DBE GOAL and METHODOLOGY FEDERAL FISCAL YEARS

Transcription

1 DBE GOAL and METHODOLOGY FEDERAL FISCAL YEARS August 1, 2016 Rev. November 18, 2016

2 I. SPECIFIC RGRTA DBE PARTICIPATION GOAL The Rochester Genesee Regional Transportation Authority ( RGRTA ), in accordance with regulations promulgated by the United States Department of Transportation ( USDOT ) at 49 C.F.R. Part 26, has proposed a goal of awarding 4.48% of the value of its federally-funded contracts to Disadvantaged Business Enterprises ( DBEs ) during Federal Fiscal Years ( FFY ) , exclusive of FTA funds to be used for the purchase of transit vehicles and for the labor costs associated with preventative maintenance of RTS Monroe and RTS Access vehicles. This goal is based upon RGRTA s projects and the relative availability of ready, willing and able DBEs in our local market (to the maximum extent feasible, given the data available to RGRTA at this time). The calculation of the goal is subject to revision, based on any verification and correction of the data by FTA, comments received from FTA or the public, changes in circumstances, or any other relevant information. In addition, since this is a three-year goal, if there is a significant change in expenditure patterns, a revision to the goal will be requested from FTA. RGRTA expects to receive approximately $29,221,822 in federal assistance in FFY The amount available for application to federally-funded or federally-assisted contracts (which excludes bus purchases and preventative maintenance) is projected to be $8,296,317. See Attachment A: Rochester Genesee Regional Transportation Authority Federal Funding Availability for DBE Contracts; Three-Year Goal, All funding references include New York State and Local Share. The RGRTA proposed goal of 4.48% means that RGRTA has a goal of awarding approximately $371,675 in FTA-funded contracts to DBE firms during the 2017 Federal Fiscal Year. The Authority considers this goal to be realistic in light of the types of projects being funded and the reduced scope of construction projects being undertaken during FFY Although a decrease from prior year goals, RGRTA remains committed to engaging DBE firms in its federally-assisted contracts. II. METHODOLOGY According to CFR 49, Part 26, FTA grantees have several methods to choose from in calculating their overall DBE Goals. The RGRTA has chosen to use the method outlined in Section (1), Use DBE Directories and Census Bureau Data. This method employs DBE Directories and Census Bureau Data to determine the number of willing and able DBEs in our market, divided by total number of all businesses in our market. The resulting numerical figure represents the relative availability of DBEs in our market. The following is a summary of how RGRTA used this method to calculate the proposed 4.48% DBE goal. Determination of Relative Availability of DBE Firms (Base Figure Calculation) The base figure is intended to be a measurement of the relative availability of ready and willing DBE businesses available to compete for the types of DOT-assisted contracts 2 P age

3 RGRTA intends to let in the upcoming three-year period. The base figure for this period s goal calculation was computed using Example 1 provided in Section of the CFR. The base figure is calculated by dividing the number of available, willing, and able DBEs by the number of all available firms. The number of available, willing and able DBEs was calculated using the number of DBEs listed in the New York State Unified Certification Program DBE Directory. In an effort to further broaden our scope of research regarding the relative availability of DBEs and potential DBEs, we have supplemented the number of firms in the NYSUCP DBE Directory with businesses included in the Empire State Development (ESD) Minority and Women Business Enterprise (M/WBE) Directory. The ESD M/WBE Directory is used for vendor certification in the New York State M/WBE Program and is a good source for identifying potential DBE firms. This strategy of supplementing the NYSUCP DBE Directory is approved in the USDOT Tips for Goal-Setting in the Disadvantaged Business Enterprise (DBE) Program as a means of supplementing the number of firms included in the numerator of the base calculation. The DBEs and M/WBEs selected for inclusion in this period s goal calculation are those located within the Genesee-Finger Lakes (G-FL) Region geographical area, as well as several counties located to the east of the G-FL Region. In prior years, RGRTA has used counties located solely within the G-FL region to develop our base figure. In an effort to develop a more realistic determination of the relative availability of DBE firms to work on RGRTA contracts, in FFY 2004, we expanded our focus to include counties from our eastern and western neighbors, the cities of Syracuse and Buffalo, New York. This geographical area is consistent with the location of vendors that typically bid on comparable RGRTA projects. Therefore, based on a review of historical vendor participation in our procurements, we believe it is a realistic assumption that firms from these geographical areas would choose to compete for RGRTA contracts. The DBEs selected for inclusion in the goal calculation are located in the following counties: TABLE 1: COUNTIES INCLUDED IN RGRTA DBE GOAL CALCULATION Genesee-Finger Lakes Syracuse Genesee Seneca Cayuga Livingston Wayne Onondaga Monroe Wyoming Oswego Ontario Yates Orleans 3 P age

4 Directory The directories reviewed by our DBE Liaison Officer are as follows: Total # of Firms Pre-Fab Construction TABLE 2: SOURCES FOR RGRTA DBE GOAL CALCULATION Poured Concrete Construction Other than Pre- Fab/ Poured Concrete Professional Services Non- Residential Real Estate Leasing IT & Comp uter Antenna Mfg. NYSUCP DBE Directory Empire State Development (ESD) M/WBE Directory TOTAL: 107 Detail of NAICS Categories by project is available in Attachment D: Proposed Federally-Funded Projects FFY Subcontracting Opportunities. Security Services Based on these sources, the potential number of ready, willing, and able DBEs and M/WBEs within our market region is 107. The number of all available firms is obtained from the Census Bureau s County Business Pattern data using the North American Industrial Classification System (NAICS) codes. The number of all available firms includes majority-owned, minority-owned, womenowned, and DBE prime contractors and consultants, sub-contractors and sub-consultants. RGRTA and its affiliated agencies will let federally-assisted contracts involving work in the North American Industrial Classification System codes outlined below during federal fiscal year Projects anticipated for FFY 2018 are expected to utilize a similar vendor pool composition. Construction, professional services, and IT contracts are not anticipated for FFY To obtain the number of all available firms, we included NAICS codes for contractors/ consultants located in the counties outlined in Table 1: Counties Included in RGRTA DBE Goal Calculation. The following table outlines the number of companies listed in the U.S. Census Bureau s County Business Patterns database, under the applicable NAICS Codes. Table 3: Firms in Market, NAICS Codes, US Census Bureau 2014, Business Patterns County Pre-Fab Construction Poured Concrete Construction Other than Pre- Fab/ Poured Concrete Professional Services Non- Residential Real Estate Leasing IT & Comp uter Antenna Mfg. Security Services Cayuga Genesee Livingston Monroe Onondaga Ontario Orleans Oswego Seneca Wayne Wyoming Yates P age Total Firms by County TOTAL: , ,286

5 As shown in Table 3: Firms in Market, by NAICS Code, the total number of firms located in the aforementioned counties, and included within the NAICS codes in which RGRTA will award contracts in the upcoming federal fiscal years, is 2,286. The NAICS Codes used in the above table include: 1.) NAICS Codes Pre-Fab and Poured Concrete a.) Pre-Fab Building/Commercial Construction b.) Poured Concrete 2.) NAICS Codes in Construction Other Than Pre-Fab and Poured Concrete a.) Framing b.) Masonry c.) Roofing d.) Siding e.) Other Foundation Structure & Building Exterior f.) Electrical g.) Other Finish Contractors h.) Site Prep i.) Other Specialty Contractors 3.) NAICS Codes in Professional Services a.) Architectural Services 4.) NAICS Codes in Real Estate a.) Lease of Non-Residential Buildings 5.) NAICS Codes in IT a.) Computer Retail b.) Computer Peripherals Wholesale c.) Antenna Radio Manufacturing 6.) NAICS Codes in Administrative/Support a.) Security Systems For detailed information on NAICS Codes utilization by project and dollar value see Attachment D in the Appendix. 5 P age

6 III. GOAL CALCULATION Step 1: The relative percentage of ready, willing, and able DBEs is achieved through the following calculation: Numerator Number of DBEs (and potential DBEs) from NYSUCP DBE and Empire State Development M/WBE Directories Denominator All Firms from the Census Bureau s County Business Pattern Data Application of the formula using NAICS codes for the DBE and potential DBE firms versus all firms for the applicable NAICS codes yields the following baseline percentage of available DBE firms for RGRTA projects (see detail in Attachment D): 107 = 4.68% 2,286 The 4.68% base calculation of ready, willing, and able DBEs in the RGRTA market is below the 2013 base number of 12.0%. The most significant factors impacting this change appear to be in the make-up of the type of construction and engineering work being called for in the plan as well as a reduction in the number of available MBE and WBE firms in the required categories. The most significant portions of the plan were construction and engineering services related to three projects: RTS Access Campus, RTS Monroe Campus, and Mt. Hope Station. The construction projects in the plan utilize a smaller number of trades and exclude trades such as: Trade NAICS Code %MWBE/DBE Available in 2013 HVAC/Plumbing % Drywall & Insulation % Painting & Wall Covering % Glass and Glazing % Flooring % A reduction of available MBE and WBE firms is found in Masonry and Other Foundation Structure & Building Exterior. Both of these NAICS codes have fewer M/WBE Firms in 2016 than appeared in 2013 while the number of DBE Firms and All Firms remain stable. This may be due in part to NYS ESD change in coding systems. NYS ESD recently changed their method for coding trade classifications from the ESD Coding System to the standardized NAICS Coding System. The NAICS coding system permits users to further refine searches to more specific sub-classifications within the NAICS code. Trade NAICS Code % MWBE/DBE Available 2013 Masonry % 8.75% Other Foundation Structure & Building Exterior % MWBE/DBE Available % 3.03% 6 P age

7 The projects in the plan also require fewer professional services. Architectural services are required. However, the need for the following engineering services is not anticipated: Trade NAICS Code %M/WBE/DBE Available in 2013 Engineering Services % Landscape Architecture % The Architecture category also experienced a similar change as Masonry and Other Foundation Structure categories. The overall number of firms in the surveyed counties remained steady, the number of DBE firms increased, while the number of M/WBE firms decreased. This resulted in an overall percentage change of: % M/WBE/DBE % M/WBE/DBE Trade NAICS Code Available 2013 Available 2016 Architecture % 16.1% The USDOT Tips for Goal-Setting in the Disadvantaged Business Enterprise (DBE) Program circular states that Weighting can help ensure that your Step One Base Figure is as accurate as possible. In an effort to provide as accurate a base figure as possible, we also calculated the Base Figure using weighted numbers. The calculations and supporting information are outlined in Attachment B: Weighted Base Figure Calculations and Attachment D Proposed Federally-Funded Projects FFY Subcontracting Opportunities. The base figure resulting from the weighted calculation is 4.98%. Step 2: Adjusting the Base Figure The Base Figure must be analyzed based on regionally-specific data to ensure that the Base Figure of actual DBE availability truly and accurately reflects the level of DBE availability that could be expected, absent the effects of past discrimination. The Base Figure is merely an approximation of the general availability of DBEs and is developed using sources of relatively general statistical information. As such, RGRTA attempted to determine whether it was necessary to adjust the Base Figure to reflect the actual availability of DBE firms ready, willing, and able to participate on RGRTA s contracts. RGRTA considered adjusting the Base Figure by examining the following factors: a.) Historical data on past participation and RGRTA s Previous DBE Goals on federallyfunded contracts. YEAR PARTICIPATION YEAR GOAL % % % % % % % % % % 7 P age

8 As part of the goal setting process, RGRTA reviewed the previous years goals and actual participation. As noted, participation for federal fiscal years 2011 through 2013 was low; below 2.5%. Levels in 2014 and 2015 showed improvement, but remained well below the 8.4% goal. This can be largely attributed to two major construction projects which are still ongoing. Once the contracts are closed and DBE participation is reported, RGRTA anticipates the RTS Site Improvements project will achieve DBE participation exceeding 6.5% and the Downtown Transit Center is expected to achieve 10% DBE participation. The projects planned for FFYs are significantly smaller than the currentlyactive construction projects. The planned projects include RTS Access Campus Improvements at the RTS Access facility, bus shelter installation, pole barn design and installation at three (3) RGRTA rural properties, network equipment replacement, and onboard antenna replacement. As noted above, the smaller scale of the projects being planned has resulted in lower levels of DBE availability as well as a reduction in the number of MBE and WBE firms in Monroe and surrounding counties. Another factor in assessing the availability of DBE firms is competition from other projects. The Greater Rochester and Buffalo areas have several larger scaled projects on their horizon including the Rochester City School District which has received funding for Phase II of its multi-million dollar rebuilding program. Buffalo was recently noted as one of the hottest construction markets in the United States. Due to the longer duration and greater value of these projects, RGRTA anticipates continued competition for DBE contractor participation resulting in the reduced availability of these firms. b.) DBE Goal Benchmarking: When considering adjustments to the base figure calculation, DBE goals from comparable upstate New York transit agencies were considered. ORGANIZATION DBE PARTICIPATION GOAL CDTA (Albany) 5.44% (FFY ) CNYTRA (Syracuse) <2.0% (FFY ) In FY 2015, CDTA had an operating budget of $79.0 million and a capital budget of $10.9 million. CDTA operates 306 vehicles including 228 fixed-route transit buses. CDTA has a DBE goal of 5.4% for FFY 2016 FFY In FY 2015, CNYRTA had a nearly $62 million operating budget and a $10.8 million capital budget. CNYRTA operates 237 vehicles. CNYRTA has a DBE goal of <2%. These amounts compare to RGRTA s FY 2017 operating budget of $92.5 million and a capital budget of $6.4 million inclusive of bus purchases. While there is some similarity in projects, the CDTA federally-funded procurements encompass a much broader range of services and supplies. In previous years, RGRTA has considered the Niagara Frontier Transportation Authority (NFTA) which had a FY 2012 annual operating budget of $175,841,000, capital budget of $71.4 million, and a fleet size of 324 fixed-route buses along with a small light-rail system 8 P age

9 c.) and operations of the local airport. Due to the disparate size of the capital and operating budgets, RGRTA did not make a direct comparison to NFTA during this nor the previous evaluations. Projected Projects The largest projects during the three-year period covered by this goal plan are the design and construction of three small bus storage facilities to be located in three rural operations. The three projects total $10,560,000 in architectural design and construction costs over the three-year period. Following those projects is a $4,200,000 on-board radio and antenna replacement project for the RTS Monroe fleet scheduled for FFY The construction associated with these projects and the RTS Access Campus Improvement Project comprises 56.4% of the FTA funding over the next three years. The balance is made up of IT-related procurements 20.6%, antenna replacement 7.6%, architectural services 7%, poured concrete 6.2%, with the balance being small miscellaneous procurements 2.2%. The higher relative availability of DBEs in construction and professional services increases the probability that contracts for these projects may be awarded to DBEs as subcontractors. Additionally, the work involved in these projects can be broken up into a number of smaller components providing DBE firms more opportunity to compete for and be successful in obtaining a contract award. RGRTA has had success in implementing this strategy in previous construction projects such as the Downtown Transit Center and work in earlier phases of the RTS Campus Improvement Project. d.) Public Participation As part of the goal-setting process, public participation was sought through the provision of the proposed DBE Goal Plan to various local business groups, public notification of the availability of the goal, and a public meeting to review the goal plan. Copies of the goal were directly distributed to: Greater Rochester Chamber of Commerce Women s Council Small Business Council of Rochester Rochester Economic Development Corporation Greater Rochester Chamber of Commerce New York State Small Business Development Center at SUNY Brockport Center for Economic Growth, Rochester, New York Urban League of Rochester Rochester Hispanic Business Association Ibero-American Action League Ads notifying of the availability of the goal were published in: Publications of General Circulation Rochester Democrat and Chronicle General Business Publication Rochester Business Journal 9 P age

10 Minority-Focused Publications The Minority Reporter (on-line and print magazine) LaVos Our Voice (on-line magazine) A public meeting was held at the RGRTA main office, 1372 East Main Street, Rochester, New York, on Monday, June 27, 2016, at 10:30 a.m. Attachment C provides: Sampling of s sent to stakeholders List of Agencies Receiving DBE Goal Plan via Proof of publication in news media A copy of the Power Point utilized at the Public Meeting Sign-in sheet from the Public Meeting Invitation List for Public Meeting Sampling of invitations to Public Meeting Feedback from Public Participation Process Date Name Feedback Follow Up May 17, 2016 Ibero Asked for information on how Reviewed the goal plan American goal was calculated document. Offered an inperson Action League meeting. Was thanked for the offer and opportunity for input. Indicated in-person was May 17, 2016 Ibero American Action League Asked that copies of RFP s and IFB s be sent to them. Feedback from Public Participation Meeting: June 27, 2016 City of Offered City of Rochester Rochester listing of Certified MWBEs in City of Rochester Larsen Engineers the IT area. Recommended that RGRTA restate DBE goal by category to show higher percent of anticipated DBE participation in architecture, engineering, and construction as these are the trades most interested in the DBE program. Recommended that entire goal should be Race- Conscious. Local businesses do not readily subcontract work without being required to do so. not necessary. Added to vendor list. All firms were already included in RGRTA s list. RGRTA chose not to issue multiple DBE goals, but did share with meeting participants that the DBE goal will be appropriately adjusted on a project by project basis. As RGRTA has achieved some, minimal race-neutral DBE participation in the past, we chose to continue to maintain a Race-neutral portion of the goal. 10 Page

11 e.) Calculate Mean of Last Five Years Lastly, RGRTA used the following methodology outlined in the U.S. Department of Transportation, Office of Small and Disadvantaged Business Utilization publication Tips for Goal-Setting in the Disadvantaged Business Enterprise (DBE) Program for adjusting the Base Figure calculated in Step 1 above: Calculate the mean of the last five years of past participation: YEAR PARTICIPATION % % % % % The mean of the previous five-year period is 2.5%. However, it should be noted that DBE participation in the current phase of the Campus Improvement Project is projected to exceed 6.5% and the Downtown Transit Center is projected to achieve 10%. Step 3: Determination of FFY Goal Taking into account various factors such as the available pool of vendors, the DBE goals established by comparable transit agencies, RGRTA s prior years DBE participation, the types of projects RGRTA will undertake for the period FFY FFY 2019, and the existence of competing projects in the region, RGRTA concludes that the proposed goal of 4.48% is realistic for DBE participation. Our proposed goal of 4.48% is below the original base figure of 4.68% and the weighted figure of 4.98%. However, it is above the past five-year participation levels and some other regional benchmark agencies. Based on the projects to be undertaken and past participation, RGRTA feels it is warranted to adjust its DBE goal downward by 10% from the base 4.98% to 4.48%. Construction projects afford the best opportunities for DBE contracting and subcontracting opportunities. RGRTA s upcoming construction opportunities include a significantly smaller range of trades than those that were undertaken during the previous five years. The type of construction anticipated for the three regional projects are very modest pole barn-type construction with limited trade participation. ESTIMATED RACE-NEUTRAL AND RACE-CONSCIOUS PARTICIPATION Under USDOT regulations, the RGRTA must make every effort to meet our DBE participation goal using narrowly-tailored means that do not unduly burden non-dbes. To fulfill this obligation, we are required to achieve our DBE participation goal to the greatest extent possible through the use of race-neutral means. Race-conscious means may be used only to the extent needed to meet whatever portion of the DBE participation goal that cannot be met through race-neutral means. 11 P age

12 Race-Conscious Participation In meeting our overall goal of 4.48%, it is estimated that 90% (4.03% of RGRTA s federal contracting dollars) will be obtained through race-conscious measures. During the past three-year period, only five prime contracts have been awarded to DBE firms. The total value of which was $313,736 which is 2.1% of the value of all prime contracts awarded during this period. During the prior three-year period, only two DBE subcontracts were awarded on contracts without a DBE goal. The total value of those subcontracts was $4,121 which was less than.1% of the total value of prime contracts and subcontracts awarded during FFY 2013 when the award was made. In none of these three fiscal years was the DBE goal exceeded. It has been RGRTA s experience that DBE participation has almost exclusively been achieved through establishment of DBE contract goals. On most contracts where DBE participation has occurred, the prime contractor would have been able to self perform the work. Below are examples of typically self-performing contractors who included DBE participation due to RGRTA establishing a DBE goal on the procurement: 1.) Fare Collection System GFI Genfare, prime contractor, is a full service provider of fare collection systems KLI, Inc., KSO Metalfab, Inc., Kormex Metalcraft, and Marcres Metalwerks - DBE sub-contractors. 2. Garage Lift System: Crane Hogan is a full service general contractor G&J Contracting and Decca Paving - DBE sub-contractors. 3. Special Inspection and Testing Task Order Agreement: SJB Services prime contractor Popli Design, Ravi Engineering, and JC Smith - DBE sub-contractors 4. Paving of RTS Parking Lot: Ruston Paving Company, Prime Contractor Decca Paving - DBE Sub-Contractor While DBE participation has been trending higher for RGRTA projects, the annual DBE goal has not been reached, therefore, reinforcing the need to continue setting DBE contract goals. Additionally, RGRTA s previous three-year goal was 8.4% with.8% of that goal being race-neutral. The.8% race-neutral goal was not able to be achieved during any one of the three years. RGRTA will continue to strive to meet the maximum feasible portion of its overall goal by using race-neutral methods to promote DBE participation. The RGRTA will use the following race-neutral means to stimulate DBE participation in the upcoming year: Provide bid specifications and plans free of charge. Maintain lists of all firms that have obtained bid specifications to bid as prime contractors, and make this list available to all DBEs and non-dbes that request it, free of charge. This information helps facilitate communication by enabling DBEs to contact prime contractors for possible sub-contracting opportunities. 12 Page

13 On contracts with goals, encourage prime contractors to subcontract to DBEs whenever possible even if contract goals are exceeded. Ensure that DBEs are on recipient mailing lists for Requests for Proposals and Invitations for Bids. Encourage contractors to utilize DBE subcontractors on projects that do not carry a DBE goal. Offer assistance to current and potential DBE firms. Award prime contracts to DBEs whenever possible. Split contracts into smaller elements in order for DBE firms to have better opportunities to compete. The Authority s web site ( contains information on the Procurement Department. This web site information includes: current and upcoming Invitations for Bids and Requests for Proposals, a section on How to do Business with the Authority, a link to the NYSDOT website which contains DBE certification information and the RGRTA DBE Policy and Annual Goal. All Invitations for Bids and Requests for Proposals over $15,000 are advertised in a local newspaper and the New York State Contract Reporter. In addition, bid opportunities are placed on the RGRTA website. These advertisements will include a statement that DBEs are encouraged to respond. Expand advertising locations to include minority-focused media. Outreach to DBEs for assistance in addressing any past issues and conduct post bid debriefing meetings with DBEs as requested. The RGRTA will use the following race-conscious means to increase DBE participation: Publishing Public Notices which outline RGRTA s commitment to providing opportunities for DBEs on Federally-funded projects. Establish DBE goals on eligible contracts. Identify firms that are potentially eligible to apply for DBE Certification with NYSDOT, direct them to sources that provide technical assistance for the certification process, and encourage them to make contact. A link to RGRTA s website has been added to the Monroe County Procurement Technical Assistance Center (PTAC) which provides purchases and certification assistance to small businesses in the region. 13 P age

14 RGRTA has begun meeting with the Monroe County Procurement Department to explore opportunities to work together on M/WBE and DBE outreach efforts among other procurement-related activities. IV. In summary, RGRTA expects to meet the proposed 4.48% DBE goal through 4.03% race-conscious means and 0.45% race-neutral participation. Historically, DBE participation has been achieved through establishing DBE contract goals. RGRTA projects that pattern will continue into FFY 2017 FFY Race-Neutral Participation Race-neutral strategies will continue to be undertaken by RGRTA to build momentum toward attainment of at least a small percentage of the annual goal. RGRTA will monitor race-neutral and race-conscious contracting volume and adjust the estimated breakout of race-neutral and race-conscious participation to reflect actual DBE participation. The RGRTA will also track and report race-neutral and race-conscious participation separately for reporting purposes. Race-neutral DBE participation includes, but is not limited to, the following: DBE participation through a prime contract obtained through customary competitive procurement procedures; DBE participation through a subcontract on a prime contract that does not carry a DBE goal; DBE participation on a prime contract exceeding a contract goal; and DBE participation through a subcontract from a prime contractor that did not consider a firm's DBE status in making the award. Contract Goals RGRTA will use contract goals to meet any portion of the overall goal RGRTA does not project to be able to meet using race-neutral means. Contract goals will be established so that, over the period to which the overall goal applies, they will cumulatively result in meeting any portion of the overall goal that is not projected to be met through the use of race-neutral means. Once RGRTA s DBE goal of 4.48% is met, RGRTA will discontinue establishing a DBE goal on federally-funded or federally-assisted procurements for the remainder of that federal fiscal year. RGRTA will establish contract goals only on those DOT-assisted contracts that have subcontracting possibilities. RGRTA will not establish a contract goal on every such contract, and the size of contract goals may be adapted to the circumstances of each such contract (e.g., type and location of work, availability of DBEs to perform the particular type of work). CONCLUSION The RGRTA has carefully reviewed and considered the many factors which influence the establishment of a fair and credible DBE goal. Consideration was given to RGRTA s anticipated Federal Funding for FFY in conjunction with the associated capital projects to develop a list of likely DBE opportunities. We also examined RGRTA s past DBE goals, actual 14 P age

15 DBE participation, and past projects for insight as to what may be reasonable expectations for the future. In order to gain insight into regional expectations, RGRTA looked into the DBE goals of transit organizations similarly situated to RGRTA. Further, RGRTA shared its goal plan with local organizations familiar with ready, willing, and able DBE contractors in the region as well as knowledge of local market activity and researched upcoming community projects which may offer other DBE opportunities. Based upon the information gathered and careful calculations, RGRTA has determined that a DBE goal of 4.48% for FFY s is reasonable given its current budget, anticipated projects, and local economic environment. 15 P age

16 Attachment A Rochester Genesee Regional Transportation Authority Federal Funding Availability for DBE Contracts Three Year Goal, Federal Funds Available CIP 2016/17 Federal Funds Available CIP 2017/18 Federal Funds Available CIP 2018/19 Section 5307 $17,101,280 Section 5307 $17,316,030 Section 5307 $6,580,043 Section 5339 $2,197,115 Section 5339 $1,141,787 Section 5339 Section 5311 $2,372,807 Section 5311 $2,621,956 Section 5311 $2,378,112 Anticipated 5311 Funding $7,550,620 Anticipated 5311 Funding $3,340,000 Anticipated 5307 Funding $490,000 Anticipated 5309 Funding $4,200,000 $29,221,822 $29,109,773 $8,958,155 Unavailable for Contracting Unavailable for Contracting Unavailable for Contracting Preventative Maintenance $8,586,875 Preventative Maintenance $6,058,692 Preventative Maintenance $5,920,084 Replace 18 Transit Buses RTS $9,171,464 Replace 22 Transit Buses RTS $11,575,974 Replace Transit Buses RTS $0 Replace 10 Paratransit Buses Access $794,359 Replace 8 Paratransit Buses Access $674,893 Replace 6 Paratransit Buses Access $509,066 Replace 20 Regional Buses $2,372,807 Replace 24 Regional Buses $2,621,956 Replace 20 Regional Buses $2,378,112 $20,925,505 $20,931,515 $8,807,262 Available For Contracting $8,296,317 Available For Contracting $8,178,258 Available For Contracting $150,893 Federal Funds for Proposed Projects Federal Funds for Proposed Projects Federal Funds for Proposed Projects Access Campus Improvements $600,000 Access Campus Improvements Access Campus Improvements Transit Enhancements $145,697 Transit Enhancements $148,258 Transit Enhancements $150,893 Orleans Final Design $348,300 Genesee Final Design $300,600 Orleans Construction $3,521,700 Genesee Construction $3,039,400 Seneca Final Design $301,500 On Board Radio and Antenna Replacem $4,200,000 Seneca Construction $3,048,500 Network Equipment Replacement $200,000 Livingston Improvements $330,620 DR San Replacement $200,000 Network Equipment Replacement $90,000 Proposed Projects $8,296,317 $8,178,258 $150, P age

17 Attachment B: Weighted Base Figure Calculations Detail of Categories by Project is shown in Attachment D Percentage of Total Federal Funding by Category Category Federal Funding % of Fed Funding Pre-Fab Construction $ 311, % Poured Concrete $ 1,027, % Construction excluding Poured $ 9,379, % Concrete & Pre-Fab Construction Architecture $ 1,156, % Real Estate Leasing, Commercial $ 30, % IT Computer Peripherals $ 3,430, % (Retail & Wholesale) Antenna Manufacturing $ 1,260, % Security Systems $ 30, % Total Federal Funding $16,625, % Weighted Calculation Segment % of Federal (DBE+MWBE firms)/ Weighted % Funding (All Firms) Pre-Fab Construction 1.87% x ((1+6)/238)=2.94% = 0.04% Poured Concrete 6.18% x ((0+5)/54)=9.26% = 0.57% Construction excluding x ((60+22)/1,325)=6.19% = 3.48% Poured Concrete & Pre- Fab Construction 56.42% Architecture 6.96% x ((9+2)/89)=12.36% = 0.86% Real Estate Leasing, 0.18% x ((0+0)/299)=0.00% = 0.00% Commercial IT (Retail & Wholesale) 20.63% x ((0+0)/216)=0.00% 0.00% Antenna Manufacturing 7.58% x ((0+0)/16)=0.00% 0.00% Security Systems 0.18% x ((2+0)/49)=4.08% 0.01% Total 4.98% 17 P age

18 Attachment C: Public Participation 18 P age

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22 DBE Goal Plan Initial Distribution List: Women's Council c/o Greater Rochester Chamber of Commerce 150 State Street Suite 400 Rochester, NY Phone: (585) Fax: (585) e mailed 5/13/16 Cindy DeVoldre Small Business Council of Rochester Affiliate of Greater Rochester Chamber of Commerce 150 State Street Rochester, NY (585) e mailed 5/13/16 Rochester Economic Development Corporation Charles A. Benincasa, Treasurer Rochester City Hall 30 Church Street Rochester, NY e mailed 5/13/16 Greater Rochester Chamber of Commerce William R. Anderson 150 State Street, Suite 400 Rochester, NY e mailed 5/13/16 New York State Small Business Development Center College at Brockport Mr. Jan Pisanczyn, Director 350 New Campus Drive, Morgan 3 Brockport, NY sbdc@brockport.edu 5/13/16 Center for Economic Growth 39 North Pearl Street, Suite 100 Albany, NY ceg@ceg.org

23 Urban League of Rochester William G. Clark, President 265 North Clinton Avenue Rochester, NY e mailed: 5/13/16 Rochester Hispanic Business Association Michele Hefferon 150 State Street Rochester, NY Gladys Pedraza Burgos Chief Operating Officer Ibero American Action League 817 E. Main Street Rochester, NY

24 Good Afternoon [Insert Contact Name] The Rochester Genesee Regional Transportation Authority (RGRTA) has prepared the attached goal plan for Disadvantaged Business Enterprise (DBE) participation in our federally funded projects for the fiscal years This goal is formulated by evaluating the number of all business firms available versus DBE firms of the same job classifications. As the DBE Liaison Officer, I welcome the opportunity to discuss our goal setting process and our upcoming procurement opportunities at your convenience. Please feel free to contact me. The goal plan will be submitted to the Federal Transit Administration after the public comment period which ends on Monday, June 27 th. Thank you for your time. Best regards, Dawn Dawn Sywulski Manager, Contract Administration DBE Liaison Officer REGIONAL TRANSIT SERVICE 1372 East Main Street Rochester, NY dsywulski@myrts.com Office:

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28 PUBLIC NOTICE NOTICE OF PROPOSED DBE PARTICIPATION GOAL FOR FEDERAL FISCAL YEARS The Rochester Genesee Regional Transportation Authority (RGRTA) has established a Disadvantaged Business Enterprise Program (DBE Program) in accordance with regulations of the U.S. Department of Transportation (DOT), 49 CFR Part 26. As part of this DBE Program, the Authority announces its proposed FFY s 2017, 2018, and 2019 goal of 4.48% for DBE participation in Federal Transit Administration funded projects. The proposed goal and methodology may be reviewed during normal business hours, 8:00 a.m. 4:30 p.m. Monday Friday at RGRTA s main office 1372 East Main Street, Rochester, New York for 30 days following this notice. Interested persons may contact Dawn Sywulski, DBE Liaison Officer (DBELO), RGRTA, (585) or via e mail at dsywulski@myrts.com. The RGRTA and US DOT will accept written comments on the goal and the methodology for 45 days from the first date of publication of this notice. Written comments may be submitted to RGRTA and/or US DOT at either of the following addresses or via the contact information above: RGRTA Dawn Sywulski, DBELO 1372 East Main Street Rochester, New York dsywulski@myrts.com U.S. Dept. of Transportation Federal Transit Administration One Bowling Green, Room 429 New York, New York 10004

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40 US DOT DBE Program and Goal Setting Process Federal Fiscal Years June 27, 2016 Date Goes Here

41 Staff Dawn Sywulski Manager of Contract Administration/ DBE Liaison Officer Sarah Clark Contract Administration Specialist

42 Agenda Background and Federal Regulations RGRTA Funding Sources Anticipated Major Procurements Required Steps in Goal-Setting Process Step 1 Develop a Base Figure Step 2 Adjust Base Figure Step 3 Formulate Final Proposed Goal Step 4 Goal Plan Outreach Counting DBE Participation Good-Faith Efforts Effective Program Monitoring Next Steps Questions/Answers

43 Background and Federal Regulations DBE Program Requirements are outlined in 49 CFR, Part 26 Requires any FTA recipient who reasonably anticipates awarding contracts valued at more than $250,000 in FTA funds (excluding transit vehicles) to develop an overall DBE goal. Goal represents a percentage of the federal dollars available for use in procuring contracted goods or services. Outlines requirements for encouraging participation and setting goal.

44 RGRTA Funding Sources Federal Transit Administration (FTA) Federal Formula Funds - Funding disbursed annually for capital purchases and maintenance of buses. (80/10/10) Federal Discretionary Funds Funding for unusual capital needs that exceed formula funding capacity, i.e., Downtown Transit Center. (80/10/10) New York State Department of Transportation (NYSDOT) NYS Matching Funds Provides match of federal funding for capital projects. Typically 10% of a project s total cost. State Dedicated Funds Needs-based and/or formula 100% state funds for capital projects. State Operating Assistance NYS transit assistance for operating costs. Member County Contributions Each of RGRTA s eight counties make an annual contribution. Mortgage Recording Tax A small tax is applied to all new mortgages that are executed in the eightcounty region.

45 Anticipated Major Procurements Federal Fiscal Year / / /2019 Access Campus Improvements $600,000 Access Campus Improvements Access Campus Improvements Transit Enhancements $145,697 Transit Enhancements $148,258 Transit Enhancements $150,893 Orleans Final Design $348,300 Genesee Final Design $300,600 Orleans Construction $3,521,700 Genesee Construction $3,039,400 Seneca Final Design $301,500 On-Board Radio and Antenna Replacement $4,200,000 Seneca Construction $3,048,500 Network Equipment Replacement $200,000 Livingston Improvements $330,620 DR San Replacement $200,000 Network Equipment Replacement $90,000 Proposed Projects $8,296,317 $8,178,258 $150,893

46 Regional Construction

47 DBE Goal Setting Method of Calculation - Procedure Step 1 - Develop a Base Figure The Base Figure Calculates the Relative Availability of Ready, Willing, and Able DBE firms available to perform the work needed by the agency. The base figure must be clearly tied to local market evidence. Relative Availability = # of DBE Firms and Potential DBE Firms in the key categories of work to be performed/ Total # of Firms in the key categories of work to be performed

48 DBE Goal Setting Method of Calculation - Procedure Step 1 Develop a Base Figure (continued) Goal must be refined. Regulations offer flexibility in determining the methodology used in the goal-setting process: DBE directories and Census Bureau data Bidder lists Consider other recipient s goals Weigh goal based on categories or types of work such as; Construction Manufacturing Professional Services

49 DBE Goal Setting RGRTA Calculation Step One RGRTA Step One: Identify Anticipated Federally-Assisted Contracts: Approximate Value = $16,625,468 Breakdown Projects by Type of Work Needed (establish percentages) Identify NAICS Codes Associated with Anticipate Contracts Identify Counties Comprising RGRTA s Market Area Market Area is that area from which RGRTA draws contractors and vendors. Collect Census Bureau Data and DBE and MWBE Data by County and Vendor Category

50 DBE Goal Setting RGRTA Calculation Step One Calculate Base Figure Relative Availability of Ready, Willing, and Able DBE s Available to Perform the Work Needed by the Agency. DBE availability in RGRTA market area Sources: NYSDOT DBE Directory Empire State Development Corp (ESD) MBE/WBE Directory Result = 107 All firms availability in RGRTA market area Source: Census Bureau Data NAICS Codes Result = 2,286 Base Figure Availability = 4.68%

51 DBE Goal Setting RGRTA Calculation Step Two Step Two - Adjust Figure By Weighing By Amount of Work in Each Category Categories Pre-Fab Construction 1.87% Poured Concrete 6.18% Construction excluding Pre-Fab & Poured Concrete 56.42% Architecture 6.96% Real Estate Leasing, Commercial.18% IT Equipment & Services 20.63% Antenna Manufacturing 7.58% Security Systems.18% Revised Base Figure with Weighting = 4.98%

52 DBE Goal Setting Method of Calculation Step Two Step Two Adjust Base Figure Consider any evidence in the local area to determine what, if any, adjustment is necessary. Evidence to Consider Current capacity of DBEs in the area Past participation for similar projects Historical mean of previous year s participation DBE goals set by similarly-situated transportation agencies

53 DBE Goal Setting RGRTA Calculation Step Two RGRTA Step Two Five-year mean of DBE participation = 2.5% Campus Improvement Project projection = 6.5% Downtown Transit Center Projection = 10% DBE Goals for Similarly-Situated Transportation Agencies Albany = 5.44% Syracuse = <2.0% Accuracy of Data Sources DBE Directory updated continuously vs. Census Bureau Data which is several years old (2014 statistics)

54 DBE Goal Setting Formulation of Proposed Goal Step Three RGRTA Proposed DBE Goal: 4.48% Goal 8.4% Goal 10.0% Goal 10.0% The Anticipated Projects Reflect A Significant Reduction In Construction Related Activity Upcoming construction projects do not include the following trades with higher concentration of DBE firms HVAC/Plumbing Drywall & Insulation Painting & Wall Covering Glass & Glazing Flooring

55 DBE Goal Setting Formulation of Proposed Goal Step Three The Anticipated Projects Reflect A Significant Reduction In Professional Services Upcoming projects do not include the following engineering services with higher concentration of DBE firms Engineering Services Landscape Architecture

56 DBE Goal Plan Outreach Step Four Notice of DBE Goal Plan Advertised in: Minority Reporter: Website May 13, 2016 Print Edition May 18, 2016 Our Voice Website: May 13, 2016 Rochester Business Journal: May 13, 2016 Democrat and Chronicle: May 13 15, 2016 Copies Of The DBE Goal Plan Were ed To The Following Organizations: Center for Economic Growth Greater Rochester Chamber of Commerce Ibero-American Action League NYS Small Business Development Center Rochester Economic Development Corporation Rochester Hispanic Business Association Rochester Women s Council Small Business Council of Rochester Urban League of Rochester

57 RGRTA 2017 / 2019 DBE Goal What Does the Goal Mean? Apply calculated percentage to relevant funding to obtain RGRTA Goal for DBE Participation on Federally-Funded Contracts 4.48% x $16,625,468 = $744,821

58 RGRTA 2017 / 2019 DBE Goal Counting DBE Participation Only Payments to Certified DBE Firms May Be Counted DBE must be certified by NYS Unified Certification Program (NYSUCP) RGRTA will verify this certification Only Work Performed by DBEs and Supplies Purchased from a DBE Supplier Maybe Counted Toward the Goal If DBE Contractor Subcontracts To A Non-DBE Firm, Payments Made To The Non-DBE Subcontractor Cannot Be Counted

59 RGRTA 2017 / 2019 DBE Goal Contractor Required Information Names and addresses of DBEs that will participate in the contract with projected dollar volume Description of work the DBE will perform Bidder s written commitment to use DBE subcontractors DBE firms verification that they will accept the work Category of DBE certification

60 RGRTA 2017 / 2019 DBE Goal Contractor s Good Faith Efforts Identifying portions of the work that can be done by DBEs or other small businesses Soliciting DBEs (request for quotes, advertising) Providing plans and specifications to DBE firms in a timely manner Using M/WBE or contractor groups to help in recruitment and placement of DBEs Attending Pre-bid meeting to inform DBEs of subcontracting opportunities

61 RGRTA 2017 / 2019 DBE Goal Contractors Good Faith Efforts (continued) Documenting evidence of negotiations with DBEs (names, addresses, why agreements weren t reached) Cost: Primes are not required to accept DBE proposal if they demonstrate it is excessive or unreasonable Negotiating in good faith, not rejecting proposals without a sound reason

62 RGRTA 2017 / 2019 DBE Goal Effective Program Monitoring RGRTA has created an additional position for oversight and reporting of DBE and M/WBE programs Enforcement of contract goals and good faith efforts Periodic checks to assure DBEs are performing the work they were hired to perform Track and verify prompt payments to all subcontractors (DBEs and Non-DBEs) Verification of DBE certification and recertification

63 RGRTA 2017 / 2019 DBE Goal Next Steps Review Comments Submitted Submit Goal to FTA, No later than August 1 st Goal Effective, October 1, 2016

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73 Attachment D Proposed Federally Funded Projects FFY Subcontracting Opportunities Project FFY 2017 Lift Line Campus Improvement Phase I Anticipated Project Cost Federal Share Anticipated Project Cost Matched $600,000 $750,000 Subcontracting Opportunities Value of Subcontracting Opportunity NAICS Code # of Firms in NAICS Code # DBE Firms # MWBE Firms Total DBE + MWBE Firms % MWBE/ DBE Available Anticipated DBE Share of Project Based on Federal Share Architectural $90, % $11,124 Construction $450, % $28,390 Lease of Non Residential Bldg. $30, % $0 Security System $30, % $1,224 Transit Enhancements $145,697 $182,121 Orleans Final Design $348,300 $435,375 Orleans Construction $3,521,700 $4,402,125 Seneca Final Design $301,500 $376,875 Seneca Construction $3,048,500 $3,810,625 Livingston Improvements $330,620 $413,275 FFY 2018 Transit Enhancements $148,258 $185,323 Genesee Final Design $300,600 $375,750 Genesee Construction $3,039,400 $3,799,250 On Board Radio & Antenna Replacement Network Equipment Replacement $4,200,000 $5,250,000 $200,000 $250,000 DR San Replacement $200,000 $250,000 Network Server Replacement $90,000 $112,500 FFY 2019 Transit Enhancements $150,893 $188,616 Architectural $21, % $2,701 Pre Fab Construction $101, % $3,000 Poured Concrete $21, % $2,024 Architectural $348, % $43,048 Poured Concrete $352, % $32,608 Constrution other than 238 (excl $3,169, % $196,152 Poured Concrete ) Architectural $301, % $37,264 Poured Concrete $304, % $28,227 Constrution other than 238 (excl $2,743, % $169,796 Poured Concrete ) Architectural $49, % $6,129 Construction $281, % $17,730 Architectural $22, % $2,749 Pre Fab Construction $103, % $3,052 Poured Concrete $22, % $2,059 Architectural $300, % $37,153 Poured Concrete $303, % $28,143 Constrution other than 238 (excl $2,735, % $169,289 Poured Concrete ) Antenna Radio Mfg. $1,260, % $0 IT Retail/ $2,940, % $0 Computer Perepherials IT Retail $200, % $0 IT Retail $200, % $0 IT Retail $90, % $0 Architectural $22, % $2,797 Pre Fab Construction $105, % $3,107 Poured Concrete $22, % $2,096 Total Federal Share $16,625,468