Transcript Advanced DBE Tutorial - Baton Rouge Metropolitan Airport

Advanced DBE Tutorial
June 10, 2009
DBE Program FAQ
Why does BRMA have a DBE program?
• Federal law requires that airports that receive
federal funding, such as BRMA, implement a
DBE program.
• Highway and transit agencies have to
implement DBE programs as well.
DBE Program FAQ
• What are the goals of the DBE program?
– To ensure nondiscrimination in the award and
administration of contracts in the airport financial
assistance programs;
– To create a level playing field where DBEs can
compete fairly;
– To help remove barriers to the participation of DBEs;
– To assist the development of firms in order to
compete successfully in the marketplace outside the
DBE program.
DBE Program FAQ
Is the DBE program a quota system?
• NO, the DBE program is based on good faith
efforts to utilize DBE firms in federally assisted
projects.
DBE Program FAQ
How does the DBE program work?
• The Airport sets an annual DBE goal for DBE
participation on federally funded projects.
• Throughout the year, the Airport works
toward meeting this goal through individual
project goals.
Historical DBE Participation
Fiscal Year
DBE Participation
Total Dollars to DBE
Firms
2008
16.7%
$489,357
2007
8.7%
$740,654
2006
5.94%
$513,367
2005
6.23%
$1,756,996
2004
7.07%
$2,362,340
2003
12.58%
$1,425,771
DBE participation can vary by year depending on the type of
projects that are scheduled for that year and the amount of DBEs
available to do this type of work. The DBE Goal for 2009 is 6.58%.
DBE Program FAQ
What type of businesses are certified as DBEs?
• DBEs can be
– construction firms
– engineering firms
– consulting firms
– concessionaires
– vendors
– architecture firms
– procurement firms
– suppliers
– real estate firms
– and many others
DBE Program FAQ
How does the Airport determine what firms
qualify as DBEs?
• The Louisiana Unified Certification Program
(LA UCP)
Benefits of the LA UCP
• Good for DBE Firms
– Enables DBEs to be certified once and then be
eligible to work as a DBE anywhere in Louisiana
• Good for Prime Firms
– Comprehensive Database make it easy to find DBE firms
for projects
www.laucp.org
Searchable by
Firm name
Certifying agency
Parish
City
Type of service
Description
NAICS code
Item code
Goal Setting is a Two Step Process
• Proportion of DBEs available in BRMA’s market
area as compared to total number of firms in
the market area. (LAUCP and census websites)
• Adjust this proportion in light of historical
performance on past projects and the bidders
list.
DBE Requirements for an
RFQ/RFP/RFB
• Make Good Faith Efforts to obtain DBE
participation by EITHER:
1. Meeting or exceeding the goal set for the project ,
OR
2. Making AND documenting Good Faith Efforts
What are Good Faith Efforts?
•
•
•
•
Unbundle project tasks
Advertise potential subcontracting opportunities
Contact local trade organizations to post opportunities
Make efforts to assist DBE firms with bonding, lines of
credit or insurance as required by project
• Include supporting documentation of HARD EVIDENCE of
the above mentioned efforts or other efforts to obtain DBE
participation including:
o
o
o
o
o
Postal correspondence
E-mail
Fax
Telephone log
Printed advertisements
DBE Contacts
DBE Liaison
Jason Wilson, MBA
Administrative and Development Manager
Greater Baton Rouge Airport District
DBE Compliance Officers
Bonnie Garrigan and
Audrey Pulitzer
TMG Consulting
The Bid Review Process at the Baton
Rouge Airport: an Introduction
• To be considered responsive, a submittal must
include completely and correctly filled out
Schedules A and B and/or a completed
Schedule C.
– Proposal meets or exceeds the DBE Goal
• Schedule A and B must be submitted
• A & B must agree
– Proposal does not meet the DBE Goal
• Schedule C documenting good faith efforts
Schedule A
• Commits the Prime Contractor to Using a DBE
– Establishes percentage of work to be performed
by DBE
• Only needed when the Prime Contractor will
contract with a DBE
Schedule A
Respondent’s or Proposer’s DBE Participation Assurance Form
Schedule A
Respondent’s or Proposer’s DBE Participation Assurance Form
DBE
suppliers’
participation
is counted at
60%.
(18,000/1,000,000)*60%
=
1.08%
For RFQs
mark n/a
Schedule A
Respondent’s or Proposer’s DBE Participation Assurance Form
Schedule A: Common Mistakes
• Failing to remember that DBE Suppliers only
count at 60%
– So if have $10,000 contract with DBE then can only
count $6,000 toward DBE goal
• Failing to communicate with DBE participants
– Make sure that the percentages of participation on
Schedules A and B are the same
• Know if a DBE plans to subcontract any of the work to a nonDBE firm, which would make their percentage of
participation lower
Schedule B
• Commits DBE to working with Prime
Contractor
• Need one per DBE
• Needed for DBE Prime Contractors
• Need not be original
Schedule B
DBE Firm’s Participation Assurance Form
Schedule B
DBE Firm’s Participation Assurance Form
For RFQs,
write n/a
Schedule B
DBE Firm’s Participation Assurance Form
Schedule B: Common Mistakes
• Forgetting that suppliers participation counts
as 60% of the total subcontract amount
• Mistakenly saying that a DBE will subcontract
work to a non-DBE
• Stating a different percentage of participation
than stated on Schedule A
Louisiana Unified Certification
Program
• DBE certification letter must be current and
has to be from one of certifying agencies with
Louisiana Unified Certification Program (LA
UCP)
•
•
•
•
LDOTD
LANOIA
Orleans Levee District
New Orleans RTA
Schedule C
• We suggest it be submitted with every
RFQ/RFP response
– Only required if the Prime Contractor does not
meet the DBE goal
– Can prevent being found non-responsive in the
event that you have made an error on Schedules A
and B
Schedule C
• One more reason to submit the Schedule C
– If a bidder/offer documents adequate good faith
efforts, according to regulations, the Airport must
not deny award of the contract on the basis that
the bidder/offer’s failure to meet the goal.
Schedule C
DBE Unavailability Certification
Schedule C: Common Mistake
• Failure to include documentation of the good
faith efforts taken to meet the DBE goal for
the project
The Bid Review Process at the Baton
Rouge Airport
– The Airport’s DBE liaison and DBE compliance officers review
all qualifications statements, bids and proposals for projects
that receive federal funding.
– Compliance officer determines whether or not the submittal is
responsive to the DBE requirements for the project.
– To be considered responsive, a submittal must include
completely and correctly filled out Schedules A and B and/or a
completed Schedule C
– After determining which submittals are compliant with the
DBE requirements for a project, the DBE compliance officers
write a letter to the Airport explaining their determinations,
which will be taken into account during the selection process.
Questions?
Bonnie Garrigan or Audrey Pulitzer
TMG Consulting
365 Canal Street, Suite 1170
New Orleans, La 70130
504-569-9239 ex 29 (Bonnie) or 30 (Audrey)