Pittsburgh Mayor Corey O’Connor on Thursday pledged to push ALCOSAN to improve diversity in contracting on a $1 billion tunnel project, a day after a Pittsburgh’s Public Source investigation revealed that minority-owned contractors are so far slated to get less than 1% of the work.

“Obviously, we have to do more,” said O’Connor, who sat on the Allegheny County Sanitary Authority board prior to becoming mayor and oversaw some of the planning for what will be a $3.7 billion effort to reduce the flow of sewage into the rivers. 

The mayor did not specify a target for minority-owned business participation or say whether he wants regular progress reports from the sewer agency.

Allegheny County Executive Sara Innamorato believes it’s “critical” that local minority businesses benefit from large infrastructure projects, including the five-mile Ohio River Tunnel project, “considering most funding for ALCOSAN is from local taxpayers,” according to a statement from county spokesperson Abigail Gardner. 

Innamorato wants ALCOSAN to “use all of the tools at their disposal to exceed our expectations” on diverse contracting, Gardner wrote, without detailing those expectations.

Big dig, modest diversity

ALCOSAN in April inked a $1.03 billion agreement with prime contractor Brayman-Lane JV to bore from East Allegheny to McKees Rocks. Saxonburg-based Brayman Construction Corp. is partnering with Charlotte-based Lane Construction Corp. on the project.

ALCOSAN tells prime contractors to spend between 10% and 25% of their contract amounts with minority- or women-owned businesses. Brayman-Lane’s proposal for the Ohio River Tunnel calls for clearing the 10% bar by subcontracting with:

  • Five women-owned business enterprises (WBEs), which are slated to get $92 million to $98 million of work
  • Five disadvantaged businesses (DBEs) at $6 million
  • Two minority businesses (MBEs) at anywhere from $150,000 to $6 million.

Ohio River Tunnel facts

  • 4.9 miles long
  • To run from East Allegheny to McKees Rocks
  • Construction from 2027 through 2032
  • Average annual construction workforce: 1,760
  • Downward shafts 15 to 50feet across
  • Tunnels 150’ below the surface
  • Horizontal tunnels 14 to 18 feet wide

Brayman Holding Company Marketing Director Kristin Bullington wrote in an email response to Public Source’s questions that the joint venture is “still too early in its construction and procurement process to provide a complete and representative assessment of MBE, WBE, DBE, and small-business participation.” Construction is to run into 2032.

“Subcontractor and supplier scopes will continue to be finalized and awarded as the project progresses,” Bullington wrote, “meaning participation at this stage represents only a snapshot in time and not participation over the full life of the project.”

The MBE portion, at less than 1%, has drawn scrutiny.

“I think it’s very sad, to be honest. We need to bring up the numbers; 1% is not acceptable,” Kanak Iyer, a member of Allegheny County’s MBE Advisory Committee, said on Thursday. “You have to be inclusive, absolutely inclusive.”

The Ohio River Tunnel is the first of three, totaling 16 miles, paralleling the county’s riverfronts.

Said O’Connor: “We have to give everybody an opportunity and there’s going to be billions of dollars being spent.”

Diversity targets ‘have to come up’

The mayor and county executive each appoint three members of the ALCOSAN board, and jointly choose the seventh.

The current chair of ALCOSAN’s board is O’Connor appointee Emily Kinkead, a state representative, D-Brighton Heights, who is running for reelection on a platform of “justice, equity and diversity.” Public Source has repeatedly reached out to Kinkead since Sept. 29, but she has not been available for an interview or provided comments by email.

O’Connor said his administration “can push over there to make sure that not only are they following the standards and guidelines that they currently hit. Can we exceed those? Because the city exceeds our numbers.”

The city’s standards for diverse contracting call for 18% of spending to go to MBEs and 7% to women-owned WBEs.

Two jet skis travel along a river in front of an industrial facility with a tall smokestack.
Jet skis pass ALCOSAN’s sewage treatment plant along the Ohio River on Sept. 19, in Marshall-Shadeland. ALCOSAN is adding a $346 million Wet Weather Pump Station as part of its $3.7 billion effort to reduce the flow of sewage into the rivers. (Photo by Danny Arensberg/Pittsburgh’s Public Source)

O’Connor said the city would “be the leader in that and having long-term conversations about not only current contracts, but future [contracts] down there [at ALCOSAN] to make sure that everybody has a voice and everybody has an opportunity. … I think that’s something that we have to continue to enforce when we talk to the members that I appoint, as well as the county executive.”

Asked what level of MBE involvement he’d like to see on the tunnel project, O’Connor declined to identify a target percentage.

“I couldn’t give you a number, because again, I don’t know how that billion is broken down,” the mayor said. “Is it for the first phase? Is there a second phase? Are there subs to that? There’s a lot more that goes into that, that we have to have to look at.”

Diversity targets, he said, “need to be elevated and they have to come up.”

Allegheny County’s code includes “overall goals of having 13% minority business enterprise and 2% women/socially and economically disadvantaged business enterprise participation” in county contracts. The MBE Advisory Committee monitors the effort. It does not cover ALCOSAN, an independent authority.

“I think it’s very sad, to be honest. We need to bring up the numbers; 1% is not acceptable.”

Kanak Iyer of the MBE Advisory Committee

“I’m not saying you just give it to somebody just because they’re a minority,” said Iyer, a registered financial advisor who serves on the committee. Subcontractors should be vetted, but then given due consideration. “Just give them a chance to accomplish it. They will show what they’re capable of. If they can’t get a foot in the door, it’s very hard.”

Regular diversity reports coming

Black Political Empowerment Project Chairman Tim Stevens this week called for monthly public reporting by ALCOSAN on the diversity of contracting and spending on the tunnel project.

ALCOSAN spokesperson Amanda Mueller said Thursday that the agency plans to “do quarterly reporting on diversity numbers.”

“I think more transparency never hurts,” said O’Connor, while saying the frequency of reports may depend on the terms in the involved contracts. “And having dialogue about how we do better, it’s a good thing and a good thing to work toward.”

Rich Lord is the managing editor at Pittsburgh’s Public Source and can be reached at rich@publicsource.org.

Help us continue telling stories like this one.

We’re Pittsburgh’s Public Source, an independent, nonprofit newsroom. That means we rely on donations from readers like you to help us report accurate, timely and impactful stories for the Pittsburgh region — available to everyone without paywalls.

Everyone deserves access to credible information to understand and help shape the region they call home, which is why we work hard everyday to deliver fact-checked stories on education, environment, health, local government and more.

We've seen our journalism prompt widespread change in the Pittsburgh region — but none of it would be possible without the support of our community. If you found this story valuable, consider "paying it forward" by making a gift today.

Creative Commons License

Republish our articles for free, online or in print, under a Creative Commons license.

Rich is the managing editor of Pittsburgh's Public Source. He joined the team in 2020, serving as a reporter focused on housing and economic development and an assistant editor. He reported for the Pittsburgh...