Disparity Study

A Disparity Study determines whether a government entity, either in the past or currently, engages in exclusionary practices in the solicitation and award of contracts to minority, women‐owned, and disadvantaged business enterprises. The primary goal of the study is to assess, quantify, and evaluate the prevalence, significance (degree and weight) and scope of discrimination in the marketplace. In a case filed in the U.S. Supreme Court in 1989, it was ruled that governments must establish a “compelling interest” to support the creation of contracting programs that specifically target minority – and/or women-owned businesses. 

DBE Goal and Methodology Proposal
FTA Disparity Study 

Accessibility Assistance: Caltrans makes every attempt to ensure our documents are accessible. Due to variances between assistive technologies, there may be portions of these documents which are not accessible. Should you need additional assistance, please contact our Caltrans accessibility help desk at (916) 654-2852 or visit https://dot.ca.gov/request-ada-compliant-documents.

Table of Contents

Purpose

Beginning in April 2022, the California Department of Transportation (Caltrans) has commissioned BBC Research & Consulting (BBC) to conduct a disparity study to assess whether minority- and woman-owned businesses face any barriers as part of Caltrans’ contracting processes. Information from the study will help Caltrans assess its efforts to encourage the participation of minority- and woman-owned businesses in local contracts and help inform any refinements that Caltrans might make to its implementation of the Federal Disadvantaged Business Enterprise (DBE) Program.

Study analyses. The disparity study will focus on professional services and goods and non-professional services contracts and procurements that the Caltrans awarded between October 1st, 2017 through September 30th, 2020. The core purpose of the disparity study will be to examine whether there are any disparities between:

  • The percentage of contract dollars Caltrans spent with minority- and woman-owned businesses during the study period (utilization); and
  • The percentage of contract dollars that minority- and woman-owned businesses might be expected to receive based on their availability to perform specific types and sizes of Caltrans contracts (availability).

The study will also examine other qualitative and quantitative information related to:

  • Legal considerations surrounding the implementation of the Federal DBE Program;
  • Marketplace conditions throughout California for minorities; women; and minority- and woman-owned businesses;
  • Contracting policies and business assistance programs that Caltrans currently has in place; and
  • Program measures for the agency to consider implementing to further encourage minority- and woman-owned business participation in its work.

Study schedule: BBC initiated the disparity study in April 2022 and will complete the study at the end of August 2022 (see study schedule).

Study progress: Caltrans will provide regular updates about BBC’s progress on the disparity study throughout its course. Please check back periodically for those updates.

Project initiation: Caltrans and BBC initiated the disparity study in April 2022 with a series of meetings with various Caltrans departments and representatives. BBC met with Caltrans to introduce the study, answer questions, and begin the process of understanding contracting and vendor data that Caltrans maintains (see initial presentation).

Data collection: BBC has begun working with Caltrans to collect data on contracts and procurements Caltrans awarded during the study period as well as information about the vendors that participated in that work.

Next steps: BBC will engage in the following disparity study tasks in the coming months:

  • Community meetings: The project team will conduct five virtual community meetings with California residents and business owners in May and June 2022. During the community meetings, BBC will present information about the disparity study, answer any questions, and solicit participants for any verbal or written testimony that they would like to share regarding their experiences working in the local marketplace. Please participate and make sure your insights are included as part of the study process.

     

  • Data collection: The project team will continue to work with Caltrans to collect data on contracts and procurements the agency awarded during the study period and the vendors that participated in that work.

     

  • Data analysis: BBC will begin the data analysis process by compiling data it receives from Caltrans and assessing the subindustries that account for the majority of Caltrans contracting and procurement as well as the geographical area that accounts for the vast majority of vendors that compete for that work (i.e., relevant geographic market area, or RGMA).

     

  • Availability surveys: The project team will begin conducting availability surveys with businesses in the RGMA that perform work that is relevant to Caltrans contracting and procurement. If we contact your business, please participate in the survey process to help ensure an accurate and comprehensive survey process!

     

  • In-depth interviews: The study team will begin conducting in-depth interviews with business owners and trade association representatives throughout the local marketplace. The interviews will provide the study team with detailed information about marketplace conditions related to starting a business, trying to grow a business, working with local public agencies, and a variety of other topics. If we contact your business, please participate in the interview process to help ensure an accurate and comprehensive study.

Project Team

The project team for the Caltrans Disparity Study includes five firms that possess expertise directly relevant to conducting the study in a manner that meets the highest industry and legal standards.

BBC Research & Consulting (BBC): BBC, which will serve as the prime consultant for the study, is a 52-year-old economic and diversity research firm based in Denver, Colorado. The firm has completed over 130 disparity studies for states, cities, transportation agencies, and other government organizations all across the country. BBC is also considered a national expert in helping organizations develop and refine their implementations of small and diverse business programs. The firm has provided expert testimony related to disparity studies and diverse business programs on several different occasions, most recently as part of the successful defense of the Caltrans’s implementation of the Federal Disadvantaged Business Enterprise Program.

Davis Research: Since its inception in 1970, Davis Research has grown to be one of the leading survey data collection firms in the nation. The firm consistently delivers sophisticated telephone and web-based surveys with seamless programming, supremely qualified surveyors, and a customized look and feel. In addition, it offers professional computer-aided telephone interviewing services from its industry-best call centers. Davis Research’s success has come from partnering with its clients to deliver custom survey solutions that best answer research questions. For INDOT’s disparity study, Davis Research will be responsible for programming and fielding surveys with businesses in the local marketplace in connection with the availability and utilization analyses.

Luster National: Luster has a proven and successful 32-year track record spanning a broad spectrum of professional services in the public infrastructure sector that includes program, project, and construction management; stakeholder engagement; program development; environmental compliance; diversity management; and workforce development. Luster also specializes in expanding opportunities for businesses interested in getting involved in the California government contracting industry. Luster’s expertise in opportunity expansion includes training programs, community engagement, policy development, and diversity program administration. Luster worked with BBC to help conduct the 2019 Caltrans FTA Disparity Study and the 2021 Caltrans FHWA Disparity Study.

GCAP Services (GCAP) : GCAP Services has developed and conducted training programs for DBE-related issues, including both live and on-line training workshops for DBE Program requirements following Western States Paving Company v. Washington State DOT. Edward Salcedo, President of GCAP is actively involved in various projects that require intimate understanding of the Federal DBE Program and the effectiveness of program measures.

Rosales Business Partners LLC (RBP) : RBP is a legal and policy firm specializing in public law and representing public agencies. Founded in 2009, the firm offers clients a multi-disciplinary, strategic approach to problem solving in a variety of practice areas, particularly public contracting and the creation of public policy. RBP has a national reputation for its extensive experience in the disparity study field, including the legal defense of minority- and woman-owned business programs in the Ninth Circuit. The firm has recently worked with BBC on disparity studies for the San Francisco Municipal Transportation Authority and the San Jose International Airport as well as on supportive services engagements with the City of Boston and the Commonwealth of Virginia.

The project team is committed to engaging the public meaningfully throughout the course of the Caltrans Disparity Study. BBC will host various events to help the public understand the purpose of the study and to offer opportunities for the public to submit testimony and comments about their experiences working in the local marketplace and with Caltrans and local agencies. The events schedule will be updated regularly. Please check back periodically for those updates.

Community meetings: In partnership with Caltrans, BBC is hosting five community meetings during which the project team will give a presentation describing the disparity study, including its purpose, methodology, and the study schedule.

Public meeting schedule:

  • Tuesday June 14, from 6 – 7:30 pm
  • Thursday June 16, from 12 – 1:30 pm

Sessions will be conducted via Zoom with a telephone option; zoom/call-in information will be provided upon registering for a public meeting.

Any testimony we receive during the meetings will be treated confidentially. They will be integrated as part of the project team’s analyses of local marketplace conditions without identifying you as the source. Please participate and make sure your insights are included as part of the study process, and feel free to share the community meetings flyer.

Frequently Asked Questions

Q. What is a Disparity Study?

A disparity study examines whether there are differences between:

  • The percentage of dollars that minority- and woman-owned businesses received on an organization’s prime contracts and subcontracts during a particular time period (utilization); and
  • The percentage of dollars that those businesses would be expected to receive based on their availability to perform on the organization’s prime contracts and subcontracts (availability).

The comparison between the participation and availability of minority- and woman-owned businesses in an organization’s contracting is referred to as a disparity analysis. In addition to utilization, availability, and disparity analyses, disparity studies typically examine other information about:

  • Legal considerations surrounding the implementation of minority- and woman-owned business programs;
  • Conditions in the local marketplace for minorities, women, and minority- and woman-owned businesses;
  • Contracting practices and business assistance programs that the organization currently has in place; and
  • Potential program measures for consideration as part of the organization’s implementation of minority- and woman-owned business programs.

Q. When will the disparity study be completed?

The study will be completed in August 2022.

Q. What types of contracts are being studied?

The disparity study will examine prime contracts and subcontracts that Caltrans and its subrecipient local transit agencies awarded from October 1, 2017, to September 30, 2020. The study will examine professional services and goods and non-professional services contracts and procurements.

Q. What will Caltrans do with information from the disparity study?

Information that the project team collects as a part of the disparity study will help inform Caltrans’ implementation of the Federal Disadvantaged Business Enterprise Program. Among other information, the disparity study will provide:

  • An independent, objective review of minority- and woman-owned business participation in Caltrans prime contracts and subcontracts.
  • Information that is useful for setting overall annual aspirational goals for the participation of minority- and woman-owned businesses in Caltrans contracting and procurement; and
  • Insights about how Caltrans might improve contracting for local businesses and how it could better encourage the participation of minority- and woman-owned businesses in the future.

Q. Will the results of disparity study be made public?

Yes, the results of the disparity study will be made public at the end of the process.

Q. How can I participate in the disparity study process?

There are several ways in which you can participate in the California Department of Transportation Disparity Study:

  • Share your experiences working in the local marketplace or with Caltrans by emailing the project team directly at CaltransDisparity@bbcresearch.com.
  • Join us for a community meeting where you can learn more about the disparity study process, ask questions, and submit testimony about your experiences working in the marketplace.
  • Respond to our requests to complete an availability survey. If you represent a business working in the local marketplace, you may be contacted as a part of the availability survey process. If you are contacted, please help the project team by participating!
  • Contact us if you have any unanswered questions about the study.

Materials

Caltrans will provide access to relevant disparity study notes, presentations, and reports below. Please check back periodically for updated documents throughout the course of the study.

Project initiation presentation: Caltrans and BBC initiated the disparity study in April 2022 with a series of meetings with various Caltrans departments and representatives. BBC met with Caltrans to introduce the study, answer questions, and begin the process of understanding contracting and vendor data that Caltrans maintains (see initial presentation).

Comments

Please submit any comments that you may have about your experiences working in the local marketplace, working with Caltrans, or about the disparity study. Topic areas could include:

  • Conditions in the local marketplace, including any potential barriers that businesses face in being successful or growing;
  • Contracting opportunities with Caltrans or other government organizations;
  • Business assistance programs that Caltrans or other government organizations currently use;
  • Any recommendations for additional business assistance programs that Caltrans could consider implementing; or
  • The Caltrans Disparity Study itself.

Your comments will be treated confidentially. They will be integrated as part of the project team’s analyses of local marketplace conditions without identifying you as the source.

E-mail your confidential comments directly to the project team at CaltransDisparity@bbcresearch.com.

Contact Us

If you have any questions regarding the disparity study, please contact one of the following individuals:

Sharon Beasley

Federal Transit Policies and Reporting

Division of Rail & Mass Transportation

California Department of Transportation (Caltrans)

(916) 657-5206

Alternatively, you can contact a member of the project team directly:

Kevin Williams

Managing Director

BBC Research & Consulting

303-321-2547

Betsy Sava

Research Associate

BBC Research & Consulting

303-321-2547

You can also e-mail your questions directly to the project team at CaltransDisparity@bbcresearch.com.

Accessibility Assistance: Caltrans makes every attempt to ensure our documents are accessible. Due to variances between assistive technologies, there may be portions of this document which are not accessible. Should you need additional assistance, please contact our Caltrans accessibility help desk at (916) 654-2852 or visit https://dot.ca.gov/request-ada-compliant-documents.

Purpose

California Department of Transportation (Caltrans) commissioned BBC Research & Consulting (BBC) to conduct a disparity study to assess whether minority- and woman-owned businesses face any barriers as part of Caltrans’s contracting processes. Information from the study helps Caltrans assess its efforts to encourage the participation of minority- and woman-owned businesses in local contracts and helps inform any refinements that Caltrans might make to its implementation of the Federal Disadvantaged Business Enterprise (DBE) Program.

Project Team

The project team for the Caltrans 2024 Disparity Study includes five firms that possess expertise directly relevant to conducting the study in a manner that meets the highest industry and legal standards.

BBC Research & Consulting (BBC). BBC, which will serve as the prime consultant for the study, is a 50-year-old economic and diversity research firm based in Denver, Colorado. The firm has completed nearly 130 disparity studies for states, cities, transportation agencies, and other government organizations nationwide. BBC is also considered a national expert in helping organizations develop and refine their implementations of small and diverse business programs. The firm has provided expert testimony related to disparity studies and diverse business programs on several different occasions, most recently as part of the successful defense of the California Department of Transportation’s (Caltrans’) implementation of the Federal Disadvantaged Business Enterprise Program. For more information about BBC, please visit their website.

Opportunity Marketing Group, Inc (OMG). OMG is a Black American woman-owned, program development and compliance firm based in Culver City, California. The firm is certified as an SB by the California Department of General Services. OMG was founded in 1992 to help POC-owned and local businesses compete for and obtain contracts with government agencies. Since that time, the firm has expanded its services to include labor compliance services, prevailing wage compliance, workforce development, community and business outreach, and supplier diversity programs for government agencies as well as private sector businesses throughout California. For the 2024 California Department of Transportation Disparity Study, OMG will conduct in-depth interviews with business owners in the marketplace to collect anecdotal evidence about potential barriers in the region. In addition, the firm will help facilitate various community engagement efforts to help ensure external stakeholders are engaged with the disparity study throughout the entire process.

GCAP Services (GCAP). GCAP is a Hispanic American-owned supportive services firm based in Costa Mesa and Sacramento, California. The firm is certified as a DBE and SB(Micro) through the California Department of General Services. The firm has substantial experience supporting organizations that implement small business and POC- and woman-owned business programs. Its staff has experience bringing innovation and best practices to small and diverse business programs, including in the areas of outreach and awareness; race- and gender-conscious and race- and gender-neutral program development; readiness assessment; program implementation; compliance, reporting, monitoring, and training; and data collection and analysis for disparity studies. For the 2024 California Department of Transportation Disparity Study, GCAP will assist with community engagement tasks, will conduct in-depth interviews, and will assist with data tasks as needed. GCAP will also review Caltrans’ programs and policies, provide detailed recommendations, and assist with goal development and report writing.

Davis Research. Since its inception in 1970, Davis Research has grown to be one of the leading survey data collection firms in the nation. The firm consistently delivers sophisticated telephone and web-based surveys with seamless programming, supremely qualified surveyors, and a customized look and feel. In addition, it offers professional computer-aided telephone interviewing services from its industry-best call centers. Davis Research’s success has come from partnering with its clients to deliver custom survey solutions that best answer research questions. For the 2024 California Department of Transportation Disparity Study, Davis Research will be responsible for programming and fielding surveys with businesses in the local marketplace in connection with the availability and utilization analyses. 

Rosales Law Partners (RLP). RLP is a Hispanic American woman-owned legal and policy firm specializing in contracting diversity, public law, and representing government agencies. RLP has a national reputation for its extensive experience in the disparity study field, including the legal defense of persons of color (POC)- and woman-owned business programs in the Ninth Circuit. The firm is certified as a DBE and SB(Micro) through the California Department of General Services. The firm’s attorneys have decades of experience related to the development and enforcement of business participation programs, which was acquired through their experience as in-house government lawyers and managers, as well as outside legal counsel and consultants to various public agencies. For the 2024 California Department of Transportation Disparity Study, RLP will develop the legal framework and consult on legal issues and disparity study recommendations.

Key Contacts

If you have any questions or comments regarding the disparity study, please contact:

Edwin Bragado

FTA Civil Rights & DBE Compliance Analyst

Caltrans Division of Local Assistance/Office of Civil Rights

(t) 916-907-2155

(e) Edwin.bragado@dot.ca.gov

Alternatively, you can contact a member of the project team directly:

Kevin Williams        
Managing Director
BBC Research & Consulting                              
(t) 303-321-2547                             
(e) kwilliams@bbcresearch.com

Betsy Sava              
Project Manager
BBC Research & Consulting                              
(t) 303-321-2547                             
(e) bsava@bbcresearch.com 

or at: CaltransDisparity@bbcresearch.com

Study Analyses

The disparity study will focus on construction and professional services contracts and procurements Caltrans awarded between January 1, 2020, and December 31, 2023. The core purpose of the disparity study will be to examine whether there are any disparities between: 

  • The percentage of contract and procurement dollars Caltrans spent with POC- and woman-owned businesses during the study period (utilization); and
  • The percentage of contract dollars one might expect Caltrans to award to POC- and woman-owned businesses based on their availability to perform specific types and sizes of Caltrans contracts and procurements (availability).

The study will also examine other information related to:

  • Legal considerations surrounding Caltrans’s implementation of the Federal Disadvantaged Business Enterprise (DBE) Program; 
  • Marketplace conditions throughout California for POCs, women; and POC-,  and woman-owned businesses;
  • Contracting policies and business assistance programs Caltrans currently has in place; and
  • Program measures for Caltrans to consider implementing to further encourage the participation of POC- and woman-owned businesses in their work.

Events

Caltrans and BBC are in the process of scheduling public participation meetings to help the public understand the purpose of the study and offer opportunities for the public to submit testimonies and comments about their experiences working in the local marketplace and with Caltrans and local agencies.

During each meeting, the project team gave a presentation describing the disparity study, including its purpose, methodology, and the study schedule. Following the presentation, attendees were given the opportunity to ask questions and submit verbal or written testimony about their experiences working in the local marketplace and with Caltrans. Comments were treated confidentially and integrated as part of the project team’s analyses of local marketplace conditions without identifying the source.

If you have any questions about the Caltrans Disparity Study, please contact Caltrans Office of Civil Rights at smallbusinessadvocate@dot.ca.gov.

Scheduled Events

2024 California Department of Transportation Disparity Study Public Meeting

Frequently Asked Questions

Q. What is a Disparity Study?

A disparity study examines whether there are differences between:

The percentage of dollars that minority- and woman-owned businesses received on an organization’s prime contracts and subcontracts during a particular time period (utilization); and

The percentage of dollars that those businesses would be expected to receive based on their availability to perform on the organization’s prime contracts and subcontracts (availability).

The comparison between the participation of minority- and woman-owned businesses in an organization’s contracting and the availability of those businesses to perform that work is referred to as a disparity analysis. In addition to utilization, availability, and disparity analyses, disparity studies typically examine other quantitative and qualitative information about:

Legal considerations surrounding the implementation of minority- and woman-owned business programs;

Conditions in the local marketplace for minorities, women, and minority- and woman-owned businesses;

Contracting practices and business assistance programs that the organization currently has in place; and

Potential program measures for consideration as part of the organization’s implementation of minority- and woman-owned business programs.

Q. Why does Caltrans conduct a disparity study?

Caltrans conducts a disparity study to obtain evidence on which to base its overall Disadvantaged Business Enterprise (DBE) participation goal for United States Department of Transportation-assisted contracts, also known as Caltrans’ “overall DBE goal and methodology.”

Q. What is the authority for Caltrans to conduct a disparity study to develop its overall DBE participation goal?

Title 49 Code of Federal Regulations, part 26.45 (49 CFR 26.45).

Q. How often does Caltrans conduct a disparity study?

Caltrans is required to calculate an overall DBE participation goal for FHWA- and FTA-assisted contracts every three years, according to 49 CFR 26.45.  Therefore, Caltrans conducts disparity studies approximately every three years.

Q. Who is conducting Caltrans’ 2024 FHWA Disparity Study?

BBC Research & Consulting.

Q. What was the study period for the 2024 FHWA Disparity Study?

January 1, 2020 – July 31, 2023.

Q. What types of contracts were studied?

The disparity study examined prime contracts and subcontracts that the State awarded from January 1, 2020, through July 31, 2023. The study examined construction, professional services, goods, and other services contracts.

Materials

Caltrans will provide access to relevant disparity study notes, presentations, and reports below. Please check back periodically for updated documents throughout the course of the study.

Project initiation presentation. Caltrans and BBC initiated the California Department of Transportation Disparity Study in July 2020 with a series of meetings with various Caltrans departments and representatives. BBC met with Caltrans to introduce the study, answer questions, and begin the process of understanding contracting and vendor data that Caltrans maintains.

Comments

Caltrans 2020 Disparity Study, which analyzed potential DBE availability and utilization in its Federal Highway Administration-funded contracts.  Caltrans overall Disadvantaged Business Enterprise (DBE) goal for federal fiscal years 2022-2024 is 22.2 percent for FHWA-funded projects. Caltrans is firmly committed to the DBE program and our continuous partnering with FWHA to improve utilization throughout the State.  Furthermore, in support of the program we are enhancing our outreach efforts in increasing industry knowledge and participation on Caltrans contracts.

If you have any questions about the Caltrans Disparity Study, please contact Caltrans Office of Civil Rights at smallbusinessadvocate@dot.ca.gov.

Previous Disparity Study

The previous Disparity Study was conducted by BBC Research & Consulting (BBC) in 2020. Find more information on the 2021 Disparity Study webpage.

Caltrans Disparity Study 2021 Final Report (1056 Pages)

DBE Goal and Methodology Proposal

Disparity Study - Executive Summary