DBE Program Requirements on FederalAid Projects Liz Healas

DBE Program Requirements on Federal-Aid Projects Liz Healas, DBE Program Coordinator Idaho Transportation Department

What OCR Tracks & Why v Bidders Registration § Information required by federal regulation § Gives us information on available bidding pool to develop DBE goal methodology v Contracting & Payment Activity § Federal requirement for prompt payment 109. 05 in Standard Specs for Hwy Construction § Tells us how much $$$ goes to DBE firms ITD must meet annual participation goal with FHWA Mandatory 6 -month reporting to FHWA on commitments, payments & contract close-outs All these functions now consolidated into new online ITD Diversity Management System (B 2 GNow)

Quick Overview The DBE Program … v. Federal Program (USDOT) administered by state transportation agencies & other direct federal-aid recipients Counties, Cities, Airports, Transit Authorities, etc. v. Applies to all transportation modes Highway, Aviation & Transit

Brief History v 1980: Began as MBE program under Title VI v 1983: Got its own statutory provision & was signed into law by President Reagan At least 10% of federal-aid contracting $$ had to be expended on DBEs v 1987: Expanded to include WBEs v 1999: Supreme Court directed “narrow tailoring” of goals

Why Have a DBE Program? v. The DBE Program is USDOT’s most important tool for ensuring that firms competing for USDOT-assisted contracts are not disadvantaged by unlawful discrimination. v. Bottom Line: a condition for receiving federal transportation funding

Now, the Essentials … What is a DBE? A Disadvantaged Business Enterprise (DBE) is a small, for-profit business concern that is at least 51% owned & controlled by socially & economically disadvantaged individuals

DBE Program Components v. Help remove barriers to DBE working on USDOT-assisted projects Establishing goals for federal-aid projects § Overall Annual Participation Goal (APG) § Project Goals (when applicable) v. Ensure only firms meeting eligibility standards can participate as DBEs ITD handles all certification in Idaho under Unified Certification Program (UCP) Agreement DBE Directory is at https: //itd. dbesystem. com

DBE Program Components v. Contract Administration DBE Special Provisions Prime Contractor Compliance § Prompt Payment DBEs must perform “CUFs” § CUF On-sites performed by ITD District Staff v. Federal Oversight & Reporting (FTA, FHWA, FAA) DBE Commitments/Awards & Payments, every 6 months Audits/Reviews

What Happened to Project Goals? v 9 th Circuit Court of Appeals decision in 2005 DBE Program not “narrowly tailored” States must produce evidence to support goal -setting v. USDOT instructed western states justify project goal-setting with disparity studies Idaho’s DBE Program “race/gender-neutral” since January 2006

“Race/Gender-Neutral” v“Neutral” = no individual DBE project goals Usage of DBEs is voluntary Primes must still provide equal opportunity v. ITD still must meet overall APG FHWA FFY 15 -17 APG for FAA is 0% FHWA FFY 15 -17 APG for FTA is 7% FHWA FFY 14 -16 APG for FWA is 7. 6% Disparity Study Update in 2016

DBE Utilization 14. 00% 12. 00% 10. 00% 8. 00% Annual Participation Goal (APG) 6. 00% Commitments/Awards Made During this Period 4. 00% 2. 00% 5 Y 2 01 4 FF Y 2 FF 01 Y 2 01 3 2 FF Y 2 01 1 FF Y 2 FF 01 Y 2 01 0 9 FF Y 2 FF 00 8 7 00 Y 2 FF Y 2 00 FF FF Y 2 00 5* 6* * 0. 00% *FFY 05: Last Year of Project Goals **FFY 06: Race/Gender-Neutral Program

Today’s Takeways v. New System will give us real-time data Accurate Reporting to FHWA on DBE Commitments/Payment/Attainment § Will capture low-tiers & suppliers Primes must ensure these companies are on Bidders List Primes can monitor own DBE participation Provide valuable info on bidding pool for goalsetting methodology v. Meets Federal Requirements for Prompt Payment

Questions Afterwards? Liz Healas, DBE Program Coordinator (208) 334 -8567 elizabeth. healas@itd. idaho. gov Visit us online at: www. itd. idaho. gov/ocr/index. aspx Contact us if you’d like to be on our newsletter emailing list.

EEO and Title VI Idaho Transportation Department Liz Healas, Russ Rivera. DBE Program Coordinator Civil Rights Contract Compliance Idaho Transportation Department Officer Idaho Transportation Department

“A great Place to Raise a Family” • 8 th Safest State • 60, 000 Miles of Road • 4, 000 Bridges • 185 Sub-recipient agencies • Construction contractors • 1. 6 Million People

EEO CCO • EEO Special Provision • Job Boards • Advertisement • Onsite Reviews • Training Special Provision • OJT/SS – Apprenticeship Programs • TERO Special Provision

Title VI

John F. Kennedy “Simple justice requires that public funds, to which all taxpayers of all races contribute, not be spent in any fashion which encourages, entrenches, subsidizes or results in racial discrimination”

42 US Code 2000 No person in the United States shall, on the ground of race, color, or national origin, be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity receiving Federal financial assistance.

ITD Title VI Policy • • • Race, Color, National Origin Sex Age Disability English Speaking Proficiency Income Status

Case Studies

Russ Rivera Civil Rights Compliance Officer Idaho Transportation Department (208) 334 -8152 Russ. Rivera@ITD. Idaho. Gov