CITY OF CINCINNATI, OHIO DISPARITY STUDY May 2014 MEETING AGENDA • • • • • • Introduce Study Team Outline Research Objectives Discuss Data Collection Process Establish a Partnership Present Contracting Opportunities Receive Public Comment MASON TILLMAN ASSOCIATES, LTD. Established in 1978 Public Policy Research and Marketing Professionals AWARD WINNING COMPANY Services Divisions Business Affirmative Action Corporate Communication DISPARITY STUDIES ON TIME AND UNCHALLENGED Cities- 29 Counties- 20 States- 15 Schools- 15 Districts- 48 127 Total Studies MUNICIPAL EXPERIENCE Mason Tillman Municipal Clients City of San Jose, California City of Knoxville, Tennessee City of Richmond, California City of New Haven, Connecticut City of Portland, Oregon City of Pittsburgh, Pennsylvania City of Gresham, Oregon City of Durham, North Carolina City of Indianapolis, Indiana City of Dallas, Texas City of Seattle, Washington City of Cleveland, Ohio City of Oakland, California City of Boston, Massachusetts City of Bridgeport, Connecticut City of New York, New York City of Tampa, Florida City of Kansas City, Missouri City of Houston, Texas City of Fort Worth, Texas City of Davenport, Iowa City of Arlington, Texas City of Jacksonville, Florida City of Fort Wayne, Indiana SUBCONSULTANT TEAM Subconsultant Ellington Management Services, Inc. MAE Consulting, Inc. The Voice of Your Customer Business Status Services Provided MBE Business Outreach, Anecdotal Interviews, Ethnic and Gender Survey, Data Collection M/WBE Data Collection M/WBE Website Development and Web Hosting, Regression Analysis, Willingness and Expenditure Surveys, Anecdotal Interviews STUDY OBJECTIVES • Determine If Statistical Disparity Exists • Determine Practices Affecting Any Documented Disparity • Assess Effectiveness of Race and GenderNeutral Programs • Prepare a Legally Defensible Study RESEARCH CHALLENGES • Conduct Outreach to Ethnically Diverse Communities • Identify Prime and Subcontract Awards and Payments • Recommend Best Management Practices to Eliminate Barriers CROSON STANDARD • Compelling Purpose State/Local • Richmond v. Croson Evidence of Systemic Racial Discrimination • Narrowly Tailored Remedy Documented Discrimination Federal • Adarand v. Pena • Update Periodically Assess Effectiveness of Remedy NARROWLY TAILORED REMEDY • Disparity Findings are Ethnic and GenderSpecific • Race and Gender Goals Limited to Disparity Findings • Goals Defined by Availability KEY DISPARITY STUDY ELEMENTS • Collection of Prime and Subcontracts • Analysis of Prime and Subcontractor Utilization • Enumeration of Willing and Able Businesses • Collection of Anecdotal Accounts • Recommendations to Eliminate Contracting Barriers UTILIZATION ELEMENTS Subcontract Expenditure Contract Amendments and Change Orders Subcontract Award Prime Contract Award Award Date and Number Contractor Ethnicity and Gender Industry Codes AVAILABILITY THE ACHILLES HEEL Potential Bidders Successful Bidders Unsuccessful Bidders Pool of Willing Businesses Access Capacity and Qualifications Contract Size M/WBE Awards Dollar Threshold BUSINESS PROFILE Businesses City of Cincinnati State of Ohio United States Less than 5 employees 47.95% 49.58% 54.6% Less than 10 employees 68.18% 70.06% 73.5% Less than 20 employees 82.84% 84.45% 86.3% Over 100 employees 3.1% 2.72% 2.3% Minority-owned Businesses 22.3% 9.18% 21.2% Woman-owned Businesses 29.5% 27.75% 28.8% U.S. Census: County Business Patterns 2009; US Census Survey of Business Owners 2007 IN-DEPTH INTERVIEW PROCESS • • • • • Screen Potential Interviewees Select Business Owner Interviewees Conduct 60 In-depth Interviews Transcribe, Code and Analyze Interviews Assess Patterns and Practices WHAT IS AN ANECDOTAL FINDING? GENERAL DISCRIMINATION • • • • Racial Stereotyping Sexual Harassment Workplace Intimidation Barriers to Financing and Credit BARRIERS CREATED BY PUBLIC AGENCIES • • • • • • Bid Information Difficult to Obtain Inadequate Lead Time to Bid Lowest M/WBE Bids Cancelled Excessive Monitoring Contracts Bundling Late Payments BARRIERS CREATED BY PRIME CONTRACTORS Bids Shopped after Awards Low M/WBE Bidder Denied Contract Reduction in Scope of Work Unauthorized Substitution of M/WBEs Higher Performance Standard for M/WBEs • Late Payments • • • • • HELP US IDENTIFY Anecdotal Current Business Owners Retired Business Owners Former Business Owners Utilized Subcontractors Availability PARTNER WITH US • Agree to an Anecdotal Interview • Complete a Business Survey Email Cincinnatistudy@mtaltd.com Website www.cincinnatidisparitystudy.com Mail Mason Tillman Associates, Ltd. 1999 Harrison Street Suite 1440 Oakland, CA 94612 Telephone (513) 806-2348 CONTRACTING OPPORTUNITIES UPCOMING CONTRACTS Michael Cervay, Finance Manager/City Purchasing Agent E-mail michael.cervay@cincinnati-oh.gov Website http://www.cincinnati-oh.gov/ Telephone (513) 352-1947 COMMENTS LIMIT RESPONSES TO 2 MINUTES • Please State the Following: – Your Name – Your Business – Your Organizational Affiliation THANK YOU!