OCTOBER 2007

DC Sports & Entertainment Commission Exceeds LSDBE Contracting Goals

Washington, (D.C.) - In a briefing today at the construction site of the new Washington Nationals Ballpark, the DC Sports and Entertainment Commission briefed Council Member Kwame R. Brown and members of the media on the progress for DC business contracts and DC resident hiring on the new Ballpark. As part of the new ballpark project, the District created a new standard in setting aggressive and specific goals with regard to contracts for Local, Small and Disadvantaged Business Enterprises (LSDBE) and with regard to DC resident hiring.

“With the new Ballpark, the bar was set high – a 50% LSDBE contracting goal as compared to a 35% LSDBE contracting goal on the last major DC public works project, the DC Convention Center,” said Greg O’Dell, DC Sports and Entertainment Commission CEO. During the briefing, DCSEC emphasized that it has been challenging and has required tremendous effort and teamwork on the part of the DC Department of Small and Local Business Development, the DC Department of Employment Services, Clark/Hunt/Smoot, the design/build contractor, and the labor unions. The Ballpark project has achieved significant progress in LSDBE contracting and DC resident hiring throughout the different construction trades as well as at all contracting levels, from the prime contractor, design team and primary subcontractors to the second- and third-tier subcontractors.

The specific goals established by the DC government for the Ballpark project include:

50% of construction contracts to be awarded to certified Local, Small or Disadvantaged Business Enterprises (LSDBE);
51% of all new hires on the Ballpark to be DC residents;
50% of all journeyperson hours and 50% of all apprentice hours worked on the project to be worked by DC residents on a craft-by-craft basis; and
100% of all new apprentices hired for the project to be DC residents.
“Not only are the goals specific, but we are measuring them in detail – the value of contracts issued, the number of people hired, as well as the hours worked by apprentices and journey workers on a craft-by-craft basis,” added Courtland Cox, DCSEC’s Director of LSDBE Development.

At the briefing, Greg Colevas, Executive Vice President for Clark/Hunt/Smoot, the design/build contractor, reported on not only the quantitative results thus far but also introduced some of the LSDBE contractors and DC residents who have realized significant opportunities on the Ballpark project. Colevas outlined the following progress and accomplishments:

A total of more than $170 million in contracts has been awarded to-date to some 80 different LSDBE contractors, with more than $30 million soon to be awarded, exceeding the 50% LSDBE contracting goal for the project.
A total of 646 DC residents have been hired thus far to work on the Ballpark. Of that 646, 574 have been new hires, equating to 50.1% of all new hires on the project thus far, which is just shy of the 51% goal.
A total of 149,134 hours, or 78%, of all apprentice hours worked as of August 31, 2007 have been worked by DC residents, significantly exceeding the 50% goal on a craft-by-craft basis.
A total of 245 of the 270 new apprentices (91%) employed thus far to work on the Ballpark have been DC residents. According to Colevas, “We have six months still to go on the project and will continue to focus on this goal.”

Clark/Hunt/Smoot is, itself, a joint venture between certified LSDBE contractor Smoot Construction and its partners, Clark Construction Group and Hunt Construction. “Working together with the District agencies, we have made tremendous progress in utilizing the Ballpark project to establish a solid foundation of LSDBE contractors at all levels and skilled DC resident workers across the different building trades. We have built an important foundation of new DC-based apprentices, but it takes from one to five years for an apprentice to become a journey worker depending upon the particular craft or trade,” said Colevas. He further indicated that time and continued effort will be necessary to meet the goal of achieving 50% DC journey worker hours on this and other District projects. Total DC Journey worker hours on the Ballpark currently stand at 245,143 hours, or 28% of the total. “There is still important work to do. We are closely monitoring this process and working hard to meet this goal,” said Colevas.

Clark/Hunt/Smoot has put a full-time team in place to focus solely on outreach to LSDBE contractors and on DC resident hiring. The joint venture has also developed some creative approaches to meeting the District’s goals. For example, Clark/Hunt/Smoot, in conjunction with the DC Sports and Entertainment Commission, developed the “Pay Without Delay” program that allows LSDBE contractors to be paid in an expedited fashion. According to Colevas, “LSDBE contractors have told me that the ‘Pay Without Delay’ Program is a tremendous benefit to all LSBDE companies. It helps these smaller companies grow and meet payroll, pay suppliers and maintain more productivity on the project. We see this program as a model for other projects in the District.”

In addition, Clark/Hunt/Smoot last year established the “LSDBE Strategic Partner Program,” a 10-month management training program for LSDBE leaders established in conjunction with the Tuck School of Business at Dartmouth College. Approximately 35 executives and managers from 26 different LSDBE contractors graduated from the first year’s program in May of this year, and the second year’s class of some 36 participants began the program in September.

“We are pleased to be working with the District government and the DC Sports and Entertainment Commission to use the Ballpark project to build the size, scope and scale of the LSDBE contractors and the skilled DC residents who will be part of the eight to 12 billion dollars in new construction that will occur in the city over the next five to 10 years,” said Colevas.

O’Dell adds that the programs and the efforts surrounding the Ballpark have created a solid foundation of District residents to fill the skilled construction-related jobs which this new development will bring. The programs have also built a growing base of LSDBE contractors to compete for District-based project in the years to come.

The D.C. Sports and Entertainment Commission, an independent agency of the District of Columbia government, is responsible for the management and operation of Robert F. Kennedy Memorial Stadium, the D.C. Armory and their adjacent facilities. The Commission is also charged with presenting and promoting sports, entertainment and special events.

Clark/Hunt/Smoot, A Joint Venture, the construction manager for the new Washington Nationals Ballpark, is comprised of Clark Construction Group, LLC of Bethesda, Md.; Hunt Construction Group of Indianapolis, Indiana; and Smoot Construction of Washington, D.C. Collectively, this team brings to the Ballpark project unmatched experience building landmark projects in Washington, D.C., a proven record of local subcontractor involvement and unparalleled sports facility expertise.

NOTE: The DC Sports & Entertainment Commission is building the new ballpark on behalf of the District of Columbia Government. All press access must be granted by the Sports Commission or Clark/Hunt/Smoot. To schedule stories for RFK management and/or new ballpark construction contact Chinyere Hubbard at (202) 608-1126 or chubbard@dcsec.com.