american dbe magazine winter 2015

WINTER 2015

Denver RTD’s Phillip Washington Achieves Mega-Success

Honoring the Legacy of Herman J. Russell Sr.

New Blessings, Old Curses: DBE Final Rule (Part 1)

Business in the Age of Social Media

USDOT Cracking Down on DBE Fraud

Interested in Doing Business With U.S. DOT?

The South Atlantic Region SBTRC Can Help You

The South Atlantic Region Small Business Transportation Resource Center serves as the OSDBU regional o�ce, working closely with prime and subcontractors, as well as state and local transportation agencies located in the four-state region of Kentucky, North Carolina, Virginia and West Virginia.

Business Counseling | Technical Assistance | Procurement Assistance | Certification

South Atlantic Region U.S. DOT - Small Business Transportation Resource Center

114 W. Parrish StreetDurham, NC 27701

Phone: (919) 956-2341Fax: (919) 688-7668

Email: [email protected]: www.ncimed.org

A program of the U.S. Department of Transportation and NCIMED

PROGRAM OFFERINGSBonding Education Program (BEP) - a hands-on, multi-component contractor development program designed to address what businesses need to do to become bond-ready

Women and Girls in Transportation Initiative (WITI) - a program to assist women-owned businesses and introduce aspiring women to both public service and the transportation industry

Short-Term Lending Program (STLP) - provides certified DBEs and other certified small businesses with short-term working capital at competitive interest rates for DOT or DOT-funded contracts and subcontracts

FEATURES Phillip Washington, Denver Regional Transportation District

JCDecaux and Interactive Airport Advertising Model Collaboration

USDOT Cracks Down on DBE Fraud

AMAC Pushes Inclusion for PFC-Funded Projets

Honoring the Legacy of Herman J. Russell Sr.

ACCA’s National Training Institute

DEPARTMENTS4 Publisher’s Page6 Business Development I: Tax Tips7 Business Development II: 3 Marketing Truths9 DBELO Spotlight: ALDOT’s Clarence Hampton, Esq.28 Business Development III: Long-term Business Success

T�NSPORTATION TRENDS: AVIATION, CIVIL/HIGHWAY AND T�NSIT32 Financial Strategies and Tax Tips38 Business in the Social Media Age

Contents

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American DBE | Winter 2015 | americandbe.com 3

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�e ability to build and maintain successful relationships is a skill that can turbo-charge business growth and create new opportunities that an entrepreneur working alone would probably never experience. More o�en than not, new op-portunities arise from the synergistic e�ects that occur when two people come together to collaborate and brainstorm on ways to be�er serve customer needs and create solutions to

problems in the marketplace. Relationships come in a variety of ways in business. All entrepreneurs have relation-ships with their employees, business partners, business associates, competitors, inves-tors, personal friends and family. However, the success-ful entrepreneur places a high priority on maximizing these relationships. How, you ask? It comes by having a genu-ine interest in the welfare of

others and their needs, by o�ering value, and by trusting and expecting to receive something of value in return. �is may come in the form of information, ideas, referrals and poten-tially pro�table business opportunities. Building relationships is not always easy and can be particu-larly di�cult for DBE �rms. DBE contract goals, good faith e�orts, and subcontracting/subtenant components can place DBEs in direct competition in a zero-sum game of ‘if you win, I lose.’ �e result of this reality o�en leads to DBEs focusing more on ge�ing a piece of the pie, rather that creatively and strategically thinking about how to get a whole pie, since there are many “pies” available in today’s marketplace. �is issue of American DBE is dedicated to business own-ers striving to create and sustain relationships that can lead to greater amounts of success within and outside the DBE program. In this issue, we highlight one of the greatest entre-preneurs in American history; Herman J. Russell Sr. �e late Mr. Russell broke through segregation to launch a business empire in Atlanta, Georgia by serving as a shining example of the power of building relationships.

�is issue also pro�les two DBE �rms that are leveraging the bene�ts of relationship building to grow successful enter-prises in the airport and highway contracting industry. �is magazine also highlights the work of Phil Washington, chair of the American Public Transportation Association (APTA) and CEO/General Manager of the Regional Transportation District (RTD) in Denver, Colorado. Washington has built a successful career in the public transit industry through leveraging positive relationships with co-workers, employees, stakeholders and DBE �rms to demonstrate the opportuni-ties for mutual bene�t through creatively working together. As always, this issue of American DBE also shares great business development articles and industry updates that will help businesses succeed in 2015. I hope you enjoy.

Shelton A. Russell, Publisher

�e Unmatched Power of Building Relationships

4 American DBE | Winter 2015 | americandbe.com

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Winter 2015 Volume 2, Issue 4

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For most small businesses it means tax time is here again. Are you ready? Here are some tips and reminders that can help:

1. Make sure you have W-9 forms for all vendors who pro-vided services to your business. �is is not just the traditional subcontracted labor, but may include businesses that provided marketing services, repairs and main-tenance, janitorial services, legal and accounting services, etc. �e W-9 form will give you all the information you will need to create Form 1099-MISC. In general, 1099 forms are required to be sent to any vendor that you paid $600 or more for services or rents (cumulative for the year) that is not incorporated. 1099 forms must be mailed to your vendors by January 31, 2015. Note: Be very careful about properly classifying people who provide services to your business. If you control when they work, how they work, and you give them the tools to work – they are W-2 employees, NOT 1099 contractors! 2. Make sure all fourth quarter and year-end payroll forms are �led: 941 and 940 forms (IRS), state annual with-holding reconciliation, state unemployment forms, and W-2 forms. W-2 forms are due to employees no later than January 31, 2015. 3. You don’t want to purchase assets for your business un-less you have the cash �ow and a demonstrated need for them. However, when you purchase machinery, computers, so�ware, furniture, vehicles, etc., you may be eligible to take a Section 179 deduction. Section 179 of the IRS tax code allows busi-nesses to deduct the full purchase price of qualifying equip-ment and/or so�ware purchased or �nanced in a single year (rather than depreciating over several years) if it is purchased and put into use during that year. �at means if you buy (or lease) a piece of qualifying equipment, you can deduct the full purchase price from your gross income. �e 2014 deduction limit has dropped to $25,000. �e Senate Finance Commi�ee has approved a bill to extend this to $500,000 for 2014 and 2015, but it has not yet been passed by the full Congress. 4. Do you have a retirement plan for your business? If not, now is the time to contact a retirement plan specialist to set one up. Some options include: • A SIMPLE IRA plan (Savings Incentive Match PLan for Employees) allows employees and employers to contribute to traditional I�s set up for employees. It is ideally suited as a


Business Development

By Jess McLamb

8 Tips to Prepare Your 8 Tips to Prepare Your 8 Tips to Prepare Your Business for Tax SeasonBusiness for Tax SeasonBusiness for Tax Season

President of Roper Bookkeeping in Raleigh, NC

start-up retirement savings plan for small employers not cur-rently sponsoring a retirement plan. • Simplified Employee Pension (SEP) plans allow employ-ers to set aside money in retirement accounts for themselves and their employees. A SEP does not have the start-up and operating costs of a conventional retirement plan and allows for a contribution of up to 25 percent of each employee’s pay.

A business of any size, even self-em-ployed, can establish a SEP. • A 401(k) plan allows employees to contribute a portion of their wages plus employer contributions to individual investment accounts. For more details and options, go to h�p://www.irs.gov/Retirement-Plans/Plan-Sponsor/Types-of-Retirement-Plans-1. 5. Review your list of �xed assets. Be sure to write o� any assets that are no longer in use. Don’t forget that you are required to �le a business property tax listing in most counties by January 31, 2015. 6. Take advantage of automated

accounting programs and add-ons to track your �nancials. �e more data you track, the easier (and less costly) it will be to �le your taxes at year-end. In addition, you can make be�er �-nancial decisions when you have accurate, up-to-date �nancial data. Be sure to keep personal and business �nances separated! 7. If you are using your personal car for business purposes, be sure to track your business mileage. You can write o� the mileage as a business expense in one of two ways: • Mileage rate method: For 2014, the IRS mileage rate is $.56 per mile. To determine the amount of your deduction, multiply the business miles driven by the mileage rate. • Percentage of cost method: Calculate the percentage of business miles to total miles for the year. To determine the amount of your vehicle deduction, multiply the total costs for your vehicle (gas, oil, repairs, etc.) by this percentage. 8. Be sure to separate business meals and entertainment from other expenses when recording your travel costs. While hotels and transportation are 100% deductible, meals and client entertainment are only 50% deductible. Also note that client and employee gi�s must be limited to $25 per person per year.

Other good resources: h�p://www.newkirk.com/pdf_forms/low_review.pdfh�p://www.irs.gov/Businesses/Small-Businesses-&-Self-Em-ployed/Deducting-Business-Expenses

Photo: Derek Hatfield; Shutterstock

• Delivery Services• In-Home/In-Office Service• Bonded• “X” Years of Experience• Multiple Locations• Professional License or Certification• Guarantee• Recognized Expert (author, speaker, board/committee member, etc.)

Now list your speci�c Top 10 business assets and unique qualities. Once you have listed these, you can use them to help you with the next two Actions.

2) Know who your Customers/Clients are.

In doing research for organi-zations and centers that deal with small business develop-ment, I always talk with local bankers about the obstacles for Small, Minority/Woman-Owned and Disadvantaged Businesses. Almost every one of them tells me that the biggest obstacle for obtaining loans and to being successful is that the business owners do not know who their Customers/Clients are (or will be). �ey further share that when most loan seekers are asked who their customers are, they start their answer with “all” or “any” and follow with a very general category. Here are some examples:

• All women• Any teenager• Any business owners• All dog owners

According to the bankers, it is very common for the response to this critical question to be “Anybody” or “Every-body.” How simple marketing would be if this was true. But anybody or everybody is not an accurate representation of your actual customers/clients.

“�e de�nition of insanity is doing the same thing over and over again and expecting di�erent results.” �at’s a phrase a�ributed to Albert Einstein many years ago. Here’s a modi�cation of that phrase that applies to many Small Business Owners: �e de�nition of frustration is repeat-

edly doing mar-keting activities that bring li�le or no result. Sadly, many Small Business Owners do not understand that marketing is personalized – to their prod-ucts/services

and to their Customers/Clients. Following are three excerpts (Actions) from my book 101 Winning Marketing Actions for Small Businesses that will help you minimize your frustration and avoid ge�ing caught in the insanity of marketing.

1) Recognize that being a Small Business, Woman/Minority/Veteran Owned or a Disadvantaged Business is a Marketing angle and not the foundation of your business or the basis of your marketing plan.

Your Small Business classi�cation or Ownership status can open doors, give you a competitive advantage and help you gain access to opportunities or resources, but it will not get you business. Your best approach is usually “My business can provide you quality (your product or service here). We can also help you meet your goals for the use of Small, Woman /Minority/Veteran Owned or Disadvantaged Business.” If you lead with your Small or Ownership (DBE, MBE, WBE) sta-tus instead of your product/service, then it may appear that you expect to make the sale or get the contract solely based on your disadvantaged status or that you feel entitled to it. Although being a Small, Woman/Minority/Veteran-Owned or Disadvantaged Business o�en increases your opportuni-ties and your odds, it is not the most important factor to a Prospect. You still must meet their need. It is important to understand all your possible marketing angles. List the assets and unique qualities of your business so that you can begin looking for those other angles. Here are some examples to help you get started:



By Janet W. Christy

PRODUCE REVENUEPRODUCE REVENUEPRODUCE REVENUE333

Janet W. Christy is a marketing consultant to Small Businesses, especially DBEs, MBEs and WBEs. She is the author of two business books 101 Winning Marketing Actions for Small Businesses and Capitalizing On Being Woman Owned. Her consulting firm, Leverage & Development, LLC, (www.leverageanddevelop-ment.com) has been operating since January 2003. She can be contacted at [email protected].

continued on page 34

SHELDON POOLE

PRESIDENT & CEO

JQ ENTERPRISES, INC.

GREAT SERVICE.EVERY GUEST. EVERY VISIT.

919.625.1389 • P.O. BOX 90671 • RALEIGH, NC 27675 • www.jqinc.com

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CAROLINA VINTAGES • CROSSWINDS CAFÉ • GORDON BIERSCH • KFC EXPRESS

LA TAPENADE MEDITERRANEAN CAFE • STARBUCKS

• OVER FIFTEEN YEARS IN OPERATION AT RALEIGH-DURHAM INTERNATIONAL AIRPORT

• OPERATES 3 INDEPENDENT CONCEPTS AND 12 CONCEPTS AS A JV PARTNER OF HMS HOST

• CERTIFIED ACDBE IN NORTH CAROLINA

• MANAGES MORE THAN 100 EMPLOYEES AT THE RDU AIRPORT

A gentleman and a scholar is an appropriate description for Clarence Hampton, Bureau Chief for the Alabama Depart-ment of Transportation (ALDOT) Bureau of Compliance and Business Opportunities (Bureau). Hampton carries himself with the style and manner of a southern gentleman, although he was born and raised in the Washington, DC area. His classy yet relaxed demeanor puts others at ease as he strives to improve the lives of residents of Alabama and create business opportunities for DBE �rms. Hampton has worked at ALDOT for 15 years, starting as an Equal Opportunity O�cer in 1999 a�er a previous eight-year career in the Alabama O�ce of the A�orney General. Over the years Hampton has moved through the ranks of the civil rights unit to assume the role of Bureau Chief in March 2013. Hampton began his career in the civil rights arena a�er earning his bachelor’s degree in Urban A�airs from the Univer-sity of Michigan, and later his law degree from the University of Baltimore. Prior to joining ALDOT, Hampton worked as an Equal Opportunity O�ce at the Maryland Department of Transportation and as the Director of Personnel and Management Development at the New Jersey Transit Authority. Hampton has also served as an adjunct professor of Business Law at Alabama State University and Auburn University. He also instructed Business Law and Administrative Law courses for over 16 years at Troy State University. In his current role, Hampton has respon-sibility for all of ALDOT’s Civil Rights and A�rmative Action Programs including Contractor Compli-ance, Title VI, On-the-Job Training, Americans with Disabili-ties (ADA), Equal Employment Opportunity/A�rmative Action, Youth Transportation & Workforce Development, and all aspects of the Disadvantaged Business Enterprise (DBE) program. As a part of the DBE program, ALDOT also manages the state’s Uni�ed Certi�cation Program, Small Busi-


DBE Liaison Officer Spotlight:Clarence HamptonAlabama Department of Transportation

Mr. Clarence Hampton, Esq.

ness Element, and the DBE Supportive Services Programs. Hampton’s current focus is on several major initiatives ALDOT is advancing in the department. First, ALDOT is nearing completion of an organizational transformation that will consolidate nine former transportation divisions into �ve di�erent regions. �is initiative has changed the management structure of the organization, causing Hampton’s bureau to re-align itself with the new management structure. Second, the Bureau is in the midst of implementing the new DBE Final Rule recently issued by USDOT. Hampton’s team is working with Uni�ed Certi�cation Program partners and stakeholders to ensure that Alabama is compliant with the new regulation and implements the new policies and proce-dures as quickly as possible. Finally, the Bureau is working to establish a Workforce Development Direct Intern Program for ALDOT. �e program will provide internship opportunities in technical, skilled cra�, and information technology positions in order to increase employment opportunities for underutilized popula-tions in ALDOT employment. Hampton hopes this program will increase the pipeline of potential ALDOT employees from underutilized groups. In addition to the challenges of leading a full civil rights team of professionals, Hampton is also completing a term as

chairman of the Southern Transportation Civil Rights Executive Council (ST-CREC). �e council consists of the civil rights directors of eight southern states that include Kentucky, Tennessee, North Carolina, South Carolina, Georgia, Ala-bama, Florida, and Mississippi. �e coun-cil of civil rights directors of these states plan the bi-annual Civil Rights Training Symposium and also meet quarterly with FHWA representatives to discuss current initiatives coming from FHWA Headquar-ters. Hampton will conclude his term as chairman at the 2015 STCREC Training Symposium scheduled for August 3-6, 2015, in Orlando, Florida. Hampton’s words of wisdom for other civil rights professionals are to, “remain

�exible in your areas of endeavor.” He encourages fellow prac-titioners to stay open to new opportunities given the wide variety of skill sets and expertise needed as a civil rights and compliance professional. A�er beginning his career focus-ing on equal employment opportunity, Hampton’s �exibility has allowed him to become a multi-dimensional civil rights professional in all areas of a�rmative action programs.

DBE PowerPlayers

and serv-ing as the Manager of Transportation Plan-ning for the King County Department of Transportation in the state of Washington. “I had been in progressively responsible, upwardly mobile

positions during my 15-year career... I just looked at my portfolio and said ‘you know I need to have a di�erent experi-

ence and contribute in a di�erent way, and learn as a professional in a di�erent way.’ I was thinking at the time that I have a lot to o�er to the private sector and perhaps I should put my own shingle out and o�er the resources that I have, as well as a�ract folks like Gary Norris to my practice and just experience the industry in a di�erent way,” Southern said. Her strategy for success has involved building powerful internal and external relationships that have developed the expertise to provide excellent services to

clients, and the opportunity to demonstrate superior value in the marketplace. A key component of her internal relationships is demon-strated by her long-standing right-hand man Gary A. Norris, PE, a senior tra�c engineer who relocated his services with Southern to the East Coast when she moved the company

R elationships are to an entrepreneur, what water is to a human being; a necessity for survival. �ere-fore business owners who are be�er at developing,

maintaining and growing powerful relationships tend to have more success in business. �is is a concept Valerie J. Southern has mastered and built her company upon over the past 16 years. Valerie J. Southern - Transportation Consultant LLC (VJS-TC) began operations in 1998 in Issaquah, Washing-ton, just east of Sea�le; and then relocated to Fairfax, Virginia in 2009. Since the beginning, Southern has used the power of relationships to build a successful consulting practice. Valerie J. Southern - Transportation Consultant, LLC is a multi-faceted consulting and engineering company that pro-vides transportation planning and tra�c engineering services

to federal, state, regional, county, local/tribal governments and to private sector planning and engineering firms. Prior to launching VJS-TC, Southern built a successful transportation career in the government sector. Southern has a master’s degree in Public Administration from Harvard University and a master’s degree in Urban and Regional Planning from the University of Rhode Island. She also has 30 years of experience in manag-ing public transportation systems and programs nationwide. Her previous roles include serving as the Deputy Secretary for Transportation Planning and Capital Programming at the Commonwealth of Massachuse�s; serving as an Expert Consultant for the Fed-eral Highway Administration; serving as the Deputy Director of Policy, Governor’s O�ce, for the State of Rhode Island;

Valerie J. Southern-Transportation Consultant, LLC

DBE PowerPlayers

The Power of RelationshipsThe Power of RelationshipsThe Power of Relationships

The Frederick Douglass Bridge project is part of the larger Anacostia Waterfront Initiative that will utilize

services from local businesses such as VJS-TC. Photo Caption: (rendering of bridge) – Courtesy of District

Department of Transportation

Owner Valerie J. Southern and Gary A, Norris, PE, senior traffic engineer, of VJS-TC.



from Washington State in order to be closer to family. “Gary has been with

me since around 2000. When I decided to move the company to

the East Coast, I knew most of my 22 employees would not be interested in moving, but Gary did have an interest in relocating to the East Coast and we are now reconstitut-ing the company here in the Washington, DC area.” �is partnership between Southern and Norris has generated recent success in helping VJS-TC win a contract with CH2MHill on the Anacostia Waterfront Initiative (AWI) in Washington, DC.

Southern said: “I had a chance to work with Linda Fennell, Program Manager of the District Department of Transporta-tion Business Opportunity and Workforce Development Center and she personally introduced me to Craig Lenhart,

Program Manager of the AWI at CH2MHill. Gary also had a relationship with Ron Paananen, Deputy Program Manager of CH2MHill dating back to our work in Washington State. So through these two relationships, we were able to share our capabilities and expertise and won our �rst contract. Our �rst job was to put together the tra�c signalization and ITS technical requirements for the design-build speci�cations for Segment 1 of the South Capitol Street Project. We then won a second opportunity to complete 30 percent lighting design plans on the Segment 3 of the South Capitol Street Project.” CH2MHill’s Lenhart said, “Valerie J. Southern Transporta-tion’s lighting experts were a perfect �t for our design team. �ey were able to take the project vision established by the client and deliver on the design goals for Phase II of the South Capitol Street Corridor Project.” “It’s all about relationships,” said Southern. “�e largest requirement for being a successful DBE is that you have to network. You have to establish strong relationships with the people who have these visions and are responsible for admin-istering and implementing them.”


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12 American DBE

Phillip Washington, General Manager and CEO of Denver Regional Transportation District

commutes to work everyday using public transportation. “It’s the best thing going,” said Washington, General Manager and CEO of the Denver Regional Transportation District (RTD).

“I hate driving,” he added. Washington explained that he is leading by example, using the region’s transit and light rail sys-tems daily to showcase the organization’s public transporta-tion product. He said his daily commute allows him extra time to read, take a nap, or meet new people. “It’s all about using your own product,” he said. Washington grew up in urban south-side Chicago housing projects and was reliant on public transporta-tion throughout his childhood. He said his familiarity with the importance of transportation helped him value its impact on citizens and businesses that develop infrastruc-ture for its residents. Washington said as a youth, he remem-bers not seeing minority contractors participating in the development proj-ects that a�ected his community, and that led to the passion he now has for his work

and commitment to helping DBEs successfully participate on jobs. He said: “Growing up in an urban environment and being dependent upon transit to get from Point A to Point B, and understanding the value of public transportation; understand-ing the economic onset of having public transportation in terms of having jobs, going to school; disabled folks ge�ing around. �at experience with public transportation--to in-clude building things in my community--in an urban envi-ronment and o�entimes not seeing minority contractors led me to the passion I have now for small and minority-owned business inclusion.”

Washington’s career is a notable crescendo of major accomplishments identi�ed both by personal achieve-ment and by sup-porting and propel-ling the success of others. He spent more than two de-cades in the military, retiring as a decorat-ed active-duty U.S. Army soldier, having a�ained the rank of Command Sergeant Major (E-9); the highest non-com-missioned o�cer rank an enlisted person can achieve. Washington said that

D E N V E R ’ S P H I L L I P W A S H I N G T O NA C H I E V E S M E G A - S U C C E S S

I N T R A N S P O R T A T I O N

Mr. Phillip Washington

“You must perform. �ere are far too many cases of DBEs and primes that don’t perform. DBEs—their bread and bu�er is quality work. If they don’t do a good job, it’s hard to recover. DBEs must perform. �ere is no excuse for not performing.” He said unfortunately, even isolated cases of poor DBE performance cast a negative opinion on the agencies and programs that advocate for DBE participation.

Washington said the best-case scenario is when DBEs become prime contractors on projects. In addition, he’s also working to increase participation and involvement by DBEs in APTA; not only by becoming members, but also taking on leadership roles in the organization. A �agship program for RTD under Washington’s leadership is FasTracks; one of the largest transit expansion programs in the country. �e FasTracks program is developing 122 miles of new commuter rail and light rail, 18 miles of bus rapid tran-sit service, adding 21,000 new parking spaces and redevelop-

ing Union Station into a multimodal transportation hub to create vibrant, mixed-use transit-oriented communities. �e West Line (W Line), RTD’s �rst FasTracks-funded rail line, opened in 2013, eight months ahead of schedule and within its adopted budget--adding 12 miles of light rail for an RTD system-wide total of 47 rail miles. FasTracks has invested $5 billion across the region.

Washington also was instrumental in creating and develop-ing the RTD & Community Workforce Initiative Now (WIN) program, a collaborative workforce partnership that creates career pathway opportunities on transportation infrastruc-ture, design and construction-related projects for unemployed and underemployed residents of regional communities in the Denver area. �e inspiration was derived from his childhood. “Seeing people building infrastructure in my community that did not look like me” is what motivated him to launch the pro-gram. �e idea behind the WIN program is to communicate with people who live in the community where infrastructure is being built, and say, ‘We want you to help build your own community.’ Washington said that part of the process is to put WIN goals on the projects, in the contracts, in the RFP and require the primes to meet that goal, just like they meet DBE goals. “When you bring folks on to build infrastructure, or to oper-ate and maintain infrastructure in the communities where

various aspects of his overseas military expe-rience fuels the work he does now, including a reemphasis on infrastructure projects and nation-building. Over the past 15 years, he has transitioned into increasingly higher levels of supervision and management within the transportation industry. In August 2014, Washington was elected chair of the American Public Transporta-tion Association (APTA). He was awarded a White House Transportation Innovators Champion of Change award and in 2013 was named APTA’s Outstanding Public Transportation Manager in North America. He also serves as a member of COMTO (Conference Of Minority Transportation O�cial) and the Transportation Research Board executive commi�ee. Washington said, “I de�ne suc-cess by seeing other people around me doing well. If other people around me are doing well and being professionally developed, and if other people around me are not afraid to come to me with their issues, then that is success in my mind. I think the minute people stop coming to you with their problems, that’s the minute you become less successful and less trustworthy.” Washington said he is equally passionate about DBE success as a result of not seeing a large number of minority contractors contributing to his com-munity as a child and young adult. Regarding DBE participation and contract awards, he said, “I’m go-ing to insist on the a�ainment of goals.” He noted that simply relying on DBE good faith e�orts was not su�cient. Washington stated that in addition to outreach, there must also be consistent technical outreach. He stated: You must have people on the team who are technically pro�cient to advocate for DBEs; who are pro�cient with estimating and scheduling. One of the things that DBEs lack and really need help with is estimating. When you bid on the job and you are 50 percent over the cost, or the internal estimate of the agency, then that tells me that you don’t know how to esti-mate. Now, you’re 50 percent over, when the internal estimate is unveiled; everyone else is in the ballpark. In some cases, there is an entitlement mentality with regard to DBE partici-pation. �ere is a mentality out there that says, I may not have to do the hard work of estimating and scheduling, and I’m still entitled to get the job or subcontract. You’ve got to be in the ballpark. You’ve got to be within 10 percent for me to even think about it… �is is real life. Washington also emphasized the importance of managing expectations. “Everybody isn’t ge�ing a contract,” he said.


“I de�ne success by seeing other people around me doing well.”

continued

by Jordan Taylor


they live, there is a di�erent pride factor in that infrastructure as they build it up,” he said. Embedded in the WIN process is the ability to track progress in speci�c zip codes where the program has been implemented. “�ere is a direct correla-tion between jobs and the impact on the community in those areas, and we’re tracking those [crime rates, home ownership and education levels],” Washington said. “I want to be able to go to the Department of Justice--or even the local police department--and say, ‘We have laid this program down in this zip code, and guess what, I need some grant money to keep this program going because the crime rate has decreased by X percent in this particular zip code. And that’s the inspiration behind the WIN program, in summary.’” According to Washington, FasTracks DBE participation has been tremendously successful. He said: “We have met all of our goals on FasTracks on every project; not just met them, we’ve exceeded them. �is has not been easy. We have had some bumps in the road too; we’ve had some failures out there. �e various pillars: Outreach. Technical outreach. Compliance. Aggressive goal-se�ing. Advocacy. All of those things have worked very well for us. �ere’s some advocating that must go on. It must start at the top. If there is no advocat-ing by the CEO, then your program is not going to succeed.” In public and private se�ings, Washington touts the �ve “mega trends” that he believes will fundamentally shi� the way business is done in the transportation industry:

1. Technology innovation2. Changing customer demographics and lifestyles3. Shi�ing workforce demographics4. Evolving environments for �nancial resources5. Increasing expectations for improved safety and security

As a result, DBEs can strategically position themselves to take advantage of growing opportunities for business develop-

ment. He said that small businesses and DBEs have to under-stand the environment that will be in existence over the next 5 to 10 years in transportation. “DBEs have to understand where they �t in. Public-Private Partnerships (P3 delivery model) are the trend. One of the questions will be who takes on what level of risk. �e small business or DBE must under-stand that there may be some risk in a project that they have to take on,” Washington said. A new regional Business Resource Management o�ce was opened to assist DBEs and SBEs in reaching higher levels of business development and contracting success. �e BRM also coordinates DBE/SBE project outreach for FasTracks and other RTD projects. In a statement, the BRM o�ce highlight-ed distinct e�orts that set it apart from other business assis-tance programs, including: working directly within the Civil Rights Division’s mission to “level the playing �eld;” targeting work with RTD contracts; focusing on increasing a company’s DBE/SBE capacity; using project management practices to help small businesses troubleshoot problems as they arise; and working with companies that have an expressed desire to grow and succeed. Washington said: “DBE participation is a must. A lot of these projects are in urban environments. No more can we practice the idea of tearing down communities and displacing communities of color, creating gentri�cation, and celebrat-ing. We must—as public entities—make sure that there is involvement by DBEs. We have to show what the impact will be and what the impact is in the urban areas and communities of color; whether it’s jobs or DBE participation. We have to show the economic bene�t of the communities where we’re building in; and make sure that people who live in these com-munities are helping to build the infrastructure that we are implementing and constructing.”

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recently issued and long-awaited Final Rule, “Disadvantaged Business Enterprise: Program Implementation Modi�ca-tions.” Others have lamented the lost opportunity the new rule represents in its failure to address long-standing ambigui-ties and inequities in the basic presumptions underlying the meaning of “economic disad-vantage.” E�ective November 3, 2014, the new agency guidance for 49 CFR Part 26 is a mixed bag of long-desired administrative �xes to certi�ca-tion standards, procedures, and personal net worth (“PNW”) forms, data collection requirements, clari�cations regarding goal se�ing and good faith e�orts, general program administration ma�ers, and disappointing failures to provide much needed clarity and common sense guidance to state recipients on the determination of economic disadvan-tage. �is article is the �rst in a series of articles that sum-marizes and critiques various aspects of the 180-page DBE Program Final Rule of 2014. As a recent O�ce of Inspector General Audit Report emphatically underscored, the fair and consistent administra-tion of DBE certi�cation standards has been undermined by poor guidance and inadequate oversight of state recipients by USDOT. Le� largely to their own devices, state recipients of USDOT funds have been quite challenged in balancing presumptions of economic disadvantage (based upon arcane PNW calculations), against rebu�al evidence of the lack of economic disadvantage that is suggested by vague and subjec-tive USDOT guidance. �e OIG report found many errors and inconsistencies in the manner in which state recipients were calculating PNW for DBE certi�cation applicants. As a result, �rms that were not eligible for the presumption of economic disadvantage may have been certi�ed as DBEs, and

�rms whose owners were below the PNW cap and eligible for the presumption may have been improperly denied certi�cation. �rough such widespread inconsistencies, the integrity of the program may have been placed in jeopardy. Prior USDOT guidance regarding determinations of “eco-nomic disadvantage” referenced language in 49 CFR § 26.67 (b)(2) that states, in pertinent part, that while the PNW cap of $1.32 million is intended to prevent DBE certi�cation to persons that could “reasonably have been regarded as having accumulated wealth too substantial to need the program’s assistance,” there may also be instances where an individual’s personal net worth is below $1.32 million that may properly be regarded as not being economically disadvantaged.Former

USDOT guidance further stated that “in determining whether an individual is economically disadvantaged, a recipi-ent is entitled to not only look at the individual’s PNW but also at his or her overall economic situation to make a

reasonable determination of whether the indi-vidual is fairly regarded as being economically

disadvantaged.” �is phrase, “fairly re-garded as being economically dis-advantaged,” is so vague and circular

as to cause all sorts of mischief in the cer-

ti�- cation process. Adding insult to injury, the prior USDOT guidance then stated that although an individual’s personal net worth may be below $1.32 million, “the person’s assets (e.g., a very expensive house, a yacht, extensive real or personal property holding) may lead to a conclusion that he or she is not economically disadvantaged. �e recipient can rebut the individual’s presumption of eco-nomic disadvantage under these circumstances, as provided in Sec. 26.67(b)(2).” �is “guidance” obviously begs the question: How expensive is a “very expensive house?” How big does a boat have to be before it becomes a “yacht” worthy of �urston and Lovey Howell? At what point does a person cross the line from dabbling in passive income from owning a few rental properties into becoming a real estate magnate? In the �nal analysis, at what point does an individual cease to be “economically disadvantaged” as compared to who else or what else?


As owners of Disadvantaged

Business Enterprises have counted

their blessings this holiday season, many have exhaled a sigh of relief at key provisions of USDOT’s

administrative �xes to certi�ca-tion standards, procedures,

program administration ma�ers, and disappointing failures to provide much needed clarity and common sense guidance to

disadvantaged.” �is

vague and circular as to cause all sorts

of mischief in the certi�- cation process. Adding insult to injury, the prior USDOT guidance


�is woefully inadequate guidance has invited very subjec-tive determinations based upon a recipient’s own personal views about the size of a house, the a�ordability of a certain model of a car, and the number of furs and diamond pendants that a so-called wealthy person would own. �e greatest danger in using such subjective standards is that they will inevitably lead to widely varying and inconsistent results in economic disadvantage determinations based upon personal life experiences and views. More importantly, such subjective standards will make a complete mockery of the presump-tion of economic disadvantage status, as there is nothing to prevent the DBE Certi�cation Commi�ee members from arbitrarily deciding that if they personally could not a�ord to live in a big house and to buy the possessions of the DBE �rm owner, that owner must not be economically disadvantaged and must be too wealthy for the program. In our view, rebut-tals of this legal presumption should be based upon probative evidence that addresses relative economic disadvantage of one business owner as compared to another non-disadvan-taged business owner with whom he or she competes; not upon some subjective opinion about the “richness” of some-one’s personal belongings. Consider the following: Warren Bu�et has a personal net worth near $46 billion. Nearly everyone in the country would be considered “economically disadvantaged” as compared to him. Yet, he lives in a house in Omaha that he purchased in 1958 for $31,500, and he drives a 7-year-old Cadillac. Meanwhile, as the recent sub-prime mortgage crisis and its high home foreclosure rates made quite clear, thousands of low and middle income individuals (some of whom were

Franklin Lee, a partner in the Baltimore-based law �rm of Tydings & Rosenberg LLP, represents DBE �rms in certi�cation applications and appeals. In addition, he counsels state and local governments in the establish-ment of economically inclusive con-tracting policies, and urban economic development strategies. As former Chief Counsel to the Minority Business Enterprise Legal Defense & Education Fund (“MBELDEF”), he �equently defended the DBE Program on behalf of minority-owned �rms against consti-tutional legal challenges, and advised USDOT regarding post-Adarand reforms to the DBE Program. Mr. Lee can be reached at �[email protected].

unemployed) managed to own multimillion-dollar mansions despite being quite economically disadvantaged (and in the worst cases, in bankruptcy). Moreover, homeless people have been known to live out of the back seat of a Mercedes Benz. Based solely upon such stereotypes relating to personal possessions, the bankrupt homeowner and the homeless person would be considered too wealthy to be economically disadvantaged, while Warren Bu�et might have a real shot at being certi�ed as a DBE owner. Our point here is that by placing too much emphasis on the subjective and on popular stereotypes about the trappings and possessions of wealth, it is quite easy to come to the wrong conclusion about the relative “economic disadvantage” that is truly meaningful to a remedial program of this type. �e new DBE Program Final Rule presented an excellent opportunity for introducing some much needed clarity and objectivity on this issue. Sadly, however, the new Final Rule merely parrots the same prior examples provided by USDOT of what it considers to be relevant evidence for rebu�al purposes. In the next part of this series of articles on the new Final Rule, we will advance several alternative industry-based objective criteria for determining economic disadvantage that we suggest for the consideration of USDOT and state recipients.

1 The DBE Program Final Rule was issued on September 25, 2014 at 79 FR 59566.2 The USDOT Office of Inspector General Audit Report (issued April 23, 2013) severely criticized the lack of oversight, training, and guidance provided by USDOT to recipient states regarding instructions to DBE firms regarding certification and PNW forms and subsequent evaluation of completed forms by recipient states.

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JCDecaux and Interactive Airport Advertising Build Mutually Bene�cial Relationship


“�e only place oppor-

tunity cannot be found is in a closed-minded person,” is a quote by Bo Benne�, a success-ful entrepreneur and the author of the book “Year to Success.” �ankfully, the opposite of this thought is also true. An open-minded person can �nd opportunities where they currently do not exist, especially when two open-minded people come together for a common goal. �e la�er statement re�ects the story of two solid business people seeking opportunities in the airport advertising indus-try six years ago. Carolyn Sawyer, President/CEO of Inter-active Airport Advertising, a subsidiary of �e Tom Sawyer Company, has always been open to new opportunities for her ACDBE-certi�ed communications company started in 1996. Likewise, Bernard Parisot, President/Co-CEO of JCDecaux North America, was seeking ACDBE partners to help en-hance their airport advertising business in the United States. Neither knew the other, but agreed to meet over a cup of cof-fee and form a business relationship with a handshake.

Interactive Airport Advertising Open to Endless Possibilities

Sawyer has never forgo�en how, “Bernard �ew down from New York one morning to meet with me in Wash-ington D.C. We hit it o� right away. We had a great conver-sation and both be-lieved that we could work together.”

When the two met, JCDecaux was the incum-bent, pursuing additional ACDBE partners for Reagan Na-

tional and Dulles International Airports. JCDecaux is the worldwide leader in outdoor advertising and airport advertising, and currently has advertising conces-sions in 148 airports located in 19 countries. Parisot said: “I have been in the airport advertising business since 2002, when we acquired a company that had multiple contracts at U.S. airports. At the time, we were not familiar with the ACDBE participation program. But I looked at what the spirit of the program was and I found that it was a very commendable in-tention, which was to have companies like mine mentor small-er companies/DBEs and help them grow and acquire expertise in an area which they could not get into on their own, because the contracts where they would be invited to participate would be too big for them on their own.” Parisot’s instincts were right. While TSC’s experience did not include selling advertising in airports, the award-winning com-munications company had over a decade of experience in the mass media industry. �e company’s team had complementary skills well-suited for success in this related sector. In addition to her entrepreneurial experience, Sawyer spent 16 years in the

JCDecaux advertising display at Ronald Reagan Washington National Airport

JCDecaux and Interactive Airport Advertising Build Mutually Bene�cial Relationship


Interactive Airport Advertising Open to Endless PossibilitiesBy American DBE Magazine Sta� Writers

media, on the front lines as a television network correspon-dent and news anchor. Parisot said: “When I met with Carolyn the �rst time... she was very eager to diversify, and she found that this wasn’t so far from what she had done that she couldn’t learn to do it. She knew that if she dedicated herself to it re-ally well, that she would be able to achieve results. So we have made an agreement and we have provided her with support, with training, and today she is in charge of selling advertising in four of our airports; and there will probably be more, and she is doing a very good job.” Sawyer’s leadership of Interactive Airport Advertising has helped JCDecaux to grow its clientele not only at Reagan Na-tion and Dulles International, but Baltimore/Washington In-ternational, and Miami--the largest International Airport in the United States. �e company continues to explore additional opportunities in the aviation industry and believes the airport advertising niche is one they can simultaneously grow. TSC is a certi�ed DBE �rm in 40 states and is active in network-ing through industry organizations like the Airport Minority Advisory Council (AMAC) to build relationships and stay abreast of upcoming trends. Sawyer’s vision has evolved over the last 19 years, but her long-term goals have remained consistent--to build excellent, sustainable lines of business. Despite life’s hectic pace, this author of two books still loves to travel in pursuit of lifelong learning and reads tons of books. Her advice to other DBEs re-�ects her beliefs. Sawyer said: “You have to remain open to any and every possibility; explore the opportunity. If I think back to when the company started and our very �rst client… if we were still doing what we did back then in today’s Information Age, we would be out of business. What has kept us in business is our willingness to be open to the possibilities. Who knew our dynamics sales team would daily place international clients and brands in halls, on digital walls and baggage claim columns in the nation’s leading airports? It came from remaining open.”

www.interactiveairportadvertising.com (888) 729-9373

Top to bottom:

Carolyn Sawyer, President/CEO of Interactive AdvertisingBernard Parisot, President/Co-CEO JCDecaux North AmericaRonald Reagan National Airport


Fraudulent actions of various types occur every year and a�ect countless businesses and individuals on a daily basis. Unfortunately, the federal government, speci�cally the United States Department of Transportation (USDOT), is not im-mune to these acts. Defrauding the government, according to justice.gov, is de�ned in simple terms: “To conspire to de-fraud the United States means primarily to cheat the Govern-ment out of property or money, but it also means to interfere with or obstruct one of its lawful governmental functions by deceit, cra� or trickery, or at least by means that are dishon-est.” �e USDOT is beginning to crack down on fraud within its Disadvantaged Business Enterprise (DBE) program. According to the United States A�orney’s O�ce—Western District of North Carolina—wrongful acts of this kind were discovered in North Carolina. Boggs Paving Inc. (Boggs Paving) is at the center of a federal case with USDOT. Carl Andrew Boggs III, of Waxhaw, N.C., pleaded guilty to one count of conspiracy to defraud the USDOT and one count of money laundering conspiracy in U.S. District Court. Boggs, president and part-owner of the company, used his Monroe, N.C.-based company to obtain government-funded construc-tion contracts by misrepresentation and misusing a DBE. By de�nition, DBEs are for-pro�t small businesses that are presumably socially and economically disadvantaged. �e owners, who are mainly minorities and women, own at least 51 percent interest of their companies and control manage-ment and daily business operations. DBE categorization is not limited to minorities, but also includes other individuals who qualify as socially and economically disadvantaged, on a case-by-case basis. DBE fraud usually refers to major companies or prime contractors exploiting DBE status for �nancial gain. In the case involving Boggs, the story is complex. In a press release about the case, Anne M. Tompkins, U.S. A�orney for the Western District of North Carolina, stated: “Cheating to obtain publicly-funded construction contracts enriched Boggs Paving and its owners and undermined the goal of the DBE program, which helps small and minority-owned businesses thrive by ensuring their ability to work on federal construction and transportation projects.” �e DBE pro-

on DBE Fraudby David L. Fi�s Jr.

USDOTCracks Down

gram is designed to increase the participation of DBEs and small business enterprises (SBEs) in federally-funded public construction and transportation-related projects. In order to obtain the contracts Boggs wanted, he joined forces with Wingate, N.C.-based Styx Cuthbertson Trucking Company Inc. (Styx), a road construction hauler and a certi�ed DBE and SBE. �e costly ba�le began when Boggs’ company won the bid for a contract with the North Carolina Department of Transportation. NCDOT contracted Monroe Bypass Con-structors, a joint venture of Boggs Paving; North Charleston, S.C.-based United Infrastructure Group; Lake City, Fla.-based Anderson Columbia Co.; and lead design �rm, Baltimore-based Rummel, Klepper & Kahl, to build the estimated $700 million Monroe Bypass/Connector, a 19.7-mile toll road. �e contract called for a toll road to be built that would span from U.S. Highway 74 near Interstate 485 in Mecklenburg County to U.S. Highway 74 between the towns of Wingate and Marshville in Union County. �e contract with the joint venture was for $308.3 million and was awarded in 2011. Boggs Pav-ing, the only

contractors, including many small businesses, by defeating e�orts to ensure a level playing �eld in which all �rms can compete fairly for contracts,” said Marlies Gonzalez, Regional Special Agent-in-Charge of the U.S. Department of Transpor-tation, O�ce of Inspector General. Whether Cuthbertson or Boggs knew it or not, their fraudulent actions created a ripple e�ect that has raised questions about the DBE program and hindered e�orts by NCDOT to ensure timely completion of the Monroe Bypass/Connector. Currently, the court case is still pending, and construction has been put on hold due to unrelated environmental issues. It is undetermined whether or not Boggs Paving will be allowed to continue their work once the issues are resolved. �us far, Boggs Paving has been paid 20 percent of the 2011 contract although construction has been blocked by the environmental lawsuit since 2012. As of August 2014, the state had paid the joint venture $47 million to “compensate the �rms for mobilizing for construction without having to do any work,” according to reports in the Charlo�e Observer, a daily newspaper that initially covered the story. Both Boggs’ and Cuthbertson’s companies have been banned from bidding on any future federal projects. Styx, has been removed from the bypass project and is no longer listed as a certi�ed DBE on NCDOT’s list of certi�ed �rms. Styx is still listed as an SBE. By September 2014, all eight defen-dants: Cuthbertson, Boggs, four of Boggs’ executives, Boggs Paving and Styx had pled guilty for their actions. Currently, all are await-ing sentencing. In August, the O�ce of Inspector General issued the following statement: “As a result of Cuthbertson’s plea, the United States will �le a motion to dismiss all charges against Styx.” As of October 2014, with construc-tion being blocked and sentencing still pending, the NCDOT has yet to decide the future of the bypass project. According to public information, Boggs was released on bond and will be sentenced by the Court at a later date. �e conspiracy to defraud US-DOT charge carries a maximum of �ve years in prison and $250,000 �ne. �e money laundering conspiracy charge car-ries a maximum of 20 years in prison and a $500,000 �ne or twice the value of the property involved in the transaction.

�e conspiracy to de�aud USDOT charge carries a maximum of �ve years in prison and $250,000 �ne.

company of the joint venture involved in the federal case according to Monroe city o�cials, had been known for their lower bids and having a good reputation working with the state. Of course, reputation alone was not enough to guaran-tee that the company would be able to bid on the project. In order to not be disquali�ed from bidding, companies had to agree to work with a DBE or SBE which would get a share of the work. From 2003-2013, according to documents �led on the case and statements made in court, Boggs, Boggs Paving and the other defendants admi�ed to falsely certifying that a DBE or an SBE would perform and be paid for their work on the project. Boggs Paving and Styx had worked together for more than a decade. Boggs Paving and John Cuthbertson, chief execu-tive of Styx, set up bank accounts in Cuthbertson’s name. However, the accounts actually funneled funds directly back to Boggs Paving. Boggs’ company also placed magnetic decals with “Styx” signage on its trucks, covering the “Boggs” logo. �is action reportedly was done to dupe the federal govern-ment into believing Cuthbertson’s company was doing work speci�ed on various contracts. Cuthbertson was paid kickbacks to participate in the fraudulent scheme utilizing his company’s name only, allow-ing his company’s DBE status to be used by Boggs. According to court records and a press release, from June 2004 to July 2013, Boggs Paving was the prime contractor on 35 federally-funded contracts, and was a subcontractor for two additional contracts worth more than $87.6 million. �e company claimed DBE credits of approximately $3.7 million on these contracts for payments purportedly made to Cuthbertson’s company. In reality, Styx only received payments of approxi-mately $375,432 for actual work.

While Styx’s owner agreed to partake in the misdeeds willingly, his as-sociation with the fraudulent activity may cause residual harm to the DBE program. “DBE fraud harms the integrity of the DBE program and law-abiding

David L. Fitts Jr.

Photo: Paul Matthew Photography; Shutterstock


tee’s Subcommi�ee on Aviation. Pinkerton said: “�e current system is working and airport funding projects that are based on need are being met with existing resources across the country… Raising the PFC cap will dampen demand, hurt travel and tourism, and could imperil air service to small communities…�ere is no current or foreseeable crisis in airport funding – we urge members of Congress to stick to the winning formula in place and reject further tax hikes on airlines and their customers.” On the other side of this important issue is the airport industry, which consists of the physical airport facilities such as John F. Kennedy International Airport in New York, or Los Angeles International Airport and others. Airports assert that the current funding system is insu�cient to meet delin-quent and growing airport improvement needs. Airports are advocating for an increase in allowable PFCs that they are allowed to charge customers, and believe that an increase in PFCs will allow them to fund their own improvements and greatly reduce their need to receive AIP funding from the government. However, any increase to the current PFCs would have to be approved by Congress in the reautho-rization legislation. �e airport industry is represented by the Air-ports Council International – North America

(ACI-NA) trade association.

Aviation

AMAC Continues Push for DBE Opportunities in

PFC-Funded ProjectsBy American DBE Magazine Sta� Writers

he Airport Minority Advisory Council (AMAC) is a trade association with the mission of increas-

ing employment and business contracting diversity in the airport industry. To this end, a signi�cant issue facing the organization is the ongoing discussion in Washington, DC on the best way to fund airport improvements in the much-needed Federal Aviation Administration (FAA) reauthori-zation legislation expected to take center stage in 2015. A major component of the legislation must address how to fund airport improvements at major U.S. airports, and stake-holders on this issue are primarily divided on the issue. One on side of the issue is the airline industry consisting of the major airline companies such as Delta Air Lines, South-west Airlines, American Airlines and others. �eir belief is that the current system of funding airport improvements through a mixture of funding from the federal government in the form of Airport Improve-ment Program (AIP) grants, and funding from the collection of Passenger Facility Charges (PFCs) is the way to go in the future. AIP grants are awarded by the FAA from federal transportation funds, while PFCs are fees collected by airports of up to $4.50 on each passenger enplanement at their facility. �e airline industry is represented by the Airlines for America (A4A) trade association. A4A stands �rmly behind the position that PFCs should not be increased in the reau-thorization bill. In June 2014, Julie Pinkerton, Senior Vice President for Legislative and Regulatory Policy testi�ed before the House Transpor-tation and Infrastructure Commit-

T

ACI has published a position statement supporting an increase in PFCs to restore the purchasing power of the funding and to allow airports more �exibility in funding airport improvements. �e statement explained: “Restoring the purchasing power of the PFC as well as giving airports more freedom to manage their own PFC programs to meet individual airport needs is one of ACI-NA’s top priorities… �ere have been no adjustments to the PFC program since 2000, diminishing the real purchasing power of PFCs. When adjusted for in�ation, the $4.50 in 2000 is the equivalent of $2.45 today.” �e U.S. Congress will ultimately decide the future direc-tion of airport funding as they wrangle over a reauthorization bill for the Federal Aviation Administration (FAA). �e cur-rent bill expires in September 2015, and all parties involved are in agreement that the new bill should not only renew existing levels of funding, but also create a means to address the signi�cant de�cit in funding for airport improvement needs. �e Obama Administration has supported an increase in PFCs primarily as a means to create additional funding for airport improvements while reducing the amount of AIP grant funding provided to airports from the federal government. However, as discussions continue between the airlines, airports and federal government, DBE �rms are threatened by an outcome that could impact their ability to participate in improvement projects at major U.S. airports. �is is due to neither side embracing the need to include DBE program provisions in the legislation allowing an increase in PFCs. Currently, although PFCs play a role, most airport improve-

ment projects are funded by AIP grant funding from the FAA. AIP funding is used to �nance improvements

such as runway & taxiway improvements, airport lighting, airport signage, environmental studies and planning studies. Projects funded using AIP grants must include DBE program provisions ensuring disadvantaged �rms have the opportu-nity to participate in these projects. In contrast, airport improvements

made with funds collected from PFCs are not required to include DBE provisions. Any initiatives to include diverse companies in PFC-funded projects are le� to the individual airport’s governing authority. AMAC President Shelby Scales is leading the charge to shed light on this issue with legislators, government o�cials and DBE program stakeholders. She said: “AMAC is advo-cating three primary positions on the airport funding issue and the FAA Reauthorization Bill. First, AMAC opposes cuts to the AIP; second, AMAC supports increases to PFCs; however third, we be-lieve PFC increases must be tied to the expansion of M/W/DBE require-ments to PFC funding streams to o�set any potential AIP cuts.” ACI-NA, the primary group supporting the PFC increase, recognizes this challenge for disad-vantaged businesses and a�rmed its support and commitment to DBEs in a statement released by the organization. However, ACI-NA says it “does not support the application of federal DBE mandates for PFCs user fees.” Instead the organization advocates that airports use state, county or community DBE contracting programs for projects funded by PFCs. Although ACI-NA’s statement falls short of AMAC’s ultimate goal of having the federal DBE program connected to PFC-funded improvements, it does address their primary concern as described in a statement from the organization. “AMAC’s chief concern is a level playing �eld for minority

and women owned businesses – and that goal requires robust

minority and women busi-ness programs regardless

of whether the programs are federal or local

in nature.”

City of Cleveland Director of Port Control Ricky D. Smith discusses the potential impact of an increase to PFCs with Miguel Southwell, Aviation General Manager of the Hartsfield-Jackson Atlanta International Airport and other airport directors at the 2014 AMAC Business Opportunity Conference in Denver, CO.


Civil/Highway

Surety bonding is seen by many DBEs �rms as a barrier to participating in large transportation projects, such as Public-Private Partnerships. �is belief is especially true for less expe-rienced �rms that are unfamiliar with surety bonding and the important role it can play in developing a viable construction business. However, successful �rms are aware that surety bond-ing represents a high-powered tool in the toolbox of a successful contracting business that can help a �rm be�er manage its busi-ness operation and open up opportunities on the large projects being let by government agencies. In fact, bonding is o�en not an option, but a requirement for DBEs performing trades such as concrete, drainage, water & sewer, and asphalt paving.

Public-Private Partnerships (P3s) are contractual agreements formed between a public agency and a private sector entity that allow for greater private sector participation in the delivery and �nancing of transportation projects. In these arrangements, the private company assumes the role of the government entity for the �nanc-ing, construction, maintenance and operation of a transportation facility. In return for taking on this responsibil-ity, the private company earns revenue (and hopefully a pro�t) from the trans-portation facility by way of toll fees, government payments and/or sub-concessionaire payments.

P3 projects o�er a signi�cant oppor-tunity for DBEs due to their large size and wide variety of tasks required to complete the project. In addition, the Federal Highway Administration is encouraging states to consider the use of P3 projects to encourage creativity, innovation and the private funding of transportation infrastructure projects. �erefore the prevalence of P3 projects is expected to increase in the future. Currently

Surety Bonding: the DBE Ticket to

Niveen Kattan

there are 21 new build facility projects that are P3 concessions in the U.S., with more in the planning stages. �e 21 projects range in size from $127 million for the Teodoro Moscoso Bridge in Puerto Rico, to $2.6 billion for the IH 635 project in Florida. Opportunities on these and newly developed P3 projects is a trend DBEs should be aware of moving forward.

However, whether a project is a P3 or simply a large govern-ment project, the risks are o�en high for the prime contractor selected to build the project due to the size, complexity and project schedule requirements. �erefore, the vast majority of primes require that subcontractors performing signi�cant scopes of work provide bonding to minimize their risk. Addi-tionally, a prime contractor’s bonding company will o�en require the prime to hire only bonded subcontractors for cer-tain scopes of work on large projects as a part of their bonding agreement.

Niveen Ka�an, president of Atlan-tic Contracting Company, a DBE concrete contractor in Greensboro, NC has been successful as both a prime and subcontractor on roadway projects. Ka�an said that bonding is required on nearly all of her company’s jobs on highway construction proj-ects. “Being able to get bonded, being a bondable company, really allowed us to have the opportunity to bid on jobs. Without the bonding, we could not even get prequali�ed to be considered for many jobs,” Ka�an said. Successful and experienced DBEs realize that bonding can be a competi-tive advantage and di�erentiator for companies in competition for large projects. Many of these projects are

P3s or design/build jobs where price is a major factor, but not the only factor, in the selection process. �erefore prime con-

P3 Opportunities



tractors are more likely to choose subcontrac-tors based on the best overall value, consider-ing price along with fac-tors such as experience, track record and bond-ing capacity.

Joe Lewis, principal of Business Transforma-tion Group (BTG) in Virginia, provides sup-portive services to many DBEs seeking oppor-tunity on large trans-portation contracts. Lewis sees a positive bene�t for DBEs that get bonded. Lewis said, “Having bonding is an investment in the busi-ness, so the bene�ts are long term. �e bene�ts include having a be�er marketing position over competitors who don’t have a bond, learning �nancial discipline which allows for a be�er run busi-ness, and improved perspective in the marketplace about your business operations.”

Ka�an believes that the bene�ts of having bonding far outweigh the challenges involved in completing the bonding application process and working with a bonding company. “It is a li�le bit of a big brother relationship,” she said. “�ey always have their eyes on you, and every time you want to do something you have to somewhat mention it to your silent partner; things like ‘we are thinking about buying a big piece of equipment; or we took some money out so don’t get mad.’ But it’s a constant communication that acts sort of like a �nancial advisor with regards to le�ing you know, ‘if you do this, this is what it will do to your bonding capacity.’”

�e Surety & Fidelity Association of America (SFAA) is actively reaching out to DBE �rms to provide education and assistance to help DBEs be�er navigate the surety bonding pro-cess and increase their success in securing bonds. In addition to serving as co-sponsor of the Bonding Education Program in

partnership with the U.S. Department of Transportation, the SFAA also sponsored the �rst DBE/MBE/SBE Surety Summit in September 2014. �e summit assembled business owners, prime contractors, bonding companies, and government agen-cies to discuss strategies to increase bonding opportunities for DBE/MBE/SBE �rms and expose the challenges these �rms face when seeking bonding. Joanne Brooks, Esq., Vice Presi-dent & Counsel of SFAA said the following about the Summit:

“For the �rst time, the SFAA brought all the stakeholders to the table to assure alignment and support for our mission to increase the pool of quali�ed,

sustainable DBE, MBE and SBE contractors who are bondable. We are changing the conversation and perception of bonding. Bonding should be viewed not as a hurdle but as an empower-ment tool. �e Summit audience consisted of the underwriters who write DBE, MBE and SBE contractors, as well as agents and leaders of other associations with whom we partner and share a common mission. I believe we are making signi�cant strides in removing negative perceptions that some diverse �rms have

The SFAA is actively reaching out to DBE firms to provide education and assistance

Partnering OpportunitiesTravis Spur Rail Bridge Replacement Anti-Climb Fence on New Bridge Shared Use Path Furnish Work Platforms for Stay Cable Installation on Tower Permanent Concrete Traffic Barriers PPC Bridge Deck Overlay Right of Way Security Fence Galv Steel Tube Rail on Concrete Barrier Galv Steel Pedestrian Railing on Shared Use Path of New Bridge Landscaping/Seeding Under Ground Fire Stand PipeMisc. Metals Supply

The Goethals Bridge Replacement Project is a design-build

project for the Port Authority of New York & New Jersey

(the Authority). The project will replace the existing Goethals

Bridge which spans the Arthur Kill River on I-278 connecting

Elizabeth, New Jersey and Staten Island, New York.

Kiewit-Weeks-Massman, AJV (KWM) has been selected by

the Authority to design and build the new Goethals Bridge.

Diversity Contract Manager, 470 Chestnut Ridge Road, Woodcliff Lake, NJ 07677(201) 571-2571 [email protected] Kiewit-Weeks-Massman, AJV is An Equal Opportunity Employer

If your DBE firm would like to apply to participate, please use our website as a resource, www.goethals-kwm.com.

GOETHALS BRIDGE — CONSTRUCTION PARTNERING OPPORTUNITIES

Distinguished Panelists representing major prime contractors and minority enterprises discussed the benefits of surety bonding at the SFAA Surety Summit.

about the surety bonding industry.”

�e Bonding Education Program has provided training and assistance to hundreds of �rms seeking surety bonding to help the growth their company. BEP courses are coordinated by the USDOT’s O�ce of Small Business Development Regional

continued �om page 25

Small Business Transportation Resource Centers (SBTRCs). �e BEP o�ers a 6 to 8-week development course that provides education and hands-on technical assistance to �rms seeking to apply for surety bonding. Firms interested in learning more about the BEP can visit www.dot.gov/osdbu/SBTRCs. DBEs seeking to pursue surety bonding for the �rst time may

want to take heed to the advice Lewis o�ers to the many DBE �rms counseled by BTG. Lewis said, “Be sure all the owners’ (of the business) personal �nancial status is strong; no bad debt, good prospects for business and an understanding of how to manage cash �ow.

• Disparity and Availability Studies• Review, Design and Implementation of Disadvantaged/Minority/Women/Small /Local Business Programs• Litigation and Expert Witness Services• Contracting Fraud Detection and Evaluation• Community Bene�ts Agreements and Project Labor Agreements• Trainings and Presentations

YOUR EXPERT ON AFFIRMATIVE ACTION AND CONTRACT COMPLIANCE

Colette Holt & AssociatesAttorney at Law

3350 Brunell DriveOakland, CA 94602Telephone - (773)-255-6844Email - [email protected]://twitter.com/mwbelaw

Colette Holt & Associates

The Real Chow Baby at Hartsfield-Jackson Atlanta International Airport

HMSHost is the recipient of six Airport Revenue News Awards for Outstanding Food & Beverage Operator.

HMSHost and Chip Joyner team up to bring The Real Chow Baby to Hartsfield-Jackson Atlanta International Airport. A staple of the Atlanta restaurant scene since 2005, The Real Chow Baby partners with HMSHost to open its first concourse location at the world’s biggest airport. “HMSHost is a great company to work with. They were a mentor of mine for a number of years while I was coming up in the restaurant business. HMSHost has really been a fantastic partner,” says Chow Baby co-owner Chip Joyner. The Real Chow Baby offers a hearty menu of farm-fresh produce, meats and seasonal fish, sizzled in zesty Asian-inspired sauces. For more information, contact [email protected].

The Real Chow Baby co-owner Chip Joyner

www.hmshost.com

Our Recipe

team up with

for success:

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ACDBE Partners

Joyner_SM.indd 1 5/15/13 1:38 PM


Provided by Reginald R. Randolph, a �nancial advisor with One Source Financial Partners, LLC who represents MassMutual and other companies; courtesy of Massachuse�s Mutual Life Insurance Company (MassMutual) You’ve hung up your shingle and brought in your �rst client. Whether your business is landscape design, catering or com-puter consulting, you’ve now become a sole proprietor. It’s a very simple proposition that requires no extra paperwork and carries no upfront expenses. But it comes with some signi�-cant drawbacks once a business starts growing. “Unfortunately, a lot of business owners are so intent on growing their business that they don’t do the long-term plan-ning that they should,” says Richard Martin, director for the Center for Business Analysis at Massachuse�s Mutual Life Insurance Company. Too o�en, he says, they overlook both the need for liability protection and the importance of busi-ness structure when it comes time to sell the company. A sole proprietorship draws no distinctions between the business and the owner. Taxes from business income and expenses �ow directly through to the individual. So does liability, exposing the sole proprietor’s personal assets to any lawsuits that may be �led. �at means a business accident—damage done while catering an event, for example—can threaten not only the business but also the family bank account. It’s important to select the business entity that o�ers the right degree protection without overcomplicating operations. Which entity a business owner chooses should depend on long-term business goals, tax considerations and likely exit strategy. DiSH, a small retail food business that provides gourmet prepared meals for home consumption, operates as a limited liability company. Co-owner Stacey Quinn says she carefully reviewed the business’s structure last year before purchas-ing a 50% share of the Andover, Mass., company. While tax liabilities pass directly to the owners, both Quinn and her partner can shield their personal assets from potential claims against the business. And, says Quinn, if she and her partner ever decide to stop marketing meals, “we’d still have an entity to sell.” Formation of an LLC requires dra�ing of an operating agreement and noti�cation to the state. Yet it remains a rela-


GE�ING STARTED: Structuring Your Business for Long-Term Success

tively simple structure, which is exactly what the DiSH part-ners wanted. “It isn’t complicated, and it keeps our costs down in terms of accounting and record keeping,” says Quinn. Becoming an S corporation adds a layer of complexity, since it requires a board of trustees, regular meetings and minutes. While S-corps are o�en taxed on a pass-through basis like a partnership, this business entity can o�er a growing company some meaningful tax advantages. �ere are, for example, signi�cant savings on payroll taxes, since Social Security and Medicare taxes are paid only on that portion of S-corp pro�ts deemed to be wages. S-corps also have the ability to o�er some limited employee bene�ts, such as retirement plans. Companies looking to raise capital may want to consider the C corporation, a structure that allows for di�erent categories of shareholder. It is favored by venture capitalists, who like to hold preferred stock. A C-corp can also provide key employ-ees with a�ractive fringe bene�ts, ranging from retirement plans and health insurance to deferred compensation. Many owners, however, don’t consider the rami�cations of being a C-corp.. For example, C-corp pro�ts are taxed twice—once at the corporate level and again when individual shareholders receive them as distributed dividends. �is dou-ble taxation problem becomes even more signi�cant when a business is sold, greatly reducing the a�er tax-proceeds of the transaction. One answer to the problem might be to convert to an S-corp before selling. �at approach, however, requires long-term planning, since such a conversion must be in e�ect for 10 years in order to get the full bene�ts of the favorable S-corp tax treatment. By considering the advantages and disadvantages of di�er-ent entities when se�ing up the business, owners can address tax considerations, liability concerns, shareholder needs and the eventual exit and succession of the business. �e result: A lot of problems may be avoided.

�e information provided is not wri�en or intended as speci�c tax or legal advice and may not be relied on for purposes of avoiding any Federal tax penalties. MassMutual, its employees and repre-

sentatives are not authorized to give tax or le-gal advice. Individuals are encouraged to seek advice �om their own tax or legal counsel.© 2014 Massachuse�s Mutual Life Insurance Compa-

ny, Spring�eld, MA 01111-0001 CRN201504-170776

Reginald R. Randolph


he National Association of Minority Contractors (NAMC) recently lost a Hall of Fame member as well as one of 12 men who were inaugural

members of the organization. Herman J. Russell Sr. passed away on November 15, 2014, but his in�uence, example and legacy will live on forever. �ose who knew him agree that “game-chang-er” is an appropriate description for the impact of H.J. Russell on the minority contracting industry. Russell not only built the largest minority con-struction business in history, he also leveraged his success to develop a conglomerate enter-prise that made him a business giant. He was a trailblazer in minority business, overcoming all obstacles due to his race, background, and a speech impediment that he managed

throughout his life. Russell’s autobiography, “Build-ing Atlanta – How I Broke �rough Segregation to Launch a Business Empire,” chronicles the life of a man who employed a remarkable work ethic, vision and determination to build a mega-business enterprise and to

become a civic leader, civil rights champion, philanthropist and statesman. He was a trusted advisor, �nancier and con�-dant for many fellow entrepreneurs, politicians and business leaders, both in Atlanta and on a national level. Art Queen, President/CEO of Ebony Glass and Mirror Company, also a fellow NAMC Hall of Famer and past NAMC National President re�ected on Russell’s in�uence and said: “In Atlanta, no if ands or buts about it, he was a leader that gave everybody an example of something to try to be, some-thing to shoot for; including me when I relocated to Atlanta in 1985 from Washington, DC. Herman was one of the people I was trying to emulate, trying to be like. He de�nitely inspired me. One of my company’s �rst jobs at the (Atlanta) airport, as a ma�er of fact, was with Herman’s company, on a Delta Air Cargo project. His son Mike, who is now the CEO, was just a rookie coming out of college in Virginia and was a project engineer on that project… Mr. Russell helped a lot of people and he was a smart man.” Russell’s companies have made an indelible impact on the transportation industry through his construction and project management work in airport facilities in locations such as At-lanta, Dallas and Raleigh, NC. In addition, the Russell family owns Concessions International, one of the largest airport concessions companies in America, with over 50 concessions concepts operating in airports across the country.

Gloria Shealey, National President of NAMC knew Russell for many years. She �rst met Russell during her career in corporate banking as Russell played a signi�cant role in the Atlanta banking industry serving on the board and investing

in banking institutions. She later reconnected with Russell in the construction industry years later, as President/CEO of �e Daniele Company, a construction management and general contracting �rm based in Durham, NC. Shealey said: “I met Herman several times, years ago when I was a banker; we played tennis at his house and he loved to beat me - he was so competitive. Years later I ran into him again, but also got to meet his son Michael as a result of NAMC and had an op-portunity to partner with H.J. Russell & Company at North Carolina Central University on the Latham Parking Deck and Retail Bookstore project. �at was a signi�cant project be-cause it was the �rst 100 percent African American team for a CM Project in North Carolina. �at was kind of neat.” Russell was well known for providing opportunities to a large number of minority construction companies. Linda Washington, Interim President/CEO of the Conference of Minority Transportation O�cials (COMTO) remarked on Russell’s willingness to give back and said, “H.J. Russell lived the COMTO mission and goals. He was an avid supporter of small business and grew his own small business into a mega-enterprise. He had a keen business sense and used what he learned and achieved to help other small businesses and individuals. He was the consummate giver.” Achieving Russell’s level of success cannot be reduced to one single trait. However, if there is one trait that set him apart from other business owners, it was his willingness and ability to build excellent relationships. �e degree of Russell’s success across all three of his major industries—construc-tion, real estate development and airport concessions—can be directly traced back to his professional relationships with business partners marked by equality, integrity, trust. Russell always brought his fair share to the table and then leveraged it with others to accelerate business growth. Without this trait, while it is clear that he would have been a very successful entrepreneur, he would not have achieved the level of wealth, growth and success that places him among the greatest mi-

NAMC Honors the Legacy of Herman J. Russell Sr.


T

PROUD TO GIVE BUSINESSES A LIFT

CATS is proud to provide opportunities for businesses to create local jobs through the advancement of transit projects. CATS also seeks to create an environment that gives small and socially or economically challenged local businesses the opportunity to compete for publicly funded contracts by participating in the Small Business Opportunity (SBO) and the Disadvantaged Business Enterprise (DBE) Programs.

On the LYNX Blue Line project, for example, CATS spent $42.9 million with 38 DBE firms to build the new light rail system.

As the major provider of public transportation to Charlotte and the surrounding region, CATS relies on the communities we serve to build and operate the service every day. By working together on these new opportunities, we can all keep our communities moving in the right direction.

For more information, visit ridetransit.org.


Year-end tax planning is especially challenging this year because Congress has yet to act on a host of tax breaks that expired at the end of 2013. Some of these tax breaks may be retroactively reinstated and extended, but Congress may not decide the fate of these tax breaks until the very end of this year (and, possibly, not until next year). For businesses, tax breaks that expired at the end of last year and may be retroactively reinstated and extended include: 50% bonus �rst year depreciation for most new machinery, equipment and so�ware; the $500,000 annual expensing limi-tation; the research tax credit; and the 15-year write-o� for quali�ed leasehold improvements, quali�ed restaurant build-ings and improvements and quali�ed retail improvements. Here are six tips that can help your company save on taxes:

Equipment PurchasesBusinesses should buy machinery and equipment before year end and, under the generally applicable “half-year conven-tion,” thereby secure a half-year’s worth of depreciation deductions for the �rst ownership year.

Property Although the business property expensing option is greatly reduced in 2014 (unless legislation changes this option for 2014), don’t neglect to make expenditures that qualify for this option. For tax years beginning in 2014, the expensing limit is $25,000, and the investment-based reduction in the dollar limitation starts to take e�ect when property placed in service in the tax year exceeds $200,000. Businesses may be able to take advantage of the “de minimis safe harbor election” (also known as the book-tax confor-mity election) to expense the costs of inexpensive assets and materials and supplies, assuming the costs don’t have to be capitalized under the Code Sec. 263A uniform capitalization (UNICAP) rules. To qualify for the election, the cost of a unit-of-property can’t exceed $5,000 if the taxpayer has an applicable �nancial statement (AFS; e.g., a certi�ed audited �nancial statement along with an independent CPA’s report). If there’s no AFS, the cost of a unit of property can’t exceed $500. Where the UNICAP rules aren’t an issue, purchase such qualifying items before the end of 2014.

Tax Income To reduce 2014 taxable income, consider deferring a debt-cancellation event until 2015. To reduce 2014 taxable income,

Financial Strategies for Your Business: Six Tax Tips

consider disposing of a passive activity in 2014 if doing so will allow you to deduct suspended passive activity losses.

Deductions If your business quali�es for the domestic production activities deduction for its 2014 tax year, consider whether the 50%-of-W-2 wages limitation on that deduction applies. If it does, consider ways to increase 2014 W-2 income, e.g., by bonuses to owner/shareholders whose compensation is allocable to domestic production gross receipts. Note that the limitation applies to amounts paid with respect to employment in calendar year 2014, even if the business has a �scal year.

Corporations If you own an interest in a partnership or S corporation you may need to increase your basis in the entity so you can deduct a loss from it for this year. Corporations should consider accelerating income from 2015 to 2014 where doing so will prevent the corporation from moving into a higher bracket next year. Conversely, it should consider deferring income until 2015 where doing so will prevent the corporation from moving into a higher bracket this year. A corporation should consider deferring income until next year if doing so will preserve the corpo-ration’s quali�cation for the small corporation alternative minimum tax (AMT) exemption for 2014. Note that there is never a reason to accelerate income for purposes of the small corporation AMT exemption, because if a corpora-tion doesn’t qualify for the exemption for any given tax year, it will not qualify for the exemption for any later tax year. A corporation (other than a “large” corporation) that anticipates a small net operating loss (NOL) for 2014 (and substantial net income in 2015) may �nd it worthwhile to accelerate just enough of its 2015 income (or to defer just enough of its 2014 deductions) to create a small amount of net income for 2014. �is will permit the corporation to base its 2015 estimated tax

installments on the relatively small amount of income shown on its 2014 return, rather than having to pay estimated taxes based on 100% of its much larger 2015 taxable income.

Jovan Goldstein, CPAManaging PartnerJTGoldstein Accountants and Business Advisors

2014 NTI participants earned the largest number of CCA certifications in over a decade.

It’s a rare occasion for M/W/DBE program administrators to have the opportunity to sharpen their skills and network with peers in an environment free from serving the needs of business owners seeking contracting opportunities. However, the American Contract Compli-ance Association’s (ACCA)

annual National Training Institute is built exactly for this purpose. ACCA’s mission is “to deliver ongoing compre-hensive training and certi�cation to practitioners working within the �elds of A�rmative Action, Contract Compliance, Minority/Women/Disadvantaged/Small/Emerging Busi-ness Enterprise, Labor Compliance, Economic & Business Development, and Equal Employment Opportunity.” True to its mission, the ACCA’s 2014 National Training Institute (Institute) provided training to over 350 practitioners at the annual event held September 2-7, 2014, in San Jose, California. ACCA was founded in 1986 as a nonpro�t national orga-nization dedicated to ensuring equitable employment and


National Training Institute Reaches Highest Numbers in Decades By American DBE Magazine Sta� Writers

contracting practices within the public and private sectors. �e organization was started as the brainchild of four practitioners (Kerry Kirkland, Robert Harrison, Lynn Miller and Luis Molina) in Philadelphia. �e founders’ idea was to foster a national organization that would provide training, standardization of practice, networking, and support to the many

a�rmative action, contract compliance, equal employment, and human rights workers across the country. Since its forma-tion, ACCA has trained thousands of practitioners in the administration and implementation of diversity and inclusion programs. “Engaging New Changes through Education and Compli-ance” was the theme of the 2014 Institute. �is theme recog-nized the ever-changing reality facing practitioners seeking to administer e�ective programs in the government and private sector related to diversity and inclusion. ACCA board mem-ber Justin Talbot Stern believes that this theme was timely given the current changes occurring in programs across the country. Stern said, “�is is not an industry that stands still. Whether it be the challenges driven by new federal, state or local regulations, economic impact of program budgets on our minority/woman/small/veteran business communities across the country, or recent litigations, it is absolutely neces-sary for practitioners to stay current with their knowledge and skills. In addition to receiving training from experienced industry practitioners at the annual Institute, participants can gain Continuing Education Units/Credits through the Morgan State University Center for Continuing and Professional Studies, and can eventually a�ain a professional certi�cation

as a Certi�ed Compliance Administrator (CCA) or a Master Compliance Administrator (MCA). Achieving the CCA designa-tion takes at least two years to complete and requires 42 continuing education training hours. �e MCA designation takes at least two additional years a�er completion of the CCA and a total of 84 continuing education training hours. Each annual Institute o�ers


Industry experts lead National Training Institute Courses


a wide variety of general and concurrent sessions, allowing participants to complete 21 hours of continuing education training hours. Courses cover topics that include areas such as program fraud, legal updates, program administration, certi�-cation, compliance, and business development strategies.

A total of 67 practitioners completed the 42 required hours to receive their CCA designation and 23 additional practitioners completed the 84 hours required for the MCA designation at the 2014 Institute. ACCA has also added a program called the Executive Leadership Institute that allows practitioners who have achieved the MCA to continue their education and improve their leadership skills. Twelve MCAs completed the Executive Leadership Institute this year. ACCA general counsel Cole�e Holt thinks having clear-cut

ACCA continued �om page 33

Project Manager leads field trip for ACCA participants on the BART transit project in San Jose, CA.

training standards is important for practitioners. Holt said, “It is critical that professionals in our industry receive academic level instruction to ensure understanding of the complex legal and regulatory standards for contracting a�rmative action programs and how to implement best practices to achieve our ultimate objective of reducing barriers to full and fair con-tracting opportunities for everyone.”

Practitioners participating in the Institute also had the opportunity to learn about innovative best practices during an onsite tour of the $800 million Bay Area Rapid Transit System Silicone Valley Extension Project currently under construction in the San Jose area. Project managers from the Skanska, Shimmick & Herzog Joint Venture Team led a full bus load of professionals on a multi-site visit of the large light rail project and discussed their e�orts in maxi-mizing opportunities for the participation of disadvantaged business enterprises and workforce participation of women and minority workers. Tammie Hall, Senior Regional Supplier Diversity Man-ager for Lend Lease in Durham, NC achieved the designa-tion of Certi�ed Compliance Administrator at the 2014 event. Hall said, “CCA certi�cation is an acknowledgement of continued learning in the diversity profession. It cer-tainly identi�es to employers that you have achieved a high

level of competency in the MWBE/DBE profession. Plus, the opportunity to network and exchange information provides valuable credibility to managing e�ective programs. Next for me is achieving the MCA certi�cation.” ACCA has already started planning for the 2015 National Training Institute scheduled for August 25-30, 2015, at the West Palm Beach Marrio� Hotel in West Palm Beach Florida. More information about the next event can be found on ACCA’s website at www.accaweb.org.

Marketing continued �om page 7

It is vital to know who your Customers/Clients are so that you do not waste your time and money targeting people who are not your Customers/Clients; and so that you can con-vince lenders that you will be pro�table. In order to know if someone is actually a likely Customer/Client you must understand their buying criteria. �is involves things like: needs, desires, willingness to pay, likeli-hood to act, obstacles to purchasing/using. It takes research to learn these things. But research beats wasted time, money and opportunities every time.

3) Understand that what you sell or provide is not what is important to your Prospect or Customer/Client.

What is important to Customers, Clients and Prospects is what you can do for them:• What problem can you solve?• What need can you meet?• What difficulty can you help them avoid?• What is their pain and how can you alleviate it?• How can you help them increase revenue?• How can you help them decrease expense, frustration or delay?• How can you make their job/life easier?• Can you reduce a cost? If so, can you document that reduction? List the things you can do for your Prospects and Clients/Customers. Be sure you can identify it as a solution to a prob-lem, answer to a need, avoidance of a di�culty, reduction of a cost, etc. If you cannot identify it in this manner, you are prob-ably not really addressing something that is important to them. �at means they will not likely become a Customer/Client.

Calendar of Events

National 8(a) Association2015 Winter ConferenceFebruary 3-4, Orlando, FLwww.national8aassociation.org/conference

United States Department of Transportation (USDOT)2015 DOT Civil Rights Virtual SymposiumFebruary 3-5, 2015www.civilrights.dot.gov/

National Association of Minority Contractors (NAMC)Mid-Winter Board Meeting & Strategic Planning SessionFebruary 4-6, 2015, New Orleans, LAwww.namcnational.org

National Association of Women in Construction (NAWIC)Women in Construction Week 2015March 1-7, 2015www.nawic.org/nawic/WIC_Week_2015.asp

Airport Minority Advisory Council (AMAC)Leadership Summit and East Regional Forum March TBDwww.amac-org.com

Conference of Minority Transportation Officials (COMTO)Celebrating Women Who Move the Nation AwardsMarch 11, 2015, Washington, DCwww.comto.org

National Minority Supplier Development Council (NMSDC)2015 Leadership AwardsMay 20, 2015, New York, NYwww.nmsdc.org/2015-leadership-awards/

Women’s Business Enterprise National Council (WBENC)2015 National Conference & Business FairJune 23-25, 2015, Austin, TXwww.conf.wbenc.org

American Contract Compliance Association (ACCA)2015 ACCA National Training InstituteAugust 25-30, 2015, West Palm Beach, FLwww.accaweb.org

Southern has continued her goal of growing the business on the East Coast by currently maintaining DBE certi�cations in seven states on the East Coast ranging from Rhode Island down to Virginia. �is expansive coverage recently helped VJS-TC win its �rst contract with the Virginia Department of Transportation as a sub-consultant to another DBE �rm on a three-year location and design contract awarded through VDOT’s Small Business Enterprise Program. VJS-TC plans to continue its growth strategy, with the goal of tripling contract revenue over the next two years. However, Southern knows reaching that goal is not a singular e�ort. She believes perseverance and the power of creating mutually bene�cial relationships will take her company there.

VJS-TC continued �om page 11

nority entrepreneurs of all time. Shealey said: “�e thing that really stood out for me is that this (con-struction) business, while it is about sticks and bricks, it’s really about relationships. Herman understood that and knew how to leverage that well. If there is a model of how to do business, building the right relationships for the right reason—that also makes good business sense—is something that he was expert at doing, and part of what really leveraged his success. “ �e legacy of Russell’s impact will last for generations, as he stands as one of the greatest minority entrepreneurs of all time; and evidence of the ability for minority businesses to succeed in the American business landscape. Shealey calls leaders like Russell “eagles” based on their ability to li� oth-ers during their �ight. Shealey said: “I think of them as being the eagles, and soaring to move beyond pursuit, winning and executing, to excelling and being able to excel at a level of scale, scope and size that allows them to not only compete with the large �rms but to be able to put their wings around smaller diverse companies to see them grow. �ey (H.J. Rus-sell & Company) have a couple counterparts that came up in similar times; companies like Smoot Construction, that have been able to rise to the stature, and to the level, of what I like to call the eagles.”

Russell continued �om page 29 NAMC is immensely proud of the life, career and success of their Hall of Fame member Herman J. Russell Sr., and in his honor NAMC National, the Hall of Fame and the NAMC Atlanta Chapter will donate $5,000 to his charity, the H.J. Russell Foundation.

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PUBLIC NOTICE

Proterra Inc. (Proterra) has established a Disadvantaged Business Enterprise (DBE) Program in accordance with 49 CFR Part 26. For the purpose of this DBE Program, Proterra proposes to set its overall goal utilizing all information available to it, including information available in Proterra’s area of manufacturing operation and comments received from the public in response to this notice.

Proterra has set a goal of 5% participation in DOT-‐assisted contracts FY2014-‐2015. This proposed goal and its rationale are available for public inspection during regular business hours Monday through Friday, 8:00 a.m. to 5:00 p.m. at Proterra’s office, 1 Whitlee Court, Greenville, SC 29607 for 30 days following the date of this notice. Proterra and DOT will accept comments on the goal for 45 days from the date of this notice. The goal may be adjusted depending upon comments received.

Comments may be addressed to:

Proterra Inc. Attn: DBE Liaison Officer 1 Whitlee Court Greenville, SC 29607 And to: Department of Transportation Office of the Secretary of Civil Rights 1200 New Jersey Avenue, S.E. Washington, DC 20590

Proterra Inc. (Proterra) has established a Disadvantaged Business Enterprise (DBE) Program in accordance with 49 CFR Part 26. For the purpose of the DEB Program, Proterra proposes to set its overall goal utilizing all information available to it, including information available in Proterra’s area of manufaturing operation and comments received from the public in response to this notice.

Proterra has set a goal of 5% participation in DOT-assisted contracts FY2014-2015. This pro-posed goal and its rationale are available for public inspection during regular business hours Monday through Friday, 8:00 a.m. to 5:00 p.m. at Proterra’s office, 1 Whitlee Court, Greenville, SC 29607 for 30 days following the date of this notice. Proterra and DOT will accept comments on the goal for 45 days from the date of this notice. The goal may be adjusted depending upon comments received.

Comments may be addressed to:

Proterra Inc.Attn: DBE Liaison Officer1 Whitlee CourtGreenville, SC 29607

And to:Department of TransportationOffice of the Secretary of Civil Rights1200 New jersey Avenue, S.E.Washington, DC 20590

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�e Internet is a business platform unlike any other. From product sites to social networks, the opportunities for businesses to

embrace this new era are vast and ever-changing; and this evolution is providing both an opportunity and a challenge to business owners. Today’s business industry is transition-ing away from longer research processes toward gaining instant feedback. Re�ected in this trend is a growing reliance on social media. �e use of social media is increasing within business �elds. Social media marketing can act as both an advertising plat-form to promote your brand as well as a tool for businesses to gain valuable insight in real time, processing feedback as soon as consumers provide it. Business purchasers spend more than 73 percent of work-related media consumption on online platforms, and more than 80 percent of business-to-business (B2B) buyers spend their time researching on-line. �ese statistics are evidence that social media provides businesses with an interactive way to have messages and content discovered. Distributing content via social media di�ers from tradi-tional distribution channels because the content is shar-able. It is a way for consumers to interact with the brand, to develop a relationship and spread the word. �is aspect of social media proves itself to be crucial because marketers need to distribute content to everywhere potential prospects are looking—and now that place is online. From Facebook to Twi�er and Instagram to Pinterest, social media platforms vary in what they do best for your business. Facebook and Twi�er are outlined below for their strengths, but they are never your only options. Consider and research what each social medium can o�er, and select your platforms based on what they can do best for you. Having a Facebook page for your company is an e�ective and immediate way to interact with targeted consumers. Facebook as a social medium emphasizes engagement and interaction with your network of current and potential con-sumers. If companies are not regularly publishing dynamic content that involves the consumer, then the company will face di�culties in keeping consumers interested. Facebook

is a powerful tool, but simply posting content is not enough. Research intriguing and timely stories that interest your target audience and post that content as well. �is will set you apart from your competitors by pu�ing your brand in the mind of the consumer in a way that they value and remember. Twi�er is a quick engagement with online consumers, allowing a business to keep in contact with followers by sharing ideas, articles or simple updates to keep the business on the forefront of consumers’ minds. With your Twi�er ac-count, your company can publicly interact with consumers, businesses, and public �gures that promote similar ideals as your brand. Twi�er is also a powerful platform to run company promotions, direct people to your website through embedded links, and respond to customer feedback. �e im-pressions and connections that you make successfully engage consumers in the brand. Twi�er allows the brand to pepper consumers with that information quickly and e�ectively. Once you decide which social media platforms are best for your company, it’s important to determine the voice you want your company to have on social media. Look at your business from the perspective of your target audience. Will they respond to a professional tone or a conversational tone? Whichever you choose, consistency in all messages and across all platforms is key to success. Using this voice strategically and regularly will also show your audience that you are engaged in the wider community. However, be care-ful not to post too o�en, as that can be viewed as annoying and o�-pu�ing. Aim to post at least a few times a week, but no more than three times per day. Use your social media voice to make connections and in-teract with other brands that share your ideals. Openly com-municate, share or retweet their messages and post replies. Growing a network over social media can increase the reach your pages have. Just as important is interaction with your consumers. If they post on your page or tweet at you, be sure to respond quickly and appropriately. Having a strong social media presence can easily translate into a growing and reli-able consumer base that will stay with your brand and share it with others. �e world of social media is wide open for possibilities and creative methods for businesses to interact with consumers. In such a rapidly changing space, keeping your brand active is undeniably important. So explore, create and engage, and allow your company to utilize the social media sphere to your professional advantage.

Business in the Social Media Age

Contributed by: Heelprint Communications Student-Run Creative Agency at UNC-Chapel Hill

american dbe magazine winter 2015

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