Economics

Anthony Foxx, Outgoing Transportation Secretary, Approves Waiver to Provide Race-Conscious Goals

Published

7 years ago

January 31, 2017

US Secretary of Transportation Anthony Foxx recently approved a waiver of U.S. Department of Transportation regulations to allow the San Francisco Municipal Transportation Agency (SFMTA) to provide group-specific race-conscious Disadvantaged Business Enterprise (DBE) contract goals for firms owned and controlled by African Americans and women.

This ruling was in response to the lack of participation of African American and women-owned businesses on SFMTA projects, such as the $1.5 billion Central Subway Project currently under construction in San Francisco.

The participation for each of these two groups as cited in the SFMTA Disparity Study is less than ½ of 1 percent of the project construction cost. In a letter to SFMTA, the Federal Transit Authority Office of Civil Rights in Washington, DC indicated that this was unacceptable and that SFMTA must find a way to correct such disparities.

While gender and race conscious goals are not allowed on state funded contracts in California since the passage of Proposition 209 in 1996, no matter what the disparity might be for any group, projects with federal funding are not affected by this state law.

The passage of Prop.209 banned affirmative action resulting in the demise of an estimated 80 percent of Black contracting firms in California within three years.

Congresswoman Barbara Lee supported the efforts of SFMTA and the San Francisco African American Chamber of Commerce to improve conditions.

“I am pleased by the commitment from federal government and local partners to ensure that vendors reflect the diversity of our nation and the workforce at large,” she said. “As a former federal contractor myself, I understand the challenges that many women and African American business owners face. This decision is a critical step to address the disparities in federal contracting.”

Fred Jordan

SFMTA will hold a public hearing as required by the Department of Transportation (DOT) to implement the new goals on the upcoming $200 million Van Ness Bus Rapid Transit Project in San Francisco.

According to Fred Jordan, president of the San Francisco African American Chamber of Commerce, “We are most encouraged to bid now that the US DOT has taken the initiative within its own regulation to bring about parity for all.

“If SFMTA can do it, all of the other government agencies that receive federal funds can do it. Sadly, there is no known major agency in California receiving federal funds that has African American business participation over 1 percent.”

“This is a game changer for African American and women-owned businesses,” said Jordan.

For more information, contact Fred Jordan, E-mail: frederickjordan@aol.com

Oakland Post

Posts by Oakland Post

Up Next

Midwife Samsarah Morgan Helps Black Women Have Better Births

Don't Miss

Congresswoman Barbara Lee Reintroduces Women’s Health Act

Oakland Post

Click to comment

Business

Black Business Summit Focuses on Equity, Access and Data

The California African American Chamber of Commerce hosted its second annual “State of the California African American Economy Summit,” with the aim of bolstering Black economic influence through education and fellowship. Held Jan. 24 to Jan. 25 at the Westin Los Angeles Airport Hotel, the convention brought together some of the most influential Black business leaders, policy makers and economic thinkers in the state. The discussions focused on a wide range of economic topics pertinent to California’s African American business community, including policy, government contracts, and equity, and more.

Published

3 days ago

April 20, 2024

Oakland Post

Toks Omishakin, Secretary of the California State Transportation Agency (CALSTA), answers questions from concerned entrepreneurs frustrated with a lack of follow-up from the state. January 24, 2024 at the Westin Los Angeles Airport Hotel, Lost Angeles, Calif. Photo by Solomon O. Smith

By Solomon O. Smith, California Black Media

The California African American Chamber of Commerce hosted its second annual “State of the California African American Economy Summit,” with the aim of bolstering Black economic influence through education and fellowship.

Held Jan. 24 to Jan. 25 at the Westin Los Angeles Airport Hotel, the convention brought together some of the most influential Black business leaders, policy makers and economic thinkers in the state. The discussions focused on a wide range of economic topics pertinent to California’s African American business community, including policy, government contracts, and equity, and more.

Toks Omishakin, Secretary of the California State Transportation Agency (CALSTA) was a guest at the event. He told attendees about his department’s efforts to increase access for Black business owners.

“One thing I’m taking away from this for sure is we’re going to have to do a better job of connecting through your chambers of all these opportunities of billions of dollars that are coming down the pike. I’m honestly disappointed that people don’t know, so we’ll do better,” said Omishakin.

Lueathel Seawood, the president of the African American Chamber of Commerce of San Joaquin County, expressed frustration with obtaining federal contracts for small businesses, and completing the process. She observed that once a small business was certified as DBE, a Disadvantaged Business Enterprises, there was little help getting to the next step.

Omishakin admitted there is more work to be done to help them complete the process and include them in upcoming projects. However, the high-speed rail system expansion by the California High-Speed Rail Authority has set a goal of 30% participation from small businesses — only 10 percent is set aside for DBE.

The importance of Diversity, Equity and Inclusion (DEI) in economics was reinforced during the “State of the California Economy” talk led by author and economist Julianne Malveaux, and Anthony Asadullah Samad, Executive Director of the Mervyn Dymally African American Political and Economic Institute (MDAAPEI) at California State University, Dominguez Hills.

Assaults on DEI disproportionately affect women of color and Black women, according to Malveaux. When asked what role the loss of DEI might serve in economics, she suggested a more sinister purpose.

“The genesis of all this is anti-blackness. So, your question about how this fits into the economy is economic exclusion, that essentially has been promoted as public policy,” said Malveaux.

The most anticipated speaker at the event was Janice Bryant Howroyd known affectionately to her peers as “JBH.” She is one of the first Black women to run and own a multi-billion-dollar company. Her company ActOne Group, is one of the largest, and most recognized, hiring, staffing and human resources firms in the world. She is the author of “Acting Up” and has a profile on Forbes.

Chairman of the board of directors of the California African American Chamber of Commerce, Timothy Alan Simon, a lawyer and the first Black Appointments Secretary in the Office of the Governor of California, moderated. They discussed the state of Black entrepreneurship in the country and Howroyd gave advice to other business owners.

“We look to inspire and educate,” said Howroyd. “Inspiration is great but when I’ve got people’s attention, I want to teach them something.”