Supporting a commitment to equal opportunity on the Marquette Interchange Project

1. AASHTO Subcommittee on Civil Rights Milwaukee, Wisconsin September 28, 2007 Supporting a commitment to equal opportunityon the Marquette Interchange Project Deputy Secretary Ruben L. Anthony, Jr. Wisconsin Department of Transportation Senator G. Spencer Coggs Wisconsin State Senate

2. Setting the stage • Wisconsin Governor Jim Doyle and DOT Secretary Frank Busalacchi lead the commitment to equal opportunity and stress its importance on the Marquette Interchange • Supporting opportunity for DBE firms and minority workers is good for the economy: • Supports the Milwaukee urban center • Builds economic capital • Creates job opportunities and better wages • Encourages competition • Unleashes knowledge and skills

3. Presentation overview • The $810 million Marquette Interchange Project needed to provide equal opportunities for firms and workers • WisDOT undertook a variety of strategies to provide equal opportunity to the community and is achieving great success • Research is underway to analyze the importance and effectiveness of the strategies used and to apply them to future projects • Community leaders have played a strong role to guide and support equal opportunity on the project

4. Project background • The Marquette Interchange, downtown Milwaukee • First opened to traffic in 1968 • By the 1990’s and early 2000’s, the original interchange had obsolete design and couldn’t handle 300,000 vehicles per day • Concrete box girders and steel structures were crumbling

5. Past effects of freeway construction • Historically, freeway construction in Milwaukee harmed urban and ethnic areas, such as the African-American “Bronzeville” neighborhood • African-Americans and minorities were skeptical about how they would benefit from reconstruction of the Marquette Interchange

6. Project designed to benefit community • In 2003, Governor Jim Doyle and Transportation Secretary Frank Busalacchi announced a four-year, $810 million plan to rebuild the interchange • Community benefits: • Community sensitive design • Economic stimulus for workers and businesses

7. WisDOT philosophy for opportunity • WisDOT knew that equal opportunity would be paramount to this project in the heart of Milwaukee’s urban community • The philosophy to support DBE businesses, minority workers and other aspects of opportunity is “Make it, take it, respond and deliver”

8. Make it • Make opportunities for DBE firms to compete on the project • Stand-alone contract opportunities to allow DBE’s to bid as primes • Mandatory subcontracting to help DBE firms build skills and expertise • High subcontracting goals – 20% or higher on most contracts

9. Take it • Take the opportunities and market them aggressively • Bullseye marketing matches firms to the skills needed, and makes the contact • Networking events helped encourage DBE-prime contacts, mentor-protégé options, joint venture agreements • Pre-bid meetings helped DBE and prime firms to understand bidding requirement • Major use of media, newsletters and community events to market contracting opportunities

10. Respond • Private sector has stepped up to respond • 55 newly certified DBE firms in 2004-05 • Primes and DBEs took advantage of networking opportunities • Mentor-protégé relationships formed • Hoffman Construction / South Star • Pheifer Brothers / D’Arteaga • Joint venture formed • K Singh • Making the Grade • Toki & Associates

11. Deliver • All sides have stepped up to deliver • Through July 31, DBE firms have earned $117.3 million of contracts out of $616.4 million total, a 19% share • Through July 31, DBE firms have earned $93.6 million of expended dollars out of $521.1 million total, an 18% share. • Five DBE firms earned prime contracts • More than 70 different DBE contractors and consultants have participated on the Marquette Interchange Project, with more than 80% of these firms from southeast Wisconsin

12. Exceeding requirements & expectations • Federal government requires a minority labor goal of 8% and an “appropriate” DBE goal • In past years, Wisconsin’s typical DBE goals and achievements have been in the 8% to 12% range • Marquette Interchange thus far has achieved 22% minority labor and 18% DBE business participation

13. A closer look at the numbers • A research study has been started to objectively examine the equal opportunity strategies utilized on the Marquette, particularly the bulls-eye marketing approach • Lessons learned about DBE business participation will be applied to future projects: • I-94 NS Corridor connecting Milwaukee to Chicago, expected to begin in 2009 and cost more than $1 billion • Zoo Interchange in western Milwaukee County, the state’s busiest interchange with an environmental / engineering study getting underway

14. DBE consultant roles • Environmental assessment, study and design phases: • $60.2 million in total contracts • $8.1 million in DBE contracts, 13.4% share • Types of work included soils engineering, roadway design, public relations, environmental testing • Construction administration work: • $34.4 million in total contracts • $7.4 million in DBE contracts, 21.5% share • Seven DBE firms earned prime contracts for construction administration • Construction administration services include administrative support, document control, engineering, construction management

15. DBE subcontractor roles • Construction phase: • $521.2 million in total contracts • $101.8 million in DBE contracts, 19.5% share • Many DBE firms earned work on multiple contracts • Major categories of subcontracting work • Asphalt paving – 2 firms • Concrete construction & suppliers – 6 firms • Electrical construction & suppliers – 3 firms • Painting & staining – 3 firms • Traffic control – 2 firms • Trucking – 28 firms • Other structural installation (girders, walls, sewer) – 12 firms

16. DBE prime contractor roles • Five DBE contractors earned prime bids • Clybourn landscaping … $74,000 contract • Security … $160,000 contract • Decorative fencing … $1.7 million contract • Advance signing … $150,000 contract • North / west leg landscaping … $308,000 contract

17. Most DBE firms are from SE Wisconsin • Total of 74 DBE contractors or consultants working on any phase of the Marquette Interchange Project • 41 based in Milwaukee County … 55% • 21 based elsewhere in SE Wisconsin … 28% • 8 based elsewhere in Wisconsin … 11% • 4 based out of state … 5% • Bottom line DBE firm counts • 15 consultants • 28 trucking firms • 31 contracting / construction firms

18. Support from community leaders • Community leaders have stepped up to identify the needs, communicate with the community and provide oversight to goals and delivery • State Senator Spencer Coggs leads a business advisory committee that focuses on DBE business goals and achievements, capacity development and overall business support

19. AASHTO Subcommittee on Civil Rights Milwaukee, Wisconsin September 28, 2007 Supporting a commitment to equal opportunityon the Marquette Interchange Project Questions / discussion time