# {FK]**FRONTIER~KEMPER** 

### CONSTRUCTORS, INC. A

### TUtor,.,., Company

December 20,2013 Docket Management Facility, U.S. Department ofTransportation, 1200 NewJersey Avenue SE, West Building Ground Floor, Room W12-140, Washington, DC 20590-0001 Re: 

### Docket No. 

### OST-2012-0147 DearDocket Clerk: NORTHEAST DIVISION OFFICE 415 Fifth Avenue Pelham, NY 10803 TEL: 914.738.0280 FAX: 914.738.0026 www.frontierkemper.com

I represent a General Contractor, Frontier-Kemper Constructors, Inc. (FKCI). FKCI specializes intunneling, shaft construction and other-related types ofheavy construction work. Our company is a member ofthe General Contractors Association ofNewYork (GCA). We strongly believe that any rule changes that would require that DBEs and their quoted prices be locked into the prime contractors bid is notbe inthe best interest ofthe public. The majority ofFKCI's work is obtained through public bidding. In almost every instance the public Owner's bidproposal will require that the prime contractor obtain a certainpercentage of MBE/WBE/DBE participation for the project. Ifthe percentage is not able to be reached then the prime contractor must demonstrate that it has put forth a valid and acceptable good-faith effort. This good-faith effort does not stop once the bid is submitted and the project is awarded, rather it continues throughjob completion inhopes ofreaching the published goal. FKCI's good-faith efforts in regards to obtaining DBEparticipation on a project are extensive, time consuming, and costly. The significant cost for performing a good-faith effort undertaking [advertisements, phone, e-mailing, faxing, attending outreach sessions, etc.] is inevitablypassed onto the Owner inthe contractor's bids. Further, even with this gigantic effort, rarely do we find a sufficient number of"qualified" DBEs by bid time willing or able to provide a quote or capable ofperforming the work. In a number ofinstances, we will come across a specialty DBE firm who is obviously seeking a windfall. Such a firm will attempt to beatthe system by over inflating its prices in hopes that the contractor, forced to reach a DBE goal, will be forced to include its name inthe bid proposal. Obviously, it is the Owner and the public that will ultimately have to bearthe cost for inflated DBEpricing.

DOT DocketNumber OST-2012-0147Currently, it is often very difficult to attain DBEparticipation on some ofthe largerprojects because unrealistically high participation goals are established and the required number of available and experienced DBEs arejustnot there- despite the extent ofthe good-faith efforts that are taken. Ifa contractor is nowrequired to list all its DBEs in its bid without the benefit of demonstrating good-faith effort orhaving the opportunityto seek out other DBEs then many contractors will be unable to bid. This will leadto few bidders onprojects and higher costs to the public. Itis our opinionthat the U.S. DOT needs to sit down withthe Contractors from across the nation to find out whatreally should be done to spur and encourage the growth ofDBE companies. Yours truly,

Richard Raab President Northeast Division Frontier-Kemper Constructors, Inc.,

DOT Docket Number OST-2012-0147