Final Report Availability and Disparity Study

Transcription

1 Final Report Availability and Disparity Study Nevada Department of Transportation

2 Final Report June 15, 2007 Availability and Disparity Study Prepared for Nevada Department of Transportation 1263 S. Stewart St. Carson City, Nevada 89712s Prepared by BBC Research & Consulting 3773 Cherry Creek N. Drive, Suite 850 Denver, Colorado fax

3 Table of Contents ES. Executive Summary Study Overview... ES 1 Overall Annual DBE Goal... ES 1 Percentage of the Annual Goal to be Achieved through Neutral Means... ES 2 Measures to Implement the Program... ES 5 I. Introduction Study Scope... I 1 Federal DBE Program... I 1 Legal Requirements for NDOT Implementation of the Federal DBE Program... I 3 Study Team... I 4 Organization of Report... I 5 II. Analysis of MBE/WBE Availability Measuring MBE/WBE Availability... II 1 Results of the Availability Analysis... II 4 Dollar-weighted MBE/WBE Availability... II 8 Base Figure for Overall Annual DBE Goal... II 11 III. Summary of Marketplace Conditions and Possible Step 2 Adjustments to the Overall DBE Goal Factors that Suggest a Downward Adjustment to the Overall Goal... III 1 Factors that Suggest an Upward Adjustment to the Overall Goal... III 2 Summary... III 4 IV. Summary of Utilization and Disparity Analysis for NDOT Contracts Results of the Utilization Analysis... IV 2 Overall Disparity Analysis... IV 6 Analysis of Statistical Significance of Any Disparities... IV 13 Summary... IV 16 V. Construction Subcontracts Information on Subcontracting in the Transportation Construction Industry... V 1 Effect of DBE Contract Goals on Utilization... V 5 Disparity Analysis... V 8 Participation of MBE/WBE Subcontractors in the Private Sector... V 9 BBC RESEARCH & CONSULTING i

4 Table of Contents VI. Construction Prime Contracts Qualitative Information on Prime Contracting in the Transportation Construction Industry... VI 1 MBE/WBE Utilization as Prime Contractors... VI 4 Disparity Analysis... VI 7 Results for Small Construction Prime Contracts... VI 9 Participation of MBE/WBEs in the Private Sector... VI 9 VII. Engineering Subcontracts Qualitative Information on Subcontracting in the Transportation Engineering Industry... VII 1 Effect of DBE Contract Goals on Utilization... VII 2 Disparity Analysis... VII 4 Participation of MBE/WBEs in the Private Sector... VII 4 VIII. Engineering Prime Contracts Qualitative Information on Prime Contracting in the Transportation Engineering Industry... VIII 1 MBE/WBE Utilization as Prime Consultants... VIII 3 Disparity Analysis... VIII 5 Results for Small Engineering Prime Contracts... VIII 6 Participation of MBE/WBEs in the Private Sector... VIII 6 IX. Possible Neutral Remedies Business Outreach and Communication...IX 1 Technical Assistance...IX 4 Financing, Bonding and Insurance Assistance...IX 5 Contracting Practice Improvements...IX 5 Small Business Preferences...IX 7 Data Collection, Tracking and Reporting...IX 7 Resource Requirements...IX 7 X. Summary Overall Annual DBE Goal...X 1 Percentage of the Annual Goal to be Achieved through Neutral Means...X 1 Measures to Implement the Program...X 3 BBC RESEARCH & CONSULTING ii

5 Table of Contents APPENDICES: A. Definitions of Terms...A 1 B. Legal Environment for NDOT DBE Program... B 1 C. Availability Survey...C 1 D. Procedures for Estimating MBE/WBE Availability... D 1 E. Disparity Tables... E 1 F. Quantitative Analysis of Nevada Marketplace... F 1 G. Analysis of U.S. Census of Population Data... G 1 H. Regression Analysis...H 1 I. Summary of Anecdotal Interviews... I 1 BBC RESEARCH & CONSULTING iii

6 SECTION ES. Executive Summary The Nevada Department of Transportation (NDOT) must implement the Federal Disadvantaged Business Enterprise (DBE) Program in order to receive U.S. Department of Transportation (USDOT) funds. Recent legal decisions and guidance from USDOT have led NDOT to reexamine how it implements the Program. NDOT retained BBC Research & Consulting (BBC) to conduct a Disparity Study to assist the Department in its implementation of the Federal DBE Program. Study Overview This Disparity Study examines the transportation construction and engineering industry in Nevada and related contracts awarded by NDOT. The Study focuses on FHWA- and state-funded contracts. The study team examined more than 2,500 construction and engineering contracts and subcontracts from October 1999 through To examine relative availability of minority- and women-owned firms for this work, BBC attempted telephone interviews with about 2,200 business establishments in the local transportation contracting industry. In addition, the study team conducted in-depth interviews with firm owners and trade association representatives across the state. This summary discusses: Data concerning the overall annual goal for DBE participation in federally-funded contracts; Information on how much of the annual goal can be achieved through neutral means; and Specific measures NDOT should consider to implement the program. Overall Annual DBE Goal NDOT must develop an overall goal for DBE participation whether or not it implements race- or gender-conscious programs. Its recent overall annual goals for DBE participation have ranged between 5 and 6 percent. The Federal DBE Program calls for a base figure analysis and consideration of any step 2 adjustments in deriving an overall annual goal for DBE participation in federally-funded contracts. Base figure analysis. After considering type, contract role, location and size of work involved in federally-funded projects and the relative availability of firms to perform that work, BBC determined that 14.6 percent of dollars on federally-funded contracts would go to minority- and women-owned firms (MBE/WBEs) if available MBE/WBEs received the same amount of work as similarly-situated majority-owned firms available for such work. BBC RESEARCH & CONSULTING SECTION ES, PAGE 1

7 Many minority- and women-owned firms are not currently DBE certified, and some of the largest MBE/WBEs might not meet the federal eligibility requirements for DBE certification. After removing the largest minority- and women-owned firms from the analysis of potentially DBEcertified firms, the revised based figure analysis indicates 5.7 percent DBE utilization. Step 2 adjustments. NDOT could consider adjustments in the base figure through a step 2 process. BBC reviewed relevant types of information for a step 2 adjustment that are outlined in the Federal DBE Program. Based on the information compiled in the NDOT disparity study, there are reasons to consider downward adjustments to the base figure and reasons to consider upward adjustments to the base figure. It will be difficult for NDOT to encourage the many non-dbe-certified firms to apply for certification. However, other information indicates barriers to entry into the Nevada construction and engineering industries, low rates of business ownership for certain groups working in the industries, lower business earnings and other barriers for minority- and women-owned firms including access to capital. BBC s review of the information suggests that factors indicating downward adjustments in the base figure would be offset by factors indicating upward adjustments in the base figure. NDOT should include all of the above information in its consideration of a base figure and whether or not to make any step 2 adjustment when determining an overall annual goal for DBE participation. Percentage of the Annual Goal to be Achieved through Neutral Means The Federal DBE Program requires NDOT to assess the percentage of its overall annual DBE goal that can be achieved through neutral means, and if necessary, the percentage to be achieved through race- and gender-conscious measures. Evidence of disparities when NDOT implements an all-neutral program. BBC compared utilization and availability of minority- and women-owned firms for both state-funded contracts and for federally-funded contracts. State-funded contracts. Because NDOT has operated a solely neutral program for state-funded transportation contracts, analysis of these contracts suggests how closely utilization matches availability in an all-neutral environment. BBC found that MBE/WBE utilization on state-funded contracts reached only 59 percent of what would be expected based on MBE/WBE availability for these contracts from October 1999 through Past effectiveness of the DBE contract goals program. Even with the DBE contract goals program, there were disparities between overall utilization and availability of minority- and women-owned firms in federally-funded contracts. MBE/WBE utilization was about one-half of what would be expected based on relative availability for those contracts. BBC RESEARCH & CONSULTING SECTION ES, PAGE 2

8 Federally-funded contracts after October 1, BBC also examined MBE/WBE utilization and availability for federally-funded contracts for October 2005 through 2006, after NDOT widely communicated that it had discontinued DBE contract goals. Based on the limited number of federally-funded prime contracts and subcontracts during this time period, MBE/WBE utilization was about 82 percent of what would be expected based on availability for the particular contracts and subcontracts in this time period. It may be too early to tell whether or not MBE/WBE utilization on federally-funded contracts will continue at this level or whether utilization will decline to what has been found for state-funded contracts. NDOT should closely monitor utilization of minority- and women-owned firms as well as certified DBEs on both federally-funded and state-funded contracts after 2006, the end of the time period for the utilization analysis in the BBC Disparity Study. Other disparity analysis. Beyond these analyses of overall utilization and availability of minorityand women-owned firms, BBC examined quantitative information concerning the Nevada marketplace and the relative use of minority- and women-owned firms for specific types and locations of NDOT contracts. BBC conducted disparity analysis by specific race/ethnicity/gender ownership of firms. This analysis found evidence of disparities for each race/ethnic/gender group of MBE/WBEs included in the Federal DBE Program for certain elements of transportation construction or engineering contracts. There is also some evidence of disparities in each of the NDOT districts. Disparities between utilization and availability were often most severe for minority-owned firms. For example, Hispanic American-owned firms received only 26 cents of every dollar expected on statefunded construction and engineering contracts. (Based on the Ninth Circuit decision in Western States Paving v. WSDOT, if NDOT chooses to implement any race- or gender-conscious remedies, it must review the evidence for each minority group and for women to determine the specific groups eligible for certain remedies.) Qualitative information. The study team collected and reviewed qualitative information from indepth personal interviews conducted with minority-, women- and majority-owned firms across the state, from interviews with trade association representatives, and from open-ended questions included in a large survey of local firms. There were some instances in which minority and female business owners reported that they were treated differently because of their race or gender. Many minority and female business owners identified disadvantages pertaining to the size and age of their firms. Opportunities to prove quality of work. Some minority and female business owners who seek subcontracts frequently reported that it is difficult to obtain opportunities with prime contractors who are not familiar with their work. Once they have a track record with a prime contractor, the prime often continues to consider them for work. Abuse of good faith efforts process. A number of people who provided input through interviews said that some prime contractors abused the past good faith efforts process related to NDOT s DBE subcontracting goals program. These firms observe that some primes only look to fulfill their quota of contacts and are not genuinely interested in using DBEs. Some DBEs also suspect that the primes shop their bid quotes out to their preferred subcontractor so that this firm can beat the DBE competitor s numbers thus justify awarding the work to the preferred subcontractors. BBC RESEARCH & CONSULTING SECTION ES, PAGE 3

9 Barriers in obtaining prime contracts. Based on interviews, contract sizes, prequalification requirements and bonding requirements for NDOT construction work often preclude small firms that bid as primes in the private sector from pursuing NDOT prime contracts. It was also widely reported that NDOT favors large engineering firms with substantial NDOT experience for its engineering work. Many firms complained that they could not win such work as prime consultants if they were not allowed to established such a track record. NDOT implementation of neutral programs. The Federal DBE Program requires NDOT to meet the maximum feasible portion of its overall goal by using race-neutral means of facilitating DBE participation. Results of BBC s review include the following: 1. NDOT has implemented some of the types of neutral remedies suggested in the Federal DBE Program but not others. 2. Many of the barriers reported by minority- and women-owned firms suggest further neutral measures such as: Better outreach and communication; Additional technical assistance to small businesses and DBEs; Redesigning contractor and consultant selection practices; Bonding and other assistance to small businesses and DBEs; and Possible redesign of the state s local preference programs to assist local small businesses. 3. NDOT s past implementation of the Federal DBE Program did not bring utilization of minority- and women-owned firms on federally-funded contracts to the level expected based on relative availability of MBE/WBEs for this work. In fact, utilization of minority- and women-owned firms was higher after suspension of the program. 4. Additional actions to improve data collection, tracking and reporting are necessary to be able to fully measure success of neutral measures in opening opportunities for minority- and women-owned firms. NDOT should consider this information in determining whether any portion of the overall annual goal for the next fiscal year should be achieved through race- or gender-conscious means. BBC RESEARCH & CONSULTING SECTION ES, PAGE 4

10 Measures to Implement the Program In the October 1999 through September 2005 study period, NDOT s DBE contract goals program did not fully address disparities between utilization and availability of minority- and women-owned firms on federally-funded contracts. Strong new measures are needed, especially programs to assist development of the minority- and women-owned business community and to open both prime contract and subcontract opportunities to smaller businesses. BBC recommends multiple tiers of assistance depending upon the age, size, line of work and other business factors to make assistance most useful for firms in different stages of development. NDOT should do more to increase utilization of emerging and more developed MBEs and WBEs, including those that are too large to be DBE-certified or otherwise have not sought DBE certification. NDOT needs additional metrics to track success beyond those suggested in the Federal DBE Program, including careful tracking of MBE/WBEs (not just DBE participation) in both federallyfunded and state-funded contracts. For example, one measure of NDOT s success should be the number of minority- and women-owned firms that grow too large to be eligible for DBE certification. These steps are critical for NDOT to be in compliance with the Federal DBE Program and ensure that it is not an active or passive participant in race or gender discrimination against minority- and women-owned firms. Some of these additional efforts may already be in development at NDOT. Other actions may require state legislation as well as coordination with industry partners. The Department will need additional resources to implement these initiatives. NDOT must also continue to work as a partner with USDOT in these efforts. BBC RESEARCH & CONSULTING SECTION ES, PAGE 5

11 SECTION I. Introduction This report provides information to assist NDOT in determining how it will implement the Federal Disadvantaged Business Enterprise (DBE) Program. Study Scope The Disparity Study examines the transportation construction and engineering industry in Nevada and related contracts awarded by NDOT. The Study focuses on FHWA- and state-funded contracts. NDOT did not include FAA- and FTAassisted contracts in this study. The study team examined contracts in each NDOT district. (Figure I- 1 on the following page identifies NDOT districts.) Analysis includes firms receiving prime contracts and subcontracts as well as suppliers and truckers. Because of the small percentage of contracts (in dollars) administered through NDOT but awarded by cities, counties or other local agencies, and the fact that NDOT does not collect utilization information for these contracts, BBC focused solely on NDOT-awarded contracts. Federal DBE Program After enactment of the Transportation Equity Act for the 21 st Century (TEA-21) in 1998, the U.S. Department of Transportation (USDOT) established a new Federal DBE Program. Program elements. The elements of the Program are set forth in 49 CFR Part 26. Race- and gender-conscious measures such as DBE contract goals may be used if necessary, but are not required in a state s implementation of the Federal DBE Program. Until 2005, NDOT had used DBE contract goals for federally-funded contracts. In response to new guidance from the courts and from USDOT, NDOT discontinued references to DBE goals in its contracts as of July 1, NDOT published notice of this transition to a race- and gender-neutral Program in the October 2005 issue of its Contractor Bulletin. Race/ethnic/gender groups. Disadvantaged business enterprises (DBEs) are defined in the Federal DBE Program (49 CFR Section 26.5). A DBE is a small business owned and controlled by one or more individuals who are socially and economically disadvantaged. The Federal DBE Program specifies the race, ethnic and gender groups that can be presumed to be disadvantaged as well as definitions of when other firms may be socially and economically disadvantaged (explained in Appendix A). These groups are: Black Americans (or African Americans in this study); Hispanic Americans; Native Americans; Asian-Pacific Americans; Subcontinent Asian Americans; and Women of any race or ethnicity. BBC RESEARCH & CONSULTING SECTION I, PAGE 1

12 There is a gross revenue limit (not more than $19,570,000 and lower limits for certain lines of business) and a personal net worth limit ($750,000, not including equity in the business and in personal residence) that firms and firm owners must fall below to be able to be certified as a DBE (49 CFR Subpart D). In this study: DBEs refers to disadvantaged business enterprises according to the federal definitions in 49 CFR Part 26 that have been certified as such. MBEs and WBEs refer to firms owned and controlled by minorities or women, according to the race/ethnicity definitions listed above, whether or not they are certified. Potential certified DBEs refers to existing minority- and women-owned firms that are or could be certified as DBEs given BBC s information about the size of these firms. Figure I-1. NDOT districts and regions BBC RESEARCH & CONSULTING SECTION I, PAGE 2

13 Legal Requirements for NDOT Implementation of the Federal DBE Program The new Federal DBE Program that the federal government developed in 1998 responded to the 1995 U.S. Supreme Court decision in Adarand Constructors, Inc. v. Pena. 1 The Court held that a federal program utilizing a racial classification is only constitutional if it serves a compelling interest and is narrowly tailored to achieve that objective. Narrow tailoring has a number of components. These are discussed in Appendix B. Difference between implementing a federal program and a state or local program. In Adarand, the U.S. Supreme Court extended the same standard for review of federal programs that the Court had applied in 1989 to state and local governments in City of Richmond v. J.A. Croson. 2 After the Croson decision, many state and local minority- and women-owned business enterprise programs (non-federal programs) were held to be unconstitutional by the courts. Appendix B (Legal Environment for NDOT DBE Program) summarizes certain key federal court decisions affecting race- and gender-conscious programs implemented by public agencies. Requirements for implementing the Federal DBE Program. As a recipient of USDOT funds, NDOT is required to implement the Federal DBE Program, and to narrowly tailor its implementation given factors affecting the Nevada transportation construction and engineering marketplace. The current Federal DBE Program provides regulations that state and local governments must follow. NDOT must: Set an overall annual goal for DBE participation in NDOT s federally-funded contracts; Examine whether or not the annual DBE goal can be attained solely through neutral measures or whether race- or gender-based measures are needed; Choose the measures it will apply in an attempt to meet the annual DBE goal; and Identify the specific race, ethnic and gender groups that will be eligible for any race- or genderconscious measures such as contract goals. Overall annual DBE goal. Even though the Federal DBE Program outlined in 49 CFR Part 26 includes an overall 10 percent aspirational goal for DBE participation across the nation, state and local governments receiving USDOT funds must set an annual DBE goal specific to conditions in their relevant marketplace. The Federal DBE Program requires an agency such as NDOT to set an annual DBE goal whether or not its program utilizes race- or gender-conscious measures such as DBE contract goals. Measures required to attempt to meet the goal. The Federal DBE Program requires state and local governments to assess how much of the annual DBE goal can be met through race- and genderneutral efforts and what percentage, if any, should be met through race- and gender-based efforts such as DBE contract goals. The state or local government must then select specific measures it will use in implementing the Program U.S. 200 (1995) U.S. 469 (1989). BBC RESEARCH & CONSULTING SECTION I, PAGE 3

14 The 2005 Ninth Circuit decision in Western States Paving Co. v. Washington State DOT sets requirements that NDOT must follow in implementing the Federal DBE Program. 3 In this decision, the court held that state and local governments are responsible for determining whether or not there is discrimination in the local transportation contracting industry, and for developing narrowly tailored measures if a need exists, in order to comply with the Federal DBE Program. The court found that sufficient evidence of discrimination exists nationwide to hold that the Federal DBE Program was constitutional. The court also held that narrow tailoring of the program depends on each state or local government evaluating conditions within its own contracting markets. Accordingly, the USDOT has advised state and local agencies that any use of race- or genderconscious remedies as part of its DBE program must be based on evidence the recipient has concerning discrimination affecting the local transportation contracting industry 4 : The state or local agency determines whether or not there is evidence of discrimination in its transportation contracting industry. The USDOT recommends the use of disparity studies to examine whether or not there is evidence of discrimination, and how remedies might be narrowly tailored. The USDOT suggests consideration of both statistical and anecdotal evidence. Disparity analysis, or comparisons of DBE utilization with the relative availability of DBEs to perform the work, is an important part of the statistical information. Evidence must be considered for individual race, ethnic and gender groups. This Study provides information on whether or not there is evidence of discrimination and the need for specific program elements. Study Team The study team for the Availability and Disparity Study is: BBC Research & Consulting, a Denver-based economic and policy research firm (prime consultant); Holland & Knight LLP, a national law firm with offices in ; Customer Research International, a telephone survey firm in San Marcos, Texas. BBC Research & Consulting has overall responsibility for this study and is performing most of the required quantitative analyses. Holland & Knight conducted the legal analysis that provides the basis for this study. Holland & Knight also performed in-depth personal interviews of business owners, trade associations and others as part of the study team s qualitative analysis of marketplace conditions and of public and private sector bidding and contracting practices. Customer Research International conducted telephone surveys with business managers and owners. 3 Western States Paving Co. v. Washington State DOT, 407 F.3d 983 (9th Cir. 2005) 4 Questions and Answers Concerning Response to Western States Paving Company v. Washington State Department of Transportation [hereinafter DOT Guidance], available at (January 2006). BBC RESEARCH & CONSULTING SECTION I, PAGE 4

15 Organization of the Report BBC begins by providing information on availability of minority- and women-owned firms in the transportation contracting industry (Section II). Section II concludes with a suggested base figure for NDOT s goal for DBE participation for the next fiscal year. NDOT can consider step 2 adjustments to the base figure. BBC analyzed a number of factors, some indicating a downward adjustment in the base figure and some suggesting an upward adjustment. Section III presents this information. NDOT must decide how much of its overall annual DBE goal can be met through neutral means and how much through race-conscious measures. Section IV compares past utilization of minorityand women-owned firms with DBE contract goals and utilization under an all race-neutral program. BBC explores possible explanations for any overall disparities in the utilization of minority- and women-owned firms. Combining qualitative and quantitative information, BBC separately examines MBE/WBE opportunities as subcontractors on transportation construction projects (Section V) and as prime contractors on these projects (Section VI). Sections VII and VIII examine similar information for transportation engineering subcontracts and prime contracts. Section IX presents BBC s analysis of possible remedies as well as other actions NDOT should take to successfully implement the Federal DBE Program. Section X summarizes overall study results. Note that a number of appendices provide supporting information for the Final Report. NDOT should review the detailed discussion of study methodology and results presented in the appendices as it considers future implementation of the Federal DBE Program. BBC RESEARCH & CONSULTING SECTION I, PAGE 5

16 SECTION II. Analysis of MBE/WBE Availability BBC collected and analyzed data on the relative availability of minority- and women-owned businesses for two purposes: (a) setting a base figure for the overall annual DBE goal, and (b) developing a benchmark for utilization in the disparity analyses. The disparity analysis is one tool to determine whether or how much of the overall annual DBE goal can be achieved through race- and gender-neutral measures. The study team performed a statistical analysis of NDOT contracts to determine the percentage of work expected to go to minority- and women-owned firms. The data required for this statistical analysis came from telephone interviews with firms potentially available for transportation construction and engineering work in Nevada, and Figure II-1. Definitions of MBE/WBEs, DBEs and potential DBEs Minority- and women-owned firms. Firms that reported they were owned and controlled by minorities or women (or identified as such in relevant databases) are counted as MBEs and WBEs in the utilization and availability analysis. A minority follows the definition in the Federal DBE Program, as outlined in Appendix A of this report. Certified Disadvantaged Business Enterprises (DBEs). BBC counted a firm as a certified DBE if it was identified as certified in the NDOT DBE Directory in the year that a contract was awarded. Potential DBEs. To formulate the overall annual DBE goal, BBC excluded high-revenue minorityand women-owned firms. Firms that appeared that they could be potentially certified as DBEs based on ownership and revenue were counted in the overall goal. Note that this excluded some high-revenue firms that were DBE certified in (Construction-related firms with annual revenue of less than $10 million and engineeringrelated firms with annual revenue of less than $5 million were counted as potential DBEs. This is below the revenue limit of $19,750,000 because of lower Small Business Administration size limits for certain construction and engineering disciplines, the revenue size categories in the availability survey, and to account for the fact that firms above these lower revenue limits are more likely to exceed the net worth limit of $750,000.) BBC s approach results in somewhat lower estimates of potential DBE availability than the methodology applied in studies reviewed by the courts in Illinois and Minnesota. BBC s compilations of data on over 2,500 NDOT prime contracts and subcontracts. The balance of Section II describes availability analysis methods, results and implications for NDOT s implementation of the Federal DBE Program. Appendix C (Availability Survey) provides additional information on the survey effort. Measuring MBE/WBE Availability Definitions. The availability analysis considers three definitions of minority- and women-owned firms: Firms that are owned and controlled by minorities or women, whether or not they are certified as disadvantaged business enterprises ( MBE and WBEs ); Businesses that have been certified as disadvantaged business enterprises ( DBEs ), which means that they are below certain revenue and personal net worth limits; and Minority- and women-owned firms that are certified or potentially could be certified as DBEs ( potential DBEs ). BBC s analysis starts by examining relative availability of MBEs and WBEs as defined above (and discussed in Figure II-1). BBC RESEARCH & CONSULTING SECTION II, PAGE 1

17 Because implementation of the Federal DBE Program requires tracking of DBE utilization (and may extend certain program benefits solely to firms certified as DBEs), BBC also reports certain utilization data based on DBE status of the firm. Minority- and women-owned firms not certified as DBEs are not counted in the latter method for estimating DBE utilization. Finally, NDOT must set an overall annual goal for DBE utilization, but many firms that could be certified as DBEs are not currently certified. Consistent with court-reviewed availability analysis in states such as Illinois and Minnesota, BBC analyzes the base figure for the overall DBE goal based primarily on relative availability of minority- and women-owned firms that are potential DBEs, not just those that are currently certified. To accomplish this, BBC excludes the highest-revenue MBEs and WBEs from the base figure analysis. Why disparity analysis for MBE/WBEs and not DBEs? Comparing utilization and availability of minority- and women-owned firms (by race/ethnicity/gender) is the way a researcher should analyze whether or not there are disparities affecting minority- and women-owned firms. The potential that race or gender discrimination affects utilization of firms should be studied using information on minority- and women-owned firms in general. Firms may be discriminated against based on the race and gender of the business owner regardless of whether they have applied for DBE certification. Further, the disparity analysis should include the most successful minority- and women-owned firms in the statistics for MBE/WBE utilization and availability. A disparity analysis for just DBEs excludes these highly successful firms from the statistics for DBEs. DBE utilization and availability would be based on data for economically disadvantaged minority- and women-owned firms compared with results for all firms. One might find disparities for any group of firms for which membership is limited to low-revenue firms. 1 Finally, white male-owned firms can be certified as DBEs (even though few seek such certification). Disparity analysis based just on certified DBEs is not purely an analysis of disparities by race and gender. NDOT currently only tracks information concerning certified DBEs, as this is what USDOT requires. For purposes of this study, BBC also required information on all minority- and womenowned firms whether or not they are currently certified or could be certified (were below revenue and net worth limits), as explained in Figure II-1. Survey of Nevada businesses potentially related to transportation construction and engineering. In addition to attempting to reach every firm on NDOT s bidder list, the study team contacted business establishments in Nevada that were listed in the Dun & Bradstreet (D&B) directory for primary lines of work potentially related to transportation construction and engineering. BBC selected Nevada as the relevant geographic market area because 87 percent of the dollars going to prime contractors or subcontractors on NDOT transportation construction and engineering projects from 2002 through 2006 went to firms with locations in Nevada. 1 An analogous situation concerns analysis of possible wage discrimination. A disparity analysis that would compare wages of minority employees to wages of all employees should include both low- and high-wage minorities in the statistics for minority employees. If the analysis removed high-wage minorities from the statistics for minorities, any comparison of wages between minorities and non-minorities would likely show disparities in wage levels. A disparity analysis that only includes certified DBEs in the statistics for minority-owned firms suffers from the same flaw. BBC RESEARCH & CONSULTING SECTION II, PAGE 2

18 The study team first purchased all D&B listings for business establishments in Nevada listed under the Standard Industrial Classification (SIC) codes that BBC determined to be most pertinent to NDOT transportation construction and engineering contracts. The study team attempted to contact each of these potential businesses. BBC and Customer Research International (CRI) conducted the telephone interviews from September 2006 through February CRI is a telephone survey research firm in Texas that has substantial expertise conducting these types of surveys. (BBC also sent surveys via fax and to firms that had requested receiving hard copy versions.) These telephone interviews began by confirming that the interviewer had reached the correct business. Interviewers then asked the firm owner or manager, First, I want to confirm that your firm does work related to transportation construction, maintenance or design. Is this correct? Interviewees were told that this included trying to sell this work, not just successfully performing this work. Interviews continued with firms responding yes to this question. Interviewers also confirmed or refined the D&B information concerning each firm s primary line of work. The survey collected information on the geographic scope of that work within the state, specific interest in NDOT work, and past bidding and performance of transportation construction and engineering contracts for NDOT, local governments and the private sector. Firms were asked to identify the largest contract or subcontract performed or bid on in the past five years. Interviewers asked firms whether they were qualified and interested in work for NDOT and/or local governments. Separate questions asked about qualifications and interest in this work as a prime contractor and as a subcontractor. The survey asked firms whether they were owned and controlled by minorities and/or women. Other firm characteristics were collected as well (see Appendix C). Some of the reasons for using this approach to measuring relative MBE/WBE availability are summarized in Figure II-2. Figure II-2. Strengths of a custom census approach Federal courts have reviewed and upheld custom census approaches to availability that begin with D&B data. The study team s methodology for analyzing MBE/WBE availability took the previous court-reviewed custom census approach as a starting point and added several layers of additional screening when determining firms available for transportation construction and engineering work. BBC RESEARCH & CONSULTING SECTION II, PAGE 3

19 Survey performance. The study team attempted to complete surveys with all firms in Nevada whose primary lines of business were within transportation construction and engineering-related SIC codes. (There was no sampling from the sample frame in preparing the list of firms to be surveyed.) The study team obtained completed surveys from 2,183 business establishments, or about 40 percent of the business establishments in the sample frame, which is high for this type of research. After merging responses for firms with multiple locations, there were 682 for-profit firms reporting that they: Perform work related to transportation construction, maintenance or design (in the lines of business pertinent to this study and after combining multiple responses for firms with more than one office); Are qualified and interested in performing transportation-related work for NDOT in the future, as a prime contractor and/or subcontractor (or supplier or trucker); Have attempted to obtain this work in the past (in the public or private sector); and Indicated the regions of the state in which they can perform work. Appendix C provides additional information about survey performance. Results of the Availability Analysis In the 2006 Availability Survey, 664 firms satisfied the conditions listed above and also provided information about the gender and race/ethnicity of the firm s ownership. Of these firms, 24.4 percent reported that they were minority- or women-owned (see Figure II-3). As this percentage is based on a simple headcount of firms, it is just a starting point for the availability analysis. Figure II-3. MBE/WBEs as a share of firms available for transportation contracting work Minority- and women-owned firms (24.4) Note: Unweighted. n=664 Source: BBC Research and Consulting from 2006 Availability Survey. (75.5) Firms available by location. Relative MBE/WBE availability does not vary considerably between districts. This is because firms located in one district often work across a number of districts. BBC RESEARCH & CONSULTING SECTION II, PAGE 4

20 Firms available by sector and work role. BBC also examined MBE/WBE availability by sector, work role and discipline. (Note that statistics for WBEs refers to white womenowned firms, as discussed in Figure II-4.) Figure II-5 on the following page shows the percentage of all firms available within these sub-categories that are minority- or womenowned. (All of the results reported in Figure II-5 are based on headcounts of firms prior to any weighting.) Results show that minority- and women-owned firms comprise a larger share of total firms available for NDOT subcontracting work than for prime contracts. Among transportation construction industry firms reporting qualifications and interest in future NDOT transportation work as a prime (and had bid or received work as a prime on past transportation work in the public or private sectors), 25 percent are MBEs or WBEs. MBEs and WBEs are 28 percent of transportation construction industry firms reporting past work as well as qualifications and interest in future NDOT work as a subcontractor or supplier. Among engineering-related firms that had bid or received work as a prime in the past, MBEs and WBEs comprise 20 percent of transportation engineering industry firms qualified and interested in future NDOT work as a prime consultant. Among transportation engineering industry firms with past subconsultant experience and qualifications and interested in future NDOT work as a subconsultant, 23 percent are MBEs or WBEs. Figure II-4. Coding of firms owned by minority women Firms owned by minority women present a challenge in coding for purposes of both the availability analysis and the utilization analysis. BBC considered four options for coding and analysis of firms owned by minority women: a. coding these firms as both minorityand women-owned; b. creating a unique group of minority female-owned firms; c. grouping minority female owned firms with all women-owned firms; and d. grouping minority female-owned firms with the relevant race/ethnic group. BBC chose not to code the firms as both womenowned and minority-owned to avoid potential double-counting when reporting total MBE/WBE utilization and availability. Dividing each race/ethnic group into firms owned by men versus women (e.g., African American male-owned firms, African American female-owned firms, etc.) was also unworkable for purposes of the disparity analysis. Some minority groups had utilization and availability so low even when combining men and women that further disaggregation made it more difficult to interpret results. After rejecting the first two options, BBC then considered whether to group minority female-owned firms with the relevant minority group or with all women-owned firms. BBC chose to group African American women-owned firms with all African American-owned firms, etc. WBE refers to white women-owned firms. Evidence of discrimination against white women-owned firms should be considered evidence of discrimination against women of any race or gender. This definition of WBEs gives NDOT information to answer questions that often arise pertaining to utilization of white women-owned firms. There have been questions of whether disproportionate share of work goes to this set of firms. BBC RESEARCH & CONSULTING SECTION II, PAGE 5

21 Figure II-5. MBEs/WBEs as a percentage of transportation construction and engineering industry firms available for NDOT and local government transportation work NDOT Contracts and Subcontracts Transportation Construction Industry Transportation Engineering Industry MBE (9.5) MBE (14.9) Prime contracts (must have bid on or received past work) WBE (15.5) WBE (5.2) Majority (75.0) Majority (79.9) (n = 168) (n = 154) MBE (9.8) MBE (16.1) Subcontracts (must have bid on or received past work) WBE (18.1) WBE (6.5) Majority (72.1) Majority (77.4) (n = 359) (n = 168) Local Agency Contracts and Subcontracts Transportation Construction Industry MBE (9.5) Transportation Engineering Industry MBE (14.8) WBE (15.5) WBE (5.2) Prime contracts (must have bid on or received past work) Majority (75.0) Majority (80.0) (n = 168) (n = 155) MBE (9.8) MBE (16.2) WBE (17.6) WBE (6.6) Subcontracts (must have bid on or received past work) Majority (72.6) Majority (77.2) (n = 357) (n = 167) Note: Source: WBE is white woman-owned firms. BBC Research and Consulting from 2006 Availability Survey. BBC RESEARCH & CONSULTING SECTION II, PAGE 6

22 Firms available by discipline. BBC grouped different types of work involved in NDOT construction and engineering contracts into 25 disciplines shown in Figure II-6. For example, 18.7 percent of highway construction firms are minority- or woman-owned. Figure II-6. MBE/WBEs as a percentage of transportation construction and engineering industry firms available for NDOT and local government transportation work, by discipline Construction Management (n = 8) Consulting and Research (n = 33) Engineering and Design Services (n = 147) Surveying Services (n = 21) Testing and Remediation (n = 9) Landscape Counseling and Planning (n = 15) Landscape Installation and Maintenance (n = 22) MBE Earthwork, Drilling, and Other Site Prep (n = 39) Masonry Foundations and Walls (n = 8) Structural Steel Erection (n = 8) Wrecking and Demolition (n = 7) Concrete and Asphalt Work (n = 37) Electrical Work (n = 32) Water, Sewer, and Utility Lines Work (n = 26) Highway, Bridge, and Tunnel Construction (n = 91) Pavement Marking (n = 11) Fencing Construction (n = 14) Traffic Signs/Signals and Other Electrical Supply (n = 20) Metal Products Supply (n = 16) Concrete Products Supply (n = 7) Surface Paving Materials Supply (n = 13) Aggregate, Rock and Sand (n = 9) Construction Equipment Supply (n = 12) Heavy Equipment Rental (n = 14) Trucking (n = 45) WBE Source: BBC Research & Consulting from 2006 Availability Survey. BBC RESEARCH & CONSULTING SECTION II, PAGE 7

23 Firms by race/ethnicity/gender. Figure II-7 reports number of MBE/WBE firms by group from the availability analysis. Most of the available MBE/WBE businesses are white women- or Hispanic American-owned firms. Figure II-7. MBE/WBEs as a percentage of transportation construction and engineering industry firms available for NDOT and local government transportation work, by race, ethnicity and gender Race, ethnicity and gender Percent of total African American-owned 1.1 Asian-Pacific American-owned 2.0 Subcontinent Asian American-owned 1.7 Hispanic American-owned 5.4 Native American-owned 1.4 Total MBE 11.6 WBE (white women-owned) 12.8 Total MBE/WBE 24.4 Note: Source: Numbers may not add to total because of rounding. n = 664 BBC Research and Consulting from 2006 Availability Survey. Dollar-weighted MBE/WBE Availability BBC conducted a statistical analysis that examined thousands of prime contracts and subcontracts for NDOT projects from October 1999 through For each contract element, BBC estimated the number of minority- and woman-owned firms and the total number of firms surveyed that were available for that work based on: Specialization of work; Prime contract versus subcontract role; Location of work; Size of contract or subcontract element; and Contract date. As described in the following pages, BBC then weighted the relative MBE/WBE availability for each contract element by the dollars for that element. Appendix D provides additional information on this process. BBC RESEARCH & CONSULTING SECTION II, PAGE 8

24 Matrix of relative MBE/WBE availability estimates. Figure II-8 shows a matrix of the database developed through this availability analysis. The study team separately tracks available firms for each cell of this matrix. Relative MBE/WBE availability within a cell is determined by dividing the number of MBEs and WBEs in that cell by the total number of firms in the cell. Figure II-8. Matrix for the MBE/WBE availability analysis Type of work Region of state Size of contract If ABC Company is qualified and interested in performing electrical work as a subcontractor on NDOT contracts in southern Nevada and performs only small subcontracts, it is shown as an available firm for only that type and size of work as a subcontractor for that geographic area. If a company is qualified and interested in working as both a prime contractor and a subcontractor, and operates across a broad geographic area, then the firm may count as an available business in many different cells of the matrix. The relative MBE/WBE availability for each cell of the matrix is given by the number of MBEs and WBEs in that cell divided by the total number of firms in the cell. Specialization of work. The USDOT suggests considering the availability of firms based on their ability to perform specific types of work. The example USDOT gives in Tips for Goals Setting in the Disadvantaged Business Enterprise (DBE) Program, which is cited in the Northern Contracting court decision 2, is as follows: If 90 percent of an agency s contracting dollars is spent on heavy construction and 10 percent on trucking, the agency would calculate the percentage of heavy construction firms that are MBEs or WBEs and the percentage of trucking firms that are MBEs or WBEs, and weight the first figure by 90 percent and the second figure by 10 percent when calculating overall MBE/WBE availability. 3 Qualifications and interest in prime contractor versus subcontractor work. Although not a requirement in the Federal DBE Program (and not done by the Illinois Department of Transportation in the information reviewed by the Seventh Circuit in Northern Contracting 4 ), BBC had information on whether firms reported qualifications and interest in working as a prime contractor and as a subcontractor. In BBC s statistical model, only firms qualified and interested in F.3d at Tips for Goals Setting in the Disadvantaged Business Enterprise (DBE) Program, F.3d at 723. BBC RESEARCH & CONSULTING SECTION II, PAGE 9

25 prime contracts are counted as available for prime contracts. Firms reporting qualifications and interest in subcontracts are counted as available for these contract components. Many firms reported qualifications and interest in both contract roles, and are counted as available when considering both prime contracts and subcontracts. Location of work. BBC considered the specific regions within Nevada in which firms work in the statistical model. For example, firms that report they could work in southern Nevada, but not other regions of the state, are only considered available for work in that geographic area (NDOT District 1 contracts). Firms operating throughout the state are considered available for work in all regions. BBC examined work in three different regions that correspond to individual NDOT districts. The effect of this geographic weighting is that firms working throughout the state figure more prominently in the availability calculation than firms working in just one part of the state. The weighting process is described in more detail later in this section. Size of contract or subcontract element. In counting available firms, BBC also considered whether a firm had previous work experience on a project of equivalent size (in dollars) to the specified contract or subcontract element. To be counted as available for subcontract elements, a firm must have been awarded or bid on a past contract or subcontract of similar or greater size to that contract element. For prime contract elements, a firm must have been awarded or bid on a past contract or subcontract of similar or greater size to the entire contract amount. Contract date. Similarly, to be counted as available for a contract element (both prime contract and subcontract elements), a firm must report an establishment date during or prior to the year in which that prime contract began. Firms that could not recall or did not report an establishment date were presumed to have been founded prior to the study period. Weighting of individual availability estimates. The final step of the availability analysis is to combine the MBE/WBE availability figures for multiple cells to develop aggregate availability figures across many different types of contracts across regions in the state. In general terms, the study team weights the MBE/WBE availability in a cell by the relative dollars of work in that cell and then sums the weighted availability data to determine an aggregate figure. BBC performed this analysis for each of the prime contract and subcontract elements examined in the study, and then combined results across thousands of contract elements on a dollar-weighted basis. Appendix D (Procedures for Estimating MBE/WBE Availability) explains the collection and analysis of NDOT contract data necessary to perform this dollar weighting. Results of the analysis of MBE/WBE availability. BBC s analysis indicates that MBEs and WBEs would receive 14.6 percent of prime contract and subcontract dollars for federally-funded transportation construction and engineering contracts. This means that, after considering type of work, contract role, location and size of work involved in federally-funded projects and the types, contract roles, locations and contract sizes for work performed by available firms, 14.6 percent of dollars on federally-funded contracts would go to minority- and women-owned firms (MBE/WBEs) if available MBE/WBEs received the same amount of work as similarly-situated majority-owned firms available for such work. BBC RESEARCH & CONSULTING SECTION II, PAGE 10

26 Base Figure for Overall Annual DBE Goal The 14.6 dollar-weighted availability statistic pertains to all minority- and women-owned firms. Many minority- and women-owned firms are not currently DBE certified, and some of the largest MBE/WBEs might not meet the federal eligibility requirements for DBE certification. BBC identified construction-related firms in the availability analysis that reported 2005 gross revenue of more than $10 million and engineering-related firms with 2005 gross revenue of more than $5 million (these size categories from the Availability Survey most closely matched U.S. Small Business Administration size thresholds for these disciplines and also account for the fact that firms above these revenue limits are more likely to exceed the net worth limit of $750,000 than firms below these revenue limits). Removing these firms reduced the availability statistic by about 9 percentage points to a revised base figure of 5.7 percent. This percent statistic represents utilization expected for firms that are potentially DBEs. NDOT should consider the 5.7 percent availability statistic when establishing a base figure for its overall annual goal for DBE participation. BBC RESEARCH & CONSULTING SECTION II, PAGE 11

27 SECTION III. Summary of Marketplace Conditions and Possible Step 2 Adjustments to the Overall DBE Goal The 5.7 percent statistic emerging from the base figure analysis is in the range of NDOT s overall goals for DBE participation in recent years (5-6 percent). NDOT could consider adjustments in its base figure for its overall annual DBE goal through a step 2 process described in 49 CFR Section BBC reviewed relevant types of information for a step 2 adjustment that are outlined in the Federal DBE Program, including: Current capacity of DBEs to perform work, as measured by the volume of work DBEs have performed in recent years; Data on employment, self-employment, education, training and union apprenticeship programs; Information on the ability of DBEs to get financing, bonding and insurance; and Other relevant data. Because BBC s base figure analysis includes minority- and women-owned firms that are not currently DBE certified, BBC considered this factor as well. Factors that Suggest a Downward Adjustment to the Overall Goal BBC examined whether or not the 5.7 percent base figure should be adjusted downward. Past volume of work performed. DBEs were awarded 4.0 percent of contract dollars based on BBC s analysis of NDOT federally-funded contracts from 2002 through September This demonstrated participation is lower than the possible base figure of 5.7 percent DBE participation. Recent DBE participation in these contracts is further discussed in Section IV of this report (see Figure IV-4). 1 NDOT could consider this information in assessing whether and how to make any step 2 adjustments in determining an overall annual goal. Current DBE certification of minority- and women-owned firms. The 5.7 percent figure counts minority- and women-owned firms that could potentially be certified as DBEs. About one in four minority- and women-owned firms in the BBC availability analysis were DBE certified in It will be a challenge for NDOT to encourage these business owners to obtain certification. NDOT would also need the resources to explain and review certification applications. NDOT should include the fact that many of the firms counted in the base figure analysis are not currently DBE-certified when considering any step 2 adjustments. BBC RESEARCH & CONSULTING SECTION III, PAGE 1

28 Factors that Suggest an Upward Adjustment to the Overall Goal BBC completed an analysis of other issues identified in 49 CFR Section that tend to suggest upward adjustments in the overall goal for DBE participation. BBC s analysis suggests that there are barriers to entry and expansion in the transportation construction and engineering industries that may begin with education and training and continue through forming a business and gaining access to capital. Appendix F describes this information in detail. Entry into the construction industry. BBC examined education, employment and advancement for the construction industry in Nevada. Education. Formal education beyond high school is not a prerequisite for most jobs in the construction industry. Based on the limited education beyond high school for many African Americans, Hispanic Americans and Native Americans in Nevada, one would expect a relatively high representation of these minority groups in the Nevada construction industry where educational attainment does not appear to be a barrier. Employment. Representation of Hispanic Americans in the construction industry is considerably higher than for all industries as a whole. African Americans and Asian-Pacific Americans working in Nevada are relatively less likely to work in construction than other race/ethnic groups. The share of construction workers who are women remained flat from 1980 to Advancement. There appear to be disparities in the advancement of Hispanics to certain construction occupations and first-line supervisor positions. Compared to non-hispanic whites (and men), relatively few minorities and women working in construction are managers. Entry into the engineering industry. BBC examined education and employment and in the Nevada engineering industry. Education. About one-half of the individuals working in the engineering industry have at least a four-year college degree. Educational attainment may be a barrier for African Americans, Hispanic Americans and Native Americans working in the state because they are less likely to have a college degree than their non-hispanic white counterparts. Other disparities in employment. Asian-Pacific Americans and non-hispanic whites are more likely to be employed in the engineering industry than indicated from their representation among all workers in Nevada. African Americans and Hispanic Americans have relatively low representation in the engineering industry. The share of women in the engineering industry in 2000 was higher than in Business formation and ownership. BBC examined U.S. Census data on business ownership rates using similar methods to the information reviewed in the court cases involving state departments of transportation in Illinois and Minnesota. Construction. African Americans, Hispanic Americans and women working in the Nevada construction industry are less likely than non-hispanic white men to own construction businesses. BBC, through regression analysis, identified statistically significant disparities after controlling for neutral factors (see Appendix H). BBC RESEARCH & CONSULTING SECTION III, PAGE 2

29 Results suggest that the number of African American-owned construction businesses in Nevada is less than one-fifth of the number expected if African Americans working in the industry owned businesses at the same rate as similarly situated non-hispanic, white males. This disparity is somewhat smaller for Hispanic Americans. Women in the construction industry also experience a slightly lower business ownership rate than their non-hispanic white male counterparts. Engineering. Due to the small number of minority business owners in the PUMS data set for the engineering industry, the study team was unable to develop a separate engineering-only business ownership model. A combined analysis of Nevada construction and engineering industries identified statistically significant disparities in rates of business ownership for African Americans. Rates of business closure. African American-owned construction firms in Nevada are more likely to close due to firm failure (see Appendix F). Access to capital. Access to capital is important to the formation and expansion of small businesses (see Appendix F). The study team s analyses suggest disparities for minority-owned firms in Nevada. Business capital from home equity. Home equity is an important source of capital for business start-up and growth. Relatively fewer African Americans, Asian Americans, Hispanic Americans and Native Americans in Nevada own homes than non-hispanic whites, and those who do own homes tend to have lower home values. African Americans, Asian Americans, Hispanic Americans and Native Americans applying for home mortgages are more likely than non-minorities to have their applications denied. African American, Asian American, Hispanic American and Native American mortgage borrowers are more likely to have subprime loans. Business loans. BBC also identified disparities in access to business loans for minority-owned firms. Minority-owned businesses have higher denial rates when applying for business loans, and when they receive loans they have lower loan amounts. After accounting for certain neutral influences, firms owned by minorities remain significantly more likely to have their loans denied than other firms (see Appendix H). Bonding. During in-depth interviews with a variety of business owners and trade association leaders, several firm owners reported that bonding was a barrier to bidding public sector work for small companies. Several contractors said that bonding was a barrier to doing business with NDOT. Interviewees reported that bonding was a problem for all small businesses, not just minority- and women-owned firms. Insurance. Feedback from firms in the Availability Survey indicate that minority-owned business owners are more concerned than their counterparts at majority-owned firms when it comes to obtaining the mandatory insurance to compete on NDOT and other large-scale construction projects in Nevada. The cost of insurance is a primary barrier for these business, especially when they attempt to compete for prime contracting opportunities with larger liability requirements. BBC RESEARCH & CONSULTING SECTION III, PAGE 3

30 Largest bids of minority- and women-owned firms. In the Availability Survey, BBC asked firms in the transportation construction and engineering industry to identify the largest contract/subcontract a firm had received or bid on in the past five years. Engineering firms owned by Hispanic Americans are significantly more likely to have above average bid capacity than other firms in their sub-industries. There were other minority groups for which bid capacity lagged other firms, but these disparities were explained by firm specialization and age. 2 Business earnings. BBC examined U.S. Census data on earnings of business owners in construction and engineering using similar methods to the information reviewed in the court cases involving state departments of transportation in Illinois and Minnesota. BBC identified disparities in earnings of firms in Nevada for certain minority groups and women (detailed results are found in Appendices F and H): After controlling for neutral influences, model results indicate significant disparities in business earnings for business owners in the combined construction and engineering industries. This disparity is also observed in a construction-only industry model. Female business owners in the construction industry earn about 68 percent less than they would if they earned as much as similarly situated non-hispanic, white males. Summary There are reasons for NDOT to consider downward and upward adjustments to the base figure for overall DBE participation. It will be difficult for NDOT to encourage the many non-dbe-certified firms to apply for certification. However, analysis of local marketplace data reveals reasons for upward adjustments to the base figure. This information indicates barriers to entry into the Nevada construction and engineering industries, low rates of business ownership for certain groups working in the industries, lower business earnings and other barriers such as access to capital. NDOT should include all of the above information in its consideration of whether or not to make any step 2 adjustment to a base figure for the overall annual DBE goal. It may be that NDOT does not need to make any adjustment to the base figure given the mix of factors analyzed in this section. Any factors indicating downward adjustment may be offset by factors indicating upward adjustments. 2 The extent to which minority- and women-owned firms tend to be younger and in different subindustries than majorityowned firms may not be an entirely neutral explanation for disparities in bid capacity if past discrimination has influenced whether there are relatively few older MBE/WBE firms or the relative concentration of MBE/WBEs in different subindustries. BBC RESEARCH & CONSULTING SECTION III, PAGE 4

31 SECTION IV. Summary of Utilization and Disparity Analysis for NDOT Contracts The Federal DBE Program requires states to determine the percentage of the overall annual DBE goal that can be achieved through neutral means and the percentage, if any, to be achieved through race- and gender-based measures. Relative utilization of minority- and womenowned firms on state-funded transportation construction and engineering contracts, which do not have DBE contract goals, is one way of examining what is achieved through neutral means. NDOT Requests for Bids and Proposals published after June 30, 2005 did not have DBE goals. NDOT widely notified contractors of this change in October Therefore, state contracts, and federally-funded contracts with bid open or award dates after October 1, 2005, are examined as the sets of contractors without DBE goals. Utilization on these subsets of contracts can Figure IV-1. Defining and measuring utilization Utilization of minority- and women-owned firms refers to the share of contract dollars going to these MBEs and WBEs. BBC reports results for both certified DBEs (firms certified as disadvantaged business enterprises in the year of the specific contract), and for all minority- and women-owned firms. BBC also examines results by race/ethnic/gender group. Utilization is expressed as a percentage of prime contract and subcontract dollars. Prime contract dollars are total contract dollars less the money identified as going to subcontractors. For example, WBE utilization of 5 percent means that 5 percent of the contract dollars examined went to women-owned firms. Expressed another way, 5 cents of every contract dollar went to WBEs. Information concerning utilization of minority- and women-owned firms is useful on its own, but is even more instructive when compared with a benchmark for the level of utilization expected given relative availability of minority- and women-owned firms for a particular set of contracts. BBC introduces this disparity analysis at the end of this section of the report. be compared with utilization of minority- and women-owned firms for federally-funded contracts when the DBE contract goals program was in effect. As outlined in Figure IV-1, utilization of minority- and women-owned firms refers to the percentage of contract dollars going to MBE/WBEs. BBC examined utilization of minority- and women-owned firms as prime contractors and subcontractors in NDOT construction and engineering contracts. The study period was October 1999 through Figure IV-2. MBE/WBE utilization and DBE utilization To analyze the issues raised in implementing the Federal DBE Program, BBC examined minority- and women-owned in three ways: Minority- and women-owned firms. Firms that reported they were owned and controlled by minorities or women (or identified as such in relevant databases) are counted as MBEs and WBEs in the utilization and availability analysis. WBEs refers to white women-owned firms. Certified Disadvantaged Business Enterprises (DBE). BBC counted a firm as a certified DBE if it was identified as certified in the Nevada DBE Program database at the bid open date or contract award date. BBC RESEARCH & CONSULTING SECTION IV, PAGE 1

32 BBC s analysis of MBE/WBE utilization goes far beyond what NDOT currently reports to the USDOT: In addition to utilization of certified DBEs, BBC examined utilization of minority- and women-owned firms including firms that are too large to be certified as DBEs and those that have never sought DBE certification. (Reasons for studying MBE/WBEs including those not currently certified as DBEs are discussed in Section II.) The disparity analysis performed at the end of this section focuses solely on minority- and women-owned firms. The study team collected data on subcontractor utilization in a consistent fashion for DBEs, MBE/WBEs and majority-owned firms to be able to accurately report DBE and MBE/WBE share of subcontract dollars for sets of contracts with and without DBE contract goals. Data collection procedures are summarized in Figure IV-3 and explained in greater detail in Appendix D. NDOT does not currently analyze DBE or MBE/WBE utilization on state-funded contracts. Because of the importance of this information to the disparity study, the study team developed and implemented a data collection program for these state-funded contracts and a parallel program for federallyfunded contracts to be able to accurately compare utilization between the two sets of contracts. Results of Utilization Analysis Figure IV-3. Utilization data collection The utilization information the BBC study team collected for construction and engineering contracts is based primarily on dollars at time of award and requests to sublet to specific subcontractors. BBC obtained electronic records of requests to sublet from NDOT contract files. Utilization based on dollars at time of award and request to sublet may not perfectly match utilization based on actual payments to prime contractors and subcontracts at the end of the project. These payment data were not consistently available for construction contracts, and BBC also sought to analyze information on construction contracts awarded after October 1, 2005 that might not have been completed and closed by December 2006, the end date for the utilization analysis. Invoice amounts were used for some engineering contracts where subcontractor amounts were not indicated at time of bid. In total, BBC collected and analyzed information for 2,574 prime contracts and subcontracts pertaining to NDOT transportation construction and engineering projects. Utilization on NDOT construction and engineering contracts is based on BBC s attempts to obtain information on all federally- and state-funded contracts for October 1999 through The BBC study team coded information concerning prime contract/subcontract status, type of work performed, size of contract element, location of contract, and funding based on information collected for each contract element. Appendix D provides additional information as to how these data elements were collected. Federally-funded transportation contracts when DBE goals were in place. Prior to moving to an all race- and gender-neutral implementation of the Federal DBE Program, NDOT could set DBE contract goals for federally-funded contracts. Prime contractors bidding on NDOT projects would need to include DBE participation at a level to meet the goals or show good faith efforts to do so. NDOT set 0 percent DBE goals on some federally-funded contracts. BBC examined 1,299 prime contracts and subcontracts for federally-funded NDOT contracts from October 1999 through September During this period, total utilization of minority- and women-owned firms on federally-funded contracts was 7.3 percent. This utilization includes prime contracts and subcontracts. 1 Note that NDOT did not set goals on contracts from July through September 2005, but the contractor community may not have been widely informed of this change until October BBC RESEARCH & CONSULTING SECTION IV, PAGE 2

33 In Figure IV-4 (and similar figures in Sections V through VIII), DBE utilization is shown in the bottom portion of the bar. The difference between total MBE/WBE utilization (the statistic shown on top of the bar) and DBE utilizations is utilization of MBE/WBEs that were not certified as DBEs at the time of the corresponding contract. DBEs and MBE/WBE utilization on state-funded contracts. NDOT has implemented only race- and gender-neutral measures on state-funded contracts. The October 1999 through 2006 statefunded contracts awarded by NDOT reflect MBE/WBE utilization on contracts without DBE contract goals. BBC studied MBE/WBE utilization for 1,162 state-funded transportation construction and engineering contracts and subcontracts for this time period. Comparison of MBE/WBE utilization on state-funded contracts with MBE/WBE utilization on federally-funded contracts suggests that, without goals, utilization of minority- and women-owned firms is equivalent to the level found when goals were applied. As shown in Figure IV-4, MBE/WBE utilization was 7.3 percent on state-funded contracts, comparable to utilization on federally-funded contracts prior to October Utilization of certified DBEs was only 1.6 percent for state-funded contracts. MBE/WBEs not certified as DBEs received a greater share of state-funded contract dollars than federally-funded contract dollars. Figure IV-4. MBE/WBE share of prime contract/subcontract dollars for transportation construction and engineering contracts, federal vs. state funding Note: Certified DBE utilization. For more detail, and for results by DBE group, see Figures E-3 and E-29 in Appendix E. 30 Number of contracts analyzed is 1,299 for October 1999 September 2005 federally-funded contracts and 1,162 for October state-funded contracts. Source: BBC Research and Consulting from data on NDOT contracts DBE Federally-funded contracts Oct Sept DBE State-funded contracts Oct Federally-funded contracts after October 1, NDOT moved to an all race- and genderneutral program mid Based on the federally-funded construction and engineering contracts BBC identified between October 2005 and the end of December 2006, ending contract goals on federally-funded contracts did not reduce overall MBE/WBE utilization. Overall MBE/WBE utilization on federally-funded contracts from October 2005 through 2006 was 13.9 percent. Figure IV-5 portrays DBE and MBE/WBE utilization on federally-funded contracts before and after October 1, Again, the gross MBE/WBE utilization for these two time periods are not adjusted for differences in contract types, sizes and locations. The disparity analysis at the close of this report section makes comparisons in utilization after adjusting for these and other factors. In addition, the data for October 2005 through December 2006 is based on a small number of prime contracts and subcontracts (113). MBE/WBE utilization may not remain at 13.9 percent when a larger number of post-october 2005 contracts have been awarded. BBC RESEARCH & CONSULTING SECTION IV, PAGE 3

34 Figure IV-5. MBE/WBE share of prime/ subcontract dollars for federallyfunded transportation construction and engineering contracts, before and after October 1, Note: Certified DBE utilization. For more detail, and for results by DBE group, see Figures E-3 and E-4 in Appendix E. 30 Number of contracts analyzed is 1,299 for October 1999 September 2005 federally-funded contracts and 113 for October federally-funded contracts. Source: BBC Research and Consulting from data on NDOT contracts DBE Federally-funded contracts Oct Sept DBE Federally-funded contracts Oct Utilization of firms by race and gender group. Hispanic American-owned firms and white women-owned firms received the largest share of prime/subcontract dollars on federally-funded contracts with goals and on state-funded contracts. Native American-owned firms received substantial share of federally-funded contract dollars after October Other minority groups received a much smaller share of contract dollars. Figure IV-6 on the following page reports these results. Women-owned firms. About 3.8 percent of federally-funded contract dollars from October 1999 through September 2005 went to white women-owned firms. Utilization of WBEs was lower for federally-funded contracts after October 1, 2005 and for state-funded contracts. Only counting white women-owned firms that were DBE-certified, utilization of WBEs was 2.0 percent on federallyfunded contracts with DBE goals. (Note that women-owned firms means businesses owned by white women. Utilization of firms owned by minority women is included in the utilization figures for the specific race or ethnic group. ) Native American-owned firms. Native American-owned firms received three-tenths of one percent of federally-funded contract dollars for October 1999 through September 2005 but 9.2 percent of dollars for October 2005 through 2006 contracts. On state-funded contracts, Native Americanowned firms accounted for 3.2 percent of the contract dollars. Almost none of the utilization of Native American-owned firms pertains to firms that are certified as DBEs. Hispanic American-owned firms. On federally-funded contracts from October 1999 through September 2005, 2.8 percent of combined prime contract and subcontract dollars went to Hispanic American-owned firms. Utilization of Hispanic American-owned firms was lower for federallyfunded contracts from October 2005 through 2006 and among all state-funded contracts. Only including Hispanic American-owned firms certified as DBEs, utilization was 1.6 percent for federally-funded contracts from October 1999 through September 2005 and was lower for federallyfunded contracts after October 1, 2005 and for state-funded contracts (see Figure IV-6). Asian-Pacific American-owned firms. For federally-funded contracts for October 1999 through September 2005 and for state-funded contracts, Asian-Pacific American-owned firms received onetenth of one percent of total contract dollars. Utilization was two-tenths of one percent on federallyfunded contracts after October 1, BBC RESEARCH & CONSULTING SECTION IV, PAGE 4

35 Subcontinent Asian American-owned firms. Subcontinent Asian American-owned firms received one-tenth of one percent of federally-funded contract dollars for October 1999 through September Utilization was less than five-one hundredths of one percent on federally-funded contracts after October 1, Utilization was five-tenths of one percent for state-funded contracts. None of the utilized Subcontinent Asian American-owned firms were certified as DBEs. African American-owned firms. Utilization of African American-owned firms was one-tenth of one percent for federally-funded contracts from October 1999 through September 2005 and three-tenths of one percent after October 1, Utilization of African American-owned firms for state-funded contracts was less than five-one hundredths of one percent. Most of the dollars going to African American-owned firms were to businesses certified as DBEs. DBEs owned by white males. In terms of dollars, utilization for certified DBEs owned and controlled by white men was at or below one tenth of one percent. Figure IV-6. DBE and MBE/WBE share of prime/subcontract dollars for transportation construction and engineering contracts, by race/ethnicity/gender Federally-funded contracts Oct Sept Oct State-funded contracts Oct MBE/WBEs African American-owned Asian-Pacific American-owned Subcontinent Asian American-owned Hispanic American-owned Native American-owned Total MBE WBE (white women-owned) Total MBE/WBE DBEs African American-owned Asian-Pacific American-owned Subcontinent Asian American-owned Hispanic American-owned Native American-owned Total MBE WBE (white women-owned) White male-owned DBE Total DBE Note: Source: Numbers rounded to nearest tenth of 1 percent. Numbers may not add to totals due to rounding. For more detail, see Figures E-3, E-4 and E-29 in Appendix E. Number of contracts analyzed is 1,299 for October 1999 September 2005 federally-funded, 113 for October federally-funded contracts and 1,162 for October state-funded contracts. BBC Research and Consulting from data on NDOT contacts. BBC RESEARCH & CONSULTING SECTION IV, PAGE 5

36 Overall Disparity Analysis Interpreting any differences in MBE/WBE utilization for contracts with and without goals is difficult because the types, sizes and locations of contracts and subcontracts may differ between federallyfunded contracts for October 1999 through September 2005 and state-funded contracts for October 1999 through Federally-funded contracts for October 2005 through December 2006 could be different from contracts prior to October 1, In addition, simple comparisons of MBE/WBE utilization for contracts with and without goals do not show whether minority- and women-owned firms are under- or over-utilized relative to the utilization expected based on MBE/WBE availability for those specific sets of contracts and subcontracts. It may be that utilization of MBE/WBEs is below what would be expected even with goals in place. Alternatively, MBE/WBE utilization could exceed availability for contracts without goals. The following disparity analysis controls for differences in types, sizes and locations of contracts and subcontracts. By comparing actual utilization with the relative availability of minority- and womenowned firms to perform that set of prime contracts and subcontracts, BBC can determine how contract goals affect MBE/WBE utilization and whether current neutral remedies are sufficient to bring MBE/WBE utilization in line with relative MBE/WBE availability. If disparities exist, disparity analysis helps to identify the types of contracts and subcontracts and the race/ethnicity/gender groups showing disparities. Methodology. BBC compared percentage utilization of minority- and women-owned firms by race/ethnicity/gender with the share of contract dollars that might go to minority- and womenowned firms based on BBC availability analysis. Example of a disparity analysis table. The balance of this section of the report, and the disparity results presented in the sections that follow, are based on the detailed disparity tables found in Appendix E. Therefore, it is useful to describe the detailed analysis from which BBC draws results. Figure IV-7 on the following page presents an example of a disparity table from Appendix E. This disparity table pertains to NDOT federally-funded construction and engineering contracts awarded from October 1999 through September It includes dollars for prime contractors and subcontractors (and suppliers when data were available). DBE contract goals were applied during this time period for federally-funded contracts. Each of the disparity tables include the same columns and rows. BBC RESEARCH & CONSULTING SECTION IV, PAGE 6

37 Figure IV-7. MBE/WBE utilization, availability and disparity analysis for prime contracts/subcontracts on federally-funded transportation construction and engineering contracts, October 1999 September 2005 Firm Type (a) Number of contracts (subcontracts) (b) Dollars (c) Estimated total dollars (d) Actual utilization (column c/c1) (e) Utilization benchmark (availability) (f) Difference (column d-e) (g) Disparity index (d/e)x100 (1) All firms 1,299 $1,453,558 $1,453,558 (2) MBE/WBE 301 $105,400 $105, (3) WBE 206 $55,390 $55, (4) MBE 96 $50,164 $50, (5) African American-owned 5 $1,191 $1, (6) Total Asian American-owned 11 $2,677 $2, (7) Asian-Pacific American-owned 9 $1,580 $1, (8) Subcontinent Asian American-owned 2 $1,097 $1, (9) Hispanic American-owned 60 $39,413 $41, (10) Native American-owned 17 $4,509 $4, (11) Unknown MBE 3 $2,375 (12) DBE-certified 202 $57,684 $57, (13) Women-owned DBE 131 $29,778 $29, (14) Minority-owned DBE 64 $26,453 $26, (14) African American-owned DBE 3 $1,182 $1, (16) Total Asian American-owned DBE 3 $563 $ (17) Asian-Pacific American-owned DBE 3 $563 $ (18) Subcontinent Asian American-owned DBE 0 $0 $0 0.0 (19) Hispanic American-owned DBE 46 $22,531 $22, (20) Native American-owned DBE 12 $2,178 $2, (21) White male-owned DBE 7 $1,453 $1, (22) Unknown DBE-MBE 0 $0 (23) Unknown DBE 0 $0 Note: Source: Includes NDOT contracts. Spreadsheet rounds numbers to nearest thousand dollars or tenth of one percent. WBE is white women-owned firms. BBC Research and Consulting Disparity Analysis. BBC RESEARCH & CONSULTING SECTION IV, PAGE 7

38 Utilization. Column (a) of this table notes the number of prime contracts and subcontracts in the sample (1,299 total). Column (b) identifies the combined dollars of prime contracts and subcontracts in the sample of contract elements. (Prime contract dollars refer to the dollars retained by the prime contractor after subtracting subcontract dollars.) Dollars are reported in thousands. This disparity table examines contract dollars totaling $1,453,558,000. Column (c) is the estimated total dollars going to each group for all NDOT federally-funded contracts during this time period. Because BBC made every effort to examine all NDOT federallyfunded contracts, column (c) is the same as column (b). Column (d) divides the estimated dollars for each group by the estimated total amount of contract dollars to calculate percentage utilization for each group. Figure IV-7 also has rows for each firm type. All firms in row (1) pertains to combined majority-, minority- and women-owned firms. MBEs refers to all minority-owned firms, whether or not they are DBE-certified. WBEs are white women-owned firms. Total Asian American-owned firms in row (7) provides a total for Asian-Pacific American-owned firms and Subcontinent Asian-owned firms. This subtotal is provided because there are occasionally some Asian American-owned firms included in the analysis that had no further race/ethnicity information. Row (11) shows unknown MBE. These firms were identified as minority-owned but could not be further classified. They are allocated among each race/ethnic group of MBEs in proportion to the known dollars for each group. The bottom half of Figure IV-7 reports utilization for firms that were certified as DBEs in the years in which the contract was awarded. Row (22) and row (23) pertain to certified DBEs for which specific race/ethnicity/gender was not known. Dollars for firms listed under unknown DBE-MBE were allocated among other DBE-certified minority-owned firms in proportion to the known dollars for each group. A similar process was used for unknown DBE, except that dollars were also apportioned to women-owned DBEs and white male-owned DBEs in proportion to the known dollars for those groups. Relative availability. BBC developed an estimate of relative availability of firms for each race/ethnicity/gender group following the procedures described in Section II. Availability is also represented as a percentage. The availability figure for a particular group represents a benchmark with which to evaluate relative utilization for that group for a particular set of contracts. BBC separately calculated relative availability for each group and set of contracts and subcontracts according to the procedures outlined in Section II (and described in more detail in Appendix D). Column (e) of Figure IV-7 reports relative availability for this disparity table. Based on the types of work involved in the prime contracts and subcontracts included in the Figure IV-7 analysis, plus the sizes of these contract elements and their geographic location, BBC estimated that 14.6 percent of the contract dollars would go to minority- and women-owned firms after considering each firm s specialization, interest and qualifications in prime versus subcontract work, geographic reach and bid capacity of firms to perform this work. BBC RESEARCH & CONSULTING SECTION IV, PAGE 8

39 Differences between utilization and availability. The first step in analyzing whether there was a disparity between the relative utilization of a particular group and its relative availability is to subtract percentage utilization from percentage availability. When examining all MBE/WBEs in Figure IV-7, utilization was 7.3 percentage points below availability. This difference is reported in column (f). It is sometimes difficult to interpret absolute differences between relative utilization and relative availability, especially when utilization and availability are very small. Therefore, BBC also calculated a disparity index, which divides percentage utilization by percentage availability and multiplies the result by 100. An index of 100 means that there is parity between relative utilization and availability for a particular group. An index below 100, especially below 80, may indicate a substantial disparity. Column (g) in the disparity tables provides the disparity index for each group. Note that all percentages in the disparity tables were rounded to the nearest tenth of 1 percent after making all calculations. Percentages correctly add and subtract, even though the rounding may make actual sums appear to differ by one tenth of 1 percent. In addition, the disparity index is derived from the detailed data for percentage utilization and availability before any rounding. The DBE utilization statistics at the bottom of Figure IV-7 are provided as reference. BBC did not conduct disparity analyses for certified DBEs for the reasons described in Section II. Results of a disparity analysis. The disparity analysis shown in Figure IV-7 reflects the influence of DBE contract goals, as goals were typically set on federally-funded contracts prior to October 1, Any lack of disparity for a particular MBE/WBE group could suggest that the DBE contract goals program was effective in increasing utilization for that group. Column (d) indicates that the combined prime contract and subcontract utilization of MBE/WBEs was 7.3 percent for these contracts. This utilization was below what would be anticipated based on relative availability to perform the work involved in these contracts 14.6 percent as shown in column (e). Utilization of MBE/WBEs was 7.3 percentage points below availability, a statistic presented in column (f). (Note that all statistics in the disparity analysis are rounded to the nearest tenth of 1 percent.) Dividing 7.3 percent utilization by 14.6 percent availability and multiplying by 100 yields a disparity index of There is a disparity between overall utilization and availability of minority- and women-owned firms even with the DBE contract goals program in place. Minority- and womenowned firms received about 50 cents out of every dollar of utilization expected based on relative MBE/WBE availability for this work. Figure IV-7, and the other disparity tables in Appendix E, allow exploration of the components of any overall disparity for MBE/WBEs. As Figure IV-7 demonstrates, utilization of women-owned firms (3.8 percent) is very close to relative availability of women-owned firms to perform the work involved in this set of contracts (3.6 percent). The disparity index for women-owned firms is approximately There is no disparity for the utilization of women and firms for this set of contracts. BBC RESEARCH & CONSULTING SECTION IV, PAGE 9

40 On the other hand, Hispanic American-owned firms received only 2.8 percent of contract dollars, less than the 5.0 percent relative availability to perform the work included in Figure IV-7. The disparity index for Hispanic American-owned firms is 57.3, indicating that Hispanic Americanowned firms received 57 percent of the dollars on these contracts that would be anticipated based on relative availability of Hispanic American-owned firms to perform this work. Figure IV-8 summarizes the disparity indices from Figure IV-7. A line down the center of the graph shows an index of 100, which indicates parity between relative utilization and relative availability for a group. Indices under 100 may indicate a disparity between utilization and availability. The graph ends at a disparity index of 200 even though, in some cases, disparity indices exceed 200. For reference, a line is drawn at an index of 80. In the context of employment law, some courts use 80 as a benchmark for what may indicate a substantial disparity. Although this may not be as important a benchmark for evaluating disparities between utilization and availability of minority- and womenowned firms, BBC provides it here as a reference point MBE/WBE. As Figure IV-8 shows, minority- and women-owned firms, overall, have utilization that is 50 percent of what would be expected based on overall MBE/WBE availability for these contracts. Utilization of each MBE/WBE group except for WBEs and African American-owned firms is below relative availability for that group, resulting in disparity indices below 80. Figure IV-8. Disparity indices for MBE/WBE utilization as prime contractors and subcontractors on federallyfunded transportation construction and engineering contracts, Oct Sept MBE/WBE WBE African American Note: Includes NDOT contracts. Utilization and availability includes non-dbe-certified firms. For more detailed information, see Figure E-3 in Appendix E. Asian-Pacific American 3 Subcontinent Asian American 28 Number of contracts analyzed is 1,299 for federally-funded contracts. Hispanic American 57 Source: BBC Research and Consulting. Native American Disparity analysis for contracts with and without DBE contract goals. BBC first presents results for federally-funded contracts with DBE contract goals and state-funded contracts, which do not have DBE goals. The analysis then turns to federally-funded contracts after NDOT widely communicated that the DBE contract goals program had been discontinued (post-october 1, 2005). State-funded contracts. BBC was able to examine a large number of prime contracts and subcontracts on state-funded contracts for October 1999 through 2006 (1,162 contract elements). No DBE contract goals applied to these contracts. BBC RESEARCH & CONSULTING SECTION IV, PAGE 10

41 The disparity indices for state-funded contracts reflect calculations of MBE/WBE availability, by group, specific to the types, roles, sizes and locations of the work involved in these contracts. Overall MBE/WBE availability was 12.5 percent, somewhat lower than for federally-funded contracts for October 1999 through September However, utilization of MBE/WBEs was 7.3 percent. The resulting disparity index is 59, suggesting that, without race- and gender-based measures, utilization of minority- and women-owned firms will only reach 59 percent of the level expected based on availability for those contracts (59 cents out of every dollar of utilization expected based on MBE/WBE availability for that work). The disparity index for state-funded contracts is somewhat higher than the disparity index for federally-funded contracts from October 1999 through September 2005 (50). Figure IV-9 compares the results for state-funded contracts to federally-funded contracts from October 1999 through September The disparity index of 73 for WBEs suggests that utilization was about three-quarters of what would be anticipated from the relative availability of women-owned firms. Disparity indices for Hispanic American- and Asian-Pacific American-owned firms indicated large disparities for state-funded contracts. The disparity index for Hispanic American-owned firms for state-funded contracts was 26, about one-half the size of the index for contracts with DBE goals. The disparity index for Native American-owned firms on state-funded contracts was almost 200, indicating utilization at a rate twice expectation given availability of firms in this group. Utilization of Asian-Pacific American-owned firms on state-funded contracts was less than five percent of what would be anticipated from relative availability of these firms. Figure IV-9. Disparity indices for MBE/WBE utilization as prime contractors and subcontractors on federallyand state-funded transportation construction and engineering contracts MBE/WBE WBE Federally-funded Oct Sept State-funded Oct Note: Includes NDOT contracts. Utilization and availability includes non-dbe-certified firms. For more detailed information, see Figure E-3 and Figure E-29 in Appendix E. African American Asian-Pacific American Number of contracts analyzed is 1,299 for October 1999 September 2005 federally-funded and 1,162 for October state-funded contracts. Subcontinent Asian American Source: BBC Research and Consulting. Hispanic American Native American BBC RESEARCH & CONSULTING SECTION IV, PAGE 11

42 Federally-funded contracts after October 1, Figure IV-10 presented disparity indices for a group of federally-funded contracts that typically had DBE contract goals. Figure IV-10 compares these indices with the disparity indices for federally-funded contracts after October 1, 2005, which did not include DBE contract goals. The data on post-october 1, 2005 contracts is limited there were only 113 contract elements (prime contracts and subcontracts) in the contract data collected for this time period. (Figure E-4 in Appendix E presents utilization and availability figures that lead to the disparity indices for post-october 1, 2005 contracts in Figure IV-10.) Figure IV-10. Disparity indices for MBE/WBE utilization as prime contractors and subcontractors on federallyfunded transportation construction and engineering contracts, Oct Sept and Oct MBE/WBE WBE African American Federally-funded Oct Sept Federally-funded Oct Note: Includes NDOT contracts. Utilization and availability includes non-dbe-certified firms. For more detailed information, see Figure E-3 and Figure E-4 in Appendix E. Asian-Pacific American 3 4 Number of contracts analyzed is 1,299 for October 1999 September 2005 federally-funded and 113 October federally-funded contracts. Subcontinent Asian American Hispanic American Source: BBC Research and Consulting. Native American As the disparity indices in Figure IV-10 indicate, discontinuing the DBE contract goals program on October 1, 2005 had no clear effect on overall MBE/WBE utilization. With DBE contract goals, MBE/WBEs were receiving 50 cents of every contract dollar expected based on MBE/WBE availability for that work. From the data collected for October 2005 through September 2006, MBE/WBEs received 88 cents of every contract dollar of utilization expected based on availability for those contracts. Discontinuing the DBE goals may have had little impact on some groups and a larger effect on others. The disparity index for African American-owned firms, 85 for federally-funded contracts with goals, increased to 352 on federally-funded contracts without goals. The disparity indices for Asian- Pacific American- and Subcontinent Asian American-owned firms were small for federally-funded contracts before and after October 1, The disparity between utilization and availability of Hispanic American-owned firms was larger for the October 2005-December 2006 contracts (disparity index of 21) than the disparity on contracts with goals (disparity index of 57). Womenowned firms achieved parity in their utilization on federally-funded contracts during both periods. Native-American-owned firms were dramatically over-utilized on the 113 contracts after October 1, BBC RESEARCH & CONSULTING SECTION IV, PAGE 12

43 Figure IV-11. Defining and Measuring Utilization BBC conducted telephone interviews with 4,117 such business establishments a number of completed interviews that is so large as to often be treated as a population, not a sample. BBC s analysis of the confidence interval around the estimate of MBE/WBEs representation among all firms available for NDOT and local government transportation work, 24.4 percent is accurate within about +/- 2.2 percentage points at the 95 percent confidence level (BBC applied the finite population correction factor when determining confidence intervals). At this level of accuracy in the availability analysis, a disparity index of 90 could technically be statistically significant. BBC s availability figures for most minority groups are even more accurate. (By comparison, most survey results for proportions reported in the popular press are +/- 5 percentage points or, at best, +/- 3 percentage points.) Analysis of Statistical Significance of Any Disparities Statistical significance of any disparities relates to the degree a researcher can reject random chance as a cause of the disparities. Often, chance in sampling of data is the factor that researchers consider in determining statistical significance of results. BBC s availability analysis, however, attempted to contact every firm identified in Nevada related to transportation construction or engineering identified by Dun & Bradstreet, as described in Appendix C. Much of the utilization data analysis also uses data that approach a population of contracts. Nearly any disparity when comparing overall utilization with availability would be statistically significant. Monte Carlo simulation. There are many opportunities in the sets of prime contracts and subcontracts BBC analyzed for minority- and womenowned firms to be awarded work. Some contract elements involve large dollars and others may be only a few thousand dollars. Monte Carlo analysis is a useful tool because there are many individual chances at winning work and each has a different payoff. The technique works as follows: The statistical analysis starts by examining an individual contract element (a prime contract or subcontract). BBC determined from the Availability Survey the individual firms available for that contract element based on type of work, prime versus subcontract role, size of the prime contract or subcontract, and location of the work. Each firm meeting those criteria in the Availability Survey were assumed to have an equal chance of receiving that contract element. The Monte Carlo simulation randomly chooses a firm for a contract element from the pool of available firms for that element. For example, the odds of a woman-owned firm receiving that contract element are equal to the number of women-owned firms available for that work divided by the total number of firms available for that contract element based on what is known about the contract element and the firms in the Availability Survey that meet those criteria. A single Monte Carlo simulation run then repeats the above process for all other contract elements in that set of contracts. The output of a single Monte Carlo run is simulated utilization of minority- and women-owned firms, by group, for that set of contract elements for that run. The Monte Carlo simulation is then repeated 1 million times for each set of contracts. BBC RESEARCH & CONSULTING SECTION IV, PAGE 13

44 The output of a Monte Carlo simulation is the number of runs out of 1 million that produce a result observed in the actual data. For state-funded contracts, 1,748 out of the 1 million runs produced a level of overall MBE/WBE utilization that was equal to or below the actual utilization of 7.3 percent. However, for just Hispanic American-owned firms, about 200 of the 1 million simulation runs replicated a level of Hispanic American-owned firms of 1.1 percent or below. BBC applied a 95 percent confidence level statistical standard, which is equivalent to a two standard deviation test sometimes applied by the courts when evaluating the statistical significance of the disparity results. Applying a two-tailed test, the maximum number of simulations that could equal or fall below actual utilization is 25,000 out of 1 million, or 2.5 percent of total simulation runs, for a result to found to be statistically significant. Because less than 25,000 of the 1 million simulation runs for MBE/WBEs were equal to or below actual utilization of 7.3 percent, the overall disparity for MBE/WBEs is statistically significant. Results for state-funded contracts. Figure IV-12 presents results of these statistical significance tests for state-funded contracts. BBC s Monte Carlo simulation also rejected chance in contract and subcontract awards as an explanation of observed disparities on state-funded contracts for Hispanic American-, and Asian-Pacific American-owned firms. Lack of statistical significance in the disparity for African American-owned firms for state-funded contracts must be interpreted with caution. The observed disparity is less than MBE/WBEs overall (disparity index of 36 compared with 59 for MBE/WBEs). However, 19 percent of the Monte Carlo runs showed a level of utilization for African American-owned firms at or below the 0.05 percent utilization found for these firms (utilization of less than 5 cents out of every $100). One of the reasons that the simulations showed that chance could not be rejected as an explanation for the disparity for African American-owned firms is because of the small number of firms available for this work. There were relatively few chances to be chosen for a contract element due to the small number of African American-owned firms. This is an issue with a statistical significance test for disparities involving small numbers. Some courts have recognized this issue when interpreting statistical results. Figure IV-12. Statistical significance of any observed disparities in MBE/WBE utilization for state-funded construction and engineering contracts, October MBE/WBE Group Disparity Index Number of simulation runs out of 1 million that replicated observed utilization Odds of observed disparity occurring due to chance Reject chance in awards of contract elements as cause of disparity? MBE/WBE 59 1, Yes WBE 73 54, No African American , No Asian Pacific American 5 0 * Yes Subcontinent Asian American 304 n/a n/a No Hispanic American Yes Native American 198 n/a n/a No Note: Source: Includes NDOT contracts. Utilization and availability includes non-dbe-certified firms. *=less than one hundredth of 1 percent. BBC Research and Consulting. BBC RESEARCH & CONSULTING SECTION IV, PAGE 14

45 Results for federally-funded contracts. For federally funded contracts before October 1, 2005, the Monte Carlo simulation procedure rejected chance in contract and subcontract awards as an explanation of observed disparities for MBE/WBE, Asian-Pacific American-owned and Native American-owned firms. Figure IV-13 presents results for federally funded contracts before October 1, Figure IV-13. Statistical significance of any observed disparities in MBE/WBE utilization for federallyfunded construction and engineering contracts, October 1999-September 2005 MBE/WBE Group Disparity Index Number of simulation runs out of 1 million that replicated observed utilization Odds of observed disparity occurring due to chance Reject chance in awards of contract elements as cause of disparity? MBE/WBE 50 2, Yes WBE 106 n/a n/a No African American , No Asian-Pacific American 3 0 * Yes Subcontinent Asian American 28 68, No Hispanic American , No Native American 25 24, Yes Note: Source: Includes NDOT contracts. Utilization and availability includes non-dbe-certified firms. *=less than one hundredth of 1 percent. BBC Research and Consulting. Results for federally funded contracts after October 1, 2005 are presented in Figure IV-14. Note that while none of the disparities are statistically significant, the disparity indices for Hispanic American-owned firms and Subcontinent Asian American-owned firms were lower than reported in Figure IV-13. The lack of statistical significance is due in part to the number of contract elements analyzed for Figure IV-14 (113 total contract elements, compared with 1,299 for Figure IV-16). Figure IV-14. Statistical significance of any observed disparities in MBE/WBE utilization for federallyfunded construction and engineering contracts, October MBE/WBE Group Disparity Index Number of simulation runs out of 1 million that replicated observed utilization Odds of observed disparity occurring due to chance Reject chance in awards of contract elements as cause of disparity? MBE/WBE , No WBE 115 n/a n/a No African American 352 n/a n/a No Asian-Pacific American 4 83, No Subcontinent Asian American 0 394, No Hispanic American , No Native American 760 n/a n/a No Note: Source: Includes NDOT contracts. Utilization and availability includes non-dbe-certified firms. BBC Research and Consulting. BBC RESEARCH & CONSULTING SECTION IV, PAGE 15

46 Summary Key information from the DBE and MBE/WBE utilization analysis includes: Firms certified as DBEs obtained 4.0 percent of contract dollars for federally-funded contracts from October 1999 through September Including MBE/WBEs not certified as DBEs, utilization was 7.3 percent. Minority- and women-owned firms that are not DBE-certified account for a substantial portion of total MBE/WBE utilization, especially for federally-funded contracts after October 1, 2005 and for state-funded contracts. Utilization of DBEs is lower for contracts without DBE contract goals (federally-funded contracts after October 1, 2005 and state-funded contracts for October ). Total MBE/WBE utilization is the same on state- and federally-funded contracts (7.3 percent). Based on limited data for federally-funded contracts after October 1, 2005, MBE/WBE utilization was higher for contracts after NDOT discontinued DBE contract goals. White women- and Hispanic American-owned firms represent much of the total utilization of MBE/WBEs for federally-funded contracts before October 1, Native American-, white women- and Hispanic American-owned firms represent much of the total utilization of MBE/WBEs for state-funded contracts. From the overall disparity analysis, BBC concludes that: Even with DBE contract goals, there are overall disparities between MBE/WBE utilization and availability on federally-funded contracts (disparity index of 50). Disparities are relatively large for Hispanic American-, Asian-Pacific American-, Subcontinent Asian American- and Native American-owned firms. For state-funded contracts, which did not have DBE contract goals, there were disparities for each group except for Subcontinent Asian American- and Native American-owned firms (overall disparity index for MBE/WBEs of 59). Disparities were relatively large for African American-, Asian-Pacific American- and Hispanic American-owned firms. Limited data are available on MBE/WBE utilization on federally-funded contracts after NDOT discontinued DBE contract goals. BBC s analysis suggests disparities for some MBE/WBE groups, but that overall levels of disparities for MBE/WBEs were less than those found for contracts prior to October 1, 2005 Appendix E provides considerable additional information concerning utilization of MBE/WBEs and certified DBEs on NDOT projects. Appendix E also analyzes MBE/WBE and DBE utilization for each NDOT district. BBC RESEARCH & CONSULTING SECTION IV, PAGE 16

47 SECTION V. Construction Subcontracts As discussed in Section IV, it is important to understand why overall disparities in utilization of minority- and women-owned firms may be occurring and to explore whether there may be neutral explanations for the disparities. This research can also identify potential remedies for any disparities, first considering measures that are race- and gender-neutral. BBC combined qualitative and quantitative information to explore issues specifically related to construction subcontracting. Sections VI, VII and VIII analyze construction prime contracting, engineering subcontracting and engineering prime contracting, respectively. Information on Subcontracting in the Transportation Construction Industry The study team collected qualitative information concerning potential barriers to MBE/WBE participation as subcontractors in transportation construction contracts through in-depth interviews a of minority-, women- and majority-owned firms as well as representatives of trade associations. BBC also included questions regarding work with NDOT and in the Nevada marketplace at the end of the Availability Survey. Some of the results are summarized here. Appendix I provides much more information from the in-depth interviews. Appendix F includes results from the Availability Survey. Why many minority- and women-owned firms focus on subcontracting when pursuing public sector work. Many of the minority and women business owners completing in-depth interviews in this study reported that they often work as subcontractors on public sector construction projects. Some said that they were trying to work more as a prime in the public sector but had difficulty doing so. Size of the prime contracts was a frequently mentioned barrier to public sector prime contract work. One interviewee said that any new or smaller firm, whether DBE or not, is probably. going to be a subcontractor. Section VI, which follows, describes barriers to participation as prime contractors in NDOT and other public sector work. Opportunities to submit price quotes on subcontracts. Compared with bidding as a prime contractor, there are relatively few requirements to bid and perform work as a subcontractor in the public sector or the private sector. For example, NDOT has very few requirements concerning subcontractors on its projects and how subcontractors are selected: Subcontractors must have appropriate contractors licenses; Subcontractors must not be debarred from doing business with the federal government or with NDOT; There are no requirements for subcontractors to provide their own bonding (the project needs to be bonded but all of the bonding can be provided by prime contractors); and Other contract provisions between NDOT and the prime contractor often flow down to subcontractors, and primes may put in additional conditions. BBC RESEARCH & CONSULTING SECTION V, PAGE 1

48 Except for meeting these types of requirements, prime contractors typically select subcontractors using their own methods. Prime contractors do not need to have open solicitation of subcontractors for price quotes, nor must they select the lowest bidder (or have a good reason not to do so). On NDOT contracts, any such requirements related to DBE firms were discontinued in mid NDOT does require each prime bidder to identify the subcontractors that will be involved in the work. Prime contractors must separately identify subs that will receive 5 percent or more of the total value of the project and subcontractors that will receive between 1 and 5 percent of the project. Primes do not need to identify truckers, although trucking firms that are counted as DBEs are recorded. Listing subcontractors at time of bid does not obligate primes to use these firms, except for those meeting DBE requirements (when the DBE goals program was applied). NDOT also asks bidders to identify firms that they solicited for subcontract bids but are not using for the project. These contacted subcontractors include DBE and non-dbes. Methods to identify subcontracting opportunities. Requests for bids appear in newspapers, on the NDOT website and in a Contractors Bulletin. Firms sign up to have the Contractors Bulletin ed, faxed or sent via regular mail. NDOT typically advertises opportunities for four or more weeks. NDOT will also provide planholders lists to firms seeking subcontracting opportunities. Firm owners reported getting information through discussions with NDOT staff, the NDOT website, NDOT faxes, The Contractor Bulletin, the CR Contractor Source, the Construction Notebook, notices in newspapers, plan rooms, and through calls from primes. One interviewee reported no problems obtaining planholders lists. Several firm owners commended NDOT on its user-friendly and informative website. A few contractors completing in-depth interviews stated that it was difficult to find out about NDOT work. A number of firms contacted in the Availability Survey also complained that they did not know how to learn of NDOT opportunities. These firms may not be informed of steps they need to take to receive notices of NDOT jobs. One interviewee recommended a formal DBE Liaison who would inform DBEs how to find out about opportunities and market to larger firms that work with NDOT. One trade association representative also urged improvements in how NDOT keeps associations informed of upcoming projects. One firm recommended that NDOT send changes or addendums on bids to firms that hold a non-bid package. Lists of potential subcontractors. NDOT maintains a DBE directory and makes it available to prime contractors and others in both hard copy form and on the NDOT website. NDOT has also developed a list of pre-qualified contractors, which is also searchable on the NDOT website. Some contractors were familiar with the list and some were not. Some interviewees used other methods to identify subcontractors (Bluebook, business association meetings). Several contractors said that it did not matter whether a firm was a DBE because he did not select subs based on DBE status. One trade association representative noted that most prime contractors hire subcontractors based on established relationships. BBC RESEARCH & CONSULTING SECTION V, PAGE 2

49 Prime contractor solicitation of subcontractors for quotes. Since the DBE subcontracting goals program was discontinued, prime contractors are under no obligation to solicit quotes from subcontractors. Some DBE firms reported a decline in the number of calls they receive from primes since the goals program was discontinued. Other DBE firms report no change. Effect of the past DBE contract goals program. Some interviewees reported that the old DBE contract goals program was effective in introducing MBEs and WBEs to prime contractors. Other interviewees complained that there were not enough certified DBEs in particular disciplines in Nevada to make the program workable. Good faith efforts to meet goals. Prior to mid-2005, prime contractors were required to meet DBE goals on federally-funded construction contracts with goals or make good faith efforts to meet the goals. As reported in Appendix I, MBE/WBEs, trade associations and majority-owned firms were critical of the good faith efforts process. Many firms reported multiple ways in which some prime contractors abused the good faith efforts process under the old DBE contract goals program. DBE firms reported being called for quotes only a few hours or days before a bid was due. Some interviewees said that primes would call them about work that the prime knew they didn t do just to fulfill good faith efforts. Some DBE firms indicated that primes would shop their quotes out to their preferred subcontractor so that the preferred sub could beat their quote, if only by a dollar. The prime could then justify not using the DBE firm. One interviewee reported hearing of primes falsifying their good faith efforts. Another interviewee said that primes do not falsify their good faith efforts but they do package their solicitations in such as way that small businesses are discouraged from submitting quotes. Front companies. Most interviewees reported no knowledge of front companies that fraudulently obtained DBE status. Other interviewees reported the existence of DBE fronts. They reported that business owners have put the company in their wife s name or opened related firms owned by their daughter, sister, mother or wife. Frequency of solicitations after DBE goals program discontinued. The DBE contract goals program was formally discontinued in mid This change was widely announced in October Some minority- and women-owned firms reported declines in utilization after the DBE subcontracting goals program was discontinued. Several firms attributed this change to primes preferring to keep the work in-house. One firm said that the company had to lay off employees after the goals program was discontinued. Good ole boy network. A substantial barrier reported by interviewees, both MBE/WBEs and majority-owned firms, was the perceived inability to break into the market due to pre-existing relationships between prime contractors and subcontractors. Most interviewees reported the existence of a good ole boy network in the Nevada transportation contracting industry. Some viewed this network as an obstacle for minority- and women-owned firms to obtain subcontracts with prime contractors that were not familiar with their work. Even though the exclusion may not be motivated by race or gender discrimination, white male-owned firms have been around long enough to benefit from the relationships. BBC RESEARCH & CONSULTING SECTION V, PAGE 3

50 Bid shopping. Several firm owners reported that they had experienced bid shopping by prime contractors. This included bid shopping on NDOT projects. One interviewee recommended that NDOT develop a bid depository for subcontractors. Prime contractor use of DBEs listed on the project. Interviewees had mixed views of how well NDOT monitored actual use of listed DBEs on projects. One interviewee noted the difficulty in truly knowing whether a DBE was getting the work and being paid, and doubted whether NDOT effectively monitored DBE participation. Race and gender discrimination. Several interviewees reported sexual harassment and discrimination against women in the transportation construction industry. One female business owner indicated that her gender had affected her ability to secure contracts. Contractors aren t pleased with her being on the job maybe because the prime contractors are more comfortable with men. An interviewee reported that her staff is questioned about working for woman boss. One interviewee stated that women are looked at as second class citizens in the transportation industry, capable of very limited tasks flag girls. One contractor reported negative stereotypes that people have of Hispanics. Others reported racial comments from workers on a project, but not by primes or NDOT staff. One interviewee described the work environment for minority firms as hostile. This interviewee said that this is true for African Americans, Hispanics and women. A white male contractor described the work environment for DBE firms as dismal. He also reported that he no longer hears offensive comments about minorities or women. Other minority and female business owners reported that discrimination had not affected their businesses and that the work environment in Nevada is good for minority- and women-owned firms. Potential stigma of DBE certification. A number of interviewees suggested that DBE certification carried a negative stigma. One minority business owner reported that there is a stigma to being certified as a DBE (his firm is DBE-certified). He reported that people assume if you are a DBE, then you are not qualified to do the work. A trade association representative reported negative stereotyping of DBEs extending to NDOT. At least one interviewee made statements consistent with very negative stereotypes of DBEs. This interviewee believed that the DBE program created opportunities for unqualified minority- and women-owned firms to get work. Prompt payment. Perceived slow payment on NDOT jobs affects some firm owners interest in NDOT work. Interviewees said that their companies are not paid on time on NDOT jobs, which has affected their businesses. Some reported that the problem was payment by the prime, not by NDOT. One subcontractor said that he often has problems getting paid at the end of NDOT jobs because of disputes between the prime and NDOT over payment on change orders. His payment is held up until the disputes are resolved. One contractor complained that you cannot lien the property on public sector work, making it difficult to be paid as a sub. Other contractors say that slow pay is inherent in construction. Some firm owners reported no problems being paid on NDOT jobs and that primes promptly pay subs. BBC RESEARCH & CONSULTING SECTION V, PAGE 4

51 Treatment by NDOT staff. Some firms had favorable comments on how they were treated by NDOT staff when performing work on NDOT projects. Others had mixed comments. One minority business owner had negative comments about NDOT inspectors. Effect of DBE Contract Goals on Utilization Reports from some minority and women business owners that they do not have the same opportunities to participate as subcontractors without DBE contract goals are supported by BBC s analysis of projects with and without goals. Federally-funded and state-funded subcontracts. BBC analyzed subcontracting dollars proposed at time of award for federally-funded and state-funded NDOT construction contracts. BBC examined about 954 subcontracts for federally-funded projects from October 1999 through September 2005 and about 608 subcontracts for state-funded contracts. In general, the subcontracts on federally-funded contracts were affected by DBE contract goals. No NDOT state-funded projects had goals. MBE/WBEs obtained 19.3 percent of subcontract dollars on projects without goals (state-funded projects), substantially less than the 26.7 percent of subcontract dollars for federally-funded contracts. Of the 19.3 percent MBE/WBE utilization for state-funded subcontracts, less than one-third was for certified DBEs. DBE utilization was less on state-funded contracts than federally-funded contracts, as shown in Figure V-1. Figure V-1. MBE/WBE share of subcontract dollars for transportation construction contracts, federal vs. state funding Note: For more detail and for results by MBE/WBE group, see Figures E-18 and E-44 in Appendix E. Number of subcontracts analyzed is 954 for October 1999 September 2005 federally-funded contracts, and 608 for October state-funded contracts. Source: BBC Research and Consulting from data on NDOT contracts DBE 14.5 Federally-funded contracts Oct Sept DBE 5.9 State-funded contracts Oct BBC RESEARCH & CONSULTING SECTION V, PAGE 5

52 Federally-funded subcontracts before and after October 1, BBC also compared MBE/WBE utilization on federally-funded contracts before and after October 1, Prior to discontinuing the contract goals program, MBE/WBEs obtained 26.7 percent of the subcontract dollars on federally-funded contracts. MBE/WBE utilization fell to 19.3 percent of subcontract dollars for October 2005 through As shown in Figure V-2, DBEs received 14.5 percent of construction subcontract dollars before and 5.3 percent after October 1, Figure V-2. MBE/WBE share of subcontract dollars for federally-funded transportation construction contracts, before and after October 1, Note: For more detail and for results by MBE/WBE group, see Figures E-18 and E-19 in Appendix E Number of subcontracts analyzed is 954 for October 1999 September 2005 federally-funded contracts, and 71 for October federally-funded contracts Source: BBC Research and Consulting from data on NDOT contracts. 10 DBE 14.5 DBE Federally-funded contracts Oct Sept Federally-funded contracts Oct Utilization of firms by race and gender group. Hispanic American-owned firms and white women-owned firms received the largest share of subcontract dollars on both federally-funded and state-funded contracts. On federally-funded contracts from October 1999 through September 2005, 10.6 percent of all subcontract dollars went to Hispanic American-owned firms and 14.6 percent of subcontract dollars were awarded to white women-owned firms. Utilization of Hispanic Americanand women-owned firms was lower for subcontracts after October 1, 2005 and on state-funded contracts. Combined, utilization of all non-hispanic MBEs was 1.6 percent of all subcontract dollars for federally-funded contracts prior to October 1, 2005 and 3.7 percent for subcontracts on state-funded projects. BBC identified no Asian-Pacific American- and Subcontinent Asian American-owned firms among the 71 subcontracts for federally-funded projects from October 2005 through BBC RESEARCH & CONSULTING SECTION V, PAGE 6

53 Figure V-3. DBE and MBE/WBE share of subcontract dollars for transportation construction contracts, by race/ethnicity/gender Federally-funded contracts Oct Sept Oct State-funded contracts Oct MBE/WBEs African American-owned Asian-Pacific American-owned Subcontinent Asian American-owned Hispanic American-owned Native American-owned Total MBE WBE (white women-owned) Total MBE/WBE DBEs African American-owned Asian-Pacific American-owned Subcontinent Asian American-owned Hispanic American-owned Native American-owned Total MBE WBE (white women-owned) White male-owned DBE Total DBE Note: Numbers rounded to nearest tenth of 1 percent. For more detail, see Figures E-18, E-19 and E-44 in Appendix E. Number of subcontracts analyzed is 954 for Oct Sept federally-funded contracts, 71 for October federally-funded contracts and 608 for Oct state-funded contracts. Source: BBC Research and Consulting from data on NDOT contracts. BBC RESEARCH & CONSULTING SECTION V, PAGE 7

54 Disparity Analysis The conclusion that utilization of MBE/WBEs as subcontractors drops when projects do not have DBE contract goals does not necessarily mean that minority- and women-owned firms are at a disadvantage when competing for subcontracts. BBC performed a disparity analysis for construction subcontracts to determine the relative difference between MBE/WBE utilization and the availability of MBE/WBEs for these subcontracts. Federally-funded and state-funded subcontracts. BBC s analysis shows that the 26.7 percent of subcontract dollars MBE/WBEs received for federally-funded construction contracts prior to October 1, 2005 exceeded what one would expect given the relative availability of MBE/WBE for the location, types and sizes of these projects. Figure V-4 presents these results. Utilization exceeded availability for women and Hispanic American-owned firms. However, on state-funded construction contracts MBE/WBEs overall received about 77 cents out of every subcontract dollar expected based on availability (disparity index of 77). There were substantial disparities for African American-, Asian-Pacific American-, Hispanic American- and Native American-owned firms. Utilization of WBEs closely matched what would be expected based on availability for these subcontracts, and utilization of Subcontinent Asian American-owned firms substantially exceeded availability. These results indicate that, without DBE contract goals, there are disparities in the utilization of African American-, Asian-Pacific American-, Hispanic American- and Native American-owned firms as subcontractors based on information from state-funded contracts. Figure V-4. Disparity indices for MBE/WBE utilization on federally- and state- funded transportation construction subcontracts, Oct Sept and Oct WBE/MBE WBE Federally-funded Oct Sept State-funded Oct Note: Includes NDOT contracts. For more detailed information, see Figure E-18 and Figure E-44 in Appendix E. Number of subcontracts analyzed is 954 for Oct Sept federally-funded contracts and 608 for Oct state-funded contracts. African American Asian-Pacific American Source: BBC Research and Consulting. Subcontinent Asian American Hispanic American Native American BBC RESEARCH & CONSULTING SECTION V, PAGE 8

55 Federally-funded subcontracts before and after October 1, Based on the 71 subcontracts BBC was able to examine for October 2005 through 2006, overall MBE/WBE utilization on federally-funded contracts without DBE goals fell below what would be expected based on MBE/WBE availability. MBE/WBEs received 75 cents of every expected subcontract dollar for the work involved in these subcontracts, close to the rate found for state-funded subcontracts. BBC identified disparities for Asian-Pacific American-, Subcontinent Asian American-, Hispanic American- and Native American-owned firms for federally-funded construction subcontracts after October 1, Utilization exceeded availability for other MBE groups. Because of the number of subcontracts examined (71), one must be cautious in interpreting results for October 2005 through 2006, especially for individual MBE/WBE groups. For example, results for African American-, Subcontinent Asian American- and Native American-owned firms differ substantially from what was found for the much larger set of state-funded subcontracts. Exhibit V-5. Disparity indices for MBE/WBE utilization on federally-funded transportation construction subcontracts, Oct Sept and Oct MBE/WBE WBE Federally-funded Oct Sept Federally-funded Oct Note: Includes NDOT contracts. For more detailed information, see Figure E-18 and Figure E-19 in Appendix E. Number of subcontracts analyzed is 954 for Oct Sept federally-funded contracts and 71 for Oct federallyfunded contracts. Source: BBC Research and Consulting. African American Asian-Pacific American Subcontinent Asian American Hispanic American Native American Participation of MBE/WBE Subcontractors in the Private Sector Since 2000, the gaming industry in Nevada has developed MBE/WBE programs that encourage prime contractors to include minority- and women-owned firms as subcontractors. Some interviewees reported that DBE utilization in the gaming industry exceeds 10 percent. On large casino projects, if you don t have minority participation, they won t accept your bid. Other interviewees place DBE participation on these projects even higher (e.g. 30 percent). Even so, a number of MBE/WBEs interviewed had not received casino work. One interviewee reported that these private sector jobs are more profitable and more accessible than public sector work. Interviewees reported that other private sector organizations such as utilities also encourage MBE/WBE participation. BBC RESEARCH & CONSULTING SECTION V, PAGE 9

56 Several interviewees discussed effort to remove barriers to DBE participation in the private sector. They indicated that companies work with DBE to help them obtain financing and insurance. Companies may have their own comprehensive insurance for subcontractors. However, one reported barrier to casino work is that you must be a union shop. One interviewee contrasted private and public sector project owners by indicating that private sector owners encourage development of DBEs but on federal highway work, they have a goal, but they don t do anything to help develop those contractors. A number of MBE/WBE reported that the primes that use them in the public sector also use them on private sector work. Many reported strong relationships with these primes. Other MBE/WBEs reported difficulty obtaining private sector work as subcontractors. Some reported that primes in the private sector try to keep as much work as possible, which limits opportunities for subcontractors. BBC RESEARCH & CONSULTING SECTION V, PAGE 10

57 SECTION VI. Construction Prime Contracts Even though many small contractors and MBE/WBEs perform both subcontracts and prime contracts, and certain requirements such as construction licenses pertain to both sets of work, other barriers may apply when competing for prime contracts. This section examines both qualitative and quantitative information related to construction prime contracting. Qualitative Information on Prime Contracting in the Transportation Construction Industry Based on in-depth interviews and surveys with business owners and managers, and in-depth interviews with trade associations, the study team identified several possible barriers to participation as prime contractors for transportation work. BBC also reviewed NDOT bid processes. General comments. Several interviewees said that DBEs working as primes in the public sector were rare. A number of interviewees commented on the relatively small number of prime contractors that get the bulk of NDOT work. Other general comments pertained to the competitiveness of the industry. For example, Bidding on and winning NDOT and local government work is very difficult because of the amount of competition pricing has to be low to compete, which leaves little margin for error. Size of contracts. Size of contract was a frequently mentioned barrier to doing business with NDOT, or in the public sector in general. One trade association representative said that when you start bundling contracts and the contracts are up in the multi-million dollars the only ones getting contracts are the big old established companies. Several interviewees stated that NDOT contracts are too large for small or mid-sized businesses to bid as prime contractors. Interviewees acknowledged that highway work tends to be multi-faceted and large in scope. However, these interviewees still urged NDOT to make an effort to beak these projects up into smaller pieces to facilitate opportunities for smaller contractors. Licensing. Every contractor must be licensed through the State Contractors Board. The Contractors Board not only reviews qualifications to work in a discipline but also financial and other information in order to set a limit on the size of a job that a contractor can perform. Many interviewees reported no problems with licensing, and several contractors had positive comments about the Contractors Board. Others reported that the licensing process was tedious, slow and labor intensive. One trade association representative said that it takes connections at the Board to get your paperwork processed quickly. One contractor questioned why Nevada (contrary to the practice of other states) puts monetary limits on contractors licenses. BBC RESEARCH & CONSULTING SECTION VI, PAGE 1

58 Prequalification. NDOT pre-qualifies firms seeking to bid as prime contractors on public works contracts with the Department according to state law (NRS ). Prequalification determines the maximum size of NDOT public works contract that a firm may bid on. Firms must be prequalified at time of bid. Prequalification applications are accepted up to five days in advance of a bid opening date. Prequalification is valid for up to one year from the application date. Firms that have been debarred by the federal government automatically fail NDOT pre-qualification. The second step of the pre-qualification process reviews whether the firm has a valid license number for specific types of work (e.g., general engineering; general building; paving, excavating and grading; and fencing and guardrail). Review of licensing status is the only assessment of qualifications for a particular specialty. In other words, any firm licensed to do paving is deemed pre-qualified for NDOT paving work. The balance of the prequalification process assesses the size of contract that the firm may perform. NDOT uses a standard form to calculate bidding capacity of firms seeking prequalification. The bidding capacity formula considers: Ratings of past performance on contracts with NDOT during the previous three years; Years of experience (for the current firm, as a firm under another name, and in related occupations); Total volume of highway business in the past five years; and Financial factors such as working capital, letters of credit and other cash. Financial factors are most important in determining bidding capacity. Unless a firm is new or has a poor performance history with NDOT, it is automatically pre-qualified to bid on contracts equal to its working capital plus any letters of credit. If it has a poor performance history, the firm will be assigned a bidding capacity of no less than one-half of its working capital plus letters of credit. Once a bidding capacity is determined, the contractor may bid on NDOT contracts up to that limit. Bidding capacity is not used up; that is, a contractor may bid and win multiple large NDOT contracts as long as each contract is below the bidding capacity figure. On occasion, a subsidiary or affiliate and the parent company both apply for NDOT prequalification. When related firms apply, the same assets cannot be used by each firm when calculating bidding capacity (a dollar of working capital only counts toward the parent company or the subsidiary bidding capacity, not both). The NDOT Director has the authority to reject or modify the pre-qualification of any firm. According to NDOT staff, this was done once in the mid-1990s. Any firm can request a hearing if it is dissatisfied with NDOT s pre-qualification decision. This request for a hearing has occurred, but is rare. A number of contractors and trade association representatives were critical of NDOT s prequalification process. One interviewee said that the prequalification process basically eliminates 90 percent of anyone to be able to bid on projects and it is designed to do that. BBC RESEARCH & CONSULTING SECTION VI, PAGE 2

59 Bonding. By state law, NDOT requires performance and payment and materials bonds on transportation construction contracts (NRS ). State statute also requires bid bonds. Unless the work is an emergency contract, NDOT sets bonding on all projects of $35,000 or more. Several contractors reported that bonding requirements are overly stringent. Bonding was widely reported as a barrier to bidding public sector work for small companies. Several contractors said that bonding was a barrier to doing business with NDOT. Their bonding requirements are unrealistic for a small company to qualify for. One contractors surveyed said that NDOT and local government projects are impossible projects for a DBE, MBE, WBE, etc. because of bonding, payment terms, and not having the working capital to finance the job. These are some of the things we small contractors deal with. One trade association representative indicated that his members have substantial difficultly obtaining bonding. It s a Catch 22 because experience is needed for the bond and bonding is needed to obtain the jobs that will provide that experience. Other interviewees reported no problems obtaining bonds. However, one of these contractors said that people without the track record that bonding companies require are experiencing difficultly getting bonds. This affects smaller, newer companies more than established firms. Insurance. One trade association representative indicated that insurance requirements were a burden and urged NDOT to provide OSIP (Owner Supplied Insurance Policies). Some firms in the Availability Survey also complained of insurance requirements on NDOT projects. Other contract requirements and provisions. One contractor who does not pursue NDOT work reported that NDOT over-engineers projects, with specifications that are not found on private sector work. Bidding process, paperwork and red tape. There were mixed reports on NDOT s bidding process. Some contracts had favorable comments and others reported that the process was more difficult than other public sector or private sector agencies. A number of contractors complained of the paperwork involved in NDOT projects. One minority business owner who works as a prime in the private sector said that he didn t have the office staff and the infrastructure to go after prime jobs in the public sector. They bury you in paperwork. He said that this barrier was even more severe for NDOT work. One contractor reported bidding as a prime on NDOT projects and said that he could not get through the paperwork. A trade association representative said that most contractors don t want to put up with the headaches of doing public sector work. Another representative said that due to paperwork and other difficulties, public sector work was a last resort. Information on potential bids. NDOT advertises construction projects as described in Section V. A few contractors stated that their companies had trouble finding jobs. One indicated that NDOT s list of work is not published. Another said that NDOT should call them to request bids. BBC RESEARCH & CONSULTING SECTION VI, PAGE 3

60 One interviewee said that NDOT only advertises in the major dailies in the classifieds on Sunday, and that this was a barrier for all but the largest firms. A number of contractors interviewed in the Availability Survey reported that they did not know how to find out about NDOT projects. As discussed in Section V, other firms reported that NDOT does well with advertising opportunities. Prevailing wage. State law applies prevailing wage requirements to any public works contract. Some contractors said that this requirement discouraged their participation in public sector work. Some firm owners specifically mentioned that unions were a barrier for them. Payment. As reported in Section V, some contractors perceive NDOT as slow pay. According to some interviewees, this negatively affects small companies that could pursue NDOT work. Others reported no problems being paid on NDOT jobs. MBE/WBE Utilization as Prime Contractors BBC examined utilization of minority- and women-owned firms as prime contractors on NDOT construction contracts. Analysis of dollars of utilization is based on dollars that appeared to be retained by the prime after BBC subtracted dollar amounts for each subcontractor identified for the project. Results indicate that a small percentage of prime contract dollars goes to minority- and womenowned firms. Federally-funded and state-funded prime contracts. BBC analyzed utilization in dollars going to prime contractors for 150 federally-funded and 241 state-funded NDOT projects. In general, federally-funded projects were let with DBE contract goals, while those without federal funds did not specify any DBE goals. As shown in Figure VI-1, MBE/WBEs received one-tenth of one percent of prime contract dollars on federally funded contracts for October 1999 through September Among state-funded contracts, 5 percent of prime contract dollars were awarded to minority- and woman-owned firms. Figure VI-1. MBE/WBE share of prime contract dollars for federally- and state-funded transportation construction contracts Note: For more detail and for results by MBE/WBE group, see Figures E-15 and E-41 in Appendix E. Number of subcontracts analyzed is 136 for October 1999 September 2005 federally-funded contracts and 241 for October state-funded contracts. Source: BBC Research and Consulting from data on NDOT contracts DBE DBE Federally-funded contracts Oct Sept State-funded contracts Oct BBC RESEARCH & CONSULTING SECTION VI, PAGE 4

61 Federally-funded prime contracts before and after October 1, BBC also analyzed MBE/WBE participation as prime contractors on 14 federally-funded contracts for October 2005 through 2006 based on the information collected from NDOT and local agencies. MBE/WBEs were awarded about 13 percent of prime contract dollars for this time period. Note that the very small number of contracts for October 2005 through 2006 limits any interpretation of this greater MBE/WBE participation as prime contractors. Figure VI-2. MBE/WBE share of prime contract dollars for federally-funded transportation construction contracts, before and after October 1, 2006 Note: For more detail and for results by MBE/WBE group, see Figures E-15 and E-16 in Appendix E. Number of subcontracts analyzed is 136 for October 1999 September 2005 federally-funded contracts and 14 for October federally-funded contracts. Source: BBC Research and Consulting from data on NDOT contracts DBE DBE Federally-funded contracts Oct Sept Federally-funded contracts Oct BBC RESEARCH & CONSULTING SECTION VI, PAGE 5

62 Utilization of firms by race and gender group. BBC explored the share of prime contract dollars going to each MBE/WBE group for federally- and state-funded construction projects. Figure VI-3 shows that Native American-owned firms account for nearly all of the prime contract dollars awarded to MBE/WBE on NDOT construction projects. Figure VI-3. DBE and MBE/WBE share of prime contract dollars for transportation construction contracts, by race/ethnicity/gender Federally-funded contracts Oct Sept Oct State-funded contracts Oct MBE/WBEs African American-owned Asian-Pacific American-owned Subcontinent Asian American-owned Hispanic American-owned Native American-owned Total MBE WBE (white women-owned) Total MBE/WBE DBEs African American-owned Asian-Pacific American-owned Subcontinent Asian American-owned Hispanic American-owned Native American-owned Total MBE WBE (white women-owned) White male-owned DBE Total DBE Note: Source: Numbers rounded to nearest tenth of 1 percent. For more detail, see Figures E-15, E-16 and E-41 in Appendix E. Number of subcontracts analyzed is 136 for October 1999 September 2005, 14 for October federally-funded contracts and 241 for October state-funded contracts. BBC Research and Consulting from data on NDOT contracts. BBC RESEARCH & CONSULTING SECTION VI, PAGE 6

63 Disparity Analysis There is clear evidence of substantial disparities between the utilization and availability of MBE/WBEs for the prime contracts examined in this study. Federally-funded and state-funded prime contracts. Because firms in each group were rarely utilized as prime contractors on federally-funded contracts, the disparities reported in Figure VI-4 are large. The prime contract dollars going to Native American-owned firms on the 241 state-funded prime contracts exceeded what would be expected based on availability for this work. Figure VI-4. Disparity indices for MBE/WBE utilization on federally- and state-funded transportation construction prime contracts, Oct Sept and Oct WBE/MBE WBE Federally-funded Oct Sept State-funded Oct Note: Includes NDOT contracts. For more detailed information, see Figure E-15 and Figure E-41 in Appendix E. Number of subcontracts analyzed is 136 for October 1999 September 2005 federally-funded contracts and 241 for October statefunded contracts. Source: African American Asian-Pacific American Subcontinent Asian American BBC Research and Consulting. Hispanic American 1 12 Native American BBC RESEARCH & CONSULTING SECTION VI, PAGE 7

64 Federally-funded prime contracts before and after October 1, Because of the ten prime contracts Native American-owned firms received after October 1, 2005, utilization of firms in this MBE group on federally-funded prime contracts far exceeded the amount expected based on firms availability for these contracts. Again, BBC cautions against drawing conclusions from the overall results for the 14 federally-funded prime contracts examined for October 2005 through 2006 and for any results for specific MBE/WBE groups. Figure VI-5. Disparity indices for MBE/WBE utilization on federally-funded transportation construction prime contracts, Oct Sept and Oct WBE/MBE WBE Federally-funded Oct Sept Federally-funded Oct Note: Includes NDOT contracts. For more detailed information, see Figure E-15 and Figure E-16 in Appendix E. Number of subcontracts analyzed is 136 for October 1999 September 2005 federally-funded contracts, and 14 for October federallyfunded contracts. Source: African American Asian-Pacific American Subcontinent Asian American BBC Research and Consulting. Hispanic American 1 Native American 4 1, BBC RESEARCH & CONSULTING SECTION VI, PAGE 8

65 Results for Small Construction Prime Contracts BBC further explored the effect of contract size on MBE/WBE participation by examining contracts under $10 million. Of the 377 NDOT construction contracts analyzed, 39 were for amounts greater than $10 million. The remaining 338 contracts represented 44 percent of all NDOT construction dollars awarded during the study period. On small federally-funded construction prime contracts with DBE goals, MBE/WBEs received twotenths of one percent of prime contract dollars. MBE/WBEs received 6 percent of prime contract dollars on state-funded contracts under $10 million. Figure VI-6 presents the disparity indices for this subset of prime contracts, which are, with small exceptions, comparable to those in Figure VI-4. Limiting the disparity analysis to contracts below $10 million fails to explain the overall disparities for construction prime contracts. Figure VI-6. Disparity indices for MBE/WBE utilization on small federally- and statefunded transportation construction prime contracts, Oct Sept and Oct WBE/MBE WBE Federally-funded Oct Sept State-funded Oct Note: For more detailed information, see Figure E-95 and Figure E-97 in Appendix E. Number of prime contracts analyzed is 102 for October 1999 September 2005 federally-funded contracts, and 236 for October statefunded contracts. Source: African American Asian-Pacific American Subcontinent Asian American BBC Research and Consulting. Hispanic American 5 15 Native American Participation of MBE/WBEs in the Private Sector Some interviewees noted that some MBE/WBEs working as primes in the private sector do not pursue NDOT work. Many of the minority and female business owners interviewed reported success as prime contractors in the private sector. A number of interviewees reported that certain DBEs have been so successful in the private sector that they do not even try to work in the public sector. BBC RESEARCH & CONSULTING SECTION VI, PAGE 9

66 SECTION VII. Engineering Subcontracts Some of the issues identified for firms pursuing construction subcontracts (Section V), also pertain to engineering firms seeking subconsulting work. However, different processes apply for competing for public sector engineering prime contracts or subcontracts. Qualitative Information on Subcontracting in the Transportation Engineering Industry The study team collected qualitative information concerning potential barriers to MBE/WBE participation as subconsultants through interviews with minority-, women- and majority-owned firms, interviews with trade associations and questions in the Availability Survey. Focus on subconsulting when pursuing public sector work. Some firms interviewed in this study indicated that they have to function as a subconsultant on NDOT work because they are not large enough to compete as a prime (even if they do prime work for other clients). Some of the barriers that force some firms to compete as subconsultants rather than as primes are discussed in Section VIII. Requirements to work as a subconsultant on an NDOT engineering project. Firms can obtain subcontracts by responding as part of a team to a Request for Proposal or being used as a subconsultant by a pre-qualified prime that is selected for a task order. Other than proper licensing, there are few other requirements to work as a subconsultant. The prequalification process described for prime consultants in Section VIII does not apply for subconsultants working for firms with task orders. Methods to identify subcontracting opportunities. NDOT provides notices of engineering work in newspapers and on its website, and several businesses reported using these sources. Other engineering and related design firms reported hearing about NDOT subcontracting opportunities when called by prime consultants or by networking in the business community. One interviewee wished that NDOT s website information was as good for engineering projects as it is for construction projects. Some firms in the Availability Survey reported not knowing how to identify NDOT engineering-related work. Even with NDOT s publication of work opportunities, several firm owners said it was important to go to Carson City to find out about upcoming work from NDOT staff. One interviewee stated that once a job is published in the newspaper it is usually too late to bid because other people who found out about it earlier already have the advantage. One interviewee noted that having to maintain personal contacts with NDOT staff in Carson City was a constraint for small businesses. Prime consultant solicitation of subconsultants for bids. Prime consultants are currently under no obligation to solicit bids from subconsultants for any NDOT engineering-related contracts. Prior to discontinuing the program, NDOT established DBE project goals for Requests for Proposals. No goals were enforced for firms receiving task orders under the on-call system. BBC RESEARCH & CONSULTING SECTION VII, PAGE 1

67 Frequency of solicitations after DBE goals program discontinued. As in construction, there were some reports of a drop in solicitation of DBEs for subconsulting opportunities on NDOT projects after the goals program was discontinued. Lists of potential subcontractors. The same lists available for construction are available to identify subconsultants for NDOT engineering-related projects. Stigma associated with DBE status. The same stigma associated with being certified as a DBE reported in Section V for the construction industry was also reported in the engineering industry. Payment. Some interviewees reported that it took a long time to be paid as a subconsultant on an NDOT engineering project. Effect of DBE Contract Goals on Utilization As observed for subcontracting opportunities on construction projects, MBE/WBE and DBE utilization for engineering subcontracts is affected by whether contracts specify a DBE goal. Federally-funded and state-funded subcontracts. BBC analyzed utilization for 80 subcontracts from federally-funded contracts before October 1, 2005 and 21 subcontracts from statefunded contracts across the entire study period. Figure VII-1 reports the results of these analyses. On federal contracts with goals, minority- and women-owned businesses receive just over one-third of all subcontract dollars. A majority of the dollars going to an MBE or WBE went to a certified DBE firm. On state-funded contracts (without goals), MBE/WBEs received 52 percent of total subcontracting dollars. BBC also collected information on federally-funded engineering contracts from October 2005 through 2006; however, there were too few subcontracts to examine any differences before and after October 1, Figure VII-1. MBE/WBE share of subcontract dollars for transportation engineering contracts, federal vs. state funding Note: For more detail and for results by MBE/WBE group, see Figures E-27 and E-53 in Appendix E. Number of subcontracts analyzed is 80 for October 1999 September 2005 federally-funded contracts and 21 for October state-funded contracts Source: BBC Research and Consulting from data on NDOT contracts. 10 DBE 23.7 DBE Federally-funded contracts Oct Sept State-funded contracts Oct BBC RESEARCH & CONSULTING SECTION VII, PAGE 2

68 Utilization of firms by race and gender group. Analysis of utilization by MBE/WBE group for engineering subcontracts (see Figure VII-2) reveals different patterns by group. Women- and Asian-Pacific American-owned firms received similar proportions of subcontracting dollars on engineering projects with DBE goals. Hispanic American- and Native American-owned firms received consistently larger proportions of total subcontracting dollars for engineering services, regardless of whether they had DBE goals. Asian-Pacific American-owned firms received 7 percent of subcontract dollars on federally-funded contracts but were not identified among the subcontractors on state-funded engineering contracts. Hispanic American-owned firms received 28 percent of subcontract dollars for state-funded contracts and just 10 percent of subcontract dollars for federally-funded contracts. Figure VII-2. DBE and MBE/WBE share of subcontract dollars for transportation engineering contracts, by race/ethnicity/ gender Note: Numbers rounded to nearest tenth of 1 percent. For more detail, see Figures E-27 and E-53 in Appendix E. Number of subcontracts analyzed is 80 for October 1999 September 2005 federally-funded contracts and 21 for October state-funded contracts. Source: BBC Research and Consulting from data on NDOT contracts. MBE/WBEs Federally-funded contracts Oct Sept State-funded contracts Oct African American-owned Asian-Pacific American-owned Subcontinent Asian American-owned Hispanic American-owned Native American-owned Total MBE WBE (white women-owned) DBEs Total MBE/WBE African American-owned Asian-Pacific American-owned Subcontinent Asian American-owned Hispanic American-owned Native American-owned Total MBE WBE (white women-owned) White male-owned DBE Total DBE BBC RESEARCH & CONSULTING SECTION VII, PAGE 3

69 Disparity Analysis The overall rate at which MBE/WBEs are utilized as subconsultants exceeds the expected level given availability for both federally- and state-funded engineering contracts. Federally-funded and state-funded subcontracts. Figure VII-3 presents the results of disparity analysis for subcontracts on both federally- and state-funded engineering contracts. As shown, WBEs received subcontract dollars in line with availability for both federally- and statefunded engineering contracts. The same is true for Hispanic American-owned firms as subcontractors to federally-funded engineering projects. Actual utilization of Asian-Pacific American-owned firms on federally-funded subcontracts and of Hispanic American-owned firms on state-funded subcontracts were twice expected utilization. Utilization of Native American-owned firms far exceeded availability. Figure VII-3. Disparity indices for MBE/WBE utilization on federally- and statefunded transportation engineering subcontracts, Oct Sept and Oct WBE/MBE WBE Federally-funded Oct Sept State-funded Oct Note: Includes NDOT contracts. For more detailed information, see Figure E-27 and Figure E-53 in Appendix E. Number of subcontracts analyzed is 80 for October 1999 September 2005 federally-funded contracts and 21 for October statefunded contracts. African American Asian-Pacific American Subcontinent Asian American Source: BBC Research and Consulting. Hispanic American Native American 735 1, Participation of MBE/WBE Subconsultants in the Private Sector BBC s research did not identify barriers to MBE/WBE participation as subconsultants in the private sector. BBC RESEARCH & CONSULTING SECTION VII, PAGE 4

70 SECTION VIII. Engineering Prime Contracts Unlike construction prime contracts, NDOT and other public agencies typically select prime consultants for engineering contracts based on qualifications. This presents a different set of potential barriers to MBE/WBE and small business participation as prime consultants on engineering and other design-related work. Qualitative Information on Prime Contracting in the Transportation Engineering Industry NDOT typically procures engineering services through a multi-step, qualifications-based procurement process that includes: Licensing; Learning of the NDOT proposal opportunities; Pre-qualification for on-call work; Selection for a task order; and Qualifications-based selection for larger or unusual engineering contracts. The study team s review of NDOT s selection processes and interviews and surveys with businesses owners and trade associations identified a number of barriers to obtaining work as a prime consultant. Licensing. Firms conducting transportation engineering services for NDOT must have the appropriate state professional engineers (PE) license. Information on engineering work. NDOT advertises transportation engineering opportunities through newspapers; a bulletin that is ed, faxed and mailed; the Engineering News-Record and notices in specialty publications. There are many divisions that can put out RFPs for engineering services. There is also on-call work that is rotated among engineering firms. Teams compete for these contracts biennially (essentially being pre-qualified for this work). Pre-qualification. Competition for on-call engineering contracts and other engineering work is qualifications-based. Firms selected for on-call contracts compete to be pre-qualified for specific disciplines. They can then receive task orders for that type of work, as discussed below. Subconsultants do not need to be pre-qualified to be used on the on-call assignments. BBC RESEARCH & CONSULTING SECTION VIII, PAGE 1

71 A committee of NDOT staff evaluates qualifications of engineering firms to determine the final list of firms eligible to receive task orders for specific disciplines, and their relative ranking. A firm can be pre-qualified for several disciplines. The evaluation committee considers factors such as: Professional excellence; Capacity; Project team; Past performance (for NDOT and other clients); Location of project team; Project approach; and Other factors. Current volume of work with NDOT is a factor that counts against the firm. Firms receive scores for each evaluation criterion. Each criterion may have a different weight. Prices or rates are not considered in this evaluation. Some interviewees indicated that small businesses have difficulty competing with large national firms to be pre-qualified for NDOT work. Several interviewees indicated that the prequalification selection process was mysterious and that they had been selected for the list one year and not the next. They reported that there was no clear explanation from NDOT why their firms were not successful. One firm owner was successful in being pre-qualified, but reported that NDOT then required her to submit the same application again to be on the on-call list. She had been frustrated enough with dealing with NDOT on the prequalification that she gave up before being listed as an on-call firm. One interviewee reported that it was a Catch 22 scenario where they need NDOT experience to get NDOT work, but can t get experience without winning some jobs. Several firm owners reported that it was costly to respond to NDOT Requests for Proposals, which limits the firms capable of responding. It costs $2,500 just for reproduction costs. One owner favorably commented on Clark County s selection process where you are just given a list of questions to be prepared to answer in an interview. This way everyone competes on a more equal level. One interviewee was critical of NDOT staff giving her incorrect information on forthcoming proposal opportunities. She also expressed frustration with her debriefing with NDOT. She said that no one at NDOT would provide them any specifics as to why they were not successful in being listed on the on-call list. Selection for a task order. Once firms have been awarded master agreements for on-call work, NDOT issues task orders as it needs work done. Assignments are typically rotated, with the first assignment usually going to the firm ranked highest among all firms awarded master agreements for a discipline. The second assignment then goes to the second-ranked firm. NDOT can go outside this order if needed. (District-let task orders are not required to adhere to this rotation.) Once a firm is selected for a task order, NDOT and the firm negotiate a scope of work, schedule, personnel hours and fees. BBC RESEARCH & CONSULTING SECTION VIII, PAGE 2

72 Some interviewees suggested that small businesses be favored in receiving task orders. One business owner was confused about this process and urged NDOT to notify on-call firms of opportunities for specific task orders. Qualifications-based selection for larger or unusual engineering contracts. Some engineering work is either too large to be handled through the on-call process or is outside the disciplines encompassed by existing on-call agreements. These contracts are awarded through an RFP process that is similar to the on-call pre-qualification discussed above. NDOT may conduct a twostage process: evaluation of written qualifications statements and evaluation of a short-list of firms in an interview. Different team of evaluators rate firms at the initial stage and the interview stage. Once a firm is selected, NDOT and the firm negotiate final scope of work, rates and prices. Some of the firms interviewed in this study indicated that NDOT work is often too large for small businesses and recommended segmenting them into smaller pieces. Both white male and minority business owners said the cost of putting together a proposal for a large job was prohibitive for a small firm. Another interviewee said that large engineering firms bait and switch on NDOT jobs, showing staff that won t do the work. He said that small firms do not engage in this practice. When we pitch a job you get us. Prompt payment. Some engineering firms reported slow payment by NDOT. NDOT staff. Some engineering and design firm owners were critical of NDOT staff, reporting that staff were slow or unhelpful. Other firms had extremely positive statements about NDOT staff. MBE/WBE Utilization as Prime Consultants BBC examined utilization of minority- and women-owned firms as prime consultants to NDOT engineering and professional service projects. Very little of these prime contracts went to minority- or women-owned firms. Federally-funded and state-funded prime contracts. Engineering-related prime contracts included 129 federally-funded contracts from October 1999 to September 2005 and 292 statefunded contracts for the entire study period. MBE/WBEs received two-tenths of one percent of prime contract dollars for federally-funded contracts and about 2 percent of prime contract dollars for state-funded contracts. DBEs received comparably small shares of prime contract dollars on these respective contract types. BBC RESEARCH & CONSULTING SECTION VIII, PAGE 3

73 Figure VIII-1. MBE/WBE share of prime contract dollars for transportation engineering contracts, federal vs. state funding Note: 40 For more detail and for results by MBE/WBE group, see Figures E-24 and E-50 in Appendix E. Number of subcontracts analyzed is 129 for October 1999 September 2005 federally-funded contracts and 292 for October state-funded contracts Source: BBC Research and Consulting from data on NDOT contracts DBE 0.2 DBE Federally-funded contracts Oct Sept State-funded contracts Oct Utilization of firms by race and gender group. BBC also explored the share of prime contract dollars going to each MBE/WBE group for federally- and state-funded engineering-related contracts. Figure VIII-2 shows that Asian-Pacific American-, Hispanic-American- and women-owned firms received similar shares of prime contract dollars on NDOT engineering projects. Figure VIII-2. DBE and MBE/WBE share of federally- and state-funded prime contract dollars for transportation engineering contracts, by race/ethnicity/ gender Note: Numbers rounded to nearest tenth of 1 percent. For more detail, see Figures E-24 and E-50 in Appendix E. Number of subcontracts analyzed is 129 for October 1999 September 2005 federally-funded contracts and 292 for October state-funded contracts. Source: BBC Research and Consulting from data on NDOT contracts. MBE/WBEs Federally-funded contracts Oct Sept State-funded contracts Oct African American-owned Asian-Pacific American-owned Subcontinent Asian American-owned Hispanic American-owned Native American-owned Total MBE WBE (white women-owned) DBEs Total MBE/WBE African American-owned Asian-Pacific American-owned Subcontinent Asian American-owned Hispanic American-owned Native American-owned Total MBE WBE (white women-owned) White male-owned DBE Total DBE BBC RESEARCH & CONSULTING SECTION VIII, PAGE 4

74 Disparity Analysis The study team compared percentage utilization with availability for engineering prime contracts and calculated disparity indexes for each MBE/WBE group. Across the board, results indicate that MBE/WBEs received only a portion of the prime contracting dollars expected given their availability for this work. Federally-funded and state-funded prime contracts. BBC identified large disparities in the utilization of MBE/WBEs as prime consultants for both federally- and state-funded engineering contracts. Minority- and women-owned firms received 18 cents of every expected dollar of prime contracts funded with state money. About 3 cents of every dollar expected of federally-funded prime contracts went to MBE/WBEs. Disparities were evident for each MBE/WBE group. Figure VIII-3. Disparity indices for MBE/WBE utilization on federally- and state- funded transportation engineering prime contracts, Oct Sept and Oct WBE/MBE WBE Federally-funded Oct Sept State-funded Oct Note: Includes NDOT contracts. For more detailed information, see Figure E-24 and Figure E-50 in Appendix E. Number of subcontracts analyzed is 129 for October 1999 September 2005 federally-funded contracts and 292 for October state-funded contracts. Source: BBC Research and Consulting. African American Asian-Pacific American Subcontinent Asian American Hispanic American Native American BBC RESEARCH & CONSULTING SECTION VIII, PAGE 5

75 Results for Small Engineering Prime Contracts BBC conducted separate disparity analyses of engineering contracts of $100,000 and below to determine if disparities persisted for these smaller contracts. The results reported in Figure VIII-4 indicate that MBE/WBEs received a proportionate share of dollars on small federally-funded prime contracts. On state-funded prime contracts, MBE/WBEs received just 52 cents of every expected dollar. Contract size does not explain the disparities for state-funded engineering-related prime contracts. There were no contracts going to firms identified as Subcontinent Asian American- or Native American-owned. There were large disparities for Hispanic American-owned firms for these among these small contracts. There were no disparities for Asian-Pacific American-owned firms. Disparity results for African American- and women-owned firms were mixed. Figure VIII-4. Disparity indices for MBE/WBE utilization on federally- and state- funded transportation engineering prime contracts under $500K, Oct Sept and Oct WBE/MBE WBE Federally-funded Oct Sept State-funded Oct Note: Includes NDOT contracts. For more detailed information, see Figure E-101 and Figure E-103 in Appendix E. Number of subcontracts analyzed is 34 for October 1999 September 2005 federally-funded contracts and 140 for October state-funded contracts. African American Asian-Pacific American Subcontinent Asian American Source: BBC Research and Consulting. Hispanic American Native American Participation of MBE/WBEs in the Private Sector Interviews conducted by the project team did not identify barriers to MBE/WBE participation as prime consultants in the private sector in Nevada. BBC RESEARCH & CONSULTING SECTION VIII, PAGE 6

76 SECTION IX. Possible Neutral Remedies The study team reviews possible neutral remedies in six broad categories: Business outreach and communication; Technical assistance; Financing, bonding and insurance assistance; Contracting practice improvements; Small business preferences; and Data collection, tracking and reporting. These categories incorporate the ten specific neutral elements for the implementation of a raceneutral Federal DBE Program outlined in 49 CFR Part 26. Figure IX-1, on page 2, summarizes each element and sub-element and the corresponding category of recommendation that addresses it. Some of these recommendations may require changes in contracting procedures that can only be accomplished though new state law. Certain initiatives would also require significant additional resources. Business Outreach and Communication Many small businesses interviewed in this study were unaware or sometimes misinformed of how to find out about and compete for NDOT prime contracts and subcontracts. The study team recommends multiple outreach and communication strategies to improve small businesses awareness of bidding opportunities and procedures. Notice of opportunities. NDOT provides information about contracting and subcontracting opportunities through multiple means. It could do more to educate firms on how to identify this information. For example, NDOT could try to expand the number of firms subscribing to The Contractors Bulletin. There was also some feedback that the timeliness of the construction information could be improved and the quantity of information on engineering-related work be expanded. In general, NDOT could improve and expand its Doing Business with NDOT website materials. BBC RESEARCH & CONSULTING SECTION IX, PAGE 1

77 Figure IX-1. Neutral Remedies in 49 CFR Part 26 Source: BBC Research and Consulting. BBC RESEARCH & CONSULTING SECTION IX, PAGE 2

78 Notice of contracts. At regular intervals (monthly or quarterly), NDOT might also issue summaries of contracts awarded and thereby inform small businesses about which firms received awards or entered agreements with NDOT during the relevant period. Distributing these notices through means beyond the NDOT website would improve subcontractors ability to identify and target their marketing efforts to firms that have worked or are working with NDOT. NDOT could also summarize awards in the Contractors Bulletin. Electronic media. NDOT could further develop the content of its website to include more detailed information about doing business with the Department, especially for firms that are unfamiliar with NDOT. Communication channels. NDOT has conducted regular outreach through trade associations and others. It should seek to strengthen existing relationships and seek new relationships with trade associations and professional organizations. Regular communication with these groups should consist of updates about the Department s implementation of the Federal DBE Program, adjustments to contracting requirements and notice of bidding opportunities. Greater interaction with trade associations was urged during the study team s interviews throughout the state. As a service to these groups and to facilitate a two-way flow of information between current and prospective bidders and contractors, NDOT could advertise and encourage businesses to attend events hosted by trade organizations. The Department also could maintain and publish a listing of such trade organizations and their individual missions to assist bidders and contractors in identifying additional sources of technical support and information. Feedback channels. Feedback from contractors is critical for NDOT to be successful in its outreach efforts. BBC recommends a web-based interface for comments (including anonymous comments) that would be forwarded by . Such interface should be accessible through a clearlylabeled link on the Department s homepage. Additionally, NDOT could improve visibility of procedures for submitting feedback regarding bid processes and contract administration through other channels such as toll-free comment/question lines and frequent public meetings in the districts. Outreach. NDOT should expand outreach efforts through a formal, consistently-applied program for increasing small business participation in the construction and engineering contracting process. Elements of this comprehensive plan might include: Events at which prime contractors could meet new and existing small subcontractors with interests in performing elements of future NDOT projects; Networking events for small businesses to meet each other and to exchange information about business practices, training opportunities and other insights; Industry-specific trade shows, procurement fairs, and training conferences at which interested firms could meet NDOT procurement staff and learn about general procurement policies and procedures; and Contract-specific pre-bid conferences at which firms can ask questions about bid applications and registration/certification processes as well as identify potential partners. BBC RESEARCH & CONSULTING SECTION IX, PAGE 3

79 Small business liaison or advocate. One recommendation emerging from interviews throughout the state was for NDOT to create a small business liaison or advocate position. This individual would be a visible advocate who would explain NODT processes and encourage small business participation in NDOT work. This individual could also be a liaison to trade associations in Nevada. NDOT could create and promote a small business hot line to increase Department accessibility to small contractors and engineering firms. Technical Assistance NDOT should continue to provide supportive services for small businesses and for disadvantaged business enterprises. Feedback from firms that had participated in past training was positive. These services should also be tiered to the specific stage of business development of individual firms (e.g., develop more sophisticated assistance for firms that may be looking to expand into prime contracting or diversify into new fields). General assistance. NDOT should continue to operate a supportive services program to develop and improve immediate and long-term business management, record keeping, and financial and accounting capability for small businesses. NDOT partners with Nevada small business development centers, Business Innovation Plus, and other groups in this effort. Advanced assistance. NDOT should continue efforts such as its Entrepreneurial Development Program that directs more attention to the bidding and contracting process from the beginning through close-out. This Program is a series of classes over a two-year period. Such assistance benefits firm owners and managers who have moved beyond introductory workshops. New technology training. NDOT could conduct training workshops to assist small businesses and trade associations with utilizing emerging technology and conducting business through electronic media. Realistically, doing business with NDOT requires Internet access and computer systems. Several of the individuals interviewed in this study did not use the Internet to search for bidding opportunities or were uninformed about NDOT s web-based information. Workshops on selecting, managing and adapting information technology infrastructures are important as NDOT and other public sector solicitors move towards electronic modes of communication and commerce. NDOT contracting. Several interviewees recommended that NDOT continue and further develop educational workshops on doing business with NDOT. These workshops could address the general procedures and requirements to complete and submit bids for NDOT contracts, sources for information about solicitations, best practices to identify subcontracting opportunities with larger firms, and assistance with the certification process. Such workshops should be tiered to the level of experience and sophistication of business owners and managers. Mentor-protégé program. NDOT should encourage trade associations to develop mentorprotégé programs to assist new small businesses in the transportation contracting industry. BBC RESEARCH & CONSULTING SECTION IX, PAGE 4

80 Financing, Bonding and Insurance Assistance As illustrated by the quantitative and qualitative evidence in Appendices F and I, access to capital is critical to starting and growing a business within Nevada s transportation construction and engineering industry. Capital requirements for bidding and completing work in this industry favor larger firms. Conversely, quantitative information suggests that firms owned and controlled by members of economically disadvantaged groups experience continued barriers to sources of capital necessary to finance their business and to compete for projects in both the private and public sectors. Given these findings, the study team recommends that NDOT take more steps to link small businesses to existing programs. Financial assistance. NDOT should refer small businesses, including DBEs, to available financial assistance in Nevada. Insurance assistance. NDOT should further investigate providing OCIP (Owner Controlled Insurance Policies) for its construction projects. Bonding assistance. By state law, NDOT requires performance and payment and materials bonds on transportation construction contracts (NRS ). State statute also requires bid bonds. Unless the work is an emergency contract, NDOT sets bonding on all projects of $35,000 or more. As discussed in Section VI, a number of contractors and trade association representatives reported that bonding requirements were a barrier to small companies that might bid on NDOT construction projects. NDOT could implement a bonding assistance initiative to provide emerging contractors and other small businesses with improved means to satisfy requirements for larger projects. Contracting Practice Improvements Many of the business owners and trade association leaders interviewed for this study reported barriers to their participation in NDOT contracts that stemmed from the size of contracts, the requirements to bid and complete contracts, and the daily administration of contracts and payment. Many business owners recognize that these barriers are difficult to change. However, certain improvements in the area of contracting procedures could greatly reduce the barriers that small businesses encounter in working with NDOT. Segmenting and unbundling contracts. To comply with the Federal DBE Program, NDOT must arrange solicitations, times for the presentation of bids, project size, specifications, and delivery schedules in ways that facilitate participation by small businesses. Many firm owners and trade association representatives interviewed as part of this study recommended that NDOT attempt to break large contracts into smaller segments. NDOT could also encourage prime contractors to subcontract portions of work that they might otherwise perform with their own forces. NDOT could consider a minimum subcontracting percentage on certain contracts to encourage subcontracting of work. There are also more opportunities for small contractors on Right of Way construction contracts. NDOT could encourage small business participation in this area. BBC RESEARCH & CONSULTING SECTION IX, PAGE 5

81 Relaxing requirements. To the extent permitted by law and, where possible, with appropriate amendment to law, NDOT should engage in certain efforts to simplify the bidding process, relax or reduce bonding and insurance requirements, and minimize or eliminate the impact of surety costs from bids. However, some of these requirements are written into state law and would require new legislation. A $35,000 threshold for bonding is low based on study team experience with public sector construction contracts. NDOT could investigate raising the bonding limit to at least $100,000. If the bonding threshold were indexed for inflation, NDOT could be more responsive to market conditions in the future. Prompt payment. NDOT should improve its enforcement of prompt pay rules as they relate to internal timelines for distributing payment for services and to the schedules governing prime contractors distribution of payment to subcontractors. NDOT could investigate requiring contractors to provide business accounts for direct payment transfers. NDOT should also communicate with subcontractors regarding payments to prime contractors and provide procedures for subcontractors to issue grievances regarding undue delay in payment. Joint venture contracting. NDOT should consider a program of incentives to encourage joint ventures between more and less experienced businesses on its construction and engineering contracts. This program would include oversight and adequate reporting procedures to measure firms satisfaction with participation and outcomes for the less experienced firm. Posting of awards. Some interviewees complained of time lag or difficulty in finding out about apparent low bidders on NDOT construction contracts. NDOT could investigate improvements to this process, possibly including direct notification of primes and subs involved in the bidding. Staff training. NDOT should develop and implement Department-wide training programs for all procurement and contract administrative staff. In addition to educating staff regarding the Department s initiatives to increase utilization of small businesses, such training would address internal business climate issues that may affect the success of minority- and women-owned businesses seeking bid opportunities for construction and engineering projects. Contracting staff should receive additional guidance about new outreach and communication strategies and about technical and capital assistance for small businesses. They should be equipped with directories to assist small businesses in identifying bid opportunities, frequent contractors, professional associations, training workshops and other events of interest. Prequalification. NDOT pre-qualifies firms seeking to bid as prime contractors on public works contracts with the Department. Prequalification determines the maximum size of NDOT public works contract that a firm may bid on. NDOT should seek to eliminate prequalification or substantially modify it to minimize disadvantages to small businesses. The current prequalification somewhat duplicates the monetary limits for firm licenses currently implemented by the State Contractors Board. Alternatively, NDOT could only require prequalification for its largest contracts (e.g., contracts over certain dollar thresholds, as done by other departments of transportation). BBC RESEARCH & CONSULTING SECTION IX, PAGE 6

82 Small Business Preferences NDOT currently implements a local preference program for construction contracts. Although changes would require new legislation, there is an opportunity to expand the existing program to assist small businesses competing for transportation work. Small business preference for public works contracts. State law provides for a local business preference for non-federally-funded construction contracts of more than $250,000 (NRS ). Firms that have paid at least $5,000 in certain state taxes per year for five consecutive years can apply for a local preference for public works contracts. Firms eligible for the local preference receive a 5 percent preference in determining low bidder. Taxes reviewed are state sales and use taxes on construction materials for construction in the state and the state government services taxes on vehicles used in the business. Contractors submit applications and CPA statements concerning taxes paid to the State Contractors Board. The Board can then issue a certificate of eligibility for the local preference, which must be renewed annually. The current local preference disadvantages businesses that have not been in operation for five years and those contractors that are too small to have paid $5,000 per year in these state taxes. NDOT could seek a change in state law to revise the local preference to include newer or smaller firms, or a change that would encourage utilization of local small businesses for certain sizes of construction contracts. As part of its implementation of 49 CFR Part 26, NDOT could request FHWA approval for such a program for federally-funded contracts as well if it designed a separate small business preference that treated small businesses in other states on an equal basis. Small business preference programs were recommended by a number of people interviewed as part of this study. Small business preference for engineering contracts. NDOT could also award evaluation points for small businesses competing for engineering contracts as prime consultants. Data Collection, Tracking and Reporting NDOT will need to expand its data collection and tracking systems in the following ways: Track utilization of self-reported MBE/WBEs (by race/ethnicity/gender) as well as certified DBEs (no size limit or net worth requirements to be recorded as an MBE/WBE); Expand tracking to include engineering-related contracts; Expand tracking to include smaller contracts and district contracts; Expand tracking to include contracts let by local agencies with state and federal funds administered by NDOT; and Track payments to all firms (MBE/WBE and majority-owned), not just DBEs. This data collection should also focus on examining the effectiveness of neutral remedies. Resource Requirements Implementation of these recommendations will require additional resources, especially for business outreach and communications; technical assistance; and data collection, tracking and reporting. BBC RESEARCH & CONSULTING SECTION IX, PAGE 7

83 SECTION X. Summary As part of its implementation of the Federal DBE Program, NDOT must set an overall goal for DBE participation, determine the portion of the overall goal it will attempt to meet through neutral versus race- and gender-conscious means, and consider specific measures its will use to execute the Program. Overall Annual DBE Goal The Federal DBE Program calls for a base figure analysis and consideration of any step 2 adjustments in deriving an overall annual goal for DBE participation in federally-funded contracts. Base figure analysis. After considering type, contract role, location and size of work involved in federally-funded projects and the relative availability of firms to perform that work, BBC determined that 14.6 percent of dollars on federally-funded contracts would go to minority- and women-owned firms (MBE/WBEs) if available MBE/WBEs received the same amount of work as similarly-situated majority-owned firms available for such work. Many minority- and women-owned firms are not currently DBE certified, and some of the largest MBE/WBEs might not meet the federal eligibility requirements for DBE certification. After removing the largest minority- and women-owned firms from the analysis of potentially DBEcertified firms, the revised based figure analysis indicates 5.7 percent DBE utilization. Step 2 adjustments. NDOT could consider adjustments in the base figure through a step 2 process. BBC reviewed relevant types of information for a step 2 adjustment that are outlined in the Federal DBE Program. Based on the information compiled in the NDOT disparity study, there are reasons to consider downward adjustments to the base figure and reasons to consider upward adjustments to the base figure. It will be difficult for NDOT to encourage the many non-dbe-certified firms to apply for certification. However, other information indicates barriers to entry into the Nevada construction and engineering industries, low rates of business ownership for certain groups working in the industries, lower business earnings and other barriers for minority- and women-owned firms including access to capital. BBC s review of the information suggests that factors indicating downward adjustments in the base figure would be offset by factors indicating upward adjustments in the base figure. NDOT should include all of the above information in its consideration of a base figure and whether or not to make any step 2 adjustment when determining an overall annual goal for DBE participation. Percentage of the Annual Goal to be Achieved through Neutral Means The Federal DBE Program requires NDOT to assess the percentage of its overall annual DBE goal that can be achieved through neutral means, and if necessary, the percentage to be achieved through race- and gender-conscious measures. BBC RESEARCH & CONSULTING SECTION X, PAGE 1

84 Evidence of disparities when NDOT implements an all-neutral program. BBC compared utilization and availability of minority- and women-owned firms for both state-funded contracts and for federally-funded contracts. State-funded contracts. Because NDOT has operated a solely neutral program for state-funded transportation contracts, analysis of these contracts suggests how closely utilization matches availability in an all-neutral environment. BBC found that MBE/WBE utilization on state-funded contracts reached only 59 percent of what would be expected based on MBE/WBE availability for these contracts from October 1999 through Past effectiveness of the DBE contract goals program. Even with the DBE contract goals program, there were disparities between overall utilization and availability of minority- and women-owned firms in federally-funded contracts. MBE/WBE utilization was about one-half of what would be expected based on relative availability for those contracts. Federally-funded contracts after October 1, BBC also examined MBE/WBE utilization and availability for federally-funded contracts for October 2005 through December 2006, after NDOT discontinued DBE contract goals. Based on the limited number of federally-funded prime contracts and subcontracts during this time period, MBE/WBE utilization was about 82 percent of what would be expected based on availability for the particular contracts and subcontracts in this time period. It may be too early to tell whether or not MBE/WBE utilization on federally-funded contracts will continue at this level or whether utilization will decline to what has been found for state-funded contracts. NDOT should closely monitor utilization of minority- and women-owned firms as well as certified DBEs on both federally-funded and state-funded contracts after 2006, the end of the time period for the utilization analysis in the BBC Disparity Study. Other disparity analysis. Beyond these analyses of overall utilization and availability of minorityand women-owned firms, BBC examined quantitative information concerning the Nevada marketplace and the relative use of minority- and women-owned firms for specific types and locations of NDOT contracts. BBC conducted disparity analysis by specific race/ethnicity/gender ownership of firms. This analysis found evidence of disparities for each race/ethnic/gender group of MBE/WBEs included in the Federal DBE Program for certain elements of transportation construction or engineering contracts. There is also some evidence of disparities in each of the NDOT districts. Disparities between utilization and availability were often most severe for minority-owned firms. For example, Hispanic American-owned firms received only 26 cents of every dollar expected on statefunded construction and engineering contracts. (Based on the Ninth Circuit decision in Western States Paving v. WSDOT, if NDOT chooses to implement any race- or gender-conscious remedies, it must review the evidence for each minority group and for women to determine the specific groups eligible for certain remedies.) Qualitative information. The study team collected and reviewed qualitative information from indepth personal interviews conducted with minority-, women- and majority-owned firms across the state, from interviews with trade association representatives, and from open-ended questions included in a large survey of local firms. There were some instances in which minority and female business owners reported that they were treated differently because of their race or gender. Many minority and female business owners identified disadvantages pertaining to the size and age of their firms. BBC RESEARCH & CONSULTING SECTION X, PAGE 2

85 Opportunities to prove quality of work. Some minority and female business owners who seek subcontracts frequently reported that it is difficult to obtain opportunities with prime contractors who are not familiar with their work. Once they have a track record with a prime contractor, the prime often continues to consider them for work. Abuse of good faith efforts process. A number of people who provided input through interviews said that some prime contractors abused the past good faith efforts process related to NDOT s DBE subcontracting goals program. These firms observe that some primes only look to fulfill their quota of contacts and are not genuinely interested in using DBEs. Some DBEs also suspect that the primes shop their bid quotes out to their preferred subcontractor so that this firm can beat the DBE competitor s numbers thus justify awarding the work to the preferred subcontractors. Barriers in obtaining prime contracts. Based on interviews, contract sizes, prequalification requirements and bonding requirements for NDOT construction work often preclude small firms that bid as primes in the private sector from pursuing NDOT prime contracts. It was also widely reported that NDOT favors large engineering firms with substantial NDOT experience for its engineering work. Many firms complained that they could not win such work as prime consultants if they were not allowed to establish such a track record. NDOT implementation of neutral programs. The Federal DBE Program requires NDOT to meet the maximum feasible portion of its overall goal by using race-neutral means of facilitating DBE participation. Results of BBC s review include the following: 1. NDOT has implemented some of the types of neutral remedies suggested in the Federal DBE Program but not others. 2. Many of the barriers reported by minority- and women-owned firms suggest further neutral measures such as: Better outreach and communication; Additional technical assistance to small businesses and DBEs; Redesigning contractor and consultant selection practices; Bonding programs and other assistance to small businesses and DBEs; and Possible redesign of the state s local preference programs to assist local small businesses. 3. NDOT s past implementation of the Federal DBE Program did not bring utilization of minority- and women-owned firms on federally-funded contracts to the level expected based on relative availability of MBE/WBEs for this work. In fact, utilization of minority- and womenowned firms was higher after suspension of the program. 4. Additional actions to improve data collection, tracking and reporting are necessary to be able to fully measure success of neutral measures in opening opportunities for minority- and womenowned firms. NDOT should consider this information in determining whether any portion of the overall annual goal for the next fiscal year should be achieved through race- or gender-conscious means. BBC RESEARCH & CONSULTING SECTION X, PAGE 3

86 Measures to Implement the Program In the October 1999 through September 2005 study period, NDOT s DBE contract goals program did not fully address disparities between utilization and availability of minority- and women-owned firms on federally-funded contracts. Strong new measures are needed, especially programs to assist development of the minority- and women-owned business community and to open both prime contract and subcontract opportunities to smaller businesses. BBC recommends multiple tiers of assistance depending upon the age, size, line of work and other business factors to make assistance most useful for firms in different stages of development. NDOT should do more to increase utilization of emerging and more developed MBEs and WBEs, including those that are too large to be DBE-certified or otherwise have not sought DBE certification. NDOT needs additional metrics to track success beyond those suggested in the Federal DBE Program, including careful tracking of MBE/WBEs (not just DBE participation) in both federallyfunded and state-funded contracts. For example, one measure of NDOT s success should be the number of minority- and women-owned firms that grow too large to be eligible for DBE certification. These steps are critical for NDOT to be in compliance with the Federal DBE Program and ensure that it is not an active or passive participant in race or gender discrimination against minority- and women-owned firms. Some of these additional efforts may already be in development at NDOT. Other actions may require state legislation as well as coordination with industry partners. The Department will need additional resources to implement these initiatives. NDOT must also continue to work as a partner with USDOT in these efforts. BBC RESEARCH & CONSULTING SECTION X, PAGE 4

87 APPENDIX A. Definitions of Terms This appendix provides explanations and definitions useful to understanding the Availability and Disparity Study. These definitions are only relevant in the context of the NDOT Availability and Disparity Study Final Report. Anecdotal evidence. Includes personal accounts of incidents, including of discrimination, told from an individual s perspective. Availability analysis. Examination of the relative number of DBEs or MBE/WBEs ready, willing and able to perform work related to transportation construction and engineering work for NDOT or local agencies. Business. A for-profit company, including all of its establishments (equivalent to firm ). Business listing. A record in the Dun & Bradstreet database of businesses (or other database). A D&B record is just a listing until the study team determines it to actually be a business establishment with a working phone number. Business establishment. A place of business with an address and working phone number. One firm can have many business establishments. (Same as establishment. ) Contract. A legally binding relationship between the seller of goods or services and a buyer. Contractor. The study team uses contractor to refer to firms performing construction contracts. Controlled. Exercising management and executive authority for a company, per 49 CFR Section Disadvantaged Business Enterprise (DBE). A small business owned and controlled by one or more individuals who are both socially and economically disadvantaged according to the guidelines in the Federal DBE Program (49 CFR Part 26). Membership in certain race and ethnic groups identified under minority-owned business enterprise in this appendix may meet the presumption of socially and economically disadvantaged. Women are also presumed to be socially and economically disadvantaged. Examination of economic disadvantage also includes investigating the gross revenues and the firm owner s personal net worth (maximum of $750,000 exclusive of equity in a home and in the business). Some minority- and women-owned firms do not qualify as DBEs because of the gross revenue or the net worth requirements. A firm owned by a non-minority male can be certified as a DBE. Tribally-owned concerns can be certified as a DBE if the enterprise meets the requirements in 49 CFR Part 26. DBE directory. The Nevada Unified Certification Program s electronic directory of firms certified as DBEs in Nevada. Also known as the DBE Vendor List. BBC RESEARCH & CONSULTING APPENDIX A, PAGE 1

88 Disparity. A difference or gap between an actual outcome and a reference point. For example, a difference between an outcome for one race/ethnic group and an outcome for non-hispanic whites may constitute a disparity. Disparity analysis. Comparisons of actual outcomes with what might be expected based on other data. Analysis of whether there is a disparity between DBE utilization and availability is one tool in examining whether there is evidence consistent with discrimination against DBEs. Disparity index. Computed by dividing percentage utilization by percentage availability and then multiplying the result by 100. A disparity index of 100 indicates parity. Dun & Bradstreet. The leading firm in the United States and abroad that provides lists of business establishments and other business information (see Employer firms. Firms with paid employees other than the business owner and family members. Enterprise. An economic unit that could be a for-profit firm or establishment, not-for-profit organization or public sector organization. Establishment. See business establishment. Federal DBE Program. Unless otherwise specified, Federal DBE Program refers to the Disadvantaged Business Enterprise program established by the U.S. Department of Transportation after enactment of the Transportation Equity Act for the 21 st Century (TEA-21) as amended in The elements of the Program are set forth in 49 CFR Part 26. Federal Highway Administration (FHWA). An agency of the USDOT that works with state and local governments to construct, preserve and improve the National Highway System, other roads eligible for federal aid, and certain roads on federal and tribal lands. Firm. See business. Federally-funded contract. Any contract or project funded in whole or in part with FHWA financial assistance, including loans. As used in this study, it is synonymous with federally-assisted contract. Industry. A broad grouping of firms providing related goods or services. Local agency. Any local government that solicits bids, qualifications, or proposals for transportation construction or engineering projects. Majority-owned businesses. For-profit firms not owned and controlled by minorities or women (see definition of minorities below). Microbusiness. A firm that, together with affiliates, has average annual gross receipts of $2,750,000 or less over the previous three years. For more on this State of Nevada definition, see BBC RESEARCH & CONSULTING APPENDIX A, PAGE 2

89 Minorities. Racial and ethnic groups identified in the federal guidelines in 49 CFR Part 26: Black Americans (or African Americans in this study), which includes persons having origins in any of the black racial groups of Africa; Hispanic Americans, which includes persons of Mexican, Puerto Rican, Cuban, Dominican, Central or South American, or other Spanish or Portuguese culture or origin, regardless of race; Native Americans, which includes persons who are American Indians, Eskimos, Aleuts or Native Hawaiians; Asian-Pacific Americans, which includes persons whose origins are from Japan, China, Taiwan, Korea, Burma (Myanmar), Vietnam, Laos, Cambodia (Kampuchea), Thailand, Malaysia, Indonesia, the Philippines, Brunei, Samoa, Guam, Hong Kong, and other countries and territories in the Pacific set forth in 49 CFR Section 26.5; and Subcontinent Asian Americans, which includes persons whose origins are from India, Pakistan, Bangladesh, Bhutan, the Maldives Islands, Nepal or Sri Lanka. Minority-owned business (MBE). A firm with at least 51 percent ownership and control by minorities. Minority groups are defined according to federal guidelines, as outlined above. For purposes of this study, a firm need not be certified to be counted as a minority-owned firm. Firms owned by minority women are counted as MBEs in this study (where that information is available). NAICS code. North American Industry Classification System code that identifies primary line of business of a an enterprise. Nevada Department of Transportation (NDOT). The Nevada Department of Transportation (NDOT) is the owner/operator of Nevada s federal and state highway system. Non-DBEs. Firms not certified as DBEs. Non-response bias. Occurs when the observed value to a survey question differs from what would be obtained if all individuals in a population, including non-respondents, answered the question. Owned. Ownership of at least 51 percent of a company. A minority-owned firm is at least 51 percent owned by one or more minorities. (For DBE certification, additional guidelines are set forth in 49 CFR Section ) Prime consultant. The professional services firm performing a contract for an end user such as NDOT. Prime contract. The contract between the seller and an end user such as NDOT. Prime contractor. The firm performing a contract for an end user such as NDOT. BBC RESEARCH & CONSULTING APPENDIX A, PAGE 3

90 Race-and gender-conscious. Remedies that apply to individuals or firms that includes some races and ethnicities and not others, and women and not men. This term is equivalent to race- and gender-based. A DBE contract goal is one example of a race- and gender-conscious remedy. Note that this term is more accurately race-, ethnicity- and gender- conscious. For ease of communication, the study team has shortened this to race- and gender-conscious remedies. Race- and gender-neutral. Remedies that apply to individuals or firms that are not classified based on race, ethnicity or gender. Note that this term is more accurately race-, ethnicity- and gender- neutral. For ease of communication, the study team has shortened this to race- and gender-neutral. Race- and gender-neutral remedies may include assistance in overcoming bonding and financing obstacles, simplifying bidding procedures, providing technical assistance, establishing programs to assist start-up firms, and other methods open to all firms or any disadvantaged firm regardless of race or gender. (A broader list of examples can be found in 49 CFR Section 26.51(b).) Relevant geographic market area. The geographic area that contains most establishments receiving NDOT or local agency transportation construction and engineering-related work, based on dollars. It is also referred to as the local marketplace. Remedy. A program element designed to address barriers to full participation for a particular group. SIC code. Standard Industrial Classification code, which describes the primary business of a firm (see SIC Manual at The federal government groups firms into industries down to 4-digit SIC codes. Dun and Bradstreet further classifies types of work to the 8-digit level. Small business. In general, a firm with low revenues or employment size relative to other firms in the industry. Small business does not necessarily mean that the firm is certified as such. Small Business Administration (SBA). The U.S. Small Business Administration, which is an independent agency of the United States government. State-funded contract. Any contract or project funded in whole or in part with State of Nevada funds administered through NDOT that does not include federal funds. Statistically significant difference. A difference in which chance in the sampling process can be eliminated as a cause, at the 95 percent confidence level (meaning that chance in the sampling process could still explain the difference in no more than 5 out of 100 cases). Subconsultant. A professional services firm performing a service for the prime consultant as part of a larger contract. Subcontract. The contract between a prime contractor and another firm selling services to the prime contractor. Subcontractor. A firm performing a service for a prime contractor as part of a larger construction or engineering project. BBC RESEARCH & CONSULTING APPENDIX A, PAGE 4

91 Supplier. A firm selling supplies to a firm as part of a larger project. Transportation construction and engineering. Work involving construction, design or related services concerning transportation facilities or projects. USDOT. U.S. Department of Transportation, which includes the Federal Highway Administration, the Federal Transit Administration and the Federal Aviation Administration. Work field. A narrow grouping of firms providing related goods or services, sometimes referred to as work specialty. Sometimes a work field is one 4- or 8-digit SIC code. In other cases, it combines 4- digit SIC codes. Utilization. Percentage of total dollars of a type of work going to DBEs or MBE/WBEs (or another group). Women-owned business (WBE). A firm with at least 51 percent ownership and control by women. For this study, a firm need not be certified as a WBE or DBE to be counted as a womanowned firm. In addition, firms owned and controlled by minority women are counted as minorityowned firms. Therefore, WBEs principally refer to firms owned by white women. BBC RESEARCH & CONSULTING APPENDIX A, PAGE 5

92 APPENDIX B. Legal Environment for NDOT DBE Program This appendix summarizes a much more in-depth analysis of the legal environment provided to NDOT under separate cover. The Nevada Department of Transportation ( NDOT ) is a recipient of federal funds from the United States Department of Transportation ( USDOT ). Therefore, NDOT must comply with federal regulations (49 CFR Part 26) and implement the Federal Disadvantaged Business Enterprise (DBE) Program. NDOT is required to develop and submit for approval to the USDOT its DBE program, including an overall goal for DBE participation on federally-funded contracts. 1 The annual DBE goal, depending on the evidence available to NDOT, may be achieved through the use of raceand gender-neutral means, race- and gender-conscious means, or a combination of these measures. 2 NDOT is responsible for serious, good faith consideration of workable race- and gender-neutral means, including those identified in 49 CFR Section 26.51(b), that can be implemented. 3 The USDOT has advised that recipients should take affirmative steps to use as many of the race-neutral means of achieving DBE participation identified at 49 CFR Section 26.51(b) as possible. 4 The Ninth Circuit Court of Appeals in Western States Paving Co. v. Washington State DOT found that the regulations require a state to meet the maximum feasible portion of [its] overall goal by using race neutral means. 5 In formulating its implementation of the Federal DBE Program, NDOT must assess how much of the annual DBE goal can be met through neutral means and what percentage, if any, should be met through race- and gender-conscious means. Race- or gender-conscious measures are not appropriate unless they are to remedy identified discrimination or its effects in the state transportation contracting industry. If NDOT implements race- and gender-conscious measures, it is subject to the strict scrutiny analysis as applied by the courts. 6 The first prong of the strict scrutiny analysis requires a governmental entity to have a compelling governmental interest in remedying past identified discrimination. The Ninth Circuit and other federal courts have held that, with respect to the Federal DBE Program, state departments 1 49 CF. Section CFR Sections 26.45, F.3d 983, 993 (9th Cir. 2005) (citing 49 CFR Section 26.51(a)). 4 Questions and Answers Concerning Response to Western States Paving Company v. Washington State Department of Transportation [hereinafter DOT Guidance], available at See 49 CFR Section 26.9 (January 2006) F.3d at 993; 49 CFR Section See City of Richmond v. J.A. Croson, 488 U.S. 469 (1989); Adarand Constructors, Inc. v. Pena, 515 U.S. 200 (1995); Western States Paving, 407 F.3d 983. The Ninth Circuit Court of Appeals and other courts have applied intermediate scrutiny to gender-conscious programs. The Ninth Circuit has interpreted this standard to require that gender-based classifications be: (1) Supported by both an exceedingly persuasive justification; and (2) Substantially related to the achievement of that underlying objective. See Western States Paving, 407 F.3d at 990 n6; Coral Constr. Co. v. King County, 941 F.2d 910, 931 (9th Cir. 1991); Equal. Found. v. City of Cincinnati, 128 F.3d 289 (6th Cir. 1997). BBC RESEARCH & CONSULTING APPENDIX B, PAGE 1

93 of transportation ( DOTs ) do not need to independently satisfy this prong because Congress has satisfied the compelling interest test of the strict scrutiny analysis. 7 The second prong of the strict scrutiny analysis requires that a state DOT s implementation of the Federal DBE Program be narrowly tailored to remedy identified discrimination in a particular state s transportation contracting and procurement market. 8 The narrow tailoring requirement has several components. According to the Ninth Circuit in Western States Paving, a state must have evidence of discrimination within the state s own transportation contracting marketplace in order to determine whether or not there is the need for race- or genderconscious remedial action. 9 Thus, mere compliance with the Federal DBE Program does not necessarily satisfy strict scrutiny. 10 Second, the court found that even where evidence of discrimination is present in a state, a narrowly tailored program should apply only to those minority groups who have actually suffered discrimination. For a specific minority group to be included in any race-conscious elements in a state s implementation of the Federal DBE Program, there must be evidence that the group suffered discrimination or its effects within the local marketplace. 11 Federal courts have held that additional factors may also be pertinent in determining whether a state DOT s implementation of the Federal DBE Program is narrowly tailored: flexibility and duration of a race-conscious remedy, relationship of the numerical DBE goals to the relevant market, effectiveness of alternative race- and gender-neutral remedies, and impact of a race-conscious remedy on third parties. 12 In Western States Paving, the United States intervened to defend the Federal DBE Program s facial constitutionality, and, according to the court, stated that [the Federal DBE Program s] race conscious measures can be constitutionally applied only in those states where the effects of discrimination are present. 13 Accordingly, the USDOT has advised federal aid recipients that any use of race-conscious measures must be predicated on evidence that the recipient has concerning discrimination or its effects within the local transportation contracting marketplace Northern Contracting, Inc. v. Illinois DOT, 473 F.3d 715, 721 (7th Cir. 2007), reh g and reh g en banc denied (7th Cir. 2007); Western States Paving, 407 F.3d at 991; Sherbrooke Turf, Inc. v. Minnesota DOT and Gross Seed Co. v. Nebraska Dep t of Road, 345 F.3d 964, 969 (8th Cir. 2003); Adarand Constructors, Inc. v. Slater (Adarand VII), 228 F.3d 1147, 1176 (10th Cir. 2000). 8 Western States Paving, 407 F3d at ; Sherbrooke Turf, 345 F.3d at Western States Paving, 407 F.3d at , Id. at In the recent Northern Contracting decision (January 8, 2007), the Seventh Circuit held that a state is insulated from [a narrow tailoring] constitutional attack, absent a showing that the state exceeded its federal authority. IDOT here is acting as an instrument of federal policy and Northern Contracting (NCI) cannot collaterally attack the federal regulations through a challenge to IDOT s program. 473 F.3d at 722. The Seventh Circuit distinguished both the Ninth Circuit decision in Western States Paving and the Eighth Circuit decision in Sherbrooke Turf, relating to an as-applied narrow tailoring analysis. The court held that IDOT s application of a federally mandated program is limited to the question of whether the state exceeded its grant of federal authority under the Federal DBE Program. Id. at 722. The court affirmed the district court upholding the validity of IDOT s DBE program. 11 Western States Paving, 407 F.3d at See, e.g., id. at 995; Sherbrooke Turf, 345 F.3d at 971; Adarand VII, 228 F.3d at Western States Paving, 407 F.3d at 996; see also Br. for the United States, at 28 (April 19, 2004). 14 DOT Guidance, available at (January 2006). BBC RESEARCH & CONSULTING APPENDIX B, PAGE 2

94 Following Western States Paving, the USDOT has recommended the use of disparity studies by state DOTs to examine whether or not there is evidence of discrimination or its effects, and how remedies might be narrowly tailored in developing their DBE Program to comply with the Federal DBE Program. 15 The USDOT suggests consideration of both statistical and anecdotal evidence, which should be examined separately for each group presumed to be disadvantaged in 49 CFR Part Therefore, NDOT is engaging in a disparity study to comply with the federal regulations and the Federal DBE Program, based on the most recent authority regarding the Federal DBE Program Id.; see also 42 CFR Section DOT Guidance, available at (January 2006). 17 See Northern Contracting, 473 F.3d 715; Western States Paving, 407 F.3d 983; Sherbrooke Turf, 345 F.3d 964; Adarand VII, 228 F.3d BBC RESEARCH & CONSULTING APPENDIX B, PAGE 3

95 APPENDIX C. Availability Survey This appendix describes study team steps to determining MBE/WBE availability for transportation construction and engineering work in Nevada. It expands on the analysis presented in Section II. Overall Approach The study team completed two phases of calling to firms for its availability survey. The first phases of calls were conducted by BBC staff to firms listed in a variety of database sources as previous prime contractors, subcontractors or bidders on NDOT contracts. This phase of the survey included firms with and without locations in Nevada. For the second phase of the availability survey, BBC contracted with Customer Research International (CRI) to contact other Nevada businesses potentially related to the transportation construction and engineering industry. The business establishments that CRI contacted were those listed under primary fields closely related to transportation construction and engineering in the D&B business directory. Only business establishments located in Nevada were included in the second phase of the survey. The study team attempted to contact every listing rather than draw a sample of listings from D&B. Combined, BBC and CRI attempted to reach nearly 5,501 business listings. The study team completed surveys with 2,183 business establishments. After screening for qualifications and interest in future transportation construction and design work, and other factors, BBC was able to analyze MBE/WBE availability based on a database of 1,170 firms. Sample Frame BBC identified firms for the first phase of the availability survey from NDOT contract and program data (the number of firms contacted from each source are listed in parentheses): Prequalified Contractor list (411); Prequalified Professional Services list (166); DBE Tracks database (570); Request to Sublet Excel spreadsheets (28); and Contract Cards (236). BBC matched firms to Dun & Bradstreet (D&B) business profile information using telephone numbers and addresses found within each data source. BBC also attempted to contact firms that D&B could not match if the firm had complete contact information. If a firm had partial or incomplete contact information, BBC searched for phone numbers and addresses using company websites or online telephone directories. BBC surveyed as many firms as possible, given phone number and other contact information availability. In total, BBC contacted 1,411 firms in-house. BBC RESEARCH & CONSULTING APPENDIX C, PAGE 1

96 For the second phase of the availability survey, BBC developed a sample frame of business establishments based on a D&B database of establishments doing business in Nevada. The study team determined business specializations that accounted for most transportation construction and engineering work. BBC then identified the 8-digit Standard Industrial Classification (SIC) codes best corresponding to that work. D&B provided the list of firms in Nevada with primary lines of business within those SIC codes. (BBC could purchase a list of business establishments by 4- and 8-digit SIC codes but not NAICS codes.) The study team did not expect every firm in these lines of business to be available for transportation construction or engineering work. In some fields, we anticipated that relatively few firms would perform this work. In the same vein, the study team did not design the survey effort so that each firm possibly performing transportation construction or engineering work would be called as part of the survey. To do so would require including business sectors marginally related to transportation construction and design. Some firms within the core lines of work encompassed in the survey are also either missing from the D&B database or might not respond to the survey effort. Finally, only firms with Nevada locations were included in the survey. For these reasons, the survey is not a complete census of all firms possibly available for transportation contracting work in Nevada. The study team s goal was to develop unbiased estimates of the relative availability of MBE/WBEs among firms doing business in Nevada within the lines of work principally involved in transportation contracting. Identifying the relevant subindustries for NDOT transportation contracting. BBC determined the types of firms involved in NDOT transportation construction and engineering services by reviewing firms listed in NDOT databases for construction and design contracts. The study team further supplemented this effort to identify relevant SIC codes by examining the results from the first phase of the availability survey (in-house calling) and noting additional relevant fields with firms reporting qualifications and interest in transportation construction and engineering. In categorizing firms to their respective primary industry, BBC uses 8-digit SIC codes that D&B developed to provide more-precise definitions of firm specializations than the 4-digit SIC codes or the NAICS codes that have been prepared by the federal government. List of establishments to be contacted. Each business establishment with the corresponding SIC code in Nevada for which D&B had a phone number was included in the list purchased from D&B. There was no sampling of business establishments from the sample frame. Because D&B organizes its database by business establishment, not by firm, BBC purchased the business listings in that fashion. Therefore, multiple Nevada locations for a single firm were obtained in the list of establishments to be called. The study team attempted to contact each establishment by telephone. (BBC s methods for consolidating information for multiple establishments into a single record for a firm are described later in this appendix.) BBC RESEARCH & CONSULTING APPENDIX C, PAGE 2

97 Questionnaire Development Development of survey instrument. The study team drafted a telephone survey to collect business information from transportation construction and engineering firms. Before this survey was used in the field, NDOT staff reviewed the survey instrument, and it was tested in a pilot survey. The basic survey document for construction firms is provided at the end of this appendix. The survey was slightly modified for certain groups of firms based on line of work in order to use the terms commonly employed in those fields. For example, the words prime consultant and subconsultant were substituted for prime contractor and subcontractor when surveying engineering-related firms. A fax version of the survey was also developed. This version was faxed or ed to firm owners or managers initially contacted by telephone who requested that a survey be faxed or ed to them. They then returned the survey to BBC via fax or . Survey structure. The telephone and fax/ surveys included the following sections. Note that each area of questions was asked of all firms. Interviewers did not know ownership status when calling a firm. (The survey instrument is reproduced in its entirety at the end of this appendix.) Identification of purpose. The survey began by identifying the Nevada Department of Transportation as the survey sponsor and describing the purpose of the study (identifying firms doing transportation construction or engineering work in Nevada). Verification of correct firm name. The interviewer verified that he or she had reached the correct business, and if not, inquired about the correct contact information for that business. When the firm name was not correct, interviewers asked if the respondent knew how to contact the company. The BBC study team followed up with the desired company based on the new contact information (see areas X and Y of the Availability Survey). Performance of transportation construction or engineering work. Firms were asked, First, I want to confirm that your firm does work related to transportation construction, maintenance or design. Is this correct? Interviewers continued with firms responding yes to this question (Question A1). BBC instructed interviewers that doing work included trying to sell this work. Verification of for-profit business status. The interviewer also asked whether the organization was a for-profit business as opposed to a government or not-for-profit entity (Question A2). Interviewers continued with firms responding yes to this question. Confirmation of main line of business. Firms were asked to confirm industry classification from the D&B database (Question A3). Firms seeking to change or clarify this description were then asked to identify their main line of business (Question A4). (After the survey was complete, BBC coded the new information on main line of business into appropriate SIC codes.) Sole location, or multiple locations. Because the study team surveyed business establishments, business owners and managers were asked if they had other locations in Nevada (Questions A5 A6). They were also asked if the establishment was an affiliate or subsidiary of another firm (Questions A8 A9). (A discussion of how BBC consolidated this information into a single response for a firm is presented later in this appendix.) BBC RESEARCH & CONSULTING APPENDIX C, PAGE 3

98 Past bids or work with NDOT, local governments and the private sector. The survey inquired about bids for or work on past NDOT, local government and private sector transportation projects. This area of questions asked whether the firm had bid or worked as a prime contractor or as a subcontractor or supplier (Questions B1 B12). Qualifications and interest in future transportation work. Firm representatives were asked about their qualifications and interest in future transportation work. The survey questions asked whether they were qualified and interested in work for NDOT and/or local governments. Separate questions asked about qualifications and interest in this work as a prime contractor and/or as a subcontractor (Questions B13 B14). Largest contracts. Interviewers asked firms to identify the largest transportation-related contract or subcontract they had been awarded in Nevada in the past five years. They were also asked about the largest contract or subcontract that they had bid on in Nevada in the past five years (Questions D2 D4). Geographic areas. Interviewers asked a series of questions to identify the NDOT districts in which the firm could work. (Questions C1-C3). Ownership. Firms were asked whether they were at least 51 percent owned and controlled by women and/or minorities (Questions E1 E3). Certification. All firms were asked if they were certified as a DBE and whether they were certified as a small business enterprise by the State of Nevada (Questions E4 E5). Business background. Several questions collected information on age of the firm (Question D4), 2005 revenues and number of employees (Questions F1 F6). For firms with multiple establishments in Nevada, the survey also asked about revenue and employee numbers for all of these locations. Comments about the marketplace and doing business with NDOT. Near the end of the survey, interviewers asked two open-ended questions concerning general insights on the marketplace (Question G1) and fairness of NDOT prime contractor contracting practices (Question G2). Contact information. The survey concluded by collecting complete contact information for the establishment (Questions H1 H6). Survey Execution and Performance Interviewers. BBC held a training session with its in-house survey staff and with interviewers at CRI offices in San Marcos, Texas before starting these interviews. BBC instructed staff to make up to at least five attempts to reach a person at each phone number. This design is intentionally persistent to minimize non-response. BBC instructed staff to identify and interview an available company representative such as the owner, manager, chief financial officer or other key official who could answer questions about the company s line of business, past contracts, financial and employment figures, interest in work with various clients, and ownership status. The survey effort began in fall BBC collected faxed or ed survey responses through mid-may BBC RESEARCH & CONSULTING APPENDIX C, PAGE 4

99 Survey performance. The survey process began with a very large number of D&B business listings for organizations in Nevada in certain lines of work potentially related to transportation construction and engineering. At the end of the survey analysis process, firms reporting that they are available for, had bid on, or had performed transportation construction or engineering work were included in the database used for the availability analysis. After these exclusions, the survey effort produced a database of 1,170 for-profit firms in Nevada that were in the lines of business pertinent to the survey and reported they did work related to transportation construction, maintenance or design. This data set is comparable in size to data typically used in economic or other social science research. Valid business listings. Some of the business listings purchased from D&B were: Duplicate numbers (169 listings); Non-working phone numbers (661 listings); or Wrong numbers for the desired businesses (554 listings). Figure C-1, on the following page, shows how the beginning set of 5,501 listings was reduced to 4,117 because of these factors. Some non-working phone numbers and some wrong numbers for the desired businesses reflect firms going out of business or changing their names and phone numbers between the time that they listed them in the corresponding database and the time when the study team attempted to contact them. Figure C-1 also shows the final disposition of the 4,117 business establishments that BBC and CRI attempted to contact: Slightly less than one-third of these business establishments could not be reached after a minimum of five phone calls (1,301 establishments). Call-backs to these business establishments were made at different times of day and different days of the week in order to maximize response. About 3 percent of these business establishments could not provide a staff member to answer the survey after a minimum of five phone calls (116 establishments). Surveys were only conducted in English. A very small fraction of one percent of business establishments could not communicate with the interviewer due to language barriers (20 establishments). Seven percent refused to participate in the interview (280 establishments). About 5 percent asked the study team to send the survey via fax or but did not successfully obtain the fax or (after multiple attempts) or received the survey but did not return a completed survey to BBC (217 establishments). BBC RESEARCH & CONSULTING APPENDIX C, PAGE 5

100 In sum, BBC obtained completed surveys from 2,183 business establishments, or about 53 percent of the business establishments with valid phone listings. This level of response to a business survey is relatively high. The very large number of responses and the high response rate add to the statistical validity of the study. Figure C-1. Disposition of attempts to survey transportation construction and engineering businesses Note: * After multiple attempts to complete survey. Number of Firms Beginning List 5,501 Less duplicate numbers 169 Less non-working phone numbers 661 Less wrong number/business 554 Business listings contacted 4,117 Percent of Business Listings Source: BBC Research & Consulting from 2006 Availability Survey. Less no answers* 1, Less couldn't reach responsible staff member* Less language barriers* Less refused to answer Less unreturned fax/ * Firms that completed surveys 2, Firms that report being available for transportation construction and engineering work. Among the establishments successfully contacted, only a portion is deemed available for any type of NDOT transportation construction and engineering work, as explained below: Two-fifths of the firms that completed a survey indicated they did not perform transportation construction, maintenance or design work (980 establishments). The survey ended when a business owner or manager reported that the business did not do this type of work. About 1 percent of the surveyed establishments were excluded because they were an organization other than a for-profit business (33 establishments). Non-profit and public sector agencies were not to be included in the survey as the availability analysis focuses on for-profit firms. The survey ended when a respondent reported that the establishment was something other than a for-profit business. About 5 percent of surveyed establishments indicated that they were involved in transportation construction, maintenance or design work but reported main lines of work that were well outside the scope of the Availability Survey (105 establishments). For example, some firms reported that they did transportation construction-related work, but that their primary line of business was single family homebuilding or other specialty outside the scope of the study. Interviewers completed the full survey with these firms. Prior to analyzing results, BBC excluded them from the final data set. Another 383 firms were eliminated from the count of firms available for NDOT transportation projects because they said they were not interested in either prime contracting or subcontracting opportunities on such projects or because they had no past experience bidding on or working for NDOT, local agencies or in the private sector or because they did not report availability for one of the three NDOT districts. BBC RESEARCH & CONSULTING APPENDIX C, PAGE 6

101 After these exclusions, the survey effort produced a database of 682 for-profit firms that were in the lines of business pertinent to the survey and reported they did work related to transportation construction, maintenance or design (see Figure C-2). Figure C-2. Screening of completed business telephone interviews for possible inclusion in the availability analysis Source: BBC Research & Consulting from 2006 Availability Survey. Number Percent of of Firms Business Listings Firms that completed surveys 2, Less no transportation work Less not a business Less line of work outside of scope Firms available for transportation work 1, Less no interest in future work, no past bid/award, or missing geographic scope 383 Firms available for NDOT work 682 Study team identification and coding of responses from multi-location firms. Multiple responses from different establishments operating under the same firm name were combined into a single, summary case according to the following rules: If any of the establishments reported bidding or working on a contract within a particular sector, the firm summary for that variable was coded to an affirmative response for the corresponding sector; The types of work (prime contractor, subcontractor, supplier, trucker) that establishments reported were summed to a single variable, again corresponding to the appropriate sector; and If any establishment said that it was interested and able to work within one of the three geographic regions (see part C of the survey instrument), the firm summary reflected that geographic scope. The firm summary variables for contract sizes and Nevada-wide revenue are equivalent to the largest dollar amounts indicated by any of its establishments. The summary number of firm employees in Nevada is equal to the most common or the mean response of the multiple establishments. Finally, firms with multiple locations were recoded as woman- or minority-owned, DBE, or certified small businesses if the majority of duplicate establishments indicated such status. Statistical Confidence in Results BBC calculated confidence intervals for the MBE/WBE availability estimates. Because of the large sample relative to the population of firms, BBC employed a finite population correction factor in determining the standard errors and confidence intervals around these estimates from the Availability Survey. The 95 percent confidence interval for MBE/WBE availability across all industries and roles is +/- 2.4 percentage points. BBC RESEARCH & CONSULTING APPENDIX C, PAGE 7

102 Potential Limitations The study team explored several possible limitations in its approach to estimating relative availability. These include: Assessing relative MBE/WBE availability and not providing a count of all available firms; Use of D&B as part of the sample frame; Selection of specific SIC codes to define the sample frame; Non-response bias; and Reliability of answers to survey questions. Not providing a count of all firms available for NDOT work. The purpose of the survey is to estimate the percentage of firms available for transportation construction and engineering work that are minority- and women-owned and controlled (i.e., relative MBE/WBE availability). The survey provides such information. The survey does not provide a comprehensive listing of every firm available for transportation work and should not be used as such. The survey approach of measuring relative availability has been approved by federal courts (see, for example, the Seventh Circuit decision on Northern Contracting) when considering state implementation of the Federal DBE Program. 1 Use of a survey is recommended as an approach to measuring availability in the USDOT guidance on goal-setting. 2 Use of D&B data as part of the sample frame. Dun & Bradstreet provides the most comprehensive private database of business listings in the United States. Even so, this database does not include all establishments operating in Nevada: New firms. There can be a lag between formation of a new business and inclusion in the database. This means that the newest firms are underrepresented in the sample frame. Based on the firms successfully interviewed in the Availability Surveys, newly formed firms are more likely than older firms to be minority- or women-owned, which suggests that MBEs and WBEs might be underrepresented in the final database of surveyed firms. Home-based businesses. The D&B database is more likely to miss a business working out of the home than a firm with a distinct business office. Small, home-based firms are more likely than large firms to be minority- or women-owned, which again suggests that MBEs and WBEs might be underrepresented in the final survey data set. Selection of specific SIC codes to define the sample frame. Defining an industry based on specific SIC codes (or NAICS codes) is a standard step when analyzing an economic sector. Government and private sector economic data are typically organized according to these industry codes. As with any such research, there are limitations when choosing the specific SIC codes to define the sample frame for an industry survey. 1 N. Contracting, Inc. v. Illinois DOT, 473 F.3d 715 (7th Cir. 2007) 2 USDOT. Tips for Goals Setting in the Disadvantaged Business Enterprise (DBE) Program ( BBC RESEARCH & CONSULTING APPENDIX C, PAGE 8

103 Both of these potential limitations have negligible effect on the availability analysis. Post-survey comparison of the SIC codes for firms receiving NDOT prime contracts and subcontracts found that the lines of work included in the survey accounted for 86 percent of total dollars of NDOT work from 2002 through Surveying firms in additional SIC codes would be unlikely to have a material effect on the availability estimates. A further limitation to the use of SIC codes to classify businesses, or any other work type classification method, is that some SIC codes are imprecise and overlap with other business specialties. Even though BBC used D&B s own 8-digit SIC codes, D&B does not maintain a detailed 8-digit code for each firm in its database. In addition, businesses often span several types of work, even at the 4-digit SIC code level of specificity. This overlapping makes classifying businesses into a single line of business difficult and imprecise. When firm owners and managers were asked to identify primary lines of business, they often gave broad answers. For these reasons, BBC collapsed many of the SIC codes into broader work categories in the final database of firms available for transportationrelated work. This presents a more accurate assessment of MBE/WBE availability by work field than possible at a finer level of detail. However, this approach sacrifices the ability to separate relatively narrow areas of expertise such as traffic control or guardrail work (which was not possible to obtain from the D&B information). Non-response bias. Analysis of non-response bias considers whether firms not successfully surveyed are different from those successfully surveyed and included in the final data set for analysis. There are opportunities for non-response bias in any survey. The study team considered the potential for non-response bias due to: Survey sponsorship; Work specializations; and Language barriers. Survey sponsorship and introduction. Interviewers introduced the survey by identifying NDOT as the survey sponsor in order to encourage firms that performed transportation construction and engineering work to participate in the interview. Firms would be less likely to answer somewhat sensitive business questions asked by an interviewer unable to identify the sponsor of the survey. In fact, some firms asked to check with NDOT to verify its sponsorship prior to answering the survey. Analysis of survey refusal rates suggests that sponsorship had an overwhelmingly positive effect on response rates. Only 7 percent of business listings potentially contacted refused to answer the survey. Work specializations. Businesses in highly-mobile fields, such as trucking, may be more difficult to reach than firms more likely to work out of a fixed office (e.g., engineering firms). This suggests that survey response rates will differ by business specialization. If all surveyed firms were simply counted to determine relative MBE/WBE availability, this would lead to estimates that relied too heavily on fields that could be easily contacted by telephone. This potential non-response bias is minimal in this study because the availability analysis compares firms within work fields before determining an MBE/WBE availability figure. In other words, the potential for trucking firms to be less likely to complete a survey is less important because the number of MBE/WBE trucking firms completing surveys is compared with total number of trucking firms, not all firms across all fields. BBC RESEARCH & CONSULTING APPENDIX C, PAGE 9

104 Language barriers. NDOT contracting documents are in English and not other languages. The study team made the decision to only include businesses able to complete the survey in English in the availability analysis so to remove language barriers as a potential explanation for any differences in outcomes observed between MBE/WBEs and majority-owned firms. Individuals who could not communicate in English well enough to complete the survey and could not locate another individual to answer survey questions in English were not captured in the survey research. Choosing to conduct the study in English and not translate it into other languages may have a very small effect on the relative number of Hispanic American firms that completed the survey. Response reliability. Firm owners and managers were asked questions that may be difficult to answer, including firm revenues and employment. For this reason, the study team prompted them with D&B information for their establishment and asked them to confirm that information or provide more accurate estimates. Further, respondents were typically not asked to give absolute figures for difficult questions such as firm revenues. Rather, they were given ranges of dollar figures or employment levels. Summary Custom census approaches to availability that begin with D&B data have been reviewed positively by federal courts. The study team s methodology for analyzing MBE/WBE availability takes the previous custom census approach as a starting point and added several layers of additional screening when determining firms available for transportation construction and engineering work. There was no sampling from the sample frame in preparing the list of firms to be surveyed. The study team attempted to contact 5,501 business listings. A relatively high proportion of the establishments were successfully contacted, and more than 2,000 business establishments completed the survey. BBC examined several potential sources of non-response bias. It is possible that MBEs and WBEs were somewhat under-represented in the final database of available firms. However, BBC concludes that this potential under-representation of MBE/WBEs does not significantly affect the analyses. BBC RESEARCH & CONSULTING APPENDIX C, PAGE 10

105 NDOT Availability Study Survey Instrument Hello. My name is [interviewer name] from [BBC Research & Consulting or Customer Research International]. We are calling for the Nevada Department of Transportation. We are contacting businesses throughout the state to identify all firms that do work related to transportation construction or design. You may have received an from NDOT about this. Who can I speak with to get the information we need from your firm? After reaching an appropriately senior staff member, the interviewer should re-introduce the purpose of the survey and begin with questions. X1. I have a few basic questions about your company and the type of work you do. Can you confirm that this is [firm name]? 1=RIGHT COMPANY 2=NOT RIGHT COMPANY 3=REFUSE TO GIVE INFORMATION Y1. Can you give me any information about [firm name]? 1=Yes, same owner doing business under a different name 2=Yes, can give information about named company 3=Company bought/sold/changed ownership 4=No, does not have information 5=Refused to give information Y1. ENTER NEW NAME 1=VERBATIM Y2. Can you give me the phone number of [firm name]? (ENTER UPDATED PHONE OF NAMED COMPANY) 1=VERBATIM BBC RESEARCH & CONSULTING APPENDIX C, PAGE 11

106 Y3. Can you give me the complete address or city for [firm name]? INTERVIEWER - RECORD IN THE FOLLOWING FORMAT:. STREET ADDRESS. CITY. STATE. ZIP 1=VERBATIM Y4. And what is the new name of the business that used to be [firm name]? (ENTER UPDATED NAME) 1=VERBATIM Y5. Can you give me the name of the owner or manager of the new business? (ENTER UPDATED NAME) 1=VERBATIM Y6. Can I have a telephone number for them? (ENTER UPDATED PHONE) 1=VERBATIM Y7. Can you give me the complete address or city for [new firm name]? 1=VERBATIM Y8. Do you work for this new company? 1=YES - CONTINUE 2=NO - TERMINATE BBC RESEARCH & CONSULTING APPENDIX C, PAGE 12

107 A1. First, I want to confirm that your firm does work related to transportation construction, maintenance or design. Is that correct? (NOTE TO INTERVIEWER) - such as, road, bridge or highway construction, guardrail installation, paving and striping work, supplying materials used on these projects, providing trucking or hauling services (NOTE TO INTERVIEWER) - includes having done work or trying to sell this work 1=Yes 2=No - TERMINATE A2. Let me confirm that [firm name / new firm name] is a business, as opposed to a non-profit organization, a foundation or a government office. Is that correct? 1=Yes, a business 2=No, other - TERMINATE A3. Let me also confirm what kind of business this is. The information we have from Dun & Bradstreet indicates that your main line of business is [SIC Code description]. Is this correct? (NOTE TO INTERVIEWER - IF ASKED, DUN & BRADSTREET OR D&B, IS A COMPANY THAT COMPILES BUSINESS INFORMATION THROUGHOUT THE COUNTRY) 1=Yes SKIP TO A5 2=No 98=(DON'T KNOW) 99=(REFUSED) A4. What would you say is the main line of business at [firm name / new firm name]? (ENTER VERBATIM RESPONSE) 1=VERBATIM A5. Is this the sole location for your business, or do you have offices in other locations? 1=Sole location SKIP TO A9 2=Have other locations 98=(DON'T KNOW) 99=(REFUSED) BBC RESEARCH & CONSULTING APPENDIX C, PAGE 13

108 A6. [ASK ONLY IF OUTSIDE NEVADA] Do you have any offices in Nevada? 1=Yes 2=No SKIP TO A9 98=(DON'T KNOW) 99=(REFUSED) A7. Just counting those located in Nevada, how many offices do you have? (ENTER NUMBER OF OFFICES) (998 = DON'T KNOW) (999 = REFUSED) 1=NUMERIC (1-999) A8. Where are your Nevada offices? 1=VERBATIM A9. Is your company headquartered in Nevada? 1=Yes 2=No 98=(DON'T KNOW) 99=(REFUSED) A10. Is your company a subsidiary or affiliate of another firm? 1=Independent SKIP TO B1 2=Subsidiary of another firm 3=Affiliate 98=(DON'T KNOW) 99=(REFUSED) A11. What is the name of your parent company? 1=ENTER NAME 98=(DON'T KNOW) 99=(REFUSED) BBC RESEARCH & CONSULTING APPENDIX C, PAGE 14

109 B1. Next, I have a few questions about your company s role in transportation construction, maintenance or design work. During the past five years, has your company submitted [a bid or qualifications, a proposal or a price quote] for any part of a NDOT project? 1=Yes 2=No SKIP TO B3 98=(DON'T KNOW) SKIP TO B3 99=(REFUSED) SKIP TO B3 B2. Was that [a bid / a proposal] or price quote to work as [a prime contractor, a subcontractor, or a supplier? or a prime consultant or subconsultant?] 1=Prime contractor/consultant 2=Subcontractor/consultant 3=Supplier (or manufacturer) 4=Prime and Sub 5=Sub and Supplier 6=Prime and Supplier 7=Prime, Sub, and Supplier 8=Trucker 10=(Supplier and Trucker) 11=(Prime and Trucker) 12=(Sub and Trucker) 13=(Prime, Supplier, and Trucker) 14=(Sub, Supplier, and Trucker) 15=(Prime, Sub, and Trucker) 16=(Prime, Sub, Supplier, Trucker) 98=(DON'T KNOW) 99=(REFUSED) B3. During the past five years, has your company received an award for work [as a prime contractor or as a subcontractor or as a prime consultant or as a subconsultant] to any part of a NDOT project? 1=Yes 2=No SKIP TO B5 98=(DON'T KNOW) SKIP TO B5 99=(REFUSED) SKIP TO B5 BBC RESEARCH & CONSULTING APPENDIX C, PAGE 15

110 B4. Was that an award to work as [a prime contractor, a subcontractor, or a supplier? / a prime consultant or subconsultant?] 1=Prime contractor/consultant 2=Subcontractor/consultant 3=Supplier (or manufacturer) 4=Prime and Sub 5=Sub and Supplier 6=Prime and Supplier 7=Prime, Sub, and Supplier 8=Trucker 10=(Supplier and Trucker) 11=(Prime and Trucker) 12=(Sub and Trucker) 13=(Prime, Supplier, and Trucker) 14=(Sub, Supplier, and Trucker) 15=(Prime, Sub, and Trucker) 16=(Prime, Sub, Supplier, Trucker) 98=(DON'T KNOW) 99=(REFUSED) B5. During the past five years, has your company submitted [a bid / qualifications, a proposal] or a price quote for any part of a city, county, or local agency transportation project in Nevada? 1=Yes 2=No SKIP TO B7 98=(DON'T KNOW) SKIP TO B7 99=(REFUSED) SKIP TO B7 B6. Was that [a bid / a proposal] or price quote to work as [a prime contractor, a subcontractor, or a supplier? / a prime consultant or subconsultant?] 1=Prime contractor/consultant 2=Subcontractor/consultant 3=Supplier (or manufacturer) 4=Prime and Sub 5=Sub and Supplier 6=Prime and Supplier 7=Prime, Sub, and Supplier 8=Trucker 10=(Supplier and Trucker) 11=(Prime and Trucker) 12=(Sub and Trucker) 13=(Prime, Supplier, and Trucker) 14=(Sub, Supplier, and Trucker0 15=(Prime, Sub, and Trucker) 16=(Prime, Sub, Supplier, Trucker) 98=(DON'T KNOW) 99=(REFUSED) BBC RESEARCH & CONSULTING APPENDIX C, PAGE 16

111 B7. During the past five years, has your company received an award for work [as a prime contractor or as a subcontractor / as a prime consultant or as a subconsultant] to any part of a city, county, or local transportation agency project in Nevada? 1=Yes 2=No SKIP TO B9 98=(DON'T KNOW) SKIP TO B9 99=(REFUSED) SKIP TO B9 B8. Was that an award to work as [a prime contractor, a subcontractor, or a supplier? / a prime consultant or subconsultant?] 1=Prime contractor/consultant 2=Subcontractor/consultant 3=Supplier (or manufacturer) 4=Prime and Sub 5=Sub and Supplier 6=Prime and Supplier 7=Prime, Sub, and Supplier 8=Trucker 10=(Supplier and Trucker) 11=(Prime and Trucker) 12=(Sub and Trucker) 13=(Prime, Supplier, and Trucker) 14=(Sub, Supplier, and Trucker) 15=(Prime, Sub, and Trucker) 16=(Prime, Sub, Supplier, Trucker) 98=(DON'T KNOW) 99=(REFUSED) B9. During the past five years, has your company submitted [a bid / qualifications, a proposal] or a price quote for any part of a private sector transportation project in Nevada? 1=Yes 2=No SKIP TO B11 98=(DON'T KNOW) SKIP TO B11 99=(REFUSED) SKIP TO B11 BBC RESEARCH & CONSULTING APPENDIX C, PAGE 17

112 B10. Was that [a bid / a proposal] or price quote to work as [a prime contractor, a subcontractor, or a supplier? / a prime consultant or subconsultant?] 1=Prime contractor/consultant 2=Subcontractor/consultant 3=Supplier (or manufacturer) 4=Prime and Sub 5=Sub and Supplier 6=Prime and Supplier 7=Prime, Sub, and Supplier 8=Trucker 10=(Supplier and Trucker) 11=(Prime and Trucker) 12=(Sub and Trucker) 13=(Prime, Supplier, and Trucker) 14=(Sub, Supplier, and Trucker) 15=(Prime, Sub, and Trucker) 16=(Prime, Sub, Supplier, Trucker) 98=(DON'T KNOW) 99=(REFUSED) B11. During the past five years, has your company received an award for work [as a prime contractor or as a subcontractor / as a prime consultant or as a subconsultant] to any part of a private sector transportation project in Nevada? 1=Yes 2=No SKIP TO B13 98=(DON'T KNOW) SKIP TO B13 99=(REFUSED) SKIP TO B13 B12. Was that an award to work as [a prime contractor, a subcontractor, or a supplier? / a prime consultant or subconsultant?] 1=Prime contractor/consultant 2=Subcontractor/consultant 3=Supplier (or manufacturer) 4=Prime and Sub 5=Sub and Supplier 6=Prime and Supplier 7=Prime, Sub, and Supplier 8=Trucker 10=(Supplier and Trucker) 11=(Prime and Trucker) 12=(Sub and Trucker) 13=(Prime, Supplier, and Trucker) 14=(Sub, Supplier, and Trucker) 15=(Prime, Sub, and Trucker) 16=(Prime, Sub, Supplier, Trucker) 98=(DON'T KNOW) 99=(REFUSED) BBC RESEARCH & CONSULTING APPENDIX C, PAGE 18

113 B13. Now, thinking about future transportation work, is your company qualified and interested in working with NDOT or local governments in Nevada [a prime contractor? / a prime consultant?] 1=Yes (BOTH) 2=(YES, JUST NDOT) 3=(YES, JUST LOCAL GOVERNMENTS) 4=No 98=(DON'T KNOW) 99=(REFUSED) B14. And what about [as a subcontractor: / as a subconsultant:] is your company qualified and interested in working with NDOT and local governments in Nevada? 1=Yes, (BOTH) 2=(YES, JUST NDOT) 3=(YES, JUST LOCAL GOVERNMENTS) 4=No 98=(DON'T KNOW) 99=(REFUSED) C1. Next, I m going to list three regions of Nevada. After each, I ll ask you to tell me whether or not your company would be involved in transportation projects in that region. First is Southern Nevada [NOTE: includes Las Vegas]. Would your company be involved in transportation projects in that region? 1=Yes 2=No 98=(DON'T KNOW) 99=(REFUSED) C2. How about in Northwestern Nevada [NOTE: includes Reno and Carson City]? Would your company be involved in transportation projects in that region? 1=Yes 2=No 98=(DON'T KNOW) 99=(REFUSED) BBC RESEARCH & CONSULTING APPENDIX C, PAGE 19

114 C3. How about in Northeastern Nevada? Would your company be involved in transportation projects in that region? 1=Yes 2=No 98=(DON'T KNOW) 99=(REFUSED) D1. About what year was your firm established? (RECORD FOUR-DIGIT YEAR, I.E. '1977') (9998 = DON'T KNOW) (9999 = REFUSED) 1=NUMERIC ( ) D2. In rough dollar terms, what was the largest transportation-related contract or subcontract your company was awarded in Nevada during the past five years? (NOTE TO INTERVIEWER: INCLUDES CONTRACTS NOT YET COMPLETE) (READ CATEGORIES IF NECESSARY) 1=$100,000 or less 2=More than $100,000 to $500,000 3=More than $500,000 to $1 million 4=More than $1 million to $2 million 5=More than $2 million to $5 million 7=More than $10 million to $20 million 8=More than $20 million 97=(NONE) 98=(DON'T KNOW) 99=(REFUSED) 6=More than $5 million to $10 million D3. Was this the largest transportation-related contract or subcontract that your company [bid / proposed] on or submitted quotes for in Nevada during the past five years? 1=Yes SKIP TO D5 2=No 98=(DON'T KNOW) SKIP TO D5 99=(REFUSED) SKIP TO D5 BBC RESEARCH & CONSULTING APPENDIX C, PAGE 20

115 D4. What was the largest transportation-related contract or subcontract that your company [bid/proposed] on or submitted quotes for in Nevada during the past five years? (READ CATEGORIES IF NECESSARY) 1=$100,000 or less 2=More than $100,000 to $500,000 3=More than $500,000 to $1 million 4=More than $1 million to $2 million 5=More than $2 million to $5 million 7=More than $10 million to $20 million 8=More than $20 million 97=(NONE) 98=(DON'T KNOW) 99=(REFUSED) 6=More than $5 million to $10 million D5. [ASK ONLY IF B4=3, 5, 6, OR 7] Now thinking of all of your firm's locations, both within and outside of Nevada, what would you estimate was the total amount your firm earned from supply work on NDOT projects in 2005? 1=$100,000 or less 2=More than $100,000 to $500,000 3=More than $500,000 to $1 million 4=More than $1 million to $2 million 5=More than $2 million to $5 million 6=More than $5 million to $10 million 8=More than $20 million to $50 million 9=More than $50 million to $75 million 10=More than $75 million 97=(NONE) 98=(DON'T KNOW) 99=(REFUSED) 7=More than $10 million to $20 million D6. [ASK ONLY IF B4=8]Now thinking of all of your firm's locations, both within and outside of Nevada, what would you estimate was the total amount your firm earned from trucking work on NDOT projects in 2005? 1=$100,000 or less 2=More than $100,000 to $500,000 3=More than $500,000 to $1 million 4=More than $1 million to $2 million 5=More than $2 million to $5 million 6=More than $5 million to $10 million 8=More than $20 million to $50 million 9=More than $50 million to $75 million 10=More than $75 million 97=(NONE) 98=(DON'T KNOW) 99=(REFUSED) 7=More than $10 million to $20 million BBC RESEARCH & CONSULTING APPENDIX C, PAGE 21

116 E1. My next questions are about the ownership of the business. A business is defined as womanowned if more than half - that is, 51 percent or more - of the ownership and control is by women. By this definition, is [firm name / new firm name] a woman-owned business? 1=Yes 2=No 98=(DON'T KNOW) 99=(REFUSED) E2. A business is defined as minority-owned if more than half - that is, 51 percent or more - of the ownership and control is African American, Asian, Hispanic, Native American or another minority group. By this definition, is [firm name / new firm name] a minority-owned business? 1=Yes 2=No SKIP TO E4 3=(OTHER GROUP - SPECIFY) 98=(DON'T KNOW) 99=(REFUSED) E2. OTHER GROUP - SPECIFY 1=VERBATIM E3. Would you say that the minority group ownership is mostly African American, Asian-Pacific American, Subcontinent Asian American, Hispanic American, or Native American? 1=African-American 2=Asian Pacific American (persons whose origins are from Japan, China, Taiwan, Korea, Burma (Myanmar), Vietnam, Laos, Cambodia(Kampuchea),Thailand, Malaysia, Indonesia, the Philippines, Brunei, Samoa, Guam, the U.S. Trust Territories of the Pacific Islands (Republic of Palau), the Common-wealth of the Northern Marianas Islands, Macao, Fiji, Tonga, Kirbati, Juvalu, Nauru, Federated States of Micronesia, or Hong Kong) 3=Subcontinent Asian American (persons whose Origins are from India, Pakistan, Bangladesh, Bhutan, the Maldives Islands, Nepal or Sri Lanka) 4=Hispanic American (persons of Mexican, Puerto Rican, Cuban, Dominican, Central or South American, or other Spanish or Portuguese culture or origin, regardless of race) 5=Native American (American Indians, Eskimos, Aleuts, or Native Hawaiians) 6=(OTHER - SPECIFY) 98=(DON'T KNOW) 99=(REFUSED) BBC RESEARCH & CONSULTING APPENDIX C, PAGE 22

117 E3. OTHER - SPECIFY 1=VERBATIM E4. Is your firm certified as a Disadvantaged Business Enterprise (DBE)? 1=Yes 2=No 3=(OTHER - SPECIFY) 98=(DON'T KNOW) 99=(REFUSED) E4. OTHER - SPECIFY 1=VERBATIM F1. Dun & Bradstreet indicates that your company has about [number] employees working out of just your location. Is that a fairly accurate average thinking about all of 2005? (INCLUDES EMPLOYEES WHO WORK AT THAT LOCATION AND THOSE WHO WORK FROM THAT LOCATION) 1=Yes SKIP TO F3 2=No 98=(DON'T KNOW) 99=(REFUSED) SKIP TO F3 F2. About how many employees did you have working out of just your location, on average, over the course of last year? (RECORD NUMBER OF EMPLOYEES) 1=NUMERIC ( ) F3. Dun & Bradstreet lists the annual gross revenue of your company, just considering your location, to be [dollar amount]. Is that accurate for 2005? 1=Yes SKIP TO F5 2=No 98=(DON'T KNOW) 99=(REFUSED) SKIP TO F5 BBC RESEARCH & CONSULTING APPENDIX C, PAGE 23

118 F4. Roughly, what was the gross revenue of your company, just considering your location, in 2005? Would you say... (READ LIST) 1=Less than $200,000 2=$200,000 - $499,999 3=$500,000 - $999,999 4=$1 Million - $2.49 Million 5=$2.5 Million - $4.9 Million 7=$10 Million - $24.9 Million 8=$25 Million - $49.9 Million 9=$50 Million or more 98=(DON'T KNOW) 99=(REFUSED) 6=$5 Million - $9.9 Million F5. For 2005, about how many employees did you have, on average, for all of your Nevada locations? 1=(ENTER RESPONSE) 98=(DON'T KNOW) 99=(REFUSED) F5. RECORD NUMBER OF EMPLOYEES 1=VERBATIM F6. Roughly, what was the gross revenue of your company, for all of your Nevada locations in 2005? Would you say (READ LIST) 1=Less than $200,000 2=$200,000 - $499,999 3=$500,000 - $999,999 4=$1 Million - $2.49 Million 5=$2.5 Million - $4.9 Million 7=$10 Million - $24.9 Million 8=$25 Million - $49.9 Million 9=$50 Million or more 98=(DON'T KNOW) 99=(REFUSED) 6=$5 Million - $9.9 Million G1. Finally, we're giving business owners and managers an opportunity to offer general insights on your industry, including how difficult it is to start or expand your business and to [bid / propose] on and win work. As you're thinking, be sure to consider any issues related to NDOT and local government projects in Nevada. What thoughts do you have to offer on these topics? 1=VERBATIM (PROBE FOR COMPLETE THOUGHTS) BBC RESEARCH & CONSULTING APPENDIX C, PAGE 24

119 G2. NDOT is looking for ways to improve its contracting practices and those of its prime [contractors / consultants] to ensure that they are open and fair. Do you have any thoughts or suggestions? 1=VERBATIM (PROBE FOR COMPLETE THOUGHTS) G3. Would you be willing to participate in a follow-up interview about any of these issues? 1=Yes 2=No 98=(DON'T KNOW) 99=(REFUSED) H1. Just a few last questions. What is your name and position at [firm name / new firm name]? (RECORD FULL NAME) 1=VERBATIM H2. What is your position? 1=Receptionist 2=Owner 3=Manager 4=CFO 5=CEO 6=Assistant to Owner/CEO 7=Sales manager 8=Office manager 9=(OTHER - SPECIFY) 99=(REFUSED) H2. OTHER - SPECIFY 1=VERBATIM BBC RESEARCH & CONSULTING APPENDIX C, PAGE 25

120 H3. For purposes of a receiving any NDOT materials, is your mailing address [firm address]: 1=Yes 2=No 98=(DON'T KNOW) 99=(REFUSED) H4. What mailing address should NDOT use to get any materials to you? 1=VERBATIM H5. What fax number should NDOT use to get any materials to you? 1=ENTER FAX 97=(NO FAX NUMBER) 98=(DON'T KNOW) 99=(REFUSED) H5. ENTER FAX NUMBER 1=NUMERIC ( ) H6. What address should NDOT use to get any materials to you? 1=ENTER 97=(NO ADDRESS) 98=(DON'T KNOW) 99=(REFUSED) H6. (RECORD ADDRESS) (VERIFY ADDRESS LETTER BY LETTER: EXAMPLE: 'John@CRI- RESEARCH.COM' SHOULD BE VERIFIED AS: J-O-H-N-at-C-R-I-hyphen-R-E-S-E-A-R-C-H-dot-com ) 1=VERBATIM BBC RESEARCH & CONSULTING APPENDIX C, PAGE 26

121 APPENDIX D. Procedures for Estimating MBE/WBE Availability This appendix discusses BBC s approach to developing dollar-weighted estimates of relative MBE/WBE availability. Procedures for Determining MBE/WBE Availability Firms, not business establishments, are the unit of analysis for the availability calculations. BBC applied two types of screening of firms to be counted in the MBE/WBE availability analysis: Fundamental criteria that a firm must meet to be considered in the analysis (regardless of the contract); and Criteria that a firm must meet to be considered for a particular contract. Screening of firms to be considered in the availability analysis for any contract. A firm must meet the following criteria to be counted in the MBE/WBE availability analysis for any contract element. Be a for-profit business, not a public agency or not-for-profit organization; Have a location in Nevada; Be identified by Dun & Bradstreet (D&B) as operating in mid-2006 within a main line of business related to transportation construction and engineering work; Have a working phone number and someone who will answer the phone or return a phone call; Have an owner or manager who is willing to take part in the availability survey and be able to complete the survey in English; Confirm that the firm does perform work related to transportation construction, maintenance or design; Confirm that the firm has a main line of business within one of the areas of focus of the availability analysis; Have performed or bid on past NDOT, local government or private sector transportation construction or engineering contracts in the past five years; Have been in business during the year in which the contract began; and Have answered the survey questions that asked whether the firm was minority- or women-owned and controlled (any firm not answering this question was excluded from the availability analysis). BBC RESEARCH & CONSULTING APPENDIX D, PAGE 1

122 The study team considered one additional measure to screen firms before considering them available for specific NDOT contracts. Interviewers asked, Now, thinking about future transportation work, is your company qualified and interested in working with NDOT and local governments in Nevada? The only firms considered in the MBE/WBE availability analysis for NDOT contracts were firms responding yes to both or yes to just NDOT work. Additional screening to be considered for a specific NDOT contract or subcontract. MBE/WBE availability for a particular set of contracts is determined contract-by-contract for each element of each contract (the prime portion, subcontract portions, trucking and supply portions, etc.) and then dollar-weighted to determine overall availability. Firms are counted as available for some prime contracts or subcontracts and not for others depending upon the characteristics of the contract element and the characteristics of the firm, as described below. For each contract element, the study team s analysis identifies: Location (one of 3 regions based on NDOT district, or North Region or Central Region for certain engineering contracts); Contract role (prime contractor and subcontractor, including supplier and trucker); Size of the contract role for subcontractor elements and size of the entire contract for prime contractor elements; Date that contract began; and Work specialty. Location. Firm owners and managers were asked whether or not their firm could be involved in transportation projects within 3 regions of Nevada that correspond to the NDOT districts. Contract role. To meet the prime contractor contract role criterion, the firm must have been awarded or bid on past transportation work as a prime contractor. This can be on NDOT, local agency or private sector contracts. A firm must have been awarded or submitted bids or quotes as a subcontractor to meet the subcontractor test. Similar tests apply for trucking and for supplier. Size of contract or subcontract element. To be counted as available for subcontract elements, a firm must have been awarded or bid on a past contract or subcontract of similar or greater size to that for the contract element. For prime contract elements, a firm must have been awarded or bid on a past contract or subcontract of similar or greater size to the entire contract amount. Contract date. To be counted as available for a contract element (both prime contract or subcontract elements), a firm must report an establishment date during or prior to the year in which that prime contract began. Firms that could not recall or did not report an establishment date were presumed to have been founded before the study period and therefore were included in the count of available firms because of firm age. BBC RESEARCH & CONSULTING APPENDIX D, PAGE 2

123 Work specialty. Each work element in a contract is assigned a work specialty code. This code is based on the main line of work of the firm that actually performed that work element. To be counted as available within a work specialty, a firm must have the same work specialty code. The code for each firm is based on the description of the main line of business confirmed or identified by the firm owner or manager (the D&B SIC code for the firm or the line of work identified by the firm in the Availability Survey). In some cases, the work specialty code of a contract element was outside the core areas that were studied in the Availability Survey. These specialty areas were coded as other construction, other construction supply, other construction equipment and other professional services. Firms in these other specialty areas that were surveyed in the availability analysis are used as a proxy for these other firms when determining relative MBE/WBE availability for these contract elements. In some cases, the work specialty code could not be identified beyond general construction or engineering work. Availability for those work elements was based on all firms that do prime or subcontracting work (for construction versus engineering contracts). The firms counted as available for that contract element were also subject to other screening (location, etc.). Dollar-Weighting across Contracts The process described above relates to determining relative MBE/WBE availability for a specific contract element. To develop an availability figure pertaining to many different contracts, BBC weighted the MBE/WBE availability for a contract element by the dollars awarded or paid for that contract element. Large subcontracts received a greater weight than smaller subcontracts, for example. The Availability and Disparity Study examines transportation construction and engineering contracts that NDOT awarded between October 1999 and December These contracts involve both prime contractors and subcontractors ( prime consultants and subconsultants for transportation engineering contracts). The balance of this appendix reviews the data NDOT currently collects and maintains for these contracts and the additional data collection the study team undertook to complete the MBE/WBE availability analysis. Collection of Contract Information The study team collected contract information for NDOT construction and engineering contracts. Construction contracts. BBC collected NDOT construction contract information for the period of October 1, 1999 through the latter half of 2006 from the following sources: NDOT Contract Compliance Division s DBE Tracks system; NDOT Contract Compliance Division s Request to Sublet records; NDOT Admin Services Division s records of District-let construction contracts; and NDOT Contract Cards. BBC RESEARCH & CONSULTING APPENDIX D, PAGE 3

124 DBE Tracks system. NDOT maintains information about prime contractors and subcontractors performing highway-related construction projects in a system called DBE Tracks. In some cases, supplier and trucking firm information is stored in DBE Tracks. One of NDOT s uses of DBE Tracks is to maintain vendor information for certified DBEs, including certification date, MBE/WBE status, ethnicity and other owner demographics. Contract amounts and DBE participation on construction contracts are also entered into DBE Tracks for Federal DBE program reporting purposes. NDOT maintains this system in an Oracle database and users can manipulate and analyze data using MS Access on a local network. BBC obtained a complete copy of this data on July 10, The study team used DBE Tracks as the primary source for: Bid open dates for construction contracts; Contract amount and name of prime contractor (for contracts without subcontractors); DBE certification status at bid open date for vendors utilized on a contract; DBE certification status for firms reached in the availability survey; The MBE/WBE and ethnicity status of DBE certified vendors; and Verification of contract amounts from Request to Sublet records. Request to Sublet records. A prime contractor must submit a Request to Sublet Form (Rev. 9/02) for each subcontractor the prime intends to use on the project. NDOT enters Request to Sublet form information into MS Excel spreadsheets. NDOT contract compliance staff and BBC identified RTS Excel spreadsheets as the most accurate source of construction contract data for this study. Request to Sublet files include the prime and subcontractor names, the total contract and subcontract amounts for each project. BBC only analyzed first-tier subcontracts for this study. BBC obtained the Request to Sublet files for highway construction projects with subcontractors and appearing in the July 10, 2006 copy of DBE Tracks. The study team used the Request to Sublet files to identify subcontractors on each project and the amount contracted to them. BBC input the pertinent Request to Sublet data into an MS Access database designed for this study. The project numbers in this database were then checked against projects in DBE Tracks that had a bid open date within the study period. BBC discussed potential issues with NDOT Contract Compliance Division staff. BBC RESEARCH & CONSULTING APPENDIX D, PAGE 4

125 Records of District-let construction contracts. Each of NDOT s three Districts can let contracts for construction or engineering projects within certain limits. A list of these contracts is maintained by Admin Services and was provided to the study team. Because little information about these contracts is maintained electronically, the study team photocopied pieces of the archived records (hard copy or microfilm) of each contract. Where possible, the study team photocopied the agreement summary, project description, NDOT bidder subcontractor information (both exceeding 5 percent of bid amount and exceeding 1 percent of bid amount or $50,000, whichever is greater), list of subcontractors and suppliers, and cost proposal of winning bidder showing prime name and total bid amount. Subcontractor payment information was not available on District-let construction contracts. BBC attempted to collect information for all District-let construction contracts that met study guidelines. Information on these contracts was entered into a database designed specifically for this project. Data entry on contract and subcontract amounts was checked separately. Contract cards. These cards provide a summary of each project, including county where the work was performed, project description, bid information, engineer s estimate, and a list of suppliers and subcontractors. Admin Services Division provided BBC copies of contract cards kept by NDOT on highway construction projects with a bid open date on or after October 1, Contract cards are available for most of the projects included in DBE Tracks and/or the Request to Sublet files. BBC used the project description contained in the contract cards to identify projects from DBE Tracks that were out of the scope of this study (e.g., constructing buildings). In the event that no contract card was available for the project, the study team included the project in the analysis. (BBC used the photocopied project descriptions for District-let contracts to determine whether the project was in the scope of this study.) Engineering contracts. BBC collected NDOT engineering contract information for the period of October 1, 1999 through the latter half of 2006 from hardcopy and microfilm agreement files. BBC collected agreements let by both NDOT Headquarters and at the District level. BBC collected oncall term agreements, those solicited through a request for proposal (RFP) or sole-source process, and amendments to agreements. BBC and Admin Services Division photocopied pieces of the files and BBC entered the appropriate information into a database designed specifically for this project. In all cases, the project description was reviewed to determine whether the project was in the scope of this study. Some agreements did not have any bid information for subcontractors. Where this occurred, BBC collected all invoiced amounts by prime contractor and subcontractors and used these amounts as the project value. BBC RESEARCH & CONSULTING APPENDIX D, PAGE 5

126 Verification of Contract Information Following BBC s data entry and cleaning, BBC produced a table of vendor information showing vendors DBE and WBE/MBE status, ethnicity where appropriate, and the sum of the in-scope contract and subcontract amounts won by these firms during the study period. BBC attempted to contact firms by telephone to verify basic firm information for businesses not previously included in the Availability Survey. NDOT Contract Compliance staff performed the following reviews of this material: Identified separate establishments that belonged to a single firm; Checked a portion of the construction dollar amounts against NDOT amounts; and Compared DBE certification status, WBE/MBE status and ethnicity to NDOT records. BBC revised our vendor and contract data per this feedback and other discussions with Contract Compliance staff. BBC RESEARCH & CONSULTING APPENDIX D, PAGE 6

127 APPENDIX E. Disparity Tables This appendix presents 108 detailed tables for subsets of NDOT and local agency contracts, contract roles, funding sources and districts. Figure E-1 identifies the contract elements analyzed in each table by agency, funding source, type (construction, engineering or both), time period, contract role (prime contractor, subcontractor/supplier or both) and geographic region. Each table includes the following seven columns of information for each type of firm analyzed: Number of contracts (subcontracts) the number of contract elements including prime contract and subcontracts where relevant; Dollars the dollar amount represented by the analyzed contract elements; Estimated total dollars the estimated total dollars for each type for the entire population of contract elements; Percentage utilization (column c line n/column c line 1) the estimated dollars for each firm type (column c line n) divided by the total dollars available (column c line 1); Utilization benchmark (availability) BBC s estimate of relative availability for the given contract type; Difference (column d-e) the difference between the percentage utilization and the utilization benchmark; and Disparity index (d/e)x100 the ratio of percentage utilization to the utilization benchmark. All dollar figures are reported in thousands. Utilization is reported as a percentage. For the majority of the disparity figures, the MBE/WBE utilization for each group exceeds the DBE utilization for that group. In some cases, reallocation of the Unknown DBE contract elements causes DBE utilization estimates to exceed the MBE/WBE utilization estimates. BBC RESEARCH & CONSULTING APPENDIX E, PAGE 1

128 Figure E-1 (7 pages) Page 1 of 6 Figure E- : Agency NDOT x x x x x x x x x x x x x x x x x x x Funding All funding sources Federal x x x x x x x x x x x x x x x x x x x State Type Transportation construction and engineering x x x x x x x x x Construction x x x x x x x x x Engineering x Time Period October x x x x x x x October x x x x x x October 1999-September 2005 x x x x x x October 1999-September 2000 October 2000-September 2001 October 2001-September 2002 October 2002-September 2003 October 2003-September 2004 October 2004-September 2005 October 2005-September 2006 October 2006-December 2006 Contract role Prime/Sub x x x x x x x Prime x x x x x x Sub/supplier x x x x x x Region Nevada x x x x x x x x x x x x x x x x x x x District 1 District 2 District 3 Small Contracts Under $10M Under $100k W/MBE Revenue Cap Revenue Cap W/MBE based on Industry

129 Figure E-1 (7 pages) Agency NDOT Page 2 of 6 Figure E- : x x x x x x x x x x x x x x x x x x x x Funding All funding sources Federal State x x x x x x x x x x x x x x x x x x x x Type Transportation construction and engineering Construction Engineering x x x x x x x x x x x x x x x x x x x x Time Period October October October 1999-September 2005 October 1999-September 2000 October 2000-September 2001 October 2001-September 2002 October 2002-September 2003 October 2003-September 2004 October 2004-September 2005 October 2005-September 2006 October 2006-December 2006 Contract role Prime/Sub Prime Sub/supplier Region Nevada District 1 District 2 District 3 x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x Small Contracts Under $10M Under $100k W/MBE Revenue Cap Revenue Cap W/MBE based on Industry

130 Figure E-1 (7 pages) Agency NDOT Page 3 of 6 Figure E- : x x x x x x x x x x x x x x x x x x x x Funding All funding sources Federal State x x x x x x x x x x x x x x x x x x x x Type Transportation construction and engineering Construction Engineering x x x x x x x x x x x x x x x x x x x x Time Period October October October 1999-September 2005 October 1999-September 2000 October 2000-September 2001 October 2001-September 2002 October 2002-September 2003 October 2003-September 2004 October 2004-September 2005 October 2005-September 2006 October 2006-December 2006 x x x x x x x x x x x x x x x x x x x x Contract role Prime/Sub Prime Sub/supplier Region Nevada District 1 District 2 District 3 x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x Small Contracts Under $10M Under $100k W/MBE Revenue Cap Revenue Cap W/MBE based on Industry

131 Figure E-1 (7 pages) Agency NDOT Page 4 of 6 Figure E- : x x x x x x x x x x x x x x x x x x x x Funding All funding sources Federal State x x x x x x x x x x x x x x x x x x x x Type Transportation construction and engineering Construction Engineering x x x x x x x x x x x x x x x x x x x x Time Period October October October 1999-September 2005 October 1999-September 2000 October 2000-September 2001 October 2001-September 2002 October 2002-September 2003 October 2003-September 2004 October 2004-September 2005 October 2005-September 2006 October 2006-December 2006 x x x x x x x x x x x x x x x x x x x x Contract role Prime/Sub Prime Sub/supplier x x x x x x x x x x x x x x x x x x x x Region Nevada District 1 District 2 District 3 x x x x x x x x x x x x x x x x x x x x Small Contracts Under $10M Under $100k W/MBE Revenue Cap Revenue Cap W/MBE based on Industry

132 Figure E-1 (7 pages) Agency NDOT Funding All funding sources Federal State Page 5 of 6 Figure E- : x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x Type Transportation construction and engineering Construction Engineering x x x x x x x x x x x x x x x x x x x Time Period October October October 1999-September 2005 October 1999-September 2000 October 2000-September 2001 October 2001-September 2002 October 2002-September 2003 October 2003-September 2004 October 2004-September 2005 October 2005-September 2006 October 2006-December 2006 x x x x x x x x x x x x x x x x x x x Contract role Prime/Sub Prime Sub/supplier x x x x x x x x x x x x x x x x x x x Region Nevada District 1 District 2 District 3 x x x x x x x x x x x x x x x x x x x x Small Contracts Under $10M Under $100k W/MBE Revenue Cap Revenue Cap W/MBE based on Industry x x x x x x x

133 Figure E-1 (7 pages) Agency NDOT Funding All funding sources Federal State Figure E- : Page 6 of x x x x x x x x x x x x x x x x x x Type Transportation construction and engineering Construction Engineering x x x x x x x x x Time Period October October October 1999-September 2005 October 1999-September 2000 October 2000-September 2001 October 2001-September 2002 October 2002-September 2003 October 2003-September 2004 October 2004-September 2005 October 2005-September 2006 October 2006-December 2006 x x x x x x x x x Contract role Prime/Sub Prime Sub/supplier x x x x x x x x x Region Nevada District 1 District 2 District 3 Small Contracts Under $10M Under $100k W/MBE Revenue Cap Revenue Cap W/MBE based on Industry x x x x x x x x x x x x x x x x x x

134 Figure E-2. Agency: NDOT Funding: Federal Type: All Time Period: October 1999 to 2006 Role: Prime Contractors, Subcontractors and Suppliers Region: Nevada Firm Type (a) Number of contracts (subcontracts) (b) Dollars (c) Estimated total dollars (d) Actual utilization (column c/c-1) (e) Utilization benchmark (availability) (f) Difference (column d-e) (g) Disparity index (d/e)x100 (1) All firms 1,412 $1,643,608 $1,643,608 (2) MBE/WBE 330 $131,830 $131, (3) WBE 221 $60,907 $60, (4) MBE 110 $71,077 $71, (5) African American-owned 6 $1,677 $1, (6) Total Asian American-owned 14 $3,121 $3, (7) Asian-Pacific American-owned 12 $2,024 $2, (8) Subcontinent Asian American-owned 2 $1,097 $1, (9) Hispanic American-owned 66 $41,883 $43, (10) Native American-owned 21 $22,021 $22, (11) Unknown MBE 3 $2,375 (12) DBE-certified 216 $60,239 $60, (13) Women-owned DBE 139 $30,649 $30, (14) Minority-owned DBE 70 $28,137 $28, (14) African American-owned DBE 4 $1,669 $1, (16) Total Asian American-owned DBE 6 $1,007 $1, (17) Asian-Pacific American-owned DBE 6 $1,007 $1, (18) Subcontinent Asian American-owned DBE 0 $0 $0 0.0 (19) Hispanic American-owned DBE 48 $23,284 $23, (20) Native American-owned DBE 12 $2,178 $2, (21) White male-owned DBE 7 $1,453 $1, (22) Unknown DBE-MBE 0 $0 (23) Unknown DBE 0 $0 Notes: Spreadsheet rounds numbers to nearest thousand dollars or tenth of one percent. WBE is white women-owned firms. Source: BBC Research and Consulting Disparity Analysis.

135 Figure E-3. Agency: NDOT Funding: Federal Type: All Time Period: October 1999 to September 2005 Role: Prime Contractors, Subcontractors and Suppliers Region: Nevada Firm Type (a) Number of contracts (subcontracts) (b) Dollars (c) Estimated total dollars (d) Actual utilization (column c/c-1) (e) Utilization benchmark (availability) (f) Difference (column d-e) (g) Disparity index (d/e)x100 (1) All firms 1,299 $1,453,558 $1,453,558 (2) MBE/WBE 301 $105,400 $105, (3) WBE 206 $55,390 $55, (4) MBE 96 $50,164 $50, (5) African American-owned 5 $1,191 $1, (6) Total Asian American-owned 11 $2,677 $2, (7) Asian-Pacific American-owned 9 $1,580 $1, (8) Subcontinent Asian American-owned 2 $1,097 $1, (9) Hispanic American-owned 60 $39,413 $41, (10) Native American-owned 17 $4,509 $4, (11) Unknown MBE 3 $2,375 (12) DBE-certified 202 $57,684 $57, (13) Women-owned DBE 131 $29,778 $29, (14) Minority-owned DBE 64 $26,453 $26, (14) African American-owned DBE 3 $1,182 $1, (16) Total Asian American-owned DBE 3 $563 $ (17) Asian-Pacific American-owned DBE 3 $563 $ (18) Subcontinent Asian American-owned DBE 0 $0 $0 0.0 (19) Hispanic American-owned DBE 46 $22,531 $22, (20) Native American-owned DBE 12 $2,178 $2, (21) White male-owned DBE 7 $1,453 $1, (22) Unknown DBE-MBE 0 $0 (23) Unknown DBE 0 $0 Notes: Spreadsheet rounds numbers to nearest thousand dollars or tenth of one percent. WBE is white women-owned firms. Source: BBC Research and Consulting Disparity Analysis.

136 Figure E-4. Agency: NDOT Funding: Federal Type: All Time Period: October 2005 to 2006 Role: Prime Contractors, Subcontractors and Suppliers Region: Nevada Firm Type (a) Number of contracts (subcontracts) (b) Dollars (c) Estimated total dollars (d) Actual utilization (column c/c-1) (e) Utilization benchmark (availability) (f) Difference (column d-e) (g) Disparity index (d/e)x100 (1) All firms 113 $190,050 $190,050 (2) MBE/WBE 29 $26,430 $26, (3) WBE 15 $5,516 $5, (4) MBE 14 $20,913 $20, (5) African American-owned 1 $487 $ (6) Total Asian American-owned 3 $444 $ (7) Asian-Pacific American-owned 3 $444 $ (8) Subcontinent Asian American-owned 0 $0 $ (9) Hispanic American-owned 6 $2,470 $2, (10) Native American-owned 4 $17,512 $17, (11) Unknown MBE 0 $0 (12) DBE-certified 14 $2,555 $2, (13) Women-owned DBE 8 $871 $ (14) Minority-owned DBE 6 $1,684 $1, (14) African American-owned DBE 1 $487 $ (16) Total Asian American-owned DBE 3 $444 $ (17) Asian-Pacific American-owned DBE 3 $444 $ (18) Subcontinent Asian American-owned DBE 0 $0 $0 0.0 (19) Hispanic American-owned DBE 2 $753 $ (20) Native American-owned DBE 0 $0 $0 0.0 (21) White male-owned DBE 0 $0 $0 0.0 (22) Unknown DBE-MBE 0 $0 (23) Unknown DBE 0 $0 Notes: Spreadsheet rounds numbers to nearest thousand dollars or tenth of one percent. WBE is white women-owned firms. Source: BBC Research and Consulting Disparity Analysis.

137 Figure E-5. Agency: NDOT Funding: Federal Type: All Time Period: October Role: Prime Contractors Region: Nevada Firm Type (a) Number of contracts (subcontracts) (b) Dollars (c) Estimated total dollars (d) Actual utilization (column c/c-1) (e) Utilization benchmark (availability) (f) Difference (column d-e) (g) Disparity index (d/e)x100 (1) All firms 301 $1,215,284 $1,215,284 (2) MBE/WBE 16 $18,645 $18, (3) WBE 1 $13 $ (4) MBE 15 $18,632 $18, (5) African American-owned 2 $9 $ (6) Total Asian American-owned 5 $317 $ (7) Asian-Pacific American-owned 5 $317 $ (8) Subcontinent Asian American-owned 0 $0 $ (9) Hispanic American-owned 3 $530 $ (10) Native American-owned 5 $17,776 $17, (11) Unknown MBE 0 $0 (12) DBE-certified 5 $581 $ (13) Women-owned DBE 1 $13 $ (14) Minority-owned DBE 3 $314 $ (14) African American-owned DBE 0 $0 $0 0.0 (16) Total Asian American-owned DBE 2 $181 $ (17) Asian-Pacific American-owned DBE 2 $181 $ (18) Subcontinent Asian American-owned DBE 0 $0 $0 0.0 (19) Hispanic American-owned DBE 1 $133 $ (20) Native American-owned DBE 0 $0 $0 0.0 (21) White male-owned DBE 1 $253 $ (22) Unknown DBE-MBE 0 $0 (23) Unknown DBE 0 $0 Notes: Spreadsheet rounds numbers to nearest thousand dollars or tenth of one percent. WBE is white women-owned firms. Source: BBC Research and Consulting Disparity Analysis.

138 Figure E-6. Agency: NDOT Funding: Federal Type: All Time Period: October 1999 to September 2005 Role: Prime Contractors Region: Nevada Firm Type (a) Number of contracts (subcontracts) (b) Dollars (c) Estimated total dollars (d) Actual utilization (column c/c-1) (e) Utilization benchmark (availability) (f) Difference (column d-e) (g) Disparity index (d/e)x100 (1) All firms 265 $1,066,441 $1,066,441 (2) MBE/WBE 11 $962 $ (3) WBE 1 $13 $ (4) MBE 10 $949 $ (5) African American-owned 2 $9 $ (6) Total Asian American-owned 3 $136 $ (7) Asian-Pacific American-owned 3 $136 $ (8) Subcontinent Asian American-owned 0 $0 $ (9) Hispanic American-owned 3 $530 $ (10) Native American-owned 2 $275 $ (11) Unknown MBE 0 $0 (12) DBE-certified 3 $399 $ (13) Women-owned DBE 1 $13 $ (14) Minority-owned DBE 1 $133 $ (14) African American-owned DBE 0 $0 $0 0.0 (16) Total Asian American-owned DBE 0 $0 $0 0.0 (17) Asian-Pacific American-owned DBE 0 $0 $0 0.0 (18) Subcontinent Asian American-owned DBE 0 $0 $0 0.0 (19) Hispanic American-owned DBE 1 $133 $ (20) Native American-owned DBE 0 $0 $0 0.0 (21) White male-owned DBE 1 $253 $ (22) Unknown DBE-MBE 0 $0 (23) Unknown DBE 0 $0 Notes: Spreadsheet rounds numbers to nearest thousand dollars or tenth of one percent. WBE is white women-owned firms. Source: BBC Research and Consulting Disparity Analysis.

139 Figure E-7. Agency: NDOT Funding: Federal Type: All Time Period: October 2005 to 2006 Role: Prime Contractors Region: Nevada Firm Type (a) Number of contracts (subcontracts) (b) Dollars (c) Estimated total dollars (d) Actual utilization (column c/c-1) (e) Utilization benchmark (availability) (f) Difference (column d-e) (g) Disparity index (d/e)x100 (1) All firms 36 $148,843 $148,843 (2) MBE/WBE 5 $17,683 $17, (3) WBE 0 $0 $ (4) MBE 5 $17,683 $17, (5) African American-owned 0 $0 $ (6) Total Asian American-owned 2 $181 $ (7) Asian-Pacific American-owned 2 $181 $ (8) Subcontinent Asian American-owned 0 $0 $ (9) Hispanic American-owned 0 $0 $ (10) Native American-owned 3 $17,502 $17, ,387.9 (11) Unknown MBE 0 $0 (12) DBE-certified 2 $181 $ (13) Women-owned DBE 0 $0 $0 0.0 (14) Minority-owned DBE 2 $181 $ (14) African American-owned DBE 0 $0 $0 0.0 (16) Total Asian American-owned DBE 2 $181 $ (17) Asian-Pacific American-owned DBE 2 $181 $ (18) Subcontinent Asian American-owned DBE 0 $0 $0 0.0 (19) Hispanic American-owned DBE 0 $0 $0 0.0 (20) Native American-owned DBE 0 $0 $0 0.0 (21) White male-owned DBE 0 $0 $0 0.0 (22) Unknown DBE-MBE 0 $0 (23) Unknown DBE 0 $0 Notes: Spreadsheet rounds numbers to nearest thousand dollars or tenth of one percent. WBE is white women-owned firms. Source: BBC Research and Consulting Disparity Analysis.

140 Figure E-8. Agency: NDOT Funding: Federal Type: All Time Period: October 1999 to 2006 Role: Subcontractors and Suppliers Region: Nevada Firm Type (a) Number of contracts (subcontracts) (b) Dollars (c) Estimated total dollars (d) Actual utilization (column c/c-1) (e) Utilization benchmark (availability) (f) Difference (column d-e) (g) Disparity index (d/e)x100 (1) All firms 1,111 $428,324 $428,324 (2) MBE/WBE 314 $113,184 $113, (3) WBE 220 $60,894 $60, (4) MBE 95 $52,445 $52, (5) African American-owned 4 $1,669 $1, (6) Total Asian American-owned 9 $2,804 $2, (7) Asian-Pacific American-owned 7 $1,707 $1, (8) Subcontinent Asian American-owned 2 $1,097 $1, (9) Hispanic American-owned 63 $41,352 $43, (10) Native American-owned 16 $4,245 $4, (11) Unknown MBE 3 $2,375 (12) DBE-certified 211 $59,658 $59, (13) Women-owned DBE 138 $30,636 $30, (14) Minority-owned DBE 67 $27,823 $27, (14) African American-owned DBE 4 $1,669 $1, (16) Total Asian American-owned DBE 4 $826 $ (17) Asian-Pacific American-owned DBE 4 $826 $ (18) Subcontinent Asian American-owned DBE 0 $0 $0 0.0 (19) Hispanic American-owned DBE 47 $23,151 $23, (20) Native American-owned DBE 12 $2,178 $2, (21) White male-owned DBE 6 $1,200 $1, (22) Unknown DBE-MBE 0 $0 (23) Unknown DBE 0 $0 Notes: Spreadsheet rounds numbers to nearest thousand dollars or tenth of one percent. WBE is white women-owned firms. Source: BBC Research and Consulting Disparity Analysis.

141 Figure E-9. Agency: NDOT Funding: Federal Type: All Time Period: October 1999 to September 2005 Role: Subcontractors and Suppliers Region: Nevada Firm Type (a) Number of contracts (subcontracts) (b) Dollars (c) Estimated total dollars (d) Actual utilization (column c/c-1) (e) Utilization benchmark (availability) (f) Difference (column d-e) (g) Disparity index (d/e)x100 (1) All firms 1,034 $387,117 $387,117 (2) MBE/WBE 290 $104,438 $104, (3) WBE 205 $55,377 $55, (4) MBE 86 $49,215 $49, (5) African American-owned 3 $1,182 $1, (6) Total Asian American-owned 8 $2,541 $2, (7) Asian-Pacific American-owned 6 $1,444 $1, (8) Subcontinent Asian American-owned 2 $1,097 $1, (9) Hispanic American-owned 57 $38,883 $40, (10) Native American-owned 15 $4,234 $4, (11) Unknown MBE 3 $2,375 (12) DBE-certified 199 $57,284 $57, (13) Women-owned DBE 130 $29,764 $29, (14) Minority-owned DBE 63 $26,320 $26, (14) African American-owned DBE 3 $1,182 $1, (16) Total Asian American-owned DBE 3 $563 $ (17) Asian-Pacific American-owned DBE 3 $563 $ (18) Subcontinent Asian American-owned DBE 0 $0 $0 0.0 (19) Hispanic American-owned DBE 45 $22,398 $22, (20) Native American-owned DBE 12 $2,178 $2, (21) White male-owned DBE 6 $1,200 $1, (22) Unknown DBE-MBE 0 $0 (23) Unknown DBE 0 $0 Notes: Spreadsheet rounds numbers to nearest thousand dollars or tenth of one percent. WBE is white women-owned firms. Source: BBC Research and Consulting Disparity Analysis.

142 Figure E-10. Agency: NDOT Funding: Federal Type: Construction Time Period: October 2005 to 2006 Role: Subcontractors and Suppliers Region: Nevada Firm Type (a) Number of contracts (subcontracts) (b) Dollars (c) Estimated total dollars (d) Actual utilization (column c/c-1) (e) Utilization benchmark (availability) (f) Difference (column d-e) (g) Disparity index (d/e)x100 (1) All firms 77 $41,207 $41,207 (2) MBE/WBE 24 $8,747 $8, (3) WBE 15 $5,516 $5, (4) MBE 9 $3,230 $3, (5) African American-owned 1 $487 $ (6) Total Asian American-owned 1 $263 $ (7) Asian-Pacific American-owned 1 $263 $ (8) Subcontinent Asian American-owned 0 $0 $ (9) Hispanic American-owned 6 $2,470 $2, (10) Native American-owned 1 $11 $ (11) Unknown MBE 0 $0 (12) DBE-certified 12 $2,374 $2, (13) Women-owned DBE 8 $871 $ (14) Minority-owned DBE 4 $1,503 $1, (14) African American-owned DBE 1 $487 $ (16) Total Asian American-owned DBE 1 $263 $ (17) Asian-Pacific American-owned DBE 1 $263 $ (18) Subcontinent Asian American-owned DBE 0 $0 $0 0.0 (19) Hispanic American-owned DBE 2 $753 $ (20) Native American-owned DBE 0 $0 $0 0.0 (21) White male-owned DBE 0 $0 $0 0.0 (22) Unknown DBE-MBE 0 $0 (23) Unknown DBE 0 $0 Notes: Spreadsheet rounds numbers to nearest thousand dollars or tenth of one percent. WBE is white women-owned firms. Source: BBC Research and Consulting Disparity Analysis.

143 Figure E-11. Agency: NDOT Funding: Federal Type: Construction Time Period: October 1999 to 2006 Role: Prime Contractors, Subcontractors and Suppliers Region: Nevada Firm Type (a) Number of contracts (subcontracts) (b) Dollars (c) Estimated total dollars (d) Actual utilization (column c/c-1) (e) Utilization benchmark (availability) (f) Difference (column d-e) (g) Disparity index (d/e)x100 (1) All firms 1,175 $1,445,762 $1,445,762 (2) MBE/WBE 291 $125,827 $125, (3) WBE 211 $60,054 $60, (4) MBE 80 $65,774 $65, (5) African American-owned 4 $1,669 $1, (6) Total Asian American-owned 4 $1,682 $1, (7) Asian-Pacific American-owned 2 $585 $ (8) Subcontinent Asian American-owned 2 $1,097 $1, (9) Hispanic American-owned 56 $39,564 $41, (10) Native American-owned 13 $20,484 $21, (11) Unknown MBE 3 $2,375 (12) DBE-certified 188 $56,334 $56, (13) Women-owned DBE 131 $30,005 $30, (14) Minority-owned DBE 52 $25,239 $25, (14) African American-owned DBE 4 $1,669 $1, (16) Total Asian American-owned DBE 1 $324 $ (17) Asian-Pacific American-owned DBE 1 $324 $ (18) Subcontinent Asian American-owned DBE 0 $0 $0 0.0 (19) Hispanic American-owned DBE 43 $22,606 $22, (20) Native American-owned DBE 4 $640 $ (21) White male-owned DBE 5 $1,090 $1, (22) Unknown DBE-MBE 0 $0 (23) Unknown DBE 0 $0 Notes: Spreadsheet rounds numbers to nearest thousand dollars or tenth of one percent. WBE is white women-owned firms. Source: BBC Research and Consulting Disparity Analysis.

144 Figure E-12. Agency: NDOT Funding: Federal Type: Construction Time Period: October 1999 to September 2005 Role: Prime Contractors, Subcontractors and Suppliers Region: Nevada Firm Type (a) Number of contracts (subcontracts) (b) Dollars (c) Estimated total dollars (d) Actual utilization (column c/c-1) (e) Utilization benchmark (availability) (f) Difference (column d-e) (g) Disparity index (d/e)x100 (1) All firms 1,090 $1,272,010 $1,272,010 (2) MBE/WBE 267 $100,654 $100, (3) WBE 196 $54,537 $54, (4) MBE 71 $46,117 $46, (5) African American-owned 3 $1,182 $1, (6) Total Asian American-owned 4 $1,682 $1, (7) Asian-Pacific American-owned 2 $585 $ (8) Subcontinent Asian American-owned 2 $1,097 $1, (9) Hispanic American-owned 52 $37,907 $39, (10) Native American-owned 9 $2,971 $3, (11) Unknown MBE 3 $2,375 (12) DBE-certified 177 $54,223 $54, (13) Women-owned DBE 123 $29,134 $29, (14) Minority-owned DBE 49 $23,999 $23, (14) African American-owned DBE 3 $1,182 $1, (16) Total Asian American-owned DBE 1 $324 $ (17) Asian-Pacific American-owned DBE 1 $324 $ (18) Subcontinent Asian American-owned DBE 0 $0 $0 0.0 (19) Hispanic American-owned DBE 41 $21,853 $21, (20) Native American-owned DBE 4 $640 $ (21) White male-owned DBE 5 $1,090 $1, (22) Unknown DBE-MBE 0 $0 (23) Unknown DBE 0 $0 Notes: Spreadsheet rounds numbers to nearest thousand dollars or tenth of one percent. WBE is white women-owned firms. Source: BBC Research and Consulting Disparity Analysis.

145 Figure E-13. Agency: NDOT Funding: Federal Type: Construction Time Period: October 2005 to 2006 Role: Prime Contractors, Subcontractors and Suppliers Region: Nevada Firm Type (a) Number of contracts (subcontracts) (b) Dollars (c) Estimated total dollars (d) Actual utilization (column c/c-1) (e) Utilization benchmark (availability) (f) Difference (column d-e) (g) Disparity index (d/e)x100 (1) All firms 85 $173,752 $173,752 (2) MBE/WBE 24 $25,173 $25, (3) WBE 15 $5,516 $5, (4) MBE 9 $19,656 $19, (5) African American-owned 1 $487 $ (6) Total Asian American-owned 0 $0 $ (7) Asian-Pacific American-owned 0 $0 $ (8) Subcontinent Asian American-owned 0 $0 $ (9) Hispanic American-owned 4 $1,657 $1, (10) Native American-owned 4 $17,512 $17, (11) Unknown MBE 0 $0 (12) DBE-certified 11 $2,111 $2, (13) Women-owned DBE 8 $871 $ (14) Minority-owned DBE 3 $1,240 $1, (14) African American-owned DBE 1 $487 $ (16) Total Asian American-owned DBE 0 $0 $0 0.0 (17) Asian-Pacific American-owned DBE 0 $0 $0 0.0 (18) Subcontinent Asian American-owned DBE 0 $0 $0 0.0 (19) Hispanic American-owned DBE 2 $753 $ (20) Native American-owned DBE 0 $0 $0 0.0 (21) White male-owned DBE 0 $0 $0 0.0 (22) Unknown DBE-MBE 0 $0 (23) Unknown DBE 0 $0 Notes: Spreadsheet rounds numbers to nearest thousand dollars or tenth of one percent. WBE is white women-owned firms. Source: BBC Research and Consulting Disparity Analysis.

146 Figure E-14. Agency: NDOT Funding: Federal Type: Construction Time Period: October Role: Prime Contractors Region: Nevada Firm Type (a) Number of contracts (subcontracts) (b) Dollars (c) Estimated total dollars (d) Actual utilization (column c/c-1) (e) Utilization benchmark (availability) (f) Difference (column d-e) (g) Disparity index (d/e)x100 (1) All firms 150 $1,031,857 $1,031,857 (2) MBE/WBE 6 $18,128 $18, (3) WBE 0 $0 $ (4) MBE 6 $18,128 $18, (5) African American-owned 0 $0 $ (6) Total Asian American-owned 0 $0 $ (7) Asian-Pacific American-owned 0 $0 $ (8) Subcontinent Asian American-owned 0 $0 $ (9) Hispanic American-owned 1 $352 $ (10) Native American-owned 5 $17,776 $17, (11) Unknown MBE 0 $0 (12) DBE-certified 0 $0 $0 0.0 (13) Women-owned DBE 0 $0 $0 0.0 (14) Minority-owned DBE 0 $0 $0 0.0 (14) African American-owned DBE 0 $0 $0 0.0 (16) Total Asian American-owned DBE 0 $0 $0 0.0 (17) Asian-Pacific American-owned DBE 0 $0 $0 0.0 (18) Subcontinent Asian American-owned DBE 0 $0 $0 0.0 (19) Hispanic American-owned DBE 0 $0 $0 0.0 (20) Native American-owned DBE 0 $0 $0 0.0 (21) White male-owned DBE 0 $0 $0 0.0 (22) Unknown DBE-MBE 0 $0 (23) Unknown DBE 0 $0 Notes: Spreadsheet rounds numbers to nearest thousand dollars or tenth of one percent. WBE is white women-owned firms. Source: BBC Research and Consulting Disparity Analysis.

147 Figure E-15. Agency: NDOT Funding: Federal Type: Construction Time Period: October 1999 to September 2005 Role: Prime Contractors Region: Nevada Firm Type (a) Number of contracts (subcontracts) (b) Dollars (c) Estimated total dollars (d) Actual utilization (column c/c-1) (e) Utilization benchmark (availability) (f) Difference (column d-e) (g) Disparity index (d/e)x100 (1) All firms 136 $897,805 $897,805 (2) MBE/WBE 3 $627 $ (3) WBE 0 $0 $ (4) MBE 3 $627 $ (5) African American-owned 0 $0 $ (6) Total Asian American-owned 0 $0 $ (7) Asian-Pacific American-owned 0 $0 $ (8) Subcontinent Asian American-owned 0 $0 $ (9) Hispanic American-owned 1 $352 $ (10) Native American-owned 2 $275 $ (11) Unknown MBE 0 $0 (12) DBE-certified 0 $0 $0 0.0 (13) Women-owned DBE 0 $0 $0 0.0 (14) Minority-owned DBE 0 $0 $0 0.0 (14) African American-owned DBE 0 $0 $0 0.0 (16) Total Asian American-owned DBE 0 $0 $0 0.0 (17) Asian-Pacific American-owned DBE 0 $0 $0 0.0 (18) Subcontinent Asian American-owned DBE 0 $0 $0 0.0 (19) Hispanic American-owned DBE 0 $0 $0 0.0 (20) Native American-owned DBE 0 $0 $0 0.0 (21) White male-owned DBE 0 $0 $0 0.0 (22) Unknown DBE-MBE 0 $0 (23) Unknown DBE 0 $0 Notes: Spreadsheet rounds numbers to nearest thousand dollars or tenth of one percent. WBE is white women-owned firms. Source: BBC Research and Consulting Disparity Analysis.

148 Figure E-16. Agency: NDOT Funding: Federal Type: Construction Time Period: October 2005 to 2006 Role: Prime Contractors Region: Nevada Firm Type (a) Number of contracts (subcontracts) (b) Dollars (c) Estimated total dollars (d) Actual utilization (column c/c-1) (e) Utilization benchmark (availability) (f) Difference (column d-e) (g) Disparity index (d/e)x100 (1) All firms 14 $134,051 $134,051 (2) MBE/WBE 3 $17,502 $17, (3) WBE 0 $0 $ (4) MBE 3 $17,502 $17, (5) African American-owned 0 $0 $ (6) Total Asian American-owned 0 $0 $ (7) Asian-Pacific American-owned 0 $0 $ (8) Subcontinent Asian American-owned 0 $0 $ (9) Hispanic American-owned 0 $0 $ (10) Native American-owned 3 $17,502 $17, ,649.0 (11) Unknown MBE 0 $0 (12) DBE-certified 0 $0 $0 0.0 (13) Women-owned DBE 0 $0 $0 0.0 (14) Minority-owned DBE 0 $0 $0 0.0 (14) African American-owned DBE 0 $0 $0 0.0 (16) Total Asian American-owned DBE 0 $0 $0 0.0 (17) Asian-Pacific American-owned DBE 0 $0 $0 0.0 (18) Subcontinent Asian American-owned DBE 0 $0 $0 0.0 (19) Hispanic American-owned DBE 0 $0 $0 0.0 (20) Native American-owned DBE 0 $0 $0 0.0 (21) White male-owned DBE 0 $0 $0 0.0 (22) Unknown DBE-MBE 0 $0 (23) Unknown DBE 0 $0 Notes: Spreadsheet rounds numbers to nearest thousand dollars or tenth of one percent. WBE is white women-owned firms. Source: BBC Research and Consulting Disparity Analysis.

149 Figure E-17. Agency: NDOT Funding: Federal Type: Construction Time Period: October 1999 to 2006 Role: Subcontractors and Suppliers Region: Nevada Firm Type (a) Number of contracts (subcontracts) (b) Dollars (c) Estimated total dollars (d) Actual utilization (column c/c-1) (e) Utilization benchmark (availability) (f) Difference (column d-e) (g) Disparity index (d/e)x100 (1) All firms 1,025 $413,906 $413,906 (2) MBE/WBE 285 $107,699 $107, (3) WBE 211 $60,054 $60, (4) MBE 74 $47,645 $47, (5) African American-owned 4 $1,669 $1, (6) Total Asian American-owned 4 $1,682 $1, (7) Asian-Pacific American-owned 2 $585 $ (8) Subcontinent Asian American-owned 2 $1,097 $1, (9) Hispanic American-owned 55 $39,212 $41, (10) Native American-owned 8 $2,707 $2, (11) Unknown MBE 3 $2,375 (12) DBE-certified 188 $56,334 $56, (13) Women-owned DBE 131 $30,005 $30, (14) Minority-owned DBE 52 $25,239 $25, (14) African American-owned DBE 4 $1,669 $1, (16) Total Asian American-owned DBE 1 $324 $ (17) Asian-Pacific American-owned DBE 1 $324 $ (18) Subcontinent Asian American-owned DBE 0 $0 $0 0.0 (19) Hispanic American-owned DBE 43 $22,606 $22, (20) Native American-owned DBE 4 $640 $ (21) White male-owned DBE 5 $1,090 $1, (22) Unknown DBE-MBE 0 $0 (23) Unknown DBE 0 $0 Notes: Spreadsheet rounds numbers to nearest thousand dollars or tenth of one percent. WBE is white women-owned firms. Source: BBC Research and Consulting Disparity Analysis.

150 Figure E-18. Agency: NDOT Funding: Federal Type: Construction Time Period: October 1999 to September 2005 Role: Subcontractors and Suppliers Region: Nevada Firm Type (a) Number of contracts (subcontracts) (b) Dollars (c) Estimated total dollars (d) Actual utilization (column c/c-1) (e) Utilization benchmark (availability) (f) Difference (column d-e) (g) Disparity index (d/e)x100 (1) All firms 954 $374,205 $374,205 (2) MBE/WBE 264 $100,028 $100, (3) WBE 196 $54,537 $54, (4) MBE 68 $45,491 $45, (5) African American-owned 3 $1,182 $1, (6) Total Asian American-owned 4 $1,682 $1, (7) Asian-Pacific American-owned 2 $585 $ (8) Subcontinent Asian American-owned 2 $1,097 $1, (9) Hispanic American-owned 51 $37,555 $39, (10) Native American-owned 7 $2,697 $2, (11) Unknown MBE 3 $2,375 (12) DBE-certified 177 $54,223 $54, (13) Women-owned DBE 123 $29,134 $29, (14) Minority-owned DBE 49 $23,999 $23, (14) African American-owned DBE 3 $1,182 $1, (16) Total Asian American-owned DBE 1 $324 $ (17) Asian-Pacific American-owned DBE 1 $324 $ (18) Subcontinent Asian American-owned DBE 0 $0 $0 0.0 (19) Hispanic American-owned DBE 41 $21,853 $21, (20) Native American-owned DBE 4 $640 $ (21) White male-owned DBE 5 $1,090 $1, (22) Unknown DBE-MBE 0 $0 (23) Unknown DBE 0 $0 Notes: Spreadsheet rounds numbers to nearest thousand dollars or tenth of one percent. WBE is white women-owned firms. Source: BBC Research and Consulting Disparity Analysis.

151 Figure E-19. Agency: NDOT Funding: Federal Type: Construction Time Period: October 2005 to 2006 Role: Subcontractors and Suppliers Region: Nevada Firm Type (a) Number of contracts (subcontracts) (b) Dollars (c) Estimated total dollars (d) Actual utilization (column c/c-1) (e) Utilization benchmark (availability) (f) Difference (column d-e) (g) Disparity index (d/e)x100 (1) All firms 71 $39,701 $39,701 (2) MBE/WBE 21 $7,671 $7, (3) WBE 15 $5,516 $5, (4) MBE 6 $2,155 $2, (5) African American-owned 1 $487 $ (6) Total Asian American-owned 0 $0 $ (7) Asian-Pacific American-owned 0 $0 $ (8) Subcontinent Asian American-owned 0 $0 $ (9) Hispanic American-owned 4 $1,657 $1, (10) Native American-owned 1 $11 $ (11) Unknown MBE 0 $0 (12) DBE-certified 11 $2,111 $2, (13) Women-owned DBE 8 $871 $ (14) Minority-owned DBE 3 $1,240 $1, (14) African American-owned DBE 1 $487 $ (16) Total Asian American-owned DBE 0 $0 $0 0.0 (17) Asian-Pacific American-owned DBE 0 $0 $0 0.0 (18) Subcontinent Asian American-owned DBE 0 $0 $0 0.0 (19) Hispanic American-owned DBE 2 $753 $ (20) Native American-owned DBE 0 $0 $0 0.0 (21) White male-owned DBE 0 $0 $0 0.0 (22) Unknown DBE-MBE 0 $0 (23) Unknown DBE 0 $0 Notes: Spreadsheet rounds numbers to nearest thousand dollars or tenth of one percent. WBE is white women-owned firms. Source: BBC Research and Consulting Disparity Analysis.

152 Figure E-20. Agency: NDOT Funding: Federal Type: Engineering Time Period: October 1999 to 2006 Role: Prime Contractors, Subcontractors and Suppliers Region: Nevada Firm Type (a) Number of contracts (subcontracts) (b) Dollars (c) Estimated total dollars (d) Actual utilization (column c/c-1) (e) Utilization benchmark (availability) (f) Difference (column d-e) (g) Disparity index (d/e)x100 (1) All firms 237 $197,846 $197,846 (2) MBE/WBE 39 $6,002 $6, (3) WBE 10 $853 $ (4) MBE 30 $5,303 $5, (5) African American-owned 2 $9 $ (6) Total Asian American-owned 10 $1,439 $1, (7) Asian-Pacific American-owned 10 $1,439 $1, (8) Subcontinent Asian American-owned 0 $0 $ (9) Hispanic American-owned 10 $2,318 $2, (10) Native American-owned 8 $1,537 $1, (11) Unknown MBE 0 $0 (12) DBE-certified 28 $3,905 $3, (13) Women-owned DBE 8 $644 $ (14) Minority-owned DBE 18 $2,899 $2, (14) African American-owned DBE 0 $0 $0 0.0 (16) Total Asian American-owned DBE 5 $683 $ (17) Asian-Pacific American-owned DBE 5 $683 $ (18) Subcontinent Asian American-owned DBE 0 $0 $0 0.0 (19) Hispanic American-owned DBE 5 $678 $ (20) Native American-owned DBE 8 $1,537 $1, (21) White male-owned DBE 2 $362 $ (22) Unknown DBE-MBE 0 $0 (23) Unknown DBE 0 $0 Notes: Spreadsheet rounds numbers to nearest thousand dollars or tenth of one percent. WBE is white women-owned firms. Source: BBC Research and Consulting Disparity Analysis.

153 Figure E-21. Agency: NDOT Funding: Federal Type: Engineering Time Period: October 1999 to September 2005 Role: Prime Contractors, Subcontractors and Suppliers Region: Nevada Firm Type (a) Number of contracts (subcontracts) (b) Dollars (c) Estimated total dollars (d) Actual utilization (column c/c-1) (e) Utilization benchmark (availability) (f) Difference (column d-e) (g) Disparity index (d/e)x100 (1) All firms 209 $181,548 $181,548 (2) MBE/WBE 34 $4,746 $4, (3) WBE 10 $853 $ (4) MBE 25 $4,047 $4, (5) African American-owned 2 $9 $ (6) Total Asian American-owned 7 $995 $ (7) Asian-Pacific American-owned 7 $995 $ (8) Subcontinent Asian American-owned 0 $0 $ (9) Hispanic American-owned 8 $1,506 $1, (10) Native American-owned 8 $1,537 $1, (11) Unknown MBE 0 $0 (12) DBE-certified 25 $3,461 $3, (13) Women-owned DBE 8 $644 $ (14) Minority-owned DBE 15 $2,454 $2, (14) African American-owned DBE 0 $0 $0 0.0 (16) Total Asian American-owned DBE 2 $239 $ (17) Asian-Pacific American-owned DBE 2 $239 $ (18) Subcontinent Asian American-owned DBE 0 $0 $0 0.0 (19) Hispanic American-owned DBE 5 $678 $ (20) Native American-owned DBE 8 $1,537 $1, (21) White male-owned DBE 2 $362 $ (22) Unknown DBE-MBE 0 $0 (23) Unknown DBE 0 $0 Notes: Spreadsheet rounds numbers to nearest thousand dollars or tenth of one percent. WBE is white women-owned firms. Source: BBC Research and Consulting Disparity Analysis.

154 Figure E-22. Agency: NDOT Funding: Federal Type: Engineering Time Period: October 2005 to 2006 Role: Prime Contractors, Subcontractors and Suppliers Region: Nevada Firm Type (a) Number of contracts (subcontracts) (b) Dollars (c) Estimated total dollars (d) Actual utilization (column c/c-1) (e) Utilization benchmark (availability) (f) Difference (column d-e) (g) Disparity index (d/e)x100 (1) All firms 28 $16,298 $16,298 (2) MBE/WBE 5 $1,257 $1, (3) WBE 0 $0 $ (4) MBE 5 $1,257 $1, (5) African American-owned 0 $0 $ (6) Total Asian American-owned 3 $444 $ (7) Asian-Pacific American-owned 3 $444 $ (8) Subcontinent Asian American-owned 0 $0 $ (9) Hispanic American-owned 2 $813 $ (10) Native American-owned 0 $0 $ (11) Unknown MBE 0 $0 (12) DBE-certified 3 $444 $ (13) Women-owned DBE 0 $0 $0 0.0 (14) Minority-owned DBE 3 $444 $ (14) African American-owned DBE 0 $0 $0 0.0 (16) Total Asian American-owned DBE 3 $444 $ (17) Asian-Pacific American-owned DBE 3 $444 $ (18) Subcontinent Asian American-owned DBE 0 $0 $0 0.0 (19) Hispanic American-owned DBE 0 $0 $0 0.0 (20) Native American-owned DBE 0 $0 $0 0.0 (21) White male-owned DBE 0 $0 $0 0.0 (22) Unknown DBE-MBE 0 $0 (23) Unknown DBE 0 $0 Notes: Spreadsheet rounds numbers to nearest thousand dollars or tenth of one percent. WBE is white women-owned firms. Source: BBC Research and Consulting Disparity Analysis.

155 Figure E-23. Agency: NDOT Funding: Federal Type: Engineering Time Period: October Role: Prime Contractors Region: Nevada Firm Type (a) Number of contracts (subcontracts) (b) Dollars (c) Estimated total dollars (d) Actual utilization (column c/c-1) (e) Utilization benchmark (availability) (f) Difference (column d-e) (g) Disparity index (d/e)x100 (1) All firms 151 $183,428 $183,428 (2) MBE/WBE 10 $517 $ (3) WBE 1 $13 $ (4) MBE 9 $504 $ (5) African American-owned 2 $9 $ (6) Total Asian American-owned 5 $317 $ (7) Asian-Pacific American-owned 5 $317 $ (8) Subcontinent Asian American-owned 0 $0 $ (9) Hispanic American-owned 2 $178 $ (10) Native American-owned 0 $0 $ (11) Unknown MBE 0 $0 (12) DBE-certified 5 $581 $ (13) Women-owned DBE 1 $13 $ (14) Minority-owned DBE 3 $314 $ (14) African American-owned DBE 0 $0 $0 0.0 (16) Total Asian American-owned DBE 2 $181 $ (17) Asian-Pacific American-owned DBE 2 $181 $ (18) Subcontinent Asian American-owned DBE 0 $0 $0 0.0 (19) Hispanic American-owned DBE 1 $133 $ (20) Native American-owned DBE 0 $0 $0 0.0 (21) White male-owned DBE 1 $253 $ (22) Unknown DBE-MBE 0 $0 (23) Unknown DBE 0 $0 Notes: Spreadsheet rounds numbers to nearest thousand dollars or tenth of one percent. WBE is white women-owned firms. Source: BBC Research and Consulting Disparity Analysis.

156 Figure E-24. Agency: NDOT Funding: Federal Type: Engineering Time Period: October 1999 to September 2005 Role: Prime Contractors Region: Nevada Firm Type (a) Number of contracts (subcontracts) (b) Dollars (c) Estimated total dollars (d) Actual utilization (column c/c-1) (e) Utilization benchmark (availability) (f) Difference (column d-e) (g) Disparity index (d/e)x100 (1) All firms 129 $168,636 $168,636 (2) MBE/WBE 8 $336 $ (3) WBE 1 $13 $ (4) MBE 7 $323 $ (5) African American-owned 2 $9 $ (6) Total Asian American-owned 3 $136 $ (7) Asian-Pacific American-owned 3 $136 $ (8) Subcontinent Asian American-owned 0 $0 $ (9) Hispanic American-owned 2 $178 $ (10) Native American-owned 0 $0 $ (11) Unknown MBE 0 $0 (12) DBE-certified 3 $399 $ (13) Women-owned DBE 1 $13 $ (14) Minority-owned DBE 1 $133 $ (14) African American-owned DBE 0 $0 $0 0.0 (16) Total Asian American-owned DBE 0 $0 $0 0.0 (17) Asian-Pacific American-owned DBE 0 $0 $0 0.0 (18) Subcontinent Asian American-owned DBE 0 $0 $0 0.0 (19) Hispanic American-owned DBE 1 $133 $ (20) Native American-owned DBE 0 $0 $0 0.0 (21) White male-owned DBE 1 $253 $ (22) Unknown DBE-MBE 0 $0 (23) Unknown DBE 0 $0 Notes: Spreadsheet rounds numbers to nearest thousand dollars or tenth of one percent. WBE is white women-owned firms. Source: BBC Research and Consulting Disparity Analysis.

157 Figure E-25. Agency: NDOT Funding: Federal Type: Engineering Time Period: October 2005 to 2006 Role: Prime Contractors Region: Nevada Firm Type (a) Number of contracts (subcontracts) (b) Dollars (c) Estimated total dollars (d) Actual utilization (column c/c-1) (e) Utilization benchmark (availability) (f) Difference (column d-e) (g) Disparity index (d/e)x100 (1) All firms 22 $14,792 $14,792 (2) MBE/WBE 2 $181 $ (3) WBE 0 $0 $ (4) MBE 2 $181 $ (5) African American-owned 0 $0 $ (6) Total Asian American-owned 2 $181 $ (7) Asian-Pacific American-owned 2 $181 $ (8) Subcontinent Asian American-owned 0 $0 $ (9) Hispanic American-owned 0 $0 $ (10) Native American-owned 0 $0 $ (11) Unknown MBE 0 $0 (12) DBE-certified 2 $181 $ (13) Women-owned DBE 0 $0 $0 0.0 (14) Minority-owned DBE 2 $181 $ (14) African American-owned DBE 0 $0 $0 0.0 (16) Total Asian American-owned DBE 2 $181 $ (17) Asian-Pacific American-owned DBE 2 $181 $ (18) Subcontinent Asian American-owned DBE 0 $0 $0 0.0 (19) Hispanic American-owned DBE 0 $0 $0 0.0 (20) Native American-owned DBE 0 $0 $0 0.0 (21) White male-owned DBE 0 $0 $0 0.0 (22) Unknown DBE-MBE 0 $0 (23) Unknown DBE 0 $0 Notes: Spreadsheet rounds numbers to nearest thousand dollars or tenth of one percent. WBE is white women-owned firms. Source: BBC Research and Consulting Disparity Analysis.

158 Figure E-26. Agency: NDOT Funding: Federal Type: Engineering Time Period: October 1999 to 2006 Role: Subcontractors and Suppliers Region: Nevada Firm Type (a) Number of contracts (subcontracts) (b) Dollars (c) Estimated total dollars (d) Actual utilization (column c/c-1) (e) Utilization benchmark (availability) (f) Difference (column d-e) (g) Disparity index (d/e)x100 (1) All firms 86 $14,418 $14,418 (2) MBE/WBE 29 $5,485 $5, (3) WBE 9 $840 $ (4) MBE 21 $4,800 $4, (5) African American-owned 0 $0 $ (6) Total Asian American-owned 5 $1,122 $1, (7) Asian-Pacific American-owned 5 $1,122 $1, (8) Subcontinent Asian American-owned 0 $0 $ (9) Hispanic American-owned 8 $2,140 $2, (10) Native American-owned 8 $1,537 $1, (11) Unknown MBE 0 $0 (12) DBE-certified 23 $3,324 $3, (13) Women-owned DBE 7 $631 $ (14) Minority-owned DBE 15 $2,584 $2, (14) African American-owned DBE 0 $0 $0 0.0 (16) Total Asian American-owned DBE 3 $502 $ (17) Asian-Pacific American-owned DBE 3 $502 $ (18) Subcontinent Asian American-owned DBE 0 $0 $0 0.0 (19) Hispanic American-owned DBE 4 $545 $ (20) Native American-owned DBE 8 $1,537 $1, (21) White male-owned DBE 1 $109 $ (22) Unknown DBE-MBE 0 $0 (23) Unknown DBE 0 $0 Notes: Spreadsheet rounds numbers to nearest thousand dollars or tenth of one percent. WBE is white women-owned firms. Source: BBC Research and Consulting Disparity Analysis.

159 Figure E-27. Agency: NDOT Funding: Federal Type: Engineering Time Period: October 1999 to September 2005 Role: Subcontractors and Suppliers Region: Nevada Firm Type (a) Number of contracts (subcontracts) (b) Dollars (c) Estimated total dollars (d) Actual utilization (column c/c-1) (e) Utilization benchmark (availability) (f) Difference (column d-e) (g) Disparity index (d/e)x100 (1) All firms 80 $12,912 $12,912 (2) MBE/WBE 26 $4,410 $4, (3) WBE 9 $840 $ (4) MBE 18 $3,724 $3, (5) African American-owned 0 $0 $ (6) Total Asian American-owned 4 $859 $ (7) Asian-Pacific American-owned 4 $859 $ (8) Subcontinent Asian American-owned 0 $0 $ (9) Hispanic American-owned 6 $1,328 $1, (10) Native American-owned 8 $1,537 $1, (11) Unknown MBE 0 $0 (12) DBE-certified 22 $3,061 $3, (13) Women-owned DBE 7 $631 $ (14) Minority-owned DBE 14 $2,321 $2, (14) African American-owned DBE 0 $0 $0 0.0 (16) Total Asian American-owned DBE 2 $239 $ (17) Asian-Pacific American-owned DBE 2 $239 $ (18) Subcontinent Asian American-owned DBE 0 $0 $0 0.0 (19) Hispanic American-owned DBE 4 $545 $ (20) Native American-owned DBE 8 $1,537 $1, (21) White male-owned DBE 1 $109 $ (22) Unknown DBE-MBE 0 $0 (23) Unknown DBE 0 $0 Notes: Spreadsheet rounds numbers to nearest thousand dollars or tenth of one percent. WBE is white women-owned firms. Source: BBC Research and Consulting Disparity Analysis.

160 Figure E-28. Agency: NDOT Funding: Federal Type: Engineering Time Period: October 2005 to 2006 Role: Subcontractors and Suppliers Region: Nevada Firm Type (a) Number of contracts (subcontracts) (b) Dollars (c) Estimated total dollars (d) Actual utilization (column c/c-1) (e) Utilization benchmark (availability) (f) Difference (column d-e) (g) Disparity index (d/e)x100 (1) All firms 6 $1,506 $1,506 (2) MBE/WBE 3 $1,076 $1, (3) WBE 0 $0 $ (4) MBE 3 $1,076 $1, (5) African American-owned 0 $0 $ (6) Total Asian American-owned 1 $263 $ (7) Asian-Pacific American-owned 1 $263 $ (8) Subcontinent Asian American-owned 0 $0 $ (9) Hispanic American-owned 2 $813 $ (10) Native American-owned 0 $0 $ (11) Unknown MBE 0 $0 (12) DBE-certified 1 $263 $ (13) Women-owned DBE 0 $0 $0 0.0 (14) Minority-owned DBE 1 $263 $ (14) African American-owned DBE 0 $0 $0 0.0 (16) Total Asian American-owned DBE 1 $263 $ (17) Asian-Pacific American-owned DBE 1 $263 $ (18) Subcontinent Asian American-owned DBE 0 $0 $0 0.0 (19) Hispanic American-owned DBE 0 $0 $0 0.0 (20) Native American-owned DBE 0 $0 $0 0.0 (21) White male-owned DBE 0 $0 $0 0.0 (22) Unknown DBE-MBE 0 $0 (23) Unknown DBE 0 $0 Notes: Spreadsheet rounds numbers to nearest thousand dollars or tenth of one percent. WBE is white women-owned firms. Source: BBC Research and Consulting Disparity Analysis.

161 Figure E-29. Agency: NDOT Funding: State Type: All Time Period: October 1999 to 2006 Role: Prime Contractors, Subcontractors and Suppliers Region: Nevada Firm Type (a) Number of contracts (subcontracts) (b) Dollars (c) Estimated total dollars (d) Actual utilization (column c/c-1) (e) Utilization benchmark (availability) (f) Difference (column d-e) (g) Disparity index (d/e)x100 (1) All firms 1,162 $533,148 $533,148 (2) MBE/WBE 158 $39,150 $39, (3) WBE 101 $12,859 $12, (4) MBE 57 $26,292 $26, (5) African American-owned 2 $264 $ (6) Total Asian American-owned 13 $3,365 $3, (7) Asian-Pacific American-owned 7 $787 $ (8) Subcontinent Asian American-owned 6 $2,578 $2, (9) Hispanic American-owned 20 $5,621 $5, (10) Native American-owned 22 $17,042 $17, (11) Unknown MBE 0 $0 (12) DBE-certified 74 $8,267 $8, (13) Women-owned DBE 48 $2,483 $2, (14) Minority-owned DBE 24 $5,720 $5, (14) African American-owned DBE 1 $178 $ (16) Total Asian American-owned DBE 2 $325 $ (17) Asian-Pacific American-owned DBE 2 $325 $ (18) Subcontinent Asian American-owned DBE 0 $0 $0 0.0 (19) Hispanic American-owned DBE 16 $4,569 $4, (20) Native American-owned DBE 5 $647 $ (21) White male-owned DBE 2 $65 $ (22) Unknown DBE-MBE 0 $0 (23) Unknown DBE 0 $0 Notes: Spreadsheet rounds numbers to nearest thousand dollars or tenth of one percent. WBE is white women-owned firms. Source: BBC Research and Consulting Disparity Analysis.

162 Figure E-30. Agency: NDOT Funding: State Type: All Time Period: October 1999 to September 2005 Role: Prime Contractors, Subcontractors and Suppliers Region: Nevada Firm Type (a) Number of contracts (subcontracts) (b) Dollars (c) Estimated total dollars (d) Actual utilization (column c/c-1) (e) Utilization benchmark (availability) (f) Difference (column d-e) (g) Disparity index (d/e)x100 (1) All firms 1,047 $451,392 $451,392 (2) MBE/WBE 145 $34,648 $34, (3) WBE 95 $11,311 $11, (4) MBE 50 $23,336 $23, (5) African American-owned 2 $264 $ (6) Total Asian American-owned 11 $1,879 $1, (7) Asian-Pacific American-owned 6 $577 $ (8) Subcontinent Asian American-owned 5 $1,303 $1, (9) Hispanic American-owned 18 $4,805 $4, (10) Native American-owned 19 $16,389 $16, (11) Unknown MBE 0 $0 (12) DBE-certified 71 $7,380 $7, (13) Women-owned DBE 46 $2,150 $2, (14) Minority-owned DBE 23 $5,165 $5, (14) African American-owned DBE 1 $178 $ (16) Total Asian American-owned DBE 2 $325 $ (17) Asian-Pacific American-owned DBE 2 $325 $ (18) Subcontinent Asian American-owned DBE 0 $0 $0 0.0 (19) Hispanic American-owned DBE 15 $4,015 $4, (20) Native American-owned DBE 5 $647 $ (21) White male-owned DBE 2 $65 $ (22) Unknown DBE-MBE 0 $0 (23) Unknown DBE 0 $0 Notes: Spreadsheet rounds numbers to nearest thousand dollars or tenth of one percent. WBE is white women-owned firms. Source: BBC Research and Consulting Disparity Analysis.

163 Figure E-31. Agency: NDOT Funding: State Type: All Time Period: October 2005 to 2006 Role: Prime Contractors, Subcontractors and Suppliers Region: Nevada Firm Type (a) Number of contracts (subcontracts) (b) Dollars (c) Estimated total dollars (d) Actual utilization (column c/c-1) (e) Utilization benchmark (availability) (f) Difference (column d-e) (g) Disparity index (d/e)x100 (1) All firms 115 $81,756 $81,756 (2) MBE/WBE 13 $4,503 $4, (3) WBE 6 $1,547 $1, (4) MBE 7 $2,955 $2, (5) African American-owned 0 $0 $ (6) Total Asian American-owned 2 $1,486 $1, (7) Asian-Pacific American-owned 1 $211 $ (8) Subcontinent Asian American-owned 1 $1,275 $1, (9) Hispanic American-owned 2 $816 $ (10) Native American-owned 3 $653 $ (11) Unknown MBE 0 $0 (12) DBE-certified 3 $888 $ (13) Women-owned DBE 2 $333 $ (14) Minority-owned DBE 1 $555 $ (14) African American-owned DBE 0 $0 $0 0.0 (16) Total Asian American-owned DBE 0 $0 $0 0.0 (17) Asian-Pacific American-owned DBE 0 $0 $0 0.0 (18) Subcontinent Asian American-owned DBE 0 $0 $0 0.0 (19) Hispanic American-owned DBE 1 $555 $ (20) Native American-owned DBE 0 $0 $0 0.0 (21) White male-owned DBE 0 $0 $0 0.0 (22) Unknown DBE-MBE 0 $0 (23) Unknown DBE 0 $0 Notes: Spreadsheet rounds numbers to nearest thousand dollars or tenth of one percent. WBE is white women-owned firms. Source: BBC Research and Consulting Disparity Analysis.

164 Figure E-32. Agency: NDOT Funding: State Type: All Time Period: October Role: Prime Contractors Region: Nevada Firm Type (a) Number of contracts (subcontracts) (b) Dollars (c) Estimated total dollars (d) Actual utilization (column c/c-1) (e) Utilization benchmark (availability) (f) Difference (column d-e) (g) Disparity index (d/e)x100 (1) All firms 533 $435,358 $435,358 (2) MBE/WBE 31 $19,521 $19, (3) WBE 7 $912 $ (4) MBE 24 $18,609 $18, (5) African American-owned 1 $86 $ (6) Total Asian American-owned 6 $602 $ (7) Asian-Pacific American-owned 6 $602 $ (8) Subcontinent Asian American-owned 0 $0 $ (9) Hispanic American-owned 6 $1,989 $1, (10) Native American-owned 11 $15,932 $15, (11) Unknown MBE 0 $0 (12) DBE-certified 9 $2,049 $2, (13) Women-owned DBE 1 $16 $ (14) Minority-owned DBE 6 $1,968 $1, (14) African American-owned DBE 0 $0 $0 0.0 (16) Total Asian American-owned DBE 1 $140 $ (17) Asian-Pacific American-owned DBE 1 $140 $ (18) Subcontinent Asian American-owned DBE 0 $0 $0 0.0 (19) Hispanic American-owned DBE 4 $1,680 $1, (20) Native American-owned DBE 1 $148 $ (21) White male-owned DBE 2 $65 $ (22) Unknown DBE-MBE 0 $0 (23) Unknown DBE 0 $0 Notes: Spreadsheet rounds numbers to nearest thousand dollars or tenth of one percent. WBE is white women-owned firms. Source: BBC Research and Consulting Disparity Analysis.

165 Figure E-33. Agency: NDOT Funding: State Type: All Time Period: October 1999 to September 2005 Role: Prime Contractors Region: Nevada Firm Type (a) Number of contracts (subcontracts) (b) Dollars (c) Estimated total dollars (d) Actual utilization (column c/c-1) (e) Utilization benchmark (availability) (f) Difference (column d-e) (g) Disparity index (d/e)x100 (1) All firms 450 $366,910 $366,910 (2) MBE/WBE 25 $18,096 $18, (3) WBE 6 $612 $ (4) MBE 19 $17,484 $17, (5) African American-owned 1 $86 $ (6) Total Asian American-owned 5 $391 $ (7) Asian-Pacific American-owned 5 $391 $ (8) Subcontinent Asian American-owned 0 $0 $ (9) Hispanic American-owned 5 $1,727 $1, (10) Native American-owned 8 $15,279 $15, (11) Unknown MBE 0 $0 (12) DBE-certified 9 $2,049 $2, (13) Women-owned DBE 1 $16 $ (14) Minority-owned DBE 6 $1,968 $1, (14) African American-owned DBE 0 $0 $0 0.0 (16) Total Asian American-owned DBE 1 $140 $ (17) Asian-Pacific American-owned DBE 1 $140 $ (18) Subcontinent Asian American-owned DBE 0 $0 $0 0.0 (19) Hispanic American-owned DBE 4 $1,680 $1, (20) Native American-owned DBE 1 $148 $ (21) White male-owned DBE 2 $65 $ (22) Unknown DBE-MBE 0 $0 (23) Unknown DBE 0 $0 Notes: Spreadsheet rounds numbers to nearest thousand dollars or tenth of one percent. WBE is white women-owned firms. Source: BBC Research and Consulting Disparity Analysis.

166 Figure E-34. Agency: NDOT Funding: State Type: All Time Period: October 2005 to 2006 Role: Prime Contractors Region: Nevada Firm Type (a) Number of contracts (subcontracts) (b) Dollars (c) Estimated total dollars (d) Actual utilization (column c/c-1) (e) Utilization benchmark (availability) (f) Difference (column d-e) (g) Disparity index (d/e)x100 (1) All firms 83 $68,448 $68,448 (2) MBE/WBE 6 $1,425 $1, (3) WBE 1 $300 $ (4) MBE 5 $1,125 $1, (5) African American-owned 0 $0 $ (6) Total Asian American-owned 1 $211 $ (7) Asian-Pacific American-owned 1 $211 $ (8) Subcontinent Asian American-owned 0 $0 $ (9) Hispanic American-owned 1 $261 $ (10) Native American-owned 3 $653 $ (11) Unknown MBE 0 $0 (12) DBE-certified 0 $0 $0 0.0 (13) Women-owned DBE 0 $0 $0 0.0 (14) Minority-owned DBE 0 $0 $0 0.0 (14) African American-owned DBE 0 $0 $0 0.0 (16) Total Asian American-owned DBE 0 $0 $0 0.0 (17) Asian-Pacific American-owned DBE 0 $0 $0 0.0 (18) Subcontinent Asian American-owned DBE 0 $0 $0 0.0 (19) Hispanic American-owned DBE 0 $0 $0 0.0 (20) Native American-owned DBE 0 $0 $0 0.0 (21) White male-owned DBE 0 $0 $0 0.0 (22) Unknown DBE-MBE 0 $0 (23) Unknown DBE 0 $0 Notes: Spreadsheet rounds numbers to nearest thousand dollars or tenth of one percent. WBE is white women-owned firms. Source: BBC Research and Consulting Disparity Analysis.

167 Figure E-35. Agency: NDOT Funding: State Type: All Time Period: October 1999 to 2006 Role: Subcontractors and Suppliers Region: Nevada Firm Type (a) Number of contracts (subcontracts) (b) Dollars (c) Estimated total dollars (d) Actual utilization (column c/c-1) (e) Utilization benchmark (availability) (f) Difference (column d-e) (g) Disparity index (d/e)x100 (1) All firms 629 $97,790 $97,790 (2) MBE/WBE 127 $19,630 $19, (3) WBE 94 $11,947 $11, (4) MBE 33 $7,683 $7, (5) African American-owned 1 $178 $ (6) Total Asian American-owned 7 $2,763 $2, (7) Asian-Pacific American-owned 1 $185 $ (8) Subcontinent Asian American-owned 6 $2,578 $2, (9) Hispanic American-owned 14 $3,632 $3, (10) Native American-owned 11 $1,110 $1, (11) Unknown MBE 0 $0 (12) DBE-certified 65 $6,218 $6, (13) Women-owned DBE 47 $2,467 $2, (14) Minority-owned DBE 18 $3,752 $3, (14) African American-owned DBE 1 $178 $ (16) Total Asian American-owned DBE 1 $185 $ (17) Asian-Pacific American-owned DBE 1 $185 $ (18) Subcontinent Asian American-owned DBE 0 $0 $0 0.0 (19) Hispanic American-owned DBE 12 $2,889 $2, (20) Native American-owned DBE 4 $500 $ (21) White male-owned DBE 0 $0 $0 0.0 (22) Unknown DBE-MBE 0 $0 (23) Unknown DBE 0 $0 Notes: Spreadsheet rounds numbers to nearest thousand dollars or tenth of one percent. WBE is white women-owned firms. Source: BBC Research and Consulting Disparity Analysis.

168 Figure E-36. Agency: NDOT Funding: State Type: All Time Period: October 1999 to September 2005 Role: Subcontractors and Suppliers Region: Nevada Firm Type (a) Number of contracts (subcontracts) (b) Dollars (c) Estimated total dollars (d) Actual utilization (column c/c-1) (e) Utilization benchmark (availability) (f) Difference (column d-e) (g) Disparity index (d/e)x100 (1) All firms 597 $84,482 $84,482 (2) MBE/WBE 120 $16,552 $16, (3) WBE 89 $10,700 $10, (4) MBE 31 $5,853 $5, (5) African American-owned 1 $178 $ (6) Total Asian American-owned 6 $1,488 $1, (7) Asian-Pacific American-owned 1 $185 $ (8) Subcontinent Asian American-owned 5 $1,303 $1, (9) Hispanic American-owned 13 $3,077 $3, (10) Native American-owned 11 $1,110 $1, (11) Unknown MBE 0 $0 (12) DBE-certified 62 $5,331 $5, (13) Women-owned DBE 45 $2,134 $2, (14) Minority-owned DBE 17 $3,197 $3, (14) African American-owned DBE 1 $178 $ (16) Total Asian American-owned DBE 1 $185 $ (17) Asian-Pacific American-owned DBE 1 $185 $ (18) Subcontinent Asian American-owned DBE 0 $0 $0 0.0 (19) Hispanic American-owned DBE 11 $2,334 $2, (20) Native American-owned DBE 4 $500 $ (21) White male-owned DBE 0 $0 $0 0.0 (22) Unknown DBE-MBE 0 $0 (23) Unknown DBE 0 $0 Notes: Spreadsheet rounds numbers to nearest thousand dollars or tenth of one percent. WBE is white women-owned firms. Source: BBC Research and Consulting Disparity Analysis.

169 Figure E-37. Agency: NDOT Funding: State Type: All Time Period: October 2005 to 2006 Role: Subcontractors and Suppliers Region: Nevada Firm Type (a) Number of contracts (subcontracts) (b) Dollars (c) Estimated total dollars (d) Actual utilization (column c/c-1) (e) Utilization benchmark (availability) (f) Difference (column d-e) (g) Disparity index (d/e)x100 (1) All firms 32 $13,308 $13,308 (2) MBE/WBE 7 $3,078 $3, (3) WBE 5 $1,247 $1, (4) MBE 2 $1,830 $1, (5) African American-owned 0 $0 $ (6) Total Asian American-owned 1 $1,275 $1, (7) Asian-Pacific American-owned 0 $0 $ (8) Subcontinent Asian American-owned 1 $1,275 $1, (9) Hispanic American-owned 1 $555 $ (10) Native American-owned 0 $0 $ (11) Unknown MBE 0 $0 (12) DBE-certified 3 $888 $ (13) Women-owned DBE 2 $333 $ (14) Minority-owned DBE 1 $555 $ (14) African American-owned DBE 0 $0 $0 0.0 (16) Total Asian American-owned DBE 0 $0 $0 0.0 (17) Asian-Pacific American-owned DBE 0 $0 $0 0.0 (18) Subcontinent Asian American-owned DBE 0 $0 $0 0.0 (19) Hispanic American-owned DBE 1 $555 $ (20) Native American-owned DBE 0 $0 $0 0.0 (21) White male-owned DBE 0 $0 $0 0.0 (22) Unknown DBE-MBE 0 $0 (23) Unknown DBE 0 $0 Notes: Spreadsheet rounds numbers to nearest thousand dollars or tenth of one percent. WBE is white women-owned firms. Source: BBC Research and Consulting Disparity Analysis.

170 Figure E-38. Agency: NDOT Funding: State Type: Construction Time Period: October 1999 to 2006 Role: Prime Contractors, Subcontractors and Suppliers Region: Nevada Firm Type (a) Number of contracts (subcontracts) (b) Dollars (c) Estimated total dollars (d) Actual utilization (column c/c-1) (e) Utilization benchmark (availability) (f) Difference (column d-e) (g) Disparity index (d/e)x100 (1) All firms 849 $432,707 $432,707 (2) MBE/WBE 137 $36,085 $36, (3) WBE 96 $12,226 $12, (4) MBE 41 $23,859 $23, (5) African American-owned 2 $264 $ (6) Total Asian American-owned 7 $2,763 $2, (7) Asian-Pacific American-owned 1 $185 $ (8) Subcontinent Asian American-owned 6 $2,578 $2, (9) Hispanic American-owned 15 $4,437 $4, (10) Native American-owned 17 $16,395 $16, (11) Unknown MBE 0 $0 (12) DBE-certified 62 $6,878 $6, (13) Women-owned DBE 47 $2,438 $2, (14) Minority-owned DBE 15 $4,440 $4, (14) African American-owned DBE 1 $178 $ (16) Total Asian American-owned DBE 1 $185 $ (17) Asian-Pacific American-owned DBE 1 $185 $ (18) Subcontinent Asian American-owned DBE 0 $0 $0 0.0 (19) Hispanic American-owned DBE 13 $4,077 $4, (20) Native American-owned DBE 0 $0 $0 0.0 (21) White male-owned DBE 0 $0 $0 0.0 (22) Unknown DBE-MBE 0 $0 (23) Unknown DBE 0 $0 Notes: Spreadsheet rounds numbers to nearest thousand dollars or tenth of one percent. WBE is white women-owned firms. Source: BBC Research and Consulting Disparity Analysis.

171 Figure E-39. Agency: NDOT Funding: State Type: Construction Time Period: October 1999 to September 2005 Role: Prime Contractors, Subcontractors and Suppliers Region: Nevada Firm Type (a) Number of contracts (subcontracts) (b) Dollars (c) Estimated total dollars (d) Actual utilization (column c/c-1) (e) Utilization benchmark (availability) (f) Difference (column d-e) (g) Disparity index (d/e)x100 (1) All firms 792 $367,514 $367,514 (2) MBE/WBE 126 $32,093 $32, (3) WBE 91 $10,978 $10, (4) MBE 35 $21,115 $21, (5) African American-owned 2 $264 $ (6) Total Asian American-owned 6 $1,488 $1, (7) Asian-Pacific American-owned 1 $185 $ (8) Subcontinent Asian American-owned 5 $1,303 $1, (9) Hispanic American-owned 13 $3,621 $3, (10) Native American-owned 14 $15,742 $15, (11) Unknown MBE 0 $0 (12) DBE-certified 59 $5,991 $5, (13) Women-owned DBE 45 $2,105 $2, (14) Minority-owned DBE 14 $3,885 $3, (14) African American-owned DBE 1 $178 $ (16) Total Asian American-owned DBE 1 $185 $ (17) Asian-Pacific American-owned DBE 1 $185 $ (18) Subcontinent Asian American-owned DBE 0 $0 $0 0.0 (19) Hispanic American-owned DBE 12 $3,523 $3, (20) Native American-owned DBE 0 $0 $0 0.0 (21) White male-owned DBE 0 $0 $0 0.0 (22) Unknown DBE-MBE 0 $0 (23) Unknown DBE 0 $0 Notes: Spreadsheet rounds numbers to nearest thousand dollars or tenth of one percent. WBE is white women-owned firms. Source: BBC Research and Consulting Disparity Analysis.

172 Figure E-40. Agency: NDOT Funding: State Type: Construction Time Period: October 2005 to 2006 Role: Prime Contractors, Subcontractors and Suppliers Region: Nevada Firm Type (a) Number of contracts (subcontracts) (b) Dollars (c) Estimated total dollars (d) Actual utilization (column c/c-1) (e) Utilization benchmark (availability) (f) Difference (column d-e) (g) Disparity index (d/e)x100 (1) All firms 57 $65,193 $65,193 (2) MBE/WBE 11 $3,992 $3, (3) WBE 5 $1,247 $1, (4) MBE 6 $2,745 $2, (5) African American-owned 0 $0 $ (6) Total Asian American-owned 1 $1,275 $1, (7) Asian-Pacific American-owned 0 $0 $ (8) Subcontinent Asian American-owned 1 $1,275 $1, (9) Hispanic American-owned 2 $816 $ (10) Native American-owned 3 $653 $ (11) Unknown MBE 0 $0 (12) DBE-certified 3 $888 $ (13) Women-owned DBE 2 $333 $ (14) Minority-owned DBE 1 $555 $ (14) African American-owned DBE 0 $0 $0 0.0 (16) Total Asian American-owned DBE 0 $0 $0 0.0 (17) Asian-Pacific American-owned DBE 0 $0 $0 0.0 (18) Subcontinent Asian American-owned DBE 0 $0 $0 0.0 (19) Hispanic American-owned DBE 1 $555 $ (20) Native American-owned DBE 0 $0 $0 0.0 (21) White male-owned DBE 0 $0 $0 0.0 (22) Unknown DBE-MBE 0 $0 (23) Unknown DBE 0 $0 Notes: Spreadsheet rounds numbers to nearest thousand dollars or tenth of one percent. WBE is white women-owned firms. Source: BBC Research and Consulting Disparity Analysis.

173 Figure E-41. Agency: NDOT Funding: State Type: Construction Time Period: October Role: Prime Contractors Region: Nevada Firm Type (a) Number of contracts (subcontracts) (b) Dollars (c) Estimated total dollars (d) Actual utilization (column c/c-1) (e) Utilization benchmark (availability) (f) Difference (column d-e) (g) Disparity index (d/e)x100 (1) All firms 241 $337,211 $337,211 (2) MBE/WBE 16 $17,644 $17, (3) WBE 3 $324 $ (4) MBE 13 $17,320 $17, (5) African American-owned 1 $86 $ (6) Total Asian American-owned 0 $0 $ (7) Asian-Pacific American-owned 0 $0 $ (8) Subcontinent Asian American-owned 0 $0 $ (9) Hispanic American-owned 2 $1,450 $1, (10) Native American-owned 10 $15,785 $15, (11) Unknown MBE 0 $0 (12) DBE-certified 2 $1,204 $1, (13) Women-owned DBE 1 $16 $ (14) Minority-owned DBE 1 $1,188 $1, (14) African American-owned DBE 0 $0 $0 0.0 (16) Total Asian American-owned DBE 0 $0 $0 0.0 (17) Asian-Pacific American-owned DBE 0 $0 $0 0.0 (18) Subcontinent Asian American-owned DBE 0 $0 $0 0.0 (19) Hispanic American-owned DBE 1 $1,188 $1, (20) Native American-owned DBE 0 $0 $0 0.0 (21) White male-owned DBE 0 $0 $0 0.0 (22) Unknown DBE-MBE 0 $0 (23) Unknown DBE 0 $0 Notes: Spreadsheet rounds numbers to nearest thousand dollars or tenth of one percent. WBE is white women-owned firms. Source: BBC Research and Consulting Disparity Analysis.

174 Figure E-42. Agency: NDOT Funding: State Type: Construction Time Period: October 1999 to September 2005 Role: Prime Contractors Region: Nevada Firm Type (a) Number of contracts (subcontracts) (b) Dollars (c) Estimated total dollars (d) Actual utilization (column c/c-1) (e) Utilization benchmark (availability) (f) Difference (column d-e) (g) Disparity index (d/e)x100 (1) All firms 215 $285,245 $285,245 (2) MBE/WBE 12 $16,730 $16, (3) WBE 3 $324 $ (4) MBE 9 $16,406 $16, (5) African American-owned 1 $86 $ (6) Total Asian American-owned 0 $0 $ (7) Asian-Pacific American-owned 0 $0 $ (8) Subcontinent Asian American-owned 0 $0 $ (9) Hispanic American-owned 1 $1,188 $1, (10) Native American-owned 7 $15,132 $15, (11) Unknown MBE 0 $0 (12) DBE-certified 2 $1,204 $1, (13) Women-owned DBE 1 $16 $ (14) Minority-owned DBE 1 $1,188 $1, (14) African American-owned DBE 0 $0 $0 0.0 (16) Total Asian American-owned DBE 0 $0 $0 0.0 (17) Asian-Pacific American-owned DBE 0 $0 $0 0.0 (18) Subcontinent Asian American-owned DBE 0 $0 $0 0.0 (19) Hispanic American-owned DBE 1 $1,188 $1, (20) Native American-owned DBE 0 $0 $0 0.0 (21) White male-owned DBE 0 $0 $0 0.0 (22) Unknown DBE-MBE 0 $0 (23) Unknown DBE 0 $0 Notes: Spreadsheet rounds numbers to nearest thousand dollars or tenth of one percent. WBE is white women-owned firms. Source: BBC Research and Consulting Disparity Analysis.

175 Figure E-43. Agency: NDOT Funding: State Type: Construction Time Period: October 2005 to 2006 Role: Prime Contractors Region: Nevada Firm Type (a) Number of contracts (subcontracts) (b) Dollars (c) Estimated total dollars (d) Actual utilization (column c/c-1) (e) Utilization benchmark (availability) (f) Difference (column d-e) (g) Disparity index (d/e)x100 (1) All firms 26 $51,966 $51,966 (2) MBE/WBE 4 $914 $ (3) WBE 0 $0 $ (4) MBE 4 $914 $ (5) African American-owned 0 $0 $ (6) Total Asian American-owned 0 $0 $ (7) Asian-Pacific American-owned 0 $0 $ (8) Subcontinent Asian American-owned 0 $0 $ (9) Hispanic American-owned 1 $261 $ (10) Native American-owned 3 $653 $ (11) Unknown MBE 0 $0 (12) DBE-certified 0 $0 $0 0.0 (13) Women-owned DBE 0 $0 $0 0.0 (14) Minority-owned DBE 0 $0 $0 0.0 (14) African American-owned DBE 0 $0 $0 0.0 (16) Total Asian American-owned DBE 0 $0 $0 0.0 (17) Asian-Pacific American-owned DBE 0 $0 $0 0.0 (18) Subcontinent Asian American-owned DBE 0 $0 $0 0.0 (19) Hispanic American-owned DBE 0 $0 $0 0.0 (20) Native American-owned DBE 0 $0 $0 0.0 (21) White male-owned DBE 0 $0 $0 0.0 (22) Unknown DBE-MBE 0 $0 (23) Unknown DBE 0 $0 Notes: Spreadsheet rounds numbers to nearest thousand dollars or tenth of one percent. WBE is white women-owned firms. Source: BBC Research and Consulting Disparity Analysis.

176 Figure E-44. Agency: NDOT Funding: State Type: Construction Time Period: October 1999 to 2006 Role: Subcontractors and Suppliers Region: Nevada Firm Type (a) Number of contracts (subcontracts) (b) Dollars (c) Estimated total dollars (d) Actual utilization (column c/c-1) (e) Utilization benchmark (availability) (f) Difference (column d-e) (g) Disparity index (d/e)x100 (1) All firms 608 $95,496 $95,496 (2) MBE/WBE 121 $18,441 $18, (3) WBE 93 $11,902 $11, (4) MBE 28 $6,539 $6, (5) African American-owned 1 $178 $ (6) Total Asian American-owned 7 $2,763 $2, (7) Asian-Pacific American-owned 1 $185 $ (8) Subcontinent Asian American-owned 6 $2,578 $2, (9) Hispanic American-owned 13 $2,988 $2, (10) Native American-owned 7 $610 $ (11) Unknown MBE 0 $0 (12) DBE-certified 60 $5,674 $5, (13) Women-owned DBE 46 $2,422 $2, (14) Minority-owned DBE 14 $3,252 $3, (14) African American-owned DBE 1 $178 $ (16) Total Asian American-owned DBE 1 $185 $ (17) Asian-Pacific American-owned DBE 1 $185 $ (18) Subcontinent Asian American-owned DBE 0 $0 $0 0.0 (19) Hispanic American-owned DBE 12 $2,889 $2, (20) Native American-owned DBE 0 $0 $0 0.0 (21) White male-owned DBE 0 $0 $0 0.0 (22) Unknown DBE-MBE 0 $0 (23) Unknown DBE 0 $0 Notes: Spreadsheet rounds numbers to nearest thousand dollars or tenth of one percent. WBE is white women-owned firms. Source: BBC Research and Consulting Disparity Analysis.

177 Figure E-45. Agency: NDOT Funding: State Type: Construction Time Period: October 1999 to September 2005 Role: Subcontractors and Suppliers Region: Nevada Firm Type (a) Number of contracts (subcontracts) (b) Dollars (c) Estimated total dollars (d) Actual utilization (column c/c-1) (e) Utilization benchmark (availability) (f) Difference (column d-e) (g) Disparity index (d/e)x100 (1) All firms 577 $82,268 $82,268 (2) MBE/WBE 114 $15,363 $15, (3) WBE 88 $10,655 $10, (4) MBE 26 $4,709 $4, (5) African American-owned 1 $178 $ (6) Total Asian American-owned 6 $1,488 $1, (7) Asian-Pacific American-owned 1 $185 $ (8) Subcontinent Asian American-owned 5 $1,303 $1, (9) Hispanic American-owned 12 $2,433 $2, (10) Native American-owned 7 $610 $ (11) Unknown MBE 0 $0 (12) DBE-certified 57 $4,786 $4, (13) Women-owned DBE 44 $2,089 $2, (14) Minority-owned DBE 13 $2,697 $2, (14) African American-owned DBE 1 $178 $ (16) Total Asian American-owned DBE 1 $185 $ (17) Asian-Pacific American-owned DBE 1 $185 $ (18) Subcontinent Asian American-owned DBE 0 $0 $0 0.0 (19) Hispanic American-owned DBE 11 $2,334 $2, (20) Native American-owned DBE 0 $0 $0 0.0 (21) White male-owned DBE 0 $0 $0 0.0 (22) Unknown DBE-MBE 0 $0 (23) Unknown DBE 0 $0 Notes: Spreadsheet rounds numbers to nearest thousand dollars or tenth of one percent. WBE is white women-owned firms. Source: BBC Research and Consulting Disparity Analysis.

178 Figure E-46. Agency: NDOT Funding: State Type: Construction Time Period: October 2005 to 2006 Role: Subcontractors and Suppliers Region: Nevada Firm Type (a) Number of contracts (subcontracts) (b) Dollars (c) Estimated total dollars (d) Actual utilization (column c/c-1) (e) Utilization benchmark (availability) (f) Difference (column d-e) (g) Disparity index (d/e)x100 (1) All firms 31 $13,228 $13,228 (2) MBE/WBE 7 $3,078 $3, (3) WBE 5 $1,247 $1, (4) MBE 2 $1,830 $1, (5) African American-owned 0 $0 $ (6) Total Asian American-owned 1 $1,275 $1, (7) Asian-Pacific American-owned 0 $0 $ (8) Subcontinent Asian American-owned 1 $1,275 $1, (9) Hispanic American-owned 1 $555 $ (10) Native American-owned 0 $0 $ (11) Unknown MBE 0 $0 (12) DBE-certified 3 $888 $ (13) Women-owned DBE 2 $333 $ (14) Minority-owned DBE 1 $555 $ (14) African American-owned DBE 0 $0 $0 0.0 (16) Total Asian American-owned DBE 0 $0 $0 0.0 (17) Asian-Pacific American-owned DBE 0 $0 $0 0.0 (18) Subcontinent Asian American-owned DBE 0 $0 $0 0.0 (19) Hispanic American-owned DBE 1 $555 $ (20) Native American-owned DBE 0 $0 $0 0.0 (21) White male-owned DBE 0 $0 $0 0.0 (22) Unknown DBE-MBE 0 $0 (23) Unknown DBE 0 $0 Notes: Spreadsheet rounds numbers to nearest thousand dollars or tenth of one percent. WBE is white women-owned firms. Source: BBC Research and Consulting Disparity Analysis.

179 Figure E-47. Agency: NDOT Funding: State Type: Engineering Time Period: October 1999 to 2006 Role: Prime Contractors, Subcontractors and Suppliers Region: Nevada Firm Type (a) Number of contracts (subcontracts) (b) Dollars (c) Estimated total dollars (d) Actual utilization (column c/c-1) (e) Utilization benchmark (availability) (f) Difference (column d-e) (g) Disparity index (d/e)x100 (1) All firms 313 $100,441 $100,441 (2) MBE/WBE 21 $3,065 $3, (3) WBE 5 $633 $ (4) MBE 16 $2,433 $2, (5) African American-owned 0 $0 $ (6) Total Asian American-owned 6 $602 $ (7) Asian-Pacific American-owned 6 $602 $ (8) Subcontinent Asian American-owned 0 $0 $ (9) Hispanic American-owned 5 $1,183 $1, (10) Native American-owned 5 $647 $ (11) Unknown MBE 0 $0 (12) DBE-certified 12 $1,389 $1, (13) Women-owned DBE 1 $45 $ (14) Minority-owned DBE 9 $1,279 $1, (14) African American-owned DBE 0 $0 $0 0.0 (16) Total Asian American-owned DBE 1 $140 $ (17) Asian-Pacific American-owned DBE 1 $140 $ (18) Subcontinent Asian American-owned DBE 0 $0 $0 0.0 (19) Hispanic American-owned DBE 3 $492 $ (20) Native American-owned DBE 5 $647 $ (21) White male-owned DBE 2 $65 $ (22) Unknown DBE-MBE 0 $0 (23) Unknown DBE 0 $0 Notes: Spreadsheet rounds numbers to nearest thousand dollars or tenth of one percent. WBE is white women-owned firms. Source: BBC Research and Consulting Disparity Analysis.

180 Figure E-48. Agency: NDOT Funding: State Type: Engineering Time Period: October 1999 to September 2005 Role: Prime Contractors, Subcontractors and Suppliers Region: Nevada Firm Type (a) Number of contracts (subcontracts) (b) Dollars (c) Estimated total dollars (d) Actual utilization (column c/c-1) (e) Utilization benchmark (availability) (f) Difference (column d-e) (g) Disparity index (d/e)x100 (1) All firms 255 $83,878 $83,878 (2) MBE/WBE 19 $2,555 $2, (3) WBE 4 $333 $ (4) MBE 15 $2,222 $2, (5) African American-owned 0 $0 $ (6) Total Asian American-owned 5 $391 $ (7) Asian-Pacific American-owned 5 $391 $ (8) Subcontinent Asian American-owned 0 $0 $ (9) Hispanic American-owned 5 $1,183 $1, (10) Native American-owned 5 $647 $ (11) Unknown MBE 0 $0 (12) DBE-certified 12 $1,389 $1, (13) Women-owned DBE 1 $45 $ (14) Minority-owned DBE 9 $1,279 $1, (14) African American-owned DBE 0 $0 $0 0.0 (16) Total Asian American-owned DBE 1 $140 $ (17) Asian-Pacific American-owned DBE 1 $140 $ (18) Subcontinent Asian American-owned DBE 0 $0 $0 0.0 (19) Hispanic American-owned DBE 3 $492 $ (20) Native American-owned DBE 5 $647 $ (21) White male-owned DBE 2 $65 $ (22) Unknown DBE-MBE 0 $0 (23) Unknown DBE 0 $0 Notes: Spreadsheet rounds numbers to nearest thousand dollars or tenth of one percent. WBE is white women-owned firms. Source: BBC Research and Consulting Disparity Analysis.

181 Figure E-49. Agency: NDOT Funding: State Type: Engineering Time Period: October 2005 to 2006 Role: Prime Contractors, Subcontractors and Suppliers Region: Nevada Firm Type (a) Number of contracts (subcontracts) (b) Dollars (c) Estimated total dollars (d) Actual utilization (column c/c-1) (e) Utilization benchmark (availability) (f) Difference (column d-e) (g) Disparity index (d/e)x100 (1) All firms 58 $16,562 $16,562 (2) MBE/WBE 2 $511 $ (3) WBE 1 $300 $ (4) MBE 1 $211 $ (5) African American-owned 0 $0 $ (6) Total Asian American-owned 1 $211 $ (7) Asian-Pacific American-owned 1 $211 $ (8) Subcontinent Asian American-owned 0 $0 $ (9) Hispanic American-owned 0 $0 $ (10) Native American-owned 0 $0 $ (11) Unknown MBE 0 $0 (12) DBE-certified 0 $0 $0 0.0 (13) Women-owned DBE 0 $0 $0 0.0 (14) Minority-owned DBE 0 $0 $0 0.0 (14) African American-owned DBE 0 $0 $0 0.0 (16) Total Asian American-owned DBE 0 $0 $0 0.0 (17) Asian-Pacific American-owned DBE 0 $0 $0 0.0 (18) Subcontinent Asian American-owned DBE 0 $0 $0 0.0 (19) Hispanic American-owned DBE 0 $0 $0 0.0 (20) Native American-owned DBE 0 $0 $0 0.0 (21) White male-owned DBE 0 $0 $0 0.0 (22) Unknown DBE-MBE 0 $0 (23) Unknown DBE 0 $0 Notes: Spreadsheet rounds numbers to nearest thousand dollars or tenth of one percent. WBE is white women-owned firms. Source: BBC Research and Consulting Disparity Analysis.

182 Figure E-50. Agency: NDOT Funding: State Type: Engineering Time Period: October Role: Prime Contractors Region: Nevada Firm Type (a) Number of contracts (subcontracts) (b) Dollars (c) Estimated total dollars (d) Actual utilization (column c/c-1) (e) Utilization benchmark (availability) (f) Difference (column d-e) (g) Disparity index (d/e)x100 (1) All firms 292 $98,147 $98,147 (2) MBE/WBE 15 $1,877 $1, (3) WBE 4 $588 $ (4) MBE 11 $1,289 $1, (5) African American-owned 0 $0 $ (6) Total Asian American-owned 6 $602 $ (7) Asian-Pacific American-owned 6 $602 $ (8) Subcontinent Asian American-owned 0 $0 $ (9) Hispanic American-owned 4 $539 $ (10) Native American-owned 1 $148 $ (11) Unknown MBE 0 $0 (12) DBE-certified 7 $845 $ (13) Women-owned DBE 0 $0 $0 0.0 (14) Minority-owned DBE 5 $780 $ (14) African American-owned DBE 0 $0 $0 0.0 (16) Total Asian American-owned DBE 1 $140 $ (17) Asian-Pacific American-owned DBE 1 $140 $ (18) Subcontinent Asian American-owned DBE 0 $0 $0 0.0 (19) Hispanic American-owned DBE 3 $492 $ (20) Native American-owned DBE 1 $148 $ (21) White male-owned DBE 2 $65 $ (22) Unknown DBE-MBE 0 $0 (23) Unknown DBE 0 $0 Notes: Spreadsheet rounds numbers to nearest thousand dollars or tenth of one percent. WBE is white women-owned firms. Source: BBC Research and Consulting Disparity Analysis.

183 Figure E-51. Agency: NDOT Funding: State Type: Engineering Time Period: October 1999 to September 2005 Role: Prime Contractors Region: Nevada Firm Type (a) Number of contracts (subcontracts) (b) Dollars (c) Estimated total dollars (d) Actual utilization (column c/c-1) (e) Utilization benchmark (availability) (f) Difference (column d-e) (g) Disparity index (d/e)x100 (1) All firms 235 $81,665 $81,665 (2) MBE/WBE 13 $1,366 $1, (3) WBE 3 $288 $ (4) MBE 10 $1,078 $1, (5) African American-owned 0 $0 $ (6) Total Asian American-owned 5 $391 $ (7) Asian-Pacific American-owned 5 $391 $ (8) Subcontinent Asian American-owned 0 $0 $ (9) Hispanic American-owned 4 $539 $ (10) Native American-owned 1 $148 $ (11) Unknown MBE 0 $0 (12) DBE-certified 7 $845 $ (13) Women-owned DBE 0 $0 $0 0.0 (14) Minority-owned DBE 5 $780 $ (14) African American-owned DBE 0 $0 $0 0.0 (16) Total Asian American-owned DBE 1 $140 $ (17) Asian-Pacific American-owned DBE 1 $140 $ (18) Subcontinent Asian American-owned DBE 0 $0 $0 0.0 (19) Hispanic American-owned DBE 3 $492 $ (20) Native American-owned DBE 1 $148 $ (21) White male-owned DBE 2 $65 $ (22) Unknown DBE-MBE 0 $0 (23) Unknown DBE 0 $0 Notes: Spreadsheet rounds numbers to nearest thousand dollars or tenth of one percent. WBE is white women-owned firms. Source: BBC Research and Consulting Disparity Analysis.

184 Figure E-52. Agency: NDOT Funding: State Type: Engineering Time Period: October 2005 to 2006 Role: Prime Contractors Region: Nevada Firm Type (a) Number of contracts (subcontracts) (b) Dollars (c) Estimated total dollars (d) Actual utilization (column c/c-1) (e) Utilization benchmark (availability) (f) Difference (column d-e) (g) Disparity index (d/e)x100 (1) All firms 57 $16,482 $16,482 (2) MBE/WBE 2 $511 $ (3) WBE 1 $300 $ (4) MBE 1 $211 $ (5) African American-owned 0 $0 $ (6) Total Asian American-owned 1 $211 $ (7) Asian-Pacific American-owned 1 $211 $ (8) Subcontinent Asian American-owned 0 $0 $ (9) Hispanic American-owned 0 $0 $ (10) Native American-owned 0 $0 $ (11) Unknown MBE 0 $0 (12) DBE-certified 0 $0 $0 0.0 (13) Women-owned DBE 0 $0 $0 0.0 (14) Minority-owned DBE 0 $0 $0 0.0 (14) African American-owned DBE 0 $0 $0 0.0 (16) Total Asian American-owned DBE 0 $0 $0 0.0 (17) Asian-Pacific American-owned DBE 0 $0 $0 0.0 (18) Subcontinent Asian American-owned DBE 0 $0 $0 0.0 (19) Hispanic American-owned DBE 0 $0 $0 0.0 (20) Native American-owned DBE 0 $0 $0 0.0 (21) White male-owned DBE 0 $0 $0 0.0 (22) Unknown DBE-MBE 0 $0 (23) Unknown DBE 0 $0 Notes: Spreadsheet rounds numbers to nearest thousand dollars or tenth of one percent. WBE is white women-owned firms. Source: BBC Research and Consulting Disparity Analysis.

185 Figure E-53. Agency: NDOT Funding: State Type: Engineering Time Period: October 1999 to 2006 Role: Subcontractors and Suppliers Region: Nevada Firm Type (a) Number of contracts (subcontracts) (b) Dollars (c) Estimated total dollars (d) Actual utilization (column c/c-1) (e) Utilization benchmark (availability) (f) Difference (column d-e) (g) Disparity index (d/e)x100 (1) All firms 21 $2,293 $2,293 (2) MBE/WBE 6 $1,189 $1, (3) WBE 1 $45 $ (4) MBE 5 $1,144 $1, (5) African American-owned 0 $0 $ (6) Total Asian American-owned 0 $0 $ (7) Asian-Pacific American-owned 0 $0 $ (8) Subcontinent Asian American-owned 0 $0 $ (9) Hispanic American-owned 1 $644 $ (10) Native American-owned 4 $500 $ ,589.5 (11) Unknown MBE 0 $0 (12) DBE-certified 5 $544 $ (13) Women-owned DBE 1 $45 $ (14) Minority-owned DBE 4 $500 $ (14) African American-owned DBE 0 $0 $0 0.0 (16) Total Asian American-owned DBE 0 $0 $0 0.0 (17) Asian-Pacific American-owned DBE 0 $0 $0 0.0 (18) Subcontinent Asian American-owned DBE 0 $0 $0 0.0 (19) Hispanic American-owned DBE 0 $0 $0 0.0 (20) Native American-owned DBE 4 $500 $ (21) White male-owned DBE 0 $0 $0 0.0 (22) Unknown DBE-MBE 0 $0 (23) Unknown DBE 0 $0 Notes: Spreadsheet rounds numbers to nearest thousand dollars or tenth of one percent. WBE is white women-owned firms. Source: BBC Research and Consulting Disparity Analysis.

186 Figure E-54. Agency: NDOT Funding: State Type: Engineering Time Period: October 1999 to September 2005 Role: Subcontractors and Suppliers Region: Nevada Firm Type (a) Number of contracts (subcontracts) (b) Dollars (c) Estimated total dollars (d) Actual utilization (column c/c-1) (e) Utilization benchmark (availability) (f) Difference (column d-e) (g) Disparity index (d/e)x100 (1) All firms 20 $2,214 $2,214 (2) MBE/WBE 6 $1,189 $1, (3) WBE 1 $45 $ (4) MBE 5 $1,144 $1, (5) African American-owned 0 $0 $ (6) Total Asian American-owned 0 $0 $ (7) Asian-Pacific American-owned 0 $0 $ (8) Subcontinent Asian American-owned 0 $0 $ (9) Hispanic American-owned 1 $644 $ (10) Native American-owned 4 $500 $ ,589.5 (11) Unknown MBE 0 $0 (12) DBE-certified 5 $544 $ (13) Women-owned DBE 1 $45 $ (14) Minority-owned DBE 4 $500 $ (14) African American-owned DBE 0 $0 $0 0.0 (16) Total Asian American-owned DBE 0 $0 $0 0.0 (17) Asian-Pacific American-owned DBE 0 $0 $0 0.0 (18) Subcontinent Asian American-owned DBE 0 $0 $0 0.0 (19) Hispanic American-owned DBE 0 $0 $0 0.0 (20) Native American-owned DBE 4 $500 $ (21) White male-owned DBE 0 $0 $0 0.0 (22) Unknown DBE-MBE 0 $0 (23) Unknown DBE 0 $0 Notes: Spreadsheet rounds numbers to nearest thousand dollars or tenth of one percent. WBE is white women-owned firms. Source: BBC Research and Consulting Disparity Analysis.

187 Figure E-55. Agency: NDOT Funding: State Type: Engineering Time Period: October 2005 to 2006 Role: Subcontractors and Suppliers Region: Nevada Firm Type (a) Number of contracts (subcontracts) (b) Dollars (c) Estimated total dollars (d) Actual utilization (column c/c-1) (e) Utilization benchmark (availability) (f) Difference (column d-e) (g) Disparity index (d/e)x100 (1) All firms 1 $80 $80 (2) MBE/WBE 0 $0 $ (3) WBE 0 $0 $ (4) MBE 0 $0 $ (5) African American-owned 0 $0 $ (6) Total Asian American-owned 0 $0 $ (7) Asian-Pacific American-owned 0 $0 $ (8) Subcontinent Asian American-owned 0 $0 $ (9) Hispanic American-owned 0 $0 $ (10) Native American-owned 0 $0 $ (11) Unknown MBE 0 $0 (12) DBE-certified 0 $0 $0 0.0 (13) Women-owned DBE 0 $0 $0 0.0 (14) Minority-owned DBE 0 $0 $0 0.0 (14) African American-owned DBE 0 $0 $0 0.0 (16) Total Asian American-owned DBE 0 $0 $0 0.0 (17) Asian-Pacific American-owned DBE 0 $0 $0 0.0 (18) Subcontinent Asian American-owned DBE 0 $0 $0 0.0 (19) Hispanic American-owned DBE 0 $0 $0 0.0 (20) Native American-owned DBE 0 $0 $0 0.0 (21) White male-owned DBE 0 $0 $0 0.0 (22) Unknown DBE-MBE 0 $0 (23) Unknown DBE 0 $0 Notes: Spreadsheet rounds numbers to nearest thousand dollars or tenth of one percent. WBE is white women-owned firms. Source: BBC Research and Consulting Disparity Analysis.

188 Figure E-56. Agency: NDOT Funding: Federal Type: All Time Period: October 1999 to September 2000 Role: Prime Contractors, Subcontractors and Suppliers Region: Nevada Firm Type (a) Number of contracts (subcontracts) (b) Dollars (c) Estimated total dollars (d) Actual utilization (column c/c-1) (e) Utilization benchmark (availability) (f) Difference (column d-e) (g) Disparity index (d/e)x100 (1) All firms 194 $189,210 $189,210 (2) MBE/WBE 40 $15,683 $15, (3) WBE 26 $7,196 $7, (4) MBE 14 $8,487 $8, (5) African American-owned 3 $31 $ (6) Total Asian American-owned 0 $0 $ (7) Asian-Pacific American-owned 0 $0 $ (8) Subcontinent Asian American-owned 0 $0 $ (9) Hispanic American-owned 7 $5,980 $5, (10) Native American-owned 4 $2,477 $2, (11) Unknown MBE 0 $0 (12) DBE-certified 27 $10,768 $10, (13) Women-owned DBE 18 $5,809 $5, (14) Minority-owned DBE 9 $4,959 $4, (14) African American-owned DBE 1 $22 $ (16) Total Asian American-owned DBE 0 $0 $0 0.0 (17) Asian-Pacific American-owned DBE 0 $0 $0 0.0 (18) Subcontinent Asian American-owned DBE 0 $0 $0 0.0 (19) Hispanic American-owned DBE 5 $4,302 $4, (20) Native American-owned DBE 3 $635 $ (21) White male-owned DBE 0 $0 $0 0.0 (22) Unknown DBE-MBE 0 $0 (23) Unknown DBE 0 $0 Notes: Spreadsheet rounds numbers to nearest thousand dollars or tenth of one percent. WBE is white women-owned firms. Source: BBC Research and Consulting Disparity Analysis.

189 Figure E-57. Agency: NDOT Funding: Federal Type: All Time Period: October 2000 to September 2001 Role: Prime Contractors, Subcontractors and Suppliers Region: Nevada Firm Type (a) Number of contracts (subcontracts) (b) Dollars (c) Estimated total dollars (d) Actual utilization (column c/c-1) (e) Utilization benchmark (availability) (f) Difference (column d-e) (g) Disparity index (d/e)x100 (1) All firms 170 $133,779 $133,779 (2) MBE/WBE 31 $8,104 $8, (3) WBE 22 $4,977 $4, (4) MBE 9 $3,126 $3, (5) African American-owned 0 $0 $ (6) Total Asian American-owned 3 $1,246 $1, (7) Asian-Pacific American-owned 2 $239 $ (8) Subcontinent Asian American-owned 1 $1,007 $1, (9) Hispanic American-owned 3 $1,419 $1, (10) Native American-owned 3 $461 $ (11) Unknown MBE 0 $0 (12) DBE-certified 24 $7,195 $7, (13) Women-owned DBE 12 $3,904 $3, (14) Minority-owned DBE 7 $1,952 $1, (14) African American-owned DBE 0 $0 $0 0.0 (16) Total Asian American-owned DBE 2 $239 $ (17) Asian-Pacific American-owned DBE 2 $239 $ (18) Subcontinent Asian American-owned DBE 0 $0 $0 0.0 (19) Hispanic American-owned DBE 3 $1,419 $1, (20) Native American-owned DBE 2 $294 $ (21) White male-owned DBE 5 $1,339 $1, (22) Unknown DBE-MBE 0 $0 (23) Unknown DBE 0 $0 Notes: Spreadsheet rounds numbers to nearest thousand dollars or tenth of one percent. WBE is white women-owned firms. Source: BBC Research and Consulting Disparity Analysis.

190 Figure E-58. Agency: NDOT Funding: Federal Type: All Time Period: October 2001 to September 2002 Role: Prime Contractors, Subcontractors and Suppliers Region: Nevada Firm Type (a) Number of contracts (subcontracts) (b) Dollars (c) Estimated total dollars (d) Actual utilization (column c/c-1) (e) Utilization benchmark (availability) (f) Difference (column d-e) (g) Disparity index (d/e)x100 (1) All firms 187 $157,829 $157,829 (2) MBE/WBE 44 $5,907 $5, (3) WBE 33 $3,848 $3, (4) MBE 11 $2,059 $2, (5) African American-owned 0 $0 $ (6) Total Asian American-owned 1 $324 $ (7) Asian-Pacific American-owned 1 $324 $ (8) Subcontinent Asian American-owned 0 $0 $ (9) Hispanic American-owned 7 $1,175 $1, (10) Native American-owned 3 $559 $ (11) Unknown MBE 0 $0 (12) DBE-certified 33 $3,518 $3, (13) Women-owned DBE 23 $1,566 $1, (14) Minority-owned DBE 8 $1,839 $1, (14) African American-owned DBE 0 $0 $0 0.0 (16) Total Asian American-owned DBE 1 $324 $ (17) Asian-Pacific American-owned DBE 1 $324 $ (18) Subcontinent Asian American-owned DBE 0 $0 $0 0.0 (19) Hispanic American-owned DBE 6 $1,130 $1, (20) Native American-owned DBE 1 $385 $ (21) White male-owned DBE 2 $113 $ (22) Unknown DBE-MBE 0 $0 (23) Unknown DBE 0 $0 Notes: Spreadsheet rounds numbers to nearest thousand dollars or tenth of one percent. WBE is white women-owned firms. Source: BBC Research and Consulting Disparity Analysis.

191 Figure E-59. Agency: NDOT Funding: Federal Type: All Time Period: October 2002 to September 2003 Role: Prime Contractors, Subcontractors and Suppliers Region: Nevada Firm Type (a) Number of contracts (subcontracts) (b) Dollars (c) Estimated total dollars (d) Actual utilization (column c/c-1) (e) Utilization benchmark (availability) (f) Difference (column d-e) (g) Disparity index (d/e)x100 (1) All firms 275 $397,892 $397,892 (2) MBE/WBE 71 $29,390 $29, (3) WBE 45 $16,804 $16, (4) MBE 27 $12,740 $12, (5) African American-owned 2 $1,160 $1, (6) Total Asian American-owned 4 $451 $ (7) Asian-Pacific American-owned 4 $451 $ (8) Subcontinent Asian American-owned 0 $0 $ (9) Hispanic American-owned 17 $10,286 $10, (10) Native American-owned 3 $192 $ (11) Unknown MBE 1 $650 (12) DBE-certified 45 $19,480 $19, (13) Women-owned DBE 29 $10,937 $10, (14) Minority-owned DBE 16 $8,544 $8, (14) African American-owned DBE 2 $1,160 $1, (16) Total Asian American-owned DBE 0 $0 $0 0.0 (17) Asian-Pacific American-owned DBE 0 $0 $0 0.0 (18) Subcontinent Asian American-owned DBE 0 $0 $0 0.0 (19) Hispanic American-owned DBE 12 $7,340 $7, (20) Native American-owned DBE 2 $44 $ (21) White male-owned DBE 0 $0 $0 0.0 (22) Unknown DBE-MBE 0 $0 (23) Unknown DBE 0 $0 Notes: Spreadsheet rounds numbers to nearest thousand dollars or tenth of one percent. WBE is white women-owned firms. Source: BBC Research and Consulting Disparity Analysis.

192 Figure E-60 Agency: NDOT Funding: Federal Type: All Time Period: October 2003 to September 2004 Role: Prime Contractors, Subcontractors and Suppliers Region: Nevada Firm Type (a) Number of contracts (subcontracts) (b) Dollars (c) Estimated total dollars (d) Actual utilization (column c/c-1) (e) Utilization benchmark (availability) (f) Difference (column d-e) (g) Disparity index (d/e)x100 (1) All firms 231 $187,936 $187,936 (2) MBE/WBE 56 $11,669 $11, (3) WBE 38 $6,195 $6, (4) MBE 18 $5,474 $5, (5) African American-owned 0 $0 $ (6) Total Asian American-owned 3 $655 $ (7) Asian-Pacific American-owned 2 $565 $ (8) Subcontinent Asian American-owned 1 $90 $ (9) Hispanic American-owned 12 $4,105 $4, (10) Native American-owned 3 $714 $ (11) Unknown MBE 0 $0 (12) DBE-certified 39 $6,576 $6, (13) Women-owned DBE 25 $3,480 $3, (14) Minority-owned DBE 14 $3,095 $3, (14) African American-owned DBE 0 $0 $0 0.0 (16) Total Asian American-owned DBE 0 $0 $0 0.0 (17) Asian-Pacific American-owned DBE 0 $0 $0 0.0 (18) Subcontinent Asian American-owned DBE 0 $0 $0 0.0 (19) Hispanic American-owned DBE 11 $2,382 $2, (20) Native American-owned DBE 3 $714 $ (21) White male-owned DBE 0 $0 $0 0.0 (22) Unknown DBE-MBE 0 $0 (23) Unknown DBE 0 $0 Notes: Spreadsheet rounds numbers to nearest thousand dollars or tenth of one percent. WBE is white women-owned firms. Source: BBC Research and Consulting Disparity Analysis.

193 Figure E-61. Agency: NDOT Funding: Federal Type: All Time Period: October 2004 to September 2005 Role: Prime Contractors, Subcontractors and Suppliers Region: Nevada Firm Type (a) Number of contracts (subcontracts) (b) Dollars (c) Estimated total dollars (d) Actual utilization (column c/c-1) (e) Utilization benchmark (availability) (f) Difference (column d-e) (g) Disparity index (d/e)x100 (1) All firms 242 $386,912 $386,912 (2) MBE/WBE 59 $34,648 $34, (3) WBE 42 $16,370 $16, (4) MBE 17 $18,278 $18, (5) African American-owned 0 $0 $ (6) Total Asian American-owned 0 $0 $ (7) Asian-Pacific American-owned 0 $0 $ (8) Subcontinent Asian American-owned 0 $0 $ (9) Hispanic American-owned 14 $16,447 $18, (10) Native American-owned 1 $106 $ (11) Unknown MBE 2 $1,725 (12) DBE-certified 34 $10,146 $10, (13) Women-owned DBE 24 $4,081 $4, (14) Minority-owned DBE 10 $6,065 $6, (14) African American-owned DBE 0 $0 $0 0.0 (16) Total Asian American-owned DBE 0 $0 $0 0.0 (17) Asian-Pacific American-owned DBE 0 $0 $0 0.0 (18) Subcontinent Asian American-owned DBE 0 $0 $0 0.0 (19) Hispanic American-owned DBE 9 $5,959 $5, (20) Native American-owned DBE 1 $106 $ (21) White male-owned DBE 0 $0 $0 0.0 (22) Unknown DBE-MBE 0 $0 (23) Unknown DBE 0 $0 Notes: Spreadsheet rounds numbers to nearest thousand dollars or tenth of one percent. WBE is white women-owned firms. Source: BBC Research and Consulting Disparity Analysis.

194 Figure E-62. Agency: NDOT Funding: Federal Type: All Time Period: October 2005 to September 2006 Role: Prime Contractors, Subcontractors and Suppliers Region: Nevada Firm Type (a) Number of contracts (subcontracts) (b) Dollars (c) Estimated total dollars (d) Actual utilization (column c/c-1) (e) Utilization benchmark (availability) (f) Difference (column d-e) (g) Disparity index (d/e)x100 (1) All firms 113 $190,050 $190,050 (2) MBE/WBE 29 $26,430 $26, (3) WBE 15 $5,516 $5, (4) MBE 14 $20,913 $20, (5) African American-owned 1 $487 $ (6) Total Asian American-owned 3 $444 $ (7) Asian-Pacific American-owned 3 $444 $ (8) Subcontinent Asian American-owned 0 $0 $ (9) Hispanic American-owned 6 $2,470 $2, (10) Native American-owned 4 $17,512 $17, (11) Unknown MBE 0 $0 (12) DBE-certified 14 $2,555 $2, (13) Women-owned DBE 8 $871 $ (14) Minority-owned DBE 6 $1,684 $1, (14) African American-owned DBE 1 $487 $ (16) Total Asian American-owned DBE 3 $444 $ (17) Asian-Pacific American-owned DBE 3 $444 $ (18) Subcontinent Asian American-owned DBE 0 $0 $0 0.0 (19) Hispanic American-owned DBE 2 $753 $ (20) Native American-owned DBE 0 $0 $0 0.0 (21) White male-owned DBE 0 $0 $0 0.0 (22) Unknown DBE-MBE 0 $0 (23) Unknown DBE 0 $0 Notes: Spreadsheet rounds numbers to nearest thousand dollars or tenth of one percent. WBE is white women-owned firms. Source: BBC Research and Consulting Disparity Analysis.

195 Figure E-63. Agency: NDOT Funding: Federal Type: All Time Period: October 2006 to December 2006 Role: Prime Contractors, Subcontractors and Suppliers Region: Nevada Firm Type (a) Number of contracts (subcontracts) (b) Dollars (c) Estimated total dollars (d) Actual utilization (column c/c-1) (e) Utilization benchmark (availability) (f) Difference (column d-e) (g) Disparity index (d/e)x100 (1) All firms 0 $0 $0 (2) MBE/WBE 0 $0 $ (3) WBE 0 $0 $ (4) MBE 0 $0 $ (5) African American-owned 0 $0 $ (6) Total Asian American-owned 0 $0 $ (7) Asian-Pacific American-owned 0 $0 $ (8) Subcontinent Asian American-owned 0 $0 $ (9) Hispanic American-owned 0 $0 $ (10) Native American-owned 0 $0 $ (11) Unknown MBE 0 $0 (12) DBE-certified 0 $0 $0 0.0 (13) Women-owned DBE 0 $0 $0 0.0 (14) Minority-owned DBE 0 $0 $0 0.0 (14) African American-owned DBE 0 $0 $0 0.0 (16) Total Asian American-owned DBE 0 $0 $0 0.0 (17) Asian-Pacific American-owned DBE 0 $0 $0 0.0 (18) Subcontinent Asian American-owned DBE 0 $0 $0 0.0 (19) Hispanic American-owned DBE 0 $0 $0 0.0 (20) Native American-owned DBE 0 $0 $0 0.0 (21) White male-owned DBE 0 $0 $0 0.0 (22) Unknown DBE-MBE 0 $0 (23) Unknown DBE 0 $0 Notes: Spreadsheet rounds numbers to nearest thousand dollars or tenth of one percent. WBE is white women-owned firms. Source: BBC Research and Consulting Disparity Analysis.

196 Figure E-64. Agency: NDOT Funding: State Type: All Time Period: October 1999 to September 2000 Role: Prime Contractors, Subcontractors and Suppliers Region: Nevada Firm Type (a) Number of contracts (subcontracts) (b) Dollars (c) Estimated total dollars (d) Actual utilization (column c/c-1) (e) Utilization benchmark (availability) (f) Difference (column d-e) (g) Disparity index (d/e)x100 (1) All firms 188 $93,495 $93,495 (2) MBE/WBE 23 $1,234 $1, (3) WBE 18 $743 $ (4) MBE 5 $491 $ (5) African American-owned 1 $178 $ (6) Total Asian American-owned 0 $0 $ (7) Asian-Pacific American-owned 0 $0 $ (8) Subcontinent Asian American-owned 0 $0 $ (9) Hispanic American-owned 1 $47 $ (10) Native American-owned 3 $267 $ (11) Unknown MBE 0 $0 (12) DBE-certified 18 $873 $ (13) Women-owned DBE 13 $382 $ (14) Minority-owned DBE 5 $491 $ (14) African American-owned DBE 1 $178 $ (16) Total Asian American-owned DBE 0 $0 $0 0.0 (17) Asian-Pacific American-owned DBE 0 $0 $0 0.0 (18) Subcontinent Asian American-owned DBE 0 $0 $0 0.0 (19) Hispanic American-owned DBE 1 $47 $ (20) Native American-owned DBE 3 $267 $ (21) White male-owned DBE 0 $0 $0 0.0 (22) Unknown DBE-MBE 0 $0 (23) Unknown DBE 0 $0 Notes: Spreadsheet rounds numbers to nearest thousand dollars or tenth of one percent. WBE is white women-owned firms. Source: BBC Research and Consulting Disparity Analysis.

197 Figure E-65. Agency: NDOT Funding: State Type: All Time Period: October 2000 to September 2001 Role: Prime Contractors, Subcontractors and Suppliers Region: Nevada Firm Type (a) Number of contracts (subcontracts) (b) Dollars (c) Estimated total dollars (d) Actual utilization (column c/c-1) (e) Utilization benchmark (availability) (f) Difference (column d-e) (g) Disparity index (d/e)x100 (1) All firms 152 $33,056 $33,056 (2) MBE/WBE 15 $1,724 $1, (3) WBE 6 $617 $ (4) MBE 9 $1,107 $1, (5) African American-owned 1 $86 $ (6) Total Asian American-owned 0 $0 $ (7) Asian-Pacific American-owned 0 $0 $ (8) Subcontinent Asian American-owned 0 $0 $ (9) Hispanic American-owned 3 $434 $ (10) Native American-owned 5 $587 $ (11) Unknown MBE 0 $0 (12) DBE-certified 7 $796 $ (13) Women-owned DBE 3 $352 $ (14) Minority-owned DBE 3 $434 $ (14) African American-owned DBE 0 $0 $0 0.0 (16) Total Asian American-owned DBE 0 $0 $0 0.0 (17) Asian-Pacific American-owned DBE 0 $0 $0 0.0 (18) Subcontinent Asian American-owned DBE 0 $0 $0 0.0 (19) Hispanic American-owned DBE 3 $434 $ (20) Native American-owned DBE 0 $0 $0 0.0 (21) White male-owned DBE 1 $10 $ (22) Unknown DBE-MBE 0 $0 (23) Unknown DBE 0 $0 Notes: Spreadsheet rounds numbers to nearest thousand dollars or tenth of one percent. WBE is white women-owned firms. Source: BBC Research and Consulting Disparity Analysis.

198 Figure E-66. Agency: NDOT Funding: State Type: All Time Period: October 2001 to September 2002 Role: Prime Contractors, Subcontractors and Suppliers Region: Nevada Firm Type (a) Number of contracts (subcontracts) (b) Dollars (c) Estimated total dollars (d) Actual utilization (column c/c-1) (e) Utilization benchmark (availability) (f) Difference (column d-e) (g) Disparity index (d/e)x100 (1) All firms 175 $70,509 $70,509 (2) MBE/WBE 28 $2,954 $2, (3) WBE 22 $1,163 $1, (4) MBE 6 $1,790 $1, (5) African American-owned 0 $0 $ (6) Total Asian American-owned 2 $254 $ (7) Asian-Pacific American-owned 1 $140 $ (8) Subcontinent Asian American-owned 1 $114 $ (9) Hispanic American-owned 4 $1,536 $1, (10) Native American-owned 0 $0 $ (11) Unknown MBE 0 $0 (12) DBE-certified 20 $2,564 $2, (13) Women-owned DBE 14 $832 $ (14) Minority-owned DBE 5 $1,676 $1, (14) African American-owned DBE 0 $0 $0 0.0 (16) Total Asian American-owned DBE 1 $140 $ (17) Asian-Pacific American-owned DBE 1 $140 $ (18) Subcontinent Asian American-owned DBE 0 $0 $0 0.0 (19) Hispanic American-owned DBE 4 $1,536 $1, (20) Native American-owned DBE 0 $0 $0 0.0 (21) White male-owned DBE 1 $55 $ (22) Unknown DBE-MBE 0 $0 (23) Unknown DBE 0 $0 Notes: Spreadsheet rounds numbers to nearest thousand dollars or tenth of one percent. WBE is white women-owned firms. Source: BBC Research and Consulting Disparity Analysis.

199 Figure E-67. Agency: NDOT Funding: State Type: All Time Period: October 2002 to September 2003 Role: Prime Contractors, Subcontractors and Suppliers Region: Nevada Firm Type (a) Number of contracts (subcontracts) (b) Dollars (c) Estimated total dollars (d) Actual utilization (column c/c-1) (e) Utilization benchmark (availability) (f) Difference (column d-e) (g) Disparity index (d/e)x100 (1) All firms 167 $56,507 $56,507 (2) MBE/WBE 24 $4,113 $4, (3) WBE 14 $883 $ (4) MBE 10 $3,230 $3, (5) African American-owned 0 $0 $ (6) Total Asian American-owned 2 $1,071 $1, (7) Asian-Pacific American-owned 0 $0 $ (8) Subcontinent Asian American-owned 2 $1,071 $1, (9) Hispanic American-owned 4 $384 $ (10) Native American-owned 4 $1,776 $1, (11) Unknown MBE 0 $0 (12) DBE-certified 12 $490 $ (13) Women-owned DBE 9 $153 $ (14) Minority-owned DBE 3 $337 $ (14) African American-owned DBE 0 $0 $0 0.0 (16) Total Asian American-owned DBE 0 $0 $0 0.0 (17) Asian-Pacific American-owned DBE 0 $0 $0 0.0 (18) Subcontinent Asian American-owned DBE 0 $0 $0 0.0 (19) Hispanic American-owned DBE 3 $337 $ (20) Native American-owned DBE 0 $0 $0 0.0 (21) White male-owned DBE 0 $0 $0 0.0 (22) Unknown DBE-MBE 0 $0 (23) Unknown DBE 0 $0 Notes: Spreadsheet rounds numbers to nearest thousand dollars or tenth of one percent. WBE is white women-owned firms. Source: BBC Research and Consulting Disparity Analysis.

200 Figure E-68. Agency: NDOT Funding: State Type: All Time Period: October 2003 to September 2004 Role: Subcontractors and Suppliers Region: Nevada Firm Type (a) Number of contracts (subcontracts) (b) Dollars (c) Estimated total dollars (d) Actual utilization (column c/c-1) (e) Utilization benchmark (availability) (f) Difference (column d-e) (g) Disparity index (d/e)x100 (1) All firms 182 $63,292 $63,292 (2) MBE/WBE 22 $7,256 $7, (3) WBE 11 $2,019 $2, (4) MBE 11 $5,236 $5, (5) African American-owned 0 $0 $ (6) Total Asian American-owned 4 $422 $ (7) Asian-Pacific American-owned 3 $390 $ (8) Subcontinent Asian American-owned 1 $32 $ (9) Hispanic American-owned 3 $803 $ (10) Native American-owned 4 $4,012 $4, (11) Unknown MBE 0 $0 (12) DBE-certified 4 $468 $ (13) Women-owned DBE 1 $4 $4 0.0 (14) Minority-owned DBE 3 $464 $ (14) African American-owned DBE 0 $0 $0 0.0 (16) Total Asian American-owned DBE 1 $185 $ (17) Asian-Pacific American-owned DBE 1 $185 $ (18) Subcontinent Asian American-owned DBE 0 $0 $0 0.0 (19) Hispanic American-owned DBE 1 $60 $ (20) Native American-owned DBE 1 $219 $ (21) White male-owned DBE 0 $0 $0 0.0 (22) Unknown DBE-MBE 0 $0 (23) Unknown DBE 0 $0 Notes: Spreadsheet rounds numbers to nearest thousand dollars or tenth of one percent. WBE is white women-owned firms. Source: BBC Research and Consulting Disparity Analysis.

201 Figure E-69. Agency: NDOT Funding: State Type: All Time Period: October 2004 to September 2005 Role: Prime Contractors, Subcontractors and Suppliers Region: Nevada Firm Type (a) Number of contracts (subcontracts) (b) Dollars (c) Estimated total dollars (d) Actual utilization (column c/c-1) (e) Utilization benchmark (availability) (f) Difference (column d-e) (g) Disparity index (d/e)x100 (1) All firms 183 $134,532 $134,532 (2) MBE/WBE 33 $17,367 $17, (3) WBE 24 $5,886 $5, (4) MBE 9 $11,481 $11, (5) African American-owned 0 $0 $ (6) Total Asian American-owned 3 $133 $ (7) Asian-Pacific American-owned 2 $46 $ (8) Subcontinent Asian American-owned 1 $86 $ (9) Hispanic American-owned 3 $1,600 $1, (10) Native American-owned 3 $9,748 $9, (11) Unknown MBE 0 $0 (12) DBE-certified 10 $2,189 $2, (13) Women-owned DBE 6 $428 $ (14) Minority-owned DBE 4 $1,761 $1, (14) African American-owned DBE 0 $0 $0 0.0 (16) Total Asian American-owned DBE 0 $0 $0 0.0 (17) Asian-Pacific American-owned DBE 0 $0 $0 0.0 (18) Subcontinent Asian American-owned DBE 0 $0 $0 0.0 (19) Hispanic American-owned DBE 3 $1,600 $1, (20) Native American-owned DBE 1 $161 $ (21) White male-owned DBE 0 $0 $0 0.0 (22) Unknown DBE-MBE 0 $0 (23) Unknown DBE 0 $0 Notes: Spreadsheet rounds numbers to nearest thousand dollars or tenth of one percent. WBE is white women-owned firms. Source: BBC Research and Consulting Disparity Analysis.

202 Figure E-70. Agency: NDOT Funding: State Type: All Time Period: October 2005 to September 2006 Role: Prime Contractors, Subcontractors and Suppliers Region: Nevada Firm Type (a) Number of contracts (subcontracts) (b) Dollars (c) Estimated total dollars (d) Actual utilization (column c/c-1) (e) Utilization benchmark (availability) (f) Difference (column d-e) (g) Disparity index (d/e)x100 (1) All firms 100 $78,992 $78,992 (2) MBE/WBE 12 $4,304 $4, (3) WBE 6 $1,547 $1, (4) MBE 6 $2,756 $2, (5) African American-owned 0 $0 $ (6) Total Asian American-owned 2 $1,486 $1, (7) Asian-Pacific American-owned 1 $211 $ (8) Subcontinent Asian American-owned 1 $1,275 $1, (9) Hispanic American-owned 2 $816 $ (10) Native American-owned 2 $454 $ (11) Unknown MBE 0 $0 (12) DBE-certified 3 $888 $ (13) Women-owned DBE 2 $333 $ (14) Minority-owned DBE 1 $555 $ (14) African American-owned DBE 0 $0 $0 0.0 (16) Total Asian American-owned DBE 0 $0 $0 0.0 (17) Asian-Pacific American-owned DBE 0 $0 $0 0.0 (18) Subcontinent Asian American-owned DBE 0 $0 $0 0.0 (19) Hispanic American-owned DBE 1 $555 $ (20) Native American-owned DBE 0 $0 $0 0.0 (21) White male-owned DBE 0 $0 $0 0.0 (22) Unknown DBE-MBE 0 $0 (23) Unknown DBE 0 $0 Notes: Spreadsheet rounds numbers to nearest thousand dollars or tenth of one percent. WBE is white women-owned firms. Source: BBC Research and Consulting Disparity Analysis.

203 Figure E-71. Agency: NDOT Funding: State Type: All Time Period: October 2006 to September 2007 Role: Prime Contractors, Subcontractors and Suppliers Region: Nevada Firm Type (a) Number of contracts (subcontracts) (b) Dollars (c) Estimated total dollars (d) Actual utilization (column c/c-1) (e) Utilization benchmark (availability) (f) Difference (column d-e) (g) Disparity index (d/e)x100 (1) All firms 15 $2,764 $2,764 (2) MBE/WBE 1 $199 $ (3) WBE 0 $0 $ (4) MBE 1 $199 $ (5) African American-owned 0 $0 $ (6) Total Asian American-owned 0 $0 $ (7) Asian-Pacific American-owned 0 $0 $ (8) Subcontinent Asian American-owned 0 $0 $ (9) Hispanic American-owned 0 $0 $ (10) Native American-owned 1 $199 $ (11) Unknown MBE 0 $0 (12) DBE-certified 0 $0 $0 0.0 (13) Women-owned DBE 0 $0 $0 0.0 (14) Minority-owned DBE 0 $0 $0 0.0 (14) African American-owned DBE 0 $0 $0 0.0 (16) Total Asian American-owned DBE 0 $0 $0 0.0 (17) Asian-Pacific American-owned DBE 0 $0 $0 0.0 (18) Subcontinent Asian American-owned DBE 0 $0 $0 0.0 (19) Hispanic American-owned DBE 0 $0 $0 0.0 (20) Native American-owned DBE 0 $0 $0 0.0 (21) White male-owned DBE 0 $0 $0 0.0 (22) Unknown DBE-MBE 0 $0 (23) Unknown DBE 0 $0 Notes: Spreadsheet rounds numbers to nearest thousand dollars or tenth of one percent. WBE is white women-owned firms. Source: BBC Research and Consulting Disparity Analysis.

204 Figure E-72. Agency: NDOT Funding: All Type: Engineering Time Period: October 1999 to 2006 Role: Prime Contractors, Subcontractors and Suppliers Region: Nevada Firm Type (a) Number of contracts (subcontracts) (b) Dollars (c) Estimated total dollars (d) Actual utilization (column c/c-1) (e) Utilization benchmark (availability) (f) Difference (column d-e) (g) Disparity index (d/e)x100 (1) All firms 550 $298,287 $298,287 (2) MBE/WBE 60 $9,068 $9, (3) WBE 15 $1,486 $1, (4) MBE 46 $7,736 $7, (5) African American-owned 2 $9 $ (6) Total Asian American-owned 16 $2,041 $2, (7) Asian-Pacific American-owned 16 $2,041 $2, (8) Subcontinent Asian American-owned 0 $0 $ (9) Hispanic American-owned 15 $3,502 $3, (10) Native American-owned 13 $2,184 $2, (11) Unknown MBE 0 $0 (12) DBE-certified 40 $5,294 $5, (13) Women-owned DBE 9 $689 $ (14) Minority-owned DBE 27 $4,178 $4, (14) African American-owned DBE 0 $0 $0 0.0 (16) Total Asian American-owned DBE 6 $823 $ (17) Asian-Pacific American-owned DBE 6 $823 $ (18) Subcontinent Asian American-owned DBE 0 $0 $0 0.0 (19) Hispanic American-owned DBE 8 $1,170 $1, (20) Native American-owned DBE 13 $2,184 $2, (21) White male-owned DBE 4 $427 $ (22) Unknown DBE-MBE 0 $0 (23) Unknown DBE 0 $0 Notes: Spreadsheet rounds numbers to nearest thousand dollars or tenth of one percent. WBE is white women-owned firms. Source: BBC Research and Consulting Disparity Analysis.

205 Figure E-73. Agency: NDOT Funding: All Type: Engineering Time Period: October 1999 to September 2005 Role: Prime Contractors, Subcontractors and Suppliers Region: Nevada Firm Type (a) Number of contracts (subcontracts) (b) Dollars (c) Estimated total dollars (d) Actual utilization (column c/c-1) (e) Utilization benchmark (availability) (f) Difference (column d-e) (g) Disparity index (d/e)x100 (1) All firms 464 $265,427 $265,427 (2) MBE/WBE 53 $7,300 $7, (3) WBE 14 $1,186 $1, (4) MBE 40 $6,268 $6, (5) African American-owned 2 $9 $ (6) Total Asian American-owned 12 $1,386 $1, (7) Asian-Pacific American-owned 12 $1,386 $1, (8) Subcontinent Asian American-owned 0 $0 $ (9) Hispanic American-owned 13 $2,689 $2, (10) Native American-owned 13 $2,184 $2, (11) Unknown MBE 0 $0 (12) DBE-certified 37 $4,850 $4, (13) Women-owned DBE 9 $689 $ (14) Minority-owned DBE 24 $3,734 $3, (14) African American-owned DBE 0 $0 $0 0.0 (16) Total Asian American-owned DBE 3 $379 $ (17) Asian-Pacific American-owned DBE 3 $379 $ (18) Subcontinent Asian American-owned DBE 0 $0 $0 0.0 (19) Hispanic American-owned DBE 8 $1,170 $1, (20) Native American-owned DBE 13 $2,184 $2, (21) White male-owned DBE 4 $427 $ (22) Unknown DBE-MBE 0 $0 (23) Unknown DBE 0 $0 Notes: Spreadsheet rounds numbers to nearest thousand dollars or tenth of one percent. WBE is white women-owned firms. Source: BBC Research and Consulting Disparity Analysis.

206 Figure E-74. Agency: NDOT Funding: All Type: Engineering Time Period: October 2005 to 2006 Role: Prime Contractors, Subcontractors and Suppliers Region: Nevada Firm Type (a) Number of contracts (subcontracts) (b) Dollars (c) Estimated total dollars (d) Actual utilization (column c/c-1) (e) Utilization benchmark (availability) (f) Difference (column d-e) (g) Disparity index (d/e)x100 (1) All firms 86 $32,860 $32,860 (2) MBE/WBE 7 $1,767 $1, (3) WBE 1 $300 $ (4) MBE 6 $1,467 $1, (5) African American-owned 0 $0 $ (6) Total Asian American-owned 4 $655 $ (7) Asian-Pacific American-owned 4 $655 $ (8) Subcontinent Asian American-owned 0 $0 $ (9) Hispanic American-owned 2 $813 $ (10) Native American-owned 0 $0 $ (11) Unknown MBE 0 $0 (12) DBE-certified 3 $444 $ (13) Women-owned DBE 0 $0 $0 0.0 (14) Minority-owned DBE 3 $444 $ (14) African American-owned DBE 0 $0 $0 0.0 (16) Total Asian American-owned DBE 3 $444 $ (17) Asian-Pacific American-owned DBE 3 $444 $ (18) Subcontinent Asian American-owned DBE 0 $0 $0 0.0 (19) Hispanic American-owned DBE 0 $0 $0 0.0 (20) Native American-owned DBE 0 $0 $0 0.0 (21) White male-owned DBE 0 $0 $0 0.0 (22) Unknown DBE-MBE 0 $0 (23) Unknown DBE 0 $0 Notes: Spreadsheet rounds numbers to nearest thousand dollars or tenth of one percent. WBE is white women-owned firms. Source: BBC Research and Consulting Disparity Analysis.

207 Figure E-75. Agency: NDOT Funding: All Type: Engineering Time Period: October Role: Prime Contractors Region: Nevada Firm Type (a) Number of contracts (subcontracts) (b) Dollars (c) Estimated total dollars (d) Actual utilization (column c/c-1) (e) Utilization benchmark (availability) (f) Difference (column d-e) (g) Disparity index (d/e)x100 (1) All firms 443 $281,575 $281,575 (2) MBE/WBE 25 $2,394 $2, (3) WBE 5 $601 $ (4) MBE 20 $1,793 $1, (5) African American-owned 2 $9 $ (6) Total Asian American-owned 11 $919 $ (7) Asian-Pacific American-owned 11 $919 $ (8) Subcontinent Asian American-owned 0 $0 $ (9) Hispanic American-owned 6 $717 $ (10) Native American-owned 1 $148 $ (11) Unknown MBE 0 $0 (12) DBE-certified 12 $1,425 $1, (13) Women-owned DBE 1 $13 $ (14) Minority-owned DBE 8 $1,094 $1, (14) African American-owned DBE 0 $0 $0 0.0 (16) Total Asian American-owned DBE 3 $321 $ (17) Asian-Pacific American-owned DBE 3 $321 $ (18) Subcontinent Asian American-owned DBE 0 $0 $0 0.0 (19) Hispanic American-owned DBE 4 $625 $ (20) Native American-owned DBE 1 $148 $ (21) White male-owned DBE 3 $318 $ (22) Unknown DBE-MBE 0 $0 (23) Unknown DBE 0 $0 Notes: Spreadsheet rounds numbers to nearest thousand dollars or tenth of one percent. WBE is white women-owned firms. Source: BBC Research and Consulting Disparity Analysis.

208 Figure E-76. Agency: NDOT Funding: All Type: Engineering Time Period: October 1999 to September 2005 Role: Prime Contractors Region: Nevada Firm Type (a) Number of contracts (subcontracts) (b) Dollars (c) Estimated total dollars (d) Actual utilization (column c/c-1) (e) Utilization benchmark (availability) (f) Difference (column d-e) (g) Disparity index (d/e)x100 (1) All firms 364 $250,301 $250,301 (2) MBE/WBE 21 $1,702 $1, (3) WBE 4 $301 $ (4) MBE 17 $1,401 $1, (5) African American-owned 2 $9 $ (6) Total Asian American-owned 8 $527 $ (7) Asian-Pacific American-owned 8 $527 $ (8) Subcontinent Asian American-owned 0 $0 $ (9) Hispanic American-owned 6 $717 $ (10) Native American-owned 1 $148 $ (11) Unknown MBE 0 $0 (12) DBE-certified 10 $1,244 $1, (13) Women-owned DBE 1 $13 $ (14) Minority-owned DBE 6 $913 $ (14) African American-owned DBE 0 $0 $0 0.0 (16) Total Asian American-owned DBE 1 $140 $ (17) Asian-Pacific American-owned DBE 1 $140 $ (18) Subcontinent Asian American-owned DBE 0 $0 $0 0.0 (19) Hispanic American-owned DBE 4 $625 $ (20) Native American-owned DBE 1 $148 $ (21) White male-owned DBE 3 $318 $ (22) Unknown DBE-MBE 0 $0 (23) Unknown DBE 0 $0 Notes: Spreadsheet rounds numbers to nearest thousand dollars or tenth of one percent. WBE is white women-owned firms. Source: BBC Research and Consulting Disparity Analysis.

209 Figure E-77. Agency: NDOT Funding: All Type: Engineering Time Period: October 2005 to 2006 Role: Prime Contractors Region: Nevada Firm Type (a) Number of contracts (subcontracts) (b) Dollars (c) Estimated total dollars (d) Actual utilization (column c/c-1) (e) Utilization benchmark (availability) (f) Difference (column d-e) (g) Disparity index (d/e)x100 (1) All firms 79 $31,274 $31,274 (2) MBE/WBE 4 $692 $ (3) WBE 1 $300 $ (4) MBE 3 $392 $ (5) African American-owned 0 $0 $ (6) Total Asian American-owned 3 $392 $ (7) Asian-Pacific American-owned 3 $392 $ (8) Subcontinent Asian American-owned 0 $0 $ (9) Hispanic American-owned 0 $0 $ (10) Native American-owned 0 $0 $ (11) Unknown MBE 0 $0 (12) DBE-certified 2 $181 $ (13) Women-owned DBE 0 $0 $0 0.0 (14) Minority-owned DBE 2 $181 $ (14) African American-owned DBE 0 $0 $0 0.0 (16) Total Asian American-owned DBE 2 $181 $ (17) Asian-Pacific American-owned DBE 2 $181 $ (18) Subcontinent Asian American-owned DBE 0 $0 $0 0.0 (19) Hispanic American-owned DBE 0 $0 $0 0.0 (20) Native American-owned DBE 0 $0 $0 0.0 (21) White male-owned DBE 0 $0 $0 0.0 (22) Unknown DBE-MBE 0 $0 (23) Unknown DBE 0 $0 Notes: Spreadsheet rounds numbers to nearest thousand dollars or tenth of one percent. WBE is white women-owned firms. Source: BBC Research and Consulting Disparity Analysis.

210 Figure E-78. Agency: NDOT Funding: All Type: Engineering Time Period: October 1999 to 2006 Role: Subcontractors and Suppliers Region: Nevada Firm Type (a) Number of contracts (subcontracts) (b) Dollars (c) Estimated total dollars (d) Actual utilization (column c/c-1) (e) Utilization benchmark (availability) (f) Difference (column d-e) (g) Disparity index (d/e)x100 (1) All firms 107 $16,712 $16,712 (2) MBE/WBE 35 $6,674 $6, (3) WBE 10 $885 $ (4) MBE 26 $5,943 $5, (5) African American-owned 0 $0 $ (6) Total Asian American-owned 5 $1,122 $1, (7) Asian-Pacific American-owned 5 $1,122 $1, (8) Subcontinent Asian American-owned 0 $0 $ (9) Hispanic American-owned 9 $2,784 $2, (10) Native American-owned 12 $2,037 $2, (11) Unknown MBE 0 $0 (12) DBE-certified 28 $3,869 $3, (13) Women-owned DBE 8 $676 $ (14) Minority-owned DBE 19 $3,084 $3, (14) African American-owned DBE 0 $0 $0 0.0 (16) Total Asian American-owned DBE 3 $502 $ (17) Asian-Pacific American-owned DBE 3 $502 $ (18) Subcontinent Asian American-owned DBE 0 $0 $0 0.0 (19) Hispanic American-owned DBE 4 $545 $ (20) Native American-owned DBE 12 $2,037 $2, (21) White male-owned DBE 1 $109 $ (22) Unknown DBE-MBE 0 $0 (23) Unknown DBE 0 $0 Notes: Spreadsheet rounds numbers to nearest thousand dollars or tenth of one percent. WBE is white women-owned firms. Source: BBC Research and Consulting Disparity Analysis.

211 Figure E-79. Agency: NDOT Funding: All Type: Engineering Time Period: October 1999 to September 2005 Role: Subcontractors and Suppliers Region: Nevada Firm Type (a) Number of contracts (subcontracts) (b) Dollars (c) Estimated total dollars (d) Actual utilization (column c/c-1) (e) Utilization benchmark (availability) (f) Difference (column d-e) (g) Disparity index (d/e)x100 (1) All firms 100 $15,126 $15,126 (2) MBE/WBE 32 $5,599 $5, (3) WBE 10 $885 $ (4) MBE 23 $4,868 $4, (5) African American-owned 0 $0 $ (6) Total Asian American-owned 4 $859 $ (7) Asian-Pacific American-owned 4 $859 $ (8) Subcontinent Asian American-owned 0 $0 $ (9) Hispanic American-owned 7 $1,972 $1, (10) Native American-owned 12 $2,037 $2, (11) Unknown MBE 0 $0 (12) DBE-certified 27 $3,606 $3, (13) Women-owned DBE 8 $676 $ (14) Minority-owned DBE 18 $2,821 $2, (14) African American-owned DBE 0 $0 $0 0.0 (16) Total Asian American-owned DBE 2 $239 $ (17) Asian-Pacific American-owned DBE 2 $239 $ (18) Subcontinent Asian American-owned DBE 0 $0 $0 0.0 (19) Hispanic American-owned DBE 4 $545 $ (20) Native American-owned DBE 12 $2,037 $2, (21) White male-owned DBE 1 $109 $ (22) Unknown DBE-MBE 0 $0 (23) Unknown DBE 0 $0 Notes: Spreadsheet rounds numbers to nearest thousand dollars or tenth of one percent. WBE is white women-owned firms. Source: BBC Research and Consulting Disparity Analysis.

212 Figure E-80. Agency: NDOT Funding: All Type: Engineering Time Period: October 2005 to 2006 Role: Subcontractors and Suppliers Region: Nevada Firm Type (a) Number of contracts (subcontracts) (b) Dollars (c) Estimated total dollars (d) Actual utilization (column c/c-1) (e) Utilization benchmark (availability) (f) Difference (column d-e) (g) Disparity index (d/e)x100 (1) All firms 7 $1,586 $1,586 (2) MBE/WBE 3 $1,076 $1, (3) WBE 0 $0 $ (4) MBE 3 $1,076 $1, (5) African American-owned 0 $0 $ (6) Total Asian American-owned 1 $263 $ (7) Asian-Pacific American-owned 1 $263 $ (8) Subcontinent Asian American-owned 0 $0 $ (9) Hispanic American-owned 2 $813 $ (10) Native American-owned 0 $0 $ (11) Unknown MBE 0 $0 (12) DBE-certified 1 $263 $ (13) Women-owned DBE 0 $0 $0 0.0 (14) Minority-owned DBE 1 $263 $ (14) African American-owned DBE 0 $0 $0 0.0 (16) Total Asian American-owned DBE 1 $263 $ (17) Asian-Pacific American-owned DBE 1 $263 $ (18) Subcontinent Asian American-owned DBE 0 $0 $0 0.0 (19) Hispanic American-owned DBE 0 $0 $0 0.0 (20) Native American-owned DBE 0 $0 $0 0.0 (21) White male-owned DBE 0 $0 $0 0.0 (22) Unknown DBE-MBE 0 $0 (23) Unknown DBE 0 $0 Notes: Spreadsheet rounds numbers to nearest thousand dollars or tenth of one percent. WBE is white women-owned firms. Source: BBC Research and Consulting Disparity Analysis.

213 Figure E-81. Agency: NDOT Funding: State Type: All Time Period: October 1999 to 2006 Role: Prime Contractors, Subcontractors and Suppliers Region: District 1 Firm Type (a) Number of contracts (subcontracts) (b) Dollars (c) Estimated total dollars (d) Actual utilization (column c/c-1) (e) Utilization benchmark (availability) (f) Difference (column d-e) (g) Disparity index (d/e)x100 (1) All firms 441 $214,134 $214,134 (2) MBE/WBE 47 $8,535 $8, (3) WBE 20 $1,780 $1, (4) MBE 27 $6,755 $6, (5) African American-owned 2 $264 $ (6) Total Asian American-owned 6 $2,228 $2, (7) Asian-Pacific American-owned 1 $185 $ (8) Subcontinent Asian American-owned 5 $2,043 $2, (9) Hispanic American-owned 12 $3,351 $3, (10) Native American-owned 7 $912 $ (11) Unknown MBE 0 $0 (12) DBE-certified 28 $3,969 $3, (13) Women-owned DBE 13 $870 $ (14) Minority-owned DBE 13 $3,035 $3, (14) African American-owned DBE 1 $178 $ (16) Total Asian American-owned DBE 1 $185 $ (17) Asian-Pacific American-owned DBE 1 $185 $ (18) Subcontinent Asian American-owned DBE 0 $0 $0 0.0 (19) Hispanic American-owned DBE 9 $2,347 $2, (20) Native American-owned DBE 2 $325 $ (21) White male-owned DBE 2 $65 $ (22) Unknown DBE-MBE 0 $0 (23) Unknown DBE 0 $0 Notes: Spreadsheet rounds numbers to nearest thousand dollars or tenth of one percent. WBE is white women-owned firms. Source: BBC Research and Consulting Disparity Analysis.

214 Figure E-82. Agency: NDOT Funding: State Type: Construction Time Period: October 1999 to 2006 Role: Prime Contractors, Subcontractors and Suppliers Region: District 1 Firm Type (a) Number of contracts (subcontracts) (b) Dollars (c) Estimated total dollars (d) Actual utilization (column c/c-1) (e) Utilization benchmark (availability) (f) Difference (column d-e) (g) Disparity index (d/e)x100 (1) All firms 337 $175,359 $175,359 (2) MBE/WBE 41 $7,229 $7, (3) WBE 19 $1,735 $1, (4) MBE 22 $5,494 $5, (5) African American-owned 2 $264 $ (6) Total Asian American-owned 6 $2,228 $2, (7) Asian-Pacific American-owned 1 $185 $ (8) Subcontinent Asian American-owned 5 $2,043 $2, (9) Hispanic American-owned 9 $2,415 $2, (10) Native American-owned 5 $587 $ (11) Unknown MBE 0 $0 (12) DBE-certified 21 $3,243 $3, (13) Women-owned DBE 12 $825 $ (14) Minority-owned DBE 9 $2,418 $2, (14) African American-owned DBE 1 $178 $ (16) Total Asian American-owned DBE 1 $185 $ (17) Asian-Pacific American-owned DBE 1 $185 $ (18) Subcontinent Asian American-owned DBE 0 $0 $0 0.0 (19) Hispanic American-owned DBE 7 $2,055 $2, (20) Native American-owned DBE 0 $0 $0 0.0 (21) White male-owned DBE 0 $0 $0 0.0 (22) Unknown DBE-MBE 0 $0 (23) Unknown DBE 0 $0 Notes: Spreadsheet rounds numbers to nearest thousand dollars or tenth of one percent. WBE is white women-owned firms. Source: BBC Research and Consulting Disparity Analysis.

215 Figure E-83. Agency: NDOT Funding: State Type: All Time Period: October 1999 to 2006 Role: Prime Contractors, Subcontractors and Suppliers Region: District 2 Firm Type (a) Number of contracts (subcontracts) (b) Dollars (c) Estimated total dollars (d) Actual utilization (column c/c-1) (e) Utilization benchmark (availability) (f) Difference (column d-e) (g) Disparity index (d/e)x100 (1) All firms 537 $223,804 $223,804 (2) MBE/WBE 77 $25,626 $25, (3) WBE 58 $8,192 $8, (4) MBE 19 $17,434 $17, (5) African American-owned 0 $0 $ (6) Total Asian American-owned 3 $749 $ (7) Asian-Pacific American-owned 2 $214 $ (8) Subcontinent Asian American-owned 1 $535 $ (9) Hispanic American-owned 1 $555 $ (10) Native American-owned 15 $16,130 $16, (11) Unknown MBE 0 $0 (12) DBE-certified 26 $1,352 $1, (13) Women-owned DBE 22 $475 $ (14) Minority-owned DBE 4 $877 $ (14) African American-owned DBE 0 $0 $0 0.0 (16) Total Asian American-owned DBE 0 $0 $0 0.0 (17) Asian-Pacific American-owned DBE 0 $0 $0 0.0 (18) Subcontinent Asian American-owned DBE 0 $0 $0 0.0 (19) Hispanic American-owned DBE 1 $555 $ (20) Native American-owned DBE 3 $322 $ (21) White male-owned DBE 0 $0 $0 0.0 (22) Unknown DBE-MBE 0 $0 (23) Unknown DBE 0 $0 Notes: Spreadsheet rounds numbers to nearest thousand dollars or tenth of one percent. WBE is white women-owned firms. Source: BBC Research and Consulting Disparity Analysis.

216 Figure E-84. Agency: NDOT Funding: State Type: Construction Time Period: October 1999 to 2006 Role: Prime Contractors, Subcontractors and Suppliers Region: District 2 Firm Type (a) Number of contracts (subcontracts) (b) Dollars (c) Estimated total dollars (d) Actual utilization (column c/c-1) (e) Utilization benchmark (availability) (f) Difference (column d-e) (g) Disparity index (d/e)x100 (1) All firms 394 $182,415 $182,415 (2) MBE/WBE 68 $24,502 $24, (3) WBE 54 $7,604 $7, (4) MBE 14 $16,898 $16, (5) African American-owned 0 $0 $ (6) Total Asian American-owned 1 $535 $ (7) Asian-Pacific American-owned 0 $0 $ (8) Subcontinent Asian American-owned 1 $535 $ (9) Hispanic American-owned 1 $555 $ (10) Native American-owned 12 $15,808 $15, (11) Unknown MBE 0 $0 (12) DBE-certified 23 $1,030 $1, (13) Women-owned DBE 22 $475 $ (14) Minority-owned DBE 1 $555 $ (14) African American-owned DBE 0 $0 $0 0.0 (16) Total Asian American-owned DBE 0 $0 $0 0.0 (17) Asian-Pacific American-owned DBE 0 $0 $0 0.0 (18) Subcontinent Asian American-owned DBE 0 $0 $0 0.0 (19) Hispanic American-owned DBE 1 $555 $ (20) Native American-owned DBE 0 $0 $0 0.0 (21) White male-owned DBE 0 $0 $0 0.0 (22) Unknown DBE-MBE 0 $0 (23) Unknown DBE 0 $0 Notes: Spreadsheet rounds numbers to nearest thousand dollars or tenth of one percent. WBE is white women-owned firms. Source: BBC Research and Consulting Disparity Analysis.

217 Figure E-85. Agency: NDOT Funding: State Type: All Time Period: October 1999 to 2006 Role: Prime Contractors, Subcontractors and Suppliers Region: District 3 Firm Type (a) Number of contracts (subcontracts) (b) Dollars (c) Estimated total dollars (d) Actual utilization (column c/c-1) (e) Utilization benchmark (availability) (f) Difference (column d-e) (g) Disparity index (d/e)x100 (1) All firms 124 $73,938 $73,938 (2) MBE/WBE 27 $3,166 $3, (3) WBE 23 $2,887 $2, (4) MBE 4 $279 $ (5) African American-owned 0 $0 $ (6) Total Asian American-owned 0 $0 $ (7) Asian-Pacific American-owned 0 $0 $ (8) Subcontinent Asian American-owned 0 $0 $ (9) Hispanic American-owned 4 $279 $ (10) Native American-owned 0 $0 $ (11) Unknown MBE 0 $0 (12) DBE-certified 17 $1,418 $1, (13) Women-owned DBE 13 $1,138 $1, (14) Minority-owned DBE 4 $279 $ (14) African American-owned DBE 0 $0 $0 0.0 (16) Total Asian American-owned DBE 0 $0 $0 0.0 (17) Asian-Pacific American-owned DBE 0 $0 $0 0.0 (18) Subcontinent Asian American-owned DBE 0 $0 $0 0.0 (19) Hispanic American-owned DBE 4 $279 $ (20) Native American-owned DBE 0 $0 $0 0.0 (21) White male-owned DBE 0 $0 $0 0.0 (22) Unknown DBE-MBE 0 $0 (23) Unknown DBE 0 $0 Notes: Spreadsheet rounds numbers to nearest thousand dollars or tenth of one percent. WBE is white women-owned firms. Source: BBC Research and Consulting Disparity Analysis.

218 Figure E-86. Agency: NDOT Funding: State Type: Construction Time Period: October 1999 to 2006 Role: Prime Contractors, Subcontractors and Suppliers Region: District 3 Firm Type (a) Number of contracts (subcontracts) (b) Dollars (c) Estimated total dollars (d) Actual utilization (column c/c-1) (e) Utilization benchmark (availability) (f) Difference (column d-e) (g) Disparity index (d/e)x100 (1) All firms 111 $72,096 $72,096 (2) MBE/WBE 27 $3,166 $3, (3) WBE 23 $2,887 $2, (4) MBE 4 $279 $ (5) African American-owned 0 $0 $ (6) Total Asian American-owned 0 $0 $ (7) Asian-Pacific American-owned 0 $0 $ (8) Subcontinent Asian American-owned 0 $0 $ (9) Hispanic American-owned 4 $279 $ (10) Native American-owned 0 $0 $ (11) Unknown MBE 0 $0 (12) DBE-certified 17 $1,418 $1, (13) Women-owned DBE 13 $1,138 $1, (14) Minority-owned DBE 4 $279 $ (14) African American-owned DBE 0 $0 $0 0.0 (16) Total Asian American-owned DBE 0 $0 $0 0.0 (17) Asian-Pacific American-owned DBE 0 $0 $0 0.0 (18) Subcontinent Asian American-owned DBE 0 $0 $0 0.0 (19) Hispanic American-owned DBE 4 $279 $ (20) Native American-owned DBE 0 $0 $0 0.0 (21) White male-owned DBE 0 $0 $0 0.0 (22) Unknown DBE-MBE 0 $0 (23) Unknown DBE 0 $0 Notes: Spreadsheet rounds numbers to nearest thousand dollars or tenth of one percent. WBE is white women-owned firms. Source: BBC Research and Consulting Disparity Analysis.

219 Figure E-87. Agency: NDOT Funding: Federal Type: All Time Period: October 1999 to October 2005 Role: Prime Contractors, Subcontractors and Suppliers Region: District 1 Firm Type (a) Number of contracts (subcontracts) (b) Dollars (c) Estimated total dollars (d) Actual utilization (column c/c-1) (e) Utilization benchmark (availability) (f) Difference (column d-e) (g) Disparity index (d/e)x100 (1) All firms 616 $793,916 $793,916 (2) MBE/WBE 143 $63,611 $63, (3) WBE 87 $21,634 $21, (4) MBE 56 $41,977 $41, (5) African American-owned 4 $1,169 $1, (6) Total Asian American-owned 6 $2,063 $2, (7) Asian-Pacific American-owned 4 $966 $1, (8) Subcontinent Asian American-owned 2 $1,097 $1, (9) Hispanic American-owned 38 $33,502 $35, (10) Native American-owned 5 $2,868 $3, (11) Unknown MBE 3 $2,375 (12) DBE-certified 100 $35,624 $35, (13) Women-owned DBE 60 $14,551 $14, (14) Minority-owned DBE 36 $19,748 $19, (14) African American-owned DBE 2 $1,160 $1, (16) Total Asian American-owned DBE 2 $239 $ (17) Asian-Pacific American-owned DBE 2 $239 $ (18) Subcontinent Asian American-owned DBE 0 $0 $0 0.0 (19) Hispanic American-owned DBE 29 $17,490 $17, (20) Native American-owned DBE 3 $859 $ (21) White male-owned DBE 4 $1,325 $1, (22) Unknown DBE-MBE 0 $0 (23) Unknown DBE 0 $0 Notes: Spreadsheet rounds numbers to nearest thousand dollars or tenth of one percent. WBE is white women-owned firms. Source: BBC Research and Consulting Disparity Analysis.

220 Figure E-88. Agency: NDOT Funding: Federal Type: All Time Period: October 1999 to October 2005 Role: Prime Contractors, Subcontractors and Suppliers Region: District 1 Firm Type (a) Number of contracts (subcontracts) (b) Dollars (c) Estimated total dollars (d) Actual utilization (column c/c-1) (e) Utilization benchmark (availability) (f) Difference (column d-e) (g) Disparity index (d/e)x100 (1) All firms 524 $704,726 $704,726 (2) MBE/WBE 126 $60,626 $60, (3) WBE 82 $21,116 $21, (4) MBE 44 $39,510 $39, (5) African American-owned 2 $1,160 $1, (6) Total Asian American-owned 3 $1,358 $1, (7) Asian-Pacific American-owned 1 $261 $ (8) Subcontinent Asian American-owned 2 $1,097 $1, (9) Hispanic American-owned 33 $32,367 $34, (10) Native American-owned 3 $2,249 $2, (11) Unknown MBE 3 $2,375 (12) DBE-certified 87 $33,637 $33, (13) Women-owned DBE 56 $14,088 $14, (14) Minority-owned DBE 28 $18,478 $18, (14) African American-owned DBE 2 $1,160 $1, (16) Total Asian American-owned DBE 0 $0 $0 0.0 (17) Asian-Pacific American-owned DBE 0 $0 $0 0.0 (18) Subcontinent Asian American-owned DBE 0 $0 $0 0.0 (19) Hispanic American-owned DBE 25 $17,077 $17, (20) Native American-owned DBE 1 $240 $ (21) White male-owned DBE 3 $1,072 $1, (22) Unknown DBE-MBE 0 $0 (23) Unknown DBE 0 $0 Notes: Spreadsheet rounds numbers to nearest thousand dollars or tenth of one percent. WBE is white women-owned firms. Source: BBC Research and Consulting Disparity Analysis.

221 Figure E-89. Agency: NDOT Funding: Federal Type: All Time Period: October 1999 to October 2005 Role: Prime Contractors, Subcontractors and Suppliers Region: District 2 Firm Type (a) Number of contracts (subcontracts) (b) Dollars (c) Estimated total dollars (d) Actual utilization (column c/c-1) (e) Utilization benchmark (availability) (f) Difference (column d-e) (g) Disparity index (d/e)x100 (1) All firms 498 $539,782 $539,782 (2) MBE/WBE 104 $51,125 $51, (3) WBE 74 $27,056 $27, (4) MBE 31 $24,223 $24, (5) African American-owned 0 $0 $ (6) Total Asian American-owned 5 $922 $ (7) Asian-Pacific American-owned 5 $922 $ (8) Subcontinent Asian American-owned 0 $0 $ (9) Hispanic American-owned 12 $4,423 $4, (10) Native American-owned 14 $18,878 $18, (11) Unknown MBE 0 $0 (12) DBE-certified 69 $17,386 $17, (13) Women-owned DBE 45 $11,553 $11, (14) Minority-owned DBE 22 $5,720 $5, (14) African American-owned DBE 0 $0 $0 0.0 (16) Total Asian American-owned DBE 4 $768 $ (17) Asian-Pacific American-owned DBE 4 $768 $ (18) Subcontinent Asian American-owned DBE 0 $0 $0 0.0 (19) Hispanic American-owned DBE 10 $3,898 $3, (20) Native American-owned DBE 8 $1,054 $1, (21) White male-owned DBE 2 $113 $ (22) Unknown DBE-MBE 0 $0 (23) Unknown DBE 0 $0 Notes: Spreadsheet rounds numbers to nearest thousand dollars or tenth of one percent. WBE is white women-owned firms. Source: BBC Research and Consulting Disparity Analysis.

222 Figure E-90. Agency: NDOT Funding: Federal Type: Construction Time Period: October 1999 to October 2005 Role: Prime Contractors, Subcontractors and Suppliers Region: District 2 Firm Type (a) Number of contracts (subcontracts) (b) Dollars (c) Estimated total dollars (d) Actual utilization (column c/c-1) (e) Utilization benchmark (availability) (f) Difference (column d-e) (g) Disparity index (d/e)x100 (1) All firms 379 $425,890 $425,890 (2) MBE/WBE 82 $30,157 $30, (3) WBE 66 $25,279 $25, (4) MBE 16 $4,878 $4, (5) African American-owned 0 $0 $ (6) Total Asian American-owned 1 $324 $ (7) Asian-Pacific American-owned 1 $324 $ (8) Subcontinent Asian American-owned 0 $0 $ (9) Hispanic American-owned 10 $4,097 $4, (10) Native American-owned 5 $457 $ (11) Unknown MBE 0 $0 (12) DBE-certified 54 $15,466 $15, (13) Women-owned DBE 41 $11,371 $11, (14) Minority-owned DBE 12 $4,091 $4, (14) African American-owned DBE 0 $0 $0 0.0 (16) Total Asian American-owned DBE 1 $324 $ (17) Asian-Pacific American-owned DBE 1 $324 $ (18) Subcontinent Asian American-owned DBE 0 $0 $0 0.0 (19) Hispanic American-owned DBE 9 $3,632 $3, (20) Native American-owned DBE 2 $135 $ (21) White male-owned DBE 1 $4 $4 0.0 (22) Unknown DBE-MBE 0 $0 (23) Unknown DBE 0 $0 Notes: Spreadsheet rounds numbers to nearest thousand dollars or tenth of one percent. WBE is white women-owned firms. Source: BBC Research and Consulting Disparity Analysis.

223 Figure E-91. Agency: NDOT Funding: Federal Type: All Time Period: October 1999 to October 2005 Role: Prime Contractors, Subcontractors and Suppliers Region: District 3 Firm Type (a) Number of contracts (subcontracts) (b) Dollars (c) Estimated total dollars (d) Actual utilization (column c/c-1) (e) Utilization benchmark (availability) (f) Difference (column d-e) (g) Disparity index (d/e)x100 (1) All firms 196 $143,066 $143,066 (2) MBE/WBE 59 $9,872 $9, (3) WBE 48 $8,142 $8, (4) MBE 11 $1,729 $1, (5) African American-owned 1 $22 $ (6) Total Asian American-owned 0 $0 $ (7) Asian-Pacific American-owned 0 $0 $ (8) Subcontinent Asian American-owned 0 $0 $ (9) Hispanic American-owned 9 $1,443 $1, (10) Native American-owned 1 $265 $ (11) Unknown MBE 0 $0 (12) DBE-certified 36 $5,119 $5, (13) Women-owned DBE 26 $3,675 $3, (14) Minority-owned DBE 9 $1,430 $1, (14) African American-owned DBE 1 $22 $ (16) Total Asian American-owned DBE 0 $0 $0 0.0 (17) Asian-Pacific American-owned DBE 0 $0 $0 0.0 (18) Subcontinent Asian American-owned DBE 0 $0 $0 0.0 (19) Hispanic American-owned DBE 7 $1,144 $1, (20) Native American-owned DBE 1 $265 $ (21) White male-owned DBE 1 $14 $ (22) Unknown DBE-MBE 0 $0 (23) Unknown DBE 0 $0 Notes: Spreadsheet rounds numbers to nearest thousand dollars or tenth of one percent. WBE is white women-owned firms. Source: BBC Research and Consulting Disparity Analysis.

224 Figure E-92. Agency: NDOT Funding: Federal Type: Construction Time Period: October 1999 to October 2005 Role: Prime Contractors, Subcontractors and Suppliers Region: District 3 Firm Type (a) Number of contracts (subcontracts) (b) Dollars (c) Estimated total dollars (d) Actual utilization (column c/c-1) (e) Utilization benchmark (availability) (f) Difference (column d-e) (g) Disparity index (d/e)x100 (1) All firms 187 $141,393 $141,393 (2) MBE/WBE 59 $9,872 $9, (3) WBE 48 $8,142 $8, (4) MBE 11 $1,729 $1, (5) African American-owned 1 $22 $ (6) Total Asian American-owned 0 $0 $ (7) Asian-Pacific American-owned 0 $0 $ (8) Subcontinent Asian American-owned 0 $0 $ (9) Hispanic American-owned 9 $1,443 $1, (10) Native American-owned 1 $265 $ (11) Unknown MBE 0 $0 (12) DBE-certified 36 $5,119 $5, (13) Women-owned DBE 26 $3,675 $3, (14) Minority-owned DBE 9 $1,430 $1, (14) African American-owned DBE 1 $22 $ (16) Total Asian American-owned DBE 0 $0 $0 0.0 (17) Asian-Pacific American-owned DBE 0 $0 $0 0.0 (18) Subcontinent Asian American-owned DBE 0 $0 $0 0.0 (19) Hispanic American-owned DBE 7 $1,144 $1, (20) Native American-owned DBE 1 $265 $ (21) White male-owned DBE 1 $14 $ (22) Unknown DBE-MBE 0 $0 (23) Unknown DBE 0 $0 Notes: Spreadsheet rounds numbers to nearest thousand dollars or tenth of one percent. WBE is white women-owned firms. Source: BBC Research and Consulting Disparity Analysis.

225 Figure E-93. Agency: NDOT Funding: All Type: All Time Period: October 1999 to 2006 Role: Suppliers Region: Nevada Firm Type (a) Number of contracts (subcontracts) (b) Dollars (c) Estimated total dollars (d) Actual utilization (column c/c-1) (e) Utilization benchmark (availability) (f) Difference (column d-e) (g) Disparity ratio (d/e)x100 (1) All firms 428 $149,387 $149,387 (2) MBE/WBE 48 $13,940 $13, (3) WBE 31 $9,988 $9, (4) MBE 17 $3,952 $3, (5) African American-owned 1 $178 $ (6) Total Asian American-owned 1 $185 $ (7) Asian-Pacific American-owned 1 $185 $ (8) Subcontinent Asian American-owned 0 $0 $ (9) Hispanic American-owned 15 $3,589 $3, (10) Native American-owned 0 $0 $ (11) Unknown MBE 0 $0 $0 0.0 (12) DBE-certified 41 $12,333 $12, (13) Women-owned DBE 27 $9,145 $9, (14) Minority-owned DBE 14 $3,188 $3, (14) African American-owned DBE 1 $178 $ (16) Total Asian American-owned DBE 1 $185 $ (17) Asian-Pacific American-owned DBE 1 $185 $ (18) Subcontinent Asian American-owned DBE 0 $0 $0 0.0 (19) Hispanic American-owned DBE 12 $2,825 $2, (20) Native American-owned DBE 0 $0 $0 0.0 (21) White male-owned DBE 0 $0 $0 0.0 (22) Unknown DBE-MBE 0 $0 (23) Unknown DBE 0 $0 Notes: Spreadsheet rounds numbers to nearest thousand dollars or tenth of one percent. WBE is white women-owned firms. Source: BBC Research and Consulting Disparity Analysis.

226 Figure E-94. Contracts Under $10M Agency: NDOT Funding: Federal Type: Construction Time Period: October Role: Prime Contractors Region: Nevada Firm Type (a) Number of contracts (subcontracts) (b) Dollars (c) Estimated total dollars (d) Actual utilization (column c/c-1) (e) Utilization benchmark (availability) (f) Difference (column d-e) (g) Disparity index (d/e)x100 (1) All firms 111 $285,082 $285,082 (2) MBE/WBE 5 $9,910 $9, (3) WBE 0 $0 $ (4) MBE 5 $9,910 $9, (5) African American-owned 0 $0 $ (6) Total Asian American-owned 0 $0 $ (7) Asian-Pacific American-owned 0 $0 $ (8) Subcontinent Asian American-owned 0 $0 $ (9) Hispanic American-owned 1 $352 $ (10) Native American-owned 4 $9,558 $9, (11) Unknown MBE 0 $0 (12) DBE-certified 0 $0 $0 0.0 (13) Women-owned DBE 0 $0 $0 0.0 (14) Minority-owned DBE 0 $0 $0 0.0 (14) African American-owned DBE 0 $0 $0 0.0 (16) Total Asian American-owned DBE 0 $0 $0 0.0 (17) Asian-Pacific American-owned DBE 0 $0 $0 0.0 (18) Subcontinent Asian American-owned DBE 0 $0 $0 0.0 (19) Hispanic American-owned DBE 0 $0 $0 0.0 (20) Native American-owned DBE 0 $0 $0 0.0 (21) White male-owned DBE 0 $0 $0 0.0 (22) Unknown DBE-MBE 0 $0 (23) Unknown DBE 0 $0 Notes: Spreadsheet rounds numbers to nearest thousand dollars or tenth of one percent. WBE is white women-owned firms. Source: BBC Research and Consulting Disparity Analysis.

227 Figure E-95. Contracts Under $10M Agency: NDOT Funding: Federal Type: Construction Time Period: October 1999 to September 2005 Role: Prime Contractors Region: Nevada Firm Type (a) Number of contracts (subcontracts) (b) Dollars (c) Estimated total dollars (d) Actual utilization (column c/c-1) (e) Utilization benchmark (availability) (f) Difference (column d-e) (g) Disparity index (d/e)x100 (1) All firms 102 $253,579 $253,579 (2) MBE/WBE 3 $627 $ (3) WBE 0 $0 $ (4) MBE 3 $627 $ (5) African American-owned 0 $0 $ (6) Total Asian American-owned 0 $0 $ (7) Asian-Pacific American-owned 0 $0 $ (8) Subcontinent Asian American-owned 0 $0 $ (9) Hispanic American-owned 1 $352 $ (10) Native American-owned 2 $275 $ (11) Unknown MBE 0 $0 (12) DBE-certified 0 $0 $0 0.0 (13) Women-owned DBE 0 $0 $0 0.0 (14) Minority-owned DBE 0 $0 $0 0.0 (14) African American-owned DBE 0 $0 $0 0.0 (16) Total Asian American-owned DBE 0 $0 $0 0.0 (17) Asian-Pacific American-owned DBE 0 $0 $0 0.0 (18) Subcontinent Asian American-owned DBE 0 $0 $0 0.0 (19) Hispanic American-owned DBE 0 $0 $0 0.0 (20) Native American-owned DBE 0 $0 $0 0.0 (21) White male-owned DBE 0 $0 $0 0.0 (22) Unknown DBE-MBE 0 $0 (23) Unknown DBE 0 $0 Notes: Spreadsheet rounds numbers to nearest thousand dollars or tenth of one percent. WBE is white women-owned firms. Source: BBC Research and Consulting Disparity Analysis.

228 Figure E-96. Contracts Under $10M Agency: NDOT Funding: Federal Type: Construction Time Period: October 2005 to 2006 Role: Prime Contractors Region: Nevada Firm Type (a) Number of contracts (subcontracts) (b) Dollars (c) Estimated total dollars (d) Actual utilization (column c/c-1) (e) Utilization benchmark (availability) (f) Difference (column d-e) (g) Disparity index (d/e)x100 (1) All firms 9 $31,503 $31,503 (2) MBE/WBE 2 $9,283 $9, (3) WBE 0 $0 $ (4) MBE 2 $9,283 $9, (5) African American-owned 0 $0 $ (6) Total Asian American-owned 0 $0 $ (7) Asian-Pacific American-owned 0 $0 $ (8) Subcontinent Asian American-owned 0 $0 $ (9) Hispanic American-owned 0 $0 $ (10) Native American-owned 2 $9,283 $9, ,476.3 (11) Unknown MBE 0 $0 (12) DBE-certified 0 $0 $0 0.0 (13) Women-owned DBE 0 $0 $0 0.0 (14) Minority-owned DBE 0 $0 $0 0.0 (14) African American-owned DBE 0 $0 $0 0.0 (16) Total Asian American-owned DBE 0 $0 $0 0.0 (17) Asian-Pacific American-owned DBE 0 $0 $0 0.0 (18) Subcontinent Asian American-owned DBE 0 $0 $0 0.0 (19) Hispanic American-owned DBE 0 $0 $0 0.0 (20) Native American-owned DBE 0 $0 $0 0.0 (21) White male-owned DBE 0 $0 $0 0.0 (22) Unknown DBE-MBE 0 $0 (23) Unknown DBE 0 $0 Notes: Spreadsheet rounds numbers to nearest thousand dollars or tenth of one percent. WBE is white women-owned firms. Source: BBC Research and Consulting Disparity Analysis.

229 Figure E-97. Contracts Under $10M Agency: NDOT Funding: State Type: Construction Time Period: October Role: Prime Contractors Region: Nevada Firm Type (a) Number of contracts (subcontracts) (b) Dollars (c) Estimated total dollars (d) Actual utilization (column c/c-1) (e) Utilization benchmark (availability) (f) Difference (column d-e) (g) Disparity index (d/e)x100 (1) All firms 236 $286,157 $286,157 (2) MBE/WBE 16 $17,644 $17, (3) WBE 3 $324 $ (4) MBE 13 $17,320 $17, (5) African American-owned 1 $86 $ (6) Total Asian American-owned 0 $0 $ (7) Asian-Pacific American-owned 0 $0 $ (8) Subcontinent Asian American-owned 0 $0 $ (9) Hispanic American-owned 2 $1,450 $1, (10) Native American-owned 10 $15,785 $15, (11) Unknown MBE 0 $0 (12) DBE-certified 2 $1,204 $1, (13) Women-owned DBE 1 $16 $ (14) Minority-owned DBE 1 $1,188 $1, (14) African American-owned DBE 0 $0 $0 0.0 (16) Total Asian American-owned DBE 0 $0 $0 0.0 (17) Asian-Pacific American-owned DBE 0 $0 $0 0.0 (18) Subcontinent Asian American-owned DBE 0 $0 $0 0.0 (19) Hispanic American-owned DBE 1 $1,188 $1, (20) Native American-owned DBE 0 $0 $0 0.0 (21) White male-owned DBE 0 $0 $0 0.0 (22) Unknown DBE-MBE 0 $0 (23) Unknown DBE 0 $0 Notes: Spreadsheet rounds numbers to nearest thousand dollars or tenth of one percent. WBE is white women-owned firms. Source: BBC Research and Consulting Disparity Analysis.

230 Figure E-98. Contracts Under $10M Agency: NDOT Funding: State Type: Construction Time Period: October 1999 to September 2005 Role: Prime Contractors Region: Nevada Firm Type (a) Number of contracts (subcontracts) (b) Dollars (c) Estimated total dollars (d) Actual utilization (column c/c-1) (e) Utilization benchmark (availability) (f) Difference (column d-e) (g) Disparity index (d/e)x100 (1) All firms 212 $256,289 $256,289 (2) MBE/WBE 12 $16,730 $16, (3) WBE 3 $324 $ (4) MBE 9 $16,406 $16, (5) African American-owned 1 $86 $ (6) Total Asian American-owned 0 $0 $ (7) Asian-Pacific American-owned 0 $0 $ (8) Subcontinent Asian American-owned 0 $0 $ (9) Hispanic American-owned 1 $1,188 $1, (10) Native American-owned 7 $15,132 $15, (11) Unknown MBE 0 $0 (12) DBE-certified 2 $1,204 $1, (13) Women-owned DBE 1 $16 $ (14) Minority-owned DBE 1 $1,188 $1, (14) African American-owned DBE 0 $0 $0 0.0 (16) Total Asian American-owned DBE 0 $0 $0 0.0 (17) Asian-Pacific American-owned DBE 0 $0 $0 0.0 (18) Subcontinent Asian American-owned DBE 0 $0 $0 0.0 (19) Hispanic American-owned DBE 1 $1,188 $1, (20) Native American-owned DBE 0 $0 $0 0.0 (21) White male-owned DBE 0 $0 $0 0.0 (22) Unknown DBE-MBE 0 $0 (23) Unknown DBE 0 $0 Notes: Spreadsheet rounds numbers to nearest thousand dollars or tenth of one percent. WBE is white women-owned firms. Source: BBC Research and Consulting Disparity Analysis.

231 Figure E-99. Contracts Under $10M Agency: NDOT Funding: State Type: Construction Time Period: October 2005 to 2006 Role: Prime Contractors Region: Nevada Firm Type (a) Number of contracts (subcontracts) (b) Dollars (c) Estimated total dollars (d) Actual utilization (column c/c-1) (e) Utilization benchmark (availability) (f) Difference (column d-e) (g) Disparity index (d/e)x100 (1) All firms 24 $29,868 $29,868 (2) MBE/WBE 4 $914 $ (3) WBE 0 $0 $ (4) MBE 4 $914 $ (5) African American-owned 0 $0 $ (6) Total Asian American-owned 0 $0 $ (7) Asian-Pacific American-owned 0 $0 $ (8) Subcontinent Asian American-owned 0 $0 $ (9) Hispanic American-owned 1 $261 $ (10) Native American-owned 3 $653 $ (11) Unknown MBE 0 $0 (12) DBE-certified 0 $0 $0 0.0 (13) Women-owned DBE 0 $0 $0 0.0 (14) Minority-owned DBE 0 $0 $0 0.0 (14) African American-owned DBE 0 $0 $0 0.0 (16) Total Asian American-owned DBE 0 $0 $0 0.0 (17) Asian-Pacific American-owned DBE 0 $0 $0 0.0 (18) Subcontinent Asian American-owned DBE 0 $0 $0 0.0 (19) Hispanic American-owned DBE 0 $0 $0 0.0 (20) Native American-owned DBE 0 $0 $0 0.0 (21) White male-owned DBE 0 $0 $0 0.0 (22) Unknown DBE-MBE 0 $0 (23) Unknown DBE 0 $0 Notes: Spreadsheet rounds numbers to nearest thousand dollars or tenth of one percent. WBE is white women-owned firms. Source: BBC Research and Consulting Disparity Analysis.

232 Figure E-100. Contracts Under $100K Agency: NDOT Funding: Federal Type: Engineering Time Period: October Role: Prime Contractors Region: Nevada Firm Type (a) Number of contracts (subcontracts) (b) Dollars (c) Estimated total dollars (d) Actual utilization (column c/c-1) (e) Utilization benchmark (availability) (f) Difference (column d-e) (g) Disparity index (d/e)x100 (1) All firms 43 $1,775 $1,775 (2) MBE/WBE 9 $384 $ (3) WBE 1 $13 $ (4) MBE 8 $371 $ (5) African American-owned 2 $9 $ (6) Total Asian American-owned 5 $317 $ (7) Asian-Pacific American-owned 5 $317 $ (8) Subcontinent Asian American-owned 0 $0 $ (9) Hispanic American-owned 1 $45 $ (10) Native American-owned 0 $0 $ (11) Unknown MBE 0 $0 (12) DBE-certified 3 $194 $ (13) Women-owned DBE 1 $13 $ (14) Minority-owned DBE 2 $181 $ (14) African American-owned DBE 0 $0 $0 0.0 (16) Total Asian American-owned DBE 2 $181 $ (17) Asian-Pacific American-owned DBE 2 $181 $ (18) Subcontinent Asian American-owned DBE 0 $0 $0 0.0 (19) Hispanic American-owned DBE 0 $0 $0 0.0 (20) Native American-owned DBE 0 $0 $0 0.0 (21) White male-owned DBE 0 $0 $0 0.0 (22) Unknown DBE-MBE 0 $0 (23) Unknown DBE 0 $0 Notes: Spreadsheet rounds numbers to nearest thousand dollars or tenth of one percent. WBE is white women-owned firms. Source: BBC Research and Consulting Disparity Analysis.

233 Figure E-101. Contracts Under $100K Agency: NDOT Funding: Federal Type: Engineering Time Period: October 1999 to September 2005 Role: Prime Contractors Region: Nevada Firm Type (a) Number of contracts (subcontracts) (b) Dollars (c) Estimated total dollars (d) Actual utilization (column c/c-1) (e) Utilization benchmark (availability) (f) Difference (column d-e) (g) Disparity index (d/e)x100 (1) All firms 34 $1,356 $1,356 (2) MBE/WBE 7 $203 $ (3) WBE 1 $13 $ (4) MBE 6 $190 $ (5) African American-owned 2 $9 $ (6) Total Asian American-owned 3 $136 $ (7) Asian-Pacific American-owned 3 $136 $ (8) Subcontinent Asian American-owned 0 $0 $ (9) Hispanic American-owned 1 $45 $ (10) Native American-owned 0 $0 $ (11) Unknown MBE 0 $0 (12) DBE-certified 1 $13 $ (13) Women-owned DBE 1 $13 $ (14) Minority-owned DBE 0 $0 $0 0.0 (14) African American-owned DBE 0 $0 $0 0.0 (16) Total Asian American-owned DBE 0 $0 $0 0.0 (17) Asian-Pacific American-owned DBE 0 $0 $0 0.0 (18) Subcontinent Asian American-owned DBE 0 $0 $0 0.0 (19) Hispanic American-owned DBE 0 $0 $0 0.0 (20) Native American-owned DBE 0 $0 $0 0.0 (21) White male-owned DBE 0 $0 $0 0.0 (22) Unknown DBE-MBE 0 $0 (23) Unknown DBE 0 $0 Notes: Spreadsheet rounds numbers to nearest thousand dollars or tenth of one percent. WBE is white women-owned firms. Source: BBC Research and Consulting Disparity Analysis.

234 Figure E-102. Contracts Under $100K Agency: NDOT Funding: Federal Type: Engineering Time Period: October 2005 to 2006 Role: Prime Contractors Region: Nevada Firm Type (a) Number of contracts (subcontracts) (b) Dollars (c) Estimated total dollars (d) Actual utilization (column c/c-1) (e) Utilization benchmark (availability) (f) Difference (column d-e) (g) Disparity index (d/e)x100 (1) All firms 9 $419 $419 (2) MBE/WBE 2 $181 $ (3) WBE 0 $0 $ (4) MBE 2 $181 $ (5) African American-owned 0 $0 $ (6) Total Asian American-owned 2 $181 $ ,288.3 (7) Asian-Pacific American-owned 2 $181 $ ,288.3 (8) Subcontinent Asian American-owned 0 $0 $ (9) Hispanic American-owned 0 $0 $ (10) Native American-owned 0 $0 $ (11) Unknown MBE 0 $0 (12) DBE-certified 2 $181 $ (13) Women-owned DBE 0 $0 $0 0.0 (14) Minority-owned DBE 2 $181 $ (14) African American-owned DBE 0 $0 $0 0.0 (16) Total Asian American-owned DBE 2 $181 $ (17) Asian-Pacific American-owned DBE 2 $181 $ (18) Subcontinent Asian American-owned DBE 0 $0 $0 0.0 (19) Hispanic American-owned DBE 0 $0 $0 0.0 (20) Native American-owned DBE 0 $0 $0 0.0 (21) White male-owned DBE 0 $0 $0 0.0 (22) Unknown DBE-MBE 0 $0 (23) Unknown DBE 0 $0 Notes: Spreadsheet rounds numbers to nearest thousand dollars or tenth of one percent. WBE is white women-owned firms. Source: BBC Research and Consulting Disparity Analysis.

235 Figure E-103. Contracts Under $100K Agency: NDOT Funding: State Type: Engineering Time Period: October Role: Prime Contractors Region: Nevada Firm Type (a) Number of contracts (subcontracts) (b) Dollars (c) Estimated total dollars (d) Actual utilization (column c/c-1) (e) Utilization benchmark (availability) (f) Difference (column d-e) (g) Disparity index (d/e)x100 (1) All firms 140 $5,206 $5,206 (2) MBE/WBE 7 $376 $ (3) WBE 2 $119 $ (4) MBE 5 $257 $ (5) African American-owned 0 $0 $ (6) Total Asian American-owned 3 $116 $ (7) Asian-Pacific American-owned 3 $116 $ (8) Subcontinent Asian American-owned 0 $0 $ (9) Hispanic American-owned 2 $141 $ (10) Native American-owned 0 $0 $ (11) Unknown MBE 0 $0 (12) DBE-certified 3 $159 $ (13) Women-owned DBE 0 $0 $0 0.0 (14) Minority-owned DBE 1 $94 $ (14) African American-owned DBE 0 $0 $0 0.0 (16) Total Asian American-owned DBE 0 $0 $0 0.0 (17) Asian-Pacific American-owned DBE 0 $0 $0 0.0 (18) Subcontinent Asian American-owned DBE 0 $0 $0 0.0 (19) Hispanic American-owned DBE 1 $94 $ (20) Native American-owned DBE 0 $0 $0 0.0 (21) White male-owned DBE 2 $65 $ (22) Unknown DBE-MBE 0 $0 (23) Unknown DBE 0 $0 Notes: Spreadsheet rounds numbers to nearest thousand dollars or tenth of one percent. WBE is white women-owned firms. Source: BBC Research and Consulting Disparity Analysis.

236 Figure E-104. Contracts Under $100K Agency: NDOT Funding: State Type: Engineering Time Period: October 1999 to September 2005 Role: Prime Contractors Region: Nevada Firm Type (a) Number of contracts (subcontracts) (b) Dollars (c) Estimated total dollars (d) Actual utilization (column c/c-1) (e) Utilization benchmark (availability) (f) Difference (column d-e) (g) Disparity index (d/e)x100 (1) All firms 115 $4,136 $4,136 (2) MBE/WBE 7 $376 $ (3) WBE 2 $119 $ (4) MBE 5 $257 $ (5) African American-owned 0 $0 $ (6) Total Asian American-owned 3 $116 $ (7) Asian-Pacific American-owned 3 $116 $ (8) Subcontinent Asian American-owned 0 $0 $ (9) Hispanic American-owned 2 $141 $ (10) Native American-owned 0 $0 $ (11) Unknown MBE 0 $0 (12) DBE-certified 3 $159 $ (13) Women-owned DBE 0 $0 $0 0.0 (14) Minority-owned DBE 1 $94 $ (14) African American-owned DBE 0 $0 $0 0.0 (16) Total Asian American-owned DBE 0 $0 $0 0.0 (17) Asian-Pacific American-owned DBE 0 $0 $0 0.0 (18) Subcontinent Asian American-owned DBE 0 $0 $0 0.0 (19) Hispanic American-owned DBE 1 $94 $ (20) Native American-owned DBE 0 $0 $0 0.0 (21) White male-owned DBE 2 $65 $ (22) Unknown DBE-MBE 0 $0 (23) Unknown DBE 0 $0 Notes: Spreadsheet rounds numbers to nearest thousand dollars or tenth of one percent. WBE is white women-owned firms. Source: BBC Research and Consulting Disparity Analysis.

237 Figure E-105. Contracts Under $100K Agency: NDOT Funding: State Type: Engineering Time Period: October 2005 to 2006 Role: Prime Contractors Region: Nevada Firm Type (a) Number of contracts (subcontracts) (b) Dollars (c) Estimated total dollars (d) Actual utilization (column c/c-1) (e) Utilization benchmark (availability) (f) Difference (column d-e) (g) Disparity index (d/e)x100 (1) All firms 25 $1,070 $1,070 (2) MBE/WBE 0 $0 $ (3) WBE 0 $0 $ (4) MBE 0 $0 $ (5) African American-owned 0 $0 $ (6) Total Asian American-owned 0 $0 $ (7) Asian-Pacific American-owned 0 $0 $ (8) Subcontinent Asian American-owned 0 $0 $ (9) Hispanic American-owned 0 $0 $ (10) Native American-owned 0 $0 $ (11) Unknown MBE 0 $0 (12) DBE-certified 0 $0 $0 0.0 (13) Women-owned DBE 0 $0 $0 0.0 (14) Minority-owned DBE 0 $0 $0 0.0 (14) African American-owned DBE 0 $0 $0 0.0 (16) Total Asian American-owned DBE 0 $0 $0 0.0 (17) Asian-Pacific American-owned DBE 0 $0 $0 0.0 (18) Subcontinent Asian American-owned DBE 0 $0 $0 0.0 (19) Hispanic American-owned DBE 0 $0 $0 0.0 (20) Native American-owned DBE 0 $0 $0 0.0 (21) White male-owned DBE 0 $0 $0 0.0 (22) Unknown DBE-MBE 0 $0 (23) Unknown DBE 0 $0 Notes: Spreadsheet rounds numbers to nearest thousand dollars or tenth of one percent. WBE is white women-owned firms. Source: BBC Research and Consulting Disparity Analysis.

238 Figure E-106. Contracts Under $100K Agency: NDOT Funding: All Type: Engineering Time Period: October Role: Prime Contractors Region: Nevada Firm Type (a) Number of contracts (subcontracts) (b) Dollars (c) Estimated total dollars (d) Actual utilization (column c/c-1) (e) Utilization benchmark (availability) (f) Difference (column d-e) (g) Disparity index (d/e)x100 (1) All firms 183 $6,981 $6,981 (2) MBE/WBE 16 $760 $ (3) WBE 3 $132 $ (4) MBE 13 $628 $ (5) African American-owned 2 $9 $ (6) Total Asian American-owned 8 $433 $ (7) Asian-Pacific American-owned 8 $433 $ (8) Subcontinent Asian American-owned 0 $0 $ (9) Hispanic American-owned 3 $186 $ (10) Native American-owned 0 $0 $ (11) Unknown MBE 0 $0 (12) DBE-certified 6 $353 $ (13) Women-owned DBE 1 $13 $ (14) Minority-owned DBE 3 $275 $ (14) African American-owned DBE 0 $0 $0 0.0 (16) Total Asian American-owned DBE 2 $181 $ (17) Asian-Pacific American-owned DBE 2 $181 $ (18) Subcontinent Asian American-owned DBE 0 $0 $0 0.0 (19) Hispanic American-owned DBE 1 $94 $ (20) Native American-owned DBE 0 $0 $0 0.0 (21) White male-owned DBE 2 $65 $ (22) Unknown DBE-MBE 0 $0 (23) Unknown DBE 0 $0 Notes: Spreadsheet rounds numbers to nearest thousand dollars or tenth of one percent. WBE is white women-owned firms. Source: BBC Research and Consulting Disparity Analysis.

239 Figure E-107. Contracts Under $100K Agency: NDOT Funding: All Type: Engineering Time Period: October 1999 to September 2005 Role: Prime Contractors Region: Nevada Firm Type (a) Number of contracts (subcontracts) (b) Dollars (c) Estimated total dollars (d) Actual utilization (column c/c-1) (e) Utilization benchmark (availability) (f) Difference (column d-e) (g) Disparity index (d/e)x100 (1) All firms 149 $5,492 $5,492 (2) MBE/WBE 14 $579 $ (3) WBE 3 $132 $ (4) MBE 11 $447 $ (5) African American-owned 2 $9 $ (6) Total Asian American-owned 6 $252 $ (7) Asian-Pacific American-owned 6 $252 $ (8) Subcontinent Asian American-owned 0 $0 $ (9) Hispanic American-owned 3 $186 $ (10) Native American-owned 0 $0 $ (11) Unknown MBE 0 $0 (12) DBE-certified 4 $172 $ (13) Women-owned DBE 1 $13 $ (14) Minority-owned DBE 1 $94 $ (14) African American-owned DBE 0 $0 $0 0.0 (16) Total Asian American-owned DBE 0 $0 $0 0.0 (17) Asian-Pacific American-owned DBE 0 $0 $0 0.0 (18) Subcontinent Asian American-owned DBE 0 $0 $0 0.0 (19) Hispanic American-owned DBE 1 $94 $ (20) Native American-owned DBE 0 $0 $0 0.0 (21) White male-owned DBE 2 $65 $ (22) Unknown DBE-MBE 0 $0 (23) Unknown DBE 0 $0 Notes: Spreadsheet rounds numbers to nearest thousand dollars or tenth of one percent. WBE is white women-owned firms. Source: BBC Research and Consulting Disparity Analysis.

240 Figure E-108. Contracts Under $100K Agency: NDOT Funding: All Type: Engineering Time Period: October 2005 to 2006 Role: Prime Contractors Region: Nevada Firm Type (a) Number of contracts (subcontracts) (b) Dollars (c) Estimated total dollars (d) Actual utilization (column c/c-1) (e) Utilization benchmark (availability) (f) Difference (column d-e) (g) Disparity index (d/e)x100 (1) All firms 34 $1,489 $1,489 (2) MBE/WBE 2 $181 $ (3) WBE 0 $0 $ (4) MBE 2 $181 $ (5) African American-owned 0 $0 $ (6) Total Asian American-owned 2 $181 $ (7) Asian-Pacific American-owned 2 $181 $ (8) Subcontinent Asian American-owned 0 $0 $ (9) Hispanic American-owned 0 $0 $ (10) Native American-owned 0 $0 $ (11) Unknown MBE 0 $0 (12) DBE-certified 2 $181 $ (13) Women-owned DBE 0 $0 $0 0.0 (14) Minority-owned DBE 2 $181 $ (14) African American-owned DBE 0 $0 $0 0.0 (16) Total Asian American-owned DBE 2 $181 $ (17) Asian-Pacific American-owned DBE 2 $181 $ (18) Subcontinent Asian American-owned DBE 0 $0 $0 0.0 (19) Hispanic American-owned DBE 0 $0 $0 0.0 (20) Native American-owned DBE 0 $0 $0 0.0 (21) White male-owned DBE 0 $0 $0 0.0 (22) Unknown DBE-MBE 0 $0 (23) Unknown DBE 0 $0 Notes: Spreadsheet rounds numbers to nearest thousand dollars or tenth of one percent. WBE is white women-owned firms. Source: BBC Research and Consulting Disparity Analysis.

241 APPENDIX F. Quantitative Analysis of Nevada Marketplace As discussed in Appendix B, federal courts have held that Congress had ample evidence of discrimination in the transportation contracting industry in upholding the constitutionality of the Federal DBE Program (TEA-21), and the federal regulations implementing the program (49 CFR Part 26). Entry into the Industry The federal courts found Congress spent decades compiling evidence of race discrimination in government highway contracting, of barriers to the formation of minority-owned construction businesses, and of barriers to entry. 1 Congress found that discrimination had impeded the formation of qualified minority business enterprises. BBC examined whether some of these barriers to entry found for the nation as a whole also appear to occur in Nevada. BBC separately studied barriers to entry for construction and for engineering. Entrance requirements and opportunities for advancement differ for these two branches of the overall transportation contracting industry. The first half of Appendix F examines potential barriers at several steps along the business entry chronology outlined in Figure F-1. Figure F-1. Model for studying the entry into industry Source: BBC Research and Consulting. Engineering High school education Construction Unions College education Employment in industry Apprenticeships Opportunities for advancement Entrepreneurship opportunities 1 Sherbrooke Turf, Inc., 345 F.3d at 970, (citing Adarand Constructors, Inc., 228 F.3d at ); Western States Paving Co. v. Washington State DOT, 407 F.3d 983 (9th Cir. 2005) at 992. BBC RESEARCH & CONSULTING APPENDIX F, PAGE 1

242 Education and Training Thirty-two percent of the workforce in Nevada in 2000 was minority, including 17 percent Hispanic Americans, 7 percent African Americans, 5 percent Asian-Pacific Americans, and 2 percent Native Americans. In 2000, 46 percent of the workforce was female, lower than the women s share of the workforce for the nation as a whole. Figure F-2 details the percentages of workers in each race and gender group for Nevada and the United States. The paths to job opportunities in construction and engineering, whether they be union programs to learn a construction trade or four-year college degrees in engineering, are important to understanding whether barriers affect employment opportunities for minorities and women that eventually affect the relative number of minority and female business owners in the Nevada construction and engineering industries. 2 Construction. Construction industry employees in Nevada typically have a high school degree with little or no college education. Based on the 2000 Census of Population, 31 percent of workers in construction were just high school graduates and 32 percent had not finished high school. Only 7.5 percent of people working in construction had at least a four-year college degree. Formal education beyond high school is not a prerequisite for most construction industry jobs. Training is largely on-the-job and through trade schools and apprenticeship programs. Entry level jobs for workers out of high school are often laborers, helpers or apprentices. More skilled positions may require additional training through a technical or trade school or through an apprenticeship or other employer-provided training program. Apprenticeship programs can be developed by employers, trade associations, trade unions and other groups. Workers can enter apprenticeship programs from high school or a trade school. Apprenticeships have traditionally been three- to five-year programs that combine on-the-job training with classroom instruction. 3 Figure F-2. Percentage of all workers who are minority or female in Nevada and the U.S., 2000 Note: ** Denotes that the difference in proportions between the minority and non-hispanic white groups (or female and male gender groups) is statistically significant at the 95 confidence level. Source: BBC Research and Consulting from 2000 U.S. Census 5 Public Use Micro-sample data. The raw data extract was obtained through the IPUMS program of the MN Population Center: Nevada Percentage of workers United States Percentage of workers Race/ethnicity Race/ethnicity African American 6.7 ** African American 11.4 ** Asian-Pacific American 5.3 ** Asian-Pacific American 3.4 ** Subcontinent Asian American 0.3 Subcontinent Asian American 0.7 ** Hispanic American 17.3 ** Hispanic American 11.3 ** Native American 2.0 ** Native American 1.2 ** Other minority group 0.5 Other minority group 0.4 ** Total Minority 32.1 Total Minority 28.4 ** Non-Hispanic white 67.9 Non-Hispanic white 71.6 Gender Gender Female 46.1 ** Female 47.9 ** Male 53.9 Male Feagin, Joe R. and Nikitah Imani Racial Barriers to African American Entrepreneurship: An Exploratory Study. Social Problems. 41 (4): Bureau of Labor Statistics, U.S. Department of Labor Construction. Career Guide to Industries. (accessed February 15, 2007). BBC RESEARCH & CONSULTING APPENDIX F, PAGE 2

243 Minorities comprise a slightly smaller share of workers with just a high school education in Nevada, compared with non-hispanic whites. Twenty-four percent of Hispanic American workers have just a high school education, compared with 29 percent of non-hispanic whites. Minority individuals are more likely to enter the workforce without a high school diploma than non- Hispanic whites. Between 15 and 17 percent of all non-hispanic American minority workers do not have a high school education, compared to 9 percent of non-hispanic whites. Over half of Hispanic American workers have not completed high school. In 2000, only 7 percent of Hispanic American workers ages 25 and older in Nevada have a college degree, much lower than the 23 percent of non-hispanic white workers in this age group. About 13 percent of African American workers and 11 percent of Native American workers in Nevada have college degrees. From these data, educational attainment does not appear to be a barrier for entry of minorities in the construction industry: Based on education requirements of entry level jobs and the limited education beyond high school for many African Americans, Hispanic Americans and Native Americans in Nevada, one would expect a relatively high representation of these minority groups in the Nevada construction industry. Because of the relatively high educational levels of Asian-Pacific Americans and Subcontinent Asian Americans (among workers 25 and older, 29 percent and 44 percent of these groups have college degrees), one might expect representation of these groups in construction to be lower than non-hispanic whites. The difference between the percentage of men and the percentage of women in Nevada with just a high school diploma has converged since In 2000, these percentages are similar based on Census of Population data. Engineering. About one-half of the individuals working in the engineering industry have at least a four-year college degree. When only examining people who work as engineers, this percentage increases to 78 percent. 4 The level of education needed to become an engineer may present a barrier for African Americans, Hispanic Americans and Native Americans. Figure F-3 examines the percentage of workers 25 and older who have at least a four-year degree. About 23 percent of non-hispanic whites working in Nevada had at least a four-year college degree in Substantially fewer Hispanic Americans, African Americans and Native Americans working in the state had college degrees. Relatively more Asian-Pacific Americans and Subcontinent Asian Americans had college degrees than non-hispanic whites. About as many women as men, have college degrees in Nevada. 4 BBC Research and Consulting from 2000 U.S. Census 5 Public Use Micro-sample data. The raw data extract was obtained through the IPUMS program of the MN Population Center: BBC RESEARCH & CONSULTING APPENDIX F, PAGE 3

244 Figure F-3. Percentage of all workers 25 and older with at least a four-year degree in Nevada and the U.S., 2000 Note: ** Denotes that the difference in proportions between the minority and non-hispanic white groups (or female and male gender groups) is statistically significant at the 95 confidence level. Source: BBC Research and Consulting from 2000 U.S. Census 5 Public Use Micro-sample data. The raw data extract was obtained through the IPUMS program of the MN Population Center: Nevada Percentage of workers United States Percentage of workers Race/ethnicity Race/ethnicity African American 13.3 ** African American 17.2 ** Asian-Pacific American 28.7 ** Asian-Pacific American 43.5 ** Subcontinent Asian American 44.0 ** Subcontinent Asian American 66.8 ** Hispanic American 6.9 ** Hispanic American 12.0 ** Native American 11.2 ** Native American 15.9 ** Other minority group 18.3 * Other minority group 29.0 ** Total Minority 12.9 Total Minority 20.0 ** Non-Hispanic white 22.5 ** Non-Hispanic white 31.0 Gender Gender Female 19.1 ** Female 27.6 ** Male 20.1 Male 28.4 All 19.6 All 28.0 Additional indices of high school educational attainment. Because of the importance of college admission as a step in entering the engineering industry, the study team examined additional information on the educational achievement of minority high school students in Nevada. By several performance indicators, African American students did not perform as well as non- Hispanic white students. On the Nevada High School Proficiency Examination (NHSPE), African American students demonstrated proficiency in reading at a rate of three-fourths that of non- Hispanic white students. 5 On the NHSPE, African Americans demonstrated proficiency in math at a rate of slightly over half of that of non-hispanic white students. 6 African American students had a dropout rate over 75 percent greater than that of non- Hispanic white students in the academic year. 7 The average score of African American students on the 2000 Standard Aptitude Test (SAT) was 149 points lower than that of non-hispanic white students, but this gap was one of the smallest in the nation and significantly smaller than the 201-point gap between average scores of African American and non-hispanic students across the entire nation. 8 5 Nevada Department of Education 6 Nevada Department of Education 7 U.S. Department of Education, National Center for Educational Statistics 8 Ranking the States by Black-White SAT Scoring Gap. (2002). The Journal of Blacks in Higher Education. BBC RESEARCH & CONSULTING APPENDIX F, PAGE 4

245 Hispanic American students, on average, exhibited similar disparities in achievement as found for African American students. They demonstrated the same level of proficiency in reading as African Americans but demonstrated greater proficiency in mathematics, passing the NHSPE mathematics examination two-thirds as often as non-hispanic white students. 9 Hispanic students were the most likely to drop out of high school 85 percent more likely to do so than non-hispanic white students in Standardized test and high school achievement data show educational outcomes for Asian American students to be on par with non-hispanic whites. There are many studies throughout the nation that consider whether the causes of the disparities in educational outcomes for African American and Hispanic American high school students are affected by discrimination; these are not reviewed here. Additional factors affecting college engineering programs in Nevada. Historically, college engineering programs in the United States were slow to open doors to minorities such as African Americans. 11 Nevada is home to two engineering programs, one at the University of Nevada Las Vegas and the other at the University of Nevada Reno. Figure F-4 compares the racial distribution of graduating high school seniors, undergraduates in the University of Nevada system and undergraduates in Nevada s engineering. Figure F-4. Enrollment at select Nevada campuses by race and ethnicity NV high school Total enrollment at Engineering graduating seniors UNR and UNLV enrollment at UNR ( ) (Fall 2005) and UNLV (2006) White Non-Hispanic African American Asian-Pacific Islander Native American/Alaskan Native Hispanic Total Source: U.S. Department of Education Nation Center for Education Statistics (NCES) and American Society for Engineering Education. Data shows that most minority high school graduates are not significantly less likely to go to college in Nevada than non-minority high school graduates are. African American students made up roughly the same proportion of the undergraduate population in Nevada as they did the population of graduating high school seniors. Asians Americans were most likely to attend college, making up a portion of the undergraduate population twice as large as that of the graduating high school senior population. Only Hispanic high school graduates made up a significantly smaller portion of the undergraduate population than the graduating high school senior population. 9 Nevada Department of Education 10 U.S. Department of Education, National Center for Educational Statistics 11 Unknown Author Blacks Strive to Build a Bridgehead in Academic Engineering. The Journal of Blacks in Higher Education. 41 (Autumn): , 98. BBC RESEARCH & CONSULTING APPENDIX F, PAGE 5

246 The racial distribution of the engineering student population did not differ greatly from the racial distribution of the entire undergraduate population. African American undergraduates were somewhat less likely to be engineering students, and Asian American undergraduates were more likely to be engineering students. The 6-year graduation rate among all undergraduates at UNR and UNLV differed among racial groups, as shown in Figure F-5. Figure F-5. Six-year graduation rates, UNR and UNLV White Non-Hispanic 45 Source: National Center for Education Statistics, Integrated Post Secondary Education System (IPEDS). African American Asian/Pacific Islander Native American/ Alaskan Native 30 Hispanic African American and Native American/Alaskan Native undergraduate students had the lowest graduation rates with less than one in three students graduating in six years. About one in two Asian American students at UNR and UNLV graduated within six years, the highest graduation rate of any group. While longitudinal enrollment data is not available for these programs, enrollment snapshots of engineering classes from freshman through senior years demonstrate similar proportions of students from different racial groups, suggesting no significant disparities in attrition rates among students based on racial group. 12 Employment With educational opportunities and attainment for minorities and women as context, the study team examined employment in construction and engineering in Nevada. Construction. Based on 2000 Census of Population data, 37 percent of people working in the Nevada construction industry in 2000 were minority: Hispanic Americans were 30 percent of people working in construction; African Americans were 4 percent of people working in construction; Asian-Pacific Americans comprised 1 percent of workers in construction; and Native Americans were 2 percent of the construction workforce. 12 American Society for Engineering Education BBC RESEARCH & CONSULTING APPENDIX F, PAGE 6

247 Representation of Hispanic Americans in the construction industry is considerably higher than for all industries as a whole (30 percent in construction versus 17 percent in all industries in Nevada). U.S. Census of Population data for 2000 showed that 16 percent of people working in construction in Nevada were Hispanic Americans, compared with 11 percent in all industries. African Americans and Asian-Pacific Americans working in Nevada are relatively less likely to work in construction than other race/ethnic groups: Asian-Pacific Americans were 1.2 percent of the construction workforce and 5.3 percent of all workers in Nevada in 2000 (a statistically significant difference). The fact that Asian-Pacific Americans are more likely to go to college than other groups explains only part of this difference. African Americans were 3.7 percent of the construction workforce and 6.7 percent of all workers in Nevada (a statistically significant difference). Average educational attainment of African Americans is consistent with requirements for construction jobs, so formal education cannot explain the difference. A number of studies throughout the United States have argued that race discrimination by construction unions have held down employment of African Americans in construction trades. 13 Relative under-representation of African Americans and Asian-Pacific Americans was found in both 1980 and in For example, 3.9 percent of construction industry workers were African American in 1980 compared with 3.7 percent in In 2000, 11 percent of Nevada s construction workers were women. The share of construction workers in the Nevada who are women remained flat from 1980 to (In the United States, the share of women workers increased slightly in construction over the same time period). The increase in Hispanic American workers from 1980 to 2000 in Nevada mirrors similar patterns in the nation, with a greater percentage increase at the state level. Figure F-6 compares the composition of the Nevada construction industry with the total Nevada workforce. 13 Waldinger, Roger and Thomas Bailey The Continuing Significance of Race: Racial Conflict and Racial Discrimination in Construction. Politics & Society, 19(3). 14 Note that Census definitions of race and ethnicity have changed over time, which affects comparability of statistics from one census year to the next. Appendix G discusses how BBC coded data concerning race and ethnicity for each decennial census. BBC RESEARCH & CONSULTING APPENDIX F, PAGE 7

248 Figure F-6. Demographics of workers in construction and all industries in Nevada and the U.S., 1980 and 2000 Nevada Construction All industries (n = 1,993) (n = 5,786) (n = 25,132) (n = 61,191) Race/ethnicity African American Asian-Pacific American Subcontinent Asian American Hispanic American ** Native American Other minority group Total minority Non-Hispanic white 87.3 ** 62.7 ** Total Gender Female 11.2 ** 11.4 ** Male 88.8 ** 88.6 ** Total United States Construction All industries (n = 391,361) (n = 579,867) (n = 6,338,776) (n = 8,295,671) Race/ethnicity African American 7.7 ** 7.5 ** Asian-Pacific American 0.6 ** 1.3 ** Subcontinent Asian American 0.1 ** 0.2 ** Hispanic American 5.7 ** 15.8 ** Native American 0.9 ** 1.6 ** Other minority group Total minority Non-Hispanic white 84.9 ** 73.2 ** Total Gender Female 8.9 ** 10.2 ** Male 91.1 ** 89.8 ** Total Note: Source: ** Denotes that the difference in proportions between the construction and all industry groups for the census year is statistically significant at the 95 confidence level. BBC Research and Consulting from 1980 and 2000 U.S. Census 5 Public Use Micro-sample data. The raw data extracts were obtained through the IPUMS program of the MN Population Center: BBC RESEARCH & CONSULTING APPENDIX F, PAGE 8

249 Importance of unions in entering the construction industry. Labor market researchers characterize construction as a historically volatile industry sensitive to business cycles, making the presence of labor unions important for stability and job security within the industry. 15 The temporary nature of construction work results in uncertain job prospects, and high turnover of laborers presents a disincentive for construction firms to invest in training. Some scholars have claimed that constant turnover has lent itself to informal recruitment practices and nepotism, compelling laborers to tap social networks for training and work. They credit the importance of social networks with the high degree of ethnic segmentation in the construction industry. 16 Unable to integrate themselves into traditionally white social networks, African Americans faced long-standing historical barriers to entering the industry. 17 Construction unions aim to provide a reliable source of labor for employers and preserve job opportunities for workers by formalizing the recruitment process, coordinating training and apprenticeships, enforcing standards of work and mitigating wage competition. The unionized sector of construction would seemingly be the best inroad for African American and other underrepresented groups into the industry. However, discrimination by trade unions is identified as a major factor that has historically prevented minorities from obtaining employment in skilled trades. 18 Researchers have suggested ways in which unions have perpetuated discrimination in construction: Unions have used admissions criteria that adversely affect minorities. Federal courts ruled in the 1970s that standardized testing requirements unfairly disadvantaged minority applicants with less exposure to testing and that requirements that new union members have relatives in the union perpetuate the effects of past discrimination. 19 Of those minority individuals who are admitted to unions, a disproportionately low number are admitted into apprenticeship programs coordinated by unions. Apprenticeship programs are an important means of producing skilled construction laborers, and the reported exclusion of blacks from these programs has severely limited their access to skilled occupations in the construction industry. 20 While formal training and apprenticeship programs exist within unions, most training of union members takes place informally through social networking. Nepotism characterizes the unionized sector of construction as it does the non-unionized sector, and this favors a white-dominated status quo Applebaum, Herbert Construction Workers, U.S.A. Westport: Greenwood Press. 16 Waldinger, Roger and Thomas Bailey The Continuing Significance of Race: Racial Conflict and Racial Discrimination in Construction. Politics & Society, 19(3). 17 Feagin, Joe R. and Nikitah Imani Racial Barriers to African American Entrepreneurship: An Exploratory Study. Social Problems. 41( 4): U.S. Department of Justice Proposed Reforms to Affirmative Action in Federal Procurement. 61 FR Ibid. See United States v. Iron Workers Local 86 (1971), Sims v. Sheet Metal Workers International Association (1973), and United States v. International Association of Bridge, Structural and Ornamental Iron Workers (1971). 20 Applebaum Construction Workers, U.S.A. 21 Ibid The high percentage of skilled workers reported having a father or relative in the same trade. However, the author suggests this may not be indicative of current trends. BBC RESEARCH & CONSULTING APPENDIX F, PAGE 9

250 Traditionally white unions have been successful in resisting policies designed to increase black participation in training programs. The political strength of unions in resisting affirmative action in construction has hindered the advancement of blacks in the industry. 22 Discriminatory practices in employee referral procedures, including apportioning work based on seniority, have precluded minority union members from having the same access to construction work as their white counterparts. 23 According to testimony from black union members, even when unions implement meritocratic mechanisms of apportioning employment to laborers, white workers are often allowed to circumvent procedures and receive preference for construction jobs. 24 However, these historical observations may not be indicative of current dynamics in construction unions. For example, the 2006 Current Population Survey (CPS) provides current data on union membership indicating higher union membership for African Americans in construction. 25 The CPS asked participants, Are you a member of a labor union or of an employee association similar to a union? CPS data show union membership for African Americans in construction to be higher (17 percent) than non-hispanic whites (14 percent) On the other hand, only 7 percent of Hispanic Americans are union members based on these national data. Union membership nationwide has experienced a steady decline over the past several decades, but Nevada is one of the only states in which union membership has increased in recent years. 26 However, it is unclear from past studies whether unions help or hinder equal opportunity in construction today, and whether effects in Nevada are different from other parts of the country. Also, Hispanic American representation in the national construction industry has seen great advances despite relatively few Hispanic Americans being union members. There are no definitive statistical results on the role of unions in disparities in African American or Asian-Pacific American employment in construction. 22 Waldinger and Bailey The Continuing Significance of Race: Racial Conflict and Racial Discrimination in Construction. 23 U.S. Department of Justice Proposed Reforms to Affirmative Action in Federal Procurement. 61 FR See United Steelworkers of America v. Weber (1979) and Taylor v. United States Department of Labor (1982). 24 Feagin and Imani Racial Barriers to African American Entrepreneurship: An Exploratory Study Current Population Survey (CPS), U.S. Census Bureau and Bureau of Labor Statistics. 26 Robison, Jennifer. Membership Rebounds: State of the Unions. Las Vegas Review-Journal. April 15, BBC RESEARCH & CONSULTING APPENDIX F, PAGE 10

251 Engineering industry. The study team also examined race, ethnic and gender composition of the engineering industry in Nevada. More than 80 percent of people working in the engineering industry in 2000 were non-hispanic whites, which is greater than non-hispanic whites overall representation across all industries in the state. Asian-Pacific Americans were also more likely to be employed in the engineering industry than indicated from their representation among all workers in Nevada. As shown in Figure F-7, African Americans and Hispanic Americans had relatively low representation in the engineering industry: African Americans made up a relatively small share of engineering industry workers relative to African Americans share of employment in other industries in 2000 (3.3 percent compared with 6.7 percent). Hispanic Americans were 5.6 percent of engineering industry workers in 2000, less than one-half of Hispanic American representation in the overall Nevada workforce. In 2000, women were 29 percent of engineering industry workers in Nevada, up from 26 percent in Employment patterns seen for Nevada s engineering industry are generally consistent with the nation as a whole. Engineering occupations. The study team also examined the relative number of minorities and women among civil, environmental, mining and geological engineers in Nevada in Asian Americans may have a higher proportion of engineers as compared with college-educated workers 25 and older, and African Americans and Hispanic Americans may have a lower proportion of engineers. BBC was not able to report the statistical significance of these differences due to a small sample size. Overall, minorities compared to non-hispanic whites appear to have similar proportions when comparing engineers to college-educated workers. About 9 percent of engineers in Nevada are women, far less than women s share of people with college degrees. This difference is statistically significant. Figure F-8 on the following page presents these results. BBC RESEARCH & CONSULTING APPENDIX F, PAGE 11

252 Figure F-7. Demographics of workers in the engineering and all industries in Nevada and the U.S., 1980 and 2000 Nevada Engineering All industries (n = 127) (n = 535) (n = 25,132) (n = 61,191) Race/ethnicity African American ** Asian-Pacific American ** Subcontinent Asian American Hispanic American ** Native American Other minority group Total minority 4.7 ** 18.9 ** Non-Hispanic white 95.3 ** 81.1 ** Total Gender Female 26.0 ** 29.3 ** Male 74.0 ** 70.7 ** Total United States Engineering All industries (n = 391,361) (n = 579,867) (n = 6,338,776) (n = 8,295,671) Race/ethnicity African American 3.1 ** 4.3 ** Asian-Pacific American 2.7 ** 4.7 ** Subcontinent Asian American 1.0 ** 1.3 ** Hispanic American 3.5 ** 5.7 ** Native American 0.4 ** 0.8 ** Other minority group Total minority 10.9 ** 17.2 ** Non-Hispanic white 89.2 ** 82.8 ** Total Gender Female 23.2 ** 27.1 ** Male 76.8 ** 72.9 ** Total Note: Source: ** Denotes that the difference in proportions between the construction and all industry groups for the census year is statistically significant at the 95 confidence level. The engineering industry sector in 2000 is architectural, engineering and related services, and in 1980 is engineering, architectural and surveying services. Though closely related, the groups are not exactly comparable. BBC Research and Consulting from 1980 and 2000 U.S. Census 5 Public Use Micro-sample data. The raw data extracts were obtained through the IPUMS program of the MN Population Center: BBC RESEARCH & CONSULTING APPENDIX F, PAGE 12

253 Figure F-8. Demographics of engineers and workers 25 and older with a college degree in Nevada and the U.S., 2000 Nevada Workers Workers 25+ with a 25+ with a Engineers college degree Engineers college degree (n = 153) (n = 10,137) United States (n = 16,342) (n = ) Race/ethnicity Race/ethnicity African American African American 3.9 ** 6.6 Asian-Pacific American Asian-Pacific American 6.3 ** 5.3 Subcontinent Asian American Subcontinent Asian American 2.6 ** 1.7 Hispanic American Hispanic American Native American Native American 0.7 ** 0.6 Other minority group Other minority group Total Minority Total Minority Non-Hispanic white Non-Hispanic white 81.7 ** 81.1 Gender Gender Female 8.6 ** 44.7 Female 11.8 ** 48.9 Male 91.4 ** 55.3 Male 88.2 ** 51.1 Note: Source: **, * Denotes that the difference in proportions between engineer and workers 25+ with a college degree is statistically significant at the 95 and 90 confidence levels, respectively. BBC Research and Consulting from 2000 U.S. Census 5 Public Use Micro-sample data. The raw data extract was obtained through the IPUMS program of the MN Population Center: Advancement in Construction To research opportunities for advancement, the study team examined a number of specific occupations in construction related to transportation construction. Relevant construction trades include: Cement masons, concrete finishers, segmental pavers and terrazzo workers, who smooth and finish poured concrete surfaces and work with cement to create sidewalks, curbs, roadways or other surfaces; Paving, surfacing and tamping equipment operators, who operate equipment used for applying concrete, asphalt, or other materials to road beds, parking lots, or airport runways and taxiways, or equipment used for tamping gravel and dirt; Miscellaneous construction equipment operators, who operate motor graders, bulldozers, scrapers, compressors, pumps, derricks, shovels, tractors, or front-end loaders to excavate, move, and grade earth, erect structures, or pour concrete or other hard surface pavement; Electricians, who install, connect, test and maintain building electrical systems, which also can include lighting, climate control, security and communications; Structural and reinforcing iron and metal workers, who place and install iron or steel girders, columns and other structural members to form completed structures or frameworks of buildings, bridges and other structures; and Construction laborers, who perform a wide range of physically demanding tasks at building and highway construction sites, such as tunnel and shaft excavation, hazardous waste removal, environmental remediation and demolition. BBC RESEARCH & CONSULTING APPENDIX F, PAGE 13

254 The above definitions are from the U.S. Bureau of Labor Statistics. 27 The U.S. Bureau of Labor Statistics also describes other trades involved in construction, several of which directly apply to transportation construction: Truck drivers; Crane and tower operators; and Dredge, excavating and loading machine and dragline operators. Finally, the U.S. Bureau of Labor Statistics analyzes first-line supervisors and managers of construction trades and extraction workers. Management personnel are the most likely of any construction occupation to require a college degree. Race and ethnic composition of construction trades. There are large differences in the racial and ethnic makeup of workers in different trades related to highway construction based on the 2000 U.S. Census of Population. Figure F-9 shows the proportion of occupations for people who work in construction in Nevada for Overall, 37 percent of the construction workforce was minorities (29.6 percent Hispanic Americans and 7.8 percent other minorities). Minorities comprised a relatively large share of the Nevada construction workforce for construction laborers (61 percent); and cement masons, concrete finishers and terrazzo workers (63 percent). Construction equipment operators had relatively low representation of minorities. About 27 percent of first-line supervisors of construction workers were minorities, less than minorities share of all occupations in construction. Figure F-9 examines these statistics. Figure F-9. Minorities as a percentage of construction workers in selected occupations in Nevada, 2000 Note: The construction equipment operators category includes the following occupations: paving, surfacing and tamping equipment operators; dredge, excavating and loading machine operators; dragline operators; crane and tower operators; and miscellaneous construction equipment operators. Source: BBC Research and Consulting from 2000 U.S. Census 5 Public Use Micro-sample data. The raw data extract was obtained through the IPUMS program of the MN Population Center: All construction workers (n = 5,786) Construction laborers (n = 910) Cement masons, concrete finishers and terrazzo workers (n = 68) Equipment operators (n = 249) Drivers, sales workers and truck drivers (n = 123) Iron and steel workers (n = 54) Electricians (n = 280) First-line supervisors (n = 448) Hispanic Americans Other minorities 27 Bureau of Labor Statistics, U.S. Department of Labor Standard Occupational Classification Major Groups. (accessed February 15, 2007). BBC RESEARCH & CONSULTING APPENDIX F, PAGE 14

255 Most of the differences for minorities, overall, reflect differences in Hispanic Americans representation in these occupations. There were some notable exceptions, however: African Americans were a relatively large share of iron and steel workers (14.1 percent) This is a statistically significant difference from the overall representation of African Americans in the construction industry as a whole (4.3 percent). Even with the higher representation of African Americans in some construction laborer jobs, the share of these jobs going to African Americans still falls short of African Americans representation in the Nevada workforce. Asian-Pacific Americans were a relatively large share of truck drivers (4.8 percent) compared with the share of all construction workers who were Asian-Pacific Americans (1.2 percent). This difference is statistically significant. Native American workers made up a relatively large share of construction equipment operators, 4.1 versus 2.4 percent. This difference is statistically significant at the 90 percent confidence level. Women in construction trades. About 11 percent of workers in the Nevada construction industry in 2000 were women. In occupations most closely related to the highway construction industry, however, few workers were women. As shown in Figure F-10: None of the 68 cement masons, concrete finishers and terrazzo workers or 54 iron and steel workers surveyed in the 2000 U.S. Census of Population was women. Four percent of construction equipment operators were women, about the same as women s representation among construction laborers and truck drivers. Women were 2.5 percent of electricians and 2.7 percent of first-line supervisors. Figure F-10. Women as a percentage of construction workers in selected occupations in Nevada, 2000 Note: The construction equipment operators category includes the following occupations: paving, surfacing and tamping equipment operators; dredge, excavating and loading machine operators; dragline operators; crane and tower operators; and miscellaneous construction equipment operators. First-line supervisors (n =448) Electricians (n =280) Iron and steel workers (n =54) Drivers, sales workers and truck drivers (n =123) Equipment operators (n =249) Source: BBC Research and Consulting from 2000 U.S. Census 5 Public Use Micro-sample data. The raw data extract was obtained through the IPUMS program of the MN Population Center: Cement masons, concrete finishers and terrazzo workers (n =68) Construction laborers (n =910) All construction workers (n =5,786) BBC RESEARCH & CONSULTING APPENDIX F, PAGE 15

256 Relative share of minorities and women in construction who are managers. Figures III-9 and III-10 showed the representation of minorities and women among first-line supervisor positions in the Nevada construction industry. The study team also reviewed employment of minorities and women as managers in the industry, a higher position than first-line supervisors. Construction managers, on average, have more education than first-line supervisors (24 percent have at least a bachelor s degree in Nevada compared with 6 percent of first-line supervisors). Figure F-11 shows the proportion of workers in the construction industry in each group that reports a manager occupation. In 2000, 7.6 percent of non-hispanic whites working in the Nevada construction industry were managers. In contrast, only 1 percent of Hispanic Americans were managers. The share construction workers who were managers also fell below non-hispanic whites for all other racial/ethnic groups. Slightly fewer women working in construction were managers than men (4 percent versus 6 percent), though this difference is not statistically significant. In 1980, women had a higher rate of working as managers: 8 percent versus 4 percent for men, and this difference is statistically significant. The results described above for Nevada are consistent with the relative share of construction workers who are managers across the United States. Figure F-11. Percentage of construction workers who work as a manager in Nevada and the U.S., 1980 and 2000 Nevada United States Race/ethnicity Race/ethnicity African American African American 1.4** 2.9** Asian-Pacific American Asian-Pacific American Subcontinent Asian American Subcontinent Asian American ** Hispanic American ** Hispanic American 1.9 ** 2.4 ** Native American * Native American 2.2 ** 4.2 ** Other minority group Other minority group ** Total Minority 2.4 * 1.5 ** Total Minority Non-Hispanic white Non-Hispanic white Gender Gender Female 8.0 ** 4.0 Female 5.1** 3.9** Male Male All All Note: Source: **, * Denote that the difference in proportions between the minority and non-hispanic white groups (or female and male gender groups) is statistically significant at the 95 and 90 confidence levels, respectively. BBC Research and Consulting from 1980, 1990 and 2000 U.S. Census 5 Public Use Micro-sample data. The raw data extracts were obtained through the IPUMS program of the MN Population Center: BBC RESEARCH & CONSULTING APPENDIX F, PAGE 16

257 Business Ownership Many studies have explored differences in rates of business ownership between minorities and nonminorities in the United States. Though self-employment rates have increased for minorities and women, studies by Waldinger and Aldrich (1990) Fairlie and Meyer (1996), and Fairlie and Robb (2006) indicate that different opportunities for entrepreneurship exist based on gender, ethnicity and race. 28 One study found that the explanatory power of race and ethnicity in self-employment is almost greater in the presence of other factors that also affect self-employment. 29 Disparities in the rates of business ownership have been one type of evidence used by courts in finding the Federal DBE Program to be valid. Any disparities in business ownership rates may also be important when considering step 2 adjustments in the annual DBE goal. Nevada construction industry. The 5 Public Use Micro-sample Data from the U.S. Census of Population can be utilized to study rates of self-employment in Nevada. Business ownership rates in Figure F-12 shows the percentage of different groups working in the construction industry that were self-employed in 2000 and in The state of Nevada has a low rate of construction business ownership when compared to the U.S. In 2000, 10.1 percent of workers in the construction industry in Nevada were self-employed (in incorporated or unincorporated businesses), less than half of the rate for the United States for that year (22.3 percent). African Americans and Hispanic Americans working in the Nevada construction industry owned businesses at well below the rate of non-hispanic whites, 2.7 and 3.9 percent compared with 13.5 percent. The rate of self-employment for Native Americans working in the construction industry in Nevada is 6.7 percent, less than half of the rate of non-hispanic whites. Unlike in the U.S., the proportion of self-employed women is similar to men in Nevada. In sum, there were substantial and statistically significant disparities in the rates of business ownership in 2000 among people working in construction in Nevada for African Americans, Hispanic Americans, and Native Americans compared to non-hispanic whites. Self-employment in construction is lower for all groups in Nevada, compared with the same race and gender groups nationwide. 28 See Waldinger, Roger and Howard E. Aldrich Ethnicity and Entrepreneurship. Annual Review of Sociology ; Fairlie, Robert W. and Bruce D. Meyer Ethnic and Racial Self-Employment Differences and Possible Explanations. The Journal of Human Resources, Volume 31, Issue 4, ; Fairlie, Robert W. and Alicia M. Robb Why are Black Owned Businesses Less Successful than White-Owned Businesses? The Role of Families, Inheritances, and Business Human Capital. Forthcoming Journal of Labor Economics.; and Fairlie, Robert W. and Alicia M. Robb Race, Families and Business Success: A Comparison of African-American-, Asian-, and White-Owned Businesses. Russell Sage Foundation. 29 Fairlie, Robert W. and Bruce D. Meyer Ethnic and Racial Self-Employment Differences and Possible Explanations. The Journal of Human Resources, Volume 31, Issue 4, BBC RESEARCH & CONSULTING APPENDIX F, PAGE 17

258 Figure F-12. Percentage of self-employed workers in the construction industry in Nevada and the U.S., 1980 and 2000 Nevada United States Race/ethnicity Race/ethnicity African American ** African American 9.0 ** 15.7 ** Asian-Pacific American Asian-Pacific American 11.2 ** 21.4 ** Subcontinent Asian American Subcontinent Asian American 5.9 ** 19.6 ** Hispanic American 8.5 * 3.9 ** Hispanic American 10.5 ** 12.6 ** Native American ** Native American 9.5 ** 19.0 ** Other minority group Other minority group 14.8 * 23.7 Total Minority 5.9 ** 4.5 ** Total Minority 9.7 ** 14.5 ** Non-Hispanic white Non-Hispanic white Gender Gender Female Female 9.5 ** 17.1 ** Male Male All All Note: Source: *, ** Denotes that the difference in proportions between the minority and non-hispanic white groups (or female and male gender groups) is statistically significant at the 90 and 95 confidence level. BBC Research and Consulting from 1980, 1990 and 2000 U.S. Census 5 Public Use Micro-sample data. The raw data extracts were obtained through the IPUMS program of the MN Population Center: Changes in business ownership rates in Nevada since In 1980, 14.3 percent of non- Hispanic whites working in the construction industry in Nevada were self-employed. The rate of selfemployment in this group decreased slightly from 1980 to Asian-Pacific Americans showed a dramatic increase in self-employment in construction since 1980 (negligible in 1980 and 12.5 percent in 2000). This growth in rates of business ownership is not evident for African, Native and Hispanic Americans: Although business ownership rates in construction nearly doubled since 1980 for African Americans in the United States, there was little change in the rate for African Americans working in the Nevada construction industry. Business ownership rates were also flat for Native Americans; 6.3 percent in 1980 compared with 6.7 percent in This is sharply contrasted by the U.S rates for the same period: 9.5 percent in 1980, increasing to 19.0 percent in The rate of business ownership decreased substantially among Hispanic Americans working in construction in Nevada from 8.5 percent in 1980 to 3.9 percent in Rates in the U.S. increased two percentage points for Hispanic Americans over the same period of time. BBC RESEARCH & CONSULTING APPENDIX F, PAGE 18

259 Nevada engineering industry. In 2000, the census data does not indicate a difference in selfemployment between minorities and non-hispanic whites in Nevada. However, looking at specific race groups, 27 percent of Hispanic Americans are business owners, compared with 14 percent overall. This difference is statistically significant at the 95 level of confidence. Figure F-13 shows the percentage of different groups working in the engineering industry that were self-employed in 2000 and in Women are self-employed in 2000 at a rate of 10 percent, lower than the 16 percent reported for men. This difference is statistically significant at the 90 confidence level. BBC does not find evidence of disparities in business ownership for this industry. Note, however, that the sample size for individual groups in Nevada is less than 40 observations each. Figure F-13. Percentage of self-employed workers in the engineering industry in Nevada and the U.S., 1980 and 2000 Nevada United States Race/ethnicity Race/ethnicity African American African American 5.0 ** 6.4 ** Asian-Pacific American Asian-Pacific American 8.2 ** 8.7 ** Subcontinent Asian American n/a 0.0 Subcontinent Asian American 6.0 ** 6.2 ** Hispanic American ** Hispanic American 8.7 ** 9.5 ** Native American n/a 26.8 Native American 9.5 * 11.6 ** Other minority group n/a 0.0 Other minority group Total Minority Total Minority 7.3 ** 8.4 ** Non-Hispanic white Non-Hispanic white Gender Gender Female * Female 4.2 ** 7.8 ** Male Male All All Note: Source: *, ** Denotes that the difference in proportions between the minority and non-hispanic white groups (or female and male gender groups) is statistically significant at the 90 and 95 confidence level respectively. N/a indicates zero observations for the race/ethnic group. BBC Research and Consulting from 1980, 1990 and 2000 U.S. Census 5 Public Use Micro-sample data. The raw data extracts were obtained through the IPUMS program of the MN Population Center: BBC RESEARCH & CONSULTING APPENDIX F, PAGE 19

260 Potential causes of differences in business ownership rates. A number of researchers have examined whether there are disparities in business ownership rates after considering factors such as education and age. A number of studies have found that disparities in business ownership still exist in the presence of such factors: Several studies have found that access to financial capital is a strong determinant of business ownership. One consistent finding is the positive relationship between startup capital and business formation, expansion and survival. 30 One study found that housing appreciation measured at the MSA-level is a positive determinant of entry into selfemployment. 31 However, unexplained differences still exist when controlling for these factors. 32 Education has positive effects on the probability of business ownership. However, findings from multiple studies indicate that minorities are still less likely to own a business than their non-minority counterparts with the same levels of education. 33 Intergenerational links contribute to the likelihood of self-employment. One study found that experience working for a self-employed family member increases the likelihood of self employment for minority groups. 34 Studies have found that time since immigration or assimilation to American society, are important determinants of self-employment. However, unexplained differences in minority-business ownership still exist when controlling for these factors. 35 Appendix H reports findings from multivariate statistical models that explain business ownership in California s construction and engineering industries as a function of race and gender as well as neutral factors, such as age and education These analyses draw upon the methods and model specification used in past business ownership research and in previous court-approved disparity studies. 30 See Lofstrom, Magnus and Chunbei Wang Hispanic Self-Employment: A Dynamic Analysis of Business Ownership. Working paper, Forschungsinstitut zur Zukunft der Arbeit Institute for the Study of Labor.; and Fairlie, Robert W. and Alicia M. Robb Race, Families and Business Success: A Comparison of African-American-, Asian-, and White-Owned Businesses. Russell Sage Foundation. 31 Fairlie, Robert W. and Harry A. Krashinksy Liquidity Constraints, Household Wealth and Entrepreneurship Revisited. 32 Lofstrom, Magnus and Chunbei Wang Hispanic Self-Employment: A Dynamic Analysis of Business Ownership. Working paper, Forschungsinstitut zur Zukunft der Arbeit Institute for the Study of Labor. 33 See Fairlie, Robert W. and Bruce D. Meyer Ethnic and Racial Self-Employment Differences and Possible Explanations. The Journal of Human Resources, Volume 31, Issue 4, ; and Butler, John Sibley and Cedric Herring Ethnicity and Entrepreneurship in America: Toward an Explanation of Racial and Ethnic Group Variations in Self- Employment. Sociological Perspectives See Fairlie, Robert W. and Alicia M. Robb Race, Families and Business Success: A Comparison of African-American-, Asian-, and White-Owned Businesses. Russell Sage Foundation; and Fairlie, Robert W. and Alicia M. Robb Why are Black Owned Businesses Less Successful than White-Owned Businesses? The Role of Families, Inheritances, and Business Human Capital. Forthcoming Journal of Labor Economics. 35 See Fairlie, Robert W. and Bruce D. Meyer Ethnic and Racial Self-Employment Differences and Possible Explanations. The Journal of Human Resources, Volume 31, Issue 4, ; and Butler, John Sibley and Cedric Herring Ethnicity and Entrepreneurship in America: Toward an Explanation of Racial and Ethnic Group Variations in Self- Employment. Sociological Perspectives BBC RESEARCH & CONSULTING APPENDIX F, PAGE 20

261 Homeownership and Mortgage Lending One of the factors researchers examine when studying business formation and success is access to capital. Discrimination in capital markets can prevent minorities and women from acquiring the capital necessary to start or expand a business. 36 BBC begins by studying homeownership and mortgage lending, as home equity is an important source of capital to start and expand businesses. Homeownership. Wealth created through homeownership can be an important source of capital to start or expand a business. Any barriers to homeownership and home equity growth for minorities or women can affect business opportunities for these groups. Similarly, any barriers to accessing the equity in a home through home mortgages can also affect the capital available for new or expanding businesses. In sum: A home is a tangible asset that provides borrowing power; 37 Wealth that accrues from housing equity and tax savings from home ownership contribute to capital formation; 38 Mortgage loans have traditionally been the second largest loan type for small businesses behind lines of credit; 39 and Homeownership is associated with an estimated 30 percent reduction in predicted probability of loan denial for small businesses. 40 The study team first considered homeownership rates in Nevada and home prices before turning to data on the home mortgage market. 36 For an example, see: Coleman, Susan. Small Firm Sources of Debt Capital: A Comparison by Gender, Race and Ethnicity. University of Hartford. 37 Nevin, Allen Homeownership in Nevada: A CBIA Economic Treatise. Nevada Building Industry Association Jackman, Mary R. and Robert W. Jackman Racial Inequalities in Home Ownership. Social Forces Berger, Allen N. and Gregory F. Udell The Economics of Small Business Finance: The Roles of Private Equity and Debt Markets in the Financial Growth Cycle. Journal of Banking and Finance Cavalluzzo, Ken and John Wolken Small Business Loan Turndowns, Personal Wealth and Discrimination. Journal of Business. 78: BBC RESEARCH & CONSULTING APPENDIX F, PAGE 21

262 Homeownership rates. Homeownership is the first step toward building home equity that can be tapped for other purposes. Many studies document past discrimination in the housing markets in the United States. For example, the United States has a history of restrictive real estate covenants and property laws affecting the ownership rights of minorities and women. 41 In the past, a woman s participation in home ownership was ancillary to that of her husband and parents. 42 Figure F-14 illustrates disparities in homeownership between minority groups and non-hispanic whites in Nevada and the nation in About 40 percent of African American households were homeowners compared with 66 percent of non-hispanic whites in the state. Homeownership rates were also particularly low for Hispanic Americans and in Nevada. Overall rates of homeownership were lower in Nevada than the nation, with the exception of homeownership among Asian Americans. Figure F-14. Homeownership rates, 2000 African American Source: U.S. Census Bureau, KnowledgePlex Calculations, an online resource maintained by the Fannie Mae Foundation. Asian American Nevada Hispanic American Native American United States Non-Hispanic white Different rates of homeownership in part reflect lower incomes for minorities. This may be selfreinforcing, as low wealth puts individuals at a disadvantage in becoming homeowners, which is an effective path to building wealth. One study found statistically significant results indicating that the probability of homeownership is considerably lower for African Americans than it is for comparable non-hispanic whites throughout the U.S Ladd, Helen F Equal Credit Opportunity: Women and Mortgage Credit. The American Economic Review. 72: Card, Emily Women, Housing Access, and Mortgage Credit. Signs. 5: Jackman Racial Inequalities in Home Ownership. BBC RESEARCH & CONSULTING APPENDIX F, PAGE 22

263 Home values. Homeownership and the value of the home is a direct indicator of capital available to form or expand businesses. For example, using microdata from matched Current Population Surveys ( ), one study found that differences in housing appreciation between metropolitan areas affected entry into self-employment. The study indicated that a 10 percent annual increase in housing equity increases the mean probability of entrepreneurship by approximately 20 percent. 44 U.S. Bureau of the Census data on home values in 2000 allows comparisons of median home values by race and ethnicity. The median home value of non-hispanic whites in 2000 was $146,200 in Nevada, substantially above the median value of homes owned by African Americans, Hispanic Americans and Native Americans. Figure F-15. Median home value, 2000 African American 80, ,600 Source: U.S. Census Bureau, Census 2000 and BBC Research & Consulting Asian American Hispanic American 118, , , ,300 Nevada Native American 100,500 81,000 United States Non-Hispanic white 146, , , , , , , ,000 Steering by real estate agents. A number of researchers have found that discrimination by real estate agents contributes to residential segregation of minorities. 45 One such practice is steering of prospective homebuyers toward particular neighborhoods and away from others because of their race or ethnicity (a practice that has been prohibited by law for many decades). Mortgage lending. Minorities may be denied opportunities to own homes, to purchase more expensive homes or to access equity in their homes if they are discriminated against when applying for home mortgages. 44 Fairlie, Robert W. and Harry A. Krashinky Liquidity Constraints, Household Wealth, and Entrepreneurship Revisited. IZA Discussion Paper. No Galster, George and Erin Godfrey Racial Steering by Real Estate Agents in the U.S. in Journal of the American Planning Association. 71: BBC RESEARCH & CONSULTING APPENDIX F, PAGE 23

264 A common source of information concerning mortgage lending discrimination is Home Mortgage Disclosure Act (HMDA) data. HMDA data pertain to information about mortgage loan applications for financial institutions, savings banks, credit unions and some mortgage companies. 46 The data contain information about the location, dollar amount, and types of loans made, as well as racial and ethnic information, income, and credit characteristics of all loan applicants. The data are available for home purchases, loan refinances, and home improvement loans. The study team s analysis uses statistics provided by KnowledgePlex on loan denial rates of highincome borrowers. High-income borrowers include households with 120 percent or more of the U.S. Department of Housing and Urban Development (HUD) area median family income. 47 Conventional loans are loans not insured by a government program. Loan denial rates are calculated as a share of mortgage loan applications that have either been denied or originated (this excludes terminations of the application process by the potential borrower). Data on loan denial rates for mortgages in Nevada show higher denial rates for minority than for non-hispanic white high-income households. Figure F-16 reports loan denial rates for the state for Among high-income households applying for mortgages, 25 percent of African American applicants had their applications denied compared with 16 percent of non-hispanic white households. Loan denial rates were also higher for Native Americans, Hispanic Americans and Asian Americans. The patterns of loan denial rates by race and ethnicity in Nevada mirror those of the United States as a whole for Figure F-16. Denial rates of conventional purchase loans to high-income households, 2005 African American Asian American Nevada Note: High-income borrowers include households with 120 or more than the HUD area medina family income. Hispanic American Source: FFIEC HMDA data 2005 and KnowledgePlex calculations, an online resource maintained by the Fannie Mae Foundation. Native American Non-Hispanic white United States Financial institutions are required to report HMDA data if they have assets of more than $32 million, have a branch office in a metropolitan area, and originated at least one home purchase or refinance loan in the reporting calendar year. Mortgage companies are required to report HMDA if they are for-profit institutions, had home purchase loan originations exceeding 10 percent of all loan obligations in the past year, are located in an Metropolitan Statistical Area (or originated five or more home purchase loans in an MSA) and either had more than $10 million in assets or made at least 100 home purchase or refinance loans in the calendar year median family income is $58,000 for the United States and $62,500 for Nevada. Based on 2000 census data on family incomes. Data are updated to 2005 using Census P-60 median family income data, Census American Community Survey data on changes in state median family incomes and local Bureau of Labor Statistics Wage data. BBC RESEARCH & CONSULTING APPENDIX F, PAGE 24

265 A number of national studies have examined disparities in loan denial rates and loan amounts for minorities in the presence of other influences. Examples include the following: The Boston Fed Study is one of the most discussed studies of mortgage lending discrimination. 48 It was conducted using the most comprehensive set of credit characteristics ever assembled for a study on mortgage discrimination. 49 The study provided persuasive evidence that lenders in the Boston area discriminated against minorities in Using the Federal Reserve Board s 1983 Survey of Consumer Finances and the 1980 Census of Population and Housing data, logit statistical analysis revealed that minority households were one-third as likely to receive conventional loans as non-hispanic white households after taking into account financial and demographic controls. 51 Findings from a Midwest study indicate a significant relationship between race and both the number and amount of mortgage loans. Data matched on socioeconomic characteristics revealed that African American borrowers across 13 census tracts received significantly less of both compared to their white counterparts. 52 On the other hand, other studies have found that differences in preferences for FHA versus conventional loans among racial and ethnic groups may partly explain disparities found in conventional loan approvals between minorities and non-minorities. 53 Several studies have found that minority borrowers are far more likely to receive FHA loans than comparable non-hispanic white borrowers at all income and wealth levels. FHA loans are insured by the government thus protecting the lender, but the borrower can be hurt by higher costs. 54 Higher fees and interest rates. Denial of loans is only one way that minorities could be discriminated against in the home mortgage market; mortgage-lending discrimination can also reveal itself through high fees and interest rates. The housing market provides a unique atmosphere for this type of discrimination through fees associated with various loan types. One of the fastest growing segments of the home mortgage industry is subprime lending. From 1994 through 2003, subprime mortgage activity grew by 25 percent per year and accounted for $330 billion of U.S. mortgages in 2003, up from $35 billion a decade earlier. Subprime loans are marketed and sold to customers with blemished or limited credit histories that would typically not qualify for prime loans. 48 Munnell, Alicia H., Geoffrey Tootell, Lynn Browne and James McEneaney Mortgage Lending in Boston: Interpreting HMDA Data. The American Economic Review. 86: Ladd, Helen F Evidence on Discrimination in Mortgage Lending. The Journal of Economic Perspectives. 12: Yinger, John Closed Doors, Opportunities Lost: The Continuing Costs of Housing Discrimination. New York: Russell Sage Foundation, Canner, Glenn B., Stuart A. Gabriel and J. Michael Woolley Race, Default Risk and Mortgage Lending: A Study of the FHA and Conventional Loan Markets. Southern Economic Journal. 58: Leahy, Peter J Are Racial Factors Important for the Allocation of Mortgage Money?: A Quasi-Experimental Approach to an Aspect of Discrimination. American Journal of Economics and Sociology. 44: Canner Race, Default Risk and Mortgage Lending: A Study of the FHA and Conventional Loan Markets. 54 Yinger Closed Doors, Opportunities Lost: The Continuing Costs of Housing Discrimination. 80. BBC RESEARCH & CONSULTING APPENDIX F, PAGE 25

266 Minorities are more likely to receive a subprime loan, which charge higher interest fees than conventional loans. Financial institutions have been accused of taking advantage of minorities by charging unnecessarily high rates and imposing costs that endanger home ownership. One study found many users of the subprime market are qualified for prime loans. 55 In Nevada, African American, Native American and Hispanic American borrowers are much more likely to have a subprime loan than non-hispanic whites. For example, 40 percent of the conventional refinancing loans received by African Americans were from subprime lenders compared with only 21 percent of refinancing loans received by non-hispanic whites. Asian Americans are also more likely than non-hispanic whites to obtain a mortgage from the subprime market, but to a much smaller degree. Figure F-17. Percent of conventional refinancing loans from subprime lenders, 2004 African American Asian American Nevada Source: FFIEC HMDA data 2005 and KnowledgePlex calculations, an online resource maintained by the Fannie Mae Foundation. Hispanic American Native American United States Non-Hispanic white Historically, differences in types of loans awarded to minorities have been attributed to steering by real estate agents, who serve as an information filter between buyers and sellers. 56 Some studies claim that real estate brokers provide different levels of assistance and different information on loans to minorities and non-minorities. 57 This steering can shape the perceived availability of loans to minority borrowers. Home value appraisal is another means of discrimination in mortgage lending. Differences in appraisal values can change the loan-to-value ratio, an indicator of risk for lending institutions. Findings suggest that minorities and women have been subject to the under-appraisal of home values. One study suggests that appraisers lower appraisal values for minorities. 58 Another study found that minorities have higher loan-to-value ratios Freddie Mac. 1996, September. Automated Underwriting: Making Mortgage Lending Simpler and Fairer for America's Families. Freddie Mac. (Accessed February 5, 2007). 56 Kantor, Amy C. and John D. Nystuen De Facto Redlining a Geographic View. Economic Geography. 4: Yinger Closed Doors, Opportunities Lost: The Continuing Costs of Housing Discrimination Yinger Closed Doors, Opportunities Lost: The Continuing Costs of Housing Discrimination Tootell, Geoffrey M. B Redlining in Boston: Do Mortgage Lenders Discriminate Against Neighborhoods? The Quarterly Journal of Economics. 111: BBC RESEARCH & CONSULTING APPENDIX F, PAGE 26

267 Other potential forms of discrimination by lenders are more difficult to analyze and document. 60 Areas include outreach and application procedures (i.e. helping non-minority applications look stronger), loan terms determined by the lender (interest rates, maturity, loan-to-value ratio and loan types), underwriting standards that may disproportionately affect minorities and women, and default and foreclosure options. Anecdotal evidence suggests that African American home seekers generally must expend more time, effort and resources than non-hispanic whites for the same end. 61 Minorities and women may also believe they are required to produce greater levels of equity and hard collateral in order to secure debt than their non-minority male counterparts and have fewer options for investment capital. 62 Redlining. Redlining is the term for mortgage lending discrimination to geographic areas associated with high lender risk. These areas are often racially determined, such as African American and mixed race neighborhoods. 63 This practice can perpetuate problems in already poor neighborhoods. 64 Most quantitative studies have failed to find strong evidence in support of geographic dimensions of lender decisions. Studies in Columbus, Ohio; Boston, Massachusetts; and Houston, Texas found that the racial differences in loan denial had little to do with racial composition of the neighborhood, but rather the individual characteristics of the borrower. 65 Some studies found race of the applicant to be a factor in loan denials, not the racial makeup of the neighborhood. Studies of redlining have primarily focused on the geographic aspect of lender decisions; however, redlining can also include the practice of restricting credit flows to minority neighborhoods through procedures that are not observable in actual loan decisions. Examples include branch placement, advertising and other pre-application procedures. 66 These practices can deter minorities from starting businesses. Many local businesses rely on the financing of the local bank sector, thus the location of financial institutions important. 67 Redlining practices would deny this capital resource to minorities. 60 Yinger Closed Doors, Opportunities Lost: The Continuing Costs of Housing Discrimination Bullard, Robert D Housing Barriers: Trends in the Nation s Fourth-Largest City. Journal of Black Studies. 21: Darryl E. Greene & Associates, P.C., and Triaxial Management Services, Inc., a Joint Venture DBE/MBE/WBE Predicate Study: Preliminary. Los Angeles County Metropolitan Transportation Authority. 63 Holloway, Steven R Exploring the Neighborhood Contingency of Race Discrimination in Mortgage Lending in Columbus, Ohio. Annals of the Association of American Geographers. 88: Ladd, Helen F Evidence on Discrimination in Mortgage Lending. The Journal of Economic Perspectives. 12: See Holloway Exploring the Neighborhood Contingency of Race Discrimination in Mortgage Lending in Columbus, Ohio. ; Tootell Redlining in Boston: Do Mortgage Lenders Discriminate Against Neighborhoods? ; and Holmes, Andrew and Paul Horvitz Mortgage Redlining: Race, Risk, and Demand. The Journal of Finance. 49: Yinger, John Closed Doors, Opportunities Lost: The Continuing Costs of Housing Discrimination. Russell Sage Foundation. New York Holloway Exploring the Neighborhood Contingency of Race Discrimination in Mortgage Lending in Columbus, Ohio. BBC RESEARCH & CONSULTING APPENDIX F, PAGE 27

268 Gender discrimination in mortgage lending. Relatively little information is available on sex-based discrimination in mortgage lending markets. Historically, lending practices overtly discriminated against women by requiring information on marital and childbearing status. Risk associated with women of childbearing age and unmarried women resulted in income discounting, limiting the availability of loans to women. 68 The Equal Credit Opportunity Act (ECOA) in 1973 suspended these discriminatory lending practices. Access to Business Capital Barriers to capital markets can have significant outcomes for small business formation and expansion. Availability of credit was identified as an issue for businesses in a recent survey conducted by the U.S. Chamber of Commerce. Survey results indicate that minority-owned firms are more likely to experience problems accessing capital than non-hispanic white-owned firms. Figure F-18. Type of problem facing your business by race and ethnicity, 2005 Nevada Availability of Credit Rising Health Care Costs Excessive Tax Burden Lack of Qualified Workers Rising Energy Costs Rising Costs of Materials Legal Reform Race/ethnicity African American (n = 55) Asian-Pacific American (n = 41) Hispanic American (n = 50) Native American (n = 14) All minority groups (n = 177) Non-Hispanic white (n = 823) All (n = 1080) Note: Total percentages may be greater than 100 due to respondents having the option to select multiple choices. Source: "Access to Capital: What Funding Sources Work for You?" Appendix Tables. U.S. Chamber of Commerce s Statistics and Research Center, Available at Page 55. Several studies have found evidence that start-up capital is important for business profits, longevity and other outcomes. 69 The amount of start-up capital is positively associated with small business sales and other outcomes. 70 Limited access to capital has limited the size of African American-owned businesses. 71 Weak financial capital was identified as a significant reason that more African American-owned firms than non-hispanic white-owned firms were closed over a four-year period Card Women, Housing Access, and Mortgage Credit. 69 For examples see Fairlie Liquidity Constraints, Household Wealth, and Entrepreneurship Revisited; and Grown, Caren and Timothy Bates Commercial Bank Lending Practices and the Development of Black-Owned Construction Companies. Center for Economic Studies, U.S. Bureau of the Census. 70 See Fairlie, Robert W. and Harry A. Krashinsky Liquidity Constraints, Household Wealth, and Entrepreneurship Revisited; and Grown Commercial Bank Lending Practices and the Development of Black- Owned Construction Companies. 71 Grown Commercial Bank Lending Practices and the Development of Black-Owned Construction Companies. BBC RESEARCH & CONSULTING APPENDIX F, PAGE 28

269 Bank loans are one of the largest sources of debt capital for small businesses. 73 Discrimination in the application and approval processes of these loans and other credit resources could be detrimental to the success of minority- and women-owned businesses. Previous studies have addressed race, ethnic and gender discrimination in capital markets by evaluating: Loan denial rates; Loan values; Interest rates; Individual assumptions that loan applications will be rejected; Sources of capital; and The relationship between start-up capital and business survival. The study team reviewed literature from past studies to examine these questions. The body of literature contains little information on these issues in Nevada. Loan denial rates. A number of studies have developed regression models to isolate the effects of race and ethnicity from other factors that affect loan approvals. Findings from these studies include: Commercial banks are less likely to loan to African American-owned firms than non-hispanic white-owned firms are, after controlling for other factors. 74 African American, Hispanic American and Asian American men are more likely to be denied for a loan than non-hispanic white men. However, African American borrowers are more likely to apply for a loan. 75 There are substantial unexplained differences in credit applications, loan denials and interest rates between non-hispanic white- and African American-owned firms. Competitiveness of lender markets helps explain these disparities. 76 The probability of loan denial decreases with greater personal wealth. However, controlling for personal wealth does not resolve the large differences in denial rates across African American-, Hispanic American-, Asian American-, and non-hispanic white-owned firms. Specifically, information on personal wealth explained some differences for Hispanic- and Asian Americanowned firms compared to non-hispanic whites, but almost none for African Americans Grown Commercial Bank Lending Practices and the Development of Black-Owned Construction Companies. 73 Data from the 1998 SSBF indicates that 70 percent of loans to small business are from commercial banks. This result is present across all gender, race and ethnic groups with the exception of African Americans, whose rate of lending from commercial banks is even greater than other minorities. See Blanchard, Lloyd, Bo Zhao and John Yinger Do Credit Market Barriers Exist for Minority and Woman Entrepreneurs. Center for Policy Research, Syracuse University. 74 Cavalluzzo, Ken, Linda Cavalluzzo and John Wolken Competition, Small Business Financing and Discrimination: Evidence from a New Survey. FEDS Working Paper No Coleman, Susan Characteristics and Borrowing Behavior of Small, Women-owned Firms: Evidence from the 1998 National Survey of Small Business Finances. The Journal of Business and Entrepreneurship See Cavalluzzo, Competition, Small Business Financing and Discrimination: Evidence from a New Survey. 77 Cavalluzzo, Ken and John Wolken Small Business Turndowns, Personal Wealth and Discrimination. FEDS Working Paper No BBC RESEARCH & CONSULTING APPENDIX F, PAGE 29

270 Loan denial rates are significantly higher for African American-owned firms than non-hispanic white-owned firms in the presence of several other factors such as creditworthiness and other characteristics. This result is largely insensitive to econometric specification. Consistent evidence on loan denial rates and other indicators of discrimination in credit markets was not found for other minorities and women. 78 Using data from the 1998 NSSBF and controlling for other variables, previous studies demonstrated that women are no less likely to apply for or to be approved for loans. 79 In its own analyses, reported in Appendix H, the study team explored the relationships between loan denial and race/gender of firm ownership. These relationships were explored using multivariate statistical models that controlled for a wide variety of neutral factors that explain the likelihood of a firm s loan denial, including the credit and financial help of the owner and of the business and contextual characteristics of the lending environment. Results of this analysis are presented in Figure H-7. Loan values. Beyond loan denial rates, the study team considered the loan values for firms receiving loans. Previous national studies have found that African American-owned firms receive substantially lower loan amounts than their non-hispanic white counterparts with similar characteristics. Examination of construction companies in the United States revealed that African American-owned firms received smaller loans than firms with otherwise identical traits, increasing the likelihood of firm closure. 80 Interest rates. Studies of interest rates charged for commercial loans control for factors such as individual credit history, firm credit history, and Dun and Bradstreet credit scores. 81 Differences were found in some studies: Hispanic-owned firms had significantly higher interest rates in places with less credit market competition. 82 Among a sample of firms with no past credit problems, African American-owned firms paid significantly higher interest rates on approved loans Blanchflower, David G., Phillip B. Levine and David J. Zimmerman Discrimination in the Small Business Credit Market. The Review of Economics and Statistics. 85: Coleman Characteristics and Borrowing Behavior of Small, Women-owned Firms: Evidence from the 1998 National Survey of Small Business Finances. 80 Grown Commercial Bank Lending Practices and the Development of Black-Owned Construction Companies. 81 Cavalluzzo Competition, Small Business Financing and Discrimination: Evidence from a New Survey. 82 Cavalluzzo Competition, Small Business Financing and Discrimination: Evidence from a New Survey. 83 Blanchflower Discrimination in the Small Business Credit Market. BBC RESEARCH & CONSULTING APPENDIX F, PAGE 30

271 Individual assumptions that loan applications will be rejected. Fear of loan denial is a barrier to capital markets because it prevents small businesses from applying for loans and thus can help explain differences in business outcomes. In addition, it provides insight into minority business owners perceptions of the small business lending market. The body of literature identifies multiple factors that influence the decision to apply for a loan, such as firm size, firm age, owner age and educational attainment. Controlling for these factors can help to determine whether race and ethnicity explain fear of loan denial. Findings indicate: African American- and Hispanic American-owners are significantly less likely to apply for loans. 84 After controlling for educational attainment, there were no significant differences in loan application rates between non-hispanic white, African American, Hispanic and Asian American men. 85 African American-owned firms are more likely than other firms to report being seriously concerned with credit markets and are less likely to apply for credit in fear of denial. 86 Bonding Although little quantitative information exists regarding MBEs and WBEs and access to surety bonds for public construction projects, there is anecdotal evidence that suggests such problems persist. 87 Comments from firms interviewed in the 2006 Availability Survey Near the conclusion of the interviews with business owners and managers in the transportation construction and engineering industry, the 2006 Availability Survey included the following openended question: Finally, we are giving business owners and managers an opportunity to offer general insights on your industry, including how difficult it is to start or expand your business and to [bid / propose] on and win work. As you are thinking, be sure to consider any issues related to NDOT and local government projects in Nevada. What thoughts do you have to offer on these topics? 84 Cavalluzzo, Competition, Small Business Financing and Discrimination: Evidence from a New Survey. 85 Coleman, Susan Access to Debt Capital for Small Women- and Minority-Owned Firms: Does Educational Attainment Have an Impact? Journal of Developmental Entrepreneurship. 9: Blanchflower et al., Discrimination in the Small Business Credit Market. 87 Enchautegui, Maria E. et al Do Minority-Owned Businesses Get a Fair Share of Government Contracts? The Urban Institute: 1-117, p. 56. BBC RESEARCH & CONSULTING APPENDIX F, PAGE 31

272 The questions asked were open-ended by design, which affects the number of comments concerning each potential barrier. If the study team had specifically asked about each potential barrier, more firms would have identified the issue as a barrier for their firm. The strength of this methodology is that respondents identified areas of problems unprompted by the interviewers. It shows the degree to which certain barriers were top of mind for business owners and managers. BBC coded multiple responses. 88 Due to the small number of minority responses, minority-owned businesses are analyzed as a group and are not further categorized by race or ethnicity. Figure F-19 presents the percentage of transportation construction firms surveyed that, unprompted, identified a particular issue in the marketplace or in NDOT practices. Figure F-20 examines the issues brought up by transportation engineering industry firms. Each area is discussed in turn. Figure F-19. Comments of available transportation construction industry firms about doing business in the local marketplace and with NDOT Problem areas mentioned Miniorityowned (n =77) Women- Majorityowned owned All firms (n = 93) (n = 495) (n = 665) Access to capital Bonding Insurance Difficult regulations in industry Ability to obtain subcontracts from primes Difficult to find qualified staff Competitive industry, high operating costs Slow pay Specs/contract language Prevailing wage/union requirements Excessive paperwork/cumbersome processes Excessive qualification requirements Difficult to bid/get better info about opportunities Barriers for small firms/need smaller contracts Award based on factors beyond cost Difficult to certify as DBE Difficult to obtain work as a local contractor Other unfair practices/difficult to work with NDOT No problems/ndot is fair Other comments Source: BBC Research and Consulting Disparity Study. 88 For example, if a firm owner responded to the first question by indicating that slow payment and contract specifications were barriers, BBC tracked both responses. If the firm owner answered the second question with further elaboration on slow payment, and then added a comment about difficulty finding information about contract opportunities, the information on bidding comment was added to the combined responses for that firm. BBC RESEARCH & CONSULTING APPENDIX F, PAGE 32

273 Figure F-20. Comments of available transportation engineering industry firms about doing business in the local marketplace and with NDOT Problem areas mentioned Miniority- Women- Majorityowned owned owned All firms (n = 55) (n = 33) (n = 295) (n = 383) Access to capital Bonding Insurance Difficult regulations in industry Ability to obtain subcontracts from primes Difficult to find qualified staff Competitive industry, high operating costs Slow pay Specs/contract language Prevailing wage/union requirements Excessive paperwork/cumbersome processes Excessive qualification requirements Difficult to bid/get better info about opportunities Barriers for small firms/need smaller contracts Award based on factors beyond cost Difficult to certify as DBE Difficult to obtain work as a local contractor Other unfair practices/difficult to work with NDOT No problems/ndot is fair Other comments Source: BBC Research and Consulting Disparity Study. Access to capital. Unprompted, only about 1 percent of construction firms mentioned access to capital as a difficulty in starting or expanding their business or in working with NDOT. Women-owned construction firms responding to the survey were slightly more likely than other firms to mention access to capital as a barrier. No transportation engineering firms identified access to capital as a barrier (see Figure F-20). Bonding. Access to bonding and bonding requirements were brought up by 2 percent of transportation construction firms and 1 percent of engineering firms. Minority-owned construction firms and woman-owned engineering firms were more likely to mention bonding as a barrier than other firms. Most comments related to bonding were focused on general difficulties in obtaining bonds necessary for bidding. One respondent specifically mentioned difficulties for small businesses NDOT and local government projects are impossible projects for a DBE, MBE, WBE, etc. because of bonding, payment terms, and not having the working capital to finance the job. These are some of the things we small contractors deal with. BBC RESEARCH & CONSULTING APPENDIX F, PAGE 33

274 Insurance. Overall, only about 1 percent of transportation construction and engineering firms identified the costs associated with insurance as a barrier to doing business. Minority-owned construction firms were more likely than other firms to mention insurance costs. Survey respondents who brought up this issue were primarily concerned with the costs of meeting current requirements and the amount of liability placed on the primary contractor. Difficult industry regulations. Very few transportation construction and engineering firms surveyed brought up industry regulations as an issue. About 1 percent of all firms mentioned this potential barrier. No women-owned firms responding to the survey brought up difficulties with regulations. Comments regarding industry regulations referred to NDOT specifically and the State of Nevada in general. Respondents cited issues with licensing and permitting, limitations on hours worked and bridge standards. Difficult to find qualified staff. About 1 percent of transportation construction firms mentioned that it was difficult to find qualified staff to work for their firm. About 2 percent of transportation engineering firms stated that this was a barrier. Majority-owned engineering firms were most likely to mention this issue. Comments related to this difficulty included a general lack of qualified individuals entering the field and difficulties in recruiting employees to relocate to Nevada. Ability to obtain subcontracts from primes. Overall, relatively few survey respondents stated that it was difficult to get subcontracts from primes. Unprompted, less than 1 percent of transportation construction firms brought up this issue. About 2 percent of transportation engineering firms indicated this was a problem. Six percent of minority-owned transportation engineering firms mentioned this difficulty. In general, respondents who find it difficult to obtain subcontracts indicated that larger firms do not provide smaller companies and DBEs many opportunities for work. One respondent stated that NDOT should do a better job of enforcing their contract goals. On projects with DBE requirements, the business had been offered opportunities by only 2 of 9 firms they were supposedly teamed with. Competitive industry and high operating costs. About 5 percent of all firms surveyed identified industry competitiveness and high operating costs as significant barriers to doing business. Across all firms, minority and women-owned construction firms were more likely than any other firms to bring this up as an issue. Majority-owned firms in the engineering industry were more likely than other engineering firms to mention this barrier. Comments related to industry competitiveness included the high cost of doing business, general market saturation and difficulties breaking into the industry. Bidding on and winning NDOT and local government work is very difficult because of the amount of competition pricing has to be low to compete which leaves little margin for error stated one respondent. Some small businesses noted how difficult it is to compete with larger companies in the industry. It s hard as a small business to jump in there, all the big boys have it figured out said one small business respondent. Smaller companies have a hard time competing, said another. BBC RESEARCH & CONSULTING APPENDIX F, PAGE 34

275 A few respondents commented on the difficulties associated with competing as an out of state firm: The NDOT 5 bid preference for local Nevada companies makes it very difficult to do business there. It puts us a severe disadvantage. One respondent stated Its hard for out-of-state firms to compete with local firms...it would be nice if Nevada would offer some sort of incentive to out-ofstate contractors. Some comments were specific to NDOT practices. Comments such as "there are only a select few general contractors that actually win bids and New firms have a hard time breaking into government work without history with the local transportation department, were relatively common. One small business respondent said: By comparison to larger contractors, it is hard for us to compete for NDOT jobs, especially for expensive projects. Slow pay. Very few firms mentioned slow pay by NDOT as a problem for their business. About 2 percent of transportation construction firms and 1 percent of transportation engineering firms mentioned this issue. Three percent of women- and minority-owned construction firms brought up this issue. One respondent reported having to wait 60 to 90 days to be paid by NDOT. Another respondent said, NDOT payment is very slow, which makes it hard to expand the business. Difficult specifications and complex contract language. Three percent of construction firms and 2 percent of engineering firms indicated that poor specifications and complex contract language posed a barrier to doing business and working with NDOT. Majority owned construction firms were more likely than any other firms to bring up this issue. In general, business-owners who mentioned difficult specifications or complex contract language stated that NDOT s specifications have incorrect information or do not include details and that NDOT should be more specific with plans and specifications. One firm stated that inconsistencies in plans cause difficulties in bidding. Prevailing wage and union requirements. Overall, about 1 percent of transportation construction and engineering firms identified prevailing wage rate and union requirements as a barrier. Women-owned engineering firms and minority-owned construction firms were much more likely to state that prevailing wage rates and union requirements make it difficult to do business or work with NDOT. Respondents who brought up this issue generally indicated that the prevailing wage rate and union requirements make it difficult to work with NDOT. Some respondents reported problems working with specific unions. Paperwork and cumbersome processes. Of the transportation construction firms surveyed, about 4 percent identified paperwork and other cumbersome processes as a barrier. About 6 percent of transportation engineering firms indicated this was a problem. Women-owned engineering firms were less likely to bring up this issue than other engineering firms. In the construction industry, responses were more evenly distributed. BBC RESEARCH & CONSULTING APPENDIX F, PAGE 35

276 Respondents who view cumbersome processes as a barrier referenced the excessive paperwork, lengthy approval process and red tape involved in working with NDOT. One respondent said, The paperwork is far too onerous. It is unnecessarily burdensome. Small businesses can have a particularly hard time: The paperwork is not very small business-friendly. Its just time consuming and redundant said one respondent. Another stated, It costs too much to take the paperwork for the bid when we should be working. Excessive qualifications. A few transportation construction firms mentioned that excessive qualifications by NDOT create a barrier to doing business. Unprompted, about 1 percent of construction firms and 4 percent of engineering firms brought up this issue. In the construction industry, minority- and women-owned firms were more likely than majority-owned firms to state this as an issue. Women-owned engineering firms were much more likely to identify this as a problem than all other firms. In addition to insurance and bonding requirements, past experience was the most referenced qualification in this category. Specific comments included it is difficult; you have to have work experience to get work and the selection process needs to be more open to firms without experience. One business commented, It takes 5 years to establish a business in Nevada and finally get bidder s preference. That practice makes it extremely difficult to start or expand business. Difficulties bidding and obtaining information. Overall, about 11 percent of transportation construction and engineering firms commented on the difficulty in obtaining information on bidding opportunities and bidding on NDOT projects. Woman-owned construction firms were much more likely to identify this as a problem than other construction firms. In the engineering industry, minority-owned firms were more likely to bring up this issue. Many respondents commented on the difficulty in obtaining information on upcoming projects. Common responses were It s hard to find out what is available to bid on; or We haven t been able to find any listings. Some respondents specifically commented on these difficulties for small firms: for the small business that we are, we don t have the information to start on or bid on NDOT jobs; there are no resources to get that information. One respondent stated that it is especially difficult in rural Nevada, where sometimes he doesn t even hear about a project until the bidding is done. Many respondents stated that notification of upcoming projects should be sent to all available firms via or direct mail. One respondent stated that there is a lack of notification about upcoming projects. Faxes should be sent to all qualified contractors including DBEs. Other comments included: wider notification of bidding opportunities for private consultants is in order. and NDOT should make sure that their solicitations are obvious and fairly distributed. One respondent said, I would like to see NDOT mandate that more of the local small guys get invited to participate. Some respondents commented on the bidding process itself. There is no adequate time to bid jobs stated one respondent, Plans must be ordered and by the time we get them there isn t enough time. Some feel that the bidding process is costly and time consuming. Document submittal is cost prohibitive, stated one contractor. I struggled to find the right person to talk to submit the proposal said another. One out of state contractor stated that mandatory pre-bid meetings are hard to attend for those who are out of state. Many respondents feel that the process could be streamlined through an online bidding system. BBC RESEARCH & CONSULTING APPENDIX F, PAGE 36

277 Barriers for small firms. Five and 10 percent of transportation construction and engineering firms respectively identified barriers for small firms in the local marketplace and in working with NDOT. Minority and woman-owned construction firms were much more likely than majorityowned construction firms to bring this up as an issue. Comments were more evenly distributed across engineering firms, however, minority-owned firms were more likely than other engineering firms to view this as a problem. Barriers for small firms included general difficulties such as being able to compete with larger businesses. However, many barriers were specific to NDOT. Common responses include They [NDOT] tend to go with more known firms and smaller ones don t get a chance to show what they can do and It would be nice if they gave smaller companies a chance. One respondent stated, The selection process is so expensive and slanted so that only the largest companies get work. Another commented on having to build relationships with NDOT in order to obtain work: Small business owners don t have time to go over to NDOT and cultivate personal relationships. Many respondents feel that NDOT could do more to facilitate small businesses. For example, [NDOT should] set aside a percentage of the work for small firms and NDOT could have more workshops specifically designed around helping small firms get more work. One respondent stated, [NDOT should] somehow regulate how the big companies pick suppliers; they used to include smaller and upcoming businesses Award based on factors others than cost. About 2 percent of transportation construction firms and 4 percent of transportation engineering firms mentioned that awarding contracts based on the lowest bid makes it difficult to do business or work with NDOT. Across both industries, majorityowned engineering firms were more likely to bring up this issue. In the construction industry, minority-owned firms more frequently stated this as a problem. Respondents who brought this up as an issue feel that awards should be based more on qualifications rather than simply the lowest bid. In reference to the low bid rule, one respondent stated It has been difficult for us to get new contracts with NDOT due mainly to contracts being awarded solely on low bid without the evaluation of a work plan. Another said, I think they often end up with an inferior product. Other unfair practices and difficulties working with NDOT. A relatively larger number of firms identified other unfair practices and difficulties working with NDOT as a barrier to doing business. Unprompted, about 10 percent of transportation construction firms mentioned this as an issue. Women-owned construction firms were much more likely than other construction firms to identify unfair practices and other difficulties. Fifteen percent of transportation engineering firms brought up unfair practices, with minority-owned firms most often mentioning this issue. Many of the unfair practices identified were specific to NDOT. For example, many referenced NDOT s tendency to award contracts to the same firms. Comments such as Some firms are given work based on personal relationships while past performance is not looked at and They seem to have a predisposed notion of whom they want to use before the project is ever assigned were common. BBC RESEARCH & CONSULTING APPENDIX F, PAGE 37

278 Other comments focused on difficulties for DBE firms including, If you are a minority they won t give you work. The NDOT management does not like minorities and We are thrown in the same process with everyone. I don t know how there is any advantage to being a minority owned business. Others feel that non-dbe firms are give[n] unfair advantage. One respondent stated that affirmative action creates an unfair workplace. Some respondents find it frustrating to work with NDOT employees. One respondent stated that it is hard to work with NDOT. Some of their so-called experts aren t. Another said, NDOT and public works department are not able to manage projects properly. [This] causes businesses to lose money or their contracts. Difficult to certify as a DBE. Overall, only about 1 percent of transportation construction and engineering firms stated it was difficult to certify as DBE. Women-owned construction firms and minority-owned engineering firms were the only firms to mention this issue. Difficulties in being certified included technicalities of certification. Difficult to obtain work as a local contractor. About 1 percent of transportation construction firms and 2 percent of engineering firms commented on the difficulties in obtaining work as a local contractor. Minority-owned engineering firms were more likely to mention this issue than any other firms. Respondents are concerned that too many out of state companies are being allowed to step into the state. One respondent recalled having to watch out-of-state trucks come into our town, use out-of-state drivers, and get work due to minority status. They do not support local non-profits, sports programs or schools. No problems. Nine and 11 percent of transportation construction and engineering firms stated they have no problems doing business in the local marketplace or working with NDOT. Other comments. Overall, 11 and 14 percent of surveyed construction and engineering firms had other comments related to doing business in the local marketplace and working with NDOT, respectively. These comments have no specific patterns. Summary of Entry into the Industry Barriers to entry into the transportation construction and engineering industry appear to begin with the first steps and continue through forming a business based on preliminary analysis. Initial results include: College education appears to be a barrier for African Americans, Hispanic Americans and Native Americans. Disparities in educational attainment for African Americans and Hispanic Americans appear at the high school level, which may affect college opportunities. There is low representation of women among civil, environmental and geological engineers. Representation of African Americans in the construction industry is relatively low compared to other industries in the Nevada, even among entry level jobs. The representation of women in construction as a whole is relatively low, and very few women are in the construction trades involved in transportation construction. BBC RESEARCH & CONSULTING APPENDIX F, PAGE 38

279 There appear to be disparities in the advancement of Hispanic Americans to certain construction trades and first-line supervisor positions. Overall, relatively few minorities and women working in construction are managers. This is particularly true for the Hispanic American race group. Accounting for low business ownership rates in Nevada s construction industry when compared with construction in the U.S., BBC finds that African Americans, Hispanic Americans, Subcontinent Asian Americans and women working in construction are less likely than non- Hispanic whites to own businesses. Relative Success of MBE/WBEs BBC also examined the relative success of MBEs and WBEs once they are operating. The study team examined whether business opportunities and markets for minority- and women-owned transportation construction and engineering firms differ from majority-owned firms. The study team then researched outcomes for MBEs, WBEs and majority-owned businesses, including: Businesses discontinuing operations; Businesses expanding or contracting; Business earnings; and Size distribution of gross revenue. This analysis examines whether some of the patterns found by Congress concerning disparities in outcomes for minority- and women-owned businesses are found in Nevada. Figure F-21 provides a framework for the analysis. Figure F-21. Business success Operating businesses Available markets Public Sector Private Sector Contract roles Prime Contractor Subcontractor Outcomes Expansion Stable Contraction Close Business earnings Source: BBC Research and Consulting, BBC RESEARCH & CONSULTING APPENDIX F, PAGE 39

280 Businesses Discontinuing Operations Rates of business closures in Nevada. BBC explored data sources that might indicate whether MBEs were more likely to close than other firms. Using special data from the 1997 Survey of Minority- and Women-Owned Business Enterprises (SMOBE) provided by the U.S. Census Bureau, the U.S. Small Business Administration reports information regarding employer firm survival rates of minority business groups by state between 1997 and 2001 across all industrial sectors ( employer firms are firms with paid employees beyond the business owner and family members). Figure F-22 shows that most minority firms in Nevada were less likely to close than all firms in Nevada and their respective minority firms nationwide. The only exception was American Indian and Alaskan Native owned firms, which had a remarkably high closure rate at 49 percent. Hispanic and African American-owned firms performed remarkably well with the lowest closure rates over the 4- year study period. Figure F-22. Nevada vs. National Minority Employer Firm Closure Rates, African American Asian-Pacific American Nevada Source: U.S. Census Bureau and Lowrey, Ying. Dynamics of Minority- Owned Employer Establishments, U.S. Small Business Administration Office of Advocacy. Hispanic American Native American United States All firms Rates of business closures for construction firms. The data shown in Figure F-22 relate to all firms, however the patterns indicated for closure rates by minority group appear to extend to construction firms based on national data. Figure F-23 demonstrates that the higher closure rate for African American-owned firms was also true when only examining construction firms. Closure rates also appeared to be higher for construction firms owned by American Indians and Alaskan Natives and for Asian Americans. (No statistics were available for engineering firms.) Figure F-23. Comparative National Rates of Firm Closure, African American Asian-Pacific American Construction Note: All statistics were significant at the 0.05 level. Hispanic American Source: U.S. Census Bureau 1997 Survey of Minority- and Women-Owned Business Enterprises (SMOBE) and U.S. Small Business Administration. Native American All firms All Sectors BBC RESEARCH & CONSULTING APPENDIX F, PAGE 40

281 Successful versus unsuccessful closures. Not all firm closures can be interpreted as indicating failure of the business. Reasons that a firm may close successfully include retirement or the emergence of a more profitable business alternative. To date, the 1992 Characteristics of Business Owners Survey is the only dataset released by the Census Bureau that allows classification of firm closures into successful and unsuccessful subsets. 89 The CBO survey asked owners of businesses that had closed since 1992 the question Which item below describes the status of this business at the time the decision was made to cease operations? Only the responses successful and unsuccessful were permitted. A firm reported to be unsuccessful at time of closure is understood to be a firm failure. Figure F-24 shows comparative data for the proportion of firms closing between 1992 and 1996 that failed. 90 Figure F-24. Comparative Nevada Failure Rates of Closed Firms, African American-owned Hispanic American-owned MBE Construction Source: U.S. Census Bureau, 1996 Characteristics of Business Owners Survey (CBO). WBE Non-Hispanic white male-owned All sectors All firms According to the CBO, closed African American-owned construction firms were the most likely to report unsuccessful when asked about the status of the business when it closed. About 82 percent of the African Americans who had owned and closed construction firms reported an unsuccessful business (77 percent for all African American business owners who had closed businesses). Only 58 percent of non-minority men who had owned construction businesses said that their business was unsuccessful at time of closing, a substantial disparity. The differences in status of a construction firm at closing were also large between other minorities (Asian Americans and Native Americans) and non-minority men. 89 Data from the 1997 and 2002 Economic Census and CBO s do not include statistics on successful and unsuccessful closure. To date, the 1992 CBO is the only U.S. Census data set that does. 90 All CBO data should be interpreted with caution due to a non-response bias. Firms that did not respond to the survey cannot be assumed to have the same characteristics of ones that did. This report does not include CBO data on firm closure because firms not responding to the survey were found to be much more likely to have closed than ones that did. This study does include CBO data on firm success because there is no compelling reason to believe that closed firms responding to the survey would have reported different rates of success/failure than those closed firms that did not respond to the survey. See Headd, Brian. U.S. Small Business Administration, Office of Advocacy Business Success: Factors leading to surviving and closing successfully. BBC RESEARCH & CONSULTING APPENDIX F, PAGE 41

282 Differences in the successful versus unsuccessful closing of construction firms were only somewhat narrower for other groups: About 71 percent of Hispanic Americans who had owned and closed construction businesses reported the business to be unsuccessful at time of closing, higher than the results for non-minority men. About 66 percent of women who had owned and closed construction firms reported the business to be unsuccessful, somewhat higher than the 58 percent for non-minority men. Combining data on firm closure in Nevada with reported success of closed firms nationwide leads to inconclusive results. Data indicate that some minority firms are less likely to close than all firms in Nevada, but across the nation when minority firms do close, they are more likely to do so unsuccessfully. Evidence as to whether minority firms are more likely to fail than non-minority cannot be drawn from existing data. Reasons for differences in failure rates. Several researchers have offered explanations for higher rates of successful closure among non-dbe firms and higher rates of failure among DBE firms nationwide: Minority business failure is largely due to barriers in access to capital. A regression analysis identifies initial capitalization as the most significant factor in determining firm viability. Because African American-owned businesses secure smaller amounts of debt equity in the form of loans, they are more inclined to fail. Difficulty in accessing capital is found to be particularly acute for minority firms in the construction industry. 91 Prior work experience in a family member s business and prior work experience in a similar business are found to be strong determinants of business viability. Because African American business owners are much less likely to have family business experience and/or similar business experience, their firms are less likely to survive. 92 Level of education is found to be a strong determinant in business survival. It explains a significant portion of the gap in firm closure rates between African Americans and non-minority firms. 93 Non-minority business owners have the opportunity to pursue a much wider array of business activities, which increases their likelihood of closing successful businesses to pursue more profitable business alternatives. Minority business owners, especially those who do not speak English, have greatly limited employment options and are less likely to close a successful business. 94 The high rate of survival of Asian American-owned firms compared to other minority-owned firms is determined by their possession of greater initial capital and the generally higher levels of education of Asian Americans Bates, Timothy and Grown, Caren Commercial Lending Practices and the Development of Black-Owned Construction Companies. Center for Economic Studies, U.S. Census Bureau. 92 Robb, A. and Fairlie, R. Why are Black-Owned Businesses Less Successful than White-Owned Businesses? The Role of Families, Inheritances, and Business Human Capital Ibid. 94 Bates, Timothy Analysis of Young Small Firms That Have Closed: Delineating Successful from Unsuccessful Closures. Center for Economic Studies, U.S. Census Bureau. 95 Bates, Timothy Determinants of Survival and Profitability Among Asian Immigrant-Owned Small Businesses. Center for Economic Studies, U.S. Census Bureau. BBC RESEARCH & CONSULTING APPENDIX F, PAGE 42

283 Summary. Available data suggest that closure rates for minority-owned firms in Nevada are on par with or perhaps less than other firms. However, national data indicate that African Americans who owned and closed construction firms are much more likely to have done so because the firm was unsuccessful. Comparative Rates of Expansion and Contraction The comparative rates of expansion and contraction of MBE and non-mbe firms is also a useful indicator of the relative success of minority-owned businesses. Expansion. The U.S. Small Business Administration s 2005 study of minority business dynamics from also examines rates of expansion and contraction for minority-owned firms in Nevada that had paid employees at the starting time period for the analysis ( employer firms ). Figure F-25 compares the percentage of firms that increased their total employment between 1997 and About three in ten firms expanded in Nevada and across the nation according to the SBA study, on par with nationwide trends. Most minority firms were more likely to have expanded than all firms in Nevada: African American-owned firms had a rate of expansion much greater than that of all firms, bucking the nationwide trend for firms of this minority group, Asian American- and Hispanic-owned firms were slightly more likely to have expanded than all firms. American Indian and Alaskan Native-owned firms in Nevada were least likely to have expanded with rates of expansion well below those all firms in Nevada and American Indian and Alaskan Native-owned firms nationwide. Figure F-25. Percentage of employer firms that expanded employment, , Nevada and the U.S. African American Asian-Pacific American Hispanic American Nevada Source: U.S. Census Bureau 1997 Survey of Minority- and Women-Owned Business Enterprises (SMOBE) and U.S. Small Business Administration. Native American All firms United States Contraction. Figure F-26 on the following page examines the percentage of firms that reduced their employment between 1997 and As with the analysis of expanding firms, these data track activity of employer firms beginning in Disparities in the likelihood of contraction among minority-owned and non-minority-owned firms of are greater in Nevada than they are across the entire nation. African-American-owned firms were the least likely to contract, well below the rate of contraction of all firms in Nevada. American Indian and Alaskan Native-owned firms were more likely to contract than all firms were. BBC RESEARCH & CONSULTING APPENDIX F, PAGE 43

284 Figure F-26. Percentage of firms that contracted employment, , Nevada and the U.S. African American Asian-Pacific American Nevada Source: U.S. Census Bureau 1997 Survey of Minority- and Women-Owned Business Enterprises (SMOBE) and U.S. Small Business Administration. Hispanic American Native American All firms United States The above results pertain to all firms in Nevada. The SBA study did not report results for the Nevada construction industry. However, minority-owned construction firms were not more likely to have contracted compared with all construction firms across the nation. Asian American- and Hispanicowned construction firms had lower rates of contraction than all construction firms in the United States. Figure F-27 shows these results. Figure F-27. Comparative Rates of Employer Firm Contraction, African American Asian-Pacific American Construction Source: U.S. Census Bureau 1997 Survey of Minority- and Women-Owned Business Enterprises (SMOBE) and U.S. Small Business Administration. Hispanic American Native American All sectors All firms Summary. Between 1997 and 2001, the SBA study found that 29 percent of Nevada employer firms had expanded employment, 22 percent had contracted employment and 36 percent had closed. African American-owned firms were less likely to contract or close, and more likely to expand. Asian American-owned firms were somewhat less likely to close or contract and about as likely to expand as all firms. American Indian- and Alaskan Native-owned firms were far more likely to close or contract and far less likely to expand as all firms in the state. Hispanic American-owned firms were slightly more likely to expand or contract but less likely to close as all firms in the state. BBC RESEARCH & CONSULTING APPENDIX F, PAGE 44

285 Other than American Indian and Alaskan Native-owned firms, minority-owned employer firms fared as well or better than all firms in Nevada did by these measures of business performance. African American-owned firms fared remarkably well with the lowest rates of closure and contraction and the highest rate of expansion in Nevada. Business Earnings The BBC study team examined sample means from the 2000 Decennial Census Five Percent Public Use Microdata to evaluate earnings across the construction and engineering industries. 96 The sample used for this analysis contains incorporated and unincorporated business owners between ages 16 and 64 that reported positive earnings. Figure F-28 presents earnings for business owners in the construction industry. In Nevada, minorityowned firms report lower earnings than non-hispanic white-owned firms. Disparities are also apparent by gender: female-owned construction businesses on average earn almost one-half of the average earnings of male-owned firms. Average earnings in the construction industry in Nevada are lower than national averages, and show similar trends across gender, race and ethnicity. Figure F-28. Mean annual business owner earnings, construction industry Note: Universe is business owners between ages 16 and 64 that reported positive earnings. ** = Statistically significant at the 95 confidence level. Minority (n = 62) Non-minority (n =236) $17,000** Nevada $36,134 Female (n = 25) $14,015 ** Source: 2000 Decennial Census Five Percent Public Use Microdata Samples and BBC Research & Consulting. Male (n = 277) Minority (n =19,215) $17,265 ** $33,851 United States Non-minority (n = 98,781) $21,265 Female (n = 9429) $9,985** Male (n = 108,567) $21,458 $0 $10,000 $20,000 $30,000 $40,000 $50,000 BBC also examined earnings among Nevada firms in the engineering industry. However, sample sizes were too small to generate robust conclusions. A casual analysis reveals that earnings in the engineering industry are greater among non-minority-owned firms than minority-owned firms in Nevada, mirroring national trends. Women-owned engineering firms reported lower average earnings than male-owned firms in Nevada did, which is consistent with findings on women-owned engineering firms across the nation that reported earning less than male-owned firms. Appendix H contains the results of multivariate statistical models that explored that the study team conducted to explore whether the disparities in business earnings reported here remained for members of certain minority groups and woman after controlling for neutral explanatory factors, such as the owner s age and education level. These results are reported in Figures H-4, H-5 and H See Appendix G for additional information on the sample, specifications and caveats. BBC RESEARCH & CONSULTING APPENDIX F, PAGE 45

286 Results for Transportation Construction and Engineering Industry Firms The study team s Availability Survey provides information on firm revenue, size of contracts and past bidding success. Gross revenue of transportation construction and engineering firms. Firms responding to the 2006 Availability Survey were asked to identify the size range for their gross revenue in A second question asked for gross revenue across all Nevada locations for multi-location firms. (The Availability Survey only includes firms working in the transportation construction and engineering industries that report qualifications and interest in working with NDOT or local governments in the future.) Figure F-29 examines the distribution of MBEs, WBEs and majority-owned transportation construction industry firms by revenue class. For example, 65 percent of minority-owned construction industry firms reported gross revenue of less than $1 million. Relatively more MBEs than WBEs had revenues less than $1 million 57 percent of white womenowned firms reported gross revenue of less than $1 million for Only 46 percent of majorityowned construction firms had revenues of less than $1 million. Figure F-29 demonstrates that relatively few minority- and women-owned firms in the transportation construction industry reach annual revenue of more than $5 million per year. Twenty-seven percent of majority-owned firms reach this revenue threshold compared with 10 percent of MBEs and 13 percent of WBEs in the transportation construction industry. Figure F-29. Distribution of firms by gross revenue net size class in 2005, transportation construction industry Less than $ WBE (n = 100) Note: WBE is white women-owned firms. Source: BBC Research and Consulting from 2006 Availability Survey. Gross revenue ($ millions) $1.0 - $2.4 $2.5 - $4.9 $5.0 - $ MBE (n = 71) Majority (n = 473) $10.0 or more BBC RESEARCH & CONSULTING APPENDIX F, PAGE 46

287 Transportation engineering industry firms interviewed in the Availability Survey were also asked to identify gross revenue across all Nevada locations in Findings are similar to those for transportation construction industry firms (see Figure F-30): MBEs and WBEs were disproportionately represented in the lowest revenue size classes. About 13 percent of majority-owned firms reported gross revenue of $5 million or more for 2005, a larger proportion than found for MBEs (7 percent) and WBEs (zero percent). Figure F-30. Gross revenue of company for all Nevada locations in 2005, transportation engineering industry Less than $ WBE (n = 31) Note: WBE is white women-owned firms. Source: BBC Research and Consulting from 2006 Availability Survey. Gross revenue ($ millions) $1.0 - $2.4 $2.5 - $4.9 $5.0 - $ MBE (n = 52) Majority (n = 276) $10.0 or more Largest transportation-related contract. The study team asked firms responding to the Availability Survey to identify the largest transportation-related contract the company was awarded in Nevada in the past five years. Among construction firms, the distributions of largest contracts are relatively comparable across groups (see Figure F-31). Figure F-31 Largest transportationrelated contract or subcontract company was awarded in Nevada in past 5 years, transportation construction firms Note: WBE is white women-owned firms. Source: BBC Research and Consulting from 2006 Availability Survey. Largest contract or subcontract ($ millions) Less than $0.1 $0.1 - $0.49 $0.5 -$0.99 $1.0 - $1.99 $2.0 - $4.99 $5.0 or more WBE (n = 71) MBE (n = 36) Majority (n = 295) BBC RESEARCH & CONSULTING APPENDIX F, PAGE 47

288 Among transportation engineering firms, about 13 percent of majority- and minority-owned firms had received contracts or subcontracts of at least $5 million. Only 4 percent of MBEs had received work of this size. Figure F-32 examines the largest contract or subcontract received by transportation engineering firms. Figure F-32 Largest transportationrelated contract or subcontract company was awarded in Nevada in past 5 years, transportation engineering firms Note: WBE is white women-owned firms. Source: BBC Research and Consulting from 2006 Availability Survey. Largest contract or subcontract ($ millions) Less than $0.1 $0.1 - $0.49 $0.5 - $0.99 $1.0 - $1.9 $2.0 - $4.99 $5.0 or more WBE (n = 11) MBE (n = 26) Majority (n = 143) In separate analyses, presented in Appendix H, the study explored the bid capacity for all available firms in order to determine patterns in bid capacity related to the industry segment in which a firm performs its primary work and to MBE/WBE ownership status. In addition to comparing median bid capacity across these categories, the study team also specified and ran a multivariate statistical model to determine whether significant differences in a firm s bid capacity owed to the race and gender of the firm owner. These latter analyses are reported in Figure H-11 for construction firms and in Figure H-12 for engineering firms. Past bidding on NDOT, local agency and private sector work. The 2006 Availability Survey asked firm owners and managers whether they had submitted a bid or proposal (including submitting a price quote as a sub or supplier) on transportation-related projects in the past five years. Firms were asked about bidding as a prime or subcontractor on any part of a: NDOT project; City, county or local transportation agency project; and Private sector project. Responses only include firms that reported being qualified and interested in future NDOT or local government transportation construction and engineering work (these were the firms answering the full Availability Survey). The study team separately examined responses for firms in the transportation construction industry (including supply and trucking specializations) and firms in the transportation engineering industry (including engineering firms and related businesses). Results indicate the extent to which firms have pursued NDOT, local agency and private sector work. BBC RESEARCH & CONSULTING APPENDIX F, PAGE 48

289 Transportation construction industry firms past bidding on NDOT work. Nearly half of majorityowned transportation construction industry firms reporting to be qualified and interested in future transportation construction work in the Availability Survey reported bidding on NDOT work as a prime or a subcontractor, supplier or trucker in the past five years (including submitting price quotes). Only 8 percent had bid as a prime contractor. About 31 percent had only bid as a subcontractor (including submitting price quotes for supplies or for trucking). Similar proportions of minority- and women-owned firms reported bidding on past NDOT work, as shown in Figure F-33. Figure F-33. Transportation construction industry firms past bidding on NDOT work WBE (n = 100) Bid only as prime Note: WBE is white women-owned firms. MBE (n = 73) Bid as prime and subcontractor BBC Research and Consulting from 2006 Availability Survey. Majority (n = 510) Bid only as subcontractor Transportation construction industry firms past bidding on local government work. More than 47 percent of majority-owned firms and WBEs reported bidding on city, county or other local agency transportation projects in the past five years (including submitting price quotes). Forty-one percent of minority-owned firms indicated that they had bid on local projects. Among majority-owned transportation construction industry firms, 18 percent reported bidding as a prime and 38 percent reported bidding as a subcontractor, supplier or trucker (with some overlap between these groups). WBEs were as likely to have bid as subcontractors, but not as likely to have bid on prime contracts. Minority-owned firms were not as likely to have bid as primes or as subcontractors as majority-owned firms. Slightly fewer MBEs had bid on local projects as a prime than had bid on NDOT projects as a prime. Figure F-34 examines these results. Figure F-34. Transportation construction industry firms past bidding on local government work WBE (n = 102) Bid only as prime Note: WBE is white women-owned firms. MBE (n = 73) Bid as prime and subcontractor BBC Research and Consulting from 2006 Availability Survey. Majority (n = 504) Bid only as subcontractor BBC RESEARCH & CONSULTING APPENDIX F, PAGE 49

290 Transportation construction industry firms past bidding on private sector work. Telephone interviewers also asked firm owners and managers if the firm had bid on a private sector transportation project in the past five years. Majority-owned firms were somewhat less likely to have bid on private sector work as a subcontractor as bid on NDOT work as a sub (34 percent versus 39 percent). WBEs were much less likely to have bid on private sector work as a subcontractor or a prime contractor than have bid on any part of a NDOT project. Minority-owned firms were also less likely to have bid on private sector work as a prime contractor and as a subcontractor. Figure F-35. Transportation construction industry firms past bidding on private sector work Note: WBE is white women-owned firms. WBE (n = 96) MBE (n = 73) Bid only as prime Bid as prime and subcontractor BBC Research and Consulting from 2006 Availability Survey. Majority (n = 496) Bid only as subcontractor Summary of transportation construction firm competition for NDOT, local agency and private sector work. The pie charts in Figure F-36 examine the relative share of all firms competing for NDOT, local government and private sector prime contracts and subcontracts based on responses from firms in the 2006 Availability Survey. Of the 102 transportation construction industry firms in the Availability Survey that reported bidding on NDOT prime contracts in the past five years, 77.5 percent are majority-owned, 10.8 percent are MBEs and 11.8 percent are WBEs. The share of firms bidding as primes that are WBEs slightly increases for local government and private sector work. MBEs as a proportion of bidders to prime contracts decreases for local government and private sector projects. Among the 267 firms in the Availability Survey competing for subcontracts, 74.5 of the firms are majority-owned. MBE/WBE share of firms bidding on this subcontract work is substantially smaller on private sector subcontracts than on NDOT and local government subcontracts. BBC RESEARCH & CONSULTING APPENDIX F, PAGE 50

291 Figure F-36. MBE and WBE share of transportation construction industry firms bidding on different types of work in Nevada in the past 5 years NDOT Projects MBE (10.8) MBE (9.7) WBE (11.8) WBE (15.7) Majority (77.5) Majority (74.5) Prime Contracts Subcontracts (n = 102) (n = 267) Local Government Projects MBE (7.6) MBE (9.4) WBE (14.4) WBE (17.7) Majority (78.0) Majority (72.8) Prime Contracts (n = 118) Private Sector Contracts MBE (7.6) WBE (13.3) Subcontracts (n = 265) MBE (7.1) WBE (11.9) Majority (79.0) Prime Contracts (n = 105) Majority (81.0) Subcontracts (n = 210) Note: Source: WBE is white women-owned firms. BBC Research and Consulting from 2006 Availability Survey. BBC RESEARCH & CONSULTING APPENDIX F, PAGE 51

292 Transportation engineering industry firms past bidding on NDOT work. As shown in Figure F-37, women-owned transportation engineering firms are much less likely to have bid on past NDOT projects as a prime consultant or subconsultant than women-owned transportation construction firms. Among majority-owned firms, 16.2 percent had submitted proposals or proposed as a prime consultant on NDOT projects in the past five years, compared to only 9.3 percent of MBEs. Minority-owned engineering firms are much more likely to bid as subconsultants than either women- or majority-owned firms reporting previous bid experience in Nevada. Figure F-37 Transportation engineering industry firms past bidding on NDOT work WBE (n = 29) Bid only as prime Note: WBE is white women-owned firms. MBE (n = 54) Bid as prime and subcontractor BBC Research and Consulting from 2006 Availability Survey. Majority (n = 271) Bid only as subcontractor Transportation engineering industry firms past bidding on local government work. Results presented in Figure F-38 indicate that MBEs in general were more likely to have competed as subconsultants for past local agency work than majority-owned firms. The proportion of womenowned firms competing for engineering projects with local governments is substantially larger than the share bidding on NDOT projects. The proportion of women-owned firms bidding as prime consultants grew nearly five-fold. Figure F-38. Transportation engineering industry firms past bidding on local government work Note: WBE is white women-owned firms. WBE (n = 30) MBE (n = 53) Bid only as prime Bid as prime and subcontractor BBC Research and Consulting from 2006 Availability Survey. Majority (n = 276) Bid only as subcontractor BBC RESEARCH & CONSULTING APPENDIX F, PAGE 52

293 Transportation engineering industry firms past bidding on private sector work. More than two in five majority-owned transportation engineering industry firms had proposed as prime or subconsultants on private sector work in the past five years. This was higher than MBEs and WBEs. WBEs were less likely to bid as subconsultants than majority-owned firms (20 percent versus 23 percent). Relatively fewer MBEs and WBEs had competed for private sector prime contracts compared with majority-owned firms. Figure F-39 examines this information. Figure F-39. Transportation engineering industry firms past bidding on private sector work WBE (n = 29) Bid only as prime Note: WBE is white women-owned firms. MBE (n = 53) Bid as prime and subcontractor BBC Research and Consulting from 2006 Availability Survey. Majority (n = 276) Bid only as subcontractor Summary of transportation engineering firm competition for NDOT, local agency and private sector work. As with transportation construction firms, the study team developed pie charts to analyze the relative share of engineering industry firms competing for NDOT, local government and private sector prime contracts and subcontracts. These preliminary results are based on counts of firms reporting that they compete for each type of work in the 2006 Availability Survey. As shown in Figure F-40, MBE/WBEs are a smaller share of transportation engineering industry firms competing for public sector work than firms competing for private sector prime contract work (14 percent for the NDOT prime contracts versus 21 percent for prime contracts in the private sector). MBE/WBEs comprised 27 percent of firms pursing NDOT subcontracts, more than MBE/WBE representation among firms seeking subcontracts in the private sector (23 percent). BBC RESEARCH & CONSULTING APPENDIX F, PAGE 53

294 Figure F-40. MBEs and WBE share of transportation engineering industry firms proposing on different types of work in Nevada in the past five years NDOT Projects MBE (12.7) WBE (1.4) MBE (20.4) WBE (6.8) Majority (72.8) Majority (85.9) Prime Contracts (n = 71) Subcontracts (n = 103) Local Government Projects MBE (13.6) MBE (17.9) WBE (6.2) WBE (4.5) Majority (80.2) Prime Contracts (n = 81) Majority (77.7) Private Sector Contracts Subcontracts (n = 112) MBE (15.7) MBE (15.9) WBE (5.6) WBE (7.3) Majority (78.7) Majority (76.8) Prime Contracts (n = 89) Subcontracts (n = 82) Note: Source: WBE is white women-owned firms. BBC Research and Consulting from 2006 Availability Survey. BBC RESEARCH & CONSULTING APPENDIX F, PAGE 54

295 Relative success of firms in pursuing NDOT, local government and private sector work. Only a portion of the firms reporting bidding on different types of work were successful in obtaining that work. For example, 74 percent of majority-owned transportation construction industry firms that indicated bidding on NDOT work reported being awarded some part of an NDOT contract in the past five years. A greater share of majority-owned transportation construction firms that pursued local government work were successful in receiving that work (82 percent of bidders obtained a contract or subcontract). A similar percentage of majority-owned firms that bid on private sector work reported receiving such work. These statistics for overall bidding success rates combine firms bidding as prime contractors, subcontractors, suppliers and truckers (and combines awards by type). Figures F-41, F-42 and F-43 compare success rates of minority-, women- and majority-owned firms in the transportation construction industry when pursuing NDOT, local government and private sector work. Figures F-44, F-45 and F-46 examine results for the transportation engineering industry. NDOT transportation construction work. Figure F-41 examines the bidding success rates of transportation construction industry firms pursuing any part of a NDOT contract. As shown, about 74 of majority-owned firms that reported bidding or submitting price quotes on NDOT work (as primes, subs, suppliers, truckers) were successful in obtaining at least one contract or subcontract over the past five years. In contrast, only 66 percent of minority-owned firms that bid on NDOT work were successful in obtaining such work. WBEs had a higher success rate than majority-owned firms when pursuing NDOT work. Figure F-41. Success rate of transportation construction firms bidding on NDOT work WBE (n = 48) 79.2 Note: Success rate is the percentage of firms bidding on work in the past five years that received contracts or subcontract. WBE is white women-owned firms. MBE (n = 29) 65.5 BBC Research and Consulting from 2006 Availability Survey. Majority (n = 228) BBC RESEARCH & CONSULTING APPENDIX F, PAGE 55

296 Local government transportation construction work. Nearly 82 percent of majority-owned transportation construction industry firms that had bid on any part of a local government contract were successful in obtaining at least one contract or subcontract. Bidding success rates were lower for minority-owned firms (63 percent) and women-owned firms (76 percent). Figure F-42. Success rate of transportation construction firms bidding on local government work WBE (n = 50) 76.0 Note: Success rate is the percentage of firms bidding on work in the past five years that received contracts or subcontract. WBE is white women-owned firms. MBE (n = 30) 63.3 BBC Research and Consulting from 2006 Availability Survey. Majority (n = 236) Private sector transportation construction work. As presented in Figure F-43, 84 percent of majority-owned transportation construction industry firms that had bid on any private sector work (including subcontracts) were successful in receiving some work from this sector. The success rate of WBEs was comparable. MBEs pursuing private sector work were not as successful as majority-owned firms based on the survey responses. Figure F-43. Success rate of transportation construction firms bidding on private sector work WBE (n = 32) 84.4 Note: Success rate is the percentage of firms bidding on work in the past five years that received contracts or subcontract. WBE is white women-owned firms. MBE (n = 19) 57.9 BBC Research and Consulting from 2006 Availability Survey. Majority (n = 207) BBC RESEARCH & CONSULTING APPENDIX F, PAGE 56

297 NDOT transportation engineering work. The study team performed similar analyses for transportation engineering industry firms responding to the Availability Survey. Figure F-44 examines the success rate of transportation engineering industry firms in obtaining NDOT work as prime consultants or subconsultants. About 56 percent of majority-owned firms seeking NDOT prime contracts or subcontracts were successful in obtaining some NDOT work over the past five years. There were no substantial differences in success rates for WBEs. MBEs had a substantially higher rate of success (75 percent). Figure F-44. Success rate of transportation engineering firms bidding on NDOT work WBE (n = 7) 57.1 Note: Success rate is the percentage of firms bidding on work in the past five years that received contracts or subcontract. WBE is white women-owned firms. MBE (n = 24) 75.0 BBC Research and Consulting from 2006 Availability Survey. Majority (n = 114) Local government transportation engineering work. Nearly 70 percent of majority-owned transportation engineering industry firms proposing as prime consultants or subconsultants on local government work were successful in obtaining work. WBEs had even greater success than majorityowned firms in obtaining work on local government projects. Regardless of ownerships, transportation engineering industry firms were more likely to have success in obtaining some local government work than NDOT work. Figure F-45. Success rate of transportation engineering firms bidding on local government work WBE (n = 10) 90.0 Note: Success rate is the percentage of firms bidding on work in the past five years that received contracts or subcontract. WBE is white women-owned firms. MBE (n = 23) 82.6 BBC Research and Consulting from 2006 Availability Survey. Majority (n = 127) BBC RESEARCH & CONSULTING APPENDIX F, PAGE 57

298 Private sector transportation engineering work. More than 80 percent of majority-owned transportation engineering industry firms that had bid on any private sector work (including subcontracts) were successful in receiving some work from this sector. Relatively fewer minority-owned transportation engineering industry firms were successful when seeking this work (75 percent). As shown in Figure F-46, WBEs that had proposed on private sector work had success rates higher than majority-owned firms. Figure F-46. Success rate of transportation engineering firms bidding on private sector work WBE (n = 8) 87.5 Note: Success rate is the percentage of firms bidding on work in the past five years that received contracts or subcontract. WBE is white women-owned firms. MBE (n = 20) 75.0 BBC Research and Consulting from 2006 Availability Survey. Majority (n = 115) BBC RESEARCH & CONSULTING APPENDIX F, PAGE 58

299 APPENDIX G. Analysis of U.S. Census of Population Data The study team utilized U.S. Census data from the 1980, 1990 and 2000 U.S. Census 5 Public Use Micro-samples (PUMS data) to analyze: Demographic characteristics of workers in construction and engineering, including related occupations; Educational attainment; and Self-employment (business ownership). PUMS offers several features ideal to the analyses reported in this study, including historical crosssectional data; stratified national and state-level samples; large sample sizes, even for subsets of the population (e.g., ethnic and occupational groups); and robust variables for statistically significant estimates. BBC obtained selected Census data via the Minnesota Population Center s Integrated Public Use Micro-data Series (IPUMS). The IPUMS program provides access to customized, accurate data extracts. These data are available at the IPUMS web site. 1 Data for 2000 The 2000 U.S. sample contains 14,081,466 observations. Applying the Census person-level population weights, this sample represents 281,421,906 people in the United States. The 2000 Nevada sub-sample contains 100,429 individual observations, weighted to represent 2,000,306 people in the state. Categorizing individual race/ethnicity. To define race/ethnicity for the 2000 Census data set, BBC used the IPUMS race variable with the greatest level of detail and categorized each race type into one of seven groups: Non-Hispanic white; Hispanic American; African-American; Asian-Pacific American; Subcontinent Asian American; Native American; and Other minority (unspecified) 1 Steven Ruggles, Matthew Sobek, Trent Alexander, Catherine A. Fitch, Ronald Goeken, Patricia Kelly Hall, Miriam King, and Chad Ronnander. Integrated Public Use Microdata Series: Version 3.0 [Machine-readable database]. Minneapolis, MN: Minnesota Population Center [producer and distributor], BBC RESEARCH & CONSULTING APPENDIX G, PAGE 1

300 An individual is considered non-hispanic white if not Hispanic and not in combination with any other race group. Any self-identified Hispanic individuals are considered Hispanic American, regardless of any other race group identification. For the five other race groups, an individual s race/ethnicity is categorized by the first (or only) race group identified in each possible race-type combination. BBC uses a rank ordering methodology which complements the 2000 Census data dictionary rank ordering. African-American is first, followed by Native American, then Asian-Pacific American and finally Subcontinent Asian American. For example, if an individual identified Korean, this person belongs in the Asian-Pacific American category, whereas, if the individual identified Korean in combination with Black, the individual is considered African-American. Hispanic identification overrules any other race group identification. The Asian-Pacific American category includes the following race/ethnic groups: Cambodian, Chamorro, Chinese, Filipino, Guamanian, Hmong, Indonesian, Japanese, Korean, Laotian, Malaysian, Samoan, Taiwanese, Thai, Tongan, and Vietnamese. This category also includes other Polynesian, Melanesian and Micronesian races as well as individuals identified as Pacific Islanders. The Subcontinent Asian American category includes these race groups: Asian Indian (Hindu), Bangladeshi, Pakistani, and Sri Lankan. Any individuals identified as Asian, but not clearly categorized as Asian-Pacific versus Subcontinent Asian, are put into the Asian-Pacific group. (Overall, ninety-five percent of Asians counted in the 2000 Census in Nevada were Asian-Pacific Americans.) American Indian, Alaskan Native, Hawaiian and Latin American Indian groups are considered Native American. If an individual is identified with any of the above groups and an other race group, the individual is categorized into the known category. Individuals identified as Other race or White and other race are categorized as Other minority. The exception to the rules listed above applies to individuals who are Asian-Pacific American in combination with Hawaiian. An individual identified as Hawaiian alone is considered Native American. Individuals who are a combination of Native American and Asian-Pacific are considered Native American in all cases except those identified as Hawaiian Native Americans. These individuals are considered primarily Asian-Pacific. Business ownership. BBC uses the Census class of worker variable (CLASSWKD) to determine self-employment. Individuals are classified into eight categories: Self-employed for a non-incorporated business, Self-employed for an incorporated business, Wage or salary employee for a private firm, Wage or salary employee for a non-profit organization, Employee of the Federal government, Employee of a State government, BBC RESEARCH & CONSULTING APPENDIX G, PAGE 2

301 Employee of a local government, or Unpaid family worker. BBC included as business owners individuals who reported self-employment, either for an incorporated or a non-incorporated business. Defining selected industry sectors. The construction sector is defined using the 2000 Census code for the industry, 077, which is equivalent to the 1997 NAICS code 23. The Architectural, Engineering and Related Services industry is Census code 729, corresponding to 1997 NAICS code Relevant engineering occupational titles. When referring to engineering as an occupation, BBC included civil (136), environmental (142), mining and geological engineers (150). The Census codes for these occupational titles (in parentheses) tie to Standard Occupational Classification (SOC) codes , and , respectively. Education variables. BBC used the variable denoting the highest level of educational attainment to classify individuals into the following four categories: less than high school, high school diploma, some college and at least a bachelor s degree. Definition of workers. The universe for the class of worker, industry and occupation variables includes individuals over the age of 16 who reported last working within the five years preceding the Census survey. Comparisons Over Time BBC utilized IPUMS data from the 1980, 1990 and 2000 Censuses to analyze changes in worker demographics, educational attainment and business ownership over time. Changes in race/ethnicity categories between censuses. Figure E-1 lists the seven BBCdefined race/ethnic categories with the corresponding 2000, 1990 and 1980 Census race groups. The comparability of specific race/ethnic categories is relatively straightforward between 1980 and However, the U.S. Bureau of the Census introduced a combination of race types in Individuals could select multiple races when responding to the 2000 Census questionnaire. For example, an individual who is primarily white, yet with one quarter of Native American ancestry, could choose the White and American Indian/Alaska Native race group in However, if the same individual must choose a single race, as in prior years, the choice may either be white or American Indian/Alaska Native. The choice depends on unknowable factors including how strongly the individual identifies with his or her Native heritage. In addition, the data analyst does not have information about the proportions of individual ancestry, and will only know that the ancestry is mixed. The variability introduced by allowing multiple race selection complicates direct comparisons between race data from the 2000 Census and previous censuses. Even so, 98 percent of survey respondents in 2000 indicated a single race. 2 2 Grieco, Elizabeth M. & Rachel C. Cassidy. Overview of Race and Hispanic Origin, Census 2000 Brief, March 2001, page 3. BBC RESEARCH & CONSULTING APPENDIX G, PAGE 3

302 Figure G-1. BBC race/ethnic categories compared with Census race and Hispanic Origin survey questions, BBC-defined race/ethnic categories 2000 Census 1990 Census 1980 Census African- American Hispanic origin: no Race: Black/Negro alone or in combination with any other non- Hispanic group Hispanic origin: no Race: Black/Negro Hispanic origin: no Race: Black/Negro Asian-Pacific American Hispanic origin: no Race: Chinese, Taiwanese, Japanese, Filipino, Korean, Vietnamese, Cambodian, Hmong, Laotian, Thai, Indonesian, Malaysian, Samoan, Tongan, Polynesian, Guamanian/Chamorro, Pacific Islander, Micronesian, Melanesian, or other Asian, either alone or in combination with any non-hispanic, non-black, or non-native American groups. Does include Asian-Pacific in combination with Hawaiian. Hispanic origin: no Race: Chinese, Taiwanese, Japanese, Filipino, Korean, Vietnamese, Cambodian, Hmong, Laotian, Thai, Burmese, Indonesian, Malaysian, Okinawan, Samoan, Tahitian, Tongan, Guamanian/Chamorro, Northern Mariana Islander, Palauan, Fijian, Pacific Islander, Micronesian, Melanesian, other Polynesian, or other Asian Hispanic origin: no Race: Chinese, Japanese, Filipino, Korean, Vietnamese, Pacific Islander or other Asian Subcontinent Asian American Hispanic origin: no Race: Asian Indian, Bangladeshi, Pakistani or Sri Lankan, alone or in combination with white or other groups only Hispanic origin: no Race: Asian Indian, Bangladeshi, Pakistani or Sri Lankan Hispanic origin: no Race: Asian Indian Hispanic American Hispanic origin: yes Race: any race groups, alone or in combination with other groups Hispanic origin: yes Race: any Hispanic origin: yes Race: any, - OR - Hispanic origin: no Race: Spanish Native American Hispanic origin: no Race: American Indian or Alaskan Native tribe identified, or Hawaiian, alone or in combination with any non-hispanic, non-black group. Does not include Asian-Pacific in combination with Hawaiian. Hispanic origin: no Race: American Indian or Alaskan Native tribe identified, or Hawaiian Hispanic origin: no Race: American Indian/Alaska Native or Hawaiian Other minority group Hispanic origin: no Race: other race alone or in combination with white only Hispanic origin: no Race: other race Hispanic origin: no Race: other race Non-Hispanic white Hispanic origin: no Race: white alone Hispanic origin: no Race: white Hispanic origin: no Race: white Source: BBC Research and Consulting from the IPUMS program: BBC RESEARCH & CONSULTING APPENDIX G, PAGE 4

303 Although there are fewer race types in the 1980 data, the 1990 race types fall into 1980 categories. However, by using two categories of Asian individuals, BBC loses some accuracy when comparing Asian individuals between 1980 and 1990: individuals identified as Bangladeshi, Pakistani and Sri Lankan are categorized as Subcontinent Asian American in 1990, yet these race groups are not included in In 1980, the same individuals would be included in the Other Asian race type, and therefore categorized by BBC as Asian-Pacific American. Together, these three groups accounted for 0.04 percent of the 1990 sample. Business ownership. BBC uses the Census class of worker variable (CLASSWKD) to determine self-employment. This variable is the same for 1980, 1990 and Changes in industry codes between censuses. The Construction sector is coded as 077 in the 2000 Census, and 060 in the 1990 and 1980 Censuses. The 2000 Census includes the Architectural, Engineering and Related Services industry as code 729. In 1980 and 1990, the code is 882 for Engineering, Architectural and Surveying Services. Changes in occupational codes between censuses. Occupational titles and codes vary between censuses. BBC makes the following adjustments: Codes used to determine the occupational (versus industry) category of engineer. The 1980 and 1990 Censuses do not include specific categories for environmental or geological engineers, so these are omitted when comparing populations over time by engineering occupation. Instead, BBC focuses on civil engineers, coded as 136 in 2000, or 53 in 1980 and Codes used to determine occupations within the construction industry. Figure E-2 contains the occupational code crosswalk and all job descriptions. Changes in educational variables between censuses. The 1990 and 2000 Censuses provide the same educational attainment variables, which denote the highest degree achieved, but the 1980 Census uses a highest-grade completed variable. In order to compare educational attainment from 1980 to 1990 or 2000, BBC made the following assumptions: An individual has less than a high school diploma the individual is attending 12 th grade or at any lower grade level. An individual who completed 12 th grade is considered a high school graduate. An individual who completed at least 12 th grade, but less than completion of four years of college is categorized under some college. An individual who completed at least four years of college is categorized as receiving at least a bachelor s degree. BBC RESEARCH & CONSULTING APPENDIX G, PAGE 5

304 Figure G-2. Occupational crosswalk for 1980 and 2000 IPUMS data Census 2000 Occupational title and code Census 1980 Occupational title and code Job description for 2000 titles Construction laborers 626 Cement masons, concrete finishers and terrazzo workers 625 Iron and steel workers, including reinforcing iron and rebar workers 653 Electricians 635 Paving, surfacing and tamping equipment operators 630 Miscellaneous construction equipment operators, including pile-driver operators 632 Construction laborers 869 Concrete and terrazzo finishers 588 Structural metal workers 597 Electricians and apprentices 575 & 576 Paving, surfacing and tamping equipment operators 594 Grader, dozer and scraper operators 855 Perform tasks involving physical labor at building, highway, and heavy construction projects, tunnel and shaft excavations, and demolition sites. May operate hand and power tools of all types: air hammers, earth tampers, cement mixers, small mechanical hoists, surveying and measuring equipment, and a variety of other equipment and instruments. May clean and prepare sites, dig trenches, set braces to support the sides of excavations, erect scaffolding, clean up rubble and debris, and remove asbestos, lead, and other hazardous waste materials. May assist other craft workers. Exclude construction laborers who primarily assist a particular craft worker, and classify them under "Helpers, Construction Trades." Smooth and finish surfaces of poured concrete, such as floors, walks, sidewalks, or curbs using a variety of hand and power tools. Align forms for sidewalks, curbs or gutters; patch voids; use saws to cut expansion joints. Terrazzo workers apply a mixture of cement, sand, pigment or marble chips to floors, stairways, and cabinet fixtures. Iron and steel workers raise, place, and unite iron or steel girders, columns, and other structural members to form completed structures or structural frameworks. May erect metal storage tanks and assemble prefabricated metal buildings. Reinforcing iron and rebar workers position and secure steel bars or mesh in concrete forms in order to reinforce concrete. Use a variety of fasteners, rodbending machines, blowtorches, and hand tools. Include rod busters. Install, maintain, and repair electrical wiring, equipment, and fixtures. Ensure that work is in accordance with relevant codes. May install or service street lights, intercom systems, or electrical control systems. Exclude "Security and Fire Alarm Systems Installers." The 2000 category includes electrician apprentices. Operate equipment used for applying concrete, asphalt, or other materials to road beds, parking lots, or airport runways and taxiways, or equipment used for tamping gravel, dirt, or other materials. Include concrete and asphalt paving machine operators, form tampers, tamping machine operators, and stone spreader operators. Operate one or several types of power construction equipment, such as motor graders, bulldozers, scrapers, compressors, pumps, derricks, shovels, tractors, or front-end loaders to excavate, move, and grade earth, erect structures, or pour concrete or other hard surface pavement. Operate pile drivers mounted on skids, barges, crawler treads, or locomotive cranes to drive pilings for retaining walls, bulkheads, and foundations of structures, such as buildings, bridges, and piers. BBC RESEARCH & CONSULTING APPENDIX G, PAGE 6

305 Figure G-2. (continued) Occupational crosswalk for 1980 and 2000 IPUMS data Census 2000 Occupational title and code Census 1980 Occupational title and code Job description for 2000 titles Driver/sales workers and truck drivers 913 Crane and tower operators 951 Dredge, excavating and loading machine operators 952 First-line supervisors/manag ers of construction trades and extraction workers 620 Truck drivers (heavy), truck drivers (light) and driver-sales workers 804, 805 & 806 Crane and tower operators 849 Excavating and loading machine operators 853 Supervisors (categories separated): brickmasons, stonemasons, and tile setters; carpenters and related workers; electricians and power transmission installers; painters, paperhangers and plasterers; plumbers, pipefitters and steamfitters; n.e.c.; and extractive occupations & 613 Driver/sales workers drive trucks or other vehicles over established routes or within an established territory and sell goods, such as food products, including restaurant take-out items, or pick up and deliver items, such as laundry. May also take orders and collect payments. Include newspaper delivery drivers. Truck drivers (heavy) drive a tractor-trailer combination or a truck with a capacity of at least 26,000 GVW, to transport and deliver goods, livestock, or materials in liquid, loose, or packaged form. May be required to unload truck. May require use of automated routing equipment. Requires commercial drivers' license. Truck drivers (light) drive a truck or van with a capacity of under 26,000 GVW, primarily to deliver or pick up merchandise or to deliver packages within a specified area. May require use of automatic routing or location software. May load and unload truck. Exclude "Couriers and Messengers." Operate mechanical boom and cable or tower and cable equipment to lift and move materials, machines, or products in many directions. Exclude "Excavating and Loading Machine and Dragline Operators." Dredge operators operate dredge to remove sand, gravel, or other materials from lakes, rivers, or streams; and to excavate and maintain navigable channels in waterways. Excavating and loading machine, and dragline operators Operate or tend machinery equipped with scoops, shovels, or buckets, to excavate and load loose materials. Loading machine operators, underground mining, Operate underground loading machine to load coal, ore, or rock into shuttle or mine car or onto conveyors. Loading equipment may include power shovels, hoisting engines equipped with cable-drawn scraper or scoop, or machines equipped with gathering arms and conveyor. Directly supervise and coordinate the activities of construction or extraction workers. BBC RESEARCH & CONSULTING APPENDIX G, PAGE 7

306 Figure G-2. (continued) Occupational crosswalk for 1980 and 2000 IPUMS data Census 2000 Occupational title and code Census 1980 Occupational title and code Job description for 2000 titles Construction managers 22 Managers and administrators, n.e.c 19 Plan, direct, coordinate, or budget, usually through subordinate supervisory personnel, activities concerned with the construction and maintenance of structures, facilities, and systems. Participate in the conceptual development of a construction project and oversee its organization, scheduling, and implementation. Include specialized construction fields, such as carpentry or plumbing. Include general superintendents, project managers, and constructors who manage, coordinate, and supervise the construction process. Note: Source: All occupational groups include only individuals who work in the construction industry. By definition, this includes workers over the age of 16 who reported last working within five years of the Census survey Census occupational titles and codes at codes and titles at job descriptions from the Bureau of Labor Statistics BBC RESEARCH & CONSULTING APPENDIX G, PAGE 8

307 APPENDIX H. Regression Analysis In Section III and Appendix F, the study team noted that there were statistically significant disparities for some minority groups (and non-hispanic, white women) in rates of business ownership, earnings of business owners, and frequency of business loan denials. BBC considered the possibility that neutral factors, such as age, education, access to capital and creditworthiness (among others) might account for at least a portion of these disparities. The study team further investigated these issues through multivariate regression analyses. This appendix documents the regression analysis. In the comparison of availability versus utilization of minority and women-owned firms for the disparity analysis, the study team only considers firms to be available for a potential project if they had previously bid on (or been awarded) a project of similar size. If, however, there are significant disparities in bid capacity based on minority or female firm ownership, the study team s approach might underestimate the availability of minority and women-owned firms in the disparity analysis (and perhaps not find disparities when more comprehensive analysis would reveal them). This appendix also further investigates potential disparities in bid capacity for minority and women-owned firms. Business Ownership As discussed in Appendix F, there is an extensive literature on the determinants of business ownership. Prior studies have found that neutral factors such as access to financial capital, education, age, family characteristics (e.g. marital status) and other factors can help explain rates of selfemployment. This issue has also been examined in other disparity studies. Prior studies in Minnesota 1 and Illinois 2 have conducted econometric analyses to investigate whether or not disparities in business ownership among race, ethnic and gender groups in the combined construction and engineering industry remain after controlling for neutral factors. These studies have incorporated probit econometric models using data from the 2000 Census Public Use Microdata Sample (2000 PUMS). These studies have been among the materials submitted to the courts in subsequent litigation concerning states implementation of the Federal DBE Program. To further examine potential disparities in the rates of business ownership among employees in the Nevada construction and engineering industries, the study team developed a probit model using 2000 PUMS data for Nevada residents employed in these industries. The PUMS data is a 5 percent sample of U.S. households and the Census Bureau assigns a weight to each observation so that the weighted sample is representative of the population as a whole. 1 National Economic Research Associates, Inc Disadvantaged Business Enterprise Availability Study. Prepared for the Minnesota Department of Transportation. 2 National Economic Research Associates, Inc Disadvantaged Business Enterprise Availability Study. Prepared for the Illinois Department of Transportation. BBC RESEARCH & CONSULTING APPENDIX H, PAGE 1

308 The probit model of business ownership in Nevada includes more than 4,800 individuals working in the construction and engineering industries. The dependent variable is binary coded as a 1 for individuals who are self-employed and a 0 for individuals who are not self-employed. The model estimates the probabilities of being a business owner among workers in the industry. The study team excluded observations where the Census Bureau had imputed self-employment (the dependent variable). BBC developed a model specification based on models developed by past researchers at the national level or in other states. Independent variables include: Personal characteristics potentially linked to the likelihood of business ownership (age, agesquared, marital status, number of children and elderly people in the household, ability to speak English and disability status); Variables to control for differences in educational attainment; Measures and indicators related to personal financial resources and constraints (home ownership, home value, monthly mortgage payment, dividend and interest income and additional household income from a spouse or unmarried partner); and Variables to indicate the race, ethnicity and gender of the individual. The specification of this model is very similar to models used in other studies previously reviewed by the courts. Results for the combined Nevada construction and engineering industries. Figure H-1 presents the coefficients and t-statistics for the initial probit model, which combines individuals working in both the construction and engineering industries. The model indicates that several of the neutral factors are statistically significant in predicting the probability of business ownership; Older individuals are more likely to be business owners, but this marginal effect declines for the oldest individuals; Interest and dividend income is positively correlated with being a business owner; Individuals who speak English very well are more likely to be business owners; Having a four year college degree, but not necessarily an advanced degree, increases the likelihood of being a business owner; Income of a spouse or partner increases the likelihood of a person being a business owner; Individuals with high monthly mortgage payments are less likely to be business owners; and The combination of the negative coefficient on the binary indicator of home ownership and the positive coefficient on the value of the home imply that homeownership only begins to increase the likelihood of business ownership for individuals with homes valued above approximately $105,000. BBC RESEARCH & CONSULTING APPENDIX H, PAGE 2

309 The effects of these neutral factors are generally consistent with previous research on business ownership and entrepreneurship. After controlling for neutral factors identified based on the PUMS data set, statistically significant disparities in rates of business ownership remain for African Americans in the construction and engineering industries. Figure H-1 presents the results of the probit model of self-employment in the construction and engineering industries in Nevada. Figure H-1. Nevada Combined Construction and Engineering Business Ownership Probit Model Variable Coefficient t-statistic Constant ** Age ** Age-squared ** Married Disabled Own children younger than Number of people over 65 in HH Own home ** Home value ($000s) ** Monthly mortgage payment * Interest and dividend income ($000s) * Income of spouse or partner ($000s) ** Speaks English very well ** Less than high school education Some college Four year degree ** Advanced degree African American ** Asian Pacific American Subcontinent Asian American DROPPED Hispanic American Native American Other minority group Female Note: Source *Significant at 90 confidence level. **Significant at 95 confidence level. ***Subcontinent Asian American variable dropped from the model due to small number of observations. BBC Research & Consulting based on analysis of 2000 Census Public Use Microdata Sample. BBC RESEARCH & CONSULTING APPENDIX H, PAGE 3

310 Results specific to the construction industry. It is possible that the influence of neutral factors, and perhaps race and gender, on self-employment in the construction industry differ from those in the engineering industry. To examine this possibility the study team developed a separate model for the construction industry. Figure H-2 presents the results of the probit model of self-employment in the Nevada construction industry. Figure H-2. Nevada Construction Business Ownership Probit Model Variable Coefficient t-statistic Constant ** Age ** Age-squared * Married Disabled Own children younger than Number of people over 65 in HH * Own home ** Home value ($000s) ** Monthly mortgage payment * Interest and dividend income ($000s) ** Income of spouse or partner ($000s) * Speaks English very well ** Less than high school education Some college Four year degree ** Advanced degree ** African American ** Asian Pacific American Subcontinent Asian American DROPPED Hispanic American ** Native American Other minority group Female * Note: Source: *Significant at 90 confidence level. **Significant at 95 confidence level. ***Subcontinent Asian American variable dropped from the model due to small number of observations. BBC Research & Consulting based on analysis of 2000 Census Public Use Microdata Sample. BBC RESEARCH & CONSULTING APPENDIX H, PAGE 4

311 Results of the construction industry only model are generally similar to the model for the combined industries, with the following exceptions: Individuals with at least one person in the household over the age of 65 increases the likelihood of being a business owner in construction; Having an advanced degree significantly decreases the likelihood of being a business owner; and After accounting for neutral factors identifiable from the 2000 PUMS data, the model shows significant disparities in business ownership rates for Hispanic Americans and women in the construction industry (in addition to African Americans). The construction industry-only model continues to indicate significant disparities in the rate of business ownership for African Americans. The probit modeling approach can be used to estimate how many business owners there would be among each minority group with significant disparities in self-employment rates if they had the same probability of business ownership as similarly situated non-hispanic white males. To conduct this next step in the analysis, BBC re-estimated the probit business ownership model based on only the non-hispanic white males in the PUMS dataset. 3 The study team applied the coefficients from this version of the model to the characteristics of the minority and female individuals in the dataset to calculate the probability of business ownership in the absence of race, ethnicity and gender-related effects. Simulated business ownership rates are then compared to the actual, observed mean probability of business ownership for each statistically significant group. This simulation approach has also been incorporated in other disparity studies reviewed by the courts. BBC simulated business ownership rates for minority groups in the construction industry in the absence of race, ethnicity and gender-related effects. Figure H-3 depicts these simulated business earnings and compares them to the actual, observed mean probability of business earnings for each statistically significant group. Figure H-3. Comparison of Actual Construction Business Ownership Rates to Simulated Rates Under Non-Hispanic, White Male Business Environment for Groups Experiencing Significant Disparities Group Self-employment Rates Disparity Index Actual Benchmark (100 = parity) African American Hispanic American Females Source: BBC Research & Consulting from statistical models of 2000 Census of Population data. 3 This version of the model excludes the race, ethnicity and gender indicator variables since the value for all of those variables would be zero. BBC RESEARCH & CONSULTING APPENDIX H, PAGE 5

312 Results suggest that there were only 18 percent as many African American owned construction businesses in Nevada as one would anticipate if African Americans working in the industry owned businesses at the same rate as similarly situated non-hispanic, white males. This disparity is somewhat smaller for Hispanic Americans. Women in the construction industry experience a slightly lower business ownership rate than similarly situated non-hispanic, white males. Results specific to the engineering industry. Due to the small number of minority business owners in the PUMS data set for the engineering industry, the study team was unable to develop a separate engineering-only business ownership model. Business Earnings Appendix F includes analysis of business earnings for business owners in the construction and engineering industries in Nevada. Differences in business owner earnings may be at least partially accounted for by race- and gender-neutral factors such as age. The study team applied ordinary least squares (OLS) regression analysis to the 2000 PUMS data to examine whether disparities in business earnings remained after controlling for neutral factors. The OLS model of construction and engineering business owner earnings in Nevada included 340 observations. The dependent variable in this model is the natural log of business earnings. Business owners reporting zero or negative business earnings were excluded, as were observations where the Census Bureau had imputed the amount of business earnings. Apart from variables indicating the race, ethnicity and gender of the business owner, the model also contained the available measures from the PUMS data considered likely to affect earnings potential including age, age-squared, marital status, ability to speak English very well, disability condition and educational attainment. This model is very similar to models reviewed by the courts after other recent disparity studies. 4 4 For example, National Economic Research Associates, Inc Disadvantaged Business Enterprise Availability Study. Prepared for the Minnesota Department of Transportation; and National Economic Research Associates, Inc Disadvantaged Business Enterprise Availability Study. Prepared for the Illinois Department of Transportation. BBC RESEARCH & CONSULTING APPENDIX H, PAGE 6

313 Results for the Nevada construction and engineering industries. Figure H-4 depicts the results of the OLS model for the combined construction and engineering industries (past studies reviewed by the courts have combined construction and engineering). The model indicates that a few of the neutral factors are statistically significant in predicting earnings of business owners in the Nevada construction and engineering industries: Older business owners have greater earnings, but this marginal effect declines for the oldest individuals; and Owners who are married tend to have greater business earnings. After accounting for neutral factors, model results indicate statistically significant disparities in earnings for female business owners. Figure H-4. Nevada Combined Construction and Engineering Business Owner Earnings Model Variable Coefficient t-statistic Constant ** Age ** Age-squared ** Married * Speak English Very Well Disabled Less than HS Some College Four Year Degree Advanced Degree African American Asian Pacific American Hispanic American Native American Other Minority Group Female ** Note: Source: *Significant at 90 confidence level. **Significant at 95 confidence level. ***Subcontinent Asian American variable dropped from the model due to small number of observations. BBC Research & Consulting, 2007 based on analysis of 2000 Census Public Use Microdata Sample. BBC RESEARCH & CONSULTING APPENDIX H, PAGE 7

314 Business owner earnings results specific to the construction industry. The study team recognized that the influences on business owner earnings might differ between construction firms and engineering firms. Figure H-5 presents the results of the OLS model of business owner earnings specific to the Nevada construction industry. Figure H-5. Nevada Construction Business Owner Earnings Model Variable Coefficient t-statistic Constant ** Age Age-squared * Married ** Speak English Very Well Disabled Less than HS Some College Four Year Degree Advanced Degree ** African American Asian Pacific American Subcontinent Asian American DROPPED Hispanic American Native American Other Minority Group Female ** Note: Source: *Significant at 90 confidence level. **Significant at 95 confidence level. BBC Research & Consulting, 2007 based on analysis of 2000 Census Public Use Microdata Sample. The construction-only model of business owner earnings shows similar influences from neutral factors as observed in the previous model combining construction and engineering firms, except that the oldest business owners in the industry tend to have lower earnings and individuals with an advanced degree are likely to have lower earnings. After controlling for neutral influences, model results continue to indicate significant disparities in business earnings for female business owners in the construction industry. BBC RESEARCH & CONSULTING APPENDIX H, PAGE 8

315 Similar to the business ownership analysis, BBC simulated business earnings for women in the construction industry in the absence of gender-related effects. Figure H-6 depicts simulated business earnings for women in the construction industry and compares them to the actual, observed mean probability of business earnings for female construction business owners. Results suggest that female business owners in the construction industry earn about 68 percent less than they would if they earned as much as similarly situated non-hispanic, white males. Figure H-6. Comparison of Actual Construction Business Owner Earnings to Simulated Earnings Under Non-Hispanic, White Male Business Environment for Groups Experiencing Significant Disparities Group Self-employment Rates Disparity Index Actual Benchmark (100 = parity) Females $ 5,565 $ 17, Source: BBC Research & Consulting from statistical models of 2000 Census of Population data. Results specific to the engineering industry. Again, due to the small number of minority business owners in the PUMS data set, the study team was unable to develop a separate engineering-only business owner earnings model. Likelihood of Business Loan Denial As discussed in Appendix F, access to capital is an important factor in small business formation and expansion. Based on data for both the nation and the Mountain region from the 1998 National Survey of Small Business Finances (NSSBF), minority-owned firms are more frequently denied on business loan applications than non-hispanic, white-owned firms. Previous studies have used probit econometric analysis in an effort to determine whether higher rates of loan denial for minorities can be explained by neutral factors. The standard model includes four types of variables that describe: The owner s credit and resources; The firm s credit and financial health; The environment in which the firm and lender operate, and Whether or not the owner is a member of a minority group. 5 5 See, for example, Blanchard, Lloyd; Zao, Bo and John Yinger Do Credit Barriers Exist for Minority and Women Entrepreneurs? Center for Policy Research, Syracuse University. BBC RESEARCH & CONSULTING APPENDIX H, PAGE 9

316 To examine whether neutral factors might explain the higher rates of loan denials for minority groups, the study team developed a probit model using the data from the 1998 NSSBF. After excluding a small number of observations where the loan outcome was imputed, the national sample included 932 firms that had applied for a loan during the three years preceding the survey. The Mountain region included 77 such firms. A large number of variables are required to control for differences in the neutral factors described previously. A total of 58 variables are included to represent the owners credit and resources (10 variables), the firm s credit and financial health (29 variables) and the environment in which the firm and lender operate including the nature of the loan applied for (19 variables). Given the relatively small sample sizes and the large number of variables the model requires, the study team did not attempt to estimate this model for the Mountain region by itself. Instead, we estimate a model that includes observations throughout the country and seek to identify any significant differences between the national credit market and the Mountain region credit market through interaction terms. These interactions include firms located in the Mountain region and firms owned by minorities and women in the region. This approach has been used in previous, peer-reviewed research. 6 Figure H-7 on the following page presents the coefficients and t-statistics from the probit model of loan denials. 6 Blanchflower, David G.; Levine, Phillip B. and David J. Zimmerman Discrimination in the Small-Business Credit Market. The Review of Economics and Statistics. 85(4): BBC RESEARCH & CONSULTING APPENDIX H, PAGE 10

317 Figure H-7. Dependent Variable: Loan Denial Note: Source: * Significant at 90 confidence level. ** Significant at 95 confidence level. BBC Research & Consulting analysis of 1998 NSSBF data. BBC RESEARCH & CONSULTING APPENDIX H, PAGE 11