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The State of Minority- and Women- Owned ... - Cleveland.com

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Defining the Relevant Markets<br />

Supplies, <strong>and</strong> Equipment, or in amounts less than $50,000 were not, due to the limited<br />

opportunities for subcontracting in these areas. <strong>The</strong>se contracts did, however, remain in the<br />

overall study universe.<br />

With the City’s support <strong>and</strong> assistance, <strong>of</strong> the 1,059 prime contracts for which we sought to<br />

collect subcontract information, we were ultimately able to obtain the requested data for over 71<br />

percent <strong>of</strong> the contracts <strong>and</strong> 85 percent <strong>of</strong> the contract dollars. <strong>The</strong>se percentages are sufficiently<br />

large to be considered representative for statistical purposes. In all, a total <strong>of</strong> 752 prime contracts<br />

<strong>and</strong> 2,556 associated subcontracts were collected from prime contractors, with a total paid value<br />

(as reported by prime contractors) <strong>of</strong> $650.2 million. Of this, Construction accounted for $383.8<br />

million, or 59.0 percent <strong>of</strong> the total; AE-CRS accounted for $45.9 million, or 7.1 percent <strong>of</strong> the<br />

total; Services accounted for $168.1 million, or 25.9 percent <strong>of</strong> the total, <strong>and</strong> Commodities<br />

accounted for $52.3 million, or 8.0 percent <strong>of</strong> the total. 201<br />

<strong>The</strong>se 752 prime contracts <strong>and</strong> 2,556 associated subcontracts were then <strong>com</strong>bined with the<br />

23,122 prime contracts <strong>and</strong> purchases without significant subcontracting opportunities. Together,<br />

as shown below in Tables 3.1A through 3.1C <strong>and</strong> Table 3.2, these prime contracts <strong>and</strong><br />

subcontracts <strong>com</strong>prise the Master Contract/Subcontract Database <strong>com</strong>piled for this Study.<br />

Table 3.1A <strong>and</strong> 3.1B show the total number <strong>of</strong> prime contracts, subcontracts, dollars awarded,<br />

<strong>and</strong> dollars paid, by major procurement category. Table 3.1A shows all contracts, while Table<br />

3.1B shows federally-assisted Department <strong>of</strong> Port Control contracts. 202 Table 3.2 shows the total<br />

number <strong>of</strong> prime contracts awarded during each year <strong>of</strong> the study period <strong>and</strong> total dollar awards<br />

<strong>and</strong> payments associated with those contracts, by major procurement category. Table 3.3. shows<br />

a similar distribution among major City departments during the study period.<br />

201 See fn. 200.<br />

202 <strong>The</strong> City <strong>of</strong> Clevel<strong>and</strong> Department <strong>of</strong> Port Control manages the Clevel<strong>and</strong> Hopkins International Airport as well<br />

as the Clevel<strong>and</strong> Burke Lakefront Airport. Federally-assisted contracts at the Department <strong>of</strong> Port Control are<br />

subject to the U.S. Department <strong>of</strong> Transportation’s Disadvantaged Business Enterprise (DBE) Program.<br />

Regulations governing the DBE Program are at 49 C.F.R. §26. Of the 1,037 prime contracts in the Master<br />

Contract/Subcontract Database belonging to the Department <strong>of</strong> Port Control, 151 had initial award amounts <strong>of</strong><br />

$50,000 or greater. <strong>The</strong>se 151 contracts, while accounting for only 14.6 percent <strong>of</strong> all Port Control contracts,<br />

accounted for 96.3% <strong>of</strong> all contract award dollars <strong>and</strong> 97.2 percent <strong>of</strong> all contract payments. Of these 151<br />

contracts, 31 had federal-assistance. Although these federal-aid contracts represent only 20.5 percent <strong>of</strong> all<br />

Department <strong>of</strong> Port Control contracts <strong>of</strong> $50,000 or more, they account for 48.3 percent <strong>of</strong> dollars awarded <strong>and</strong><br />

49.6 percent <strong>of</strong> dollars paid. Another 25 Port Control contracts valued at less than $50,000 also had federalassistance.<br />

At various points throughout the Study, we will present statistical results that are restricted to<br />

federally-assisted Department <strong>of</strong> Port Control contracts. This information is relevant to the City in meeting its<br />

regulatory obligations under 49 C.F.R. §26.<br />

NERA Economic Consulting 59

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