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)

Race Neutral Projection – 49 CFR

26.45(f)

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.

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.”

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.

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

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%.”

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

INDOT Adjustment Analysis Median Past

Participation (MPP) DBE

participation data (2010-2012)

MPP Figure is 6.56%

Bidders List (BL) Businesses that

have bid or quoted on federal-assisted contracts in the past year.

BL Figure is 11.45%

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

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.

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.

Overall DBE Goal

Overall DBE Goal (12.40%)0

2

4

6

8

10

12

14

7.51%

4.89%

Race-NeutralRace-Conscious

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.

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