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

• 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.

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.

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.

Historical DBE ParticipationFiscal Year DBE Participation Total Dollars to DBE

Firms2008 16.7% $489,357

2007 8.7% $740,654

2006 5.94% $513,367

2005 6.23% $1,756,996

2004 7.07% $2,362,340

2003 12.58% $1,425,771

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%.

DBE Program FAQ

• DBEs can be – construction firms– engineering firms – consulting firms– concessionaires – vendors– architecture firms

– procurement firms – suppliers– real estate firms – and many others

What type of businesses are certified as DBEs?

DBE Program FAQ

How does the Airport determine what firms qualify as DBEs?

• The Louisiana Unified Certification Program (LA UCP)

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 nameCertifying agency ParishCity

Type of service DescriptionNAICS code Item code

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.

DBE Requirements for an RFQ/RFP/RFB

• Make Good Faith Efforts to obtain DBE participation by EITHER:1. Meeting or exceeding the goal set for the project ,

OR2. Making AND documenting Good Faith Efforts

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:o Postal correspondenceo E-mailo Faxo Telephone logo Printed advertisements

DBE Contacts

DBE LiaisonJason Wilson, MBA

Administrative and Development Manager

Greater Baton Rouge Airport District

DBE Compliance OfficersBonnie Garrigan and

Audrey PulitzerTMG Consulting

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

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

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

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

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

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

Schedule B

• Commits DBE to working with Prime Contractor

• Need one per DBE• Needed for DBE Prime Contractors• Need not be original

Schedule BDBE Firm’s Participation Assurance Form

Schedule BDBE Firm’s Participation Assurance Form

For RFQs, write n/a

Schedule BDBE Firm’s Participation Assurance Form

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

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

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

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.

Schedule CDBE Unavailability Certification

Schedule C: Common Mistake

• Failure to include documentation of the good faith efforts taken to meet the DBE goal for the project

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.

Questions?

Bonnie Garrigan or Audrey Pulitzer

TMG Consulting365 Canal Street, Suite 1170

New Orleans, La 70130

504-569-9239 ex 29 (Bonnie) or 30 (Audrey)