St. Louis Electric was the minority subcontractor listed in Reinhold’s contract. James Jackson, president of St. Louis Electric, said he would have sent workers over had he been called, but they weren’t hurting for work at that time. Jackson isn’t surprised that the project had virtually no minority participation — had such guidelines not been established by the city and with other public entities in the region, his business would have never got off the ground, he said.
“A lot of these big projects — were there not minority participation requirements, obviously, they would go through their friends, their associates,” Jackson said. “So minority participation has definitely been an asset to me throughout the duration of my company.”
Jackson’s company has now been certified for more than 25 years, he said, and has been the prime contractor on multi-million-dollar contracts.
In a statement to the American, Reinhold said, “Reinhold Electric complied, in full, with each and every requirement provided by the owners’ representative.”
Despite county officials’ claim that they used pre-existing contracts that lacked the minority-inclusion stipulations for the morgue project, that wasn’t the case for every company. There were two major contracts that were new: the general contractor — a $375,944.07 contract — and the roofer — a $12,300 contract.
According to Thomas, minority participation could have easily been included in these two contracts, especially if the Office of Diversity, Equity and Inclusion had been brought to the table. The businesses that were contracted have been around a long time and know how to employ minority contractors, he said.
Tony Thompson, of Kwame Building Group, agreed.
“At this juncture, everyone knows who the viable minority firms are and who they are not,” Thompson said. “However, they were able to select those majority firms to get this work done. They could have easily selected the minority firms at the same time. And they didn’t do it.”
Overall, it didn’t matter that the on-call contracts didn’t have minority participation written into them, Thomas said. The county could have simply asked the contractors: these are the goals, what can you do? Most of the companies have some familiarity with minority-participation requirements because their other customers have them: the City of St. Louis, the St. Louis Housing Authority, Metropolitan Sewer District (MSD), and even some of the universities, Thomas said.
“It was a foreign concept to the county but not to most anybody else,” Thomas said. “You might not have had the 25 and 10 (% minority participation), but you certainly would have had more than zero.”
‘Zero or pretty close’
The City of St. Louis has had an inclusion program to ensure the participation of minority businesses on publicly funded projects for almost three decades, but St. Louis County only established its program in 2018 when then-County Executive Steve Stenger tapped Jack Thomas.
“It was that challenge of being able to start a program from scratch in an area where there has not been one,” said Thomas, who had helped lead the city’s diversity initiatives for many years. “I knew that there would be some resistance. That was, by and large, what I found.”
Thomas brought on a team of three officials, most of whom had decades of experience working in compliance in the region.
He and his team were up against a small but authoritative group from the Office of Procurement, Department of Transportation and the county counselor’s office, who had a “vested interest” in keeping things the same, Thomas said.
Thomas said these people would have preferred a weak inclusion law that had a lot of loopholes. As part of the process, the contracts had to go to Thomas’ office before they were awarded to ensure that there were sufficient minority subcontractors employed on the project — or that the contractors made “good-faith efforts” to do so.
On several occasions, Thomas’ team would recommend that the prime contractor not get the contract, for a variety of reasons.
Sometimes the minority- or women-owned firms weren’t certified or were so-called pass-through companies — which is when a prime contractor agrees to pay a pass-through company, but that subcontractor agrees to subcontract the work to a non-diverse firm. Yet, the Office of Procurement would ignore Thomas’ team’s recommendations, Thomas said. In some cases, he added, they wouldn’t even tell his team that they awarded the contract.
This is why the fact that protocol wasn’t followed on the morgue project wasn’t surprising, Thomas said. And the fact that the project came back with almost no minority participation was even less of a surprise.
“We tend to know the outcome if nobody is pushing it up front,” Thomas said. “If there is no requirement or if it’s not stressed in the bidding process, then we know what to expect — that it will be zero or pretty close to that.”
Page, the current county executive, recognizes that “change often takes far too long,” said Moore in an email, but that Page is committed to this work.
“As part of his commitment, the county executive asked MOKAN and other stakeholders to help identify the best way forward to increase the opportunities for minority-owned and women-owned businesses,” Moore said. “We look forward to working with them to move the initiative forward.
County Executive Page is grateful for the work that Hazel Erby, Jack Thomas and Fran Lyles-Wiggins have done to bring this program to life over the last couple of years. With Ms. Erby’s continued leadership concerning diversity initiatives in St. Louis County, we hope to continue making progress so that everyone has a fair opportunity to compete for county contracts.”
Alternate care facilities
St. Louis County isn’t the only place where black-owned businesses were left out of COVID-response construction. This spring, the U.S. Army Corps of Engineers led the construction of 38 alternative care facilities to serve as overflow hospital bed space in everything from convention centers to schools. According to a report on COVID-19 federal contracts on the Federal Procurement Data System website, only a small portion of the money awarded to businesses on emergency construction went to minority-owned businesses.
In Detroit, the TCF Center Alternate Care Facility included a triage area, patient support services such as showers and toilets, staff changing areas and administrative space, a command center and pharmacy. The 350,000-square-foot conversion of the convention center into a medical facility with 970 bed spaces across two floors for COVID-19 patients took nine days.
In Detroit, as elsewhere, the COVID-response structures were “hybrid projects,” where a local construction company would build the walls and the National Guard soldiers would provide much of the other labor.
Disparities in minority contracting in Detroit — which is 80 percent black —
have caught the attention of state and federal officials in recent years, in large part due to media scrutiny. The City Council launched an inquiry after a local newspaper investigation found only about 16 percent of federal funds used for demolition projects went to black-owned firms.
Jonathan Hyde is a National Guard soldier who worked on the Detroit site. He also runs a minority construction business. Because of the hybrid nature of the TCF Center, he didn’t see many minority workers on the job. Out of about 120 workers, at most 13 were minorities, he estimated. He’s unsure how many minority contractors received federal dollars, but it’s likely not many did, since Detroit used only union contractors, few of which are minority-owned.
“This is the first time I’ve ever seen the federal government bring in military in order to do work,” Hyde said. “It was the same in New York. It was the same in California. It was the same across the board. I don’t know if that was a ploy to get around to not having to hire, or if they couldn’t get people who were trained across the board. I don’t know.”