TO: Mayor and Members of City Council
THRU: Jay Reinstein, Assistant City Manager
FROM: Randy Hume, Transit Director
DATE: June 11, 2018
RE:
Title
Transit 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:
The City is the recipient of federal grant funds from Federal Transit Administration (FTA) in support of transit capital and operating projects. As a condition of these grants, the Transit Department is required to establish and maintain 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. That program is to ensure that DBEs, as defined in Part 26, have an equal opportunity to receive and participate in DOT-assisted contracts.
FTA also requires that grantees establish a goal every three (3) years for DBE participation for contracting opportunities that use FTA grant funds. Transit’s new goal will cover the next three (3) federal fiscal years beginning October 1, 2018. Transit’s DBE program differs from the City’s Small Local Business Enterprise (SLBE) program in that only companies certified by the Unified Certification Program administered by NCDOT can count toward DBE goal attainment. In addition, FTA does not allow grantees to use any local preference in the award of contracts. A summary of the program differences is attached.
Transit’s new goal must be submitted to FTA for review and approval no later than August 1, 2018. Transit’s analysis of FTA funded contract opportunities indicates the goal for the next three years should be 5.99% and projects that will be achieved by 1.08% Race Conscious and 4.91% Race Neutral methods.
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 market place outside the DBE Program.
Transit’s Civil Rights Program Analyst, 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 August 1, 2018 for the upcoming three federal fiscal years. The DBE goal is not a quota. The goal for the past three years has been 6.23%. Over the past three years Transit has achieved the following DBE participation: 2015 - 5.9%; 2016 - 2.9%; and 2017 - 6.7%. Please note these participation numbers did not reflect the 11% DBE participation in the transit center construction project.
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 2016 through 2018 is 5.99% and is projected to be accomplished as 1.08% Race Conscious and 4.91% 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:
Approve a resolution approving the Transit DBE Program update and the DBE goal for submission to FTA; or
Provide direction to staff with regards to program changes.
Recommended Action:
Approve a resolution approving the Transit DBE Program update and the DBE goal for submission to FTA
Attachments:
Comparison of DBE and SLBE Programs
DBE Program Update
Resolution