FFY 2009 Interim Overall Annual DBE Goal for FTA Funding
CDOT’S Federal Fiscal Year (FFY) 2009 Interim Overall Annual DBE Goal for Federal Transit Administration (FTA) Funding
4.50%
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FFY 2009 Interim Overall Annual DBE Goal for FTA Funding
BACKGROUND
This year CDOT contracted with D. Wilson Consulting Group to perform a new Statewide Disparity Study which is expected to be completed by the end of December 2008. One of the key deliverables in the Disparity Study contract is to provide CDOT with all the necessary information required for establishing an overall annual DBE goal for Federal Fiscal Year 2009 (FFY 2009). The Disparity Study’s overall goal recommendation will follow the goal-setting methodology as outlined in the Federal Regulations (see 49 CFR Part 26). The Study will also provide CDOT with the best and most current data available to help ensure CDOT’s DBE Program continues to be tailored to the unique characteristics present in the rural Colorado transit industry. Due to the fact that the new Disparity Study results will not be available until December 2008; CDOT is submitting an interim overall annual DBE goal for FFY 2009 to FTA to meet the federally-required August 1st deadline. The calculations included in this interim submission are based upon the data available as of July 2008. CDOT is currently working closely with D. Wilson Consulting Group in an aggressive data collection effort covering all federally-funded transit contracting activities. Once the updated transit data is ready in December 2008, CDOT will submit to FTA a revised FFY 2009 overall annual DBE goal based upon the new Disparity Study results. In the meantime, CDOT has established a 4.50% interim overall annual DBE goal based upon the federally approved methodologies and the CDOT data available as of July 2008. After consideration of the issues described in the following sections, FTA is being asked to approve CDOT’s 4.50% interim overall annual goal for FFY 2009 until such time as the new Disparity Study results are available (see Figure 1 below). Figure 1: CDOT FFY 2009 DBE Goal-Setting Timeline JULY 2008 AUGUST 2008 DECEMBER 2008
Assemble data available as of July 2008 and draft recommended FFY 09 interim DBE goal
Submit FFY 09 interim DBE goal recommendation to FTA on August 1st based on data available as of July 2008
Submit revised FFY 09 DBE goal to FTA based on 2008 Disparity Study results
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FFY 2009 Interim Overall Annual DBE Goal for FTA Funding
Methodology Used to Establish Colorado Department of Transportation’s (CDOT) Interim Overall Annual Transit Goal for FFY 2009 FTA Funding
Step 1:
Determine the Base Figure for Relative Availability of Disadvantaged Business Enterprises (DBE)
Table One [Exhibit One] shows the process for Step One. Column One in Table One is a list of Grantees as of July 2008 receiving funding for FFY 2009 (October 1, 2008 through September 30, 2009) for FTA grants Sections 5303, 5304, 5310 (non vehicle capital awards only) and 5311 administered through CDOT. A large percentage (73%) of the grantees on this list are primarily located in outlying areas, which are rural and/or sparsely populated and use their federal funds for operating bus services that serve either senior citizens, persons with disabilities and/or the rural general public. This report does not include Section 5316 and Section 5317, however, CDOT is working with D Wilson Consulting, the consultant tasked with developing the 2008 Disparity Study, to incorporate those funding sources into the Disparity study, which should be concluded in December 2008. Column Two shows the type of funding each grantee received. Column Three shows the beginning of the calculations to determine the base figure for relative availability of DBE owned firms. CDOT used data from the U.S. Census Bureau 2002 Economic Census by NAICS to determine the base figure for relative availability of DBE’s in each provider’s service area. The numbers in column three reflect the overall number of businesses available for grantee use in the grantee’s service/market area according to Census data. The grantee’s service/market area was derived from their 2007 applications for FTA funding assistance. Column Three is a list of businesses grantees could purchase services and/or goods from with FTA funds (depending on the type of funds they received, refer back to column 2) in their service/market area. For 5311 grantees, the list was taken from businesses that would primarily be contacted to help operate a bus service: maintenance service, repair service and materials for vehicle maintenance and technical service. All of these services are considered contracting opportunities under DBE regulations. For 5303 and 5304 grantees, the list of businesses was taken from consulting services across the state and nation, consultants that specialize in transportation and especially transit related consultation services. This information was taken primarily from the American Public Transportation Association’s website. Column Four includes a review of the DBE Unified Certification Program Directory found at: http://dot.state.co.us/App_UCP/ to determine the availability of currently certified DBE firms within the contracting opportunity categories listed above for the listed business. Column Four shows that currently there is a very limited availability of currently certified DBE firms outside of the Denver Metropolitan Area, especially for 5311 funding purposes. Seeking planning consultants for 5303 and
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FFY 2009 Interim Overall Annual DBE Goal for FTA Funding
5304 funds are not as restrictive, as the numbers indicate. Grantees are not limited to their service area when seeking help on a transit project, as 5311 grantees are when seeking assistance in contracting opportunities such as maintenance and repair service. It should be noted, however, that most of the procurement opportunities and contracts available from grantees under the funding provided through the state consists of small dollar amounts. Therefore, although there are numerous DBE firms available for both planning and other services located in the Denver metro and out of state, it has been CDOT’s experience that these firms are not willing to travel or bid on contracts for such small amounts of money. Column 5 reflects the appropriate DBE goal for each grantee relative to service area, based on Column 3 and 4 data. The DBE goal was determined by dividing the number in Column 4, which is the number of DBE certified businesses a grantee could potentially use (modified on a case by case basis, using the methodology described above), by the number in Column 3 , which is the number of overall businesses in service/market area a grantee could use based on the methodology described above. To determine the base figure for relative availability for DBEs for all grantees on the list, the following equation was used: 86 (total) Number of DBE businesses in Service Area Grantees Could Use 1614 (total) Number of Total Businesses in Service Area Grantees Could Use Step 2:
Adjustments and Types of Evidence that Were Considered when Adjusting the Base Figure
= 5.33%
CDOT’s Transit Unit examined all of the evidence available to determine what adjustments were needed to be made to the base figure calculation (Step One) in order to arrive at an overall interim FFY 2009 Goal. The first adjustment was to account for the median volume of work DBE certified firms have performed regarding Sections 5303, 5304, 5310 (non-vehicle capital only) and 5311 FTA funded projects and/or purchases in recent years, which is 3.67%. This number is determined by taking the median of the federal fiscal year transit goals for the last five years:
FFY 2003: (October 1, 2002 to September 30, 2003) = 4.80% FFY 2004: (October 1, 2003 to September 30, 2004) = 2.68% FFY 2005: (October 1, 2004 to September 30, 2005) = 3.67% FFY 2006: (October 1, 2005 to September 30, 2006) = 3.24% FFY 2007 (October 1, 2006 to September 30, 2007) = 3.82% Median = 3.67% Therefore, the estimated current capacity of DBE certified firms to perform work for the list of grantees is 3.67%.
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FFY 2009 Interim Overall Annual DBE Goal for FTA Funding
The Transit Unit takes the median number, along with the number determined through the Step One process: (5.33%) to make the necessary adjustments to determine the overall interim goal for FFY 2009. The equation to determine this adjustment is as follows: Step 1: 3.67% (median past participation) + 5.33% (base figure determined in step one) = 9.0% Step 2: 9.0% / 2 = 4.5% CDOT’s overall Interim DBE goal for Federal transit funds for FFY 2009 is 4.50% Race-Neutral Participation CDOT through its numerous contacts with its grantees (i.e. conferences, site visits, training sessions, etc.) does not have any indication that the grantees place goals on their contracting opportunities. CDOT allows the grantees to follow their individual procurement policies with the exception of inserting FTA mandated clauses. Therefore, CDOT has concluded that DBE participation on any of the FTA funding sources administered by CDOT’s Transit Unit: 5303, 5304, 5310 (non-vehicle capital only), and 5311 will qualify as race-neutral according to the description of “race-neutral participation” found in 49 CFR Part 26. As a result, CDOT anticipates meeting the 4.50% FFY 2009 DBE goal entirely with race-neutral DBE participation. Public Participation: CDOT’s Goal Setting Process The preliminary DBE goal was posted on the DBE Program page of CDOT’s website for several months and emailed again to all firms on the CDOT Bidders Loop during July 2008 (see http://www.dot.state.co.us/EEO/Loop/ ). Public Notices were placed in 13 Colorado publications. CDOT used publications in the Denver metropolitan area as well as publications in other parts of Colorado, including the Western Slope and 4-Corners area: • Denver Post • Rocky Mountain News • Trinidad Chronicle News • Greeley Tribune • Grand Junction Daily Sentinel • Durango Herald • Pueblo Chieftain • Gazette Telegraph • La Voz Hispana de Colorado • Denver Weekly News • Daily Journal • Urban Spectrum • El Seminario
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FFY 2009 Interim Overall Annual DBE Goal for FTA Funding
Orientations: The CDOT Center for Equal Opportunity holds orientation sessions twice a month with new DBE firms, emerging small businesses, and other small businesses on numerous occasions during the year. There are separate orientations for contractors, consultants, and vendors. At these sessions, CDOT Staff discuss with the business representatives the CDOT DBE program, federal regulations, goals, goal setting, CDOT’s procurement process, and the current Disparity Study findings. Grantee Contact: CDOT’s Transit Unit contacted Grantees on the list in Table One twice during the goal setting process to explain the grantee’s role as in making “good faith efforts” to solicit DBE firms and to encourage public comment on the goal setting process. Grantees were provided links to both the DBE Certification List http://www.dot.state.co.us/app_ucp/ and the CDOT’s Bidder’s Loop, http://www.dot.state.co.us/EEO/Loop/ which provides accurate information about DBE and non-DBE firms actively seeking work on contracts. The information from the bidder’s loop helps both the Highway and the Transit programs of CDOT set overall DBE goals. CDOT has not held any formal public hearings in the last year with respect to the setting of DBE goals. However, as part of the 2008 Disparity Study, D Wilson Consulting Group, LLC the firm tasked with developing the study, has held and will hold several public hearings including the following: Denver, Monday, June 23, 2008, Greeley, Thursday, July 17, 2008, and Pueblo, Thursday, August 21, 2008. Other public involvement avenues include upcoming Town hall meetings as well as an online survey. Available through CDOT’s Center fro Equal Opportunity Office website. Conclusion: The CDOT Transit Unit’s FFY 2009 DBE goal for Sections 5303, 5304, 5310 (non-vehicle capital) and 5311 funds received from FTA is 4.50%. When the 2008 Disparity Study is concluded (scheduled for December 2008) CDOT will be submitting a revised FFY 2009 DBE goal to FTA.
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FFY 2009 Interim Overall Annual DBE Goal for FTA Funding
EXHIBIT 1: TABLE ONE 1 2
3
4
5
FFY 2008/2009 Grantees Archuleta County Arrow/Black Hills Stagelines Black Hawk Transportation Authority Burlington Trailways CDOT (State Administration) City of Colorado Springs City of Durango City of Glenwood Springs City of La Junta City of Steamboat Springs Colorado Association of Transit Agencies Colorado Mountain College Denver Regional Council of Governments Douglas County East Central COG Larimer County Health and Human Services Mesa County MPO Montezuma County North Front Range M PO Northeast CALG Northwest Colorado COG Pikes Peak Area Council of Governments Prowers County Pueblo Area Council of Governments Roaring Fork Transportation Authority Seniors' Resource Center Snowmass Village South Central COG Southern Ute Community Action Programs Special Transit SRDA - Pueblo Summit County Town of Breckenridge Town of Castle Rock Town of Crested Butte Upper Arkansas Area COG Weld County
Sam # of ple Businesses in # of DBE Certified Census/#of Service A rea Businesses in DBE Relative Businesses in Grantee Could Service Area Grantee Availability By Area rea Use ** Could Use Type of Funding Service A 315 4 0 5311 0.00 1,358 32 1 5311 0.03 60 7 0 5311 0.00 1,358 32 1 5311 0.03 105,280 152 18 5311 5310 5304 0.12 8,990 102 5 5304 0.05 1,041 17 0 5311 0.00 603 40 3 5311 5304 0.08 187 6 0 5311 5310 non vehicle 0.00 770 10 1 5311 0.10 105,280 175 14 5311 RTAP 0.08 1,370 25 0 5310 non vehicle 0.00 60,331 152 8 5303 0.05 3,718 78 4 5304 0.05 561 16 0 5311 0.00 6,329 106 5 5311 5304 0.05 2,800 66 5 0.08 5311 5303 5304 505 9 0 5311 0.00 9,197 40 5 5303 5304 0.13 32 1 1,358 0.03 5311 5310 non vehicle 5,215 25 2 5304 0.08 11,457 102 5 5303 0.05 296 11 0 5311 0.00 2,377 62 3 5303 0.05 4,552 20 2 5311 0.10 16,202 107 2 5311 0.02 62 1 0 5311 0.00 409 12 0 5311 5310 non vehicle 0.00 1,557 21 0 5311 0.00 9,320 26 1 5311 0.04 2,377 30 0 5311 0.00 1,395 6 0 5311 0.00 1,395 2 0 5311 0.00 628 14 0 5311 5304 0.00 885 13 0 5311 0.00 1,791 23 0 5311 0.00 38 0 2,868 0.00 5311
1614
** listing of businesses based on Contracting Opportunities for each grant: 5311 = M aintenance and Repair Services, 5303 and 5304 = Planning, Consulting Services.
86
5.33%
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