UAB Spending with Minority Contractors Continues to Increase

UAB has set a record for dollars spent with minority contractors this year. In the first nine months of fiscal year 1999/2000 UAB has spent more than $5.56 million, representing a 102 percent increase from levels two years ago. This comes despite recent claims from minority contractors that UAB is not making efforts to do business with them.

August 15, 2000

BIRMINGHAM, AL — UAB has set a record for dollars spent with minority contractors this year. In the first nine months of fiscal year 1999/2000 UAB has spent more than $5.56 million, representing a 102 percent increase from levels two years ago. This comes despite recent claims from minority contractors that UAB is not making efforts to do business with them.

Despite public pronouncements that UAB President Ann Reynolds has ignored minority contractors’ requests to meet, she had not received such a request until today. A meeting has now been scheduled.

“Making statements to the media is not requesting an opportunity to sit down and discuss these issues,” said Gary Mans, UAB director of public relations. “Dr. Reynolds will meet with several contractors later this week to hear their concerns.”

UAB’s record for awarding contracts on projects that are $50,000 or less and which UAB has sole discretion is quite good, with more than 40 percent going to minority contractors.

Local minority contractors, however, complain about their lack of inclusion in larger contracts, which by state law requires a formal bid process. UAB has a number of programs in place to assist all small contractors in their attempts to garner subcontracting work in these cases:

  • UAB requires the general contractors to notify the Birmingham Construction Industry Authority (BCIA) of major projects at UAB. This gives BCIA an opportunity to inform its members of the projects so that they can have the opportunity to bid on them.

  • On a monthly basis, UAB mails a list of upcoming projects that will be available for bid. This is mailed to all BCIA members and anyone else who requests it.

  • UAB holds pre-bid conferences with the BCIA on major contracts to preview what the general contractors will likely need in terms of electrical, plumbing, masonry contractors, etc., in an attempt to better position BCIA members to secure that business.

  • UAB encourages general contractors to do business with minority contractors and requires them to submit reports on the number of minority firms with which they subcontract. However, a federal consent decree prevents the establishment of set-asides or quotas for minority contractors in most cases.

  • UAB has begun to break larger construction projects into more, smaller projects in an attempt to increase the number of contractors who have the opportunity to gain business with UAB.

  • UAB arranges opportunities for general contractors to meet with smaller contractors so that they can establish relationships not only on a professional basis, but also on a personal basis.

  • UAB makes an initial approximation of the costs for most projects and provides that information to any contractor who requests the information to assist them in their estimating.

“Working with minority and women-owned businesses is very important to us. For that reason we have in place a comprehensive minority business development program,” Mans said. “Over the past decade, our percentage of dollars spent with these businesses has shown a steady increase and we have every intention to see that trend continue.”

In the first nine months of fiscal year 99/00, UAB spent more than $13.5 million with minority- and women-owned businesses. This is $1.4 million, or 12 percent, more than the same period last year. UAB anticipates that the total dollars spent with minority- and women-owned businesses to top $20 million this year, an increase of 12.4 percent over the previous year. It also marks a 45 percent increase over FY 97/98 ($13.8 million).