1. Office of Business Diversity & Civil Rights Best Practices in Certification September 25, 2012 Presented by Janice R. Thomas, CPPB Director of Office of Business Diversity & Civil Rights

2. OBDCR Staffing CertificationCompliance Shelia BarnesElda Alanis Gary LandChristine Murphy Michele SuttonSteven Oganovich Robert WhitedBrittany Waters Compliance Reports Administrative Assistant Shanta WilliamsBarbara Granger Student Intern Ashley Colquitt “Enhancing the Economic Growth of Small, Minority, Female and Disadvantaged Business Through Education and Training” 1

3. Metra’s Office of Business Diversity & Civil Rights Illinois Unified Certification Program –Metra, Pace, CTA, IDOT & City of Chicago –Participant since 2003 Comply with US DOT 49 CFR, Part 26, Subpart D (Certification Standards) –Analyze required documentation thoroughly –Conduct extensive PNW calculation –Perform a detailed onsite 2

4. OBDCR-Certification Review Forms PNW Review Checklist PNW Review Calculation Sheet No Change Affidavit Review Checklist Initial Application Review Checklist CEA Application Review Checklist Onsite Review Report –Onsite RFI Form Specialist Summary/Audit Report 3

5. Breakdown of PNW Review Look at comparatives from previous year Look at stock/bonds Look at Schedule E of individual tax returns Verifying value, type, and ownership of real estate; deduct residential mortgages Exempt home equity loans Exempt tax liability based on IRA/ 401Ks Calculate assets – liabilities to determine PNW 4

6. File Review Process Intensive Review & Analysis of documentation: Resume verification Proof of contribution-verifying owners financial interest (cancelled checks, bank statements, receipts for cash, collateral for loans and equipment purchase) Verify loan agreements-signature & guarantor Verify business location is independently owned/leased & operated Verify availability/ownership of required equipment (if applicable) i.e. trucks, tools, & machinery 5

7. File Review Process Verify gross receipts for past 3 years to determine SBA size standards Require all relevant licenses and permits Verify signature of owner (s) on bank signature card & corporate resolution Verify payroll-signature Verify all applicable documents for Corporations & LLCs Articles, By-laws, stock certificates, shareholders agreements, operating agreements & minutes (BOD & Stockholders) Verify Secretary of State Certificate Good Standing 6

8. Conduct Onsite: By two certification specialist Verify information provided 38 point interview questionnaire Tour facility (equipment and inventory) and take applicable photos Review contract files Talk to key personnel 7

9. Recommendation Certification Specialist makes recommendation: Approve Deny Director reviews file & makes final decision. 8

10. Department Name Change Formerly Office of DBE Administration. New Name: –Office of Business Diversity & Civil Rights. The new name better reflects: –The department’s mission. –Re-energized commitment to building relationships with DBEs, small businesses, and the community. –The office’s role in overseeing Metra’s DBE program, Title VI compliance, the small business initiative and community development. 9

11. Quotas and Set-Asides 49 CFR § 26.43 Can recipients use set-asides or quotas as part of this program? (a) You are not permitted to use quotas for DBEs on DOT-assisted contracts subject to this part. (b) You may not set-aside contracts for DBEs on DOT-assisted contracts subject to this part, except that, in limited and extreme circumstances, you may use set- asides when no other method could be reasonably expected to redress egregious instances of discrimination. 10

12. DBE Program Creates opportunities small businesses through: Race Conscious Measures: –Setting goals based on the percentage of DBEs. Race Neutral Measures: –When a DBE wins a contract or subcontract that did not have a contract specific goal, or when the DBE status was not considered when making the award. Recipients must meet as much as possible of their overall goals by using race-neutral measures, which include but not limited to outreach events, technical assistance, and unbundling of contracts. [49.CFR 26.51] 11

13. Contract Goals Purpose of Contract Goals: –To meet any portion of the overall goal not met using race neutral means. Goal Requirement: –Goals are not required on all contracts, nor must they match the overall goal. –Goals should be added, as appropriate, if it is anticipated that the year’s overall goal will not be achieved. Through award race neutral DBE participation occurs when a DBE wins a contract or subcontract that did not have a contract specific goal, or when the DBE status was not considered when making the award. 12

14. Metra’s DBE Goal Setting Basis for DBE Goal: Are there subcontracting opportunities obtainable by a DBE on a given contract? Are there DBE firms available, willing and able to participate in Metra’s DOT- assisted contracts? Goal Setting Process: –Identify if there was a previous goal set, or if it is a new project and determine if a goal should be set on the project. Analyze the scope of work required for the project, including the budget, tasks and services needed to complete the project (often a task list is requested from end user or requisitioning department). Staff identifies the number of ready, willing and able IL UCP DBE certified firms that could potentially participate on the project. Set a goal based on the realistic assessment of available DBE firms to participate in the contracted activity for the project. 13

15. Bonding and Insurance Strategies to Assist DBEs/Small Businesses: Work with the using department and Risk Management to: Re-evaluate insurance requirements. Make adjustments when it is feasible, will not affect the scope of work and put Metra at risk. Reached out to FTA to inquire about reducing bonding requirement on federal assisted contracts less than 100%. –Response: FTA would entertain a policy if Metra wants to consider less than 100% bond coverage. –Established a task team consisting of internal stakeholders (Grants, Engineering, Procurement, Law, Business Diversity (DBE) and Finance to draft a policy. 14

16. Unbundling Recommendations: Engineering will identify contracts to unbundle and reduce the length of blanket contracts. Require all using departments to look at the scope of projects $1M and above to consider unbundling. Project will be unbundled, if possible, and identified as race neutral to encourage DBEs/small businesses to participate. Unbundling does not guarantee that DBEs/small businesses will bid on contracts, due to the following: Capacity; Credit worthiness; and Availability to get bonding. 15

17. Small Business Enterprise New federal regulations state: 49 CFR § 26.39: Your DBE program must include an element to structure contracting requirements to facilitate competition by small business concerns, taking all reasonable steps to eliminate obstacles to their participation […] that may preclude small business participation in procurements as prime contractors or subcontractors. Metra has incorporated a Small Business Enterprise element to its DBE program, in order to facilitate competition on DOT– assisted public works projects by small business concerns (both DBEs and non-DBE small businesses). –The processes and requirements, are intended to: Provide more opportunities Support for small businesses Foster their move from subcontractors to prime contractor roles 16

18. Small Business Enterprise (cont.) The implementation will include the following strategies: –Increased race neutral participation –Unbundling of larger projects –Enhance training to DBEs and small business firms –Increase outreach and networking opportunities for small businesses –Encourage qualified firms to become DBE certified –Continue to provide plans and specifications free of charge to DBEs and small businesses 17

19. DBE/SBE Outreach Efforts Efforts to grow our DBE/SBE program: Staff participated in outreach events to provide: –Information to DBEs/SBEs on accessing contracting opportunities with Metra and the certification process. Events No Cost included (no charge to agency to participate): –Chicago Contractor Development Program –DBE & MBE Business Incubator/Diversity Outreach –Back to Business Workshop –Illinois PTAC Business and Government Day –Minority Contractors: Access to Bonding & Surety Seminar –Procurement Symposium –Small Business Matchmaking Event 18

20. DBE/SBE Outreach Efforts (cont.) Events with Cost included: –Annual WBDC Entrepreneurial Women's Conference –Chicago Business Opportunity Fair –Contractors Business Summit w/Congressman Rush –Hispanic Business Expo –HACIA Annual Banquet –Transportation Symposium & Business Exchange –Project Awareness –Small Business Expo Certification Staff conducted 14 one-on-one certifications (2012 to date) 19

21. Thank-You Q & A