INDOT Proposed Disadvantaged Business Enterprise DBE Goal FFY

INDOT Proposed Disadvantaged Business Enterprise (DBE) Goal FFY 2014 -2016 Public Comment Outreach Meeting June 28, 2013

Regulatory Overview n FFY 2014 -2016 Proposed DBE Goal n New Goal Submission Schedule n Base Figure – 49 CFR 26. 45(c) n Adjustments – 49 CFR 26. 45(d) n Race Neutral Projection – 49 CFR 26. 45(f)

FFY 2014 -2016 Proposed DBE Goal n 49 CFR 26. 45(a): n n INDOT must develop an overall goal for DBE participation on federal contracts. 49 CFR 26. 51(d): n INDOT must set goals on enough individual contracts to cumulatively achieve the overall DBE goal. n n Race-Conscious: DBE activity to achieve contract goals Race-Neutral: DBE activity due to “customary competitive procurement procedures” not related to contract goals.

Overall Goal n 49 CFR 26. 45(b): n n Goal must be based on demonstrable evidence of the availability of ready, willing, and able DBEs. Goal should represent the “level of DBE participation you would expect absent the effects of discrimination. ”

New Goal Submission Schedule n 49 CFR 26. 45(f)(1): n n States must submit proposed Goal at three-year intervals. INDOT must request FHWA approval for any significant adjustment to the Goal during the three-year period based on changed circumstances.

Base Figure Methods n 49 CFR 26. 45(c): n n n DBE Directories and Census Data Method Bidder List Method Disparity Study Method Other Recipients Base Figure Method Alternative Method

2014 -2016 Base Figure n n INDOT’s Method: Disparity Study Utilized the 2010 DBE Disparity Study Database n “As recommended by the USDOT, the Disparity Study incorporates the practices of disaggregating data, weighting data, and including potential DBE’s to derive an availability estimate of 12. 40%. ”

Adjustments n 49 CFR 26. 45(d): n n INDOT must examine all available evidence and determine what adjustments, if any, are necessary. Goal of adjustment: n To fine-tune the base figure to reflect the percentage of work that DBE’s are likely to obtain absent discrimination. * *”Tips for Goal-setting in the Disadvantaged Business Enterprise (DBE) Program, ” DOT OSBDU, http: //osdbu. dot. gov/DBEProgram/tips. cfm

INDOT Adjustment Analysis n Median Past Participation (MPP) n DBE participation data (2010 -2012) n MPP Figure is 6. 56% n Bidders List (BL) n Businesses that have bid or quoted on federal-assisted contracts in the past year. n BL Figure is 11. 45%

Final Adjustments n Average the Base Figure, MPP, & BL n n n (Base Figure [12. 40%] + MPP [6. 56%] + BL [11. 45%])/3 = 10. 14% If adjustment considerations suggest similar levels to the Base Figure, then it is not necessary to make any adjustments. * In accordance with the Tips for Goal-Setting in the Disadvantaged Business Enterprises (DBE) Program published by the U. S. Department of Transportation, INDOT determined that an adjustment to the Base Figure was not warranted. *”Tips for Goal-setting in the Disadvantaged Business Enterprise (DBE) Program, ” DOT OSBDU, http: //osdbu. dot. gov/DBEProgram/tips. cfm

Race-Neutral Projection n 49 CFR 26. 45(f) n n INDOT must meet the maximum feasible portion of its overall goal through race-neutral means. INDOT must project how much of the overall goal it expects to meet through race-neutral participation.

Race-Neutral Projection n Median Past Race-Neutral Participation n Based on federal-aid contracts closed during calendar years 2010 -2012. Median Rate is 4. 89% Thus, INDOT projects it shall meet 4. 89% of it’s overall DBE goal through race -neutral measures and 7. 51% through race-conscious measures.

Overall DBE Goal 14 12 10 4. 89% 8 Race-Neutral 6 4 Race-Conscious 7. 51% 2 0 Overall DBE Goal (12. 40%)

Public Comment Period n 49 CFR 26. 45(g)(2) n n INDOT must solicit and accept public comments forty-five (45) days following the first publication of its Proposed Goal Notice. Please submit public comments in writing to INDOT by July 24, 2013.

Thanks for Coming! n Contact information: n Heather Kennedy n n n Phone: (317) 234 -8008 Email: HKennedy@indot. IN. gov David Alyea n n Phone: (317) 234 -7843 Email: DAlyea@indot. IN. gov