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
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We Salute
Minority Development Week
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Serving Minority Contractors-Offering Quality Contracting
Serving Both Commercial And Residential-Interior And Exterior
Administrators
Action Committee
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•
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• 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
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