Attachment 5 Section 26.45: Overall DBE Three-Year Goal Methodology Fiscal Years
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1 Attachment 5 Section 26.45: Overall DBE Three-Year Methodology Fiscal Years Name of Recipient: Port of Skagit, owner of Skagit Regional Airport Period: FY October 1, 2017 through September 30, 2020 DOT-assisted contract amount: FY ,111 FY FY ,334 Total 944,445 Overall Three-Year : No three-year goal was developed due to the project schedule, and the lack of projects during Instead, we have set annual goals for the two years where federally funded project work is anticipated to occur: Year % 2019 None % Total dollar amount to be expended on DBE s: 22,064 [ % x DOT-assisted amount] Number and Type of Contracts that the airport anticipates awarding: Contracts Fiscal Year #1 1. Master Plan Update - 611,111 Contracts Fiscal Year #2 1. None Contracts Fiscal Year #3 1. Environmental Assessment - 333,334 The local market area includes four counties: Island, Skagit, Snohomish and Whatcom. The market area was determined based upon the location of previous bidders. This is also the are from which a substantial majority of the contractors and subcontractors come from and the area in which the airport spends a substantial majority of its contracting dollars. Port of Skagit DBE i Skagit Regional Airport
2 Step (c) Actual relative availability of DBE s The base figure for the relative availability of DBEs was calculated as follows: - The project work was divided into the appropriate NAICS classifications as shown in Table 1 below. Table 1 PORT OF SKAGIT, SKAGIT REGIONAL AIRPORT FY 2018 Project Description: Master Plan Update Work Description NAICS Code Cost (Federal only) % of Project Engineering , % FY2018 Total: 611, FY 2019 Project Description: NONE Work Description NAICS Code Cost (Federal only) % of Project FY2019 Total: - FY 2020 Project Description: Environmental Assessment Work Description NAICS Code Cost (Federal only) % of Project Environmental Consulting , % FY2020 Total: 333, The total number of qualified firms for each category of work was determined by using the U.S. Census Bureau data from 2015, the most current year available. This data was located at the following website: - Certified DBE firms for these NAICS categories were found by using the State of Washington s online database from the Office of Minority and Women s Business Enterprises (OMWBE). This data was located at the following website: - For each NAICS category, DBE firms were then evaluated based on location and work capabilities. DBE firms were considered ready, willing and able if they met the following conditions: Firm location is within the previously defined market area; Port of Skagit DBE ii Skagit Regional Airport
3 Work capabilities include those necessary for this project. It is assumed that firms will be capable of performing the work included in the category under which they are listed and certified. - The DBE goal for each NAICS work classification was then calculated by dividing the number of ready, willing, and able DBE firms by the total number of ready, willing and able firms. - Lastly, an average DBE goal was then calculated for the entire project, using cost-based weighting. The cost-weighted DBE goal is the percentage of work expected to be performed by each NAICS DBE category divided by the total project cost. Calculations for these figures were derived from our Engineer s preliminary cost estimate for work on the project(s). Table 2 below illustrates these calculations. Step 1 resulted in the following annual goals: FY %, FY %, and FY % Step (d) Adjustments to Step 1 base and weighted figures After calculating a weighted base figure of the relative availability of DBEs, evidence was examined to determine what adjustment (if any) was needed to arrive at the overall goal. a. Past Participation There have been no recent projects of similar character at Skagit Regional Airport that had DBE participation. Based on past participation there is no data to support an adjustment to the weighted base figure. b. Disparity Study There are no disparity studies available for review. The Port will continue to contact FAA, and Washington Department of Transportation and others for records of any recently completed disparity studies. No adjustments will be made on this basis. c. Work Item Analysis Several NAICS codes were overly broad, given the scope of the work anticipated. The DBEs in the market area were reviewed to determine their capability to perform the work items included in these projects. The quantity of able DBEs was adjusted accordingly and the cost estimates for this work were used to calculate a percentage of the total work and is reflected in the DBE goal set in Step 1. d. Other factors The Port has contacted the following business advocacy agencies: Associated Builders and Contractors of Western Washington Association of Washington State Hispanic Chambers of Commerce Bellingham Whatcom Chamber of Commerce Burlington Chamber of Commerce Economic Alliance Snohomish Economic Development Alliance of Skagit Entrepreneurial Institute of Washington Federal Highway Administration, Washington Division Greater Bothell Chamber of Commerce Greater Marysville Tulalip Chamber Lynnwood Chamber of Commerce Mt Vernon Chamber of Commerce National Association of Minority Contractors, WA State Northwest Mountain Minority Supplier Development Council Oak Harbor Chamber of Commerce Port of Skagit DBE iii Skagit Regional Airport
4 Sedro-Woolley Chamber of Commerce Small Business Development Center at Edmonds Community College Small Business Development Center at Western Washington University Snohomish Chamber of Commerce Veteran Business Outreach Center WA DOT Aviation Division, Construction Division, and Tribal Liaison Office WA Secretary of Transportation Washington Asphalt Pavement Association Women s Business Centers All comments received will be addressed and the goal adjusted if applicable. See Consultation: Section (g) (1) below. No evidence was found that would support any adjustment to the Step 1 goal, therefore the Port of Skagit will adopt the goals established in Step 1: FY %, FY %, and FY % Table 2 Percent DBE Calculation - Skagit Regional Airport, Skagit, Burlington, WA includes the following Washington counties: Island, Skagit, Snohomish, Whatcom DBE Buisnesses in the survey area were calculated using data from the The Office of Minority and Women's Business Enterprises available at: Data was obtained on 6/6/2017. Total established firm data was taken from the U.S. Census Bureau website available at data was used for the calculations as it is the most recent available. FY 2018 NAICS Codes from 2015 Census % of Total Project Work Project Work Elements Island Skagit Snohomish Whatcom Totals Base Weighted TotalDBETotalDBE Total DBE TotalDBE Total DBE % Engineering % 1.43% 100.0% % 1.43% FY NO PROJECTS ANTICIPATED % of NAICS Total Codes from Project Work Elements Project 2015 Census Work Island Skagit Snohomish Whatcom Totals TotalDBETotalDBE Total DBE TotalDBE Total DBE % Base Weighted FY 2020 NAICS Codes from 2015 Census % of Total Project Work Project Work Elements Island Skagit Snohomish Whatcom Totals Base Weighted TotalDBETotalDBE Total DBE TotalDBE Total DBE % Environmental Consulting % 4.00% % 4.00% Port of Skagit DBE iv Skagit Regional Airport
5 Basic Calculation Total DBE's/All Firms The Annual Weighted Calculation shown above will be used for our for each applicable year. Breakout of Estimated Race and Gender Neutral (RN) and Race and Gender Conscious (RC) Participation (b) (1-9) The Port anticipates meeting 100% of its goal by using Race Neutral means of facilitating DBE participation, including but not limited to: - Arranging solicitations, times for the presentation of bids, quantities, specifications, and delivery schedules in ways that facilitate DBE and other small businesses participation; - Encouraging prime contractors to subcontract portions of work they might otherwise perform with their own forces; - Ensuring the inclusion of DBEs and other small businesses on recipient mailing lists for bidders; - Advising prime contractors of the State of Washington online DBE directory and website; - Providing assistance in overcoming limitations such as inability to obtain bonding or financing; The Port of Skagit does not have a history of DBE participation or over-achievement of goals to reference and expects to obtain its DBE participation through the use of annual overall goals and communication of opportunities for DBEs. Consistent with key court rulings 1 and USDOT official guidance, we are applying the entire goal to race-neutral participation. Public Participation Fiscal Year Overall DBEs Available / 280 = 1.43% 2019 N / A / 50 = 4.00% Weighted Calculation [%work(dbe/all Firms) + %work(dbe/all Firms)] X 100 Fiscal Year Annual Weighted Calculation % 2019 N/A % Total Anticipated DBE dollars: Consultation: Section 26.45(g)(1). DBE 8, , , In establishing the overall goal, the Port provided for consultation and publication. This included consultation with minority, women s and general contractor groups, community organizations, and other officials or organizations which could be expected to have information concerning the availability of disadvantaged and non-disadvantaged businesses, the effects of discrimination on opportunities for DBEs, and the Port s efforts to establish a level playing field for the participation of DBEs. 1 Western States Paving Co. v. Washington State DOT, 407 F.3d 983, (9 th Cir. 2005), cert. denied, 546 U.S (2006) Until further notice, federally-funded contracts can be awarded without the lowest responsive bidder meeting the goal or demonstrating good faith effort to meet the goal. Port of Skagit DBE v Skagit Regional Airport
6 The consultation included a scheduled, direct, interactive exchange (e.g., a face-to-face meeting, video conference, teleconference) with as many interested stakeholders as possible focused on obtaining information relevant to the Port s goal-setting process, and it occurred before we were required to submit our goal methodology to the operating administration for review pursuant to paragraph (f) of this section. Notwithstanding paragraph (f)(4) of this section, we will not implement our proposed goal until we have complied with this requirement. The Port contacted the agencies listed in Step 2 above with an invitation to attend a consultation meeting at the office of the Port: Meeting date and time: September 11, 2017 at 11:00 am Location of meeting: Skagit Regional Airport, Airport Drive, Burlington, WA Discussion included, but was not limited to, the following items: Review of the Program document and its parts Review of the goals and the methodology used to determine them Past participation of Disadvantaged Business Enterprises Availability of DBE businesses for utilization in projects Solicit input from participants on ways to increase DBE participation and remove barriers to participation Comments from participants included the following concerns: - Contracting opportunities are not easily found; too many data sources. - Previous barriers to participation included capacity, finance (cash flow), bonding, workforce challenges due to large firms - Explicit discrimination in the past has included: stereotypes, assumptions that DBEs are less qualified, perceived manipulations by political insiders - Suggestions to resolve barriers included: Partnering, transparency, small business taskforces, smaller procurement opportunities - Work with organizations like the Entrepreneurial Institute of WA that provide support to DBEs - Notices could all be centralized with the state agencies that do the certification Discussion included interest in the upcoming/ongoing disparity study being performed in Washington State. It was recognized that the results may change the experience for future contracting opportunities. The Port will use these comments, concerns and suggestions to make improvements to the processes we use for procurement on future projects. Upon evaluation, we determined no evidence was found in this consultation meeting to indicate any adjustment to the goal was needed. Public Notice The Port published a notice of the proposed overall goal in the Skagit Valley Herald and the Daily Journal of Commerce, informing the public that the proposed goal and its rationale are available for inspection during normal business hours at the Port office for 30 days following the date of the notice, and informing the public that the Port and DOT would accept comments on the goals for 45 days from the date of the notice. Port of Skagit DBE vi Skagit Regional Airport
7 SAMPLE PUBLIC NOTICE The PORT OF SKAGIT has established a Disadvantaged Business Enterprise (DBE) program in accordance with regulations of the U.S. Department of Transportation, 49 CFR Part 26. The PORT OF SKAGIT has established DBE annual overall goals of 1.43% for FY 2018, and 4.0% for FT 2020, of the federal financial assistance it will receive for improvements to SKAGIT REGIONAL AIRPORT. The PORT OF SKAGIT estimates it will meet these entire goals through race neutral means. NOTE: No goal has been set for 2019 as there are no projects anticipated that year. The Program and rationale used in developing the goal are available for review at: Port of Skagit Administrative Office Airport Drive P. O. Box 348 Burlington, WA (360) The program and rationale will be available for review for 30 days following the date of this publication. The PORT OF SKAGIT and FAA Civil Rights Office will accept comments on the program and rationale for 45 days following the date of this publication. Comments should be sent to: Sara Young, DBELO Port of Skagit Airport Drive PO Box 348 Burlington, WA saray@portofskagit.com OR FAA Civil Rights Office Attn: Sonia Cruz PO Box Los Angeles, CA Sonia.Cruz@faa.gov The Port will submit its three-year goal to DOT as required by the set schedule. Our overall goal submission to DOT includes the following summary of information and comments received during this public participation process and our responses, if any. Summary: No comments were received as a result of the public notice of our three-year goal and its methodology. Contract s The Port will not use contract goals to meet any portion of the overall goal that the recipient does not project being able to meet using RN means. Please refer to in this program document for additional information. Port of Skagit DBE vii Skagit Regional Airport
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