Development of a minority participation model for engineering and construction services in a Department of Energy-Oak Ridge environment

There are many federal agencies tasked with increasing minority participation in such fields as design and construction services, however, the two federal agencies most often thought of are the Small Business Administration (SBA) and the Minority Business Development Agency (MBDA). This thesis describes the author's in-depth research into solutions of how minority entrepreneurs might start up a successful A-E and/or construction firm in a tough, but very competitive, DOE Oak Ridge environment.

The problem that currently exists on the ORR is that of encouraging more minority participation in the skilled (construction) and professional (design) services fields. Two problems need increased attention before increased minority participation can occur on the ORR. The first problem is DOE-ORO's enormously bureaucratic contract and procurement rules. The second problem is that many, but not all, minority candidates are not as well trained as they should be to effectively compete on many of the design or construction projects on the ORR.

Research obtained for this thesis solicited the verbal views and opinions of many small and small disadvantaged business firms that currently perform work on the ORR, as well as those that perform work in the private sector. Officials from the SBA, the U. S. Department of Energy (DOE) Oak Ridge Operations (ORO), Martin Marietta Energy Systems, Inc. (MMES), MK-Ferguson of Oak Ridge Company (MK-F), and the Tennessee Department of Economic and Community Development (TDECD) Office of Minority Business Enterprise (OMBE) were also interviewed. Trips were made to the Washington, D.C. headquarters of the SBA and the U. S. Census Bureau headquarters to obtain additional data and information.

One obstacle that was discovered was that minorities lacked adequate access to surety bonding due in part to not being adequately trained to perform required tasks. In other words, being able to obtain surety bonding is a direct function of training, experience, and education. Another problem that was prevalent among those minority contractors interviewed was a lack of technical and business training. Finally, the most important problem was the current DOE-ORO contract procurement rules and regulations. Some positive findings were that the total amount of money to be spent with minorities on construction projects has increased substantially over the past three years and that trend should continue. Minority construction contractors did $1 million worth of construction work in FY-1991 and by FY-1993 that figure had increased to over$7 million.