MASS TRANSPORTATION AUTHORITY FLINT, MI DISADVANTAGE ...
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1 MASS TRANSPORTATION AUTHORITY FLINT, MI DISADVANTAGE BUSINESS ENTERPRISE PROGRAM (DBE) GOAL SETTING FOR FY 2018-2020 I. Policy Statement The Mass Transportation Authority submits its triennial DBE goal to the Federal Transit Administration (FTA) on August 1 of the specified year. The overall goal submission includes: the goal (including the breakout of estimated race neutral and race conscious participation, as appropriate); a copy of the methodology, worksheets, etc. used to develop the goal; a summary of information and comments received during the public participation process and our responses; and proof of publication of the goal in media outlets. The methodology used to set the DBE participation goal is: (1) Determine types of projects and dollar value of expected projects based on the MTA Capital Program; (2) Determine the availability of contractors in the MTA’s operating area, including its regional service area, to perform work based on NAICS codes, using data from the Census Bureau’s County Business Pattern; (3) Determine the availability of DBE contractors in the same operating area used in step (2) using the MUCP Directory as the source; (4) Determine the relative availability of DBE contractors in proportion to all contractors; (5) Calculate the weighted goal by multiplying the proportion of total expenditure by the relative availability of DBE contractors. (6) A notice of public comment was filed in the Flint Journal inviting comments for a period of 30 days. The entire methodology and calculations can be found in Attachment B for the three-year period FY 2018-2020. The FY 2018-2020 DBE goal for the Mass Transportation Authority is 1.5% participation. The goal will be pursued through .75% race neutral and .75% through race conscious measures. The race conscious portion of the total DBE goal will be achieved through contract goals. The race neutral DBE goal will be determined by the relative availability of DBE contractors. Not every contract is suited to a contract goal, and the size of contract goals will be adapted to the circumstances of each contract.
Transcript of MASS TRANSPORTATION AUTHORITY FLINT, MI DISADVANTAGE ...
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MASSTRANSPORTATIONAUTHORITYFLINT,MI
DISADVANTAGEBUSINESSENTERPRISEPROGRAM(DBE)GOALSETTINGFORFY2018-2020
I. PolicyStatement
The Mass Transportation Authority submits its triennial DBE goal to the Federal TransitAdministration(FTA)onAugust1ofthespecifiedyear. Theoverallgoalsubmission includes:thegoal(includingthebreakoutofestimatedraceneutralandraceconsciousparticipation,asappropriate);acopyofthemethodology,worksheets,etc.usedtodevelopthegoal;asummaryof information and comments received during the public participation process and ourresponses;andproofofpublicationofthegoalinmediaoutlets.
ThemethodologyusedtosettheDBEparticipationgoalis:
(1) DeterminetypesofprojectsanddollarvalueofexpectedprojectsbasedontheMTACapitalProgram;
(2) Determine theavailabilityofcontractors in theMTA’soperatingarea, including itsregionalservicearea, toperformworkbasedonNAICScodes,usingdata fromtheCensusBureau’sCountyBusinessPattern;
(3) Determine the availability of DBE contractors in the same operating area used instep(2)usingtheMUCPDirectoryasthesource;
(4) Determine the relative availability of DBE contractors in proportion to allcontractors;
(5) Calculate theweighted goal bymultiplying the proportion of total expenditure bytherelativeavailabilityofDBEcontractors.
(6) A notice of public commentwas filed in the Flint Journal inviting comments for aperiodof30days.
The entire methodology and calculations can be found in Attachment B for the three-yearperiodFY2018-2020.TheFY2018-2020DBEgoalfortheMassTransportationAuthorityis1.5%participation. The goal will be pursued through .75% race neutral and .75% through raceconsciousmeasures.
TheraceconsciousportionofthetotalDBEgoalwillbeachievedthroughcontractgoals.TheraceneutralDBEgoalwillbedeterminedby the relativeavailabilityofDBEcontractors. Noteverycontractissuitedtoacontractgoal,andthesizeofcontractgoalswillbeadaptedtothecircumstancesofeachcontract.
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MASSTRANSPORTATIONAUTHORITYFLINT,MI
DISADVANTAGEDBUSINESSENTERPRISE(DBE)PROGRAMANDGOALFORFY2018-2020
Contents
I. PolicyStatement 1II. DefinitionsofTerms 3III. Non-Discrimination 3IV. RecordKeepingandReporting 3V. Assurances 3VI. LiaisonOfficer 4VII. DBEFinancialInstitutions 5VIII. DBEDirectory 5IX. Overconcentration 5X. FosteringSmallBusinessParticipation 5XI. MonitoringandEnforcement 6XII. GoalSettingForFY2018-2020 6XIII. GoodFaithEfforts 7XIV. CountingDBEParticipation 7XV. Certification 8XVI. DBEParticipationinMTAProcurements 8
Attachments
A. CalculationofFY2018-2020 10B. PublicNotice 14
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II. DefinitionofTerms
Thedefinitionsoftermscontainedin49CFRPart26.5shallbeusedasdefinitionsintheMTADBEprogramandareherebyincorporatedbyreference.
III. NonDescrimination
MTAwill not exclude any person from participating in, deny any person the benefits of, orotherwisediscriminateagainstanyone inconnectionwiththeawardandperformanceofanycontractcoveredby49CFRPart26,onthebasisofrace,color,sex,nationaloriginordisability.
In administering its DBE program, MTA will not, directly or through contractual or otherarrangements, use criteriaormethodsof administration thathave theeffect of defeatingorsubstantially impairing accomplishment of the objectives of the program with respect toindividualsofaparticularrace,color,sex,nationalorigin,ordisability.
IV. RecordKeepingandReporting
MTAwillmeet the requirements of 49 CFR Part 26.11 tomaintain records and prepare andsubmit the Uniform Report of DBE Awards or Commitments and Payments at the intervalsstatedontheform.ThesereportswillreflectpaymentsactuallymadetoDBE’sonDOTassistedcontracts.
V. Assurances
(a) Each financial assistance agreement MTA signs with U.S. DOT includes the followingassurance:
The recipient shall not discriminate on the basis of race, color, national origin, or sex in theaward and performance of any DOT assisted contract or in the administration of its DBEprogram or the requirements of 49 CFR Part 26. The recipient shall take all necessary andreasonable steps under 49 CFR Part 26 to ensure non-discrimination in the award andadministrationofDOTassistedcontracts. TherecipientsDBEprogram,asrequiredby49CFRPart 26 and as approved by DOT, is incorporated by reference in this agreement.Implementationofthisprogramisalegalobligationandfailuretocarryoutitstermsshallbetreatedasaviolationofthisagreement.Uponnotificationtotherecipientofitsfailuretocarryoutitsapprovedprogram,theDepartmentmayimposesanctionsasprovidedforunderPart26andmay,inappropriatecases,referthematterforenforcementunder18U.S.C.1001and/ortheProgramFraudCivilRemediesActof1986(31U.S.C.3801etseq.).
(b) EachcontractMTAsignswithacontractor(andeachsubcontracttheprimecontractorsignswithasubcontractor)includesthefollowingassurance:
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Thecontractor,sub-recipientorsubcontractorshallnotdiscriminateonthebasisofrace,color,nationalorigin,sexordisabilityintheperformanceofacontract.Thecontractorshallcarryoutapplicable requirements of 49 CFR Part 26 in the award and administration of DOT assistedcontracts.Failurebythecontractortocarryouttheserequirementsisamaterialbreachofthiscontractorsuchotherremedyastherecipientdeemsappropriate.
Each contractMTA signswith a contractor (andeach subcontract theprime contractor signswithasubcontractor) includesaclause requiringprimecontractors topaysubcontractors forsatisfactoryperformanceoftheircontractsnolaterthan30daysfromreceiptofeachpaymentMTAmakestotheprimecontractor.
VI. DBELiaisonOfficer(DBELO)
The MTA DBE Liaison Officer (DBELO) shall have direct, independent access to the GeneralManagerconcerningDBEprogrammatters.TheliaisonofficershallworkwiththeProcurementstafftoimplementallaspectsoftheMTA’sDBEprogram.TheMTADBELiaisonOfficeris:
MaryAnnKetelsGrantsAdministratorMassTransportationAuthority1401S.DortHwyFlint,MI48503810780-8804mketels@mtaflint.orgTheDBELOdutiesandresponsibilitiesincludethefollowing:
1. GathersandreportsstatisticaldataandotherinformationasrequiredbyDOT.2. WorkswithalldepartmentstosetDBEgoals.3. IdentifiescontractsandprocurementssothatDBEgoalsareincludedinsolicitations
(both race neutralmethods and contract specific goals attainment) and identifieswaystoimproveprogress.
4. AnalyzesMTA’sprogresstowardgoalattainment.5. Participatesinpre-bidmeetings.6. Reviews documentation provided contractors to ensure compliancewith this DBE
programand49CFRPart26.7. ParticipatesinDBEtrainingseminars.8. ActsasliaisontotheMichiganUnifiedCertificationProgram(MUCP).9. Provides outreach to DBE’s and community organizations to advise them or
opportunities.
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TheProcurementstaffresponsibilitiesinclude:
1. Ensures bid notices and requests for proposals are available to DBE’s in a timelymanner.
2. Identifiescontractsappropriateforasmallbusinesssetasideandissuesinvitationstobidtosmallbusinesses,includingDBE’sthatmeetSBA8acriteria.
3. IdentifiescontractsandprocurementssotheDBEgoalsareincludedinsolicitations(both race neutralmethods and contract specific goals attainment) and identifieswaystoimproveprogress.
4. ProvidesDBE’swithinformationandassistanceinpreparingbids,obtainingbonding,andinsurance.
5. Requires contractors provide documentation of good faith efforts to retain DBEsubcontractors, pay records, invoices and any other records necessary to verifycompliancewithDBErequirements.
VII. DBEFinancialInstitutions
MTAhas investigate the availability of financial institutions owned and controlledby sociallyandeconomicallydisadvantagedindividualsintheFlintandGeneseeCountycommunityandtodatehavefoundnone.
VIII. DBEDirectory
MTAutilizes thedirectorymaintainedby theMichiganUnifiedCertificationProgram(MUCP),for all firms certified by the MUCP (including those certified by other states.) The MUCPDirectory contains the information required by 26.31 and is available to the public via theinternetatwww.mi.gov.Thedirectoryisavailableinprintat:
MichiganDepartmentofTransportation425W.OttawaP.O.Box30050Lansing,MI48909IX. OverconcentrationMTAresearchestheavailabilityofDBEformstoperformthetypesofworkfundedthroughDOTcontractswhensettingtheDBEgoal.ThereisnooverconcentrationofDBEfirmsinanyoftheNAICScodescorrespondingtograntfundedprocurementsanticipatedoverthenextthreeyearperiod2018-2020.
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X. FosteringSmallBusinessParticipationMTA’sDBEProgramincludesanelementtofacilitatecompetitionbysmallbusinessconcerns,takingallreasonablestepstoeliminateobstaclestotheirparticipation, includingunnecessaryand unjustified bundling of contract requirements that may preclude small businessparticipationinprocurementsasprimecontractorsorsubcontractors.ToimplementthisprogramelementMTAwillutilizethefollowingstrategies:
(1) Establisharaceneutralsmallbusinessset-asideforprimecontractsundertheamountof$25,000.
(2) Inmulti-year design-build contracts or other large contracts, requiring bidders on theprimecontracttospecifyelementsofthecontractorspecificsubcontractsthatareofasizethatsmallbusinesses,includingDBE’s,canreasonablyperform.
(3) Identifyingalternativeacquisition strategiesand structuringprocurements to facilitatetheabilityofconsortiaorjointventuresconsistingofsmallbusinesses,includingDBE’s,tocompeteforandperformprimecontracts.
(4) EnsuringthatareasonablenumberofprimecontractsareofasizethatsmallbusinessesincludingDBE’scanreasonablyperform.
XI. MonitoringandEnforcement
MTAwillmonitorandenforcetheappropriateuseofcertifiedDBEs,includingbutnotlimitedtodetermination of good faith efforts, ensuring appropriate DBE certification, verifying DBEsubcontractors,subcontractorworkperformance,andtimelypayofsubcontractors.
XII. GoalSettingforFY2018-2020
ThemethodologyusedtosetaDBEparticipationgoalis:
(1) Determine typesofprojectsanddollarvalueofexpectedprojectsbasedon theMTAcapitalprogram;(2) Determine the availability of contractors in the MTA operating area, including itsregionalservicearea,toperformworkbasedonNAICScodes,usingdatafromtheCensusBureau’sCountyBusinessPatterns;(3) DeterminetheavailabilityofDBEcontractors inthesameoperatingareausedinstep2,usingtheMUCPDirectoryasthesource;(4)DeterminetheavailabilityofDBEcontractorsinproportiontoallcontractors;(5)CalculatetheweightedgoalbymultiplyingtheproportionoftotalexpendituresbytherelativeavailabilityofDBEcontractors.
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The entire methodology and calculations can be found in Attachment B for the three yearperiod, FY 2018-2020. The FY 2018-2020Aspirational DBE goal for theMass TransportationAuthority is 1.5% participation. The goal will be pursued through .75% race neutralparticipationand.75%throughraceconsciousmeasures.Contractgoalswillbeused toachieve the raceconsciousportionof the total goal. Contractgoals will be established only for those DOT assisted contracts that have subcontractingpossibilities. We need not establish a contract goal for every contract, and the size of thecontractgoalswillbeadaptedtothecircumstancesofeachcontract.XIII. GoodFaithEffortsWhenMTAestablishesaDBEcontactgoal,thecontractwillonlybeawardedtoabidder/offerwhomakes good faith efforts tomeet it. MTAwill determine that a bidder/offer hasmadegoodfaitheffortsifthebidder/offerdoeseitherofthefollowing: (1)DocumentsthatithasobtainedenoughDBEparticipationtomeetthegoal;or
(2)Documentsthatitmadeadequategoodfaitheffortstomeetthegoal,eventhoughitdidnotsucceedinobtainingenoughDBEparticipationtodoso.
Inprocurementsforwhichacontractgoalhasbeenestablished,MTAwillrequirethefollowing:
• ThenamesandaddressesofDBEfirmsthatwillparticipateinthecontract;• AdescriptionoftheworkthateachDBEwillperform;• ThedollaramountoftheparticipationofeachDBEfirmparticipating;• Written documentation of the bidder/offer commitment to use a DBE subcontractor
whoseparticipationitsubmitstomeetacontractgoal;• WrittenconfirmationfromtheDBEthatitisparticipatinginthecontractasprovidedin
theprimecontractor’scommitment;and• If the contract goal is not met, evidence of good faith efforts. MTA will determine
whether the documentation of good faith efforts satisfies the guidance found inAttachmentAof49CFRPart26.
XIV. CountingDBEParticipation
MTAwillcountDBEparticipationtowardoverallandcontractaspirationalgoalsasprovidedin49CFR,Section26.55:
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OnlytheworkactuallyperformedbyaDBEwillbecountedtowardtheDBEgoal. Thecostofsupplies and materials obtained by the DBE or equipment leased (except from the primecontractororitsaffiliate)mayalsobecounted.
ExpendituresmayonlybecountedfromaDBEmanufacturer,andonhundredpercentofthecostwillbecounted. If thematerialsandsuppliesarepurchased fromaDBE regulardealer,sixtypercentofthecostwillbecounted.
DBEachievementwillnotbecountedtowardtheoverallgoaluntiltheDBEhasbeenpaid.TheMTA will track the participation of DBEs in goal specific contracts separately from theparticipationofDBEsthatareconsideredraceneutral.Additionally,ifcertificationisremovedduringtheperformanceofthecontract,theMTAwillnotcounttheportionofDBEparticipationthatisachievedaftercertificationoftheDBEhasbeenremoved.
XV. Certification
MTAisaparticipantintheMichiganUnifiedCertificationProgram(MUCP).TheMUCPmakesall certification decisions on behalf of all DOT recipients in the state with respect toparticipationintheDOTDBEprogram.AllobligationsoftheMTAwithrespecttocertificationandnon-discriminationarecarriedoutbyMUCP.TheMTAensuresthatonlyfirmscertifiedaseligibleDBEsbytheMUCParecountedasparticipantsintheMTADBEprogram.
XVI. DBEParticipationinMTAProcurementsFY2015 <1%FY2016 <1%FY2017 <1%Average DBE participation in past procurements is less than 1%. This experience plus theweightedgoaloflessthan1%indicatethatraceneutralmeasuresarenotsufficienttoattractDBEparticipation.Therefore,raceconsciousmeasureswillberequired.MTAwillsetcontractgoalsbasedonthenatureoftheprocurementandavailabilityofDBEbusinessestorespondtoMTAsolicitations.MTA has long struggled with attracting DBE vendors to participate in MTA procurements.ThereareveryfewDBEbusinessesintheimmediateareawhereserviceisprovided.MostDBECertifiedContractorsarelocatedintheDetroitarea,andarenotwillingtotraveltoFlint,andGeneseeCounty,MI. MTAalsonotes thatmanyDBEbusinessownershavesmallbusinessesanddonothavethecapacitytorespondtolargebidprojects.
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In an effort to attractmore DBE Certified Contractors,MTA held an information session onbecomingaDBECertifiedContractor.Whilethesessionwaswellattendedbyapproximately35participants, only three participants followed through with the certification process. It hasbeenMTA’sexperience that themajorityofDBEbusinessownersare reluctant toopentheirbooksandbusinessestoscrutinybytheMichiganDepartmentofTransportationoranyotheroutsider for thepurposesof certification. Theaccompanyingpaperwork for certification isadaunting project for DBE Contractors, and many decline to even begin the process ofcertification.FY 2018-2020 DBE Overall Goal for the Mass Transportation Authority will be 1.5%. MTAestimates that .75%will be obtained from race neutral participation and .75% through raceconsciousmeasures.TheMTApostedapubliccommentnoticeintheFlintJournalindicatingtheMTAFY2018-2020DBE Goal and inviting public comment for a period of 30 days. MTA did not receive anycommentsfromthepublic.A copy of MTA’s FY 2018-2020 DBE goal will be sent to the Michigan Minority BusinessDevelopmentCouncilandthelocalChamberofCommerce.
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AttachmentA:
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