DBE And ACDBE Goal-Setting
DBE and ACDBEGoal-SettingPresented by:Ofelia Medina, DBE/ACDBE ComplianceSpecialistReportingCentral Region&Thomas Knox, DBE/ACDBE Compliance SpecialistNew England RegionDBE AcademyJanuary 25 – 27, 2016
Goal Setting and Implementation Purpose of Overall Goal and ProjectGoal2
Goal Setting and Implementation Purpose of Overall Goal and ProjectGoal Approaches to Calculate Goal3
Goal Setting and Implementation Purpose of Overall Goal and ProjectGoal Approaches to Calculate Goal 8 Minimum Requirements4
Goal Setting and Implementation Purpose of Overall Goal and ProjectGoal Approaches to Calculate Goal 8 Minimum Requirements Purpose of Overall ACDBE Goal5
Goal Setting and Implementation Purpose of Overall Goal and ProjectGoal Approaches to Calculate Goal 8 Minimum Requirements Purpose of Overall ACDBE Goal Accountability Requirements6
Who Must Have a DBEProgram/Set Goals? Program: FAA grant recipients for airportplanning or development awarding primecontracts 250,000 or more in FAA funds in aFFY Goals: FAA recipients who anticipateawarding 250,000 or more in FAA funds inprime contracts in a FFY7
Purpose of Overall GoalEstablish Anticipated Amount ofDBE Participation on DOT-AssistedProjects absent effects ofdiscrimination FAA Recipients: annual goal reviewedevery 3 years8
Overall Goal and Project GoalsSame Substantive and ProceduralRequirements9
Must Follow USDOT’s “Tips for GoalSetting in the DBE advantaged-business-enterpriseFAA Reviews Goals Using Same Guidance10
Overall Goal and Project Goals FAA reviews Recipient’s proposedoverall goal and may adjust the goal orrequire the Recipient to adjust the goal ifit believes the goal has not been correctlycalculated or the methodology isinadequate Recipient may operate under proposedgoal prior to FAA approval11
Approaches to Calculatethe DBE Goal12
5 Approachesto Calculate the DBE Goal1. DBE Directory Census Data2. Bidders List3. Disparity Study Data4. Goal from another DOT Recipient5. Alternative Methods13
5 Approachesto Calculate the DBE Goal1. DBE Directory Census Data Determine ready, willing, and able DBEs in yourmarket area from the DBE Directory Determine ready, willing, and able all firms in yourmarket area from the Census Data Determine all ready, willing, and able firmsperforming work under the same NAICS codes Number of DBEs Number of all firms Basefigure for relative availability14
5 Approachesto Calculate the DBE Goal2. Bidders List 26.11(c) Requirement Bidders from the past 3 years Successful and unsuccessful bidders15
5 Approachesto Calculate the DBE Goal3. Disparity Study Data Percentage figure derived from data16
5 Approachesto Calculate the DBE Goal4. Goal from another DOT Recipient Same or substantially similar market Overall goal must be in compliance with 49C.F.R. 26.45 Goal can be used as base figure17
5 Approachesto Calculate the DBE Goal5. Alternative Methods—49 C.F.R. 26.45(c)(5) Demonstrable evidence of local marketconditions Prequalification list or bidders list must meetregulatory requirements If list does not meet the regulatory requirements,you must supplement with additional sources18
Identify Method SelectedThe exclusive use of a listof prequalified contractorsor plan holders is NOT anacceptable alternativemeans of determining theavailability of DBEs.19
Goal Setting and Implementation Purpose of Overall Goal and ProjectGoal Approaches to Calculate Goal 8 Minimum Requirements Purpose of Overall ACDBE Goal Accountability Requirements20
Minimum RequirementsIncluded in each Method21
1. FAA-Assisted Contracting Opportunities ALL FAA-Assisted Activities thatinclude Possible ContractingOpportunities Include Potential ContractingOpportunities Assign Appropriate NAICS Code forContracting Opportunities22
2. Geographic Market AreaDetermine Relevant Geographic MarketArea (GMA): Geographic distribution ofcontractors and subcontractors and area inwhich contracting dollars are spent.Note: Relevant Market Area may not be (i.e.,doesn’t have to be) the same as your Stategeographic boundaries23
3. Step One: Base FigureDBEsPotential DBEsAll other Firms Geographic Market Area NAICS Codes24
3. Step One: Base Figure, cont’d.Determine number of ready, willing, andable DBEs from DBE Directory Base FigureUse Census Bureau County BusinessPattern (CBP) database to determinenumber of all ready, willing, and ablebusinesses available in your marketperforming work in same NAICS tml.25
3. Step One: Base Figure, cont’d.Example Using Bidders List10 DBEs bid or quotedon prime or subcontracts 10.00 % Base Figure100 Total Firms bid orquoted on primeor subcontracts26
3. Step One: Base Figure, cont’d.Example Using Bidders List49 CFR §26.45(c)(2): Acceptable only if youhave a method of collecting data on:– ALL businesses, successful OR unsuccessful, thathave bid or quoted on prime or subcontracts duringthe previous three years– ALL DBE and non-DBE subcontractors thatsubmitted bids or quotes during that time period.27
3. Step One: Base Figure, cont’d.Disparity Study Method A disparity study typically yields best dataavailable. If you have conducted a disparity study inmarket area and choose another method,explain why.28
4. WeightingWeighting by Work Type Provides a more narrowly-tailored model ofavailability Weights used are proportion of dollars spentwithin each industry/trade: resulting percentageis more heavily influenced by availability inindustries/trades where more dollars are spent29
4. Weighting, cont’d. Apply NAICS code to each type of work inyour project Tally the dollars spent in each work typecategory as a percentage of the total contractdollars spent Assign work types to each DBE and non-DBEfirm30
4. Weighting, cont’d.ExampleYour contracts are primarily in Trucking,Engineering/Design, and Construction:IndustryContract % of DollarsWeighted (weight)DBEs Non-DBEs%Trucking 1005.00%1180.28%Engineering/Design 1005.00%1170.29%Construction 180090.00%86511.08%Total 2000100.00%1010011.65%31
5. Identify SourcesDBE DirectoryUS Census DataFAA db-E Connector Supplemental Sources32
6. Step Two AdjustmentRecipient must examine all available evidenceand determine what adjustments, if any, arenecessaryStep Two adjustment not required but if youdon’t, you must include an explanation.33
6. Step Two Adjustment, cont’d.Median Past DBE Participation (MPP) Use median DBE participation data from past3 to 5 years to demonstrate capacity(percentages) If MPP figure is very similar to Step One basefigure, you are not required to makeadjustment for past participation34
6. Step Two Adjustment, cont’d.MPP Example1. Tally total DBE achievement percentagesfor 3 to 5 years.20102011201220132014Total DBE Achieved Total Contract(RC RN)AmtTotal DBE % 750.00 5,000.0015.00% 480.00 4,000.0012.00% 200.00 1,000.0020.00% 240.00 6,000.004.00% 360.00 6,000.006.00%35
6. Step Two Adjustment, cont’d.MPP Example2. Choose median (not average) 00%20.00%3. MPP % with Base Figure %:BF (11.65%) MPP (12.00%)2 Adjusted BF11.83%36
6. Step Two: Adjustment, cont’d.Other Evidence Information from disparity studies Lack of access to financing/bonding Statistical employment data Other data affecting likely DBE participation, e.g.,drastic changes in the economy37
7. Race-Neutral/Race-ConsciousBreakdown Projection of Race-Neutral and Race-ConsciousParticipation Maximum Feasible Portion of Overall Goal usingRace-Neutral Measures Specify which race-neutral measures will be used Must Establish Contract Goals to Meet RemainingPortion of Goal38
Race-Neutral ProjectionExample1. Tally total R/N DBE achievement percentages for5 years2010Race-Neutral DBEAmt 100.00Total ContractAmt 5,000.00RN DBE %2.00%2011201220132014 200.00 30.00 420.00 300.00 4,000.00 1,000.00 6,000.00 6,000.005.00%3.00%7.00%5.00%39
Race-Neutral Projection, cont’d.2. Choose medianRN percentage:3. Apply toadjusted basefigure for 7.00%6.65% Race-Conscious5.00% Race-Neutral 11.65% (your adjusted base figure)40
Race-Neutral Measures May Benefit DBEs and other Small Businesses Determine the Small Business Needs withinyour Geographic Area Incorporate Race-Neutral Measures that meetthe Needs of your Small BusinessCommunity41
Race-Conscious Measures9th Circuit RecipientsAK, AZ, CA, HI, ID, MT, NV, OR WAMust Examine All Available Evidence ofDiscrimination Conduct a disparity/availability study Evaluate the study of a similarly situatedrecipient Narrowly tailored use of contract goalsInclude Evidence with Goal MethodologyWestern States Paving Co. v. Washington Dept. ofTransportation, 407 F. 3d 983 (9th Cir. 2005)42
7. ConsultationSmall Business Community and StakeholderEngagement Minority organizations, women's groups, andgeneral contractor groups Scheduled, direct, and interactive exchanges DBE and non-DBE availability Effects of discrimination Efforts to establish level playing field43
7. Consultation, cont’d.Must submit evidence of publicparticipation Comments/feedback received Persons/organizations contacted Meetings held44
7. Consultation, cont’d.Stakeholder meetings must occur beforeyou are required to submit yourmethodology to the OARecipient may notimplement the proposedgoal until it has compliedwith this requirement45
8. Proof of PublicationMust Post on Official Internet WebpageMay Post on other Media Outlets Must allow 30 day public commentperiod46
Goal Setting and Implementation Purpose of Overall Goal and Project Goal Approaches to Calculate Goal 8 Minimum Requirements Purpose of Overall ACDBE Goal Accountability Requirements47
Purpose of Overall ACDBE Goal Ensure nondiscrimination Create level playing field Ensure that the ACDBE program is narrowlytailored Ensure that only eligible firms participate asACDBEs Remove barriers to the participation of ACDBEs Provide appropriate flexibility to airports inestablishing and providing opportunities forACDBEs48
What is a Concession? Engaged in sale of goods and/or services to the public ora business that provides goods and services to thosebusinesses Even if no office, store or other type of location on theairport premises it may still be considered a concessionIF activities take place at the airport– Advertising– Web-based or electronic businesses accessible at the airport– Businesses that provide goods and services toconcessionaires49
What is a Concession? Simply deliver to or pick up passengers fromthe airport? Not a concession Presence on the airport (taxi dispatcher, limoticket booth, or car rental counter)? Is a concession50
Who Must Have ACDBE Goals? Recipients who are required to have an ACDBEProgram must also establish two separate overallACDBE goals – Car Rentals and Concessions OtherThan Car Rentals Goal (each) due if annual revenue over preceding threeyears is greater than 200K Goal covers three-year period; review annually forgood fit Report significant adjustments to FAA Participation by all certified ACDBES51
Establishing ACDBE GoalsFailure to establish and implement goalsorIf you establish and implement differently (w/oapproval)Non-ComplianceNo FAA Financial Assistance52
Establishing ACDBE Goals Objective is to estimate percentage of basefigure that would be performed by ACDBEs inthe absence of discrimination and its effects– That is, the estimated ACDBE participation thatwould occur if there were a “level playing field” forfirms to work as concessionaires for your airport You must complete the goal-setting processseparately for each of the two overall goalsidentified53
Establishing Overall ACDBEGoals Goal based on evidence of R/W/A ACDBEs relative toall businesses R/W/A to participate Cannot rely on 10% national aspirational goal,previous overall goal, or past ACDBE participationrates without reference to relative availability ofACDBEs in your market Market area geographical area where majority offirms seeking to do business with the airport and wherethose firms receiving substantial majority ofconcessions-related revenues are located Market area may be different for different types ofconcessions54
Approaches to Calculatethe ACDBE Goal55
5 Approachesto Calculate the ACDBE Goal1. DBE/ACDBE Directory Census Data2. Bidders List3. Disparity Study Data4. Goal from another DOT Recipient5. Alternative Methods56
ACDBE – Base for Car Rental GoalExcept in the case where you use the alternativegoal approach of §23.51(c)(5)(ii),[all or most of the goal is likely to be met through purchases by carrental companies of vehicles or other goods or services from ACDBEs, soyou structure the goal entirely in terms of purchases of goods andservices. If so, calculate your car rental overall goal: of suchpurchases/estimated value of all purchases to be made by car rentalcompanies.]the base for your goal is the total gross receiptsof car rental operations at your airport. You donot include gross receipts of other concessions inthis base.57
ACDBE – Base for Concession GoalOther Than Car Rentals Includes total gross receipts of concessions Does not include:– gross receipts of car rental operations– dollar amount of management contracts orsubcontracts with a non-ACDBE firm, and grossreceipts of business activities to which amanagement or subcontract with a non-ACDBEpertains– Any portion of a firm's estimated gross receipts thatwill not be generated from a concession58
ACDBE Goal: Non-Car RentalExample Previous 3-year average concession revenuesare 1M Over the next three years, the airport:– expects consistent revenue– estimates revenues to existing concessions willgrow by 5% (e.g., inflation increased passengertraffic)– does not anticipate major changes to increase ordecrease concession revenue Base for goal is 1,050,00059
ACDBE Goal: Non-Car RentalExample, cont’d. Using DBE Directories/Census Data– Calculate number of ACDBEs in your directory anddivide it by number of all concession businesses inCensus data using the same NAICS and samemarket areaFor example:7 ACDBEs divided by 200 businesses 3.5%60
ACDBE Goal: Non-Car RentalExample, cont’d. Using Active Participants List– Determine number of ACDBE that haveparticipated or attempted to participate in yourconcessions program and divide it by number of allconcession businesses that have participated orattempted to participateFor example:22 ACDBEs divided by 276 businesses 7.9%61
ACDBE Goal: Non-Car RentalExample, cont’d. Using Data from a Disparity Study– Use a percentage figure derived from an applicablestudy Using Goal of Another Recipient– Make adjustments for local area in Step 262
ACDBE - Step 2 Adjustment:Things to Remember Do not mix/divide goods and servicespurchases by gross receipts; and Divide gross receipts by gross receipts orgoods and services by goods and servicesApples to Apples and Oranges to Oranges!63
ACDBE - Step 2 Adjustment to BaseFigure, cont’d. Continuing effects of past discrimination?– Must be based on demonstrable evidence that islogically and directly related to the effect for whichthe adjustment is sought64
ACDBE – Info to Include with OverallGoal Submittal Description of methodology used to establish goal,including base figure and evidence with which itwas calculated, as well as:– adjustments made to base figure and evidence relied onfor adjustments– summary listing of relevant available evidence injurisdiction, and explanation of how you used thatevidence to adjust base figure– projection of portions of overall goal you expect to meetthrough R/N and R/C, respectively65
How the Goal Can Be Met Race-conscious measures must be used whenrace-neutral measures alone are not projectedto be sufficient to meet an overall goal:– Concession-specific goals– Negotiating with potential concessionaire to includeACDBE participation, through direct ownershiparrangements– Other methods that take a competitor’s ability toprovide ACDBE participation into account (priorapproval of FAA required)66
How the Goal Can Be Met If setting concession-specific goals to obtain ACDBEparticipation through direct ownership arrangementwith an ACDBE, calculate goal as a percentage of totalestimated annual gross receipts from the concession. If the goal applies to purchases and/or leases of goodsand services, calculate by dividing estimated dollarvalue of such purchases and/or leases from ACDBEsby total estimated dollar value of all purchases to bemade by the concessionaire.67
How the Goal Can Be Met To be eligible to be awarded the concession,competitors must make good faith efforts to meet thisgoal. A competitor may do so either by obtainingenough ACDBE participation to meet the goal or bydocumenting that it made sufficient good faith effortsto do so. The administrative procedures applicable to contractgoals in part 26, §26.51-53, apply with respect toconcession-specific goals.68
ACDBE Car Rental GoalTrouble Getting Data From Car RentalFirms? Remind them of the enforcement provisions in carrental firm’s contracts Point to current regulations to show car rentalcompanies what is required69
Direct Ownership by ACDBE Airport businesses subject to ACDBE goals (except carrental companies) must make GFE to explore allavailable options to meet goals, to the maximum extentpracticable, through direct ownership arrangements withACDBEs Direct ownership arrangement means a joint venture,partnership, sublease, licensee, franchise, or otherarrangement in which a firm owns and controls aconcession70
ACDBE – Submittal Process No requirement to obtain prior FAAconcurrence with overall goal (i.e., with thenumber itself), BUT– If FAA's review suggests: overall goal has not been correctly calculated, or method for calculating goals is inadequate – FAA may, after consulting with you, adjust youroverall goal or require that you do so– Adjusted overall goal is binding on you71
ACDBE – Submittal Process Need additional time?– Request approval of the FAAAdministrator for an interim goal and/orgoal-setting mechanism. Such amechanism must:(1) Reflect the relative availability of ACDBEsin your local market area to the maximumextent feasible given the data available to you;and(2) Avoid imposing undue burdens onnon-ACDBEs.72
Goal Setting and Implementation Purpose of Overall Goal and ProjectGoal Approaches to Calculate Goal 8 Minimum Requirements Purpose of Overall ACDBE Goal Accountability Requirements73
Accountability Report(Shortfall Requirements)A recipient that does not meet its overallDBE or ACDBE goal in any given yearmust submit a written analysis to theFAA of why the goal was not met andcorrective measures to be taken.74
Accountability Report(Shortfall Requirements) Analyze reasons for difference between overallgoal and awards/commitments in that year Establish specific steps to correct problems inorder to fully meet goal for new fiscal yearTimeframe: By December 29 of respective year(90 days after the end of the fiscal year)75
Accountability Report(Shortfall Requirements) Core 30 Airports must submit analysis and correctiveactions within 90 days of end of fiscal year FAA Approval In Compliance All Other Airports must analyze and preparecorrective action plan but do not have to submit toFAA. Maintain records for three years and makeavailable to FAA, upon request FAA may require modifications to overall goalmethodology: Changes to RC/RN projections oradditional RC/RN measures76
DBE Shortfall Submission Dates:What If Your FY 2014-2016 is 10% GoalFY 2014: Achieved 15% DBE Participation No Shortfall Submission RequiredFY 2015: Achieved 8.7% DBE Participation Shortfall Submission Required and due onDecember 29, 2015FY 2016: Achieved 5.9% DBE Participation Shortfall Submission Required and due onDecember 29, 201677
Drafting a Shortfall Analysis:First, review Uniform Report for accuracy! Shortfall Percentage78
Drafting a Shortfall Analysis: Shortfall Percentage Race-Conscious/Race-Neutral Breakdown79
Drafting a Shortfall Analysis: Shortfall Percentage Race-Conscious/Race-Neutral Breakdown Race-Neutral Measures80
Drafting a Shortfall Analysis: Shortfall Percentage Race-Conscious/Race-Neutral Breakdown Race-Neutral Measures Projects undertaken during the FY81
Drafting a Shortfall Analysis: Shortfall Percentage Race-Conscious/Race-Neutral Breakdown Race-Neutral Measures Projects undertaken during the FY DBE participation on these projects82
Drafting a Shortfall Analysis: Shortfall Percentage Race-Conscious/Race-Neutral Breakdown Race-Neutral Measures Projects undertaken during the FY DBE participation on these projects Reasons for the Shortfall83
Drafting a Corrective Action Plan:Elements Specific Steps to Achieve Goal inUpcoming Fiscal Year Milestones for Implementing these Steps84
Accountability Report(Shortfall Requirements)Recipient is in non-compliance if ANY ofthe following occur: Does not submit analysis and correctiveactions to FAA timely FAA disapproves of analysis or correctiveactions Does not fully implement corrective actionsor FAA’s imposed conditions for acceptance85
The End!86
Q&A87
Federal Aviation Administration-Office of Civil Rightshttp://www.faa.gov/about/office org/headquarters offices/acr/88
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 FAA ap
This work uncovered DBE characteristics nationwide and in Iowa, revealed challenges in offering DBE supportive services, and identified useful supportive services for DBE firms. In summary, the DBE supportive services program provides a wide range of supportive services in various mode
Contract Goal vs. Overall Goal Each recipient sets an overall DBE participation goal To reach the goal, recipients, in part, include DBE subcontracting goals in their Federally-assisted contracts for prime contractor bidders to use good faith efforts to meet. Goals can also be met when DBEs are the successful bidders on a prime contract
Jun 03, 2021 · The consultant must identify the DBE firms with which it intends to subcontract. On the Affirmative Action Certification, include the contract participation percentage of each DBE and list what the DBE will be subcontracted to perform. If the consultant does not meet the DBE goal, the consultan
DBE search engine to match prime contractor quote requests on specific contracts. 1. Maintain current, searchable directory of DBE certified firms on the web. DOT is working on an efficient list serve tool. 2. If the prime did not meet the DBE goal on a proje
Louisiana England Airpark DBE Office EADBE 1616 Arnold Drive, Suite 6, alexandria, LA 71303 England Airpark DBE Program Manager Lynne Eddlemon 318-443-1524 Louisiana New Orleans International Airport NOIA P.O. Box 20007, New Orleans, LA, 70141 DBE Liaison Officer Phil
Car Rentals Goal – Step 1. Base Figure total gross receipts of car rental operations – Do not add to base figure gross receipts of other concessions – If all or most of the goal is to be met through purchases by car rental companies of vehicles or other goods or services from ACDBEs, airport may structure goal entirely in terms of
CBTC Disadvantaged Business Enterprise Design-Build RFQ/P per District's Disadvantaged Business Enterprise (DBE) Program requirements DBE participation goal of 5% Hitachi, committed subcontracting 5.1% to DBEs Office of Civil Rights determined Hatachi met DBE goal commitment set forth in the Contract. 22. _BCBTC
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