff ’s attorney and eventually file a lawsuit against the contractor alleging that he was an employee of the contractor and that she was not paid for all the time that she worked. In this scenario, Mr. Smith and Ms. Jones are typically promised by the plaintiff ’s attorney that they won’t have to pay any attorney’s fees for bringing the lawsuit since the federal wage and hour laws allow the plaintiff to recover attorney’s fees if any violation of the federal wage and hour laws can be established. In addition, there are provisions which allow for the doubling of any wages that should have been paid to the contractor because overtime was not paid or was incorrectly calculated. The risk for the contractor becomes even greater when the decision is made to proceed with the lawsuit, because once the attorney identifies a company with possible violations of the wage and hour regulations, he/she will almost certainly interview others who have recently worked for the contractor and seek to file a collective action lawsuit on behalf of all the employees who have worked for the contractor during the previous three years. If the attorney is able to establish even minor violations of the wage and hours laws, it is likely that the contractor will eventually face either a judgment or a settlement well into the six-figure range. This has led to the filing of four times as many wage and hour lawsuits in 2012 as were filed 10 years ago. The construction industry ranks first in the list of industries that are most often targeted for these lawsuits.

Contractors, Beware of Wage Violations

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Even if the contractor avoids a lawsuit from a current or former employee, there is still a substantial risk that either the Department of Labor or the Internal Revenue Service (IRS) will initiate an investigation to ensure compliance with all the applicable federal and state laws and regulations. Federal officials have started to aggressively investigate and penalize employers that misclassify workers as independent contractors. In this era of tight federal budgets, the government is extremely eager to recover the estimated $7 billion in “lost” taxes resulting from the erroneous classification of “employees” as “independent contractors.” In its budget for 2013, the US Department of Labor sought to hire 50 percent more full-time investigators than they employed just five years previously. The IRS is also actively searching for companies that are avoiding payroll taxes by classifying “employees” as “independent contractors.” From 2010 until 2013, the IRS conducted 6,000 random audits to determine compliance with proper worker classifications and other employment tax issues. The IRS’s budget for 2013 budget included $403 million in new IRS enforcement activities, which was expected to raise $1.48 billion in revenue annually. The IRS’ 2013 enforcement budget also includes $200 million in additional examination and collection programs that will generate more than $1.1 billion in additional annual enforcement revenue by 2015. The IRS is expected to continue to hire more enforcement officers to investigate wage and hour violations and because certain industries, such as construction and trucking are believed to have a significant number of misclassified workers, these industries are likely to be scrutinized more heavily than others.

It is much less stressful (and cheaper) for the contractor to consult with an attorney and conduct a compliance audit before it is faced with a lawsuit or an investigation by either the Department of Labor or the IRS. Because there are strong incentives in place for both employee lawsuits and governmental investigations, prudent companies are taking proactive measures to protect themselves against these risks.

Although few companies relish the prospect of hiring an attorney to audit their compliance practices, the reality of the current environment for contractors is such that the risk of doing nothing is too great for a well-run contractor to bear.

Theodore C. (Ted) Edwards II is an attorney at Smith Moore Leatherwood Attorneys at Law in Raleigh, NC. Ted Edwards focuses his practice on providing counsel to owners, engineers and contractors regarding construction project administration and construction litigation.

He also advises clients on the development, operation and management of public transportation systems.

DBELO Program Spotlight:

Heather Barry Has DIA Commerce Hub Flying High “Heather Barry has DBE and ACDBE opportunities at the airport flying high since assuming her role as the Director of Business Affairs at Denver International Airport (DIA).” Barry is responsible for the DIA Commerce Hub, which develops policy that is responsive to the local, small and minority business community. The Commerce Hub also works to increase opportunity and capacity for the local business community and acts as an advocate for small businesses; championing efforts that promote a transparent business environment, increase access and position firms to bid on projects across all DIA departments.

Barry’s role includes working with DIA concessionaires on a wide variety of difficult issues where she often serves as an advocate to ensure direct communication with Denver’s Manager of Aviation, Kim Day. DIA’s efforts to expand opportunities for small and diverse firms have yielded impressive results.

“The Denver International Airport Commerce Hub is the business community’s connection to one of the busiest airline hubs in the world’s largest aviation market,” Barry said. “Since 2011, the Commerce Hub has worked to increase the opportunity and capacity of the local business community through contracting, educational programs, prime engagement and business development.”

Through the Commerce Hub, Barry and her team provide a variety of services and programs to create opportunities and develop diverse firms for greater opportunities at DIA. For instance, the Commerce Hub Business Education and Support Training (BEST) is designed to offer time-tested business tactics and DIA’s technical and administrative business expertise to better prepare firms to “hold and grow” contract

work at DIA. Throughout the year, BEST presents monthly engagement sessions on relevant business topics that address, identity and bring attention to strategies that encourage business development and opportunity at DIA. Upcoming BEST sessions will include topics such as:

Heather Barry meets with DIA Financial Analyst Carlos Ramos in the DIA commerce hub.

• The ABCs of the Airport Concessionaire Disadvantaged Business Enterprise Certification (ACDBE) • Essential Elements of the New 2014 Disparity Study • Airport Contract Legal Requirements • Business Tax Breaks and Employee Training Subsidies • Business Financial Review for Concession Operations • Concessions Best Practices • Kiosk/Retail Merchandise Units Business Opportunities • City Purchasing of Airport Goods and Services • City of Denver Business Certification Programs DIA is more than halfway finished with its Hotel and Transit Center program. The Transit Center will add a 519room Westin hotel and conference center, a public transit center that includes a commuter rail station connecting the airport with downtown Denver, and a centralized pick-up and drop-off for all Regional Transportation District (RTD) buses serving the airport, and a public plaza. The public plaza is Denver’s newest venue for programs and events where passengers and visitors can find entertainment, relaxation, art and restaurants. This project is expected to create more than 1,000 jobs in the Denver area during construction. This summer, the airport will reach the peak of construction, and will have about 1,000 workers on site each day. continued

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“The hotel and transit center program will generate an annual net profit of up to $5 million per year within the first five years of operation, with an estimated $1 million to $2 million in annual taxes,” Barry said. “This program is important for our community, and will create more than 200 permanent hotel jobs while helping to drive economic growth for the entire region.”

DIA’s concessions program has been established as one of the most progressive and diverse programs in the United States. Since DIA does not enter master concession agreements with large concession operators, many opportunities exist for local small and disadvantaged business owners to operate a concession at DIA. Currently the airport has more than 140 concessions operations. Of the $295 million generated by the concessions program last year (a record for the airport), more than $115 million was paid to certified ACDBE companies. “DIA is an incubator for local, small and minority-owned firms,” Barry said. “In the three years that the Commerce Hub has worked to build these critical partnerships, an estimated 15,000 business owners and members of

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the Denver Metro-Area community have been touched by these efforts in some way.”

To add to Barry’s busy workload, DIA is also host of the 2014 Airport Minority Advisory Council’s (AMAC) Business Diversity Conference in June. Although the event is primarily planned by AMAC, Barry and her team have invested significant time and resources to prepare for the conference.

“AMAC is our chance to showcase DIA and the airport’s efforts to attract and retain minority- and women-owned firms,” she said. Barry attributes her success at the airport to strong support from city officials and airport leadership, a dedicated staff, and great DBE and ACDBE firms that make her job enjoyable.

“I believe that the Commerce Hub has dramatically increased the visibility of DIA within the local business community, and has worked to find solutions to the barriers that some small businesses or minority-owned companies might experience when entering the aviation sector,” she said. “I’m proud to be a part of it.”

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PROUD TO GIVE BUSINESSES A LIFT CATS is proud to provide opportunities for businesses to create local jobs through the advancement of transit projects. CATS also seeks to create an environment that gives small and socially or economically challenged local businesses the opportunity to compete for publicly funded contracts by participating in the Small Business Opportunity (SBO) and the Disadvantaged Business Enterprise (DBE) Programs.

On the LYNX Blue Line project, for example, CATS spent $42.9 million with 38 DBE firms to build the new light rail system.

As the major provider of public transportation to Charlotte and the surrounding region, CATS relies on the communities we serve to build and operate the service every day. By working together on these new opportunities, we can all keep our communities moving in the right direction.

For more information, visit ridetransit.org.

Business Development

A

ny successful contractor knows that surety capacity is the lifeline of a successful business. Required by the government on public work projects since 1894, surety bonds are a risk transfer mechanism where the surety company assures the contractor will perform its obligation in accordance to the contracting documents. General contractors use surety for prequalification and risk mitigation on private work.

So why do small, emerging and minority contractors see bonding as an impediment and not a benefit? Perhaps they are not aware of the availability of bonding, value of surety bonds or the following benefits surety provides for Disadvantaged Business Enterprises (DBEs). Here are five reasons why bonding is important for DBEs: 1. Bonding provides payment assurance. The overwhelming majority of the work executed by DBEs is in the capacity of a subcontractor to a general contractor or prime contractor. Since subcontractors cannot lien most public works projects, the payment assurance that bonds offer subcontractors is critical. Many small contractors have fewer resources to absorb an event of non-payment, and no other product provides subcontractors and their lower-tier subs or suppliers a direct right of action; and assures payment to those contractors who cannot afford delay in payment for work performed.

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BENEFITS OF BONDS FOR DBEs

2. Having surety credit provides a competitive advantage. Having bonding capacity makes it less risky as a

contractor because there is the support of a licensed corporate surety that provides a rigorous prequalification process and a strong corporate balance sheet to handle performance and payment claims, if they arise. Suppliers often give better prices and terms to subcontractors with surety bonds. Since the majority of DBEs do not pursue bonding, qualifying makes a company more attractive to prime and general contractors that are looking to mitigate risk. DBEs can bid more work leveraging surety credit than they can simply using the strength of their own balance sheets. This allows companies to grow and thrive.

3. Bonding is available for qualified DBEs. Many licensed corporate sureties have “Fast Track” programs that

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give DBEs quick access to bonding if the program criteria are met. Also, the Small Business Administration has a Surety Bond Guarantee Program to assist contractors in getting bonding from surety companies.

The surety industry is committed to the success of small and emerging contractors, and in 2000, The Surety & Fidelity Association of America (SFAA) created the Model Contractor Development Program® to help small and emerging contractors prepare for and obtain bonding. The MCDP® consists of an educational component and bond-readiness component, during which participants work one-on-one with surety professionals to get their finances and bond applications in order. The MCDP® has been successful in many places across the U.S. In 2010, SFAA partnered with the U.S. Department of Transportation (USDOT) to implement the Bonding Education Program to assist DBEs in becoming “bond ready” and meeting requirements to bid on and win transportation-related construction and services contracts. Through these programs, participating contractors learn what they need to know to develop a trust-based relationship with a licensed surety, become bondable, and have the ability to bid on projects they otherwise would not. Since the USDOT BEP inception in 2010, 240 contractors have achieved bonds, totaling approximately $225 million.

4. Surety bond claim service. When a conflict arises, the surety’s services are invaluable, since it can make an independent assessment of the situation and help achieve the best outcome. The surety wants the contractor to successfully execute work, and often all that takes is the surety being there to assist with a cash flow or other short-term crisis. But if an investigation of the claims shows that the problem is greater, the risk shifts to the surety to remedy, up to the full bond penalty.

The surety puts the strength of its balance sheet behind the contractor so projects get completed and bills get paid in a timely manner.

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5. Sureties are uniquely positioned to provide an objective third-party analysis of the contractor’s business and financial picture and can provide invaluable guidance. A surety likely will say “no” on a

particular project if it is not in the contractor’s best interest to pursue the work, is outside the contractor’s area of expertise, or if the contract or bond contains onerous terms and condi-

tions. The surety assesses beyond simply winning work and examines the risk the project may present for that particular firm. Sureties have been underwriting contractors for more than 100 years. The surety provides insights into why contractors, both large and small, fail and often provide trusted advice on questions such as, “Should I team with a particular contractor?” or “Would a joint venture with ‘X Firm’ make sense?” Because surety professionals are out in the marketplace, they can provide excellent insight.

The bonding process may seem intimidating to DBEs at first, but with the willingness to learn and work hard, small, emerging, women and minority contractors will find that bonding is key to economic empowerment, sustainability, profitability, long-term success and legacy wealth.

The USDOT Bonding Education Program

The USDOT BEP partners with SFAA to help small businesses become bond ready. Becoming bondable is often a challenge for DBEs and the BEP is a hands-on, multi-component contractor development program designed to address the deficient business functions that may hinder contractors from building or becoming bondable and sustainable businesses.

In addition, the BEP develops individualized growth plans for each DBE and provides one-on-one sessions with local surety bonding professionals to help in assembling the materials necessary for a complete bond application. This program is tailored to businesses competing for transportationrelated contracts.

2014 PROPOSED SCHEDULE LOCATION

SBTRC

EVENT

DATE

Spokane, Wash & Boise Idaho Baltimore, MD Shoreview, MN Miami, FL New York, NY Orlando, FL Topeka, KS

Northwest Region Mid Atlantic Central Southeastern Region Northeast Region Southeastern Region Central Region

Program Kick-Off BEP Planning BEP Kick Off BEP Kick Off BEP Kick Off BEP Kick Off BEP Kick Off

April 24, 2014 Fall 2014 Fall 2014 TBD Fall 2014 Winter 2014 Winter 2014

Recent graduates from the bonding education program in Dallas, TX.

Joanne Brooks is Vice President and Counsel at The Surety & Fidelity Association of America. For more information, call (202) 778-3639 or email: jbrooks@surety.org.

Nyime J. Gilchrist, National Bonding Education Program Manager, USDOT, OSDBU (202) 366 -3403 nyime.gilchrist@gmail.com.

Courtesy of KYDOT

PRESSING FORWARD An interview with Warren Whitlock, FHWA Associate Administrator for Civil Rights In the fall 2013 issue, American DBE Magazine published an article titled, “USDOT Inspector General Completes DBE Program Audit,� which reported on a 40-page document addressing administration of the Disadvantaged Business Enterprise program. The Office of Inspector General (OIG) audit concluded that the USDOT does not provide effective program management for the multibillion-dollar DBE program and identified several weaknesses, which included a lack of standardized guidance, insufficient training, lack of accountability, inadequate oversight, and limited

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success in achieving program objectives for DBE participation on federally-funded projects. Subsequently, the OIG report offered eight recommendations for remedial action: 1) Develop comprehensive guidance and best practices for DBE program implementation by invoking DBE stakeholders from all levels. The guidance should provide direction for conducting certification processes, certification reviews and on-site project reviews.

2) Formally assign one department office the re-

sponsibility and accountability for integrating and managing the DBE program.

3) Develop program performance measures to regularly assess the DBE program and evaluate whether it is achieving its objectives.

4) Establish a centralized departmental data system for collecting and tracking DBE commitment and award information and require that the operating administrations implement procedures to ensure that recipients are accurately reporting DBE award and other financial information.

5) Maintain the relevant DOT website to ensure it contains current information and includes accurate DBE program contact information.

6) Develop an oversight and compliance plan with the operating administrations to identify specific, required oversight processes and reviews and ensure that a sufficient number of reviews are performed based on assessed risk.

7) Require that recipients track and regularly report utilization data to the operating administrations, including each DBE’s number of years in the program and the number of DBE subcontracts or prime contracts received since first becoming certified.

8) Require that the operating administrations work with recipients to develop ways to improve utilization rates and require the establishment of business development programs for firms that have not received DBE work for several years.

Under the leadership of Warren Whitlock, Associate Administrator for Civil Rights in the Federal Highway Administration, the Department has taken steps to address the issues identified in the OIG report and enact the recommendations set forth. Whitlock shared his insights and the following information in an interview with American DBE Magazine this spring.

1) What are the key initiatives your office is pursuing to advance the DBE program with recipients of FHWA funding?

Since my arrival to FHWA in September 2011, my team and I have emphasized a “back-to-basics” philosophy. That is, we want to ensure that each state has the required documentation to affect a solid DBE Program. This means that every state department of transportation (DOT) must have a current and approved DBE program plan, an organizational structure that aligns with the federal regulations and that the DBELO has independent access to the State Transportation

Agency’s (STA) Chief Executive.

Each state DOT must evaluate each DBE to ensure that a full analysis is performed to ensure the STA knows the appropriate training and development that firms need to improve their chances for success as bidders on construction opportunities.

STAs must really own their DBE programs to ensure that, in addition to meeting their DBE participation goal, the STA defines success.

Does the STA wish to increase DBE utilization? Graduate a certain number of DBEs from the DBE program? Have a number of DBEs attain bonding, or improve the number of DBEs that advance to prime contracting work? These are all examples of definitions we see as state DOTs owning.

2) What accomplishments are you particularly proud of during your tenure as the Associate Administrator for Civil Rights?

There are 12 accomplishments that FHWA’s Office of Civil Rights has achieved over the past few years: A) Building a more cohesive team, restructuring the organization and hiring talented and qualified staff who can effectively manage the current day issues faced by the Civil Rights Discipline and improving morale.

B) Creating better communication between the Office of Civil Rights and the FHWA’s 50 division offices around the nation, as well as establishing monthly civil rights webinars with them, state DOTs and other groups.

C) Inserting key civil rights deliverables, such as ADA transition plans, core civil rights implementation plans, into FHWA’s overall Strategic Implementation Plan.

D) A Title VI compliance finding against Beaver Creek, Ohio.

E) A DBE Compliance finding against Washington State DOT. F) Creating an annual DOT Civil Rights Symposium for external stakeholders.

G) Expanding the National Summer Transportation Institute to 46 states, including, for the first time, the US territories in Guam, American Samoa and the Northern Mariana Islands.

H) Creating a collaboration with the Federal Aviation Administration with the NSTI program, providing students with exposure to surface transportation and aviation.

I) Demonstrating value among FHWA’s program offices.

J) Creating a new relationship with OFCCP (Office of Federal Contract Compliance Programs) to ensure contractor compliance.

K) Building collaborations with the Federal Transit Administration to improve on joint operational practices to make it easier for state DOTs to manage programs like Title VI. continued on page 28

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Civil/Highway

Highway Research Project to Study DBE Program Success

A new research project sponsored by the National Cooperative Highway Research Program (NCHRP) plans to identify successful practices in the DBE program. The project will seek to determine practices by DBE firms, prime contractors and DBE program administrators that enhance DBE business growth and potentially lead to DBEs growing beyond the gross revenue size standards for DBE certification. The goal of the project is to produce a comprehensive report for use throughout the DBE program that will provide guidance and recommendations for strategies to improve the growth, capacity and long-term viability of DBE firms.

Although the DBE program has existed since the 1980s, this is the first research project that looks to identify the key determinants of DBE growth, success and eventual exit from the DBE program due to exceeding the program’s personal net worth or annual gross revenue size standards. Currently, these standards are a personal net worth (excluding business equity and personal residence equity) of less than $1.32 million, and a three-year average of business gross revenues of between $6 million up to $24 million depending on the primary industry of the DBE firm.

The consulting firm of Colette Holt & Associates (CHA)

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was selected to conduct the project. The CHA team includes attorney Colette Holt, a disparity study and DBE program expert based in Oakland; and former USDOT Assistant Attorney General Robert Ashby, who drafted the initial DBE regulation and served as the DBE program legal expert until 2012.

In addition, the research team includes an economist and data expert to conduct and review the survey data required for the project. CHA began the project in the fall of 2013 and is scheduled to conclude in the fall of 2014. After reviews from NCHRP and revisions, the report should be released in 2015.

The research plan calls for an extensive array of surveys throughout the DBE program industry to collect data from a variety of stakeholders. First, the team will survey state departments transportation agencies (STA) to gather information on the number, industries and ownership of firms that have exceeded the net worth or gross revenue size limitations, as well as other information that will help to assess the success and effectiveness of DBE development initiatives. Next, the team will survey prime contractors, DBEs and DBE Supportive Services consultants to gain additional information about successful program practices and input on what initiatives enhance DBE firm growth and development.

In addition to the surveys of industry stakeholders, CHA will interview selected STAs, DBEs, prime firms and supportive services consultants regarding DBE development issues and elicit recommendations for changes. Additional data will include results from STA disparity studies; DBE utilization data reported to FHWA from state transportation agencies; and other qualitative evidence to determine similar characteristics and experiences of firms in the DBE program.

Holt said, “We hope this research project will create best practices to help in DBE program administration throughout the industry.” She anticipates the specific results of the research to be fivefold: 1) Expanded knowledge of the industries and disadvantaged subgroups in the DBE program; 2) Greater understanding of the factors supporting DBEs’ success; 3) Improved DBE program design, structure, resources and management; 4) More effective business development services; and 5) Performance measures for DBE growth/success in the program and external markets.

“We really need DBEs, prime contractors and DBE Supportive Services consultants to participate in the research project and to respond to the surveys we send out. The quality and usefulness of the final report is contingent on the data we receive from the industry,” Holt said. She also encourages all program stakeholders to contact the research team at: colette.holt@mwbelaw.com to provide input or make suggestions about the research topic.

DBE POWER PLAYER Oscar Lewis: Cleared For Take-Off

By Jordan Taylor

It’s not everyday that an individual develops an idea with In 1992, after years of managing large-scale air traffic operathe potential to revolutionize an entire industry and change tions for corporations and international organizations, Lewis the status quo of the past century, but that is exactly what pondered the idea of working for himself. Nineteen years ago Oscar Lewis, U.S. Patent Inventor and president of The Lewis he launched The Lewis Company, a science and engineering Company, has done. firm focused on safety and expansion opportunities in the Like many of his friends, as a kid, Lewis used field of aviation. Lewis worked with the Small to look up in the southern Alabama sky and Business Administration office in Washington, see airplanes flying overhead. However, Lewis DC, visited different airport authorities across was determined to do more than just look. He the country, and eventually picked up his wanted to learn everything about airplanes, first customers handling progressively larger aviation, and be a part of what he saw in the projects in flight operations, air traffic control sky. As a teen, he spent time reading charts in and general aviation. Lewis spent close to four the General Aviation department of the local years researching and studying flight operaairport and invested $1.00 to take his first ride tions in the Maryland-DC area with the goal in a twin-engine retractable plane with a local of creating an idea to shave time off of airplane businessman, who took an interest in supportarrivals and departures, which would take airing Lewis and his career aspirations. craft off the runways faster; resulting in a 25 to Oscar Lewis, president of With an upbringing in a strong military fam35 percent increased capacity for airports and The Lewis Company ily, Lewis built his career and business in aviaairlines. Using model airplanes and more than tion, beginning with an undergraduate degree in Computer 30 years of aviation knowledge and expertise, he built the and Information Systems from Alabama State University; a LEWIS: Landing Exit Way Integrated System. This 21st Cenmaster’s degree in management from Houston Baptist Unitury New Generation Smart Runway System allows landing versity; commissioned as an officer in the United States Air aircraft to rapidly transition off the active runway and onto Force; and professional service as a distinguished air traffic control manager. continued on page 37

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ARE YOU PROTECTED?

Business Development Maybe you’ve got a pizza delivery business. Or maybe you’ve got a florist shop. Or perhaps you’ve got a pool service with employees going to customers’ homes. What if…

Scenario 1 – Your driver just hit another car while making a delivery. The police report finds your employee was under the influence. You had no idea that this person had a pattern of substance abuse. After all, he was fine during the interview. Or so you thought.

Now, the floral delivery was not made on time, your work on preparing the arrangements is for naught as the flowers were destroyed in the accident. There is an upset customer, your valuable reputation is at stake, and you may have a workers’ compensation claim against your company. Your employee may be in jail and unavailable to work, your insurance premium will skyrocket, and you may have no recourse!

Scenario 2 – Your pool service customer’s residence was burglarized when no one was home. It’s your employee that’s been arrested and charged with the crime.

You didn’t perform a background check and now your company can be sued!

In the first case, a pre-employment drug and alcohol screening test might have saved you and your business.

In the second scenario, a background check would have given you the peace of mind of knowing that your employees were thoroughly screened, avoiding potential risk which could bankrupt your company.

As a small business owner, the drive to be your own boss and enjoy the fruits of your own labor are compelling reasons to work hard, often with longer hours and shorter vacations than those in larger corporate environments. In terms of risk vs. reward, you know that your earning and growth potential are far greater on your own than working for someone else, but you assume potentially much greater risk.

Did you know:

• 60% of adults know people who have gone to work under the influence of drugs or alcohol.

• 74% of adult illicit drug users are employed, as are most binge alcohol users.

• 1 in 6 workers has a drug problem.

According to results of a National Institute on Drug Abuse (NIDA)-sponsored survey, drug-using employees are 2.2 times more likely to request early dismissal or time off; 2.5 times more likely to have absences of

By Dee Carlson, President and CEO, eight days or more; three times ARCpoint Labs of Altamonte Springs, FL more likely to be late for work; 3.6 times more likely to be involved in a workplace accident; and five times more likely to file a workers’ compensation claim – all of which drive up costs and drive down productivity. Few small businesses can afford these higher risks.

Described in dollars and cents, each workplace drug and alcohol abuser could easily cost your company between $11,000 and $13,000 per year in health care costs, injuries, damages and lost production time. With these hard facts, workplace substance abuse is an issue employers need to address.

Some job categories are more likely to have workers who have substance abuse issues. They present a high risk for occupational injuries and can include delivery drivers, construction, manufacturing, wholesale workers and others.

Here’s the point:

Smart small business owners know employees are often the company’s most valuable asset. They are an extension of you and your brand, and may ultimately determine your longterm success. As a result, it is important to have the highest quality employees you can find – before they join your payroll – to reduce your risk.

Drug and alcohol screening tests are readily available and very affordable. Surprisingly, less than 20 percent of small companies (those with fewer than 500 employees) currently use pre-employment testing. Equally startling, nearly 2 out of 3 companies do not use screening for existing employees to ensure they are staying drug-free.

Why? Small business owners are often reluctant to act on this information. Some are risk averse, some are conflict continued on page 29 American DBE

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relationships, he could have started an airport concessions business on his own.

However, Russell knew that this opportunity—while small and located far away at LAX—offered long-term benefits that outweighed this concession. Russell knew the experience and wisdom that would come from being mentored by Host International would surpass any benefit of being the sole owner of a concessions operation. Russell was right in this assessment. Thirtyfive years later in 2014, CI itself has become one of the 10 largest food and beverage airport concessionaires in Photo: Courtesy of JGlenn Photography the United States, with revenues exceeding $70 million, Above: Concesssions International/H&H more than 1,000 employees, Hospitality JV team celebrates grand opening of Fly Burger Bar Boutique in Atlanta’s Hartsfield and 50 operating locations Jackson International Airport. in nine different airports scheduled by year’s end.

CI President R. Anthony Joseph said, “From the beginning Mr. Russell knew he wanted three things from the JV partnership with Host International. First, he wanted he art of making a successful deal involves knowto be a full partner by making a financial investment. Second, ing how to make strategic concessions that allow he wanted a commitment from Host International to teach both parties to achieve a reasonable share of their CI the business. Third, he wanted his own operations, meaning objectives from the transaction. These strategic he wanted CI to have hands-on involvement in running the concessions may include negotiating the terms, timing, cost concession.” By making the decision to be a junior partner to or structure of the deal. However, the successful negotiator understands their long-term goal for the deal and ensures that a large airport concessionaire, Mr. Russell gained invaluable experience in how to run a successful concession operation. whatever concessions are made will still allow them to meet This culture of making wise and strategic business decisions their ultimate objective. remains with the company today as Donata Russell Major, Herman J. Russell Sr. (Russell), founder of Concessions the daughter of Herman J. Russell Sr. leads the company as International (CI), made this type of strategic concession in Chief Executive Officer. Major joined her father’s fledgling 1979. Russell, also the owner of H.J. Russell Construction— concessions company early in its development while CI was one of the largest minority-owned construction firms in the operating the location in Terminal 2 of LAX. “I had worked U.S.—made the strategic decision to become one of three for three years at IBM, but when I began working at CI, I fell members of a group that would become a Disadvantaged Business Enterprise (DBE) partner of Host International, the in love with it,” Major said.

Years later, Major still loves it and is taking the company in largest operator of food and beverage airport concessions in new directions and to even greater heights. In April 2014, CI the United States at the Los Angeles Airport (LAX). Surely, opened a new concession called Fly Burger Bar Boutique, a with Russell’s construction success and extensive business

MAKING A CONCESSION

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totally new concept featuring a partnership between CI and from just a compliance standpoint; we put a high premium on renowned Atlanta master chef and restaurateur Tom Catherpartnerships to maximize all elements of the relationship.” all. “It was exciting for us to give everyone a real taste of AtCI’s partnership with H&H Hospitality is an example of its lanta while traveling or coming home,” Major said. “Whether strong relationships with ACDBE partners. H&H Hospitality you’re visiting Atlanta for the first time or a local, we really is an ACDBE that opened in 2007 as a restaurant operator in wanted to create an opportunity to connect customers to the Metro Atlanta, but after learning about opportunities in the city through our unique food.” airport concessions industry, the company applied for ACDBE Joseph sees this type of concessions operation as the future certification in 2011. H&H then became the ACDBE partner direction of the industry. “There is a trend toward more local of CI in a winning bid to become the master food and beverconcepts and toward elevating the quality of what is offered at age concessionaire in Terminal B of the Hartsfield-Jackson airports. People want something different that is connected to International Airport. Kevin Holt, one of the partners of H&H the city from where they are traveling,” he said. said: “It’s absolutely been a great experience for us to partner CI is also pursuing other innovative concepts and experiwith CI. The airport concessions business is very different, so ences that continue to keep the company on the leading edge it is extremely valuable to be able to learn best practices from of the industry. Earlier in 2014, CI installed the first iPad-enan experienced concessionaire who has been in the business abled ordering system at the Hartsfield-Jackson International for decades. We look to use their success as a roadmap because Airport in the Samuel Adams Atlanta and Dos Equis Explorer they started as a DBE just like us. We look forward to growLounge. “It’s a learning experience for us to see how customing into other markets and someday being able to offer other ers react to it,” Joseph said.

ACDBEs the same opportunity given to us by CI.” Paying attention to customer reactions has led CI to success Joseph offers the following advice to ACDBE firms interestin the airport concessions industry. Although CI is not as ed in partnering with CI or becoming a successful concession large as other major concessions companies, Joseph credits operator. “ACDBEs must do their homework to understand the company’s success to having characteristics that make the world of concessions; it is different that running a restauup for the difference in size. He said: “We are in an interestrant outside of the airport. You must understand the financing position. As a family business, we are able to build strong ing, operations and ACDBE regulations. You must also know relationships with our customers because they know they are how to structure a deal and be able to bring some investment dealing with the leaders of the company. We also have the to the table. Finally, ACDBEs must understand the time comability to be flexible, responsive, and give our customer the attention and focus that some larger companies can’t do. In continued on page 21 addition, because of our family culture, we are able to hire quality people who give great customer service. We’re in the hospitality business.” Regional General Manager Kenneth Simon puts it more succinctly: “I’d put our people up against any operation here at Hartsfield-Jackson.

I think we have the best people out here.”

Partnerships with Airport Concessions Disadvantaged Business Enterprises (ACDBEs) are another area where CI excels. This makes sense given that CI started as a DBE firm in 1979.

Russell later bought the shares of his two partners and exceeded the size standard for the DBE program. Joseph said, “We look at the right partners as being essential to our success. We are always looking for good partners because we can leverage their capabilities to Customers use Concession International’s innovative iPad ordering system at Samuel Adams Lounge in Terminal help us be successful. We don’t look at it B of Hartsfield Jackson International Airport.

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5 STEPS

TO PREPARE FOR A DBE AUDIT As the operator of a DBE (Disadvantaged Business Enterprise) program, you know that DOT (Department of Transportation) has the right to audit your program. Some agencies will receive the dreaded notice that their program is up for an audit, but crossing your fingers and hoping that your agency isn’t one of the few that will be audited this year is not an effective strategy. You can take charge of your audit fate, and in the process reduce the stress and operational upheaval that comes with an audit, by following these 5 steps.

1

Stay up-to-date on the regulations. This

may sound like a no-brainer, but CFR 49 Part 26 is the source for complying with all things DBE and will be the key document that an auditor will base any assessment of compliance and deficiencies of your DBE program. If you have not dusted off the regulations in a while, take a moment to bookmark the electronic version in your favorite browser. To take the sting out of being overwhelmed by the legalese of the regulations, make it a practice to read one of the six sub-parts of the regulations per month. Awareness of the regulations and its updates is the start to having a compliant organization.

Ignorance in this instance is not bliss, so whether you are new to the DBE program or a seasoned pro, staying upto-date on the regulations will help you when audit time is near.

2

Read DBE final reports. The final reports of

DBE reviews conducted throughout the country are available for your review online (http://www. fta.dot.gov/civilrights/sitemap_14042.html) and offer a wealth of information to help you prepare for an audit. Reading these reports gives you insight into what aspects of the DBE program will be tested, as well as the strengths and weaknesses of the DBE compliance efforts of your peers. Use conclusions from the final reports

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to convince management to invest in needed resources to strengthen your program or pick up tips for cost-effective ways to carry out your DBE duties.

3

Document program performance. This is

not an “aha” tip for those in the know, but locating and pulling together the necessary files is half the stress of preparing for an audit. With documentation scattered across email accounts, paper files, proprietary software, attendance logs, etc., proving that your program is compliant can be a challenge if the audit paper trail does not exist or more often cannot be found.

Below are some solutions to common scenarios:

• DBELO meeting with the CEO on an informal basis?

Solution: Send a follow-up email to the CEO confirming the contents of the meeting.

• DBELO gives a presentation on how to do business with the agency at the local chamber?

Solution: Save the agenda.

• Having trouble collecting contract info from the primes?

• Serving as the DBELO is one of ten thousand other things on your plate?

Solution: Make the necessary time to systematically document how your job is done, if not for an audit, then simply do it for the sake of the next person who will have to fill your shoes upon you leaving the company. In the end, your employer will be grateful to you for taking the initiative on this task.

4

Self-assess your program’s performance.

First-responders go through emergency drills to hone their skills and ferret out breakdowns in critical systems and you should do the same. Take a sample of your vendor files and review them to ensure that the required contract language on prompt payment, retainage, legal remedies and nondiscrimination are present not only in your contract with the prime, but in the

contracts between the prime and subs. Below are some solutions to common scenarios:

• Cannot find evidence of the contracts between prime and subs?

Solution: Apply pressure using accounting or even legal to get the documents required by the regulations.

• The DBE section of your website has not been updated in years?

• Don’t have a DBE section on your website?

Solution: Work with your IT department to get the latest version of the program plan and goals posted.

5

Discuss and share. Whether you are a team

of one or 20, it is to your benefit to talk to others to share best practices and ways to make your DBE program more efficient and compliant. Find some fun and creative ways to exchange experience and ideas. Below are some solutions to common scenarios:

• Hear of an agency that really has their act together?

Solution: Invite them to share their experiences at a lunch-and-learn event and invite other agencies in your area.

• Know of an expert that is outside your local area?

Solution: Host a webinar to reduce the cost factor.

• Want to impress upon upper management or other departments in your organization the importance of the DBE compliance to overall agency funding goals?

Solution: Invite your regional DOT officer or a third-party consultant to give a team presentation.

An audit or review of your agency’s DBE program does not need to be cause for stress and alarm. Being proactive and creating a culture of compliance within your organization—combined with these simple tips—can go a long way in helping you ace your next DBE review.

Lorraine McCord is a certified internal auditor and consultant with Integrality Consulting in Dallas, Texas.

From left: H. Jerome Russell Jr., Donata Russell Major and Michael B. Russell attend the grand opening of Fly Burger Bar Boutique in April 2014, a new concession operation at Atlanta’s Hartsfield Jackson International Airport. The new restaurant is owned by the Concessions International/H&H Hospitality JV and renowned Atlanta Master Chef Tom Catherall. (Courtesy of JGlenn Photography)

Concessions Int’l: continued from page 19 mitment to really get in and learn the business.”

As CEO, Major is optimistic about the future for CI and the direction the company is taking. “We will continue to focus on opportunities in key airports across the country, but we are also looking at non-traditional concession opportunities outside of the airport. We want to build upon our previous business experience to expand existing markets and to diversify the company,” Major said.

It goes without saying that Major has enormous shoes to fill as she succeeds Russell, who is one of the most respected African-American entrepreneurs in the U.S. But Major has learned a great deal from her father, and is comfortable with her leadership role. She said: “In following someone like my father, I have learned that you don’t try to be who they are, you have to do it your way – understanding that you are different people and you have to be who you are. I feel fortunate and blessed to have a father who despite his humble beginning and disability with a speech impediment, overcame the obstacles to become who he is today. I learned a lot from my father, things like: Deliver upon what you commit to; never do anything dishonest - we are very aware of trying to do the right thing all the time; always do your best; admit your mistakes; and he was always big on ‘saving a penny,’ meaning to put some money aside so you can take advantage of opportunities when they arise.” continued on page 28

CCC

THE CONSTRUCTION CAREERS CENTER “Building Future Leaders of Tomorrow” By: Amikka Smith

S

t. Louis’ Construction students in general curriculum coursCareers Center (CCC) es and train students in construction. is not your average high The type of work students perschool. It is truly one of a form varies between courses, but kind. Instead of focusing one activity everyone participated solely on the traditional ‘Three Rs in this year was constructing playof Reading, Writing and Arithmehouses. The playhouse projects are tic,’ the professionals in this charter outdoor buildings that are roughly school teach their students about all 8’ x 10’ and represent scaled-down aspects of construction. versions of an actual house. Student The CCC was founded in 2001 by contractors put in the floor, put the Associated General Contractors down the pavement, and even put of Saint Louis (AGC of St. Louis) as on the roof; building everything a way to foster community developfrom scratch. ment and to fill a much-needed void Vice President of Professional assisting and preparing students for Development for AGC of St. employment in the construction field.

Louis and Acting Superintendent CCC is located next to the Peaof CCC, Paul Smith said AGC’s The Construction Careers Center was founded in 2001 by the body housing projects, and serves mission is to make a difference.

AGC of St. Louis. an urban student population from “The chapter recognized the need the St. Louis public school system. for an increase of diversity in the The mission of the school is to prepare students in grades 9 workforce. It was a key area, a key opportunity, and it was a through 12 by providing an excellent foundation in academgreat chance to provide an improved quality of life for a great ics, broad exposure to the construction industry, and relevant number of people,” Smith said. “AGC’s mission is to serve the career and technical education. With more than 180 students construction industry and to help improve diversity in the currently enrolled, CCC placement statistics estimate that area, and to make a difference in a lot of peoples lives.” approximately 13 percent of all graduates are employed in Nationwide, contractors added more than 19,000 jobs in construction-related fields.

March 2014 to hit the highest level of construction employAt CCC, students take core academic classes, and the only ment since June 2009. In addition, the construction jobless difference between other schools and this charter high school rate declined to a seven-year low of 11.3 percent, according is that CCC does not have any electives. Instead of electives, to the Associated General Contractors of America. So what students are taught about the construction industry. In the does this mean? It means the construction industry is doing past, data released by the Missouri Department of Elemenwell, but there is still a shortfall on labor and finding skilled tary and Secondary Education (DESE) revealed that students workers in the field. That’s why AGC of St. Louis developed a from CCC scored 61 percent proficient in Communication school like CCC—to teach students a much-needed skill.

Arts, and 56 percent proficient in Math, while the statewide For the past three years, Xavier Keys has been one of the top average was 54.6 percent and 54.2 percent respectively; reperforming students at CCC and says he has learned many flecting the school’s innovative ability to successfully educate valuable skills. “I’ve learned there’s a lot more that goes into

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making a house than just throwing wood together,” Keys said. “I’ve had shop class twice since I’ve been here, but I wasn’t familiar with all the tools in the shop.

After the playhouse, I really am [better prepared], because I have used almost every tool out there.” Keys is a junior who is planning to use the skills gained from CCC to assist him in becoming an engineer. “I took a blueprint class for two semesters and that definitely helped me; knowing how to use AutoCAD, then just having a construction class helps me with the whole basic fundamentals of conStudents attending the St. Louis Construction Careers Center. struction,” Keys said.

Students also take classes like shop, print reading, graphing AGC of St. Louis was founded in 1950, and is one of the 94 and even entrepreneurship courses. Despite the need and chapters of the Associated General Contractors of America. demand for this great program for young students, CCC still Representing over 400 construction, and construction-related has open slots for new students in the St. Louis area. To find firms, AGC of St. Louis provides a wide range of services to assist out more information about the school, call (314) 588-9991, its members, as well as the students of CCC. or log onto www.constructioncareerscenter.org.

The leading voice of the construction industry in the St. Louis metropolitan area.

Associated General Contractors of St. Louis

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6330 Knox Industrial Drive Suite 200 St. Louis, MO 63139-3039

ph. 314.781.2356 fx. 314.781.2874

business community & workforce, providing services both locally & nationally in the areas of: Business Growth • Economic Development • Education Reform Governmental Relations • Industry Diversity • Infrastructure Labor Relations • Professional Development Project Analysis • Safety • Transportation Quality People. Quality Projects.

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ment of Justice, along with its law enforcement partners are committed to rooting out greed and dishonesty in government contracting. I commend the thorough efforts of the dedicated attorneys and agents involved in this case.”

Treasure Valley Contractor Sentenced for Conspiracy, Wire Fraud and Tax Fraud Court Orders Forfeiture of Over $3 Million in Fraud Proceeds

Elaine Martin,

67, of Meridian, Idaho, the former president and majority stockholder of MarCon, Inc., was sentenced in February by U.S. District Judge B. Lynn Winmill to 84 months in prison followed by three years of supervised release for conspiracy, wire fraud and mail fraud, U.S. Attorney Wendy J. Olson and Assistant Attorney General for the Tax Division Kathryn Keneally announced. Martin was also sentenced to 24 months in prison for tax fraud and obstruction of justice followed by three years of supervised release. The sentences will run concurrent.

Judge Winmill ordered Martin to pay restitution of $98,825.20 to the Internal Revenue Service and $32,575.28 to the Idaho DBE Program. She was also ordered to pay costs of prosecution in the amount of $22,859.60.

The United States and the defendant entered into an agreement this week in which they stipulated that the correct forfeiture amount is $3,084,038.05. Martin paid the full amount via wire transfer to a U.S. Treasury account before sentencing.

Martin was convicted by a federal jury on September 19, 2013, of 22 criminal counts, including four counts of filing false individual and corporate tax returns, two counts of conspiracy to defraud the United States, five counts of wire fraud, five counts of mail fraud, one count of false statement, three counts of interstate transportation of property taken by fraud, one count of conspiracy to obstruct justice and one count of obstruction of justice.

“Elaine Martin’s conviction, sentence and forfeiture of more than $3 million clearly demonstrates that fraud and misrepresentations to government programs is the wrong way to run a business,” said Olson. “This office, indeed the entire Depart-

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Martin’s co-defendant, Darrell Swigert, 68, of Boise, a minority shareholder in MarCon, was found guilty of two counts of obstruction of justice and one count of conspiracy to obstruct justice. He was scheduled to be sentenced on March 19, 2014.

During the 26-day trial, the jury heard evidence that as early as 1997, Martin concealed a portion of MarCon’s business income by diverting customer payments for the sales of used materials into a separate bank account. Martin did not tell MarCon’s external accountant about the bank account or the unreported sales, and in fact organized the company’s business affairs to help conceal these sales from the external accountant, such as by personally overseeing the sales and invoicing of used materials, deleting call logs for these sales, and tracking the sales using a separate set of books. The jury also heard that Martin boasted about her failure to pay taxes on this income, referring to the separate bank account with the unreported income as a “slush fund.”

When the IRS initiated a civil audit, Martin lied to the IRS revenue agent and told him that all business income

was reported on MarCon’s tax returns. The evidence at trial, however, showed that neither MarCon nor Martin reported the income they received from the used material sales on their tax returns from 1997 through at least 2006.

The jury also heard evidence during trial that as early as 2000, Martin submitted false and fraudulent applications to have her construction company, MarCon, admitted and/or remain in two different federally funded programs, the U.S. Small Business Administration (SBA) 8(a) Program, and the Department of Transportation Disadvantaged Business Enterprise (DBE) Program. Both programs are designed to help economically and socially disadvantaged businesses compete in the marketplace. To be admitted into the program, the owner/shareholder that qualifies as socially disadvantaged must also demonstrate economic disadvantage, in part by having a personal net worth below a certain statutory cap.

According to evidence presented at trial, Martin took steps to artificially lower her personal net worth, such as by failing to report all of her income from MarCon, causing MarCon to pay for personal expenses such as renovations and landscaping for her home, and acquiring, holding and transferring assets into the names of nominees in order to appear to be economically disadvantaged. This allowed Martin’s construction firm, MarCon, to qualify for the DBE and SBA 8(a) programs. Martin also caused false and fraudulent tax returns to be filed for herself and MarCon, Inc., which did not report all of the income received by Martin or the company. The false returns were submitted in support of MarCon’s applications to the SBA 8(a) Program and DBE Programs for Idaho and Utah, along with false personal financial statements. The government presented evidence that Martin omitted, deleted, altered and miscategorized entries in MarCon’s financial books and records. Martin also concealed her role or relationship in other business entities that dealt with MarCon, Inc. The jury heard evidence that MarCon received more than $2.5 million in government contracts based on the company’s fraudulently obtained SBA 8(a) status, and that MarCon received more than $15 million in government

contracts based on the company’s fraudulently obtained DBE status in the states of Idaho and Utah.

The government presented evidence that in order to impede an IRS audit of MarCon and criminal investigation into Martin, Martin and Swigert conspired to obstruct justice by fabricating documents and making false statements that sought to conceal the true nature, source, and extent of property belonging to Martin. “[This] sentence should be a warning to those who seek to gain preference for federal contracting opportunities through deceit and lies,” said Inspector General Peggy E. Gustafson of the Small Business Administration. “Those who take part in such activity will pay the price for their crimes. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their commitment to seek justice on behalf of the American taxpayer.”

“Tax evasion is not a victimless crime,” said Stephen Boyd, IRS Criminal Investigation Special Agent in Charge for the State of Idaho. “Individuals who corruptly violate the law to further their business interests and intentionally evade paying their fair share of taxes undermine public confidence in our tax system and unfairly disadvantage businesses that play by the rules. As Martin and Swigert have discovered, operating outside the law and failing to pay taxes have severe consequences.”

“As evidenced by [the] sentencing, severe penalties await those that would seek to defraud DOT’s DBE Program,” said William Swallow, regional Special Agent-in-Charge of the DOT’s Office of Inspector General. “DBE fraud harms the integrity of the program and adversely impacts law-abiding, small business contractors trying to compete on a level playing field. Working with the Secretary of Transportation and other DOT leaders, and our law enforcement and prosecutorial colleagues, we will continue to protect the taxpayers’ investment in our nation’s infrastructure from fraud, waste, abuse and violations of law.”

The case was investigated by Internal Revenue ServiceCriminal Investigation, Federal Bureau of Investigation, the Office of Inspector General for the U.S. Small Business Administration, and the Office of Inspector General for the U.S. Department of Transportation.

The announcement was part of an effort by President Obama’s Financial Fraud Enforcement Task Force (FFETF), created in November 2009, to combat financial fraud crimes by waging aggressive, coordinated and proactive investigations and prosecutions. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, the task force is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud.

Since its formation, the task force has made great strides in continued on page 29 American DBE

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Aviation

AMAC leaders gather on Capitol Hill for Industry Day, April 1st. [Courtesy of Captured by Kevin]

AMAC approached the legislative day program with three primary objectives: First, to oppose cuts to the Airport Improvement Program (AIP), the main source of federal funding for airports to make capital improvements.

Second, to support an increase to Passenger Facility Charges (PFCs) used to fund airport improvements, with the caveat that the federal DBE & ACDBE program be applied to PFC funding. Third, to recommend revisions to the ACDBE program to facilitate greater participation of DBE firms in the rental car industry.

AMAC Industry Day Advocates for Small Many organizations claim to be strong advocates for woman- and minority-owned businesses. However, fewer can actually show the results of their advocacy efforts. The Airport Minority Advisory Council (AMAC) is one of those organizations. On April 1, 2014, more than 100 members and stakeholders of AMAC convened in Washington, DC with the goal of meeting with Capitol Hill legislators to advocate for the interests of Airport Concessions Disadvantaged Business Enterprises (ACDBEs). “Industry Day on Capitol Hill” is an annual event hosted by AMAC that provides disadvantaged and small businesses, airport administrators, and major concessionaires the opportunity to speak with a unified voice to legislators about express collective concerns regarding the FAA ACDBE Program.

To expand their reach and maximize contacts with legislators, the 100-plus participants in the Industry Day program were divided into 12 groups based on their state of residency.

This ensured that participants were meeting with representatives from their respective districts. The groups then split up and visited the offices of anywhere from four to eight congressional representatives to discuss the concerns of the group. At the end of the day, all of the groups reassembled to share the results of their meetings. AMAC plans to use this information to formulate the next steps to generate positive movement on the primary issues discussed on Capitol Hill.

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The AIP is a $3.2 billion federal grant program that can cover 75 to 90 percent of an airport’s costs for most airfield capital improvements. Airports receiving AIP funding of more than $250,000 in any fiscal year are required to administer a DBE program in accordance with Title 49 of the Code of Federal Regulations, Part 23. This includes setting goals for the utilization of DBE and ACDBE firms in the engineering, construction and concessions programs. AMAC’s concern is that decreased AIP funding for airports will create less opportunity for DBEs to participate in airport programs and projects.

The PFC program authorizes airports to implement a per passenger fee of up to $4.50 per flight. In 2013 alone, PFCs provided airports with a $2.8 billion funding stream. The PFC program is currently exempt from the federal DBE program, and therefore airports do not have to place DBE and ACDBE goals on programs and projects funded with PFC receipts. This current reality poses a serious threat, given that the White House administration’s proposed fiscal year 2015 budget greatly reduces AIP funding for airports, yet simultaneously allows airports to increase PFCs from $4.50 per passenger to $8.00 per passenger. While this proposal is potentially a net gain for major airports across the country, without DBE program requirements, this shift could lead to DBEs being shut out of opportunities at major airports.

Finally, the current federal ACDBE program for car rental

concessions has faced significant challenges in creating opportunities for ACDBE certified businesses. This is largely due to the car rental industry structure which consists of significant aggregate costs associated with operating a car rental business, and the vast portion of operating costs in the industry being for vehicle fleet purchases. These two factors hamper the industry from finding significant opportunities for ACDBE firms. AMAC has sought to address this issue by commissioning an industry work group of AMAC airport car rental representatives to design a comprehensive proposal to reform ACDBE and DBE program regulations to yield greater participation in airport car rental concessions. The work group completed its recommendations in 2013 and those recommendations were approved by AMAC’s Board of Directors in December 2013. During the Industry Day program, AMAC representatives shared the recommendations with legislators to gain support for changes to the ACDBE program for car rental concessions.

Businesses and DBEs

The annual Industry Day Program made a powerful showing on Capitol Hill and was well received by many legislators.

Some legislators have expressed interest in authoring legislation to support AMAC’s issues, and others have voiced support for the organization’s concerns. AMAC President Shelby M. Scales said: “Our initiative is to garner legislative support of a federally-funded impact study on the participation of DBE firms given the administration’s 2015 budget calls for AIP funding decrease of projects in large airports. Given the unofficial statistical DBE and ACDBE report provided by Mamie Mallory, FAA Assistant Administrator for the Office of Civil Rights, the current trends show decreasing DBE and ACDBE utilization and history has shown without regulatory requirements, recipients will garner little to no meaningful minority and women participation in procurement opportunities. Our leadership is prioritizing strategic alliances that support DBE participation on all procurement opportunities including PFC-funded projects.”

AMAC is also bringing these issues to local policymakers to bring about policies that will address funding issues while continuing to support greater opportunities for ACDBE and DBE firms in the aviation industry. These tangible results will be something AMAC can be proud of.

Our Recipe for success:

team up with

ACDBE Partners Like

Chip Joyner

The Real Chow Baby at Hartsfield-Jackson Atlanta International Airport

HMSHost and Chip Joyner team up to bring The Real Chow Baby to Hartsfield-Jackson Atlanta International Airport.

A staple of the Atlanta restaurant scene since 2005, The Real Chow Baby partners with HMSHost to open its first concourse location at the world’s biggest airport. “HMSHost is a great company to work with. They were a mentor of mine for a number of years while I was coming up in the restaurant business. HMSHost has really been a fantastic partner,” says Chow Baby co-owner Chip Joyner. The Real Chow Baby offers a hearty menu of farm-fresh produce, meats and seasonal fish, sizzled in zesty Asian-inspired sauces. For more information, contact busdev@hmshost.com.

The Real Chow Baby co-owner Chip Joyner

www.hmshost.com Joyner_SM.indd 1

HMSHost is the recipient of six Airport Revenue News Awards for Outstanding Food & Beverage Operator.

5/15/13 1:38 PM

Pressing Forward: continued from page 13 L) In 2013, we held the first Civil Rights “boot camp” for FHWA Civil Rights Specialists since 1999. We can never perform enough training.

3) We are aware of the ongoing investigation in Washington State regarding the Alaskan Way Viaduct project. What are some lessons learned that are important for DBE program administrators to understand?

State DOTs must be diligent in selecting prime contractors to perform construction work. Prime contractors must abide by their contractual obligations to ensure fair and honest opportunities for DBEs to compete.

4) What’s your vision for the role of your office going forward?

FHWA’s Office of Civil Rights is transforming itself into a policy implementation and guidance office. We are developing new roles to provide support and guidance to the rest of the agency to ensure that state DOTs fully understand how to manage their respective Civil Rights programs. We continue to reorganize and hire talented staff, and continue to collaborate with our sister agencies within USDOT. 5) How do you see the role of DBE Supportive Services in helping DBEs better compete for work on DOT-assisted projects?

FHWA’s Office of Civil Rights is requiring state DOTs to develop business development programs to improve the quality of business analysis, training and opportunities for DBEs. 6) How do you see your office increasing the accountability level of STAs with regard to DBE program areas such as compliance, good faith efforts and prompt payment since these are areas often cited by DBEs as problems in the program?

With regard to the DBE program, there is no subject-matter expert better than Martha Kenley, FHWA’s national DBE program manager. Martha and her team are working hard to

Concessions Int’l: continued from page 21 H.J. Russell has transitioned all three divisions of his conglomerate family business to his three children. The oldest (Major) leads CI, while her brothers H. Jerome Russell Jr. and Michael Russell lead the real estate development and construction company respectively. Major said, “We started the transition very deliberately when he resigned as CEO. He moved out of the building, although he has an office nearby.

He still remains as chairman, but each year he is a little less

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ensure that all the agencies’ civil rights specialists fully understand how to manage the work of external recipients. This includes performing compliance reviews, providing webinars to internal and external stakeholders and performing site visits to ensure the program is running efficiently.

7) How is your office working to address the issues raised in the OIG’s recent investigation and recommendations for the administration of the DBE Program?

Under the leadership of Administrator Victor Mendez, FHWA was the first USDOT agency to develop an Action Plan in response to the DBE OIG Audit. We had already implemented many of the recommendations prior to the report’s release, but we continue to work with U.S. Transportation Secretary Foxx’s office and our sister agencies to improve the program.

8) How does the future look for the DBE program over the next 3-5 years?

We are very encouraged by the improvements we are making to the DBE program to ensure greater utilization; having states define success of their DBE programs and working to improve the viability of small business participation in the nation’s infrastructure.

9) What other information would you like to share with stakeholders in the DBE program? For the DBE

program to thrive, more capacity must be created for DBEs who are ready, willing and able to perform work in heavy highway. Utilization rates of DBEs must increase to ensure that more DBE firms have an opportunity to participate in infrastructure development. More opportunities must be created in the professional services side of the business.

More scrutiny must be employed by state DOTs in certifying DBEs, along with improved training with metric-based outcomes. Also, DBEs must take advantage of the opportunities being provided by this federal program. The federal government can only do so much to create opportunities – DBEs must also help themselves by demonstrating the highest levels of integrity, professionalism, quality, value and endurance.

visible. However, he does come in occasionally for our quarterly financial meeting, and we still call upon him if we need him.”

Making a short-term concession to gain a long-term benefit is the mark of a wise and savvy business person. Through patience, strong family values, integrity and ‘saving a penny,’ Russell and now his daughter Donata Russell Major have grown CI from a single location ACDBE partner, to one of the largest airport concessions operations in the United States.

Are You Protected?: continued from page 17 averse. Many simply have a need to be liked by everyone, so they are unwilling to make difficult choices, even at the risk of hurting their businesses.

Is it worth the risk of having substance-abusing or dishonest employees in your company? These are the employees who often take unplanned or extended absences. Not only do you assume more risk with these employees, but you have more costs associated with them. These costs may include temporary workers, overtime, business disruption, lags in product delivery and customer satisfaction. Imagine how much your company could save if these hidden costs were reduced.

The NIDA study concludes that employers who have implemented drug-free workplace programs have experienced: • improvements in morale and productivity • decreases in absenteeism • decreases in accidents • decreases in downtime • decreases in turnover, and • decreases in theft Remarkably, employers with longstanding programs report better health status among employees and family members and decreased use of medical benefits by these same groups,

potentially enabling them to qualify for lower premiums.

Companies with drug-free workplace programs may also qualify for incentives, such as decreased costs for workers’ compensation and other kinds of insurance.

With programs geared to the health and well-being of the workforce, small businesses can now more easily reduce risk and concentrate on business growth with pre- and post-employment screenings.

Fraud: continued from page 25 facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.

Used by permission of U.S Dept of Justice, U.S. Attorney’s Office – District of Idaho. 2014

GOETHALS BRIDGE — CONSTRUCTION PARTNERING OPPORTUNITIES Partnering Opportunities

The Goethals Bridge Replacement Project is a design-build project for the Port Authority of New York & New Jersey (the Authority). The project will replace the existing Goethals Bridge which spans the Arthur Kill River on I-278 connecting Elizabeth, New Jersey and Staten Island, New York.

Kiewit-Weeks-Massman, AJV (KWM) has been selected by the Authority to design and build the new Goethals Bridge.

oncrete, Masonry, and Paving C Design/Consulting Electrical Work/Utilities Fencing and Railings Maintenance of Traffic Marine Services Quality Control Services and Supplies Surveying Trucking Miscellaneous Building and Bridge Demolition And many more!

If your DBE firm would like to apply to participate, please use our website as a resource, www.goethals-kwm.com.

Diversity Contract Manager, 470 Chestnut Ridge Road, Woodcliff Lake, NJ 07677 (201) 571-2571 KWMdivcontracting@kwmjv.com Kiewit-Weeks-Massman, AJV is An Equal Opportunity Employer

Transit Many DBE entrepreneurs and business development professionals know that effective mentoring programs can often seem just like programs offering grant funding to small businesses – many have heard of them, but few have seen them actually work as advertised. Although the federal regulations for the DBE program in 49 CFR Part 26 provide the basic guidelines for establishing a Mentor – Protégé Program, the “devil is in the details” in creating a program that truly

to do business with MTA. The innovative approach involves MTA providing direct mentoring to firms, instead of relying on large contractors to provide mentoring services. MTA’s Small Business Mentoring Program (SBMP) and Small Business Federal Program (SBFP) allow firms to pursue smaller sized prime contracts while simultaneously learning MTA’s processes and systems to become a larger contractor in the future. In addition, these two mentoring programs include rigid application requirements, mandatory classroom training, bonding assistance and a capital access program administered by Carver Federal Saving Bank (the

MTA Development Programs Build DBE Capacity achieves the goal of helping DBEs develop capacity and succeed as contractors. This devil in the details often raises its horns in relation to creating mutually beneficial, ethical and effective mentoring relationships between DBE firms and prime contractors. This is because a DBE firm often aspires to become a prime contractor; therefore a prime contractor has little incentive to participate fully in developing a future competitor—a true conflict of interest for all but the most secure large contractors.

But the Metropolitan Transportation Authority’s (MTA) Small Business Development Program has fashioned an approach to help small and disadvantaged firms grow capacity and succeed as MTA contractors. In 2010, MTA launched a comprehensive developmental program for small businesses that includes an innovative approach to providing mentoring to emerging contractors seeking

MTA contractors review nightly plans on the Second Avenue Subway’s 86th Street Cavern. (Courtesy of MTA)

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largest African-American owned bank in the U. S.) to help small firms develop the complete capacity to perform as MTA contractors in the future.

“We view these programs as an investment. By creating a larger and more diverse pool of contractors who can complete MTA projects, we create cost savings, jobs and economic development in our region,” said MTA Chief Diversity Officer Michael J. Garner, MBA. MTA’s Small Business Development Programs began in 2010 when former Governor David Patterson signed legislation to establish the program for projects funded by the State of New York. This legislation led to the formation of the SBMP that allows state-certified small businesses to compete for projects up to $1 million where bonding is waived as the result of an MTA-sponsored internal bonding program. The successful implementation of the SBMP led to the development of the Small Business Federal Program (SBFP).

Per the DBE regulations, this program required approval from the Federal Transit Authority, which was granted to MTA in 2012, marking the first federal mentoring program approved by the FTA. The MTA has responsibility for administering a unified mass transportation policy for the New York metropolitan area, including all five boroughs of New York City and the suburban counties of Dutchess, Nassau, Orange, Putnam, Rockland, Suffolk and Westchester—all of which together are the “Metropolitan Commuter Transportation District (MCTD).” The MTA is the largest regional public transportation provider in the Western Hemisphere.

Its agencies serve a region of approximately 14.6 million people spread over 5,000 square miles (13,000 km²) in 12 New York counties and two in Connecticut. MTA MTA strives to ensure that business opportunities extend to all members of the community. (Courtesy of MTA)

agencies move more than 8.5 million customers per day (2.6 billion rail and bus customers a year) and employs around 69,000 workers.

An organization of this size requires a hefty capital plan to maintain operations. To Ken Bharatlall, President and CEO of this end, MTA’s five- year The Urban Group has seen his company double in size during his participation in capital plan for 2015-2019 MTA’s Small Business Federal Program. is estimated at $36 billion.

(Courtesy of Sacks Communications) Garner said, “We have the responsibility to ensure that the taxpayer dollars spent on capital projects are done so in an inclusive manner. We have allocated $490 million to our Small Business Development Programs during the next five years of our capital plan.”

This commitment has helped The Urban Group, a certified DBE general contractor based in Woodhaven, Queens, increase its contracting opportunities with MTA. The Urban

Group has won two contracts in the SBFP totaling $3.4 million. The first is a $1.9 million project to build facilities in Grand Central Terminal that is a part of the East Side Access megaproject. Urban Group workers will demolish an existing steel gantry crane and wall, install underground utilities and an underground concrete reinforced air duct, and build a concrete reinforced manhole. The second project is a $1.5 million job to install flood barriers in subway stations as a result of the Hurricane Sandy storm that hit the East Coast in 2012.

Ken Bharatlall, president and CEO of The Urban Group, said: “I see a real big potential of bidding more work with MTA, and performing more work. This program carves out small contracts for us to bid on. Our first project was only $1.9 million, but we went through the same process as if it was a larger project. We learned MTA’s processes regarding quality control, safety implementation, submittal processes and change order management, so now we understand better how the agency works. We have even used what we have learned on other projects. This program has helped us tremendously. In 2011 we made $5 million in revenues, but our revenues were $16.5 million in 2013.”

The program has been a major success for both MTA and the more than 150 pre-qualified Small Business Development Program contractors enrolled in the program. Since 2010, 91 projects have been awarded totaling $52.8 million; 59 projects (64 percent) were awarded below the engineer’s estimate for the project, yielding $4.6 million in cost savings. In addition, 75 percent of the 91 projects were awarded to New York State certified MWBE or MTA-certified DBE firms. “We couldn’t believe it, it was amazing. Not only are you making money, but you are learning how to do different projects,” said Hely Duarte, president of Zion Contracting of Hempstead, NY. The MTA Small Business Development Program has received numerous awards for its innovative approaches and accomplishments to foster small business growth and inclusion in the transportation industry. The program itself has been recognized by the New York & New Jersey Minority Supplier Development Council. In spring 2012, The U.S. Small Business Administration named Michael J. Garner as Minority Small Business Champion of 2012 for New York State, in large part for his work assisting in the creation of MTA’s Small Business Development Program.

ZOBO All Natural Hibiscus Drink and ZOBO All Natural Ginger Mint Tea

Susan Wendt, president of Wendt Productions saw an ominous trend on the horizon at the time of the recession of 2007-2009. Her 20-year-old marine industry business needed to make a change, and fast. The recreational boating and marine industry was taking a severe hit with the economic decline, and Wendt needed a new line of business for the company. “I am a trends junkie, and I remember listening to economists talk about the economy and I SEES A TREND IN thought that the only organizations spending money during the recession would be government, so we took our experience in strategic sourcing and started to pursue government contracts,” Wendt said.

This strategic change led Wendt Productions to diversify from primarily serving the marine industry, to selling PPE (Personal Protective Equipment), information technology hardware, electronics and strategic sourcing services to government entities. To help facilitate this diversification strategy, Wendt Productions received certification in the State of Florida’s Minority/Women Business Enterprise Program; and also in the federal Woman Owned Small Business Program (WOSB) and the Economically Disadvantaged Woman Owned Small Business Program (EDWOSB). Wendt used these certifications to bid on state and federal contracts and sell to the government.

It was also during this time that Wendt learned about the USDOT Disadvantaged Business Enterprise program from Bonnie Yauilla, DBE Manager at the Tampa International Airport. “She kept telling me I should definitely fill out the DBE application, so I finally completed the application and got certified in the Florida Unified Certification Program in 2011,” Wendt said. After receiving its DBE certification, Wendt Productions added another line of business to assist prime contractors in meeting DBE goals supplying PPE, construction materials and other expendables as a DBE supplier. “We supply things like respirators, hard hats, harnesses, first-aid kits, floating buoys, lights for barges and treatments for poison ivy. We have a lot of experience in strategic sourcing from our experience in marine industry, retail acquisition, warehousing and shipping, and we have simply applied the experience to serving the transportation industry,” Wendt said.

She credits her company’s success as a DBE/ACDBE firm to their ability to understand customer needs and to building lasting relationships. “While some government level bids

Wendt Productions DBE Opportunities

are won on price alone, getting work with prime contractors and franchise holders at the airport level is won first through established relationships, a commitment to service and reliability that includes best pricing.”

As an example of Wendt’s customer service, when Louisville International Airport’s Minority compliance audit found franchise firms deficit in meeting their ACDBE goals, DBE program administrators provided concessionaires with a list of certified ACDBEs. One franchisee, a taxi firm, reached out to Wendt, explained their mandate and asked for help. Working together, Wendt identified a number of spend areas that were less obvious—yet necessary—and began the sourcing process. As the relationship proved itself, additional lines of business connected to the taxi company’s parent firm came on board. Wendt helped connect the taxi franchise with additional DBE companies for projects outside of their wheelhouse like parking lot repaving and striping.

As a result, the taxi company is now compliant, has found not just a reliable resource, but a partner that consults on longterm goals, provides best pricing and sources items in the local community, thereby contributing to the economic vitality of the region.

Wendt Productions is currently DBE and ACDBE certified in 17 states, and maintains certification with the Women’s Business Enterprise National Council and the federal government.

In addition to maintaining these certifications, Wendt has become a very active advocate for DBEs and businesses owned by women and minorities. Wendt said: “Although I sought certification purely as a business strategy, I’ve quickly become an advocate for small businesses in the process. I am a member of the AMAC Legislative Committee, and serve as the Small Business Liaison to the US Department of Transportation for the US Women’s Chamber of Commerce. Even though women represent more than half of the population and own 30 percent of small businesses, less than 5 percent of federal contracts are awarded to WOSB firms of all ethnicities. The ACDBE program is helping to level the playing field and we encourage the White House to strengthen the compliance goals.”

“She kept telling me I should definitely fill out the DBE application.”

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Susan Wendt, President, Wendt Productions

AIRPORT MINORITY ADVISORY COUNCIL

Prepare. Promote. Advocate. Engage.

THE ANNUAL AMAC AIRPORT BUSINESS DIVERSITY CONFERNCE June 8-10, 2014

For more information or to register visit us online at

The Airport Minority Advisory Council (AMAC) Business Diversity Conference offers airports, the federal government, corporations and entrepreneurs the opportunity to cultivate new relationships and expand their national presence through three days of engaging and relevant educational and networking events.

www.amac-org.com

Proceeds from the conference go toward advancing AMAC’s goal to increase diversity and eliminate barriers facing minority-owned, woman-owned, and disadvantaged businesses in the aviation industry through advocacy, business and professional development, and education.

Special events at this year’s conference

Bill Walker Memorial Golf Tournament Saturday, June 7th

Join us for the 2014 Bill Walker Memorial Golf Tournament on June 7, 2014 at the beautiful Green Valley Ranch, Denver, Colorado.

This exciting event benefits the AMACESP Student Scholarship Program.

DBE/ACDBE Certification Training for DBELOs and ACDBELOs Saturday, June 7th

The FAA Office of Civil Rights is offering a FREE half-day training program on the basics of certification for DBELO's and ACDBELO's

Celebrating Women in Aviation - Breakfast

Sunday, June 8th

The Celebrating Women in Aviation event is designed to foster, promote and applaud the success of women in aviation-related enterprise. This unique event offers business owners, airports, government and corporations the opportunity to network and hear about the personal and professional experiences of other women in the business, how they got there, and what it takes to excel in the industry.

AMAC After Dark

Project LIFT - Luncheon

AMAC A er Dark at the Airport Business Diversity Conference offers AMAC Conference a endees a place to unwind and enjoy top notch entertainment.

The sole purpose of this event is to raise funds for the AMAC Educational and Scholarship Program. All proceeds donated during the AMAC A er Dark Event go directly to (AMACESP).

Project LIFT is an all-inclusive, comprehensive program designed to raise the professional standard and improve the performance level of minorities and women in the aviation and aerospace industry.

Monday, June 9th

For more information or to register visit us online at www.amac-org.com

Tuesday, June 10th

BONDING EDUCATION PROGRAM

BONDING EDUCATION PROGRAM

In Partnership with The Surety and Fidelity Association of America

HELPING SMALL BUSINESSES AND DBEs BECOME BOND READY

Benefits of Bonding Payment Assurance | Competitive Advantage | Fast-Track DBE Bonding Programs Surety Bond Claim Services | Third-Party Project Analysis Program Participant Benefits · · · · · · · · ·

Learn to run a profitable business Individualized prescriptive plan for business development One-on-one counseling hours Access to technical, financial, and managerial assistance Increased access to prime contractors and procurement opportunities Verified as capable of fulfilling the obligations of a contract Claims services Economic empowerment Job creation

USDOT is the only federal agency that has direct procurement and subcontracting procurement opportunities for small, emerging, contractors on the nation’s infrastructure in all modes of transportation. Partnering with local transportation project stakeholders, the BEP is designed to tie the participant’s bondability to the procurement opportunity.

2014 PROPOSED SCHEDULE LOCATION

SBTRC

EVENT

DATE

Spokane, Wash & Boise Idaho Baltimore, MD Shoreview, MN Miami, FL New York, NY Orlando, FL Topeka, KS

Northwest Region Mid Atlantic Central Southeastern Region Northeast Region Southeastern Region Central Region

Program Kick-Off BEP Planning BEP Kick Off BEP Kick Off BEP Kick Off BEP Kick Off BEP Kick Off

April 24, 2014 Fall 2014 Fall 2014 TBD Fall 2014 Winter 2014 Winter 2014

http://www.dot.gov/osdbu/financial-assistance/bonding-education/bonding-education-program

Lewis: continued from page 15 the newly invented High-Speed Exit Way, 30 degrees off the runway center line; similar to an Interstate Highway off-ramp designed for fast-moving aircraft.

Lewis said he spent a lot of time studying other patents and inventions to ensure there was nothing in the marketplace similar to his idea. Finding none, he called an intellectual property officer to learn more about applying for a patent to protect his idea. Although the patent process can be expensive and time-consuming, Lewis said he considered the pros and cons, but followed some very good professional advice to proceed. In essence, he was asked, “If you don’t take a chance on yourself, who else will take a chance on you?” In September 2011, Lewis filed for a patent, which was then issued in December 2012 and granted in January 2013.

In January 2014, the Federal Aviation Administration (FAA) rolled out new rules for air traffic controllers designed to reduce the risk of airplane collisions by staggering the timing between takeoffs and landings. According to a report by the Wall Street Journal, by allowing more space and time between planes taking off on one runway and planes arriving on another, the potential for mid-air collisions drops significantly; the result of an investigation of five near-miss incidents over the past several years. The ruling increases safety, but also has the potential to increase flight delays during peak travel times, a frequent complaint with airline passengers and frequent flyers. The LEWIS New Generation Smart Runway System alleviates those concerns.

Based on industry research and conservative estimates, by streamlining runway operations and decreasing delays, Lewis’ 21st Century Smart Runway invention has the ability to support 15 more flights per hour or 150 flights per day, potentially accommodating more than 20,000 daily airline passengers, generating more than $1.1 million per day for each airport. The LEWIS general design system can be applied and customized for individual airports with minimal construction closings and downtime. Lewis said, “This invention provides an alternative to airports that don’t have the finances to build a new runway.”

At any moment, Lewis expects his phone to ring with either the US Department of Transportation or the FAA on the other end of the line, asking to apply the technology and innovation of his patented LEWIS—21st Century New Generation Smart Runway System to: increase runway safety, decrease runway traffic, improve arrival/departure efficiencies, and increase airline capacity and revenue. Lewis is confident the call will come due to the new FAA regulations and the fact that any high-speed airport off-ramp technology is a violation of his patent from the U.S. Patent and Trademark Office.

Lewis said he envisions this innovation to achieve worldwide use in 15 years, marking a global transformation in aviation.

“A patent brings something out of you that makes you commit to yourself,” Lewis said. “We’re opening the door for a tremendous amount of people—particularly minorities—to be involved in aviation.”

Calendar of Events Airport Minority Advisory Council (AMAC) Airport Business Diversity Conference June 8-10, 2014, Denver, CO www.amac-org.com

National Association of Women in Construction (NAWIC) 59th Annual Meeting & Education Conference September 3-6, 2014, Indianapolis, IN www.nawic.org

National Association of Minority Contractors (NAMC) 45th National Conference June 18-20, 2014, National Harbor, MD www.namcnational.org

American Contract Compliance Association (ACCA) National Training Institute September 207, 2014, San Jose, CA www.accaweb.org

Conference of Minority Transportation Officials (COMTO) 43rd National Meeting & Training Conference July 12-15, 2014, Atlanta, GA www.comto.org

National Association of Women Business Owners (NAWBO) 2014 Women’s Business Conference September 8-10, 2014, Indianapolis, IN Www.nawbo.org

Minority Business Development Agency (MBDA) National Minority Enterprise Development Week July 31-August 1, 2014, Washington, DC www.mbda.gov

National Minority Supplier Development Council (NMSDC) Conference and Business Opportunity Fair November 2-5, 2014, Orlando, FL www.nmsdc.org

Colette Holt

& Associates YOUR EXPERT ON AFFIRMATIVE ACTION AND CONTRACT COMPLIANCE

Colette Holt & Associates Attorney at Law

• Disparity and Availability Studies • Review, Design and Implementation of Disadvantaged/Minority/Women/Small /Local Business Programs • Litigation and Expert Witness Services • Contracting Fraud Detection and Evaluation • Community Benefits Agreements and Project Labor Agreements • Trainings and Presentations

3350 Brunell Drive Oakland, CA 94602 Telephone - (773)-255-6844 Email - colette.holt@mwbelaw.com www.mwbelaw.com http://twitter.com/mwbelaw

     

             

43rd National Meeting & Training Conference Saturday, July 12 –Tuesday, July 15, 2014

The Movement Continues: Developing Leaders & Building Historically Underutilized Businesses

Atlanta Marriott Marquis 265 Peachtree Center Avenue Atlanta, GA 30303

Atlanta

Conference Of Minority Transportation Officials

To register, or for more details, please visit us at www.comto.org

CONCESSIONS INTERNATIONAL INSPIRED CONCEPTS GENUINE PARTNERS Proud members of the minority community, CI started as a DBE in 1979. Having graduated two decades ago, we would like to thank our ACDBE Partners for their hard work and support, which is so critical to our continued success. We are more committed than ever to creating meaningful, lasting partnerships with women and minority-owned businesses.

www.cintl.com Contact LeMonica Hakeem, Vice President of Business Development at 404-681-0300 or email: lhakeem@cintl.com.