HILLSBOROUGH COUNTY AVIATION AUTHORITY THREE YEAR OVERALL DISADVANTAGED BUSINESS ENTERPRISE GOAL Federal Fiscal Years 2017, 2018 and 2019
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1 I. Introduction HILLSBOROUGH COUNTY AVIATION AUTHORITY THREE YEAR OVERALL DISADVANTAGED BUSINESS ENTERPRISE GOAL Federal Fiscal Years 2017, 2018 and 2019 The United States Congress has determined that certain groups of people described as Disadvantaged Business Enterprises (DBEs) have been disadvantaged due to discrimination in the transportation industry. It is therefore the policy of the Hillsborough County Aviation Authority (Authority) that small businesses owned and controlled by socially and economically disadvantaged individuals referred to by Congress as DBEs will have a fair opportunity to compete for and participate in the performance of construction, architectural, engineering, and professional services contracts procured by the Authority funded in whole or in part by the United States Department of Transportation (USDOT). As a recipient of USDOT financial assistance, the Authority is required to set an overall goal for DBE participation in USDOT assisted contracts on a triennial basis. In accordance with 49 CFR Part 26, the overall goal must be prepared using a two step process. The recipient must first determine a base figure for the relative availability of DBEs in the relevant market area. Second, the recipient must examine all relevant evidence available to determine what adjustment to the base figure, if any, is needed in order to arrive at an overall goal. The final adjusted figure is the recipient s overall goal, which represents the proportion of federal transportation funding the recipient is expected to allocate to DBEs during the subsequent three fiscal years. Once the adjusted overall goal is determined, the regulations require considering what portion of the goal will be met by race neutral and race conscience measures. II. Summary of Proposed Goal for FY 2017, 2018 and 2019 A. Overall Goal The Authority s projected overall three year goal for federal FY 2017, 2018 and 2019 is 12.3% of the anticipated federally assisted Airport Improvement Program (AIP) project dollars. The fiscal years cover the time period from October 1, 2016 to September 30, B. Race Neutral/Race Conscious Breakout The Authority projects an overall goal of 12.3%. It anticipates it will meet 2% of its overall goal through race neutral measures and 10.3% of its overall goal through raceconscious contract goals. C. Dollar Amount of Overall Goal The Authority expects to let approximately $28,428,660 in federally assisted AIP project dollars over FY 2017, 2018 and Based on an overall goal of 12.3%, the Authority 1
2 expects to spend approximately $3,496,725 for DBE firm services during the three year fiscal period. III. FY 2017, 2018 and 2019 A list of the Authority projects anticipated to receive federal financial assistance in the form of AIP funds in federal FY 2017, 2018 and 2019 is contained in Appendix A. IV. Methodology The methodology described in 49 CFR 26.45(c)(1) and (c)(3) was used to determine the base figure for the availability of ready, willing and able DBEs as compared to the availability of all businesses to participate on USDOT assisted contracts in the Authority s Market Area. A. Determination of the Authority s Market Area The Authority s Market Area was determined to be Hillsborough, Pinellas, Hernando and Pasco counties based on the locations in which the Authority spent the substantial majority of its federally assisted contracting dollars during the past three fiscal years (FYs ) (Table 1). Over 89% of the total dollars expended for federally assisted projects have been awarded to this market area during the FY 2014, 2015 and 2016 time period. Table 1: Location Where Contracting Dollars Spent Location of Contractors/ Bidders USDOT Assisted Project Dollars Expended Percentage of Dollars Expended Hillsborough $ 19,842, % Pinellas $ 13,691, % Hernando $ 1,774, % Pasco $ 735, % Other $ 4,340, % Total $ 40,383,823 B. Step One Base Figure of DBE Relative Availability Pursuant to 49 CFR 26.45(c)(1) and (c)(3), to arrive at the Base Figure, the Authority elected to use the Florida Unified Certification Program (UCP) DBE Directory to determine the number of ready, willing and able DBEs in the Authority s market area by trade using North American Industry Classification System (NAICS) codes. Using the Census Bureau's County Business Pattern (CBP) database, the Authority determined the number of all ready, willing and able businesses available in the Authority s Market Area that will perform work in the same NAICS codes. The Authority used the most refined data available within the NAICS codes. The following are the projected amounts anticipated to be spent in each trade for the projects identified in Appendix A for FY 2017, 2018 and 2019: 2
3 NAICS Codes Table 2: Firms in Market Area by NAICS Codes Trade Description Highway, Street, Bridge Const. Number of DBE Firms Number of All Firms % DBE Availability (Number of DBE Firms/Number of All Firms) % Est. Value of Trades Weighted DBE Availability Est. Trade Amount % 08%.020 $ 577, Concrete % 30%.007 $ 203, Structural Steel % 07%.018 $ 497, Electrical % 04%.001 $ 19, Site Prep % 30%.034 $ 953, Specialty Trade % 02%.002 $ 55, / Trucking/ Hauling % 08%.003 $ 88, Engineering % 02%.001 $ 39, / Surveying % 01%.001 $ 28, Materials Testing % 07%.004 $ 110, Landscaping % 01%.0001 $ 2,206 Weighted Base Figure: 9.06% Total Est. DBE Dollars: $2,576,083 To ensure that the Step One Base Figure is as accurate as possible, the relative availability of firms was weighted by the type of work to be performed. The methodology of weighting the base figure to determine the overall goal is recommended in the Federal Aviation Administration s Tips for Goal Setting in the DBE Program. This method was performed by dividing the number of DBE firms (numerator) by the number of all firms, including DBE and non DBE firms, (denominator) and then multiplying the result by the percentage of work in each trade category as estimated by the Authority s Planning and Development Department for upcoming projects. The resulting Weighted Base Figure is 9.06%, which represents the total weighted DBE availability. The estimated trade was derived by taking the total estimated DBE dollars and multiplying it by the weighted DBE availability to determine the amount of federal dollars estimated to be expended per trade. 3
4 C. Step Two Adjustment Step Two of the goal calculation process is intended to adjust the Step One Base Figure to determine, as precise as possible, the DBE participation the Authority would expect in the absence of discrimination. The Authority considered the following factors in making the Step Two Adjustment: 1. Past Participation Based on past DBE participation during the previous three year period on three projects similar to the projects identified in Appendix A, the Authority s median DBE achievement was 15.6% as shown in Table 4 below. The Authority assumes that the difference between the DBE Goal and the Actual DBE Participation is one approximation of Race Neutral Participation. Note: The project names are different, but the tasks are similar. Table 3: Past DBE Participation on Similar Past Projects Project Original Project Cost DBE Goal Actual DBE Participation Race Neutral Participation ( ) Runways 1L/19R & 10/28 Joint and Slab Rehabilitation $3,652, % 9.9% 0.4% ( ) Runway 18 36, TW A, Hangar Taxi lanes & Parking Lot Rehab. $ 138, % 15.6% 2.0% ( ) Runway & Taxiway A Rehab. $ 226, % 23.4% 16.4% Median 15.6% 2.0% The data in Table 3 was used to adjust the Step One Base Figure by taking the average of the median past participation figure shown in Table 2 (9.06%) and the Step One Base Figure shown in Table 3 (15.6%). Average of Weighted Base Figure (9.06%) and Actual DBE Participation Median Factor (15.60%) = 24.66/2 = 12.3% (Overall Goal). 2. Consultations Before establishing the FY 2017, 2018 and 2019 DBE goal, DBE firms, minority and small business organizations and community organizations were consulted to solicit information and input concerning the following factors: a. The availability of disadvantaged and non disadvantaged businesses; 4
5 b. The effects of discrimination on opportunities for DBEs; and c. The Authority s efforts to establish a level playing field for the participation of DBEs. The Authority held several public consultation meetings to discuss the goal setting methodology and the proposed DBE goal. The purpose of the meetings was to receive input from minority, women s and general contractors groups, community organizations, and other officials or organizations during the goal setting process to be used to adjust the Step One Base Figure. However, comments and questions received did not provide specific information regarding the above listed factors, therefore, no adjustment to the Step One Base Figure was made. The consultations are documented and attached as Appendix B. 3. Disparity Study The Authority completed a Disparity Study Update in 2015 which included a statistical analysis and evaluation of minority and woman owned business enterprise participation in the area of federally funded construction and construction related prime contracts and sub contracts. Since the Study does not specify the relative availability of firms by NAICS codes, no adjustment to the base figure will be made based on the Disparity Study Update. D. Race Neutral and Race Conscious Breakout 1. Calculation Pursuant to 49 CFR Part 26, the Authority is required to meet the maximum, feasible portion of its overall goal by using race neutral means of facilitating DBE participation. The Authority estimates that in meeting its overall goal of 12.3%, it will obtain 2% from race neutral participation and 10.3% through raceconscious means. The following is a summary of the basis of the estimated race conscious DBE participation: Based on a review of DBE participation achievement on three past projects (Table 4), similar to the future projects identified in Appendix A, the race neutral median was determined to be 2.0%. In addition, one of the three projects, Runway and Taxiway A Rehabilitation, was awarded to a prime DBE firm, Civil Site Constructors Inc. The DBE participation of 23.4% achievement through the use of a DBE prime is considered race neutral achievement. The past DBE participation suggests the Authority can achieve DBE participation for similar projects as identified in Appendix A for FY 2017, 2018, and 2019 through raceneutral means. In support of its race neutral efforts, the Authority s DBE Policy and Program was amended in June 2016 to institute new and comprehensive initiatives for small businesses certified by appropriate certifying agencies through the use of 5
6 small business subcontract goals and sheltered market procurements for projects less than $1 million. To foster additional participation of small businesses, including DBE firms as prime contractors, the Policy amendments also established a plan to unbundle larger projects early in the project development process into smaller subparts for which small businesses and DBEs will be more likely to be able to compete. Also, ready for immediate implementation are new efforts to encourage vendor rotation list of prequalified small businesses to provide segmented portions of work on a rotating basis. To help small companies meet bonding requirements, the Authority also has implemented a surety assistance program. In consideration of the amount by which the Authority exceeded goals in the past; past participation by DBE prime contractors; and newly instituted policy changes to improve race neutral methods, the Authority expects race neutral participation of at least 2%. The Authority will continue to adjust the estimated breakout of race neutral and race conscious participation as needed to reflect actual DBE participation and will track and report race neutral and raceconscious participation separately. 2. Race Neutral Means to Increase DBE Participation Race neutral efforts are means the Authority uses to increase DBE participation which include but are not limited to the following: Encouraging prime contractors to subcontract portions of work that they might otherwise perform with their own forces. Ensuring availability of the FLUCP s DBE directory through electronic means to the widest universe of potential prime contractors. Using the Authority s website and Supplier Portal Directory to announce bid opportunities and post all invitations to bid, requests for proposals and requests for qualifications documents for greater convenience to contractors and all other interested parties. Transmitting notices of outreach activities via and other online services. Recognizing contractors and consultants who exceed DBE utilization on contracts. 3. DBE Program Outreach Efforts The Authority has incorporated various outreach activities into its DBE program. For example, the Authority communicates its overall DBE goal and individual project goals to registered suppliers, including DBEs, via and at all pre bid and pre proposal meetings. Pre bid and pre proposal meetings are attended by the general public, which includes prime contractors, sub contractors, DBE subcontractors, suppliers and DBE suppliers. In addition to pre bid and pre proposal meetings, DBE outreach presentations and contacts were made with the 6
7 following groups to explain upcoming projects and DBE goals as well as answer any questions concerning the DBE policy and program: Minority Enterprise Development (MED) Week Florida Unified Certification Program Annual Meeting Airport Minority Advisory Council (AMAC) Conference Annual Government Small Business Conference National Institute of Governmental Purchasing (NIGP) Reverse Trade Show Florida Diversity Business Council Trade Fair Hillsborough County Open Doors 2016 Reverse Trade Show Moffitt Supplier Diversity Day Vendor Fair Pinellas Suncoast Transit Authority (PSTA) and Hillsborough Area Regional Transit Authority (HART) DBE and Minority Business Outreach Saturday Morning Breakfast Group (SMBG) meeting Tampa Bay Community Advocacy Committee (TBCAC) meeting Conference of Minority Transportation Officials (COMTO) chapter meeting National Association of Black Women in Construction (NABWIC) Chapter meet and greet 4. Contract Goals V. Publication of the DBE Goal The Authority will only use contract goals to meet any portion of the overall goal that is not met by using race neutral means. Further, contract goals will be established so they will cumulatively result in meeting any portion of the overall goal that is not accomplished through the use of race neutral means. The Authority will establish contract goals only on those USDOT assisted contracts that have subcontracting possibilities. The Authority may not establish a contract goal on every contract, and the size of contract goals will be adapted to the circumstances of each such contract, e.g. the location of the work, and the availability of DBEs to perform the particular type of work. The Authority will express its contract goal as a percentage of the total dollar amount of a USDOT assisted contract. The Authority recognizes the importance of public participation in the DBE goal setting process. The Authority published notice of its proposed FY 2017, 2018 and 2019 DBE goal on the Authority s website, on its Public Notice Bulletin Board, and in three local newspapers: Tampa Bay Times, Florida Sentinel Bulletin and La Gaceta. The goal and methodology also was available for public inspection at the Authority s Administration Offices during normal business hours. Comments on the goal and methodology were accepted for a period of 30 days from the date of the notice. 7
8 APPENDIX A FY AIP PROJECTS FY 2017 AIP PROJECTS Project Estimated Cost AIP Grant Totals Access Control System Upgrades TEA $ 771,700 Taxiway W from W 1 to W 5 and TW J Asphalt $ 17,694,900 Pavement Reconstruction with Concrete TPA $ 30,900 $ 9,194,500 FY 2018 AIP PROJECTS Project Estimated Cost AIP Grant Totals Taxiway J east of runway 19L Concrete Joint and $ 408,500 Slab Rehabilitation TPA Runway 5/23 Rehabilitation (Seal Coat) TEA $ 2,910,700 $ 306,300 $ 2,619,600 FY 2019 AIP PROJECTS Project Estimated Cost AIP Grant Totals Taxiways A & V and ramps B, C, D and $ $ 42,560,700 E Concrete Pavement Replacement TPA Runway 5/23 and Associated Taxiway Lighting $ 830,000 Refurbishment TEA Runway 5/23 and Associated Taxiway Signage $ 877,300 Rehabilitation TEA $ 15,377,360 $ 450,000 $ 450,000 TOTAL AIP GRANT DOLLARS $ 28,428,660 8
9 APPENDIX B FY DBE GOAL CONSULTATION Public consultation on the FY Three Year Overall DBE Goal was held: Saturday Morning Breakfast Group Meeting July 9, 2016 Tampa Bay Community Advocacy Committee Meeting July 27, 2016 General Public Meeting August 17, 2016 Conference of Minority Transportation Official Central Florida Chapter Meeting August 30, 2016 The following comments and questions were received during the public comment and goal consultation: The Authority should consider lowering bid minimum qualifications and criteria to help new firms complete. The Authority should consider joint ventures or horizontal teaming on projects. The Authority should conduct debriefing meetings after contract award to allow bidders to ask questions. In comparison to the current goal, the overall DBE goal percentage has gone down from 12.4% to 12.3%. The Authority should recognize that even a 0.1% goal reduction is money being taken away from DBEs. Contractors that have trouble finding certified DBEs to perform goods/services on contracts will typically use national contracts in lieu of local businesses. It would benefit the local DBEs to include goods/services as part of a goal. Goals should be considered on maintenance contracts. Does the goal include material supplies? Material supplies are included in the estimated trade amount. Why is good faith not included in goal methodology? Good faith is not a function of the goal setting methodology. Good faith describes efforts to meet a contract goal. In Step 2 of the goal methodology, explain why the median of past participation is used instead of the average or mean? The Authority elected to use the median, instead of the average or mean, of past participation to exclude outliers (abnormally high or abnormally low) past participation percentages. Explain how a new company can gain more exposure and have better opportunities to work at the airport? Some suggestions include networking, building relationships and attending pre bid/preproposal meetings in order to meet prime contractors. Explain how the Authority holds companies accountable for sharing the work. Regular monitoring assures that contractual items are performed in accordance with specifications, including DBE/WMBE participation. Monthly DBE/WMBE participation reports must be submitted by the contractor. How does the overall goal translate into employment for African American workers? The Authority has participated in job fairs to promote employment on Authority s Master Plan construction projects. 9
10 Is there a list of certified DBE companies available to help prime contractors and subcontractors connect to do work at the airport? The DBE Directory can be used to help prime contractors locate DBE firms. If a prime uses one trade for meeting a project goal, is that the only trade that is required in order to meet the goal? Primes may use other trades to perform commercially useful functions of the project to meet the goal. What is a sheltered market? A sheltered market is a USDOT funded contract with an estimated contract award amount of less than $1 million that is evaluated to be set aside for competition by small business firms only. Where can information be found regarding dollars paid to DBE firms? A detailed monthly summary of dollars projected, committed and paid to date to DBE/WMBE firms on the Authority s Master Plan projects can be found on the Authority s website. 10
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