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498663METROPOLITAN ST. LOUIS METROPOLITAN ST. LOUIS © 2013 Mason Tillman Associates, Ltd. Metropolitan St. Louis Sewer District Disparity StudyFebruary 2013February 2013METROPOLITAN ST. LOUIS METROPOLITAN ST. LOUIS SEWER DISTRICTSEWER DISTRICTDISPARITY STUDYDISPARITY STUDYCommunity Meeting BriefingCommunity Meeting Briefing DISCUSSION POINTSDISCUSSION POINTS• Study Objectives•Research Method© 2013 Mason Tillman Associates, Ltd. Metropolitan St. Louis Sewer District Disparity Study•Research Method• Statistical Findings• Recommendations MASON TILLMAN MASON TILLMAN ASSOCIATES ASSOCIATES Established in 1978Public Policy Research and Marketing Professionals© 2013 Mason Tillman Associates, Ltd. Metropolitan St. Louis Sewer District Disparity StudyService DivisionsBusiness Affirmative ActionCorporate CommunicationsProfessionalsAward Winning CompanyAward Winning Company DISPARITY STUDIESDISPARITY STUDIESOne Hundred and Nineteen On Time & UnchallengedOne Hundred and Nineteen On Time & Unchallenged15151515StatesStatesCountiesCounties© 2013 Mason Tillman Associates, Ltd. Metropolitan St. Louis Sewer District Disparity Study15151313SchoolsSchoolsCitiesCities2525119119DistrictsDistricts5151 DISPARITY STUDYDISPARITY STUDYDetermine If Statistical Disparity ExistsAscertain Practices Affecting Any Documented DisparityAssess Effectiveness of Race and Gender Neutral ProgramsPrepare a Legally Defensible StudyOBJECTIVESOBJECTIVES© 2013 Mason Tillman Associates, Ltd. Metropolitan St. Louis Sewer District Disparity StudyDISPARITY STUDYDISPARITY STUDYOutreach to an Ethnically Diverse CommunityIdentify All Prime and Subcontract Awards and PaymentsRecommend Best Management Practices to Eliminate BarriersCHALLENGESCHALLENGES Prime Consultant Ethnicity/GenderDISPARITY STUDYDISPARITY STUDYTEAM MEMBERSTEAM MEMBERS© 2013 Mason Tillman Associates, Ltd. Metropolitan St. Louis Sewer District Disparity StudyMason Tillman Associates, Ltd. MWBELocal Subconsultants Ethnicity/GenderADE Consulting Services, Inc.Davis Associates, Certified Public AccountantsProject Controls Group, Inc.MBEMWBEMBE CROSON STANDARDCROSON STANDARD• Compelling Purpose Evidence of Systemic Racial Discrimination•Narrowly TailoredRichmond vs.Richmond vs.CrosonCrosonState/LocalState/Local© 2013 Mason Tillman Associates, Ltd. Metropolitan St. Louis Sewer District Disparity Study•Narrowly TailoredRemedy Documented Discrimination• Update PeriodicallyAssess Effectiveness of RemedyAdarand vs.Adarand vs.PenaPenaFederalFederalCrosonCroson NARROWLY TAILORED NARROWLY TAILORED REMEDYREMEDY•Disparity Findings are Ethnic, © 2013 Mason Tillman Associates, Ltd. Metropolitan St. Louis Sewer District Disparity Study•Disparity Findings are Ethnic, Gender, and Industry Specific•Race and Gender Specific Goals are Limited to Disparity Findings•Goals are Defined by Availability KEY DISPARITY STUDY KEY DISPARITY STUDY ELEMENTSELEMENTS•Collection of Prime and Subcontracts•Enumeration of Willing and Able © 2013 Mason Tillman Associates, Ltd. Metropolitan St. Louis Sewer District Disparity Study•Enumeration of Willing and Able Businesses •Analysis of Prime and Sub Utilization•Anecdotal Accounts of Businesses •Recommendations to Eliminate Barriers to Contracting INDUSTRY AND STUDY INDUSTRY AND STUDY PERIODPERIODJuly 1, 2007 – January 31, 2012Non-BuildingSewer Construction© 2013 Mason Tillman Associates, Ltd. Metropolitan St. Louis Sewer District Disparity StudySewer ConstructionEngineering Professional ServicesBuilding ConstructionNon-Engineering Professional ServicesSupplies & Contractual Services Prime Contract Prime Contract Utilization Utilization Prime Contract Prime Contract Utilization Utilization © 2013 Mason Tillman Associates, Ltd. Metropolitan St. Louis Sewer District Disparity StudyPrime Contract Prime Contract Utilization Utilization AnalysisAnalysisPrime Contract Prime Contract Utilization Utilization AnalysisAnalysis CONTRACTS STUDIEDCONTRACTS STUDIEDJuly 1, 2007 July 1, 2007 –– January 31, 2012January 31, 2012IndustryTotal Prime ContractsTotal Prime PaymentsBuilding Construction 27 265,714,726Non-Building © 2013 Mason Tillman Associates, Ltd. Metropolitan St. Louis Sewer District Disparity StudyNon-Building Construction772 288,669,563Engineering Professional Services186 90,658,256Non-Engineering Professional Services337 59,704,115Supplies and Contractual Services39,546 210,142,214TOTAL 40,868 $914,888,875 TOTAL PRIME PAYMENTSTOTAL PRIME PAYMENTSJuly 1, 2007 July 1, 2007 –– January 31, 2012January 31, 2012Market Area: St. Louis and St. Louis CountyMarket Area: St. Louis and St. Louis County© 2013 Mason Tillman Associates, Ltd. Metropolitan St. Louis Sewer District Disparity StudyTotal DollarsWithin Market Area$655,712,590.5271.67%Outside Market Area$259,176,284.1628.33% PRIME CONTRACTS PRIME CONTRACTS All IndustriesAll IndustriesIndustryUnder $25,000Under $100,000Under $500,000$500,000 and OverBuilding Construction 7.41% 14.81% 51.85% 48.15%© 2013 Mason Tillman Associates, Ltd. Metropolitan St. Louis Sewer District Disparity StudyNon-Building Construction 60.23% 74.61% 87.69% 12.31%Engineering Professional Services32.26% 45.16% 89.25% 10.75%Non-Engineering Professional Services73.00% 80.42% 92.28% 7.72%Supplies and Contractual Services97.89% 99.29% 99.87% 0.13% DISTRIBUTION OF PRIME DISTRIBUTION OF PRIME CONTRACT DOLLARSCONTRACT DOLLARSTotal Contracts 40,868Number of Utilized Vendors 2,068Total Expenditures $914,888,875© 2013 Mason Tillman Associates, Ltd. Metropolitan St. Louis Sewer District Disparity StudyDollarsPercent of DollarsNumber of ContractsPercent ofContracts9 Vendors Received$461,772,515 50% 87 0.21%14 Vendors Received$556,491,357 61% 139 0.34%23 Vendors Received$648,397,408 71% 666 1.63%2,045 Vendors Received$266,491,466 29% 40,202 98.37%2,068 Vendors Received$914,888,875 100% 40,868 100.00% PRIME UTILIZATIONPRIME UTILIZATIONEthnicityTotal DollarsPercent of DollarsTotal ContractsNon-Minority Males$752,293,19382.23%32,713© 2013 Mason Tillman Associates, Ltd. Metropolitan St. Louis Sewer District Disparity StudyNon-Minority Males$752,293,19382.23%32,713African Americans $33,633,461 3.68% 3,099Asian Americans $621,749 0.07% 20Caucasian Females $124,227,208 13.58% 4,931Hispanic Americans $4,113,264 0.45% 105Native Americans $0 0% 0TOTAL$914,888,875 100% 40,868 LOCAL BUSINESS PROFILELOCAL BUSINESS PROFILEBusinessesCity ofSt. LouisSt. LouisCountyState of MissouriUnitedStatesFewer Than 5 Employees48.5 % 50.8 % 54.3 % 54.6 %Fewer Than 10 Employees66.1 %69.1 %72.9 %73.5 %© 2013 Mason Tillman Associates, Ltd. Metropolitan St. Louis Sewer District Disparity StudyU.S Census: County Business Patterns 2007 U.S Census: Survey of Business Owners 2002Fewer Than 10 Employees66.1 %69.1 %72.9 %73.5 %Fewer Than 20 Employees80.2 % 83.0 % 86.0 % 86.3 %More Than 100 Employees3.9 % 3.0 % 2.2 % 2.3 %Minority-owned Businesses27.9 % 15.5 % 8.5 % 21.2 %Woman-owned Businesses28.3 % 27.3 % 26.1 % 28.8 % SubcontractSubcontractAnalysisAnalysisSubcontractSubcontractAnalysisAnalysis© 2013 Mason Tillman Associates, Ltd. Metropolitan St. Louis Sewer District Disparity StudySubcontractSubcontractAnalysisAnalysisSubcontractSubcontractAnalysisAnalysis SUBCONTRACT SUBCONTRACT UTILIZATION BY ETHNICITYUTILIZATION BY ETHNICITYAll IndustriesAll IndustriesEthnicityTotal DollarsPercent of DollarsTotal Subcontracts© 2013 Mason Tillman Associates, Ltd. Metropolitan St. Louis Sewer District Disparity StudyDollarsDollarsSubcontractsNon-Minority Males $108,230,105 75.63%1,058African Americans $14,509,232 10.14%184Asian Americans $482,553 0.34%5Caucasian Females $19,376,327 13.54%238Hispanic Americans $388,813 0.27%3Native Americans $112,443 0.08%1 DISTRIBUTION OF DISTRIBUTION OF SUBCONTRACT DOLLARSSUBCONTRACT DOLLARSEngineering Professional ServicesEngineering Professional ServicesTotal Contracts 46Number of Utilized Vendors 20Total Expenditures$1,823,818© 2013 Mason Tillman Associates, Ltd. Metropolitan St. Louis Sewer District Disparity StudyDollarsPercent of DollarsNumber of ContractsPercent ofContracts4 Vendors Received$1,088,421 60% 22 47.83%5 Vendors Received$1,260,661 69% 29 63.04%Total Expenditures$1,823,8186 Vendors Received$1,408,361 77% 30 65.22%14 Vendors Received $415,456 23% 16 34.78%20 Vendors Received$1,823,818 100% 46 100.00% HIGHLY USED HIGHLY USED SUBCONTRACTORSSUBCONTRACTORSEngineering Professional ServicesEngineering Professional ServicesEthnicity & GenderTotal AwardDollarsPercent of $1,408,361Total SubcontractsPercent of 30 ContractsTop 6 VendorsTop 6 Vendors© 2013 Mason Tillman Associates, Ltd. Metropolitan St. Louis Sewer District Disparity StudyEthnicity & GenderTotal AwardDollarsPercent of $1,408,361Total SubcontractsPercent of 30 ContractsNon-Minority Males $0 0.00% 0 0.00%African Americans $628,351 44.62% 18 60.00%Asian Americans $371,690 26.39% 5 16.67%Caucasian Females $260,620 18.51% 6 20.00%Hispanic Americans $147,700 10.49% 1 3.33%Native Americans $0 0.00% 0 0.00%TOTAL $1,408,361 100% 30 100% DISTRIBUTION OF DISTRIBUTION OF SUBCONTRACT DOLLARSSUBCONTRACT DOLLARSNonNon--Engineering Professional ServicesEngineering Professional ServicesTotal Contracts 16Number of Utilized Vendors 9Total Expenditures$1,003,115© 2013 Mason Tillman Associates, Ltd. Metropolitan St. Louis Sewer District Disparity StudyDollarsPercent of DollarsNumber of ContractsPercent ofContracts1 Vendors Received$377,123 38% 3 18.75%2 Vendors Received$687,534 69% 7 43.75%Total Expenditures$1,003,1153 Vendors Received$909,108 91% 9 56.25%6 Vendors Received$94,007 9% 7 43.75%9 Vendors Received$1,003,115 100% 16 100.00% HIGHLY USED HIGHLY USED SUBCONTRACTORSSUBCONTRACTORSNonNon--Engineering Professional ServicesEngineering Professional ServicesEthnicity & GenderTotal AwardDollarsPercent of $909,108Total SubcontractsPercent of 9 ContractsTop 3 VendorsTop 3 Vendors© 2013 Mason Tillman Associates, Ltd. Metropolitan St. Louis Sewer District Disparity StudyEthnicity & GenderTotal AwardDollarsPercent of $909,108Total SubcontractsPercent of 9 ContractsNon-Minority Males $0 0.00% 0 0.00%African Americans $531,985 58.52% 6 66.67%Asian Americans $0 0.00% 0 0.00%Caucasian Females $377,123 41.48% 3 33.33%Hispanic Americans $0 0.00% 0 0.00%Native Americans $0 0.00% 0 0.00%TOTAL $909,108 100% 9 100% SUBCONTRACT SUBCONTRACT UTILIZATION BY ETHNICITYUTILIZATION BY ETHNICITYBuilding ConstructionBuilding ConstructionEthnicityTotal DollarsPercent of DollarsTotal Subcontracts© 2013 Mason Tillman Associates, Ltd. Metropolitan St. Louis Sewer District Disparity StudyDollarsDollarsSubcontractsNon-Minority Males $77,177,024 79.47%307African Americans $7,805,102 8.04%33Asian Americans $0 0.00%0Caucasian Females $12,000,905 12.37%48Hispanic Americans $0 0.00%0Native Americans $112,443 0.12%1 SUBCONTRACT SUBCONTRACT UTILIZATION BY ETHNICITYUTILIZATION BY ETHNICITYNonNon--Building ConstructionBuilding ConstructionEthnicityTotal DollarsPercent of DollarsTotal Subcontracts© 2013 Mason Tillman Associates, Ltd. Metropolitan St. Louis Sewer District Disparity StudyDollarsDollarsSubcontractsNon-Minority Males $30,691,762 72.41%740African Americans $5,073,322 11.97%117Asian Americans $0 0.00%0Caucasian Females $6,377,218 15.05%172Hispanic Americans $241,113 0.57%2Native Americans $0 0.00%0 SUBCONTRACT SUBCONTRACT UTILIZATION BY ETHNICITYUTILIZATION BY ETHNICITYEngineering Professional ServicesEngineering Professional ServicesEthnicityTotal DollarsPercent of DollarsTotal Subcontracts© 2013 Mason Tillman Associates, Ltd. Metropolitan St. Louis Sewer District Disparity StudyDollarsDollarsSubcontractsNon-Minority Males $400,228 15.98%9African Americans $935,115 37.33%26Asian Americans $482,553 19.26%5Caucasian Females $539,522 21.54%10Hispanic Americans $147,700 5.90%1Native Americans $0 0.00%0 SUBCONTRACT SUBCONTRACT UTILIZATION BY ETHNICITYUTILIZATION BY ETHNICITYNonNon--Engineering Professional ServicesEngineering Professional ServicesEthnicityTotal DollarsPercent of DollarsTotal Subcontracts© 2013 Mason Tillman Associates, Ltd. Metropolitan St. Louis Sewer District Disparity StudyDollarsDollarsSubcontractsNon-Minority Males $21,091 1.79%2African Americans $695,693 59.18%8Asian Americans $0 0.00%0Caucasian Females $458,681 39.02%8Hispanic Americans $0 0.00%0Native Americans $0 0.00%0 DisparityDisparityAnalysisAnalysisDisparityDisparityAnalysisAnalysis© 2013 Mason Tillman Associates, Ltd. Metropolitan St. Louis Sewer District Disparity StudyDisparityDisparityAnalysisAnalysisDisparityDisparityAnalysisAnalysis PRIME CONTRACTPRIME CONTRACTDISPARITY FINDINGSDISPARITY FINDINGSUnder $500,000 Under $500,000 Ethnic/GenderGroupsBuilding Construction Non-Building Construction Engineering Professional ServicesNon-Engineering Professional ServicesContractualand SuppliesAvailability PercentageUtilizationPercentageAvailability PercentageUtilizationPercentageAvailability PercentageUtilizationPercentageAvailability PercentageUtilizationPercentageAvailability PercentageUtilizationPercentage© 2013 Mason Tillman Associates, Ltd. Metropolitan St. Louis Sewer District Disparity StudyRed = Statistically Significant UnderutilizationAfricanAmericans23.86% 11.38%14.75% 13.10%15.43% 10.63%22.58% 0.06% 6.65% 4.26%Asian Americans1.14% 0.00%1.64% 0.11% 4.94% 1.59% 4.15% 0.00% 1.08% 0.19%Hispanic Americans1.89% 0.00% 0.82% 0.00% 3.09% 3.39%3.23% 0.00%0.87% 1.54%Native Americans0.38% 0.00% 0.00% 0.00% 0.62% 0.00% 0.46% 0.00% 0.14% 0.00%MBEs27.27% 11.38%17.21% 13.22% 24.07% 15.62% 30.41% 0.06% 8.74% 5.99%WBEs10.98% 30.23% 9.84% 17.62%14.81% 7.50% 23.96% 0.00% 9.90% 7.95%M/WBEs38.26% 41.61% 27.05% 30.83%38.89% 23.11% 54.38% 0.06% 18.64% 13.94% SUBCONTRACTSUBCONTRACTDISPARITY FINDINGSDISPARITY FINDINGSMay 1, 2010 May 1, 2010 –– January 31, 2012January 31, 2012Ethnic/GenderGroupsBuilding ConstructionNon-Building ConstructionEngineering Professional ServicesNon-Engineering Professional ServicesAvailability PercentageUtilizationPercentageAvailability PercentageUtilizationPercentageAvailability PercentageUtilizationPercentageAvailability PercentageUtilizationPercentage© 2013 Mason Tillman Associates, Ltd. Metropolitan St. Louis Sewer District Disparity StudyRed = Statistically Significant UnderutilizationAfricanAmericans28.50% 8.04% 17.30% 11.97%17.99% 37.33% 26.44% 59.18%Asian Americans0.72% 0.00% 0.63% 0.00% 5.29% 19.26% 4.98% 0.00%Hispanic Americans1.21% 0.00%0.63% 0.57% 2.65% 5.90% 2.68% 0.00%Native Americans0.24% 0.12% 0.00% 0.00% 1.06% 0.00% 0.38% 0.00%MBEs30.68% 8.16% 18.55% 12.54%26.98% 62.49% 34.48% 59.18%WBEs10.87% 12.37% 11.95% 15.05% 19.05% 21.54% 27.20% 39.02%M/WBEs41.55% 20.53%30.50% 27.59% 46.03% 84.02% 61.69% 98.21% ProgramProgramRecommendationsRecommendationsProgramProgramRecommendationsRecommendations© 2013 Mason Tillman Associates, Ltd. Metropolitan St. Louis Sewer District Disparity StudyProgramProgramRecommendationsRecommendationsProgramProgramRecommendationsRecommendations PRIME CONTRACTS:RACE AND GENDER RACE AND GENDER CONSCIOUS REMEDIESCONSCIOUS REMEDIES© 2013 Mason Tillman Associates, Ltd. Metropolitan St. Louis Sewer District Disparity StudyPRIME CONTRACTS:• Establish Contract IncentivesEngineering Professional Services ContractsNon-Engineering Professional Services ContractsTen Percent Evaluation Points RACE AND GENDER RACE AND GENDER CONSCIOUS REMEDIESCONSCIOUS REMEDIESSUBCONTRACTS•Set Overall MBE Subcontracting Goals© 2013 Mason Tillman Associates, Ltd. Metropolitan St. Louis Sewer District Disparity Study•Set Overall MBE Subcontracting Goals• Limit Goals to Groups with Disparity• Enforce Commerically Useful Function• Conduct Goal Attainment Reviews• Track All Utilized Subcontractors• Enforce Substitution Standards • Pay Mobilization to Subcontractors•Institute a Payment Verification ProgramRACE AND GENDER RACE AND GENDER NEUTRAL REMEDIESNEUTRAL REMEDIES© 2013 Mason Tillman Associates, Ltd. Metropolitan St. Louis Sewer District Disparity Study•Institute a Payment Verification Program• Develop an Expedited Payment Program• Publish Prime Contractor Payments• Expand Unbundling Policy• Promote Diversity in Distributorships • Advertise Small Contracts Bond Provisions • Review the Pre-qualification Application for Construction, Architectural, Engineering and RACE AND GENDER RACE AND GENDER NEUTRAL REMEDIESNEUTRAL REMEDIES© 2013 Mason Tillman Associates, Ltd. Metropolitan St. Louis Sewer District Disparity StudyConstruction, Architectural, Engineering and Surveying Contracts • Publish Pre-qualification Evaluation Standards• Support a Training Program to Pre-qualify Businesses for Sewer Construction Work •Advertise CIRP Project Opportunities on WebsiteRACE AND GENDER RACE AND GENDER NEUTRAL REMEDIESNEUTRAL REMEDIES© 2013 Mason Tillman Associates, Ltd. Metropolitan St. Louis Sewer District Disparity Study•Advertise CIRP Project Opportunities on Website• Publicize the Entire Scope of MSD’’’’s Diversity Program on Website• Post Bidding History on Contracts over $50,000 • Optimize Website for Mobile Devices• Set Up a Twitter Feed • Enhance MWBE Outreach Program•Expand MWBE Diversity Program StaffRACE AND GENDER RACE AND GENDER NEUTRAL REMEDIESNEUTRAL REMEDIES© 2013 Mason Tillman Associates, Ltd. Metropolitan St. Louis Sewer District Disparity Study•Expand MWBE Diversity Program Staff• Appoint MWBE Ombudsperson• Expand Trade Association Partnerships Workforce Workforce StudyStudyWorkforce Workforce StudyStudy© 2013 Mason Tillman Associates, Ltd. Metropolitan St. Louis Sewer District Disparity StudyWorkforce Workforce StudyStudyWorkforce Workforce StudyStudy LEGAL STANDARDSLEGAL STANDARDSExecutive Order 11246Executive Order 1124641 CFR Part 41 CFR Part 6060--4.64.6ConstructionConstruction• Numerical Goals for Minority and Female UtilizationBased on Appropriate Workforce, Demographic and Relevant DataNot Intended to Create Set-asidesMeasures the Effectiveness of © 2013 Mason Tillman Associates, Ltd. Metropolitan St. Louis Sewer District Disparity Study6060--4.64.641 CFR Part 41 CFR Part 6060--2.112.11Professional Professional ServicesServicesMeasures the Effectiveness of Discrimination Prevention Efforts •Numerical Goals Based on Minority and Female AvailabilityUse Best Available DataNot a Quota, Does Not Permit Hiring Unqualified PersonsGoals Established to Achieve Parity with Availability METHODOLOGYMETHODOLOGY• Availability AnalysisMSD Identified Relevant TradesData Sources – 2010 U.S. Census Bureau American Community Survey Civilian Labor ForceResidents in Construction IndustryResidents with H.S. DiplomaConstructionConstruction© 2013 Mason Tillman Associates, Ltd. Metropolitan St. Louis Sewer District Disparity StudyResidents with H.S. Diploma•Availability AnalysisMSD Identified Relevant Job CategoriesData Sources – 2010 U.S. Census Bureau American Community Survey EEO Job Group TabulationOfficials and ManagersTechniciansProfessionalsProfessional Professional ServicesServices EMPLOYMENT GOALSEMPLOYMENT GOALSConstructionConstructionMinority 30%Female 7%Local Resident+30%Apprentice*40%© 2013 Mason Tillman Associates, Ltd. Metropolitan St. Louis Sewer District Disparity StudyProfessional Professional ServicesServicesApprentice40%(+) The Local Resident construction goal is race and gender-neutral, applies to all residents of the service area.(* )The Apprentice goal only applies to contractors who utilize apprentice labor.Minority++18%Female**32%(++) The Minority professional service goal includes current minority males and females workforce in local office.(** )The Female professional service goal only applies to non-minority current females workforce in local office. IMPLEMENTATIONIMPLEMENTATIONLocal, Minority and Female UtilizationAs A Percent of the Total Project WorkHours Performed on the Contract ShallEqualorExceedtheGoalsConstructionConstruction© 2013 Mason Tillman Associates, Ltd. Metropolitan St. Louis Sewer District Disparity StudyEqualorExceedtheGoalsEvaluation Points Shall Be AwardedBased on the Level of Minority andFemale Utilization in the Prime’s LocalOffice at Time of Award or theWorkforce of a Sub consultantProfessional Professional ServicesServices THANK YOU!© 2013 Mason Tillman Associates, Ltd. Metropolitan St. Louis Sewer District Disparity StudyTHANK YOU!(510) 835(510) 835--90129012Email:Email:masontil@mtaltd.commasontil@mtaltd.comWeb page: www.mtaltd.comWeb page: www.mtaltd.com