Latest news with #DisadvantagedBusinessEnterprise
Yahoo
5 days ago
- Business
- Yahoo
DOT agrees to remove race, gender-based criteria from DBE program
This story was originally published on Construction Dive. To receive daily news and insights, subscribe to our free daily Construction Dive newsletter. The DOT has agreed to settle a case challenging the constitutionality of its Disadvantaged Business Enterprise program, effectively barring women- and minority-owned companies from automatic inclusion in the initiative. In a joint motion filed May 28 in U.S. District Court for the Eastern District of Kentucky that still needs a judge's approval, DOT agreed to no longer defend gender and race as presupposed qualifications for inclusion in the program. 'USDOT has determined that the race- and sex-based presumptions in its DBE program can no longer pass constitutional scrutiny,' the agency wrote in court documents. The move essentially abandons the fight taken on by former President Joe Biden's administration to defend the program's constitutionality after a U.S. Supreme Court ruling banned affirmative action in higher education admissions in 2023. Although the proposed settlement casts uncertainty around the future of the DBE program, which was started in 1983 under President Ronald Reagan, it isn't an absolute death knell. For instance, the DOT could change the criteria for inclusion in the DBE program to look at specific circumstances, much as the Small Business Administration did for its similar 8(a) Business Development Program after a separate challenge was successful against that initiative. 'What this means is that, if the consent order is entered, companies who qualified as DBEs due to race or gender alone will likely need to be recertified as disadvantaged based on a unique narrative of what they've actually experienced over the course of doing business,' said Christopher Slottee, an attorney at law firm Schwabe in Anchorage, Alaska, who specializes in federal contracting. 'They'll need to show they've actually been harmed due to their race or gender.' The settlement also still needs to be granted by the judge in the case. Beyond that, Democracy Forward, a liberal advocacy group that has been a vocal legal challenger to President Donald Trump's policies during both of his terms, recently won a minor victory in gaining approval to intervene in the case, which is still ongoing. 'The participation in this case is essential to allowing minority- and women-owned businesses to fight for themselves and their communities, and we are pleased that the court will allow their voices to be heard, said Sarah von der Lippe, counsel for the Minority Business Enterprise Legal Defense and Education Fund in a May 21 Democracy Forward news release praising that decision. Whatever the ultimate outcome of the case, the DBE's future administration will likely be dramatically curtailed and increasingly complex, according to Slottee. He said based on the settlement in its current form, state DOTs would need to re-certify all existing DBE contractors without using an assumption of disadvantage based on gender or race alone to award any contracts under the initiative. In effect, the 'DOT may not approve any federal, state or local DOT-funded projects with DBE contract goals where any DBE in that jurisdiction was determined to be eligible based on a race- or sex-based rebuttable presumption,' Slottee said in an email to Construction Dive. That means just a single participant certified under DBE's old rules could now effectively block the program from making new awards going forward. 'For example, if a single, individually owned company in the State of Alaska was certified as a DBE due to the rebuttable presumption, the DOT would be barred by the proposed consent order from approving any projects in Alaska that had DBE goals,' Slottee said. Shortly following the Supreme Court's 2023 ruling on affirmative action in higher education, the Wisconsin Institute for Law & Liberty, a conservative advocacy group, filed suit against DOT on behalf of two White-owned businesses, Jeffersonville, Indiana-based Mid-America Milling Co. and Memphis, Indiana-based Bagshaw Trucking. It claimed that the DBE program, which aims to award 10% of federal contracts to disadvantaged businesses, was a legalized form of reverse discrimination, since women- and other non-majority-owned firms received automatic — or 'presumed' — certification to participate based on race or gender alone. 'All we want is a level playing field,' Kramer Koetter, president of Mid-America Milling, said in a news release. 'If my team can put forth the best product or service at a reasonable cost, then we should be rewarded for that. The DBE's removal returns common-sense back to contracting. Recommended Reading Debt ceiling breach would sink construction starts by as much as 30% Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Associated Press
08-04-2025
- Business
- Associated Press
Red Team Go Builds Equity Into the Foundation of Infrastructure
04/08/2025, Woodinville, Washington // PRODIGY: Feature Story // When it comes to architecture, engineering, and construction (A/E/C), equity has often been viewed as a requirement, rather than something that is the vehicle for building better infrastructure and communities. That is why Red Team Go (RTG) has been flipping the script for almost 15 years now. At its helm, founder Danica Mason blends in her industry knowledge with social advocacy into the consultancy firm. At the core of the company's mission are federal and state mandates that require a portion of public project spending to go toward diverse small businesses: those owned by women, minorities, veterans, and other underrepresented groups. Yet, these targets are often only met by the required amount and rarely exceeded, due to systematic hurdles, limited outreach, and fears around risk and cost. That's where RTG steps in. 'Our job is to bridge the gap between prime contractors and the small, certified businesses that can help meet diversity goals,' Danica says. 'We make the introductions, break down the work packages to a manageable size, and help everyone meet business objectives while fulfilling civil rights obligations.' This, for Danica, is more than about compliance; it's about transformation for these small owners. An analysis by the American Independent Business Alliance translates how every dollar spent with a small business circulates three times over within the community. Danica emphasizes, 'We're here to build capacity and create generational change. That's what equity should look like in real time.' Danica understands the stakes personally. As a woman-owned small business herself, she knows firsthand how difficult it can be to break into the industry—and how crucial those first opportunities are. 'RTG grew only through word of mouth for over a decade. We didn't even put up a website for those first ten years,' she shares. The consultancy firm built trust by delivering well. That trust allowed the company to grow, hire, and pay it forward. Danica Mason, founder of Red Team Go RTG's track record of exceeding diversity targets speaks for itself. On one design-build project with just a 2% Disadvantaged Business Enterprise (DBE) goal, the firm helped push utilization to nearly 14%. On a highway project with a 26% goal across multiple categories, RTG achieved a commendable 49% utilization. Danica shares that on the $700 million highway program, RTG helped connect more than 160 certified diverse businesses, generating nearly $180 million in spending, an impact that reaches far beyond any construction site. Danica understands that risk management is key: large firms often face higher costs and logistical challenges when working with smaller subcontractors. 'You're adding more overhead, more management needs, and sometimes unknown performance levels. Our job is to ensure that those small businesses are ready, capable, and supported—so prime businesses feel confident bringing them in.' The firm doesn't just work with private contractors. RTG also partners directly with public agencies—transportation departments, cities, and federal bodies—to facilitate utilization and compliance during project delivery. Their services span team development, SOQ and proposal management, branding, grant writing, and, critically, inclusion program administration. Their involvement with organizations like BuildIT, the only LGBT industry Association focused on sustainable growth for certified LGBT-owned businesses and allies, further illustrates RTG's commitment to equity as both a business strategy and a value system. RTG's founder Danica believes that equity in A/E/C isn't just the right thing to do; it's the smart thing. 'When you diversify your team, suppliers, and subs, you strengthen your project. And you strengthen the communities you're building in.' RTG's model is simple but powerful: create opportunity, deliver quality, and grow capacity. They don't take on work they can't deliver on. Every member of the team specializes in their role. That selectivity, combined with deep industry knowledge, is what's allowed RTG to scale successfully while staying true to its mission. Looking ahead, Mason envisions RTG playing an even bigger role in reshaping how inclusion is built into infrastructure from the ground up. 'We've always focused on collaboration,' she says. 'And now we're ready to help others achieve what we've been able to do. When small businesses succeed, communities succeed. That's the future we're building.' Media Contact
Yahoo
19-02-2025
- Business
- Yahoo
Metra station on Rock Island Line to get $9 million upgrade
CHICAGO (WGN) — Metra's board of directors gave their approval Wednesday to a nearly $9 million plan to completely renovate the 115th Street-Morgan Park station on the the Rock Island Line. The depot dates back to 1892. The existing shelter replaced a 125-year-old station house that was damaged by fire in May, 2017 and later demolished. It had been designated a historic landmark by the Commission on Chicago Landmarks in 1995. Renderings created by Legat Architects and shared by the transit agency indicate the work will include shelter upgrades and a new plaza and sidewalks. Metra also says the project will address stormwater management needs. The station's two parking lots will be resurfaced and get new lighting. IHC Construction Companies of Elgin was awarded the $8.69 million contract. The firm has committed to meeting Metra's goal of spending 25% of the contract total using firms that are a part of the Illinois Department of Transportation's Disadvantaged Business Enterprise program. Its chosen subcontractors include Araiza Corporation, Brandenburger Plumbing, Inc., EOS Mechanical, Inc., Pinto Construction Group, Inc., and Sanchez Paving Company, according to a release from Metra. Work at the station is expected to begin later this year. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Yahoo
13-02-2025
- Business
- Yahoo
MDTA awards $60M in construction, inspection contracts for Key Bridge rebuild project
The Maryland Transportation Authority approved three contracts, each worth $20 million, for management and inspection services contracts in the Francis Scott Key Bridge reconstruction project. The deals were awarded Wednesday to Greenman-Pederson Inc./Gannett Fleming Inc., a joint venture; Michael Baker International Inc./STV, Inc., a joint venture; and AECOM Technical Services Inc. The firms will provide various services, including constructability reviews, detailed inspections of all construction work and assistance to MDTA's compliance officers with the Disadvantaged Business Enterprise goals associated with the project. 'The awarding of the Construction Management and Inspection Services contracts is a critical next step in the Key Bridge Rebuild process,' MDTA spokesperson Bradley Tanner said. 'The services performed by the awardees are essential to ensuring compliance and progress of the rebuild.' Preconstruction work on the new bridge is already underway, and the bridge is expected to be completed by October 2028. The replacement bridge is expected to cost between $1.7 billion and $1.9 billion, according to state officials. Congress approved full funding for the project in December. Kiewit Corp., a Nebraska-based construction giant, was chosen as its designer and builder last summer. MDTA released a request for proposals on Sept. 9, 2024, inviting teams to submit technical proposals for the construction management and inspection services contract. The contracts were awarded to the three teams with the highest ranked technical proposals. The open-ended, task-order-based contracts each have a 33% DBE goal and a duration of five years. The consultant teams will ensure the process meets the needs and expectations of the design and permits, MDTA officials said. On Feb. 4, Maryland Gov. Wes Moore unveiled the design of the new Key Bridge with a new, taller cable-stayed bridge that will reconnect Curtis Bay and Dundalk. The design 'honors the architectural tradition' of the bridge, using 'the most advanced industry standards and best materials available,' as the state did when building the original Key Bridge in the 1970s, Moore said. On March 26, 2024, the Dali had just left the Port of Baltimore for an intended months-long voyage to Sri Lanka when the container ship experienced a reported power outage near the Baltimore bridge and smashed into one of its principal supporting piers around 1:30 a.m. The bridge crumbled instantly after being hit by the ship, which weighed more than 112,000 tons loaded with freight. A crew of workers repairing potholes on Interstate 695 tumbled into the frigid river below. Six highway construction workers were killed, and maritime traffic into the port ceased for weeks. Officials have pledged to hold the Dali's owner and operator accountable for the crash, suing Grace Ocean Private Ltd. and Synergy Marine Private Ltd. amid an investigation by the National Transportation Safety Board. Initiatives in support of the rebuild project span across the region, with the Community College of Baltimore County launching a new welding program at its Dundalk campus that will help students find job opportunities working on the Key Bridge project and other construction sites. The college currently partners with Earlbeck Gases and Technologies at an off-campus facility that taught 125 students in 2024. Construction will begin on the Dundalk campus this summer with plans to enroll an additional 100 to 125 students per year beginning in the fall of 2026, according to Jay Bouis, assistant dean for Applied Tech and Logistics at CCBC. According to the American Welding Society, there is a growing demand for welders due to an aging workforce, with nearly 45 percent of current welders being over the age of 45. 'The Key Bridge is one of the things that is causing the college to take a hard look at what we are offering and how we can better meet the needs of the community now and in the future,' Bouis said. Have a news tip? Contact Todd Karpovich at tkarpovich@ or on X as @ToddKarpovich.
