T-REX, the $1.67 billion light- rail and highway expansion project, does not expect to meet its goal of funneling about 15 percent of design and construction money to “disadvantaged business enterprises,” or DBEs, over the five-year life of the project.
Transportation Expansion Pro ject officials acknowledged the anticipated shortfall at a ceremony Wednesday that awarded $1 million to 10 entities that will train minority- and woman- owned companies in business and construction skills next year.
The T-REX project is nine months from completion.
Four years ago, when contractors were hired to build 19 miles of light rail and expand Interstates 25 and 225 in southeast metro Denver, officials pledged to deliver 15 percent of the work to DBEs.
Because the cost of T-REX design and construction is $1.23 billion, the DBE goal was roughly $177 million.
(Most of the remaining $440 million is for light-rail cars, a rail maintenance facility, and highway and rail rights-of-way.)
To date, Southeast Corridor Constructors, which is building T-REX, has committed about $190 million to DBE subcontractors, said Joy Wasendorf, spokeswoman for the contractor group.
Yet, because a federal rule prevents giving DBE credit when a minority- or woman-owned business in turn hires a non-DBE subcontractor, officials are recalculating the amount of credit for DBE hiring that contractors will get, Wasendorf said.
It could be closer to $140 million when the project is finished, short of the 15 percent goal, she said. If the DBE total comes in at $140 million to $150 million, contractors might be liable for financial penalties.
But their agreement with the Colorado Department of Transportation and the Regional Transportation District allows for the waiver of penalties if Southeast Corridor Constructors makes a “good-faith” effort to meet the DBE goal, officials said.
“We’re hanging our hat on our good-faith effort,” Wasendorf said.
The 10 organizations that will train DBEs in finance and construction techniques include Cultura Business Communications of Denver and Colorado State University’s branch in Pueblo. Each will continue to offer the small- business assistance after T-REX construction ends.
RTD’s $4.7 billion FasTracks transit- expansion venture expects to deliver hundreds of millions of dollars in contracts to DBEs over the next 11 years.
RTD assistant general manager Phil Washington said the FasTracks DBE program will be a “model” for the nation.
Staff writer Jeffrey Leib can be reached at 303-820-1645 or jleib@denverpost.com.
