TRANSIT JOINT POWERS AUTHORITY FOR MERCED COUNTY
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1 TRANSIT JOINT POWERS AUTHORITY FOR MERCED COUNTY Federal Transit Administration (FTA) Overall DBE Goal Setting Methodology FFY 2018 FFY 2020 Submitted in fulfillment of: Title 49 Code of Federal Regulations Part 26 This analysis is prepared exclusively for TJPAMC; it is non transferable and is not to be duplicated.
2 Page 2 of 14 TABLE OF CONTENTS I. INTRODUCTION... 3 II. BACKGROUND... 3 III. FTA-ASSISTED CONTRACTING PROGRAM FOR FFY IV. GOAL METHODOLOGY... 4 Step 1: Determination of a Base Figure (26.45)... 4 Step 2: Adjusting the Base Figure... 6 A. Past DBE Goal Attainments... 6 B. Disparity Study... 7 C. Other Available Evidence... 7 V. PROPOSED OVERALL DBE GOAL... 7 VI. RACE-NEUTRAL IMPLEMENTATION MEASURES... 7 Fostering Small Business Participation... 9 VII. PUBLIC PARTICIPATION AND FACILITATION Attachment 1: Website notification Attachment 2: Consultative Process Summary... 13
3 Page 3 of 14 I. INTRODUCTION The Transit Joint Powers Authority for Merced County (TJPAMC) herein sets forth its Overall Disadvantaged Business Enterprise (DBE) Goal and corresponding federally prescribed goalsetting methodology for the three year Federal Fiscal Year (FFY) goal period of (October 1, 2018 through September 30, 2020), pursuant to Title 49 Code of Federal Regulations (CFR) Part 26 Participation by Disadvantaged Business Enterprises in U.S. Department of Transportation Programs. The purpose of the DBE goal setting process is to level the playing field so that DBEs can compete fairly for Department of Transportation assisted contracts, however, the program must be narrowly tailored in accordance with applicable law. II. BACKGROUND TJPAMC is a recipient of U.S. Department of Transportation (USDOT), Federal Transit Administration (FTA), funding. As a condition of receiving this assistance, TJPAMC signed an assurance that it will comply with FTA s DBE requirements. In accordance with Title 49 CFR Part 26 provisions: Participation by DBEs in USDOT Programs, TJPAMC is required to develop and submit a Triennial Overall DBE Goal for its FTA assisted projects. TJPAMC herein presents its Overall DBE Goal Methodology for FFY III. FTA ASSISTED CONTRACTING PROGRAM FOR FFY Table 1 represents TJPAMC s FTA assisted contracting program, which consists of projects considered in preparing this goal methodology. The projects, which include Construction, Professional Services and Materials/Supplies contracting opportunities, are anticipated to be awarded during the triennial period: Table 1 Project Name Total Estimated Project Cost Estimated FTA Dollar Share Estimated FTA % Share Bus Stop Maintenance 65,000 27, % Automated Vehicle Locator equipment 321, , % software 70,000 29, % annual service 45,000 19, % Route and Scheduling Software 50,000 21, % Bus/Van Wrap 30,000 12, % Marketing Firm 100,000 42, % Private Security 100,000 42, % ADA Certification 40,000 17, %
4 Page 4 of 14 Project Name Total Estimated Project Cost Estimated FTA Dollar Share Estimated FTA % Share Third Party Bus Inspection 20,000 8, % Fuel 1,870, , % Bus Wash Maintenance Services 20,000 10, % 2,731,000 1,168, % Table 2 provides a summary of the categories of work with estimated cost breakdown for each. Categories of work are groups utilizing comparable North American Industry Classification System (NAICS) codes for purposes of weighting the categories of work based on the engineer s estimates. Table 2 NAICS DESCRIPTION NAICS CODE Estimated FTA $ Share Estimated FTA % Share Other Electronic Parts and Equipment Merchant Wholesalers , % Petroleum Bulk Stations and Terminals , % Other Support Activities for Road Transportation , % Custom Computer Programming Services , % Marketing Consulting Services , % Outdoor Advertising , % All Other Business Support Services , % Security Guards and Patrol Services , % Commercial and Industrial Machinery and Equipment (except Automotive and Electronic) , % Repair and Maintenance 1,168, % IV. GOAL METHODOLOGY Step 1: Determination of a Base Figure (26.45) 1 To establish TJPAMC s Base Figure of the relative availability of DBEs to all comparable firms (DBE and Non DBE) available to bid or propose on TJPAMC s FTA assisted contracting opportunities projected to be solicited during the triennial goal period, TJPAMC followed represents Title 49 CFR Part 26 regulatory goal setting methodology reference.
5 Page 5 of 14 the prescribed federal methodology to determine relative availability. This was accomplished by assessing the California Unified Certification Program (CUCP) DBE Database of Certified Firms and the 2015 U.S. Census Bureau County Business Patterns Database within TJPAMC s market area (defined as Calaveras, Madera, Merced, San Joaquin, Stanislaus, and Tuolumne Counties) for each of the categories of work defined in Table 2. TJPAMC s local market area consists of the geographic area where a substantial majority of contracting dollars are expended and/or where the substantial majority of contractor and subcontractor bids or quotes are located. In accordance with the formula below, the Base Figure is derived by dividing the number of ready, willing and able DBE firms identified for each work category by the number of all firms identified for each corresponding work category (relative availability), weighting the relative availability for each work category by the corresponding work category weight from Table 2 (weighted ratio), and adding the weighted ratio figures together. Base Figure =,, 100 For the numerator: For the denominator: CUCP DBE Database of Certified Firms 2015 U.S. Census Bureau s Business Patterns Database A concerted effort was made to ensure that the scope of businesses included in the numerator was as close as possible to the scope included in the denominator. The result of the Base Figure calculation is shown in Table 3 as follows: Table 3 NAICS DESCRIPTION NAICS CODE NAICS % DBEs ALL Firms Weighted Ratio Other Electronic Parts and Equipment Merchant Wholesalers % % Petroleum Bulk Stations and Terminals % % Other Support Activities for Road Transportation % % Custom Computer Programming Services % % Marketing Consulting Services % % Outdoor Advertising % % All Other Business Support Services % %
6 Page 6 of 14 NAICS DESCRIPTION NAICS CODE NAICS % DBEs ALL Firms Weighted Ratio Security Guards and Patrol Services % % Commercial and Industrial Machinery and Equipment (except Automotive and Electronic) Repair and Maintenance % % Base Figure (i.e., Sum of Weighted Ratios for all Work Categories) 0.8% Step 2: Adjusting the Base Figure Upon establishing the Base Figure, TJPAMC reviewed and assessed other known evidence potentially impacting the relative availability of DBEs within the market area, in accordance with prescribed narrow tailoring provisions set forth under 49 CFR Part 26.45: Step 2; DBE Goal Adjustment guidelines. Evidence considered in making an adjustment to the Base Figure included Past DBE Goal Attainments and Other Evidence, as follows: A. Past DBE Goal Attainments Historical DBE participation attainments provide demonstrable evidence of DBE availability and capacity to perform on TJPAMC projects. The projects anticipated to be awarded during the triennial period are substantially similar to those awarded in the recent past. TJPAMC calculated past DBE participation attainments for the three (3) federal fiscal years, for which DBE attainment data is available. The table below reflects the demonstrated capacity of DBEs (measured by actual historical DBE participation attainments) on FTA assisted contracts awarded by TJPAMC within the last three (3) federal fiscal years. Table 4 FEDERAL FISCAL YEAR FTA DBE PARTICIPATION % 2014/ % 2015/ % 2016/ % Median DBE Participation Within the Last Three (3) Years 0.0% 2 Through March 31, 2017.
7 Page 7 of 14 TJPAMC added the historical mean of past participation (0.0%) to the base figure (0.8%) and divided by 2 to arrive at the adjusted goal of 0.4%. B. Disparity Study TJPAMC is not aware of any regional DBE disparity studies for similar agencies at this time. TJPAMC uses a strictly race neutral DBE program. C. Other Available Evidence TJPAMC is not in possession of other information that would have an impact on the DBE goal assessment. V. PROPOSED OVERALL DBE GOAL The Final Proposed Overall DBE Goal for FFY for TJPAMC s FTA assisted contracts is 1 3 %. As a part of the prescribed goal setting methodology, TJPAMC must project the percentage of its Proposed Overall DBE Goal that can be met utilizing race neutral and race conscious measures. Race Conscious & Race Neutral Projection TJPAMC intends to use to use race neutral methods to meet the overall DBE goal of 1% for FFY in accordance with Title 49 CFR Part VI. RACE CONSCIOUS & RACE NEUTRAL PROJECTIONS DBE Adjusted Base Figure 1% Race Conscious Component 0% Race Neutral Component 1% RACE NEUTRAL IMPLEMENTATION MEASURES TJPAMC is currently implementing a number of race and gender neutral remedies to outreach and promote the participation of DBEs and small businesses in TJPAMC s FTA assisted contracting program. TJPAMC plans to continue or implement the following race neutral measures for FFY and will continue to explore other options for consideration. TJPAMC will: Arrange solicitations, times for the presentation of bids, quantities, specifications, and delivery schedules in ways that facilitate DBE and other small business participation. TJPAMC will also hold conferences, which include a networking component to promote teaming 3 Rounded to a whole number.
8 Page 8 of 14 opportunities between prospective prime contractors and the DBE and Small Business contracting community. Organize large contracts into smaller contracts when feasible, which would make contracts more accessible to small business, and would not impose significant additional cost, delay or risk to TJPAMC. Identify components of the work which represent subcontracting opportunities and identify the availability of DBE subcontractors to participate in proportion to total available subcontractors. Contractors will be encouraged to consider subcontractors for components of the work for which there is a known supply of ready, willing, and able subcontractors, including DBE subcontractors, in preparing their bids. Refer interested parties to SBA resource for: technical assistance in orienting small businesses to public contracting procedures; use of the Internet; business development assistance; and assistance in bid preparation. Refer interested parties to SBA resource for: assistance in overcoming limitations such as inability to obtain bonding or financing (e.g., by such means as simplifying the bonding process, reducing bonding requirements, eliminating the impact of surety costs from bids, and providing services to help DBEs, and other small businesses, obtain bonding and financing). Solicit DBEs and other small businesses participation by carrying out information and communication programs on contracting procedures and specific contract opportunities (e.g., ensuring the inclusion of DBEs, and other small businesses, on recipient mailing lists of bidders; ensuring the dissemination to bidders on prime contracts of lists of potential subcontractors; provision of information in languages other than English, where appropriate). Actively promote the Small Business conferences, programs, and support services offered by other agencies that have established DBE and Small Business Programs as a supportive service to help develop and improve immediate and long term business management, record keeping, and financial and accounting capability for DBEs and other small businesses. Advise its contracting community of the online directory of certified DBEs, found at the California Unified Certification Program website: Advise the contracting community of the available small businesses certified by the California Department of General Services (DGS) and found at the following url: Administrative Services will maintain a list of sources for information on DBEs in. The list will include sources for information on local DBEs that can be obtained from California Department of Transportation, other TJPAMC member jurisdictions, and other organizations that maintain DBE information relevant to TJPAMC procurement needs. All TJPAMC will be responsible for procuring goods or services are required to confer with the Administrative Services Department staff and/or the DBELO prior to issuing IFBs or RFPs to obtain information on identifying DBEs who are capable of providing the desired services or products.
9 Page 9 of 14 TJPAMC is responsible for procuring goods or services will identify sources of information identifying DBEs prior to issuing IFBs or RFPs, as applicable. The DBELO will be responsible for maintaining all records for each procurement that indicate the names of all firms who received IFBs or RFPs or informal solicitation requests, the bids or proposals received, the ranking of the bids or proposals received, and the name(s) of the firm(s) awarded the contract. TJPAMC s will be responsible for coordinating the procurement to ensure that DBEs have the maximum opportunity to submit bids or proposals. Upon receipt of grants or contracts where subcontracting is required, TJPAMC will notify identified DBEs of TJPAMC DBE Participation Policy and possible business opportunities with TJPAMC. TJPAMC encourages participation by DBE firms and by joint ventures between DBE and non DBE firms in TJPAMC contracts and subcontracts to the maximum extent practicable. TJPAMC will state this policy in its RFPs and IFBs and will state its willingness to help any non DBE firm identify DBEs for joint venture or subcontract opportunities. TJPAMC will direct DBEs to state and local government agencies that provide technical assistance and other services to facilitate DBE participation in TJPAMC contracts and subcontracts. Fostering Small Business Participation TJPAMC has incorporated the following non discriminatory small business element to its DBE program, in order to facilitate competition on DOT assisted public works projects by small business concerns (both DBEs and non DBE small businesses). TJPAMC will structure contracting requirements to facilitate competition by small businesses by requiring prime contractors to specify elements of work that small businesses can perform and to provide subcontract opportunities for those elements to DBEs and other small businesses. In addition, TJPAMC commits to the following: Organize large contracts into smaller contracts when feasible, which would make contracts more accessible to small business, and would not impose significant additional cost, delay or risk to TJPAMC; Assist in overcoming limitations in bonding and financing by referral to an SBA resource; Providing business development assistance by referral to an SBA resource that will provide: instructions for preparation of bid specifications; procurement policy procedures and general bid requirements; information on specific reasons for unsuccessful bids through debriefing sessions; instruction on job performance requirements; and referrals to firms who offer advice and assistance through mentor protégé programs Facilitating introductions to TJPAMC and other U.S. DOT recipients contracting activities;
10 Page 10 of 14 Providing outreach and communications programs on contract procedures and contract opportunities to ensure the inclusion of small businesses; Consider setting race neutral small business goals on DOT funded contracts; Consider setting contract set asides for small business on DOT funded contracts. VII. PUBLIC PARTICIPATION AND FACILITATION TJPAMC issued a Public Notice on TJPAMC s website (Attachment 1), publishing the Draft Proposed FTA Overall DBE Goal Setting Methodology for FFY The notice informed the public that the proposed goal and rationale were available for inspection at TJPAMC s principal office during normal business hours for 30 days following the date of the Public Notice, and that TJPAMC would accept comments on the goal analysis for 30 days from the date of the Public Notice. In accordance with Public Participation Regulatory Requirements of Title 49 CFR Part 26, minority, women, local business associations, and community organizations within the market area were contacted and provided an opportunity to review the triennial goal analysis and provide input. TJPAMC gave full consideration to all comments and input received as a part of this process and assessed its impact on the goal setting methodology. The summary of all contact and comments received can be found in Attachment 2.
11 Page 11 of 14 Attachment 1: Website notification
12 Page 12 of 14
13 Page 13 of 14 Attachment 2: Consultative Process Summary Organization Contact Information Merced County Hispanic Chamber of Commerce 800 W 20th St, Suite D Merced, CA (209) info@mercedhcc.com San Joaquin County Hispanic Chamber of Commerce 7500 West Lane Stockton, CA (209) info@sjchispanicchamber.com African American Chamber of Commerce San Joaquin 42 N. Sutter Street Ste. 218 Stockton, CA (209) aaccofsj@gmail.com Status 7/17/2017 sent. 7/18/2017 Called and spoke with receptionist about triennial DBE goal and how their assistance may be requested. 7/25/2017 2nd sent. 7/26/2017 Called and left voic . 7/27/2017 3rd sent 7/27/2017 Spoke with Rene from Merced County Hispanic Chamber of Commerce. 7/17/2017 sent. 7/18/2017 Called and left voic . 7/25/2017 2nd sent. 7/26/2017 Called and left voic . 7/27/2017 3rd sent with goal methodology attached. 7/28/2017 Called and spoke with secretary. She will relay the message to the CEO who is currently out of the office. 7/17/2017 sent. 7/18/2017 Called and phone number listed is no longer active. 7/25/2017 2nd sent. Comments Rene agrees with the goal; however, he wanted to confirm the decision with his supervisor. Rene left a message stating that the Triennial Goal is fair and understandable based on the goal from last year. None None
14 Page 14 of 14 Organization Contact Information Stanislaus County Hispanic Chamber of Commerce th St. #2 Modesto, CA Central Valley Hispanic Chamber of Commerce 1301 L Street Suite 1 Modesto, CA Phone: (209) info@cvhcc.com Status 7/17/2017 sent and received undeliverable notification. Submitted through website. 7/18/2017 Called and phone number listed is no longer active. 7/17/2017 sent. 7/18/2017 Called and left voic . 7/24/2017 Received response from Teresa Kinney & sent response on 7/25. 7/25/2017 2nd sent. 7/26/2017 Called and left voic . 7/27/2017 Sent with available times to review goal methodology & provided methodology document. Teresa Kinney left voic with phone number and availability for call. 7/28/2017 Called and left voic to confirm availability for call to discuss goal methodology. Teresa is unable to provide comment until 8/1/2017. None None Comments
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