Kingsport Area Transit Service Goal and Methodology FFY
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1 ! Kingsport Area Transit Service Goal and Methodology FFY Clay Street Kingsport, TN Grantee ID # 5097! 1
2 DBE Liaison Officer Candace Sherer Telephone: Grantee ID #5097 DBE Goal and Methodology TABLE OF CONTENTS Table of Contents Overall Goal 3 Defined local market area 3 Projections 4 Public Participation 4 Methodology for calculating goal 6 Step 1 6 Step 2 6 Weighting 7 Attachments Attachment 1- NAICS Code Relativity Table Attachment 2- Tennessee Uniform Certification Program Listings Attachment 3- American Fact Finder Community Census Results (2016) Attachment 4- Times News order and Newspaper Publication for Public Meeting Attachment 5- Meeting Sign in Sheets! 2
3 Overall Goal Kingsport Area Transit Service FFY 2017 thru FFY 2019 DBE Goal and Methodology The Kingsport Area Transit Service (KATS) has completed its goal setting and methodology report for its three year Disadvantaged Business Enterprise (DBE) overall goal applicable to Federal Fiscal Years (FFY) 2017, 2018, and 2019 October 1, 2016 through September 30, 2019 contracting opportunities funded in whole or in part by the Federal Transit Administration (FTA), exclusive of FTA funds to be used for the purchase of transit vehicles. KATS proposed DBE overall goal will be 1%. KATS overall goal is based on demonstrable evidence of the availability of ready, willing and able DBEs relative to all business ready, willing and able to participate in KATS s DOT-assisted contracts. It reflects the level of DBE participation that KATS would expect absent the effects of discrimination. KATS s entire 1% goal will be obtained through race-neutral means. In order to establish its overall DBE goal, KATS followed federal regulations, including the two-step goal-setting methodology set forth in 49 CFR Part KATS determined a step one base figure for its overall DBE goal using information from the Tennessee DBE Unified Certification Program (UCP) Directory (Attachment 2) as well as from Census Bureau data American Fact Finder (Attachment 3). KATS also determined which NAICS codes would be relevant by researching on the NAICS Identification Tools website. KATS determined whether a step two adjustment was needed. Defined local Market Area: Kingsport used the Tri Cities area in order to define a local market area. This area consists of the following counties: Sullivan, Hawkins, and Washington. Based on areas we have done business with in the past and anticipate future business needs, these surrounding counties have been selected. Basic Requirement: To begin the goal setting process, the recipient must first develop a base figure for the relative availability of DBEs. To determine a base figure for the relative availability of DBEs in the Kingsport Area Transit Service defined market area, the current TNUCP state-wide Disadvantaged Business Enterprise Directory was used as the numerator. The most current (2016) U.S. Census Bureau County Business Pattern data for Sullivan County, Washington, and Hawkins was divided by the total number of all firms in Sullivan, Washington, and Hawkins counties listed in the Census Bureau with relevant NAICS codes for the types of services utilized by KATS for transit system operations as well as the building of the new transit center. After the base figure was achieved, all other relative evidence was considered to see if an adjustment of this figure was needed to match the needs of the specific DBE community.! 3
4 Projections KATS projects that it will receive over $4,554,120 in FTA apportionment financial assistance during FFYs 2017, 2018, and That projection is based on the grants and financial assistance that KATS received and was awarded. Out of that figure, KATS estimates that FTA s contractible portion would be approximately $430,120. See table below for future projected money received. There is $4,124,000 Federal programmed into the transit center that will be spread out over FFY 17, 18, and 19. Project Description for FFY KATS New Transit Center-Phase 1 (breakdown of services below) Estimated Federal Funds to be spent on each project Totals 4,124,000 $4,124,000 FFY Projected Contractible Funds FTA FFY Projected Contractible Fuel Funds FTA $105,101 x 3 = $315,303 $76,545 x 3 = $229,635/2 = $114,817 Total FTA Assisted Contract Funds $4,554,120 Public Participation Part 26.45(g)(1) and (2) KATS DBE proposed goal was published in the Kingsport Times News (the only local daily newspaper) on October 3, 2016 and was allowed a thirty day comment period. A copy of the newspaper affidavit of publication is shown in Attachment 4. KATS s proposed goal is also available to the public on the KATS website at In addition to the above public outreach regarding KATS s proposed DBE goal, during the development of the proposed DBE goal KATS staff made extensive effort to consult with area officials or organizations which might have information concerning the availability of disadvantaged and non-disadvantaged businesses, the effects of discrimination on opportunities for DBEs, and KATS s efforts to establish a level playing field for the participation of DBEs. The outreach effort included holding a DBE consultation public meeting at the KATS Transit Center on October 10 at 9:00 am at 109 Clay Street. Individuals unable to attend the public meeting were invited to submit written comments.! 4
5 A meeting was held on July 17, 2017 with the Tennessee Small Business Development Center in regards to DBE Goal DBE Goal Development. Johnson City Transit, Kingsport Area Transit and Aundrea Wilcox, Executive Director of the Kingsport Office of Small Business Development and Entrepreneurship was in attendance. (See Attachment 5). This was a very productive meeting where we identified potential transit contractible opportunities. Aundrea currently keeps KATS informed of local DBE meeting opportunities as well as sending potential DBE agency leads. The search to locate all area minority and/or women s groups and organizations will include the following: contacting the Kingsport/Sullivan County Chamber of Commerce, the Bureau of Business and Economic Research at East Tennessee State University and the Tennessee Department of Employment Security; reviewing area groups/organization listings via the Internet, and the City of Kingsport s Public Library (where many groups post information about themselves); and consulting with Kingsport MPO, Bristol and Johnson City MPO Future outreach will include location of area minority and/or women s groups and organizations and area business resource bureaus/offices. These organizations will be sent letters informing them of the DBE consultation public meeting included the following: U.S. Department of Commerce Minority Business Development Agency (MBDA); Innovation Laboratory (operated by East TN State University); Tennessee Small Business Development Center. KOSBE - a local Kingsport agency that works collaboratively with other resource partners including the U.S. Small Business Association (SBA), State of Tennessee Economic and Community Development Business Enterprise Resource Office (BERO), Tennessee Department of Transportation (TDOT), Downtown Kingsport Association (DKA), SCORE, and the Tennessee Small Business Development Centers (TSBDC) to coordinate efforts to expand services and avoid duplication. Working with other transit agencies (JCT and Bristol) in order to collaborate efforts and make DBE outreach an area effort for easier participation opportunities.! 5
6 Methodology Used to Calculate Overall Goal Step 1: (c) Determine the base figure for the relative availability of DBEs. 7 Certified DBEs in Tri Cities area with relevant NAICS code = All Ready Willing and Able Firms in the Tri Cities area with relevant NAICS code The data source or demonstrable evidence used to derive the numerator was: TDOT website for TN DBE UCP codes which is updated regularly (2018 version). The data source or demonstrable evidence used to derive the denominator was: US Census Bureau American Fact Finder list (2016). KATS determined relevant DBE vendors in our region 1 by looking on the TDOT website and looking at the TNUCP certified listings. (See attachment 2). We also identified DBE vendors that we have used in the past and are currently using for continued yearly projects. KATS also researched the Census Bureau Data by NAICS codes. We took the total number of DBE firms (7) in the TDOT database for TDOT Region 1 of TN within the counties surrounding the Tri Cities area including (Hawkins, Sullivan, and Washington) where KATS is located, and divided this number (7) by the total number of firms listed by the United States Census Bureau American Fact Finder Community (2016) (See attachment 3) for the Region 1 above defined market area within these same counties (1146) firms that provide goods and services utilized by KATS for transit system needs. This calculation resulted in 7 DBEs (Region 1 TDOT DBE List with applicable NAICS codes) divided by 1146 firms with applicable NAICS codes for projected work equals or a base goal of.6 percent. Step Two (d): Are Adjustments to Base Figure Needed? (Part (d)) KATS has examined all of the evidence available in KATS s jurisdiction to determine what adjustment, if any, is needed to the base figure in order to arrive at its overall goal. No disparity studies are available for the KATS area, but based on: KATS desire is to support opportunities for DBE s to form, grow, and compete in this area (such as self-employment, education, marketing, and training. The low number of DBE vendors in the Region 1 area, specifically in our determined market area (a total of 7) found in TNUCP state-wide directory of Certified DBE Vendors for East TN.! 6
7 Past participation will not be considered due to the fact that the comparison from years prior does not include a major project such as the current transit center we are working on. Weighting Weight of each type of work by NAICS Code: All FTA-assisted projects below: Project amounts assigned relevant NAICS Code (s). Project 1: Phase 1 of KATS New Transit Center Of this total project cost, $4,554,120 will be allocated from DOT assisted funding. As identified in the table below (Attachment 1), the relative availability of DBE contractors in the market area is very limited. (Weight) X (Availability) = Weighted Base Figure Weighted Base Figure:.69% In order to determine the weight, each projected amount to be spent on each NAICS code description was divided it by the $ 4,554,120. This figure was determined by taking the FTA contractible funds available to be spent on operations $315,303 and the projected fuel cost of $114,817 and added together in order to project for the 3 year time period of FFY which came to $430,120. The amount allocated for the transit center from FTA was $4,124,000. These figures added together amounted to $4,554,120. This is how the calculations were determined. The formula resulted in no adjustment to the goal. Based on the limited availability of DBE firms in our area and the current projected scope of work, we have set our DBE goal at 1.0 percent with the expectation to review this goal as needed in accordance with project variance.! 7
8 NAICS CODE Description DBE firms in defined Market Area All Available Firms Relative Availability (%) Amount of projected FTA funds on projects % of total DOT funds (weight) Total amount of FTA funds allocated Weighted Base% Architectural Design Engineering/ Consulting Services 0 9 0% $280, % $ % % $325, % $ % Commercial Building Construction % $317, % $ % 2371 Utility System Construction % $154, % $ % Masonry % $118, % $ % Structural Steel 0 3 0% $122, % $ % Metal trusses 0 4 0% $75, % $ % Framing contractor Cabinets/ Countertops Site preparation Spray Foam Insulation Acoustical panel ceilings Insurance and finance % $56, % $ % 0 7 0% $25, % $ % % $574, % $ % 0 1 0% $2, % $ % 0 1 0% $13, % $ % % $98, % $ %! 8
9 NAICS CODE Description DBE firms in defined Market Area All Available Firms Relative Availability (%) Amount of projected FTA funds on projects % of total DOT funds Total amount of FTA funds allocated Weighted Base% Exterior insulation finish system % $15, % $ % Roofing % $198, % $ % Specialty Trade Contractors Glass and Glazing % $77, % $ % 0 8 0% $100, % $ % Windows 0 1 0% $75, % $ % Batt insulation/ Drywall % $273, % $ % Brick Stone and Related Construction Material Wholesalers 0 4 0% $154, % $ % Lumber, Plywood, Millwork and Wood panel merchant wholesalers % $19, % $ % Interior Design service Tile/terrazzo floor covering and carpet contractor 0 2 0% $66, % $ % 0 7 0% $139, % $ % Exterior & Interior Painting, wall covering % $35, % $ % Metal window and door manufacturing 0 1 0% $44, % $ %! 9
10 Plumbing and HVAC % $293, % $ % Utilities, circuits, wiring, lighting % $151, % $ % Landscaping/ fencing % $66, % $ % Concrete block and brick Screen printing apparel and textile products 0 5 0% $118, % $ % % $8, % $ % Office and Equipment Rental % $12, % $ % Repair and Maintenance Operating Supplies Uniform Rental Health Insurance % $18, % $ % 0 5 0% $21, % $ % 0 3 0% $20, % $ % % 221, % $ % Fuel 0 4 0% $229, % $ % Janitorial Services % $26, % $ % Total firms $4,554, % 0.69% Total FTA Assisted Contract Funds Combined Totals or.6 % overall DBE availability DBE goal for FY is 1%! 10
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