Black Firms Shut Out of Stimulus Projects
African Americans aren't getting fair share of funds
by Joyce Jones Posted: January 22, 2010
http://www.blackenterprise.com/files/2010/01/contractor-exclusive.jpgBlack contractors aren’t getting their fair share of the stimulus dollars being poured into transportation and infrastructure projects around the country, according to statistics released by the
Transportation Equity Network.
Based on the grassroots organization’s findings as of Dec. 1, 2009, of the $163.8 million in contracts awarded directly to firms by the U.S. Department of Transportation and Federal Highway Administration, $16.8 million went to minority-owned businesses, $9.7 million to women-owned businesses, $4.7 million to Hispanic-owned businesses and $0 to black-owned businesses. The group used data from the
Federal Procurement Data System’s Federal Stimulus Contracting Report.
It is an admittedly small sampling of stimulus funding, said Transportation Equity Network executive director Laura Barrett, “But we think we see some trends around how the money has been allocated mostly to white-owned businesses. We feel that minority contractors are being left out based on anecdotal reports, and the numbers we were able to get from the procurement data system back up what we’ve been hearing from the field.”
The DOT disagrees. The agency contends that the data pool used by TEN is too small to be considered representative. In an e-mail message, DOT spokesperson Olivia Alair said that as of Dec. 11, 2009, $986 million dollars in stimulus funds have been committed to
Disadvantaged Business Enterprises (DBEs) for highway projects and that the agency has awarded $32 million to minority-owned firms in direct federal contracts. She could not say, however, how many of them are black.
“Minority-owned firms have to be certified at the state level to qualify as DBEs, so we do not have national data on the percentage of DBEs that are minority-owned, broken out by race or ethnicity,” wrote Alair.
She noted that DOT has engaged in and encouraged extensive outreach to black firms. The agency has launched
bonding assistance and
short-term lending programs and has participated in several events that target women and minorities to highlight stimulus opportunities. In addition, in December Transportation Secretary Ray LaHood
sent a letter to the n
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