Earlier this year, the city of Kansas City, Missouri, solicited bids from electrical companies. The city was looking for a business to perform regular maintenance on its electrical systems and equipment.
Which do you think the city chose?
a. The low bidder
b. A minority-owned business
c. None of the above
The correct answer is "c," Mark One Electric Co.
Local governments have a complicated relationship with Mark One. It's a relationship, I admit, that I don't completely understand.
Not for lack of trying. In June, I wrote that Mark One had received $40 million for work at Kauffman and Arrowhead stadiums (“Making Her Mark,” June 11). Mark One's efforts counted toward the project's diversity goals. The company is run by a woman, Rosana Privitera Biondo. But competitors insist that Mark One isn't disadvantaged because it has grown so large.
Since then, I've learned of another contract that has left Mark One's rivals seething.
A family-owned business on Troost Avenue, Lynch Electrical Inc. was the "a" and the "b" in the pop quiz above. Company Vice President Ivy Lynch-Shaw says she is "really pissed off" at the process through which Mark One got the city contract. "I worked really hard on that bid," she tells me.
City officials are vague on the factors that pushed Mark One ahead of Lynch Electrical and R.F. Fisher, which also submitted a lower bid. When I asked what factors the city considered in awarding the contract, Delois Moore, the city's buyer, told me: "The selection committee evaluated all information in the city's possession in making its selection."
Gee, that's helpful.
Moore went on to say that the selection committee did not consider the minority- or woman-owned business status of the applicants.
That comment was strange for two reasons:
1. I did not ask Moore about minority or woman-owned businesses — I simply asked why the contract didn't go to the low bidder.
2. The lack of consideration for race and gender is at odds with the city's request for proposals. Page 5 of that document, sent out by the city in March, says it's city policy to give minority- and woman-owned companies "maximum opportunity" to participate in city contracts.
Confused? Me, too.
Kansas City's Human Relations Division is charged with monitoring this stuff. Lynch-Shaw says the department is not doing enough to help small businesses.
In any case, Mark One is both eligible and ineligible for affirmative-action programs.
As you might imagine, there are rules to ensure that companies applying for affirmative action are really disadvantaged. One of the rules involves ownership stakes. A white executive can't barter off a 5 percent share of a company to a person of color or to a woman and call his company minority-owned. He'd have to sell at least 51 percent of the operation.
Privitera Biondo became president of Mark One in 1994, taking the reins from her father, Carl "Red" Privitera. Her three brothers serve as vice presidents.
I understand it's quite possible that Carl Privitera asked his daughter to run the operation because he thought she'd do the best job and not to set up Mark One as a woman-owned business.
But, really, she owns 51 percent of the company when papa Privitera is still living, and she's one of four children to work in the business? A reasonable person, it seems, can question the legitimacy of Mark One's ownership structure without casting aspersions on Privitera Biondo's skills as an executive.
There's also the matter of Mark One's size.
You've probably seen Mark One's maroon logo somewhere. It's a big company. Too big.
Showing 1-10 of 10
David -
Awesome reporting! However, you've really only uncovered a small portion of the corruption with Mark One Electric and the City of Kansas City. Keep digging... all of us out here know what they have done and are capable of doing. There is minority companies all throughout Kansas City and some that are very repuutable. Keep digging...it will be amazing what you will find.
David - Awesome reporting! However, you've really only uncovered a small portion of the corruption with Mark One Electric and the City of Kansas City. Keep digging... all of us out here know what they have done and are capable of doing. There is minority companies all throughout Kansas City and some that are very repuutable. Keep digging...it will be amazing what you will find.
John, who put *you* in charge of news reporting in this town? It is, in fact, a relevant and interesting story. Perhaps you should stick to Hustler and Mad magazines for subject matter of your caliber.
DM- Thank you for reporting on this. The awarding of WBE and MBE contracts affects far more people than the common man realizes. For any amount that a 'major' player has to sub out to a smaller company, their numbers are padded just as much. As taxpayers and customers, WE foot that added expense. These abuses MUST be stooped, but won't until we have a city government that can put ego aside and work ahead of them.
And re: Mark One ownership, I have wondering the same thing for quite a while. A better title does not necessarily mean a bigger chunk of ownership. This is where tax records should be supplied for proof of ownership.
John, who put *you* in charge of news reporting in this town? It is, in fact, a relevant and interesting story. Perhaps you should stick to Hustler and Mad magazines for subject matter of your caliber. DM- Thank you for reporting on this. The awarding of WBE and MBE contracts affects far more people than the common man realizes. For any amount that a 'major' player has to sub out to a smaller company, their numbers are padded just as much. As taxpayers and customers, WE foot that added expense. These abuses MUST be stooped, but won't until we have a city government that can put ego aside and work ahead of them. And re: Mark One ownership, I have wondering the same thing for quite a while. A better title does not necessarily mean a bigger chunk of ownership. This is where tax records should be supplied for proof of ownership.
Excellent reporting in my opinion. How deep is the rabbit hole when it comes to corruption in city hall. Disturbing that the heads of departments that keep tabs on these issues don't give a straight answer. Dunn is also an anchor tenant of this city so I wonder how much more you can dig up. Keep up the good work.
Excellent reporting in my opinion. How deep is the rabbit hole when it comes to corruption in city hall. Disturbing that the heads of departments that keep tabs on these issues don't give a straight answer. Dunn is also an anchor tenant of this city so I wonder how much more you can dig up. Keep up the good work.
Research your facts. Lynch Electric does not count toward minority goals because they bid the contract. The bidder is required to hire woman/minority subcontractors. Mark One Electric is the only bidder that listed a woman owned and minority (black) owned subcontractor. All the other bidders "tryed" to get minority participation but couldn't.
Research your facts. Lynch Electric does not count toward minority goals because they bid the contract. The bidder is required to hire woman/minority subcontractors. Mark One Electric is the only bidder that listed a woman owned and minority (black) owned subcontractor. All the other bidders "tryed" to get minority participation but couldn't.
like
dislike
