PsylockeSmythe
New Member
What they are more than likely talking about is for construction type of contracts. What that means, is that on a lot of public projects, the owner would like a certain percentage of the work to be performed/supplied by a minority company. We see it all the time to where the General Contractor has been directed by the owner that they would like 20 to 25% of the work to be supplied or performed by minority companies.I‘m not trying to change the subject, and we can go right back to discussing the millage rate, but I was just checking out the CFTOD Facebook page and was surprised to see that while ”abolishing“ DEI from the District, the majority of the interns they have been parading about seem to be in the minority demographic. Isn’t that kind of the opposite of what the administrator said they’re doing? Or do I not understand how DEI works?
The problem is that this can cause the project to cost more. For example, where I work, we can buy the material directly from the manufacture and we self-perform 99% of the work that we bid on. For us to have minority participation, that means that we would have to either buy the materials from a 3rd party minority company or subcontract out the labor portion to a minority company or a combination of the two. Getting a price from the minority company means the price of the material on the project ends up X (manufacture price) times Z (the minority company markup), times Y (our markup) and that would be priced into our bid. So something that would cost us a $1,000 to buy direct can end up costing us $1,400 to buy from the minority company. Which we then markup and place that value on our bid, which means that the owner/GC' project ends up costing more to complete, then it would without the minority participation requirement.
These types of directives are designed to try and help minority owned businesses but can and do increase the costs of most projects.
So, I'm pretty sure that this is what they are talking about costing the district millions of dollars more then would be necessary if the district didn't require minority participation.
Psy