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 Submit FFY 09 Submit revised
available as of interim DBE goal FFY 09 DBE
July 2008 and recommendation goal to FTA
draft to FTA on August based on 2008
recommended 1st based on data Disparity Study
FFY 09 interim available as of results
DBE goal July 2008
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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 = 5.33%
Step 2:
Adjustments and Types of Evidence that Were Considered when Adjusting the Base Figure
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
ple
Sam # of
Businesses in # of DBE Certified
Census/#of Service Area Businesses in DBE Relative
Businesses in Grantee Could Service Area Grantee Availability By
FFY 2008/2009 Grantees Type of Funding Service A rea Use ** Could Use Area
Archuleta County 5311 315 4 0 0.00
Arrow/Black Hills Stagelines 5311 1,358 32 1 0.03
Black Hawk Transportation Authority 5311 60 7 0 0.00
Burlington Trailways 5311 1,358 32 1 0.03
CDOT (State Administration) 5311 5310 5304 105,280 152 18 0.12
City of Colorado Springs 5304 8,990 102 5 0.05
City of Durango 5311 1,041 17 0 0.00
City of Glenwood Springs 5311 5304 603 40 3 0.08
City of La Junta 5311 5310 non vehicle 187 6 0 0.00
City of Steamboat Springs 5311 770 10 1 0.10
Colorado Association of Transit Agencies 5311 RTAP 105,280 175 14 0.08
Colorado Mountain College 5310 non vehicle 1,370 25 0 0.00
Denver Regional Council of Governments 5303 60,331 152 8 0.05
Douglas County 5304 3,718 78 4 0.05
East Central COG 5311 561 16 0 0.00
Larimer County Health and Human Services 5311 5304 6,329 106 5 0.05
Mesa County MPO 5311 5303 5304 2,800 66 5 0.08
Montezuma County 5311 505 9 0 0.00
North Front Range M PO 5303 5304 9,197 40 5 0.13
Northeast CALG 5311 5310 non vehicle 1,358 32 1 0.03
Northwest Colorado COG 5304 5,215 25 2 0.08
Pikes Peak Area Council of Governments 5303 11,457 102 5 0.05
Prowers County 5311 296 11 0 0.00
Pueblo Area Council of Governments 5303 2,377 62 3 0.05
Roaring Fork Transportation Authority 5311 4,552 20 2 0.10
Seniors' Resource Center 5311 16,202 107 2 0.02
Snowmass Village 5311 62 1 0 0.00
South Central COG 5311 5310 non vehicle 409 12 0 0.00
Southern Ute Community Action Programs 5311 1,557 21 0 0.00
Special Transit 5311 9,320 26 1 0.04
SRDA - Pueblo 5311 2,377 30 0 0.00
Summit County 5311 1,395 6 0 0.00
Town of Breckenridge 5311 1,395 2 0 0.00
Town of Castle Rock 5311 5304 628 14 0 0.00
Town of Crested Butte 5311 885 13 0 0.00
Upper Arkansas Area COG 5311 1,791 23 0 0.00
Weld County 5311 2,868 38 0 0.00
1614 86 5.33%
** listing of businesses based on Contracting Opportunities for each grant: 5311 = Maintenance and Repair Services,
5303 and 5304 = Planning, Consulting Services.
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