Supporting a commitment to equal opportunity

on the Marquette Interchange Project

Deputy Secretary Ruben L. Anthony, Jr.Wisconsin Department of Transportation

Senator G. Spencer CoggsWisconsin State Senate

AASHTO Subcommittee on Civil RightsMilwaukee, WisconsinSeptember 28, 2007

Setting the stageSetting the stage

Wisconsin Governor Jim Doyle and DOT Secretary Frank Busalacchi lead the commitment to equal opportunity and stress its importance on the Marquette Interchange

Supporting opportunity for DBE firms and minority workers is good for the economy:

Supports the Milwaukee urban centerBuilds economic capitalCreates job opportunities and better wagesEncourages competitionUnleashes knowledge and skills

Presentation overviewPresentation overview

The $810 million Marquette Interchange Project needed to provide equal opportunities for firms and workers

WisDOT undertook a variety of strategies to provide equal opportunity to the community and is achieving great success

Research is underway to analyze the importance and effectiveness of the strategies used and to apply them to future projects

Community leaders have played a strong role to guide and support equal opportunity on the project

Project backgroundProject background

The Marquette Interchange, downtown Milwaukee

First opened to traffic in 1968

By the 1990’s and early 2000’s, the original interchange had obsolete design and couldn’t handle 300,000 vehicles per day

Concrete box girders and steel structures were crumbling

Past effects of freeway construction

Past effects of freeway construction

Historically, freeway construction in Milwaukee harmed urban and ethnic areas, such as the African-American “Bronzeville” neighborhood

African-Americans and minorities were skeptical about how they would benefit from reconstruction of the Marquette Interchange

Project designed to benefit community

Project designed to benefit community

In 2003, Governor Jim Doyle and Transportation Secretary Frank Busalacchi announced a four-year, $810 million plan to rebuild the interchange

Community benefits:Community sensitive designEconomic stimulus for workers and

businesses

WisDOT philosophy for opportunity

WisDOT philosophy for opportunity

WisDOT knew that equal opportunity would be paramount to this project in the heart of Milwaukee’s urban community

The philosophy to support DBE businesses, minority workers and other aspects of opportunity is “Make it, take it, respond and deliver”

Make itMake it

Make opportunities for DBE firms to compete on the project

Stand-alone contract opportunities to allow DBE’s to bid as primes

Mandatory subcontracting to help DBE firms build skills and expertise

High subcontracting goals – 20% or higher on most contracts

Take itTake it

Take the opportunities and market them aggressively

Bullseye marketing matches firms to the skills needed, and makes the contact

Networking events helped encourage DBE-prime contacts, mentor-protégé options, joint venture agreements

Pre-bid meetings helped DBE and prime firms to understand bidding requirement

Major use of media, newsletters and community events to market contracting opportunities

RespondRespond

Private sector has stepped up to respond

55 newly certified DBE firms in 2004-05

Primes and DBEs took advantage of networking opportunities

Mentor-protégé relationships formedHoffman Construction / South StarPheifer Brothers / D’Arteaga

Joint venture formedK SinghMaking the GradeToki & Associates

DeliverDeliver

All sides have stepped up to deliver

Through July 31, DBE firms have earned $117.3 million of contracts out of $616.4 million total, a 19% share

Through July 31, DBE firms have earned $93.6 million of expended dollars out of $521.1 million total, an 18% share.

Five DBE firms earned prime contracts

More than 70 different DBE contractors and consultants have participated on the Marquette Interchange Project, with more than 80% of these firms from southeast Wisconsin

Exceeding requirements & expectations

Exceeding requirements & expectations

Federal government requires a minority labor goal of 8% and an “appropriate” DBE goal

In past years, Wisconsin’s typical DBE goals and achievements have been in the 8% to 12% range

Marquette Interchange thus far has achieved 22% minority labor and 18% DBE business participation

A closer look at the numbersA closer look at the numbers

A research study has been started to objectively examine the equal opportunity strategies utilized on the Marquette, particularly the bulls-eye marketing approach

Lessons learned about DBE business participation will be applied to future projects:

I-94 NS Corridor connecting Milwaukee to Chicago, expected to begin in 2009 and cost more than $1 billion

Zoo Interchange in western Milwaukee County, the state’s busiest interchange with an environmental / engineering study getting underway

DBE consultant rolesDBE consultant roles

Environmental assessment, study and design phases:$60.2 million in total contracts$8.1 million in DBE contracts, 13.4% shareTypes of work included soils engineering, roadway design, public

relations, environmental testing

Construction administration work:$34.4 million in total contracts$7.4 million in DBE contracts, 21.5% shareSeven DBE firms earned prime contracts for construction

administrationConstruction administration services include administrative support,

document control, engineering, construction management

DBE subcontractor rolesDBE subcontractor roles

Construction phase:$521.2 million in total contracts$101.8 million in DBE contracts, 19.5% shareMany DBE firms earned work on multiple contracts

Major categories of subcontracting workAsphalt paving – 2 firmsConcrete construction & suppliers – 6 firmsElectrical construction & suppliers – 3 firmsPainting & staining – 3 firmsTraffic control – 2 firmsTrucking – 28 firmsOther structural installation (girders, walls, sewer) – 12 firms

DBE prime contractor rolesDBE prime contractor roles

Five DBE contractors earned prime bids

Clybourn landscaping … $74,000 contract

Security … $160,000 contract

Decorative fencing … $1.7 million contract

Advance signing … $150,000 contract

North / west leg landscaping … $308,000 contract

Most DBE firms are from SE Wisconsin

Most DBE firms are from SE Wisconsin

Total of 74 DBE contractors or consultants working on any phase of the Marquette Interchange Project

41 based in Milwaukee County … 55%21 based elsewhere in SE Wisconsin … 28%8 based elsewhere in Wisconsin … 11%4 based out of state … 5%

Bottom line DBE firm counts15 consultants28 trucking firms31 contracting / construction firms

Support from community leadersSupport from community leaders

Community leaders have stepped up to identify the needs, communicate with the community and provide oversight to goals and delivery

State Senator Spencer Coggs leads a business advisory committee that focuses on DBE business goals and achievements, capacity development and overall business support

Supporting a commitment to equal opportunity

on the Marquette Interchange Project

Questions / discussion time

AASHTO Subcommittee on Civil RightsMilwaukee, WisconsinSeptember 28, 2007