Disadvantaged Business Enterprise

Program Plan U.S. Department of Transportation

Federal Aviation Administration

June 2017

TABLE OF CONTENTS

PORT OF OAKLAND

DISADVANTAGED BUSINESS ENTERPRISE PLAN FEDERAL AVIATION ADMINISTRATION

Commitment to the DBE Program 49 CFR Part 26 1 Policy Statement § 26.1 1 Responsibilities 2 Dissemination of Policy Statement §26.23 2 I. DBE LIAISON OFFICER §26.25

A. Social Responsibility Director

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II. ADMINISTRATIVE REQUIREMENTS 49 CFR Part 26

A. Nondiscrimination DBE §26.7 B. Record Keeping and Reporting §26.11 C. Federal Financial Assistance Agreement Assurance §26.13(a) D. DBE Program Exemptions and Waivers §26.15 E. DBE Financial Institution §26.27 F. Prompt Payment Mechanisms §26.29 G. DBE Database Directory §26.31 H. Over-Concentration §26.33 I. Business Development and Mentor Protégé Programs §26.35 J. Fostering Small Business Participation §26.39 K. Set-Asides or Quotas §26.43 L. Monitoring DBE Participation §26.37 M. Overall Goals §26.45 N. Failure to Meet Overall Goals §26.47 O. Method of Meeting Overall Goals and Breakout of Estimated

Race-Neutral & Race-Conscious Participations §26.51 and Examples of Race-Neutral Activities that the Port will Perform

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III. GOOD FAITH EFFORTS §26.53

A. Counting DBE Participation Toward Goals §26.55

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IV. DBE CERTIFICATION STANDARDS AND PROCEDURES §26.61 - 26.73

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V. SUBPART F – COMPLIANCE AND ENFORCEMENT §26.109 INFORMATION, CONFIDENTIALITY, COOPERATION AND INTIMIDATION OR RETALIATION

VI. ATTACHMENTS A - J

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PORT OF OAKLAND

DISADVANTAGED BUSINESS ENTERPRISE (DBE) PROGRAM PLAN

FEDERAL AVIATION ADMINISTRATION

Commitment to the DBE Program The Port of Oakland (Port) receives federal financial assistance from the United States Department of Transportation (US DOT), Federal Aviation Administration (FAA). As required by federal law, the Port of Oakland implements a Disadvantaged Business Enterprise (DBE) Program. The Port is committed to implementing its DBE Program in accordance with the applicable requirements of 49 Code of Federal Regulations (CFR) Part 26, and has signed an assurance to that effect with the US DOT Federal Aviation Administration as a condition of continued eligibility for federal financial assistance.

Policy Statement §26.1

It is the Port’s policy to ensure nondiscrimination in the award and administration of US DOT federally-assisted contracts in accordance with applicable requirements of 49 CFR Part 26. The Port’s objectives are to: • To ensure nondiscrimination in the award and administration of DOT- assisted

contracts;

• To create a level playing field on which DBEs can compete fairly for DOT-assisted contracts;

• To ensure that the DBE Program is narrowly tailored in accordance with applicable law;

• To ensure that only firms that fully meet 49 CFR Part 26 eligibility standards are permitted to participate as DBEs;

• To help remove barriers to the participation of DBEs in DOT assisted contracts;

• To promote the use of DBEs in all types of federally-assisted contracts and procurement activities;

• To assist the development of firms that can compete successfully in the market place outside the DBE Program; and

• To provide appropriate flexibility to recipients of Federal financial assistance in establishing and providing opportunities for DBEs.

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As a note to the readers of the DBE Program Plan, an organizational chart is included as Attachment A and identifies the DBELO’s position as well as Port departments interacting with the program. A sample Bidder’s List is included as Attachment B. A glossary and definitions of terms used in the DBE Program Plan is included as Attachment C. A list of internet and website addresses referenced in the DBE Program Plan including a link to 49 CFR Part 26 is included as Attachment D. The Port’s Goal and Methodology approach to overall goal calculations is included as Attachment E. Port project manual bidding forms 00431, 00435 and 00437 serve as Attachment F for Demonstration of Good Faith Efforts or Good Faith Effort Plan. DBE Monitoring and Enforcement Mechanisms is included as Attachment G. The DBE Certification Application Form is included as Attachment H. The CUCP Agreement and Port’s resolution as a signatory agency and participant in the California Unified Certification Program is included as Attachment I. The Port’s Small Business Element Program to this DBE Program is included as Attachment J.

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I. DBE Liaison Officer (DBELO) §26.25 The Director of Social Responsibility/DBELO has direct access to the Executive Director of the Port and is responsible for developing, implementing and monitoring all aspects of the DBE Program on a daily basis. The Director/DBELO works closely with various Port divisions, manager and consultants in the daily delivery of DBE Program requirements. The Director/DBELO may be contacted as follows:

Amy Tharpe

Director, Social Responsibility Division DBE Liaison Officer

Port of Oakland 530 Water Street

Oakland, CA 94607 Phone: (510) 627-1302

Facsimile: (510) 451-1645 Email: atharpe@portoakland.com

A. Director of Social Responsibility/DBELO

1. Develops, maintain and implements DBE Program policy;

2. Advises the Executive Director and governing bodies on DBE

Program matters and achievements;

3. Provides guidance and oversight to the administrators on all functional DBE Program elements in the Port;

4. Promotes the DBE Program through business communication and

outreach;

5. Assists all small businesses meeting the requisite size standards, including DBEs, in obtaining necessary resources to compete fairly and successfully in the Port marketplace by providing technical assistance, surety bonding, access to capital and other supportive services as necessary;

6. Oversees gathering and reporting of statistical data and other

information as required by US DOT (FAA);

7. Establishes and maintains good working relationships with industry associations and community-based organizations;

8. Plans and participates in small business training seminars;

9. Oversees the training provided to Port management and staff

having responsibilities for the DBE Program;

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10. Identifies contracts and procurements so that DBE goals are

included in solicitations (currently race-neutral methods) and monitors results;

11. Participates in pre-bid and pre-job meetings;

12. Provides DBEs with information and assistance in preparing bids,

obtaining bonding and insurance;

13. Represents the Port in the California Unified Certification Program;

14. Works with the Director of Engineering and the Chief Financial Officer on the collection of information to establish the Port’s Bidder’s List and DBE records and reports, pursuant to 49 CFR, Part 26, §26.11;

15. Maintains the Port’s Bidder’s List and DBE records;

16. Analyzes progress toward attainment and identifies ways to

improve progress;

17. Provides guidance in establishing the overall annual DBE goal and methodology;

18. Ensures timely preparation and submittal of annual reports to the

US DOT FAA. II. Administrative Requirements 49 CFR Part 26 Subpart B

A. Nondiscrimination DBE §26.7

The Port will never exclude any person from participation in, deny any person the benefits of, or otherwise discriminate against anyone in connection with the award and performance of any contract covered by 49 CFR Part 26 on the basis of race, color, sex, or national origin. The Port does not, directly or through contractual or other arrangements, use criteria or methods of administration that have the effect of defeating or substantially impairing accomplishment of the objectives of the DBE Program with respect to individuals of a particular race, color, sex, or national origin.

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B. Record Keeping and Requirements §26.11

1. Scheduled Reporting

The Port shall provide data about the DBE Program to the Department as directed by DOT operating administrations. We will transmit to FAA annually on December 1, the “Uniform Report of DBE Awards or Commitments and Payments” form, found in Appendix B to this part. We will also report the DBE contractor firm information either on the FAA DBE Contractor’s Form or other similar format. We will use the latest revised Uniform Report of DBE Awards or Commitments and Payments for reporting.

2. Bidder’s List 26.11(c)

The Port will create and maintain a bidders list. The purpose of the is to provide as accurate data as possible about the universe of DBE and non-DBE contractors and subcontractors who seek to work on our DOT-assisted contracts for use in helping to set our overall goals. The bidders list will include the name, address, DBE and non-DBE status, age of firm, and annual gross receipts of firms. We will supplement this collection effort and gather information utilizing documents 00431 – Bidder DBE Information Form, 00435 – Subcontractor List Form and 00437 Supplemental Subcontractor List Form found in the Port bidding Project Manual for Dot –assisted contracts.

3. DBE Program Updates 26.21

The Port is required to have a DBE program meeting the requirements of this part as it will receive grants for airport planning or development and will award prime contracts, cumulative total value of which exceeds $250,000 in FAA funds in a federal fiscal year. We are not eligible to receive DOT financial assistance unless DOT has approved our DBE program and we are in compliance with it and this part. We will continue to carry out our program until all funds from DOT financial assistance have been expended. We do not have to submit regular updates of our program, as long as we remain in compliance. However, we will submit significant changes in the program for approval.

4. Ad-Hoc Reports Information regarding the program will be submitted to the US DOT FAA

as requested.

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C. Federal Financial Assistance Agreement Assurance §26.13 (a)(b) The Port has signed the following assurance, applicable to all US DOT-assisted contracts and their administration. The same language appears in financial assistance agreements with all subrecipients of US DOT-assisted contracts: Assurance: 26.13 (a) - Each financial assistance agreement the Port signs with a DOT operating administration (or a primary recipient) will include the following assurance:

“The Port shall not discriminate on the basis of race, color, national origin or sex in the award and performance of any US DOT-assisted contract or in the administration of its DBE Program or the requirements of 49 CFR Part 26. The Port shall take all necessary and reasonable steps of 49 CFR Part 26 to ensure nondiscrimination the award and administration of US DOT-assisted contracts. The recipient’s DBE Program, as required by 49 CFR Part 26 and as approved by US DOT, is incorporated by reference in this agreement. Implementation of this program is a legal obligation and failure to carry out its terms shall be treated as a violation of this agreement. Upon notification to the Port of the failure to carry out its approved program, the Department may impose sanctions as provided for under 49 CFR part 26 and may, in appropriate cases, refer the matter for enforcement under 18 U.S.C. 1001 and/or the Program Fraud Civil Remedies Act of 1986 (31 U.S.C. 3801 et seq. ).”

Contract Assurance: 26.13b – The Port will ensure that the following clause is included in each contract we sign with a contractor and each subcontract the prime contractor signs with a subcontractor:

“The contractor, sub-recipient or subcontractor shall not discriminate on the basis of race, color, national origin, or sex in the performance of this contract. The contractor shall carry out applicable requirements of 49 CFR Part 26 in the award and administration of DOT-assisted contracts. Failure by the contractor to carry out these requirements is a material breach of this contract, which may result in the termination of this contract or such other remedy as the recipient deems appropriate, which may include, but is not limited to: (1) Withholding monthly progress payments; (2) Assessing sanctions; (3) Liquidated damages; and/or (4) Disqualifying the contractor from future bidding as non-responsible.”

D. DBE Program Exemptions or Waivers §26.15

The Port understands that to request an exemption from any portion of the provision, it must be done in writing and requested of the Office of the Secretary of Transportation or FAA.

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E. DBE Financial Institution §26.27

The Port will investigate the full extent of services offered by financial institutions owned and controlled by socially and economically disadvantaged individuals in the community, to make reasonable efforts to use these institutions, and to encourage prime contractors on DOT-assisted contracts to make use of these institutions when the opportunity arises.

F. Prompt Payment Mechanisms §26.29

The Port has established, as part of its DBE Program, a contract clause to require prime contractors to pay subcontractors for satisfactory performance of their contracts no later than 30 days from receipt of each payment you make to the prime contractor. We will ensure prompt and full payment of retainage from the prime contractor to the subcontractor within 30 days after the subcontractor's work is satisfactorily completed. All federal-aid and US DOT-assisted projects include a specification that directs the Port to not withhold retention from the prime contractor and that the prime contractor and any of its subcontractors may not withhold retention from any subcontractor for work accepted and completed. The Port will consider a subcontractor's work is satisfactorily completed when all the tasks called for in the subcontract have been accomplished and documented as required. When the Port has made an incremental acceptance of a portion of a prime contract, the work of a subcontractor covered by that acceptance is deemed to be satisfactorily completed. The Port will provide appropriate means to enforce the requirements of this section and may include delay, partial or postponement of payment for good cause. Monitoring Payments to DBEs We will require prime contractors to maintain records and documents of payments to DBEs for three years following the performance of the contract. These records will be made available for inspection upon request by any authorized representative of the Port or DOT. This reporting requirement also extends to any certified DBE subcontractor. Interim audits may be performed on contract payments to DBEs. The audit will review payments to DBE subcontractors to ensure that the actual amount paid to DBE subcontractors equals or exceeds the dollar amounts stated in the schedule of DBE participation.

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G. DBE Database Directory §26.31 The Port utilizes the State of California DBE directory maintained by the State. The Port is signatory to the California Unified Certification Program. A sample CUCP DBE certification application serves as Attachment H and we make the application available by website link. The application may be found at: http://www.californiaucp.org/ http://www.caltrans.ca.gov/hq/bep/documents/sample_application.pdf The DBE directory lists the firm’s name, address, phone number, and the type of work the firm has been certified to perform as a DBE. In addition, the directory lists each type of work for which a firm is eligible to be certified by using the most specific NAICS code available to describe each type of work. The state (California) CUCP revises the Directory and we make the Directory available by website link. The Directory may be found at: www.dot.ca.gov/hq/bep/doingbizdetail.htm

A published printed copy of the directory is available at a cost of $20. The directory may be ordered by contacting the California Department of Transportation Publications Unit at (916) 445-3520, or sending a request to the address below:

California Department of Transportation Publications Distribution Unit

1900 Royal Oaks Drive Sacramento, CA 95815

H. Over-Concentration §26.33

The Port has determined that there is no over-concentration of DBE firms on major construction. Should the Port determine that there is an over-concentration of DBEs, appropriate measures to address the over-concentration would be employed, i.e., the use of technical assistance programs, business development programs, or mentor protégé programs.

I. Business Development and Mentor Protégé Programs §26.35

At the present time, the Port does not administer any business development or mentor protégé programs directly. However, prime contractors are encouraged to establish mentor/protégé relationships when feasible.

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Additionally, the Port assists DBEs in finding resources that will assist them in further developing their firms, i.e., business development, bonding and financing resources, etc.

J. Fostering Small Business Participation §26.39 The Port has created a Small Business (SB) Element to structure contracting requirements to facilitate competition by small business concerns, taking all reasonable steps to eliminate obstacles to their participation, including unnecessary and unjustified bundling of contract requirements that may preclude small business participation in procurements as prime contractors or subcontractors. The Port’s SB element identifies projects for only SBEs to bid on which DBEs and SBEs can reasonably perform. This may include a prequalifying process if deemed necessary. These projects are open to any certified small business regardless of location with no local or geographic preference. SBE size standards shall be consistent with 49 CFR 26.5 and no larger than the Small Business Administration’s size standard. SBE certification by any bonafide SBE certifying agency is utilized, verified and deemed valid. There will be no limits on the number of contracts awarded to firms participating in the Small Business Program. Every effort will be made to avoid creating barriers to the use of new, emerging or untried businesses. The Port’s SB element is incorporated as Attachment J. We will actively implement the program elements to foster small business participation including monitoring doing so is a requirement of good faith implementation of our DBE program.

K. Set-Asides or Quotas §26.43

Federal regulations prohibit the use of set-asides or quotas and the Port does not use them in the administration of the DBE Program.

L. Monitoring and Enforcement Mechanisms §26.37

The Port monitors and tracks actual DBE participation through contractor and subcontractor reports and appropriate monitoring methods (quarterly and final reporting to the Port). On an annual basis, the Port will prepare the Uniform Report of DBE Awards or Commitments and Payments and forward the report to FAA. DBE participation will be counted toward the overall annual DBE goal, in accordance with the Federal regulations. The Port will take the following monitoring and enforcement mechanisms to ensure compliance with 49 CFR Part 26.

1. We will bring to the attention of the Department of Transportation any false, fraudulent, or dishonest conduct in connection with the program, so that DOT can take the steps (e.g., referral to the Department of Justice for

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criminal prosecution, referral to the DOT Inspector General, action under suspension and debarment or Program Fraud and Civil Penalties rules) provided in 26.107.

2. We will implement similar action under our own legal authorities, including

responsibility determinations in future contracts. Attachment G lists the regulation, provisions, and contract remedies available to us in the events of non-compliance with the DBE regulation by a participant in our DBE Program.

3. We will implement a monitoring and enforcement mechanism to ensure

that work committed to DBEs at contract award or subsequently (i.e., as the result of modification to the contract) is actually performed by the DBEs to which the work was committed.

4. We will implement a monitoring and enforcement mechanism that will

include written certification that we have reviewed contracting records and monitored work sites for this purpose. This will be accomplished by a contractual requirement that quarterly and final DBE reporting shall be submitted to the Port.

5. We will implement a mechanism that will provide for a running tally of

actual DBE attainments (e.g., payment actually made to DBE firms), including a means of comparing these attainments to commitments. In our reports of DBE participation to DOT, we will show both commitments and attainments, as required by the DOT uniform reporting form.

Attachment G serves as the Port’s DBE Monitoring and Enforcement Mechanisms.

M. Overall Goals §26.45

The Port will establish an overall DBE goal covering a three-year federal fiscal year period if we anticipate awarding DOT/FAA funded prime contracts the cumulative total value of which exceeds $250,000 during any one or more of the reporting fiscal years within the three-year goal period. In accordance with Section 26.45(f) the Port will submit its Overall Three-year DBE Goal to FAA by August 1st as required by the established schedule below. Large & Medium Hub Primary – All Regions Date Due Goal Period – August 1, 2016 (2017/2018/2019) Next Goal Due (Goal Period) – August 1, 2019 (2020/2021/2022) The DBE goals will be established in accordance with the 2-step process as specified in 49 CFR Part 26.45. If the Port does not anticipate awarding DOT/FAA funded prime contracts the cumulative total value of which exceeds $250,000 during any of the years within the three-year reporting period, we

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will not develop an overall goal; however, this DBE Program will remain in effect and the Port will seek to fulfill the objectives outlined in 49 CFR Part 26.1. (c) Step 1. The first step is to determine the relative availability of DBEs in the market area, “base figure”. We will use DBE Directories and Census Bureau Data as a method to determine our base figure. The second step is to adjust the “base figure” percentage from Step 1 so that it reflects as accurately as possible the DBE participation the recipient would expect in the absence of discrimination based on past participation and/or information about barriers to entry to past competitiveness of DBEs on Contracts.

Any methodology we choose will be based on demonstrable evidence of local market conditions and be designed to ultimately attain a goal that is rationally related to the relative availability of DBEs in our market. We understand that the exclusive use of a list of prequalified contractors or plan holders, or a bidders list that does not comply with the requirements of paragraph (c)(2) of this section (above), is not an acceptable alternative means of determining the availability of DBEs. (d) Step 2. Once we have calculated a base figure, we will examine all of the evidence available in our jurisdiction to determine what adjustment, if any, is needed to the base figure to arrive at our overall goal. If the evidence does not suggest an adjustment is necessary, then no adjustment shall be made. 26.45 (g)(1) In establishing the overall goal, the Port will provide for consultation and publication. This includes consultation with minority, women’s and general contractor groups, community organizations, and other officials or organizations which could be expected to have information concerning the availability of disadvantaged and non-disadvantaged businesses, the effects of discrimination on opportunities for DBEs, and the Port’s efforts to establish a level playing field for the participation of DBEs. The consultation will include a scheduled, direct, interactive exchange (e.g., website posting, hotline telephone number, a face-to-face meeting, webinar, teleconference) with as many interested stakeholders as possible focused on obtaining information relevant to the Port’s goal setting process, and it will occur before we are required to submit our goal methodology to the operating administration for review pursuant to paragraph (f) of this section. We will document in our goal submission the consultation process that we engaged in. Notwithstanding paragraph (f)(4) of this section, we will not implement our proposed goal until we have complied with this requirement. In addition, the Port will publish a notice announcing our proposed overall goal before submission to the operating administration on August 1st. The notice will be posted on our official internet web site and may be posted in any other sources (e.g., minority-focused media, trade association publications). If the proposed goal changes following review by the operating

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administration, the revised goal will be posted on our official internet web site. We will inform the public that the proposed overall goal and its rationale are available for inspection during normal business hours at our principal office and that the Port and DOT/FAA will accept comments on the goals for 30 days from the date of the notice. Notice of the comment period will include the addresses to which comments may be sent (including offices and websites) where the proposal may be reviewed. The public comment period will not extend the August 1st deadline. Our Overall Three-Year DBE Goal submission to DOT/FAA will include a summary of information and comments received, if any, during this public participation process and our responses. We will begin using our overall goal on October 1 of the reporting period, unless we have received other instructions from DOT. Project specific goals are not applicable at the update of this DBE program. The Port has been and is operating under a race neutral triennial goal. 26.45 (f) - Prior Operating Administration Concurrent The Port understands that we are not required to obtain prior operating administration concurrence with our overall goal. However, if the operating administration’s review suggests that our overall goal has not been correctly calculated or that our method for calculating goals is inadequate, the operating administration may, after consulting with us, adjust our overall goal or require that we do so. The adjusted overall goal is binding. In evaluating the adequacy or soundness of the methodology used to derive the overall goal, the U.S. DOT operating administration will be guided by the goal setting principles and best practices identified by the Department in guidance issued pursuant to § 26.9. A description of the methodology to calculate the overall goal and the goal calculations can be found in Attachment E to this program.

N. Failure to Meet Overall Goals §26.47

The Port will maintain an approved DBE Program and overall DBE goal, if applicable as well as administer our DBE Program in good faith to be considered to be in compliance with this part.

If the Port awards and commitments shown on our Uniform Report of Awards or Commitments and Payments at the end of any fiscal year are less than the overall goal applicable to that fiscal year, we will do the following in order to be regarded by the Department as implementing your DBE Program in good faith:

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(1) Analyze in detail the reasons for the difference between the overall goal and our awards and commitments in that fiscal year;

(2) Establish specific steps and milestones to correct the problems we have identified in our analysis and to enable us to meet fully your goal for the new fiscal year;

(3) The Port will prepare, within 90 days of the end of the fiscal year, the analysis and corrective actions developed under paragraph (c)(1) and (2) of this section. We will retain copy of analysis and corrective actions in records for a minimum of three years, and will make it available to FAA upon request.

O. Method of Meeting Overall Goals §26.51 and Breakout of Estimated Race-Neutral & Race-Conscious Participations 26.51 (a-c)

As, the Port is administering a race-neutral program, the Port seeks to meet the overall annual DBE goal by using race-neutral measures to the maximum extent feasible. The Port does not intend to use any race-conscious means of obtaining DBE participation and there will not be project specific goals. (a) The Port will meet the maximum feasible portion of its overall goal by using race-neutral means of facilitating race-neutral DBE participation. Race-neutral DBE participation includes any time a DBE wins a prime contract through customary competitive procurement procedures or is awarded a subcontract on a prime contract that does not carry a DBE contract goal. Race-neutral means include, and race-neutral measures to assist businesses, but are not limited to the following: (1) Conducting business communication and outreach activities to increase small business participation (e.g. market the CUCP database of certified DBEs that are also small businesses that meet the requisite federal size standards; (2) Arranging solicitations, times for the presentation of bids, quantities, specifications, and delivery schedules in ways that facilitate participation by DBEs and other small businesses and by making contracts more accessible to small businesses, by means such as those provided under §26.39 of this part. (3) Providing assistance in overcoming limitations such as inability to obtain bonding or financing (e.g., by such means as simplifying the bonding process, reducing bonding requirements, eliminating the impact of surety costs from bids, and providing resource information to help DBEs, and other small businesses, obtain surety bonding, liability insurances and financing);

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(4) Providing technical assistance and other services (e.g., Port Contracting 101 covering procurement and contracting processes and procedures); (5) Carrying out information and communications programs on contracting procedures and specific contract opportunities (e.g., hosting construction pre-bid and outreach meetings, ensuring the inclusion of DBEs, and other small businesses, on recipient mailing lists for bidders; ensuring the dissemination to bidders on prime contracts of lists of potential subcontractors and facilitating networking among potential primes and subcontractors; (6) Implementing a supportive services program to develop and improve immediate and long-term business management, record keeping, and financial and accounting capability for DBEs and other small businesses; (7) Providing services to help DBEs, and other small businesses, improve long-term development, increase opportunities to participate in a variety of kinds of work, handle increasingly significant projects, and achieve eventual self-sufficiency; (8) Periodically update the Port’s website information on small business activities so that anyone interested may obtain practical advice on how to market their business, finding contracting opportunities with the Port and other regional agencies, as well as other useful resources and information.

(9) Assisting DBEs, and other small businesses, to develop their capability to utilize emerging technology and conduct business through electronic media. (10) Work with organizations (e.g. Associated General Contractors (AGC), Engineering and Utility Contractors Association (EUCA) and other industry groups, to identify ways to assist small businesses that meet the requisite size standards, including DBEs, to increase their opportunities to participate as contractor or subcontractors on Port projects. (11) Partner with the Small Business Administration, Small Business Development Centers and other government agencies to increase opportunities and resources for small businesses. Contract Goals §26.51 (d-g) The Port will arrange solicitations, times for the presentation of bids, quantities, specifications, and delivery schedules in ways that facilitate participation by DBEs and other small businesses and by making contracts more accessible to small businesses, by means such as those provided under § 26.39. The Port will not be setting project specific goals as we are and have been administering our overall goal (DBE) program in a race-neutral manner.

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III. Good Faith Efforts §26.53

The Port does not establish contract specific goals as it is administering a race-neutral program and cannot apply good faith efforts as a condition of contract award. However, the Port will make good faith efforts on an ongoing basis to ensure that Contractors are outreaching to potential DBE subcontractors. To this end, Port staff will: A. Meet with prime contractors at the pre-bid conference of federally funded

projects. Also meet with primes working on federal aid projects to review their outreach efforts in utilizing DBEs to the maximum extent feasible in subcontracting opportunities.

B. Review quarterly utilization reports from prime contractors to determine if

contractors are utilizing DBEs committed to work items.

1. This will include periodic sampling of ongoing contracts to determine if prime contractors are assisting the Port in meeting DBE commitments.

2. Determine if DBEs are actually performing the commercially useful

function (CUF) for which they have been listed.

C. Work with prime contractors to identify additional subcontracting opportunities if possible on ongoing federal aid projects.

D. Counting DBE Participation Toward Goals §26.55

We will count DBE participation toward overall and contract goals as provided in 49 CFR 26.55. We will not count the participation of a DBE subcontract toward a contractor’s final compliance with its DBE obligations on a contract until the amount being counted has actually been paid to the DBE. If the firm is not currently certified as a DBE in accordance with the standards of subpart D of this part at the time of the execution of the contract, we will not count the firm’s participation toward any DBE goals, except as provided for in 26.87(j).

IV. DBE Certification Standards and Procedures §26.61 - 26.73

The DBE certification process allows small businesses, which are independently owned and controlled by one or more socially and

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economically disadvantaged individuals, admittance into the DBE Program. The Program’s goal is to remove barriers to DBE participation in federally-assisted projects. The Port will use the certification standards of Subpart D of Part 26 to determine the eligibility of firms to participate as DBEs in DOT-assisted contracts DBE certification standards and procedures for State of California federal-aid recipients are handled by the California Unified Certification Program (CUCP). The Port is signatory to the CUCP and does not certify DBEs. More information on the CUCP can be found at: http://californiaucp.org/ For information concerning DBE certification, please visit the following website: http://www.dot.ca.gov/hq/bep/ucp.htm

V. Subpart F – Compliance and Enforcement §26.109

Information, Confidentiality, Cooperation and Intimidation or Retaliation

We will safeguard from disclosure to third parties information that may reasonably be regarded as confidential business information, consistent with Federal, state, and local law. Notwithstanding any provision of Federal or state law, we will not release any information that may reasonably be construed as confidential business information to any third party without the written consent of the firm that submitted the information. The Port is signatory to the CUCP and does not certify DBEs. All participants in the Department's DBE program (including, but not limited to, recipients, DBE firms and applicants for DBE certification, complainants and appellants, and contractors using DBE firms to meet contract goals) are required to cooperate fully and promptly with DOT and recipient compliance reviews, certification reviews, investigations, and other requests for information. Failure to do so shall be a ground for appropriate action against the party involved (e.g., with respect to recipients, a finding of noncompliance; with respect to DBE firms, denial of certification or removal of eligibility and/or suspension and debarment; with respect to a complainant or appellant, dismissal of the complaint or appeal; with respect to a contractor which uses DBE firms to meet goals, findings of non-responsibility for future contracts and/or suspension and debarment).

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The Port, contractor, or any other participant in the program will not intimidate, threaten, coerce, or discriminate against any individual or firm for the purpose of interfering with any right or privilege secured by this part or because the individual or firm has made a complaint, testified, assisted, or participated in any manner in an investigation, proceeding, or hearing under this part. If we violate this prohibition, we are in noncompliance with this part.

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VI. Attachments

Attachment A

PORT OF OAKLAND DBE FUNCTIONAL ORGANIZATIONAL CHART

BOARD OF PORT COMMISSIONERS

EXECUTIVE DIRECTOR

LEGAL DIVISION

DBELO

SRD

AVIATION DIVISION

ENGINEERING DIVISION

FINANCE DIVISION

MARITIME DIVISION

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Attachment B

Bidder’s List Collection Form

Firm Name Firm

Address/ Phone #

DBE or Non-DBE Status (verify via

State’s UCP Directory)

Age of Firm Annual Gross Receipts

Less than 1 year 1- 3 years 4-7 years 8-10 years More than 10 years

Less than $500K $500K - $1 million $1-2 million $2-5 million Greater than $5 million

Less than 1 year 1- 3 years 4-7 years 8-10 years More than 10 years

Less than $500K $500K - $1 million $1-2 million $2-5 million Greater than $5 million

Less than 1 year 1- 3 years 4-7 years 8-10 years More than 10 years

Less than $500K $500K - $1 million $1-2 million $2-5 million Greater than $5 million

Less than 1 year 1- 3 years 4-7 years 8-10 years More than 10 years

Less than $500K $500K - $1 million $1-2 million $2-5 million Greater than $5 million

Less than 1 year 1- 3 years 4-7 years 8-10 years More than 10 years

Less than $500K $500K - $1 million $1-2 million $2-5 million Greater than $5 million

Less than 1 year 1- 3 years 4-7 years 8-10 years More than 10 years

Less than $500K $500K - $1 million $1-2 million $2-5 million Greater than $5 million

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Attachment C

Definitions

Definitions (Section 26.5)

Any terms used in this Program that are defined in 49 C.F.R. § 26.5 or elsewhere in the Regulations shall have the meaning set forth in the Regulations. Some of the most common terms are defined below:

A. DOT Assisted (Section 26.5) Any contract between a recipient and a contractor (at any tier) funded in whole or part with DOT financial assistance, including letters of credit or loan guarantees, except a contract solely for the purchase of land.

B. Disadvantaged Business Enterprise (DBE) (Section 26.5)

A DBE is a for-profit, small business concern: 1) that is at least fifty-one percent (51%) owned by one or more individuals who are both socially and economically disadvantaged, or, in the case of a corporation, in which fifty-one percent (51%) of the stock is owned by one or more socially and economically disadvantaged individuals; and 2) whose management and daily business operations are controlled by one or more of the socially and economically disadvantaged individuals who own it.

C. Small Business Concern (Section 26.5)

With respect to firms seeking to participate as DBEs in DOT-assisted contracts, a small business concern as defined pursuant to section 3 of the Small Business Act and Small Business Administration regulations implementing it (13 CFR part 121) that also does not exceed the cap on average annual gross receipts specified in §26.65(b).

D. Socially and Economically Disadvantaged Individuals (Section 26.5)

Any individual who is a citizen (or lawfully admitted permanent resident) of the United States and who has been subjected to racial or ethnic prejudice or cultural bias within American society because of his or her identity as members of groups and without regard to his or her individual qualities. The social disadvantage must stem from circumstances beyond the individual’s control.

1) Any Individual who a recipient finds to be a socially and economically disadvantaged individual on a case-by-case basis. An individual must demonstrate that he or she has held himself or herself out, as a member of a designated group if you require it

2) Any individual in the following groups, members of which are rebuttably presumed to be socially and economically disadvantaged:

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1. Black-Americans (including persons having origins in any of the Black racial

groups of Africa); 2. Hispanic-American (including persons of Central or South American, Cuban,

Dominican, Mexican, Puerto Rican, or other Spanish or Portuguese culture or origin, regardless of race);

3. Native-American which includes person who are enrolled members of a

federally or State recognized Indian tribe, Alaska Natives, or Native Hawaiians;

4. Asian-Pacific which includes persons whose origins are from Japan, China,

Taiwan, Korea, Burma (Myanmar), Vietnam, Laos, Cambodia (Kampuchea), Thailand, Malaysia, Indonesia, the Philippines, Brunei, Samoa, Guam, the U.S. Trust Territories of the Pacific Islands (Republic of Palau), Republic of the Northern Marianas Islands, Samoa, Macao, Fiji, Tonga, Kirbati, Tuvalu, Nauru, Federated States of Micronesia, or Hong Kong;

5. Subcontinent Asian American (including persons whose origins are from

Bangladesh, Bhutan, India, the Maldives Islands, Nepal, Pakistan, or Sri Lanka);

6. A Woman; or,

A member of any additional group that is designated as socially and economically disadvantaged by the Small Business Administration at such time as the SBA designation becomes effective.

E. Race-Neutral (Section 26.5)

Measure or program that is used to assist all small businesses. For the purposes of this Program, race-neutral includes ethnic and gender neutrality.

F. Race-Conscious (Section 26.5)

A measure or program that is specifically focused on assisting only DBEs, including women-owned DBEs.

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Attachment D

Website Addresses

California Unified Certification Program http://californiaucp.org/ California Unified Certification Program Directory http://www.dot.ca.gov/hq/bep/doingbizdetail.htm Regulations 49 Code of Federal Regulations Part 26 (49 CFR Part 26) https://www.gpo.gov/fdsys/pkg/CFR-2010-title49-vol1/pdf/CFR-2010-title49-vol1-part26.pdf California Department of Transportation http://www.dot.ca.gov California Department of Transportation DBE Certificaiton http://www.dot.ca.gov/hq/bep/ucp.htm California Department of Transportation, Publications Unit

http://caltrans-opac.ca.gov/publicat.htm Port of Oakland http://www.portofoakland.com

Port of Oakland DBE Program Plan http://www.portofoakland.com/port/social-responsibility/programs/

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Attachment E

Goal Setting – Goal and Methodology Report

PORT OF OAKLAND DISADVANTAGED BUSINESS ENTERPRISE

TRIENNIAL OVERALL GOAL AND METHODOLOGY REPORT FOR FEDERAL FISCAL YEARS 2017-2019

TO THE FEDERAL AVIATION ADMINISTRATION

The Port of Oakland has completed its initial review process for its annual Disadvantaged Business Enterprise (DBE) goals applicable to Federal Fiscal Years (FFY) 2017-2019 contracting opportunities funded in whole or in part by the Federal Aviation Administration (FAA). The Port utilizes the DBE goal-setting methodology in compliance with the U.S. Department of Transportation regulations 49 Part 26, issued February 2, 1999, and effective March 4, 1999 (“DBE Regulations”).

For FFY 2014-2016 DBE participation was 4.80% under the race-neutral goal of 10.28%.

The US DOT regulations allow for a federal aid recipient to calculate DBE goals for a three-year period, effective February 3, 2010, 49 CFR Part 26.45. The Port is submitting this triennial goal and methodology report, and if additional grants are received and secured or if federal funding is reduced during the noted FFYs, the Port may opt to update its goal and methodology report accordingly.

The Regulations require a two-step process for goal setting. This process intends to provide the maximum flexibility for recipients while ensuring that goals are based on availability of ready, willing, and able DBEs in each recipient’s relevant market.

The Port of Oakland’s FFY 2017-2019 FAA funded contracting opportunities in the total amount of dollars are described below, pursuant to U.S. Census Bureau’s North American Industry Classification System (NAICS) codes. The total estimated amount of federal funding for these projects (including projected matching funds of $45,384,969) is $56,315,881.

Table 1: Projected Projects

Project Name Total Project Dollars Federally Funded Portion Runway 12-30 Rehabilitation $53,100,000 $42,793,290 Airport Pavement Management System

$314,000 $253,053

Geometric Study $751,881 $605,941 Wildlife Management Study $150,000 $120,885 Replace North Field Taxiway Signs $2,000,000 $1,611,800 Total $56,315,881 $45,384,969

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GOAL METHODOLOGY Step One: Determining the Base Figure: DBE Availability

To determine the base figure, the Port of Oakland estimated the percentage of projected dollars attributable to each category of work utilizing the North American Industry Classification System (NAICS). The percentage breakdown is outlined in Table 2 below.

In establishing its base figure for the relative availability of ready and willing DBEs, the Port is utilizing a market area of Alameda and Contra Costa counties. The Port has used the following data in establishing the base data:

1. California Unified Certification Program (CUCP) DBE Database 2. 2012 Census Bureau County Business Patterns

The total number of construction firms in the local counties (Alameda and Contra Costa Counties) in the 2012 Census Bureau County Business Patterns for NAICS code 237310 (Highway, Street, and Bridge Construction) is 64. Approximately 13 DBE firms are in the CUCP DBE Database representing 20.31% of the 64 in the counties.

The total number of construction firms in the local counties (Alameda and Contra Costa Counties) in the 2012 Census Bureau County Business Patterns for NAICS 238210 (Electrical Contractors and Other Wiring Installation Contractors) is 503. Approximately 8 DBE firms are in the CUCP DBE Database representing 1.59% of the 503 in the counties.

The total number of construction firms in the local counties (Alameda and Contra Costa Counties) in the 2012 Census Bureau County Business Patterns for NAICS 541370 (Surveying and Mapping (except Geophysical Services) is 32. Approximately 4 DBE firms are in the CUCP DBE Database representing 12.5% of the 32 in the counties.

The total number of construction firms in the local counties (Alameda and Contra Costa Counties) in the 2012 Census Bureau County Business Patterns for NAICS 541330 (Engineering Services) is 768. Approximately 45 DBE firms are in the CUCP DBE Database representing 5.86% of the 768 in the counties.

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Table 2: Percentage of Project Dollars by NAICS code

NAICS Code

Industry Area Dollar Totals by NAICS Codes

Total Project Percentage of Project Dollars

237310 Highway, Street, and Bridge Construction

$25,700,000 $56,315,881 45.64%

238210 Electrical Contractors and Other Wiring Installation Contractors

$15,840,000 $56,315,881 25.75%

541370 Surveying and Mapping (except Geophysical) Services

$900,000 $56,315,881 1.60%

541330 Engineering Services $13,875,881 $56,315,881 24.64%

Table 3: Determining Base Figure

NAICS Code

Industry Area 2012 Census

CUCP Available UCP/Census = Base Figure

Percentage of Project Dollars

Percentage of Goal by Industry Area

237310 Highway, Street, and Bridge Construction

64 13 20.31% 45.64% 9.27%

238210 Electrical Contractors and Other Wiring Installation Contractors

503 6 1.19% 25.75% 0.31%

541370 Surveying and Mapping (except Geophysical) Services

32 4 12.5% 1.60% 0.20%

541330 Engineering Services

768 45 5.86% 24.64% 1.44%

Total 11.22%

Based on the data in Table 3: Determining Base Figure, the Port of Oakland has calculated a weighted DBE availability of 11.22% to establish its base figure applicable to contracting opportunities.

Step Two: Adjusting the Base Figure

Disparity Study

The Port of Oakland has not conducted a recent disparity study.

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Past DBE Attainment

The Port has awarded similar aviation projects over the past three years. The annual DBE attainment is listed in the following chart:

Federal Fiscal Year Total Project Dollars Total DBE Dollars Percentage of DBE Participation

13/14 $23,868,944 $740,782 3.10 14/15 $37,663,604 $3,060,746 8.13 15/16 $14,163,300 $448,325 3.17*

*FFY 15/16 DBE participation is 3.17%; figures received for the first three quarters of FFY 15/16 indicated approximately $56,000 monthly DBE participation.

The average DBE participation on Port projects for related aviation projects is 4.80% ((3.10+8.13+3.17)/3=4.80%). The Port is proposing an adjustment to the base figure by averaging DBE participation over the last three years and the base figure ((11.22% + 4.80%)/2=8.01%). Therefore, the Port is proposing an 8.01% race-neutral aspirational goal for FFY 2017-2019.

PUBLIC PARTICIPATION

The Port of Oakland will publicly notice its goal through advertisement for a 30-day period, allowing for inspection and comment.

UTILIZATION OF RACE-NEUTRAL AND RACE CONSCIOUS METHODS

Consistent with the Port’s policy, as stated in the Program Report, the Port intends to meet DBE participation goals entirely through race-neutral means.

Race-Neutral Methods

The Port will implement a race-neutral program to achieve DBE participation goals. The program consists of:

a) Structuring contracting activities so as to encourage and facilitate the participation of DBEs when practical;

b) Ensuring that competitors for opportunities are informed during pre-solicitation meetings about how the Port’s DBE Program is administered;

c) Assisting in overcoming limitations in bonding and financing through referral to and collaboration with the surety bond and financing programs of various agencies;

d) Providing technical assistance in orienting small businesses to contracting opportunities at the Airport through the Internet and facilitating introductions to

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the Port’s and other US DOT recipients’ contracting activities, through various small business conferences and local chambers and trade association (i.e., Hispanic Chamber, Black Caucus, Black Board of Trade and Commerce, and Asian Business Chamber) sponsored events and conferences, as well as monthly breakfasts and other outreach activities;

e) Providing outreach and communications programs on contract procedures and contract opportunities to ensure the inclusion of DBEs;

f) Ensuring the distribution of the California Unified Certification Program (CUCP) Database to potential contractors by listing the CUCP website location in the Bids, RFPs/RFQs; and,

g) Providing business development assistance through the Port’s Owner Controlled Insurance Program and referrals to the East Bay Small Business Development Center and other assistance agencies.

Race Conscious Methods

The Port will not utilize any race conscious means of participation in achieving its goal.

In order to obtain the maximum amount of participation of DBE firms in contracting opportunities, the Port of Oakland’s DBE Liaison Officer attends, sponsors and coordinates local and regional events for minority, women, small and local businesses. During FFY 2014 – 2016, the Port of Oakland participated in local small business conferences sponsored by the Hispanic Chamber of Commerce, Oakland African American Chamber, the Bay Area Rapid Transit District, City of Oakland and the Port of Oakland. Also, events for minority and women-owned businesses in which the DBE Representative participated included the East Bay Inter-Agency Alliance monthly meetings, the African American Business Summit and the annual Airport Minority Advisory Council.

Lists of DBEs are made available to potential prime contractors on Port of Oakland projects and to Purchasing Department staff for bidding opportunities on the CUCP website. The DBE Liaison Officer is available to answer DBE program questions and review federal aid funded proposals requiring DBE compliance.

LIST OF ATTACHEMENTS

1. NAICS Listing 2. Accomplishment Reports for FFYs 13/14, 14/15 and 15/16 3. CUCP DBEs by NAICS Codes 4. County Census Availability by NAICS codes

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h) Due to volume and size of the documents for items listed above, attachments are not included, and may be obtained for review by contacting Lila Zinn, Contract Compliance Supervisor, at lzinn@portoakland.com or (510) 627-1485.

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Attachment F Demonstration of Good Faith Efforts

DOCUMENT 00435

PORT OF OAKLAND SUBCONTRACTOR LIST FORM Bidder: Bid Date: 1. Submit this Document 00435 with the Bid as provided for in Document 00200, Instructions to Bidders. Include names, license numbers, city locations and type or

portion of work for subcontractors performing in excess of one-half of one percent (.5%) of the total bid value.

Name of Prime and Subcontractor(s) Contractor’s

License Number

City Location of Subcontractor Type or Portion of Work to be Performed

1.

2.

3.

4.

5.

LIST OF SUBCONTRACTORS

Bidder: Bid Date:

Name of Prime and Subcontractor(s) Contractor’s

License Number

City Location of Subcontractor Type or Portion of Work to be Performed

6.

7.

8.

9.

11.

12.

DOCUMENT 00437 PORT OF OAKLAND SUPPLEMENTAL SUBCONTRACTOR LIST FORM

Job Title: Bidder: Bid Date: 1. Submit this Document 00437 as provided for in Document 00200, Instructions to Bidders.

2. Include name, address, type or portion of work and dollar amount of work for subcontractors performing in excess of one-half of one percent (0.5%) of the

total bid value. The names of the subcontractors and their respective portion of work shall be consistent with the names and portion of work previously listed in the Subcontractors List Form, Document 00435 submitted with bid.

Name, Address, and Telephone Number

of Office of Subcontractor

(also list Prime Bidder)

Contractor’s License

Number)

Type or Portion of

Work to be Performed

Dollar Amount of Bid of Each Subcontractor to

Prime Bidder *

Prime Bidder:_______________________________ Address: ___________________________________ City/State/Zip: _______________________________ Phone/Fax #: ________________________________

SUBCONTRACTORS 1. Name:___________________________________ Address: ___________________________________ City/State/Zip: _______________________________ Phone/Fax #: ________________________________

SUPPLEMENTAL LIST OF SUBCONTRACTORS

Name, Address, and Telephone Number

of Office of Subcontractor

Contractor’s License

Number

Type or Portion of

Work to be Performed

Dollar Amount of Bid of Each Subcontractor to

Prime Bidder

2. Name:___________________________________ Address: ___________________________________ City/State/Zip: _______________________________ Phone/Fax #: ________________________________

3. Name:___________________________________ Address: ___________________________________ City/State/Zip: _______________________________ Phone/Fax #: ________________________________

4. Name:___________________________________ Address: ___________________________________ City/State/Zip: _______________________________ Phone/Fax #: ________________________________

5. Name:___________________________________ Address: ___________________________________ City/State/Zip: _______________________________ Phone/Fax #: ________________________________

(Bidder to attach additional sheets if necessary)

ATTACHMENT G

DBE Monitoring and Enforcement Mechanisms

The Port has available several remedies to enforce the DBE requirements contained in its contracts, including, but not limited to, the following:

1. Breach of contract action, pursuant to the terms of the contract; 2. Breach of contract action, pursuant to California Public Contract Code section 4100, et

seq. and California Labor Code section 1720, et seq.

In addition, the Federal government has available several enforcement mechanisms that it may apply to firms participating in the DBE problem, including, but not limited to, the following:

1. Suspension or debarment proceedings pursuant to 49 CFR Part 26 2. Enforcement action pursuant to 49 CFR Part 31 3. Prosecution pursuant to 18 USC 1001.

ATTACHMENT H

DBE Certification Application Form

ATTACHMENT I

Port of Oakland Signatory Agency to the California Unified Certification Program

ATTACHMENT J

Small Business Element

1. Objective/Strategies

The Port has established a Small Business (SB) Element as part of the DBE program. The following strategies may be used (this list is not meant to be conclusive): (1) Establishing a race-neutral small business set-aside for prime contracts under a stated amount (e.g., $1 million). (2) In multi-year design-build contracts or other large contracts (e.g., on-going Runway Safety Area) Port agency oversight on specifying elements of the contract or specifying subcontracts that are of a size that small businesses, including DBEs, can reasonably perform. (3) On prime contracts not having DBE contract goals, requiring the prime contractor to provide subcontracting opportunities of a size that small businesses, including DBEs, can reasonably perform, rather than self-performing all the work involved. (4) Identifying alternative acquisition strategies and structuring procurements to facilitate the ability of consortia or joint ventures consisting of small businesses, including DBEs, to compete for and perform prime contracts. (5) To meet the portion of our overall goal projected to be met through race-neutral measures, ensuring that a reasonable number of prime contracts are of a size that small businesses, including DBEs, can reasonably perform.

2. Definition • DBE firms should be identified in the SB Element of the recipient’s DBE

program as eligible for the program unless there is a DBE micro-Small Business Program element in place.

• Size standard should be consistent with 49 CFR 26.5 and must be no larger than the Small Business Administration’s size standards. DBE firms and small firms eligible for the program should be similarly sized to reduce competitive conflict between DBE and non-DBE firms.

3. Verification

• The Port shall diligently attempt to minimize fraud and abuse in the SB Element of its DBE program by verifying program eligibility of firms.

4. Monitoring/Record Keeping

• Monitoring shall be accomplished using Port quarterly and final report submissions.

• Utilization of the SBEs shall be monitored through the use of the reports. 5. Implementation Timeline

• Implementation of the Port SB Element dates 2012 and is currently in effect. Projects continue to be placed in the SB Element component of the DBE program. Implementation shall remain in effect in compliance with the DBE program requirements.

6. Assurance • The SB Element shall include the following assurances:

1. assurance that the program is authorized under state law; 2. assurance that certified DBEs that meet the size criteria established

under the program are presumptively eligible to participate in the program;

3. assurance that there are no geographic preferences or limitations imposed on any federally assisted procurement included in the program;

4. assurance that there are no limits on the number of contracts awarded to firms participating in the program but that every effort will be made to avoid creating barriers to the use of new, emerging, or untried businesses; and

5. assurance that aggressive steps will be taken to encourage those minority and women owned firms that are eligible for DBE certification to become certified.

6. assurance that the program is open to small businesses regardless of their location (i.e., that there is no local or other geographic preference).