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Advanced DBE Tutorial

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.

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Advanced DBE Tutorial

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  1. Advanced DBE Tutorial June 10, 2009

  2. 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.

  3. 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.

  4. 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.

  5. 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.

  6. Historical DBE Participation 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%.

  7. 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

  8. DBE Program FAQ How does the Airport determine what firms qualify as DBEs? • The Louisiana Unified Certification Program (LA UCP)

  9. 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 • NAICScode • Item code

  10. 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.

  11. DBE Requirements for an RFQ/RFP/RFB • Make Good Faith Efforts to obtain DBE participation by EITHER: • Meeting or exceeding the goal set for the project , OR • Making AND documenting Good Faith Efforts

  12. 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: • Postal correspondence • E-mail • Fax • Telephone log • Printed advertisements

  13. 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

  14. 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

  15. 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

  16. Schedule ARespondent’s or Proposer’s DBE Participation Assurance Form

  17. Schedule ARespondent’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

  18. Schedule ARespondent’s or Proposer’s DBE Participation Assurance Form

  19. 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 non-DBE firm, which would make their percentage of participation lower

  20. Schedule B • Commits DBE to working with Prime Contractor • Need one per DBE • Needed for DBE Prime Contractors • Need not be original

  21. Schedule BDBE Firm’s Participation Assurance Form

  22. Schedule BDBE Firm’s Participation Assurance Form For RFQs, write n/a

  23. Schedule BDBE Firm’s Participation Assurance Form

  24. 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

  25. 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

  26. 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

  27. 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.

  28. Schedule CDBE Unavailability Certification

  29. Schedule C: Common Mistake • Failure to include documentation of the good faith efforts taken to meet the DBE goal for the project

  30. 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.

  31. 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)

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