FY 2009 DBE/Supportive Services Program

Federal Highway AdministrationOffice of Civil Rights FY 2009 DBE/Supportive Services Program Prepared by: Vickie Anderson, DBE/SS Program Coordinator; FHWA Presented by: Candace Groudine, Director, External Civil Rights Programs; FHWA August 2009

DBE/SS Program as of 8-09 • # of Proposals received: 33 • # of States submitting proposals: 33 • Total $amount requested: $15,777,233.37 • Total $amount available: $10,323,483.84 • Cap last year: $750,000 • Cap this year: $900,000-$1 million

Needs Assessment Purpose Statement Program Goals Objectives and Action Plan Performance Period State Transportation Agency Involvement Project Personnel Partnerships Budget and Financial Requirements Basis of Payment Evaluation and Monitoring Plan Reporting Requirements Federal Highway AdministrationOffice of Civil Rights Statement of Work Components

Federal Highway AdministrationOffice of Civil Rights Needs Assessment • To assist in writing your Statement of Work, ask the following questions: • Why are we implementing this program? • What current and future Federal-aid highway construction projects have been identified in the community? • What Federal-aid highway construction contracts and subcontracts have been identified based on the current and future jobs cited in question 2?

Federal Highway AdministrationOffice of Civil Rights Needs Assessment – What skills/qualifications will be needed for the identified contracts and subcontracts cited in question 3? • What are the current barriers to DBE firms participating on these Federal-aid highway construction projects and jobs? • What programs can be designed using information gathered in 4 and 5?

Federal Highway AdministrationOffice of Civil Rights Needs Assessment • Identifying needed DBE Services: • Identify the DBE firms’ current qualifications to perform the specific tasks required for the identified contracts. • Develop a list of tasks and competencies needed by the contractors/subcontractors in order to complete the job (identify established performance expectations). • Identify the barriers to job performance (what is the difference between the current level of performance and the established performance expectations).

Federal Highway AdministrationOffice of Civil Rights Needs Assessment • Identify what tasks/competencies are the most important for achieving the DBE/SS goal. • Develop DBE/SS programs that bundle the identified tasks and, therefore, provide services that will reduce or eliminate the barriers identified.

Federal Highway AdministrationOffice of Civil Rights Needs Assessment • Annual data can be collected from the following participants: • DBE firm participants • DBE service providers • Construction company owners • State construction and project engineers • Other DBE related entities/participants including unions, and/or community based organizations

Federal Highway AdministrationOffice of Civil Rights Needs Assessment • Instruments that can be used to Collect Data • Surveys • Internal data collection • Interviews • Evaluations (e.g., of training) • Observations • Focus groups

Federal Highway AdministrationOffice of Civil Rights Purpose Statement • Example of a purpose statement ABC State is requesting $XXX,XXX in funding to enhance the growth and development of 50 under-utilized DBE firms by administering an Entrepreneurial Development Program to increase the capacity of participating DBE firms to successfully participate on highway contracts.

Federal Highway AdministrationOffice of Civil Rights Program Goals • DBE Program Goals: • Can be written in one to two sentences • Should be clear and concise • No need to include measurements or timelines (these should be included in the program objectives) • Goals should identify the targeted population.

Federal Highway AdministrationOffice of Civil Rights Program Goals • A few examples of Program Goals: • Provide business enhancement/development services to the underutilized DBE firms through Entrepreneurial Development Institute. • Provide targeted assistance to the DBE firms in securing bonds by developing a Bonding Program. • Establish Mobilization and Micro Lending Program to provide loans to DBE firms for contract start up and emergency working capital needs. • Provide assistance to DBE firms in loan packaging and financial management by creating Loan and Finance Program. • Schedule and coordinate individualized training sessions with certified DBE firms to enhance technical expertise/credentials of DBE principals in areas such as cash management, business planning, independence, subcontract language, and legal issues (mainly for Basic level DBE firms).

Federal Highway AdministrationOffice of Civil Rights Action Plan • Action plan should be detailed but easily understood: • What services will DBE firms receive? • What will the DBE firms do? • What benefits will the DBE firms gain from the services? • How will the success and completion of the particular action be measured?

Federal Highway AdministrationOffice of Civil Rights Results-Oriented Objectives • Writing Program Objectives in Specific, Measurable Terms with Time Frames for Achievement • STEP 1. State each identified program goal. • STEP 2. Determine what services/activities the DBE/SS program will provide in order to reach each goal. • STEP 3. Determine a realistic and attainable measurement the program should achieve by the end of the performance period. • STEP 4. Identify the specific time (date) each objective will be measured and achieved.

Federal Highway AdministrationOffice of Civil Rights Examples of Results-Oriented Objective Technical Assistance Program • Objective: By March 2010, provide technical assistance to develop and improve the capabilities of at least 150 DBE firms in technical skills in order to increase the number of DBE firms bidding on Federal-aid highway projects. Action Plan: ACTIVITY Provide DBE firms with estimating and bidding assistance to improve their success rate in obtaining contracts. PERFORMANCE MEASURE • # of DBE firms assisted * # of bids/quotes submitted on State Highway projects * # of DBE firms assisted that were awarded subcontracts * Increase the dollar amount and/or number of bids won by firms participating in the program. * # of Federal-aid contracts awarded * # of DBE firms that won contracts * # of Federal-aid subcontracts awarded * # of DBE firms that won Federal-aid subcontracts

Federal Highway AdministrationOffice of Civil Rights Example of a Timeline • The timeline portion of the scope of work should include the following information: • Identify all key tasksor activities that will be carried out to implement the program during the performance period. • Provide a realistic timeframe identifying when specific tasks will occur. • Identify evaluation and monitoring instruments that will be used to measure activities and provide dates for administration of these instruments. • Identify dates for submission of evaluation and monitoring data results to FHWA (usually these are required on a monthly or quarterly basis, and an annual report should be submitted within 60 days of the program’s completion).

Federal Highway AdministrationOffice of Civil Rights Budget Summary • The budget summary is a skeletal outline showing how the DBE/SS program’s total cost is allocated to line items. The budget summary should provide: • the main budget line item categories • identification of in-kind funds • the total amount for each category in table format

Federal Highway AdministrationOffice of Civil Rights Budget Justification • Follows the budget summary table • Include explanation of all items/services discussed in the statement of work

Federal Highway AdministrationOffice of Civil Rights Budget Categories • Performance-based Budget: • A performance-based budget is useful because it identifies specific tasks and the dollar value associated with each. The tasks are specifically related to the Statement of Work, which is based upon a needs assessment. Payments are made based upon the completion of specific tasks. A performance-based budget also serves as a good monitoring tool because on a monthly or quarterly basis, it can be determined how much of the budget was expended; duration of the activity; and the dollar value of providing the most needed services. • Operational-based Budget: • An operational budget includes line items of all expenses that are not tied to specific tasks. Program funds can be used to support the salary of a full-time or part-time coordinator used exclusively to administer an “in-house” DBE/SS program.

Federal Highway AdministrationOffice of Civil Rights Overhead Expenses • What does the overhead costs include (salaries, etc.), or how did the State arrive at its overhead rate (percentage of salaries, etc)? • Who has reviewed or approved the rate the STA is using? • If the overhead rate appears unrealistic (as compared to services being provided) negotiating a reasonable rate should be encouraged.

Federal Highway AdministrationOffice of Civil Rights Expenses FHWA Recommends NOT Funding • Salaries for a STA staff to administer the DBE program • Training for STA staff • Equipment (computers, faxes, copiers, furniture) • Rent • Website development/maintenance

Federal Highway AdministrationOffice of Civil Rights Evaluation/Monitoring Plan • Your evaluation/monitoring plan should include: • A review of each program objective and a narrative explaining how you will determine whether each objective has been achieved (what evidence will demonstrate that program objectives have been achieved). • The type of information you will collect for evaluation purposes. • Identification of the frequency for which the information will be collected (monthly or quarterly). • Identification of the person(s) responsible for collecting the information. • Identification of the person(s) responsible for analyzing the information and reporting the results to FHWA.

Federal Highway AdministrationOffice of Civil Rights Evaluation/Monitoring Plan • Examples of monitoring tools: • Questionnaire sent to DBE firms • Progress reports and feedback • Onsite visits to DBE firms • Surveys to evaluate DBE satisfaction • Analysis of participant’s beginning status vs. end status • On-going and routine contacts with DBE/SS consultants • DBE evaluation of supportive service provider for performance period (at least annually). Evaluations should be sent to the State Transportation Agency. For in-house programs, the evaluation should be sent to the Federal Highway Administration Division Office .

Federal Highway AdministrationOffice of Civil Rights Reporting Requirements • Monthly/Quarterly reports should: • Identify each objective and progress achieved as of the reporting date (Data showing progress should be measurable and include numerical data, include the number of participants the program impacted, how the program impacted them, what overall difference the program made, etc.) • Identify all successes to date for the DBE/SS program (What did you accomplish?) • Identify any problems to date for the DBE/SS program and offer possible solutions in overcoming these problems (What changes could be made to improve the program? Is this program worth funding again?). • Include any additional information (i.e., questions, concerns, improvements/recommendations for administration of the program, etc.) that might be helpful.

Federal Highway AdministrationOffice of Civil Rights STA Supplemental Efforts • Develop a list of training needs through a survey of certified and potential DBE firms. • Develop and maintain a list of qualified trainers. • Identify and develop a list of potential sources of assistance to DBE firms. • Arrange for the use of the STA’s facilities and equipment. Track and record the type of training and assistance requested and provided to each DBE. • Design and administer DBE/SS programs that fit the needs of local DBE firms.

Federal Highway AdministrationOffice of Civil Rights STA Supplemental Efforts • Market the program to the DBE community including maintenance of a website that DBE firms (and others) could access for on-line training. • Provide access to construction plans for upcoming projects (to save money, DBE firms could review plans and copy only those sheets that they are interested in). • Provide timely notification (email, telephone, fax, newsletter, etc.) to DBE firms concerning upcoming projects, training, and other activities.

Federal Highway AdministrationOffice of Civil Rights STA Supplemental Efforts • Encourage DBE firms to participate in projects and activities as appropriate. Secure assistance/expertise from the STA project consultant personnel to provide any needed guidance during project construction. • Provide access to technology of interest to DBE firms, contractors, and consultants.

Federal Highway AdministrationOffice of Civil Rights Matching/In-Kind Resources • Personnel: Individuals (i.e. Project Administrator and Project Director) who will provide direct or indirect services for the DBE/SS program but whose services will not be paid through the DBE/SS program’s budget expenditures. This may include volunteers. Dollar amounts for each individual should be included.

Federal Highway AdministrationOffice of Civil Rights Matching/In-Kind Resources • Fringe Benefits: Fringe benefits for administrative, clerical, contracted, and facilities personnel. Eligible fringe benefits can be prorated based on the actual amount of time contributed to the DBE/SS program. • Travel Expenses: All travel should be related to the DBE/SS program and granted for key or ancillary personnel.

Federal Highway AdministrationOffice of Civil Rights Matching/In-Kind Resources • Equipment: Equipment should be existing or to be purchased*. • Supplies: Supplies should be on hand from existing inventory or newly purchased. *If the STA purchases equipment with DBE/SS funds – the State must establish a way to amortize the cost of the equipment and charge only the value of the equipment associated with its use during the program. Because of the complexity associated with the financial accounting for this arrangement, FHWA does not recommend using DBE SS funds to purchase equipment.

Federal Highway AdministrationOffice of Civil Rights Matching/In-Kind Resources • Contractual: Contracted consultants can lend their expertise and time to the DBE/SS program. (pro bono services). • Miscellaneous: Utilities, telephone, printing, copying, postage and other costs can be a source of in-kind contributions.

Federal Highway AdministrationOffice of Civil Rights Potential Partnerships • American General Contractors (AGC), American Association of State Transportation Officials (AASHTO), American Road Builders and Transportation Association (ARTBA), and National Association of Minority Contractors (NAMC)-- providing contract/subcontract information to DBE firms to help them find work. • Banking Institutions and organizations like Small Business Administration and USDA (Rural Development Loan Program) -- providing loans and/or loan assistance to DBE firms. • Bonding Companies like Small Business Administration – providing bonding assistance to DBE firms by providing the needed bonds to get contracts.

Federal Highway AdministrationOffice of Civil Rights Potential Partnerships • Financial Management Organizations -- providing assistance in record keeping, bookkeeping, payroll, etc., for struggling DBE firms. • Historically Black Colleges and Universities (HBCUs), Tribal Colleges and Universities, or any Minority Institution of Higher Education (MIHEs) – providing training courses for DBE (sometimes free of charge) in marketing, curriculum assistance, business management, and other business related courses. • Private organizations that have expertise in management, marketing, and financial education, and companies with expertise in evolving computer and/or information sharing technology. • Contractors, private consultants – administering the DBE/SS program.

Changes for FY2010 Program • Earlier Call for Statements of Work: Begin developing the SOW in January. • Earlier Due Date: May (If not submitted by the due date, the SOW will not be reviewed.) • Page limit for SOWs: 10 pages • Page limit for Accomplishment Reports: 15 pages • If the budget items and/or the budget total reported in the SOW does not add up to the exact amount stated in the purpose statement, the proposal will not be reviewed. • Webinar in Fall 2009 • Reporting Requirements for SOWs and Accomplishment Reports: Will follow what has become “the new normal” as a result of ARRA.

Federal Highway AdministrationOffice of Civil Rights THE END Contact Information: Vickie Anderson DBE/SS Program Coordinator Federal Highway Administration 1200 New Jersey Avenue, SE., Rm. E81-326 Washington, DC 20590 (202) 366-1607 email: vickie.anderson@dot.gov Candace Groudine Director, External Civil Rights Programs Federal Highway Administration 1200 New Jersey Avenue, SE, Rm. E81-332 Washington, DC 20590 (202) 366-4634 email: candace.groudine@fhwa.dot.gov

FY 2009 DBE/Supportive Services Program