American DBE Magazine Spring 2014

Benefits of DBE Bonding

SPRING 2014

DBE Oscar LewisCleared for Takeoff

IdahoContractor Sentenced FOR FRAUD

Q&A with FHWA’sWarren Whitlock

CONCESSIONSINTERNATIONAL

SEES BIG BUSINESSIN AIRPORT INDUSTRY

Russell Family: H. Jerome Russell Jr., Herman J. Russell Sr., Donata Russell Major and Michael B. Russell of Concessions International

AMAC LeadersConvene on Capitol Hill

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FEATURES Q&A with Warren Whitlock Pressing Forward: Civil Rights in the FHWA

Concessions International

Conspiracy and Fraud in Treasure Valley

DEPARTMENTS 4 Publisher’s Page

7 DBE Program Spotlight: Heather Barry at DIA 6 Business Development I: Beware of Contractor Violations17 Business Development II: Are you Protected?

TRANSPORTATION TRENDS: AVIATION, CIVIL/HIGHWAY AND TRANSIT14 Highway Research Project to Study DBE Program Success26 AMAC Convenes on Capitol Hill30 MTA Building DBE Capacity

ALSO IN THIS ISSUE15 DBE Power Players: Oscar Lewis34 DBE Power Players: Susan Wendt

Contents

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American DBE | Spring 2014 | americandbe.com 3

This issue of American DBE also looks at the road to capac-ity by highlighting the success story of Concessions Interna-tional, a firm that started as an ACDBE and through patience, persistence and wise decision making has become one of the largest airport concessions companies in the United States. We also profile two DBE business owners, Susan Wendt and Oscar Lewis, who have taken bold and decisive steps to build the capacity for greater success in the transportation industry. Finally, this issue of American DBE provides DBE/ACDBE firms, DBE program administrators, primes and other stake-holders engaging stories and information that will continue to develop either opportunity or capacity building for DBE/ACDBE firms. I hope you enjoy.

Best wishes,

Shelton A. Russell, Publisher

Success as a DBE firm is often found at the intersection of opportunity and capacity. While both thoroughfares are good on their own, the intersection of the two is the “sweet spot” of success. Hav-ing capacity without opportu-nity is akin to being all dressed up, but having nowhere to go. Similarly, having opportunity without capacity is like win-

ning a seven-day Mediterranean cruise with no money to get to the ship. Some people believe that the two roads merge rather than intersect. This thought encompasses the belief that opportu-nity will lead to developing capacity, or that having capacity will automatically bring opportunity. However, experience has taught me that some firms having opportunity never develop capacity, and some firms with capacity are still de-nied opportunity. I believe the two roads are related, but still mutually exclusive. This issue of American DBE Magazine has articles that con-sider both roads that must intersect on the way to success. On the road of opportunity, we examine the Small Business De-velopment Program of the Metropolitan Transportation Au-thority in New York. MTA has implemented a Small Business Development Program that provides educational, technical assistance and prime contracting opportunities to qualify-ing small and DBE firms to provide the opportunity to build greater capacity. We also profile the Construction Careers Center High School in St. Louis, MO that is providing inner-city students the opportunity to gain valuable construction indus-try experience with the hopes that this will give them a head start toward careers in construction. In addition, we examine the work of Heather Barry, Director of Business Affairs at the Denver International Airport (DIA). Through DIA’s innova-tive approach to airport concessions management, DIA has excelled at providing opportunities for ACDBEs to own their own operations in their concessions program.

The Intersection of Opportunity and Capacity

4 American DBE | Spring 2014 | americandbe.com

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Spring 2014 Volume 2, Issue 2

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About American DBE Magazine:American DBE Magazine is the premier industry resource for individuals and stake-holders who work w ithin the federal Disadvantaged Business Enterprises program administration. American DBE Magazine is published quarterly and distributed in all 50 states—plus Puerto Rico and the U.S. Virgin Islands—to DBE program administrators, business owners, and professionals in the Aviation, Highway Construction, and Public Transit industries.

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Over the past couple of years, I have seen an increase in cas-es in which minority contractors are being sued for violation of federal and state wage and hour laws. The basic scenario in these cases goes like this: Contractor hires Joe Smith as an “independent contractor” to assist with additional short-term

work on an upcom-ing project. Mr. Smith works for the con-tractor for two to six months and then the project is completed. Mr. Smith receives no benefits such as health insurance, retirement

or overtime pay. While Mr. Smith is working for the contrac-tor, he meets Ms. Jones who is fired by the contractor shortly thereafter. Ms. Jones believes that she was not paid for time which she worked before and after her normal work shift. She also believes that the company made automatic deductions for her lunch break even though she often was asked to meet with her supervisor or perform other work-related tasks dur-ing that time. Mr. Smith and Ms. Jones consult with a plaintiff ’s attorney and eventually file a lawsuit against the contractor alleging that he was an employee of the contractor and that she was not paid for all the time that she worked. In this scenario, Mr. Smith and Ms. Jones are typically promised by the plaintiff ’s attorney that they won’t have to pay any attorney’s fees for bringing the lawsuit since the federal wage and hour laws allow the plaintiff to recover attorney’s fees if any violation of the federal wage and hour laws can be established. In addi-tion, there are provisions which allow for the doubling of any wages that should have been paid to the contractor because overtime was not paid or was incorrectly calculated. The risk for the contractor becomes even greater when the decision is made to proceed with the lawsuit, because once the attorney identifies a company with possible violations of the wage and hour regulations, he/she will almost certainly interview others who have recently worked for the contractor and seek to file a collective action lawsuit on behalf of all the employ-ees who have worked for the contractor during the previous three years. If the attorney is able to establish even minor violations of the wage and hours laws, it is likely that the con-tractor will eventually face either a judgment or a settlement well into the six-figure range. This has led to the filing of four times as many wage and hour lawsuits in 2012 as were filed 10 years ago. The construction industry ranks first in the list of industries that are most often targeted for these lawsuits.

Even if the contractor avoids a lawsuit from a current or for-mer employee, there is still a substantial risk that either the Department of Labor or the Internal Revenue Service (IRS) will initiate an investigation to ensure compliance with all the applicable federal and state laws and regulations. Federal officials have started to aggressively investigate and penalize employers that misclassify workers as independent contrac-tors. In this era of tight federal budgets, the government is extremely eager to recover the estimated $7 billion in “lost” taxes resulting from the erroneous classification of “employ-ees” as “independent contractors.” In its budget for 2013, the US Department of Labor sought to hire 50 percent more full-time investigators than they employed just five years previously. The IRS is also actively searching for companies that are avoiding payroll taxes by classifying “employees” as “independent contractors.” From 2010 until 2013, the IRS conducted 6,000 random audits to determine compliance with proper worker classifications and other employment tax issues. The IRS’s budget for 2013 budget included $403 mil-lion in new IRS enforcement activities, which was expected to raise $1.48 billion in revenue annually. The IRS’ 2013 enforcement budget also includes $200 million in additional examination and collection programs that will generate more than $1.1 billion in additional annual enforcement revenue by 2015. The IRS is expected to continue to hire more enforcement officers to investigate wage and hour violations and because certain industries, such as construction and trucking are believed to have a significant number of misclas-sified workers, these industries are likely to be scrutinized more heavily than others. It is much less stressful (and cheaper) for the contractor to consult with an attorney and conduct a compliance audit before it is faced with a lawsuit or an investigation by either the Department of Labor or the IRS. Because there are strong incentives in place for both employee lawsuits and governmental investigations, prudent companies are taking proactive measures to protect themselves against these risks. Although few companies relish the prospect of hiring an at-torney to audit their compliance practices, the reality of the current environment for contractors is such that the risk of doing nothing is too great for a well-run contractor to bear.

Theodore C. (Ted) Edwards II is an attorney at Smith Moore Leatherwood Attorneys at Law in Raleigh, NC. Ted Edwards focuses his practice on provid-ing counsel to owners, engineers and contractors regarding construction project administration and construction litigation. He also advises clients on the development,

operation and management of public transportation systems. 6 American DBE | Spring 2014 | americandbe.com

Business Development

Contractors, Beware of Wage Violations

“Heather Barry has DBE and ACDBE opportunities at the airport flying high since assuming her role as the Director of Business Affairs at Denver International Airport (DIA).” Barry is responsible for the DIA Commerce Hub, which develops policy that is responsive to the local, small and minority business

community. The Commerce Hub also works to increase opportunity and capacity for the local business community and acts as an advocate for small businesses; championing efforts that promote a transparent business environment, increase access and position firms to bid on projects across all DIA departments. Barry’s role includes working with DIA concessionaires on a wide variety of difficult issues where she often serves as an advocate to ensure direct communication with Denver’s Manager of Aviation, Kim Day. DIA’s efforts to expand op-portunities for small and diverse firms have yielded impres-sive results. “The Denver International Airport Commerce Hub is the business community’s connection to one of the busiest airline hubs in the world’s largest aviation market,” Barry said. “Since 2011, the Commerce Hub has worked to increase the oppor-tunity and capacity of the local business community through contracting, educational programs, prime engagement and business development.” Through the Commerce Hub, Barry and her team provide a variety of services and programs to create opportunities and develop diverse firms for greater opportunities at DIA. For instance, the Commerce Hub Business Education and Sup-port Training (BEST) is designed to offer time-tested busi-ness tactics and DIA’s technical and administrative business expertise to better prepare firms to “hold and grow” contract

work at DIA. Throughout the year, BEST presents monthly engagement sessions on relevant business topics that address, identity and bring attention to strategies that encourage busi-ness development and opportunity at DIA. Upcoming BEST sessions will include topics such as:

• The ABCs of the Airport Concessionaire Disadvantaged Business Enterprise Certification (ACDBE)• Essential Elements of the New 2014 Disparity Study• Airport Contract Legal Requirements• Business Tax Breaks and Employee Training Subsidies• Business Financial Review for Concession Operations• Concessions Best Practices• Kiosk/Retail Merchandise Units Business Opportunities• City Purchasing of Airport Goods and Services• City of Denver Business Certification Programs

DIA is more than halfway finished with its Hotel and Transit Center program. The Transit Center will add a 519-room Westin hotel and conference center, a public transit center that includes a commuter rail station connecting the airport with downtown Denver, and a centralized pick-up and drop-off for all Regional Transportation District (RTD) buses serving the airport, and a public plaza. The public plaza is Denver’s newest venue for programs and events where passengers and visitors can find entertainment, relaxation, art and restaurants. This project is expected to create more than 1,000 jobs in the Denver area during construction. This sum-mer, the airport will reach the peak of construction, and will have about 1,000 workers on site each day.


DBELO Program Spotlight:Heather Barry Has DIA Commerce Hub Flying High

continued

Heather Barry meets with DIA Financial Analyst Carlos Ramos in the DIA commerce hub.

the Denver Metro-Area community have been touched by these efforts in some way.” To add to Barry’s busy workload, DIA is also host of the 2014 Airport Minority Advisory Council’s (AMAC) Business Diversity Conference in June. Although the event is primarily planned by AMAC, Barry and her team have invested signifi-cant time and resources to prepare for the conference. “AMAC is our chance to showcase DIA and the airport’s ef-forts to attract and retain minority- and women-owned firms,” she said. Barry attributes her success at the airport to strong support from city officials and airport leadership, a dedicated staff, and great DBE and ACDBE firms that make her job enjoyable. “I believe that the Commerce Hub has dramatically in-creased the visibility of DIA within the local business com-munity, and has worked to find solutions to the barriers that some small businesses or minority-owned companies might experience when entering the aviation sector,” she said. “I’m proud to be a part of it.”

“The hotel and transit center program will generate an an-nual net profit of up to $5 million per year within the first five years of operation, with an estimated $1 million to $2 million in annual taxes,” Barry said. “This program is important for our community, and will create more than 200 permanent hotel jobs while helping to drive economic growth for the entire region.” DIA’s concessions program has been established as one of the most progressive and diverse programs in the United States. Since DIA does not enter master concession agree-ments with large concession operators, many opportunities exist for local small and disadvantaged business owners to operate a concession at DIA. Currently the airport has more than 140 concessions operations. Of the $295 million generated by the concessions program last year (a record for the airport), more than $115 million was paid to certified ACDBE companies. “DIA is an incubator for local, small and minority-owned firms,” Barry said. “In the three years that the Commerce Hub has worked to build these critical partner-ships, an estimated 15,000 business owners and members of

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PROUD TO GIVE BUSINESSES A LIFT

CATS is proud to provide opportunities for businesses to create local jobs through the advancement of transit projects. CATS also seeks to create an environment that gives small and socially or economically challenged local businesses the opportunity to compete for publicly funded contracts by participating in the Small Business Opportunity (SBO) and the Disadvantaged Business Enterprise (DBE) Programs.

On the LYNX Blue Line project, for example, CATS spent $42.9 million with 38 DBE firms to build the new light rail system.

As the major provider of public transportation to Charlotte and the surrounding region, CATS relies on the communities we serve to build and operate the service every day. By working together on these new opportunities, we can all keep our communities moving in the right direction.

For more information, visit ridetransit.org.

ny successful contractor knows that surety capacity is the lifeline of a successful business. Required by

the government on public work projects since 1894, surety bonds are a risk transfer mechanism where the surety com-pany assures the contractor will perform its obligation in accordance to the contracting documents. General contrac-tors use surety for prequalifi-cation and risk mitigation on private work. So why do small, emerging and minority contractors see bonding as an impediment and not a benefit? Perhaps they are not aware of the availability of bonding, value of surety bonds or the following benefits surety provides for Disadvantaged Business Enterprises (DBEs). Here are five reasons why bonding is important for DBEs:1. Bonding provides payment assurance. The over-whelming majority of the work executed by DBEs is in the capacity of a subcontractor to a general contractor or prime contractor. Since subcontractors cannot lien most public works projects, the payment assurance that bonds offer subcontractors is critical. Many small contractors have fewer resources to absorb an event of non-payment, and no other product provides subcontractors and their lower-tier subs or suppliers a direct right of action; and assures payment to those contractors who cannot afford delay in payment for work performed.2. Having surety credit provides a competitive advantage. Having bonding capacity makes it less risky as a contractor because there is the support of a licensed corpo-rate surety that provides a rigorous prequalification process and a strong corporate balance sheet to handle performance and payment claims, if they arise. Suppliers often give better prices and terms to subcontractors with surety bonds. Since the majority of DBEs do not pursue bonding, qualifying makes a company more attractive to prime and general con-tractors that are looking to mitigate risk. DBEs can bid more work leveraging surety credit than they can simply using the strength of their own balance sheets. This allows companies to grow and thrive.3. Bonding is available for qualified DBEs. Many licensed corporate sureties have “Fast Track” programs that

give DBEs quick access to bonding if the program criteria are met. Also, the Small Business Administration has a Surety Bond Guarantee Program to assist contractors in getting bonding from surety companies. The surety industry is committed to the success of small and emerging contractors, and in 2000, The Surety & Fidelity Association of America (SFAA) created the Model Contrac-

tor Development Program® to help small and emerging con-tractors prepare for and obtain bonding. The MCDP® con-sists of an educational com-ponent and bond-readiness component, during which participants work one-on-one with surety professionals to get their finances and bond applications in order. The MCDP® has been successful in many places across the U.S.

In 2010, SFAA partnered with the U.S. Department of Transportation (USDOT) to implement the Bonding Educa-tion Program to assist DBEs in becoming “bond ready” and meeting requirements to bid on and win transportation-re-lated construction and services contracts. Through these pro-grams, participating contractors learn what they need to know to develop a trust-based relationship with a licensed surety, become bondable, and have the ability to bid on projects they otherwise would not. Since the USDOT BEP inception in 2010, 240 contractors have achieved bonds, totaling approxi-mately $225 million.4. Surety bond claim service. When a conflict arises, the surety’s services are invaluable, since it can make an indepen-dent assessment of the situation and help achieve the best out-come. The surety wants the contractor to successfully execute work, and often all that takes is the surety being there to assist with a cash flow or other short-term crisis. But if an investiga-tion of the claims shows that the problem is greater, the risk shifts to the surety to remedy, up to the full bond penalty. The surety puts the strength of its balance sheet behind the contractor so projects get completed and bills get paid in a timely manner. 5. Sureties are uniquely positioned to provide an objective third-party analysis of the contractor’s business and financial picture and can provide invaluable guidance. A surety likely will say “no” on a particular project if it is not in the contractor’s best interest to pursue the work, is outside the contractor’s area of expertise, or if the contract or bond contains onerous terms and condi-



BENEFITSOF BONDSFOR DBEs5

A

tions. The surety assesses beyond simply winning work and examines the risk the project may present for that particular firm. Sureties have been underwriting contractors for more than 100 years. The surety provides insights into why con-tractors, both large and small, fail and often provide trusted advice on questions such as, “Should I team with a particular contractor?” or “Would a joint venture with ‘X Firm’ make sense?” Be-cause surety professionals are out in the mar-ketplace, they can provide excellent insight.

The bonding process may seem intimidating to DBEs at first, but with the willingness to learn and work hard, small, emerging, women and minor-ity contractors will find that bonding is key to economic empowerment, sustainability, profitability, long-term success and legacy wealth.

The USDOT Bonding Education Program

The USDOT BEP partners with SFAA to help small busi-nesses become bond ready. Becoming bondable is often

a challenge for DBEs and the BEP is a hands-on, multi-component contractor development pro-

gram designed to address the deficient business functions that may hinder contractors from building or becoming bondable and sustain-able businesses. In addition, the BEP develops individual-

ized growth plans for each DBE and provides one-on-one sessions with local surety bonding

professionals to help in assembling the materials necessary for a complete bond application. This pro-

gram is tailored to businesses competing for transportation-related contracts.

Joanne Brooks is Vice President and Counsel at The Surety & Fidelity Association of America. For more information, call (202) 778-3639 or email: [email protected].

Nyime J. Gilchrist, National Bonding Education Program Manager, USDOT, OSDBU(202) 366 -3403 [email protected].

Recent graduates from the bonding education program in Dallas, TX.

LOCATION

Spokane, Wash & Boise IdahoBaltimore, MDShoreview, MNMiami, FLNew York, NYOrlando, FLTopeka, KS

SBTRC

Northwest RegionMid AtlanticCentralSoutheastern RegionNortheast RegionSoutheastern RegionCentral Region

EVENT

Program Kick-OffBEP PlanningBEP Kick OffBEP Kick OffBEP Kick OffBEP Kick OffBEP Kick Off

DATE

April 24, 2014Fall 2014Fall 2014TBDFall 2014Winter 2014Winter 2014

2014 PROPOSED SCHEDULE


In the fall 2013 issue, American DBE Magazine published an article titled, “USDOT Inspector General Completes DBE Program Audit,” which reported on a 40-page document ad-dressing administration of the Disadvantaged Busi-ness Enterprise program. The Office of Inspector General (OIG) audit concluded that the USDOT does not provide effective program management for the multibillion-dollar DBE program and iden-tified several weaknesses, which included a lack of standardized guidance, insufficient training, lack of accountability, inadequate oversight, and limited

success in achieving program objectives for DBE participa-tion on federally-funded projects. Subsequently, the OIG report offered eight recommendations for remedial action:

1) Develop comprehensive guidance and best prac-tices for DBE program implementation by invoking DBE stakeholders from all levels. The guidance should provide direction for conducting certifica-tion processes, certification reviews and on-site project reviews.2) Formally assign one department office the re-

An interview with Warren Whitlock, FHWA Associate Administrator for Civil RightsPRESSING FORWARD

Courtesy of KYDOT

Agency’s (STA) Chief Executive. Each state DOT must evaluate each DBE to ensure that a full analysis is performed to ensure the STA knows the appropri-ate training and development that firms need to improve their chances for success as bidders on construction opportunities.

STAs must really own their DBE programs to ensure that, in addition to meeting their DBE participation goal, the STA defines success. Does the STA wish to increase DBE utiliza-tion? Graduate a certain number of DBEs from the DBE program? Have a number of DBEs attain bonding, or improve the number of DBEs that advance to prime contracting work? These are all examples of definitions we see as state DOTs owning.2) What accomplishments are you particularly proud of during your ten-

ure as the Associate Administrator for Civil Rights? There are 12 accomplishments that FHWA’s Office of Civil Rights has achieved over the past few years:A) Building a more cohesive team, restructuring the organiza-tion and hiring talented and qualified staff who can effectively manage the current day issues faced by the Civil Rights Disci-pline and improving morale.B) Creating better communication between the Office of Civil Rights and the FHWA’s 50 division offices around the nation, as well as establishing monthly civil rights webinars with them, state DOTs and other groups.C) Inserting key civil rights deliverables, such as ADA transition plans, core civil rights implementation plans, into FHWA’s overall Strategic Implementation Plan.D) A Title VI compliance finding against Beaver Creek, Ohio.E) A DBE Compliance finding against Washington State DOT.F) Creating an annual DOT Civil Rights Symposium for external stakeholders.G) Expanding the National Summer Transportation Institute to 46 states, including, for the first time, the US territories in Guam, American Samoa and the Northern Mariana Islands.H) Creating a collaboration with the Federal Aviation Ad-ministration with the NSTI program, providing students with exposure to surface transportation and aviation.I) Demonstrating value among FHWA’s program offices.J) Creating a new relationship with OFCCP (Office of Federal Contract Compliance Programs) to ensure contractor compliance.K) Building collaborations with the Federal Transit Admin-istration to improve on joint operational practices to make it easier for state DOTs to manage programs like Title VI.

sponsibility and accountability for integrating and managing the DBE program.3) Develop program performance measures to regularly as-sess the DBE program and evaluate whether it is achieving its objectives.4) Establish a centralized departmental data system for collecting and tracking DBE com-mitment and award information and require that the operating administrations imple-ment procedures to ensure that recipients are accurately reporting DBE award and other financial information.5) Maintain the relevant DOT website to ensure it contains current information and includes accurate DBE program contact information.6) Develop an oversight and compliance plan with the operating administrations to identify specific, required oversight processes and reviews and ensure that a sufficient number of reviews are performed based on assessed risk.7) Require that recipients track and regularly report utiliza-tion data to the operating administrations, including each DBE’s number of years in the program and the number of DBE subcontracts or prime contracts received since first becoming certified.8) Require that the operating administrations work with recipients to develop ways to improve utilization rates and require the establishment of business development programs for firms that have not received DBE work for several years.

Under the leadership of Warren Whitlock, Associate Ad-ministrator for Civil Rights in the Federal Highway Adminis-tration, the Department has taken steps to address the issues identified in the OIG report and enact the recommendations set forth. Whitlock shared his insights and the following information in an interview with American DBE Magazine this spring.

1) What are the key initiatives your office is pursu-ing to advance the DBE program with recipients of FHWA funding? Since my arrival to FHWA in September 2011, my team and I have emphasized a “back-to-basics” philosophy. That is, we want to ensure that each state has the required docu-mentation to affect a solid DBE Program. This means that every state department of transportation (DOT) must have a current and approved DBE program plan, an organizational structure that aligns with the federal regulations and that the DBELO has independent access to the State Transportation


continued on page 28


A new research project sponsored by the National Coopera-tive Highway Research Program (NCHRP) plans to identify successful practices in the DBE program. The project will seek to determine practices by DBE firms, prime contractors and DBE program administrators that enhance DBE busi-ness growth and potentially lead to DBEs growing beyond the gross revenue size standards for DBE certification. The goal of the project is to produce a comprehensive report for use throughout the DBE program that will provide guidance and recommendations for strategies to improve the growth, capacity and long-term viability of DBE firms. Although the DBE program has existed since the 1980s, this is the first research project that looks to identify the key deter-minants of DBE growth, success and eventual exit from the DBE program due to exceeding the program’s personal net worth or annual gross revenue size standards. Currently, these standards are a personal net worth (excluding business equity and personal residence equity) of less than $1.32 million, and a three-year average of business gross revenues of between $6 million up to $24 million depending on the primary industry of the DBE firm. The consulting firm of Colette Holt & Associates (CHA)

was selected to conduct the project. The CHA team includes attorney Colette Holt, a disparity study and DBE program expert based in Oakland; and former USDOT Assistant Attor-ney General Robert Ashby, who drafted the initial DBE regu-lation and served as the DBE program legal expert until 2012. In addition, the research team includes an economist and data expert to conduct and review the survey data required for the project. CHA began the project in the fall of 2013 and is scheduled to conclude in the fall of 2014. After reviews from NCHRP and revisions, the report should be released in 2015. The research plan calls for an extensive array of surveys throughout the DBE program industry to collect data from a variety of stakeholders. First, the team will survey state depart-ments transportation agencies (STA) to gather information on the number, industries and ownership of firms that have exceeded the net worth or gross revenue size limitations, as well as other information that will help to assess the success and effectiveness of DBE development initiatives. Next, the team will survey prime contractors, DBEs and DBE Support-ive Services consultants to gain additional information about successful program practices and input on what initiatives enhance DBE firm growth and development. In addition to the surveys of industry stakeholders, CHA will interview selected STAs, DBEs, prime firms and supportive services consultants regarding DBE development issues and elicit recommendations for changes. Additional data will in-clude results from STA disparity studies; DBE utilization data reported to FHWA from state transportation agencies; and other qualitative evidence to determine similar characteristics and experiences of firms in the DBE program. Holt said, “We hope this research project will create best practices to help in DBE program administration throughout the industry.” She anticipates the specific results of the re-search to be fivefold: 1) Expanded knowledge of the industries and disadvantaged subgroups in the DBE program; 2) Greater understanding of the factors supporting DBEs’ success; 3) Improved DBE program design, structure, resources and man-agement; 4) More effective business development services; and 5) Performance measures for DBE growth/success in the program and external markets. “We really need DBEs, prime contractors and DBE Sup-portive Services consultants to participate in the research project and to respond to the surveys we send out. The quality and usefulness of the final report is contingent on the data we receive from the industry,” Holt said. She also encourages all program stakeholders to contact the research team at: [email protected] to provide input or make suggestions about the research topic.

Civil/Highway

Highway ResearchProject to Study DBE Program Success


It’s not everyday that an individual develops an idea with the potential to revolutionize an entire industry and change the status quo of the past century, but that is exactly what Oscar Lewis, U.S. Patent Inventor and president of The Lewis Company, has done. Like many of his friends, as a kid, Lewis used to look up in the southern Alabama sky and see airplanes flying overhead. However, Lewis was determined to do more than just look. He wanted to learn everything about airplanes, aviation, and be a part of what he saw in the sky. As a teen, he spent time reading charts in the General Aviation department of the local airport and invested $1.00 to take his first ride in a twin-engine retractable plane with a local businessman, who took an interest in support-ing Lewis and his career aspirations. With an upbringing in a strong military fam-ily, Lewis built his career and business in avia-tion, beginning with an undergraduate degree in Computer and Information Systems from Alabama State University; a master’s degree in management from Houston Baptist Uni-versity; commissioned as an officer in the United States Air Force; and professional service as a distinguished air traffic control manager.

In 1992, after years of managing large-scale air traffic opera-tions for corporations and international organizations, Lewis pondered the idea of working for himself. Nineteen years ago he launched The Lewis Company, a science and engineering firm focused on safety and expansion opportunities in the

field of aviation. Lewis worked with the Small Business Administration office in Washington, DC, visited different airport authorities across the country, and eventually picked up his first customers handling progressively larger projects in flight operations, air traffic control and general aviation. Lewis spent close to four years researching and studying flight opera-tions in the Maryland-DC area with the goal of creating an idea to shave time off of airplane arrivals and departures, which would take air-craft off the runways faster; resulting in a 25 to 35 percent increased capacity for airports and airlines. Using model airplanes and more than

30 years of aviation knowledge and expertise, he built the LEWIS: Landing Exit Way Integrated System. This 21st Cen-tury New Generation Smart Runway System allows landing aircraft to rapidly transition off the active runway and onto

Oscar Lewis, president of The Lewis Company


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? Maybe you’ve got a pizza delivery business. Or maybe you’ve got a florist shop. Or perhaps you’ve got a pool ser-vice with employees going to custom-ers’ homes. What if… Scenario 1 – Your driver just hit an-other car while making a delivery. The police report finds your employee was under the influence. You had no idea that this person had a pattern of sub-stance abuse. After all, he was fine dur-ing the interview. Or so you thought. Now, the floral delivery was not made on time, your work on preparing the ar-rangements is for naught as the flowers were destroyed in the accident. There is an upset customer, your valuable reputation is at stake, and you may have a workers’ compensation claim against your company. Your employee may be in jail and unavailable to work, your insurance premium will skyrocket, and you may have no recourse! Scenario 2 – Your pool service cus-tomer’s residence was burglarized when no one was home. It’s your employee that’s been arrested and charged with the crime. You didn’t perform a background check and now your company can be sued! In the first case, a pre-employment drug and alcohol screening test might have saved you and your business. In the second scenario, a background check would have given you the peace of mind of knowing that your employ-ees were thoroughly screened, avoiding potential risk which could bankrupt your company. As a small business owner, the drive to be your own boss and enjoy the fruits of your own labor are compelling reasons to work hard, often with longer hours and shorter vacations than those in larger corporate environments. In terms of risk vs. reward, you know that your earning and growth potential are far greater on your own than working for someone else, but you assume poten-tially much greater risk.

Did you know:• 60% of adults know people who have gone to work under the influ-ence of drugs or alcohol. • 74% of adult illicit drug users are employed, as are most binge alcohol users. • 1 in 6 workers has a drug problem. According to results of a Na-tional Institute on Drug Abuse (NIDA)-sponsored survey, drug-using employees are 2.2 times more likely to request early dismissal or time off; 2.5 times more likely to have absences of eight days or more; three times more likely to be late for work; 3.6 times more likely to be involved in a workplace accident; and five times more likely to file a workers’ compensation claim – all of which drive up costs and drive down productivity. Few small businesses can afford these higher risks. Described in dollars and cents, each workplace drug and alcohol abuser could easily cost your company between $11,000 and $13,000 per year in health care costs, injuries, damages and lost production time. With these hard facts, work-place substance abuse is an issue employers need to address. Some job categories are more likely to have workers who have substance abuse issues. They present a high risk for oc-cupational injuries and can include delivery drivers, construc-tion, manufacturing, wholesale workers and others.

Here’s the point: Smart small business owners know employees are often the company’s most valuable asset. They are an extension of you and your brand, and may ultimately determine your long-term success. As a result, it is important to have the highest quality employees you can find – before they join your payroll – to reduce your risk. Drug and alcohol screening tests are readily available and very affordable. Surprisingly, less than 20 percent of small companies (those with fewer than 500 employees) currently use pre-employment testing. Equally startling, nearly 2 out of 3 companies do not use screening for existing employees to ensure they are staying drug-free. Why? Small business owners are often reluctant to act on this information. Some are risk averse, some are conflict

By Dee Carlson, President and CEO, ARCpoint Labs of Altamonte Springs, FL




MAKINGA CONCESSION


he art of making a successful deal involves know-ing how to make strategic concessions that allow both parties to achieve a reasonable share of their objectives from the transaction. These strategic

concessions may include negotiating the terms, timing, cost or structure of the deal. However, the successful negotiator understands their long-term goal for the deal and ensures that whatever concessions are made will still allow them to meet their ultimate objective. Herman J. Russell Sr. (Russell), founder of Concessions International (CI), made this type of strategic concession in 1979. Russell, also the owner of H.J. Russell Construction—one of the largest minority-owned construction firms in the U.S.—made the strategic decision to become one of three members of a group that would become a Disadvantaged Business Enterprise (DBE) partner of Host International, the largest operator of food and beverage airport concessions in the United States at the Los Angeles Airport (LAX). Surely, with Russell’s construction success and extensive business

relationships, he could have started an airport conces-sions business on his own. However, Russell knew that this opportunity—while small and located far away at LAX—offered long-term benefits that outweighed this concession. Russell knew the experience and wisdom that would come from being mentored by Host International would surpass any benefit of being the sole owner of a concessions operation. Russell was right in this assessment. Thirty-five years later in 2014, CI itself has become one of the 10 largest food and beverage airport concessionaires in the United States, with rev-enues exceeding $70 million, more than 1,000 employees, and 50 operating locations in nine different airports scheduled by year’s end. CI President R. Anthony Joseph said, “From the beginning Mr. Russell knew he wanted three things from

the JV partnership with Host International. First, he wanted to be a full partner by making a financial investment. Second, he wanted a commitment from Host International to teach CI the business. Third, he wanted his own operations, meaning he wanted CI to have hands-on involvement in running the concession.” By making the decision to be a junior partner to a large airport concessionaire, Mr. Russell gained invaluable experience in how to run a successful concession operation. This culture of making wise and strategic business decisions remains with the company today as Donata Russell Major, the daughter of Herman J. Russell Sr. leads the company as Chief Executive Officer. Major joined her father’s fledgling concessions company early in its development while CI was operating the location in Terminal 2 of LAX. “I had worked for three years at IBM, but when I began working at CI, I fell in love with it,” Major said. Years later, Major still loves it and is taking the company in new directions and to even greater heights. In April 2014, CI opened a new concession called Fly Burger Bar Boutique, a

Above: Concesssions International/H&H Hospitality JV team celebrates grand opening of Fly Burger Bar Boutique in Atlanta’s Hartsfield Jackson International Airport.

Photo: Courtesy of JGlenn Photography


totally new concept featuring a partnership between CI and renowned Atlanta master chef and restaurateur Tom Cather-all. “It was exciting for us to give everyone a real taste of At-lanta while traveling or coming home,” Major said. “Whether you’re visiting Atlanta for the first time or a local, we really wanted to create an opportunity to connect customers to the city through our unique food.” Joseph sees this type of concessions operation as the future direction of the industry. “There is a trend toward more local concepts and toward elevating the quality of what is offered at airports. People want something different that is connected to the city from where they are traveling,” he said. CI is also pursuing other innovative concepts and experi-ences that continue to keep the company on the leading edge of the industry. Earlier in 2014, CI installed the first iPad-en-abled ordering system at the Hartsfield-Jackson International Airport in the Samuel Adams Atlanta and Dos Equis Explorer Lounge. “It’s a learning experience for us to see how custom-ers react to it,” Joseph said. Paying attention to customer reactions has led CI to success in the airport concessions industry. Although CI is not as large as other major concessions companies, Joseph credits the company’s success to having characteristics that make up for the difference in size. He said: “We are in an interest-ing position. As a family business, we are able to build strong relationships with our customers because they know they are dealing with the leaders of the company. We also have the ability to be flexible, responsive, and give our customer the attention and focus that some larger companies can’t do. In addition, because of our family culture, we are able to hire quality people who give great customer service. We’re in the hospitality business.” Regional General Manager Kenneth Simon puts it more succinctly: “I’d put our people up against any operation here at Hartsfield-Jackson. I think we have the best people out here.” Partnerships with Airport Conces-sions Disadvantaged Business Enter-prises (ACDBEs) are another area where CI excels. This makes sense given that CI started as a DBE firm in 1979. Russell later bought the shares of his two partners and exceeded the size standard for the DBE program. Joseph said, “We look at the right partners as being essential to our success. We are al-ways looking for good partners because we can leverage their capabilities to help us be successful. We don’t look at it

from just a compliance standpoint; we put a high premium on partnerships to maximize all elements of the relationship.” CI’s partnership with H&H Hospitality is an example of its strong relationships with ACDBE partners. H&H Hospitality is an ACDBE that opened in 2007 as a restaurant operator in Metro Atlanta, but after learning about opportunities in the airport concessions industry, the company applied for ACDBE certification in 2011. H&H then became the ACDBE partner of CI in a winning bid to become the master food and bever-age concessionaire in Terminal B of the Hartsfield-Jackson International Airport. Kevin Holt, one of the partners of H&H said: “It’s absolutely been a great experience for us to partner with CI. The airport concessions business is very different, so it is extremely valuable to be able to learn best practices from an experienced concessionaire who has been in the business for decades. We look to use their success as a roadmap because they started as a DBE just like us. We look forward to grow-ing into other markets and someday being able to offer other ACDBEs the same opportunity given to us by CI.” Joseph offers the following advice to ACDBE firms interest-ed in partnering with CI or becoming a successful concession operator. “ACDBEs must do their homework to understand the world of concessions; it is different that running a restau-rant outside of the airport. You must understand the financ-ing, operations and ACDBE regulations. You must also know how to structure a deal and be able to bring some investment to the table. Finally, ACDBEs must understand the time com-

Customers use Concession International’s innovative iPad ordering system at Samuel Adams Lounge in Terminal B of Hartsfield Jackson International Airport.



As the operator of a DBE (Disadvantaged Business En-terprise) program, you know that DOT (Department of Transportation) has the right to audit your program. Some agencies will receive the dreaded notice that their program is up for an audit, but crossing your fingers and hoping that your agency isn’t one of the few that will be audited this year is not an effective strategy. You can take charge of your audit fate, and in the process reduce the stress and operational upheaval that comes with an audit, by follow-ing these 5 steps.

Stay up-to-date on the regulations. This may sound like a no-brainer, but CFR 49 Part 26 is the source for complying with all things DBE and will be the key document that an auditor will base any assessment of compliance and deficiencies of

your DBE program. If you have not dusted off the regula-tions in a while, take a moment to bookmark the electronic version in your favorite browser. To take the sting out of being overwhelmed by the legalese of the regulations, make it a practice to read one of the six sub-parts of the regulations per month. Awareness of the regulations and its updates is the start to having a compliant organization. Ignorance in this instance is not bliss, so whether you are new to the DBE program or a seasoned pro, staying up-to-date on the regulations will help you when audit time is near.

Read DBE final reports. The final reports of DBE reviews conducted throughout the country are available for your review online (http://www.fta.dot.gov/civilrights/sitemap_14042.html) and offer a wealth of information to help you prepare

for an audit. Reading these reports gives you insight into what aspects of the DBE program will be tested, as well as the strengths and weaknesses of the DBE compliance ef-forts of your peers. Use conclusions from the final reports

to convince management to invest in needed resources to strengthen your program or pick up tips for cost-effective ways to carry out your DBE duties.

Document program performance. This is not an “aha” tip for those in the know, but locating and pulling together the necessary files is half the stress of preparing for an audit. With documenta-tion scattered across email accounts, paper files,

proprietary software, attendance logs, etc., proving that your program is compliant can be a challenge if the audit paper trail does not exist or more often cannot be found. Below are some solutions to common scenarios:

• DBELO meeting with the CEO on an informal basis? Solution: Send a follow-up email to the CEO confirming the contents of the meeting. • DBELO gives a presentation on how to do business with the agency at the local chamber? Solution: Save the agenda. • Having trouble collecting contract info from the primes? • Serving as the DBELO is one of ten thousand other things on your plate? Solution: Make the necessary time to systematically document how your job is done, if not for an audit, then simply do it for the sake of the next person who will have to fill your shoes upon you leaving the company. In the end, your employer will be grateful to you for taking the initiative on this task.

Self-assess your program’s performance. First-responders go through emergency drills to hone their skills and ferret out breakdowns in criti-cal systems and you should do the same. Take a sample of your vendor files and review them to en-

sure that the required contract language on prompt pay-ment, retainage, legal remedies and nondiscrimination are present not only in your contract with the prime, but in the

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STEPS TO PREPARE

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contracts between the prime and subs. Below are some solutions to common scenarios:

• Cannot find evidence of the contracts between prime and subs? Solution: Apply pressure using accounting or even legal to get the documents required by the regulations. • The DBE section of your website has not been updated in years? • Don’t have a DBE section on your website? Solution: Work with your IT department to get the latest version of the program plan and goals posted.

Discuss and share. Whether you are a team of one or 20, it is to your benefit to talk to others to share best practices and ways to make your DBE program more efficient and compliant. Find some fun and creative ways to exchange experience

and ideas. Below are some solutions to common scenarios:

• Hear of an agency that really has their act together? Solution: Invite them to share their experiences at a lunch-and-learn event and invite other agencies in your area. • Know of an expert that is outside your local area? Solution: Host a webinar to reduce the cost factor. • Want to impress upon upper management or other de-partments in your organization the importance of the DBE compliance to overall agency funding goals?Solution: Invite your regional DOT officer or a third-party consultant to give a team presentation.

An audit or review of your agency’s DBE program does not need to be cause for stress and alarm. Being proactive and creating a culture of compliance within your organiza-tion—combined with these simple tips—can go a long way in helping you ace your next DBE review.

Lorraine McCord is a certified internal auditor and consultant with Integrality Consulting in Dallas, Texas.

mitment to really get in and learn the business.” As CEO, Major is optimistic about the future for CI and the direction the company is taking. “We will continue to focus on opportunities in key airports across the country, but we are also looking at non-traditional concession opportunities outside of the airport. We want to build upon our previous business experience to expand existing markets and to diversify the company,” Major said. It goes without saying that Major has enormous shoes to fill as she succeeds Russell, who is one of the most respected African-American entrepreneurs in the U.S. But Major has learned a great deal from her father, and is comfortable with her leadership role. She said: “In following someone like my father, I have learned that you don’t try to be who they are, you have to do it your way – understanding that you are different people and you have to be who you are. I feel fortunate and blessed to have a father who despite his humble beginning and disability with a speech impediment, overcame the obstacles to become who he is today. I learned a lot from my father, things like: Deliver upon what you commit to; never do anything dishonest - we are very aware of trying to do the right thing all the time; always do your best; admit your mistakes; and he was always big on ‘saving a penny,’ meaning to put some money aside so you can take advan-tage of opportunities when they arise.”

From left: H. Jerome Russell Jr., Donata Russell Major and Michael B. Russell attend the grand opening of Fly Burger Bar Boutique in April 2014, a new conces-sion operation at Atlanta’s Hartsfield Jackson International Airport. The new restaurant is owned by the Concessions International/H&H Hospitality JV and renowned Atlanta Master Chef Tom Catherall. (Courtesy of JGlenn Photography)

5Concessions Int’l: continued from page 19


CCC


t. Louis’ Construction Careers Center (CCC) is not your average high school. It is truly one of a kind. Instead of focusing

solely on the traditional ‘Three Rs of Reading, Writing and Arithme-tic,’ the professionals in this charter school teach their students about all aspects of construction. The CCC was founded in 2001 by the Associated General Contractors of Saint Louis (AGC of St. Louis) as a way to foster community develop-ment and to fill a much-needed void assisting and preparing students for employment in the construction field. CCC is located next to the Pea-body housing projects, and serves an urban student population from the St. Louis public school system. The mission of the school is to prepare students in grades 9 through 12 by providing an excellent foundation in academ-ics, broad exposure to the construction industry, and relevant career and technical education. With more than 180 students currently enrolled, CCC placement statistics estimate that approximately 13 percent of all graduates are employed in construction-related fields. At CCC, students take core academic classes, and the only difference between other schools and this charter high school is that CCC does not have any electives. Instead of electives, students are taught about the construction industry. In the past, data released by the Missouri Department of Elemen-tary and Secondary Education (DESE) revealed that students from CCC scored 61 percent proficient in Communication Arts, and 56 percent proficient in Math, while the statewide average was 54.6 percent and 54.2 percent respectively; re-flecting the school’s innovative ability to successfully educate

By: Amikka Smithstudents in general curriculum cours-es and train students in construction. The type of work students per-form varies between courses, but one activity everyone participated in this year was constructing play-houses. The playhouse projects are outdoor buildings that are roughly 8’ x 10’ and represent scaled-down versions of an actual house. Student contractors put in the floor, put down the pavement, and even put on the roof; building everything from scratch. Vice President of Professional Development for AGC of St. Louis and Acting Superintendent of CCC, Paul Smith said AGC’s mission is to make a difference. “The chapter recognized the need for an increase of diversity in the

workforce. It was a key area, a key opportunity, and it was a great chance to provide an improved quality of life for a great number of people,” Smith said. “AGC’s mission is to serve the construction industry and to help improve diversity in the area, and to make a difference in a lot of peoples lives.” Nationwide, contractors added more than 19,000 jobs in March 2014 to hit the highest level of construction employ-ment since June 2009. In addition, the construction jobless rate declined to a seven-year low of 11.3 percent, according to the Associated General Contractors of America. So what does this mean? It means the construction industry is doing well, but there is still a shortfall on labor and finding skilled workers in the field. That’s why AGC of St. Louis developed a school like CCC—to teach students a much-needed skill. For the past three years, Xavier Keys has been one of the top performing students at CCC and says he has learned many valuable skills. “I’ve learned there’s a lot more that goes into

The Construction Careers Center was founded in 2001 by the AGC of St. Louis.

THE CONSTRUCTIONCAREERS CENTER

“Building Future Leaders of Tomorrow”

S

Students attending the St. Louis Construction Careers Center.

AGC of St. Louis was founded in 1950, and is one of the 94 chapters of the Associated General Contractors of America. Representing over 400 construction, and construction-related firms, AGC of St. Louis provides a wide range of services to assist its members, as well as the students of CCC.

making a house than just throwing wood together,” Keys said. “I’ve had shop class twice since I’ve been here, but I wasn’t familiar with all the tools in the shop. After the playhouse, I really am [better prepared], because I have used almost every tool out there.” Keys is a junior who is planning to use the skills gained from CCC to assist him in becoming an engineer. “I took a blueprint class for two semesters and that definitely helped me; knowing how to use AutoCAD, then just having a construction class helps me with the whole basic fundamentals of con-struction,” Keys said. Students also take classes like shop, print reading, graphing and even entrepreneurship courses. Despite the need and demand for this great program for young students, CCC still has open slots for new students in the St. Louis area. To find out more information about the school, call (314) 588-9991, or log onto www.constructioncareerscenter.org.

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67, of Meridian, Idaho, the former president and majority stockholder of MarCon, Inc., was sentenced in February by U.S. District Judge B. Lynn Winmill to 84 months in prison followed by three years of supervised release for conspiracy, wire fraud and mail fraud, U.S. Attorney Wendy J. Olson and Assistant Attorney General for the Tax Division Kathryn Keneally announced. Martin was also sentenced to 24 months in prison for tax fraud and obstruction of justice followed by three years of supervised release. The sentences will run concurrent. Judge Winmill ordered Martin to pay restitution of $98,825.20 to the Internal Revenue Service and $32,575.28 to the Idaho DBE Program. She was also ordered to pay costs of prosecution in the amount of $22,859.60. The United States and the defendant entered into an agree-ment this week in which they stipulated that the correct for-feiture amount is $3,084,038.05. Martin paid the full amount via wire transfer to a U.S. Treasury account before sentencing. Martin was convicted by a federal jury on September 19, 2013, of 22 criminal counts, including four counts of filing false individual and corporate tax returns, two counts of con-spiracy to defraud the United States, five counts of wire fraud, five counts of mail fraud, one count of false statement, three counts of interstate transportation of property taken by fraud, one count of conspiracy to obstruct justice and one count of obstruction of justice. “Elaine Martin’s conviction, sentence and forfeiture of more than $3 million clearly demonstrates that fraud and misrepre-sentations to government programs is the wrong way to run a business,” said Olson. “This office, indeed the entire Depart-

ment of Justice, along with its law enforcement partners are committed to rooting out greed and dishonesty in govern-ment contracting. I commend the thorough efforts of the dedicated attorneys and agents involved in this case.”

Martin’s co-defendant, Darrell Swigert, 68, of Boise, a minority shareholder in MarCon, was found guilty of two counts of obstruction of justice and one count of conspiracy to obstruct justice. He was scheduled to be sentenced on March 19, 2014. During the 26-day trial, the jury heard evidence that as early as 1997, Martin concealed a portion of MarCon’s business income by diverting customer payments for the sales of used materials into a separate bank account. Martin did not tell MarCon’s external accountant about the bank account or the unreported sales, and in fact organized the company’s business affairs to help conceal these sales from the external accountant, such as by personally overseeing the sales and invoicing of used materials, deleting call logs for these sales, and tracking the sales using a separate set of books. The jury also heard that Martin boasted about her fail-ure to pay taxes on this income, referring to the separate bank account with the unre-ported income as a “slush fund.” When the IRS initiated a civil audit, Martin lied to the IRS revenue agent and told him that all business income

Court Orders Forfeiture of Over $3 Million in Fraud Proceeds

Treasure Valley Contractor Sentenced for Conspiracy, Wire Fraud and Tax Fraud

Elaine Martin,

was reported on MarCon’s tax returns. The evidence at trial, however, showed that neither MarCon nor Martin reported the income they received from the used material sales on their tax returns from 1997 through at least 2006. The jury also heard evidence during trial that as early as 2000, Martin submitted false and fraudulent applications to have her construction company, MarCon, admitted and/or remain in two different federally funded programs, the U.S. Small Business Administration (SBA) 8(a) Program, and the Department of Transportation Disadvantaged Business En-terprise (DBE) Program. Both programs are designed to help economically and socially disadvantaged businesses compete in the marketplace. To be admitted into the program, the owner/shareholder that qualifies as socially disadvantaged must also demonstrate economic disadvantage, in part by having a personal net worth below a certain statutory cap. According to evidence presented at trial, Martin took steps to artificially lower her personal net worth, such as by failing to report all of her income from MarCon, causing MarCon to pay for personal expenses such as renovations and landscap-ing for her home, and acquiring, holding and transferring assets into the names of nominees in order to appear to be economically disadvantaged. This allowed Martin’s construc-tion firm, MarCon, to qualify for the DBE and SBA 8(a) pro-grams. Martin also caused false and fraudulent tax returns to be filed for herself and MarCon, Inc., which did not report all of the income received by Martin or the company. The false

returns were submitted in support of MarCon’s applica-tions to the SBA 8(a) Program and DBE Programs for

Idaho and Utah, along with false personal financial statements. The government presented evidence

that Martin omitted, deleted, altered and mis-categorized entries in MarCon’s financial

books and records. Martin also concealed her role or relationship in other business entities that dealt with MarCon, Inc. The jury heard evidence that MarCon received more than $2.5 million in gov-ernment contracts based on the com-pany’s fraudulently obtained SBA 8(a)

status, and that MarCon received more than $15 million in

government

contracts based on the company’s

fraudulently obtained DBE status in the states of Idaho and Utah.

The government presented evidence that in order to impede an IRS audit of MarCon and criminal investigation into Martin, Martin and Swigert conspired to obstruct justice by fabricating documents and making false statements that sought to conceal the true nature, source, and extent of prop-erty belonging to Martin. “[This] sentence should be a warning to those who seek to gain preference for federal contracting opportunities through deceit and lies,” said Inspector General Peggy E. Gustafson of the Small Business Administration. “Those who take part in such activity will pay the price for their crimes. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their commitment to seek justice on behalf of the American taxpayer.” “Tax evasion is not a victimless crime,” said Stephen Boyd, IRS Criminal Investigation Special Agent in Charge for the State of Idaho. “Individuals who corruptly violate the law to further their business interests and intentionally evade paying their fair share of taxes undermine public confidence in our tax system and unfairly disadvantage businesses that play by the rules. As Martin and Swigert have discovered, operating out-side the law and failing to pay taxes have severe consequences.” “As evidenced by [the] sentencing, severe penalties await those that would seek to defraud DOT’s DBE Program,” said William Swallow, regional Special Agent-in-Charge of the DOT’s Office of Inspector General. “DBE fraud harms the integrity of the program and adversely impacts law-abiding, small business contractors trying to compete on a level play-ing field. Working with the Secretary of Transportation and other DOT leaders, and our law enforcement and prosecu-torial colleagues, we will continue to protect the taxpayers’ investment in our nation’s infrastructure from fraud, waste, abuse and violations of law.” The case was investigated by Internal Revenue Service-Criminal Investigation, Federal Bureau of Investigation, the Office of Inspector General for the U.S. Small Business Ad-ministration, and the Office of Inspector General for the U.S. Department of Transportation. The announcement was part of an effort by President Obama’s Financial Fraud Enforcement Task Force (FFETF), created in November 2009, to combat financial fraud crimes by waging aggressive, coordinated and proactive investiga-tions and prosecutions. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, the task force is the broadest coalition of law enforcement, investiga-tory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in



Many organizations claim to be strong advocates for woman- and minority-owned businesses. However, fewer can actually show the results of their advocacy efforts. The Airport Minority Advisory Council (AMAC) is one of those organizations. On April 1, 2014, more than 100 members and stakeholders of AMAC convened in Washington, DC with the goal of meeting with Capitol Hill legislators to advocate for the interests of Airport Concessions Disadvantaged Busi-ness Enterprises (ACDBEs). “Industry Day on Capitol Hill” is an annual event hosted by AMAC that provides disadvan-taged and small businesses, airport administrators, and major concessionaires the opportunity to speak with a unified voice to legislators about express collective concerns regarding the FAA ACDBE Program. To expand their reach and maximize contacts with legisla-tors, the 100-plus participants in the Industry Day program were divided into 12 groups based on their state of residency. This ensured that participants were meeting with representa-tives from their respective districts. The groups then split up and visited the offices of anywhere from four to eight congres-sional representatives to discuss the concerns of the group. At the end of the day, all of the groups reassembled to share the results of their meetings. AMAC plans to use this information to formulate the next steps to generate positive movement on the primary issues discussed on Capitol Hill.

AMAC approached the legislative day program with three primary objectives: First, to oppose cuts to the Airport Improvement Pro-gram (AIP), the main source of federal funding for airports to make capital improvements. Second, to support an increase to Passenger Facility Charges (PFCs) used to fund airport improvements, with the caveat that the federal DBE & ACDBE program be applied to PFC funding. Third, to recommend revisions to the ACDBE program to facilitate greater participation of DBE firms in the rental car industry.

The AIP is a $3.2 billion federal grant program that can cover 75 to 90 percent of an airport’s costs for most airfield capital improvements. Airports receiving AIP funding of more than $250,000 in any fiscal year are required to administer a DBE program in accordance with Title 49 of the Code of Federal Regulations, Part 23. This includes setting goals for the utili-zation of DBE and ACDBE firms in the engineering, con-struction and concessions programs. AMAC’s concern is that decreased AIP funding for airports will create less opportu-nity for DBEs to participate in airport programs and projects. The PFC program authorizes airports to implement a per passenger fee of up to $4.50 per flight. In 2013 alone, PFCs provided airports with a $2.8 billion funding stream. The PFC program is currently exempt from the federal DBE program, and therefore airports do not have to place DBE and ACDBE goals on programs and projects funded with PFC receipts. This current reality poses a serious threat, given that the White House administration’s proposed fiscal year 2015 budget greatly reduces AIP funding for airports, yet simultaneously allows airports to increase PFCs from $4.50 per passenger to $8.00 per passenger. While this proposal is potentially a net gain for major airports across the country, without DBE program requirements, this shift could lead to DBEs being shut out of opportunities at major airports.Finally, the current federal ACDBE program for car rental


Aviation

AMAC leaders gather on Capitol Hill for Industry Day, April 1st. [Courtesy of Captured by Kevin]

AMAC Industry Day Advocates for Small Businesses and DBEs

The Real Chow Baby at Hartsfield-Jackson Atlanta International Airport

HMSHost is the recipient of six Airport Revenue News Awards for Outstanding Food & Beverage Operator.

HMSHost and Chip Joyner team up to bring The Real Chow Baby to Hartsfield-Jackson Atlanta International Airport. A staple of the Atlanta restaurant scene since 2005, The Real Chow Baby partners with HMSHost to open its first concourse location at the world’s biggest airport. “HMSHost is a great company to work with. They were a mentor of mine for a number of years while I was coming up in the restaurant business. HMSHost has really been a fantastic partner,” says Chow Baby co-owner Chip Joyner. The Real Chow Baby offers a hearty menu of farm-fresh produce, meats and seasonal fish, sizzled in zesty Asian-inspired sauces. For more information, contact [email protected].

The Real Chow Baby co-owner Chip Joyner

www.hmshost.com

Our Recipe

team up with

for success:

Like

Chip Joyner

ACDBE Partners

Joyner_SM.indd 1 5/15/13 1:38 PM

concessions has faced significant challenges in creating op-portunities for ACDBE certified businesses. This is largely due to the car rental industry structure which consists of significant aggregate costs associated with operating a car rental business, and the vast portion of operating costs in the industry being for vehicle fleet purchases. These two factors hamper the industry from finding significant opportunities for ACDBE firms. AMAC has sought to address this issue by commissioning an industry work group of AMAC airport car rental representatives to design a comprehensive proposal to reform ACDBE and DBE program regulations to yield greater participation in airport car rental concessions. The work group completed its recommendations in 2013 and those recommendations were approved by AMAC’s Board of Direc-tors in December 2013. During the Industry Day program, AMAC representatives shared the recommendations with legislators to gain support for changes to the ACDBE pro-gram for car rental concessions.

The annual Industry Day Program made a powerful show-ing on Capitol Hill and was well received by many legislators. Some legislators have expressed interest in authoring legisla-tion to support AMAC’s issues, and others have voiced sup-port for the organization’s concerns. AMAC President Shelby M. Scales said: “Our initiative is to garner legislative support of a federally-funded impact study on the participation of DBE firms given the administration’s 2015 budget calls for AIP funding decrease of projects in large airports. Given the unofficial statistical DBE and ACDBE report provided by Mamie Mallory, FAA Assistant Administrator for the Office of Civil Rights, the current trends show decreasing DBE and ACDBE utilization and history has shown without regulatory requirements, recipients will garner little to no meaningful minority and women participation in procurement oppor-tunities. Our leadership is prioritizing strategic alliances that support DBE participation on all procurement opportunities including PFC-funded projects.” AMAC is also bringing these issues to local policymakers to bring about policies that will address funding issues while continuing to support greater opportunities for ACDBE and DBE firms in the aviation industry. These tangible results will be something AMAC can be proud of.AMAC Industry Day Advocates for Small Businesses and DBEs


L) In 2013, we held the first Civil Rights “boot camp” for FHWA Civil Rights Specialists since 1999. We can never perform enough training.3) We are aware of the ongoing investigation in Washington State regarding the Alaskan Way Via-duct project. What are some lessons learned that are important for DBE program administrators to understand?State DOTs must be diligent in selecting prime contractors to perform construction work. Prime contractors must abide by their contractual obligations to ensure fair and honest op-portunities for DBEs to compete. 4) What’s your vision for the role of your office go-ing forward?FHWA’s Office of Civil Rights is transforming itself into a policy implementation and guidance office. We are develop-ing new roles to provide support and guidance to the rest of the agency to ensure that state DOTs fully understand how to manage their respective Civil Rights programs. We continue to reorganize and hire talented staff, and continue to collabo-rate with our sister agencies within USDOT.5) How do you see the role of DBE Supportive Ser-vices in helping DBEs better compete for work on DOT-assisted projects?FHWA’s Office of Civil Rights is requiring state DOTs to de-velop business development programs to improve the quality of business analysis, training and opportunities for DBEs.6) How do you see your office increasing the ac-countability level of STAs with regard to DBE pro-gram areas such as compliance, good faith efforts and prompt payment since these are areas often cited by DBEs as problems in the program?With regard to the DBE program, there is no subject-matter expert better than Martha Kenley, FHWA’s national DBE program manager. Martha and her team are working hard to

ensure that all the agencies’ civil rights specialists fully un-derstand how to manage the work of external recipients. This includes performing compliance reviews, providing webinars to internal and external stakeholders and performing site visits to ensure the program is running efficiently.7) How is your office working to address the issues raised in the OIG’s recent investigation and rec-ommendations for the administration of the DBE Program?Under the leadership of Administrator Victor Mendez, FHWA was the first USDOT agency to develop an Action Plan in response to the DBE OIG Audit. We had already implemented many of the recommendations prior to the report’s release, but we continue to work with U.S. Transportation Secretary Foxx’s office and our sister agencies to improve the program.8) How does the future look for the DBE program over the next 3-5 years?We are very encouraged by the improvements we are mak-ing to the DBE program to ensure greater utilization; having states define success of their DBE programs and working to improve the viability of small business participation in the nation’s infrastructure.9) What other information would you like to share with stakeholders in the DBE program? For the DBE program to thrive, more capacity must be created for DBEs who are ready, willing and able to perform work in heavy highway. Utilization rates of DBEs must increase to ensure that more DBE firms have an opportunity to participate in infrastructure development. More opportunities must be created in the professional services side of the business. More scrutiny must be employed by state DOTs in certifying DBEs, along with improved training with metric-based out-comes. Also, DBEs must take advantage of the opportunities being provided by this federal program. The federal govern-ment can only do so much to create opportunities – DBEs must also help themselves by demonstrating the highest levels of integrity, professionalism, quality, value and endurance.

Pressing Forward: continued from page 13

Concessions Int’l: continued from page 21

H.J. Russell has transitioned all three divisions of his con-glomerate family business to his three children. The oldest (Major) leads CI, while her brothers H. Jerome Russell Jr. and Michael Russell lead the real estate development and construction company respectively. Major said, “We started the transition very deliberately when he resigned as CEO. He moved out of the building, although he has an office nearby. He still remains as chairman, but each year he is a little less

visible. However, he does come in occasionally for our quarter-ly financial meeting, and we still call upon him if we need him.” Making a short-term concession to gain a long-term benefit is the mark of a wise and savvy business person. Through patience, strong family values, integrity and ‘saving a penny,’ Russell and now his daughter Donata Russell Major have grown CI from a single location ACDBE partner, to one of the largest airport concessions operations in the United States.

averse. Many simply have a need to be liked by everyone, so they are unwilling to make difficult choices, even at the risk of hurting their businesses. Is it worth the risk of having substance-abusing or dishonest employees in your company? These are the employees who often take unplanned or extended absences. Not only do you assume more risk with these employees, but you have more costs associated with them. These costs may include tempo-rary workers, overtime, business disruption, lags in product delivery and customer satisfaction. Imagine how much your company could save if these hidden costs were reduced. The NIDA study concludes that employers who have imple-mented drug-free workplace programs have experienced:• improvements in morale and productivity• decreases in absenteeism• decreases in accidents• decreases in downtime• decreases in turnover, and • decreases in theft Remarkably, employers with longstanding programs report better health status among employees and family members and decreased use of medical benefits by these same groups,

potentially enabling them to qualify for lower premiums. Companies with drug-free workplace programs may also qualify for incentives, such as decreased costs for workers’ compensation and other kinds of insurance. With programs geared to the health and well-being of the workforce, small businesses can now more easily reduce risk and concentrate on business growth with pre- and post-em-ployment screenings.

Are You Protected?: continued from page 17

Partnering Opportunities�Concrete,�Masonry,�and�PavingDesign/ConsultingElectrical�Work/UtilitiesFencing�and�RailingsMaintenance�of�TrafficMarine�ServicesQuality�ControlServices�and�SuppliesSurveyingTruckingMiscellaneous�Building�and�Bridge�DemolitionAnd�many�more!

The Goethals Bridge Replacement Project�is�a�design-build�

project�for�the�Port�Authority�of�New�York�&�New�Jersey�

(the�Authority).�The�project�will�replace�the�existing�Goethals�

Bridge�which�spans�the�Arthur�Kill�River�on�I-278�connecting�

Elizabeth,�New�Jersey�and�Staten�Island,�New�York.�

Kiewit-Weeks-Massman,�AJV�(KWM)�has�been�selected�by�

the�Authority�to�design�and�build�the�new�Goethals�Bridge.

Diversity�Contract�Manager,�470�Chestnut�Ridge�Road,�Woodcliff�Lake,�NJ�07677(201)�571-2571��[email protected]�Kiewit-Weeks-Massman,�AJV�is�An�Equal�Opportunity�Employer

If your DBE firm would like to apply to participate, please use our website as a resource, www.goethals-kwm.com.

GOETHALS BRIDGE — CONSTRUCTION PARTNERING OPPORTUNITIES

Fraud: continued from page 25

facilitating increased investigation and prosecution of finan-cial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting out-reach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.

Used by permission of U.S Dept of Justice, U.S. Attorney’s Office – District of Idaho. 2014

Transit


Many DBE entrepreneurs and business development pro-fessionals know that effective mentoring programs can often seem just like programs offering grant funding to small busi-nesses – many have heard of them, but few have seen them actually work as advertised. Although the federal regulations for the DBE program in 49 CFR Part 26 provide the basic guidelines for establishing a Mentor – Protégé Program, the “devil is in the details” in creating a program that truly

achieves the goal of helping DBEs develop capacity and succeed as contractors. This devil in the details often raises its horns in relation to creating mutually beneficial, ethical and effective mentoring rela-tionships between DBE firms and prime contractors. This is because a DBE firm often aspires to become a prime contractor; therefore a prime contractor has little incentive to participate fully in develop-ing a future competitor—a true conflict of interest for all but the most secure large contractors. But the Metropolitan Trans-portation Authority’s (MTA) Small Business Development Program has fashioned an approach to help small and disadvantaged firms grow capacity and succeed as MTA contractors. In 2010, MTA launched a comprehensive developmental program for small businesses that includes an innovative approach to providing mentoring to emerging contractors seeking

to do business with MTA. The innovative approach involves MTA providing direct mentoring to firms, instead of relying on large contractors to provide mentoring services. MTA’s Small Business Mentoring Program (SBMP) and Small Business Federal Program (SBFP) allow firms to pursue smaller sized prime contracts while simultaneously learning MTA’s processes and systems to become a larger contractor in the future. In addition, these two mentoring programs

include rigid application requirements, manda-tory classroom training, bonding assistance and a capital access program administered by Carver Federal Saving Bank (the

MTA contractors review nightly plans on the Second Avenue Subway’s 86th Street Cavern. (Courtesy of MTA)

MTA Development Programs Build DBE Capacity

agencies move more than 8.5 million customers per day (2.6 billion rail and bus cus-tomers a year) and employs around 69,000 workers. An organization of this size requires a hefty capital plan to maintain operations. To this end, MTA’s five- year capital plan for 2015-2019 is estimated at $36 billion. Garner said, “We have the responsibility to ensure that the taxpayer dollars spent on capital projects are done so in an inclusive manner. We have allocated $490 million to our Small Business Development Programs during the next five years of our capital plan.” This commitment has helped The Urban Group, a certi-fied DBE general contractor based in Woodhaven, Queens, increase its contracting opportunities with MTA. The Urban

MTA strives to ensure that business opportunities extend to all members of the community. (Courtesy of MTA)

largest African-American owned bank in the U. S.) to help small firms develop the complete capacity to perform as MTA contractors in the future. “We view these programs as an investment. By creating a larger and more diverse pool of contractors who can com-plete MTA projects, we create cost savings, jobs and eco-nomic development in our region,” said MTA Chief Diver-sity Officer Michael J. Garner, MBA. MTA’s Small Business Development Programs began in 2010 when former Governor David Patterson signed legisla-tion to establish the program for projects funded by the State of New York. This legislation led to the formation of the SBMP that allows state-certified small businesses to compete for projects up to $1 million where bonding is waived as the result of an MTA-sponsored internal bonding program. The successful implementation of the SBMP led to the develop-

ment of the Small Business Federal Program (SBFP). Per the DBE regulations, this program required approval from the Federal Transit Authority, which was granted to MTA in 2012, marking the first federal mentoring pro-gram approved by the FTA. The MTA has responsi-bility for administering a unified mass transportation policy for the New York metropolitan area, includ-ing all five boroughs of New York City and the suburban counties of Dutchess, Nassau, Orange, Putnam, Rockland, Suffolk and Westchester—all of which together are the “Metropolitan Commuter Transportation District (MCTD).” The MTA is the largest regional public transportation provider in the Western Hemisphere. Its agencies serve a region of approximately 14.6 million people spread over 5,000 square miles (13,000 km²) in 12 New York counties and two in Connecticut. MTA

Ken Bharatlall, President and CEO of The Urban Group has seen his company double in size during his participation in MTA’s Small Business Federal Program. (Courtesy of Sacks Communications)

The program has been a major success for both MTA and the more than 150 pre-qualified Small Business Development Program contractors enrolled in the program. Since 2010, 91 projects have been awarded totaling $52.8 million; 59 projects (64 percent) were awarded below the engineer’s estimate for the project, yielding $4.6 million in cost savings. In addition, 75 percent of the 91 projects were awarded to New York State certified MWBE or MTA-certified DBE firms. “We couldn’t believe it, it was amazing. Not only are you making money, but you are learning how to do different projects,” said Hely Duarte, president of Zion Contracting of Hempstead, NY.The MTA Small Business Development Program has received numerous awards for its innovative approaches and accom-plishments to foster small business growth and inclusion in the transportation industry. The program itself has been recognized by the New York & New Jersey Minority Sup-plier Development Council. In spring 2012, The U.S. Small Business Administration named Michael J. Garner as Minor-ity Small Business Champion of 2012 for New York State, in large part for his work assisting in the creation of MTA’s Small Business Development Program.

Group has won two contracts in the SBFP totaling $3.4 mil-lion. The first is a $1.9 million project to build facilities in Grand Central Terminal that is a part of the East Side Access megaproject. Urban Group workers will demolish an existing steel gantry crane and wall, install underground utilities and an underground concrete reinforced air duct, and build a con-crete reinforced manhole. The second project is a $1.5 million job to install flood barriers in subway stations as a result of the Hurricane Sandy storm that hit the East Coast in 2012. Ken Bharatlall, president and CEO of The Urban Group, said: “I see a real big potential of bidding more work with MTA, and performing more work. This program carves out small contracts for us to bid on. Our first project was only $1.9 million, but we went through the same process as if it was a larger project. We learned MTA’s processes regarding quality control, safety implementation, submittal processes and change order management, so now we understand better how the agency works. We have even used what we have learned on other projects. This program has helped us tremendously. In 2011 we made $5 million in revenues, but our revenues were $16.5 million in 2013.”

ZOBO All Natural Hibiscus Drink and ZOBO All Natural Ginger Mint TeaZOBO All Natural Hibiscus Drink and ZOBO All Natural Ginger Mint Tea


are won on price alone, getting work with prime contractors and franchise holders at the airport level is won first through established relationships, a commitment to service and reli-ability that includes best pricing.” As an example of Wendt’s customer service, when Louisville International Airport’s Minority compliance audit found franchise firms deficit in meeting their ACDBE goals, DBE program administrators provided concessionaires with a list of certified ACDBEs. One franchisee, a taxi firm, reached out to Wendt, explained their mandate and asked for help. Work-ing together, Wendt identified a number of spend areas that were less obvious—yet necessary—and began the sourcing process. As the relationship proved itself, additional lines of business connected to the taxi company’s parent firm came on board. Wendt helped connect the taxi franchise with ad-ditional DBE companies for projects outside of their wheel-house like parking lot repaving and striping. As a result, the taxi company is now compliant, has found not just a reliable resource, but a partner that consults on long-

term goals, provides best pricing and sources items in the local community, thereby contrib-uting to the economic vitality of the region. Wendt Productions is currently DBE and ACDBE certified in 17 states, and maintains certification with the Women’s Business

Enterprise National Council and the federal government. In addition to maintaining these certifications, Wendt has become a very active advocate for DBEs and businesses owned by women and minorities. Wendt said: “Although I sought certification purely as a business strategy, I’ve quickly become an advocate for small businesses in the process. I am a member of the AMAC Legislative Committee, and serve as

the Small Business Liaison to the US Department of Trans-portation for the US Women’s Chamber of Commerce. Even though women represent more than half of the population and own 30 percent of small busi-nesses, less than 5 percent of federal contracts are awarded to WOSB firms of all ethnici-ties. The ACDBE program is helping to level the playing field and we encourage the White House to strengthen the compliance goals.”

Susan Wendt, President, Wendt Productions

Susan Wendt, president of Wendt Productions saw an ominous trend on the horizon at the time of the recession of 2007-2009. Her 20-year-old marine industry business needed to make a change, and fast. The recreational boating and marine industry was taking a severe hit with the eco-nomic decline, and Wendt needed a new line of business for

the company. “I am a trends junkie, and I remember listening to economists talk about the economy and I thought that the only organizations spend-ing money during the recession would be

government, so we took our experience in strategic sourcing and started to pursue government contracts,” Wendt said. This strategic change led Wendt Productions to diversify from primarily serving the marine industry, to selling PPE (Personal Protective Equipment), informa-tion technology hardware, electronics and strategic sourcing services to government entities. To help facilitate this diversifica-tion strategy, Wendt Productions received certification in the State of Florida’s Minor-ity/Women Business Enterprise Program; and also in the fed-eral Woman Owned Small Business Program (WOSB) and the Economically Disadvantaged Woman Owned Small Busi-ness Program (EDWOSB). Wendt used these certifications to bid on state and federal contracts and sell to the government. It was also during this time that Wendt learned about the USDOT Disadvantaged Business Enterprise program from Bonnie Yauilla, DBE Manager at the Tampa International Air-port. “She kept telling me I should definitely fill out the DBE application, so I finally completed the application and got cer-tified in the Florida Unified Certification Program in 2011,” Wendt said. After receiving its DBE certification, Wendt Productions added another line of business to assist prime contractors in meeting DBE goals supplying PPE, construc-tion materials and other expendables as a DBE supplier. “We supply things like respirators, hard hats, harnesses, first-aid kits, floating buoys, lights for barges and treatments for poison ivy. We have a lot of experience in strategic sourcing from our experience in marine industry, retail acquisition, warehousing and shipping, and we have simply applied the experience to serving the transportation industry,” Wendt said. She credits her company’s success as a DBE/ACDBE firm to their ability to understand customer needs and to build-ing lasting relationships. “While some government level bids

“She kept telling me I should definitely fill out the DBE application.”

Wendt Productions SEES A TREND IN

DBE Opportunities

Prepare. Promote. Advocate. Engage.

For more information or to register

visit us online at www.amac-org.com

Special events at this year’s conference

THE ANNUAL AMAC AIRPORT BUSINESS DIVERSITY CONFERNCEJune 8-10, 2014

For more information or to register visit us online at www.amac-org.com

The Airport Minority Advisory Council (AMAC) Business Diversity Conference offers airports, the federal government, corporations and entrepreneurs the opportunity to cultivate new relationships and expand their national presence through three days of engaging and relevant educational and networking events.

Proceeds from the conference go toward advancing AMAC’s goal to increase diversity and eliminate barriers facing minority-owned, woman-owned, and disadvantaged businesses in the aviation industry through advocacy, business and professional development, and education.

DBE/ACDBE Certification Training for DBELOs and ACDBELOsSaturday, June 7th The FAA Office of Civil Rights is offering a FREE half-day training program on the basics of certification for DBELO's and ACDBELO's

Celebrating Women in Aviation - BreakfastSunday, June 8th The Celebrating Women in Aviation event is designed to foster, promote and applaud the success of women in aviation-related enterprise. This unique event offers business owners, airports, government and corporations the opportunity to network and hear about the personal and professional experiences of other women in the business, how they got there, and what it takes to excel in the industry.

Project LIFT - LuncheonTuesday, June 10th Project LIFT is an all-inclusive, comprehensive program designed to raise the professional standard and improve the performance level of minorities and women in the aviation and aerospace industry.

AMAC After DarkMonday, June 9th AMAC A�er Dark at the Airport Business Diversity Conference offers AMAC Conference a�endees a place to unwind and enjoy top notch entertainment. The sole purpose of this event is to raise funds for the AMAC Educational and Scholarship Program. All proceeds donated during the AMAC A�er Dark Event go directly to (AMACESP).

Bill Walker Memorial Golf TournamentSaturday, June 7thJoin us for the 2014 Bill Walker Memorial Golf Tournament on June 7, 2014 at the beautiful Green Valley Ranch, Denver, Colorado. This exciting event benefits the AMACESP Student Scholarship Program.

AIRPORT MINORITY ADVISORY COUNCIL

Benefits of BondingPayment Assurance | Competitive Advantage | Fast-Track DBE Bonding Programs

Surety Bond Claim Services | Third-Party Project Analysis

LOCATION

Spokane, Wash & Boise IdahoBaltimore, MDShoreview, MNMiami, FLNew York, NYOrlando, FLTopeka, KS

SBTRC

Northwest RegionMid AtlanticCentralSoutheastern RegionNortheast RegionSoutheastern RegionCentral Region

EVENT

Program Kick-OffBEP PlanningBEP Kick OffBEP Kick OffBEP Kick OffBEP Kick OffBEP Kick Off

DATE

April 24, 2014Fall 2014Fall 2014TBDFall 2014Winter 2014Winter 2014

2014 PROPOSED SCHEDULE

http://www.dot.gov/osdbu/financial-assistance/bonding-education/bonding-education-program

Program Participant Benefits

· Learn to run a profitable business· Individualized prescriptive plan for business development· One-on-one counseling hours· Access to technical, financial, and managerial assistance· Increased access to prime contractors and procurement opportunities· Verified as capable of fulfilling the obligations of a contract· Claims services· Economic empowerment· Job creation

USDOT is the only federal agency that has direct procurement and subcontracting procurement opportunities for small, emerging, contractors on the nation’s infrastructure in all modes of transportation. Partnering with local transportation project stakeholders, the BEP is designed to tie the participant’s bondability to the procurement opportunity.

BONDING EDUCATION PROGRAMIn Partnership with The Surety and Fidelity Association of America

HELPING SMALL BUSINESSES AND DBEs BECOME BOND READY

BONDING EDUCATION PROGRAM

Calendar of Events

Airport Minority Advisory Council (AMAC)Airport Business Diversity ConferenceJune 8-10, 2014, Denver, COwww.amac-org.com

National Association of Minority Contractors (NAMC)45th National ConferenceJune 18-20, 2014, National Harbor, MDwww.namcnational.org

Conference of Minority Transportation Officials (COMTO)43rd National Meeting & Training ConferenceJuly 12-15, 2014, Atlanta, GAwww.comto.org

Minority Business Development Agency (MBDA)National Minority Enterprise Development WeekJuly 31-August 1, 2014, Washington, DCwww.mbda.gov

National Association of Women in Construction (NAWIC)59th Annual Meeting & Education ConferenceSeptember 3-6, 2014, Indianapolis, INwww.nawic.org

American Contract Compliance Association (ACCA)National Training InstituteSeptember 207, 2014, San Jose, CAwww.accaweb.org

National Association of Women Business Owners (NAWBO)2014 Women’s Business ConferenceSeptember 8-10, 2014, Indianapolis, INWww.nawbo.org

National Minority Supplier Development Council (NMSDC)Conference and Business Opportunity FairNovember 2-5, 2014, Orlando, FLwww.nmsdc.org

the newly invented High-Speed Exit Way, 30 degrees off the runway center line; similar to an Interstate Highway off-ramp designed for fast-moving aircraft. Lewis said he spent a lot of time studying other patents and inventions to ensure there was nothing in the marketplace similar to his idea. Finding none, he called an intellectual property officer to learn more about applying for a patent to protect his idea. Although the patent process can be expensive and time-consuming, Lewis said he considered the pros and cons, but followed some very good professional advice to proceed. In essence, he was asked, “If you don’t take a chance on yourself, who else will take a chance on you?” In Septem-ber 2011, Lewis filed for a patent, which was then issued in December 2012 and granted in January 2013. In January 2014, the Federal Aviation Administration (FAA) rolled out new rules for air traffic controllers designed to reduce the risk of airplane collisions by staggering the timing between takeoffs and landings. According to a report by the Wall Street Journal, by allowing more space and time between planes taking off on one runway and planes arriving on an-other, the potential for mid-air collisions drops significantly; the result of an investigation of five near-miss incidents over the past several years. The ruling increases safety, but also has the potential to increase flight delays during peak travel times, a frequent complaint with airline passengers and frequent flyers. The LEWIS New Generation Smart Runway System alleviates those concerns.

Based on industry research and conservative estimates, by streamlining runway operations and decreasing delays, Lewis’ 21st Century Smart Runway invention has the ability to sup-port 15 more flights per hour or 150 flights per day, poten-tially accommodating more than 20,000 daily airline pas-sengers, generating more than $1.1 million per day for each airport. The LEWIS general design system can be applied and customized for individual airports with minimal construction closings and downtime. Lewis said, “This invention provides an alternative to airports that don’t have the finances to build a new runway.” At any moment, Lewis expects his phone to ring with either the US Department of Transportation or the FAA on the oth-er end of the line, asking to apply the technology and innova-tion of his patented LEWIS—21st Century New Generation Smart Runway System to: increase runway safety, decrease runway traffic, improve arrival/departure efficiencies, and increase airline capacity and revenue. Lewis is confident the call will come due to the new FAA regulations and the fact that any high-speed airport off-ramp technology is a viola-tion of his patent from the U.S. Patent and Trademark Office. Lewis said he envisions this innovation to achieve worldwide use in 15 years, marking a global transformation in aviation. “A patent brings something out of you that makes you com-mit to yourself,” Lewis said. “We’re opening the door for a tremendous amount of people—particularly minorities—to be involved in aviation.”

Lewis: continued from page 15

• Disparity and Availability Studies• Review, Design and Implementation of Disadvantaged/Minority/Women/Small /Local Business Programs• Litigation and Expert Witness Services• Contracting Fraud Detection and Evaluation• Community Benefits Agreements and Project Labor Agreements• Trainings and Presentations

YOUR EXPERT ON AFFIRMATIVE ACTION AND CONTRACT COMPLIANCE

Colette Holt & AssociatesAttorney at Law

3350 Brunell DriveOakland, CA 94602Telephone - (773)-255-6844Email - [email protected]://twitter.com/mwbelaw

Colette Holt & Associates

43rd National Meeting & Training Conference

Atlanta Marriott Marquis265 Peachtree Center Avenue

Atlanta, GA 30303

The Movement Continues: Developing Leaders & Building Historically Underutilized Businesses

Saturday, July 12–Tuesday, July 15, 2014

Conference Of Minority Transportation Officials

Atlanta

To register, or for more details, please visit us at www.comto.org

CONCESSIONS INTERNATIONALINSPIRED CONCEPTS GENUINE PARTNERS

Contact LeMonica Hakeem, Vice President of Business Development at 404-681-0300 or email: [email protected].

www.cintl.com

Proud members of the minority community, CI started as a DBE in 1979. Having graduated two decades ago, we would like to thank our ACDBE Partners for their hard work and support, which is so critical to our continued success. We are more committed than ever to creating meaningful, lasting partnerships with women and minority-owned businesses.

American DBE Magazine Spring 2014

Documents

Transcript of American DBE Magazine Spring 2014