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SEEKING DBE SUBCONTRACTORS & CONSULTANTS FOR THREE INFRASTRUCTURE PROJECTS California Rail Builders, LLC
California High Speed Rail, Central California Anticipated completion date: 2019
California Rail Builders, in a consortium with Griffith Company, has signed an agreement to design and build a 22-mile section of high-speed railway line in the Central Valley for $442 million. The line, between Wasco and Shafter, forms part of the 100-mile central section of the line between Fresno and Bakersfield, connecting Los Angeles and San Francisco.
North Perimeter Contractors, LLC
Interstate 285/SR 400, Atlanta, Georgia Anticipated completion date: 2020 North Perimeter Contractors (NPC) was selected by the Georgia DOT and the State Road and Tollway Authority to design, build and partly finance the I-285/SR 400 project. The contract sum is approximately $457 million. NPC will rebuild the I-285/SR 400 interchange and make upgrades to the adjoining I-285 and SR 400 corridors.
Sugar Creek Contractors, LLC
Interstate 77, Charlotte, North Carolina Anticipated completion date: 2018 Sugar Creek Contractors heads up the consortium along with English Construction for the design and build of the I-77 highway. The approximately $444 million project is a public-private partnership between North Carolina DOT and the developer to finance, develop, design, construct, operate and maintain the project. SCC will construct 26 miles of dedicated additional Express Lanes that will operate adjacent to the existing general purpose lanes as well as other improvements from I-77/I-277 in Uptown area of Charlotte to Mooresville.
POTENTIAL CONTRACT OPPORTUNITIES*
Barrier/Guardrail (Temporary/Permanent), Bridge Construction, Aggregate/ Material Suppliers, Erosion Control/SWPPP, Concrete Structures, Drainage, MSE Walls/Panels, Noise Walls, Miscellaneous Design Services, Misc. Utilities Services, Traffic Control, Drilling (Sign Posts/Caissons), Utility Relocation Design**, Rebar (Installation & Purchase), Flatwork, Electrical Work, Demolition- Exterior, Grading/ Earthworks, ITS and TCS Civil Work, Landscaping, Materials Testing, Lighting, Saw Cutting/Sealing, Roadway Striping, Steel Stud Walls, Utility Relocation**, Recycling/Milling (Asphalt/Concrete), Asphalt Paving, Excavation, Environmental Services, Geotechnical, Fencing, Miscellaneous Concrete Work, Technical Design Engineering, Signage, Surveying, Ready-mix Concrete, Traffic Supplies/Signals, Trucking/Hauling *PLEASE NOTE: This list is not inclusive of all available opportunities, but a sampling of potential services that could be available on a project. The opportunities available on specific projects may vary depending on the type, scope and size of the project. ** Additional pre-qualifications may be required for these services.
Vendors and contractors interested in doing business with Ferrovial Agroman or on these projects, please register your firm with us at:
www.fauscorp.diversitycompliance.com/ FrontEnd/StartRegistry.asp For additional questions and details, contact us at:
DBEinfo@ferrovial.com
Plenary Walsh Keystone Partners SEEKING DBE SUBCONTRACTORS PENNSYLVANIA RAPID BRIDGE REPLACEMENT PROJECT CONTRACT VALUE $900 MILLION, 7% DBE Participation (Federally funded)
The Rapid Bridge Replacement Project is a publicprivate partnership with the Pennsylvania Department of Transportation and Plenary Walsh Keystone Partners, an initiative to replace 558 aging bridges throughout Pennsylvania. Replacing the bridges will provide motorists with new, modern structures and allow PennDOT to remove them from their structurally deficient list. Plenary Walsh Keystone Partners believes in engaging local community and disadvantaged business enterprise (DBE) resources to benefit our projects and the
communities in which we do business. We seek to establish relationships with local DBE firms, encourage and assist potential DBEs to obtain necessary certification and prequalification, and aid development of DBEs through their active involvement. The WGJV Team is looking for M/W/DBE companies. We have sub-contract opportunities available for qualified M/W/DBE companies in the areas of: bridge construction, bridge maintenance, bridge inspection (NBIS certified), material supply, professional services.
Interested DBE Firms should visit http://parapidbridges.com/ to view a listing of projects by county, get prequalified, and to learn how to bid on opportunities. Contact Person: Marvin Jackson, DBE Plan Manager, mljackson@walshgroup.com 214.585.7308 Plenary Walsh Keystone Partners - Project Headquarters: 2000 Cliff Mine Road, Suite 300 Pittsburgh, PA 15275 WGJV is An Equal Opportunity Employer, Disability/Veteran
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From the Publisher
Preferential Treatment
W
elcome to another issue of American DBE Magazine. This issue comes at one of the more interesting times during my 15-year connection with the DBE Program. It has certainly been a roller coaster experience with economic recessions and expansion, legal challenges, and new Final Rules. Now we are facing the added uncertainty how a new President-elect and new U.S. Transportation Secretary will impact the program. This degree of uncertainty became even clearer to me when I talked with a white male colleague just after the election. He asked if I thought the President-elect would end preferential treatment programs. Although the question struck a sour note with me, I simply responded, “I definitely hope not,” and left it there. I’m almost certain that my colleague meant no harm, but here is why the question struck such a sour note. As I walked away, I remember thinking: 'Preferential treatment?... I'm definitely not feeling the preferential part. However, what I would prefer is that a program not be needed to create equal opportunity; but unfortunately, study after study proves that without a structured program in place, there is no equal opportunity, and the resulting outcome for many is “un-preferential” treatment. Truth be told, I would prefer that minorities and women were not playing a lopsided game of catchup; where the lion’s share of capital, resources and opportunity were doled out during a time when they couldn't even play in the game. However, since we do have a DBE Program, I also would prefer that all the participating parties play by the rules and live up to the spirit of the program. Finally, I would prefer that
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we not use terms like “preferential” for initiatives like the DBE Program. Phrases like equal opportunity, affirmative action, diversity and inclusion are much better choices. Despite this reality I am reminded of Frederick Douglass’ quote that, ‘Power concedes nothing without a demand.’ For me, in the business arena, this doesn't mean pounding on the table in protest. It means demand like 'supply and demand.' It means DBE firms must drive demand for their goods and services by being innovative and excellent in their execution of a successful business model. This is the demand that will truly make a difference. This issue of American DBE Magazine celebrates DBEs like Talson Solutions LLC, The Lewis Company, and Callis Contractors Inc.; three firms making a demand in the transportation industry by bringing innovation and superior performance to the marketplace. This issue also provides information and updates to help industry stakeholders fulfill the intent of creating opportunities and leveling the playing field so all companies feel like they are preferred. Best wishes, Shelton A. Russell, Publisher American DBE Magazine
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Fall 2016 Volume 4, Issue 4 Publisher: Shelton A. Russell Managing Editors: PR PROS, LLC Creative Director: BRANDilly MC Digital Media: Premier Web Design Solutions Editorial: Leslie J. Ansley Marvin Carolina Jr. Iris Ann Cooper, Ph.D. Colette Holt, Esq. Philip D. Russell Shelton A. Russell Jordan Taylor
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About American DBE Magazine: PublicRelationsCopywritingSocialMediaManagementCrisisCommunica American DBE Magazine is the premier Connectindustry Blog Link Pin Hangout Share—REPEAT—Post Post Tweet Email Blog Pin Hangout Share—REPEAT— TweetPublish Publish EmailConnect Connect BlogLink Link Pin Hangout Share resource for individuals and stakeholders who work within ocialMediaManagementCrisisCommunicationsMediaCoachingBrandEnhancementMediaMonitoringDigitalMedia the federal Disadvantaged Business PublicRelationsCopywritingSocialMediaManagementCrisisCommunicationsM Enterprises program administration. Post Tweet Publish Email Connect Blog Link Pin Hangout Share—REPEA American DBE Magazine is published quarterly and distributed in all 50 states PublicRelationsCopywritingSocialMed —PublicRelationsCopywritingSocialMediaManagementCrisisCommunicationsMediaCoachingBrandEnhancement plus Puerto Rico and the U.S. Virgin Islands — to DBE program administrators, TweetPublish Publish EmailConnect Connect Post Tweet Email Blog Link Pin Hangout Share—REPEAT—Post Post Tweet Email Bl business owners, andPublish professionals in Connect the Aviation, Highway Construction, and Public Transit industries. Subscriptions: American DBE Magazine is published quarterly in Fall, Winter, Spring and Summer editions. The annual subscription rate is $19.99 including online editions, special industry reports, and four issues; single copy list price is $5.99 plus postage originating from Raleigh, North Carolina.
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U.S. Department of Transportation Small Business Transportation Resource Center
South Atlantic Region North Carolina • Kentucky • Virginia • West Virginia
Helping Small Business Move Forward
How We Help Bonding Education Program Women & Girls in Transportation Initiative DBE Certifications Procurement Assistance Capital Access Program Counseling and Technical Assistance
114 W. Parrish Street, 5th Floor | Durham, NC 27701 | www.TheInstituteNC.org 6
For additional information regarding program services and support contact: Edward Timberlake Jr., Project Director | (919) 956-8889 | etimberlakejr@TheInstituteNC.org // fall 2016
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Oscar Lewis follows in a line of African-American innovators who have helped transform and advance the transportation industry.
FEATURES Targets Access to Capital 09 SBA SBA Works to Increase Capital Access for Underserved Markets
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ACCA Develops Essential Skills
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Smart Airport Landing System
Members Share Essentials for Successful Program Administrators Continues a History of African-American Transportation Innovation
TRANSPORTATION 25 Aviation AMAC CEO Set for Takeoff 28
Transit
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Civil/Highways
Voters Support Public Transit in Elections Across the Country Callis Contractors Innovates Tollbooths
09 DBE POWER PLAYERS Solutions, LLC 18 Talson Targets Global Expansion DOT DBE Program 22 Hawaii Faces Unique Challenge BUSINESS DEVELOPMENT Program Update 31 DBE For Contractors and the Construction Industry the Middle 33 Across Questions You Must Answer Before Starting a Business 37
Just Ask Iris – Market Disruption
How Market Disruption Can Secure Your Enterprise
ALSO IN THIS ISSUE 34 USDOT DBE Summit - Open Letter 39 NAMC Who Does "Rebuilding Infrastructure" Include? // fall 2016
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SMALL BUSINESS DEVELOPMENT PROGRAM THE MTA SMALL BUSINESS MENTORING PROGRAM
|
THE MTA SMALL BUSINESS FEDERAL PROGRAM
THE NATION’S FIRST REGIONAL SMALL BUSINESS MENTORING PROGRAM
ARE YOU TIRED OF BEING A SUBCONTRACTOR? PRIME CONSTRUCTION CONTRACTS UP TO $3 MILLION |
SMALL BUSINESS LOANS UP TO $900,000
If you’re a certified Minority, Woman, Disadvantaged, or Small Business Enterprise (MWDSBE), or a Service-Disabled Veteran-Owned Small Business (SDVOSB) who wants to become a prime construction contractor in New York’s lucrative transportation market, join the elite team at the MTA. Enroll in the award-winning MTA Small Business Development Program, which includes the MTA Small Business Mentoring Program and the MTA Small Business Federal Program. Program elements include: Contracts - Prime Construction Bidding Opportunities up to $3 Million Access to Capital - Small Business Loans up to $900,000 Per Contract Bonding - Access to Surety Bonding Assistance Training - Free Classroom Construction Training Technical Assistance - MTA Expert Technical Assistance Mentoring - One-on-One Professional Development Free Business Plan Development Back Office Support NEXT STEPS
Thomas F. Prendergast Chairman & CEO, MTA
Honorable Fernando Ferrer Vice Chairman, MTA
John J. Molloy Board Member; Chair, Diversity Committee, MTA
WHO CAN APPLY
Visit web.mta.info/sbdp to select the program in which you are interested and download the application. You can also call 212.878.7161 for more information
Michael J. Garner, MBA Chief Diversity Officer, MTA
NYS MWBEs DBEs SDVOSBs Small Businesses
Craig F. Stewart Senior Director, Capital Programs, MTA
MTA Department of Diversity and Civil Rights |
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646.252.1385 |
www.mta.info
COMMITTEE MEMBERS Honorable John H. Banks III Honorable Robert C. Bickford Honorable Fernando Ferrer Honorable Susan G. Metzger, Ph.D.
Cassius Butts (far left) and SBA North Carolina District Director Lynn Douthett (4th from right) award an $85,100 check for the launch of a new Women’s Business Center at the 2016 Executive Networking Conference in Charlotte, NC.
sba targets access to capital SBA Works to Increase Capital Access for Underserved Markets By American DBE Staff
T
he Small Business Administration (SBA) has been the leading source of capital for American small businesses to start and expand since its inception in 1953. Through its loan guaranty programs, the SBA provides assurance to lending institutions through a loan guaranty program that loans made to approved small businesses will be reimbursed by the SBA if the borrower defaults on the loan. The SBA’s loan guaranty program has helped millions of businesses gain access to capital that has fueled small business growth in the American economy. Recent SBA reports show that in the past year, 67,914 loans were guaranteed, totaling $27.8 billion. These results represent a 3-percent dollar increase over the previous year, which is a new record. The total SBA loan portfolio is now $105.6 billion, a 4 percent increase from last year.
The programs have been especially important to minority and women-owned business enterprises (M/WBEs), which historically are less likely to have access to alternative sources of capital, like financing from family members and private investors, to start and grow a company. Therefore, M/WBEs tend to heavily rely on bank financing to get the capital needed to grow a company, and the SBA’s loan guaranty programs help improve access to bank loans. Due to several challenges, minority and women-owned firms have struggled to achieve the same measure of success in accessing SBA’s loan guaranty programs over the years. Some of the challenges include having less entrepreneurial experience, less startup and working capital, assembling the proper financial // fall 2016
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colleges and universities (HBCUs). Butts made it a priority for the SBA to partner with every HBCU in the Southeast Region. Butts said, “These initiatives have helped to foster opportunities for aspiring business to scale-up by learning what it really means to run and grow your own business.” The community partnerships helped SBA Region IV facilitate over $6 billion in loans in the past year and achieve record highs for loans to companies owned by Hispanics, African-Americans, Asians, and women in the region. “We certainly have a positive trajectory in loans to historically underserved communities,” Butts said.
Cassius F. Butts, Region IV Administrator, U.S. Small Business Administration
statements and documentation, and sometimes discrimination from financial institutions. Despite these challenges, the SBA appears to be making positive strides toward helping business capital reach areas that have been underserved by their programs. This primarily includes increasing loan guarantees for business owners who are women, veterans, Hispanics, African-Americans, Native-Americans and Asian Americans. In the 7(a) loan program, SBA increased lending to Hispanic American-owned businesses by 65 percent, to African American-owned businesses by 45 percent, to Asian American-owned businesses by 44 percent, to women-owned businesses by 33.8 percent, and to veteran-owned businesses by 12.9 percent from fiscal year 2011 to fiscal year 2016.
To further enhance lending success in underserved communities, the SBA and the Milken Institute announced the Partnership for Lending in Underserved Markets (PLUM) Initiative in September 2016. The PLUM initiative is a collaboration to develop and test initiatives designed to more effectively provide capital to minority-owned businesses throughout the United States. The program launched in Baltimore and Los Angeles, and the SBA anticipates the recommendations created by the initiative will be rolled out across the country. Maria Contreras-Sweet, SBA Administrator and a member of President Obama’s Cabinet, said:
“Increasing access to capital in underserved communities continues to be one of my highest priorities. Solving this longstanding and persistent challenge would open the door for new ideas, new visionary voices, and revolutionary business innovations from historically unexpected places. This new partnership with the Milken Institute brings together some of the brightest minds in this field with the local and national leaders and resources needed to create opportunity and transform the small business marketplace for the better.”
SBA Region IV Administrator Cassius Butts has led the agency’s efforts in the southeastern United States since 2011 and believes SBA’s efforts to help businesses succeed and expand access to capital for historically underserved communities have been effective. “Helping businesses to grow and increasing access to capital for minority communities has been one of our primary areas of focus, so in my region we have established several initiatives to help us achieve our goal,” Butts said.
The PLUM initiative brings together leaders and policy experts from the SBA and the Milken Institute to develop policies, recommendations and concrete steps toward increasing access to lending and other sources of business capital in minority and underserved communities. The long-term goal of the initiative is to increase the capacity of lenders to better serve historically underdeveloped sectors of the small business community. Baltimore and Los Angeles were chosen to launch the initiative because their economies also impact surrounding communities and can help drive growth in larger regional economies.
One of the key initiatives of Region IV was to create strategic partnerships with community non-profit agencies that have access to underserved businesses. These partnerships have included the Greater Women’s Business Council, the National Minority Supplier Development Council, and historically black
Another strategy to increase lending in underserved communities is increasing the number of minority-owned and community-based lending institutions that can offer SBA-guaranteed loans. The SBA added M&F Bank (formerly Mechanics & Farmers Bank), as an approved lender in 2016.
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M&F Bank is a primarily African American-owned bank based Durham, North Carolina, and one of the oldest minorityowned banks in the country. M&F President and CEO James Sills III believes his bank’s strong roots in the community will help the SBA reach previously underserved markets. “A lot of minority- and women-owned businesses aren’t aware of all the different types of products the SBA has to offer. We hope we can fill in the gap between smaller CDFIs (Community Development Financial Institutions) and the large commercial banks to reach some of those businesses. As a smaller community bank, we can take the time to understand a small business and understand where they are trying to go, and guide them with the right advice of how to go about getting an SBA loan.” The Carolina Small Business Development Fund (Carolina SBDF) is a CDFI and another SBA-approved lender. The Carolina SBDF was the fifth largest generator of SBA’s Community Advantage loans in FY 2015. Community Advantage is a pilot loan program introduced by the SBA to meet the credit, management and technical assistance needs of small businesses in underserved markets. Community Advantage provides mission-based lenders access to loan guaranties as high as 85 percent for loans up to $250,000. The Carolina SBDF made over $6 million in Community Advantaged loans to 54 different companies during FY 2015.
Long believes there are four primary challenges many underserved firms face when qualifying for a loan: credit history, equity, collateral and business management. “We have to turn down around 53 percent of the businesses that come to us for a loan. This is usually due to their credit history, not having enough equity (or capital) invested in the business, insufficient collateral, or a lack of business management expertise. We offer technical assistance to those we have to turn down to try to correct these issues, but these are the main challenges,” Long said. Butts is encouraged about the progress being made by financial institutions in the Southeast Region to reach out to underserved markets to make them aware of the SBA products and services, and to help them find greater success. He said, “The first step is getting businesses to take advantage of the free community resources that can provide guidance and technical assistance in navigating the loan process. The SBA has a vast network of local resources available to businesses that are free of charge. These resource centers like the Women’s Business Center and Small Business Development Centers can help firms get prepared for financing and contracting opportunities.”
While Carolina SBDF President/CEO Lenwood Long sees a definite improvement in loans to minority and underserved markets, he stills believes there is a lot of work to be done. “It’s getting better,” Long said, “But minorities, especially African American, Hispanic and Native American companies are still not getting loans at the level of their presence in the market; but we are working to improve our lending to this group of businesses.”
SBA approved more than 70,000 loans in the 7(a) and 504 loan programs in FY16. These programs provided nearly $28.9 billion to small businesses and supported nearly 694,000 jobs.
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Metro is committed to small business success. We’ve awarded nearly $600 million to small businesses. Learn more and get certified at metro.net/connect. For a listing of real-time procurement opportunities, please visit us at metro.net/business.
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ACCA members celebrate receiving their Contract Compliance Administrator Certification at the 2016 National Training Institute in Chicago.
ACCA Develops Essential Skills
members Share Essentials for Successful Program Administrators By American DBE Staff
I
f you ask an experienced DBE Program administrator what it takes to be successful in managing a program that creates meaningful business opportunities for DBEs, meets the program’s goals, and moves the needle toward leveling the playing field for disadvantaged firms, they will quickly mention that it takes a number of resources and skills to get the job done. They also say that a cookie-cutter approach won’t do the trick; and results will reflect the political environment, agency culture, external community and overall business climate. Based on their collective input, they concluded that each successful program administrator must display a customized mix of traits, skills and resources to correctly assess the needs of their program, and then implement a strategy to move the program forward. Every summer, the American Contract Compliance Association (ACCA) assembles hundreds of program administrators from all levels of government and private sector professionals for the National Training Institute (NTI). The NTI, held this past September in Chicago, offered five days of intensive courses covering a wide variety of topics to help administrators acquire the skills and knowledge to build a successful program. The 2016 NTI was the largest ever, providing training to over 500 industry professionals striving to implement successful programs across the country. ACCA also achieved its highest level of membership in 2016, now serving over 500 members to help accomplish the mission of the organization: to deliver ongoing comprehensive training and certification to
practitioners working within the fields of Affirmative Action, Contract Compliance, M/W/D/S and Emerging Business Enterprise, Labor Compliance, Economic and Business Development, and Equal Employment Opportunity. American DBE Magazine writers asked six experienced program administrators the question: What are the essentials to becoming a successful program administrator? Here are their responses. Suzanne Arkle – Chief Executive Officer, Zann Consulting, Denver, CO
Expertise “A successful program administrator must have a full understanding of their agency requirements and the funding stream of a project - whether it is federally-funded or local tax dollars that will determine how the project is managed. Also, they must also understand their corporate culture and their level of support from the leadership of their agency; and fundamentally, you must have a passion, or a vision that you want to see small businesses be successful; because if you don’t have it, you can’t be in this space - it will get on your last nerve.” // fall 2016
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Rodney Renix – DBE Compliance Manager Skanska USA Civil
Louis Jones – Director, Maryland Department of Transportation Office of Diversity and Equity
Professionalism “The successful program administrator must know the mission and function of the organization, making sure the program is a part of the organization. One part of that is having leadership skills, another part is being knowledgeable of the program areas that you are administering so you can bring that advice and guidance to your leadership. Another part is being a team player and being on the management team, and having management view you as a part of the team, based on your knowledge of the program areas and based on your leadership skills.”
Collaboration “It takes a collaborative effort to be successful, understanding that construction is a people business; and understanding how to get the job done from a people perspective. So when it comes to certification, or prequalification, or to enforcement of the rules and regulations – what’s the intent? Is it to move the needle or to just put in policy?” Justin Talbot-Stern, Chief Executive Officer, B2GNow
Nancy Mercado – Senior Contract Compliance Officer, Cuyahoga County (OH) Office of Procurement and Diversity
Executive Support “To have the greatest impact, a program administrator must have the backing of the organization’s executives; because if they are not on board with the program, it is really hard to succeed.” Brenda Nnambi – Diversity & Small Business Development Manager, Sound Transit (Seattle)
Passion “You really have to have a passion for the work because you will face so many obstacles. It’s bad enough when you face them with the community, but when you face them internal to your organization, it makes it really difficult to be able to do a good job. A successful administrator must understand that you need to fight battles small enough to win, but big enough to matter.”
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Relationships “A successful administrator must have the ability to work with people from all different backgrounds and perspectives. You have to get out of your comfort zone and out of your own backyard to learn about other types of programs. In that way, you can compare practices, perspectives and challenges with other people that will help you become more effective. ACCA really offers that; although the training is excellent, what’s even better is a chance to interact with other professionals in the industry.” There are many other essentials involved in becoming a successful and effective program administrator, and even having these skills and/or resources doesn’t guarantee success. However, it becomes substantially more difficult to succeed without them. “There are a lot of facets to being successful and you could have half of them and be unsuccessful, or you could have half of them and be very successful. It depends on how you have mixed it together; meaning your background, experiences and education,” Talbot-Stern said. -------------------------------ACCA leaders have already started planning for the next National Training Institute. The event will take place August 22-27, 2017, in Kansas City, Missouri. Registration details and conference information are available online at www. accaweb.org.
Smart Airport Landing System
Continues History of African-American Transportation Innovation By American DBE Staff
A
s the inventor of the 21st Century Smart Airport Landing System, Oscar Lewis follows in a line of proud AfricanAmerican innovators who helped transform and advance the transportation industry. Lewis’ invention continues to surpass milestones and is poised to substantially improve the way airport runways are designed, constructed and operated across the world. The Smart Airport Landing System received patent number US 8 352 103 B2 on January 8, 2013, and has progressed into the testing phase after Lewis signed a Cooperative Research and Development Agreement (CRDA) with the Federal Aviation Administration on June 30, 2016. A CRDA is an agreement between a government agency and a private company to work together on research and development in order to speed up the process of bringing innovation into operation. “Once implemented, the Smart Airport Landing System will reduce costs, save time and improve safety,” Lewis said. The Smart Airport Landing System is the latest chapter in a storied history of black Americans making innovative contributions to the transportation industry. This history goes back to the earliest days of machine-powered movement in the 19th century. The first transportation patent received by a black American went to Elijah McCoy for his ‘Improvement in Lubricators for Steam-Engines’ patent that revolutionized the railroad industry in 1872. McCoy’s automatic oil cup invention was designed to lubricate a train's axels and bearings while the train was in motion. As a result, trains didn't have to stop as frequently for manual lubrication, which cut down on costs, saved time and improved safety. In fact, McCoy’s invention was so superior to other competitor’s versions, that customers coined the term “the Real McCoy” to distinguish his invention from the inferior knock-offs of competitors.
Oscar Lewis, Smart Airport Landing System inventor and The Lewis Company CEO, displays his 2016 MBA of the Year Award, presented by the National Black MBA Association in October 2016.
African-Americans’ contributions to transportation innovation continued when Granville T. Woods invented the Multiplex Telegraph in 1887. Woods’ device allowed train dispatchers and engineers at various stations to communicate with moving trains via telegraph. Conductors could also communicate with the conductors on other // fall 2016
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trains. Prior to the Multiplex Telegraph, train collisions were a huge problem, but Woods' device helped make train travel much safer. Like McCoy’s automatic oil cup invention, the Multiplex Telegraph also reduced costs, saved time and improved safety in the railroad industry. Garrett Morgan was another AfricanAmerican inventor contributing greatly to transportation innovation. After patenting a gas mask in 1914 that was used during World War I to protect soldiers from chlorine fumes, Morgan received a patent in 1923 for the first traffic signal. The signal featured automated ‘Stop’ and ‘Go’ signs. This invention is the predecessor of the modern traffic signal used today, which is essentially an improvement to Morgan’s earlier invention. However, during the time of its use, Morgan’s traffic signal was a ground-breaking improvement to automobile travel that reduced costs, saved time and improved safety. The Smart Airport Landing System is Lewis’ first patented invention, but not his first innovative idea. “I have always been an innovator and thought outside the box,” he said. “There are many things I used to draw and put on paper that are actually in play today. So it was always a part of me to think about new ways of doing business, and think of how we can change things for the better. While the patent for the Smart Airport Landing System is the first one I applied for, we have three other inventions on the shelf now that I haven’t applied for a patent yet,” Lewis said. Lewis is a consummate multitasker. He is president and CEO of the Lewis Company, based in Cary, North Carolina. The Lewis Company has been in operation for 24 years and provides a diversified mix of products and services to a diverse clientele. His clients include the U.S. federal government, pharmaceutical companies, local government agencies and energy companies. “We have over 30 different
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Lewis’ design drawing of the Smart Airport Landing System shows a high-speed exit runway allowing aircraft to exit a primary runway faster, resulting in more aircraft being able to use the runway on a daily basis.
customers, doing 30 different things,” Lewis said. The company provides environmental and coal ash cleanuprelated services for clients like Duke Energy; laboratory-related research services for Merck; helps support military operations for the U.S. government in drone technologies; and a variety of other services for clients. Lewis said, “Once a customer sees you can perform and begins to trust what you can do, they will ask you to do other things.” Although the Lewis Company is not a well-known entity across the country, Lewis’ overall success as an entrepreneur has not gone completely unrecognized. In September 2016, Lewis was honored by the National Black MBA Association as its MBA of the Year at the organization’s annual national conference in New Orleans. Lewis now joins previous honorees like former President George W. Bush and General Colin Powell as winners of this prestigious award. Despite the overall success of the Lewis Company, Lewis’ greatest passion is still aviation. Lewis said he fell in love with airspace as a child growing up in Alabama, and then pursued his passion by becoming a pilot at the age of 19; and then becoming an officer in the U.S. Air Force after graduating college with a degree in Computer Information
Oscar Lewis greets Federal Aviation Administration Administrator Michael Huerta at the 2016 Air Traffic Control Association Conference in Washington, D.C. in October 2016.
Systems. He continued his passion while in the Air Force and became a certified air traffic control operator, working in flight operations at some of the world’s busiest airports. Later in his military career, he moved into the Plans & Programs area of aviation management, where he was involved in aircraft mishap investigation; managing control tower construction; and installing radar, communications and navigation systems. Lewis used his extensive breadth and depth of aviation industry experience,
“ It’s really about the people
whose lives are made better by what we are doing. If you create something, you really want to create something that adds a value to society.” Oscar Lewis, CEO, The Lewis Company his extensive computer skills (which were further enhanced during his postmilitary career at the IBM Corporation as a systems engineer), and a penchant for innovative thinking to design the Smart Airport Landing System over several years, leading up to applying for a provisional patent in 2010. “Initially, you work in a vacuum,” Lewis said. “Because you are working on an invention, and most of the time people don’t understand what you are doing in the first place, because it’s an innovation—it’s hard to explain something new that people have not seen before.” The Smart Airport Landing System has surpassed several milestones in its progression toward getting approval by the FAA for implementation into future airport designs. “We have just
finished flight simulations of takeoffs and landings using the system, and it has performed in an excellent manner. We have worked extensively with the Phoenix Sky Harbor Airport, Arizona State University, American Airlines and the FAA’s Phoenix Office to run tests and simulations,” Lewis said. “Our tests have shown a 46 percent reduction in aircraft time on the runway. We are scheduled to begin the safety management system review this winter and will have proof of concept data for flight simulations to share. Then we will be ready to start engineering new runway designs at airports across the country.”
change the way we do business?’” He believes that you can’t do that effectively without setting aside resources to do it.
Lewis is able to share his thoughts on successful innovation as he moves closer to launching his Smart Airport Landing System invention in 2017. He believes there are three components to successful innovation. The first component is having an open mind and being willing to consider new ways of doing things. “You have to be willing to change and not do what has always been done,” Lewis said.
Like the great African-American inventors that came before him, Lewis has committed to taking the steps to make innovation an ongoing part of the Lewis Company’s business success. He sees the Smart Airport Landing System innovation not only as a way to transform the aviation industry, but he also sees it as a way to improve the lives of people relying on airplane travel in their daily lives. Lewis said, “It’s really about the people whose lives are made better by what we are doing. If you create something, you really want to create something that adds value to society.”
Lewis’ second component for successful innovation is a budget. He believes that innovation requires an appropriate budget to provide the resources to complete the process. He said, “You need time to work through the process, test new theories, and to answer difficult technical and marketing questions like, ‘How will this work? And how will this
The last component to successful innovation is insight. Lewis sees insight as having the expertise, education and experience to be able to understand an industry or issue from all aspects, and then having the ability to foresee changes in the market and changes in technologies to see where things are going in the future. Lewis said, “It’s not easy to do these things; actually it is very difficult, and that is the reason people continue to go with what they have, instead of changing to something new.”
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Advertise With Learn more at: www.americandbe.com //////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////// // fall 2016
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e r a y l p o w e r p d b e
Talson Solutions President and CEO Robert S. Bright led the firm’s completion of auditing and consulting services for the $5.2 billion expansion of the Panama Canal, which reopened in June 2016.
Talson Solutions Targets Global Expansion W By By Jordan Taylor
hen Talson Solutions, LLC began operations in May 2001, the company focused mainly on providing risk assessment and construction audits for major capital projects. Now, the business has expanded its footprint from one office located in its Philadelphia, Pennsylvania headquarters to additional branches in Atlanta, New York, and Panama City, Panama—providing a range of services that includes project management, consulting, training and technical expertise. Talson Solutions started with one owner-operator and now employs 25 staff members working on projects totaling $2 million to $17 billion.
always been entrepreneurial in nature and wanted to be his own boss. He worked for 12 years as an engineer with Exxon and seven years with Pricewaterhouse Coopers as a director. During his corporate career, Bright helped clients resolve disputes related to capital projects and leveraged that experience and knowledge of industry bestpractices into his own business of helping clients avoid and prevent conflicts on capital projects. Talson Solutions works to reduce capital program risk by improving financial controls, improving internal and external controls, and mitigating risks that adversely impact successful project completion.
Company founder and president Robert S. Bright named Talson Solutions after his daughter Taylor and son Jason. Bright has a B.S. from Rensselaer Polytechnic Institute in Troy, New York and an MBA in Finance from the Wharton School of the University of Pennsylvania. Bright said he has
Bright described his management style as handson, detail-oriented and very people-oriented. He said, “I like to create a culture of diversity, focusing on teamwork as well as a culture of giving back to the community. We have a very flat management structure.”
“ As a DBE, or minority business, it’s a matter of doing the right thing and performing at an excellent level. When times get tough, I see it as an opportunity to continue doing what I love to do. We continue to grind, stay on course, and good things will happen.” Talson Solutions has provided construction auditing, consulting and project management services on major transit projects like the North Shore Connector in Pittsburgh, PA, and for the Metropolitan Transportation Authority in New York.
Talson Solutions has several contracts where the company serves as the DBE Program participant or DBE subcontractor. Bright said the value of the DBE Program is that it provides access to talk to key individuals in the bidding process. He said that the program does not guarantee work, but it does open a door to have a discussion. “The lesson of any business is that you have to be in the game,” Bright said. “Nothing is going to come to you. Things happen when you’re playing, not when you’re sitting on the sidelines.” Within the transportation industry, Talson provides readiness reviews, performance audits and program management oversight services to local, state and federal agencies. The company also can assess funding submittals, grant compliance and project status including budget, design, construction, schedule and quality performance. Talson evaluates project teams, cost controls, change management, procurement and other key procedures as contained in the project management plans. Talson also provides quality oversight audits to ensure activities are performed to meet 20
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Federal Transportation Administration (FTA) and industry standard guidelines. As part of its expansion plans, Talson Solutions has sought out and won a number of transit projects: • Talson is a subcontractor as the FTA’s Project Management Oversight Consultant on the New York Metropolitan Transportation Authority’s (MTA) East Side Access and Second Avenue Subway projects, providing services on the two projects since 2005. The project value is in excess of $15 billion; • Talson completed an audit engagement from 2008 to 2012 for the Port Authority of Allegheny County on its North Shore Connector project, which is a 1.2-mile light rail project costing approximately $550 million; • Talson was awarded a contract in November 2016 with Sound Transit (Seattle, Washington) to perform quality audits on the Safety and Security Certification program; and • Talson is in the process of
Robert S. Bright, CEO, Talson Solutions conducting a construction audit engagement of the Rampart Streetcar Expansion project in New Orleans for client Transdev Services Inc. In 2009, the Regional Transit Authority in New Orleans outsourced 100 percent of its operations to Transdev, making the company responsible for operations, capital programs, staffing, etc. Bright said, “As a DBE, or minority business, it’s a matter of doing the right thing and performing at an excellent level. When times get tough, I see it as an opportunity to continue doing what I love to do. We continue to grind, stay on course, and good things will happen.” He added that another component for long-term growth and sustainability is to provide a product or service that adds long-term value for the client on multiple engagements, instead of a single transaction. By following that principle, Bright said that 75 to 80 percent of Talson Solution’s business is repeat-customer business. Bright primarily attributes his company’s success to three things: Relationships, technical excellence, and quality, committed people working with
him. Bright said he desires to create a legacy of success for his family and his employees, acknowledging the collective team effort that is required to get results. Bright said that within the company, he knows that he is not the only person who has sacrificed and put in long hours. “I look at this as a collaborative effort to make success… to make it happen,” he said. “What continues to inspire me is the relationships that I’ve developed over the years – individuals who believe in Talson, that make referrals and offer advice.” To date, one of Talson Solution’s most visible and notable professional achievements is the company’s work on the $5.2 billion Panama Canal expansion project. Talson supported the Office of Inspector General, Canal de Panamá, serving as construction auditors and technical specialists. The opportunity was secured through a Request for Proposal (RFP) response and a competitive bid process where Talson beat out four or five other firms for the job. Bright said that the Panama Canal representatives wanted sought professionals who had worked on billion-dollar projects and could offer construction audit expertise, based on a successful track record of experience encompassing at least 15-20 years. Bright said his company won on a combination of price and specialized skill sets, offering auditing services and technical
excellence. “That’s what they wanted—someone to help train and teach their staff and to identify areas of audit and risk on an as-needed basis,” he said. Bright said the Canal staff wanted a professional partner to work alongside them to complete the project, and Talson Solutions fit the bill. Work began in June 2008 and the project engagement was completed in June 2016 under three different contracts. Bright said he is particularly proud of the Panama Canal project because of its expansive reach. “The canal touches everybody,” he said, referencing the project’s international influence, impact on world trade, and connections for major cities, industries and nations. “It’s one project, but you feel good about it because it’s an everyday conversation about life, trade and daily travel. That’s the signature project,” he said. Bright said, “I think people look at the success of me and the firm, and I’d just like to say it’s not an individual. It’s a client-consultant relationship based on respect and being able to deliver long-term investments—that’s what we do. That’s our model for success. We will continue to look for new opportunities, do the right thing, and good things will happen. We don’t have the brand name, but we can compete.”
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s p o t l i g h t p r o g r a m d b e
hawaii department of transportation DBE Program Pushes Through Challenges By American DBE Staff
The planning committee for the 2016 Hawaii Small Business Summit meets in Honolulu. HaDOT DBE program staff joins with other government and education agencies to sponsor the annual event.
M
elanie Martin faces a tough challenge in leading the DBE Program for the Hawaii Department of Transportation (HaDOT). Martin has served as HaDOT’s DBE Program Supervisor for the past 14 years and knows that managing the program in a state with Hawaii’s demographic makeup is a complicated matter; primarily because the majority of small businesses are eligible to become certified as a Disadvantaged Business Enterprise (DBE). While this sounds like a good thing, the challenge comes when considering the differences and disparities between the ethnicities that make up the demographic landscape of the state. “We have our own issues here in Hawaii because, demographically, we’re very different, very unique,” Martin said. What makes Hawaii unique is that the majority of residents belong to minority ethnic groups, the largest (40 percent) being Asian Pacific Americans. Most are from China, Korea and Japan, but a much smaller percentage is Polynesians from places like Samoa,
Tonga and Micronesia. Unlike any other state, Hawaii faces the challenge of trying to create opportunities for a variety of ethnic sub-groups existing within the DBE regulations for presumed socially disadvantaged groups. For example, the classification for Asian Pacific Americans contains 27 different nationalities within this category, including citizens with heritage from Japan, China and Hong Kong; as well as Samoa, Tonga and the Philippines. Per the DBE Program regulations, HaDOT’s program classifies Native Hawaiians as Native Americans, along with American Indians and Native Alaskans. However, the U.S. Census Bureau puts all Asian Pacific Americans and Native Hawaiians into one category—Asians. When businesses classified as Asian Pacific Americans were joined with Native Americans and other minority groups, a 2010 disparity study and subsequent goal setting resulted in an overall DBE goal of 53.43 percent for HaDOT– the highest overall DBE goal in the country. // fall 2016
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on directly applicable contracting skills. “Next year, we’re hiring a former contractor to be a consultant or coach,” Martin said. “The new consultant will be someone DBEs can relate to and feel comfortable with.” The new series of classes begins in January 2017 and will be held every other week, focusing on how to succeed in the highway construction industry. Class size will be limited to 20 companies and will target firms that have experience in the highway contracting industry.
Melanie Martin, DBE Program Supervisor, Hawaii Department of Transportation To make things more challenging, with 27 nationalities lumped together under one classification, Asian Pacific Americans became the largest sub-category of DBEs, and why, at least on paper, it appeared that they were being over-utilized in the 2010 disparity study. This meant all 27 ethnicities considered Asian Pacific Americans were no longer available to be used for race-conscious contract goals, but their DBE participation was considered race-neutral. While this change made sense for some larger DBE firms, primarily owned by Asian males from China and Japan, it also applied to DBE firms from the Philippines, Samoa and Tonga that had not received much work through the DBE Program. HaDOT received a waiver from the U.S. Department of Transportation to set contract-specific goals for underutilized DBE firms (UDBEs)—companies owned by African Americans, women, Hispanics and Native Americans—based on the results of the 2010 disparity study. Although HaDOT effectively set contract goals for the UDBEs, they experienced a significant drop in overall DBE participation. “We don’t have enough of those companies, or maybe they don’t have the capacity yet, to do the work on some of our projects,” Martin said. HaDOT representatives are hopeful that a new disparity study beginning in 2017 will help find a solution to this issue, so that businesses that have lost opportunities in the past can participate in race-conscious goal setting efforts in the future. “We’re going to ask the consultant to take into consideration the unique demographics of Hawaii,” Martin said. To help accelerate the development of greater capacity among DBE firms, HaDot is also revamping its DBE Supportive Services Program to provide relevant and direct skills training to DBEs. In the past, their DBE Supportive Services program focused on business education and business planning assistance. However, Martin plans to launch a new effort in 2017 led by a former prime contractor that will focus more
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HaDOT has continued its outreach to find new companies to participate in its projects by serving as a sponsor of an annual Hawaii Small Business Fair in Honolulu. The annual event is a collaboration between several government agencies including the Internal Revenue Service and the Small Business Development Center to provide education and business opportunities to small companies. HaDOT is also working to attract future business owners to the highway contracting industry through its successful Construction Career Days program, which provides high school students in grades 9-12 insight into the many different opportunities in the construction field. HaDOT co-sponsors the event with trade and labor organizations, private construction companies and corporate sponsors. Another outreach effort of HaDOT is to fund student interns, placing them in DOT offices as potential surveyors and inspectors. Internship programs provide high school, college and recent college graduates with direct work experiences in the transportation industry. “We really need to revisit our program and maybe look at training different kinds of positions for workers; like more CDL drivers for example,” Martin said. Martin knows that much of HaDOT’s DBE Program success depends on the upcoming disparity study, so she is planning to spend the first part of 2017 getting out a Request for Proposals to find the best consultant to conduct the study. She acknowledged the critical importance of getting a consultant hired and on board; and identifying someone who understands the complex majority-minority makeup of Hawaii and its implications for state subcontracting goals. “We are looking forward to 2017 and getting started on the disparity study,” Martin said. Although it has been a challenging process, there are already improvements in the program. Martin said she has seen an increase in the number of UDBEs getting certified at HaDOT. “We’re getting more certified underutilized DBEs (UDBEs), and it is getting better.” Martin said.
A global airport is looking for your business
At Dallas Fort Worth International Airport, we believe that creating a variety of business partnerships is vital to the contribution of our region’s economic growth. That is why we are fully committed to creating and sustaining an environment that empowers small, disadvantaged, minority and women-owned businesses, including concessions, to reach their global potential at DFW Airport. We invite your business to discover, connect and grow with us. Contact our Business Diversity and Development team today. DFW Airport - Business Diversity and Development | www.dfwairport.com/bdd
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Aviation
AMAC President and CEO Krystal Brumfield speaks to members and guests at the 2016 Airport Business Diversity Conference in Cleveland, Ohio.
amac ceo set for takeoff T
he Airport Minority Advisory Council welcomed Krystal Brumfield as its new President and CEO in June 2016, concluding a national search after the resignation of former President/CEO Shelby Scales. Brumfield’s first major task was to lead the planning efforts and implementation of the Annual Airport Business Diversity Conference in Cleveland, Ohio, which was a successful event for the organization. Since then, Brumfield has turned her focus to several key initiatives that will define her first year as the lead advocate for the inclusion of minorities and women in the airport industry. Brumfield’s first goal was to move AMAC closer, literally and figuratively, to key decision makers impacting the airport industry. In September 2016, she orchestrated the move of AMAC’s national headquarters office from Arlington, Virginia to Washington, D.C. “It’s a strategic move for us,” Brumfield said. “We are now a block away from the 26
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United States Department of Transportation; a few steps from Congress, and a few blocks from the Federal Aviation Administration. So we are going to be right there with the stakeholders, getting information firsthand and sharing it with our members.” Another priority for Brumfield is increasing AMAC’s membership. To that end, AMAC launched a membership drive in Fall 2016 to recruit new members and to encourage existing members to renew. Brumfield said, “I think we can double our membership. There are tons of opportunities in airports, and businesses just need to know about them. So we are improving communication and getting information out there so more minority- and women-owned businesses are aware of the opportunities.” Brumfield also plans to work more closely with the Federal Aviation Administration and state transportation agencies to
AMAC recently relocated its National Headquarters Office to 100 M Street, SE in Washington, DC. The new location is adjacent to the USDOT Headquarters building and provides greater access to transportation decision makers.
improve interstate certification processes. She plans to reduce the obstacles AMAC members and other small businesses encounter when seeking to gain DBE (Disadvantaged Business Enterprise) and ACDBE (Airport Concessions Disadvantaged Business Enterprise) certification in additional states to pursue airport business opportunities. “We want to make sure the process is smooth and easy for our members, so they can cross over state lines easier than they have in the past,” Brumfield said. The final initiative Brumfield plans to pursue during her first months at AMAC is continuing the organization’s advocacy efforts for increased inclusion and opportunity for minorities and women in the airport industry. “AMAC has a long history of being at the forefront of advocacy for minorities and women in the airport industry,” she said. “In fact, without the efforts of AMAC’s founding members, past leadership and members, minorities and women would not have made the advancements we have seen so far. We want to keep the legacy alive, and then move the needle even further going forward.”
Brumfield’s advocacy skills will certainly be required as a result of new leadership in the White House and the Republican Party now controlling both chambers of the U.S. Congress. Many Republican legislators historically have been detractors to legislation increasing opportunities for minorities and women in the airport industry. Brumfield said: “To be sure, from time to time, there are skirmishes on Capitol Hill about the DBE program and AMAC is very diligent about this. However, generally speaking, the Airport DBE program has enjoyed bi-partisan support in both the House and the Senate. For example, House Transportation and Infrastructure Committee Chair Bill Shuster included reauthorization of the program as part of the Committee’s FAA Reauthorization bill (including congressional findings supporting it). AMAC worked closely and cooperatively with the leaders of the committee on aviation matters including Chairman Shuster, Aviation Subcommittee Chair Frank LoBiondo, full and Aviation Subcommittee Members Peter DeFazio and Rick Larsen and members of the Congressional Black, Hispanic and Asian Pacific American // fall 2016
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Caucuses. In the Senate Commerce Committee, Chairman Thune, Ranking Member Nelson and Senator Cory Booker worked with AMAC in a similar bi-partisan manner in support of the program. Diversity inclusion is necessary for continued economic growth. In this regard, AMAC looks forward to the President-elect’s plans for major infrastructure investments including aviation and airports.� Although new to the AMAC organization, Brumfield brings significant experience working in both the non-profit industry and in the Washington, D.C. area. Brumfield previously held the position of Vice President and Chief Operating Officer at the D.C. Chamber of Commerce. During her tenure, she was responsible for providing leadership to the Chamber’s overall strategic planning process and implementing new programming initiatives. She was responsible for developing, implementing and managing the operational aspects of the annual budget. She also was heavily involved in fundraising and planning major events for the organization. AMAC recently announced the dates and location for the 2017 Annual Business Diversity Conference. The event will take place June 18-20, 2017, at the Marriott Marquis Houston in Houston, Texas.
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autoability.com
DBEs Invited Autoabilty, a premier manufacturer of wheelchair accessible vehicles, is seeking partners for existing and new vehicle projects. Interested metal forming and fabrication companies are urged to contact:
DBELO-Autoability P.O. Box 1015, Clarkston, MI 47347 248-620-4200 or bob@autoability.com
hmshost.com
2010 ALB
Parvez Sharifipour Albany Airport Donuts, LLC “Dunkin’ Donuts”
REACHING OUT TO MORE ACDBE PARTNERS. IT’S WHAT
MAKES US HOST.
2012 ATL
Tony Morrow The Pecan, Inc. “The Pecan”
2011 PHX Gonzalo de la Melena Emerging Domestic Market Ventures, LLC “Sir Veza’s Taco Garage”
Recently, the DOT’s Office of the Inspector General issued its report: “New Disadvantaged Business Enterprise Firms Face Barriers to Obtaining Work at the Nation’s Largest Airports.” At HMSHost, proudly forging fresh and compelling ACDBE partnerships has always been a priority. We’ve consistently identified new and talented minority and women-owned firms to join our family in developing dynamic airport concessions opportunities. ACDBE sourcing will continue to play a major role in our future. How about yours? Let’s plan together in 2016. Contact Ron Gomes with HMSHost Strategic Alliances: ron.gomes@hmshost.com.
2014 LAX Meg Gill Meg Blonde Ale Holdings, LLC “Blu20” & “Point the Way Café”
2013 SAT Lisa Fullerton A Novel Idea, LLC “Auntie Anne’s Pretzels”
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A Charlotte Area Transit System rail car picks up passengers in downtown Charlotte. Voters across the U.S. voted on 49 different public transit measures in November 2016, worth over $200 billion in investment.
transit
voters support public Transportation in election
Nearly $200 Billion in Public Transit Measures Considered Across the Country
N
ovember 8, 2016, was a historic day for public transportation in the United States as voters approved 34 of 49 local and statewide public transit measures for a current Election Day passage rate of 69 percent. The current success rate for transit measures throughout 2016 is 71 percent. Throughout the country this year, in 23 states and communities of all sizes, voters considered nearly $200 billion in local investment for public transportation at the ballot box. The number of November 8 ballot measures (49), and their collective total amount (nearly $200 billion), were the largest in history. The success of public transportation measures demonstrates that voters have once again continued their legacy of strong support for local investment in transit options. Since 2000, the average success rate of transit measures is 71 percent.
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Additionally, 77 total transit measures appeared on ballots throughout 2016, the highest number on record. This follows a growing trend in the number of measures annually, which indicates local communities are increasingly understanding the need for local investment in public transportation and recognizing that ballot initiatives can be a powerful way to meet that need. “Americans from every background agree that more public transportation is great for their community. And with a passage rate of 69 percent, they show they are more than willing to pay for it,” said American Public Transportation Association (APTA) Chair Doran J. Barnes. “This remarkable passage rate for public transportation measures sends a strong message to President-elect Donald
Trump and to Congress that Americans support moving forward with funding from all levels of government that connects infrastructure investment with job opportunities and our country’s economic vitality,” said APTA Acting President and CEO Richard A. White. Jason Jordan, Executive Director of the Center for Transportation Excellence, said, “Voters nationwide upheld the demonstrated legacy of strong support for transit at the ballot box. Clearly, communities continue to recognize the economic, social, health and environmental benefits transit can provide and are willing to support and invest in its expansion and maintenance.” Source: American Public Transportation Association
civil/highway
callis contractors inc. Quality Work Speaks for Itself on Tollway Projects By American DBE Staff
Callis Contractors workers are completing the construction of an electronic tollbooth on I-540 in North Carolina. The company has constructed 20 toll booth facilities on four different projects and has developed an innovative method that cuts construction time in half.
J
esse Callis is a problem solver—a man who prides himself on being able to see things others don’t see and to figure out challenging situations better than his competitors. Therefore, when his company, Callis Contractors Inc. (CCI), ran into initial challenges after being contracted to build the electronic toll booths on the North Carolina Department of Transportation’s (NCDOT) first toll road project, he set out to solve the problem and find a better way to do the job. Electronic toll booths are small buildings, approximately 250 square feet in size, located next to the gantries holding cameras and other technology used to automatically charge travelers driving on a tollway. The buildings contain the expensive computer
equipment used to either charge drivers with a transponder in their vehicle, or capture the images of vehicles as they pass through the electronic toll stations; and then send the customer a bill for the fee. Therefore, it is imperative that these buildings be secure, dry and properly climate-controlled to ensure safe and consistent operation of the toll facility. CCI’s first subcontract to build electronic tolling facilities came on the Triangle Parkway project in North Carolina’s Triangle region working for S.T. Wooten Contracting Company. CCI, which is based in Durham, NC, was contracted to build seven tolling facilities on the project. Although the company performed excellent work on the contract, CCI encountered a number of
challenges along the way based on the initial engineering and design of the facilities. The primary challenge was assembling the facility walls onsite, and then connecting them in a way that prevented moisture from entering the facility. The CCI team discovered that elevating the floor and switching to a precast structure improved the quality of the structure, reduced the cost, and reduced the time necessary for construction. CCI’s successful re-engineering of the electronic tolling facilities has made the company an expert in this niche industry. To date, the company has completed 20 different structures for four different prime contractors and is scheduled to build five more in 2017. “When we first started this, it was taking about 15 weeks to complete // fall 2016
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a facility; now we can do it in six weeks,” Callis said. “We were building the whole thing onsite, but now we bring in a prefabricated building from Georgia with the door already in it.” Discovering better ways to do things is a skill Callis believes sets him apart as a business owner. It’s an ability he said comes from his childhood, while growing up on a farm in the rural town of Freeman, Virginia. Even a good friend from high school stated he was not surprised that Callis had a successful professional career and told him, ‘You were always the guy who was able to figure stuff out.’ Callis said, “On a farm, sometimes all you have is a pair of pliers and some wire, and you have to figure it out.” Callis further honed his skill for figuring things out by pursuing a career as an industrial engineer at Norfolk State University, and landed the highest salary job offer in his class to work for IBM after graduation. He continued to thrive during his 14-year career at IBM, quickly rising through the ranks by receiving four promotions to become a junior executive. However, when IBM began to experience a downturn in the market, Callis began to look at other opportunities and turned to his high school friend who owned a successful grading company in Maryland. His friend invited him up to Baltimore to see if he liked the construction industry and then encouraged him to get a general contractor’s license to start his own company. “My friend has a successful grading company and said he would support me if I started my own company,” Callis said. “So I started my company in 1994, and after I got my first contract with GSK (Glaxo Smith Kline), I haven’t looked back.” CCI has grown steadily since its beginning and has received multiple acknowledgements and awards along the way. The company currently has 11 staff, with a combination of administrators and project managers. The company also employs as many as 40 construction workers to complete projects. “One of the things I am most proud of is that we have hired more people of color over the years than any of the general contractors in this area,” Callis said. The company has twice been listed as one of the fastest growing inner-city businesses in America and was honored by President Barack Obama at the White House in 2013. “One of the things we do best is not being afraid of the challenge of figuring it out. People hire us because they know we will sit there and figure it out—and get stuff done,” Callis said. CCI has taken a diversified approach to the construction industry and does not solely rely on one sector of the industry. A large part of CCI’s initial reputation and construction experience was built in its primary niche, which focused on biomedical, pharmaceutical, clean laboratories, medical facilities and hospitals. The company has a long history working with companies like GSK, Merck and Biogen.
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Jesse Callis started Callis Contractors Inc. in 1995 after a distinguished career at IBM. The company is a licensed general contractor for buildings and highways in North Carolina. Over the last several years, CCI also has branched out to performing other commercial, private and local government work with projects ranging from $2,500 - $112M, with its largest single project, for masonry and other self-performed work, on The Streets at Southpoint Mall in Durham for $37.5 million. CCI also completed a successful nine-year period in the SBA 8(a) Program, working on projects for the U.S. Environmental Protection Agency and the U.S. Department of Energy. CCI has increased its presence in the transportation industry over the past several years through its work on the four NCDOT tollway projects: a transit operation and maintenance center for Capital Area Transit, a preliminary estimating project for Triangle Transit light rail project, and another concrete repair contract for NCDOT. Despite all of his success, Callis has remained grounded and connected to the values he learned on the farm in Freeman, as the son of parents with a combined 12 years of education. He most values helping other people reach their potential and making a difference in people’s lives. Callis said: “I push my staff to be their best and try to help them do that. I tell them don’t worry about making a mistake, because if you show me a person who hasn’t made any mistakes, I’ll show you a person that doesn’t have any experience. I paid for three employees to get their degree at N.C. Central, from my own pocket. I told them you don’t have to work for me once you get your degree; just help another brother, that’s all. I think, because I think that way, the blessing comes back.” Callis is proud of the success of CCI and the lives he has been able to impact along the way, although he doesn’t go out of his way seeking pats on the back or public acknowledgement for his contributions. Instead, he remembers a song his mother used to sing as he was growing up, and applies this philosophy to his business and success. He said, “My mother used to sing the song ‘May the work I’ve done speak for me.’ I try to live my life in that way.”
business development
dbe program update Litigation Victory in Chicago and USDOT Guidance on Retainage Payments By Colette Holt, Esq.
T
here have been two recent developments in the Disadvantaged Business Enterprise Program that are significant for stakeholders in the program. The first involves a litigation victory that continues the legal foundation of the DBE program, and the second involves new guidance from the United States Department of Transportation on the return of retainage payments to DBE subcontractors during federally-funded transportation projects.
extensive disparity studies, including one by this author. Midwest's main objection to the defendants' evidence was that it failed to account for “capacity” when measuring DBE availability and underutilization. This position was soundly rejected. The plaintiff failed to present “credible, particularized evidence” of its own, and offered only conjecture about how the defendants’ studies supposed failure to account for “capacity” may or may not have impacted the studies' results.
Litigation Victory
Of particular importance to agencies implementing state or local programs, the court stressed that the Tollway’s goal setting is identical to that prescribed by Part 26 and is fully transparent; the Tollway’s studies provided persuasive evidence of discrimination in the Illinois road construction industry and the plaintiff failed to produce any concrete, affirmative evidence to shake this foundation; the program's burden on non-DBE subcontractors is permissible; the agency provides for waivers when prime contractors are unable to meet DBE goals but have made good faith efforts to do so; and its race-neutral measures are consistent with Part 26.
In a critical win for the U.S. Department of Transportation’s DBE Program and state and local DBE-type programs, the federal court of appeals in Chicago upheld the programs of the Illinois Department of Transportation (IDOT) and the Illinois Tollway. The plaintiff, Midwest Fence Inc., had challenged the DBE regulations at 49 C.F.R. Part 26; IDOT’s implementation of those regulations and its DBE Program for state-funded contracts; and the Illinois Tollway’s separate DBE Program modeled on Part 26. The court held that the regulations are constitutional, joining every other court that has considered the issue; IDOT’s implementation of the regulations was proper; and the Tollway’s program for state-funded contracts was based on a compelling interest and was narrowly tailored. The plaintiff is an $18 million per year fencing and guardrail contractor owned and controlled by White males. The plaintiff argued that the agencies lacked proof of discrimination, and the company was unduly burdened as a specialty trade firm that directly competes with DBEs for prime contracting and subcontracting opportunities. The Seventh Circuit affirmed summary judgment in favor of all defendants on all claims. First, like every prior decision and for the same reasons, the court held that Part 26 is facially constitutional. Second, IDOT’s implementation of the federal regulations was narrowly tailored because it was in conformance with the regulations and its program for state-funded contracts—modeled on Part 26— was based upon ample evidence of discrimination as proven through several disparity studies over many years. Third, the Tollway’s DBE Program “substantially mirrors that of Part 26” and was based on
Here are the takeaways: • The DBE program regulations are constitutional on their face. Attacks on Part 26 have uniformly failed and this issue should be put to rest. • A program that lacks a disparity study is unlikely to survive constitutional scrutiny. • State and local agencies would do well to model their programs to the greatest possible extent on Part 26. • Agencies should keep detailed records of how contract goals are set and good faith efforts requests for reductions in contract goals are addressed. • Realistic and workable race- and gender-neutral approaches should be implemented and detailed records maintained of the effectiveness of such measures in reducing barriers to DBE opportunities.
USDOT DBE Program Guidance The Department issued guidance in its Questions and Answers section on the relationship and obligations between prime contractors and subcontractors and recipients’ duties to monitor those relationships. A prime contractor will no longer be permitted to withhold retainage from a subcontractor–both DBE and non-DBE–until the end of the project when it has received all its retainage from the recipient agency. Recipients that hold retainage must make incremental acceptances of portions of the prime contract as the work is completed so that retainage that covers the work is released before final payment for contract completion. If the recipient holds retainage against the prime contractor or the prime contractor holds retainage against the subcontractor, there must be a contract clause obligating the payment of retainage within 30 days of the recipient’s incremental acceptance of the work performed by the subcontractor or payment of retainage by the prime contractor within 30 days of satisfactory completion of the work performed by the subcontractor.
the obligation does not arise if there is a legitimate dispute over the subcontractor’s performance. Recipients are encouraged to develop a payment dispute resolution process. A prime contractor may not withhold payment to a subcontractor that has satisfactorily completed work on the contract as a means to address a dispute between the prime contractor on an unrelated contract. A broad array of penalties for prime contractor non-compliance is available to recipients. The recipient has an obligation to investigate a payment complaint and provide a timely response to the complainant. The lack of a contractual relationship between the agency and the subcontractor has no effect on the agency’s obligation to monitor prompt payment (and other DBE Program requirements). Relying solely on complaints or notices from subcontractors is insufficient; affirmative steps to monitor and enforce prompt payment and retainage requirements (electronic monitoring systems, cancelled checks, etc.) are required. A subcontractor may contact the appropriate Operating Administration (Federal Highway Administration, Federal Transit Administration or the Federal Aviation Administration) for relief.
The obligation to promptly pay subcontractors and to release retainage is a material term of a DOT-assisted contract. However,
Colette Holt, Esq.
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Colette Colette HoltHolt & Associates & Associates provides provides legallegal counsel counsel andand consulting consulting services services to governments andand businesses. to governments businesses.
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Colette Colette Holt &Holt Associates & Associates is a firm is aoffirm nationally of nationally recognized recognized experts experts in conducting in conducting disparity disparity studies studies and designing, implementing and defending and designing, implementing and defending successful affirmative programs. successful affirmative actionaction programs. Led byLed by Ms. Holt, our team has decades of experience Ms. Holt, our team has decades of experience in in statistical analysis andpractices best practices legal legal issues,issues, statistical analysis and best in in . . program administration administration program
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• Minority/Women/Disadvantaged • Minority/Women/Disadvantaged Business Business Programs Programs • Affirmative • Affirmative ActionAction and Compliance and Compliance Consulting Consulting and Training and Training • Disparity and Availability StudiesStudies • Disparity and Availability • Speaking and Presentation Services • Speaking and Presentation Services • Expert Witness Services • Expert Witness Services • General Counsel to American Contract Compliance Association • General Counsel to American Contract Compliance Association
m o c .w a(773) lebw (773) m255-6844 .w w 255-6844 w • m• ocolette.holt@mwbelaw.com c .•w acolette.holt@mwbelaw.com l e b w m @ t l o h . e t t e l o c • 4• 4www.mwbelaw.com 8 6• - 5www.mwbelaw.com 52 )377(
business development
across the middle:
Entrepreneur Strategies for Growth and Success Marvin Carolina Jr.
I
n Across the Middle: Entrepreneur Strategies for Growth and Success, Marvin Carolina Jr. explains how small-business owners can make their businesses more effective, more efficient, and more profitable. He understands business and knows the challenges small-business owners face because he was a business owner for six years, with annual sales of nearly $1 million. After six successful years in business, Marvin returned to Corporate America, and in 2005 he accepted a job as director at JE Dunn Construction, a multibillion-dollar construction-management company. He soon found a group of business owners in need of his expertise. Minority construction contractors and women construction contractors in Kansas City, Missouri, had been struggling to compete with the larger, well-established contractors, so he helped create a program to help them compete. The program he helped create is in its eleventh year and is taught to smallbusiness owners across the country. More than 80 percent of the program’s graduates have increased their sales, created jobs, and expanded their businesses’ capabilities. These minority and women business owners have won more than 170 JE Dunn contracts
totaling more than $50 million. The lessons in this book can help your business regardless of its industry, geographic location, or size. Marvin knows you’re busy, so he intended for this book to be a quick read; and having played football at Georgia Tech, he uses the occasional sports analogy to illustrate his point. Here are a few excerpts:
“You Need Rest to Be Your Best” (Chapter 3)
“Embrace Technology” (Chapter 10)
“You have heard the saying, “If it ain’t broke, don’t fix it.” It sounds like ancient wisdom, but it is not: T. Bert Lance, a government employee, is credited with popularizing this expression in 1977. As a business owner, to stay ahead of the competition—or even keep pace with it—you must find ways to operate more effectively and efficiently. Technology helps you do both.
“Stop working nights and weekends." It is easy to forgo sleep when you are running a business because you are doing everything—balancing the ledger, creating advertisements, making sales pitches, talking to customers—and you are also producing your product or providing your service. With so much to do, you fall into bed around midnight and roll out of it at 6:00 a.m. You start each day the way you ended the previous one: tired and stressed. You get your morning coffee and after a cup, or several, you are ready for work. At least you think you are.”
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Wesley Stith, Clark Construction; Ron Gomes, HMSHost; Iberia Miles, Vice President, TreKnot Organization; and Tyra Redus, Esq., District Department of Transportation serve as panelists for the "Making it Count - Partners in Excellence" panel discussion focusing on the best practices for running a successful DBE business and working with State DOTs.
usdot dbe summit highlights program improvements
M
ore than 200 small, woman-, and minorityowned firms assembled with government officials and potential prime contractors for the U.S. Department of Transportation DBE Summit on October 26, 2016. The event coincided with the national observation of Minority Business Development Week and gave Disadvantaged Business Enterprise (DBE) Program stakeholders the opportunity to hear recent program updates from USDOT leadership about the three modes of transportation—aviation, transit and highways—comprising the federal DBE Program. Participants at the day-long event had the opportunity to 36
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receive technical assistance training and to learn about upcoming transportation business opportunities.
everyone being at the table, and our best results come when the process is opened up to everyone.”
During the summit, U.S. Transportation Secretary Anthony Foxx stressed the need for transportation to create opportunities for all Americans, especially those historically left behind by economic opportunities arising from past transportation improvements. Foxx said: “Events like this are important to me, from my time on the Charlotte City Council, to my time as mayor of a fast-growing American city; that is something I’ve never forgotten. Success as a community, success as a city, success as a department, or success as a nation really does come down to
Two DBE program areas that received significant consideration and discussion at the summit were prompt payment and DBE certification. Federal program administrators from the Federal Transit Authority, Federal Highway Administration and the Federal Aviation Administration discussed their respective agency’s current focus on fully implementing recent USDOT guidance on monitoring and enforcing prompt payment and retainage provisions in the DBE Program regulations. The recent guidance, issued in Spring 2016,
urges recipients of federal transportation funds to increase their oversight of federal contractors and ensure that all DBE subcontractors are paid within 30 days of receiving payment on a transportation contract. The guidance also reiterates the requirement for prime contractors to make retainage payment to DBEs and all other subcontractors when their portion of work is accepted by the transportation agency, specifically outlining that those payments cannot be withheld until the end of the total project. This guidance requires transportation agencies that withhold retainage from prime contractors to make incremental acceptance of work annually, so that subcontractors can be repaid their retainage by the prime contractor on work accepted by the agency. Similar to prompt payment requirements, prime contractors must pay subcontractors retainage payments within 30 days of receiving payment from the transportation agency. USDOT representatives also stressed to conference participants that recipients of federal transportation funds are required to ensure the enforcement of prompt payment and retainage rules, and must be prepared to sanction prime contractors who fail to comply.
administrative burden and costs on small businesses that seek to pursue contracting opportunities in other states. During the discussion the panel reviewed the interstate certification rule found in 49 C.F.R. part 26.85 in detail to ensure participants gained a better understanding of the process explaining how interstate certification applications should be processed by certifying agencies. In addition to the technical assistance and training sessions, DBE firms attending the summit also were given the opportunity to network with government agencies and prime contractors seeking DBEs for business opportunities. During the afternoon breakout sessions, DBEs attended training sessions for “Winning Government Contracts” and “DOT Contractor Development Resources” to provide additional information to help DBEs succeed. “I thought it was a great event,” said Ken Weeden, President of Ken Weeden and Associates. “I thought the training was good and I really liked that they talked about upcoming business opportunities.” The summit closed with a presentation by USDOT Chief Opportunity Officer Stephanie Jones, who highlighted
DBE certification was another topic discussed during the summit. Representatives from the USDOT Departmental Office of Civil Rights provided technical assistance and training to business owners, DBE industry consultants, and government practitioners in managing the certification process. USDOT panelists reviewed recent DBE rule changes and guidance relating to the provision allowing certifiers to consider an applicant’s ‘ability to accumulate significant wealth’ as a part of making the determination of whether an applicant is economically disadvantaged. The panel acknowledged some of the challenges with this new section of the regulation and hopes that additional training and guidance will help create consistency throughout certifying agencies across the country. The certification panel also addressed continuing issues with interstate certification. Given that approximately one-third of DBE-certified businesses will seek certification in another state, challenges with this section of the regulation are troubling for both business owners and certifying agencies. The panel stressed the fact that the interstate certification rule’s purpose was to reduce the
Stephanie Jones, Senior Counselor to the Secretary and Chief Opportunities Officer, gives closing remarks at the USDOT DBE Summit.
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Over 200 DBE firms and program administrators filled the atrium of the U.S. Department of Transportation Headquarters Building for the U.S. DOT DBE Summit on October 26, 2016. The theme for the event was Access to Opportunity for the DBE/Small Business Community.
the advances made during the tenure of Transportation Secretary Anthony Foxx, and reiterated the support he has provided to the Civil Rights area of USDOT. Jones said, “Our job is to ensure that we are providing opportunity to DBEs and protection to people under Title VI. Because sometimes we are the only entity that can provide protection and make sure everyone is getting an opportunity. Sometimes that means getting in the way, and sometimes it means making people uncomfortable; but Secretary Foxx has encouraged us to do this and supported us.”
The combination of those actions, paired with top-down support, has helped the DBE Program achieve a 12 percent participation rate, meaning that 12 percent of all DOT contract dollars were awarded to DBE firms in federal fiscal year 2016. Secretary Foxx said, “The numbers tell us that the work that we have been putting forward toward the DBE Program is actually yielding some positive results. That 12 percent participation rate represents over 35,000 contracts, which are worth nearly $5 billion to DBEs.”
Register Now 2017 AVIATION
INDUSTRY DAY Tuesday January 17, 2017 11:00 AM - 6:00 PM Clyde Muse Center
Hinds Community College, Rankin Campus 515 Country Place Parkway - Pearl, MS 39208
COMPLIMENTARY LUNCH
RSVP to: Jack Thomas | 2017briefing@jmaa.com | 601.664.3518
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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.
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business development
Just Ask Iris
STIRRING THE POT: HOW MARKET DISRUPTION CAN SECURE THE FUTURE OF YOUR ENTERPRISE By Iris Ann Cooper, Ph.D.
S “
tirring the pot” conjures up threatening images of subterfuge from the undesirables in your world, right? Troublemakers. Antagonists. Villains. Who is empowered to stir your pot? The IRS can stir your pot. The health department can stir your pot. Employees and family members can stir your pot (and burn the entire meal!) However, for this discussion, the “undesirable” is the main competitor that is challenging and appraising your business model 24-7. Check out the impact of market disruption: •
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Uber has stirred the Yellow Cab pot and is now challenging FedEx with package delivery. Amazon and eBay stirred the retail shopping experience pot and now many malls are practically empty and closing. Redbox sales are waning as online movie viewers increase. Theaters have to re-engineer with restaurants and arcades to attract customers to view firstrun movies. The funeral business has seen serious disruption, as cremation is on track to dominate the death conclusion market by 2025, according to the Cremation Association of North America.
Who knew the world would change so dramatically for these industries?
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Stirring your own pot will keep you fully engaged with the strengths and weaknesses of your business model. For what it’s worth, the business model is only as relevant as the operating environment that surrounds it. So, why on earth would you mess up a good thing like an old- school, sanctified soul food restaurant or a perfectly packaged franchise operation? You would, could and should do just that if you covet a business model that will survive the market and economic risk that are certain to visit your business regularly and unpredictably. The business model is the brains and skeleton of your business. The business model guides the activities and processes for profit creation. In other words, profit is the potion in the pot that pays the bills and puts a smile on the proprietor’s face. If you ignore or neglect business model maintenance, you invite market disruption from the undesirables—AKA, your competitors. Entrepreneurial pioneer Michael Porter (1996) suggested that market strategy must focus on the competitive advantage: the ability to be different enough to capture and sustain consumer engagement. The 4Ps of Marketing, (the marketing mix), are product, place, promotion and price; these concepts buttress a traditional business model, but the operating
environment today is anything but traditional. Sustainability also depends on being different enough to satisfy your target customer’s continual desire for new bells and whistles. Using the 4Ps, let’s explore how a food entrepreneur might disrupt his or her model to gain greater market share. As a note, franchises require special seasonings to “stir the pot,” given the restrictions of the franchise and lease agreement. •
Product: In the restaurant industry, the product and the service are difficult to separate from the brand, also known as the experience. Your menu may be fixed, but the service quality is always variable. Franchises have reputations for transactional customer relationships, which can be cold and brief. Restaurant staff must seamlessly move among patrons from varied demographics and ethnicities with agility and adaptability, especially in urban settings. Your staff can be the crucial factor for an infrequent patron to return if special attention is directed to him or her before, during and after the meal. When possible, a visit from the owner to greet customers is a special treat that seldom happens in franchise restaurants. Show up and thank the customers for their business and they will forever remember that meal.
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Place: A 2014 study revealed that customers care more about the experience than the price, and will seldom return if the establishment was not clean or if service was poor. Busy times require extra attention to bathrooms, tables and booths. The restaurant environment is one of the most influential factors of customer satisfaction, second only to food quality. Theme, ambience and décor contribute to a positive experience and reinforce the restaurant brand. Restaurants with ADA accommodations are favorites for individuals with different abilities and are sometimes ignored by competitors. On special occasions, how about a musical concert from a local musician to really delight your guests? Price: Although price is not the deciding factor in restaurant choice, and may be predetermined, it is critical to certain customers. Assuming pricing is competitive, owners can use ancillary items to increase sales with minimal resistance from customers. Desserts and beverages appeal to many customers; a diner without a dessert or a beverage is an opportunity to sell. The availability of discounts to senior citizens is a leading attraction for those individuals over 55 years of age. Children’s menus also attract parents with conservative budgets. Perhaps a customer loyalty program may encourage customers to return when
they visit the vicinity again, enhancing future sales prospects. •
Promotion: Free trials bring customers to the menu board, especially if they have never tasted the food. Each day a new dish tasting could entice customers to patronize your café. Hotcards distributed for complimentary beverages or desserts with a meal entice customers to explore the offerings as they pass your business. Each day can be an internal celebration that sets your establishment apart from competitors. The total experience makes the difference between a satisfied patron and one that never returns.
Change is constant, and those who resist change will dry up and become a leftover. Opportunities to innovate and disrupt the market are today’s special on your menu for sustainability. Hire a private shopper weekly to test your business model for the 4Ps to learn the good, the bad and the ugly! Stir up your pot today to disrupt the market and extinguish your competitor’s plan to have your business for lunch! JUSTASKIRIS! YOUR SOURCE FOR SOUND BUSINESS ADVICE Dr. Iris Cooper www.justaskiris.com iris@justaskiris.com
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opinion
Who Does the "Rebuilding of America's Infrastructure" Include? By Wendell Stemley, National President National Association of Minority Contractors
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ebuilding our infrastructure and communities” is an often-used phrase that is oversimplified. There will always be rebuilding of infrastructure and minority communities. The problem is we are seldom the owners, developers, contractor builders or high-wage workers. We need to be partners in ownership, development, building, operators and employers of the local community workforce in a process where public and private Fortune 500 companies continue to build successful, quality projects while allowing diversity to be an integral part of the planning and execution of that success. NAMC is concerned that we are losing a generation of minority youth because of neglect and indifference. We can no longer ignore the obvious: AfricanAmerican males, 18-35, have the highest unemployment rate in America. Other minority groups, women, veterans, and disabled veterans have also seen similar disparity. To that end, Minority Jobs Matter also. The number of minorities and minority communities that are being left out of the rebuilding of America’s infrastructure is daunting. For state agencies to award billions of dollars of work annually, and for certain minority groups to only receive less than 1 percent of those dollars is unacceptable.
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Ironically, these minority groups are not left out of paying the 18-centper-gallon federal sales tax to fund the U.S. Department of Transportation's highway program. NAMC's efforts are timely, given passage of the recent Fixing America’s Surface Transportation (FAST) Act in December 2015. The FAST Act authorizes the program at $4.5 billion for fiscal years 2016 through 2020, including $850 million for FY 2017 to be awarded by the Secretary of Transportation. The grants, totaling nearly $800 million, will be combined with other funding from federal, state, local and private sources to support $3.6 billion in infrastructure investment in 15 states and the District of Columbia. The legislation authorizes over $300 billion in funding transportation projects over the next five years, which potentially presents opportunities for Disadvantaged Business Enterprise (DBE) firms. The new legislation also addresses a long-standing issue in the DBE community by requiring the U.S. Department of Transportation to undertake measures to ensure prompt payment to DBEs. President-elect Trump has stated that he plans to add a trillion dollars of public and private infrastructure spending to rebuilding America.
Call to Action Citizens must be involved with local representatives, such as mayors and city council members, as well as state and congressional representatives, to ensure that the needs of their communities are included in the appropriations to rebuild America’s infrastructure. NAMC urges you to ask government representatives how rebuilding is going to work for and benefit small business, local communities and mandatory participation requirements. Please understand -- this is your money. Every time you go to the gas station, you help fund the transportation bill. We all pay the 18-cent federal gas tax, so all of us should have the right to equal services. Wendell Stemley currently serves as national president of the National Association of Minority Contractors, an advocacy organization based in Washington, D.C.
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// fall 2016