oversight

Ownership by Minority, Female, and Disadvantaged Firms in the Pipeline Industry

Published by the Government Accountability Office on 2012-08-02.

Below is a raw (and likely hideous) rendition of the original report. (PDF)

United States Government Accountability Office
Washington, DC 20548




           August 2, 2012

           The Honorable John D. Rockefeller IV
           Chairman
           The Honorable Kay Bailey Hutchison
           Ranking Member
           Committee on Commerce, Science, & Transportation
           United States Senate

           The Honorable Fred Upton
           Chairman
           The Honorable Henry Waxman
           Ranking Member
           Committee on Energy and Commerce
           House of Representatives

           The Honorable John L. Mica
           Chairman
           The Honorable Nick J. Rahall
           Ranking Member
           Committee on Transportation and Infrastructure
           House of Representatives

           Subject: Ownership by Minority, Female, and Disadvantaged Firms in the Pipeline Industry

           The U.S. pipeline industry is large and dynamic. In 2007, the most recent year for
           which industry-wide data are available, approximately 2,500 firms operated and
           constructed natural gas and hazardous liquid pipelines in the United States. These
           firms generated almost $200 billion in receipts 1 and employed approximately
           275,000 workers. There are currently more than 2.5 million miles of pipeline across
           the country, and recent shale oil and gas exploration has spurred construction of
           new pipeline infrastructure, as some firms take advantage of improved drilling
           technologies to access large volumes of oil and gas found in fine-grain sedimentary
           rocks.



           1
            According to the U.S. Census Bureau, the term “receipts” reflects dollars received by firms after merchandise
           refunds and other deductions. Receipts do not include sales and other taxes collected directly from customers
           and paid directly to a local, state, or federal tax agency.


                                                                          GAO-12-896R Diversity in Pipeline Ownership
The Pipeline Safety, Regulatory Certainty, and Job Creation Act of 2011 mandated
that GAO assess—based on available information—the levels and types of
participation of minority-owned, woman-owned, and disadvantaged firms in the
construction and operation of pipeline facilities in the United States. Accordingly, this
report presents available data on (1) the representation of these firms in the pipeline
industry and (2) federal funding obligated to firms in these categories.

To perform our work, we searched federal government and privately held data sets
that could include information about the ownership of firms in the pipeline industry
and federal obligations to them. For the purposes of this report, we considered the
following firms to constitute the pipeline industry: pipeline construction firms and
pipeline firms that transport crude oil, natural gas, and other refined petroleum
products. 2 As part of our search, we discussed potential data sets with officials from
the United States Census Bureau (Census), the Department of Energy, the
Department of Transportation (DOT) and the Office of Advocacy of the Small
Business Administration (SBA). In addition, we interviewed pipeline industry
associations to determine if they collected or were aware of privately held data on
pipeline ownership.

Based on our search for relevant data sets, we identified Census’ 2007 Survey of
Business Owners (SBO) 3 and the Federal Procurement Data System-Next
Generation (FPDS-NG), which is administered by the General Services
Administration, as the best available data on pipeline firms that are minority-owned, 4
female-owned, or disadvantaged. 5 The SBO provides data on the extent of minority-
and female-owned 6 pipeline firms and receipts, while the FPDS-NG database
provides data on federal contract obligations to the pipeline industry, including
federal construction and operations contracts. To assess the reliability of these
databases, we reviewed documentation about the databases and spoke with
knowledgeable agency officials. We determined that SBO and FPDS-NG data were
sufficiently reliable for describing the ownership of firms in the pipeline industry.
However, both of these data sets have limitations. For example, SBO does not

2
 When selecting firms to analyze, we used North American Industry Classification System (NAICS) codes
relevant to the pipeline industry. The NAICS is the standard used by federal statistical agencies in classifying
business establishments for the purpose of collecting, analyzing, and publishing statistical data related to the
U.S. business economy. NAICS was developed under the auspices of the Office of Management and Budget
and in coordination with Mexico and Canada in 1997 and was designed to allow for a high level of comparability
in business statistics among North American countries.
3
 Census conducts the SBO every 5 years. The 2007 survey was the most recent survey available when we
conducted this review.
4
 Because we analyzed Census data, we are using the Census definition of minority-owned firms. According to
this definition, minority-owned firms refer to firms owned by Blacks or African Americans, American Indians and
Alaska Natives, Asians, Native Hawaiians and Other Pacific Islanders, and/or Hispanics who own 51 percent or
more of the equity, interest, or stock of the firm.
5
 For the purposes of federal and federally funded contracting programs, “disadvantaged” firms are characterized
as such because they are at least 51 percent unconditionally owned and controlled by socially and economically
disadvantaged individuals or groups.
6
 Although the Pipeline Safety, Regulatory Certainty, and Job Creation Act of 2011 mandated that we assess
levels and types of participation of woman-owned firms, we are using the term “female-owned” because the data
sets we analyzed use the term “female-owned,” and we consider these terms to be equivalent.


Page 2                                                         GAO-12-896R Diversity in Pipeline Ownership
contain data elements that specifically address disadvantaged firms, and because
the SBO captures firms that conducted the majority of their business in a given
industry during 2007, the SBO may under represent the actual number of firms
operating in an industry in any given year. In addition, the FPDS-NG provides
information on federal contracts, not the entire pipeline industry. Furthermore, the
FPDS-NG includes information on prime contractors, not subcontractors. For
additional information about our scope and methodology, and a complete list of data
limitations, see enclosure I.
We conducted this performance audit from March 2012 through July 2012 in accordance with
generally accepted government auditing standards. Those standards require that we plan and
perform the audit to obtain sufficient, appropriate evidence to provide a reasonable basis for our
findings and conclusions based on our audit objectives. We believe that the evidence obtained
provides a reasonable basis for our findings and conclusions based on our audit objectives.

Results in Brief

Minority- or female-owned, minority-owned, and female-owned firms represented 15
percent, 6 percent and 10 percent, respectively, of firms in the U.S. pipeline industry
in 2007. 7,8 In terms of market share, minority- or female-owned firms are estimated
to have accounted for a total of 13 percent of industry receipts, with minority-owned
firms having accounted for 3 percent and female-owned firms having accounted for
11 percent of receipts.

Additionally, minority- or female-owned firms accounted for about $484 million out of
$3 billion—or 16 percent—of federal contract obligations to the pipeline industry from
2007 to 2011. The majority of these obligations went to minority-owned firms for
pipeline construction contracts. About $246 million—or 8 percent—of federal
contract obligations went to disadvantaged pipeline firms, which may be minority-
owned or female-owned firms, from 2007 to 2011. These obligations were also
primarily for construction contracts.

Background

In 2010, minorities represented 36 percent of the nation’s population, while women
represented approximately 51 percent. In 2007, the most recent year for which
relevant data are available, minority-owned firms represented about 22 percent of all
U.S. firms classifiable by race and gender, and generated about 9 percent of all
receipts. Also in 2007, female-owned firms represented about 30 percent of all U.S.
firms classifiable by race and gender, and generated about 11 percent of all receipts.



7
 The category “minority- or female-owned firms” includes firms owned by nonminority women, minority men, and
minority women. As such, minority women are counted in our individual estimates for both minority-owned and
female-owned firms and these estimates may add up to more than the total estimate for minority- or female-
owned firms.
8
 Without data about the number of individuals or firms that are willing and able to enter the pipeline industry, it is
not possible to evaluate whether this level of participation is higher or lower than would be expected of firms
entering the industry or broader economy without barriers to entry. In addition, these data include firms
classifiable by gender and race. These data do not include publicly owned firms.




Page 3                                                           GAO-12-896R Diversity in Pipeline Ownership
Federal agencies periodically award contracts to pipeline firms to purchase propane
gas and gas pipeline inspection services, among other goods and services.
However, the federal investment in the pipeline industry is relatively small compared
to overall revenues generated by the industry. In 2007, federal obligations equaled
$434 million, or less than one percent of the estimated $193.4 billion in receipts
generated by the pipeline industry.

DOT develops and enforces safety regulations for the transportation of hazardous
materials through pipelines. DOT does not administer any programs aimed
specifically at encouraging the participation of minority-owned, female-owned, or
disadvantaged firms in the pipeline industry. DOT also does not provide federal
assistance to pipeline firms on a recurring basis. Federal statute has established a
goal that at least 10 percent of DOT-assisted contracts are expended on socially and
economically disadvantaged firms, which include minority- and female-owned firms. 9
In addition, DOT administers a program aimed at helping disadvantaged firms
participate in contract opportunities created by DOT financial assistance programs in
some sectors of the economy, such as public transportation. Other federal agencies
also have programs aimed at encouraging the participation of disadvantaged firms,
but these programs differ in several significant ways. For example, DOT’s program
presumes that women and certain racial and ethnic groups are socially
disadvantaged, and requires that program applicants prove their personal net worth
is less than $1.32 million. In contrast, the SBA’s Minority and Small Business and
Capital Ownership Development Program—commonly known as the 8(a) Program—
does not presume that women are socially disadvantaged. In addition, 8(a)
applicants must have a personal net worth of less than $250,000 at the time of
application. 10

Minority-Owned and Female-Owned Firms Represented an Estimated 15
Percent or Less of the U.S. Pipeline Industry in 2007

Minority- or Female-Owned Pipeline Firms and Receipts

As shown in figure 1, minority- or female-owned firms represented an estimated 15
percent of firms in the U.S. pipeline industry classifiable by gender and race in
2007. 11 In comparison, nonminority- and male-owned firms represented an
estimated 67 percent of such firms. In addition, minority- or female-owned firms
generated an estimated 13 percent of industry receipts. Nonminority- and male-
owned firms are estimated to have accounted for 80 percent of all receipts.



9
 DOT uses this 10 percent goal as a tool in evaluating and monitoring Disadvantaged Business Enterprises'
opportunities to participate in DOT-assisted contracts. This goal does not authorize or require recipients to set
overall or contract goals at the 10 percent level, or any other particular level, or to take any special administrative
steps if their goals are above or below 10 percent. See 49 CFR §§ 26.41 (b)-(c).
10
 SBA’s 8(a) program helps disadvantaged firms, called 8(a) firms, obtain federal contracts because federal
agencies “set aside” certain contracts for 8(a) firms by conducting procurements in which only 8(a) firms may
compete.
11
     See enclosure II for additional estimates and associated sampling errors.




Page 4                                                            GAO-12-896R Diversity in Pipeline Ownership
Figure 1: Estimated Minority- or Female-Owned Shares of Pipeline Firms and Receipts (2007)




Notes: figure represents firms classifiable by gender and race. Figure does not include publicly-owned firms.

Due to rounding, percents may not add to 100.
a
 All estimates from the Census Survey of Business Owners are subject to sampling error. The 95 percent confidence interval is
presented parenthetically after individual estimates. Because Census followed a probability procedure based on random
selections, the sample is only one of a large number of samples that might have been drawn. Since each sample could have
provided different estimates, we express our confidence in the precision of our particular sample’s results as a 95 percent
confidence interval. This is the interval that would contain the actual population value for 95 percent of the samples that could
have been drawn. See enclosure II for more information on sampling errors for the survey estimates.
b
 The “Other” category includes firms owned by nonminorities with equal male/female ownership and firms owned by males with
equal minority/nonminority ownership.


Minority-Owned Pipeline Firms and Receipts
As shown in figure 2, minority-owned firms represented an estimated 6 percent 12 of
pipeline firms in 2007. In contrast, nonminority-owned firms represented an
estimated 92 percent of all firms. In addition, minority-owned firms generated an
estimated 3 percent of pipeline industry receipts and nonminority-owned firms
accounted for an estimated 96 percent.




12
    See footnote 8.


Page 5                                                                GAO-12-896R Diversity in Pipeline Ownership
Figure 2: Estimated Minority Shares of Pipeline Firms and Receipts (2007)




Note: figure represents firms classifiable by gender and race. Figure does not include publicly-owned firms.
a
 All estimates from the Census Survey of Business Owners are subject to sampling error. The 95 percent confidence interval is
presented parenthetically after individual estimates. Because Census followed a probability procedure based on random
selections, the sample is only one of a large number of samples that might have been drawn. Since each sample could have
provided different estimates, we express our confidence in the precision of our particular sample’s results as a 95 percent
confidence interval. This is the interval that would contain the actual population value for 95 percent of the samples that could
have been drawn. See enclosure II for more information on sampling errors for the survey estimates.


Female-Owned Pipeline Firms and Receipts

As shown in figure 3, female-owned firms represented an estimated 10 percent 13 of
pipeline firms in 2007. 14 Male-owned firms represented an estimated 70 percent of
all pipeline firms. In addition, female-owned firms generated an estimated 11 percent
of pipeline industry receipts and male-owned firms generated 83 percent of receipts.




13
     See footnote 8.
14
  Because of sampling errors in the SBO data, we are unable to determine whether there are more female-
owned firms than minority-owned firms. However, even accounting for sampling errors, we can determine that
female-owned firms generated more receipts than minority-owned firms.




Page 6                                                                  GAO-12-896R Diversity in Pipeline Ownership
Figure 3: Estimated Female-Owned Shares of Pipeline Firms and Receipts (2007)




Notes: figure represents firms classifiable by gender and race. Figure does not include publicly-owned firms.

Due to rounding, percents may not add to 100.
a
 All estimates from the Census Survey of Business Owners are subject to sampling error. The 95 percent confidence interval is
presented parenthetically after individual estimates. Because Census followed a probability procedure based on random
selections, the sample is only one of a large number of samples that might have been drawn. Since each sample could have
provided different estimates, we express our confidence in the precision of our particular sample’s results as a 95 percent
confidence interval. This is the interval that would contain the actual population value for 95 percent of the samples that could
have been drawn. See enclosure II for more information on sampling errors for the survey estimates.



Minority-Owned, Female-Owned, and Disadvantaged Firms Received an
Estimated 16 Percent or Less of Federal Contract Obligations to the Pipeline
Industry from 2007 to 2011

As shown in table 1, about 16 percent (approximately $484 million out of $3 billion)
of federal prime contract obligations to firms in the U.S. pipeline industry went to
minority- or female-owned pipeline firms 15 from 2007 to 2011. Nonminority male-
owned firms16 received about 84 percent (approximately $2.5 billion out of $3 billion)
of federal obligations to the industry. More specifically, from 2007 to 2011, about 12
percent of federal obligations to the industry went to minority-owned firms and about
5 percent went to female-owned firms. Obligations to minority firms were primarily
for pipeline construction contracts, while obligations to female-owned firms mostly
went to pipeline operators. 17 Additionally, about $246 million—or 8 percent—of
federal obligations went to small disadvantaged firms, 18 including a relatively high

15
 As previously noted, data from the FPDS-NG, which we used to conduct this analysis, are limited to information
about prime contracts.
16
 The category for nonminority male-owned firms includes firms that are equally owned by males and females or
minorities and nonminorities.
17
  For the purposes of this report, pipeline operators are those firms that have NAICS codes related to pipeline
transportation. We included these NAICS codes in this category because firms that provide pipeline
transportation control the movement of pipeline commodities. See footnote 2 for an explanation of NAICS codes.
18
 We included small disadvantaged businesses (SDBs) in our analysis of FPDS-NG data because SDB data
were the best available data we identified on disadvantaged firms. An SDB is a specific type of business that
may be eligible for federal small business programs. In the cases where SDB certification is required,


Page 7                                                                GAO-12-896R Diversity in Pipeline Ownership
percentage of obligations to small disadvantaged construction firms (about 19
percent).

Table 1: Share of Federal Prime Contract Obligations to Ownership Groups within the Pipeline
Industry (2007 to 2011)


                     a
    Ownership Group                                      Share of obligations
    Minority or female                                   16%

    Minority                                             12%

    Female                                               5%

    Small disadvantaged                                  8%

Source: GAO analysis of Federal Procurement Data System-Next Generation data.
a
 The ownership groups for “Minority,” “Female,” and “Small disadvantaged” may include some of the same firms. Therefore,
the percentages provided add up to more than the total included in the “Minority or female” group.




participants in the Small Business Administration’s 8(a) program are deemed to be certified, and other firms may
be certified by the agency conducting the procurement, private certifying entities or state or local governments.
SDBs may include minority- and female-owned firms.




Page 8                                                              GAO-12-896R Diversity in Pipeline Ownership
We are sending copies of this report to the appropriate congressional committees and the
Secretary of Transportation. The report also is available at no charge on the GAO web site
at http://www.gao.gov.

If you or your staff members have any questions about this report, please contact
me at (202) 512-2834 or flemings@gao.gov. Additionally, Sara Vermillion, Assistant
Director; Matt Cook; Colin Fallon; David Hooper; Julia Kennon; Mary Koenen;
SaraAnn Moessbauer; and Josh Ormond made key contributions to this report.




Susan Fleming
Director
Physical Infrastructure Issues




Page 9                                            GAO-12-896R Diversity in Pipeline Ownership
Enclosure I
                              Objectives, Scope, and Methodology

This report examines available data on the extent to which 1) minority- and female-owned firms are
represented in the pipeline industry and 2) the federal government obligated funding to firms in these
categories.


To address these objectives, we searched federal government and privately held
data sets that could include information about the ownership of firms in the pipeline
industry. For the purposes of this report, we considered the following firms to
constitute the pipeline industry: pipeline construction firms and pipeline firms that
transport crude oil, natural gas, and other refined petroleum products. 19 As part of
our search, we discussed potential data sets with the United States Census Bureau
(Census), the Department of Energy, the Department of Transportation and the
Office of Advocacy of the Small Business Administration (SBA). In addition, we
interviewed pipeline industry associations to determine if they collected or were
aware of privately held data on pipeline ownership.


We determined that Census’ 2007 Survey of Business Owners (SBO) and the General Services
Administration’s (GSA) Federal Procurement Data System-Next Generation (FPDS-NG) provided the
                                                                 20                               21
best available data about pipeline firms that are minority-owned, female-owned, or disadvantaged.
Census has collected data through the SBO every 5 years since 1972 as part of the economic
census. The SBO is designed to provide comprehensive, regularly collected information on selected
economic and demographic characteristics for businesses and business owners by gender and race,
among other variables. The 2007 survey was the most recent survey available when we conducted
this review.


Figures in the SBO dataset are estimated from a sample and will differ from the figures that would
have been obtained from a complete census. To design the SBO sample, Census starts with a listing
of all nonfarm businesses both with and without paid employees that file Internal Revenue Service tax
forms with receipts of $1,000 or more. Census uses a variety of information sources to estimate the
probability that each of these businesses is minority- or female-owned, such as word strings in the
company name indicating possible minority ownership. These probabilities are then used to place
each firm in one of nine sampling frames that include race and gender categories, such as American
Indian and women. Firms selected into the sample are mailed questionnaires requesting information
about characteristics of the businesses and their owners. Approximately 62 percent of the 2.3 million
                                                                 22
businesses in the SBO’s 2007 sample responded to the survey. See enclosure II for additional
information about sampling errors for survey estimates.

19
     See footnote 2.
20
     See footnote 4.
21
  See footnote 5.
22
  For the 2007 survey, 72 percent of the companies in the SBO sample returned a questionnaire, but 10 percent
of the returns did not contain enough information to be considered a response for the estimates by race, gender,
ethnicity, and veteran status. About 4 percent of the 2007 non respondents were selected for and responded to
the 2002 SBO. For these firms, data from the 2002 survey were used in place of the missing 2007 responses.
For the remaining non-respondents, gender, ethnicity, race and veteran status were imputed from donor
respondents in the same sampling frame with similar characteristics (state, industry, employment status, size).
Estimates of sampling variability are adjusted to account for non response. Estimates with high error (relative
standard error for sales or receipts of 50 percent or more) are suppressed. Overall, imputed data accounted for
approximately 47 percent of the firm count estimates by gender, ethnicity, race, and veteran status, and
approximately 20 percent of the estimates of sales. Because the assignment of businesses to sampling frames


Page 10                                                       GAO-12-896R Diversity in Pipeline Ownership
For SBO data, we estimated the number of firms in different categories based on
owners’ gender and race. Additionally, as a measure of firm size, we analyzed data
on firm receipts, 23 number of employees, and annual payroll. However, based on a
preliminary analysis, we found that the number of employees and annual payroll
data did not differ significantly from receipts data as indicators of relative market
share. See enclosure II for additional estimates related to employee and payroll
data. Data aggregates are presented for the United States and for various
categories, including gender and race, by 2007 North American Industry
Classification System (NAICS) codes.


The GSA administers the FPDS-NG. FPDS-NG data may be used to: measure and
assess the impact of federal procurement on the nation’s economy; learn how
awards are made in various socioeconomic categories; understand the impact of full
and open competition on the acquisition process; and address changes to
procurement policy. Federal agencies are responsible for collecting and reporting
data to the FPDS-NG. They are expected to report contract actions valued at $3,000
or more, as well as contract modifications. To ensure the reliability of FPDS-NG
data, GSA requires that all federal agencies receive an annual certification stating
the completeness and accuracy percentages of their data in the FPDS-NG.


Our analysis of FPDS-NG data included calculations of federal obligations to
pipeline industry firms from fiscal years 2007 to 2011. We then determined the share
of those obligations that went to different business types (e.g., minority-owned,
female-owned, small disadvantaged firms24). Some firms in both the FPDS-NG and
SBO data sets may be identified in more than one category. For example, some
business owners are both minorities and women.


We assessed the reliability of all data elements presented in this report by reviewing
related documentation, such as methodology descriptions, and interviewing
knowledgeable agency officials. We found that SBO and FPDS-NG data are
sufficiently reliable for our purposes. However, both of these data sets have
limitations. SBO data contain the following limitations:
•      The industry codes used to identify pipeline firms only capture firms that conducted 50
       percent or more of their business in that industry sector during the reporting year.
       Therefore, the SBO may under represent the actual number of firms operating in an
       industry.
•      Data are self-reported by survey respondents and numbers of firms involved in the
       pipeline industry are estimated.

relies heavily on administrative data, and there is a high level of agreement between sampling frame assignment
and tabulated race or ethnicity for responding firms, the donor imputations are considered to be reliable.
23
     See footnote 1.

24
     See footnote 18.




Page 11                                                     GAO-12-896R Diversity in Pipeline Ownership
•   Standard errors associated with certain data points relevant to this review are large
    enough to preclude certain analyses, such as a comparison of the percents of minority-
    or female-owned pipeline firms that are construction or transportation firms.


FPDS-NG data contain the following limitations:
•   Data reflect federal contracts, which represent a small percent of total revenues for the
    pipeline industry.
•   Data reflect federal contracts with prime contractors—not subcontractors.
•   Contracts in the FPDS-NG have only one industry code. Therefore, FPDS-NG contracts
    may not reflect all the work conducted under specific contracts.
•   Female-owned, minority-owned and self-certified small disadvantaged business data are
    self-reported.
•   The number of data points for some segments of the pipeline industry is limited.




Page 12                                             GAO-12-896R Diversity in Pipeline Ownership
Enclosure II

                        Additional Estimates and Sampling Errors

All survey estimates presented in this report have margins of error at the 95 percent
confidence interval. The term “95 percent confidence interval” refers to the interval
that would contain the actual value for 95 percent of the samples that could have
been drawn during a complete census of all businesses in the United States.
Because the Census followed a probability procedure based on random selections,
the SBO sample is one of a large number of samples that might have been drawn.
Since each sample could have provided different estimates, we express our
confidence in the precision of this sample’s results as a 95 percent confidence
interval. See tables 2 and 3 for additional SBO survey estimates and their
associated sampling errors.


Table 2: Estimated Industry-Wide Firms and Receipts with Associated Sampling Errors


    SBO category       All firms (number)    Sampling error of    Receipts ($1,000)    Sampling error of
                                            firms at 95 percent                          receipts at 95
                                            confidence interval                       percent confidence
                                                                                         level ($1,000)
 All firms                          2,519                  197          193,381,228              7,580,544
 Female-owned                         207                   89            3,707,916                218,025
 Male-owned                         1,428                  196           28,374,282              1,668,408
 Equally male-/female-                393                  131            2,150,242                379,303
 owned
 Minority                            117                    96            1,039,219               733,273
 Equally                              41                    60              350,175               171,586
 minority/nonminority
 Nonminority                        1,871                  220           32,843,046             1,931,171
 Minority- or female-                 298                  128            4,504,176               706,255
 owned
 Nonminority- and men-              1,349                  238           27,346,489             1,607,974
 owned
 Remainder of firms                  381                   134            2,381,775               373,462
 classifiable by gender,
 ethnicity, race, and
 veteran status
 All firms classifiable by          2,028                  199           34,232,440             2,012,867
 gender, ethnicity, race,
 and veteran status
 Publicly held and other             491                   115          159,148,788             9,357,949
 firms not classifiable
 by gender, ethnicity,
 race, and veteran
 status
Source: GAO analysis of SBO data.




Page 13                                                  GAO-12-896R Diversity in Pipeline Ownership
Table 3: Estimated Industry-Wide Employee and Annual Payroll Data with Associated
Sampling Errors

    SBO category          Employees          Sampling error of   Annual payroll     Sampling error of
                           (number)          employees at 95       ($1,000)         annual payroll at
                                            percent confidence                        95 percent
                                                 interval                           confidence level
                                                                                        ($1,000)
 All firms                        274,042                5,371         18,442,496             361,473
 Female-owned                       7,072                1,386            433,798              68,020
 Male-owned                        88,454                5,201          5,097,366             299,725
 Equally male-/female-              8,651                2,713            431,530             118,412
 owned
 Minority                           3,636                2,779            199,456             164,192
 Equally                              692                  977             35,625              49,576
 minority/nonminority
 Nonminority                       99,848                5,871          5,727,613             224,522
 Minority- or female-              10,348                2,839            607,856             166,796
 owned
 Nonminority- and                  85,255                5,013          4,917,879             192,781
 men-owned
 Remainder of firms                 8,575                2,689            436,959             119,902
 classifiable by
 gender, ethnicity,
 race, and veteran
 status
 All firms classifiable           104,177                6,126          5,962,694             233,738
 by gender, ethnicity,
 race, and veteran
 status
 Publicly held and                169,865                3,329         12,479,802             489,208
 other firms not
 classifiable by
 gender, ethnicity,
 race, and veteran
 status
Source: GAO analysis of SBO data.




(541093)



Page 14                                                  GAO-12-896R Diversity in Pipeline Ownership
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