Goal Setting Goal Setting and Implementation Purpose of

Goal Setting

Goal Setting and Implementation Purpose of Overall Goal and Project Goal 49 C. F. R. 26. 45 2

Goal Setting and Implementation Purpose of Overall Goal and Project Goal Approaches to Calculate Goal 49 C. F. R. 26. 45 3

Goal Setting and Implementation Purpose of Overall Goal and Project Goal Approaches to Calculate Goal 8 Minimum Requirements 49 C. F. R. 26. 45 4

Purpose of Overall Goal Establish Anticipated Amount of DBE Participation on DOT-Assisted Projects § FAA/FHWA/FTA Recipients: annual goal reviewed every 3 years § FTA TVMs: annual goal reviewed each year 49 C. F. R. 26. 45 5

Purpose of Overall Goal The goal percentage represents the amount of DBE participation that would be expected absent the effects of current and past discrimination 49 C. F. R. 26. 45 6

Overall Goal and Project Goals Same Substantive and Procedural Requirements 49 C. F. R. 26. 45 7

Must Follow USDOT’s “Tips for Goal-Setting in the DBE Program” http: //www. transportation. gov/osdbu/disadvantagedbusiness-enterprise/tips-goal-setting-disadvantagedbusiness-enterprise Operating Administrations (OAs) reviewing goals Using Same Guidance 8

Overall Goal and Project Goal OA reviews Recipient’s proposed overall goal and may adjust the goal or require the Recipient to adjust the goal if it believes the goal has not been correctly calculated or the methodology is inadequate Recipient may operate under proposed goal prior to OA approval 49 CFR 26. 45 (f)(4) 9

Goal Setting and Implementation Purpose of Overall Goal and Project Goal Approaches to Calculate Goal 8 Minimum Requirements 49 C. F. R. 26. 45 10

Approaches to Calculate the DBE Goal 11

5 Approaches to Calculate the DBE Goal 1. Census Data + DBE Directory 2. Bidders List— 49 C. F. R. 26. 45(c)(2) 3. Disparity Study Data 4. Goal from another DOT Recipient 5. Alternative Methods— 49 C. F. R. 26. 45(c)(5) 49 C. F. R. 26. 45 12

5 Approaches to Calculate the DBE Goal 49 C. F. R. 26. 45 13

5 Approaches to Calculate the DBE Goal 1. Census Data + DBE Directory q Determine ready, willing, and able DBEs in your market area from the DBE Directory q Determine ready, willing, and able non-DBEs in your market area from the Census Data q Determine all ready, willing, and able firms performing work under the same NAICS codes q Number of DBEs ÷ Number of all firms = Base figure for relative availability 14

5 Approaches to Calculate the DBE Goal 2. Bidders List— 49 C. F. R. 26. 45(c)(2) q Bidders from the past 3 years q 26. 11(c) q Successful and unsuccessful bidders q Mechanism used to capture this data 15

5 Approaches to Calculate the DBE Goal 3. Disparity Study Data q Percentage figured derived from data 16

5 Approaches to Calculate the DBE Goal 4. Goal from another DOT Recipient q Same or substantially similar market q Overall goal must be in compliance with 49 C. F. R. 26. 45 q Goal can be used as base figure q Must make Step 2 Adjustments— 49 C. F. R. 26. 45(d)(iii) 17

5 Approaches to Calculate the DBE Goal 5. Alternative Methods— 49 C. F. R. 26. 45(c)(5) q Demonstrable evidence of local market conditions q Prequalification list or bidders list must meet regulatory requirements q If using a prequalification list or bidders list exclusively, it must meet the regulatory requirements q If list does not meet the regulatory requirements, you must supplement with additional sources 18

Goal Setting and Implementation Purpose of Overall Goal and Project Goal Approaches to Calculate Goal 8 Minimum Requirements 49 C. F. R. 26. 45 19

Minimum Requirements Included in each Method 20

1. FTA-Assisted Contracting Opportunities ALL OA-Assisted Activities that include Possible Contracting Opportunities Include Sub-Recipient Contracting Opportunities Assign Appropriate NAICS Code for Contracting Opportunities 49 C. F. R. 26. 45 21

1. FTA-Assisted Contracting Opportunities Example 22

2. Geographic Market Area Determine Relevant Geographic Market Area (GMA): Geographic distribution of contractors and subcontractors and area in which contracting dollars are spent Note: relevant Market Area may not be the same State geographic boundaries 49 C. F. R. 26. 45 23

2. Geographic Market Area(s) = state(s), region, etc. Award a substantial majority of contracts Boundaries of the geographic market area 24

2. Geographic Market Area Example “Even though the spending data was not comparable, over 75% of [Grantee]’s vendor pool is located in [ ] County, therefore the [Grantee] determined [ ] County to be its local market. ” 25

3. Step 1: Base Figure DBEs Potential DBEs All other Firms Geographic Market Area NAICS Codes or Other Work Category Willing to Comply 26

3. Step 1: Base Figure Ready, Willing, and Able Applies to All Firms May Include Potential DBEs in Goal Setting May NOT Include Potential DBEs in Counting DBE Participation, Reporting, or Good Faith Efforts Determinations 27

3. Step 1: Base Figure Potential DBEs Supplement certified firms list § Minority and women-owned business lists § Census data on minority and women-owned businesses in market area Adequate Outreach Needed to Encourage Firms to become Certified 28

3. Step 1: Base Figure Census & DBE Directory Determine number of ready, willing, and able DBEs from DBE Directory = Base Figure Use Census Bureau County Business Pattern (CBP) database to determine number of all ready, willing, and able businesses available in your market performing work in same NAICS codes http: //www. census. gov/epcd/cbp/view/cbpv iew. html. 29

3. Step 1: Base Figure Expand NAICS Search NAICS 236210 30

3. Step 1: Base Figure Expand NAICS Search NAICS 236210 31

3. Step 1: Base Figure Bidders List Method 49 CFR § 26. 45(c)(2): Acceptable only if you have a method of collecting data on: – ALL businesses, successful OR unsuccessful, that have bid or quoted on prime or subcontracts during the previous three or one year period – ALL DBE and non-DBE subcontractors that submitted bids or quotes during time period. 32

3. Step 1: Base Figure Bidders List Method 10 DBEs bid or quoted on prime or subcontracts __________ = 10. 00 % Base Figure 100 Total Firms bid or quoted on prime or subcontracts 33

3. Step 1: Base Figure Disparity Study A disparity study typically yields best data available If you have conducted a disparity study in market area and choose another method, explain why 34

3. Step 1: Base Figure Weighing Weighting by Work Type § Provides a more narrowly-tailored model of availability § Weights used are proportion of dollars spent within each industry: resulting percentage is more heavily influenced by availability in industries where more dollars are spent § May use NAICS, internal work codes, etc. 35

3. Step 1: Base Figure Weighing Decide which work types best represent your DOT-assisted contracts (NAICS Codes) Tally the dollars spent in each work type category as a percentage of the total contract dollars spent Assign work types to each DBE and non-DBE firm 36

3. Step 1: Base Figure Weighing Weighting Example: DOT contracts primarily in Trucking, Engineering/Design, and Construction: Industry % of Dollars (weight) DBEs Non-DBEs Weighted % Trucking 5. 00% 1 18 0. 28% Engineering/Design 5. 00% 1 17 0. 29% 90. 00% 8 65 11. 08% 100. 00% 10 100 11. 65% Construction Total 37

3. Step 1: Base Figure Weighing Example 38

4. Step 2 Adjustment Recipient must examine all available evidence and determine what adjustments, if any, are necessary It is not necessary to make a Step Two adjustment but must include explanation 49 C. F. R. 26. 45 39

4. Step 2 Adjustment Median Past DBE Participation (MPP) Use DBE participation data from past 3 to 5 years to demonstrate capacity (percentages) If MPP figure is very similar to Step One base figure, should not make any adjustment for past participation 40

MPP Example 1. Tally total DBE achievement percentage for 5 years. 2010 2011 2012 2013 2014 Total DBE Achieved (RC+RN) $750. 00 $480. 00 $200. 00 $240. 00 $360. 00 Total Contract Amt Total DBE % $5, 000. 00 15. 00% $4, 000. 00 12. 00% $1, 000. 00 20. 00% $6, 000. 00 4. 00% $6, 000. 00 6. 00% 41

MPP Example 2. Choose median (not average) percentage: 2013 2014 2011 2010 2012 4. 00% 6. 00% 12. 00% 15. 00% 20. 00% 3. Average MPP % with Base Figure %: BF (11. 65%) + MPP (12. 00%) 2 = Adjusted BF 11. 83% 42

4. Step 2 Adjustment Other Evidence Information from disparity studies Lack of access to financing/bonding Statistical employment data Other data affecting likely DBE participation— drastic changes in the economy 43

4. Step 2 Adjustment Supplement Existing Sources UCP and US Census Data Bidders List or Pre. Qual List 44

4. Step 2 Adjustment Example 45

5. Identify Sources DBE Directory US Census Data FAA DBE Connect Supplemental Sources 46

5. Identify Sources Example 47

6. Race-Neutral/Race-Conscious Breakdown Projection of Race-Neutral and Race-Conscious Participation 49 C. F. R. 26. 45 and 26. 51 48

6. Race-Neutral/Race-Conscious Breakdown Projection of Race-Neutral and Race-Conscious Participation Maximum Feasible Portion of Overall Goal using Race Neutral Measures q Specify which race neutral measures will be implemented 49 C. F. R. 26. 45 and 26. 51 49

6. Race-Neutral/Race-Conscious Breakdown Projection of Race-Neutral and Race-Conscious Participation Maximum Feasible Portion of Overall Goal using Race Neutral Measures q Specify which race neutral measures will be implemented Must Establish Contract Goals to Meet Remaining Portion of Goal 49 C. F. R. 26. 45 and 26. 51 50

Race-Neutral Projection Example 1. Tally total RN DBE achievement percentage for 5 years. 2010 Race-Neutral DBE Amt $100. 00 2011 2012 2013 2014 $200. 00 $30. 00 $420. 00 $300. 00 Total Contract Amt RN DBE % $5, 000. 00 2. 00% $4, 000. 00 $1, 000. 00 $6, 000. 00 5. 00% 3. 00% 7. 00% 51

Race-Neutral Projection Example 2. Choose median RN percentage: 2010 2012 2011 2014 2013 2. 00% 3. 00% 5. 00% 7. 00% 3. Apply to Adjusted Base Figure for final Goal: Adj. BF: 11. 65% = 6. 65% Race-Conscious 5. 00% Race-Neutral 52

6. Race-Neutral Measures May Benefit DBEs and other Small Businesses 49 C. F. R. 26. 51 53

6. Race-Neutral Measures May Benefit DBEs and other Small Businesses Determine the Small Business Needs within your Geographic Area 49 C. F. R. 26. 51 54

6. Race-Neutral Measures May Benefit DBEs and other Small Businesses Determine the Small Business Needs within your Geographic Area Incorporate Race-Neutral Measures that meet the Needs of your Small Business Community 49 C. F. R. 26. 51 55

6. Race-Neutral Participation DBE primes DBE participation on non-goal contracts DBE participation beyond goal DBE participation on contracts with goals where prime awards DBE subcontract– not because of goal—but because it has strict low-bid policy 56

6. Race-Conscious Measures Only Certified DBEs Benefit Contract Goals Good Faith Efforts (GFEs) 49 C. F. R. 26. 51 and 26. 53 57

6. Race-Conscious Measures Contract Goals: DBEs’ Responsibility Submit Complete and Accurate Information q. Ensure bid/quote includes proper NAICS Code q. Ensure NAICS Code corresponds with scope of contract 49 C. F. R. 26. 53 58

6. Race-Conscious Measures Contract Goals: Bidders’ Responsibility Meet Contract Goal q. Submit DBE identifying information q. Submit DBE NAICS Codes and DBE scope of work q. Submit amount of DBE subcontract q. Submit written commitment to use DBE subcontractor q Submit DBE’s written commitment to work on project OR… 49 C. F. R. 26. 53 59

6. Race-Conscious Measures Contract Goals: Bidders’ Responsibility Submit Sufficient GFEs q. Appendix A q Scope q. Intensity q. Appropriateness q Fact-Specific Determination 49 C. F. R. 26. 53 60

6. Race-Conscious Measures Contract Goals: Bidders’ Responsibility Submit Sufficient GFEs q. Appendix A q. DBE and non-DBE subcontractor quotes when DBE was not selected to perform on contract q. Requesting DBE bids through mailings is not sufficient 49 C. F. R. 26. 53 61

6. Race-Conscious Measures Contract Goals: Recipients’ Responsibility Thoroughly Review Response to Contract Goals q. Ensure the DBE services can be counted 49 C. F. R. 26. 53 62

6. Race-Conscious Measures Contract Goals: Timeframe to Submit Information Responsiveness: Responsibility: 49 C. F. R. 26. 53 63

6. Race-Conscious Measures Contract Goals: Recipients’ Responsibility Responsiveness: Submit DBE Participation Information or GFE Documentation at Time Bid is Entered Responsibility: Submit DBE Participation Information or GFE Documentation up to 7 Days after Bid Opening and Before Contract Award (5 days—January 2017) 49 C. F. R. 26. 53 64

7. Meaningful Consultation Continuous and Active Small Business Community Engagement q minority organizations, q women's groups, and q and general contractor groups 49 C. F. R. 26. 45 65

7. Meaningful Consultation Small Business Community and Stakeholder Engagement q minority organizations, women's groups, and general contractor groups q scheduled, direct, and interactive exchanges q DBE and non-DBE availability q Effects of discrimination q Efforts to establish level playing field 49 C. F. R. 26. 45 66

7. Meaningful Consultation Must submit evidence of public participation q Comments/feedback received q Persons/organizations contacted q Meetings held 49 C. F. R. 26. 45 67

7. Meaningful Consultation Stakeholder meetings must occur before you are required to submit your methodology to the OA Recipient may not implement the proposed goal until it has complied with this requirement 68

7. Meaningful Consultation Example 69

8. Proof of Publication Must Post on Official Internet Webpage May Post on other Media Outlets q Must allow 30 day public comment period 49 C. F. R. 26. 45 70

8. Proof of Publication Example 71

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