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Metro Disparity Study


Overview

The Final Report is now available; click on the Final Report tab for details.

2012 Disparity Study Update

The purpose of this 2012 Study Update is to determine if there is a disparity between the number of disadvantaged, minority owned, and women owned businesses within the local market area that are ready, willing, and able to provide construction, architecture and engineering, professional services, and goods and other services, and the same number of business types that are actually participating in these same types of contracts.

We encourage you to check this site for updates on progress related to the 2012 Study Update timeline, milestones achieved, media releases, and announcements to the Public Hearing(s) once the draft 2012 Study Update is complete and is available for public comments.

Business Survey

Anyone interested in actively participating or assisting Metro and its Disparity Study Consultant in the completion of the Study should complete the Business Survey. You can also elect to provide further input by volunteering to interview with Metro’s consultant about your experiences with our contracting practices.

Disparity Study Update Consultant

Metro has contracted with Mason Tillman Associates, Ltd. (MTA) to conduct the Study of four industries: construction, architecture and engineering, professional services, and goods and other services. MTA is a public policy research and public relations company located in the Oakland, California. The firm has conducted over 108 studies since 1990, including studies for the counties of Baltimore and Montgomery and for the District of Columbia. MTA will utilize locally-based MBE firms to assist in conducting the Study.

Contact Mason Tillman Associates, Ltd. at 213.947.1695, or by e-mail at LAMetroDisparityStudy@mtaltd.com


Final Report

Full Final Report 

Please take time to review the Metro Disparity Study

Executive Summary

The Executive Summary presents an overview of the findings from the Los Angeles County Metropolitan Transportation Authority’s Disparity Study. It summarizes the key statistical findings from the Prime Contractor Utilization Analysis, Subcontractor Utilization Analysis, Market Area Analysis, Prime and Subcontractor Availability Analysis, Regression Analysis and Disparity Analysis. The Executive Summary also provides a brief review of the Anecdotal Analysis and presents the Race and Gender-Neutral Recommendations.

Chapter Document Description
Chapter 1 Legal Analysis Case law applicable to business affirmative action programs and the methodology based on those cases required for the Study.
Chapter 2 Contracting and Procurement Policies Metro’s contracting and procurement practices.
Chapter 3 Prime Contractor Utilization Analysis Distribution of prime contracts by industry, ethnicity, and gender.
Chapter 4 Subcontractor Utilization Analysis Distribution of subcontracts by industry, ethnicity, and gender.
Chapter 5 Market Area Analysis Legal basis for geographical market area determination and defines Metro’s market area.
Chapter 6 Prime and Subcontractor Availability Analysis Distribution of available businesses in Metro’s market area.
Chapter 7 Regression and Private Sector Analysis Examination of whether there are private sector economic indicators of discrimination in Metro’s market area that could impact the formation and development of DBEs.
Chapter 8 Anecdotal Analysis Business community’s perceptions of barriers encountered in contracting or attempting to contract with Metro.
Chapter 9 Disparity Analysis Contractor utilization compared to the contractor availability by industry and DBE status and determines whether the comparison is statistically significant.
Chapter 10 Recommendations Race and gender neutral remedies to enhance Metro’s DBE Program and its contracting with DBEs and other small businesses.
Appendix A & B Overall DBE Goal Setting Report
 

Meetings

Public Input: Metro Disparity Study

Metro held public hearings in spring 2013 to receive input on the Draft Disparity Study examining its contracting practices in construction, architecture and engineering, miscellaneous and other professional services, and goods and other services as it relates to Disadvantaged Business Enterprises (DBEs). The study included experiences of DBEs and small businesses seeking work with Metro and statistical findings on whether or not there was evidence of discrimination based on race, gender or ethnicity in the transportation contracting industry. The comments received on the Disparity Study will be considered when implementing Metro’s Federal DBE Program on Federal Transit Administration-funded contracts.

Objective

The hearings offered vendors, contractors, industry representatives, and others the opportunity to provide personal testimony and accounts of experiences and other information related to operation of the DBE program, contracting with Metro, access to capital, bonding and insurance and any difficulties or barriers faced seeking public contracts in the transportation contracting industry. The public was invited and encouraged to attend and participate by giving testimony:

Thursday, February 7, 2013
Transportation Business Advisory Council Meeting
9:30am – 11:30am 
Metro Headquarters Building ($6 parking fee)
Metro Board Room, 3rd Floor
One Gateway Plaza
Los Angeles, CA 90012

Thursday, February 7, 2013
6:00pm
Metro Headquarters Building ($6 parking fee)
Metro Board Room, 3rd Floor
One Gateway Plaza
Los Angeles, CA 90012

Thursday, February 21, 2013
Executive Management and Audit Committee Meeting
11:30am
Metro Headquarters Building ($6 parking fee)
Metro Board Room, 3rd Floor 
One Gateway Plaza
Los Angeles, CA 90012

Tuesday, March 19, 2013
6:00 pm
Metro Headquarters Building ($6 parking fee)
Metro Board Room, 3rd Floor
One gateway Plaza
Los Angeles, CA 90012

The public was encouraged to view and provide testimony on the disparity study report for 60 days. Testimony received became part of public record for this study.

The public comment period ended at 5:00 p.m. on March 19, 2013.


FAQ's

Frequently Asked Questions

What is a Disparity Study?

A Disparity Study is an evaluation of the procurement and contracting practices of government agencies, particularly their use of disadvantaged, minority-owned, and women-owned business enterprises.

Which agencies are participating in the Study?

The agency participating in the Study is the Los Angeles County Metropolitan Transportation Authority (Metro).

Who is conducting the Study?

Mason Tillman Associates, Ltd., a national expert in conducting disparity studies based in Oakland, California, is conducting the Study.

Who is managing the Study?

Metro’s project manager is:

Tashai R. Smith
Director, Small Business Programs
Diversity & Economic Opportunity Department
Metro
One Gateway Plaza
Los Angeles, CA 90012
Direct: 213.922.2128
Fax: 213.922.7660
Email: smitht@metro.net

What is the purpose of the Study?

The purpose of this Study is to determine if there is a disparity between the number of disadvantaged, minority-owned, and women-owned businesses within the local market area that are ready, willing, and able to provide construction services, architecture and engineering, other professional services, and goods and other services, and the number of these same business types that are actually participating in these same types of contracts.

This Study is an update of a previous Metro Disparity Study.

Why did Metro decide to conduct the Study?

Metro decided to conduct a Disparity Study to accomplish the following:

  • Determine whether Metro is either an active or passive participant in discrimination in contracting for construction, architectural and engineering, other professional services and goods and other service contracts awarded by Metro
  • Identify best practices that will help Metro enhance its Disadvantaged Business Enterprise Program  to stimulate economic growth for local businesses
  • Increase participation of disadvantaged, minority-owned, and women-owned business enterprises in Metro contracts
  • Promote a sound fiduciary relationship with local businesses
  • Reinforce social responsibility toward the local business community
  • Comply with the United States Department of Transportation’s Disadvantaged Business Enterprise Program requirements

How does Metro benefit from a Disparity Study?

There are many benefits of a Study. The three principal benefits for Metro are:

  • Identifying best practices to improve Metro’s contracting process
  • Increasing number of bidders for Metro contracts
  • Lowering Metro’s procurement costs

What guidelines exist to help direct the Study?

The Study will be guided by the United States Supreme Court’s 1989 decision in City of Richmond v. Croson J.A. Croson Co., 488 U.S. 469 (1989) and subsequent related cases.

The Study will also be guided by the United States Title 49 Code of Federal Regulations Part 26.

How will Metro identify available businesses?

Metro and their consultant, Mason Tillman, will conduct a broad-based community outreach program and use a thorough data collection process. Metro’s contract records, certification lists, and trade and professional association lists will help identify businesses that are available. In addition, Metro will utilize business lists from other governmental agencies.

What industries are being studied and what period is being studied?

The industries being studied include construction, architectural and engineering, other professional services, and goods and other services. The Study Period is January 1, 2008 through December 31, 2010.

How can local business owners get involved?

Local business owners can get involved in many ways, such as the following:

  • Completing a business survey
  • Participating in a telephone interview to share their experiences
  • Providing membership lists from local business associations

Who should business owners contact to get additional information?

Contact Mason Tillman Associates, Ltd. at 213.947.1695, by e-mail at LAMetroDisparityStudy@mtaltd.com

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Metro values your involvement and welcomes all questions:

Tashai R. Smith
Project Manager
Tel: 213.922.2128
EmailSmithT@metro.net

For more information,
please visit Mason Tillman Associates.


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