1. DBE FTA Disadvantaged Business Enterprise Contract Goal Setting
Caltrans
Office of Business & Economic Opportunity
FTA

2. OBJECTIVE
How to set DBE contract goals

3. OBJECTIVE
How to set DBE contract goals
What
Why
When

4. WHAT is a DBE goal?
Percentage of the total contract amount that is expected to be performed by certified DBE firms.

5. WHY
49 CFR PART 26
DBE Program
Recipient of federal transit funds

6. WHY
49 CFR PART 26
DBE Program
Establish statewide DBE goal

7. WHY
49 CFR PART 26
FTA approved overall DBE G&M :
4.8%

8. WHY
49 CFR PART 26
Race-conscious (RC) program
1.1% RC + 3.7% RN

9. WHY 49 CFR PART 26 DBE goal set on FTA-funded contracts:
ADVERTISED ON OR AFTER
OCT 1, 2017

10. WHEN
Goal
0% goal
No goal

11. WHEN a goal applies Subcontracting opportunities
Parts or material supply

12. WHEN 0% goal applies Very limited or narrow scope of work
Limited DBE availability
Difference between a zero-percent goal and no goal.
Capture potential participation

13. WHEN no goal applies Sole source Emergency relief
Sole source = proprietary
Different from a non-competitively bid contract

14. First Poll Sole source = proprietary
Different from a non-competitively bid contract

15. WHEN to set goals After: Independent cost estimate
When is it time to set…

16. Independent Cost Estimate
Items of work and estimated values established

17. HOW to set a goal SEVEN STEPS Seven Basic steps.
Next slide provides an overview then we’ll spend more time reviewing each step

18. HOW to set a goal
Identify work items typically performed by prime; element of material supply
Determine work category codes for sub work items
Search the CA Unified Certification database
Apply factors to sub work (100%, 12%)
Calculate a preliminary goal
Multiply by 60% factor
Round to whole % for contract goal

19. STEP ONE
Identify work items typically performed by Prime Consultant or Contractor, i.e., firm awarded the contract, and…

20. STEP ONE
Identify work items with opportunities for parts or material supply

21. PRIME ITEMS Prior projects Project Managers Where’s the money
Don’t assume there are no subcontracting opportunities because the Prime performed all of the work on a similar job and on the other hand, don’t assume that all work can be subcontracted leaving no work for the prime
Proj Mgrs: historical knowledge, items that could be subcontracted or an opportunity for material supply
$: prime = perform high-value items.

22. STEP ONE
Actual subrecipient project.
Prime consultant

23. STEP ONE

24. STEP TWO
Determine work category codes for Subcontractor work items

25.
Excel spreadsheet

26. Work Category Code List
Work Category Code List
Excel spreadsheet

27. Work category codes
Tabs: Professional services & All Industries

28. Need screen shot ofconsultant or construction project
Apply work category codes
Need screen shot ofconsultant or construction project

29. Second Poll Sole source = proprietary
Different from a non-competitively bid contract

30. STEP THREE
Perform search by District for DBE availability

31. STEP THREE
Query CALIFORNIA UNIFIED CERTIFICATION PROGRAM (CUCP) database
District • Work Category Code

32.
CUCP

33. CUCP database District Work Code District project is located.
Wk Code: I7810-Motion picture & video tape production

34. CUCP search results
Note to use “Back to Query Form” hyperlink rather than browser back button

35. CUCP search results
Note to use “Back to Query Form” hyperlink rather than browser back button

36. STEP THREE

37. STEP FOUR
Apply work estimate factors

38. STEP FOUR
Sub
Materials
≥ 10 DBEs

39. STEP FOUR

40. STEP FIVE
Calculate a
“Soft Goal”
DBE $
Total $

41. STEP FIVE
$10,750
$861,225

42. STEP FIVE
1.25%

43. Third Poll Sole source = proprietary
Different from a non-competitively bid contract

44. STEP SIX
Multiply goal by 60% factor

45. STEP SIX Over-representation Competition
10 firms: 6 are ready, willing and able to perform on your contract.

46. STEP SIX
1.25% x 60% = .75%

47. STEP SEVEN
Round goal to nearest whole percent

48. STEP SEVEN
.75% = 1%

49. EXAMPLES

50. EXAMPLE 1.1
Emphasize Accountability: Zero-percent goal vs no goal. Accountability.

51. EXAMPLE 1.2

52. EXAMPLE 2 I7336-COMMERICAL ART AND GRAPHIC DESIGN
D2750-COMMERCIAL PRINTING
C8712-PUBLIC RELATIONS

53. EXAMPLE 3 I7336-COMMERICAL ART AND GRAPHIC DESIGN
D2750-COMMERCIAL PRINTING
C8712-PUBLIC RELATIONS

54. RECAP: Seven Steps
Identify work items typically performed by prime; element of material supply
Determine work category codes for sub work items
Search the CA Unified Certification database
Apply factors to sub work (100%, 12%)
Calculate a preliminary goal
Multiply by 60% factor
Round to whole % for contract goal

55. TIPS
Suppliers
Contingency $

56. TIPS
Set a DBE goal
ADVERTISED ON OR AFTER
OCT 1, 2017

57. CALTRANS APPROVAL Before advertisement: 0% DBE goal or ≥ $750,000
Submit to Caltrans for approval
Caltrans will confirm or revise goal

58. SUBMIT GOAL WKSHEET DOT.FTADBEGoal@ dot.ca.gov
Submit to Caltrans for approval
Allow 15 working days for review

59. REMINDER DBE Commitment: ADM-0227F
Utilization/payment (ALL Subs/Suppliers):
ADM-3069

60. COMING SOON
Update to the State Management Plan

61. Last Poll Sole source = proprietary
Different from a non-competitively bid contract

62. OBJECTIVE
How to set DBE contract goals

63. QUESTIONS DOT.FTADBEGoal@ dot.ca.gov
Mailbox for contract goal questions and approvals
Forms: follow form instructions

64. WEBSITES Caltrans: www.dot.ca.gov
Division of Rail & Mass Transportation:
Division of Transportation Planning:
Division of Local Assistance:
Office of Business & Economic Opportunity:

65. POST ASSESSMENT Thank you for attending today’s webinar!
Division of Rail & Mass Transportation
Division of Transportation Planning
Division of Local Assistance
Office of Business & Economic Opportunity
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