Appendix D

120 Pages·2017·2.23 MB·English

by  Courtney Cox

APPENDIX D.
Qualitative Information about Marketplace
Conditions
Appendix D describes the public engagement process used for the Los Angeles County
Metropolitan Transportation Authority (LACMTA or “Metro”) disparity study, and presents the
qualitative information that the study team collected and analyzed as part of the public
engagement process. In total, more than 250 business and trade association representatives
provided written or spoken comments for Appendix D. Appendix D summarizes the key themes
that emerged from these narrative responses. This chapter is divided into the following twelve
sections:
A. Introduction describes the public engagement process for gathering and analyzing the
qualitative information summarized in Appendix D. (page 2)
B. Background on the Construction; Professional Services; and Goods and Other Services
Industries summarizes information about how businesses become established, the types of
contracts they work on, and what products and services they provide. (page 4)
C. Marketplace Conditions presents information about business owners’ current perceptions of
Metro marketplace economic conditions and what it takes for firms to be successful. (page 21)
D. Doing Business as a Prime Contractor or as a Subcontractor summarizes information about
the mix of businesses’ prime contract and subcontract work and how they obtain that work.
Section D also describes business owners’ experiences working with DBE certified
subcontractors. (page 30)
E. Experiences in the Public Sector and Private Sector presents business owners’ experiences
pursuing public and private sector work. (page 46)
F. Doing Business with Public Agencies describes business owners’ experiences working with or
attempting to work with public agencies in the Los Angeles area, including Metro, and identifies
potential barriers to doing work for public agencies. (page 58)
G. Barriers to Doing Business in the Metro Marketplace describes the barriers and challenges
firms face in the local marketplace, and details if and how race-/ethnicity- or gender-based
discrimination may be contributing to these issues. (page 68)
H. Additional Information Regarding whether any Race/Ethnicity or Gender Discrimination
Affects Business Opportunities presents information about any experiences business owners or
managers have with discrimination in the local marketplace, and how this behavior affects
minority- or woman-owned firms. (page 86)
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I. Insights Regarding Business Assistance Programs or Other Neutral Measures describes
business owners’ awareness of and opinions about business assistance programs, and other
steps to remove barriers for all businesses or small businesses in the Los Angeles metropolitan
area. (page 92)
J. DBE and Other Certification Programs presents information about firms’ experiences with
DBE and other certification processes, and describes the advantages and disadvantages of
holding a DBE or other certification. It also summarizes business owners’ experiences with the
Federal Disadvantaged Business Enterprise (DBE) Program and its implementation by Metro,
including any impacts of DBE contract goals on other businesses. (page 102)
K. Insights Regarding Any Other Race-/Ethnicity- or Gender-based Measures includes business
owners’ comments about other current or potential race/ethnicity/gender-based programs.
(page 110)
L. Any Other Insights and Recommendations presents additional comments and suggestions for
Metro to consider. (page 114)
A. Introduction
Throughout the study period, business owners and managers; trade association representatives;
and other interested parties had the opportunity to discuss their experiences working in the Los
Angeles metropolitan area, and provide public testimony. Those qualitative data were collected
through a number of channels:
 Participating in an in-depth interview (n=35);
 Participating in an availability survey (n=204);
 Participating in a focus group (n=5);
 Providing oral or written testimony during a public forum (n=4); and
 Submitting written testimony via fax or email (n=11).
From November 2016 through July 2017, the study team used a variety of public engagement
methods to gather these comments, and participated in several public engagement events. The
study team’s public engagement strategy consisted of the following:
TBAC engagement. In addition to the community engagement events where BBC staff
collected public testimony, study team members also met with the Transportation Business
Advisory Council (TBAC) board and membership to provide informational updates on study
progress, and to solicit study feedback. TBAC is a business advisory group to Metro, and an
important stakeholder group comprised of professional business associations representing a
wide array of industries and trades in the Los Angeles marketplace. Specifically, TBAC
represents the interests of the small business community and advocates for increased access to
Metro contacting opportunities. BBC staff attended TBAC meetings, and gave informational
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presentations about the disparity study, on the following dates: November 3, 2016, February 2,
2017, April 6, 2017 and July 6, 2017.
Public forums. On January 25, 2017, Metro and the study team solicited written and verbal
testimony at a public forum for the disparity study held at Metro headquarters. The study team
reviewed and analyzed all public comments from the January 2017 meeting and included many
of those comments in Appendix D. The comments chosen for Appendix D highlight key themes
from the public testimony. Public forum comments are denoted by the prefix “PT” throughout
Appendix D.
Written testimony. Throughout the study, interested parties had the opportunity to submit
written testimony directly to the BBC team via fax or email. All written testimony received by e-
mail or fax (11 responses) was then analyzed by the study team and exemplary quotes are
included in Appendix D. Written testimony is indicated by the prefix “WT” throughout Appendix
D.
In-depth interviews. From March through July 2017, the study team conducted 28 unique in-
depth interviews with representatives of 28 businesses and one trade association in the Los
Angeles metropolitan area. The interviews included discussions about interviewees’ perceptions
of and experiences with the local contracting industry; Metro’s DBE Program; the Federal DBE
Program; and businesses’ experiences working or attempting to work with other public agencies
in the Los Angeles metropolitan area. Interviews were conducted by PDA Consulting Group—an
Inglewood-based DBE-certified consulting firm—and GCAP Services—a Costa Mesa-based DBE-
certified consulting firm.
In addition, the study team included seven in-depth interviews completed by the BBC team in
Los Angeles and Ventura Counties for the 2016 California Department of Transportation
(Caltrans) Disparity Study. These business owners discussed experiences in the Los Angeles
marketplace directly relevant to the current study.
Interviewees included individuals representing construction businesses, professional services
firms, goods and services suppliers, and trade associations. The study team identified interview
participants primarily from a random sample of businesses stratified by business type; location;
and the race/ethnicity and gender of the business owners. The study team conducted most of the
interviews with the owner, president, chief executive officer, or another high-level manager of
the business or association. Some of the businesses that the study team interviewed indicated
that they work exclusively (or, at least primarily) as prime contractors or subcontractors, and
some indicated that they work as both. All of the businesses that participated in the interviews
conduct work in the greater Los Angeles metropolitan area.
All interviewees are identified in Appendix D by random interviewee numbers (i.e., #1, #2, #3,
etc.). Interviews conducted as part of the CALTRANS disparity study are denoted by the prefix
“CT” in front of the interview number (i.e., CT #61). In order to protect the anonymity of
individuals or businesses mentioned in interviews, the study team has generalized any
comments that could potentially identify specific individuals or businesses. In addition, the study
team indicates whether each interviewee represents a small business enterprise- (SBE-), DBE-,
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MBE-, WBE- or other certified business and reports the race/ethnicity and gender of the
business owner.
Availability surveys. The study team conducted availability surveys for the disparity study
from March through July 2017. As a part of the availability surveys, the study team asked
business owners and managers whether their companies have experienced barriers or
difficulties starting or expanding businesses in their industries or with obtaining work in the Los
Angeles marketplace. A total of 204 businesses provided comments. The study team then
analyzed those responses, and included illustrative examples of the different comment types and
themes in Appendix D. Availability survey comments are indicated throughout Appendix D by
the prefix “AV.”
TBAC focus group. In July 2017, BBC convened a focus group with five Transportation
Business Advisory Council (TBAC) members. As discussed above, TBAC is a business advisory
group to Metro, and an important stakeholder group comprised of professional business
associations representing a wide array of industries and trades in the Los Angeles marketplace.
The study team asked TBAC participants to share their individual experiences, and their
members’ experiences, with doing business in the Los Angeles marketplace and working with
Metro. Comments from the focus group are included in Appendix D, and denoted by the prefix
“FG.”
B. Background on Construction, Professional Services, and Goods and
Services Industries in the Los Angeles Metropolitan Area
Part B describes the firms interviewed and includes the following information:
 Business characteristics including the types of work that businesses perform and the
number of years in business (page 4);
 Business formation and establishment (page 10);
 Types, locations, and sizes of contracts (page 14);
 Employment size of businesses (page 19);
Business Characteristics. The business owners interviewed for the study represented a
variety of different business types and business histories, were from more newly established
and well-established firms, and worked on small-to-large contracts in the Los Angeles
marketplace.
Types of Work. Interviewees described the types of work that their firm performs. The study
team interviewed 15 construction firms, 16 firms providing professional services, and three
firms supplying goods and services. In addition, one interview was conducted with the
representative of a business association that supports disadvantaged firms across different
industries.

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Fifteen firms worked in the construction industry. [#1, #4, #8, #10, #20, #21, #22, #23, #24, #30,
#31, CT#37, CT#46, CT#56, CT#61] For example:
 The manager of a DBE- and SBE-certified Black American woman-owned engineering and
construction services firm stated that the firm is a general contractor that coordinates and
directs construction work. It performs interior work, improvements, and horizontal
construction. [#1]
 The representative of a DBE-, MBE-, and SBE-certified Hispanic male-owned construction
firm explained that the firm is a construction and construction management firm that
performs metal stud framing, installation of drywall systems, fireproofing, and construction
of interior and exterior walls for industrial and commercial building. The firm is not a
subsidiary to or affiliated with another firm. [#8]
 The Subcontinent Asian American male owner of a specialty supplier firm described his
firm as a specialty manufacturer that sells their product to various factories and
distributors. He added, “we only sell the products and occasionally we do R&D [Research
and Development] for some customers.” [#10]
 The non-Hispanic white female owner of a WBE- and SBE-certified supplier firm stated that
her firm provides wholesale pipe valves and fitting supplies to oil refineries, city
governments, contractors, and water-treatment plants. [#30]
 The female representative of a non-Hispanic white female-owned specialty construction
firm stated that the firm provides everything that is needed to upkeep and maintain a
parking lot which can include asphalt, traffic paint, signage, concrete wheel stops, and
truncated domes. [#31]
 The Black American male owner of a DBE- and SBE-certified contracting firm said that his
firm began with residential construction in the private sector, but after a few years moved
into public works construction contracting. [CT#61]
Six of the 15 construction firms interviewed worked in the trucking and hauling business. [#4, #20,
#21, #22, #23, #24] For example:
 The Black American male owner of a trucking firm stated that the firm offers transportation
services including end dump service or hauling material from construction sites. The firm
hauls dirt, sand, gravel, rock and asphalt. The firm is not a subsidiary to or affiliated with
another firm. [#4]
 The Asian American male owner of a trucking firm stated that his firm performs heavy duty
transportation for big retail stores. [#20]
 The Hispanic American female owner of a DBE- and MBE-certified specialty trucking and
hauling firm hauls hazardous waste from work sites, performs non-hazardous waste water
pumping, and picks up used oil from generators. She indicated that the firm is
independently owned and operated. [#21]
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 The non-Hispanic white male owner of a specialty trucking firm stated that his firm
provides same-day exclusive use vehicles and same-day expedited transport using cargo
vans, bobtail straight trucks, and sprinter vans. [#24]
Sixteen firms worked in the engineering and professional services industry. [#2, #3, #5, #6, #7,
#11, #12, #13, #15, #25, #27, #28, #29, CT#2, CT#14, CT#49] For example:
 The executive of a DBE-, MBE-, and SBE-certified Asian American male-owned
transportation and engineering consulting firm explained that the firm is a transportation
planning, traffic engineering, and civil engineering firm that provides engineering and
traffic related consulting services, and is not a subsidiary to or affiliated with another firm.
He explained that he is only affiliated with the transportation planning and traffic
engineering division of the firm and does not do work with the civil engineering division.
The firm provides services including traffic signal design, traffic safety studies, and
transportation intelligent technical systems implementation. [#2]
 The executive of an SBE-certified non-Hispanic white male-owned landscape architecture
firm stated that the firm provides landscape architecture, site planning, and urban design
services. He also added that the firm is not a subsidiary to or affiliated with another firm.
[#5]
 The representative of a DBE-certified non-Hispanic white female-owned civil engineering
firm stated that the firm provides services including civil engineering, utilities research,
surveying and mapping, planning and development services for private and public
construction projects. The firm is not a subsidiary to or affiliated with another firm. [#6]
 The non-Hispanic white male owner of an SBE-certified engineering firm described the firm
as a structural engineering firm that provides design services for architects, developers, and
contractors. The firm’s services range from small renovation projects to large office, retail,
hotel, and specialized structures. The firm is not a subsidiary to or affiliated with another
firm. [#7]
 The Asian American male owner of a DBE-, MBE-, and SBE-certified environmental
engineering firm stated that the firm’s environmental consulting services range from storm
water and dust mitigation to air quality, noise, and vibration monitoring. [#11]
 The Asian American male manager of an international architectural, planning, and
engineering services firm explained that the firm provides “consulting services, design
work, engineers, architects, planners. We provide technology products in the form of
software applications and system, toll revenue collection systems, and custom software.”
[#12]
 When asked to describe the services offered by the firm, the non-Hispanic white male co-
owner of an SBE-certified construction management and consulting firm stated, “We
provide consulting – construction management, quality assurance – all related to
construction. Specifically, our expertise is public works. We work with public agencies and
[the firm] is not a subsidiary to or affiliated with another firm.”[#13]
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 The Black American male co-owner of a DBE-, MBE-, and SBE-certified architecture firm
stated that the firm’s services include architectural, urban planning, and civil engineering.
Within individual sectors, the firm works on transportation projects (light rail, bus, and
aviation), schools, civic facilities, streetscape improvements, and performs urban economic
studies. The firm is not a subsidiary to or affiliated with another firm. [#15]
 The Asian American male owner of an MBE- and SBE-certified engineering firm stated that
his firm provides engineering services related to underground tunneling. [#25]
 The Asian American male owner of a structural and civil engineering firm stated that his
firm provides both civil and structural engineering services for residential buildings, minor
structures, and commercial structures such as mini malls and apartments. [#27]
 The Asian American male manager of a non-Hispanic white male owned-engineering and
consulting firm stated that his firm provides consulting and engineering services for
mechanical, electrical, plumbing, technology, and fire life safety design. He indicated that
the corporation is independently owned and operated. [#28]
 The non-Hispanic white female owner of a DBE-, WBE- and SBE-certified specialty
consulting firm stated that her firm provides consulting services, drafts environmental
documents, provides construction monitoring, and provides archeology and paleontology
services for lead agencies in both the public and the private sector. [#29]
 The Subcontinent Asian American male owner of an MBE-certified professional services
firm reported that his firm has not changed. He said, “No, not changed because basically,
I’ve been working as [a] Caltrans consultant [for several decades].... I’ve been doing the
same kind of work. It is my advantage because I am doing the same kind of work, that is
where my strength and forte is, right? So I’ll be able to survive because of that.” [CT#14]
Three firms worked in the goods and services industry. [#9, #14, #26] For example:
 The non-Hispanic white male owner of a janitorial services firm explained that the firm
provides complete janitorial services that includes carpet cleaning, pressure washing, and
window cleaning. The firm is not a subsidiary to or affiliated with another firm. [#9]
 The non-Hispanic white male owner of a pest control firm explained that the firm provides
pest control services for apartments and property management companies and is not a
subsidiary to or affiliated with another firm. He explained, “We offer treatment for general
pest control, agricultural pest control, maintenance pest control including removal of weeds
for fire clearance, gopher and bee relocation, and environmentally-conscious work.” [#14]
 The Black American female owner of a janitorial services firm stated that her firm provides
cleaning and janitorial services to commercial buildings, medical offices, universities, dental
offices, and stadiums. She explained that her firm works in places where large numbers of
people congregate and there is an increased chance of illness spreading. [#26]
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Years in Business. 28 businesses reported their date of establishment. The majority of firms (16
out of 28) reported that they were well-established businesses; they had been in business for
more than ten years. Eight out of the 28 businesses had been in business for between five and
ten years. Four firms were newly established, having been in business for less than five years.
Four firms reported they had been in business for fewer than five years. [#7, #11, #13, #14] For
example:
 The non-Hispanic white male owner of an SBE-certified engineering firm stated that the
company is an independent firm that has been in business for four years. [#7]
 The Asian American male owner of a DBE-, MBE-, and SBE-certified environmental
engineering firm stated that the company is an independent firm that has been in business
for approximately two years. [#11]
 The non-Hispanic white male co-owner of an SBE-certified construction management and
consulting firm stated that the company was founded in 2013. [#13]
 The non-Hispanic white male owner of a pest control firm stated that the company was
founded in 2014. [#14]
Eight firms reported they had been in business for five to ten years. [#4, #8, #10, #20, #22, #24,
#25, #26] For example:
 The Black American female owner of a janitorial services firm stated she founded her
business in 2012. Her company is an S-Corp. She noted that her business is fairly new but
growing at an average rate. [#26]
 The Hispanic American male owner of a demolition and trucking firm stated he has been
running his business for ten years. [#22]
 The non-Hispanic white male owner of a specialty trucking firm stated he has been running
his business for ten years. [#24]
 The Asian American male owner of an MBE- and SBE-certified engineering firm stated he
has been running his business for ten years but has been in the engineering field for over
thirty years. [#25]
 The Black American male owner of a trucking firm stated that the company has been in
business since 2009. [#4]
 The representative of a DBE-, MBE-, and SBE-certified Hispanic male-owned construction
firm, stated that the company is an independent firm that has been in business for five
years. [#8]
 The Subcontinent Asian American male owner of a specialty supplier firm stated that the
company is an independent firm that has been in business since 2008 [#10].
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 The Asian American male owner of a trucking firm stated he has been running his business
for seven years. [#20]
Sixteen firms reported they had been in business for more than ten years. [#1, #2, #3, #5, #6, #9,
#12, #15, #21, #23, #27, #28, #29, #30, #31, WT#3] For example:
 The Asian American male owner of a structural and civil engineering firm stated he has
been running his business since 1982. [#27]
 The non-Hispanic white female owner of a DBE-, WBE- and SBE-certified specialty
consulting firm explained that she has been running her business for thirteen years. [#29]
 The manager of a DBE- and SBE-certified Black American woman-owned engineering and
construction services firm explained that the firm was founded by an African-American
female approximately 20 years ago. The firm’s owner had previously worked as a
construction laborer and was a member of the Laborer Union. [#1]
 The non-Hispanic white male owner of a trucking firm stated he has been running his
business for forty years. [#23]
 The executive of a DBE-, MBE-, and SBE-certified Asian American male-owned
transportation and engineering consulting firm stated that the company is an independent
firm that has been in business since 1997, and currently has 18 permanent full-time
employees, two of whom are interns. [#2]
 The Hispanic American male owner of a DBE- and SBE-certified professional service firm
stated that the company is an independent firm that has been in business since 1998. The
firm has no employees and only hires consultants on project-by-project basis. [#3]
 The executive of an SBE-certified non-Hispanic white male-owned landscape architecture
firm stated that the company has been in business since 1978. [#5]
 The representative of a DBE-certified non-Hispanic white female-owned civil engineering
firm stated that the company is an independent firm that has been in business since 1983.
[#6]
 The non-Hispanic white male owner of a janitorial services firm stated that the company
has been in business since 1988. [#9]
 The Senior Vice President of a DBE-certified Hispanic woman owned engineering firm
stated that the firm has been in business for more than 23 years. [WT#3]
 The Asian American male manager of an international architectural, planning, and
engineering services firm explained the firm was “founded in 1974 by two partners in the
Toronto area. [They] blended land use planning and transportation, which back in the 70’s
was a big move.” [#12]
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 The Black American male co-owner of a DBE-, MBE-, and SBE-certified architecture firm
stated that the company is an independent firm that has been in business for approximately
14 years. [#15]
 The Hispanic American female owner of a DBE- and MBE-certified specialty trucking and
hauling firm stated she has been with the business for 13 years. [#21]
 The non-Hispanic white female owner of a WBE- and SBE-certified supplier firm stated she
has been running her business for 21 years. [#30]
 The Asian American male manager of a non-Hispanic white male owned-engineering and
consulting firm stated he has been with the company for one year but the company has
been running since 1969. [#28]
 The female representative of a non-Hispanic white female-owned specialty construction
firm stated she has been with the business for ten years but the business has been running
since 1993. [#31]
Business formation and establishment. Most interviewees reported that their companies
were started (or purchased) by individuals with connections in their respective industries.
The majority of business owners and founders had worked in the industry or a related industry
before starting their own businesses. [#1, #2, #3, #4, #5, #7, #8, #10, #11, #14, #15, #21, #23,
#24, #25, #27, #30, CT#2, CT#49, CT#61] This experience helped founders build up industry
contacts and expertise. Business people were often motivated to start their own firms by the
prospects of self-sufficiency and business improvement. Here are some of the founder stories
from interviews:
 The Asian American male owner of a structural and civil engineering firm indicated that
opening his own engineering firm had always been a childhood dream. He explained how
he first began working for small government and private companies inspecting cement
bridges and buildings abroad in the 1960s. After migrating to the U.S., he matriculated to a
university in Los Angeles where he studied earthquake engineering. After gaining
experience working for small engineering firms in the U.S., he decided to open his own
business in 1982. He stated: “With all the resources like the savings and the experiences,
including the clients of my original employers, I was able to have those former clients of my
employers to be the ones I should start looking for project or projects that might help in this
newly formed office of mine.”[#27]
 The manager of a DBE- and SBE-certified Black American woman-owned engineering and
construction services firm explained that the firm was founded by an African-American
female approximately 20 years ago. The firm’s owner had previously worked as a
construction laborer and was a member of the Laborer Union. [#1]
 The non-Hispanic white male owner of a specialty trucking firm indicated he first began
doing courier work when he was younger, and took it upon himself to get his license to
transport goods and start his own business in 2007. He noted that it was his deep desire of
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