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Pages 10-26

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From page 10...
... 10 A primary objective of this research is to develop a profile of DBEs that are successful from the perspective of state DOTs, including companies that have graduated from the federal DBE program. Definition of a Successful DBE and a Program Graduate Many of the components of this research require identification of successful DBEs as well as graduated DBEs.
From page 11...
... Profile of Successful DBEs 11 highway, street, and bridge construction companies at the time of this research. For manufacturing and wholesale trade, the size measure is based on average number of employees.
From page 12...
... 12 Compendium of Successful Practices, Strategies, and Resources in the U.S. DOT Disadvantaged Business Enterprise Program Successful DBEs Identified in the Research Based on the criteria discussed above, the NCHRP Project 20-95A research team collected information about successful DBEs for 45 states including the District of Columbia.
From page 13...
... Profile of Successful DBEs 13 Two-thirds of state DOTs identified DBEs that participated in state DOT work and obtained a substantial amount of work from public or private sector customers that did not operate programs analogous to the DBE program (Criterion #3)
From page 14...
... 14 Compendium of Successful Practices, Strategies, and Resources in the U.S. DOT Disadvantaged Business Enterprise Program Characteristics of Successful DBEs and Graduated DBEs Compared with All DBEs The research team compiled basic information about successful DBEs and a random sample of all DBEs from • Dun & Bradstreet -- address, primary NAICS, sales volume, year started, number of employees)
From page 15...
... Profile of Successful DBEs 15 DOTs were then asked to identify successful DBEs that are successful in participating as prime contractors on state DOT projects. The race, ethnicity, and gender profile of the owners of these firms is shown in the column labeled 2.
From page 16...
... 16 Compendium of Successful Practices, Strategies, and Resources in the U.S. DOT Disadvantaged Business Enterprise Program successful DBEs appear to be suppliers based on their two-digit NAICS codes (manufacturing, wholesale trade, or retail trade)
From page 17...
... Profile of Successful DBEs 17 11 Agriculture, forestry, fishing, and hunting 1.2 % 0.2 % 21 Mining, quarrying, and oil and gas extraction 0.1 0.0 22 Utilities 0.0 0.4 23 Construction 42.9 20.6 31 Manufacturing 0.0 0.1 32 Manufacturing 1.3 0.5 33 Manufacturing 3.3 1.8 42 Wholesale trade 2.9 5.0 44 Retail trade 0.8 1.5 45 Retail trade 0.3 0.5 48 Transportation and warehousing 7.2 8.3 49 Transportation and warehousing 0.0 0.1 51 Information 0.3 0.9 52 Finance and insurance 0.3 1.3 53 Real estate and rental and leasing 2.0 1.3 54 Professional, scientific, and technical services 25.8 36.5 56 Administrative and support, and waste mgmt. and remediation svcs.
From page 18...
... 18 Compendium of Successful Practices, Strategies, and Resources in the U.S. DOT Disadvantaged Business Enterprise Program NAICS code NAICS description 1114 Greenhouse, nursery, and floriculture production 3 0 0.4 % 0.0 % 1119 Other crop farming 1 0 0.1 0.0 1129 Other animal production 0 1 0.0 0.1 1151 Support activities for crop production 4 1 0.5 0.1 1153 Support activities for forestry 1 0 0.1 0.0 2123 Nonmetallic mineral mining and quarrying 1 0 0.1 0.0 2211 Electric power generation, transmission, and distribution 0 1 0.0 0.1 2212 Natural gas distribution 0 1 0.0 0.1 2213 Water, sewage, and other systems 0 1 0.0 0.1 2361 Residential building construction 28 48 3.7 5.7 2362 Nonresidential building construction 26 27 3.5 3.2 2371 Utility system construction 13 8 1.7 0.9 2373 Highway, street, and bridge construction 134 8 17.9 0.9 2379 Other heavy and civil engineering construction 5 2 0.7 0.2 2381 Foundation, structure, and building exterior contractors 36 22 4.8 2.6 2382 Building equip.
From page 19...
... Profile of Successful DBEs 19 NAICS code NAICS description Successful DBEs All DBEs Successful DBEs All DBEs 4251 Wholesale electronic markets and agents and brokers 0 2 0.0 0.2 4411 Automobile dealers 1 0 0.1 0.0 4412 Other motor vehicle dealers 0 1 0.0 0.1 4413 Automotive parts, accessories, and tire stores 1 0 0.1 0.0 4421 Furniture stores 0 2 0.0 0.2 4422 Home furnishings stores 0 1 0.0 0.1 4431 Electronics and appliance stores 0 2 0.0 0.2 4441 Building material and supplies dealers 3 5 0.4 0.6 4442 Lawn and garden equip. and supplies stores 0 1 0.0 0.1 4461 Health and personal care stores 0 1 0.0 0.1 4481 Clothing stores 1 0 0.1 0.0 4511 Sporting goods, hobby, and musical instrument stores 0 1 0.0 0.1 4532 Office supplies, stationery, and gift stores 0 1 0.0 0.1 4539 Other miscellaneous store retailers 1 2 0.1 0.2 4543 Direct selling establishments 1 0 0.1 0.0 4841 General freight trucking 32 41 4.3 4.9 4842 Specialized freight trucking 15 14 2.0 1.7 4851 Urban transit systems 0 3 0.0 0.4 4853 Taxi and limousine service 1 1 0.1 0.1 4881 Support activities for air transportation 0 1 0.0 0.1 4882 Support activities for rail transportation 0 1 0.0 0.1 4884 Support activities for road transportation 1 3 0.1 0.4 4885 Freight transportation arrangement 3 4 0.4 0.5 4889 Other support activities for transportation 2 2 0.3 0.2 4921 Couriers and express delivery services 0 1 0.0 0.1 5111 Newspaper, periodical, book, and directory publishers 0 1 0.0 0.1 5179 Other telecommunications 0 4 0.0 0.5 5182 Data processing, hosting, and related services 0 3 0.0 0.4 5191 Other information services 2 0 0.3 0.0 5223 Activities related to credit intermediation 0 2 0.0 0.2 5239 Other financial investment activities 1 5 0.1 0.6 5242 Agencies, brokerages, and other insurance related activities 1 4 0.1 0.5 5312 Offices of real estate agents and brokers 1 3 0.1 0.4 5313 Activities related to real estate 0 5 0.0 0.6 5322 Consumer goods rental 9 1 1.2 0.1 5324 Commercial and industrial machinery and equip.
From page 20...
... 20 Compendium of Successful Practices, Strategies, and Resources in the U.S. DOT Disadvantaged Business Enterprise Program example, a Hispanic American male owner of a DBE specialty contracting firm reported, "We've been able to take advantage of some of the opportunities that the state DOT has put out there.
From page 21...
... Profile of Successful DBEs 21 Type of work performed Construction Bridge and elevated highway 1.5 % 2.2 % 15.6 % Asphalt and concrete paving 1.5 1.5 15.6 Pavement milling 0.7 1.5 10.4 Pavement surface treatment 0.0 0.0 8.1 General road construction 5.2 8.1 24.4 Building construction 1.5 0.7 9.6 Wrecking and demolition 0.7 0.7 13.3 Excavation, site prep, grading, and drainage 2.2 3.7 23.0 Drilling and foundations 1.5 1.5 7.4 Concrete pumping 0.0 0.7 0.7 Underground utilities 2.2 0.7 8.1 Electrical work 2.2 3.0 3.0 Concrete cutting 0.7 0.0 13.3 Concrete flatwork 4.4 3.7 22.2 Structural steel and rebar work 3.7 3.7 14.1 Installation of guardrails, fencing, or signs 5.2 5.9 14.8 Plumbing and HVAC 0.0 0.0 0.7 Striping and pavement marking 0.7 1.5 11.9 Painting for road or bridge projects 1.5 1.5 5.2 Landscaping and related work including erosion control 4.4 5.2 11.9 Temporary traffic control 11.9 11.1 22.2 Trucking and hauling 9.6 7.4 22.2 Equipment rental 0.0 0.0 8.1 Other 3.0 0.7 0.7 Professional Services Architecture and engineering 12.6 % 8.9 % 16.3 % Transportation planning 2.2 1.5 8.1 Construction management 0.0 0.7 18.5 Environmental consulting 3.7 3.0 8.9 Inspection and testing 3.7 5.2 14.8 Surveying and mapping 1.5 2.2 7.4 Right of way consulting 0.0 0.0 1.5 Archeology 0.0 0.0 3.7 Public information and outreach 2.2 3.0 10.4 Staffing 1.5 0.0 0.7 Other 3.7 3.7 6.7 Suppliers Asphalt, concrete, or other paving materials 2.2 % 1.5 % 7.4 % Other materials supply 2.2 5.2 43.7 Total 100.0 % 100.0 % Original primary line of work Current primary line of work All current lines of work Note: Due to rounding, percentages may not sum to 100%. Table 7.
From page 22...
... 22 Compendium of Successful Practices, Strategies, and Resources in the U.S. DOT Disadvantaged Business Enterprise Program Only three of the firms identified as graduating had been established in the past 8 years (3% of all graduating firms)
From page 23...
... Profile of Successful DBEs 23 firms had graduated for reasons other than exceeding annual revenue limits, such as exceeding personal net worth limits or because the certifying agency determined that the owner had demonstrated that he or she was able to accumulate substantial wealth. As a point of comparison, Dun & Bradstreet data for the sample of all DBEs indicated median revenue of $270,000.
From page 24...
... 24 Compendium of Successful Practices, Strategies, and Resources in the U.S. DOT Disadvantaged Business Enterprise Program Largest Contract When asked about the size of the largest contract or subcontract the firm had received, almost one-half of successful DBEs surveyed indicated that it was between $1 million and $5 million.
From page 25...
... Profile of Successful DBEs 25 Public and Private Sector Work Ninety-five percent of all successful DBEs reported that they perform work in both the public and private sectors. About 30% of firms indicated that public sector work accounts for at least 90% of their work.
From page 26...
... 26 Compendium of Successful Practices, Strategies, and Resources in the U.S. DOT Disadvantaged Business Enterprise Program More than two-thirds of firm owners indicated that their firm would have lower annual revenue if they had never been certified as a DBE.

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