EQUAL OPPORTUNITY PROGRAMS DIDN'T REACH VERY FAR.

Byline: Beth Barrett Daily News Staff Writer

The MTA's outreach to 2,100 minority, women and disadvantaged businesses on lucrative Metro Rail professional service contracts has primarily benefited about a dozen companies, most with political connections, records show.

Those firms got about $100 million, or about half, of the roughly $200 million paid out under the MTA's disadvantaged business, or DBE, program to support rail design, engineering and management work - an area where costs have run out of control and MTA oversight has been lax.

The concentration of dollars was largely hidden from scrutiny because for years subcontractor accounts weren't kept in an organized fashion.

``We weren't monitoring them until last March,'' said Cheryl Broussard, manager of contract compliance for the MTA's equal opportunity programs. ``We've just started getting a handle on them.''

While dozens of subcontractors got small individual contracts to help prime contractors meet their federal disadvantaged-business goals, those that made the bulk of the money linked up with several large firms, whose contracts then escalated.

Multiple contracts

Kal Krishnan Consulting Engineers, for example, with 11 rail contracts, has been paid about $21 million. That's more than 10 percent paid out under the agency's DBE program for rail professional services, the records show.

Other subcontractors on multiple contracts include Jenkins, Gales & Martinez, which has been paid $19.8 million; The Nettleship Group, $18.8 million; Escudero Fribourg Associates, $12.1 million; and Construction Control Services Inc., $8.1 million.

As part of a related contract to build rail cars, two other DBE firms - Top Tempo with $5.6 million and Cordoba Corp. with $4.6 million - have benefited. Top Tempo officials could not be reached for comment.

Robert Gutierrez, vice president of marketing for Kal Krishnan, a firm that provides scheduling and cost reports among other services, said businesses operated by minorities and women otherwise would stand little chance in the marketplace.

``If not for the DBE program, there'd be no business anywhere,'' he said. ``The primes are out there to make the dollars.''

More opportunities

There is nothing illegal about a small number of subcontractors getting most of the dollars, said MTA officials.

Gail Charles, manager director of the MTA's equal opportunity program, said that in response to a request by the MTA board chairman, Mayor Richard Riordan, a couple of years ago, the agency has tried to provide more opportunities for small businesses through outreach and by trying to scale down some contracts.

``We're also working with other agencies that have DBEs and encouraging them to bid,'' she said.

Jeffrey Christiansen, MTA deputy executive officer for program management, said some firms don't want public-sector work.

``If they don't do work in the public sector, they'll probably never see their name in a newspaper article,'' he said.

Prime contractors said they picked most of their subcontractors based on past experience or because employees possessed special skills.

``We try to fill each job with the best-qualified person. We post jobs, and those are communicated to the subs,'' said Chris Dixon, project manager for Parsons-Dillingham, which has hired two dozen subcontractors as part of its contract to oversee subway construction.

Choosing contractors

In some instances, contractors also said they might consider subcontractors based on the perception of how they might satisfy MTA staff or board members.

``The first consideration would always be technical strengths,'' said Dennis O'Connor, an executive with CRSS Constructors, a Jacobs Engineering division.

``Then you go through, Is this firm active in the community? Then, as a secondary factor, Is it familiar and acceptable to the political establishment?''

Gutierrez, a friend and fund-raiser for board member and Councilman Richard Alatorre, said his connection to the councilman is not an advantage.

``It's not as though Richard goes in and says give them a contract,'' Gutierrez said.

He said Alatorre, who is facing probes by the FBI and the MTA's inspector general, knows someone on nearly every team and votes for the best. Alatorre's personal financial records have been subpoenaed as part of the inquiry into whether he benefited financially from business figures who he may have attempted to help get MTA contracts.

Alatorre has repeatedly denied any wrongdoing. He did not return calls.

Gutierrez said he recognizes that his close association with MTA officials - including his friendship with Christiansen - may create ``perception problems.''

``It's in the eye of the beholder,'' he said.

Cordoba President George Pla, another friend of Alatorre, denied politics play any role in contract awards.

``The image of so-called political connections and relationships that are going to help you win a project is nonsense,'' Pla said. ``It's going to be about your qualifications and track record; it's going to be about your price; it's going to be about your proposal. Nowhere in that procurement process is there a box for your influence.''

Cordoba won the $3.2 million prime contract to do the Eastside subway environmental impact study.

``If it wasn't for Cordoba's work as a prime, they wouldn't even be discussing Eastside,'' Pla said.

The firm has been paid $5 million more on current MTA contracts. Its largest contract is with Siemens, a firm that manufacturers rail cars in Carson.

Because Cordoba had no prior experience in manufacturing, Pla said he scoured shipyards for unemployed workers to meet the demand.

``It's certainly related to transportation, and I've been involved in transportation for 15 years,'' he said.