Big slice of Olympic pie: ACOG officials claim record participation by minority businesses.

With the 1996 Olympic Games in Atlanta fast approaching, final numbers are now trickling in on how minority-owned firms fared in securing lucrative Olympic-related contracts. Thus far, especially compared with the Olympic Games held in Los Angeles over a decade ago, it appears many blacks did well indeed.

BE had reported earlier that the Atlanta Committee for the 1996 Olympic Games (ACOG) indicated it would be reaching out to black-owned firms. Now ACOG says nearly $155 million--roughly one third of its discretionary expenditures--has been contracted with 240 construction and 540 non-construction-related minority firms. Although ACOG figures combine minority and female participation, committee officials say the white female portion does not represent more than 5% in any category. Black firms claimed $12 million (40%) of the $30 million budget for architectural and engineering contracts; $83 million (37%) of the $223 million budget for construction of the stadium; and vendors have been awarded $60 million (28%) of the $213 million budget for procurement, according to ACOG's 1995 financial reports.

As promising as these numbers are, Olympic officials predict they will increase further once the Games, scheduled to begin July 19, are over and final figures are tallied.

Approximately $12.5 million has gone to minority businesses that will provide temporary facilities such as trailers, tents and portable bathrooms. Contracts and subcontracts are still available for catering, stadium maintenance, food product purchasing, stage production and entertainment, among other things.

"We were able to design an affirmative action program that was flexible and still achieved record percentage levels of participation," says Shirley Franklin, ACOG's senior policy advisor, who was the head ACOG executive in developing the women and minority participation program for the Olympic Games. She says Atlanta exceeded minority participation levels for private sector contracts, which often hit a glass ceiling at about 10% of the money available for a given project. That participation generally stops at 25% to 30% when it comes to public sector contracts.

ACOG's success can be attributed to a variety of factors, including Atlanta's long history of working with minority-owned companies and the city's extensive Equal Economic Opportunity Plan. Perhaps most importantly, Atlanta officials were very apprehensive of being compared to Los Angeles, which was criticized heavily for its lack of minority participation in the 1984 games.

Ultimately turning profits of close to $200 million, the Los Angeles Olympic Organizing Committee had been criticized for encouraging few minority-owned firms to participate in the construction or rehabilitation of any Olympic sites. But in Atlanta, minority businesses are represented on most contracts for major design and construction venues, including the Olympic stadium and sites that will house the aquatic, equestrian, tennis, rowing, canoeing, yachting and field hockey events.

"Our licensing agreement with ACOG has worked out well. It's a very aggressive segment of business and it's not always easy to penetrate," says Rudolph Terry, who along with brother Roy owns 33-year-old Terry Manufacturing Co. in Roanoke, Ala., (No. 78 on the 1995 BE INDUSTRIAL/SERVICE 100 list). Their company had focused on furnishing uniforms to the military and fast food restaurants before the Olympics, but the Games gave Terry Manufacturing an opportunity to expand into licensing opportunities.

"The Olympics gave us the justification we'd been looking for to expand. We've acquired a screen printing company that already had approximately 150 collegiate licenses, and that is part of what our company will do after the Olympics are over." Terry's company now has over 160 collegiate licenses, including most major black colleges in the U.S. He projects he will make a minimum of $10 million manufacturing shirts, pants, shorts and other apparel with the Olympic logo.

Atlanta Mayor Bill Campbell feels ACOG should be commended for getting substantial minority involvement in the Olympics. But, he says, "the ultimate test of whether the Olympic committee has left a legacy for minority businesses is if firms continue to get quality contracts without it being mandated."

For contract information, call the ACOG Equal Employment Opportunity Program Department at 404-224-5209.