[House Hearing, 117 Congress]
[From the U.S. Government Publishing Office]

EXAMINING WORKFORCE DEVELOPMENT AND JOB CREATION IN SURFACE
TRANSPORTATION CONSTRUCTION

=======================================================================

(117-48)

REMOTE HEARING

BEFORE THE

SUBCOMMITTEE ON
HIGHWAYS AND TRANSIT

OF THE

COMMITTEE ON
TRANSPORTATION AND INFRASTRUCTURE
HOUSE OF REPRESENTATIVES

ONE HUNDRED SEVENTEENTH CONGRESS

SECOND SESSION

__________

APRIL 27, 2022

__________

Printed for the use of the
Committee on Transportation and Infrastructure

[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

Available online at: https://www.govinfo.gov/committee/house-
transportation?path=/browsecommittee/chamber/house/committee/
transportation
_________

U.S. GOVERNMENT PUBLISHING OFFICE

48-155 PDF WASHINGTON : 2022

PETER A. DeFAZIO, Oregon, Chair
SAM GRAVES, Missouri ELEANOR HOLMES NORTON,
ERIC A. ``RICK'' CRAWFORD, Arkansas District of Columbia
BOB GIBBS, Ohio EDDIE BERNICE JOHNSON, Texas
DANIEL WEBSTER, Florida RICK LARSEN, Washington
THOMAS MASSIE, Kentucky GRACE F. NAPOLITANO, California
SCOTT PERRY, Pennsylvania STEVE COHEN, Tennessee
RODNEY DAVIS, Illinois ALBIO SIRES, New Jersey
JOHN KATKO, New York JOHN GARAMENDI, California
BRIAN BABIN, Texas HENRY C. ``HANK'' JOHNSON, Jr.,
GARRET GRAVES, Louisiana Georgia
DAVID ROUZER, North Carolina ANDRE CARSON, Indiana
MIKE BOST, Illinois DINA TITUS, Nevada
RANDY K. WEBER, Sr., Texas SEAN PATRICK MALONEY, New York
DOUG LaMALFA, California JARED HUFFMAN, California
BRUCE WESTERMAN, Arkansas JULIA BROWNLEY, California
BRIAN J. MAST, Florida FREDERICA S. WILSON, Florida
MIKE GALLAGHER, Wisconsin DONALD M. PAYNE, Jr., New Jersey
BRIAN K. FITZPATRICK, Pennsylvania ALAN S. LOWENTHAL, California
JENNIFFER GONZALEZ-COLON, MARK DeSAULNIER, California
Puerto Rico STEPHEN F. LYNCH, Massachusetts
TROY BALDERSON, Ohio SALUD O. CARBAJAL, California
PETE STAUBER, Minnesota ANTHONY G. BROWN, Maryland
TIM BURCHETT, Tennessee TOM MALINOWSKI, New Jersey
DUSTY JOHNSON, South Dakota GREG STANTON, Arizona
JEFFERSON VAN DREW, New Jersey COLIN Z. ALLRED, Texas
MICHAEL GUEST, Mississippi SHARICE DAVIDS, Kansas, Vice Chair
TROY E. NEHLS, Texas JESUS G. ``CHUY'' GARCIA, Illinois
NANCY MACE, South Carolina ANTONIO DELGADO, New York
NICOLE MALLIOTAKIS, New York CHRIS PAPPAS, New Hampshire
BETH VAN DUYNE, Texas CONOR LAMB, Pennsylvania
CARLOS A. GIMENEZ, Florida SETH MOULTON, Massachusetts
MICHELLE STEEL, California JAKE AUCHINCLOSS, Massachusetts
Vacancy CAROLYN BOURDEAUX, Georgia
KAIALI`I KAHELE, Hawaii
MARILYN STRICKLAND, Washington
NIKEMA WILLIAMS, Georgia
MARIE NEWMAN, Illinois
TROY A. CARTER, Louisiana

Subcommittee on Highways and Transit

ELEANOR HOLMES NORTON, District of
Columbia, Chair
RODNEY DAVIS, Illinois EDDIE BERNICE JOHNSON, Texas
ERIC A. ``RICK'' CRAWFORD, Arkansas ALBIO SIRES, New Jersey
BOB GIBBS, Ohio JOHN GARAMENDI, California
THOMAS MASSIE, Kentucky HENRY C. ``HANK'' JOHNSON, Jr.,
SCOTT PERRY, Pennsylvania Georgia
JOHN KATKO, New York SEAN PATRICK MALONEY, New York
BRIAN BABIN, Texas JULIA BROWNLEY, California
DAVID ROUZER, North Carolina FREDERICA S. WILSON, Florida
MIKE BOST, Illinois ALAN S. LOWENTHAL, California
DOUG LaMALFA, California MARK DeSAULNIER, California
BRUCE WESTERMAN, Arkansas STEPHEN F. LYNCH, Massachusetts
MIKE GALLAGHER, Wisconsin ANTHONY G. BROWN, Maryland
BRIAN K. FITZPATRICK, Pennsylvania GREG STANTON, Arizona, Vice Chair
JENNIFFER GONZALEZ-COLON, COLIN Z. ALLRED, Texas
Puerto Rico JESUS G. ``CHUY'' GARCIA, Illinois
TROY BALDERSON, Ohio ANTONIO DELGADO, New York
PETE STAUBER, Minnesota CHRIS PAPPAS, New Hampshire
TIM BURCHETT, Tennessee CONOR LAMB, Pennsylvania
DUSTY JOHNSON, South Dakota JAKE AUCHINCLOSS, Massachusetts
MICHAEL GUEST, Mississippi CAROLYN BOURDEAUX, Georgia
TROY E. NEHLS, Texas MARILYN STRICKLAND, Washington
NANCY MACE, South Carolina GRACE F. NAPOLITANO, California
NICOLE MALLIOTAKIS, New York JARED HUFFMAN, California
BETH VAN DUYNE, Texas SALUD O. CARBAJAL, California
CARLOS A. GIMENEZ, Florida SHARICE DAVIDS, Kansas
MICHELLE STEEL, California SETH MOULTON, Massachusetts
Vacancy KAIALI`I KAHELE, Hawaii
SAM GRAVES, Missouri (Ex Officio) NIKEMA WILLIAMS, Georgia
MARIE NEWMAN, Illinois
STEVE COHEN, Tennessee
PETER A. DeFAZIO, Oregon (Ex
Officio)

CONTENTS

Page

Summary of Subject Matter........................................ vii

STATEMENTS OF MEMBERS OF THE COMMITTEE

Hon. Eleanor Holmes Norton, a Delegate in Congress from the
District of Columbia, and Chair, Subcommittee on Highways and
Transit, opening statement..................................... 1
Prepared statement........................................... 2
Hon. Rodney Davis, a Representative in Congress from the State of
Illinois, and Ranking Member, Subcommittee on Highways and
Transit, opening statement..................................... 3
Prepared statement........................................... 4
Hon. Peter A. DeFazio, a Representative in Congress from the
State of Oregon, and Chair, Committee on Transportation and
Infrastructure, opening statement.............................. 5
Prepared statement........................................... 7
Hon. Sam Graves, a Representative in Congress from the State of
Missouri, and Ranking Member, Committee on Transportation and
Infrastructure, prepared statement............................. 67

WITNESSES

Shoshana M. Lew, Executive Director, Colorado Department of
Transportation, oral statement................................. 8
Prepared statement........................................... 10
Tunya Smith, Director, Office of Civil Rights, North Carolina
Department of Transportation, oral statement................... 14
Prepared statement........................................... 15
Brent Booker, Secretary-Treasurer, North America's Building
Trades Unions, oral statement.................................. 20
Prepared statement........................................... 22
Kari J. Karst, President and Chief Executive Officer, BX Civil &
Construction, on behalf of the Associated General Contractors
of America, oral statement..................................... 24
Prepared statement........................................... 26
Kelly Kupcak, Executive Director, Oregon Tradeswomen, on behalf
of the National Taskforce on Tradeswomen's Issues, oral
statement...................................................... 31
Prepared statement........................................... 32
April Rai, President and Chief Executive Officer, Conference of
Minority Transportation Officials, oral statement.............. 36
Prepared statement........................................... 38

SUBMISSIONS FOR THE RECORD

Submissions for the Record by Hon. Brian Babin:
Letter of April 6, 2022, to President Biden and Vice
President Harris from Associated Builders and Contractors
et al...................................................... 52
Letter of February 15, 2022, to President Biden from American
Fire Sprinkler Association et al........................... 53
Letter of April 26, 2022, to Hon. Eleanor Holmes Norton and
Hon. Rodney Davis from Kristen Swearingen, Vice President,
Legislative and Political Affairs, Associated Builders and
Contractors................................................ 69
Letter of April 26, 2022, to President Biden from 16
Governors.................................................. 71
Statement of the American Association of State Highway and
Transportation Officials, Submitted for the Record by Hon.
Eleanor Holmes Norton.......................................... 67

APPENDIX

Questions from Hon. Eddie Bernice Johnson to Shoshana M. Lew,
Executive Director, Colorado Department of Transportation...... 73
Questions to Tunya Smith, Director, Office of Civil Rights, North
Carolina Department of Transportation, from:
Hon. Eleanor Holmes Norton................................... 73
Hon. Henry C. ``Hank'' Johnson, Jr........................... 77
Hon. Eddie Bernice Johnson................................... 79
Attachment from North Carolina Department of Transportation 81
Questions to Brent Booker, Secretary-Treasurer, North America's
Building Trades Unions, from:
Hon. Peter A. DeFazio........................................ 93
Hon. Henry C. ``Hank'' Johnson, Jr........................... 94
Hon. Eddie Bernice Johnson................................... 94
Hon. Mark DeSaulnier......................................... 95
Hon. Jake Auchincloss........................................ 96
Questions to Kari J. Karst, President and Chief Executive
Officer, BX Civil & Construction, on behalf of the Associated
General Contractors of America, from:
Hon. Peter A. DeFazio........................................ 96
Hon. Henry C. ``Hank'' Johnson, Jr........................... 97
Hon. Eddie Bernice Johnson................................... 98
Questions to Kelly Kupcak, Executive Director, Oregon
Tradeswomen, on behalf of the National Taskforce on
Tradeswomen's Issues, from:
Hon. Peter A. DeFazio........................................ 98
Hon. Henry C. ``Hank'' Johnson, Jr........................... 100
Hon. Eddie Bernice Johnson................................... 102
Questions to April Rai, President and Chief Executive Officer,
Conference of Minority Transportation Officials, from:
Hon. Eddie Bernice Johnson................................... 104
Hon. Jake Auchincloss........................................ 106

[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

April 22, 2022

SUMMARY OF SUBJECT MATTER

TO: Members, Subcommittee on Highways and Transit
FROM: Staff, Subcommittee on Highways and Transit
RE: Subcommittee Hearing on ``Examining Workforce
Development and Job Creation in Surface Transportation
Construction''

PURPOSE

The Subcommittee on Highways and Transit will meet on
Wednesday, April 27, 2022, at 2:00 p.m. in 2167 Rayburn House
Office Building and virtually via Zoom to receive testimony
related to the hearing titled ``Examining Workforce Development
and Job Creation in Surface Transportation Construction.'' The
purpose of this hearing is for Members of the subcommittee to
learn about the current state of the surface transportation
construction workforce, how recent investments in American
infrastructure will increase the need for a skilled
construction workforce, and how current programs and
initiatives can provide pathways into the construction sector.
The subcommittee will hear from representatives of the Colorado
Department of Transportation, the North Carolina Department of
Transportation, North America's Building Trades Unions, the
Associated General Contractors of America, the National
Taskforce on Tradeswomen's Issues, and the Conference of
Minority Transportation Officials.

BACKGROUND

Last year, Congress enacted H.R. 3684, the Infrastructure
Investment and Jobs Act (IIJA, P.L. 117-58), which provides
historic levels of investment in modernizing our nation's
roads, bridges, transit, and other transportation
infrastructure. The IIJA authorizes more than $660 billion for
the U.S. Department of Transportation (DOT) to invest in our
nation's infrastructure over the next five years.\1\ Carrying
out projects with this investment is anticipated to require
thousands of new positions for skilled craft workers in
construction.
---------------------------------------------------------------------------
\1\ https://www.transportation.gov/mission/budget/bipartisan-
infrastructure-law-dashboard.
---------------------------------------------------------------------------
Much of the funding provided by the IIJA is federal funding
assistance to state and local transportation agencies to invest
in state and local transportation projects, subject to federal
requirements.\2\ The recipient of funds is responsible for
administering the project and the funding, ensuring compliance
with all applicable federal requirements, and overseeing the
project to completion.\3\ The contracting agency solicits bids
and awards the construction contract, pays contractors for
their work, and then seeks reimbursement from DOT for approved
project costs.\4\ A surface transportation construction project
funded and administered in this manner will be referred to as a
``federally-assisted construction project.''
---------------------------------------------------------------------------
\2\ See id. For a description of the federally assisted, state
administered Federal-aid Highway Program, see 23 U.S.C. 145 and Funding
Federal Aid Highways, FHWA, https://www.fhwa.dot.gov/policy/olsp/
fundingfederalaid/.
\3\ Funding Federal Aid Highways, FHWA, https://www.fhwa.dot.gov/
policy/olsp/fundingfederalaid/.
\4\ Id.
---------------------------------------------------------------------------
Federally-assisted construction projects are subject to
certain federal requirements under titles 23 and 49, United
States Code (U.S.C.). Examples of such requirements include
statewide and metropolitan planning, environmental reviews,
payment of prevailing wages, compliance with federal or state
construction design standards, and competitive bidding.
Pursuant to 23 U.S.C. 113 and 49 U.S.C. 5333, laborers and
mechanics employed for construction work on federally-assisted
construction projects are to be paid wages at rates not less
than those prevailing wages as determined by the Secretary of
Labor under the Davis-Bacon Act. The 1931 Davis-Bacon Act
(Davis-Bacon Act, P.L. 71-798) requires payment of prevailing
wage rates to all laborers and mechanics on federal or
federally-assisted construction projects. Overall program
responsibilities are administered by the U.S. Department of
Labor.\5\ Project specific responsibilities are administered by
the contracting agency for the project.\6\
---------------------------------------------------------------------------
\5\ https://www.fhwa.dot.gov/construction/cqit/dbacon.cfm
\6\ Id.
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SURFACE TRANSPORTATION CONSTRUCTION WORKFORCE

WORKFORCE ENTRY

The surface transportation construction workforce
encompasses various skilled positions such as heavy equipment
operators, flaggers, and pavers. Workers can learn their trade
through on-the-job training by performing tasks under the
guidance of experienced workers or by participating in an
apprenticeship program which combines on-the-job training with
classroom learning.\7\ The length of training provided depends
on the training pathway and the specialization.\8\ Through
additional experience and training, construction workers can
advance into high-paying, skilled positions that involve more
complex tasks.\9\
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\7\ https://www.bls.gov/ooh/construction-and-extraction/
construction-laborers-and-helpers.htm#tab-4
\8\ Id.
\9\ Id.
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DEMOGRAPHICS

According to the U.S. Bureau of Labor Statistics (BLS)
Current Population Survey, there were approximately 11.3
million workers employed in the construction industry in
2021.\10\ Of that total, 87.9 percent identified as white, 32.6
percent identified as Hispanic or Latino, 6.3 percent
identified as Black, and 2.1 identified as Asian.\11\
Additionally, while women make up 47 percent of the total
workforce in the U.S., they account for only 11 percent of the
construction workforce.\12\ According to BLS data, from 2011 to
2021 the percentage of women working in construction increased
by 1.8 percent.\13\
---------------------------------------------------------------------------
\10\ https://www.bls.gov/cps/cpsaat18.htm.
\11\ Id.
\12\ Id.
\13\ See https://www.bls.gov/cps/aa2011/cpsaat18.pdf; https://
www.bls.gov/cps/cpsaat18.htm.
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WORKFORCE DEVELOPMENT PROGRAMS AT DOT

ON-THE-JOB TRAINING AND SUPPORTIVE SERVICES PROGRAM

Federal efforts to address historically underrepresented
groups in surface transportation construction began following
the enactment of the Federal Aid Highway Act of 1968 (P.L. 90-
495), which required State Departments of Transportation (State
DOTs) to ensure equal employment opportunities on federally-
assisted construction projects as a condition of receiving
federal funds. Federal regulations require State DOTs to
establish apprenticeship and training programs targeted at
moving women, minorities, and disadvantaged persons into
journey-level positions on federally-assisted construction
contracts.\14\ Under the Federal Aid Highway Act of 1970 (P.L.
91-605), Congress authorized the Secretary of Transportation
(Secretary) to establish the On-the-Job Training and Supportive
Services (OJT/SS) program, which supports state training
programs aimed at increasing participation of historically
underrepresented individuals in the construction workforce. The
OJT/SS program is administered by the Federal Highway
Administration (FHWA).\15\
---------------------------------------------------------------------------
\14\ 23 CFR 230.111.
\15\ 23 CFR 230.113.
---------------------------------------------------------------------------
The objective of the OJT/SS program is to increase the
overall effectiveness of state training programs and to support
further efforts to increase the participation of women,
minorities, and disadvantaged individuals in the skilled and
semi-skilled construction crafts.\16\ Each year, FHWA requests
a Statement of Work from participating State DOTs that
demonstrates the state's construction workforce needs and how
their proposed program will help provide a career path to
journey-level status for underrepresented groups. Examples of
program activities include recruitment, skills training, job
placement, childcare, career counseling, transportation to
work-sites, post-graduation follow-up, and jobsite mentoring,
among others.\17\ FHWA and State DOTs work together to
determine the state's annual training goals, including the
total number of training slots or hours, and which
transportation projects will include such requirements. State
DOTs are also required to submit regular progress reports to
FHWA.\18\
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\16\ https://www.fhwa.dot.gov/civilrights/programs/ojt.cfm.
\17\ Id.
\18\ 86 Fed. Reg. 8827.
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Funding for the OJT/SS program is authorized by section
140(b) of title 23, United States Code, as a set-aside of
FHWA's administrative budget. The program was initially
authorized at up to $5,000,000 per year for fiscal year (FY)
1972 and FY 1973 and was increased to up to $10,000,000 per
year starting in FY 1974.\19\ Since then, authorized funding
has remained stagnant at no more than $10,000,000 annually.\20\
Section 140(b) also authorizes states to develop and administer
summer transportation institutes aimed at increasing
transportation career awareness among secondary-school
students. Of the $10,000,000 authorization, approximately
$6,000,000 is allocated to states via formula for the OJT/SS
programs, while the remainder supports summer transportation
institutes and internship programs at DOT.\21\
---------------------------------------------------------------------------
\19\ P.L. 93-87.
\20\ 23 U.S.C. 140(b).
\21\ This information was provided to Committee Majority staff by
FHWA on March 16, 2022, via email.
---------------------------------------------------------------------------
To build on the success of the OJT/SS program, FHWA
recently developed the Highway Construction Workforce
Partnership (HCWP) guide aimed at bringing together industry
and workforce representatives to identify, recruit, train, and
place workers into highway construction jobs. To date, FHWA has
awarded $4 million in grants to 11 recipients to establish and
expand HCWP programs.\22\ For more information about HWCP,
please visit FHWA's HWCP website.\23\
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\22\ This information was provided to Committee Majority staff by
FHWA on March 18, 2022, verbally.
\23\ https://www.fhwa.dot.gov/innovativeprograms/centers/
workforce_dev/hcwp/.
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SECTION 504(E)--SURFACE TRANSPORTATION WORKFORCE DEVELOPMENT,
EDUCATION, AND TRAINING

Section 504(e) of title 23, United States Code, authorizes
States to use a portion of their core Federal-aid Highway
Program formula funds from the National Highway Performance
Program (NHPP), the Surface Transportation Block Grant Program
(STBG), the Highway Safety Improvement Program (HSIP), and the
Congestion Mitigation and Air Quality Improvement (CMAQ)
Program to support transportation workforce development,
training, and education activities.
Examples of common activities carried out under 504(e)
include training programs, academic course study, and support
for short-term work details or ``rotational'' assignments for
employee development.\24\ States may also use these funds for
employee training and professional development necessary to
support a specific surface transportation capital project, such
as a major roadway or bridge construction project.\25\ These
funds may not be used to pay any portion of employee
salaries.\26\
---------------------------------------------------------------------------
\24\ https://www.fhwa.dot.gov/innovativeprograms/centers/
workforce_dev/504e_state_core_
programs_guidance_0318.aspx.
\25\ Id.
\26\ Id.
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Section 13007 of the IIJA expanded the list of eligible
activities under 504(e) to include pre-apprenticeships,
apprenticeships, career opportunities for on-the-job training,
and activities that address current workforce gaps, such as
work on construction projects of state and local transportation
agencies. It also allows activities associated with workforce
training and employment services, such as targeted outreach and
partnerships with industry representatives, economic
development organizations, workforce development boards, and
labor organizations.

SECTION 504(F)--TRANSPORTATION EDUCATION AND TRAINING DEVELOPMENT AND
DEPLOYMENT PROGRAM

Section 504(f) of title 23, United States Code, as amended
by section 13007 of the IIJA, authorizes the Secretary to
establish a program to make grants to education institutions or
State DOTs to develop and implement new curricula and education
programs to train individuals at all levels of the
transportation workforce, including in the construction sector.

CONTRACTING INITIATIVES

LOCAL HIRE

Prior to enactment of the IIJA, DOT grant recipients were
generally prohibited from utilizing geographic, economic, or
other hiring preferences--commonly referred to as ``local
hire''--on federally-assisted construction projects due to
concerns about the adverse impact on competitive bidding.\27\
In 2013, DOT received an opinion from the Department of
Justice's Office of Legal Counsel clarifying that the Secretary
has the discretion to permit grant recipients to utilize local
hire requirements as long as they did not unduly limit
competition.\28\ In 2015, DOT launched a pilot program to allow
FHWA and Federal Transit Administration (FTA) grantees to
utilize local hire contracting requirements on an experimental
basis.\29\ On January 18, 2017, the pilot program was extended
for a period of five years ending on March 6, 2022,\30\ but the
extension was subsequently withdrawn later that year.\31\ In
May 2021, DOT re-launched local hire pilot programs for both
FHWA and FTA grant recipients.\32\
---------------------------------------------------------------------------
\27\ 87 Fed. Reg. 8081.
\28\ 80 Fed. Reg. 12257.
\29\ Id.
\30\ 82 Fed. Reg. 5645.
\31\ 82 Fed. Reg. 46716.
\32\ See 86 Fed. Reg. 27667; 86 Fed. Reg. 27672.
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Additionally, beginning in 2016 and each year thereafter,
the annual appropriations bill funding transportation programs
has included a provision authorizing the Secretary to permit
grant recipients the ability to utilize local hire requirements
on federally-assisted construction projects, subject to certain
mandatory certifications.\33\
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\33\ PL 114-113, Sec. 192.
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Section 25019 of the IIJA provided permanent statutory
authority for recipients or subrecipients of a DOT grant
provided under title 23 or title 49, United States Code, to
implement a local or other geographical or economic hiring
preference relating to the use of labor for construction of a
project funded by the grant. Based on this statutory
authorization, both FHWA and FTA announced the rescission of
their pilot programs stating they were no longer needed.\34\
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\34\ See 87 Fed. Reg. 8081; 87 Fed. Reg. 7897.
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WITNESS LIST

Ms. Shoshana Lew, Executive Director, Colorado
Department of Transportation
Ms. Tunya Smith, Director of the Office of Civil
Rights, North Carolina Department of Transportation
Mr. Brent Booker, Secretary-Treasurer, North
America's Building Trades Unions
Ms. Kari J. Karst, President, BX Civil &
Construction, on behalf of the Associated General Contractors
of America
Ms. Kelly Kupcak, Executive Director, Oregon
Tradeswomen, on behalf of the National Taskforce on
Tradeswomen's Issues
Ms. April Rai, President and Chief Executive
Officer, The Conference of Minority Transportation Officials

EXAMINING WORKFORCE DEVELOPMENT AND JOB CREATION IN SURFACE
TRANSPORTATION CONSTRUCTION

----------

WEDNESDAY, APRIL 27, 2022

House of Representatives,
Subcommittee on Highways and Transit,
Committee on Transportation and Infrastructure,
Washington, DC.
The subcommittee met, pursuant to notice, at 2:02 p.m. in
room 2167 Rayburn House Office Building and via Zoom, Hon.
Eleanor Holmes Norton (Chair of the subcommittee) presiding.
Members present in person: Ms. Norton, Mr. DeFazio, Mr.
Lynch, Ms. Williams of Georgia, Mr. Rodney Davis of Illinois,
Mr. Crawford, Mr. Massie, Mr. Perry, Dr. Babin, Mr. LaMalfa,
Mr. Stauber, and Mr. Johnson of South Dakota.
Members present remotely: Ms. Johnson of Texas, Ms.
Brownley, Mr. DeSaulnier, Mr. Stanton, Mr. Garcia of Illinois,
Mr. Delgado, Ms. Bourdeaux, Ms. Strickland, Mrs. Napolitano,
Mr. Huffman, Mr. Carbajal, Mr. Fitzpatrick, and Mrs. Steel.
Ms. Norton. The subcommittee will come to order.
I ask unanimous consent that the chair be authorized to
declare a recess at any time during today's hearing.
Without objection, so ordered.
I also ask unanimous consent that Members not on the
subcommittee be permitted to sit with the subcommittee at
today's hearing and ask questions.
Without objection, so ordered.
As a reminder, please keep your microphone muted unless
speaking. Should I hear any inadvertent background noise, I
will request that the Member please mute their microphone.
To insert a document into the record, please have your
staff email it to DocumentsT&I@mail.house.gov.
Welcome to today's hearing on examining workforce
development and job creation in surface transportation
construction.
I want to thank the panel for being with us today and for
your flexibility as we rescheduled this hearing from its
original date so that Members could attend the memorial service
for our long-time committee colleague, and my friend, Don
Young.
Don devoted his life to serving his fellow Alaskans,
serving 49 years in the House, including several as chair of
this committee. His passion and breadth of experience will be
greatly missed by all of us here on this committee.
The Infrastructure Investment and Jobs Act, which was
enacted last year, authorized more than $660 billion for the
Nation's roads, bridges, transit, railroads, airports, ports,
and other transportation infrastructure. A historic investment
of this size will require a diverse, qualified construction
workforce to ensure these projects are carried out on time and
will be built to last.
The construction trades offer fulfilling and high-paying
careers, supporting thousands of workers and their families.
Yet too often, barriers such as transportation costs and lack
of access to training and other support hinder the ability of
women, minorities, and disadvantaged individuals to access jobs
in the construction sector. According to the latest industry
data from the Bureau of Labor Statistics, women account for
just 11 percent of the construction workforce, and African
Americans account for only 6.3 percent.
As we will hear today, a key effort in breaking down these
barriers has been through the U.S. Department of
Transportation's On-the-Job Training and Supportive Services
Program. This program supports State training programs that
offer recruitment skills, training, job placement, career
counseling, and other services to help women, people of color,
and others obtain quality careers in the construction industry.
I am especially interested in hearing from Ms. Tunya Smith,
director of North Carolina Department of Transportation's
Office of Civil Rights, about her department's experience
working with the OJT/SS program and what outcomes they have
been able to achieve.
In addition to increasing workforce diversity, we must also
ensure that Federal dollars for construction projects flow
straight through to the community. Last May, I was proud to
stand with Secretary Buttigieg in front of DC's own Frederick
Douglass Memorial Bridge to announce the reinstatement of DOT's
local hiring initiative pilot program, now permitted by the
Infrastructure Investment and Jobs Act. Through local hire, we
can revitalize local communities and provide meaningful, good-
paying jobs in construction to individuals living in low-income
areas or areas with high unemployment.
These initiatives are a good start, but Congress must
continue to be vigilant to ensure that the historic investments
in the Infrastructure Investment and Jobs Act support a diverse
workforce that is qualified to meet the demands of 21st-century
infrastructure.
Thank you to each of the witnesses for being here today. I
look forward to hearing how each of your organizations supports
these goals and how Congress can continue to support good jobs
in the surface transportation construction industry.
[Ms. Norton's prepared statement follows:]

Prepared Statement of Hon. Eleanor Holmes Norton, a Delegate in
Congress from the District of Columbia, and Chair, Subcommittee on
Highways and Transit
Welcome to today's hearing on examining workforce development and
job creation in surface transportation construction. I want to thank
the panel for being with us today and for your flexibility as we
rescheduled this hearing from its original date, so that Members could
attend the memorial service for our longtime committee colleague and my
friend Don Young. Don devoted his life to serving his fellow Alaskans,
serving 49 years in the House, including several as Chair of this
committee. His passion and breadth of experience will be greatly missed
by all of us here on the committee.
The Infrastructure Investment and Jobs Act, which was enacted last
year, authorized more than $660 billion for our nation's roads,
bridges, transit, railroads, airports, ports and other transportation
infrastructure. A historic investment of this size will require a
diverse, qualified construction workforce to ensure these projects are
carried out on time and will be built to last.
The construction trades offer fulfilling and high-paying careers,
supporting thousands of workers and their families. Yet too often
barriers, such as transportation costs, childcare, or lack of access to
training and other support, hinder the ability of women, minorities and
disadvantaged individuals to access jobs in the construction sector.
According to the latest industry data from the Bureau of Labor
Statistics, women account for just 11 percent of the construction
workforce, and African Americans account for only 6.3 percent.
As we will hear today, a key effort in breaking down these barriers
has been through the U.S. Department of Transportation's On-the-Job
Training and Supportive Services program. This program supports state
training programs that offer recruitment, skills training, job
placement, career counseling and other services to help women, people
of color, and others obtain quality careers in the construction
industry. I am especially interested in hearing from Ms. Tunya Smith,
Director of the North Carolina Department of Transportation's Office of
Civil Rights, about her department's experience working with the OJT-SS
program and what outcomes they have been able to achieve.
In addition to increasing workforce diversity, we must also ensure
that federal dollars for infrastructure projects flow through to the
community. Last May, I was proud to stand with Secretary Buttigieg in
front of D.C.'s own Frederick Douglass Memorial Bridge to announce the
reinstatement of DOT's local hiring initiative pilot program, now
permitted by the Infrastructure Investment and Jobs Act. Through local
hire, we can revitalize local communities and provide meaningful, good-
paying jobs in construction to individuals living in low-income areas
or areas with high unemployment.
These initiatives are a good start. But Congress must continue to
be vigilant to ensure that the historic investments in the
Infrastructure Investment and Jobs Act support a diverse workforce that
is qualified to meet the demands of building 21st-century
infrastructure.
Thank you to each of our witnesses for being here today. I look
forward to hearing how each of your organizations supports these goals,
and how Congress can continue to support good jobs in the surface
transportation construction.

Ms. Norton. I now call on my good friend, the ranking
member of the subcommittee, Mr. Davis, for an opening
statement.
Mr. Rodney Davis of Illinois. Thank you, Madam Chair. I
appreciate the opportunity to be here. I want to welcome all of
our witnesses.
And Ms. Smith, I hear that we may--all of us up here may
have a mutual friend in your father.
Ms. Smith. Yes.
Mr. Rodney Davis of Illinois. Is that the case?
Ms. Smith. Yes.
Mr. Rodney Davis of Illinois. Yes? OK. Oh, you are online?
I do want to say, and I do want to recognize you as
somebody who has got a chance to grow up and see a lot more of
our friend G.K. Butterfield than the rest of us have. And I
would love some good stories, so I can harass him a little bit.
He shares an office right by mine. And G.K. is somebody that I
have gotten to know on the House Administration Committee, and
just being able to serve with him has been a friendship that I
cherish. And I want you to know how proud we are of him. And we
are proud of you for being here, too. We are going to miss him
in this House. He is true. He is a true statesman. And please
take care of him when we can't anymore, when he leaves.
But I do want to say I am glad we are talking about
workforce issues. I am glad we are talking to our witnesses
about recently approved transportation funding.
When it begins to go out, I am expecting there to be a need
for more skilled craftspeople. While many challenges exist for
constructing our Nation's core infrastructure, ensuring a
readily available, skilled-craft workforce is our initial
challenge. But it is not the only challenge that we face.
And it is important to remember the context of this hearing
and what we are discussing today. Earlier this month, we once
again saw sky-high inflation numbers, 8.5 percent. Inflation in
March was the highest level in 40 years. The Biden
administration's response to the COVID-19 pandemic has
exacerbated the Nation's supply chain crisis. Paying people to
stay home has only made it harder to find skilled, trained
workers. Add that to the soaring gas and diesel prices and
construction costs having the largest year-over-year spike
since 1970, and a project simply costs more today than it did 5
months ago.
So, as this infrastructure money gets awarded, it is very
important that this administration provides recipients with the
flexibility needed to ensure that they can be built in the most
cost-effective way. One cost-effective way is to fully
implement One Federal Decision.
Since its enactment, this administration has dragged its
feet in implementing this industry-changing legislation. For
too long, worthy infrastructure projects have been needlessly
delayed by our permitting system. Time is money, and in a world
of skyrocketing inflation, further delay in implementing this
law limits the total number of jobs, infrastructure jobs, that
the infrastructure money creates.
As the Federal Government begins to allocate funds for
infrastructure projects, we must ensure our workforce is
available and ready from the start, so that the dollars can
stretch further. Building trades and contractors are essential
to our Nation's economic growth, and I have long supported
policies to support the construction workforce.
I look forward to hearing from all of our witnesses about
some of the challenges that exist in matching our workforce to
our critical infrastructure needs.
[Mr. Davis' prepared statement follows:]

Prepared Statement of Hon. Rodney Davis, a Representative in Congress
from the State of Illinois, and Ranking Member, Subcommittee on
Highways and Transit
Thank you, Chair Norton. I want to welcome everyone to today's
hearing about the workforce challenges faced by those who build our
nation's roads and bridges. I want to thank our witnesses for being
here today, and I appreciate the Committee's flexibility to allow for
this hybrid hearing.
As recently-approved transportation funding begins to go out, I am
expecting there to be a need for more skilled craftspeople. While many
challenges exist for constructing our nation's core infrastructure,
ensuring a readily available, skilled craft workforce is an initial
challenge. But it's not the only challenge, and it's important to
remember the context of this hearing and what we are discussing today.
Earlier this month, we once again saw sky-high inflation numbers--
8.5 percent. Inflation in March was the highest level in 40 years. The
Biden Administration's response to the COVID-19 pandemic has
exacerbated the nation's supply chain crisis. Paying people to stay
home has only made it harder to find skilled, trained workers. Add that
to soaring gas and diesel prices and construction costs having the
largest year-over-year spike since 1970, and a project simply costs
more today than it did five months ago.
So as this infrastructure money gets awarded, it's important that
this Administration provides recipients with the flexibility needed to
ensure that they can be built in the most cost-effective way.
One cost-effective way is to fully implement One Federal Decision.
Since its enactment, this Administration has dragged its feet in
implementing this industry changing legislation. For too long, worthy
infrastructure projects have been needlessly delayed by our permitting
system. Time is money, and in a world of skyrocketing inflation,
further delay in implementing this law limits the total number of jobs
infrastructure money creates.
As the federal government begins to allocate funds for
infrastructure projects, we must ensure our workforce is available and
ready from the start so that dollars can stretch further. Building
trades and contractors are essential to our nation's economic growth,
and I've long supported policies to support the construction workforce.
I look forward to hearing from our witnesses about some of the
challenges that exist in matching our workforce to our critical
infrastructure needs.

Mr. Rodney Davis of Illinois. And again, Madam Chair and
all our witnesses, thanks for being here today.
And please, Ms. Smith, I look forward to hearing the
stories about your dad that we can use before he leaves at the
end of this year.
Thank you, and I yield back.
Ms. Norton. Thank you very much, Ranking Member Davis. I
now recognize the chair of the full committee, Mr. DeFazio.
Mr. DeFazio. Thank you, Madam Chair. Thanks again for this
hearing. Thanks to the witnesses for being here today,
physically and virtually.
We have tremendous opportunities with the bipartisan
infrastructure bill, or the IIJA, or whatever you want to label
it. You know, $400 billion for highway and major projects,
bridges, $107 billion for transit, and $102 billion for rail.
As was noted, this will require tremendous investment in a
workforce, a new workforce, and reaching communities that
haven't been reached before for all these new positions in the
construction trades.
A lot of young people aren't aware of the tremendous
opportunities that are out there, and we have got to reach out
to them and recruit them into this. It is not people with picks
and shovels anymore. Much construction work is very
sophisticated, computer-driven equipment, et cetera.
We also need to continue to protect Davis-Bacon prevailing
wage. We want people to get a fair wage for their work, and be
able to have a good, middle-class lifestyle, which is becoming
more and more difficult in this Nation. So, that is really key.
I am pleased to welcome the executive director of Oregon
Tradeswomen, Kelly Kupcak, who is testifying on behalf of the
National Taskforce on Tradeswomen's Issues.
Oregon, my home State, has been on the forefront of
addressing historical underrepresentation of women, minorities,
and disadvantaged individuals in the construction trades. Just
recently, Metro, the metropolitan planning organization in
Portland, and its regional partners adopted the Construction
Career Pathways Regional Framework and signed the first-of-its-
kind Regional Workforce Equity Agreement. These coordinated
efforts will help ensure delivery of infrastructure projects in
Portland and provide career opportunities for women and
minorities. And I look forward to hearing how Congress can
better support these efforts and the administration as we move
forward.
And then local transportation agencies will now be able to
require that a percentage of the workforce hired to build
federally funded transportation projects comes from the local
community. This authority, commonly referred to as ``local
hire,'' was previously only authorized through DOT pilot
programs. It is now an established, permanent authority.
And I am eager to hear from Director Lew of the Colorado
Department of Transportation about their experience working
with developers, community colleges, AND local organizations to
set and meet local hiring goals on their Central 70 Project.
Colorado is just one place where this has been done, reaching
out into the surrounding communities, and I look forward with
the passage of this bill to others.
Just to comment on a couple of issues raised by the ranking
member, we are seeing astronomical gasoline prices. Guess what?
We are also seeing astronomical price gouging and profiteering
by the oil and gas industry. I would invite the gentleman and
others to join me on my windfall profits tax bill. The industry
is going to use $22 billion of, as they call it, excess
profits, excess extra profits, to buy back stock, enriching
only stockholders and boards of directors and CEOs and
executives, while the American people are paying the bill. And
oddly enough, that happens to be the amount of money we will
collect over the rest of the year from the Federal gas tax,
which some are proposing to suspend.
It used to be illegal to buy back your own stock until
Ronald Reagan. It is self-enrichment. And they can have record
profits on top of the record stock buybacks. Oh, and by the
way, they are going to pay record dividends. But oh, yes, that
is all the problem of Joe Biden. Joe Biden created this--the
oil cartels.
We held a hearing earlier today about shipping, and what is
going on there with price gouging, which is driving up the cost
of every good that comes to the United States--dramatically.
The three largest shipping companies in the world made more
money last year than over the last decade, and they are
justifying that with COVID, emergencies, and all this. A lot of
this is price gouging driven by the largest corporations in the
world, who are all enjoying record profits at the expense of
the American people.
And I would invite my Republican colleagues and other
Democrats to join me. At least let's take on the oil industry
with a windfall profits tax, and go after their price gouging.
That would provide tremendous relief to the American people.
[Mr. DeFazio's prepared statement follows:]

Prepared Statement of Hon. Peter A. DeFazio, a Representative in
Congress from the State of Oregon, and Chair, Committee on
Transportation and Infrastructure
Thank you, Madam Chair, for holding this important hearing to
examine workforce needs and opportunities in the surface transportation
construction sector. Thanks to the hard work of this committee,
Congress recently enacted the Infrastructure Investment and Jobs Act, a
five-year surface transportation reauthorization bill that provides
historic levels of funding--$660 billion over five years--to rebuild
and modernize our nation's transportation infrastructure. This includes
over $400 billion in highway and major projects funding, $107 billion
in transit funding, and $102 billion for rail.
This significant investment will generate demand for thousands of
new positions in the construction trades. As development of
transportation projects gets underway, we need to make sure there's a
qualified workforce available to meet construction hiring needs.
The construction sector has long provided high-paying careers to
individuals looking for an alternative to a traditional four-year
college degree.
Worker protections, such as Davis-Bacon prevailing wage
requirements, have been and continue to be critical to prevent wage
degradation and ensure laborers are paid fair market value for their
work. But the structure needed to ensure workers can succeed in the
industry goes beyond baseline protections--it's essential that new
workers entering the industry have access to and receive adequate
training and support to gain the experience and skills necessary to
move into journey-level positions. And it's essential that these
opportunities are available equitably to all who want to enter the
industry.
I'm pleased to welcome the Executive Director of the Oregon
Tradeswomen, Kelly Kupcak, who is testifying on behalf of the National
Taskforce on Tradeswomen's Issues. My home state of Oregon has been on
the forefront of addressing the historical underrepresentation of
women, minorities, and disadvantaged individuals in the construction
trades. Just recently METRO, the metropolitan planning organization in
Portland, and its regional partners adopted the Construction Career
Pathways Regional Framework and signed the first-of-its-kind Regional
Workforce Equity Agreement. These coordinated efforts will help ensure
delivery of infrastructure projects in the Portland metropolitan region
and provide career opportunities for women and minorities in
construction. I look forward to hearing how Congress can support these
and other efforts to increase diversity in the construction workforce
and ensure that employment opportunities are distributed equitably.
We also have work to do to ensure that workers in the communities
where projects are built reap the benefits. Thanks to the IIJA, state
and local transportation agencies are now able to require that a
percentage of the workforce hired to build federally-funded
transportation projects comes from the local community. This authority,
commonly referred to as ``local hire,'' was previously only authorized
through the U.S. Department of Transportation's pilot programs.
I'm eager to hear from Director Lew of the Colorado Department of
Transportation today about their experience working with developers,
community colleges, and local organizations to successfully set and
meet local hiring goals on their Central 70 project. Colorado is just
one example where projects have been successfully delivered while also
providing employment opportunities for the surrounding communities. I
look forward to hearing from the rest of our panelists about other ways
of leveraging federal investments to generate economic opportunities in
the communities where these infrastructure projects are being built.
I thank each of the witnesses assembled here today, and I look
forward to this important discussion.

Mr. DeFazio. With that I yield back the balance of my time.
Ms. Norton. Thank you, Chair DeFazio. I would now like to
welcome the witnesses on our panel: Ms. Shoshana Lew, executive
director, Colorado Department of Transportation; Ms. Tunya
Smith, director of the Office of Civil Rights, North Carolina
Department of Transportation; Mr. Brent Booker, secretary-
treasurer, North America's Building Trades Unions; Ms. Kari J.
Karst, president, BX Civil & Construction, on behalf of the
Associated General Contractors of America; Ms. Kelly Kupcak,
executive director, Oregon Tradeswomen, on behalf of the
National Taskforce on Tradeswomen's Issues; and Ms. April Rai,
president and chief executive officer, the Conference of
Minority Transportation Officials.
Thank you for being here today. I look forward to your
testimony.
Without objection, witnesses' full statements will be
included in the record.
Since your written statement has been made a part of the
record, the subcommittee requests that you limit your oral
testimony to 5 minutes.
Ms. Lew, you may proceed.

TESTIMONY OF SHOSHANA M. LEW, EXECUTIVE DIRECTOR, COLORADO
DEPARTMENT OF TRANSPORTATION; TUNYA SMITH, DIRECTOR, OFFICE OF
CIVIL RIGHTS, NORTH CAROLINA DEPARTMENT OF TRANSPORTATION;
BRENT BOOKER, SECRETARY-TREASURER, NORTH AMERICA'S BUILDING
TRADES UNIONS; KARI J. KARST, PRESIDENT AND CHIEF EXECUTIVE
OFFICER, BX CIVIL & CONSTRUCTION, ON BEHALF OF THE ASSOCIATED
GENERAL CONTRACTORS OF AMERICA; KELLY KUPCAK, EXECUTIVE
DIRECTOR, OREGON TRADESWOMEN, ON BEHALF OF THE NATIONAL
TASKFORCE ON TRADESWOMEN'S ISSUES; AND APRIL RAI, PRESIDENT AND
CHIEF EXECUTIVE OFFICER, CONFERENCE OF MINORITY TRANSPORTATION
OFFICIALS

Ms. Lew. Good afternoon and thank you, Madam Chair, members
of the subcommittee, and everyone in attendance today. My name
is Shoshana Lew, and I am the executive director of the
Colorado Department of Transportation. Thank you for inviting
me here to testify and discuss CDOT's successful workforce
development program as part of the Central 70 Project in
Denver.
The Central 70 Project that broke ground in 2018 is
Colorado's largest infrastructure project ever undertaken by
the State and comes in at a cost of about $1.2 billion.
When we first started studying the I-70 corridor through
the heart of Denver, it was essential that we understood the
demographics of the community that we would be working in, so
that we could meet their needs, and keep them informed, and
make sure that they were part of the project. The Globeville
and Elyria/Swansea communities, located adjacent to our most
impactful construction activities, are comprised of mostly
lower income families, many of whom identify as Hispanic. We
also learned that the unemployment rate was 10 times higher in
this area than in other parts of the metropolitan area.
While the project made dozens of commitments to meet the
various needs of environmental justice communities, one
solution we were able to come up with to address the issue of
unemployment specifically was our workforce development
program.
The economic benefits of the Central 70 Project are both
significant and long-lasting, and the project was anticipated
to require about 4,000 positions, from skilled-craft workers to
administrative support.
In February 2016, CDOT received approval from the Federal
Highway Administration to implement a local hiring preference
for the Central 70 Project. This approval was granted under a
1-year program called the SEP-14 Program for those familiar
with the Federal Highway Administration statutes. CDOT is one
of nine State transportation agencies across the U.S.
participating in this program, which allows requirements for
contractors to hire a certain percentage of workforce from
within specific geographic boundaries.
In the case of Central 70, CDOT focused hiring targets on
neighborhoods adjacent to the project corridor. As part of
CDOT's contract with the project developer, Kiewit Meridiam
Partners, known as KMP, during the estimated 4\1/2\-year
project, KMP is required to hire 20 percent of its employees
full-time from the local community. This program allowed us to
hire residents from 13 zip codes that are touched by the
project in one way or another.
CDOT is also participating in the U.S. Department of
Transportation's official On-the-Job Training Program, or OJT,
targeted to move women, minorities, and disadvantaged
individuals into journey-level positions to help meet highway
construction hiring needs, and address the historical
underrepresentation of these groups in highway construction
skilled crafts. CDOT's contract with KMP requires 200,000
training-hours to be provided to employees in the skilled
crafts.
In June of 2015, the Federal Highway Administration awarded
CDOT $400,000 from its Ladders of Opportunity Initiative OJT
pilot program to grant support to these efforts. These funds
have now been used to establish a collective impact workforce
program called Work Now.
As of February 1st, 2021, only 2\1/2\ years into
construction, the Central 70 Project exceeded its workforce
goal, and had 600 local workers contribute 760,000 hours to the
project. As of October 2020, the Central 70 Project's OJT goal
of 200,000 hours was surpassed.
The combined partnerships also met a goal to have at least
50 percent of local hires be new to the industry. And the
project exceeded that goal, with 75 percent of the hires being
new to construction.
Kiewit Meridiam Partners continues to be a strong advocate
for OJT and local workforce requirements on the project, as it
helps to build more skilled workers that can continue to
support and be a part of the construction industry. Indeed,
this is extremely helpful, as the construction industry writ
large is suffering from a lack of workers as many industries in
this discipline are. So, it has helped us not only on this
project, but to build out the field.
Overall, the Central 70 Project has been setting a
wonderful example for our transportation projects on what it
means to make sure all voices could be heard from, all
community members could be sitting at the table during
decisionmaking, and that the job opportunities that come from
major infrastructure investments can truly accrue to the
neighborhoods that face the biggest impacts from projects.
I thank you all for the opportunity to share the success of
our program. Based on everything we have learned and witnessed
through this program and this project, we are confident that
OJT and workforce development will continue to strengthen the
construction industry and help deliver more successful projects
in the future.
Thank you.
[Ms. Lew's prepared statement follows:]

Prepared Statement of Shoshana M. Lew, Executive Director, Colorado
Department of Transportation
Good morning, Chairwoman Holmes Norton, Ranking Member Davis,
Chairman DeFazio, Ranking Member Graves and to all the members on the
committee.
My name is Shoshana Lew, and I am the Executive Director of the
Colorado Department of Transportation.
Thank you for inviting me here to address the State of Colorado's
CDOT's Central 70 Workforce Development Program.
The interstate system, originally introduced by President
Eisenhower in 1956, was designed to provide a high-speed, high-capacity
network of highways without stoplights and with exits spread apart. As
much as the System has helped the United States economy boom and
allowed more opportunity for movement for all, many interstates across
the nation were built in the middle of lower-income and, oftentimes,
minority neighborhoods. The first segment of Interstate 70 in Denver,
built in 1961, was no exception as it was a 2.6-mile stretch that
followed the route of 46th Avenue between Jackson Street and the
junction of Interstate 25 and cut the Elyria and Swansea neighborhoods
in half and disrupted connections in the Globeville neighborhood. The
six-lane I-70 viaduct followed quickly thereafter and was completed in
1964, at a cost of $12.5 million, without public input and no
evaluations of the environmental, social and economic impacts that
would later be required by National Environmental Policy Act, which
passed in 1969.
From the late 1800s, immigrants have called the neighborhoods of
Globeville, Elyria and Swansea home. Globeville was originally settled
independently around the Globe Smelting and Refining Company,
eventually becoming part of Denver in 1902. Elyria and Swansea were
likewise founded and annexed separately. Over the years, the
neighborhood has evolved and seen Central and Eastern European settlers
move on, replaced by new residents with Latin American roots. Sitting
at the literal crossroads of Interstates 25 and 70, the nearly 100,000
residents of Globeville, Elyria and Swansea today face the evolving
impacts of massive nearby infrastructure projects in Denver, including
the Central 70 Project which focuses on reconstructing a 10-mile
stretch of I-70 through the heart of Denver. While these projects have
started to bring the attention, funding and infrastructure the
Globeville, Elyria and Swansea neighborhood has been lacking for years,
they also bring new and very real concerns about gentrification, rising
taxes and rent, and displaced residents.
The Elyria and Swansea neighborhoods have one of the largest
Hispanic populations in Denver. Nearly 84 percent of the residents in
Elyria and Swansea and 68 percent in Globeville identify as Hispanic.
These neighborhoods also experience unemployment rates that are ten
times higher than that of the rest of Denver. Many do not have adequate
transportation or childcare that is needed to get to work or go to
doctors appointments. As such, the Globeville, Elyria and Swansea
neighborhoods are classified as Environmental Justice communities.
When I-70 was built in the early 1960s, the bridge and drainage
structures were designed to last 30 years. In preparation for the
inevitable upgrades needed, the Colorado Department of Transportation
(CDOT) began planning for the Central 70 Project in 2003 with the I-70
East environmental process. By 2008, nine structures on the corridor
were classified as either structurally deficient or functionally
obsolete and in critical need of repair, rehabilitation or replacement.
That same year, CDOT completed the Environmental Impact Statement
between I-25 and Tower Road.
The Globeville, Elyria and Swansea community did not agree with the
preferred alternative CDOT originally presented for this stretch of
roadway and requested that CDOT continue to evaluate a variety of
solutions, keeping the community top of mind. In response, CDOT
conducted five additional years of neighborhood outreach during which
the community and CDOT came to an agreement to lower the highway
between Brighton and Colorado boulevards and add a cover park adjacent
to Swansea Elementary School.
This `preferred alternative' was presented in the supplemental
Environmental Impact Statement in 2014 and the final Environmental
Impact Statement in 2016. Ultimately, federal approval was given to the
Project in January 2017, and in August 2018, construction began on
CDOT's largest-ever infrastructure project. The $1.2 billion project
includes the total reconstruction of I-70 between I-25 and Chambers
Road, including adding one new Express Lane in each direction, removing
the 57-year-old viaduct, removing and replacing several structurally
deficient bridges and constructing a 4-acre cover park in the Elyria
and Swansea neighborhoods.
Simultaneous construction projects in the Globeville, Elyria and
Swansea neighborhoods have a cumulative effect on the community that
CDOT takes seriously. In conjunction with data and information received
from over 300 public meetings held prior to construction, CDOT made
nearly 150 community commitments to be completed over the Project's
lifespan.
These commitments include major renovations to and expansion of
Swansea Elementary School (located just 100-feet away from I-70),
contributions to local affordable housing efforts, and continuous air
monitoring for dust during construction. In addition, the Project
offered home improvements to nearly 300 homes within a one-block radius
of I-70, providing these residences with air conditioning units, attic
insulation, interior storm windows and better weatherization.
Taking into consideration the high unemployment rate in the
Globeville, Elyria and Swansea neighborhoods and the community stating
fears of being forced out of the neighborhood due to higher costs of
living, the Central 70 Project also set a goal of hiring 20 percent of
the workforce from the 13 zip codes adjacent to the Project.
The economic benefits of the Central 70 Project are both
significant and long lasting. The Project anticipated requiring an
estimated 4,000 positions--from skilled craft workers to administrative
support. In February 2016, CDOT received approval from the Federal
Highway Administration to implement a local labor hiring preference for
the Central 70 Project. This approval was granted under a one-year
program (Special Experimental Project No. 14--Local Labor Hiring Pilot
Program) created to encourage state transportation departments to pilot
local hiring provisions on projects receiving Federal funding.
CDOT is one of nine state transportation agencies across the United
States participating in this program that allows requirements for
contractors to hire a certain percentage of workforce from within
specific geographic boundaries. In the case of the Central 70 Project,
CDOT focused hiring targets on neighborhoods adjacent to the Project
corridor. As part of CDOT's contract with the Project Developer, Kiewit
Meridiam Partner, during the estimated four and a half-year Project,
Kiewit Meridiam Partners is required to hire 20 percent of its
employees, full-time, from the local community.
To support successful design, implementation and evaluation of
local hiring preferences for Central 70, CDOT solicited proposals in
2015 for a partner to help develop and implement the Central 70
Workforce Development Program. CDOT contracted with the Community
College of Denver's Center for Workforce Initiatives in 2016 to advise
the Department on an appropriate goal and to prioritize programmatic
recommendations. Community College of Denver was able to collect data
and insights through:
20 targeted neighborhood statistical profiles;
15 focus groups with 147 participants;
528 unique resident surveys;
69 stakeholder interviews; and
Four employer focus groups and/or interviews with
regional contractor organizations.

The insights shared by neighborhood residents, community
organizations, education and training partners, civic leaders, and
local employers supported the identification of goal recommendations
and program action strategies related to the outreach, training and
skills development, and supportive resources needed to help residents
attain and retain employment on Central 70. Some of the programmatic
recommendations identified in the study included:
Identify and recruit for positions that would attract a
broad candidate pool and provide transferable career pathways, such as
laborers, equipment operators, commercial drivers, on-the-job trainees,
administrative assistants, and accounting clerks.
Establish a sole workforce convener that would coordinate
community intake hubs, standardize assessment and referrals, and track
training and placement outcomes.
Align multiple training programs to create a pipeline
system capable of preparing a wide range of students, job seekers, and
workers, and ensuring existing or new training is included on the
Colorado's Eligible Training Provider List.
Continue partnering with experienced construction
workforce partners, trade associations, and the Colorado Building
Trades, to inform and educate community organizations, local residents,
and training partners on industry practice and expectations.
Commit to public and transparent reporting on the local
hiring program with periodic collaborative forums that engage all
stakeholders in identifying and resolving potential issuers.

A 2012 report issued by the National Skills Coalition cautioned
that federal investments that create jobs and federal investments that
prepare people for jobs are not always aligned. [1] This can lead to a
disconnection between economic development initiatives such as
infrastructure expansion and workforce development priorities that
build the skills and increase the earning potential of community
residents. Through thoughtful collaboration, the approved Local Labor
Hiring pilot helped CDOT and its partners bridge workforce and economic
community development efforts. The alignment of training and job
opportunities that help local residents in low-income neighborhoods to
access training, high-quality jobs with connected career pathways,
increases not only individual economic mobility but also the number of
skilled workers to fulfill future project needs.
CDOT is also participating in the USDOT's official on-the-job
training program targeted to move women, minorities, and disadvantaged
individuals into journey-level positions to help meet highway
construction hiring needs and address the historical
underrepresentation of these groups in highway construction skilled
crafts. CDOT's contract with Kiewit Meridiam Partners requires 200,000
training hours be provided to employees in the skilled crafts. In June
of 2015, Federal Highway Administration awarded CDOT $400,000 from its
Ladders of Opportunity Initiative On-the-Job Training/Supportive
Services Pilot Program grant to support these efforts. These funds have
been used to establish a collective impact workforce program, WORKNOW.
Through various outreach events and partnerships, CDOT and
Community College of Denver were able to catch the attention of a local
private foundation, Gary Community Investments. The foundation invested
$1.06 million into the Program, which provided assistance to mitigate
barriers to employment, such as affordability of personal protective
equipment, transportation and childcare.
To encourage the local community to attend on-the-job training
courses, CDOT opened a Neighborhood Training Center on CDOT's right of
way in a walkable area in the Elyria and Swansea neighborhoods.
Construction Careers Now, a 48-hour basic skills boot camp, started
offering courses at the Neighborhood Training Center. The first cohort
to graduate at this location were all from the local hire area,
indicating that the new location helped with retention among local
participants. A Community College of Denver Career Coach also began
holding regular office hours at the Neighborhood Training Center, which
coincided with the Construction Careers Now boot camp, providing
program participants with direct access to coaching services in the
late afternoon and evening. Kiewit Infrastructure Co., the Central 70
Project's prime contractor, also assisted in developing two additional
entry-level courses designed to connect more job seekers to highly
needed industry positions. Additional classes included English as a
second language and math skills.
Prior to the groundbreaking of the Central 70 Project in 2018,
Kiewit Meridiam Partners hired a Workforce Development Coordinator
whose responsibilities include coordinating workforce recruitment,
outreach, and hiring, as well as monitoring and reporting on Central 70
workforce efforts. Kiewit Meridiam Partners and WORKNOW have co-hosted
several Contractor Meet and Greet sessions at the Neighborhood Training
Center to support informal community connections with job seekers
interested in working on the Project. Sessions featured project
contractors, local unions and registered apprenticeship programs for
carpenters, laborers, operating engineers, and electricians.
Kiewit Infrastructure Co. is a signatory to the Union, so the
Project's workforce is pipelined via the Carpenters, Operators and
Laborers Union. One of Kiewit's main electrical subcontractors is also
a signatory to the Unions and works with the electrical Union for their
workforce. Kiewit Meridiam Partners continually cites its partnerships
with Unions as being one of the key factors to the success of the
Workforce Development Program. It was through Kiewit's close
partnership with the Unions that they were able to make residents aware
of open positions and the Workforce Development Program. Kiewit
Meridiam Partners also held a number of hiring fairs that included
coaching and personal protective equipment at the event itself as a way
to bring in more employees. These hiring fairs were held at the
Neighborhood Training Center or other convenient locations within the
local communities. In 2019, Kiewit Meridiam Partners began co-hosting
``Building an Inclusive Workforce Series'' with WORKNOW and developed a
``Women in Construction'' hands-on workshop in partnership with Kiewit
Meridiam Partners' signatory unions.
``Workforce Development is very important to Kiewit, as a
contractor,'' said Jason Proskovec, Kiewit's Central 70 project
director. ``We're a local contractor, we've been in Denver and in the
community for over 70 years and know that wherever we go it's important
to not only help train and develop our construction workforce [since]
it's widely known that it's an aging workforce and that we need to
develop people to help, not only on this Project, but when we take on
more work as well. We need to develop skilled craftsmen and women to
build projects such as this one.''
Day-long workshops were offered at the Carpenters and Operators
training facilities to provide exposure for women and people of color
to know which trades they would like to pursue as a career. Other
outreach tools such as live streaming on Facebook and YouTube were done
to help teach the local community about hiring opportunities from four
contractors and three unions. These videos were done through a
partnership between WORKNOW and Black Business Initiative and had
nearly 200 people tune in.
``To Kiewit Meridiam Partners the benefits are many, a stronger and
larger construction workforce base, a more economically sustainable
community, and strong partnerships for future projects,'' said Cathi
Buckley, Kiewit Meridiam Partners chief financial officer.
As of February 1, 2021, only two and a half years into
construction, the Central 70 Project exceeded its workforce goal and
had 600 local workers contribute 760,000 hours to the Project. As of
October 2020, the Central 70 Project's on-the-job training goal of
200,000 hours was surpassed. The combined partnerships also had a goal
to have at least 50 percent of the local hires be new to the industry
and the Project exceeded that goal with 75 percent of the hires being
new to construction.
``Even though we have met our on-the-job training goal of 200,000
hours in October 2020, it's still very important to us to continue that
momentum to help train these apprentices and make these apprentices be
more skilled workers to benefit not only them, but us in the future,''
said Proskovec. ``Being able to take that skill that they learned here
and take that to the next job and the next job, even if it isn't for
us, it's just more beneficial for the construction industry in
general.''
The Workforce Program has been a life changing experience for those
living adjacent to the Central 70 Project corridor. It has opened up
opportunities for advancement, a secure job and a higher paying salary
to help residents stay in the Globeville, Elyria and Swansea community.
Che Derrera, a Groundsman and Traffic Signal Technician Apprentice for
Sturgeon, which is a subcontractor to Kiewit on the Central 70 Project,
found a second chance through the WORKNOW program, funded by CDOT and
Federal Highway Administration. After enduring several tough years,
including serving eight years in prison, and not being able to land a
secure job, he found work on the Central 70 Project by attending one of
the Workforce Program's hiring fairs where he learned that he can
enhance his skills through trainings and have an opportunity to work on
a construction project in his community.
In a quote provided to WORKNOW for an article, Derrera stated ``I
enjoy improving the roadways and landscape along Central 70. This is a
positive change for future generations and I'm proud to contribute to
that. What I love most about working in construction is the
opportunity. There's so much I can learn that can open doors for me
anywhere, even within the same company.''
Governor Jared Polis was one of the first governors in the country
to endorse the bi-partisan infrastructure bill. In 2021 he said, ``This
important action means jobs and better roads along with a strong
initial package to improve air quality and make progress on climate
issues.'' There is significant potential in the Infrastructure
Investment and Jobs Act to build a strong transportation workforce and
programs like those implemented on CDOT's Central 70 project that can
help achieve that goal.
The state of Colorado is committed to building a skilled workforce
and continuing to grow a world class economy. Colorado consistently has
one of the strongest economies in the country and high employment
rates. In January of 2022, the state had one of the lowest unemployment
rates at 4.1%, which is the lowest it has been since the pandemic
began. Colorado's private sector has fully recovered jobs lost in early
2020. Colorado's job recovery rate is 103.1% which is significantly
higher than the national rate of 89.8%. Construction had the strongest
job gain of any sector adding around 2,000 jobs in January of 2022.
CDOT's Central 70 Workforce Development Program is an example of
how successful hiring locally can be. It not only fuels the local
economy, but it gives back to the community in a way that
transportation projects have not done in the past. When the Central 70
Project finishes at the end of 2022, the residents hired as a part of
the program will continue to reap the benefits of this commitment and
have a secure career, should they choose to stay in the construction
industry and even if they do not, they can take the skills they have
learned through training and coaching and apply that elsewhere. To make
this program even more successful, it would be beneficial for
transportation agencies to work out issues on the administrative side,
which includes building out a better reporting system to track
workforce job positions created as there are many lower-tier
subcontractors who have craft workers working on the Central 70 Project
that CDOT is unable to track. Hiring locally and providing funds for
on-the-job training are commitments that CDOT will continue to pursue
for other disproportionately impacted communities in future
infrastructure projects.

Ms. Norton. Thank you very much, Ms. Lew. I recognize Ms.
Smith for 5 minutes.
Ms. Smith. Chair Norton, Chairman DeFazio, Ranking Member
Davis, Ranking Member Graves, and members of the subcommittee,
thank you for the opportunity to appear today and speak about
the importance of the Federal Highway Administration's and the
NC Department of Transportation's On-the-Job Training and
Supportive Services Programs. Today I will share our
recommendations to protect and strengthen the critical
workforce development components during this time where we are
experiencing a shortage of skilled laborers.
I am Tunya Smith, director of the Office of Civil Rights
for the North Carolina Department of Transportation. Thank you
for inviting me to testify today on behalf of the State of
North Carolina.
According to title 23 of the U.S. Code of Federal
Regulations, the Federal Highway Administration mandates that
State transportation agencies create and operate on-the-job
training programs with our contractors on Federal-aid highway
projects.
The NC DOT's workforce development initiative has two major
objectives: to provide equal opportunity and access to all
people, and to produce a professional highway industry
workforce that fulfills employer demands.
We have several projects that cover almost every aspect of
workforce development in the highway industry. In addition to
targeting women and minorities, disadvantaged populations for
OJT program participation in North Carolina include those with
disabilities, justice-involved, veterans, and anyone who lives
in one of the State's most economically distressed tier 1
counties, including all eight North Carolina Native American
Tribes.
Women are underrepresented in the private contractor labor
force and all occupations surveyed, according to our most
recent ``Federal-aid Highway Construction Contractors Annual
EEO Workforce Report.''
The OJT program continues to be a vital public-private
relationship that benefits all parties. The following are some
of the OJT programs in North Carolina: highway construction
trade academies for adults 18 and older; advanced skills
training in a variety of high-demand areas, including training
for a commercial driver's license for academy participants and
graduates; and career outreach and recruitment programs for
middle school all the way through high school.
However, there is still work to be done. The Highway
Construction Workforce Partnership through the Federal Highway
Administration is one example of a program that requires
greater financing. This opportunity will allow us to work even
closer with critical stakeholders and partners.
Due to a lack of financing, North Carolina was one of a
dozen States that were not awarded Highway Construction
Workforce Partnership grant funds when the previous round of
grantees were named. We were also disappointed that the
Infrastructure Investment and Jobs Act did not contain new nor
direct financing for workforce development. Only four program
funds approved by the Fixing America's Surface Transportation,
FAST, Act are allowed to be used for workforce development by
States under the new IIJA.
The IIJA was enacted with the support of this committee and
will go a long way toward ensuring a safe and efficient highway
system. However, if we are to maximize the potential of the
IIJA commitment, we must invest more in workforce development.
We recommend a review of the Workforce Innovation and
Opportunity Act and consideration of the reauthorization to
determine if there are opportunities for amendments more
focused on funding for highway construction and other
transportation workforce and training programs.
It is also important that OJT Supportive Services money be
made available to train prerelease and incarcerated
individuals. Unfortunately, without additional funding and
flexibility of our programs, these and other workforce
development programs will remain stagnant.
Finally, on behalf of NC DOT Secretary J. Eric Boyette,
Deputy Secretary Ebony J. Pittman, the Board of Transportation,
and the dedicated employees of the North Carolina Department of
Transportation and our many partner organizations, I would like
to express my gratitude to the members of the House
Transportation and Infrastructure subcommittee for this honor
and opportunity to share our experiences and ideas regarding
OJT Supportive Services, workforce development, and job
creation in the highway construction industry.
Thank you once more. I will gladly answer any inquiries you
may have.
[Ms. Smith's prepared statement follows:]

Prepared Statement of Tunya Smith, Director, Office of Civil Rights,
North Carolina Department of Transportation
Introduction
Chair Norton, Chairman DeFazio, Ranking Member Davis, Ranking
Member Graves, and Members of the Subcommittee, thank you for the
opportunity to appear today and speak on the important topic of FHWA's
and NCDOT's On-the-Job Training (OJT) Program and OJT/Supportive
Services programs, and our recommendations to both protect and
strengthen these critical workforce development components.
I am Tunya Smith, director of the Office of Civil Rights for the
North Carolina Department of Transportation. Thank you for inviting me
to testify today on behalf of the State of North Carolina I'm honored
to be given this opportunity today.
NCDOT has evolved into a multimodal agency committed to supporting
the travelers, economy and overall well-being of North Carolina by
providing a comprehensive statewide transportation system that
encompasses all forms of travel. The agency's vision, mission and goals
guide its daily operations to ensure its wide range of projects and
services meet the state's growing transportation needs.
The reason I'm here speaking to you today is to advocate for
Congress to place greater emphasis and funding on workforce development
for the highway and bridge construction and maintenance industry. I see
from some of your recent agendas that ferries have been a major topic;
you may be happy to know that through special federal-aid highway
funding via FHWA, the programs I am about to discuss can work with the
training and labor needs for ferry transportation too.
North Carolina (NC) faces a highway construction workforce and
skills gap issue. Nationally, there is a growing demand for highway
construction, maintenance and administrative workers with a need for
higher-level skill sets. As the 9th most populated state and one that
is growing rapidly, North Carolina must consider both new build and
legacy maintenance needs related to highway, tunnel and bridge
construction.
A recent report from the North Carolina Chamber of Commerce and a
national transportation research nonprofit known as TRIP revealed North
Carolina motorists pay about $10.3 billion annually in transportation-
related expenses as a result of driving on poorly maintained and
deteriorating statewide roads and bridges. The report findings show
that a strong transportation network supports a strong statewide
economy. Nearly 2 million jobs in North Carolina depend directly on the
strength of our transportation infrastructure. As North Carolina
focuses on ramping up the transportation infrastructure, there is a
pending workforce shortage that shows the average age of North Carolina
construction trades workers is approximately 50 years old. The impact
of the expected labor shortage is amplified by the fact that many
potential workers find construction trades unattractive and challenging
to enter. Now more than ever, programs that target and prepare non-
traditional populations and laborers are needed.
Program Goals and Partnerships
The Federal-aid Highway Act of 1968, Section 22 (a), 23 USC 140
(a), ensures nondiscrimination in Equal Employment Opportunity and On-
the-Job on federally funded highway projects.
The NCDOT's workforce development initiatives have two major
objectives: provide equal opportunity and access for all people; and
produce a professional highway industry workforce that fulfills
employer demands. We have a number of projects that cover almost every
aspect of workforce development in the highway business. At NCDOT, the
On-the-Job Training (OJT) Programs are implemented and administered by
a unit within the Office of Civil Rights. The Carolinas Associated
General Contractors (CAGC), the American Road Transportation and
Builders Association (ARTBA), NC community colleges (including
ApprenticeshipNC), Local Education Agencies (LEA) that manage public
school systems, and the state workforce development system, NCWorks,
which is authorized and funded through the Workforce Investment Act
(WIA), are excellent at supporting highway industry workforce
development.
On-the-Job Training Program--OJT
State highway agencies are required by the Federal Highway
Administration (FHWA) to design and administer ``surface transportation
and technology training, including skill improvement programs,'' as
specified by the US Code of Federal Regulations Title 23, section
140(b) and Title 23 Section 230. The Federal Highway Administration
(FHWA) and the North Carolina Department of Transportation (NCDOT)
accomplish this through an On-the-Job Training Program (OJT).
Apprenticeships and other `earn while you learn' training programs are
included in the OJT program, which focuses on disadvantaged
communities. The primary goals of the OJT Program are to:
Ensure equal opportunity and access to training and job
placement in the highway construction field for minorities, women and
disadvantaged individuals; provide a diverse pool of skilled workers
for the highway construction sector; and ensure equal opportunity and
access to training and job placement in the highway construction field.

Disadvantaged populations in North Carolina are defined as those
with disabilities, people who have been engaged in the prison system,
veterans, and anyone who lives in one of the state's most economically
distressed Tier 1 counties. We're also making a concentrated effort to
attract more Native Americans to all of our programs by collaborating
with the N.C. Commission of Indian Affairs and the eight (8) NC tribes,
all of which are situated in Tier 1 counties.
The North Carolina OJT unit monitors contractor compliance, goal
objectives, and trainee completion of approved job classifications for
project contracts. Good faith efforts are part of this important
contractor-DOT partnership and provide for greater training continuity
and trainee and worker job retention. Federally funded contract
provisions require contractors to include a specific number of OJT jobs
to be included in a workforce based on a contract dollar formula and
methodology.
The NC Alternate OJT (A-OJT) Program's flexibility allows
contractors to educate personnel on a variety of projects. These
initiatives can be supported by the federal government, state
government, or the private sector. However, the projects must be in
North Carolina, and the training must meet the NCDOT On-the-Job
Training Manual's requirements. All contractors are advised of their
annual training target at the start of each calendar year, and they
agree with the department to conduct an On-the-Job Training program
throughout the year. This contract specifies a set number of annual
training slots for each contractor. Last year, nearly 150 people
enrolled in the NCDOT's version of the OJT program. The average trainee
was 32 years old. Sixty-six percent (n=109) of those surveyed
identified as male, while the remaining twenty-four percent (n=35)
identified as female. Non-white self-identification was reported by 61
percent of participants. We're working hard with our contractors to
boost the numbers, notably among Hispanic females, who make up only 14%
of all female trainees. The average age of a trainee in 2021 was 32.
This year, more than 300 new trainees will be enrolled in the
contractor OJT programs, with another 150 individuals continuing to
work from the previous two years. Nearly 500 OJT participants will be
working with prime and other contractors in 75 various task types
across North Carolina, in almost every county. One key issue, according
to our latest 1392--or Federal-Aid Highway Construction Contractors
Annual Equal Employment Opportunity (EEO) Workforce Report--is the
shortage of women in the private contractor labor force in all
occupations surveyed (except for clerical). In the ranks of `officials'
and `supervisors,' there is a dearth of women and minorities. The OJT
Program continues to be a vital public-private cooperation that is a
huge victory.
OJT Supportive Services (OJT/SS) Programs
Additional funding is available for OJT Supportive Services, or
OJT/SS, which enhance, complement, and assist the OJT workforce
pipeline initiative. OJT/SS is also used to enhance involvement in
skilled and semi-skilled crafts by women, minorities, and disadvantaged
people. The following are some of the NC OJT/SS initiatives:
Highway Construction Trade Academies
To further enhance the highway industry's workforce development,
the NCDOT supports Highway Construction Trades Academies (HCTA) for
adult and older youth learners. The academies are great opportunities
for those interested in good jobs with good pay and with the desire to
be trained in highway/bridge construction/maintenance that could result
in a rewarding career in the highway industry. The HCTAs are offered in
partnership with community-based non-profits, and community colleges,
and provide a mix of classroom instruction and hands-on learning
experiences.
Participants can receive OSHA-10, CPR, first aid, and flagger
certificates, as well as Commercial Driver Licenses (CDLs), as well as
take the Introduction to Earthmoving/Heavy Equipment Operation course.
Individual case management assistance, access to employment fairs, and
the option to be hired by contractors are also provided to
participants. Participants in the academy program are not charged
anything. Despite the hurdles posed by the COVID pandemic, a few
academies trained nearly 100 people for positions in the highway
business last year. By the end of the year, we hope to have a dozen
such academies up and operating in critical highway/bridge project
areas, with community colleges and community-based non-profits serving
as hosts. Meanwhile, in partnership with our Workforce Innovation and
Opportunity Act (WIOA)-funded NCWorks and Division of Highways
colleagues, we have developed a proactive and innovative strategy to
quickly provide qualified entry-level labor by conducting accelerated
`pop-up' academy boot camps.
Advanced Training
Participants who have completed an HCTA or are OJT trainees can
obtain further skills training in a variety of high-demand sectors. As
a supplement to their more general training, Advanced Training allows
learners to earn a variety of certificates. Those include
certifications in commercial and truck driver license operation; heavy
equipment operation; demolition/hauling, guardrail installation,
paving, landscaping and erosion control, installing trenches and
piping; traffic maintenance; bridgework; and disaster recovery. The
tuition and other costs connected with obtaining these certifications
will be covered by OJT/SS funding. Each year, an increasing number of
program participants take advantage of this opportunity. However, the
COVID pandemic created challenges and required significant outreach and
marketing efforts.
Outreach and Career Awareness
Through Construction Career Exposure, Engagement, Education
Development, or CEEED events, the North Carolina Department of
Transportation is also committed to career outreach and recruitment.
These activities help young people better understand transportation and
transportation construction jobs. These activities provide people with
the skills they need to identify and start a career that meets their
qualifications and desires. The outreach begins as early as middle
school and provides a pathway to Highway Academy graduation, as well as
advanced training in an OJT program and possible employment in a
rewarding career. It is encouraging that some may go on to be
entrepreneurs and operators themselves, perhaps as disadvantaged,
women, or small business owners. Examples of specific activities
include:
Highway Construction Career Days (CCD)/Career Expos:
NCDOT partners are encouraged to exhibit how technology and equipment
are employed in the highway construction business. A trade show with
vendor exhibits is included in each event to provide extra learning
opportunities and to explore potential highway construction job
possibilities with middle and high school students. Every year, CCDs
are hosted throughout the state, with each event attracting hundreds of
students.
Construction Career Engagement: The Program promotes
opportunities and professional development programs in the highway
construction industry through outreach, informational sessions, and job
fairs. These activities are used to recruit participants for the HCTAs
and educate people about jobs in highway building.

With Federal Highway Administration support under CFR 23 Section
140, NCDOT also operates several National Summer Transportation
Institute (NSTI) programs. NSTI programs are week-long summer camps for
high school students that combine classroom and experiential learning
to help students better understand transportation and related careers.
The NCDOT program hosted more than 150 kids at several locations across
the state last year to introduce minorities and girls in middle and
high school to careers in transportation. Historically Black Colleges
and Universities and Minority Serving Institutions make an important
contribution to industry workforce development by providing
transportation student internships and scholarships.
Supportive Services
We recognize there are obstacles to pursuing a career in highway
construction that are beyond an individual's control. We can provide
job placement, childcare support, outreach, case management,
transportation to training and job locations, post-graduation follow-
up, and job-site mentoring through our OJT and Support Services
program. To enable people to start a job, NCDOT also will supply
participants with basic personal protective equipment, such as steel-
toed boots, safety vests, protective eyewear, work gloves, and hard
hats.
Program Review and Continuous Improvement
FHWA reporting requires that we develop OJT/SS work statements and
submit to FHWA for approval for funding. Quarterly and annual reports
are provided to ensure the OJT/SS contractors/providers achieve
performance goals and objectives. Support services providers are
monitored by our OJT unit and the FHWA division offices.
We are proud of our training and job placement programs and know
these workforce development and employment programs directly impact
economic development and community development. We are committed to
continuous improvement and are currently assessing the economic impact
of our programs.
For example, HCTA and Advanced Training operations and money
directed to various suppliers, such as payroll, supplies/materials, and
equipment purchases and rentals, as well as wages and benefits of
program participants/graduates employed/promoted (multiplier effect),
are being evaluated. Additionally, peoples' lives and livelihoods are
transformed and improved.
Highway Construction Workforce Partnership
We are not alone, as I mentioned previously. A number of partner
organizations from the transportation, education and workforce areas
collaborate to provide a qualified and technically skilled highway
construction workforce. The Highway Construction Workforce Partnership
is an excellent example (HCWP).
The HCWP's goal is to bring organizations and others together in
state and local working groups to discover, train and place people in
highway construction employment. One of the most valuable aspects of
the HCWP is the potential to pool existing resources and interests to
solve industry labor needs as partners. The Center for Transportation
Workforce Development and Technology Deployment of the Federal Highway
Administration (FHWA) awarded $4 million in HCWP grants late last year.
However, only 11 of the 21 bids submitted by state DOTs were funded.
The challenges and processes of delivering outreach programs for
prospective employees, training and job placement necessitate the
commitment and active participation of transportation, education and
workforce system partners. However, the HCWP's full potential will not
be fulfilled without additional funding.
Over the last two years, the FHWA's Every Day Counts (EDC) Program
has chosen Strategic Workforce Development (SWD) as a key initiative.
Thirty-two states, including North Carolina, have committed to the SWD
in Every Day Counts, but their efforts will be significantly hampered
without money. If funds were available, I believe that more states
would support the EDC and HCWP.
Resource Limitations
We are doing what we can to improve highway industry workforce
development in North Carolina, but frankly we can and need to do more.
We were disappointed that more funding for workforce development was
not included in the Infrastructure Investment and Jobs Act (IIJA). It
appears that any new or existing direct workforce development funds in
the IIJA are limited.
The IIJA only allows states to obligate funds from four workforce
programs authorized by the earlier Fixing America's Surface
Transportation Act (FAST Act). Amendments now include support for pre-
apprenticeship and apprenticeship programs as well as career
opportunities for on-the-job training. They also expand how these funds
can be used. The amendments allow for engagement with workforce
development boards provided for under the Workforce Innovation and
Opportunity Act (WIOA). They also allow for activities around
addressing workforce gaps and developing the surface transportation
workforce.
With approval by the FHWA, NCDOT OJT has used Title 23, Section
504(e), for support of workforce development with 100% federal-aid
state highway core funds. Under this section, the Secretary shall
operate in the Federal Highway Administration a National Highway
Institute (in this subsection referred to as the ``Institute''). The
secretary shall administer the authority to develop and conduct
education and training programs relating to highways. However, any such
investment in such workforce development is made at the expense of
capital investment in road and bridge projects, highway safety, or
other programs. We are also increasingly pursuing program/project
funding strategies that encourage the leveraging of outside committed
resources. Those resources can be in-kind or cash contributions
including from other grantors or in co-funding or cost-sharing to help
supplement program activities and goals.
The Transportation and Infrastructure Committee provided the
leadership needed to enact the IIJA, and it will go a long way in
helping state transportation agencies and their partners to provide for
a safe and efficient highway system. But a greater investment in
workforce development is necessary if we are to realize the full
potential of the IIJA investment.
To achieve the best outcomes, we also recommend a review of WIOA in
consideration of its reauthorization to determine if there are
opportunities for amendments that are focused on funding for highway
construction, and other transportation workforce and training programs.
This could perhaps be accomplished through funds leveraging with OJT/SS
programs.
It is also important for the OJT/SS funds to be allowed for pre-
release incarcerated individuals, who are in re-entry mode. The type of
workforce development and employment services state DOTs can provide
under OJT/SS funding before incarcerated individuals are released will
help them be better prepared for full-time jobs soon after release. In
North Carolina, some of our Highway Construction Trade Academies have
worked closely with local re-entry councils and the graduates have been
quickly hired by contractors. It would be an even greater advantage to
start working with incarcerated individuals prior to their release from
prison.
Unified data collection and sharing amongst state transportation
agencies and partner agencies is also a critical missing component of
successful OJT program development. The federal government assists
states in developing a unified OJT data warehouse, a national
performance management dashboard. The federal government also helps
build a repository toolkit listing economic impact key performance
indicators and key statistics for states and local partners to measure
outcomes and economic impacts of training programs.
Perhaps above all, we would ask the committee to continue its work
and that funding be increased to support the basic, comprehensive and
critical OJT/SS workforce initiatives I have described. Most states
operate workforce programs similar to North Carolina's. I can assure
you everyone will benefit from additional workforce funding. More
importantly, we can take greater advantage of the partnerships and
programs already in place. OJT/SS is one of those best-kept secrets,
but NCDOT is working hard to get the word about these very beneficial
and mutually-rewarding programs.
Conclusion
We whole-heartedly agree with Ken Simonson, the Associated General
Contractors of America's (AGC) chief economist, that labor shortages in
the construction industry remain significant and widespread, and to
quote Mr. Simonson, ``The best way to encourage continued economic
growth, make it easier to rebuild aging infrastructure, and place more
young adults into high-paying careers is to address construction
workforce shortages.''
I appreciate Mr. Simonson's comment. If this initiative is not able
to continue and does not receive additional funding, many of the
benefits will not be fully realized.
In closing, I'd like to thank the members of the House
Transportation and Infrastructure Committee on behalf of NCDOT
Secretary J. Eric Boyette, Deputy Secretary Ebony J. Pittman, and the
dedicated employees of the North Carolina Department of Transportation
and our many partner organizations for this honor and opportunity to
share our experiences and ideas concerning OJT/SS, workforce
development, and job creation in the highway construction industry.
We are one example and model of how OJT and its accompanying
supports services can and should operate and function, as well as the
outcomes and returns on investment they can deliver. OJT is undoubtedly
a path to our future goals.
Thank you once more. I will gladly answer any inquiries you may
have.

Ms. Norton. Thank you very much for your testimony, Ms.
Smith. I now recognize Mr. Booker for 5 minutes.
Mr. Booker. Good afternoon, Chair Norton, Ranking Member
Davis, Chairman DeFazio, and distinguished members of the
subcommittee. My name is Brent Booker, secretary-treasurer of
North America's Building Trades Unions. On behalf of the 3
million skilled-craft construction professionals and 14
affiliated national and international unions that we represent
across the United States and Canada, thank you for the
opportunity to testify before this subcommittee.
Building America's infrastructure is literally what our
members do every day. Whether it is roads, bridges, transit,
airports, water systems, energy infrastructure, public
buildings, schools, or skyscrapers, our dedicated, highly
skilled members build critical infrastructure in every corner
of our great Nation.
The strength of the construction industry and individual
job opportunities are directly tied to the strength of public
policy advancing the building of public infrastructure. For
years, we advocated for robust infrastructure investment to
solidify and expand economic opportunities for workers and
business, and tackle tough public infrastructure challenges.
The bipartisan Infrastructure Investment and Jobs Act will do
just that.
This bill will increase new job opportunities for
construction workers, economic development opportunities for
communities, new business opportunities for both large
corporations and small business, and new training opportunities
for those that seek a career in construction.
The construction industry is among the most dangerous
industries in the country. Workers perform difficult physical
labor, often working around heavy machinery, and are regularly
exposed to extreme temperatures, toxic substances, and
difficult conditions. To guard against these inherent dangers,
uphold public safety, and promote first-rate work, workers must
receive the highest quality education and training.
For generations, NABTU-affiliated unions, with our industry
partners, have trained the world's safest and most productive
construction workforce through our gold standard registered
apprenticeship system. These earn-as-you-learn joint labor-
management programs provide apprentices with on-the-job
training from highly skilled, journey-level workers and state-
of-the-art classroom training. Each year, NABTU and partner
contractors invest almost $2 billion in the NABTU training
system, comprised of over 20,000 instructors at 1,600 training
centers in almost every U.S. congressional district.
Seventy-five percent of all construction registered
apprentices are trained in our system. Since 2017, an average
of 75,000 new apprentices have been registered annually. In
fact, if our system were a 4-year, degree-granting institution,
it would be the largest in the country. But unlike a college
degree or even a community college, our programs offer a debt-
free path to a fulfilling, lifelong, middle-class career.
A worker who has completed a NABTU-registered
apprenticeship program earns an average annual wage of $60,000,
and $300,000 more over the life of their career, compared to
non-registered apprenticeship participants. Workers are
guaranteed good wages, healthcare, and retirement benefits
during and after their apprenticeship.
NABTU programs also provide upskill training for tens of
thousands of journey-level workers each year, so they can
continually improve their skill, allowing workers and
contractors to remain competitive in a constantly evolving
industry and marketplace.
For our contractor partners, the benefits are substantial,
as well. By employing a highly skilled apprentice, our
contractors see a return of up to $3 for every dollar invested
in worker training.
To allow for direct input, and to consistently meet the
current demands of the construction market, each program and
training center is jointly administered with an equal number of
labor and contractor representatives.
With infrastructure implementation, demand is going to
increase. To help meet that demand, NABTU continues expanding
our apprenticeship readiness programs, or ARPs, oftentimes
called pre-apprenticeship programs. From 15 ARPs a decade ago
to nearly 200 ARPs today, NABTU has partnered with community
organizations, construction contractors, and project owners to
grow the pipeline of talented individuals who seek a
construction career, particularly among communities
underrepresented in the construction workforce.
We have specifically utilized ARPs to increase retention
and recruit more women, communities of color, Native Americans,
veterans, and the justice-involved. Since 2016, roughly 80
percent of the ARP graduates were people of color, and 20
percent were women.
With written articulation agreements with registered
apprenticeship programs, ARP graduates are placed directly into
apprenticeship in the middle class, but we also want to keep
them there throughout the duration of their apprenticeship
training. With local-hire provisions in the infrastructure law,
there is a real opportunity to expand these programs across the
country.
So, to continue offering ladders of opportunity for those
who wish to climb them, our programs need steady job
opportunities where apprentices can learn their skills in the
field. Our programs only bring individuals in if there is a job
for an apprentice. Continuity of employment is critical, as an
apprentice cannot complete their apprenticeship without
employment opportunities over the 3 to 5 years required to
complete their program. And it is why the infrastructure bill
and public projected funds are essential to training the next
generation of construction workers. The magnitude and breadth
of this investment will ensure that anyone from any background
and any community can access a middle-class construction
career.
Thank you for this opportunity to testify, and I look
forward to any questions.
[Mr. Booker's prepared statement follows:]

Prepared Statement of Brent Booker, Secretary-Treasurer, North
America's Building Trades Unions
Good morning. Chairwoman Norton, Ranking Member Davis, and
distinguished members of this subcommittee.
My name is Brent Booker, Secretary-Treasurer of North America's
Building Trades Unions (NABTU). On behalf of the three million skilled
craft construction professionals and 14 affiliated national and
international unions that I am proud to represent across the United
States and Canada, I would like to thank you for granting me this
opportunity to testify before this subcommittee.
Building America's infrastructure is literally what our members do
every day. Whether it is roads and bridges, transit, airports,
waterways, power plants and other energy infrastructure, municipal
water systems, public buildings, schools or skyscrapers, our dedicated
members apply their unique skill sets to building infrastructure in
every corner of our great nation.
For many of our members, the strength of both the construction
industry and their individual job opportunities are directly tied to
the strength of public policy that advances the building of public
infrastructure. And NABTU has for years advocated for a big, broad, and
bold infrastructure bill that solidifies and expands economic
opportunities for workers and business, tackles the tough challenges
our public infrastructure faces, and lays out a vision for a brighter
future. We strongly believe that the bipartisan Infrastructure
Investment and Jobs Act will do that just.
I cannot stress enough the importance of this bill, which is the
single greatest investment in our nation's infrastructure in my
lifetime. It is truly historic. This investment, along with the strong
labor standards in the bill, will allow us as a nation to meet our
pressing infrastructure needs and will lay the foundation for sustained
economic growth in communities large and small with jobs that pay
family sustaining wages and benefits.
And this bill will increase opportunity across the board: for new
job opportunities for construction workers; for new economic
development opportunities for our communities; for new business
opportunities for both large corporations and small business; and for
new training opportunities for those that seek a career in
construction.
The construction industry is, by its very nature and ranking from
the Bureau of Labor Statistics, among the most dangerous industries in
the country. Workers perform difficult physical labor, often working on
or around heavy machinery, and are regularly exposed to extreme
temperatures, toxic substances, and difficult conditions. To guard
against these inherent dangers, promote first-rate work and uphold
public safety, workers must receive the highest quality education and
training. Public infrastructure projects are critical to not only
rebuilding and strengthening our communities, but they are critical to
ensuring a reliable pipeline of highly skilled workers.
For generations, NABTU affiliated unions, in conjunction with our
industry partners, have trained the safest and most productive
construction workforce in the world through our registered
apprenticeship system. It is the gold standard for construction
training, and for workforce training overall. These world class, state-
of-the-art ``earn as you learn'' joint labor-management programs
provide apprentices with on-the-job training from highly skilled
journey-level workers, as well a state-of-the-art classroom training.
The NABTU affiliate training system is comprised of 1,600 training
centers and over 20,000 instructors, in almost every Congressional
district in the United States, which we and our industry partners
privately fund at nearly $2 billion annually. Seventy-five percent of
all construction registered apprentices are trained in NABTU registered
apprenticeship programs. Since 2017, an average of 75,000 new
apprentices have been registered annually. Before the pandemic began,
in 2019 alone, over 80,000 new apprentices began their careers in NABTU
programs. In fact, if NABTU's joint labor-management training system
were a four-year degree granting institution, it would be the largest
in the country. But unlike a four-year degree granting institution, or
even a community college, our programs offer a debt-free path to a
fulfilling, life-long career.
The noble goal of the National Apprenticeship Act of 1937, commonly
referred to as the Fitzgerald Act, is as important now as it was then--
to safeguard the welfare of the apprentice. NABTU programs have never
wavered from achieving this goal. To achieve this, there are specific
standards of a registered apprenticeship program that are critical in
worker training. First, there is a standard of hours for related
technical instruction, which is the classroom component of
apprenticeship training. Second, there is the written agreement between
the apprentice and apprenticeship program, which sets forth the
parameters of apprenticeship training, as well as items such as
graduated wages and benefits that an apprentice will earn while he or
she progresses through the program. Third, our programs and written
agreements have approval by a third party, namely the U.S. Department
of Labor or a state apprenticeship agency. This ``three-legged stool''
of apprenticeship training provides the necessary security to the
individual apprentice who is put on a path to becoming a highly
skilled, safe and effective worker in one of fifteen construction
trades.
The benefits of NABTU Registered Apprenticeship Programs are
substantial. A worker who has completed a NABTU registered
apprenticeship program earns an average annual wage of $60,000, and
$300,000 more over the life of their career compared to non-registered
apprenticeship participants. Workers are guaranteed good wages, health
care and retirement benefits during and after their apprenticeship.
NABTU's registered apprenticeship programs also provide up-skill
training for tens of thousands of journey-level workers each year with
the goal of continually improving their skills, which allows them, and
our contractors, to remain competitive in a constantly evolving
industry and marketplace.
For our contractor partners, the benefits are substantial as well.
By employing a highly skilled apprentice, our contractors see a return
of $1.30 to $3.00 for every dollar invested in worker training. A safer
workforce means decreased workplace injuries and accidents. And our
contractors have direct input into our programs because each program
and training center is jointly administered with an equal number of
representatives from labor and a specific trade's contractors. This
allows our programs to consistently meet the current demands of the
construction market.
And with the enactment of the infrastructure bill, demand is going
to increase, both in the number of workers needed to rebuild our
infrastructure and in having a workforce trained in the latest
technologies that are being deployed because of this investment.
To help meet that demand, NABTU has undertaken over the last
several years the expansion of our apprenticeship readiness programs
(ARPs), which on Capitol Hill are oftentimes called pre-apprenticeship
programs. These workforce training programs prepare participants to
enter and successfully complete a building trades registered
apprenticeship program. From 15 ARPs a decade ago to nearly 200 ARPs
today, NABTU has partnered with community organizations, construction
contractors, and project owners to grow the pipeline of talented
individuals who seek a construction career, particularly among
communities historically underrepresented in the construction
workforce. We have specifically utilized these programs to recruit more
women, communities of color, Native Americans, veterans and the justice
involved. This initiative has a dual purpose of both helping diversify
our workforce and increasing retention. As our apprenticeship readiness
programs have written articulation agreements with one or more of our
registered apprenticeship programs, we are able to place ARP graduates
directly into apprenticeship and onto the pathway to the middle class.
Investing in ARPs is both good for underserved communities, and good
for business. With the inclusion of local hire provisions in the
infrastructure bill, we have a real opportunity to expand these types
of programs to more communities across the country.
But for our system to remain successful, and for NABTU to continue
to offer ladders of opportunity for those who wish to climb them, we
need job opportunities where apprentices can learn their skills in the
field. Our programs simply do not bring individuals in if there is not
a job opportunity for an apprentice. In construction, one job leads to
another. This continuity of employment is critical as an apprentice
cannot complete their apprenticeship without employment opportunities
over the three to five years required to complete their program. And
this is why the infrastructure bill will be so critical to training
opportunities for the next generation of construction workers. The
magnitude and breadth of this investment will ensure that anyone, from
any background, and any community, who wishes to have a construction
career can find an opportunity to begin it.
Thank you again for this opportunity to testify, and I look forward
to your questions.

Ms. Norton. Thank you, Mr. Booker, for your testimony.
Before our next witness provides testimony, I would like to
recognize Representative Johnson to say a few introductory
words about Ms. Karst.
Mr. Johnson of South Dakota. Thank you, Madam Chair. And
yes, this is a real pleasure for me, and Ms. Karst is a fellow
South Dakotan; she is a friend. And I've got to be honest with
you, everybody, she is a force of nature. She has done a heck
of a job. This BX Civil & Construction company, it has been
around 60 years. It has been under her leadership for 30. And
she has tremendously expanded its reach, a whole new suite of
services that they provide. It has been really impressive
growth.
Her leadership has also been impressive, both in South
Dakota and at the Federal level. I am not going to read your
resume, but she is a former national outstanding chair of a
small AGC chapter. She is a former past president of South
Dakota AGC.
And I would just note this by way of closing, Madam Chair.
We talk a lot about rural development, about keeping rural
America strong in this room and throughout Congress. And Dell
Rapids is a town of about 4,000. And at the peak of the
construction season, Ms. Karst and her team employ about 150
people. And they are doing projects, some really big projects
across the region. And to me, if we want to look at how do we
grow rural America, how do we grow the workforce in this
incredibly important construction industry, we are going to
need innovators, we are going to need leadership. And boy, do I
have one for you.
Thanks for being here.
Ms. Norton. Thank you very much, Mr. Johnson. Now I
recognize Ms. Karst for 5 minutes.
Ms. Karst. Thank you, Congressman Johnson.
Thank you, Chair Norton, Ranking Member Davis, and members
of the subcommittee. Thank you for allowing me to testify on
this vitally important topic.
My name, as Dusty said, is Kari Karst. I am the president
of BX Civil & Construction in South Dakota, and an active
member of the AGC of America.
AGC is the leading association in the construction
industry, representing 27,000 firms, union and open-shop
contractors, many of which are small businesses. BX Civil &
Construction began its history as a subcontractor on the
Interstate Highway System performing seeding, fencing,
guardrail, and permanent signing for highway projects. I
purchased the company in 1992, and became certified as a woman-
owned, Disadvantaged Business Enterprise.
We have successfully grown and added capabilities like
concrete paving and bridge repair. We now perform as a prime
contractor or general contractor, as well as a subcontractor on
highway construction and infrastructure projects. Because of
our growth, I graduated from the Disadvantaged Business
Enterprise program last fall.
In my testimony today, I will discuss current issues facing
the construction industry, particularly as it relates to the
workforce.
The Infrastructure Investment and Jobs Act provides market
opportunities for construction companies like mine and assures
sustainable, good-paying jobs for our employees. As
unemployment once again hits record lows in my State and other
States around me, contractors are having an exceedingly hard
time finding workers that we need.
In South Dakota, we collaborate with our South Dakota DOT
to utilize grant funding to develop a CDL training program that
allows us to use joint marketing to recruit new drivers to our
industry and to upskill our existing workforce. We provide the
required classroom training and train our members to document
and provide skills training for our employees.
The AGC of South Dakota, while small, has three federally
registered apprenticeship programs that allow our workers to
achieve journey-level certification in carpentry, concrete
finishing, and heavy equipment operation. Our South Dakota
chapters also focus heavily on attracting the next generation
of construction workers through construction career camps,
which focus on exposing students to the opportunities in our
industry during their middle and high school years.
I am pleased to let you know that South Dakota is not an
anomaly. AGC chapters across the country are providing
innovative workforce programs to their local members.
Unfortunately, the administration's efforts as it relates
to workforce will neither attract nor prepare workers for a
long-term career in construction. They attempt to treat
symptoms, not causes, of workforce shortages. I ask that
Congress and the administration provide flexibility as they
implement this law, to help ensure that projects can be
completed efficiently and in a timely manner.
Construction companies are reporting shortages and
increased prices on manufactured steel, steel and plastic
piping, paint, concrete materials, and many other items. Cost
increases ranged from 15 percent to doubling or tripling on
some items. Construction firms are forced to pass along the
rising materials prices in order to remain viable as companies.
Lead times for these materials have dramatically increased. As
a result, crucial infrastructure projects across the country
run the risk of delay.
The inability to predict the availability of and price of
materials, and to foresee things like the Russian invasion,
spiking oil prices, and soaring inflation are devastating to
many contractors. Many contracts do not have price adjustment
clauses. These impacts are especially devastating to small DBE
construction firms that lack the resources to absorb these
unexpected costs.
A recent FHWA guidance memo highlighting that States should
focus exclusively on maintenance and repair work on existing
roadways is confusing and concerning. In the States where I
work, there are a broad range of needs that our DOTs work hard
to meet. Maintenance of existing roads and new roads may be a
rural community's only opportunity to attract business, and
thereby assure its future. More developed cities like Sioux
Falls certainly have the need for repair and maintenance, but
also have the need for additional expansion space to
accommodate the residential and commercial growth.
Making blanket guidance in favor of repair and maintenance
over expansion is restricting our opportunity for growth, and
this restriction will directly affect the ability of a
disadvantaged firm to grow. Our Nation's interstate system was
built and designed over 50 years ago. It is past time that
States modernize them to meet the current needs of the
populations they serve. And to do so, they need the flexibility
to add new capacity.
I want to express our deep concern regarding recent efforts
to suspend the Federal gas tax in the name of economic relief.
We believe this effort is misguided and could act to undermine
the recently enacted infrastructure law.
I thank the subcommittee for the opportunity to testify
today. I appreciate your continued efforts to improve our
Nation's infrastructure and policies that create good-paying
jobs in America.
I look forward to answering your questions.
[Ms. Karst's prepared statement follows:]

Prepared Statement of Kari J. Karst, President and Chief Executive
Officer, BX Civil & Construction, on behalf of the Associated General
Contractors of America
I. Introduction
Chair Norton, Ranking Member Davis, and members of the Subcommittee
on Highways and Transit (Subcommittee) thank you for inviting me to
testify on this vitally important topic. My name is Kari Karst. I am
the President and CEO of BX Civil & Construction in South Dakota and an
active member of the Associated General Contractors of America (AGC).
AGC is the leading association in the construction industry
representing more than 27,000 firms, including America's leading
general contractors and specialty-contracting firms, many of which are
small businesses. Many of the nation's service providers and suppliers
are also associated with AGC through a nationwide network of chapters.
AGC contractors are both union and open shop and are engaged in the
construction of the nation's commercial buildings, shopping centers,
factories, warehouses, highways, bridges, tunnels, airports, waterworks
facilities, waste treatment facilities, levees, locks, dams, water
conservation projects, defense facilities, multi-family housing
projects, and more.
My company, BX Civil & Construction, has been around for 60 years.
I will have owned the company for 30 years in April. We began our
history as a subcontractor on the interstate highway system performing
seeding, fencing, guardrail and permanent signing for highway projects.
After I purchased the company in 1992, we became certified as a Woman-
Owned Disadvantaged Business Enterprise. Along with my team, we grew
the business organically for about 15 years. Since then, our growth has
come through expanding our business lines and through acquisition. Our
work is now split 50/50 between general contracting (Prime) and
subcontracting. Our work-lines have expanded to include light grading,
bridge rehabilitation, box culverts, and concrete paving for roads and
runways. In the fall of 2021, I graduated from the Disadvantaged
Business Enterprise (DBE) program because of our twenty-fold growth.
Because of my experiences, I am well-qualified to testify on the
benefits and impacts of the Infrastructure Investment and Jobs Act
(IIJA).
In my testimony today, I will discuss current issues facing the
construction industry, particularly as it relates to the workforce. The
IIJA represents the most significant infusion of investment in our
infrastructure since the enactment of the Interstate Highway System in
the mid-1950's.
II. Workforce Issues
The IIJA provides market opportunities for transportation
contractors, heavy contractors, building contractors and utility
contractors. And most importantly, it demonstrates to our existing and
future workforce that there is sustainable work in the years to come.
This historic level of funding in our infrastructure when combined with
recovering from a global pandemic, addressing a supply chain crisis,
and implementing new federal requirements that were a part of the IIJA
will create challenges for those of us tasked with rebuilding our
infrastructure.
The construction industry continues to face workforce shortages due
to expected craft worker retirements, growth in other sectors, and
challenges to recruiting and training new workers into the industry.
Meanwhile, construction demand and activity continue to grow.
There will be challenges to finding enough skilled workers to
rebuild our nation's infrastructure. The administration's recent
attempts to prioritize the selection of projects based on labor
preferences and the mandate on project labor agreements through
executive order paper over the real problems facing the construction
workforce and miss the mark. These policies will neither attract nor
prepare workers for a long-term career in construction. They attempt to
treat the symptoms--not the root causes--of workforce shortages.
The Current State of Construction Employment
According to federal employment data analyzed by AGC, construction
employment remains below pre-pandemic levels in 21 states and D.C.
while 29 states now employ more construction workers than in February
2020.\1\ Employment has risen in most of the nation over the past year,
but contractors are having an increasingly hard time finding all the
workers they need as unemployment hits record lows in more states.
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\1\ Associated General Contractors of America, www.agc.org, from
Bureau of Labor Statistics (BLS), U.S. Department of Labor,
www.bls.gov/sae, 3/14/2022
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Effectively Meeting Local Workforce Needs Through Opportunity
Today, few school districts offer what is known as career and
technical education (CTE) programs or provide instruction in
construction skills. Construction jobs pay well. In South Dakota, 4 out
of the 5 most numerous construction occupations had higher median pay
than the median for all employees in the state in 2020 \2\.
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\2\ Bureau of Labor Statistics (BLS)
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In fact, decades of education policy have shifted school districts
from operating robust vocational educational programs, with many school
systems not teaching craft skills at all, and instead shifting towards
college preparatory skills. The country continues to face a higher
education bias evidenced by inequities in federal workforce and
education funding with only 1 in 5 dollars estimated going towards
workforce education programs compared to academic college programs \3\.
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\3\ Opportunity America https://opportunityamericaonline.org/
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Our nation's higher education programs have neither collaborated
with industry to identify occupations with openings, nor to prepare
students for in-demand jobs. The construction industry and the greater
economy have an interest in ensuring that higher education investments
are productive and have a responsibility to hold schools accountable
for preparing students for career opportunities while spurring
innovation.
Making reforms to higher education policy by making high-quality,
shorter-term education and training programs eligible for federal Pell
Grants would help reverse the skills gap, correct education funding
inequities, and provide job training and credentialing opportunities
that are in high demand. The bipartisan JOBS Act, or H.R. 2037, is one
legislative initiative that could help make a tangible impact on this
problem.
Congress must also increase Perkins CTE funding. The Perkins
program is the biggest federal funding source to high schools and post-
secondary vocational training programs in the country. Despite modest
funding increases in recent years, the level and need of funding still
has not kept up with inflation and rising demand.
South Dakota Training Program
AGC through its local chapters focus on Workforce Training Programs
that impact our local communities. In South Dakota, we have
collaborated with our Department of Transportation to utilize grant
funding to develop a Commercial Drivers License (CDL) Training Program
that allows us to recruit new drivers to our industry and upskill our
existing workforce. Through this program we help our members to train
and provide the required classroom training for CDL candidates and
provide marketing resources to attract candidates to our industry.
The AGC of South Dakota has three Federally Registered
Apprenticeship programs that allow our workers to achieve journey level
certification in Carpentry, Concrete Finishing & Heavy Equipment
Operation.
In addition to dealing with our immediate workforce training needs,
our South Dakota Chapters focus heavily on attracting the next
generation of construction workers through Construction Career Camps
which focus on exposing students to the opportunities in our industry
during their middle and high school years. In the last year, we will
have exposed over 600 students through our traditional camps all across
the state of South Dakota. We also have a special camp called Pizza,
Pop & Power Tools that focuses on 8th grade girls. These girls are
given a hands-on experience in equipment operation, carpentry, welding,
finishing concrete and using power tools. When we complete our Pizza,
Pop & Power Tools camps by the middle of April, we will have impacted
close to 300 8th grade girls in South Dakota.
Our innovative Construction Career Academy allows 16- to 18-year-
old students to earn and learn during the summer months. The students
are matched with one of our member employers who pay them to attend
classes and work under supervision on our jobsites. These students can
apply their experience to our Youth Apprenticeship Program and
eventually move on to one of our Federally Registered Apprenticeship
programs.
I am proud of what we do in South Dakota and even more pleased to
let you know that this is not an anomaly. AGC chapters across the
country understand the importance of our work force and are providing
innovative work force programs to their local members.
New Regulatory Challenges to Workforce Development:
A. Government-Mandated Project Labor Agreements
On February 4, 2022, President Biden signed a new Executive Order
on Use of Project Labor Agreements (PLA) For Federal Construction
Projects. When in effect, this Executive Order (E.O.) will require
every prime contractor and subcontractor--with limited exceptions--to
engage in negotiation or agree to PLAs on federal construction projects
valued at $35 million or more. As it stands, this executive order does
not require PLAs on federal aid transportation projects. However, it
does permit U.S. DOT to do so. AGC neither supports nor opposes
contractors' voluntary use of PLAs on government projects or elsewhere
but strongly opposes any government mandate for contractors' use of
PLAs.
The use of government-mandated PLAs hurts both union and open-shop
contractors. As an open-shop highway contractor, government-mandated
PLAs would:
Likely include union security clauses that require all
craft workers to pay either union dues or an equivalent amount of union
agency fees, whether or not the workers have any interest in union
representation. This may deter workers from applying for, or accepting
an assignment on, a PLA project, exacerbating already-challenging labor
supply conditions.
Normally require contractors to make contributions to
union-sponsored fringe benefit funds. But an open-shop contractor's
regular employees probably won't receive any benefits from those funds
because of the plans' time-based vesting and qualification
requirements. To continue providing benefits for such employees, the
contractor must contribute to both the union benefit funds and the
contractor's regular benefit funds. The cost of such double payments
can make the contractor's bids uncompetitive.
Act as a barrier for the hiring of small businesses,
including minority- and woman-owned businesses, and the fulfillment of
small-business utilization goals. Such businesses are largely open-shop
and are among those least able to make the above-described changes that
a PLA requires.

For these reasons, among others, government-mandated PLAs would
likely exacerbate workforce challenges, not improve them.
B. Local Hire
The IIJA includes a local hire provision that allows geographic or
economic preferences for construction labor workforces. Recently, the
U.S. Department of Transportation has signaled a desire to impose
preferences for projects that include local hire requirements. While
the construction industry is committed to recruiting more individuals,
particularly from disadvantaged areas and communities, into
construction careers, there is evidence that these policies have not
had the intended effect in areas where they have been imposed.
In South Dakota, a state with near historic low unemployment
numbers, there is even less of a need for these measures.
Unfortunately, it is the industry's experience that local hire policies
rarely result in long-term construction careers. They fail to attract
people to the industry and instead allow local school systems,
education policies, and elected officials off the hook for failing to
better match curricula to in-demand vocational skills.
Rather than offering across-the-board requirements that do not
adequately help attract, educate, and retain a skilled, diverse, and
safe construction workforce, Congress and the administration should
instead:
Focus on increasing CTE funding and track the
effectiveness of existing workforce programs, especially those with
federal funding sources; and
Support industry-led programs like AGC's Culture of CARE
\4\. The Culture of CARE program is focused on making construction
workplaces more inclusive and welcoming for all workers.
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\4\ https://buildculture.org/
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III. Other Challenges Impacting Construction
Now that Congress has passed an FY 2022 omnibus spending bill, and
the full benefits of IIJA can be realized, we ask that Congress and the
administration provide flexibility as they implement this law to help
ensure that projects can be completed efficiently and in a timely
manner. The following policy concerns have an indirect impact on the
workforce as they will have an impact on the project's ability to break
ground.
Supply Chain
A recent survey of AGC members, as well as by the American
Association of State Highway and Transportation Officials of the state
departments of transportation, found that companies and government
agencies are reporting both shortages of and increased prices on
manufactured steel, steel and plastic piping, paint, concrete
materials, and many other items. Cost increases ranged from 15 percent
to a doubling or tripling on some items like manufactured steel.
Lead times for procurement and delivery of many of these materials
has dramatically increased as well, and prospects for the rest of the
year are worse. As a result, crucial infrastructure projects across the
country run the risk of delay. Construction firms, in situations where
they are able to, will pass along the rising materials prices in order
to remain successful. Unfortunately, the lead time in bidding these
projects is so long that they are unable to predict the availability
and price of some of these materials. In addition, companies are unable
to foresee things like a Russian invasion, spiking oil prices, and
soaring inflation and therefore, in some instances, are forced to
absorb these increases because there is no price escalation clause
available to them.
The impacts of this have been especially devastating to small and
DBE construction firms that lack the resources to absorb these
unexpected costs. While contractors are in the business of managing
risk, the events and circumstances of the last two years have led to
such unprecedented unpredictability in the supply chain and market that
contracting firms of all sizes are at greater risk now than in recent
history of business failure.
Consequently, AGC led a coalition letter to the Treasury Department
asking that they clarify the use of Coronavirus State and Local Fiscal
Recovery Funds from the American Rescue Plan Act (ARPA) by state and
local governments to mitigate the effects of the supply chain. Allowing
the use of these funds would allow them to mitigate the effects of
supply chain delays and shortages and the effects they are having on
project costs. These unprecedented supply chain shortages and material
price increases are clearly initiated as a direct result of the
pandemic and we believe that this request falls well within the
Congressional intent of this funding.
Maintain Flexibility--Including for New Highway Capacity
AGC greatly appreciates the Subcommittee's work on the surface
transportation reauthorization process that led to IIJA becoming the
law of the land. As provided by the final bill, flexibility while
implementing this law is critical. Historically, the federal-aid
highway program has been federally funded and state administered.
AGC believes that the Federal Highway Administration (FHWA) must
continue to provide state and local governments with the flexibility to
address and prioritize their unique transportation needs as Congress
intends. As each area of our country is diverse and unique, so are the
transportation needs of each community. When standardized
transportation solutions do not work in a community, too often the
contractor gets blamed despite often not being involved in the
selection or design of a project.
Recently, FHWA released a guidance memo highlighting, among other
things, that states should focus exclusively on maintenance and repair
work on existing roadways before building more or new roads. This memo
has caused confusion with state DOTs due to the mismatch between this
guidance and the lack of corresponding requirements for such measures
by the IIJA. This policy, which was rejected by Congress in IIJA
negotiations, paints a false narrative based upon FHWA's own data \5\,
which states that 80% of roadway construction projects already repair
existing roads and bridges. Our nation's interstate system was built
and designed over 50 years ago, and it is past time that states
modernize them to meet the current needs of the cities and populations
they serve. Flexibility to add new capacity to meet these changed needs
is crucial.
---------------------------------------------------------------------------
\5\ https://www.fhwa.dot.gov/policyinformation/statistics/2019/
sf12.cfm
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From a construction standpoint, our biggest concern with policy
that attempts to limit a state's ability to add highway capacity is the
negative economic effect on the roadway construction industry--
particularly small and DBE construction firms like mine. Some of these
small businesses only construct new roads and bridges, as opposed to
performing maintenance and repair contracting. It is imperative that
increased federal investment in the nation's infrastructure create jobs
and allow businesses of all sizes to flourish.
Facilitate Efficient Project Delivery
AGC believes a great way to maximize the investment in IIJA would
be to implement the environmental review and permitting reforms that
were mandated in the bill. The complicated operations of these current
laws and the intersection of their requirements can delay projects that
would improve the overall safety and efficiency of the surface
transportation system. By implementing these provisions, we believe the
costs associated with delivering projects will be reduced without
jeopardizing environmental protections.
Specifically, we ask that the administration implement the
provisions that would:
Codify the One Federal Decision policy;
Allow for utility relocation in the right of way prior to
the National Environmental Policy Act (NEPA) review being completed;
and
Extend the time period for a state to assume the
responsibility for small projects, that have little or no environmental
impact, from a term of not more than 3 years, to a term of 5 years.
Unspent COVID Relief Funds
We would also ask that Congress clarify that several categories of
infrastructure investments--including transportation projects--and
disaster relief are eligible for unspent COVID-19 relief dollars,
eliminating ambiguity as to whether such projects could receive these
funds. The COVID-19 pandemic ripped a gaping hole in the budgets of
many state and local governments, making this assistance crucial as the
nation's economic recovery continues. Legislation to clarify this
eligibility has already passed the U.S. Senate and the House version,
which my home state Congressman Dusty Johnson is the lead sponsor of,
has yet to be considered for a vote.
Federal Gas Tax Holiday
I would be remiss if I did not express our deep concern regarding
recent efforts to ``provide economic relief'' by suspending the federal
gas tax. We believe this effort is extremely misguided and could act to
undermine the recently enacted infrastructure law that was negotiated
and passed on a bipartisan basis.
While there is no way to know whether suspending the gas tax would
lower gas prices or simply provide a tax break to oil companies who
determine how that tax is passed on to consumers, it is abundantly
clear that when there is a lack of real investment in funding
infrastructure improvement projects by states and the federal
government, consumers end up pay for it other ways, demonstrated by the
70% increase in toll prices over the last ten years \6\.
---------------------------------------------------------------------------
\6\ https://truckingresearch.org/wp-content/uploads/2020/01/ATRI-
Toll-Exec-Summary.pdf
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When it comes to concerns about being able to sustain my workforce,
suspending or reducing the primary funding source for the projects I
have built a successful business constructing ranks near the very top
of my list of worries.
IV. Conclusion
I thank the Subcommittee for the opportunity to testify today. I
appreciate its continued efforts to help improve our nation's
infrastructure and enact policies that create good paying jobs in
America. I look forward to answering any questions you may have.

Ms. Norton. Thank you, Ms. Karst. I now recognize Ms.
Kupcak for 5 minutes.
Ms. Kupcak. Thank you, Madam Chair, Ranking Member Davis,
Ranking Member Graves, and esteemed subcommittee members for
providing me, on behalf of Oregon Tradeswomen and the National
Taskforce on Tradeswomen's Issues, with this opportunity to
speak to workforce development and job creation in surface
transportation construction.
I would also like to give special thanks to Chairman
DeFazio, Oregon's own, for his leadership and commitment not
only to Oregonians, but to all Americans in having access to
good careers, while rebuilding our Nation, and inviting me here
today.
And thank you to the committee members for investing in
America's infrastructure and our workforce. We believe that the
bipartisan Infrastructure Investment and Jobs Act will not only
improve our Nation's infrastructure, but, in doing so, change
lives for so many.
Here in Oregon, I have the privilege to serve as the
executive director of Oregon Tradeswomen, a non-profit
headquartered in Portland, Oregon. Since 1989, we have been
working to increase the number of women entering and succeeding
in the skilled trades in construction, transportation, and
other blue-collar professions. We provide pre-apprenticeship
training, support services, and work in partnership with
industry to ensure that their workforce needs are met with
skilled, qualified workers, and we promote the retention and
leadership of tradeswomen. Oregon Tradeswomen is a founding
member of the National Taskforce on Tradeswomen's Issues, a
national coalition working to advance economic opportunities in
blue-collar careers for women.
Through this historic investment into our Nation's
infrastructure, we have the opportunity not only to expand our
Nation's workforce through these career opportunities, but to
ensure that our Nation's job seekers, who have long been
underrepresented in the skilled trades, could benefit from
these investments. Women have been underrepresented not because
of lack of interest or lack of talent or ability, but because
of outdated myths, misunderstandings, and, sadly still,
discrimination, which continue to create occupational
segregation, resulting in women largely clustered into low-wage
occupations.
Having access to dynamic and good-paying jobs in our
infrastructure economy can not only shift what our labor force
looks like, but it can impact economic security for women and
their families. But without intentional efforts in strong
public policy and investment to improve and support access to
such publicly funded jobs, women, particularly women of color,
are unlikely to benefit from these historic levels of
investment.
Poverty rates for women in the United States remain at
historically elevated levels. In fact, in our Nation, one in
seven households is headed by a woman who is living in poverty.
Access to high-wage careers, such as those in the highway
construction and transportation sectors, are critical for
women's economic advancement, while meeting our Nation's labor
shortages.
Public policy, especially the design and delivery of
infrastructure investments, impacts tradeswomen and the work we
do every day, from the local level to the State and Federal
rules. Such policies can and do enhance women's economic
security, support our employers, and enhance economic growth.
Through investing in and providing quality training to
women through pre-apprenticeship and registered apprenticeship
in these fields--fields that provide good wages, benefits--are
also an opportunity for a lifelong career that can and do
change people's lives--real people like Lori, a woman who came
to our free apprenticeship readiness program at Oregon
Tradeswomen, using her last few dollars to take the bus to our
training facility to get help and to getting into a skilled-
trades career after recently becoming sober. That was over a
decade ago, where she has worked hard in the field as a union
laborer, and worked her way through a tough job, turning it
into a career. She now owns a home, is active in volunteering
in her community, is a leader in the industry and her union,
and serves as a mentor to other tradeswomen.
Or Leslie, who, after being raised by a single father,
struggled to make ends meet with the minimum wages in her small
rural town while she was working to provide for her sick dad
and disabled brother. She heard about our program, and now she
is making a living wage as a union trades worker, and she now
can believe in a future that has economic security.
Both of these women and many others benefited directly from
the Federal OJT Supportive Services Program. We know that when
women have access to high-wage, high-skilled careers, that our
Nation will benefit from these returns on investment, removing
women and their families out of poverty, into the middle class,
where they have economic security for themselves and their
families, and can contribute to the local economy.
The Federal Highway Administration's OJT Supportive
Services Program provides a mechanism to ensure that quality
training is available, support services that will help job
seekers get the skills they need to have a lifelong career.
Infrastructure and transportation----
Ms. Norton [interrupting]. Thank you very much, Ms. Kupcak.
Can you summarize? You are past your 5 minutes.
Ms. Kupcak. Thank you, Madam, and my apologies for going
over.
Thank you for allowing us to submit our written
recommendations, and thank this committee for creating a bold
and broad infrastructure bill that will help our Nation's
workers.
[Ms. Kupcak's prepared statement follows:]

Prepared Statement of Kelly Kupcak, Executive Director, Oregon
Tradeswomen, on behalf of the National Taskforce on Tradeswomen's
Issues
Thank you, Chairman DeFazio, Ranking Member Graves, and esteemed
Subcommittee Members for providing Oregon Tradeswomen and the National
Taskforce on Tradeswomen's Issues for this opportunity to present our
views on workforce development and job creation in surface
transportation construction.
Oregon Tradeswomen is a nonprofit headquartered in Portland,
Oregon, and since 1989 we have been working to increase the number of
women entering and succeeding in the skilled trades in construction,
transportation, and other blue-collar professions. We provide pre-
apprenticeship training, support services, and work in partnership with
industry to ensure retention and leadership of tradeswomen. Oregon
Tradeswomen is a founding member of the National Taskforce on
Tradeswomen's Issues, a national coalition uniting the expertise of
local, regional, and national organizations, advocates, allies, and
individual tradeswomen to support women in achieving access,
opportunity, and equity in the skilled construction, transportation,
manufacturing, and clean energy industries and other nontraditional
occupations. The Taskforce promotes sound public policies and advocacy
initiatives at the national, state, and local levels to improve,
enforce, fund, and promote best practices towards equity in registered
apprenticeship and training, workforce development, career and
technical education, nontraditional employment, retention, and
respectful jobsite culture.
There is a critical need at this time of historic and significant
investment through the Infrastructure Investments Jobs Act of 2021
(IIJA) into our nation's infrastructure, and through that in expanding
workforce opportunities and job creation in surface transportation
construction. As many Subcommittee members may know, women remain
severely underrepresented in the construction and transportation
sectors--fields that provide good wages, benefits, and opportunities
for a life-long career. Without intentional efforts to improve and
support access to such publicly funded jobs, women, particularly women
of color, are unlikely to benefit from these historic levels of
investment.
Public policy--especially the design and delivery of infrastructure
investments--impacts tradeswomen and the work we do every day--from the
local level to state and federal rules, regulations, and laws. Such
policies will enhance women's economic security, support employers, and
enhance economic growth. When tradeswomen have access to high-wage,
high-skilled careers, such as those in the skilled trades, the
industry, our local communities, and our nation benefit from the
investments in an inclusive and skilled workforce.
Infrastructure and transportation represent more than one out of
every ten American jobs. This historic investment of infrastructure
spending and the potential to help our nation's jobseekers--including
those most in need--to secure good paying, quality careers--not just
jobs--in the transportation and construction industries is here. With
continued labor shortage challenges identified by industry employers,
the time to reach untapped jobseekers to become part of a skilled,
qualified, and highly trained workforce is upon us. According to the
2020 report, ``New Plan to Address Growing Construction Workforce
Shortages'', the Associated General Contractors of America (AGC) and
Autodesk nationwide survey of industry employers indicated that eighty
percent (80%) of construction firms reported they were having a hard
time finding workers.\1\
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\1\ Associated General Contractors of America and Autodesk, ``The
Workforce Development Plan 2.0: AGC of America's New Plan to Address
Growing Construction Workforce Shortages,'' 2019
---------------------------------------------------------------------------
With the industry's current workforce aging, and retiring, at a
rapid pace and a lack of young workers interested in entering the
skilled trades, the impact of construction workforce shortages,
according to the survey, is that it takes longer and costs more to
build many types of projects. Workforce shortages run the risk of
undermining broader economic growth by making private- and public-
sector development projects--including infrastructure--more expensive
and time-consuming. While the AGC/Autodesk report provides several
excellent strategies for addressing a workforce shortage, it neglects
to include a key strategy in recruiting women. Between February 2020
and July 2021 more women entered the construction workforce than ever
before with an increase of 3.2 percent--the largest increase of any
industry during that time.\2\ During this same time, men's
participation in the construction industry decreased by 4 percent.
---------------------------------------------------------------------------
\2\ Center for American Progress, ``Infrastructure Bill Must Create
Pathways for Women to Enter Construction Trades,'' 2021
---------------------------------------------------------------------------
A quarter of a million women work in the construction trades and
earn wages and benefits offering economic security. Over the course of
her lifetime, a woman working in the skilled trades (for example, as an
electrician) can make more than $1 million more than her counterpart
working in a traditionally female-dominated job, such as a childcare
worker or service worker.\3\ Poverty rates for women remain at
historically high levels, one in seven, substantially higher than
poverty rates for men. Access to high-wage careers is critical for
women's economic advancement. Women who obtain high-wage, construction
and other skilled trades occupations through quality pre-apprenticeship
training, information, and support services, flourish in these careers.
However, registered apprenticeship, a primary pathway into high-skilled
blue-collar careers, is not serving women.
---------------------------------------------------------------------------
\3\ Mathematica study on apprenticeship effectiveness and cost/
benefit analysis, ``An Effectiveness and Cost-Benefit Analysis of
Registered Apprenticeship in 10 States.''
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Nationally, women represent only 4 percent of construction
apprentices. Infrastructure jobs also remain highly segregated for
Black, Indigenous, and people of color (BIPOC) as well. BIPOC are
underrepresented and concentrated in lower paying, less safe, jobs in
the sector. Several programs and localities around the country have
proven that these low numbers are not inevitable when policy and
programmatic approaches, as outlined herein, are applied. Research has
shown that women, and particularly women of color, face discrimination
in hiring and long-term employment and experience high rates of sexual
and racial/ethnic harassment and gender bias on the job. As a result,
they are less likely to be retained on core crews, promoted to field
leadership positions or to receive the same on-the-job technical
training as men, and they do not complete their apprenticeships at the
same rates as their male counterparts.\4\
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\4\ Sarah Burd-Sharps, Kristen Lewis, and Maura Kelly, ``Building a
More Diverse Skilled Workforce in the Highway Trades: Are Oregon's
Current Efforts Working?'' 2021
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Oregon Tradeswomen and the National Taskforce on Tradeswomen's
Issues strongly support the strategic priorities and equity framework
outlined in the recent Memorandum of Understanding between the U.S.
Departments of Transportation (DOT) and Labor (DOL). Moreover, we have
been very pleased that DOT's recent Notices of Funding Opportunity
(NOFOs) have embedded priority considerations around strong labor
standards, workforce training programs that bring more underrepresented
populations into infrastructure jobs, and changes in hiring policies to
hire and retain more underrepresented populations. The Multimodal
Project Discretionary Grant Opportunity NOFO \5\ issued March 25, 2022,
in particular, calls out the requirements that federally-assisted
contractors not discriminate in employment on the bases of sex, race,
and ethnicity (among other bases) and take affirmative action to meet
the goals of 6.9% of construction-project hours being performed by
women and geographic-based goals for hours performed by people of
color; \6\ the NOFO requires all winning applicants with projects over
$35 million to work with DOL to promote compliance with non-
discrimination and affirmative action obligations.
---------------------------------------------------------------------------
\5\ 87 Fed. Reg. 17108 (March 25, 2022), https://
www.federalregister.gov/documents/2022/03/25/2022-06350/notice-of-
funding-opportunity-for-the-department-of-transportations-multimodal-
project-discretionary. This NOFO is a combined solicitation for
applications under DOT's National Infrastructure Project Assistance,
Nationally Significant Multimodal Freight and Highways Projects, and
Rural Surface Transportation grants programs.
\6\ See 41 CFR 60-4.2(d) and the ``NOTICE OF REQUIREMENT FOR
AFFIRMATIVE ACTION TO ENSURE EQUAL EMPLOYMENT OPPORTUNITY (EXECUTIVE
ORDER 11246)'' reproduced at Appendix G of OFCCP's Construction
Contractors Technical Assistance Guide (TAG), https://www.dol.gov/
sites/dolgov/files/ofccp/Construction/files/ConstructionTAG.pdf.
Federally assisted construction contractors are also required to take
16 minimum steps to promote equity; see ``STANDARD FEDERAL EQUAL
EMPLOYMENT OPPORTUNITY CONSTRUCTION CONTRACT SPECIFICATIONS (EXECUTIVE
ORDER 11246),'' set out at 41 CFR 60-4.3(a) (and also reproduced at
Appendix G of the TAG.
---------------------------------------------------------------------------
Through our work at Oregon Tradeswomen, and through the National
Taskforce on Tradeswomen's Issues, we have seen firsthand the
challenges of tackling the intersectional nature of barriers to
economic security, particularly for women of color. Improving gender
diversity in such fields has two main components: improving the supply
of women by providing quality job training without the burden of debt,
gender-equitable workforce development programs, such as registered
apprenticeships and pre-apprenticeship training programs, and programs
that help expand pathways for women to enter or re-enter non-
traditional occupations and skilled trades careers. Such job-training
efforts must be coupled with public policy that includes such
strategies as creating the demand for women by setting ambitious
workforce goals, monitoring progress, and enforcing compliance, and
providing technical advice and building capacity among contractors,
employers, and other industry stakeholders.
The experience of the state of Oregon and other regions where real
progress has been made in increasing gender and racial diversity in
nontraditional occupations teaches that generating change requires
resources, technical advice, clearly stated goals and expectations, and
regular monitoring and enforcement \7\. We recommend that
infrastructure and related funds disbursed to states include clear set-
asides for workforce development, including for support services such
as childcare and transportation stipends, as well as for enforcement
and oversight as have seen such investments result in retention of
workers, and economic mobility for themselves and their families.
---------------------------------------------------------------------------
\7\ See Report on the Use of Federal Funds to Increase Diversity
and Prepare those Entering the Highway Construction Workforce (ORS
184.866), Oregon Department of Transportation (2020). https://
www.oregon.gov/odot/About/GR/
Highway%20Construction%20Workforce%20Development
%20Report.pdf ; and Untapped Resources, Untapped Labor Pool: Using
Federal Highway Funds to Prepare Women for Careers in Construction by
Ariane Hegewisch, Jane Henrici, Elyse Shaw; Thomas Hooper (2014).
Boston, MA: Jobs For the Future https://www.jff.org/resources/untapped-
resources-untapped-labor-pool-using-federal-highway-funds-prepare-women
---------------------------------------------------------------------------
We recommend a number of specific measures like those described in
the March 25, 2022, Multimodal Project NOFO that state DOTs should
require of construction contractors for projects funded by IIJA where
the total project cost exceeds $10 million state DOTs should adopt to
prioritize equity for women and people of color in the surface-
transportation workforce:
1. Nondiscrimination and affirmative action. First and foremost,
state DOTs should make sure that contractors implement the affirmative
action requirements, including the specific numeric goals for minority
and female participation and the 16 minimum steps, which apply to
federally assisted construction contracts.
2. Supportive services. State DOTs should require each project's
General Contractor to spend at least one-half of one percent (0.5%) of
the overall project budget on supportive services for project workers
to maximize opportunities for women and people of color. The supportive
services eligible for funding under this requirement should be pre-
apprenticeship; childcare; tools; workwear; retention services
(including support groups, mentoring, and peer networking); and
application fees and other costs of entering registered apprenticeship
programs and required pre-employment training.
3. Respectful worksites. State DOTs should require each project's
General Contractor to adopt workplace anti-harassment policies and to
provide effective, on-going respectful-workplace training accompanied
by a social campaign designed to create inclusive and diverse work
sites for all the employees working on the project.
4. Transparency. State DOTS should require each project's General
Contractor to report the participation rates for women, minorities, and
apprentices working on the project, alongside the applicable goals, to
the public on an accessible online site, to Office of Federal Contract
Compliance Programs (OFCCP) in DOL, and to the state DOT; and to update
those reports twice per month.
5. Community engagement.
a. State DOTs should convene a meeting of representatives of
community-based organizations and the labor unions that will represent
workers on each project as the bid solicitation conditions are being
developed.
b. Once the contract is awarded, state DOTs should require each
project's General Contractor to convene meetings with a committee that
includes the state DOT, community-based organizations, relevant labor
unions, relevant government officials, and the subcontractors on the
project at least monthly, beginning at least 90 days before any hiring
for the project begins, and to require subcontractors' participation in
these meetings in their contracts. The purpose of these community
meetings is to review the General Contractor's and subcontractors'
implementation of the equity requirements, to provide the committee
members with necessary records, and to brainstorm solutions to
challenges encountered in implementing the equity requirements. The
General Contractor should also be required to provide an OFCCP
representative, a representative of the state DOT, and an ombudsperson
from the community committee with open access to the work site to
monitor conditions, provide support and assistance, and mediate issues.
6. Robust oversight. State DOTs should require the General
Contractor and subcontractors to consent to twice-monthly compliance
reviews by OFCCP and to participate in OFCCP's ``Mega Construction
Project'' program.
7. Sanctions. State DOTs should require the General Contractor and
subcontractors to agree to the sanctions in addition to those already
available under law if the state DOT or OFCCP finds that the General
Contractor or subcontractor is not in compliance with these
requirements. These additional sanctions include mandatory suspension
of progress payments until such time as the contractor comes into
compliance; a discretionary civil penalty of up to $14,502 per
violation and $145,027 per day for failure to comply after the
effective date of an administrative order or OFCCP compliance
agreement; and compensatory and where warranted under current legal
standards, punitive damages if such noncompliance results in monetary
harm to an individual or class of individuals because of unlawful
discrimination.
8. Flow-down applicability. State DOTs should require the General
Contractor and the subcontractors working on the project to include
these requirements in all their subcontracts.
9. Administrative expenses. State DOTS should require that the
General Contractor dedicate at least one-half of one percent (.5%) of
the overall project budget to the administrative expenses of
implementing these requirements.
10. Apprentice utilization minima. State DOTs should require that
the General Contractor and subcontractors together employ registered
apprentices for a minimum of twenty percent (20%) of hours worked on
the project, by trade.

To ensure that all parties are aware of these requirements in
advance of bidding, the federal Funding Opportunity Notices and state
bid solicitations should be required to contain these provisions, and
submitters of proposals and bids should be required to state their
plans for meeting these requirements.
Because of its oversight role, this Subcommittee has a critical
role to play to ensure that workforce development and job creation not
only meet industry demand for a skilled workforce but invest in an
equity framework for all Americans. To that end, Oregon Tradeswomen and
the National Taskforce on Tradeswomen's Issues respectfully ask that
this Subcommittee conduct robust oversight of the design and delivery
of the infrastructure investments by both the federal and the state
DOTs to ensure that they not only meet industry demand for a skilled
workforce, but invest in an equity framework for all Americans.
Finally, Oregon Tradeswomen and the National Taskforce on
Tradeswomen's Issues encourage this Subcommittee to consider the
following, more general strategies for creating equitable job creation:
Assist State and local government partners as well as
private-sector industry to identify, train, employ, reskill, and retain
the diverse workforce needed to rebuild and operate American
infrastructure.
Integrate job quality, labor standards and equal
employment opportunity standards across all grants related to
transportation infrastructure.
Leverage Federal spending to create better-paying jobs in
fair and safe workplaces that include health, retirement, and other
essential benefits.
Create a more diverse infrastructure workforce.
Engage stakeholders and develop strategic partnerships
with organizations that can draw on all of America's strength, talent,
and skill, including coalitions that represent women, BIPOC, and other
populations facing systemic barriers to employment, to support the
design and implementation of proven workforce development strategies
that train and support the workers needed for the successful delivery
of infrastructure investments.
Expand Registered Apprenticeship in high growth areas
such as electrification, zero-emission transportation systems
maintenance, bus, rail, truck operators as well as cyber-security and
intelligent transportation systems technology.

When tradeswomen have access to sustainable careers, which includes
equitable work hours, workplace policies that support work/family
balance, comprehensive on-the-job training and freedom from sexual and
racial harassment, the broader industry benefits from this
underutilized portion of demographic in the skilled trades workforce.
Oregon Tradeswomen and the National Taskforce on Tradeswomen's Issues
respectfully urge you to support the recommendations outlined herein to
implement strategies to attract, retain, and empower diverse qualified
workers to build and maintain our transportation system. By
implementing these strategies, we can collectively address industry
demands and tap into the talent of our nation's women who can help
build our nation's road and bridges while building a more secure
economic future for themselves and their families.

Ms. Norton. Thank you, Ms. Kupcak. Finally, Ms. Rai, you
are recognized for 5 minutes.
Ms. Rai. Good afternoon, Chair Norton and members of the
subcommittee. Thank you for the invitation to speak to you
today. My name is April Rai, and I am the national president
and CEO of the Conference of Minority Transportation Officials,
also known as COMTO.
COMTO was established in 1971. We just marked our 50-year
anniversary of our founding last year and reaffirmed our
mission to ensure opportunities and maximum participation in
the transportation industry for minorities, veterans, persons
with disabilities, and certified minority, women, and
Disadvantaged Business Enterprises. We have 35 chapters across
North America, 34 in the U.S., and 1 representing Toronto and
the surrounding region. Our 3,000 members include individual
transportation professionals, transportation agencies, private-
sector companies, and educational institutions, including
Historically Black Colleges and Universities. This translates
into tens of thousands of COMTO constituents.
We serve as the voice for equity in transportation,
providing support to transportation agencies in achieving their
ED&I goals, supporting the leadership development of
transportation professionals through leadership training, and
also, very relevant to today's topic, COMTO provides
scholarship and paid internship opportunities across the Nation
to attract the next generation of transportation professionals
and leadership to this great industry.
Two key initiatives that COMTO has to support the
strengthening of a transportation workforce pipeline include
our CITY internship program. Through this program, paid
internship opportunities are provided to minority students
around the country, connecting them to real-world professional
and practical experience in the transportation industry. We are
currently working to secure funding to expand this program to
focus on recruiting for apprenticeship programs and skilled-
labor jobs in transportation.
In addition, we have a national scholarship program. We
annually award multiple academic scholarships to minority
graduate and undergraduate students from across the country.
Coupled with the efforts of our 35 chapters, millions of
dollars have been awarded to deserving students pursuing
careers in STEM and transportation professions.
At COMTO we believe the leadership of a massive industry
like transportation, who has the responsibility of being the
great connector, should reflect the complex mosaic of those
they serve. To that end, we must be intentional about
attracting professionals from diverse backgrounds to this
industry.
In a recent visit to Morgan State University, one of two
HBCU-led universities in the U.S. Department of
Transportation's University Transportation Centers, Secretary
Buttigieg made a comment that I truly agree with. He said, ``As
a country, we cannot afford to leave any talent on the table.
We have to ensure that transportation is an engine of equity.''
To that end, COMTO supports and recommends expansion of
local and communities of need hiring preferences that
strengthen our communities by helping to create good local
jobs, increasing opportunities and greater equity for people of
color, women, veterans, and others facing barriers to
employment.
We also recommend public and private partnerships that
focus on workforce development programs and attracting youth to
the transportation industry with paid internships and
apprenticeship opportunities.
As Chair Norton stated, the Bipartisan Infrastructure Law
will generate historic investments into construction and
maintenance of U.S. roads, bridges, waterways, airports, et
cetera. But without enough workers, efforts to strengthen roads
and public transportation will be set back, and service
delivery to communities will be delayed, which we all know will
disproportionately impact communities of color.
We believe ``jobs'' is the operative word in IIJA. Both
Congress and the administration will have to be innovative and
take aggressive action in the coming months to support programs
and initiatives around workforce development, recruitment, and
training.
We are hopeful that this will include programs for emerging
transportation professionals, STEM and construction curricula,
especially in trade high schools, vocational schools, and
HBCUs. These programs will include the opportunity, hopefully,
for public and private partnerships to advance overall goals
and outreach.
Research has shown the many benefits of a diverse and
inclusive workforce, including innovation, new perspectives,
higher profits, and, ironically, the domino effect of increased
abilities to recruiting a diverse talent pool.
I want to conclude by offering the Conference of Minority
Transportation Officials as a resource to this subcommittee and
its members as you move forward to consider legislative
activity to address the needs of the workforce of the future.
Thank you again for the opportunity.
[Ms. Rai's prepared statement follows:]

Prepared Statement of April Rai, President and Chief Executive Officer,
Conference of Minority Transportation Officials
Good afternoon, Chairwoman Norton and Members of the Transportation
and Infrastructure Subcommittee on Transit and Highways. My name is
April Rai, and I am National President and CEO of the Conference of
Minority Transportation Officials, also known as COMTO.
COMTO is most appreciative of this opportunity to provide testimony
before the Subcommittee on the topic of ``Examining Workforce
Development and Job Creation in Surface Transportation Construction''.
This issue is of vital importance to COMTO, which includes 34 US
Chapters and one international chapter, totaling over 3000 members.
Members include Individuals, Transportation Agencies, Private Sector
Companies, Historically Underutilized Businesses (Small, Minority,
Women, Veteran Owned, Disadvantaged), Educational Institutions and Non-
Profit organizations. This translates into many tens of thousands of
COMTO constituents. We thank Chairwoman Norton for her leadership in
conducting this hearing, and if I may, I would like to make you aware
of COMTO's own initiatives to affect changes in the face of
transportation and to increase minority presence in the industry:
CITY Internship Program
COMTO's Careers in Transportation for Youth (CITY)
Internship Program provides paid internship opportunities for minority
students around the country, connecting them to real-world professional
and practical experience in the transportation industry. An expanded
version of the program will also focus on recruiting for apprenticeship
programs.
National Scholarship Program
COMTO annually awards multiple national academic
scholarships, to minority graduate and undergraduate students from
across the country. Coupled with the efforts of our 35 chapters,
millions of dollars have been awarded to deserving students.

As further information, COMTO was established in 1971--we marked
the 50th anniversary of our founding this past year--and reaffirmed our
mission to ensure opportunities and maximum participation in the
transportation industry for minority individuals, veterans, people with
disabilities and certified M/W/DBE businesses through leadership
training, professional development, scholarship and internship funding,
political advocacy, partnership building and networking opportunities.
COMTO appreciates that Rep. Norton clearly shares our mission and
vision for the industry. We believe that the leadership of a massive
industry that has the responsibility of being the great connector,
transporting all people and goods all the time should reflect the
complex mosaic of those they serve. We believe that commitment to
inclusion across race, gender, age, religion, identity, and experience
moves us forward every day. To that end, we must be intentional about
attracting professionals from diverse backgrounds to this industry.
Quick Overview of COMTO's Legislative Priorities
Local Hiring Initiatives/Workforce Development--Local
hiring preferences strengthen communities by helping to create good
local jobs, increasing opportunities and greater equity for people of
color, women, veterans, and others facing barriers to employment. COMTO
is pleased to know that rebuilding America through racial and economic
equity and incentivizing job creation through local hiring and
workforce development/business development initiatives, particularly
through infrastructure, is a priority for the Biden Administration.
DBE Program Improvements and Efficiencies--COMTO would
like to see closer oversight by DBE officers to avoid fraudulent front
companies, through more vigorous training programs for certification
and compliance officers, and a stronger, clearer definition of ``good
faith efforts'' with fewer waivers from DBE goals granted to majority-
owned firms.
Small Disadvantaged Business Size Standards--COMTO
supports action that would conform the U.S. Department of
Transportation's (USDOT) DBE Size Standard with the Small Business
Administration Standards (SBA). This is a simple fix to a big problem:
in the interest of fairness and consistency and the survival of small
minority owned businesses, the USDOT should use the Federal Aviation
Administration's model and use SBA's size standards when making
determinations with regard to small business status.
Increase DBE Personal Net Worth (PNW) Ceiling--Like the
DBE/SBE revenue ceiling, current PNW levels discourage DBE growth,
wealth building, quash successful graduation rates and limit bonding
and insurance opportunities. It is just common sense to set a PNW
grounded in reality and adjusted for inflation, in recognition of the
challenges small and minority businesses face in the bonding and
sureties market.
Federal Railroad Administration (FRA) DBE Program--COMTO
supports implementing a DBE program using the FHWA/FTA/FAA model. We
advocate for consistency within the USDOT and the establishment of DBE
participation goals on projects funded through the FRA and on monies
funneled by FRA to state rail agencies--including High Speed Rail
projects. An FRA DBE program would provide opportunities for new DBE
start-ups, would mean millions of dollars for minority businesses and
thousands of jobs for minority communities.

As President/CEO of COMTO, one of my top priorities is workforce
development and strengthening the transportation workforce pipeline.
The Bi-Partisan Infrastructure Law (BIL) also known as the
Infrastructure Investment and Jobs Act (IIJA)--will generate $1.2
trillion of investment--including $550 billion in new spending--into
construction, rehabilitation and maintenance of U.S. roads, bridges,
waterways, airports, rail and transit systems, and other
infrastructure, and will reauthorize surface transportation programs
for the next five years. But without enough workers, efforts to
strengthen roads and public transportation will be set back and service
delivery to communities will be delayed, which, as we all know, will
disproportionately impact communities of color.
In a recent New York Times article, entitled ``Skilled Workers Are
Scarce, Posing a Challenge for Biden's Infrastructure Plan'', COMTO
member Dr. Beverly Scott, Vice Chair of the President's National
Infrastructure Advisory Council, is quoted, in response to the issue,
``Do we have the work force ready right now to take care of this?
Absolutely not!''
We believe that JOBS is the operative word in the IIJA. But
workforce recruitment and retention have been issues that plagued the
transportation construction industry even before the pandemic. The
pandemic only made those problems more acute and now threaten the
industry's ability to carry out the goals of the bill. The
transportation construction industry has historically not well
reflected groups to get the most out of the legislation. Both Congress
and the Administration will need to be innovative and take aggressive
action in the next few months to make these programs a reality, to give
them the teeth to be effective and to establish accountability to
measure results.
SEC. 13007 of the BIL does address WORKFORCE DEVELOPMENT, TRAINING,
AND EDUCATION as it relates to SURFACE TRANSPORTATION WORKFORCE
DEVELOPMENT, TRAINING, AND EDUCATION.
In this section, we understand that Secretary Buttigieg has been
tasked with establishing a transportation workforce outreach program
for targeted outreach to increase awareness of transportation career
opportunities especially for diverse populations. In addition, it
authorizes activities to ``develop a robust surface transportation
workforce with new skills resulting from emerging transportation
technologies; and activities to attract new sources of job-creating
investment'' under a TRANSPORTATION EDUCATION AND TRAINING DEVELOPMENT
AND DEPLOYMENT PROGRAM. This section also directs the Secretary to
establish a program to make grants to educational institutions or State
departments of transportation, in partnership with industry and
relevant Federal departments and agencies to develop, test, and review
new curricula and education programs to train individuals at all levels
of the transportation workforce; or to implement the new curricula and
education programs to provide for hands-on career opportunities to meet
current and future needs. SMART grants applicants that promote a
skilled workforce that is inclusive of minority or disadvantaged groups
would be given priority. We are hopeful that this will include programs
for emerging transportation professionals, STEM and construction
curricula, especially in trade high schools, vocational schools and at
Historically Black Colleges and Universities (HBCUs). We are also
hopeful that these programs will include the opportunity for public and
private partnerships to advance program goals.
However, from what we can tell from the language, the program to
implement this ambitious training deployment program is woefully
underfunded compared to the multitude of tasks and goals assigned to
the Secretary.
Importantly, the Biden Administration has made a commitment to
smashing the agency silos, and we believe this will be a key factor. We
agree that Secretary Buttigieg should continue his efforts to negotiate
MOUs and to establish a working group made up of the Secretary of
Commerce, the Secretary of Energy, Secretary of Labor, and other
federal agency heads. The combined efforts and resources of each of
these agencies are necessary to create the workforce needed to fulfill
the goals and timelines of transportation infrastructure projects.
The Build Back Better Act (BBBA) would have included $20 billion to
help build that national workforce. The programs included expanding
apprenticeships, fostering mentor/protege relationships and investing
in increased enforcement of labor law and civil rights violations to
help diversify the workforce: these same concepts should be applied to
funds dispersed through the IIJA.
The obstacles that minorities and women have faced persist.
Needless to say, despite the change in racial and gender demographics
and the expected growth of women and minorities in the workforce, these
groups are still underrepresented and underutilized in the
transportation construction industry at large. According to career
experts Zippia, currently, there are over 808,891 construction workers
employed in the United States. However, only 6.2% of all construction
workers are women, while 93.8% are men. According to that same source,
the most common ethnicity of construction workers is White (58.7%),
followed by Hispanic or Latino (24.5%) and Black or African American
(10.7%). The United States Bureau of Labor, which also keeps official
records specifically on highway construction, the numbers are similar:
of this total, 2.6 percent were women, 6.2 percent were Black or
African-American, 1.6 percent Asian and 31 percent Hispanic or Latino/
Latina.
According to information provided by the Transportation Research
Board (TRB), `` . . . research suggests women may not feel welcomed or
attracted to the transportation industry. A 2015 Center for
Transportation Research and Education project noted that, although
women are an asset to transportation operation roles, fewer than 2% of
the U.S. railroad workforce was comprised of females and fewer than 5%
of drivers in the motor carrier industry were women. The industry can
find itself mired in old patterns and cultural norms that can result in
a lack of inclusivity, making it unable to attract uniquely talented
workers from a diverse population that includes women applicants.''
There is a cost associated with efforts to diversify the
construction workforce. However, aggressive recruitment, training, and
other best practices targeted toward minorities and women have been
shown to have significant value and return on investment. Research has
shown many benefits of a diverse and inclusive workplace, including
innovation, new perspectives, higher profits and ironically, the domino
effects of both increased abilities to continue to recruit a diverse
talent pool and higher employee retention.
But we realize this takes public and private sectors' EMPLOYER
education, to make the industry understand and embrace the benefits of
workforce diversity and development and to education programs that
stimulate interest in transportation construction careers. And beyond
that, we support incentivizing private sector efforts by giving credit
or weight to majority prime contractors who implement local hiring
efforts and allocation of resources to the best practices I mentioned
above to increase minority and women in the construction trades, and to
strengthen a pipeline of workers to better reflect the demographics of
the country.
I would like to conclude by offering the Conference of Minority
Transportation Officials as a resource to this subcommittee and its
Members as you move forward to consider legislative activity to address
the needs of the workforce of the future.
With your indulgence, I would like to encourage our membership to
submit statements to our National office on this topic, which I will in
turn submit to your staff as part of the hearing record. Thank you
again for this opportunity and for your time and consideration of these
important issues.

Ms. Norton. Thank you very much, Ms. Rai.
I recognize Chair DeFazio for his 5 minutes.
Mr. DeFazio. Thank you, Madam Chair.
Ms. Rai, we are talking about new entrants into the
workforce. And in particular, we want to be looking at youth.
What is sort of--I mean, I know it varies by region, but your
average unemployment rate among young high school, post-high
school-age people of color, I think it is quite high, is it
not?
Ms. Rai. It is. And I don't have the exact number in front
of me, but it is disproportionately high.
Mr. DeFazio. Right.
Ms. Rai. So, we need to let them know what is available,
and give them opportunities to be exposed to careers in this
industry, and make those opportunities paid opportunities
through internships and apprenticeship programs, so they can
know what the possibilities are.
Mr. DeFazio. Right. I was visiting, just anecdotally, LAX
with a major new construction project, and they engaged in this
sort of effort, given the area around the airport is generally
low-income, a lot of minority. And they had tremendous success
in recruitment and getting a young workforce who will now
probably stay in the workforce. So, I congratulate you on your
efforts.
To Ms. Karst, you say here that price increases on
manufactured steel, plastic piping, paint, and concrete range
from 15 percent to a doubling or tripling on some items like
manufactured steel. What accounts for that?
[Pause.]
Mr. DeFazio. Your mic, your mic, your mic, your mic.
Ms. Karst. I don't know if I can answer why those materials
prices have gone up. I think a lot of it really has to do with
what is going on in the world today, the supply chain issues
associated with the pandemic. I think my reason for talking
about it is that contractors are dealing with this as part of
their stress.
Mr. DeFazio. Right. And you have a group, I guess, through
AGC, that has petitioned the Biden administration to make clear
that American Rescue Plan money by State and local governments
could be used to help mitigate the cost of supply chain delays
and the effect it is having on project costs.
Ms. Karst. Yes. I think what we are asking for is we are
asking for you to give us flexibility at the State level to
make decisions that make sense for our State.
Mr. DeFazio. OK.
Ms. Karst. So, if that happens to do with some of the
supply chain issues, absolutely give our States the
flexibility. We have good relationships with our State DOTs,
and we want to be able to use those relationships to do what is
right for the constituency there.
Mr. DeFazio. Right. I think the ranking member, though,
pointed to that bill as a major cause of inflation. And, of
course, you just pointed out that the inflation and the cost of
construction materials has nothing to do with the passage of
the Rescue Plan. But now we want to apply Rescue Plan money to
help mitigate those impacts. So, I just find some things here a
little bit contradictory.
And just one more question for you. You said that--you made
a point. It was my position--it still is--that some States are
doing a miserable job in maintaining their infrastructure. Once
the President visited the day after a bridge collapse in
Pittsburgh. Pennsylvania has huge bridge problems, as do many,
many States--42,000 bridges on the National Highway System need
substantial repair or total replacement.
Some States, perhaps yours, are doing very well on that.
But the idea of Fix it First was: Look at that, and deal with
it, maintain and rebuild in a resilient way our existing
infrastructure--not exactly the way it stands now, could be
increased capacity. It certainly would be more resilient to
severe weather events and other things that are happening.
And also in major urban areas--you don't have any of those,
but to look at innovative solutions to deal with congestion.
You aren't going to be building a hell of a lot more highway-
miles through our major cities, just--there is no place to put
them. And that is what Fix it First was. It was and it is only
guidance on the part of the administration.
So, I am a bit puzzled at the objection to this sort of
guidance from the administration. You can briefly answer that,
because I have to ask another question to the other witnesses.
Ms. Karst. So, you want me to answer that, or----
Mr. DeFazio. Well, very quickly.
Ms. Karst. Yes. I mean, I will--again, we are focusing on
flexibility. We don't want to have edicts that come down that
tell us exactly how to do things, that each community should
know exactly what their situation is and whether or not that
makes sense for their community.
Really, we believe that our States are actually already
fixing it first. Eighty percent of the work is in repair and
maintenance of existing infrastructure.
Mr. DeFazio. Well, I am about to run out of time,
unfortunately, because I did want to ask further questions. But
with that, Madam Chair, I would yield back my last 1 second.
Ms. Norton. Thank you, Chair DeFazio. I now recognize
Ranking Member Davis for 5 minutes.
Mr. Rodney Davis of Illinois. Thank you, Madam Chair. And
thank you again to the witnesses.
Ms. Karst, let me start with you. I really appreciate you
raising the importance of One Federal Decision. It is an idea
that I have been proud to champion, and I remain frustrated, as
I said in my opening statement, that this administration is
dragging its feet in implementing the commonsense changes to
our regulatory process. Can you tell the committee how this
policy will help build more roads and more bridges?
Ms. Karst. In my opinion, as you look at different States,
the way the States administer money is, many times, to other
entities, whether it is the counties or townships and that kind
of thing. These counties and townships don't understand the
redtape that they have to go through, get very frustrated when
they have a farm-to-road bridge structure that is obsolete and
can't be used anymore. And when it takes them 6 years to get
that approved, they look to that as the State's problem, when,
in reality, it is really decisions that could be corrected
through One Federal Decision.
Mr. Rodney Davis of Illinois. Do you think it should be
expanded to other areas?
Ms. Karst. Absolutely, yes. I believe that the efficiencies
of One Federal Decision could be used in many places in our
infrastructure funding.
Mr. Rodney Davis of Illinois. Yes. I mean, we are not here
saying, you know, build a road to destroy the environment,
right? I mean, we just want the regulatory process to have an
end date. And I remember sitting in this room a few years ago
when we passed a water bill when we figured out that the
average Corps of Engineers project took about 15 years to get
through the regulatory process. I mean, I think it is wrong.
How about you?
Ms. Karst. I absolutely think it is wrong. People are
hearing about these needed projects, and they are seeing that
it takes too long to get them done.
Mr. Rodney Davis of Illinois. Well, it does. It certainly
does. And that means it keeps our men and women in the building
trades from being able to be employed on a jobsite, right?
Ms. Karst. Absolutely.
Mr. Rodney Davis of Illinois. Well, that leads me to you,
Mr. Booker. I appreciated the building trades' past support for
the One Federal Decision bill. Would you like to add anything
else regarding One Federal Decision, and how its delays in
implementation may impact your members' ability to be on the
worksite?
Mr. Booker. Yes, I mean, as you just mentioned, we have
been on the past--on the record supporting your legislation,
and thank you for your leadership on that. And we feel, as you
feel, that you need predictability. You need predictability
throughout the construction process, at the beginning of the
permitting process.
We are all for regulation. We are all for doing it the
right way. But let's streamline it, do it the way that your
legislation has put forward.
And it is not a matter of is it going to adversely affect
building trades members versus non-building trades members. If
a project is not permitted, it is going to affect anybody who
is going to work on that. So, that is why we have advocated
with you on behalf of trying to streamline these processes, and
we are in support of that, and think that that is the right way
to go.
Mr. Rodney Davis of Illinois. Well, thank you very much. I
appreciate the support of that particular provision.
And now we just hope that the administration is able to
implement this provision in a way that we had intended it when
this was debated numerous times here in this committee.
Ms. Karst, if I could come back to you, your company has,
what you said, grown out of the women and disadvantaged
business program. Can you speak to AGC's efforts to help
companies navigate this transition?
Ms. Karst. To AGC's efforts, really, I have been involved
in AGC, really, my entire career in the construction industry.
It is really the association that has given me the opportunity
to learn how to run a really good business, and how to grow my
business through having mentor relationships with other people
in the industry.
AGC does a ton to train its members and our workforce. It
is the experiences in AGC that have allowed me to figure out
the best way to grow the business and make decisions based on
where I was headed, and the way the company was growing, and
how it fit within the disadvantaged business program.
I think, as I said at the beginning, I have transitioned
from being less of a subcontractor and more of a prime
contractor, and it is through the resources and education that
AGC gives its members, advocates for on behalf of its members,
that has allowed me to grow.
Mr. Rodney Davis of Illinois. Well, I appreciate hearing
that. I had the chance to visit our local Illinois AGC chapter
when I was back in Illinois over the last 1\1/2\ weeks. So,
with that, I really appreciate your responses.
And Madam Chair, I know you are surprised, but I am
actually going to yield you back some time.
Ms. Norton. Thank you. We will see what we can do with it.
I recognize myself for 5 minutes.
Ms. Rai, I want to first offer my congratulations on the
50th anniversary of COMTO's founding. That is really an
important milestone.
Your testimony notes that, despite changes in the racial
and gender demographics of the overall workforce, women and
minorities are still underrepresented and underutilized in the
transportation construction industry.
Now, Congress has just enacted a landmark infrastructure
legislation, a bipartisan legislation, that includes
provisions, as noted in your testimony, to invest in the
transportation workforce. What can Congress do to prioritize
increasing participation of women and minorities in the
transportation construction workforce, both in overseeing the
implementation of infrastructure law and beyond?
Ms. Rai. Thank you, Chair Norton. I do believe that, with
regard to the moneys that are available at the DOT for this
work, it is extremely competitive, the moneys that are
specifically allocated towards workforce development and
capacity building. So, we need to look at appropriating more
dollars to this work.
We look to work with State DOTs and also private
transportation organizations and construction firms in this
work. But to assist in the capacity and the outreach efforts to
let folks know what is available, we have to have public and
private partnerships.
We are also looking to work with the HBCUs that are part of
the UTC program to utilize that as a pipeline to attract the
next generation to the transportation industry.
We are also looking to see if we can do better with
definitions around what are historically underutilized
businesses, hubs, those that are minority-owned, women-owned,
and disadvantaged businesses at the Federal level, so that
funding can be appropriated in a way that truly benefits the
communities that need it the most.
Ms. Norton. What benefits and impacts are employers seeing
when they invest in efforts to diversify their workforce?
Ms. Rai. I think we can all agree that, when we support
individuals as professionals, we support families, and families
make better communities, better regions, and a stronger Nation.
So, it helps us all when we invest money in these professionals
and make sure that they have a pathway to leadership and
support their professional development within the organization
so that leadership can truly reflect those that are served by
the transportation industry.
Ms. Norton. Thank you.
Ms. Smith, I was really excited to read your testimony,
which showed that more than 300 new trainees will be enrolled
in North Carolina's on-the-job training programs this year.
From your perspective, what makes North Carolina's on-the-job
training program so successful?
[No response.]
Ms. Norton. Ms. Smith?
Voice. Question.
Ms. Smith. OK. Thank you for that question, Chair Norton.
I believe that North Carolina is very successful in our OJT
program and increasing our trainees, because we have the full
support of leadership from our Governor to our secretary, and
also our highway administration here in North Carolina at our
regional offices.
We really put a lot of effort into building collaborations,
coalitions, and partnerships, not only with our local
stakeholders in our region, our trade associations, but also
with our universities, our HBCUs, and our workforce development
councils here locally.
We have also revamped our programs to include the building
apprenticeship programs that we have not seen before.
One of the newest initiatives that we have is a revamped
program. We call it our Reboot Pop-Up Academy. So, looking at
individuals that have been historically underemployed or
unemployed, and going back to the market to bring them back to
a boot camp to do a skills refresh on soft skills, and also
offer them supportive services.
We have also tapped into our incarcerated individuals, our
women's prisons, and also our Native American Tribes.
So, typically, communities that have not been used as a
resource for recruitment, we have really put a lot of effort
into looking at all communities to see how we can grow
communities. It impacts us for our workforce, and also the
economy of North Carolina.
Ms. Norton. Thank you very much for your testimony, Ms.
Smith. It has been very helpful.
I now recognize Mr. Crawford for 5 minutes.
Mr. Crawford. Thank you, Madam Chair. Thank you all for
being here today.
Ms. Karst, I want to direct a comment and a question to
you. We are all familiar with the runaway inflation that we are
experiencing today. Extreme gas prices is one example, food
prices are on the rise, and continued supply chain issues.
Everything just seems to require more time and money. Can you
talk about how this is affecting the construction industry, and
how you expect it to impact the ability to implement the
projects funded by IIJA?
Ms. Karst. Yes. I am glad you actually said it is time and
money, because, really, we are seeing a lot of flexibility on
time as we work with our DOTs, but the reality is that we, in
order to be able to do the work that we do, we have to follow a
schedule, and we have to have a schedule of multiple projects,
especially for a small contractor. I probably run about 50
projects a year, varying in sizes from, say, $20,000 to $20
million. So, those types of projects, you need to be able to
schedule those out.
And so, when we are seeing--not only are we seeing the cost
increases on there, we are also seeing delays on projects
because we can't get concrete pipe in time to do the
underground work, which has to be done before we can do the
final grading work before we can pave a project. So, really,
these are just continuous delays. Those delays not only cost us
money in terms of the material itself, but they are costing us
money in terms of being able to get those projects out.
And then it really just moves that snowball down the road.
So, in reality, we end up moving projects from this season into
next season, and it ends up impacting our ability to get this
work done.
Mr. Crawford. I am going to stay with you on this topic
here. Federally assisted construction projects like those
funded by IIJA have to meet Federal requirements like Davis-
Bacon, for example, and Service Contract Act. And while those
regulations may have made sense historically, they were never
indexed to inflation, and they are severely outdated today, and
they create incredible time lags and financial burdens on
federally funded projects.
Just this week, for example, I heard from the Corps of
Engineers that a simple tire repair on all-terrain cranes that
should cost about $3,000 to repair was more than double that
expense, nearly $7,000, due to Federal regulations.
In your experience, what kinds of additional costs has the
industry experienced due to outdated regulations like these?
Ms. Karst. Really, it is a lot of administrative costs and
project costs, additional project costs added to the top that
really add no value to the project itself. That is really where
we see those types of costs happening. It is extra
implementation in terms of office staff to make sure we are
meeting all of those requirements. It is extra project
management out in the field to make sure that we are doing
everything according to the regulations.
Now, don't get me wrong, we want to do things according to
the regulations, and we pride ourselves on doing that. We want
to provide a quality product to our end customer in a timely
manner, and provide good jobs for our employees. And we do
that.
Mr. Crawford. In the alternative, what suggestions would
you have for something like this to be able to streamline and
expedite projects?
Ms. Karst. To be able to streamline and expedite projects,
I would provide as much flexibility as you can to State and
local governments to be able to know what needs to be done in
their particular areas and not have it be handed down to them
in rules and regulations that may not make sense in their
particular jurisdiction.
Mr. Crawford. Got you. I appreciate you being here today.
I am going to yield back the balance of my time.
Ms. Karst. Thank you.
Ms. Norton. I thank the gentleman for yielding back. I now
recognize Ms. Johnson for 5 minutes.
Ms. Johnson of Texas. Thank you very much, Madam Chairman
and Ranking Member Davis, for holding this hearing today.
I would also like to thank our outstanding witnesses for
testifying before us today.
And before I proceed, I would like to associate myself to
your remarks in reference to Mr. Young, a former chair of the
committee, and someone that I have worked with on this
committee for almost 30 years.
Ms. Norton. So ordered.
Ms. Johnson of Texas. Thank you.
I had constituents in my district asking me about the
contracts and when will they be available for infrastructure
projects before the bill was even signed into law. And so, like
many people, I fully expected this legislation would create
thousands of good-paying and long-term jobs.
The Democrats on this committee passed the largest
transportation bill in history, with $550 billion in critical
infrastructure funding. This is a huge financial windfall for
the construction industry, and it is only fair to ask our
contractors, who benefit the most from this funding, to simply
hire people in the community, pay a living wage, and offer
training to those employees.
I am pleased to hear the testimony from some of the many
people who are benefiting from the Infrastructure Investment
and Jobs Act and look forward to hearing from our witnesses
even more.
I am from a large State with lots of projects needed and a
lot of people with jobs. I am sorry that I don't see someone
from Texas talking about our progress and what we are doing to
enable more people to have opportunities. So, what I would like
to do is ask first Ms. Tunya Smith, director of the Office of
Civil Rights in North Carolina.
You understand how hard it is for small and minority
businesses to succeed, so, it is unfortunate that many States
don't make any effort to institute or enforce DBE goals. Do you
think that States' DOTs and people in your position have enough
strong enforcement mechanisms to ensure businesses are meeting
DBE requirements on projects?
And can you discuss your experience with that and what
additional tools Congress can provide?
Ms. Smith. Thank you for asking that question,
Representative Johnson, and I am glad to be able to respond to
you accordingly.
That is a critical question that we discuss a lot in all
civil rights programs in State DOTs, is how to really enforce
and enhance our goal-setting programs. One of the major
obstacles that we see, State to State, is a lack of DBE goals
on professional services contracts. It is something that is
done on a State level. The Federal regulations allow us to do
it. However, many States just do not have the goals based on
State statutes on those professional services contracts. That
is one of the strongest things I believe you can do today, is
to have that goal-setting program.
But to answer your question, we could use and benefit from
greater enforcement at the Federal level to ensure that all of
our procurement obstacles are mitigated as best as possible.
Another major thing that could really assist the State DOTs
is having a more enhanced and robust data collection system,
one that pulls all the information from State DOTs that we can
pull from. Oftentimes I am asked, ``What are other States
doing, and how could we do it better? Have they been
successful?'' That is a story that we continue to ask. We do
peer-to-peer exchanges, but there really is no central
repository that is collecting all of this information.
Furthermore, I believe that we could enhance our research
and development efforts with the HBCUs to really target the
economic impact and also the obstacles that we face with firms
being utilized on contracts. It is a much greater issue we
cannot always understand as times change. We have different
financial struggles and financial capacity issues that we have
to help businesses mitigate.
These are just a few things that the Congress can do to
help us to reach our goals, to help these small minority
businesses.
Ms. Johnson of Texas. Well, thank you very much. My time is
about out.
But Madam Chair, I would like to submit two questions to
the committee for persons to answer later, to Ms. Kari Karst
and Ms. Kelly Kupcak.
Thank you, and I yield back.
Ms. Norton. Thank you. And we will be glad to receive them.
Mr. Perry, you are recognized for 5 minutes.
Mr. Perry. Thank you, Madam Chair.
Ms. Karst, good afternoon. It is good to see you, good to
see another contractor put people to work and doing great
things in America. And your testimony highlighted AGC's
opposition to Government-mandated project labor agreements and
concerns that they would likely exacerbate workforce
challenges.
And specifically, I think they raised the concerns that
mandated PLAs act as a barrier for hiring small businesses,
including WBE and MBE, in the fulfillment of small business
utilization goals. Can you expand on your thoughts on PLA, and
how it creates barriers to hiring of small businesses and DBEs?
Ms. Karst. So, I am from a small State, work on small
projects. project labor agreements are completely foreign to
anything that we would do in the State of South Dakota or the
State of Nebraska, where I work. We essentially have no union,
no effective union presence in our State. We take care of our
employees. We do a good job of taking care of our employees.
And so, the opportunities for me would change dramatically.
And although I am a small contractor in the whole realm of
things, in terms of AGC members, our member's average size, I
believe, is about nine employees. I have 150 employees. So, for
firms of that size to be able to participate effectively in
projects that have those types of agreements is very
detrimental, or very difficult for them to do. DOT projects
have enough regulations on them as they go that it becomes
difficult for smaller contractors to participate on that. But
we figured that out on how to do that. Moving this--PLAs, in my
opinion, move a whole other level of complexity to the process
that, again, excludes smaller contractors for large
contractors.
Mr. Perry. Having been a small contractor myself, I would
agree with you.
In your testimony, you also state recently the FHWA
released a guidance memo highlighting that States should focus
exclusively on maintenance and repair work on existing roadways
before building new capacity. You are correctly pointing out
that this policy was rejected by Congress in IIJA negotiations
and paints a false narrative based on FHWA's own data, which
states that 80 percent of roadway construction projects already
repair existing roads and bridges.
Unfortunately, the FHWA is trying to impose the chairman's
failed priorities by executive fiat--almost word for word, if
you want to know. This is a completely unacceptable subversion
of congressional intent and the law that must be rejected.
Congress rejected the policy because it misallocates
resources and restricts localities and States from making
planning decisions to meet their own needs. Can you expand at
all upon the negative economic effect on the roadway
construction industry, particularly small businesses like
yourself and DBE construction firms that will occur if FHWA
continues to pursue what I consider a perversion of the
congressional intent?
Ms. Karst. Really, it comes down to opportunity and really,
again, providing States flexibility to do what is right for
them.
As you have said, 80 percent of the work is already in
repair and maintenance. In my State I believe the number is
more like 91 percent of the work is already repair and
maintenance. So, it becomes unnecessary to even have the
guidance, and a little bit confusing in the sense that there
are projects in small communities and larger communities that I
work in that are necessary for expansion, because we do have
growth going on. And when we have growth going on--we have the
land and the area to expand--being restricted to do those
things by even a guidance makes projects more difficult.
Mr. Perry. I am glad Washington is here to help you.
Finally, PLAs are not the only labor provision that tilt
contracts in favor of closed-shop entities at the expense of
open-shop minority and women-owned businesses and small
businesses. Unfortunately, the DBE prevailing wages also stand
in the way of greater small business and DBE participation. Do
you think that some reforms are necessary, I guess, to ensure
Federal funding is spent efficiently, and the DOT needs are
met? Do you think some reforms are necessary?
Ms. Karst. Yes, I think that the Davis-Bacon needs to be
updated. It needs to be broadened to include open-shop and
union opportunities to give States the opportunity to update
their particular wage scales more frequently, and as needed.
To be honest with you, Davis-Bacon in South Dakota is way
below what anybody pays. But the rates that are in Davis-Bacon,
we can't get them to come up. We can't get them to come up
because there is not effective ways for an essentially non-
union State to be able to affect those scales. So, it needs
updating, and we need to have the flexibility to do what we
need to do in our State.
Mr. Perry. Thank you, Madam Chair. I yield the balance.
Ms. Norton. Thank you. I now recognize Ms. Brownley for 5
minutes.
Ms. Brownley. Thank you, Madam Chair.
Ms. Kupkac--I hope I am pronouncing your name correctly, I
have a feeling I am probably not--first I want to thank you
very, very much for your advocacy for women. You are passionate
about it, and I appreciate it very much.
I was interested in your testimony, where you stated
between February of 2020 and July 2021, more women entered the
construction workforce than ever before, with an increase of
3.2 percent. Actually, you say the largest increase of any
industry during that time. And during the same timeframe, men's
participation in the construction industry actually decreased
by 4 percent.
So, the time period that you are referencing is certainly
around the height of COVID. I am just very curious to know what
drove more women into the workforce during this timeframe.
Ms. Kupcak. Thank you, Representative Brownley, for your
comments and your kind words. Yes, that was actually an AGC/
Autodesk report that we referenced in our comments and written
testimony.
And what we have found--and also looking at a report from
the Institute for Women's Policy Research--certainly many, many
women were disproportionately impacted by the pandemic for
reasons to need to stay home, to leave the workforce to care
for family members who were either sick or children who were
not able to be in school, or have childcare.
But we also saw many, many women reaching out to us and
other tradeswomen organizations and pre-apprenticeship programs
across the country saying, ``I have had this opportunity to
reflect, and I need to do something different to care for
myself and my family, to have an economic security for my
future and for my family.''
And I believe that also, one of the challenges that we had
during the pandemic of providing training, especially at the
beginning, in shifting to offering a hybrid model of remote
training and in-person training, we reached more women. We
reached more women in rural communities and other areas, where
they didn't necessarily have a vocational school nearby, or a
community college, or community-based program such as ours. So,
we saw more women coming in, and we want to continue that
trend, and we want to make sure that the women that come in
stay in.
I hope that answers your question.
Ms. Brownley. Yes, it does. Thank you very much. You also,
in your testimony, noted that women, and particularly women of
color, face discrimination in hiring and long-term employment.
And amongst your recommendations was a requirement for
contractors to do more to ensure respectful workplaces,
worksites.
Do you have kind of a ballpark estimate on how many
contractors currently require employees to receive workplace
training on diversity and inclusiveness, including education
related to ending sexual harassment on the job?
Ms. Kupcak. Thank you so much for that question. And
certainly, there are already Federal guidelines in place around
affirmative action and equal employment opportunity and anti-
harassment.
I wish I had a number for you, and I wish I could say it is
more than a handful that we have here in Portland who have
committed to not just stating on paper that they have policies
about harassment, but actually are implementing a strong and
rigorous and engaging and proactive program such as Green Dot
or RISE Up, or other programs that are intentional for our
construction sector to mitigate harassment, hazing, and
bullying, which are a huge cost to employers, right?
And so, we are lucky here, in the Pacific Northwest. Oregon
Tradeswomen runs a program called RISE Up--Respect, Inclusion,
Safety, and Equity--that was developed by our sister
organization, ANEW, in Seattle, in partnership with the
building trades and other industry partners. And we are seeing
that that is making a difference in the workforce being
retained, and in particular women, women of color, and people
of color. But we have so much more work to do in this space.
But I thank you for your question. It is a very important--
--
Ms. Brownley [interrupting]. I have one last very quick
question. So, I have spent a lot of my time in Congress
advocating for our Nation's veterans, particularly our women
veterans. And I am just wondering if you have a way in which to
reach out to women veterans in your community.
Ms. Kupcak. We absolutely do. We work with our State
veterans' affairs department. We have a lot of advocacy
underway here in Oregon with our State Apprenticeship and
Training Council. In fact, our executive administrator formerly
worked for Helmets to Hardhats, Director Lisa Ransom. So, there
is a lot of intentionality, and it is an incredible opportunity
for returning vets to get into these careers, and particularly
for women who have had those similar skills while serving our
Nation.
Ms. Brownley. Thank you so much, Madam Chair. I yield back.
Ms. Norton. Thank you. I recognize Mr. Babin for 5 minutes.
Dr. Babin. Thank you very much. I appreciate----
[Audio malfunction.]
Dr. Babin. Testing. Better? OK, sorry. I hope they don't
penalize me for that lost time.
Thank you very much. And I thank the witnesses for being
here. And I would like to direct this question and statement to
Ms. Karst.
Thank you so much for your expertise. As noted in your
testimony, a historic level of funding was injected into the
transportation and infrastructure sector with the passage of
the Infrastructure Investment and Jobs Act, or IIJA.
However, we all know that simply throwing money at a
problem doesn't always actually solve that problem. Throwing
billions of taxpayer dollars at this industry without solving
the supply chain crisis, pandemic recovery issues like fraud
and abuse, major workforce shortages, overly burdensome,
bureaucratic redtape, and other underlying issues will not
actually allow us to see long-term sustainable improvement and
investment in our Nation's infrastructure.
I represent a district in southeast Texas near the Houston
area, nine counties, with more oil refineries in it than
anywhere else in the country. I understand how dire the need
for a skilled workforce is.
However, as you mentioned in your testimony--and I thank
you for that testimony--when the Biden administration decided
to prioritize projects based on labor preferences, they missed
the mark. Although who is surprised that they put politics over
people? The administration knew full well that they were
risking companies' abilities to recruit and maintain a talented
and capable workforce with their union-dictated Executive
orders.
But like you said, they took something that really needed
to be addressed at the very root of that problem, and put a
liberal Band-Aid over it, and waited for the applause from
people who have no idea what they are talking about.
At a conference last month, Senator Chuck Schumer, majority
leader of the Senate, stated in his role as majority leader of
the Senate he will fight to ensure that, quote, ``every
blanking [expletive substitution] Federal dollar only pays for
union labor,'' further emphasizing his support for PLAs
everywhere. Mind you, there was explicit language in his
original quote that I won't be repeating. I try not to talk
like that down where I am from.
But for everyone's awareness, IIJA says nothing about
project labor agreements and definitely nothing about every
dollar only paying for union labor. These comments are pretty
concerning, especially to the 87.4 percent of non-union workers
in that construction arena.
I have a letter here from more than 1,000 construction
companies and another letter from nearly 20 business groups
that all oppose Biden's PLA mandate. They say that PLAs
discriminate against firms and workers based on whether or not
their workers are union. So, if we could enter those into the
record, I would appreciate it.
[The information follows:]

Letter of April 6, 2022, to President Biden and Vice President Harris
from Associated Builders and Contractors et al., Submitted for the
Record by Hon. Brian Babin
April 6, 2022.
The Honorable Joe Biden,
President of the United States,
The White House, 1600 Pennsylvania Ave. NW, Washington DC 20500.
The Honorable Kamala Harris,
Vice President of the United States,
The White House, 1600 Pennsylvania Ave. NW, Washington DC 20500.
Dear Mr. President and Madam Vice President:
ABC and our undersigned state chapters and member companies
strongly oppose your administration's efforts to encourage and require
controversial government-mandated project labor agreements on federal
and federally assisted construction contracts funded by taxpayers.
Associated Builders and Contractors and our members are committed
to building taxpayer-funded construction projects with the highest
standards of safety and quality and stand ready for the chance to build
and maintain America's infrastructure. Federally funded construction is
also critical to address the nation's infrastructure needs and has the
potential to provide significant opportunities, particularly to small
construction businesses, as they continue to recover from the effects
of the COVID-19 pandemic.
While Congress worked to enact a significant bipartisan
infrastructure package and begin the process of modernizing our
nation's infrastructure, your administration is taking a dangerously
partisan approach that would defy congressional intent and effect the
allocation of a significant portion of these funds. ABC and our members
are concerned this EO could limit the ultimate success of the
bipartisan bill and the communities it is meant to benefit.
PLA mandates unfairly discourage competition from quality,
qualified nonunion contractors and their employees, who comprise 87.4%
of the private U.S. construction industry workforce. PLA mandates also
effectively prevent many small,
women-, veteran- and minority-owned construction businesses and their
workforce from participating in federally funded construction projects.
Importantly, we believe that any federal investment in construction,
including our nation's infrastructure, must ensure opportunity to all
Americans, regardless of labor affiliation.
Executive Order 14063 would direct all federal agencies to require
PLAs on federal construction projects exceeding $35 million in total
value to ``promote the economy and efficiency in Federal procurement.''
However, multiple studies of hundreds of taxpayer-funded school
construction projects found that PLA mandates increase the cost of
construction by 12% to 20% compared to similar non-PLA projects.
In addition, recent government-mandated PLAs on federal and
federally assisted projects have resulted in litigation, reduced
competition, increased costs, needless delays and poor local hiring
outcomes. Simply put, hardworking taxpayers are getting less and paying
more when PLAs are encouraged or mandated during the procurement of
federal and federally assisted construction projects.
The administration has a unique opportunity to uphold the
bipartisan work included in the Infrastructure Investment and Jobs Act
(Public Law 117-58) and other legislation that funds critical
construction projects throughout the country.
ABC members, along with many other construction employers, provide
well-paying jobs and benefits for their employees. ABC and our
undersigned state chapters and members support fair and open
competition and oppose government-mandated PLAs on federal and
federally assisted projects because hardworking taxpayers deserve more
efficient and effective policies that will encourage all qualified
contractors and their skilled workforce to compete to build long-
lasting, quality projects at the best price.
Sincerely,
Associated Builders and Contractors.

[Editor's note: The 17-page list of ABC State chapter and member
company signatories is retained in committee files and available online
at https://www.abc.org/
Portals/1/2021%20Files/Government%20Affairs/Legislative/ABC%20and%20
Members%20White%20House%20PLA%20EO%20Letter.pdf?ver=2022-04-06-122001-
997&timestamp=1649262007681]

Letter of February 15, 2022, to President Biden from American Fire
Sprinkler Association et al., Submitted for the Record by Hon. Brian
Babin
February 15, 2022.
The Honorable Joseph R. Biden Jr.,
The White House,
1600 Pennsylvania Ave., Washington DC 20500.
Dear President Biden:
The diverse coalition of undersigned associations and organizations
representing the interests of tens of thousands of companies and
millions of skilled employees in the U.S. construction industry--
building the foundation of America's economy--strongly opposes your
administration's efforts to encourage and require controversial
government-mandated project labor agreements on federal and federally
assisted construction contracts funded by taxpayers.
We applaud the administration's leadership to improve and build new
roads, bridges, schools, affordable housing and communications, water,
energy and transportation systems in urgent need of public and private
investment in order to keep America competitive in a global economy.
However, Executive Order 14063,\1\ which requires PLAs on federal
construction contracts exceeding $35 million, and other policies
encouraging PLAs on federally assisted projects via grant programs
administered by federal agencies for state and local governments,\2\
will undermine taxpayer investment in public works projects financed by
the Infrastructure Investments and Jobs Act of 2021 and additional
bipartisan legislation passed by Congress and signed into law free from
language requiring or encouraging the use of PLAs.
---------------------------------------------------------------------------
\1\ Executive Order 14063, Executive Order Executive Order on Use
of Project Labor Agreements For Federal Construction Projects, Signed
Feb. 4, 2022.
\2\ Federal dollars distributed to state and local governments via
multiple grant programs administered by the departments of Treasury,
Transportation, Agriculture and Interior encourage state and local
applicants to mandate PLAs on water, sewer, broadband, offshore wind,
energy and infrastructure projects.
---------------------------------------------------------------------------
The administration's flawed rationale justifying pro-PLA policies
\3\ ignores marketplace realities and broad opposition to government-
mandated PLAs within the construction industry. The truth is
government-mandated PLAs needlessly increase costs for taxpayers. These
jobsite-specific collective bargaining agreements unique to the
construction industry unfairly limit competition by some of America's
best contractors. Ultimately, they exclude almost 9 out of 10 of the
construction industry's workforce from the middle-class jobs and
benefits created by government investment in infrastructure, affordable
housing and clean energy projects.
---------------------------------------------------------------------------
\3\ White House Fact Sheet: President Biden Signs Executive Order
to Boost Quality of Federal Construction Projects, Feb. 3, 2022,
https://www.whitehouse.gov/briefing-room/statements-releases/2022/02/
03/fact-sheet-president-biden-signs-executive-order-to-boost-quality-
of-federal-construction-projects/.
---------------------------------------------------------------------------
When mandated by government agencies, PLAs can supersede and
interfere with existing collective bargaining agreements contractors
have already negotiated with various unions and prevent firms from
using labor from certain unions, which is why some union organizations
and contracting groups oppose government-mandated PLAs.\4\
---------------------------------------------------------------------------
\4\ Union Leaders and Contractors Oppose Government-Mandated
Project Labor Agreements Too, March 1, 2021, https://tinyurl.com/
yc727s58.
---------------------------------------------------------------------------
In addition, typical terms within PLAs unfairly discourage
competition from quality nonunion contractors and their employees, who
comprise 87.4% of the private U.S. construction industry workforce,
according to the most recent U.S. Bureau of Labor Statistics data.\5\
---------------------------------------------------------------------------
\5\ See bls.gov Union Members Summary. Jan. 20, 2022, https://
www.bls.gov/news.release/union2.nr0.htm.
---------------------------------------------------------------------------
For example, a PLA typically requires companies to agree to
recognize unions as the representatives of their employees on that job,
use the union hiring hall to obtain most or all construction labor,
exclusively hire apprentices from union programs, follow union work
rules and pay into union benefit and multiemployer pension plans. This
forces employers whose workers have freely made the choice not to join
a union to pay ``double benefits'' into their existing employee benefit
plans and union plans and places these qualified firms at a significant
competitive disadvantage. In addition, research suggests that the few
nonunion employees permitted to work on a PLA jobsite lose 34% of wages
and benefits unless they pay union dues and/or join a union and meet
benefits plan vesting schedules.\6\ In short, these anti-competitive
provisions in typical PLAs promote wage theft, eliminate employee
choice and make it extremely difficult for many nonunion, and typically
small, minority- or women-owned firms to win public works contracts
subject to anti-competitive PLAs.
---------------------------------------------------------------------------
\6\ McGowan, John R., PHD, CPA, Government-Mandated Project Labor
Agreements Result in Lost and Stolen Wages for Employees and Excessive
Costs and Liability Exposure for Employers, October 2021.
---------------------------------------------------------------------------
The administration's broad assertion that businesses not affiliated
with unions are unable to deliver safe, on-time, on-budget government
construction projects while obeying federal labor laws and paying high
wages to employees is unfounded. For example, federal government data
indicates that, of the approximately 2,000 large-scale federal
construction contracts procured from FY 2009 to FY 2021 subject to
President Obama's Executive Order 13502 pro-PLA policy,\7\ at least 50%
of contracts were awarded to prime contractors not signatory to
unions.\8\ In addition, federal agency contracting officers chose to
require PLAs on just 12 large-scale federal construction contracts out
of more than 2,000 opportunities. There were no reports of widespread
cost overruns, delays, labor unrest or poor-quality construction on
non-PLA projects, indicating that PLA mandates are not needed to ensure
economy and efficiency in government contracting.\9\
---------------------------------------------------------------------------
\7\ President Obama's Executive Order 13502 encourages federal
agencies, on a case-by-case basis, to require PLAs on federal
construction projects exceeding $25 million in total value and permits
states and localities to mandate PLAs on federally assisted projects in
order to ``promote the economy and efficiency in federal procurement.''
See FAR Case 2009-005, Use of Project Labor Agreements for Federal
Construction Projects, published April 13, 2020, effective May 13,
2010, and Executive Order 13502, Use of Project Labor Agreements for
Federal Construction Projects, signed Feb. 6, 2009, (https://
www.govinfo.gov/content/pkg/FR-2009-02-11/pdf/E9-3113.pdf).
\8\ Federal contract award data downloaded from usaspending.gov
compared to list of nonunion general contractors, December 2021.
\9\ With or without a PLA, all federal projects are subject to
federal Davis-Bacon prevailing wage regulations, which typically
require union-scale wages for building, heavy and highway projects
where PLAs are typically considered.
---------------------------------------------------------------------------
However, government-mandated PLAs on federal and federally assisted
projects \10\ during this time period have resulted in reduced
competition, increased costs, delays, poor local hiring outcomes and
litigation. In addition, multiple studies of hundreds of taxpayer-
funded affordable housing \11\ and school construction projects found
that government PLA mandates increase the cost of construction by 12%
to 20% compared to similar non-PLA projects already subjected to state
prevailing wage regulations.\12\
---------------------------------------------------------------------------
\10\ https://thetruthaboutplas.com/2021/03/10/government-mandated-
project-labor-agreement-failures-on-federal-and-federally-assisted-
construction-projects/.
\11\ Ward, Jason M., The Effects of Project Labor Agreements on the
Production of Affordable Housing: Evidence from Proposition HHH. Santa
Monica, CA: RAND Corporation, 2021. https://www.rand.org/pubs/
research_reports/RRA1362-1.html.
\12\ See multiple studies measuring the impact of PLA mandates on
public school construction already subject to state prevailing wage
laws in Connecticut, Massachusetts, New Jersey, New York and Ohio by
the Beacon Hill Institute (http://beaconhill.org/labor-economics/); an
October 2010 report by the New Jersey Department of Labor and Workforce
Development, Annual Report to the Governor and Legislature: Use of
Project Labor Agreements in Public Works Building Projects in Fiscal
Year 2008 (https://www.nj.gov/labor/forms_pdfs/legal/2010/
PLAReportOct2010.pdf); and a 2011 study by the National University
System Institute for Policy Research, Measuring the Cost of Project
Labor Agreements on School Construction in California (http://
www.nusinstitute.org/assets/resources/pageResources/Measuring-the-Cost-
of-Project-Labor-Agreements-on-School-Construction-in-California.pdf).
---------------------------------------------------------------------------
In short, hardworking taxpayers are getting less and paying more
when PLAs are encouraged or mandated by the government on federal and
federally assisted construction projects. In addition, PLA requirements
will exacerbate the construction industry's skilled labor shortage of
nearly 500,000 workers, reduce competition from experienced contractors
and undermine the Biden administration's ability to meet its
infrastructure, affordable housing and clean energy agenda without
strong participation from businesses and construction workers directly
harmed by anti-competitive and costly pro-PLA policies.
Our coalition asks you to promote inclusive, win-win policies that
welcome all of America's construction industry to compete to rebuild
our nation's infrastructure, increase accountability and reduce waste
and favoritism in the procurement of federal and federally assisted
construction projects. Ensuring fair and open competition on taxpayer-
funded construction projects will ultimately result in savings to
taxpayers, more opportunities for all qualified small, minority- and
women-owned businesses in the construction industry and the completion
of more quality infrastructure projects on time and on budget.
Sincerely,
American Fire Sprinkler Association.
American Pipeline Contractors Association.
American Road & Transportation Builders Association.
Associated Builders and Contractors.
Business Coalition for Fair Competition.
Construction Industry Round Table.
Electronic Security Association.
Independent Electrical Contractors.
National Association of Home Builders.
National Black Chamber of Commerce.
National Ready Mixed Concrete Association.
National Stone, Sand & Gravel Association.
National Utility Contractors Association.
Plastics Pipe Institute.
Power and Communication Contractors Association.
Small Business and Entrepreneurship Council.

Dr. Babin. Can you please explain, Ms. Karst, how
Government-mandated PLAs are hurting your industry?
Ms. Karst. Again, as I said before, I have no experience on
a PLA. I have read about PLAs, I can rely on the knowledge of
my fellow contractors in AGC. And the reality is that what I do
as a contractor, and what the 87 percent that you just talked
about do, is we provide good jobs for our employees. We pay our
employees well, we pay our employees great benefits--in some
cases, better benefits than are in the unions.
If our employees were forced to go on a project labor
agreement, one of the things that could happen in our area,
where there really is no union representation, is they would be
forced to pay union dues for union benefits that they would
never be able to take part of.
So, as far as--we are--I have a saying in our company--the
people come first. And I really believe that, in order to have
a good business, I have to treat my people well. I can't
survive without treating my people well, and I don't need the
Government to tell me how to do that. I know instinctively how
to take care of my employees. And if I didn't, I would not have
the 150 employees that Congressman Johnson talked to me about.
And so, what I am advocating for is letting us run our
businesses the way it is best for the area that we live in.
Dr. Babin. Absolutely, I could not agree more. And I don't
have any further followup questions, so, I will yield that
back.
Thank you, Ms. Karst, I appreciate it.
Ms. Williams of Georgia [presiding]. Mr. Garcia is
recognized for 5 minutes.
Mr. Garcia of Illinois. Thank you, Madam Chair and Chair
DeFazio, for holding this hearing on workforce development and
job creation in the surface transportation industry. This issue
is very close to my heart and very important to my district,
which is a heavily Latino district in Chicago that has a lot of
transportation, construction, and contracting businesses.
The Infrastructure Investment and Jobs Act authorizes $1.2
trillion to invest in our infrastructure, including $660
billion for the U.S. Department of Transportation. This level
of investment is historic, but we ensure the benefits of this
funding flow from States, transit agencies, and prime
contractors to Black and Latino businesses and workers.
For too long, minority businesses, especially Black and
Latino businesses, have not received an adequate portion of
contracts in the transportation, construction, and contracting
industries. That discrimination not only shatters the hopes and
dreams of many business owners and workers, but ends up leading
to disinvestment in these same Latino and Black communities.
There are some really important programs in the IIJA that
will help make meaningful progress in giving current and future
Black and Latino transportation businesses and workers
opportunities for success, including the U.S. Department of
Transportation's Disadvantaged Business Enterprise, or DBE,
program.
But we have got to do more. Next week, I will introduce
comprehensive legislation to improve and strengthen the U.S.
Department of Transportation's Disadvantaged Business
Enterprise program and the Small Business Administration's 8(a)
Business Development program. This legislation will strengthen
these programs by increasing the personal net worth caps to
account for inflation, conforming to the U.S. Department of
Transportation's DBE size standard with the Small Business
Administration standards, and create universal recognition of
DBE certifications. That means that DBE certifications will now
be recognized across the States, instead of the current
patchwork system.
I look forward to working with members of this committee
and stakeholders on my legislation addressing these issues.
A question for Ms. Rai.
In your testimony, you highlight some of these issues you
would like to see addressed in the DBE program, like the
personal net worth cap, or the DOT size standards that my
legislation would propose addressing. In your opinion, do you
believe this committee should advance and mark up legislation
that would accomplish those goals?
Ms. Rai. Thank you so much, Representative Garcia, and for
your leadership in this effort.
Yes, COMTO would like to see closer oversight by DBE
officers to avoid fraudulent front companies through more
vigorous training programs for certification and compliance
officers, and a stronger and clear definition of ``good faith
efforts'' with fewer waivers from DBE goals granted to
majority-owned firms.
In addition, you spoke about DBE size standards. We do
support action that would conform the U.S. DOT's DBE size
standard with the Small Business Administration standards. We
believe it is a simple fix to a big problem.
In the interest of fairness and consistency, and the
survival of small, minority-owned businesses, we believe that
the U.S. DOT should use the Federal Aviation Administration's
model, and use SBA size standards when making determinations
with regard to small business status.
Mr. Garcia of Illinois. Thank you very much.
Ms. Kupcak, do you agree that this committee and the U.S.
Department of Transportation should work on legislative and
regulatory fixes to these issues, including the ones you raised
in your testimony?
Ms. Kupcak. Representative Garcia, thank you so much for
your question and for your comments.
Yes, I do believe that the committee and Congress have an
opportunity to--without burdening or adding significant
administrative burdens to employers--enact policy and
strategies that we have seen that have demonstrated, in the
real world, outcomes that are not just good for business, but
are good for workers.
And I would like to commend Ms. Karst, as president of BX
Civil & Construction, that she is committed to the workers that
she employs. But I would also say that not every employer
believes in or does the right thing. And so, making sure that
public investments are high road for workers and for
businesses, including DBEs, it is--that is a critical moment
for us to shift historic marginalization of those entities, and
ensure that all Americans working on publicly funded projects
have access to economic security and dignity in their work.
I hope that----
Mr. Garcia of Illinois [interrupting]. Thank you so much.
Ms. Kupcak [continuing]. Answers your question. Thank you.
Mr. Garcia of Illinois. Thank you.
And I yield back, Madam Chair.
Ms. Williams of Georgia. Mr. LaMalfa is recognized for 5
minutes.
Mr. LaMalfa. Thank you. I appreciate the opportunity here.
Let me ask Ms. Karst about--with the--I don't know how much has
been covered today, but the local hire issue, OK, means a great
deal to people in the districts, especially--we have disaster
issues that happen on certain jobs that post-disaster would be
very helpful to have local input and local work on that, and
construction projects, all manner of things. And Government
sometimes claims, hey, it is going to make an effort to
strengthen and utilize local hire.
But what is your take on these preferences, this emphasis
on local hire? What does that really mean as far as the work of
getting the contracting done, the contractors being able to do
their job, and using their own corps versus, as much as
possible, of a local hire?
Ms. Karst. Again, I am going to fall back to the same word,
``flexibility.'' The reality is that my employees are local
employees that have jobs with me.
My jobs aren't always local. And so, I may have to displace
my workers if I am on a job that is somewhere else.
And in reality--I will just give you a quick, real example.
The unemployment in South Dakota in my area is about 2.6
percent. My biggest project is 3 hours away, in Norfolk,
Nebraska. The unemployment is about 2.1 percent. There are no
workers for me to hire locally there. We are trying to, because
we need workers, so, we would hire locally. We have a huge
advertising campaign to go there. But I think what we need to
do is provide the flexibility to do what makes a construction
project----
Mr. LaMalfa [interrupting]. What is your experience with
the flexibility on saying, hey, there is low unemployment in
these areas. Is there some kind of factor that kicks in, some
kind of trigger or what have you, that would say local goals
are being met, we don't need to do that, and still fulfill the
spirit of it? Do you find that is being written into any of
these?
Ms. Karst. At least we need that flexibility.
Mr. LaMalfa. You need it. But do you find that that occurs
currently, whether it might be----
Ms. Karst. I----
Mr. LaMalfa [continuing]. Provisions?
Ms. Karst. So, this is--the example that I have of local
hire is I work also--we have quite a few reservations in South
Dakota, and so, there are local hire-type arrangements with the
Tribes. And we do hire people locally, and those are usually
based on quotas. And what we find, it works fine as long as it
is a percentage of my crew that I can keep my crew safe while
they are out there working.
So, for example, if I am going to bring a crew of 20 people
out there, I can't have 20 new people out there, because I
can't assure the safety and the safeness of the work that needs
to happen out there. So, as long as I have the flexibility to
supplement my existing forces, who I know is trained on how to
do the work, I can deal with the local hire.
But the other thing that I will tell you, that there is--a
little bit of a fallacy about the local hire, from my
experience, is will they stay with us? Will they stay in the
industry? And that is what we have found in 30 years of working
on the reservations. We go out there, we provide good jobs, we
find good employees, we find some good employees, and we want
them to stay with us, and to find careers in our industry, and
we haven't had very much luck with that.
Mr. LaMalfa. OK. So, do you find it might make certain
contractors avoid bidding on certain projects if they find that
those constraints seem too narrow?
Ms. Karst. Absolutely. There are people that won't bid on
jobs because of that.
Mr. LaMalfa. OK. What do you find--a lot of discussion in
committee here today about supply, not just to local hires, but
we are hearing a lot about minority hire, and gender hire, or
even, in some cases, disability hire, disabled veterans and
such. And so, each certain--depending on the project, they have
to have a percentage of all those things on a project.
And what I hear about anecdotally at home is that, like,
well, they have to go out and find somebody and, even in some
cases, make up a shell corporation fitting one of these--a
shell company, a shell contractor, subcontractor, to get this
done. How much problem do you find it is trying to fulfill some
of these numbers in some cases?
Ms. Karst. I can't tell you that I have a lot of experience
working on contracts that have given me certain numbers.
I can tell you that what we do is we need every employee we
can get. As a female in the industry who started 30 years ago,
the cause of trying to find female trades workers is huge. I
mean, the numbers that the chairman talked about being 10
percent of women in the industry really become much less when
you start getting to the trades. When you start getting to
skilled trades in the construction industry, the numbers that I
see are more like 3 or 4 percent.
Mr. LaMalfa. So, where is the fault in that? Is it the
contractor? Is it somewhere in the education process?
I mean, if you are trying to force feed in there, and you
don't have the people that are up for it, where is the fix?
Ms. Karst. I think what AGC would advocate for is more
funding to CTE programs, and forcing those types of programs
to----
Ms. Williams of Georgia [interrupting]. The gentleman's
time has expired.
Ms. Karst [continuing]. Emails, that kind of thing.
Mr. LaMalfa. Thank you.
I yield back.
Ms. Williams of Georgia. I recognize myself for 5 minutes.
Ms. Smith, your testimony highlights a key issue. Not only
are women and minorities underrepresented in the construction
workforce at large, but when you consider industry positions
ranked ``official'' and ``supervisor,'' there is an even
greater disparity. How can Congress support State efforts to
move women and minorities into higher ranking positions within
the industry?
Ms. Smith. Thank you for that question, Representative, and
I would like to address that.
One of the challenges first I want to mention is how women
and minorities, especially women who are minorities, are
identified at the Federal level. I think that needs addressing.
Usually you have non-minority versus minority, and then gender.
So, I do think that supporting programs designated for women of
color in particular would be very, very beneficial to the
entire industry.
How do we get women and minorities to a higher level?
Because they are underrepresented. One of the things that our
agency is doing is looking at creating partnership and
collaborations with non-traditional partners, working with
collaboration agreements with our community colleges, with our
university systems, our HBCUs, but also creating incubator-type
programs to really enhance the transportation industry, working
with our local companies who need these skilled laborers to
help train the workforce.
Something that is innovative that North Carolina did was
actually our internal State agency began to work with our OJT
program itself to train individuals for recruitment back to the
agency, and also back into the industry. Those are just one of
many things that we can do to support the upskilling of these
workers.
Ms. Williams of Georgia. Thank you, Ms. Smith.
Ms. Kupcak, how have barriers to career advancement in the
construction industry impacted tradeswomen and other
underrepresented groups?
Ms. Kupcak. Thank you, Representative, for your question.
It is an important one.
Certainly, getting into the construction trades is
important, and I believe that does begin with career education
early on, even into middle school and high school. And myself
and my colleagues across the country who run community
organizations such as Oregon Tradeswomen, we do a lot of that
work.
But another barrier is the industry's continued sort of
macho attitude and toxic jobsite culture that drives good
tradeswomen and people of color to leave the industry when
those kinds of behaviors are allowed to become part of our
workplace. And the efforts underway and referenced in the
memorandum of agreement between the U.S. Department of
Transportation and Department of Labor earlier this year
referencing the need for additional equity measures and anti-
harassment measures is certainly key in retaining qualified,
skilled, and diverse workers.
I hope that answers your question.
Ms. Williams of Georgia. Thank you. Under the competitive
bidding laws, federally assisted construction contracts are
generally required to be awarded to the lowest cost bidder.
Prevailing wage requirements ensure that federally assisted
projects are not awarded to unscrupulous contractors who
underbid the competition with low wages or poor benefits for
workers.
Mr. Booker, can you discuss the impact to construction
workers if prevailing wage requirements are not in place?
And do prevailing wage requirements only benefit union
members?
Mr. Booker. Prevailing wage requirements benefit all
workers. And in the communities where the wages are higher, it
lifts the wages for--whether or not you are a union worker or
not a union worker. That is what the Government--what the mark
is.
And like Kari testified earlier, the wage rates, the
prevailing wage in her home State, are far below of what is
going on out there, and what people are being paid. So, the
prevailing wage boosts the economy. It boosts the worker. We
are talking--how do you fight inflation? How do you do that?
Cutting wages is not the way to do that. Making sure that
people have a job, a job with dignity, a job with a healthcare
benefit, a job with a pension, that is how you counter these
things. And making sure that you value and you treasure the
people who are applying their skills day in and day out, that
is who we represent, and that is what we do day in and day out.
Ms. Williams of Georgia. Thank you.
Director Lew, as you know, the IIJA provided new authority
for States and cities to implement contracting requirements
that address local needs on federally assisted infrastructure
projects. Why is it necessary for States and cities to have
these types of flexibilities in setting the terms of their
construction contracts?
Ms. Lew. Thanks for the question, and I think, looking at
the issue I addressed in my testimony, it is really important
that, when we think about building infrastructure projects, we
think about those as fitting into a context that is part of a
community, right?
We all talk about infrastructure spending in terms of big
numbers and big job numbers. What that means is that every
dollar we put in supports somebody's employment. And if we are
trying to make sure that there is equity in the way that that
is distributed, having these mechanisms to sort of put the jobs
in the places that are also bearing the impact of the projects
is really important.
I think there is also----
Ms. Williams of Georgia [interrupting]. Unfortunately,
Director Lew, my time has expired, but I would love to get this
full answer so that we can have it on the record.
Ms. Lew. Absolutely, happy to submit a longer answer for
the record.
Ms. Williams of Georgia. Thank you so much.
Mr. Fitzpatrick is now recognized for 5 minutes.
Mr. Fitzpatrick. Thank you, Madam Chairwoman.
Mr. Booker, good to see you, sir. Thanks for joining us
today. In your opening statement you had mentioned registered
apprenticeship programs. I, along with many of our huge
supporters of building trades, I am a big believer in these
programs, and I believe they can help us have that skilled
workforce that we need to be competitive in the future. And it
is critical that the next generation of workers be as
specialized as the current ones.
You had mentioned that your registered apprenticeship
programs offer a debt-free career path. So, I have, really, a
three-part question.
First, could you tell us what costs are covered, and which
costs aren't?
Second, are apprentices themselves responsible for any
costs associated with the program?
And then lastly, do you receive any Federal money for your
registered programs?
Mr. Booker. Thank you for the question, Congressman
Fitzpatrick, and thank you for your support on these previous
issues.
So, to answer your question, if I get them right, on debt-
free I did testify earlier that registered apprenticeship is
debt-free. Our system allows for an apprentice to go to school
while he works. It is an earn-as-you-learn program. So, as you
enter the program, you are getting classroom training nights
and on weekends. You are getting your hours to graduate through
the apprenticeship program. That is no out-of-pocket costs for
you. You are actually getting paid at a scaled rate based on
what the prevailing wage is, what the collectively bargained
rate is, and you are not paying any money out of pocket.
As far as the individual cost to the apprentice, there is
no schooling cost. You may have to pay transportation costs,
you may have to pay, if there are requirements for the job you
are at for a particular type of clothing or PPE that isn't
covered by the employer, there is potential for out-of-pocket
costs there. But as far as the schooling and the education,
there is no cost for that.
And when it comes to Federal assistance, we don't have any.
We have negotiated through our collective bargaining agreements
for decades a system in which our members partnered with our
contractors. And rather than put those wages on their check,
they have deferred those moneys, or they put those moneys into
these training contributions. And those training contributions
have added up, as I testified, to over $2 billion annually that
we spend on training.
So, the individual apprentice doesn't spend any money, the
Federal Government doesn't spend any money. That is a
relationship, a collective bargaining relationship that we, as
the unions, worked with collectively with our contractor
partners to put training as a priority to make sure that we
have the world's best, safest, and skilled workforce.
Mr. Fitzpatrick. Thank you, Mr. Booker, for answering that
on the record, because we want that on the record as we are
pushing hard to advance apprenticeship programs. It is critical
to rebuilding the nuts and bolts of America, particularly
following on the heels of the bipartisan infrastructure bill.
And there is no better way to deal with our labor and workforce
shortages than invest heavily in these apprenticeship programs.
Madam Chair, I yield back.
Ms. Williams of Georgia. Mrs. Steel is now recognized for 5
minutes.
[No response.]
Ms. Williams of Georgia. Mr. Stauber is now recognized for
5 minutes.
Mr. Stauber. Thank you, Madam Chair. Thank you all for
being here today.
Whenever we talk about investments in our infrastructure,
we should be talking about the real infrastructure that
ordinary Americans rely on: roads, bridges, broadband, ports,
airports, and the like. These same infrastructure investments
are the very ones that employ my neighbors and our hard-working
union men and women.
Almost every day I hear from employers and unions back home
about their desperate need for a skilled workforce. Without a
properly trained and prepared workforce pipeline, our trades
industry will continue to see a reduction of qualified talent
for decades to come.
This is why I am very proud of the fact that I was able to
join several colleagues and introduce and pass through the
House the National Apprenticeship Act on a bipartisan basis. I
am eager to see that bill pass the Senate and get signed into
law, so that we can keep staffing up our halls and get labor
organized on our projects.
I was also proud to have introduced an amendment in the
Natural Resources Committee to strengthen and support PLAs,
which enjoyed unanimous support from Republicans.
Mr. Booker, can you please speak a little bit about the
importance of registered apprenticeships to the workforce
pipeline and future infrastructure projects and investments?
Mr. Booker. Yes, thank you for the question. Registered
apprenticeship is the foundation of our unions, and it is,
quite frankly, the foundation of our country. When you talk
about the investment that we are going to have in the next 10
years, and the acts of this Congress to put real money behind
this, you have got to have that workforce. You have got to have
that workforce in order to do that.
We believe, and we know that our system is like no other.
And the training that we do, whether it is a 3-, 4-, or 5-year
program, to give the people the skill sets, to apply those
skill sets as they are building the Nation's infrastructure so
that upon completion of their apprenticeship, 3, 4, 5 years of
completion, they are a journeyman, they are a journey person.
They are able to apply those skills for the rest of their life
and be firmly entrenched in the middle class.
Mr. Stauber. And the apprenticeship program--we talked
about cost, which is little to none, but the experience you get
is second to none.
Can you also please speak about how permitting delays and
frivolous lawsuits kill skilled jobs and prevent good union men
and women from getting the job done on time and on budget?
Mr. Booker. Yes. And the permitting in this country has
gotten to the point where we have lost predictability. And
anybody, whether you are a contractor, an owner, a developer, a
craftsworker, you want to know what happens on Monday. You want
to know you are going to be able to go to work, you are going
to be able to perform your craft, you are going to be able to
get paid.
If you don't have the permits in place, and if you are
going through this arduous process, it is lengthening the
process to get the actual project built. And, as we have talked
about, materials and cost of how--that they have increased over
the years. If you were expecting to build a project starting in
2018, and 4 years later you still haven't built that project,
the material costs alone have increased. So, it is creating a
backlog of problems, and it is creating a problem.
And again, it is not just a union versus non-union problem.
Any project that is not permitted is preventing people from
going to work.
Mr. Stauber. Right. Can we talk briefly about the NEPA
process?
Are you encouraging a change in the NEPA process? And I
will give you an example. We have a mine in northern Minnesota
that has been in its 19th year of permitting that had a PLA or
what have you, and through frivolous lawsuits, et cetera. Are
you working to support a change in the NEPA regulations and
laws to reduce the redundancy and the frivolous lawsuits?
Mr. Booker. We have supported previous legislation in this
body and at the Senate where you are looking to streamline the
process. I believe in a permitting process. I believe that you
have to go through the process to make sure. But you shouldn't
have to go through the same process six times to get the same
project the permit that it needs.
So, if we have the ability to have Federal agencies, State
agencies, local agencies look at the same time for what is
needed, so then once you have--that decision is made, you have
a window, lawsuits are done, cleared, and out of the way, then
we are able to go to work. So, we are supportive of that.
Mr. Stauber. The certainty is really important.
And I will say you brought up timely projects. In northern
Minnesota, we don't have a 12-month season. We have 8, 9, and
sometimes we are lucky and get 10 months in. And so, the NEPA
changes and these policies need to be changed to allow those
folks in the Northern States to be able to get these projects
done, because sometimes just a frivolous lawsuit or a delay
will take a whole other year, a whole other construction year,
which is going to delay the project even more so.
I appreciate all the comments here, and I just appreciate
having you answer these questions.
Thank you and, Madam Chair, I yield back.
Ms. Williams of Georgia. Mrs. Steel is recognized for 5
minutes.
[No response.]
Ms. Williams of Georgia. That concludes our hearing.
I would like to thank each of the witnesses for your
testimony today. Your comments have been informative and very
helpful, especially for me.
I ask unanimous consent that the record of today's hearing
remain open until such time as our witnesses have provided
answers to any questions that may be submitted to them in
writing.
I also ask unanimous consent that the record remain open
for 15 days for any additional comments and information
submitted by Members or witnesses to be included in the record
of today's hearing.
Without objection----
Mr. Rodney Davis of Illinois [interrupting]. I object. Just
kidding.
[Laughter.]
Ms. Williams of Georgia [continuing]. So ordered.
This subcommittee stands adjourned.
[Whereupon, at 3:58 p.m., the subcommittee was adjourned.]

Submissions for the Record

----------

Prepared Statement of Hon. Sam Graves, a Representative in Congress
from the State of Missouri, and Ranking Member, Committee on
Transportation and Infrastructure
Thank you, Chair Norton, and thank you to our witnesses for being
here today.
I appreciate the flexibility the Committee provided all members by
postponing this hearing and allowing everyone to observe the passing of
our former Chairman, Don Young.
And I appreciate the flexibility shown by the Committee to allow
witnesses to testify in person or via Zoom.
And while I appreciate the flexibility the Committee continues to
show members and witnesses, it would be nice if this Administration
also showed a little flexibility to the communities we all represent.
Their one-size-fits-all workforce polices simply will not fit the
local needs of every community throughout the country.
I anticipate a robust discussion today about efforts to ensure that
our country has a readily available, professional, skilled-craft
workforce--in sufficient numbers--that can deliver transportation
projects across the country on time and on budget.
Communities must have the flexibility to make choices and decisions
based on their local needs.
But the Biden Administration isn't providing flexibility, and
continues to push policies that favors certain workers over others
without regard to state, local, and other market conditions.
We're already anticipating the need for more construction workers,
yet this Administration is adding more onerous requirements that will
only further delay investments and erode the value of this
infrastructure investment, on top of increased costs from runaway
inflation.
Government policies must remain flexible, ensuring that all
communities have the ability to locate skilled craftsmen and
craftswomen that can meet their local project needs.
Thank you, Chair Norton. I yield back.

Statement of the American Association of State Highway and
Transportation Officials, Submitted for the Record by Hon. Eleanor
Holmes Norton
Introduction
The American Association of State Highway and Transportation
Officials (AASHTO) appreciates the opportunity to submit this Statement
for the Record to the Subcommittee on Highways and Transit. As the
association that represents the transportation departments of all 50
States, Washington, DC, and Puerto Rico, AASHTO provides the
perspective of the nation's state departments of transportation (state
DOTs) on a wide range of transportation policy matters. AASHTO is
pleased to provide our perspectives as part of the hearing titled
``Examining Workforce Development and Job Creation in Surface
Transportation Construction''.
AASHTO is grateful for the work of this Subcommittee and the full
Committee on Transportation and Infrastructure for your work to pass
the Infrastructure Investment and Jobs Act (IIJA) last year. The IIJA
was a truly monumental piece of legislation that will address many of
this nation's transportation infrastructure investment needs. AASHTO
appreciates the increased federal funding in the IIJA for all modes of
surface transportation and are working with the U.S. Department of
Transportation on the implementation of this important legislation.
However, this increase in federal funding, and the commensurate
increase in state funding for transportation infrastructure, brings
with it an increased challenge related to workforce development and
workforce retention.
State DOTs are increasingly utilizing strategic workforce
management to predict, prepare for and manage workforce needs. Congress
is a key partner in addressing these challenges and AASHTO appreciates
the ongoing work in this area by this Subcommittee and Congress.
State DOTs and Workforce Development
State DOTs need proven and effective workforce development and
workforce retention strategies to manage complex workforce management
issues. State DOTs strive to have the capacity to respond to a changing
work environment due to the COVID-19 pandemic and the increased use of
technology to plan, implement and deliver the transportation system
this country relies upon today and into the future. This means State
DOTs need to remain innovative and nimble to respond to a myriad of
workforce and workplace challenges.
Strategic workforce management, the systematic approach used to
predict, prepare for, and manage workforce needs, is an urgent and
critical issue for state DOTs. DOTs across the nation have increasingly
expressed concerns about aligning the needs and priorities of the DOT
with those of its workforce to place the agency in the best position
for ongoing success. As technology and innovation advance, and public
expectations and demands for more service delivery rise, agencies will
need to reimagine their workforce. DOT constituents are increasingly
demanding transparency, accountability, increased personalized
communication, and on-demand service delivery.
The new technologies associated with this work require different
skillsets and competencies than those of traditional DOT employees.
Also, as the new generation entering the workforce seeks agility and
innovation, and brings a service-delivery mindset, state DOTs need to
adjust to the culture of the new workforce to recruit and retain these
employees. Restructuring, increased diversity and inclusion, greater
employee buy-in and collaboration, and organizational culture change
may be required for DOTs to succeed in the future.
Workforce talent management is experiencing increased workforce
movement as well as talent shortages. As a large portion of the DOT
workforce is comprised of baby boomers, their impending retirement
could result in significant knowledge loss. These retirements will also
result in employees being promoting more quickly and, therefore,
entering new positions with less experience and skills. In addition,
fewer people are entering the transportation industry as a career, and
the new skillsets needed increase recruitment and retention challenges.
State DOTs are using innovative approaches to address workforce
management issues. For example, seven state DOTs are currently
partnering with the Center for Employment Opportunities (CEO) to
provide employment to formerly incarcerated individuals. CEO crews
support the state DOTs with litter abatement, vegetation management and
landscaping, bridge and structure maintenance, and snow removal.
CEO's partnership with the California Department of Transportation
(Caltrans) began in 2011 and CEO now has nearly 30 crews across the
state. CEO provides reliable, high-quality service throughout
California, managing litter abatement along highways in 8 counties.
These crews provide immediate employment to over 2,000 of California's
returning citizens.
CEO's partnership with the Colorado Department of Transportation
(CDOT) began in May 2017 to help address a labor shortage that
prevented CDOT from keeping up with necessary bridge maintenance. CEO
and CDOT now operate 4 crews around the Denver and Colorado Springs
metro areas.
AASHTO Strategic Plan
AASHTO's recently developed Strategic Plan (Plan) includes a goal
and objective to ``Build Transportation Workforce Capabilities''. To
implement this goal and objective, the Plan includes a strategy to
proactively shape the future of the transportation workforce, provide
the resources to fill skill gaps, build capacity and plan for the
future. This strategy includes several elements, including:
Develop the next generation of leaders and workforce
Provide the resources to meet evolving business needs
Create a workplace culture of innovation and continuous
improvement
Support attracting and retaining talent
Expand capacity-building products and services
Provide Knowledge Management resources
Pursue funding for workforce development efforts
Increase diversity, equity and inclusion
AASHTO Subcommittee on Transportation Workforce Management
To assist the state DOTs with workforce management challenges,
AASHTO is also developing the new Subcommittee on Transportation
Workforce Management within our Committee on Knowledge Management. This
Subcommittee will provide proven, effective strategies to navigate
workforce management issues and become a community of practice for
state DOTs on strategic workforce management. The Subcommittee will
address activities that enable comprehensive and intentional strategic
workforce management, such assessing workforce and workplace diversity,
equity, and inclusion, and assessing the capabilities and effectiveness
of current the workforce and identifying competency gaps.
Conclusion
State DOTs face many unique and complex workforce issues and
challenges. The different workforce and workplace demands inherent in
DOTs requires strategies and approaches specific to the nature of their
work. But through collaboration with one another and industry partners,
along with the sharing of ideas, best practices resources and
knowledge, state DOTs can lead the way in finding innovative solutions
to the problems of today and creating the opportunities of tomorrow.

Letter of April 26, 2022, to Hon. Eleanor Holmes Norton and Hon. Rodney
Davis from Kristen Swearingen, Vice President, Legislative and
Political Affairs, Associated Builders and Contractors, Submitted for
the Record by Hon. Brian Babin
April 26, 2022.
The Honorable Eleanor Holmes Norton,
Chair,
House Committee on Transportation and Infrastructure, Subcommittee on
Highways and Transit.
The Honorable Rodney Davis,
Ranking Member,
House Committee on Transportation Infrastructure, Subcommittee on
Highways and Transit.
Dear Chair Norton and Ranking Member Davis:
On behalf of Associated Builders and Contractors, a national
construction industry trade association with 69 chapters representing
more than 21,000 members, I write to comment on the U.S. House
Committee on Transportation and Infrastructure Subcommittee on Highways
and Transit hearing titled, ``Examining Workforce Development and Job
Creation in Surface Transportation Construction.''
According to the subcommittee's description, ``The purpose of this
hearing is for Members of the subcommittee to learn about the current
state of the surface transportation construction workforce, how recent
investments in American infrastructure will increase the need for a
skilled construction workforce, and how current programs and
initiatives can provide pathways into the construction sector.'' ABC is
happy to offer feedback to the subcommittee on how members can ensure
that jobs and opportunities from the recently passed Infrastructure
Investments and Jobs Act can provide pathways into the construction
sector for all Americans.
Snapshot of the Construction Industry Labor Market:
Construction is poised to power America's recovery and economic
engine, as the industry offers competitive wages and many opportunities
to both begin and advance in an industry that builds the places where
we live, work, play, worship, learn and heal.
The construction industry added 19,000 jobs on net in March,
according to ABC analysis of data released by the U.S. Bureau of Labor
Statistics. After 23 months of recovery, construction employment has at
last exceeded pre-pandemic levels. On a year-over-year basis, industry
employment has expanded by 220,000 jobs, an increase of 3.0%. However,
the construction industry continues to face many workforce development
challenges going forward, particularly the need for qualified, skilled
craft professionals, as the industry faces a shortage of 650,000
workers in 2022, according to ABC's workforce shortage model.
With the implementation of the Infrastructure Investment and Jobs
Act and the American Rescue Plan, the federal government will pump
hundreds of billions in new spending into our nation's most critical
infrastructure, and qualified craft professionals are essential to
efficiently modernize roads, bridges, energy production and other
projects across the country. However, to fully take advantage of the
investments in infrastructure, Congress should note that more
regulations and less worker freedom will make it harder to fill any
potential job created.
To help meet this demand, ABC member contractors use flexible,
competency-based and market-driven education methodologies to build a
construction workforce that is safe, skilled and productive. This all-
of-the-above approach to workforce development has produced a network
of ABC chapters and affiliates across the country that offer more than
800 apprenticeship, craft, safety and management education programs--
including more than 300 government-registered apprenticeship programs
across 20 different occupations--to build the people who build America.
ABC urges the subcommittee to consider ways in which they can
promote an all-of-the-above workforce development strategy--and not
limit the benefits of federal legislation from reaching the vast
majority of construction workers due to their labor affiliation.
Project Labor Agreements:
Of interest to the subcommittee, ABC believes that several
discriminatory policies being pursued by the Biden administration will
prevent many opportunities for the entire construction industry,
particularly small businesses, to benefit from infrastructure
investments.
On Feb. 4, President Joe Biden signed Executive Order 14063
requiring federal construction contracts greater than $35 million to be
subjected to project labor agreements. This executive order will
exacerbate the construction industry's skilled workforce shortage and
needlessly increase construction costs and reduce opportunities for
local contractors and skilled tradespeople.
Government-mandated PLAs increase the cost of construction by 12%
to 20%, reduce competition by excluding 87.4% of the construction
industry workforce and steal up to 34% of wages from the few nonunion
workers allowed to work on a PLA jobsite.
By tying federal infrastructure investments to government-mandated
project labor agreements, the Biden administration will discriminate
against the majority of our nation's small, women-, veteran- and
minority-owned businesses and workers that choose to operate on a merit
shop basis. In an industry of more than 7 million, a way to ensure that
does not happen is through the subcommittee's intention of helping
small businesses.
ABC urges the committee to consider ways to ensure that
construction firms of all labor affiliation can compete for taxpayer-
funded construction projects to rebuild their own communities. All
contracts funded by the federal government should be awarded through a
fair and competitive bidding process that allows all qualified
contractors to compete on a level playing field based on merit,
experience, quality and safety. To deliver the highest quality projects
at the best cost to taxpayers, it is critical that any federal
investment in infrastructure includes the entire construction industry.
In a pair of recent letters sent to the White House by House and
Senate lawmakers, many in Congress wrote that they believe the most
cost-effective way to rebuild infrastructure is to promote open
competition. On April 26, 16 Republican governors sent a letter
President Biden opposing policies promoting government-mandated project
labor agreements on taxpayer-funded construction projects. On April 6,
more than 1,200 ABC member and chapter signatures voiced strong
opposition in a letter to President Biden's PLA EO.
These letters also lay out concerns with other federal agency
policies promoting PLAs on federally assisted construction projects,
which would affect the allocation of funds under the $1.2 trillion
bipartisan infrastructure package, as well as other laws providing
funds for state and local governments to improve its infrastructure.
Further, ABC urges members of the subcommittee to support the Fair
and Open Competition Act, H.R. 1284, which would prevent federal
agencies and recipients of federal assistance from requiring
contractors to sign controversial project labor agreements as a
condition of winning a federal or federally assisted construction
contract. This bill would ensure that taxpayer-funded construction
contracts are awarded through fair and open competition--guaranteeing
the best value for hardworking taxpayers while prohibiting a rigged
federal procurement process.
Conclusion:
ABC encourages the subcommittee to promote inclusive, win-win
policies that welcome all of America's construction industry to compete
to rebuild our nation's crumbling infrastructure, increase
accountability and competition and reduce waste and favoritism in the
procurement of public works projects.
ABC and its members are committed to building taxpayer-funded
projects with the highest standards of safety and quality. ABC members
stand ready for the opportunity to build and maintain America's
infrastructure to the benefit of the communities that it will serve.
ABC appreciates the opportunity to comment on the committee's important
work to improve our nation's infrastructure.
Sincerely,
Kristen Swearingen,
Vice President, Legislative and Political Affairs,
Associated Builders and Contractors.

Letter of April 26, 2022, to President Biden from 16 Governors,
Submitted for the Record by Hon. Brian Babin
April 26, 2022.
President Joseph R. Biden Jr.,
The White House,
1600 Pennsylvania Ave NW, Washington, DC 20500.
Dear Mr. President,
As governors, we support policies that ensure robust competition
for taxpayer-funded construction projects that welcome all of America's
construction industry to compete to rebuild our nation's infrastructure
on an even playing field. We aim to provide value to taxpayers as we
partner with the federal government to deliver roads, bridges,
communications, water, energy, and transportation systems safely, on
time, and on budget, but we cannot deliver the best results with
onerous and unnecessary constraints.
We oppose Executive Order 14063 requiring controversial government-
mandated project labor agreements (PLAs) on federal and federally
assisted construction contracts funded by taxpayers exceeding $35
million. In addition, we oppose other federal policies promoting PLAs
on federally assisted projects via federal agency guidance and grant
programs that state and local governments can utilize to help fund
critical infrastructure projects.
When mandated by government agencies, PLAs can interfere with
existing union collective bargaining agreements and needlessly
discourage competition from quality nonunion contractors and their
employees who comprise 87.4% of the private U.S. construction industry
workforce according to the U.S. Bureau of Labor Statistics. Reducing
competition from some of the best union and nonunion construction firms
and workers will exacerbate the construction industry's skilled labor
shortage, delay projects, and increase construction costs by estimates
of 12% to 20% per project, which will result in fewer infrastructure
improvements, less construction industry job creation, and higher
taxes.
We call on you to be equitable in your treatment of America's
construction workers whether union or nonunion. In short, the
aforementioned policies will undermine taxpayer investment in billions
of dollars of forthcoming public works projects financed by the
Infrastructure Investments and Jobs Act of 2021 and additional
bipartisan legislation passed by Congress, all of which was signed into
law free from language requiring or encouraging the use of PLAs.
Three months ago, sixteen governors wrote to you seeking a flexible
partnership in implementing public works projects. The federal
government cannot do this job itself and requires the states to lead on
the execution of infrastructure initiatives. As a partner in this
endeavor, we ask again: please pull back from introducing partisan
policies into infrastructure. Taxpayers cannot afford such wasteful and
exclusionary policies.
We ask that the Office of Management and Budget--along with
respective federal agencies charged with implementation, grant
programs, draft regulations, and guidance related to legislation
funding infrastructure projects--afford states and localities maximum
regulatory flexibility free from anti-competitive and costly pro-PLA
policies. Doing so will deliver more value to taxpayers and create
opportunities for all--including small, minority-owned, and women-
owned--businesses and workers in the construction industry to compete
to build America.
Sincerely,
Governor Asa Hutchinson, State of Arkansas.
Governor Bill Lee, State of Tennessee.
Governor Ron DeSantis, State of Florida.
Governor Brian Kemp, State of Georgia.
Governor Kim Reynolds, State of Iowa.
Governor Tate Reeves, State of Mississippi.
Governor Mike Parson, State of Missouri.
Governor Pete Ricketts, State of Nebraska.
Governor Chris Sununu, State of New Hampshire.
Governor Doug Burgum, State of North Dakota.
Governor Kevin Stitt, State of Oklahoma.
Governor Henry McMaster, State of South Carolina.
Governor Kristi Noem, State of South Dakota.
Governor Greg Abbott, State of Texas.
Governor Spencer Cox, State of Utah.
Governor Mark Gordon, State of Wyoming.

cc: Mitch Landrieu, Senior Advisor and Infrastructure Implementation
Coordinator, The White House, 1600 Pennsylvania Ave NW, Washington, DC
20500.

Shalanda Young, Director, Office of Management and Budget,
Executive Office of the President, 725 17th St NW, Washington, DC
20503.

Appendix

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Questions from Hon. Eddie Bernice Johnson to Shoshana M. Lew, Executive
Director, Colorado Department of Transportation

Question 1. Director Lew, you have developed an exciting and
comprehensive approach to local hiring and training that greatly
benefits both the community and project contractor.
1.a. Do you think other states could accomplish this same goal?
Answer. It is possible for other states to accomplish this same
goal by developing strategic partnerships and clear and realistic
goals. Part of what made CDOT's Workforce Development Program
successful was enlisting the help of the Community College of Denver to
conduct thorough research to better understand the demographics of the
community and what their needs and barriers to opportunities are. There
were various organizations in the Denver metro area who were working on
bringing on-the-job training opportunities to local hires and instead
of creating our own program and potentially taking away from their
services, we partnered with these agencies who, in turn, provided
significant investments and resources to help make the Workforce
Development Program successful. It will be imperative for states to
find other agencies who are working on similar goals and join forces to
further help with recruiting and training opportunities.
States will also need to create their own goals to meet the needs
of their community. It is important for State Department of
Transportations to host focus groups with local contractors to
establish a realistic goal that project contractors can accomplish.
Creating too lofty of a goal will set a project up for pushback from
the contractor and could ultimately set them up for failure. Taking
information from the focus groups as well as community research is
critical in establishing goals that will best meet the needs of the
state and the communities they are working in.

1.b. What are some of the impediments to expanding a program like
this to other states?
Answer. Impediments could include the lack of buy-in from the
private sector. Not all contractors are on board with the amount of
effort it takes to establish a high functioning on-the-job training and
local hiring program and associated reporting that goes with trying to
ensure they are hitting their goals. If there is a lack of funding or
other forms of investments from local agencies, it may be difficult for
states to set up similar programs. CDOT greatly benefitted not only
from the Federal Highway Administration's Ladders of Opportunities
grant to help get the program up and running, but also from other
organizations working toward similar goals who invested upwards of a
million dollars to help make this program successful. It also takes
significant staff support and expertise in partnering with other
agencies to ensure this program meets its goal and remains successful.

Question from Hon. Eleanor Holmes Norton to Tunya Smith, Director,
Office of Civil Rights, North Carolina Department of Transportation

Question 1. In your testimony you noted that a greater investment
in workforce development is needed to realize the full potential of the
bipartisan infrastructure law.
Can you elaborate on the current funding levels your state receives
through the On-the-Job Training program and what you would be able to
accomplish if more funding was provided?
Answer. As I mentioned in my written and oral testimony, there is a
need for greater funding and flexibility in some program areas. COVID
posed challenges to the economy and many of our North Carolina training
initiatives. The On-the-Job Training (OJT) and OJT/Supportive Services
(SS) programs are more important than ever to our efforts at workforce
development. This was true even before the Infrastructure Investment
and Jobs Act (IIJA) funded projects began. Developing human capital
infrastructure is more complex and almost as expensive as building
physical infrastructure, and the two are linked in this area. OJT/SS
programs' `high impact' labor training is distinct from technical and
engineering operations.
The Federal Highway Administration (FHWA) only receives about $10
million and uses the funding from its administrative budget to fund OJT
and Supportive Services, National Summer Transportation Institute
(NSTI), and the summer internship program for diverse students
(STIPDG). This leaves approximately $6 million to be spread across
workforce development programs for more than 50 state DOTs OJT/SS
programs. Another $2.5 million is available for the National Summer
Transportation Institute (NSTI) but must be spread out over about 48
university and college programs nationwide. To help support our needed
programs in North Carolina, we have long been using 504(e) funds--the
usage of which for `workforce development' (mostly apprenticeships) has
recently been expanded to all states under Infrastructure Investment
and Jobs Act (IIJA). However, as presented in our written testimony,
any investment in education or training is made at the expense of
capital investment in road and bridge projects, highway safety or the
Congestion Mitigation and Air Quality (CMAQ) programs. Many states
cannot afford to do this, and all states could use additional funding.
It's important to understand the funding for OJT programs has not
increased since 1974, as The Honorable Eddie Bernice Johnson pointed
out in her testimony. Meanwhile, inflation and the rapid growth of
North Carolina and many other states have raised the price of not only
construction but also workforce development.
The most recent North Carolina OJT/SS financing offers all of the
supportive services in an effort for our (and other DOT agencies) to
supplement and support OJT labor pipeline initiatives with private
contractors and our own Division of Highways. Despite our limited OJT
funds, NCDOT and other DOTs across the country seek to make highway
construction workforce development a priority in transportation.
However, FHWA can divide the OJT/SS and NSTI funding granted to a state
DOT between the two programs at the discretion of the DOT, thus
reducing the OJT/SS pot of money.
As part of the yearly OJT Statement of Work (SOW), the FHWA is
asked for funds for Supportive Services. The annual statement of work
is a detailed plan that includes supportive services activities,
activity budgets, and annual program goals, as well as an expected
budget allocation for each.
All OJT funds are used to help women, minorities and disadvantaged
individuals engaged in NCDOT OJT-sponsored training activities, and
participants in the Alternate OJT Program with private contractors.
Many of these folks have significant, sometimes multiple, obstacles
that require significant resources to overcome.
The following activities and resources are eligible for supportive
service funds:
1. Activities in Education and Training
2. Workplace or training-related supplies
3. Workplace or training-related transportation
4. Workplace or training-related childcare
5. Allowances/stipends connected to employment or training (as
approved by FHWA).

One additional supportive service expense that should be considered
as allowable is the provision of temporary or emergency accommodation
for OJT program participants.
NC DOT OJT/SS Training and Education Programs:
Highway Construction Trade Academies (HCTA)
Academies are established by the NCDOT OJT unit at host sites
throughout the state. The curriculum for each academy follows the FHWA
approved base curriculum; additional specific detailed curriculum is
added by NCDOT based on contractor inputs. These currently include
exposure to heavy equipment operation and asphalt paving. To conduct a
quality and comprehensive regular HCTA for 4-6 weeks, at 4 cohorts a
year, the average cost is about $100,000 a year per site. This does not
even include the need to have the option to include training allowances
or work-based learning stipends for participants (and/or new graduates)
in this budget. We will need many more academies to develop our
transportation workforce, given the significant labor shortages in
North Carolina and the United States. There are approximately 100,000
job openings in North Carolina alone. This could impact our road crews
who would not be able to respond to storm damage, such as clearing and
brining roads, as well as repair and building of highways.
The current academy model is a Community-Based Highway Construction
Trades Academy (CBHCTA). We will be adding some targeted North Carolina
community colleges to this mix by the end of this year. NCDOT also
plans to add both Specialized Highway Construction Trades Academy
(PHCTA), and Advanced Highway Skill Training versions in the coming
months.
Each is described below:
Community-Based Highway Construction Trades Academy (CBHCTA): The
Community-Based Highway Construction Academy (CBHCTA) is for adult
students who are at least 18 years old, belong to a minority ethnic
group, are a woman, and/or are economically disadvantaged. The HCTA
provides an overview of the industry, as well as hands-on experience
with heavy machinery. Case management, hiring fairs, and guided
pathways to employment with prime contractors are provided to
participants. Advanced Highway Construction Training and supportive
services are also available to completers.
Specialized Highway Construction Academies (SHCTA): Specialized
Highway Construction Academies (SHCTA) are for adult students who are
18 years old who are a part of the target recruitment population.
Examples include minority college students, women and veterans
interested in professional service careers related to highway
construction.
We also again ask that consideration be given to allowing the use
of these Federal-aid highway construction OJT funds with currently
incarcerated individuals. This pre-release concept trades academy would
potentially be in partnership with the North Carolina Department of
Public Safety and Corrections and with individuals who are in re-entry
mode. This academy may also attempt to provide inmates eligible for
work release an opportunity to be trained and employed with a
partnering contractor during the 12 months before release. The purpose
is to decrease recidivism through skills development and steady
employment before release. As a Specialized Academy, these might cost
upwards of $150,000 a year due to the need for additional services and
activities.
Another version of our Academy-model would be at the public high
school level through a coordinated series of activities from 9th thru
12th grade. We need additional funds to be able to work with the Local
Education Agencies (LEAs) and their Career and Technical Education
(CTE) programs across the state in adding such courses and pathway
programs. This `grow your own' approach would be especially helpful in
more economically impoverished rural and urban communities. It could
also help dampen the `brain drain' of youth and talent from these areas
as they will be less likely to move somewhere else for good and steady
employment and career opportunities.
Advanced Highway Skill Training (AdT)
Advanced highway skill training focuses on advanced and more
technical skills, often leading to some kind of credential.
Participants who have attended an HCTA--or are OJT trainees--can
receive additional skill training in one of our critical need areas. As
with the academy models, these training budgets need to have the option
to include training allowances or work-based learning stipends when
needed as well. Advanced Highway Skill Training will not be in an
academy (except perhaps for CDL training with its huge labor demand),
but a partnership with contractors and certified training providers to
assist with upskilling OJT trainees and other workers.
Areas of training focus are:
Commercial Driver's License (CDL)
Demolition/Hauling
Guardrail
Asphalt/Paving
Landscaping/Erosion
Trenches/Piping, Traffic Maintenance, Bridgework
Disaster Recovery

We plan to add electric vehicle charging stations and bridge work
including re-bar to this mix in the near future. This will be another
additional development and provision expense.
It is important to note that a CDL training program leading to that
credential can cost upwards of $4000 for each student. There is a
serious nationwide shortage of truck drivers (both Class A and B)
needed for the highway industry.
Lastly, OJT program serves as a placement service for DBEs as there
exists a strong nexus between the OJT and DBE program.
Construction Career Days (CCD)
These events create a critical link between classroom and workplace
by giving middle and high school students the opportunity to explore
careers in highway construction and various careers in the
transportation industry. NCDOT needs to be able to spend more funds on
solely holding or sponsoring these events, plus on the marketing and
outreach and materials required for them. It is also important as
evidenced by this continued epidemic to be able to afford a virtual and
artificial intelligence-based platform through which to conduct needs
assessments and, career fairs and actual hiring events for both older
youth and adults. NC utilizes albeit older transportation-based
simulators to showcase construction Heavy Equipment Operation trades
and we find the use of simulators a great tool to excite, bring
awareness and recruit and train talent. These simulators are costly,
and states like ours could benefit from the purchase of simulator which
can range from $25,000-$30,000 each, not including maintenance.
Highway Construction Workforce Partnership Grant Funding
The amount that NCDOT receives from the FHWA On-the-Job Training
Support Services Program (OJT/SS) is helpful, but the OJT/SS funding is
not enough to address North Carolina transportation workforce needs.
The question of what NC would do if more funding were provided is
perhaps best answered in our proposal to FHWA for a Highway
Construction Workforce Partnership (HCWP) grant. Our experience with
the FHWA HCWP grant program also provides important insight into the
need for additional funding for highway workforce development
nationwide.
The FHWA HCWP is identical in its goals as the agency's OJT/SS
program, although an important emphasis for HCWP is the broad based
private/public partnership for workforce development. In fact, the HCWP
Notice of Funding Opportunity required a letter of commitment from a
State Chapter contractor organization (generally an affiliate of the
Associated General Contractors of America AGC) and/or the American Road
and Transportation Builders Association (ARTBA). [The NC application
included this letter plus similar from six other partners such as the
NC Community College System and WIOA entity.]
Over a year and a half ago, FHWA's Center for Transportation
Workforce Development and Technology Deployment managed a 2nd funding
cycle with a $4 million Highway Construction Workforce Partnership
(HCWP) grant program, but the funding could only support 11 of the 21
proposals. NC was not one of those funded; we had requested $200,000
for a comprehensive 2-year project. This program supports collaborative
efforts among key highway industry, state DOTs, and public workforce
system organizations, notably, State, and local Workforce Development
Boards. The challenges and processes of providing outreach programs for
prospective workers, training, and job placement requires the
commitment and active engagement of all these organizations and other
sector partners, but without funding, the potential of the HCWP concept
will not be realized.
With the $200,000 FHWA HCWP grant, North Carolina would have
trained and placed an additional 225 individuals into highway
construction jobs with strong representation of women, minorities, and
disadvantaged individuals. That's less than $1,000 per person of
Federal investment to train and place individuals into rewarding
careers that will help highway contractors have the workforce they need
to deliver highway projects in a more timely and efficient manner.
Workforce funding is good for the workers, employers, and as a return
on investment for all highway and bridge/tunnel users.
In support of this response to Chair Norton's question, about what
the N.C. Department of Transportation and its partners (as well as
other states and their partners) could do with additional financing, we
have attached our agency's grant proposal to FHWA. Pages 4-10, explains
the scope of work in more detail.
Additionally, the FHWA Every Day Counts Program (EDC) designated
HCWP as a focus program under Strategic Workforce Development. Thirty-
two states have committed to pilot an HCWP in Every Day Counts, but
without funding ($20K-$100K each--including here in NC), those capacity
building efforts are and will be severely compromised as well.
Recording and Reporting
Finally, there is a real need for advanced technology solutions for
OJT data collection and reporting. This includes participant,
programmatic, and fiscal tracking information such as conducting/
providing post-graduation tracking of participants for retention (180
days), advancement, Federal reporting, and administrative purposes.
FHWA is increasingly and correctly asking for more analytics to assess
OJT/SS program performance, and state DOTs such as NCDOT are needing to
invest much more in MIS databases and reporting systems.
Congress has made a significant investment in highway
infrastructure with the IIJA, but without a workforce sufficient to
deliver on that promise that investment will be inefficient and less
effective. There needs to be a commitment to improving the workforce
necessary to deliver highway projects through a skilled workforce as
well.
I want to again thank the Subcommittee for the opportunity to
testify at its April 27 hearing and to provide answers to the chair's
question here.
The North Carolina Department of Transportation is committed to
working with industry and other key partners to provide our citizens
with access to good jobs in the highway industry. We appreciate the
subcommittee's interest in that goal as well. If you have additional
questions or we can provide additional information, please let us know.

Questions from Hon. Henry C. ``Hank'' Johnson, Jr. to Tunya Smith,
Director, Office of Civil Rights, North Carolina Department of
Transportation

Question 1. Government contracts through the Department of
Transportation's (DOT) Disadvantaged Business Enterprise (DBE) program
is essential to the growth of women and minority-owned businesses in
the transportation sector. Unfortunately, both covert and overt
discrimination have created systemic barriers that prevent many of
these vital businesses from participating in federal highway and
transit programs. That is why I am working to introduce a bill that
removes some of those barriers for the purpose of determining a DBE's
eligibility.
1.a. Can you explain the Disadvantaged Business Enterprise (DBE)
program and how they are generally effective?
Answer. Thank you for asking these key follow-up questions. The
Disadvantaged Business Enterprise Program (DBE) is a legislatively
mandated USDOT program that applies to federal-aid highway dollars
expended on federally assisted contracts issued by USDOT recipients
such as state transportation agencies.
Congress established the DBE program in 1982 to:
Ensure nondiscrimination in the award and administration
of DOT-assisted contracts
Help remove barriers to the participation of DBEs in DOT-
assisted contracts
Assist the development of firms that can compete
successfully in the marketplace outside of the DBE program

To be certified as a DBE, a firm must be a small business owned and
controlled by socially and economically disadvantaged individuals.
Certifiers make the determinations based upon on-site visits, personal
interviews, reviews of licenses, stock ownership, equipment, bonding
capacity, work completed, resume of principal owners and financial
capacity.
To be regarded as economically disadvantaged, an individual must
have a personal net worth that does not exceed $1.32 million. To be
seen as a small business, a firm must meet SBA size criteria AND must
not have average annual gross receipts, over the previous 5 years, in
excess of the DBE size limit (< $28.48 million). Size limits for the
airport concessions DBE program are higher (< $56.42 million).
The DBE program ensures disadvantaged businesses have the
opportunity to do business with the N.C. Department of Transportation.
The DBE program is generally effective but could be improved by
addressing the recommendations below.

1.b. How can we improve these programs?
Answer. Please see list of NCDOT Recommendations:
Certifications/ Eligibility
Despite NC efforts to increase spending amongst diverse businesses,
our Diversity Spend for FY20 was 9.41%. Our Diversity Spend for FY 21
was 8.43%. From FY 20 to FY 21, NCDOT spent $1 Billion in revenue. This
was due to COVID 19. There were less projects during this time. As we
are coming out of the pandemic, more funds are being released and more
opportunities are being made available. The Office of Civil Rights is
working with our Division of Highways to recruit small and minority
firms.
The DBE application process is burdensome and creates a
barrier to participation. A condensed version is needed. The paperwork
alone is 16 pages not including all the gathering of verification
documents and site visit requirements. For smaller projects, DBE may
not reap the benefit of this long and sometimes costly burden-need to
obtain tax documents, printing etc.
State-level certification for small, women and minority
owned businesses is less complicated and this steers firms away from
federal certification. However supportive services and enforcement is
less at state level than federal level. Utilization is also not
realized at federal level.
Lack of access to high-speed broadband and internet
connectivity creates a barrier to eligibility as most documents are
obtained on-line and applicated processed online.
There is no designation for Minority Women. Currently
Women Business Enterprise (WBE) is reserved for non-minority women. The
DBE designation is for women and minorities. Minority women are
defaulted to a minority owned business. When in fact they face
challenges as both women and minority. Therefore, a separate
designation should be created for Minority Women. Non-minority women
receive a disproportionate amount of DBE dollars as compared to their
representation in NC's DBE Directory. For 2021, non-minority women made
up 31% of all DBEs in North Carolina, however, they received 65% of all
dollars going to DBEs.
Congress should prohibit any additional requirements to
contracting such as prequalification. NAICS codes are assigned at the
time of certification at the state level. However, some states add
additional ``prequalification'' requirements (additional work codes).
The need to be prequalified as a subcontractor represents additional
and unnecessary barriers to project delivery. Many do not understand
this requirement and feel it is complicated and redundant as they were
already assigned NAICS codes when they were certified.
Congress should prohibit states from having excessive
insurance/ bonding practices for risk management. There should be a
sliding scale requirement relative to the risk and project size. Laws
should prohibit these excessive requirements e.g., $1 million bonding
requirement on a $100k project.
DBEs often experience the inability to qualify for
traditional funding which forces them to use alternative funding (high
interest loans, factoring, bad terms). We need to have a Small Business
Administration program that assists with these funding/loan challenges.
Firms should not have to use their personal savings, home, or
retirement to qualify. This will also help risk mitigation with non-
traditional lenders such as Community Financial Development
Institutions (CDFIs).
The personal net worth (PNW) limit of $1.32 million and
the gross receipts limit should be increased to allow the firms to
grow. Many state programs do not use PNW as a qualifier for
eligibility.
State DOTs could benefit from DBE supportive services
funding directed toward the development of a prisoner reentry program.
Additional funding specifically designed for reentry/ workforce
development is critical to economic development and the underserved
communities we serve. Many incarcerated individuals are denied entry
into traditional labor market and entrepreneurship is another critical
path.
Enhancement to Utilization
IIJA money will be distributed fast and without proper enforcement,
small and disadvantaged businesses will be left out.
Congress could improve or pass legislation allowing
states that operate a mentor/protege program to offer mentors an
incentive to participate in these programs. Some DOTs, such as Illinois
DOT, offer a reduction on a project's DBE goals as an incentive for
prime contractors to mentor DBE proteges.
When the market restricts some states allow primes to
keep working and are not enforcing Good Faith Efforts. This has
resulted in small businesses not getting any work and going out of
business.
USDOT requires selection criteria include small
businesses, disadvantaged businesses and new entrants. This should be
required and enforced at the state level.
There should be more enforcement and mandates on having
DBE Liaison Officer at the table when selection criteria are developed.
USDOT could mandate incentives to the prime contractors
for meeting and exceeding DBE goals.
Congress could strengthen legislation on requiring goal
setting at the state level. Some states currently only set DBE goals on
the construction portion of projects, and they should be setting goals
on professional services such as architectural and engineering
services. USDOT expressly allows for DBE goals on A&E Services
projects.
Despite state efforts and lack of enforcement
capabilities from state Civil Rights Divisions, states like NC fail to
achieve parity. As recently evidenced in our spend numbers we only
achieved an 8.43% goal achievement
The Airport Concession DBE Program (ACDBE) is similar to
the DBE program in that it is a Department of Transportation (DOT)
program designed to level the playing field for small businesses who
wish to participate in contracting opportunities at airports. It is
difficult for DBEs to be successful due to unlimited or long lease
lives. A tax incentive for prime concessionaires to use small
businesses would make this overly competitive environment more small
business friendly.
More robust data tracking and reporting is needed at the
federal level to assist state DOTs. Often states are unaware of and
unfamiliar with the successes and lessons learned from other state
DOTs. Having a central repository and clearing house could assist to
program development and technical assistance.
Currently if a DBE wants to be recognized as a DBE in
more than one state, there is excessive administrative work that must
be completed. It would be advantageous to the DBE and the UCP if all
states would recognize the home state certification.
USDOT could assist states create a regional incubator/
mentor protege with transportation partners to increase small, women
and minority-owned businesses participation, provide a blueprint and
technical assistance for State DOTs. These incubators could include an
innovative approach by utilizing artificial intelligence to assess DBE
capabilities and future training needs. Some of the benefits include
resources centered around active project to ensure quality and
deliverables met, firms receive on-site technical assistance to
mitigate impediments and essentially grow their business, economic
development and growth for transportation industry, building talent
pipeline regionally and nationally. NCDOT is in the process of creating
an incubator with the newly announced Toyota Battery Plant project.
These incubators not only assist firms with funding but provide
guidance/business assistance and business planning. The recipients
would be required to pay it forward and help other firms in the future.
This will also provide office space for DBEs like a ``We Work'' model.
As written in CFR 49 part 26, DBE goal setting only
applies to projects for the Federal Highway Administration, Federal
Transit Administration and the Federal Aviation Administration. Other
modes of transportation (most notably rail projects) receive
substantial Federal funding and should also have DBE participation
goals.
There is a federal Brooks act that requires that the U.S.
Federal Government select engineering and architecture firms based upon
their competency, qualifications and experience rather than by price,
however states have created mini brooks act that circumvent federal
policy. There is no precedent for these cases. The states' procurement
methods are generally more restrictive.
Program Development
With the development of Electrical Vehicle charging
stations, there should be a federal requirement to consider how this
massive initiative can benefit small and minority owned businesses. For
example, if minority landowners had the opportunity to lease their land
for the purpose of housing the stations, this would provide a revenue
stream for the landowner.
In addition to Disparity Studies, Congress should provide
funding for states to conduct an Economic Impact Study to examine the
economic benefits of contracting and workforce development programs.
The guidelines for using Supportive Services funds which
is apportioned from the FHWA are overly restrictive and can only be
used to assist DBEs who are performing highway-related construction
work. DBEs engaged in other activities related to transportation do not
benefit from these funds.
Congress could provide financial assistance specifically
designated for American Indian/Native American (funding allocation).
Tribes missed a lot of the prior emergency funding.
The DBE Supportive Services and the OTJ training units
should work in conjunction to address workforce training solutions by
identifying gaps in skills and using OJT funds to support that
training.

I want to again thank the Subcommittee for the opportunity to
testify at its April 27 hearing and to provide answers to the question
here. The North Carolina Department of Transportation is committed to
working with industry and other key partners to provide our citizens
with access to good jobs in the highway industry. We appreciate the
Subcommittee's interest in that goal as well. If you have additional
questions or we can provide additional information, please let us know.

Question from Hon. Eddie Bernice Johnson to Tunya Smith, Director,
Office of Civil Rights, North Carolina Department of Transportation

Question 1. Ms. Smith, we haven't increased funding for On-The-Job
training programs since 1974.
Would you and others working in your field benefit from increased
funding for this program?
Answer. Thank you for asking this important question. Over the
decades, the OJT program has become a fundamental part of NCDOT's
Office of Civil Rights and other states' similar programs. An increase
of funding will give us all the opportunity to do the following:
Help hundreds more minorities, women, and disadvantaged
people around the state/s increase their skill and abilities in the
highway construction field.
Provide support to women, minorities, and disadvantaged
individuals by removing barriers that prevent their retention within
training and then with the prime contractor or state highway workforce.
Offer many more `Highway Construction Trade Academies'
including needed specialty versions around the country, including the
procurement of simulators
Provide opportunities for advanced training in the field
including credentials and commensurate career-building skills and wage
increases.
Increase high school students' knowledge of the highway
industry through increased construction career days, career fairs,
Career Technical Education (CTE), and career expos--both in-person or
virtual and blended.
Provide (more) opportunities for paid or work-based
learning experiences thru training allowances or stipends for
participants.
Develop or procure new technology to obtain more accurate
reporting and monitoring.
Work even better with prime contractors to increase their
participation in the OJT/SS opportunities; and if made an allowable
expense.
Link state correctional systems with DOTs in pre-release
programs for incarcerated individuals in collaboration with prime
contractors, worksites, and OJT/SS opportunities.

With the enactment of the Infrastructure Investment and Jobs Act
(IIJA), the Congress has made a significant commitment to improving the
Nation's deteriorating infrastructure. For some years now, highway
contractors have tried to do the best they can to delivery projects in
a timely and efficient manner, but the shortage of skilled workers has
compromised their efforts. While the additional Infrastructure
Investment and Jobs Act (IIJA) funding is certainly needed, the results
on the investment is challenged by an already difficult workforce issue
that will only become more challenged as employers try to recruit and
train new workers to deliver the IIJA funded projects.
The FHWA OJT/SS program is certainly a benefit, but with only $6
million to be distributed annually to 50 states and some US
territories, and without any funding increases in decades, highway
contractors face serious workforce shortages that will only become more
challenging with the IIJA investment. At the same time, there are
underutilized and virtually untapped sources of labor--such as pre-
release populations--that could be reached by OJT/SS programs if that
Federal highway funding restriction could be lifted or waived for our
training models.
One additional initiative that should be re-funded and offered
nation-wide again is the FHWA's Highway Construction Workforce
Partnership (HCWP). This is identical in its goals as state DOT
agencies' On-the-Job Training program OJT/SS program, although an
important emphasis for HCWP is the broad based private/public
partnership for workforce development. HCWP receives no annual funding.
$4 million for the HCWP grant program was made available to the states
this past year using years of OJT/SS Program accumulated carryover
funds.
In a debriefing from FHWA, we learned that of the $4 million
available, they could fund only 11 of the 21 state DOT applications.
North Carolina--and 9 other applicant states--did not receive an FHWA
HCWP grant simply because there was not sufficient funding to support
the 21 state DOT proposals for the HCWP program. And though it is
difficult to speak for all states, the other 29 states could probably
benefit from such partnership and capacity-building funds as well. [We
have attached a copy of the North Carolina HCWP proposal to FHWA which
is only 16 pages in length. The Scope of Work is shown on pages 4-10.]
As mentioned in our written testimony as well, FHWA has also
identified workforce development to be one of seven programs to be part
of the 20-21 Every Day Counts (EDC-6) Program. FHWA together with state
DOTs provides an emphasis on these programs through workshops,
materials development, demonstration projects and technical support to
their own Divisions, state DOTs, local agencies, and private sector
partners. The highway community can implement those EDC programs that
will benefit their work in the highway program. Program implementation
is managed with the State DOTs working with state and local partner
groups in their states.
Thirty-three state DOTs selected this as one of the EDC-6 programs
for their state; NC was one of them but, again, there were no funds
available. [For EDC-6 purposes, HCWP is titled the Strategic Workforce
Development (SWD) initiative.] The HCWP/SWD states are in various
stages of implementation, and all HCWP/SWD states will need funding at
some point, and sooner than later. There are at least 33 states that
want to move forward with a robust workforce development program
through HCWP, but do not have funding. It is also safe to say that if
funding were available additional states would have committed to HCWP
and/or EDC-6.
These experiences of OJT/SS, HCWP, and EDC-6 SWD are evidence that
additional funding for workforce development is needed now and for the
future. The Congress has just made a significant commitment to
improving the Nation's highway infrastructure. There needs to be a
commitment to improving the quality and quantity of workforce necessary
to deliver highway projects through a skilled and diverse labor force
as well.
I want to again thank the Subcommittee for the opportunity to
testify at its April 27 hearing and to provide answers to the questions
here. The North Carolina Department of Transportation is committed to
working with industry and other key partners to provide our citizens
with access to good jobs in the highway industry. We appreciate the
Subcommittee's interest in that goal as well. If you have additional
questions or we can provide additional information, please let us know.

Attachment \\
---------------------------------------------------------------------------
\\ Editor's note: The original grant application has been
reformatted for inclusion in this publication. References to page
numbers in NCDOT's preceding responses apply to the original grant
application and do not apply to this reformatted version.
---------------------------------------------------------------------------
NCDOT On-the-Job Training Program
Highway Construction Workforce Partnership Grant Application
NC DOT--Office of Civil Rights
February 2021
NCDOT HCWP Grant Application: Supplemental Narrative
A. Statement of Problem
The growing national demand for highway construction, maintenance
and administrative workers presents a need for higher-level skill sets.
To attract, train, retain, and advance workers in the contractors'
labor force, new resources, training opportunities and pipeline
strategies are needed. Reflective of the national industry trends,
North Carolina (NC) faces a highway construction workforce and skills
gap issue. North Carolina, also known as the ``Good Roads'' State,
contains 80,000 miles of roadway, over 13,500 bridges, and makes up one
of the nation's largest highway systems. As the 9th most populated
state, with rapid growth, NC must consider both new build and legacy
maintenance needs related to highway and bridge construction.
A recent report from the NC Chamber and TRIP, a national
transportation research nonprofit, revealed North Carolina motorists
pay about $10.3 billion annually in transportation-related expenses
that result from driving on poorly maintained and deteriorating
statewide roads and bridges. The report provides evidence that a strong
transportation network supports a strong statewide economy, with 1.9
million jobs in North Carolina directly dependent on our transportation
infrastructure. As North Carolina focuses on ramping up transportation
infrastructure, a pending workforce shortage emerges as the average age
of NC construction trades workers nears 50 years old. The impact of the
anticipated workforce shortage is exacerbated as many potential workers
consider construction trades both uninspiring and difficult to enter.
To properly address workforce deficiencies in North Carolina's
highway construction industry key players such as CAGC \1\, NC WIOA/WDB
\2\, NC Economic Development, NC Community Colleges, and NCSU's LTAP
\3\, need to be at the table with NCDOT. This integrated approach will
also help to ensure sustainability and institutionalization in the
future. The inaugural Working Group (WG) has identified that North
Carolina has experienced a misalignment of workforce development
efforts resulting in inefficient labor supply and pipeline disconnect.
An important element being left out of workforce discussions and
programing is the k-20 and out-of-school youth/adult training pathway,
as well as partnership collaborations.
---------------------------------------------------------------------------
\1\ Carolinas AGC (Association of General Contractors)
\2\ Workforce Innovation and Opportunity Act/Workforce Development
Boards
\3\ Local Technical Assistance Program
---------------------------------------------------------------------------
The WG members and other collaborators identified these issues and
agreed that this HCWP project would help address them. This partnership
and coordinating grant for our proposed statewide and multi-entity/
level approach will close these HCW gaps--from recruitment, to
training, to placement/employment, and then retention and advancement.
B. Amount Requested and Proposed Project Duration
For Fiscal Years 2021-2022, the NCDOT requests a total $200,000 for
this proposal. [$100,000 for project coordinator; $50,000 for needs
assessment; $25,000 for curricula development; $10,000 for marketing;
and $15,000 for independent evaluation--also see Cost Proposal.]
C. Needs Assessment:
North Carolina faces many of the same highway construction
workforce challenges that other states do--a lack of skilled
candidates, disjointed workforce development (WD) providers/programs,
scattered marketing/recruitment, low employment retention rates, and
worker transportation, daycare, and other barrier, issues. According to
the FHWA/EDC-6, there is a projected workforce shortage of 60%--or
500,000 skilled highway construction jobs--nationally over the next
decade. The North Carolina Department of Transportation's (NCDOT)
Innovation Council (STIC) has even adopted Strategic Workforce
Development to prepare NC with the needed skilled labor force. While
the economic situation in many rural and poor counties/communities
complicate State efforts, the needs of residents in such distressed
Tier 1 counties, along with other disadvantaged and non-traditional
populations, can be supported through this grant. Performing a thorough
3-way needs assessment will be a key first step to help identify the
untapped labor force, occupations, numbers, skill sets, and course
needs that our NC firms require and can be made available.
The US Bureau of Labor Statistics estimates that increases in
spending on heavy/civil construction projects will result in above
average job growth. Specific to NC, it was projected that between 2016
and 2026, Federal infrastructure spending would increase at the State
and other levels--resulting in a 12 percent increase in workforce
opportunities related to the highway construction industry. Currently,
NCDOT is spending about $9 billion annually on active highway
construction, and over the next 30 years will need a skilled workforce
to complete 750 highway construction projects estimated to infuse $123
billion dollars into the State economy (``NCDOT2040 Statewide
Transportation Plan Modal Needs Report'' \4\).
---------------------------------------------------------------------------
\4\ https://www.ncdot.gov/initiatives-policies/Transportation/plan/
Documents/2040_ModalNeedsReport.pdf
---------------------------------------------------------------------------
Findings from the 2021 CAGC Construction Hiring and Business
Outlook Survey include 75% of hiring contractors having a hard time
filling positions, plus expecting a 10% growth in 2021. Another 65%
reported hiring shortages/concerns, and 61% say that inexperienced
skilled labor present challenges to the safety and health of workers. A
direct report given to the WG by ARTBA indicates the current North
Carolina workforce lacks the capacity to meet the job demands of the
state highway modality maintenance, improvement and building project
schedule.
In 2018, the US Census Bureau County Business Patterns data report
provided the most recent highway employment (by county and even zip
code) trends. But the labor market numbers, skills gaps and
occupational projections needed solely for the highway construction
sector in NC are not available. Also, a separate analysis of
horizontal/transit construction sector gaps, and responsive training
programs (v. vertical trades and skills) is needed. In order to avoid
assumptions based on national, combined, or out-of-date data, an
assessment of NC's HWC employment outcomes, and employment projections
by occupation/classification and need would be beneficial to strategic
planning efforts. Non-traditional populations can then help make up the
gaps.
North Carolina currently lacks a HCW sector partnership initiative.
An industry-led collaborative to facilitate workforce pipeline
activities and supportive services--that increases the representation
of minorities, women and disadvantaged persons in the highway
construction sector--is needed to benefit all partners, drive training
efforts, and create a clear and related pathway program. Pilots with
some community colleges, some Local Education Agencies/public schools,
some regional/local Workforce Boards, and some contractors will be
scalable models once found to be successful for replication to others
inside and outside of NC. For the NC Strategic HCWP project, the
continuance of COVID and its effects on the overall economy including
the public sector (WG partner funding and Federal/state highway
spending) are seen as being the biggest external risks associated with
the successes of the initiative.
D. Scope of Work:
1. Establish HCWP Working Group
The core group (and additional partners listed below) was brought
together during six weeks of concentrated outreach and communication by
the NCDOT's OJT/SS Department to pull the genesis of the Working Group
and application SOW together rather quickly. The NC's Strategic HCWP
Working Group (WG) will be formally established once the grant award is
announced. The engagement of relevant stakeholders will continue to
leverage knowledge and resources.

----------------------------------------------------------------------------------------------------------------

-----------------------------------------------------------------------------------------------------------------
Inaugural NC WG Membership:
----------------------------------------------------------------------------------------------------------------
NCDOT (OJT/SS; Business Opportunity and WD; HBCU/NSTI; and EDC-6 Initiative)
FHWA Division Office
Carolinas AGC (CAGC)
United Minority Contractors of NC (UMCNC)
NCWorks Commission (State WDBNC Department of Commerce/ Economic Development Partnership of NC (EDPNC)
and Division of Workforce Solutions (DWS)--State Departments of ED and WD
NC Community Colleges (NCCCS) including State Apprenticeship Program
NC State University's Institute for Transportation Research and Education (ITRE)/LTAP
----------------------------------------------------------------------------------------------------------------
Other current collaborators:
----------------------------------------------------------------------------------------------------------------
NC Department of Public Instruction (DPI) Career Technical Education (CTE), Local Education Agencies (LEA), and
NC Association of WDB Directors.
----------------------------------------------------------------------------------------------------------------
Future plans call for the inclusion of:
----------------------------------------------------------------------------------------------------------------
NC Rural Center, NC Veteran's Council, Fort Bragg TAP (f/d/b/a ACAP), NC Chamber (of Commerce), NC Business
Committee for Education (NCBCE), Tribal organizations, and other community-based organizations involved in the
recruitment, training, and employment of highway construction workers.
----------------------------------------------------------------------------------------------------------------

NC trade groups such as the CAGC and UMCNC will lead the initiative
to explain the needs of the highway construction industry at ground
level--job numbers (current and future), classifications/positions, and
required skills. Our contracted researcher will also consult other data
sources plus do a mapping of available programs and community work
force sources. Then, our existing public sector training/education/
placement programs--such as WIOA structure/partners and NC Community
Colleges--will be tailored to meet those needs and/or new programs or
partnerships will be formed. Defining a lead role for industry in our
WG will help align all of our partners towards more meaningful
outcomes, bringing greater focus and accountability to our
collaboration. The NC WIOA/WDB and Community College systems already
have experience with this for other sectors, such as healthcare, and
have designed a process called `NextGen' (not to be confused with youth
initiatives) which rightfully puts industry and employers in the
driver's seat for `sector partnerships', which the HCWP is for the
highway construction industry.
One major innovation for NC--per the `Playbook'--will be to develop
and launch Highway Construction Trade Academies via some of our network
of 58 community colleges serving all 100 counties, many of them
economically distressed and rural Tier 1. One model site that is ready,
willing, and able to pilot this concept is a community college located
in a very distressed county. This particular campus already hosts some
NCDOT heavy equipment simulators in its Continuing Education department
plus they are a virtual NCCER \5\ sponsor. [In addition, their county
high school is also interested in either hosting a pilot Highway
Construction Trades Academy (HCTA) or creating a Highway Construction
(HC) Career Pathway program. Both programs could then perhaps be linked
via NC's Career & College Promise for dual enrollment.]
---------------------------------------------------------------------------
\5\ National Center for Construction Education and Research
---------------------------------------------------------------------------
In addition, non-profit and community-based organizations all over
NC have been or will be involved in hosting some training centers.
These include CAAs (Community Action Agencies), CDCs (Community
Development Corps.), EDCs (Economic Development Corps.) and entities
such as OIC (Opportunities Industrialization Center). Initial WG
discussions have also considered opening such Academies with two of
NC's tribes: The Cherokee, in far west mountains, and the Lumbee, in
far down east NC. Other specialty academy ideas involve All-Female
(perhaps Re-Entry), Spanish-Immersion, and (other) Re-Entry models.
Some consideration has also been given to perhaps High School-based
Academies as part of their Career Tech programs, or an HWC career
pathway for interested LEAs at a minimum. Plans also include two
virtual programs (primarily due to lingering COVID restrictions/
impacts): 1. Use of the on-line NCCER course platform; and 2. Use of a
virtual `career fair' platform to be used with middle and high
schoolers (as well as adults) in lieu of traditional in-person
Construction Career Days (and actual hiring events) held physically
around the State (at least until COVID abates).
A second major innovation discussed for this project would be the
addition of formal Pre-/Apprenticeship components. NC is behind in
connecting the HC industry with such key skilled craft WD programs, now
operated under the umbrella of the NC Community College System. This
would most easily fit with and complement existing OJT programs with
trainees and contractors. Another related creative idea would be to
implement what our contractors call `co-op', NC OJT calls `paid
training', and community colleges now call `work-based learning'. We
envision a training allowance paid out of NC OJT/SS funds for Academy
completers to work FT for 4-6 weeks with a contractor--especially DBEs,
MBEs and SBEs. Pay would be at least $10 an hour and based on their
position classification rate. The hosts would be offered first dibs on
hiring, and hopefully with this real on-the-job practical experience
under their tool belts, participants would be more easily hired
elsewhere as well--maybe even into the OJT program with a prime. This
would help fill a labor supply continuum gap in NC.
2. Distribution of Working Group/Partner Responsibilities
As indicated in the Letters of Commitment (LOC), in addition to
staff participation on the WG, the following lists the roles and
responsibilities of the initial representative organizations:
NCDOT--Overall coordination and administration of the grant and
subsequent programs via OJT/SS Unit, Office of Civil Rights and FT
Project Coordinator including regular reporting, performance
management, and TA via FHWA; direct connection (co-champions) to NCDOT
EDC-6 Strategic Workforce Development initiative; connections to
regional Highway division staff; use of equipment for `skills rodeos';
local staff participation in career day events; job placement
assistance; @ Key Contacts
CAGC/ARTBA, and UMCNC--Direct connection to and representation of
highway contractors (from large primes to SBEs/DBES/MBEs) for labor
market and gap data, curricula development assistance, presentations,
project site tours, `skills rodeos', career/job fair participation, OJT
assignments, `coop' slots, apprenticeships, and employment; plus
reporting and data; @ Key Contacts. [NOTE: UMCNC POC is Brenda Pollard,
ED, bpollard@umcnc.org, 919 817-8626; also see LOC. Additional CAGC POC
is Victor Barbour, Director, NC Gov't Relations & Highway-Heavy
Division, vbarbour@carolinasagc.org, 919 906-3807. The local ARTBA
chapter is CAGC.]
NCWorks Commission/WDBs/Youth Councils--Project marketing/outreach,
participant recruitment, assessment, advising, enrollment, soft skills
and job getting instruction/preparation, job placement assistance, data
collection/reporting, (explore `dual enrollment'); @ Key Contacts.
[NOTE: The NCDOL is not the state workforce or economic development
agency in this state.]
NC DOC/EDPNC--Assistance with labor market analyses, additional
connection to employer and economic development representatives
statewide; @ Key Contacts
NCCCS--Project/program marketing/outreach, participant recruitment,
assessment, advising, Highway Construction Trade Academy/Con Ed
curricula development, enrollment, soft skills, and job getting
instruction/preparation, skills instruction, pre-/apprenticeship
components, job placement assistance, data collection/reporting. [NOTE:
Community College ConEd POC is Karen Tikkanen, Director, Training,
tikkanenk@ncommunitycolleges.edu , 336 266-0006; and Apprenticeship is
Kathryn Castelloes, Director, castelloesk@nccommunitycolleges.edu, 919
368-4280; also see LOCs]
ITRE/LTAP--Assistance with research, graduate students, HWC courses
and credentials, connections with local government and rural
transportation departments. [NOTE: POC is James Martin, Assoc. Dir.,
ITRE/Dir., LTAP, jbm@ncsu.edu, 919 412-0713; also see LOC]
FHWA Division Office--Technical assistance, management
interactions, monitoring, WG meeting participation, regular evaluation
and review of grant activities including those contracted. [NOTE: POC
is Lynise DeVance, Civil Rights Program Manager,
lynise.devance@dot.gov, 919 747-7010]
3. HCWP Program Plan Development
Our HCWP program plan and workforce strategies will improve the
contractor talent pipelines statewide, help to skill and re-skill the
workforce, develop/expand pre-/apprenticeships, and other credentials,
and engage even more with high schools down the road. The following
represents in goals/objectives and tasks/activities how the NC
Strategic HCWP WG has so far scoped out and outlined its program plan
to align all pipeline programs and stages:

Overall Main Goal & Key Objectives
------------------------------------------------------------------------

------------------------------------------------------------------------
Goal: Employment for participants from the programs within three months
of graduation..
------------------------------------------------------------------------
Objective 1............................... Form official NC Strategic
HCWP Working Group; hire
Project Coordinator
Objective 2............................... Contract with researcher;
Conduct needs assessment
(for projected construction
workforce needs over next 2
years to identify specific
fields/crafts)
Objective 3............................... Perform coordinated, joint
outreach, recruitment,
screening for veterans,
minorities, women, and
other targeted non-
traditional groups
Objective 4............................... Develop and provide skills
training via community
colleges and formal pre-/
apprenticeship, to increase
highway construction skill
level of minorities, women,
and other disadvantaged
individuals
Objective 5............................... Ensure 100% employment
within 6 months of
graduation
Objective 6............................... Provide supplemental
supportive services to
program participants during
trainings and continued
employment on Federal-aid
highway construction jobs
Objective 7............................... Provide post-graduation
tracking of participants
for retention (180 days),
advancement, Federal
reporting, and
administrative purposes
------------------------------------------------------------------------

Planned Tasks/Activities
----------------------------------------------------------------------------------------------------------------

-----------------------------------------------------------------------------------------------------------------
Develop a contractor-led/informed NC Strategic Highway Construction Workforce Partnership Initiative,
Working Group, and umbrella goals
Re-determine specific workforce needs via new updated labor force needs study
Develop formal partner relationships, consortium structure, MOU/MOAs, and trainings
Align and connect outreach, recruitment, and training/education to employment and funding
Help OCR/DOT more formally connect with WIOA, Voc Rehab, DSS, VA, etc.
Launch planned activities/ programs and pilots; with continuous evaluation
Innovate around community college involvement, NCCER virtual component, training allowance inclusion,
connection to formal apprenticeship program, etc.
Develop a statewide performance data collection system and shared metrics
----------------------------------------------------------------------------------------------------------------

The main vehicle for this program plan will be the Highway
Construction Trades Academies (HCTA)--for adult students who are at
least 18 years old. The purpose of the proposal HCTA will be to train
and develop a highly skilled highway construction workforce via the
community colleges plus their add-on pre-/apprenticeship components.
Working with our contractor trade groups, and large primes themselves,
together with NC OJT/SS SMEs and PC, community colleges in the State
will develop a scalable model for highway construction worker training.
The WG further plans to leverage existing programs (such as NC's
current 4- and 8- week community-based non-profit hosted HCT Academies)
and re-purpose them to meet Community College Con Ed course for highway
construction needs and criteria. Additional resources can come from
other WG service providers such as CAGC, ITRE/LTAP, other funding
sources (such as WIOA), and even other industries. For instance, the NC
WG will also create its pilot Community College HC training programs by
using pieces of its much more common vertical construction industry
training curricula. [The current 4-week NC OJT/SS CBO HCTA model is
more of a readiness course and needs to be segued out, or an additional
4-6 week paid, real-world work experience attached to it, and/or
considered a pre-apprenticeship.]
Participants will graduate from all training with industry-
recognized construction (micro) credentials. This (additional) training
will cover a wide range of skills needed by the highway transportation
industry, including dump truck CDL, heavy equipment operation,
striping, flagging, surveying, rigging, and signaling, scaffolding, rod
tying, pipe laying and forklift operations. These upgrade skills
trainings are/will be offered by several types of entities: heavy
equipment distributors, contractors, community colleges, LTAP, and
other approved on-call Advanced Training providers around the State.
Perhaps it can be designed to be modular or competency-based in nature
including basic math, written and interpersonal skills, and the OSHA
Safety Certificates.
Other Professional Development sessions will teach even more
advanced skills, such as team building, critical thinking, and conflict
resolution. All courses/programs will culminate through connecting
completers/graduates to participating highway construction firms for
job interviews and placement/employment. Some graduates may even be
able to work towards opening their own contracting firm, with supports
and training via NC DOT's BOWD, local EDCs, UMCNC, and NCSU's ITRE/LTAP
business and professional development courses and TA. Again, a critical
Pre-/Apprenticeship component will also be added to the current NC OJT
program via the Community Colleges (USDOL funded State Apprenticeship
Expansion Grant).
4. Program Activity Linked to Workforce Development and
Jobs
By having contractors lead the WG effort, Community Colleges host
HCTAs, and adopting a recognized Pre-apprenticeship and Apprenticeship
program, NC will better link WD practices with actual contractors and
construction jobs. A more uniform approach to training, including
community college apprenticeship connection, will also help trainees to
visualize a construction career ladder. NC hopes to rekindle interest
in the heavy highway construction industry--from middle schools
onward--by professionalizing the un/skilled trades through industry-
recognized training. Trainees will work through CAGC and UMCNC members
and NCCCS to receive recognized pre-apprenticeship and apprenticeship
certification, among other micro-credentials. The CAGC/UMCNC, NCDOT,
NCCCS, and Division of Workforce Solutions will work with partnering
contractors to employ/place successful graduates of the programs in
hopes of setting them on a career path in the heavy highway
construction industry leading to full-time, gainful employment.
Statewide recognition of these new standardized training programs will
also help completers transition into the existing job market more
easily. This will have the added benefit of NC highway/bridge projects
being built and maintained more safely, efficiently, and cost-
effectively by home-grown talent.
Staff and consultants will meet with participants and training
providers periodically to identify and resolve issues that may arise.
NC OJT/SS field consultants will meet with program partners and/or
individual trainees to provide them with any support needed while in
training, or first weeks on jobs. These supportive services may include
safety gear and PPE purchase, tutoring, counseling services, childcare,
transportation, housing, and financial assistance for any other
personal issues that may negatively affect trainee success. [Supportive
services funding is need based case-by-case and discretionary, and does
not exceed 1 year per trainee (30 days is the longest we currently pay
for day care and housing).] This project will also increase the number
of Advanced Training providers, courses, and opportunities for both
HCTA completers and OJT trainees. Periodic check-ins with participants/
workers will help promote up-skilling and maybe even peer-to-peer
mentoring, in addition to retention.
While nothing beats on-the-job training, the WG members believe
that trainees/participants can gain critical knowledge in the
classroom, on-line, and via hands-on training in simulated work
experiences prior to employment. What almost all contractors say they
need most are workers who have the basic job and life skills to succeed
in the real work world. These include `soft' employability skills,
basic math, oral and written communication skills, and OSHA 10-hour
safety and health training. If potential workers are moved into
technical construction training before they have those foundational
skills, they can fail to get or stay on jobs. To this end, all
curricula will be built with these necessary building blocks in mind.
Inaugural WG members also believe that many highway construction
skills are transferable across various construction modes, whether it
be vertical building or horizontal highway/bridge construction. So,
training workers for non-highway projects will add good carpenters,
electricians, masons, etc. to the future pool of available highway
workers, and benefit the heavy highway construction sector as well.
Furthermore, following the industry-led Needs Assessment, other
partners in education and training will mold their offerings directly
to those occupations, skill levels, and job needs contractors have
identified. While, as indicated elsewhere, there are some existing
basic training programs that provide at least some of those skills--
such as offered by OJT/SS, CAGC, ITRE, etc.--totally new ones need to
be built as well. Also, training resources, though somewhat scattered
and disconnected, are available, but the key partners and potential
participants are not always aware of them. This grant will allow us to
create and meld together an effective coordination and communication
plan for external outreach through a shared marketing message. By
building close relationships with the primes and DBEs, and everyone in
between, through our pilot Working Group, and then designing/offering
training programs to meet their immediate needs, this NC Strategic HWCP
will be more successful and mutually rewarding.
5. Plans for Outreach, Recruitment, and Sharing Results
Like many other states, NC faces overarching challenges to getting
sufficient applicants for highway construction jobs: 1. Poor
understanding of the true opportunities and nature of jobs/demands in
the `field'; 2. A perception by youth/parents and adults that a college
degree is always preferable to any (highway) construction or other
trades career; and 3. Poor marketing and outreach approaches by the
industry and WD/education partners to date. Initial NC Working Group
partner conversations have identified a gap between the perception of
highway construction careers and the reality. Therefore, it is
important to communicate that highway construction involves many
cutting-edge technologies and hi-tech skills, plus high pay.
The push for college attendance by many parents and school systems
has also presented a challenge, though the economic realities of COVID
have ameliorated this somewhat. But through the NC Strategic HCWP work
with LEAs (school systems), NCWorks Career Centers, and community
colleges, counselors will begin to communicate that highway
construction is a viable career option for many--including Veterans.
The addition of a Pre-/Apprenticeship will be advertised as the
``other'' `college degree' along with new community college-based
Highway Construction Trade Academies (supported in part by NCDOT OJT/SS
funding). In addition, FHWA and CAGC developed outreach materials,
packaged messaging, and the social media hashtag--#RoadsToYourFuture--
will be adopted, adapted, and used by all partners to better
communicate our collective efforts and value-add to the general public
and industry stakeholders.
6. Contractors: Competitive Selection and Service Provision
There are several methods that will be used for the competitive
procurement of consultants, such as Professional Services, Purchasing,
Research, etc. Solicitation of competitive bids include RFLOIs (formal/
informal), RFPs, and Federal Grant applications. There are some nuances
to each process; however, competitive typically means formally posting
advertisements publicly for a minimum period of time, with selection
criterion and requirements for submission of a response, plus other
required provisions. Following posting, a selection process is used to
determine which firm(s) will be awarded the contract. The selection
process includes a team who scores/evaluates each submission, plus
perhaps an interview, and the recommendation for contract award must be
based on the selection criterion posted in the advertisement, and that
all other requirements for submission are met. Consultants contracted
for this grant will include work on the Needs Assessment; Marketing;
and Formal Independent Program Evaluation.
7. Evaluation and Monitoring Plan
The fiscal monitoring will be done via the detailed budget prepared
for this grant and through a report that NCDOT Business & Finance will
produce quarterly. The grant required Quarterly Report submittal will
also provide fiscal as well as programmatic/performance information. NC
DOT will also hold contractors, if applicable, accountable for
performance and achieving specific, measurable outcomes, including
providing: a statement of work including outcomes; monthly or quarterly
reports containing sufficient statistical data and narrative content to
enable evaluation of both progress and problems; access to contractor
records and the right to audit; a non-collusion certification; a
requirement that contractors provide all information necessary to
support progress payments if such are provided for in the contract; a
clause for contractor termination; and nondiscrimination provisions
required by Title VI of the Civil Rights Act of 1964 as set forth in
FHWA Form PR-1273, and a statement of nondiscrimination in employment
because of race, color, religion, age, national origin or sex. (The WG
also proposes a formal independent evaluation of the program/s.)
8. Expected Duration of the Project
This HCWP project would be a two (2) year a new pilot program--
complete with Working Group and targeted Needs Assessment--that will
leverage, modify, and build upon some existing partner WD activity with
new and/or increased involvement of the NCDOT. The two (2) new
innovations for year one (1) are for NCDOT to implement a community
colleges Highway Construction Trade Academy (HCTA) model, plus the
addition of the Pre-/Apprenticeship components. This would all be based
on the results of the comprehensive Needs Assessment. In year two (2),
a stronger connection to the State's high school CTE programs--official
career pathway and/or actual school-based HCTA--would also be a new
initiative. The addition of a post-HCTA/pre-hire or OJT placement paid
training allowance period would be another innovation under this grant
activity.
9. Schedule for Completion of Tasks
There are two major, complex, and over-arching deliverables for
this 2-year project. The first deliverable consists of a formal
statewide HC industry and education gap assessment--for both near- and
long-term contractor workforce needs. The second group of key
deliverables will be the multiple training curricula and delivery
models tailored to meet the contractors' workforce needs. This schedule
assumes a late June 2021 grant ward.

------------------------------------------------------------------------

------------------------------------------------------------------------
Implementation Calendar.................................................
------------------------------------------------------------------------
July 2021................................. Official grant
`kick-off'
Initiate hire of
the overall Program
Coordinator (PC)
Strategic tasks and
roles will be delineated
(MOUs/MOAs)
------------------------------------------------------------------------
August-September 2021..................... Contract researcher
to conduct various surveys
-Contractor workforce
training needs
-Community /Project
workforce survey
-Education & training
providers inventory
------------------------------------------------------------------------
October-November 2021..................... Collection,
analysis and report out of
surveys and other data
Explore Pre-/
Apprenticeship aspect to
OJT with community colleges
Sub-task: A new
training allowance and paid
work-based learning/co-op
experience for community-
based HCTA completers (4-6
weeks) considered for
implementation
------------------------------------------------------------------------
December 2021............................. Presentation of
initial survey findings and
begin working on a final
Workforce/Development Needs
Assessment Report
Sub-task: Begin
forging more formal
connections with NCWorks/
WIOA partners
Submit 2Q report
------------------------------------------------------------------------
January 2022.............................. Final report
including recommendations
due by researcher
WG and contracted
consultant co-develop an
outreach, PR, marketing,
and recruitment message and
shared strategy for both
prospective participants,
contractors, and public
------------------------------------------------------------------------
February-April 2022....................... Finalize
development of training
curricula and programs
Begin recruitment,
also newly targeting
veterans
Submit 3Q report
------------------------------------------------------------------------
May 2022.................................. NC Community
Colleges begin pilot
`Academy model' training to
initial program
participants including pre-/
apprenticeship aspect (*A
Federal grant application
process will be used to
`procure' these services
from the CCs via NCDOT's
OJT/SS funds.)
------------------------------------------------------------------------
June-July 2022............................ Graduate first
cohort of Community College-
based Academy
Submit 4Q and 1st
annual performance reports
------------------------------------------------------------------------
August 2022............................... Placement and
employment activities for
1st cohort completers
Plan for fall
career events for middle
and high schools
------------------------------------------------------------------------
Sept-October 2022......................... Assess and evaluate
pilot CC-based HCTA
programs and results
Submit 1Q report
------------------------------------------------------------------------
Nov-December 2022......................... Launch 2nd cohort,
Community College- and/or
Special Population HCTAs
Submit 2Q report
Mid-term
independent evaluation
results due
------------------------------------------------------------------------
Jan-Feb 2023.............................. Graduate and place/
employ 2nd cohort of
participants
------------------------------------------------------------------------
March 2023................................ Submit 3Q report
------------------------------------------------------------------------
April-May 2023............................ Conduct robust and
comprehensive joint
Construction Career Day
------------------------------------------------------------------------
June 2023................................. Submit 4Q and final
Annual (Two-Year) Reports
to FHWA
Final external
evaluation of overall
program due
------------------------------------------------------------------------

E. Performance Measures
NCDOT's OJT Department already has a plan and system in place for
recording and reporting its programmatic outcomes to FHWA on a
quarterly basis, including a description of the activity and
accomplishments made, challenges or difficulties experienced/addressed,
and activity/program plans for the next quarter. As applicable,
quarterly reports for this grant will include the number of
individuals--especially women, minorities, and disadvantaged:
1. who entered into a highway construction skill development/
training program(s),
2. successfully completing the program(s) and/or achieving an
applicable credential(s),
3. placed in highway construction jobs and/or advanced incumbent
workers, and
4. work retained after 180 days.

To this list, the WG would like to add the following: Number of
program participants attaining a credential; Average wages; and Number
of participants in pre-/apprenticeship programs. In addition, Costs and
any Budget Revisions will be included as will qualitative metrics such
as survey results, exit interviews, and worker tracking, but not
limited to this data. Working Group members and other partners are
committing to continual cycles of collaboration, training and placing/
employing workers, and program/s evaluation.

Measurable Performance Evidence Oversight Plan
----------------------------------------------------------------------------------------------------------------

-----------------------------------------------------------------------------------------------------------------
Objective 1: Conduct Needs Assessment
----------------------------------------------------------------------------------------------------------------
Metrics: A) Jobs/skills Assessment; B) Training skills Assessment outreach plan
Deliverables: Recruitment plan, Outreach materials, and Assessment tools.
Evaluation: The information collected will help NCDOT and WG to determine which geographic areas and trades
would benefit the most from HCTAs and Pre-/Apprenticeship training and job placement at the targeted NC highway
projects.
Responsible for information collection: NC Project Coordinator/Researcher
----------------------------------------------------------------------------------------------------------------
Objective 2: Perform outreach, recruitment, placement, and case management
----------------------------------------------------------------------------------------------------------------
Metrics: A) Recruitment activities; B) Number of applicants; C) # of placements.
Deliverables: Recruitment plan, Outreach materials, and Assessment tools.
Evaluation: The information collected will demonstrate the recruitment and marketing strategies used and
determine efficiency and effectiveness. Number of qualified applicants will show demand for the program.
Evaluation of applications and assessments can determine if the training collaborative collected the proper
information on each participant.
Responsible for information collection: NCWDBs; NCCCS; NCDOTOJT; CAGC Contractors
----------------------------------------------------------------------------------------------------------------
Objective 3: Provide Education & Training
----------------------------------------------------------------------------------------------------------------
Metrics: A) Number of enrollments; B) Number of graduates.
Deliverables: Attendance records, Periodic progress reports, Class evaluations, Graduation/Completion
certificates
Evaluation: The PC will use attendance records supplied by other partners to track the number of enrolled
participants. Weekly progress reports will track participant's success rates. Class evaluations will provide
student feedback on course effectiveness. The PC will use this information to assist with program planning.
Responsible for information collection: NCCCS; NCWDBs; NC OJT; CAGC/Contractors
----------------------------------------------------------------------------------------------------------------
Objective 4: Ensure 100% employment within 6 months of graduation
----------------------------------------------------------------------------------------------------------------
Metrics: A) Number of placements; B) Average wage at placement; C) Trade/employment data
Deliverables: Copies of employment offer letters, emails, or timesheets
Evaluation: Timesheets will prove employment in the industry.
Responsible for information collection: NCWDBs; NCCS; CAGC/Contractors; NC OJT
----------------------------------------------------------------------------------------------------------------
Objective 5: Provide employment supplemental services to program participants
----------------------------------------------------------------------------------------------------------------
Metrics: A) Number of trainees needing assistance
Deliverables: Proof of employment, job needs assessment, receipts
Evaluation: Employment records will demonstrate actual employment. Needs assessments will demonstrate potential
barriers the trainee faces. Receipts for purchases will show that financial assistance was provided to trainee.
Responsible for information collection: NCOJT/Consultants; NCWDBs; NCCCS
----------------------------------------------------------------------------------------------------------------
Objective 6: Provide post-graduation tracking of participants for Federal reporting and administrative purposes
----------------------------------------------------------------------------------------------------------------
Metrics: A) Number Employed; B) Number in OJT; C) Number in Advanced Training (AdT); and D) Pre-/Apprenticeship
status report
Deliverables: Demonstrated progress as the trainee works through initial employment/OJT, AdT, and/or Pre-/
Apprenticeship program
Evaluation: Quarterly reports will demonstrate the participants are full-time and utilizing their newly acquired
skills.
Responsible for information collection: NCWDBs; NCCCS; NCOJT/Consultants; CAGC Contractors
----------------------------------------------------------------------------------------------------------------

All Objectives: Responsible for analysis/report to FHWA: NC Project
Coordinator

F. Geographic Location, Target Groups, and Emphasis Areas
NCDOT is divided into 14 highway divisions in three (3) regions.
Factors considered when selecting the location of an NC highway
construction trades academy are and will be:
Active contract award in a county (region); Average project
completion rate; Number of open projects; Tier rating of the county
(region); Urban development factors/community develop initiatives; and
Natural disasters impacting regional transportation needs.
A formula is then used to calculate the number of Academy
participants that have the potential to become employed in the
location. Academies will also be placed in higher Tier (2 and 3)
communities to address workforce issues or problems affecting qualified
opportunity zones--usually pockets in more urban areas. The map below
shows current and proposed HCTA sites.
Project Map

NCDOT Division Map

Target populations include women, minorities, and other
disadvantaged groups. NCDOT defines disadvantaged populations as:
Veterans; Homeless/Displaced; Unemployed; Justice challenged;
Documented disability; and any Resident of a Tier 1 NC County. It is
also expected that this project will launch the new community college-
based HCTA and then OJT/Pre-apprenticeship program for job placement in
collaboration with two NC tribal organizations and a Re-Entry model
through NC Department of Public Safety/Corrections. The planned Needs
Assessment will identify additional recruitment areas and other
potential targeted demographic groups.
While NC OJT/SS always targets non-traditional and under-
represented populations, evidence from 2020 NCDOT OJT data indicates a
need to recruit more minority females to all programs. In 2020,
participants in all OJT activities were approximately 33% Black, 31%
Hispanic, 30% White, and 6% Other; 76% Male, 24% Female; Average Age
32; and 20% Tier 1 County Residents. While difficult to project, the WG
believes that a total of 225 such participants will complete their
program/s and be employed over this 2-year grant performance period.
G. Final Deliverables
NCDOT and the current WG members would like to share successes,
program models, and best practices with others. To demonstrate
outcomes, the WG already plans to present a break-out session during
the annual statewide NCWorks Partnership Conference and explore the
creation of an entity and/or membership conference or structured
regional (Southeastern) peer exchange vehicle for national/State DOT
OJT colleagues.
Annual/Final Reports
The NCDOT SHCWP Project Coordinator will be responsible for
preparing an annual report upon the completion of each program year.
The reports will include: Comprehensive account of program
accomplishments; The number of individuals affected; Identified issues
and implemented resolutions; Other items that impacted program
performance and outcomes; Status of goal achievement; Recommendations
for program improvements; and Quantitative and qualitative performance
results and budget status detailing expenditures, and explanation of
deviations. There will also be an Annual Budget Review and Program Plan
submitted at the mid-point of the 2-year performance period.
The second final detailed program report will be submitted to FHWA
within 60 days after completion of the grant-funded project in
accordance with the guidelines. In addition to updating the first-year
report for 12 additional months, this final report will also include a
section on lessons learned. NCDOT will also provide a summary of goals
and measurements in the final report and will state whether the 2-year
program met the established goals. Finally, there will be a separate
evaluation completed by an independent external party of the entire 2-
year program.
Other Final Deliverables
Additional final products and deliverables may include, but not be
limited to: Needs assessment; Program SOPs; Program outlines/
descriptions; Case studies; Curricula and class materials; Websites;
Applications and/or software; Recruitment materials, flyers, and
brochures; Pictures/videos; and/or other reports including the formal
final evaluation.
FHWA seeks the scalability of this and other programs. To that end,
the NCDOT/WG will include in the final report a description of how the
project can apply or scale to others along with recommendations. The
final project deliverables will improve the state of the practice for
workforce development within the highway construction industry in NC
and hopefully other parts of the US.
H. Cost Proposal
Budget Proposal and Financial Requirements
NCDOT requests $200,000 in total FHWA grant funding to meet all
objectives. There are also estimated in-kind/matching contributions
from various partners for each task. Please find the budget summary and
narrative for these objectives below (related to 424 and 424A forms).
[NOTE: The cost of training and supportive services at the 5 community
college HCTAs will be covered by OJT/SS funds at $100K per. Funds will
also be coupled with the Apprenticeship State Expansion Grant the NCCCS
received from USDOL to expand registered apprenticeship to pay for the
tuition, books, and fees--$3,000 per apprentice as long as there are
funds available, and it is an approved program.]

Task/Expense 1: Employ/Supervise/House FT Project Coordinator (Two
Years)
------------------------------------------------------------------------
Project Coord. NCDOT Budget Summary
------------------------------------------------------------------------
FUNDING
ITEMS REQUESTS IN-KIND TOTAL COST
------------------------------------------------------------------------
Personnel........................ $100,000.00 $19,000.00* $119,000.00
--------------------------------------
Totals:........................ $100,000 $19,000 $119,000
------------------------------------------------------------------------
Personnel: $100,000 (Grant); $11,000 Supervision/Hosting by OJT
Management, $8,000 WG Partner Meetings (In-kind funds) NCHCWP Project
Coordinator: The PC will administer the overall program, which includes
an outreach plan review, recruitment efforts, community college HCTA
pilots, program application review, federal reporting, and other
program support, as needed. *Supervision/Occupancy (In-kind): NCDOT's
estimated in-kind is $11,000 for management supervisory time and
travel, office space and equipment/supplies (state funds) for 2 years.
See Section C. B. Applicant on 424A. Partner members (public/private)
contributing $8,000 worth of WG meeting time. See C. State and D. Other
on 424A................................................................
------------------------------------------------------------------------

Task/Expense 2: Conduct Needs Assessment (Year 1)
------------------------------------------------------------------------
Needs Assessment NCDOT Budget Summary
------------------------------------------------------------------------
FUNDING
ITEMS REQUESTS IN-KIND TOTAL COSTS
------------------------------------------------------------------------
Contractual Research............. $50,000.00 $10,000.00* $60,000.00
--------------------------------------
Totals:........................ $50,000 $10,000 $60,000
------------------------------------------------------------------------
Contractual: $50,000 (Grant); Coordination and Assistance: $10,000 (In-
kind WG Members) As indicated above as well, NCDOT will contract a
researcher to conduct a formal statewide ``Needs Assessment''. This
process will determine local employment interests, contractors'
workforce needs/gaps, and an environmental scan of existing or to-be-
developed training and employment opportunities and potential
participants. *Personnel (In-kind): NCDOT ($2500) and other partner
staff (CAGC/members) will work with the consultant to identify focus
areas and help provide select data for the `Needs Assessment' for a
total $10,000 in-kind public/private match. See Section C. 424A........
------------------------------------------------------------------------

Task/Expense 3: Develop/Launch Shared Marketing Message/Collateral
------------------------------------------------------------------------
Marketing NCDOT Budget Summary
------------------------------------------------------------------------
FUNDING
ITEMS REQUESTS IN-KIND TOTAL COSTS
------------------------------------------------------------------------
Materials Development............ $10,000.00 $2,500.00* $12,500.00
--------------------------------------
Totals:........................ $10,000 $2,500 $12,500
------------------------------------------------------------------------
Contractual: $10,000 (Grant); Coordination and Assistance: $2,500 (In-
kind WG Members) As described in D.5, the PC will work with a
consultant and *all WG members to develop and launch an outreach and
marketing program for both potential program participants and
contractor employers as well. This will also be usable with the general
public and parents.....................................................
------------------------------------------------------------------------

Task/Expense 4: HCTA-based Skills Trainings, and Pre-/Apprenticeship
Component
------------------------------------------------------------------------
Skills Trainings NCDOT Budget Summary
------------------------------------------------------------------------
FUNDING
ITEMS REQUESTS IN-KIND TOTAL COSTS
------------------------------------------------------------------------
Course Development............... $25,000.00 $10,000.00* $35,000
Apprentice Registration.......... $5,000.00** $5,000
--------------------------------------
Totals:........................ $25,000 $15,000 $40,000
------------------------------------------------------------------------
Curricula/Training Development: $25,000 (Grant); Coordination and
Assistance: $15,000 (In-kind WG Members). Curricula and lesson plans to
provide training based on results of the workforce Needs Assessment.
*Additional In-Kind contributions will be from having OJT ($3,000) and
WG members/contractors consulting with NCCCS ConEd course development
staff to create the curriculum training based on the Needs Assessment
for total $10,000. **A community college consultant will work with
NCDOT/OJT to register the pre-apprentices and apprentices $5,000. See
Section C. columns on 424A.............................................
------------------------------------------------------------------------

Task/Expense 5: Develop and Conduct Evaluation of Program Results
------------------------------------------------------------------------
Skills Trainings NCDOT Budget Summary
------------------------------------------------------------------------
FUNDING
ITEMS REQUESTS IN-KIND TOTAL COSTS
------------------------------------------------------------------------
Program Evaluation............... $15,000.00 $2,500.00* $17,500.00
--------------------------------------
Totals:........................ $15,000 $2,500 $17,500
------------------------------------------------------------------------
Contractual Program Evaluation: $15,000 (Grant); Coordination and
Assistance: $2,500 (In-kind WG) Independent researcher will conduct a
formal program evaluation with *in-kind assistance from various WG
members including individual contractors. See Section C. 424A..........
------------------------------------------------------------------------

Questions from Hon. Peter A. DeFazio to Brent Booker, Secretary-
Treasurer, North America's Building Trades Unions

Question 2. In her written testimony Ms. Karst states that,
``government-mandated PLAs hurt both union and open-shop contractors.''
What impact do PLAs have on the building trades unions' members?
Answer. Mr. Chairman, the benefit of a PLA to workers is
tremendous, whether they are members of building trades unions or not,
as both union and non-union contractors bid on PLAs. A PLA creates a
uniform and stable system of labor relations for a project. A PLA
standardizes the terms and conditions of employment for everyone who
works on the project, establishes various forums for communication and
coordination, and prevents work stoppages with no-strike, no-lockout,
and speedy dispute-resolution provisions. Furthermore, PLAs help create
well-paying jobs and expand job opportunities for disadvantaged and
marginalized communities. And PLAs often include provisions on
apprenticeship and apprenticeship readiness programs that enable
workers to ``earn while they learn'' and put them on the path to
becoming highly skilled, six-figure earning construction workers.
Apprenticeship readiness requirements in PLAs have helped thousands of
women, people of color and veterans access career pathways in the
construction industry. Furthermore, PLAs ensure pay equity, as the
uniform terms apply to women and men alike on the job. A PLA ensures
that a journey-level plumber, for example, earns the same wage
irrespective of their gender, race, age, ethnicity, etc.
Project owners also recognize the benefits of PLAs, which is why
they have been used on private sector and public construction projects
for almost 100 years. PLAs help meet deadlines by providing a steady
supply of highly skilled labor, helping to ensure that large-scale
projects are completed on time, with the highest degree of quality, and
in a cost-effective manner. PLAs produce substantial direct and
indirect cost savings, provide job stability, and promote productivity
and greater efficiency. In fact, due to the use of a PLA, the Navy's
multi-year effort to build a Second Explosive Handling Wharf at Naval
Base Kitsap-Bangor in Washington state came in approximately $250
million under budget.
As far as the issue of government-mandated PLAs, within the context
of the Infrastructure Investment and Jobs Act, there is unfortunately
quite a bit of misinformation out there. Opponents of PLAs have tried
to give the impression that the Biden Administration's Executive Order
on PLAs is mandating their use on all the projects funded under the
law. That is false. The Executive Order only applies to direct federal
procurement, not federally assisted construction like that covered by
the Infrastructure Investment and Jobs Act. The federal assistance
provided under the infrastructure law, whether through formula funding,
discretionary grants, loans, etc., is not subject to the Executive
Order. Federal agencies can encourage PLAs use on such projects, but
PLA use on such projects is not mandated under the Executive Order.

Question from Hon. Henry C. ``Hank'' Johnson, Jr. to Brent Booker,
Secretary-Treasurer, North America's Building Trades Unions

Question 1. Too often, federal funding has experienced peaks and
valleys depending on the party in power. The IIJA provides a historic
level of funding for infrastructure, but agencies need consistent
support to meet the enormous demands of maintaining our roads, bridges
and sewers. Funding from IIJA will last years but not forever.
How can we maximize workforce training and job creation to be
immune from the variable funding going forward? Or at least ensure that
the skills are transferable.
Answer. Congressman Johnson, the best way to maximize workforce
training and job creation, and to ensure skills are transferable, is to
maximize the Registered Apprenticeship system. The building trades'
Registered Apprenticeship system is comprised of 1,600 joint labor-
management training centers across the United States, in practically
every single Congressional district. Our programs are not dependent on
federal funding to operate and continually train both apprentices and
provide up-skill training to journey-level workers. This allows us to
respond to the demands of the constructure market without being captive
to the fluctuations in federal funding levels. However, that it not to
say that core formula programs do not need a stable and long-term
funding mechanism, because they absolutely do, and we hope Congress
will provide that in the very near future.
As far as the transferability of skills, once again, the best way
to maximize that is to maximize the Registered Apprenticeship system.
Our members' skills are transferable because our programs train for the
breadth of a career in a craft. A member could be working on a transit
or aviation project, and go from that project to an energy project, or
a commercial construction project, or a port project. The benefits of
the Registered Apprenticeship system ensure that workers are properly
trained so that their skills are not only transferrable, but portable
as well.

Questions from Hon. Eddie Bernice Johnson to Brent Booker, Secretary-
Treasurer, North America's Building Trades Unions

Question 1. Mr. Booker, the training program you described sounds
excellent. What is the process for getting into the program?
Answer. Congresswoman Johnson, the process is fairly
straightforward. A prospective construction apprentice does need to
have some basic math skills to, for example, allow them to read
blueprints. Other than that, they need to show up and be ready and
willing to learn and work, and sign an apprenticeship agreement. In
order for an apprenticeship position to become available and for our
training centers to open their doors, we work with our contractor
partners to determine their workforce needs, and train accordingly. We
also work with community-based organizations around the country to
establish well-defined pathways for their constituents into
Apprenticeship Readiness Programs and ultimately into building trades
Registered Apprenticeships.

Question 2. Mr. Booker, Ms. Karst stated that Project Labor
Agreements hurt union employees. Would you disagree with that?
Answer. Congresswoman Johnson, I wholeheartedly disagree with that.
The benefits to workers that are ensured by a PLA are numerous, and as
someone who has negotiated PLAs, I can tell you that labor will not
agree to provisions that hurt workers, period. It is hard to imagine
how PLAs' assurance of uniform and stable labor relations that
establish pay equity and fairness hurt workers.

Question 3. Mr. Booker, there is a lack of skilled transportation
construction workers for many projects today. What else could
contractors and other transportation companies be doing to develop,
train, and retain a skilled transportation workforce?
Answer. Congresswoman Johnson, in our experience, the best way to
develop and train a skilled workforce is through the Registered
Apprenticeship system. In our experience, the best way to retain a
skilled workforce is to treat workers with the dignity and respect that
they deserve by paying them good wages, with good benefits such as
healthcare and retirement, so that they can provide for themselves and
their families and make them want to show up and take pride in their
work. It has been argued that the United States has a skills gap, but
we would argue that we in fact have a pay gap, where too many are not
willing to compensate workers to the extent that the job they are
trying to fill is an attractive career option.

Questions from Hon. Mark DeSaulnier to Brent Booker, Secretary-
Treasurer, North America's Building Trades Unions

Question 1. As you know, the country has already begun a transition
away from fossil fuels in response to the climate crisis and the
transition will only accelerate. While prioritizing that transition,
however, we must ensure that we provide support to those workers who
are at risk of being displaced and provide them with opportunities for
meaningful work that offers the same standard of living. I have
authored legislation aimed at tackling this challenging problem with a
multifaceted approach, but the whole transition will require a lot of
planning and support.
How are the Building Trades planning and preparing for this
eventuality and what can Congress do to assist your efforts?
Answer. Congressman DeSaulnier, because the building trades'
Registered Apprenticeship programs train for the breadth of a career in
an individual craft, our members are prepared to build every type of
energy project, and at this moment we are particularly focused on
offshore wind, which holds tremendous promise not just for renewable
energy, but for job creation with good wages and benefits, and could
open doors of opportunity to many of those who have been left out.
I would say that the single greatest thing that the Congress could
do to ensure building trades members view the transition as a lateral
move rather than a step down is to ensure that any and all types of
federal assistance, whether it is through grants, loans, or tax
credits, which provide funding for renewable and cleaner energy
projects, have strong labor standards. The type of standards that we
see throughout surface transportation programs for instance, like
strong Davis-Bacon prevailing wage and Buy America provisions, must be
included in cleaner energy projects. Furthermore, Congress can ensure
that projects that receive federal assistance utilize registered
apprentices, which will guarantee proper training opportunities to
ensure that a new generation of highly skilled construction workers is
trained on all projects, including cleaner energy projects.

Question 2. The Infrastructure Investment and Jobs Act made
historic investments in electric vehicle charging stations. In order to
see the full value of these investments, however, we must ensure that
we have the workforce trained to do the work.
What efforts are currently underway to support the unionized
workforce to be able to step in and install EV chargers at the rate
that will be needed?
Answer. Congressman DeSaulnier, because we train for the breadth of
a career, building trades members are already prepared to build this
infrastructure. Our affiliates and their contractor partners are
already training on this technology. The level at which we can build EV
charging projects will be determined by how successful our contractor
partners are in winning bids to build that infrastructure. With our
training programs, I am confident that our members will be the ones
building EV charging stations.

Questions from Hon. Jake Auchincloss to Brent Booker, Secretary-
Treasurer, North America's Building Trades Unions

Question 1. This [https://www.hbs.edu/managing-the-future-of-work/
Documents/research/hiddenworkers09032021.pdf] Harvard report highlights
the disparity between individuals eager to find full-time employment
but are often overlooked by employers when they do not meet specific
hiring criteria.
1.a. In your testimony, you mention apprenticeship training
programs that allow individuals to get paid while they gain the on-the-
job experience necessary to secure a full-time position. Can you
explain the pay and benefits apprentices receive during their training?
Answer. Congressman Auchincloss, first and foremost, apprentices do
not pay tuition for their world-class training. Second, apprentices
typically receive a percentage of journey-level pay depending upon
their level in the Registered Apprenticeship program. For example, an
apprentice in their final year of training may receive 90% of journey-
level pay, while a starting apprenticeship may receive 50% or 60% of
journey-level pay. There is no standard formula, but what is uniform is
that apprentices enrolled in our Registered Apprenticeship programs
receive a graduated pay scale so that prospective apprentices know from
day one what they will be paid and when they will see pay increases. It
is transparent, allowing someone who is looking to enter the
construction trades to make an informed decision on whether or not to
enter the program. As we have seen an average of 75,000 new apprentices
per year for the last five years, we are confident that more and more
individuals view the construction trades as a good career option.

1.b. How can apprenticeship programs connect hidden workers with
meaningful employment?
Answer. Congressman Auchincloss, our Apprenticeship Readiness
Programs have articulation agreements with one or more of our
Registered Apprenticeship programs. This allows for those who go
through Apprenticeship Readiness to transition to Registered
Apprenticeship more easily. As I stated in my testimony, we utilize
Apprenticeship Readiness to bring in more women, communities of color,
the justice involved and veterans into our programs. These can also be
utilized by hidden workers, who may be trying to find a career path
that offers them more stable employment and who aren't quite sure which
career path may be best suited for them. As far as our Registered
Apprenticeship programs, I can confidently say that those who are
looking for a stable, secure pathway to a long-term, middle-class
career can join one of our programs, and receive good wages and
benefits from day one. And since our unions, in conjunction with our
contractors, fund these programs privately, someone wishing to enter
into the construction trades can do so with the confidence that they
will not be burdened with debt.

Questions from Hon. Peter A. DeFazio to Kari J. Karst, President and
Chief Executive Officer, BX Civil & Construction, on behalf of the
Associated General Contractors of America

Question 1. Ms. Karst, your written testimony states that
``recently, the U.S. Department of Transportation has signaled a desire
to impose preferences for projects that include local hire
requirements.'' However, the statutory authority provided by the IIJA
clearly stipulates that a project's sponsor may utilize local labor
hiring preferences if they want to, but there's no preference or
requirement for their use.
Do you oppose state and local governments having the flexibility to
require contractors to ensure that a portion of their workforce on a
construction project be hired from the community where the project is
being built? Why or why not?
Answer. We share the goal of seeing more people--particularly from
disadvantaged areas--enter the middle class via high paid construction
careers. Our members are desperate to hire workers and would love to
hire local employees where they do business. On a construction site,
our number one job is to maintain safety. So these requirements must
have flexibility to not only ensure that their current workforce, union
or non-union, is not displaced but also ensure that the safety of all
workers is not jeopardized because these hires lack the proper training
and experience.
Unfortunately, too many communities have defunded their career and
technical education programs and as a result there are often too few
local workers with any interest in construction careers or basic skills
that would make them qualified to hire.
Local hire programs let communities off the hook for failing to
provide sufficient career and technical education options to meet
employer needs. As a result, we have seen some local hire programs,
where 80 percent of people hired from local communities that are hired
choose to leave the job before the project is even finished. Local hire
programs solve a symptom and not a problem.

Questions from Hon. Henry C. ``Hank'' Johnson, Jr. to Kari J. Karst,
President and Chief Executive Officer, BX Civil & Construction, on
behalf of the Associated General Contractors of America

Question 1. Black Americans continue to struggle with unemployment
at unacceptable levels--currently [https://fred.stlouisfed.org/series/
LNS14000006], it's at 6.2 percent. Although that's an improvement from
an obscene 16.6% unemployment in May 2021, we can all agree there is
always room for improvement.
1.a. What have been the largest factors in preventing Black
Americans from joining the construction workforce?
Answer. Attracting a more diverse workforce continues to be a
priority for the construction industry. The Culture of CARE is an
initiative created in partnership between the Associated General
Contractors of America (AGC) and the AGC of Washington to advance the
construction industry as the industry of choice for diverse and
talented workers by building inclusive work environments in
construction firms nationwide.
To foster an environment that will attract a more diverse
workforce, AGC of America is asking construction industry leaders to
make a public commitment to building diverse and inclusive workplaces
by taking the Culture of CARE pledge. The Culture of CARE pledge has
four pillars:
Commit to hire and pay based on skill and experience,
regardless of ability, age, ethnicity, gender identity, nationality,
race, religion, sex or sexual orientation;
Attract prospective employees, suppliers and
subcontractors by creating inclusive workplaces that are free from
harassment, hazing and bullying;
Retain high-performing employees by identifying and
removing barriers to advancement; and
Empower every individual to promote a culture of
diversity and inclusion

Culture of CARE helps companies be more proactive and intentional
about creating a culture where every employee feels valued, safe, and
welcomed by providing resources to address common diversity- and
inclusion-related challenges in the construction industry. Resources
include sample HR policies, toolbox talks on mental health and suicide
prevention, racism, sexism, and creating a Culture of CARE; and a
company assessment to help companies establish benchmarks and measure
progress related to diversity and inclusion efforts.
To date, more than 700 companies have taken the Culture of CARE
pledge, including AGC of America and 35 AGC chapters, other national
industry associations, and unions.

1.b. How can job creation and workforce development programs
elevate Black Americans and those of color, who even now face unequal
opportunities in the workforce?
Answer. Attracting a more diverse workforce continues to be a
priority for the construction industry. AGC fully embraces diversity
within its membership. People of diverse backgrounds, opinions,
perspectives, experiences, and ideas bring creativity and vitality that
maximizes member engagement at all levels of the association. Fostering
an environment that is welcoming and inclusive to all individuals is
essential to achieving our mission and places our members in a position
to contribute to the industry's future success.
In addition to the Culture of Care program, designed to make sure
construction firms and project sites are more welcome and inclusive,
AGC of America also launched a nationwide digital advertising campaign
to recruit more people--especially more diverse individuals--into the
profession.

Question 2. For decades, Georgia has suffered from a systemic lack
of infrastructure investment. There are 374 bridges and more than 2,260
miles of highway in poor condition in GA, including Houston Mill Road
over S Fork Peachtree Creek which has been found to be structurally
deficient. In fact, Georgia received a grade of C- from the American
Society of Civil Engineers on its infrastructure report card. That's
abominable.
If funding is continued to be provided for American infrastructure,
like it has been in IIJA, do you feel we can overcome the worker
shortages and create the A+ infrastructure that our great nation
deserves?
Answer. The Infrastructure Investment and Jobs Act represents the
most historic investment in the future of our industry since the
creation of the interstate highway system. And most importantly, it
demonstrates to our existing and future workforce that there is
sustainable work in the years to come.
The construction industry continues to face workforce shortages due
to expected craft worker retirements, growth in other sectors, and
challenges to recruiting and training new workers into the industry.
Meanwhile, construction demand and activity continue to grow.
Prioritizing the selection of projects based on labor preferences
and the mandate on project labor agreements through executive order
paper over the real problems facing the construction workforce and miss
the mark. These policies will neither attract nor prepare workers for a
long-term career in construction. They attempt to treat the symptoms--
not the root causes--of workforce shortages.
Making reforms to higher education policy by making high-quality,
shorter-term education and training programs eligible for federal Pell
Grants would help reverse the skills gap, correct education funding
inequities, and provide job training and credentialing opportunities
that are in high demand. The bipartisan JOBS Act, or H.R. 2037, is one
legislative initiative that could help make a tangible impact on this
problem.

Question from Hon. Eddie Bernice Johnson to Kari J. Karst, President
and Chief Executive Officer, BX Civil & Construction, on behalf of the
Associated General Contractors of America

Question 1. Ms. Karst, Mr. Booker testified that his organization
has trained over 80,000 transportation workers.
Can you go into more detail about what specifically the Associated
General Contractors of America are doing to develop and train new
transportation workers?
Answer. Through our network of 89 state and local chapters, AGC of
America supports workforce training programs. Here in South Dakota, our
AGC chapter has three Federally Registered Apprenticeship programs that
allow our workers to achieve journey level certification in Carpentry,
Concrete Finishing & Heavy Equipment Operation.
Our South Dakota Chapters also focus heavily on attracting the next
generation of construction workers through Construction Career Camps
which focus on exposing students to the opportunities in our industry
during their middle and high school years. In the last year, we will
have exposed over 600 students through our traditional camps all across
the state of South Dakota. We also have a special camp called Pizza,
Pop & Power Tools that focuses on 8th grade girls. These girls are
given a hands-on experience in equipment operation, carpentry, welding,
finishing concrete and using power tools. When we complete our Pizza,
Pop & Power Tools camps by the middle of April, we will have impacted
close to 300 8th grade girls in South Dakota.
Our innovative Construction Career Academy allows 16- to 18-year-
old students to earn and learn during the summer months. The students
are matched with one of our member employers who pay them to attend
classes and work under supervision on our jobsites. These students can
apply their experience to our Youth Apprenticeship Program and
eventually move on to one of our Federally Registered Apprenticeship
programs.

Question from Hon. Peter A. DeFazio to Kelly Kupcak, Executive
Director, Oregon Tradeswomen, on behalf of the National Taskforce on
Tradeswomen's Issues

Question 1. The IIJA's historic funding levels are estimated by the
Economic Policy Institute (EPI) to support over 772,000 jobs annually.
The large boost in infrastructure investment under the IIJA will create
thousands of new positions in the transportation construction sector
over the next five years.
Ms. Kupcak, what can Congress do to ensure women and minority
workers have equal access to these opportunities?
Answer. Thank you, Chair DeFazio for your question. The experience
of the state of Oregon and other regions where real progress has been
made in increasing gender and racial diversity in nontraditional
occupations teaches that generating change requires resources,
technical advice, clearly stated goals and expectations, and regular
monitoring and enforcement \1\. Oregon Tradeswomen and the National
Taskforce on Tradeswomen Issues recommend that infrastructure and
related funds disbursed to states include clear set-asides for
workforce development, including for support services such as childcare
and transportation stipends, as well as for enforcement and oversight
as have seen such investments result in retention of workers, and
economic mobility for themselves and their families.
---------------------------------------------------------------------------
\1\ See Report on the Use of Federal Funds to Increase Diversity
and Prepare those Entering the Highway Construction Workforce (ORS
184.866), Oregon Department of Transportation (2020). https://
www.oregon.gov/odot/About/GR/
Highway%20Construction%20Workforce%20Development
%20Report.pdf ; and Untapped Resources, Untapped Labor Pool: Using
Federal Highway Funds to Prepare Women for Careers in Construction by
Ariane Hegewisch, Jane Henrici, Elyse Shaw; Thomas Hooper (2014).
Boston, MA: Jobs For the Future https://www.jff.org/resources/untapped-
resources-untapped-labor-pool-using-federal-highway-funds-prepare-women
---------------------------------------------------------------------------
Through our work at Oregon Tradeswomen, and through the National
Taskforce on Tradeswomen's Issues, we have seen firsthand the
challenges of tackling the intersectional nature of barriers to
economic security, particularly for women of color. Improving gender
diversity in such fields has two main components: improving the supply
of women by providing quality job training without the burden of debt,
gender-equitable workforce development programs, such as registered
apprenticeships and pre-apprenticeship training programs, and programs
that help expand pathways for women to enter or re-enter non-
traditional occupations and skilled trades careers. Such job-training
efforts must be coupled with public policy that includes such
strategies as creating the demand for women by setting ambitious
workforce goals, monitoring progress, and enforcing compliance, and
providing technical advice and building capacity among contractors,
employers, and other industry stakeholders.
Because of its oversight role, this Subcommittee has a critical
role to play to ensure that workforce development and job creation not
only meet industry demand for a skilled workforce but invest in an
equity framework for all Americans. To that end, Oregon Tradeswomen and
the National Taskforce on Tradeswomen's Issues respectfully ask that
this Subcommittee conduct robust oversight of the design and delivery
of the infrastructure investments by both the federal and the state
DOTs to ensure that they not only meet industry demand for a skilled
workforce but invest in an equity framework for all Americans.
We recommend a number of specific measures like those described in
the March 25, 2022, Multimodal Project NOFO that state DOTs should
require of construction contractors for projects funded by IIJA where
the total project cost exceeds $10 million state DOTs should adopt to
prioritize equity for women and people of color in the surface-
transportation workforce:
1. Nondiscrimination and affirmative action. First and foremost,
state DOTs should make sure that contractors implement the affirmative
action requirements, including the specific numeric goals for minority
and female participation and the 16 minimum steps, which apply to
federally assisted construction contracts.
2. Supportive services. State DOTs should require each project's
General Contractor to spend at least one-half of one percent (0.5%) of
the overall project budget on supportive services for project workers
to maximize opportunities for women and people of color. The supportive
services eligible for funding under this requirement should be pre-
apprenticeship; childcare; tools; workwear; retention services
(including support groups, mentoring, and peer networking); and
application fees and other costs of entering registered apprenticeship
programs and required pre-employment training.
3. Respectful worksites. State DOTs should require each project's
General Contractor to adopt workplace anti-harassment policies and to
provide effective, on-going respectful-workplace training accompanied
by a social campaign designed to create inclusive and diverse work
sites for all the employees working on the project.
4. Transparency. State DOTS should require each project's General
Contractor to report the participation rates for women, minorities, and
apprentices working on the project, alongside the applicable goals, to
the public on an accessible online site, to Office of Federal Contract
Compliance Programs (OFCCP) in DOL, and to the state DOT; and to update
those reports twice per month.
5. Community engagement. (a) State DOTs should convene a meeting
of representatives of community-based organizations and the labor
unions that will represent workers on each project as the bid
solicitation conditions are being developed; and (b) Once the contract
is awarded, state DOTs should require each project's General Contractor
to convene meetings with a committee that includes the state DOT,
community-based organizations, relevant labor unions, relevant
government officials, and the subcontractors on the project at least
monthly, beginning at least 90 days before any hiring for the project
begins, and to require subcontractors' participation in these meetings
in their contracts. The purpose of these community meetings is to
review the General Contractor's and subcontractors' implementation of
the equity requirements, to provide the committee members with
necessary records, and to brainstorm solutions to challenges
encountered in implementing the equity requirements. The General
Contractor should also be required to provide an OFCCP representative,
a representative of the state DOT, and an ombudsperson from the
community committee with direct access to the work site to monitor
conditions, provide support and assistance, and mediate issues.
6. Robust oversight. State DOTs should require the General
Contractor and subcontractors to consent to twice-monthly compliance
reviews by OFCCP and to participate in OFCCP's ``Mega Construction
Project'' program.
7. Sanctions. State DOTs should require the General Contractor and
subcontractors to agree to the sanctions in addition to those already
available under law if the state DOT or OFCCP finds that the General
Contractor or subcontractor is not in compliance with these
requirements. These additional sanctions include mandatory suspension
of progress payments until such time as the contractor comes into
compliance; a discretionary civil penalty of up to $14,502 per
violation and $145,027 per day for failure to comply after the
effective date of an administrative order or OFCCP compliance
agreement; and compensatory and where warranted under current legal
standards, punitive damages if such noncompliance results in monetary
harm to an individual or class of individuals because of unlawful
discrimination.
8. Flow-down applicability. State DOTs should require the General
Contractor and the subcontractors working on the project to include
these requirements in all their subcontracts.
9. Administrative expenses. State DOTS should require that the
General Contractor dedicate at least one-half of one percent (.5%) of
the overall project budget to the administrative expenses of
implementing these requirements.
10. Apprentice utilization minima. State DOTs should require that
the General Contractor and subcontractors together employ registered
apprentices for a minimum of twenty percent (20%) of hours worked on
the project, by trade.

Question from Hon. Henry C. ``Hank'' Johnson, Jr. to Kelly Kupcak,
Executive Director, Oregon Tradeswomen, on behalf of the National
Taskforce on Tradeswomen's Issues

Question 1. As of January 2022 [https://www.shrm.org/
resourcesandtools/hr-
topics/behavioral-competencies/global-and-cultural-effectiveness/pages/
over-1-million-
fewer-women-in-labor-
force.aspx#::text=Millions%20of%20women%20left%20the,
this%20trend%20isn't%20new.], 1.8 million fewer women are employed
since February 2020. Poverty, childcare, and a lack of paid leave
directly impact an individual's ability to participate in the work
force--especially our nation's women. If you can't afford gas to get to
a job site, you can't work. If you can't find someone to watch your
kids while you are away, you can't work. If you can't take time off
when a need arises, you can't work.
How can we ensure that workforce development programs don't just
create jobs but careers--with quality pay and benefits that allow women
to fully engage in the labor market?
Answer. Thank you, Congressman Johnson, for your question. In the
work we do at Oregon Tradeswomen, as well as our sister tradeswomen
organizations across the country, in advocating for access, equity, and
opportunity in blue-collar careers is a tangible, cost-effective, and
proven anti-poverty strategy for women. The women we serve are in fact,
largely very low-income, often with significant barriers to employment,
and through the pre-apprenticeship training model we implement, which
includes support services such as childcare, transportation assistance,
housing stabilization and other services, are how we help move women go
to work in careers that move them and their families from poverty to
prosperity.
For example, in Oregon Tradeswomen's 192-hour pre-apprenticeship
training program, which is certified by Oregon Bureau of Labor and
Industries Apprenticeship and Training Division, our placement rate
averages at 87 percent, with the last two cohorts being 100 percent
industry placement, with average starting wage of $22.81 an hour--
significantly higher than Oregon's minimum wage. That wage increases
regularly, when women complete our program and move up and complete
their registered apprenticeship programs, and when programs with
quality standards, such as union programs and employers, those wages
include critical benefits such as healthcare and a pension. Through our
retention services program, we work closely with tradeswomen after
industry placement to ensure that they complete their 2, 3, 4, or 5-
year registered apprenticeship programs where they continue to achieve
additional skills training and guaranteed wage increases.
We know that it is critical to ensure that women in Oregon and
across our country are able to care for themselves and their families,
and that having access to high-wage, high-skilled employment
opportunities as those in the transportation and construction
industries, as women are the ones who continues to struggle most to
meet basic needs. In their 2021 report, Overlooked & Undercounted:
Struggling to Make Ends Meet in Oregon, authors Annie Kucklick & Lisa
Manzer of the Center for Women's Welfare at the University of
Washington School of Social Work remind us of just how economically
fragile many households in Oregon are--where Oregon Tradeswomen is
working to change that through helping women move into high-wage,
skilled blue-collar careers.
As an example, in East Multnomah County, where Oregon Tradeswomen
is headquartered, 35% of households experience income inadequacy,
noting that in Oregon, 49% of Black households, and 41% of Latinx
households lack sufficient income and struggle to meet their basic
needs. The data for women is even more stark. Households headed by
women have higher rates of income insufficiency when compared to
households headed by men, and further, households with children are at
a greater risk of not meeting their basic needs, accounting for close
to half of households with inadequate income. Part of these equation is
due to the higher costs associated with children, such as childcare,
where Oregon is third in the nation for highest costs.
Lastly, I am compelled to share how significant the income
inadequacy for women across Oregon is impacting our ability to care for
our families. Households headed by women are disproportionately below
the Self-Sufficiency Standard and their concentration in low-wage
occupations with high pandemic unemployment rates places this group at
risk of further economic marginalization. The combination of being a
woman, a single mother, and a person of color results in the highest
levels of income inadequacy. These rates are particularly high for
single mothers of color: 92% of Black and 65% of Latina lack adequate
income--compared to 55% of white single mothers. Please let that sink
in--92% of Black single mothers and 65% of Latina single mothers lack
adequate income to care for their families. We know this is
unacceptable, untenable, and must change for us to truly make equity
more than a value, but a living way in which we make change.
Programs like ours at Oregon Tradeswomen and other pre-
apprenticeship training programs across Oregon, work deeply with both
our Workforce Investment Boards and BOLI Apprenticeship and Training
Division, as they bring critical leverage and coordination, and support
our programs with technical assistance to ensure jobseekers have the
supports they need, including the critical wrap around support services
as outlined in the recommendations put to this committee by the
National Taskforce on Tradeswomen Issues. At Oregon Tradeswomen, and in
the Taskforce, we have seen first-hand how critical it is to serve
jobseekers in a holistic way that not only includes quality job-
training and education, but support services to ensure any barriers to
full employment and successful careers are addressed, and retention
services which keep them in those high-wage careers.
Quality pre-apprenticeship training programs, such as those that
meet robust industry standards, and as outlined by the U.S. Department
of Labor in the Training and Employment Notice 13-12, published in
November 2012 which includes clear guidelines for supporting
jobseekers, and specifically those historically marginalized and
underrepresented in high-wage careers, such as women, people of color,
for supporting long-term career pathways, not simply a short-term job.
The key strategies included in the guidance for developing and
executing a quality pre-apprenticeship training framework are outlined
in TEN 13-12, and were gleaned from national data and evidence-based
outcomes from such programs as those administered by North American's
Building Trades Unions partners delivering the Multi-Craft Core
Curriculum, Oregon Tradeswomen, ANEW, Chicago Women in Trades, Building
Pathways Boston, Mississippi Women in Construction, Vermont Works for
Women, Women in Nontraditional Employment Roles (WINTER),
Nontraditional Employment for Women (NEW-NYC) and others--many of which
have been are currently are U.S. Department of Labor WANTO (Women in
Apprenticeship and Nontraditional Occupations) grantees.
These strategies include:
Approved/industry informed quality training and
curriculum that is aligned with employer skills needs and registered
apprenticeship requirements
Employability and employment readiness training (``soft
skills'')
Career exploration, coaching, placement services and
retention services post industry placement
Long-term services and industry partnerships which
prioritize under-served populations and jobseekers
Access to appropriate support services (such as
transportation, childcare, housing stabilization, etc.) and wrap-around
services both during enrollment in pre-apprenticeship training, post
placement, and early-term registered apprenticeship
Strong linkages to registered apprenticeship, including
committed leveraged resources, deep engagement and significant
percentage of referrals accepted through facilitated entry or
articulation
Meaningful industry hands-on experience which does not
displace apprentices or employees
Industry recognized credential that is portable and
stackable

These strategies are also highlighted in the 2018 U.S. Department
of Labor report, ``Pre-Apprenticeship: Pathways for Women into High-
wage Careers A Guide for Community-Based Organizations and Workforce
Providers'' and focus on pre-apprenticeship as a best practice model
designed to prepare individuals to enter and succeed in a Registered
Apprenticeship program. A pre-apprenticeship program, by definition,
has a documented partnership with at least one Registered
Apprenticeship program.
Quality pre-apprenticeship programs are a starting point toward a
successful career path for under-represented jobseekers such as women
and people of color, as well as individuals with disabilities, formerly
incarcerated persons, and others who may not be aware of this approach
to obtain good jobs with opportunities for advancement. The pre-
apprenticeships model for skilled trades, including transportation,
construction, and manufacturing have proven outcomes in helping
unemployed, under-employed, and low-skilled, low-wage earners enter and
succeed in highly skilled, high-wage careers--a fundamental anti-
poverty strategy for our nation's workforce. These careers provide
quality benefits and high, family-sustaining rates of pay--and we have
seen, as have our colleagues as demonstrated by WANTO grantees, that
the model of quality pre-apprenticeship does in fact lead to much more
than a job, but a lifelong career.

Question from Hon. Eddie Bernice Johnson to Kelly Kupcak, Executive
Director, Oregon Tradeswomen, on behalf of the National Taskforce on
Tradeswomen's Issues

Question 1. Ms. Kupcak, I'm pleased that there are organizations
like yours advocating for women in the transportation industry.
Could you discuss what more you think contractors could do to make
the industry more appealing to women? Also, what could Congress do to
help you accomplish your mission?
Answer. Thank you, Congresswoman Johnson, for your questions. As
many Subcommittee members may know, women remain severely
underrepresented in the construction and transportation sectors--fields
that provide good wages, benefits, and opportunities for a life-long
career. Without intentional efforts to improve and support access to
such publicly funded jobs, women, particularly women of color, are
unlikely to benefit from these historic levels of investment. Beyond
sound public policy, advocates and practitioners like Oregon
Tradeswomen, our sister tradeswomen organizations, and industry allies
know that industry employers are key to creating workplaces that are
welcoming to all workers, including women, and through quality
workplaces--ones that prioritize health, safety, and respectful
workplaces--a key to worker retention.
With continued labor shortage challenges identified by industry
employers, the time to reach untapped jobseekers to become part of a
skilled, qualified, and highly trained workforce is upon us. According
to the 2020 report, ``New Plan to Address Growing Construction
Workforce Shortages'', the Associated General Contractors of America
(AGC) and Autodesk nationwide survey of industry employers indicated
that eighty percent (80%) of construction firms reported they were
having a challenging time finding workers.\2\ With the industry's
current workforce aging, and retiring, at a rapid pace and a lack of
young workers interested in entering the skilled trades, the impact of
construction workforce shortages, according to the survey, is that it
takes longer and costs more to build many types of projects. Workforce
shortages run the risk of undermining broader economic growth by making
private- and public-sector development projects--including
infrastructure--more expensive and time-consuming.
---------------------------------------------------------------------------
\2\ Associated General Contractors of America and Autodesk, ``The
Workforce Development Plan 2.0: AGC of America's New Plan toAddress
Growing Construction Workforce Shortages,'' 2019
---------------------------------------------------------------------------
However, there is significant research which has shown that women,
and particularly women of color, face discrimination in hiring and
long-term employment and experience high rates of sexual and racial/
ethnic harassment and gender bias on the job. As a result, they are
less likely to be retained on core crews, promoted to field leadership
positions or to receive the same on-the-job technical training as men,
and they do not complete their apprenticeships at the same rates as
their male counterparts.\3\
---------------------------------------------------------------------------
\3\ Sarah Burd-Sharps, Kristen Lewis, and Maura Kelly, ``Building a
More Diverse Skilled Workforce in the Highway Trades: Are Oregon's
Current Efforts Working?'' 2021
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Oregon Tradeswomen and the National Taskforce on Tradeswomen's
Issues strongly support the strategic priorities and equity framework
outlined in the recent Memorandum of Understanding between the U.S.
Departments of Transportation and Labor, as well as inclusion of
priority considerations around strong labor standards, workforce
training programs that bring more underrepresented populations into
infrastructure jobs, and changes in hiring policies to hire and retain
more underrepresented populations.
When tradeswomen have access to sustainable careers, which includes
equitable work hours, workplace policies that support work/family
balance, comprehensive on-the-job training and freedom from sexual and
racial harassment, the broader industry benefits from this
underutilized portion of demographic in the skilled trades workforce.
We would also encourage contractors to do the following, simple,
cost-effective, and proven activities that support recruitment and
retention of women in the industry:
conduct a marketing campaign aimed at women featuring
successful women tradesworkers--this not only can increase the number
of women being recruited into the industry but starts to ``normalize''
jobsites with representation from all workers--not just men.
Provide clean, sanitary, and locked toilets.
Provide a private, clean, sanitary space for
breastfeeding women and a place to safely store breastmilk.
Provide adequate break periods for pumping.
Make standard practice to accommodate for women's care
responsibilities.
Engage in a respectful worksite training program and
approach jobsite harassment, hazing, and bullying not as a ``women's
issue,'' but a health and safety issue for the industry
Have and use a robust zero tolerance policy for jobsite
harassment
Ensure on-the-job-training and mentoring are part of your
leadership development and training program
Help women become qualified for leadership positions and
then put them there

In addition, we suggest the following:
Provide the aforementioned strategies as informational
posters, pamphlets, or make available on the U.S. DOL and U.S. DOT
website, including on the page pertaining to FHWA OJT-Support Services
page
Convene round tables of contractors who have significant
success in incorporating female tradesworkers into their workforce
together with contractors who are still underutilized for women to have
them learn from the best practices of successful contractors.

Congress can continue to make changes to help women enter and
succeed in skilled transportation and highway construction careers
through implementing the policy recommendations that have been outlined
by the National Taskforce on Tradeswomen Issues that have been
previously provided and are reiterated below:
1. Nondiscrimination and affirmative action. First and foremost,
state DOTs should make sure that contractors implement the affirmative
action requirements, including the specific numeric goals for minority
and female participation and the 16 minimum steps, which apply to
federally assisted construction contracts.
2. Supportive services. State DOTs should require each project's
General Contractor to spend at least one-half of one percent (0.5%) of
the overall project budget on supportive services for project workers
to maximize opportunities for women and people of color. The supportive
services eligible for funding under this requirement should be pre-
apprenticeship; childcare; tools; workwear; retention services
(including support groups, mentoring, and peer networking); and
application fees and other costs of entering registered apprenticeship
programs and required pre-employment training.
3. Respectful worksites. State DOTs should require each project's
General Contractor to adopt workplace anti-harassment policies and to
provide effective, on-going respectful-workplace training accompanied
by a social campaign designed to create inclusive and diverse work
sites for all the employees working on the project.
4. Transparency. State DOTS should require each project's General
Contractor to report the participation rates for women, minorities, and
apprentices working on the project, alongside the applicable goals, to
the public on an accessible online site, to Office of Federal Contract
Compliance Programs (OFCCP) in DOL, and to the state DOT; and to update
those reports twice per month.
5. Community engagement. (a) State DOTs should convene a meeting
of representatives of community-based organizations and the labor
unions that will represent workers on each project as the bid
solicitation conditions are being developed; and (b) Once the contract
is awarded, state DOTs should require each project's General Contractor
to convene meetings with a committee that includes the state DOT,
community-based organizations, relevant labor unions, relevant
government officials, and the subcontractors on the project at least
monthly, beginning at least 90 days before any hiring for the project
begins, and to require subcontractors' participation in these meetings
in their contracts. The purpose of these community meetings is to
review the General Contractor's and subcontractors' implementation of
the equity requirements, to provide the committee members with
necessary records, and to brainstorm solutions to challenges
encountered in implementing the equity requirements. The General
Contractor should also be required to provide an OFCCP representative,
a representative of the state DOT, and an ombudsperson from the
community committee with direct access to the work site to monitor
conditions, provide support and assistance, and mediate issues.
6. Robust oversight. State DOTs should require the General
Contractor and subcontractors to consent to twice-monthly compliance
reviews by OFCCP and to participate in OFCCP's ``Mega Construction
Project'' program.
7. Sanctions. State DOTs should require the General Contractor and
subcontractors to agree to the sanctions in addition to those already
available under law if the state DOT or OFCCP finds that the General
Contractor or subcontractor is not in compliance with these
requirements. These additional sanctions include mandatory suspension
of progress payments until such time as the contractor comes into
compliance; a discretionary civil penalty of up to $14,502 per
violation and $145,027 per day for failure to comply after the
effective date of an administrative order or OFCCP compliance
agreement; and compensatory and where warranted under current legal
standards, punitive damages if such noncompliance results in monetary
harm to an individual or class of individuals because of unlawful
discrimination.
8. Flow-down applicability. State DOTs should require the General
Contractor and the subcontractors working on the project to include
these requirements in all their subcontracts.
9. Administrative expenses. State DOTS should require that the
General Contractor dedicate at least one-half of one percent (.5%) of
the overall project budget to the administrative expenses of
implementing these requirements.
10. Apprentice utilization minima. State DOTs should require that
the General Contractor and subcontractors together employ registered
apprentices for a minimum of twenty percent (20%) of hours worked on
the project, by trade.

Oregon Tradeswomen and the National Taskforce on Tradeswomen's
Issues respectfully urge you to support the recommendations outlined
herein to implement strategies to attract, retain, and empower diverse
qualified workers to build and maintain our transportation system. By
implementing these strategies, we can collectively address industry
demands and tap into the talent of our nation's women who can help
build our nation's road and bridges while building a more secure
economic future for themselves and their families.

Question from Hon. Eddie Bernice Johnson to April Rai, President and
Chief Executive Officer, Conference of Minority Transportation
Officials

Question 1. Ms. Rai, it's been my honor to work with COMTO and its
members over the years. As you well know, contractors and some State
DOT's bemoan even the idea of DBE goals. But the truth is that these
large companies add DBE sub-contractors to their proposals, and once
they secure the contract, they either ignore them or give them a
miniscule amount of work compared to the whole contract. This is what
DBE's face every day.
Can you go into further detail on how we can address this
unscrupulous behavior?
Answer. Congresswoman Johnson, first of all, COMTO is most grateful
for your strong support and shared vision of inclusion of minorities in
transportation over the years. As you well know, part of COMTO's
mission is to ensure opportunities and maximum participation in the
transportation industry for minority businesses. We appreciate your
question which gives us the opportunity to address the issues that
currently plague the DBE program. In fact, our list of legislative
priorities includes recommendations to improve efficiency and
accountability in its administration.
A good percentage of our membership does include of minority-owned,
DBE-certified businesses and there are documented legal cases regarding
unscrupulous behavior by companies participating in or with the DBE
program.
On USDOT funded state transportation projects, agencies set goals
that require a prime contractor to meet a certain percentage of
participation from DBE-certified firms. These goals may vary by
jurisdiction, depending on the number of DBEs in a specific trade or
NAICS code that are available in the agency's portfolio.
Many firms have experienced the exact scenario you have described.
Majority-owned primes will ostensibly include a DBE subcontractor in
their bid submission, but once the award is made, they will ``shop''
that DBE's price to other subcontractors in order to save money on the
job, claiming that they did make a ``good faith effort'' to meet the
goal.
Some agencies do require the prime contractor to sign a letter of
intent with their DBE subs, which describes the DBE work scope, how
much to be paid for performance and the price submitted to prime.
Although 49 CFR 26.53 requires written confirmation from each DBE
listed as participating in USDOT-assisted contracts for which a DBE
goal has been established, that commitment or ``intent'' is not
binding. Enforcement is inconsistent from state to state and agency to
agency. We believe that the DBE review officers of each agency should
be equipped with the tools and the authority (teeth) to enforce
compliance with the goals and compel bad players to fulfill their
commitment to their DBE partners though training, education, and
tighter accountability.
For example, the City of Atlanta's Office of Contract Compliance
(OCC) is a stellar model of how DBE utilization can be monitored. For
every contract where DBE participation is claimed, the OCC requires
that the prime contract awardee provide a monthly status report on DBE
utilization. The report requires the prime contractor to list all
subcontracted DBE firms for the awarded contract, percentages agreed
upon per the service agreement, and the utilized DBE dollar and
percentage amount to date per DBE firm.
This report requires DBE owner signatures, and it is reviewed
monthly. If the percentages are not in line with the original contract,
the prime contractor must schedule a meeting with the compliance
officer to explain the gap and the anticipated path forward to address
the situation. We believe a requirement to implement formal agency
programs that monitor work (dollars/percentage/by trade) committed to a
DBE every month would have a significant impact.
Our COMTO DBEs have also been victimized when unscrupulous
businesses attempt to exploit the program through fraud and/or
deception. DBE fraud is when a prime contractor utilizes what is
recognized labeled a ``front'' company or a ``pass through'' company.
In front company fraud, a non-DBE firm creates a DBE company to
``front'' bid on projects, while all of the work and profits go to the
non-DBE contractor. In the pass-through company fraud, a legitimate DBE
acts as the prime but passes the majority of the work to a non-DBE firm
while invoicing for the non-DBE's work.
This behavior tarnishes the reputations of legitimate DBEs and
places qualified DBE in a dubious light. Importantly, it is
counterproductive, even destructive, to the true intent of the DBE
program.
Once again, the best so solution is for the agency receiving the
USDOT funding to have adequate enforcement focused on fully and
thoroughly vetting entities participating in the DBE program and
establishing severe penalties for DBE fraud and attempted fraud. Agency
officials overseeing the program must verify that the DBE is performing
a ``commercially useful function.''

Questions from Hon. Jake Auchincloss to April Rai, President and Chief
Executive Officer, Conference of Minority Transportation Officials

Question 1. COMTO specializes in closing the employment gap for
many types of hidden workers--veterans, immigrants, and the formerly
incarcerated--with a nuanced insight into these individuals' needs, as
well as credibility with the workers and other groups, including
government agencies. What barriers have you and your team encountered
in connecting your members with work?
Answer. Congressman Auchincloss, thank you for your questions and
also thank you for your service to your country. COMTO counts many
veterans and veteran-owned businesses among our membership.
Another component of COMTO's mission is to ensure opportunities and
maximum participation in the transportation industry of minorities and
communities of color, through advocacy, information sharing, training,
education, and professional development. The transportation industry is
a reflection of our society, but we want to see that representation
fairly and fully inclusive, from the C-Suite to the front-line labor
force.
However, transportation is presented with the same barriers as
other industries in connecting veterans, minorities, and other
underrepresented populations as other industries. Unconscious bias
leads to underestimating the qualifications of certain job candidates
leading to fewer being contacted for interviews. Several studies have
been conducted to prove these unconscious cultural and racial biases.
And once onboarded, many minority employees face the misperception
from colleagues that they were hired not because of the experience and
qualifications, but simply because of their race, gender, or military
service.
For our member firms, one of the biggest obstacles is that they are
not viewed as a qualified professional service firm, contractor, or
developer, etc. We are considered ``DBEs'' and not much more. This
subcategory comes with a lot of baggage. We are considered less
capable, that we do not have capital, that we will cost the prime, that
we do not know how to contract, that we are overall subpar.
The DBE program was established in an effort to level the playing
field so that historically underutilized and disadvantaged firms can
get foot hold in both traditional and non-traditional industry niches,
thereby obtaining experience, establishing a reputation for quality
work and promoting economic growth in the minority community. Without
the DBE program and the participation goals, there would be little to
no business supporting DBEs. As we like to say, ``If they don't have
to, they won't.''

Question 2. What can Congress do to improve the relationship
between organizations like yours to strengthen this workforce pipeline?
Answer. In an environment where employers are unable to find enough
qualified workers to fill position, the challenge is in filling the
skills gap and the opportunity gap. In the public transportation space,
where the majority of the users are minorities, potential workers are
unaware or unable to access opportunities. And once they do access the
opportunities there may be a short of skills to do the job. I believe
that the stakeholders of workers, educators, supportive community
members and professional associations have the answer and need
Congress' ear and support in producing solutions.
COMTO appreciates the hard work done by the Transportation and
Infrastructure Committee and its Member Subcommittees on the
Infrastructure Investment and Jobs Act (IIJA). As I said in my
testimony, we believe that JOBS is the operative word in the IIJA. But
workforce recruitment and retention have been issues that plagued the
transportation construction industry even before the pandemic. The
pandemic only made those problems more acute and now threaten the
industry's ability to carry out the goals of the bill. The
transportation construction industry has historically not well
reflected groups to get the most out of the legislation. Both Congress
and the Administration will need to be innovative and take aggressive
action in the next few months to make these programs a reality, to give
them the teeth to be effective and to establish accountability to
measure results.

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