Supporting a commitment to equal opportunity on the Marquette Interchange Project Deputy Secretary Ruben L. Anthony, Jr. Wisconsin Department of Transportation Senator G. Spencer Coggs Wisconsin State Senate AASHTO Subcommittee on Civil Rights Milwaukee, Wisconsin September 28, 2007

Setting the stage  Wisconsin Governor Jim Doyle and DOT Secretary Frank Busalacchi lead the commitment to equal opportunity and stress its importance on the Marquette Interchange  Supporting opportunity for DBE firms and minority workers is good for the economy:  Supports the Milwaukee urban center  Builds economic capital  Creates job opportunities and better wages  Encourages competition  Unleashes knowledge and skills

Presentation overview  The $810 million Marquette Interchange Project needed to provide equal opportunities for firms and workers  WisDOT undertook a variety of strategies to provide equal opportunity to the community and is achieving great success  Research is underway to analyze the importance and effectiveness of the strategies used and to apply them to future projects  Community leaders have played a strong role to guide and support equal opportunity on the project

Project background  The Marquette Interchange, downtown Milwaukee  First opened to traffic in 1968  By the 1990’s and early 2000’s, the original interchange had obsolete design and couldn’t handle 300,000 vehicles per day  Concrete box girders and steel structures were crumbling

Past effects of freeway construction  Historically, freeway construction in Milwaukee harmed urban and ethnic areas, such as the African-American “Bronzeville” neighborhood  African-Americans and minorities were skeptical about how they would benefit from reconstruction of the Marquette Interchange

Project designed to benefit community  In 2003, Governor Jim Doyle and Transportation Secretary Frank Busalacchi announced a four-year, $810 million plan to rebuild the interchange  Community benefits:  Community sensitive design  Economic stimulus for workers and businesses

WisDOT philosophy for opportunity  WisDOT knew that equal opportunity would be paramount to this project in the heart of Milwaukee’s urban community  The philosophy to support DBE businesses, minority workers and other aspects of opportunity is “Make it, take it, respond and deliver”

Make it  Make opportunities for DBE firms to compete on the project  Stand-alone contract opportunities to allow DBE’s to bid as primes  Mandatory subcontracting to help DBE firms build skills and expertise  High subcontracting goals – 20% or higher on most contracts

Take it  Take the opportunities and market them aggressively  Bullseye marketing matches firms to the skills needed, and makes the contact  Networking events helped encourage DBE-prime contacts, mentor-protégé options, joint venture agreements  Pre-bid meetings helped DBE and prime firms to understand bidding requirement  Major use of media, newsletters and community events to market contracting opportunities

Respond  Private sector has stepped up to respond  55 newly certified DBE firms in  Primes and DBEs took advantage of networking opportunities  Mentor-protégé relationships formed  Hoffman Construction / South Star  Pheifer Brothers / D’Arteaga  Joint venture formed  K Singh  Making the Grade  Toki & Associates

Deliver  All sides have stepped up to deliver  Through July 31, DBE firms have earned $117.3 million of contracts out of $616.4 million total, a 19% share  Through July 31, DBE firms have earned $93.6 million of expended dollars out of $521.1 million total, an 18% share.  Five DBE firms earned prime contracts  More than 70 different DBE contractors and consultants have participated on the Marquette Interchange Project, with more than 80% of these firms from southeast Wisconsin

Exceeding requirements & expectations  Federal government requires a minority labor goal of 8% and an “appropriate” DBE goal  In past years, Wisconsin’s typical DBE goals and achievements have been in the 8% to 12% range  Marquette Interchange thus far has achieved 22% minority labor and 18% DBE business participation

A closer look at the numbers  A research study has been started to objectively examine the equal opportunity strategies utilized on the Marquette, particularly the bulls-eye marketing approach  Lessons learned about DBE business participation will be applied to future projects:  I-94 NS Corridor connecting Milwaukee to Chicago, expected to begin in 2009 and cost more than $1 billion  Zoo Interchange in western Milwaukee County, the state’s busiest interchange with an environmental / engineering study getting underway

DBE consultant roles  Environmental assessment, study and design phases:  $60.2 million in total contracts  $8.1 million in DBE contracts, 13.4% share  Types of work included soils engineering, roadway design, public relations, environmental testing  Construction administration work:  $34.4 million in total contracts  $7.4 million in DBE contracts, 21.5% share  Seven DBE firms earned prime contracts for construction administration  Construction administration services include administrative support, document control, engineering, construction management

DBE subcontractor roles  Construction phase:  $521.2 million in total contracts  $101.8 million in DBE contracts, 19.5% share  Many DBE firms earned work on multiple contracts  Major categories of subcontracting work  Asphalt paving – 2 firms  Concrete construction & suppliers – 6 firms  Electrical construction & suppliers – 3 firms  Painting & staining – 3 firms  Traffic control – 2 firms  Trucking – 28 firms  Other structural installation (girders, walls, sewer) – 12 firms

DBE prime contractor roles  Five DBE contractors earned prime bids  Clybourn landscaping … $74,000 contract  Security … $160,000 contract  Decorative fencing … $1.7 million contract  Advance signing … $150,000 contract  North / west leg landscaping … $308,000 contract

Most DBE firms are from SE Wisconsin  Total of 74 DBE contractors or consultants working on any phase of the Marquette Interchange Project  41 based in Milwaukee County … 55%  21 based elsewhere in SE Wisconsin … 28%  8 based elsewhere in Wisconsin … 11%  4 based out of state … 5%  Bottom line DBE firm counts  15 consultants  28 trucking firms  31 contracting / construction firms

Support from community leaders  Community leaders have stepped up to identify the needs, communicate with the community and provide oversight to goals and delivery  State Senator Spencer Coggs leads a business advisory committee that focuses on DBE business goals and achievements, capacity development and overall business support

Supporting a commitment to equal opportunity on the Marquette Interchange Project Questions / discussion time AASHTO Subcommittee on Civil Rights Milwaukee, Wisconsin September 28, 2007