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ODOT Releases Disparity Study
ODOT has recently released its much anticipated disparity study. Conducted by the consulting firms of BBC Research & Consulting and Exstare Federal Services Group, LLC, the study is intended to provide ODOT with insight on their administration of the federal Disadvantaged Business Enterprise (DBE) Program. A separate study was, also, prepared for the Ohio Turnpike Commission. Information derived from the study is summarizes in five parts. These include:
• Local marketplace conditions;
• Utilization and disparity analysis results;
• Overall DBE goal;
• Whether the DBE goal can be achieved through neutral means; and
• Measures to better implement the program.
The 500-plus page study includes a twelve page Executive Summary. The report, in its entirety, can be viewed by clicking on the following ODOT link.
As documented in the report, the study did find quantitative and qualitative evidence of disparities for minority- and woman-owned businesses overall and for specific groups. Minority/Woman, Black American, Asian Pacific American, and Hispanic American firms were found to be under-utilized when judged by the disparity indices that were calculated. White Woman, Subcontinent Asian American, and Native American firms were found to be over-utilized by these same indices. The report contains suggestions on how ODOT may modify its practices to achieve parity in providing work opportunities for each of the groups.
On the heels of releasing the Disparity Study, ODOT submitted a waiver to the Federal Highway Administration (FHWA) which presented three potential strategies for resolving disparity in the heavy/highway construction and engineering industries. As ODOT states in the waiver request, “The study also reported no direct or single cause for disparity. Rather, barriers to success are associated with nationally recognized conditions related to human capital (education, employment and experience), financial capital, business ownership, and ongoing success of the business enterprise.”
Two of the options in the waiver request present methodologies on how DBE credit could be in calculated in a manner that incentivizes the use of under-utilized groups and the third option mirrors that used on the Opportunity Corridor project in Cleveland; namely, setting racial, ethnic, and gender subdivided goals based upon geographic availability. There is no time constraint set for when FHWA must respond to this waiver request. The formal request can be viewed through the same ODOT link provided previously.
It goes without saying that this disparity study and its potential outfall will have far-reaching impacts on the highway construction industry in Ohio. OCA is working to evaluate the impacts that the study may have. Much of that will depend on ODOT’s actions taken based on the study’s findings and what may be mandated by FHWA to bring ODOT’s DBE program into compliance with federal regulations. This will be a major point of discussion at the next OCA Board of Directors’ meeting as we evaluate what response is appropriate to any changes made in the administration and mandates of the DBE program.
OCA Scholarship Notices
Several of our members have suggested that OCA create a handout with information about our Hall of Fame and Chapter scholarships. These handouts should go to HR departments and those who would need them when attending job fairs. If your company attends trade shows and would like to have this document, please send the name of the appropriate person, title, and e-mail address to Emily Pickens at [email protected].
Operating Engineers, Local 18 Wage & Benefit Changes– 5/1/16
OCA’s current Heavy Highway Agreement with International Union of Operating Engineers, Local 18 is a four-year agreement. It does not expire until next year on April 30, 2017. It does, however include a wage and benefit change effective May 1, 2016. The total increase is $.75 for all classifications in Exhibit A, and $.50 for all shop classifications in Exhibit D. Here’s how the Operators’ increase will be distributed:
1) Effective May 1, 2016, all wage classifications in Exhibit “A” of the contract will increase by $.50 per hour; all wage classifications in Exhibit “D” (Shop) will increase by $.25 per hour.
2) Effective May 1, 2016, the H&W benefit will increase by $.25 per hour to $7.66. All other benefits will remain unchanged.
Some of you may have received a letter from the Operators stating that the H&W diversion is effective on June 1, 2016. We have been in contact with the Operating Engineers, and have jointly agreed to make all changes effective May 1, 2016, the normal anniversary date for wage and benefit increases. Pleaseclick here to read more.
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