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State DOTs and DBE Implementation Friday, August 9, 2013 Randelle Ripton DBE Technical Advisor

State DOTs and DBE Implementation Friday, August 9, 2013 Randelle Ripton DBE Technical Advisor. State DOTs & DBE Implementation. This session will address the following : What does it mean to foster small business participation?

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State DOTs and DBE Implementation Friday, August 9, 2013 Randelle Ripton DBE Technical Advisor

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  1. State DOTs and DBE ImplementationFriday, August 9, 2013Randelle RiptonDBE Technical Advisor

  2. State DOTs & DBE Implementation This session will address the following: What does it mean to foster small business participation? Oversight & Reporting Requirements for States and their subrecipients Open Question & Answers

  3. Fostering Small Business Participation • What does your small business element include? • Race-neutral set-asides for prime contracts ? • Bid specifications requiring the creation of appropriately sized subcontracts? • alternative acquisition strategies supporting the creation of joint ventures?

  4. Fostering Small Business Participation • 48 of the 52 States and Territories • Have Approved Small Business Elements • FTA, FHWA & FAA issued joint approvals of the §26.39 submissions

  5. Unbundling • Consider “unbundling” large projects into smaller pieces DBEs and SBEs can reasonably perform. • Low Bid? • price preference for small businesses Photo credit: www.businessmodelstudios.com

  6. Strategies Require prime bidders to identify subcontracts within a large contract

  7. Small Business Set-Aside? • Establish a small business set-asidefor prime contracts • Must be absent social disadvantage! • No DBE contract goals within here. Photo Credit: Microsoft Online Stock Photos

  8. Prime specifies subcontracts Have the prime provide subcontracting opportunities of a size that small businesses can perform

  9. How do you know if you’re successful? • How much of your business is done with small businesses? • Has your DBE participation improved?

  10. Capacity Building? * Success Runs in Our Race: The Complete Guide to Effective Networking in the Black Community by George C. Fraser • Networking and relationship-building is critical! • Professional success is about 85 percent “who” you know and 15 percent “what” you know.* • Successful people spend over half their time building relationships.*

  11. Questions?

  12. Oversight of Subrecipients

  13. Understanding the $250k threshold • FTA recipients receiving planning, capital and/or operating assistance who will award prime contracts (excluding transit vehicle purchases) exceeding $250,000 in FTA funds in a Federal fiscal year;

  14. Who’s responsible • Direct recipients responsible for subrecipients • Subs report through direct recipients Photo credit: Draw Street hierarchy www.bfoit.org

  15. Grant & Contract Assurance • (a) Each financial assistance agreement you sign with a DOT operating administration (or a primary recipient) must include the following assurance:

  16. Goal Setting • Overall goal based on the work that you and your subrecipients will undertake • This included a race conscious & race neutral split • What are your subrecipients doing? • Many believe that the being required to “do DBE” means

  17. Monitoring • must include a monitoring and enforcement mechanism • work committed to DBEs must be performed by the DBEs • written certification that you have reviewed contracting records and monitored work sites

  18. Reporting • mechanism must provide for a running tally of actual DBE attainments ( e.g., payments actually made to DBE firms), including a means of comparing these attainments to commitments. • More than just the Uniform Report

  19. Accountability if you fail to implement your program in good faith, you are in noncompliance with this part. • §26.47

  20. Questions?

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