goal setting - transportation.org · 2018-02-09 · goal setting and implementation purpose of...

Goal Setting

Goal Setting and Implementation

Purpose of Overall Goal and Project Goal

249 C.F.R. 26.45



Approaches to Calculate Goal

349 C.F.R. 26.45




8 Minimum Requirements

449 C.F.R. 26.45

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

549 C.F.R. 26.45

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

649 C.F.R. 26.45

Overall Goal and Project Goals

Same Substantive and Procedure Requirements

749 C.F.R. 26.45

Must Follow USDOT’s “Tips for Goal-Setting in the DBE Program” http://www.transportation.gov/osdbu/disadvantaged-business-enterprise/tips-goal-setting-disadvantaged-business-enterprise

Operating Administrations (OAs) reviewing goals Using Same Guidance

8

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

Overall Goal and Project Goal

49 CFR 26.45 (f)(4) 9





1049 C.F.R. 26.45

Approaches to Calculate the DBE Goal

11

5 Approaches toCalculate 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)

1249 C.F.R. 26.45

1349 C.F.R. 26.45


1. Census Data + DBE Directory Determine ready, willing, and able DBEs in your market

area from the DBE Directory Determine ready, willing, and able non-DBEs in your

market area from the Census Data Determine all ready, willing, and able firms performing

work under the same NAICS codes Number of DBEs ÷ Number of all firms = Base figure for

relative availability

14


2. Bidders List—49 C.F.R.26.45(c)(2) Bidders from the past 3 years 26.11 Successful and unsuccessful biddersMechanism used to capture this data

15


3. Disparity Study Data Percentage figured derived from data

16


4. Goal from another DOT Recipient Same or substantially similar market Overall goal must be in compliance with 49 C.F.R. 26.45 Goal can be used as base figure

17


5. Alternative Methods—49 C.F.R. 26.45(c)(5) Demonstrable evidence of local market conditions Prequalification list or bidders list must meet regulatory

requirements If using a prequalification list or bidders list exclusively,

it must meet the regulatory requirements If list does not meet the regulatory requirements, you

must supplement with additional sources

18


The exclusive use of a list of prequalified contractors or plan holders is NOT an acceptable alternative means of determining the availability of DBEs

1949 C.F.R. 26.45(c)(5)

Identify Method Selected





2049 C.F.R. 26.45

Minimum Requirements Included in each Method

21

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

2249 C.F.R. 26.45

23

1. FTA-Assisted Contracting Opportunities

Example

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

2449 C.F.R. 26.45

2. Geographic Market Area

Area(s) = state(s), region, etc.

Award a substantial majority of contracts

Boundaries of the geographic market area

25


“Even though the spending data was not comparable, the [Grantee]’s vendor pool has remained consistent. The majority of the [Grantee]’s vendor pool is located in [ ] County, therefore the [Grantee] determined [ ] County to be its local market.”


26

Example

DBEs Potential DBEs All other FirmsGeographic Market Area

NAICS Codes or Other Work Category

Willing to Comply27

3. Step 1: Base Figure

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

28

3. Step 1: Base FigureReady, Willing, and Able

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

29

3. Step 1: Base FigurePotential DBEs

Determine number of ready, willing, and able DBEs from DBE Directory

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/cbpview.html.

= Base Figure

30

3. Step 1: Base FigureCensus & DBE Directory

Search NAICS 236210

31

3. Step 1: Base FigureExpand NAICS Search

Search NAICS 236210

32

3. Step 1: Base FigureExpand NAICS Search

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.

33

3. Step 1: Base FigureBidders List Method

10 DBEs bid or quotedon prime orsubcontracts

___________________ = 10.00 % Base Figure

100 Total Firms bid or quoted on prime or subcontracts

34

3. Step 1: Base FigureBidders List Method

A disparity study typically yields best data available

If you have conducted a disparity study in market area and choose another method, explain why

35

3. Step 1: Base FigureDisparity Study

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.

36

3. Step 1: Base FigureWeighing

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

37


Industry% of Dollars (weight) DBEs Non‐DBEs Weighted %

Trucking 5.00% 1 18 0.28%

Engineering/Design 5.00% 1 17 0.29%

Construction 90.00% 8 65 11.08%

Total 100.00% 10 100 11.65%

Weighting Example: DOT contracts primarily in Trucking, Engineering/Design, and Construction:

38


3. Step 1: Base FigureWeighing Example

39

DBE Directory

US Census Data

FAA DBE Connect

Supplemental Sources 40

4. Identify Sources

UCP and US Bidders List or Census Data PreQual List

41

4. Identify SourcesSupplement Existing Sources

42

4. Identify SourcesExample

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

4349 C.F.R. 26.45

5. Step 2 Adjustment

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

44

5. Step 2 AdjustmentMedian Past DBE Participation (MPP)

1. Tally total DBE achievement percentage for 5 years.

Total DBE Achieved (RC+RN) Total Contract Amt Total DBE %

2010 $750.00 $5,000.00 15.00%2011 $480.00 $4,000.00 12.00%2012 $200.00 $1,000.00 20.00%2013 $240.00 $6,000.00 4.00%2014 $360.00 $6,000.00 6.00%

45

MPP Example

2. Choose median (not average) percentage:

3. Average MPP % with Base Figure %:

BF (11.65%) + MPP (12.00%) Adjusted BF2 = 11.83%

2013 4.00%2014 6.00%2011 12.00%2010 15.00%2012 20.00%

46

MPP Example

Information from disparity studies

Lack of access to financing/bonding

Statistical employment data

Other data affecting likely DBE participation—drastic changes in the economy

47

5. Step 2 AdjustmentOther Evidence

5. Step 2 AdjustmentExample

48

Projection of Race-Neutral and Race-Conscious Participation

4949 C.F.R. 26.45 and 26.51

6. Race-Neutral/Race-Conscious Breakdown


Maximum Feasible Portion of Overall Goal using Race Neutral Measures Specify which race neutral measures will be

implemented

5049 C.F.R. 26.45 and 26.51



Maximum Feasible Portion of Overall Goal using Race Neutral Measures Specify which race neutral measures will be

implemented

Must Establish Contract Goals to Meet Remaining Portion of Goal

5149 C.F.R. 26.45 and 26.51


Race-Neutral DBE Amt Total Contract Amt RN DBE %

2010 $100.00 $5,000.00 2.00%2011 $200.00 $4,000.00 5.00%2012 $30.00 $1,000.00 3.00%2013 $420.00 $6,000.00 7.00%2014 $300.00 $6,000.00 5.00%

52

1. Tally total RN DBE achievement percentage for 5 years.

Race-Neutral Projection Example

2. Choose median RN percentage:

3. Apply to Adjusted Base Figure for final Goal:

Adj. BF: 11.65%

53

6.65% Race‐Conscious5.00% Race‐Neutral

=

2010 2.00%2012 3.00%2011 5.00%2014 5.00%2013 7.00%

Race-Neutral Projection Example

May Benefit DBEs and other Small Businesses

54

6. Race-Neutral Measures

49 C.F.R. 26.51


Determine the Small Business Needs within your Geographic Area

55


49 C.F.R. 26.51


Determine the Small Business Needs within your Geographic Area

Incorporate Race-Neutral Measures that meet the Needs of your Small Business Community

56


49 C.F.R. 26.51

57

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

6. Race-Neutral Participation

Only Certified DBEs Benefit

Contract Goals

Good Faith Efforts (GFEs)

5849 C.F.R. 26.51 and 26.53

6. Race-Conscious Measures

Submit Complete and Accurate InformationEnsure bid/quote includes proper NAICS CodeEnsure NAICS Code corresponds with scope of

contract

5949 C.F.R. 26.53

6. Race-Conscious MeasuresContract Goals:

DBEs’ Responsibility

Meet Contract GoalSubmit DBE identifying informationSubmit DBE NAICS Codes and DBE scope of workSubmit amount of DBE subcontractSubmit written commitment to use DBE subcontractor Submit DBE’s written commitment to work on project

OR…

6049 C.F.R. 26.53


Bidders’ Responsibility

Submit Sufficient GFEsAppendix A ScopeIntensityAppropriateness

Fact-Specific Determination

6149 C.F.R. 26.53



Submit Sufficient GFEsAppendix A DBE and non-DBE subcontractor quotes when DBE

was not selected to perform on contract Requesting DBE bids through mailings is not

sufficient

6249 C.F.R. 26.53



Thoroughly Review Response to Contract GoalsEnsure the DBE services can be counted

6349 C.F.R. 26.53


Recipients’ Responsibility

Responsiveness:

Responsibility:

6449 C.F.R. 26.53


Timeframe to Submit Information

49 C.F.R. 26.53

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)

65


Recipients’ Responsibility

Continuous and Active Small Business Community Engagement minority organizations, women's groups, and and general contractor groups

6649 C.F.R. 26.45

7. Meaningful Consultation


Small Business Community and Stakeholder Engagement minority organizations, women's groups, and general

contractor groups scheduled, direct, and interactive exchanges DBE and non-DBE availability Effects of discrimination Efforts to establish level playing field

6749 C.F.R. 26.45

Must submit evidence of public participation Comments/feedback received Persons/organizations contactedMeetings held

6849 C.F.R. 26.45


Stakeholder meetings must occur before you are required to submit your methodology to the OA

69


Recipient may notimplement the proposedgoal until it has compliedwith this requirement


70

Example

8. Proof of Publication

Must Post on Official Internet Webpage

May Post on other Media OutletsMust allow 30 day public comment period

7149 C.F.R. 26.45

72

8. Proof of PublicationExample

goal setting - transportation.org · 2018-02-09 · goal setting and implementation purpose of...

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