S eptember 2 8 , 1994 • T he P ortland O bserver P age C 4 Why Johnnie Black contractor still can’t read. by J ames L. P osey O f course its noi about a Black contractors ability to read books per se, but more about his or her inability to read the compomising hand writ ing on the walls, which lessen their ability to perform largely as truely black independent economic agents in community commerce. This week is suppose to promote the success of minority businesses, but there is a penetrating irony in how success in measured and by whom. Isam inority (Black) contractor/business success ful when they accept contracts know ing full well that majority o f benefits will be enjoyed primarily by those outside o f the minority community? Is itasuccess fora minority contractor to maintain the same pattern o f discrimi nation as his white counterparts, hir ing everybody except the Brothers? In case nobody has noticed, there is consistent pattern o f failure by Af rican American contractors that get camouflaged about this time every year. W ho will be the chosen one this year? They look good on the outside, adored with glamorize contracts, but they are wormy on the inside, full of holes that are eventually aired out and finally hastens the collapse. This is not just another issue of abuse and misuse of resources or op portunities, but a fundamental ques tion as to whether the economic con dition of African Americans will ever change for the better. W hile there is certainly a need to celebrate legiti mate success, there is no way to make appreciable change if there is this continuous effort to shade the truth about the real condition o f African American contractors and businesses in general. And because of ignorance and a tendency to settle for political solutions rather than thoughtful re genitive corrective hard work, the conditions are made worst by the very forces who are charge to help. As a consequence, so many fake black faced contractors who are re warded for selling out their own com munities ultimately wind up on scrap heap ahead of the rest of crowd. The atmosphere for this sort of destructive activity persist and there are specific examples close to home, which is what precipitated the follow ing open letter to a friendly and con- scious city Commissioner who con trols access to one of the most lucrative projects for construction con tracts, the Combined Sewer Overflow project (CSO): An open letter to C om m issioner Mike Lindberg: D ear C o m m issio n e r M ike Lindberg: I finally found some time to relay the concerns my company, Work Horse Construction, experienced in the re placement bidding process on the Headworks Columbia Waste Water Treatment Plant a few months ago. I have also attempted to address my decision not to accepta proposed time- materials-plus contract arrangement with Contractors, Inc. As you well know, and contrary to all the effort to design and promote the bid specifications to achieve op portunities for Northeast m inority resi den ts, the projec t was not successful in this regards. This is a fact in spite of the well intended efforts o f Bureau of Environmental Services (BES) and other city personnel. Indeed, a close evaluation of value elements in each subcontract will reveal that, relative to the overall contract dollar amount, very few dollars will actually be re tained by Black and other minority subcontractors and workers residing in North/Northeast Portland. If I could point to one key factor having an adverse impact on this pro cess, it would be the degree o f inexpe rience and nativity on the part of program staff responsible for minor ity contracting issues. In other words, you are not going to get the intended results until you employ individuals who really know what they are doing in this area. As you know, my company was not able to obtain any reasonable sub contracting work with Contractors, Inc. during the formal bidding pro cess for a number o f reasons. Conse quently, in my opinion, the subse quent efforts to workout a deal repre sented a subordinate level of commit ment. W ith regards to the time-mate- rials-plus proposed contract with Contractors, Inc., we felt it was not in my best interest to accept their arrangem ent. I believe it did not represent real profit, control of the work elem ents or worthwhile busi ness experience. Additionally, al though it was actually endorsed by BES staff, the arrangement had too many characteristics o f a classic “fronting” operation designed spe cifically just to satisfy DBE goals. And while C ontractors, Inc. may not have had any intentions o f fostering that kind o f activity, the results were the same. Finally, I know this situation and m any others like it epitomizes why there are so few adequately- prepared, legitimate African-Ameri can and other minority contractors in the industry today. There is a repetitive history o f minority con tractors who have been so desperate they are w illing to accept contract arrangem ents which deny them any real profitability and qualifying ex perience. Unfortunate the city and many other agencies have been more than accom m odating in these ar rangements. M oreover, these programs have categorically been designed to re- ward both prime contractors and disadvantage businesses willing to exploit the intended purpose o f these programs for the easy dollars. Ironi cally, this creates an entire system of factorsand practices working at cross purposes, assuring frustration and ultimately failure. It becomes a testimony to fail ure every time a contractor is awarded a city contract below market rates in the name o f the low-bidding pro cess. This inherently shifts the eco nomic liabilities dis-proportionately to the most vulnerable o f all the entities involved: the minority sub contractor. Predictably, these situa tions continue to erect significant barriers to real progress and explain in part why there are so few people of color working in the construction industry as skilled workers, project managers, estimators, superinten dents, etc, etc. Work Horse is one of only a few minority companies conscious of this long history of abuse and misuse of these disadvantage business programs. And, I am not willing to contribute to the program’s demise. Minority Contractors Hold Conference / * The National A ssociation O f Minority Contractors (NAMC), The Nation’s Leading Advocate For M i nority Contracting Issues, Recently Held Its 25th Anniversary Confer ence In Oakland, California. During This Landmark O ccasio n N A M C ’s 1994 Issue B riefs A nd P o sitio n Papers W ere P re se n te d . T he P o sition Papers A re By N o M eans Inten d ed to “ F re e z e ” N A M C ’s V iew s O n A n Is s u e , B u t A re R ather In ten d ed T o See O ut A C o m p re h e n s iv e V ie w p o in t To L et O th ers know W h ere T h e A s so c ia tio n S ta n d s.W h a t F o llo w s Is A C o m p ila tio n O f N A M C ’s 1994 Issu e B rie fs A nd T h re e Position pap ers O n T h ree O f The Issues: 1994 Issues A nd P o sitio n s Sum m ary 1. A ccess to C a p ita l N A M C b eliev es the tim e is rip e for ren ew in g c o n c e rte d C o n g ressional a tte n tio n to th e issue o f access to ca p ita l for m in o rity - ow ned b u sin e sse s. W e b eliev e th at resu lts at the fe d e ra l level w ill do m uch to ste e r sta te le g is la to rs in to m a k in g a p p ro p ria te reform s in th e in te re st o f sm all and m in o rity -o w n ed b u sin esses. A key fo cu s o f o u r le g isla tiv e e ffo rts in 1994 w ill c o n tin u e to be in the area o f co m m u n ity d e v elo p m en t, b e g in n in g w ith the full support o f in itia tiv e s in C o n g re ss to p ro m o te C o m m u n ity D evelopm ent B anks and e n c o u r age lending institu tio n s to c o m p ly w ith the C om m u n ity R ein vestm ent A ct (C R A ). 2. A ffirm ative A ction: C ity o f richm ond v. J.A . C roson Co. N A M C supports con tin u in g effo rts across the U .S . to v a li d a te M in o rity B u sin e ss E n te r p rise (M B E ) u tilizatio n program s as called for under R ichm ond v. C ro so n . In p a rtic u la r, we su p po rt ongoing e ffo rts in c o n d u c t ing d isparity studies as a m eans of verifying p ast discrim ination in localities having or planning to have MBE utilization programs. We also support federal legislation requiring state and local governments to adopt MBE utilization programs based on Congressional findings of past discrimination. 3. Affirmative Action: C om bined MBE/WBE Goals NAMC supports legislative and other measures to ensure separate affirmative action goals for women and minorities in the procurement of public contracts. 4. The Davis-Bacon Act NAMC supports H.R. 2042/S. 916, which would raise the Davis- Bacon threshold to S500.000, and allow greater use of “helpers” on fe d e ra l and fe d e ra lly -fin a n c e d projects. On the other hand, NAMC opposes H.R. 1231/S. 627 or any other legislation designed to expand the scope of Davis-Bacon. 5. Anti-Dual Shop Legislation NAMC opposes H.R. 114 and any similar legislation which would undermine the established rights of construction firms engaged in dual shop operations. Minority contrac tors must unite in dual-shop opera tions. Minority contractors must unite in developing a national strategy for educating federal developing a na tional strategy for educating federal developing a national strategy for educating federal legislators o f the dangers of the anti-dual shop legisla tion. 6. The Employee Retirement Income Security Act (ERISA) NAMC opposes H.R. 1036/S. 1580 or any similar legislation de signed to undermine ERISA preem p tion of state laws regarding prevail ing wage standards, apprenticeship and training standards, and mechan ics liens. We urge minority contrac tors to unite in opposing this bill. 7. Equal Surety Bond Opportu nity N A M C supports leg islatio n which will ensure equal surety bond opportunity. We willcontinueto work in 1994 to bolster support for the Equal Surety Bond Opportunity Act (ESBOA), both in the House of Rep resentatives and the Senate. We will need our members’ support in achiev ing this. 8. Health Care Reform While supporting the need for reform s affording all A m ericans greater security in health care, N AMC is concerned about the use o f an employer mandate to achieve this end. An employer mandate could pose an undue burden on small and minority-owned businesses, thereby curbing their growth or even driving them out of business. NAMC urges a closer look at the employer mandate to ensure that no unfair impact will be borne by small and minority busi nesses. 9. Intermodal Surface Transpor tation Efficiency act (ISTEA) NAMC advocates the full fund ing of the ISTEA capital investment grants, as well as the redoubling of efforts to ensure small and small busi ness participation in the opportuni ties thereby created. We urge Con gress to restrict pork-barrel spending on highway demonstration programs, to pass a “clean bill” designation the National Highway System, to ex plore innovative ways of financing FTA operating expenses, and to en courage the timely development of a National Transportation System. 10. Job Training W hile N A M C su p p o rts the Clinton adm inistration’s effort to overhaul job training and education, we are concerned about the proposed d e ta ils. We believ e the Reemployment Act of 1994 (H.R. 4040/4050, S. 1951) could go farther in providing opportunities for m i norities having a historical lack of access to the traditional occupations. In particular, we advocate for the construction industry a fair system under the Act promoting high qual ity, standardized and portable train ing in the open shop sector. Under the Goals 2000: Educate America Act, NAMC also advocates the fair representation qualified mi norities in the National Skill Stan dards Board, and in the education research initiatives created under the Office of Education Research and Improvement. 11. Miller Act Reform NAMC supports the raising of the Miller Act performance and pay ment bond threshold from S25,000 to $150,000. In particular, we sup port H.R. 2660 introduced by Rep. Albert Wynn (D-MD) which speci fies this raised threshold. We also support the raising of the thresholds of the “Little Miller Acts” enacted by many states. 12. North American Free Trade Agreement (NAFTA) NAMC supports legislation ex panding the Prompt payment Act to cover federal grant programs. We also support the passing of legisla tion affording contractors on state and local projects the same protec tions as they currently receive at the federal 13. Prompt Payment Procedures NAMC supports legislation ex panding the prompt payment Act to cover federal grant programs. We also support the passing oflegislation affording contractors on state and local projects the same protections as they currently receive at the fed eral level. 14. Federal Procurement Reform While NAMC supports the pro cess of procurement reform, we are concerned about specific provisions in Senate and House proposals that would undermine minority access to federal contracts. In particular, NAMC is opposed to provisions that would abridge the small business subcontracting requirements under Section 8 (d) of the Small Business Act. NAMC supports the urgent need for comprehensive small and small disadvantaged business hearings on all key issues of procurement reform prior to Congressional floor action. 15. Striker Replacement Legis lation (H.R. 5/S. 55) NAMC opposes H.R. 5/S 55 because of the negative impact it will have on minority-owned businesses. The bill not only undermines union employers by forcing them under the full dictatorship of the unions, but also threatens nonunion employers by forcing them the recognize union representation under certain condi tions. NAMC urges concerned mem bers to write their Senators express ing opposition to the bill. National Association Of Minority Contractors Of Oregon \o ICO ô> o B e tte r Q r~tll A ¿ "Anniversary o We Salute Minority Development Week IV69 IV94 'o o -< tíUMC Serving Minority Contractors-Offering Quality Contracting Serving Both Commercial And Residential-Interior And Exterior Administrators Action Committee • • • • • Procurement - G. McMurtry • Education/Marketing - J. Posey, O.B. Hill • Committee for Collective Economic Empowerment - J. Olive Memberships - Ed Wilson Finance/Budget - O.B. Hill Legislation - J. Posey Nominating - Executive Committee 4837 NE Martin Luther King Jr. Blvd., Portland, OR 97211 Phone: (503) 281-6099 FAX (503) 284-8017 --------------------------------- _ _ -------------------------------- J