TO: Mayor and Members of City Council
THRU: Kelly Olivera, Assistant City Manager
FROM: Tyffany L. Neal, MPA, Transit Director
DATE: August 26, 2024
RE:
Title
Approval of a Resolution Authorizing Fayetteville Area System of Transit’s Disadvantaged Business Enterprise (DBE) Program Update and DBE Goal
end
COUNCIL DISTRICT(S):
Council District(s)
All
b
Relationship To Strategic Plan:
Goal 4: Desirable Place to Live, Work and Recreate
Objective D: To develop and maintain public transportation investments with high quality transit and airport services
Executive Summary:
City Council is asked to approve a resolution authorizing the Fayetteville Area System of Transit (FAST) to update and submit the 2024-2027 Disadvantaged Business Enterprise (DBE) program and goal to the Federal Transit Administration.
As a condition of Federal grant funding, FAST is required to establish and maintain a Disadvantaged Business Enterprise (DBE) program that is compliant with Federal requirements, as well as establish DBE participation goals every three years for contracting opportunities that use FTA funds.
Background:
The City of Fayetteville (City) has established a Disadvantaged Business Enterprise (DBE) program in accordance with regulations of the U.S. Department of Transportation (DOT), in compliance with 49 C.F.R. Part 26. The City receives federal financial assistance from the Department of Transportation, and as a condition of receiving this assistance, the City has signed an assurance that it will comply with the DBE program requirements.
City of Fayetteville has established a policy that ensures DBEs, as defined in Part 26, have an equal opportunity to receive and participate in DOT-assisted contracts. The DBE program is:
1. To ensure nondiscrimination in the award and administration of DOT-assisted contracts;
2. To create a level playing field on which DBEs can compete fairly for DOT-assisted contracts;
3. To ensure that the DBE Program is narrowly tailored in accordance with applicable law;
4. To ensure that only firms that fully meet 49 C.F.R. Part 26 eligibility standards are permitted to participate as DBEs;
5. To help to remove barriers to the participation of DBEs in DOT assisted contracts; and
6. To assist the development of firms that can compete successfully in the marketplace outside the DBE Program.
Transit’s Business Manager has been designated as the Disadvantaged Business Enterprise Liaison Officer (DBELO). DBEs are certified under a Unified Certification Program (UCP) administered by NCDOT and only such certified DBEs are eligible to be counted toward DBE participation and toward attainment of the goal set by the City.
Fayetteville must submit a new goal by September 15, 2024, for the upcoming three federal fiscal years. The DBE goal is not a quota. The goal for the past three years has been 2.72%.
Factors considered in setting the goal include:
• Projected contract opportunities for next three years with FTA grants. Purchases of buses and vans are not included as these manufacturers report directly to FTA;
• Type of work to be contracted (NAICS codes);
• Availability of contractors to perform the types of work identified; and
• Availability of DBE contractors in “market area” (attached map).
The overall goal is projected to be achieved using both “Race Conscious”, where individual contract goals are set, and “Race Neutral”, where participation occurs without specific contract goals, methods. When contract goals are set, bidders/proposers are required to demonstrate and document their “good faith efforts” to meet the goal.
The proposed goal for federal fiscal years 2025 through 2027 is 1.42% and is projected to be accomplished as 0.00% Race Conscious and 1.42% Race Neutral.
Issues/Analysis:
Only DBEs that are certified by NCDOT as part of the Unified Certification Program qualify for purposes of meeting the Transit’s DBE goal. There are other minority and small business programs even within NCDOT that often confuse contractors. Transit will continue outreach efforts with potential contractors to better communicate contracting opportunities for DBEs as well as how to become DBE certified. Transit has hosted numerous small business training workshops in cooperation with the USDOT’s Small Business Transportation Resource Center to promote the DBE program.
Budget Impact:
Program administration and outreach are eligible for grant reimbursement and included in Transit’s budget.
Options:
1. Approve the attached resolution authorizing the Transit DBE Program update and the DBE goal for submission to FTA.
2. Do not approve the attached resolution and provide direction to staff regarding program changes.
Recommended Action:
Staff recommends that Council move to approve the resolution authorizing the Transit DBE Program update and the DBE goal for submission to FTA.
Attachments:
DBE Program Update
Resolution