1. Colette Holt & Associates Transportation Research Board 2014 Annual Meeting Disadvantaged Business Enterprise Committee Identifying Successful Practices in the FHWA DBE Program National Cooperative Highway Research Project 20-95 Colette Holt & Associates 13 January 2014

2. Colette Holt & Associates 2 Research Team  Colette Holt & Associates (certified DBE & MWBE)  Colette Holt, JD – Project Manager & Legal Counsel  Nationally recognized expert, educator & author on D/S/M/WBE issues  Conducted court-approved disparity studies & designed court- approved D/S/M/WBE programs for over 20 years  Expert for USDOJ in defense of the SBA 8(a) program  Expert for SDOTs & other agencies in defense of D/M/WBE programs  Co-authored National Academy of Sciences Transportation Research Board’s “Guidelines for Conducting a Disparity and Availability Study for the Federal DBE Program”

3. Colette Holt & Associates 3 Research Team  Colette Holt & Associates  Robert Ashby, JD – Legal &Program Analysis, Stakeholder Outreach & Community Education  Deputy General Counsel for Regulations & Enforcement for the USDOT; counseled the Department for over 37 years  Responsible for all DOT DBE regulations; advising state, local and federal officials concerning DBE certification, goal setting and other DBE issues; and serving as liaison with the Department of Justice on DBE matters  Qualified expert witness; has offered testimony in federal courts on issues related to the USDOT DBE Program

4. Colette Holt & Associates 4 Research Team  Colette Holt & Associates  Steven Pitts, Ph.D. – Economist & Statistician  Nationally recognized expert, educator & author on market issues regarding minorities for over 20 years  Associate Chair of the University of California at Berkeley’s Center for Labor Research & Education  Extensive experience using large databases, including Census Bureau files, to perform statistical analyses of labor & employment issues

5. Colette Holt & Associates 5 Research Team  Abaci Research & Consulting, LLC  Kim Stewart, MS – Quantitative &qualitative data collection  Most experienced researcher in the country on identifying, collecting & preparing data for statistical analysis specifically for Disparity Studies & D/M/WBE program analysis  Extensive experience identifying & collecting data from agencies, prime contractors & subcontractors 5

6. Colette Holt & Associates 6 Research Objectives  Identify Best Practices in the DBE Program to Facilitate  Broad participation of DBEs in SDOT contracts  Successful “graduation” from the program  Survivability outside the program  Address RFP Questions Concerning Graduates  What are the numbers & percentage of DBEs who have graduated in the last 5-10 years?  What were the industry distributions of graduates? 6

7. Colette Holt & Associates 7 Research Objectives, cont.  How many have graduated for exceeding the PNW vs. the size cap?  How many graduates appealed decertification?  What are successful graduates’ key characteristics?  What has been firms’ experiences since graduation?  What are the most important supportive services & what additional services would be helpful?s 7

8. Colette Holt & Associates 8 Research Objectives, cont.  Address RFP Questions Concerning All DBEs  What are the numbers & distribution of successful awardees by industry; size; minorities versus white females?  What are impediments & disincentives to graduate?  What are the characteristics & performance measures of successful non-graduated DBEs?  What supportive services are most important & what additional services would be helpful? 8

9. Colette Holt & Associates 9 Research Objectives, cont.  Address RFP Questions Concerning Primes  What are the most commonly subcontracted items?  Are primes aware of the SDOT’s DBE goal?  How many different DBEs are used?  How are subs selected?  What information, methods & incentives would encourage them to use new subs?  Does the use of DBEs vary by the prime’s size & industry?  What is the effect of graduation on the use of DBEs? 9

10. Colette Holt & Associates 10 RFP Recommendation Topics  Best practices to expand the participation of DBEs  Effective supportive services  Effective management practices & approaches to support program success  DBE performance measures  Effective data management practices to support programs  Further research to facilitate program improvements 10

11. Colette Holt & Associates 11 Research Plan  Survey SDOTs to Obtain:  Information about all DBEs  Distribution across industries  Information about gross receipts  Racial, ethnic & gender breakdown of DBEs  Likely DBE subcontracting industries  Average DBE’s length of time in the program 11

12. Colette Holt & Associates 12 Research Plan, cont.  Information about graduated DBEs  Number & percentage who have graduated  Basis for graduation: gross receipts &/or PNW  Number & rate of appeals  Information about supportive services  Types of services  Mentor-protégé programs  Participation rates  Effectiveness of approaches 12

13. Colette Holt & Associates 13 Research Plan, cont.  Information about successful DBEs  Graduated DBEs & still eligible firms  Entrepreneurial success factors  Industry networks  Supportive services programs  Bonding & capital access  Access to prime contract opportunities  Mentor-protégé programs  Suggestions for enhancing DBE opportunities & graduation rates 13

14. Colette Holt & Associates 14 Research Plan, cont.  Survey DBEs to Obtain:  Information about the firm  Industry  Size  Location  Years in business  Racial, ethnic & gender ownership  Work as prime, sub or both 14

15. Colette Holt & Associates 15 Research Plan, cont.  Information about graduation status  Has it graduated  NAICS codes  Basis: gross receipts or PNW  Appealed the decision  Experiences since graduation  If it still eligible, what factors impede graduation  Experiences with supportive services  Types of services  Types of service providers  Most & least helpful 15

16. Colette Holt & Associates 16 Research Plan, cont.  Program suggestions  Impediments to graduation  Impediments to success  Suggestions for SDOTs to:  Increase opportunities  Encourage primes to use DBEs, unfamiliar DBEs & graduated firms 16

17. Colette Holt & Associates 17 Research Plan, cont.  Survey Prime Contractors & Consultants to Obtain:  Information about the firm  Industry  Size  Location  Years in business  Racial, ethnic & gender ownership  Work as prime, sub or both 17

18. Colette Holt & Associates 18 Research Plan, cont.  Utilization of subcontractors  DBEs & non-DBEs  Scopes of work  Size of contracts  Criteria for subcontractor selection  Experiences with the DBE program  Awareness of SDOT’s overall goal  Utilization of graduated DBEs  Solicitation factors for DBEs, unfamiliar DBEs & graduated firms  Market forces affecting DBEs, small firms & new market entrants 18

19. Colette Holt & Associates 19 Research Plan, cont.  Survey Supportive Services Consultants to Obtain:  DBEs served  Number/year  Distribution by size, industry & years in business  Number that have graduated during last 5 years  Services offered  Types  Most utilized  Most helpful 19

20. Colette Holt & Associates 20 Research Plan, cont.  Gather Data from Disparity Studies  Summarize DBE utilization by industries & race, ethnicity & gender  Review qualitative evidence  Traits of successful DBEs  Effects of graduation  Barriers to graduation  Access to prime contracting opportunities  Barriers to using new or unfamiliar DBEs 20

21. Colette Holt & Associates 21 Research Plan, cont.  Review DBE program best practices  Management structures  Race-neutral measures  Data collection & monitoring systems  Program success measures  Gather data from other sources  TRB reports  Literature on entrepreneurial success  USDOT guidance, handbooks, etc.  Industry presentations & reports 21

22. Colette Holt & Associates 22 Research Plan, cont.  Produce Interim Report  Interview DBEs  Selected for industry, location, race, ethnicity & gender  Questions similar to surveys  Interview Prime Contractors  Selected for industry & location  Questions similar to surveys  Interview SDOT Personnel  Questions similar to surveys  Draft Preliminary & Final Reports 22

23. Colette Holt & Associates 23 Anticipated Research Results  Best Practices  Expanding the industries & disadvantaged subgroups in the DBE program  Enhancing the factors supporting DBEs’ success  Program design, structure, resources & management  Effective Business Development services  Performance measures for DBE growth & success in the program & external markets  Suggestions for Additional Research & Program Data Collection 23

24. Colette Holt & Associates 24 Implementation Plan  Identify the Specific Audience  Assess Potential Impediments to Successful Adoption  Identify Potential Leaders  Determine Activities Necessary for Successful Implementation  Develop Criteria for Measuring Progress & Success 24

25. Colette Holt & Associates 25 Research Challenges  Obtaining Data from SDOTs  Who has “graduated” & on what basis?  Who has accessed supportive services & what was the outcome?  How to determine primes’ use of “new” firms, “graduated” DBEs & make comparisons with non-DBEs?  Obtaining Data from DBEs  How to identify firms no longer in the programs?  How to create pools of firms across industries, locations, size, age, etc.? 25

26. Colette Holt & Associates 26 Research Challenges  Obtaining Data from Primes  How to increase cooperation (“what’s in it for them?”)?  How to gather data on primes’ use of “new” firms, “graduated” DBEs & comparisons with non-DBE subcontractors?  How to create pools of firms across industries, locations, size, age, etc.?  Obtaining Data from Supportive Services Providers  What have been the SDOT’s record keeping requirements?  What, if any, success rubrics have been applied? 26

27. Colette Holt & Associates 27 Colette Holt 3350 Brunell Drive Oakland, CA 94602 773.255.6844Colette.holt@mwbelaw.comwww.mwbelaw.com