A study released today found that the Metropolitan Sewer District (MSD) had not been employing as many African-Americans subcontractors as they could have on construction contracts from 2007 to 2012.
The release of the disparity study marks the end of a long debate on whether or not MSD needs to increase its goals in hiring minority- and women-owned businesses, especially in light of the $4.7 billion in mandated improvements the district will be making over the next 23 years.
The disparity study, conducted by Mason Tillman, recommends that MSD increase its goal for hiring minority-owned b usinesses (MBE) to 30 percent on building construction contracts over $50,000 and to 17 percent on non-building construction contracts over $50,000. Click here for study.
These numbers are higher than the interim goals that labor union leaders and the Associated General Contractors representatives fought against last March, when MSD’s Board of Trustees voted to set the goals at 25 percent on building construction contracts and 15 percent for both women- and minority-owned businesses on non-building construction contracts.
Many labor and construction organization leaders argued that St. Louis does not have the “capacity” to hire more minorities. The disparity study dismisses that argument.
The study shows that in building construction, African-American businesses are capable of carrying 28.5 percent of the load on contracts and Hispanics 1.21 percent. In non-building construction, African Americans are available for 17.3 percent of contracts.
For professional services and goods and services contracts, the study did not find any disparity for minorities or women. Hence, spokesman Lance LeComb said MSD proposes to remove its interim goal of 30 percent combined goal for women and minorities for professional services contracts of $50,000 or more. If the district kept the goal in place, it could be challenged in court.
For women subcontractors, the study did not find any disparity in any category. For this reason, MSD proposes to not set any goals for women in any category.
As far as goals for boots-on-the-ground workforce for contracts over $500,000, the study recommends a 30 percent goal for minorities and seven percent goal for women in construction. For professional services, the workforce goal recommended is 18 percent minorities and 32 percent women.
In order to build up future capacity, MSD proposes to set goals for 40 percent apprentices and 30 percent local residents.
“The diversity goals recommended by the report may change how some firms do business with MSD,” MSD leaders said in a statement to the public. “And change will often times be perceived as a scary prospect and create uncertainty.”
However, to not implement the report’s recommendations would violate the Equal Protection Clause of the constitution, according to the statement.
MSD will hold public meetings to discuss the study’s findings. The first will be at 9 a.m., February 25 in the multi-purpose room of the student center at Florissant Valley Community College, 3400 Pershall Road in Ferguson.
The results of MSD’s disparity study will affect policies in both St. Louis City and St. Louis County.
On Friday, the St. Louis City Board of Aldermen passed a bill to share the cost of MSD’s study (up to $75,000) with the county and MSD in order to use the study for its own inclusion policies.
