1. 235 Peachtree Street, NE Suite 400
Atlanta, GA Phone: (404)
Fax: (404)
December 11, 2017

2. Study Team Griffin & Strong, P.C. Project Team Fuse, Inc.
Midwest Litigation Services

3. TECHNICAL APPROACH Policy and Procurement Process Review
Collecting and Cleaning Data
Relevant Market Analysis
Legal Analysis
Utilization Analysis
Availability Analysis
Private Sector Analysis
Disparity Analysis
Anecdotal Evidence Collection and Analysis
Final Report with Recommendations

4. RELEVANT GEOGRAPHIC MARKET
U.S.
8 Surrounding States
State of Missouri
St. Louis MSA
ConOguous CounOes
St. Louis County

5. RELEVANT GEOGRAPHIC MARKET
Construction - St. Louis County
Goods-
St. Louis MSA, State of Missouri & State
of Kansas
A&E -
St. Louis County & Contiguous Counties
Other Professional Services -
St. Louis MSA & State of Missouri
Other Services - St.
Louis County & Contiguous Counties
*By Award Dollars

6. AWARDS THRESHOLDS (FY12 -15)
All Contracts
Award Threshold
Number of
Awards
Percent of
Dollars
Under 5,000
53,123
87.72%
$39,266,602
5,000 to 10,000
2,657
4.39%
$18,493,855
10,001 to 50,0000
2,985
4.93%
$66,100,931
50,001 to 100,000
750
1.24%
$52,302,380
100,001 to 250,000
584
0.96%
$91,650,067
250,001 to 500,000
201
0.33%
$68,467,429
500,001 to 750,000 68
0.11%
$41,943,445
750,001 to 1,000,000 51
0.08%
$44,445,133
1,000,001 to 1,500,000 45
0.07%
$54,842,669
1,500,001 to 2,000,000 29
0.05%
$49,675,699
2,000,001 to 2,500,000 20
0.03%
$45,404,836
2,500,001 to 5,000,000 34
0.06%
$121,752,759
Over 5,000,000 14
0.02%
$176,709,447
Total
60,561
100.00%
$871,055,248
Griffin & Strong, P.C. 2017
Average: $14,380
Median: $360

7. UNUTILIZED CAPACITY
St. Louis County Disparity Study Unutilized Capacity by Ethnicity
Race/Ethnicity
Highest Award
# of Awards at this Level by the County
% Surveyed with Revenues in Excess of the Highest Award
(Unutilized capacity)
Category of next highest awards
African American
$921,597 1
25.01%
$1,000,000 or more
Asian American
$376,198
66.67%
$500,000 or more
Hispanic American
$850,000
43.49%
Native American
$19,511
100.00%
0-$100,000
Women
$2,570,195 2
38.01%
$2,500,000 or more
Non-Service Disabled Veteran
$14,100
100%
Service-Disabled Veteran
$12,000
Non-MWBE
Over $5,000,000 14 0%
Griffin & Strong, P.C. 2017

8. AVAILABILITY/UTILIZATION (PRIME)
Construction (FY12-15)
African American
Asian American
Hispanic American
Native American
Woman
Unident. MWBE
Total MWBE
Non MWBE
Utilized
0.11%
0.00%
0.09%
0.20%
99.80%
Available
20.17%
0.74%
1.72%
0.25%
9.47%
1.35%
33.70%
66.30%

9. AVAILABILITY/UTILIZATION (PRIME)
A&E (FY12-15)
African American
Asian American
Hispanic American
Native American
Woman
Unident. MWBE
Total MWBE
Non MWBE
Utilized
4.32%
0.12%
0.00%
5.51%
9.95%
90.05%
Available
9.07%
2.83%
0.85%
15.30%
0.57%
31.44%
68.56%

10. AVAILABILITY/UTILIZATION (PRIME)
Other Professional Services (FY12-15)
African American
Asian American
Hispanic American
Native American
Woman
Unident. MWBE
Total MWBE
Non MWBE
Utilized
0.07%
0.03%
0.00%
0.42%
0.52%
99.48%
Available
12.28%
2.21%
1.50%
0.71%
12.42%
3.35%
32.48%
67.52%

11. AVAILABILITY/UTILIZATION (PRIME)
Other Services (FY12-15)
African American
Asian American
Hispanic American
Native American
Woman
Unident. MWBE
Total MWBE
Non MWBE
Utilized
3.39%
0.11%
0.00%
1.42%
0.13%
5.05%
94.95%
Available
9.63%
1.22%
0.69%
0.30%
9.59%
2.17%
23.60%
76.40%

12. AVAILABILITY/UTILIZATION (PRIME)
Goods (FY12-15)
African American
Asian American
Hispanic American
Native American
Woman
Unident. MWBE
Total MWBE
Non MWBE
Utilized
4.33%
0.39%
0.01%
1.35%
0.09%
6.17%
93.83%
Available
6.59%
1.10%
0.87%
1.00%
13.94%
1.06%
24.56%
75.44%

13. AVAILABILITY/UTILIZATION (SUBCONTRACTORS)
Construction (FY12-15)
African American
Asian American
Hispanic American
Native American
Woman
Unident. MWBE
Total MWBE
Non MWBE
Utilized
0.00%
19.81%
80.19%
Available
20.17%
0.74%
1.72%
0.25%
9.47%
1.35%
33.70%
66.30%

14. AVAILABILITY/UTILIZATION (PRIME)
VOB/SDVOB by Other Services Dollars (FY12-15)
Non Service Disabled Veteran
Service Disabled Veteran
Total Veteran
Non-Veteran
Utilized
0.02%
0.00%
99.98%
Available
2.74%
0.72%
3.46%
96.54%

15. AVAILABILITY/UTILIZATION (PRIME)
VOB/SDVOB by Goods (FY12-15)
Non Service Disabled Veteran
Service Disabled Veteran
Total Veteran
Non-Veteran
Utilized
0.00%
100.00%
Available
3.69%
1.10%
4.79%
95.21%

16. AVAILABILITY/UTILIZATION (SUBCONTRACTORS)
VOB/SDVOB in Construction (FY12-15)
Non Service Disabled Veteran
Service Disabled Veteran
Total Veteran
Non-Veteran
Utilized
0.62%
0.00%
99.38%
Available
1.48%
1.11%
2.58%
97.42%

17. SUMMARY OF DISPARITY ANALYSIS
Underutilization of MWBEs in Prime Contracting
Construction
A & E
Other Professional Services
Other Services
Goods
African American
Asian American
Hispanic American
Native American
Woman

18. SUMMARY OF DISPARITY ANALYSIS
Underutilization of MWBEs in Construction Subcontracting
Construction
African American
Asian American
Hispanic American
Native American
Woman

19. SUMMARY OF DISPARITY ANALYSIS
Underutilization of VOB/SDVOB in Prime Contracting
Construction
A & E
Other Professional Services
Other Services
Goods
Non-Service Disabled Veteran
Service
Disabled Veteran
All Veterans

20. SUMMARY OF DISPARITY ANALYSIS
Underutilization of VOB/SDVOB in Subcontracting
Construction
A & E
Other Professional Services
Other Services
Goods
Non-Service Disabled Veteran
Service Disabled Veteran
All Veterans

21. PRIVATE SECTOR ANALYSIS
The Private Sector Analysis indicated…
There IS an explicit link between MWBE/VOB/SDVOB status and public contracting outcomes.
 Being an MWBE, in the County IS associated with lower firm revenue, which impacts their capacity to compete.
 Except for Hispanic American and Biracial/Multiracial owned firms, MWBE/VOB/SDVOB status has NO statistically significant effects on entering the market as a new firm.
 Except for Hispanic American, Veterans, and Women, MWBE/VOB SDVOB firms ARE NOT less likely to submit prime bids.*
 African American, Hispanic American, Native Americans, and Disabled Veterans were LESS LIKELY to have served as prime contractors on St. Louis projects. But in the location of St. Louis County Asian American, Hispanic American, Biracial/Multiracial, and Disabled owned firms were LESS LIKELY to have served as prime contractors.
 African American, Hispanic American, Biracial/Multiracial, Disabled Veterans, Veterans, and Women are LESS LIKELY to have served as subcontractors on St. Louis County projects and except for Veterans, the same is true in the location of St. Louis County.
*Higher and statistically significant odds for Native American firms and lower but not statistically significant for Hispanics, Women and Veterans.

22. ANECDOTAL ANALYSIS Findings
  Certification is “limiting” in the amount of work you receive. Difficult to move beyond subcontracting.
  A strong desire for outreach from the County to make them aware of upcoming opportunities.
  Many do not believe the St. Louis County marketplace is supportive of MWBE development.
  Non-Minority firms believe Minority firms are unqualified and costly to do business with, many find ways around participation in goals programs.
  Fronts, Pass-Throughs and Informal Networks limit opportunity.
  Union affiliation is a requirement to compete for contracts.

23. ANECDOTAL ANALYSIS Findings Cont. Issues with slow paying vendors.
  Double standards in work performance on County job sites.
  Unsavory work conditions.
  Concerns about workforce.
  Concerns about the goal-setting process.
  Certification and Registration limitations.
  Tension between established and emerging minority groups

24. RECOMMENDATIONS 3. Robust Certification Review
1. Allocation of Resources
2. Annual Goals in Subcontracting
4. Small Business Reserve Program
5. Strengthen Forecasting
6. Supportive Services
8. Small Business Financial Assistance Program
9. Modify Restrictive Policies
and Streamline Ordinances
7. Prompt Pay Ordinance

25. Recommendation #1 – Allocate Resources, Including Three Staff Positions
¨  Already have committed resources to fill three positions: Chief Diversity Officer (CDO), Contract Compliance Officer and Contract Administrator
¨  Issue RFP for national search firm to assist in hiring CDO
¨  Submit CDO candidate suggestions to

26. Recommendation #2 – Create Annual Goals in Subcontracting With Combined MBE Contract Goal and Separate WBE Contract Goal
¨  Begin immediately tracking subcontractors for all contracts as subcontracting offers opportunities
¨  Ramp up to matching full availability within 4-5 years
¨  Focus first on hiring staff, building program and MWBE outreach as County is starting from scratch
¨  Base aspirational goals on availability
¨  Combine MBE aspirational goal
¨  Separate WBE goal because of race and gender issues

27. Recommendation #2 – Create Annual Goals in Subcontracting With Combined MBE Contract Goal and Separate WBE Contract Goal
¨  Measure availability by service area:
¤  24% MBEs and 9.5% women owned firms available for construction
¤  16% MBEs and 15% women owned firms available for architecture and engineering projects.
¨  Review subcontracting participation after one year
¨  Aggressively enforce goals

28. Recommendation #3 – Conduct Robust Certification Review Process
¨  Partner with existing MWBE certifying agencies such as Lambert St. Louis International Airport
¨  Aggressively review certifications to help reduce creation of “shell” or “front” companies

29. Recommendation #4 – Create Small Business Reserve Program to Increase Participation
¨  Designate certain contracts for bid only for businesses with revenues or employment numbers below Small Business Administration thresholds
¨  Provide opportunities for small firms to gain valuable experience and become prime contractors

30. Recommendation #5 – Strengthen Forecasting of Future Services/Goods for More Outreach Time
¨  Be more aggressive in identifying a broad range of companies able to do work and contact them well ahead of bidding deadlines.
¨  Provide mandatory pre-bid conferences

31. Recommendation #6 – Provide Supportive Services
¨  Improve current one-stop shop business assistance center dedicated to providing supportive services to businesses
¨  Dedicated telephone line already operational for business owners to call with questions and get assistance
¨  Make County’s website’s procurement section more helpful resource
¨  Listen to business owners and add additional supportive services as needed

32. Recommendation #7 – Mandate Prompt Pay Ordinance
¨  Support mandating that prime contractors pay small businesses promptly
¨  Work with St. Louis County Council to determine most effective ways to ensure prompt payment

33. Recommendation #8 – Provide Financial Assistance Program
¨  Work with banks and other financial institutions to offer financial assistance to small and minority businesses
¨  Allow companies to borrow against their invoice payment.

34. Recommendation #9 – Remove Restrictive Policies and Streamline Ordinances
¨  Review all procurement ordinances and guidelines with the goal of:
¤  Clarity
¤  Consistency
¤ Inclusion
¨  Pledge to have our personnel work with all contractors to develop innovative approaches to make access to apprenticeship programs available for all

35. For More Information, visit: www.Stlouisco.com/disparitystudy