masca - can dbe succeed in low bid environment

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Can

Current state of

DBE ownersand businessopportunities

DBE ownershipcriteria

Pricecompetitivenessand the DBE

DBEs’ highercosts of doingbusiness


Can Disadvantaged Business Enterprises (DBEs)Thrive in Low

Current state of

DBE ownersand businessopportunities

What does it mean to be a DBE owner as it concerns business opportunities? Thereare many ways to answer that questistudies as well as lawsuits clearly validating the data showing that DBE owners havebeen

DBE ownership DBE owners encompass minorities, disabled, wompersons.

Is being a business owner from that category of persons the sole criterion fordetermining a business’s disadvantaged status?

Are there other factors that one must consider for those busineas disadvantaged?

competitivenessand the DBE

Without answering the above

There are appreciable differences from being classified asbusinesshow the DBE will be

Isn’t the ability to be price competitive at the core of determining if a business isdisadvantaged?is that DBE

highercosts of doing

Keepcosts of doing business for DBEs:

Business i“


Disadvantaged Business Enterprises (DBEs)Thrive in Low

Current state of DBE

What does it mean to be a DBE owner as it concerns business opportunities? Thereare many ways to answer that questistudies as well as lawsuits clearly validating the data showing that DBE owners havebeen excluded from certain business opportunities.

DBE owners encompass minorities, disabled, wompersons. Consider the following:




There are appreciable differences from being classified asbusiness versushow the DBE will be

Isn’t the ability to be price competitive at the core of determining if a business isdisadvantaged?is that DBE really

Keeping the abovecosts of doing business for DBEs:

Business insurance costs“volume.” Those two

General Liabilitypoint that the level of coverage required for mbeyond the financial capability of DBEs.

Workmen's Comp(50% or more)

Auto Coveragecoverage. Moreover,the capability of the DBEs to obtain.

Unemployment Insuranceconsequently,two to three times higher than


Disadvantaged Business Enterprises (DBEs)Thrive in Low-

DBEs

What does it mean to be a DBE owner as it concerns business opportunities? Thereare many ways to answer that questistudies as well as lawsuits clearly validating the data showing that DBE owners have

excluded from certain business opportunities.

DBE owners encompass minorities, disabled, womConsider the following:




There are appreciable differences from being classified asversus being treated

how the DBE will be regarded

Isn’t the ability to be price competitive at the core of determining if a business isdisadvantaged? Given that, if a DBE can be p

really disadvantaged?

the above questions in mind, consider thecosts of doing business for DBEs:

nsurance costs are baseThose two factors

General Liability – thesepoint that the level of coverage required for mbeyond the financial capability of DBEs.

Workmen's Comp – for DBEs, one accident could cause cost to increase greatly(50% or more), which could threaten their ability to maintain coverage.

Auto Coverage – these costs caMoreover, in certain cases, the level of coverage required is beyond

the capability of the DBEs to obtain.

Unemployment Insuranceconsequently, given the hightwo to three times higher than


Disadvantaged Business Enterprises (DBEs)-Bid Environments?

What does it mean to be a DBE owner as it concerns business opportunities? Thereare many ways to answer that question. I’ll start by exposing that there have beenstudies as well as lawsuits clearly validating the data showing that DBE owners have

excluded from certain business opportunities.

DBE owners encompass minorities, disabled, womConsider the following:


Are there other factors that one must consider for those busine

Without answering the above questions directly,

There are appreciable differences from being classified asbeing treated as one. The latter involves future consideration

regarded for business opportunities going forward.

Isn’t the ability to be price competitive at the core of determining if a business isGiven that, if a DBE can be p

disadvantaged?

questions in mind, consider thecosts of doing business for DBEs:

are based on two factorsfactors are major pain points for DBEs

costs are usually considerably higher for DBEs to thepoint that the level of coverage required for mbeyond the financial capability of DBEs.

for DBEs, one accident could cause cost to increase greatly, which could threaten their ability to maintain coverage.

these costs can vary greatly based on experience and length ofin certain cases, the level of coverage required is beyond

the capability of the DBEs to obtain.

Unemployment Insurance – is highly influenced by the company’s experience;high turnover rates,

two to three times higher than more established businesses.


Disadvantaged Business Enterprises (DBEs)Bid Environments?

What does it mean to be a DBE owner as it concerns business opportunities? Thereon. I’ll start by exposing that there have been

studies as well as lawsuits clearly validating the data showing that DBE owners haveexcluded from certain business opportunities.

DBE owners encompass minorities, disabled, women, and low


Are there other factors that one must consider for those busine

questions directly, consider

There are appreciable differences from being classified asThe latter involves future consideration

for business opportunities going forward.

Isn’t the ability to be price competitive at the core of determining if a business isGiven that, if a DBE can be price competitive; i.e., the low bidder,

questions in mind, consider the following facts about the higher

two factors, “business tenurepain points for DBEs

are usually considerably higher for DBEs to thepoint that the level of coverage required for many construction projects is oftenbeyond the financial capability of DBEs.


n vary greatly based on experience and length ofin certain cases, the level of coverage required is beyond

is highly influenced by the company’s experience;turnover rates, DBE unemployment taxes are oftenmore established businesses.



studies as well as lawsuits clearly validating the data showing that DBE owners have

and low-income categories of

Is being a business owner from that category of persons the sole criterion for

Are there other factors that one must consider for those businesses being classified

consider the following:

There are appreciable differences from being classified as a disadvantagedThe latter involves future consideration


Isn’t the ability to be price competitive at the core of determining if a business isrice competitive; i.e., the low bidder,

following facts about the higher

business tenurepain points for DBEs due to

are usually considerably higher for DBEs to theany construction projects is often



is highly influenced by the company’s experience;DBE unemployment taxes are often

more established businesses.

Continued on next page




income categories of

Is being a business owner from that category of persons the sole criterion for

sses being classified

the following:

disadvantagedThe latter involves future consideration, and




business tenure” anddue to the following:






1 of 2

Disadvantaged Business Enterprises (DBEs)



income categories of

sses being classified

and



following:


for DBEs, one accident could cause cost to increase greatly





Current state of DBEs

DBEs’ highercosts of doingbusiness(continued)

Something tothink about


Current state of DBEs

DBEs’ highercosts of doing

d)

DBEscredit cardstheir businesses. Those methodsdouble the rafinancing they need.

Material costs are based on volume first and relationships secondboth areas. The differences can seem small per unit, but those differences aremalocate a vendor willing to sell them certain materials

As to managerial and admin costs,internal supportEven that lowthan what large companies pay for their internal support team.

Something tothink about

Taking into account all thelow


Current state of DBEs, continued

DBEs have substantialcredit cards (both personal and business)their businesses. Those methodsdouble the rate of traditional business financing. In many cases, they cannot get thefinancing they need.

Material costs are based on volume first and relationships secondboth areas. The differences can seem small per unit, but those differences aremagnified when looked at on a costlocate a vendor willing to sell them certain materials

As to managerial and admin costs,internal supportEven that low-than what large companies pay for their internal support team.

Taking into account all thelow-bid environment?


ontinued

substantially higher cost for(both personal and business)

their businesses. Those methodste of traditional business financing. In many cases, they cannot get the

financing they need.

Material costs are based on volume first and relationships secondboth areas. The differences can seem small per unit, but those differences are

gnified when looked at on a costlocate a vendor willing to sell them certain materials

As to managerial and admin costs,internal support persons; they more readily rely on external admin support only.

-level of support is generally more costly as a percentage of revenuethan what large companies pay for their internal support team.

Taking into account all the abovebid environment? What do you think?


higher cost for(both personal and business)

their businesses. Those methods of financingte of traditional business financing. In many cases, they cannot get the


gnified when looked at on a cost-percentage basis.locate a vendor willing to sell them certain materials

As to managerial and admin costs, the average DBEthey more readily rely on external admin support only.

level of support is generally more costly as a percentage of revenuethan what large companies pay for their internal support team.

above, the question becomes: CWhat do you think?


business financing. Many DBEs utilize(both personal and business) and other high

of financing may have interest rates more thante of traditional business financing. In many cases, they cannot get the


percentage basis.locate a vendor willing to sell them certain materials

he average DBE doesnthey more readily rely on external admin support only.


the question becomes: CWhat do you think?

financing. Many DBEs utilizehigh-interest loans

may have interest rates more thante of traditional business financing. In many cases, they cannot get the

Material costs are based on volume first and relationships second—both areas. The differences can seem small per unit, but those differences are

percentage basis. Often the DBE is unregardless of

doesn’t have any hiredthey more readily rely on external admin support only.


the question becomes: Can DBEs succeed in a

financing. Many DBEs utilizeinterest loans to finance


—DBEs suffer inboth areas. The differences can seem small per unit, but those differences are

Often the DBE is unable toregardless of the cost.

have any hiredthey more readily rely on external admin support only.

level of support is generally more costly as a percentage of revenue

an DBEs succeed in a

2 of 2

financing. Many DBEs utilizeto finance


DBEs suffer in

able to

they more readily rely on external admin support only.level of support is generally more costly as a percentage of revenue

an DBEs succeed in a

masca - can dbe succeed in low bid environment

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