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D I S P a R I T Y S T U D Y F I N a L R E P O R T Metropolitan Transit Authority of Harris County, Texas D I S P A R I T Y S T U D Y F I N A L R E P O R T S U B M I T T E D M A Y 2 0 2 1 Table of Contents CHAPTER 1: LEGAL REVIEW ................................................................................................... 1-1 I. INTRODUCTION ................................................................................................................. 1-1 II. STANDARD OF REVIEW ..................................................................................................... 1-2 A. MINORITY BUSINESS ENTERPRISE PROGRAMS ............................................................. 1-2 B. WOMEN BUSINESS ENTERPRISE PROGRAMS ................................................................. 1-4 III. BURDEN OF PROOF ........................................................................................................... 1-7 A. INITIAL BURDEN OF PROOF .......................................................................................... 1-7 B. ULTIMATE BURDEN OF PROOF ...................................................................................... 1-8 IV. CROSON EVIDENTIARY FRAMEWORK ............................................................................ 1-10 A. ACTIVE OR PASSIVE PARTICIPATION .......................................................................... 1-11 B. SYSTEMIC DISCRIMINATORY EXCLUSION ................................................................... 1-14 C. ANECDOTAL EVIDENCE .............................................................................................. 1-18 D. REMEDIAL STATUTORY SCHEME ................................................................................ 1-23 V. CONSIDERATION OF RACE-NEUTRAL OPTIONS ............................................................. 1-26 VI. UNITED STATES DEPARTMENT OF TRANSPORTATION DISADVANTAGED BUSINESS ENTERPRISE PROGRAM .................................................................................................. 1-27 A. ANALYSIS OF THE EIGHTH CIRCUIT CHALLENGES ...................................................... 1-27 B. ANALYSIS OF THE NINTH CIRCUIT CHALLENGES ........................................................ 1-28 C. ANALYSIS OF THE SEVENTH CIRCUIT CHALLENGES ................................................... 1-33 VII. CONCLUSION ................................................................................................................... 1-35 VIII. LIST OF AUTHORITIES ................................................................................................. 1-36 A. CASES ......................................................................................................................... 1-36 B. STATUTES ................................................................................................................... 1-39 CHAPTER 2: PROCUREMENT REVIEW ..................................................................................... 2-1 I. INTRODUCTION ................................................................................................................. 2-1 II. GOVERNING LAWS AND REGULATIONS ........................................................................... 2-1 i Mason Tillman Associates, Ltd., May 2021 Final Report Metropolitan Transit Authority of Harris County, Texas Disparity Study Table of Contents III. INDUSTRY DEFINITIONS .................................................................................................... 2-2 IV. PROCUREMENT PROCESS AND PROCEDURES ................................................................... 2-2 A. OVERVIEW.................................................................................................................... 2-2 B. SMALL PURCHASES ...................................................................................................... 2-3 C. COMPETITIVE SEALED BID ........................................................................................... 2-3 D. COMPETITIVE NEGOTIATED CONTRACTS...................................................................... 2-5 E. EXCEPTIONS TO THE COMPETITIVE PROCUREMENT PROCESS ....................................... 2-7 V. SMALL BUSINESS ENTERPRISE AND DISADVANTAGED BUSINESS ENTERPRISE PROGRAMS ........................................................................................................................ 2-8 A. BACKGROUND .............................................................................................................. 2-8 B. DISADVANTAGED BUSINESS ENTERPRISE PROGRAM .................................................. 2-10 CHAPTER 3: PRIME CONTRACTOR UTILIZATION ANALYSIS ................................................. 3-1 I. INTRODUCTION ................................................................................................................. 3-1 II. PRIME CONTRACT DATA SOURCES .................................................................................. 3-2 III. THRESHOLDS FOR ANALYSIS ............................................................................................ 3-3 A. INFORMAL CONTRACT THRESHOLDS ............................................................................ 3-3 B. FORMAL CONTRACT THRESHOLDS ............................................................................... 3-4 C. FORMAL THRESHOLDS FOR ANALYSIS ......................................................................... 3-4 IV. PRIME CONTRACTOR UTILIZATION ................................................................................. 3-5 A. ALL PRIME CONTRACTORS ........................................................................................... 3-5 B. HIGHLY USED CONSTRUCTION PRIME CONTRACTORS ................................................. 3-6 C. HIGHLY USED PROFESSIONAL SERVICES PRIME CONTRACTORS .................................. 3-7 D. HIGHLY USED GOODS AND SERVICES PRIME CONTRACTORS ....................................... 3-8 E. ALL PRIME CONTRACTS BY INDUSTRY ....................................................................... 3-10 F. INFORMAL CONTRACTS BY INDUSTRY, VALUED $10,000 AND UNDER ....................... 3-16 G. INFORMAL CONTRACTS BY INDUSTRY, VALUED $10,001 TO $15,000 ........................ 3-22 H. INFORMAL CONTRACTS BY INDUSTRY, VALUED $15,001 TO $50,000 ........................ 3-28 I. FORMAL PRIME CONTRACTS BY INDUSTRY ................................................................ 3-34 V. SUMMARY ........................................................................................................................ 3-40 CHAPTER 4: SUBCONTRACTOR UTILIZATION ANALYSIS ....................................................... 4-1 I. INTRODUCTION ................................................................................................................. 4-1 ii Mason Tillman Associates, Ltd., May 2021 Final Report Metropolitan Transit Authority of Harris County, Texas Disparity Study Table of Contents II. DATA SOURCES ................................................................................................................. 4-1 A. DATA RECONSTRUCTION PROCESS ............................................................................... 4-1 III. SUBCONTRACTOR UTILIZATION ....................................................................................... 4-2 A. ALL SUBCONTRACTS .................................................................................................... 4-2 B. SUBCONTRACTS BY INDUSTRY ..................................................................................... 4-3 IV. CONCLUSION ..................................................................................................................... 4-7 CHAPTER 5: MARKET AREA ANALYSIS .................................................................................. 5-1 I. MARKET AREA DEFINITION ............................................................................................. 5-1 A. LEGAL CRITERIA FOR GEOGRAPHIC MARKET AREA .................................................... 5-1 B. APPLICATION OF THE CROSON STANDARD ................................................................... 5-1 II. MARKET AREA ANALYSIS ................................................................................................ 5-4 A. SUMMARY OF THE DISTRIBUTION OF ALL PRIME CONTRACTS AWARDED .................... 5-4 B. DISTRIBUTION OF CONSTRUCTION PRIME CONTRACTS................................................. 5-6 C. DISTRIBUTION OF PROFESSIONAL SERVICES PRIME CONTRACTS .................................. 5-6 D. DISTRIBUTION OF GOODS AND SERVICES PRIME CONTRACTS ...................................... 5-7 III. SUMMARY .......................................................................................................................... 5-9 CHAPTER 6: PRIME CONTRACTOR AND SUBCONTRACTOR AVAILABILITY ANALYSIS ......... 6-1 I. INTRODUCTION ................................................................................................................. 6-1 II. PRIME CONTRACTOR AVAILABILITY DATA SOURCES .................................................... 6-1 A. IDENTIFICATION OF WILLING BUSINESSES WITHIN THE MARKET AREA ....................... 6-1 B. PRIME CONTRACTOR SOURCES..................................................................................... 6-2 C. DETERMINATION OF WILLINGNESS .............................................................................. 6-5 D. DISTRIBUTION OF AVAILABLE PRIME CONTRACTORS BY SOURCE, ETHNICITY, AND GENDER .......................................................................................................................
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