Disadvantaged Business Enterprise ProgramGoal Setting Process

BackgroundBackground The Department of Transportation (DOT) has had in The Department of Transportation (DOT) has had in

effect for more than 20 years a policy of helping small effect for more than 20 years a policy of helping small businesses owned and controlled by socially and businesses owned and controlled by socially and economically disadvantaged individuals, including economically disadvantaged individuals, including minorities and women, in participating in contracting minorities and women, in participating in contracting opportunities created by DOT financial assistance opportunities created by DOT financial assistance programs. The Department, through its Operating programs. The Department, through its Operating Administrations, distributes in excess of $20 billion Administrations, distributes in excess of $20 billion annually to help finance thousands of projects across annually to help finance thousands of projects across the country. Approximately 85% of the assistance the country. Approximately 85% of the assistance dollars is for construction. The major portion of the dollars is for construction. The major portion of the construction funds is allocated to State highway and construction funds is allocated to State highway and transportation agencies for highway construction. The transportation agencies for highway construction. The balance is provided to local public transit and airport balance is provided to local public transit and airport authorities for mass transit and airport facilities.authorities for mass transit and airport facilities.

In 1983, Congress enacted the first disadvantaged In 1983, Congress enacted the first disadvantaged business enterprise (DBE) statutory provision. This business enterprise (DBE) statutory provision. This provision required the Department to ensure that at least provision required the Department to ensure that at least 10% of the funds authorized for the highway and transit 10% of the funds authorized for the highway and transit financial assistance programs be expended with DBEs. In financial assistance programs be expended with DBEs. In 1987, Congress re-authorized and amended the statutory 1987, Congress re-authorized and amended the statutory DBE program. In the transportation legislation of that DBE program. In the transportation legislation of that year, Congress, among other changes, added women to the year, Congress, among other changes, added women to the groups presumed to be disadvantaged. Since 1987 DOT groups presumed to be disadvantaged. Since 1987 DOT has established a single DBE goal, encompassing both has established a single DBE goal, encompassing both firms owned by women and minority group members.firms owned by women and minority group members.

Primarily three major DOT Operating Administrations are Primarily three major DOT Operating Administrations are involved in the DBE program. They are the Federal involved in the DBE program. They are the Federal Highway Administration, the Federal Aviation Highway Administration, the Federal Aviation Administration and the Federal Transit Administration. Administration and the Federal Transit Administration. The DOT DBE program is carried out by state and local The DOT DBE program is carried out by state and local transportation agencies under the rules and guidelines in transportation agencies under the rules and guidelines in the Code of Federal Regulations (Title 49, Part 26).the Code of Federal Regulations (Title 49, Part 26).

Objectives of the DBE Objectives of the DBE ProgramProgram

To ensure nondiscrimination in the award and the To ensure nondiscrimination in the award and the administration of DOT-assisted contracts in the administration of DOT-assisted contracts in the Department’s financial assistance programs;Department’s financial assistance programs;

To create a level playing field on which DBEs can compete To create a level playing field on which DBEs can compete fairly for DOT-assisted contracts;fairly for DOT-assisted contracts;

To ensure that the Department’s DBE program is narrowly To ensure that the Department’s DBE program is narrowly tailored in accordance with applicable law;tailored in accordance with applicable law;

To ensure that only firms that fully meet this part’s To ensure that only firms that fully meet this part’s eligibility standards are permitted to participate as DBEs;eligibility standards are permitted to participate as DBEs;

To help remove barriers to the participation of DBEs in To help remove barriers to the participation of DBEs in DOT-assisted contracts:DOT-assisted contracts:

To assist the development of firms that can compete To assist the development of firms that can compete successfully in the marketplace outside the DBE program; successfully in the marketplace outside the DBE program; andand

To provide appropriate flexibility to recipients of Federal To provide appropriate flexibility to recipients of Federal financial assistance in establishing and providing financial assistance in establishing and providing opportunities for DBEs.opportunities for DBEs.

Who must submit an Who must submit an Annual DBE Goal?Annual DBE Goal?

If you are an FTA recipient who If you are an FTA recipient who reasonably anticipates awarding reasonably anticipates awarding (excluding transit vehicle purchases) (excluding transit vehicle purchases) more then $250,000 in FTA funds in more then $250,000 in FTA funds in prime contracts in a Federal fiscal year, prime contracts in a Federal fiscal year, you are required to develop an overall you are required to develop an overall goal for FTA for that fiscal year. goal for FTA for that fiscal year.

49 CFR 26.45(a)(2)49 CFR 26.45(a)(2)

How do recipients set How do recipients set overall goals?overall goals?

49 CFR 26.4549 CFR 26.45

Goal Setting Goal Setting MethodologyMethodology

Methodology:Methodology: The goal must be based on demonstrable The goal must be based on demonstrable

evidence of the availability of ready, willing evidence of the availability of ready, willing and able DBEs relative to all businesses and able DBEs relative to all businesses ready, willing and able to participate on ready, willing and able to participate on your DOT assisted contracts.your DOT assisted contracts.

The goal must reflect what you could expect The goal must reflect what you could expect the level of DBE participation would be the level of DBE participation would be absent the effects of discrimination. You absent the effects of discrimination. You cannot simply rely on either the 10 percent cannot simply rely on either the 10 percent aspirational goal or past DBE participation aspirational goal or past DBE participation rates in your program.rates in your program.

Goal SettingGoal Setting

DOT does not approve your goal DOT does not approve your goal and recipients are not required and recipients are not required to achieve a minimum goal. to achieve a minimum goal.

However, DOT does review and However, DOT does review and approve the methodology used to approve the methodology used to establish the goal.establish the goal.

Goal SettingGoal Setting

Goal setting is a two-step Goal setting is a two-step process: process:

1.1. Develop a Base FigureDevelop a Base Figure

2.2. Adjust your Base FigureAdjust your Base Figure

Step One – Develop a Base Step One – Develop a Base FigureFigure

To begin the goal setting process, the To begin the goal setting process, the recipient must first develop a base recipient must first develop a base figure for the relative availability of figure for the relative availability of DBEs. The relative availability of DBEs DBEs. The relative availability of DBEs is the total number of ready, willing is the total number of ready, willing and able DBE firms divided by the total and able DBE firms divided by the total number of all firms for the types of number of all firms for the types of contracts you anticipate awarding.contracts you anticipate awarding.

DBE’sDBE’s All firms (including DBE’s)All firms (including DBE’s)

ExampleExample XDOT has two FTA funded XDOT has two FTA funded

projects (other than a bus projects (other than a bus procurement) in the coming fiscal procurement) in the coming fiscal year. One project is to pave the year. One project is to pave the bus parking lot and the second is bus parking lot and the second is to haul dirt.to haul dirt.

There are 300 concrete contractor There are 300 concrete contractor firms in XDOT’s area, 44 of which firms in XDOT’s area, 44 of which are DBEs. There are 150 trucking are DBEs. There are 150 trucking firms in XDOT’s area, 14 of which firms in XDOT’s area, 14 of which are DBEs. are DBEs.

What is XDOT’s Base What is XDOT’s Base figure?figure?

(Number of DBE’s/Total number of (Number of DBE’s/Total number of firms)= Base Figurefirms)= Base Figure

(44 concrete contractor DBEs/300 (44 concrete contractor DBEs/300 concrete contractors) + (14 trucking concrete contractors) + (14 trucking DBEs/150 trucking firms) =DBEs/150 trucking firms) =12.8%

Step One (continued)Step One (continued) Did not use past participation as your base Did not use past participation as your base

figure.figure. Use the most refined data available. Use the most refined data available.

Identify DBEs eligible under the current Identify DBEs eligible under the current standards, beyond those listed in your standards, beyond those listed in your directory (other DOT org).directory (other DOT org).

Use all available data (census bureau; Use all available data (census bureau; bidders list; disparity study; other DOT bidders list; disparity study; other DOT recipients) in your area.recipients) in your area.

Ensure that percentages reflect actual Ensure that percentages reflect actual contracting opportunities; use weighting contracting opportunities; use weighting whenever possible.whenever possible.

Weighting your Base Weighting your Base Figure Figure

The total project budget is $1 million. The total project budget is $1 million. $900,000, or 90%, of the project will go $900,000, or 90%, of the project will go towards the paving project, while the towards the paving project, while the remaining $100,000, or 10% will go remaining $100,000, or 10% will go towards the dirt hauling project.towards the dirt hauling project.

(Percent of total project budget) (Number of (Percent of total project budget) (Number of DBE’s/Total number of firms)= Base FigureDBE’s/Total number of firms)= Base Figure

.9(44 concrete contractor DBEs/300 concrete .9(44 concrete contractor DBEs/300 concrete contractors) + .1(14 trucking DBEs)/150 contractors) + .1(14 trucking DBEs)/150 trucking firms) = 13.20% +0.93% = 14.13% trucking firms) = 13.20% +0.93% = 14.13% or 14%or 14%

Step Two - Adjust Base Step Two - Adjust Base Figure:Figure: Once you have calculated a base figure, you Once you have calculated a base figure, you

must examine all of the evidence available in must examine all of the evidence available in your area to determine what adjustment, your area to determine what adjustment, if if any, any, is needed to the base figure to arrive at is needed to the base figure to arrive at your overall goal.your overall goal.

Types of Evidence to Consider:Types of Evidence to Consider: Current capacity of DBEs to perform the work . Current capacity of DBEs to perform the work . Disparity studies (if not used in Step One). Disparity studies (if not used in Step One). Adjustments for your market if your Step One goal is Adjustments for your market if your Step One goal is

that of another DOT recipient. Statistical data on the that of another DOT recipient. Statistical data on the ability of DBEs to get financing, bonding, insurance, ability of DBEs to get financing, bonding, insurance, etc..etc..

Input from interested parties (e.g, local chambers of Input from interested parties (e.g, local chambers of commerce, NAACP, minority business associations, commerce, NAACP, minority business associations, majority contractor associations).majority contractor associations).

Using Past ParticipationUsing Past Participation You can use past participation, IF... You can use past participation, IF...

contracting opportunities are similar to contracting opportunities are similar to past years. You must first determine past years. You must first determine median past participation and then median past participation and then average the past participation with your average the past participation with your Step One Base Figure.Step One Base Figure.

The historical median is the middle The historical median is the middle number of a group of numbers-For number of a group of numbers-For example, if your past participation were: example, if your past participation were: 18%; 12%; and 10% - the average would 18%; 12%; and 10% - the average would be approx. 13% -- the median is 12%.be approx. 13% -- the median is 12%.

(12%+14%)/2= 13%(12%+14%)/2= 13%

Means of Meeting Means of Meeting Overall GoalsOverall Goals

Race-Neutral MeansRace-Neutral Means You must meet the maximum feasible You must meet the maximum feasible

portion of your overall goal by using race-portion of your overall goal by using race-neutral means of achieving DBE neutral means of achieving DBE participation. Race-neutral DBE participation. Race-neutral DBE participation occurs when a DBE wins a participation occurs when a DBE wins a contract or subcontract that did not have contract or subcontract that did not have contract specific goals, or when the DBE contract specific goals, or when the DBE status was not considered in making the status was not considered in making the award.award.

Race-neutral Race-neutral does not does not mean that no mean that no efforts are made to facilitate DBE efforts are made to facilitate DBE participation. participation.

Race-NeutralRace-NeutralExamplesExamples

1) Arranging solicitations, times for the presentation of bids, quantities, specifications, and 1) Arranging solicitations, times for the presentation of bids, quantities, specifications, and delivery schedules in ways that facilitate DBE, and other small businesses, participation (e.g., delivery schedules in ways that facilitate DBE, and other small businesses, participation (e.g., unbundling large contracts to make them more accessible to small businesses, requiring or unbundling large contracts to make them more accessible to small businesses, requiring or encouraging prime contractors to subcontract portions of work that they might otherwise encouraging prime contractors to subcontract portions of work that they might otherwise perform with their own forces); perform with their own forces);

(2) Providing assistance in overcoming limitations such as inability to obtain bonding or (2) Providing assistance in overcoming limitations such as inability to obtain bonding or financing (e.g., by such means as simplifying the bonding process, reducing bonding 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 requirements, eliminating the impact of surety costs from bids, and providing services to help DBEs, and other small businesses, obtain bonding and financing); DBEs, and other small businesses, obtain bonding and financing);

(3) Providing technical assistance and other services; (3) Providing technical assistance and other services; (4) Carrying out information and communications programs on contracting procedures and (4) Carrying out information and communications programs on contracting procedures and

specific contract opportunities specific contract opportunities (5) Implementing a supportive services program to develop and improve immediate and long-(5) Implementing a supportive services program to develop and improve immediate and long-

term business management, record keeping, and financial and accounting capability for DBEs term business management, record keeping, and financial and accounting capability for DBEs and other small businesses; and other small businesses;

(6) Providing services to help DBEs, and other small businesses, improve long-term (6) Providing services to help DBEs, and other small businesses, improve long-term development, increase opportunities to participate in a variety of kinds of work, handle development, increase opportunities to participate in a variety of kinds of work, handle increasingly significant projects, and achieve eventual self-sufficiency; increasingly significant projects, and achieve eventual self-sufficiency;

(7) Establishing a program to assist new, start-up firms, particularly in fields in which DBE (7) Establishing a program to assist new, start-up firms, particularly in fields in which DBE participation has historically been low;participation has historically been low;

(8) Ensuring distribution of your DBE directory, through print and electronic (8) Ensuring distribution of your DBE directory, through print and electronic meansmeans, to the , to the widest feasible universe of potential prime contractors; and widest feasible universe of potential prime contractors; and

Race-Conscious MeansRace-Conscious Means You must establish contract goals to meet any You must establish contract goals to meet any

portion of your overall goal you do not project portion of your overall goal you do not project being able to meet using race-neutral means. being able to meet using race-neutral means. Contract goals are considered race-conscious Contract goals are considered race-conscious means.means. The following rules apply: The following rules apply: Contract goals may only be used on DOT-assisted Contract goals may only be used on DOT-assisted

contracts with subcontracting opportunities (set-asides contracts with subcontracting opportunities (set-asides are NOT allowed).are NOT allowed).

Goals are not required on all contracts, nor must they Goals are not required on all contracts, nor must they match your overall goal.match your overall goal.

You may NOT set contract goals at all if you project You may NOT set contract goals at all if you project meeting your entire goal through race-neutral means. meeting your entire goal through race-neutral means.

You must reduce contract goals if you project during the You must reduce contract goals if you project during the year that you will EXCEED your overall goal. year that you will EXCEED your overall goal.

Conversely, if you expect to fall short of your overall goal, Conversely, if you expect to fall short of your overall goal, you should add contract goals, as appropriate. you should add contract goals, as appropriate.

Race-Conscious MeansRace-Conscious Means When submitting your annual goal, you When submitting your annual goal, you

must include your projection of the must include your projection of the portions of the overall goal you expect to portions of the overall goal you expect to meet through race-neutral and race-meet through race-neutral and race-conscious measures.conscious measures.

If the DBE participation you have obtained If the DBE participation you have obtained by race-neutral means alone meets or by race-neutral means alone meets or exceeds your overall goals for two exceeds your overall goals for two consecutive years, you are not required to consecutive years, you are not required to submit a breakdown of your goal.submit a breakdown of your goal.

If you exceed your goal for two consecutive If you exceed your goal for two consecutive years through the use of contract goals, years through the use of contract goals, you must reduce the use of contract goals you must reduce the use of contract goals proportionately in the following years.proportionately in the following years.

Western States Paving Co. Western States Paving Co. v. v.

United States & Washington State United States & Washington State Department of TransportationDepartment of Transportation

407 F. 3d 983 (9th Cir. 2005)407 F. 3d 983 (9th Cir. 2005)

Disadvantaged Business Enterprises; Disadvantaged Business Enterprises; Western States Guidance for Public Western States Guidance for Public Transportation Providers. 56 Fed. Transportation Providers. 56 Fed. Reg. 14775, March 23, 2006. Reg. 14775, March 23, 2006.

What did the Court say?What did the Court say? The Court of Appeals for the 9The Court of Appeals for the 9thth Circuit Circuit

reviewed DOT’s DBE program and held that 49 reviewed DOT’s DBE program and held that 49 CFR Part 26 and the authorizing statute for the CFR Part 26 and the authorizing statute for the DBE Program in TEA-21 are Constitutional. DBE Program in TEA-21 are Constitutional. The Court upheld Congressional determination The Court upheld Congressional determination that there is a compelling need for the DBE that there is a compelling need for the DBE Program and that the DOT Rules at Part 26 are Program and that the DOT Rules at Part 26 are narrowly tailored to meet that need.narrowly tailored to meet that need.

However, the 9However, the 9thth Circuit held that the DBE Circuit held that the DBE Program administered by the Washington State Program administered by the Washington State Department of Transportation was not narrowly Department of Transportation was not narrowly tailored because the evidence of discrimination tailored because the evidence of discrimination supporting the use of race-conscious measures supporting the use of race-conscious measures in the program was inadequate. in the program was inadequate.

Who does this apply to?Who does this apply to?

Recipients of Federal financial assistance Recipients of Federal financial assistance from the Federal Highway Administration from the Federal Highway Administration (FHWA), Federal Transit Administration (FHWA), Federal Transit Administration (FTA), and Federal Aviation (FTA), and Federal Aviation Administration (FAA) located in the states Administration (FAA) located in the states comprising the 9th Federal Judicial Circuit. comprising the 9th Federal Judicial Circuit.

99thth Circuit states include California, Oregon, Circuit states include California, Oregon, Washington, Alaska, Arizona, Idaho, Washington, Alaska, Arizona, Idaho, Montana, Nevada, and Hawaii.Montana, Nevada, and Hawaii.

Case StudyCase Study

Abbeville City Transit (ACT) provides Abbeville City Transit (ACT) provides transit service in Abbeville, TX. ACT is a transit service in Abbeville, TX. ACT is a department of the City of Abbeville, which department of the City of Abbeville, which has a population of $250,000. ACT has a population of $250,000. ACT operates a bus only system of 50 peak operates a bus only system of 50 peak vehicles. ACT does not receive FTA vehicles. ACT does not receive FTA operating assistance and does not use FTA operating assistance and does not use FTA funding for preventive maintenance or funding for preventive maintenance or ADA. ACT has four FTA funded projects ADA. ACT has four FTA funded projects (other than a bus procurement) in the (other than a bus procurement) in the coming Fiscal Year.coming Fiscal Year.

Step 1: Find your Weighted Step 1: Find your Weighted

Base FigureBase Figure (Weight) X (Base Figure)= Weighted (Weight) X (Base Figure)= Weighted

Base FigureBase Figure

ProjectProject Type of Type of Firm/NAICS Firm/NAICS CodeCode

AmountAmount % Of % Of Total Total (Weigh(Weight)t)

Design Design Transfer Transfer CenterCenter

54133- 54133- Design and Design and EngineeringEngineering

$100,000.00$100,000.00

Rewire Rewire the the OfficeOffice

23531- 23531- Electrical Electrical ContractorContractor

$40,000.00$40,000.00

Haul DirtHaul Dirt 48411- 48411- TruckingTrucking

$4,000.00$4,000.00

Build Build Addition Addition to Shopto Shop

23411- 23411- ConstructionConstruction

$256,000.00$256,000.00

Total DOT Assisted Total DOT Assisted ContractsContracts

$400,000.00$400,000.00

.25.25(100,00(100,000/400,00/400,000)00).1

.01

.64

ProjectProject Type of Type of Firm/NAICS Firm/NAICS CodeCode

AmountAmount % Of % Of Total Total (Weight(Weight))

Design Design Transfer Transfer CenterCenter

54133- 54133- Design and Design and EngineeringEngineering

$100,000.00$100,000.00 25%25%

Rewire Rewire the the OfficeOffice

23531- 23531- Electrical Electrical ContractorContractor

$40,000.00$40,000.00 10%10%

Haul Haul DirtDirt

48411- 48411- TruckingTrucking

$4,000.00$4,000.00 1%1%

Build Build Addition Addition to Shopto Shop

23411- 23411- ConstructionConstruction

$256,000.00$256,000.00 64%64%

Total DOT Assisted Total DOT Assisted ContractsContracts

$400,000.00$400,000.00 100%100%

Base Figure Base Figure

Number of DBEs/Number of All FirmsNumber of DBEs/Number of All Firms ACT operates in Potter and Randall ACT operates in Potter and Randall

Counties. Let’s look at Census Counties. Let’s look at Census County Business Patterns for those County Business Patterns for those two Counties to determine the total two Counties to determine the total number of all firms in the area. We number of all firms in the area. We can use our DBE Directory or other can use our DBE Directory or other available data to determine the total available data to determine the total number of DBE’s in the area. number of DBE’s in the area.

ProjecProjectt

Type of Type of Firm/NAICFirm/NAICS CodeS Code

NumbNumber of er of DBEsDBEs

NumbeNumber of All r of All FirmsFirms

Relative Relative AvailabilAvailabilityity

WeigWeightht

Design Design TransfTransfer er CenterCenter

54133- 54133- Design and Design and EngineerinEngineeringg

44 415415

Rewire Rewire the the OfficeOffice

23531- 23531- Electrical Electrical ContractorContractor

1313 562562

Haul Haul DirtDirt

48411- 48411- TruckingTrucking

1111 173173

Build Build AdditioAddition to n to ShopShop

23411- 23411- ConstructioConstructionn

4242 562562

Combined TotalsCombined Totals 7070 17121712

3/5623/562==.0231.023111/173=11/173=.0636.0636

42/56242/562==.0747.0747

.1

.01

.64

4/4154/415==.0096.0096

.25.25

ProjecProjectt

Type of Type of Firm/NAIFirm/NAICS CodeCS Code

NumbeNumber of r of DBEsDBEs

NumbNumber of er of All All FirmsFirms

Relative Relative AvailabilitAvailability (Base y (Base Figure)Figure)

WeigWeightht

Design Design TransfTransfer er CenterCenter

54133- 54133- Design and Design and EngineerinEngineeringg

44 415415 .0096.0096 25%25%

Rewire Rewire the the OfficeOffice

23531- 23531- Electrical Electrical ContractorContractor

1313 562562 .0231.0231 10%10%

Haul Haul DirtDirt

48411- 48411- TruckingTrucking

1111 173173 .0635.0635 1%1%

Build Build AdditioAddition to n to ShopShop

23411- 23411- ConstructiConstructionon

4242 562562 .0747.0747 64%64%

Combined TotalsCombined Totals 7070 17121712 100%100%

Calculating ACT’s Calculating ACT’s Weighted Base FigureWeighted Base Figure

.. .0531 or .0531 or 5.31%5.31%

(Weight) X (Base Figure) = (Weight) X (Base Figure) = Weighted Base FigureWeighted Base Figure

+ (.1)(.0231)=.00231+ (.1)(.0231)=.00231;;(.25)(.0096)=.0024;(.25)(.0096)=.0024;

+ (.01)(.0635)=.000635;+ (.01)(.0635)=.000635;+ (.64)(.0747)=.047808 =+ (.64)(.0747)=.047808 =

ACT’s Weighted Base ACT’s Weighted Base FigureFigure

5%5%

Step 2: Determine if Step 2: Determine if Adjustments are Necessary Adjustments are Necessary

During the previous three years ACT has During the previous three years ACT has increased DBE participation in FTA increased DBE participation in FTA assisted contracts and leases through assisted contracts and leases through community outreach efforts. There are community outreach efforts. There are several active minority contracting several active minority contracting associations and other business associations and other business organizations in the area. In the past organizations in the area. In the past three years, ACT has achieved the three years, ACT has achieved the following DBE participation for similar following DBE participation for similar type projects:type projects:

2007- 12%2007- 12%2006- 8%2006- 8%2005- 6%2005- 6%

Historical median is 8%.

Adjusting your Base Adjusting your Base FigureFigure

Calculate your adjusted goal by averaging Calculate your adjusted goal by averaging your base figure and the historical median.your base figure and the historical median.

ACT’s Adjusted FY 08 Goal= ACT’s Adjusted FY 08 Goal= 7%7%

(5% base goal)(5% base goal)+ (8% median) / 2+ (8% median) / 2= 6.5 or 7%= 6.5 or 7%

Race-Neutral and Race-Neutral and Race Conscious SplitsRace Conscious Splits

In FY 2007 ACT’s overall goal was In FY 2007 ACT’s overall goal was 10%. They projected obtaining half 10%. They projected obtaining half (or 5%) of their goal by race-neutral (or 5%) of their goal by race-neutral means. They actually achieved a means. They actually achieved a goal of 12% DBE participation.goal of 12% DBE participation.

Assuming contracting opportunities Assuming contracting opportunities are similar, how much of ACT’s FY are similar, how much of ACT’s FY 2008 7% goal should be race-2008 7% goal should be race-neutral?neutral?

One Method:One Method:

In FY 2007 ACT achieved 7% of their goal In FY 2007 ACT achieved 7% of their goal through race neutral methods—(5% through race neutral methods—(5% projected and an additional 2%). projected and an additional 2%).

7% of 12% (total DBE participation in 7% of 12% (total DBE participation in FY2006)= 58%FY2006)= 58%

(7÷12= 58%)(7÷12= 58%)

58% of 7% (Projected FY2008 goal)= 4%58% of 7% (Projected FY2008 goal)= 4% (58 x 7% = 4.06)(58 x 7% = 4.06)

4% could be achieved through Race Neutral 4% could be achieved through Race Neutral and 3% through Race Conscious and 3% through Race Conscious

What do I submit?What do I submit?

A letter stating your overall goal is ____% A letter stating your overall goal is ____% for FY 200X and that you will achieve ____for FY 200X and that you will achieve ____% of that goal through race neutral means % of that goal through race neutral means and ____% through race conscious means. and ____% through race conscious means.

Attach a copy of your published notice.Attach a copy of your published notice. Attach a worksheet, similar the one Attach a worksheet, similar the one

discussed today, showing your discussed today, showing your methodology. methodology.

When do I need to submit When do I need to submit my Annual Goal?my Annual Goal?

Overall goals must be submitted to Overall goals must be submitted to FTA on August 1FTA on August 1st st of each year for the of each year for the upcoming Federal Fiscal Year. upcoming Federal Fiscal Year. Project or grant goals must be Project or grant goals must be submitted at the time determined by submitted at the time determined by the FTA Administrator. the FTA Administrator.

Remember:Remember: Before you submit to FTA, you must publish your Before you submit to FTA, you must publish your

proposed overall goal, informing the public that the proposed overall goal, informing the public that the proposed goal and its rational are available for inspection proposed goal and its rational are available for inspection during normal business hours at your principal office for during normal business hours at your principal office for 30 days following the date of the notice, and informing 30 days following the date of the notice, and informing the public that you and the Department will accept the public that you and the Department will accept comments on the goals for 45 day s from the date of the comments on the goals for 45 day s from the date of the notice. notice.

SeeSee 49 CFR 26.45(g)(2). 49 CFR 26.45(g)(2).

To timely submit your Annual Goal, FTA recommends you To timely submit your Annual Goal, FTA recommends you publish your annual goals by June 15publish your annual goals by June 15thth every year. every year.

Where to go for more info:Where to go for more info: www.osdbu.govwww.osdbu.gov National Transit National Transit

Institute – Institute – Disadvantage Disadvantage Business Course Business Course Training –Training –

http://www.ntionline.com/http://www.ntionline.com/CourseInfo.asp?CourseInfo.asp?CourseNumber=ID016CourseNumber=ID016

If you have any questions or concerns, feel If you have any questions or concerns, feel free to contact me:free to contact me:

Thomas C. HarrisThomas C. HarrisRegional Civil Rights OfficerRegional Civil Rights Officer

US Department of TransportationUS Department of TransportationFederal Transit AdministrationFederal Transit Administration

901 Locust, Rm 404901 Locust, Rm 404Kansas City, MO 64108Kansas City, MO 64108

(816) 329-3928(816) 329-3928Thomas.harris@dot.govThomas.harris@dot.gov