MGT of America, Inc. was retained to conduct a study for the Arizona Department of Transportation to determine whether there was a compelling interest to justify a disadvantaged business enterprise program for ADOT. MGT found that minority, women and disadvantaged business enterprises were substantially underutilized as prime contractors in construction and construction-related professional services. African American, Hispanic American, and Asian-owned firms were under-utilized as construction subcontractors. The study provides factual predicate evidence for the selective use of project goals for African American, Hispanic American, and Asian American construction subcontractors.

There are two distinct components to the economic development activities described in ADOH’s LIHTC program details. The first component is activity that strengthens the economy. This is the quantifiable activity that is the subject of this report. The second component is community building activity which can be both quantitative and qualitative. This is an area that should be considered in the debate but which is not addressed within this report.