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INDOT Proposed Disadvantaged Business Enterprise (DBE) Goal FFY 2014-2016 Public Comment Outreach Meeting June 28, 2013

INDOT Proposed Disadvantaged Business Enterprise (DBE) Goal FFY 2014-2016 Public Comment Outreach Meeting June 28, 2013. Regulatory Overview. FFY 2014-2016 Proposed DBE Goal New Goal Submission Schedule Base Figure – 49 CFR 26.45(c) Adjustments – 49 CFR 26.45(d)

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INDOT Proposed Disadvantaged Business Enterprise (DBE) Goal FFY 2014-2016 Public Comment Outreach Meeting June 28, 2013

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  1. INDOT Proposed Disadvantaged Business Enterprise (DBE) Goal FFY 2014-2016 Public Comment Outreach Meeting June 28, 2013

  2. Regulatory Overview • FFY 2014-2016 Proposed DBE Goal • New Goal Submission Schedule • Base Figure – 49 CFR 26.45(c) • Adjustments – 49 CFR 26.45(d) • Race Neutral Projection – 49 CFR 26.45(f)

  3. FFY 2014-2016 Proposed DBE Goal • 49 CFR 26.45(a): • INDOT must develop an overall goal for DBE participation on federal contracts. • 49 CFR 26.51(d): • INDOT must set goals on enough individual contracts to cumulatively achieve the overall DBE goal. • Race-Conscious: DBE activity to achieve contract goals • Race-Neutral: DBE activity due to “customary competitive procurement procedures” not related to contract goals.

  4. Overall Goal • 49 CFR 26.45(b): • Goal must be based on demonstrable evidence of the availability of ready, willing, and able DBEs. • Goal should represent the “level of DBE participation you would expect absent the effects of discrimination.”

  5. New Goal Submission Schedule • 49 CFR 26.45(f)(1): • States must submit proposed Goal at three-year intervals. • INDOT must request FHWA approval for any significant adjustment to the Goal during the three-year period based on changed circumstances.

  6. Base Figure Methods • 49 CFR 26.45(c): • DBE Directories and Census Data Method • Bidder List Method • Disparity Study Method • Other Recipients Base Figure Method • Alternative Method

  7. 2014-2016 Base Figure • INDOT’s Method: Disparity Study • Utilized the 2010 DBE Disparity Study Database • “As recommended by the USDOT, the Disparity Study incorporates the practices of disaggregating data, weighting data, and including potential DBE’s to derive an availability estimate of 12.40%.”

  8. Adjustments • 49 CFR 26.45(d): • INDOT must examine all available evidence and determine what adjustments, if any, are necessary. • Goal of adjustment: • To fine-tune the base figure to reflect the percentage of work that DBE’s are likely to obtain absent discrimination.* *”Tips for Goal-setting in the Disadvantaged Business Enterprise (DBE) Program,” DOT OSBDU, http://osdbu.dot.gov/DBEProgram/tips.cfm

  9. INDOT Adjustment Analysis • Bidders List (BL) • Businesses that have bid or quoted on federal-assisted contracts in the past year. • BL Figure is 11.45% • Median Past Participation (MPP) • DBE participation data (2010-2012) • MPP Figure is 6.56%

  10. Final Adjustments • Average the Base Figure, MPP, & BL • (Base Figure [12.40%] + MPP [6.56%] + BL [11.45%])/3 = 10.14% • If adjustment considerations suggest similar levels to the Base Figure, then it is not necessary to make any adjustments.* • In accordance with the Tips for Goal-Setting in the Disadvantaged Business Enterprises (DBE) Program published by the U.S. Department of Transportation, INDOT determined that an adjustment to the Base Figure was not warranted. *”Tips for Goal-setting in the Disadvantaged Business Enterprise (DBE) Program,” DOT OSBDU, http://osdbu.dot.gov/DBEProgram/tips.cfm

  11. Race-Neutral Projection • 49 CFR 26.45(f) • INDOT must meet the maximum feasible portion of its overall goal through race-neutral means. • INDOT must project how much of the overall goal it expects to meet through race-neutral participation.

  12. Race-Neutral Projection • Median Past Race-Neutral Participation • Based on federal-aid contracts closed during calendar years 2010-2012. • Median Rate is 4.89% • Thus, INDOT projects it shall meet 4.89% of it’s overall DBE goal through race-neutral measures and 7.51% through race-conscious measures.

  13. Overall DBE Goal

  14. Public Comment Period • 49 CFR 26.45(g)(2) • INDOT must solicit and accept public comments for forty-five (45) days following the first publication of its Proposed Goal Notice. • Please submit public comments in writing to INDOT by July 24, 2013.

  15. Thanks for Coming! • Contact information: • Heather Kennedy • Phone: (317) 234-8008 • Email:HKennedy@indot.IN.gov • David Alyea • Phone: (317) 234-7843 • Email: DAlyea@indot.IN.gov

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