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Home My Public Portal AboutMarch 23, 2022 Disparity Study Slide PresentationMetropolitan St. Louis Sewer District Disparity Study and Workforce Study Update March 23, 2022 2 Welcome Brian Hoelscher, PE Eleanor Mason Ramsey, Ph.D. MSD Executive Director and CEO Project Manager, Mason Tillman Associates, Ltd. Shonnah Paredes, MA, MBA Don O’Bannon MSD Manager of Diversity Programs Legal Counsel, Mason Tillman Associates, Ltd. Nicholas Negoro Survey Manager, Mason Tillman Associates, Ltd. Meeting Technology 3 •Participants are in listen-and-view mode •Q&A button to ask questions •Type your question using Q&A icon at the bottom of your screen at any time (even before the Q&A portion at the end of the presentation) •Everyone can read all questions posted and you can “upvote” questions you want answered •Contractor-specific questions will be addressed after the meeting Saad Amir, Public Affairs, MSD Disparity Study Overview 4 Eleanor Mason Ramsey, Ph.D., Project Manager, Mason Tillman Associates, Ltd. Study Purpose Determine if MWBEs were underutilized as prime contractors or subcontractors at a statistically significant level during the study period Study Period January 1, 2013 –December 31, 2017 Ethnic and Gender Groups Studied African American, Asian American, Hispanic American, Native American, Caucasian females, Non-Minority males Industries Studied Building Construction, Non-Building Construction, Engineering Professional Services, Purchases and Other Services 5 Legal Standard 6 Don O’Bannon, Legal Counsel, Mason Tillman Associates, Ltd. U.S. Supreme Court Standards 7 •Compelling interest •Strong basis in evidence •Statistically significant disparity •Rebuttable inference of discrimination •Narrowly tailored •Remedy documented discrimination •Anecdotal evidence •Bolsters statistical findings of disparity •Richmond v. CrosonState/Local •Adarand v. PenaFederal 8 City of Richmond v. J.A. Croson The Facts: •14th Amendment equal protection challenge to City of Richmond, Virginia’s MBE contracting program •City adopted a Minority Business Utilization Plan •30% subcontracting set aside for Minority Business Enterprises •Supreme Court held that City of Richmond, Virginia’s MBE contracting program violated equal protection clause of 14th Amendment 9 Narrowly Tailored Remedies •Disparity findings are race, gender, and industry-specific •Subcontract goals are limited to ethnic and gender groups in industries with disparity findings •Goals are defined by availability of the ethnic and gender groups with disparity in each industry Methodology 10 Eleanor Mason Ramsey, Ph.D., Project Manager, Mason Tillman Associates, Ltd. 11 Statistical Analysis •Utilization Analysis ➢Formal and informal prime contracts and subcontracts awarded during the study period •Availability Analysis ➢Minority, women, and non-minority contractors domiciled in St. Louis market area willing and able to perform MSD contracts •Anecdotal Analysis ➢The perceptions of willing and able businesses about doing business with MSD Study Findings 12 Prime Contract Size Distribution All Industries 13 Non-minority Minority Females Males Females Males Freq Percent Freq Percent Freq Percent Freq Percent Freq Percent $0 - $4,999 908 33.03%464 16.88%190 6.91%12 0.44%1,574 57.26% $5,000 - $24,999 168 6.11%170 6.18%8 0.29%51 1.86%397 14.44% $25,000 - $49,999 13 0.47%68 2.47%7 0.25%19 0.69%107 3.89% $50,000 - $99,999 10 0.36%77 2.80%9 0.33%20 0.73%116 4.22% $100,000 - $249,999 16 0.58%126 4.58%11 0.40%31 1.13%184 6.69% $250,000 - $499,999 11 0.40%76 2.76%3 0.11%10 0.36%100 3.64% $500,000 - $999,999 3 0.11%62 2.26%3 0.11%4 0.15%72 2.62% $1,000,000 - $2,999,999 5 0.18%102 3.71%1 0.04%7 0.25%115 4.18% $3,000,000 and greater 2 0.07%80 2.91%0 0.00%2 0.07%84 3.06% Total 1,136 41.32%1,225 44.56%232 8.44%156 5.67%2,749 100.00% Size Total Contract Amount Cumulative Total Under $25,000 71.70% Under $100,000 79.81% $100,000 and Over 20.19% Highly Used Non-Building Construction Prime Contractors Total Prime Contracts 890 Total Utilized Businesses 102 Total Expenditures $917,808,132 Non-Building Construction Prime Contracts Non-Building Construction Prime Contracts by Number of Businesses Businesses Total Dollars Percent of Dollars Number of Contracts Percent of Contracts 5 Highly Used Businesses $637,575,775 69.47%179 20.11% 97 Businesses $280,232,357 30.53%711 79.89% 102 Total Businesses $917,808,132 100.00%890 100.00% 14 Highly Used Engineering Professional Services Prime Contractors Engineering Professional Services Prime Contracts Engineering Professional Services Prime Contracts by Number of Businesses Total Prime Contracts 299 Total Utilized Businesses 55 Total Expenditures $279,103,076 Businesses Total Dollars Percent of Dollars Number of Contracts Percent of Contracts 5 Highly Used Businesses $195,845,510 70.17%13 4.35% 50 Businesses $83,257,566 29.83%286 95.65% 55 Total Businesses $279,103,076 100.00%299 100.00% 15 Highly Used Purchases and Other Services Prime Contractors Purchases and Other Services Prime Contracts Purchases and Other Services Prime Contracts by Number of Businesses Total Prime Contracts 1,553 Total Utilized Businesses 52 Total Expenditures $11,386,466 Businesses Total Dollars Percent of Dollars Number of Contracts Percent of Contracts 7 Highly Used Businesses $7,955,651 69.87%693 44.62% 45 Businesses $3,430,815 30.13%860 55.38% 52 Total Businesses $11,386,466 100.00%1,553 100.00% 16 17 MWBE Dollars Lost DOLLARS EXPECTED DOLLARS AWARDED DOLLARS LOST African Americans $24,161,830 $12,988,749 $11,173,082 Asian Americans $1,458,925 $204,550 $1,254,375 Hispanic Americans $3,176,086 $1,155,594 $2,020,493 Native Americans $909,936 $583,766 $326,170 Caucasian Females $15,114,717 $8,127,521 $6,987,195 TOTAL DOLLARS EXPECTED FOR NON-MINORITY MALES $44,888,491 or 50.04% TOTAL DOLLARS AWARDED TO NON-MINORITY MALES $66,649,805 or 74.29% TOTAL DOLLARS EXPECTED FOR MWBEs TOTAL DOLLARS AWARDED TO MWBEs TOTAL DOLLARS MWBEs LOST $23,060,180 or 25.71% STUDY PERIOD TOTAL DOLLARS AWARDED DURING STUDY PERIOD January 1, 2013, to December 31, 2017 $89,709,985 $44,821,495 or 49.96% $21,761,314 or 24.26% MWBE ETHNICITY 18 MWBE Dollars Lost by Industry African Americans $2,845,683 Asian Americans $184,678 Hispanic Americans $554,033 Native Americans $147,742 Caucasian Females $1,883,711 African Americans $8,157,339 Asian Americans $463,022 Hispanic Americans $821,495 Caucasian Females $3,504,402 African Americans $392,554 Asian Americans $615,205 Hispanic Americans $413,305 Native Americans $192,252 Caucasian Females $1,139,426 Hispanic Americans $231,660 Native Americans $106,920 Caucasian Females $459,656 PURCHASES AND OTHER SERVICES BUILDING CONSTRUCTION NON-BUILDING CONSTRUCTION ENGINEERING PROFESSIONAL SERVICES Informal Non-Building Construction Prime Contracts Under $25,000 Ethnicity Actual Dollars Utilization Availability Expected Dollars Dollars Lost Disp. Ratio P-Value African Americans $587,640 21.38%27.01%$742,350 -$154,710 0.79 < .05 * Asian Americans $0 0.00%0.73%$20,064 -$20,064 0.00 ---- Hispanic Americans $18,968 0.69%2.92%$80,254 -$61,286 0.24 < .05 * Native Americans $16,850 0.61%0.73%$20,064 -$3,214 0.84 ---- Caucasian Females $290,345 10.56%15.33%$421,334 -$130,989 0.69 < .05 * Non-minority Males $1,834,900 66.76%53.28%$1,464,637 $370,263 1.25 < .05 † TOTAL $2,748,702 100.00%100.00%$2,748,702 Minority and Females Actual Dollars Utilization Availability Expected Dollars Dollars Lost Disp. Ratio P-Value Minority Business Enterprises $623,458 22.68%31.39%$862,731 -$239,274 0.72 < .05 * Woman Business Enterprises $373,073 13.57%19.71%$541,715 -$168,642 0.69 < .05 * ( * ) denotes a statistically significant underutilization. ( † ) denotes a statistically significant overutilization. ( ** ) this study does not test statistically the overutilization of MWBEs or the underutilization of Non-minority Males. ( ---- ) denotes an underutilized group with no contracts awarded, too few contracts awarded, or too few available firms to test statistical significance. 19 Formal Non-Building Construction Prime Contracts $25,000 to $500,000 Ethnicity Actual Dollars Utilization Availability Expected Dollars Dollars Lost Disp. Ratio P-Value African Americans $8,974,483 14.15%27.01%$17,131,821 -$8,157,339 0.52 < .05 * Asian Americans $0 0.00%0.73%$463,022 -$463,022 0.00 ---- Hispanic Americans $1,030,594 1.62%2.92%$1,852,089 -$821,495 0.56 not significant Native Americans $583,766 0.92%0.73%$463,022 $120,744 1.26 ** Caucasian Females $6,219,064 9.80%15.33%$9,723,466 -$3,504,402 0.64 < .05 * Non-minority Males $46,626,134 73.50%53.28%$33,800,620 $12,825,514 1.38 < .05 † TOTAL $63,434,041 100.00%100.00%$63,434,041 Minority and Females Actual Dollars Utilization Availability Expected Dollars Dollars Lost Disp. Ratio P-Value Minority Business Enterprises $10,588,843 16.69%31.39%$19,909,955 -$9,321,112 0.53 < .05 * Woman Business Enterprises $9,710,251 15.31%19.71%$12,501,599 -$2,791,349 0.78 < .05 * ( * ) denotes a statistically significant underutilization. ( † ) denotes a statistically significant overutilization. ( ** ) this study does not test statistically the overutilization of MWBEs or the underutilization of Non-minority Males. ( ---- ) denotes an underutilized group with no contracts awarded, too few contracts awarded, or too few available firms to test statistical significance. 20 Informal Engineering Professional Services Contracts Under $25,000 Ethnicity Actual Dollars Utilization Availability Expected Dollars Dollars Lost Disp. Ratio P-Value African Americans $263,868 73.49%20.92%$75,118 $188,750 3.51 ** Asian Americans $0 0.00%6.69%$24,038 -$24,038 0.00 < .05 * Hispanic Americans $0 0.00%5.86%$21,033 -$21,033 0.00 < .05 * Native Americans $0 0.00%2.09%$7,512 -$7,512 0.00 < .05 * Caucasian Females $21,169 5.90%23.43%$84,132 -$62,963 0.25 < .05 * Non-minority Males $74,028 20.62%41.00%$147,232 -$73,204 0.50 ** TOTAL $359,065 100.00%100.00%$359,065 Minority and Females Actual Dollars Utilization Availability Expected Dollars Dollars Lost Disp. Ratio P-Value Minority Business Enterprises $263,868 73.49%35.56%$127,701 $136,167 2.07 ** Woman Business Enterprises $285,037 79.38%33.47%$120,189 $164,848 2.37 ** ( * ) denotes a statistically significant underutilization. ( † ) denotes a statistically significant overutilization. ( ** ) this study does not test statistically the overutilization of MWBEs or the underutilization of Non-minority Males. ( ---- ) denotes an underutilized group with no contracts awarded, too few contracts awarded, or too few available firms to test statistical significance. 21 Formal Engineering Professional Services Prime Contacts $25,000 to $500,000 Ethnicity Actual Dollars Utilization Availability Expected Dollars Dollars Lost Disp. Ratio P-Value African Americans $1,529,963 16.65%20.92%$1,922,517 -$392,554 0.80 not significant Asian Americans $0 0.00%6.69%$615,205 -$615,205 0.00 < .05 * Hispanic Americans $125,000 1.36%5.86%$538,305 -$413,305 0.23 not significant Native Americans $0 0.00%2.09%$192,252 -$192,252 0.00 ---- Caucasian Females $1,013,793 11.03%23.43%$2,153,219 -$1,139,426 0.47 < .05 * Non-minority Males $6,520,876 70.96%41.00%$3,768,134 $2,752,742 1.73 < .05 † TOTAL $9,189,632 100.00%100.00%$9,189,632 Minority and Females Actual Dollars Utilization Availability Expected Dollars Dollars Lost Disp. Ratio P-Value Minority Business Enterprises $1,654,963 18.01%35.56%$3,268,279 -$1,613,316 0.51 < .05 * Woman Business Enterprises $1,130,105 12.30%33.47%$3,076,027 -$1,945,922 0.37 < .05 * ( * ) denotes a statistically significant underutilization. ( † ) denotes a statistically significant overutilization. ( ** ) this study does not test statistically the overutilization of MWBEs or the underutilization of Non-minority Males. ( ---- ) denotes an underutilized group with no contracts awarded, too few contracts awarded, or too few available firms to test statistical significance. 22 Informal Purchases and Other Services Prime Contracts Under $25,000 Ethnicity Actual Dollars Utilization Availability Expected Dollars Dollars Lost Disp. Ratio P-Value African Americans $126,602 3.88%31.82%$1,038,555 -$911,953 0.12 < .05 * Asian Americans $5,100 0.16%3.57%$116,573 -$111,473 0.04 < .05 * Hispanic Americans $0 0.00%4.22%$137,768 -$137,768 0.00 < .05 * Native Americans $0 0.00%1.95%$63,585 -$63,585 0.00 < .05 * Caucasian Females $2,425,912 74.32%24.68%$805,410 $1,620,502 3.01 ** Non-minority Males $706,416 21.64%33.77%$1,102,140 -$395,724 0.64 ** TOTAL $3,264,031 100.00%100.00%$3,264,031 Minority and Females Actual Dollars Utilization Availability Expected Dollars Dollars Lost Disp. Ratio P-Value Minority Business Enterprises $131,702 4.03%41.56%$1,356,480 -$1,224,778 0.10 < .05 * Woman Business Enterprises $2,425,912 74.32%38.31%$1,250,505 $1,175,407 1.94 ** ( * ) denotes a statistically significant underutilization. ( † ) denotes a statistically significant overutilization. ( ** ) this study does not test statistically the overutilization of MWBEs or the underutilization of Non-minority Males. ( ---- ) denotes an underutilized group with no contracts awarded, too few contracts awarded, or too few available firms to test statistical significance. 23 Formal Purchases and Other Services Prime Contracts $25,000 to $500,000 Ethnicity Actual Dollars Utilization Availability Expected Dollars Dollars Lost Disp. Ratio P-Value African Americans $1,968,854 35.87%31.82%$1,746,360 $222,495 1.13 ** Asian Americans $204,550 3.73%3.57%$196,020 $8,530 1.04 ** Hispanic Americans $0 0.00%4.22%$231,660 -$231,660 0.00 ---- Native Americans $0 0.00%1.95%$106,920 -$106,920 0.00 ---- Caucasian Females $894,664 16.30%24.68%$1,354,320 -$459,656 0.66 not significant Non-minority Males $2,420,491 44.10%33.77%$1,853,280 $567,212 1.31 not significant TOTAL $5,488,559 100.00%100.00%$5,488,559 Minority and Females Actual Dollars Utilization Availability Expected Dollars Dollars Lost Disp. Ratio P-Value Minority Business Enterprises $2,173,404 39.60%41.56%$2,280,960 -$107,555 0.95 not significant Woman Business Enterprises $894,664 16.30%38.31%$2,102,760 -$1,208,096 0.43 < .05 * ( * ) denotes a statistically significant underutilization. ( † ) denotes a statistically significant overutilization. ( ** ) this study does not test statistically the overutilization of MWBEs or the underutilization of Non-minority Males. ( ---- ) denotes an underutilized group with no contracts awarded, too few contracts awarded, or too few available firms to test statistical significance. 24 Formal Prime Contract Disparity Findings Ethnicity Non-building Construction Engineering Professional Services Purchases and Other Services African Americans 🔴 Asian Americans 🔴 Hispanic Americans Native Americans Caucasian Females 🔴🔴 Minority-owned Businesses 🔴🔴 Woman-owned Businesses 🔴🔴🔴 denotes disparity🔴 25 Subcontract Disparity Findings Ethnicity Building Construction Non-building Construction Engineering Professional Services African Americans 🔴🔴 Asian Americans 🔴🔴 Hispanic Americans 🔴🔴 Native Americans 🔴 Caucasian Females 🔴🔴 Minority-owned Businesses 🔴🔴 Woman-owned Businesses 🔴🔴 denotes disparity🔴 26 Recommendations 27 28 Race and Gender-Conscious Prime Contract Remedies •Apply prime incentive credits for engineering professional services and non-engineering professional services contracts •Implement a Sheltered Market Program to increase MWSBE utilization •Implement a Mentor-Protégé Program to increase MWSBE capacity 29 Race and Gender-Conscious Subcontract Remedies •Set subcontract MWBE goals for the ethnic and gender groups with a statistically significant disparity •Building Construction –21% MBE and 10% WBE Subcontracting Goals •Non-Building Construction –10% MBE and 10% WBE Subcontracting Goals •Engineering Professional Services –18% MBE and 13% WBE Subcontracting Goals •Revise MWBE participation requirements for truckers 30 Race and Gender-Neutral Recommendations •Modify the electronic subcontract tracking system to report both MWBE and non-MWBEs subcontractors •Require listing of MWBE and non-MWBE subcontractors in all bids and proposals Workforce Overview 31 Nicholas Negoro, Survey Manager, Mason Tillman Associates, Ltd. 32 Workforce Key Findings –Construction Trades Goals 2012 Goals 2022 Goals Minorities 30.00%37.00% Females 7.00%11.00% 33 Workforce Key Findings –Construction Apprentice Percent of Hours African Americans 126,218 44.72%31.03% Asian Americans 2,512 0.89%6.00% Hispanic Americans 18,641 6.61%3.98% Native Americans 3,239 1.15%0.21% Caucasian Females 21,057 7.46%29.24% Causasian Males 110,551 39.17%29.55% TOTAL 282,217 100.00%100.00% Hours WorkedEthnicity Availability 34 Workforce Key Findings –Professional Services Percent of Hours African Americans 2,169 6.88%26.35% Asian Americans 1,602 5.08%2.26% Hispanic Americans 1,251 3.97%2.64% Native Americans 76 0.24%0.16% Caucasian Females 9,150 29.02%34.87% Causasian Males 17,277 54.80%33.73% TOTAL 31,525 100.00%100.00% Hours WorkedEthnicity Availability Goals 2012 Goals 2022 Goals Minorities 18.00%31.00% Females 32.00%37.00% 35 •Disparity Study presentation and documents will be made available on MSD’s website: www.msdprojectclear.org/disparity •MSD will conduct outreach activities to collect public input and comments through April 30, 2022 •Board Introduction (June,2022) •Board Adoption (July,2022) •MSD will begin working on implementation plans with Stakeholders upon Board approval •MSD will begin to implement program changes at the beginning of FY2024 (July 1, 2023) Shonnah Paredes, Manager of Diversity Programs, Metropolitan St. Louis Sewer District MSD Next Steps Questions 36 THANK YOU! 謝謝! ¡Gracias!Cпасибо! cảm ơn! Merci!감사합니다! धन्यवाद! Obrigado!Dziękuję Ci Grazie!مرکشتم