Delaware Pilots an “Opportunity for All” Agenda in Construction

BY CERRON CADE

IN 2022, the Delaware Office of Management & Budget (OMB) released a disparity study with sobering results. The 300-page study confirmed what many have known anecdotally for decades; Delaware does an abysmal job of hiring minority-owned contractors to perform public works projects. Between 2015 and 2020, Delaware allocated billions of taxpayer dollars to support our infrastructure and facilities. Our study showed that during that time only 2% of those contracted funds went to Hispanic-owned businesses and 0.2% went to AfricanAmerican-owned businesses.

After decades of inaction in Delaware, while surrounding states and the federal government have implemented minority business goals, Governor Carney decided to act. OMB was tasked with developing a two-part pilot with the purpose of building a system to support broad implementation of Disadvantaged Business Enterprise (DBE) goals and to increase minority and local workforce participation on state construction projects. We’ve selected the new Hodgson Vocational High School as our DBE pilot. We’ve partnered with the New Castle County Vo-Tech School District to ensure a successful pilot and speedy development of their new $135 million school. To build an effective statewide DBE program, we will need to establish a pre-qualification process for DBEs; technology to facilitate contractor certification and identification; a sound methodology to establish achievable goals for projects; and a system of accountability to ensure the program operates the way it’s intended. We are also excited to share that this pilot will include a cooperative agreement allowing Vo-Tech students to work on the project, promoting long-term career opportunities for our kids.

Ensuring that Delaware does business with companies that reflect our great diversity is long overdue, but it’s not enough. For years, many have lamented the lack of diversity in the construction workforce. By working in collaboration with contractors, unions, and community organizations, Delaware can play a major role in spurring greater participation by training Delawareans in lucrative careers and providing expanded opportunities for work.

As a result, the second part of this pilot will test a new approach to include workforce participation goals for state construction projects.

We’ve selected three separate workforce pilot projects totaling $125 million. These projects will include Community Workforce Agreements ensuring participation from the community at large. These agreements will encourage labor unions and local contractors to recruit and train a more diverse workforce and report on outcomes. The Delaware Department of Transportation has also selected two projects to test similar workforce goals. These goals will require and encourage the participation of women, minority, local, and union workers on statefunded projects.

The disparities we are attempting to correct through these pilots are not just a matter of fairness, but given Delaware’s ranking as the sixth state with the highest percentage of African-Americans (23%), if left unaddressed, these disparities could become an anchor to Delaware’s overall economic growth. These pilots will provide us with much needed data and practical experience that we can use to recommend permanent policy solutions. We are obligated to respond to these problems, and we are required to solve them.

Cerron Cade is director of Delaware’s Office of Management & Budget.

The purpose of these articles is to provide the platform for two perspectives to be shared. The views are that of the authors. View the other perspective here: https://issuu.com/destatechamber/docs/delaware_business_march_april_2023_7640/s/20359383