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HomeMy WebLinkAbout150-01 RESOLUTION• RESOLUTION NO. 150-01 A RESOLUTION TO APPROVE THE DISADVANTAGED BUSINESS ENTERPRISE GOAL UPDATE FOR FISCAL YEAR 2002 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1. That the City Council of the City of Fayetteville, Arkansas hereby approves the Disadvantaged Business Enterprise Goal Update for Fiscal Year 2002. PASSED and APPROVED this the e• day of November, 2001. '.'El ATTEST: Bv: eather Woodruff, City Cl APPROVED: By: • NAME OF FILE - CROSS REFERENCE: Resolution No. 150-01 • • 11/06/01 Resolution No. 150-01 10/21/01 Memo to Mayor Coody & Fay. City Council, from Gary Dumas, Utility Services, thru Staff Review Committee, regarding Disadvantaged Business Enterprise (DBE) Program Goal Update for FY 2002. 10/01/01 09/30/02 Overall Goal and Methodology/Fayetteville Municipal Airport/Drake Field (FYV) FY 2002 Update 10/17/00 Copy of Resolution No. 147-00 and Exhibit "A" which is the Fayetteville Municipal Airport Disadvantaged Business Enterprise Program 02/02/99 Federal Register/49 CFR Parts 23 and 26, Subpart B 11/06/01 Staff Review Form 11/09/01 Memo to Gary Dumas, Utilities Services, from Heather Woodruff, City Clerk 09/11/01 Proofs of Publication NOTES: FAYETTEALLE THE CITY OF FAYETTEVILLE, ARKANSAS DAN COODY, MAYOR AIRPORT MANAGEMENT GARY DUMAS, UTILITIES DIRECTOR / AIPRORT MANAGER INTERIM • 4500 School Ave., Suite F Fayetteville, AR 72701 501.718.7642 TO: Dan Coody, Mayor Fayetteville City Council Members FROM: Gary Dumas, Utility Services Director / Interim Airport Manager THRU: Staff Review Committee DATE: October 21, 2001 SUBJECT: Disadvantaged Business Enterprise (DBE) Program Goal Update for FY 2002. Background: On October 14, 2000, the Fayetteville City Council approved the Fayetteville Municipal Airport's revised Disadvantaged Business Enterprise Program. The Airport's DBE Program is federally mandated under 49 CFR Part 26 for all Department of Transportation (DOT/FAA) grant recipients which anticipate receiving more than $250,000 in federal funds in the fiscal year Drake Field anticipates receiving approximately $2.4 million from the DOT/FAA in FY 2002. The DBE Program assures that Minority & Women -owned businesses, and other economically disadvantaged small businesses have an equal opportunity, or "level playing field," in competing for Airport procurement contracts. 49 CFR Part 26 requires that our DBE Program Goal be updated annually. The Updated Goal describes the overall DBE participation percentage and value of procurement contracts targeted for award to DBE contractors in the fiscal year The regulation provides the methodology to be used to set contract DBE participation goals. Purpose: The purpose of this item is a new resolution amending Fayetteville City Council Resolution No. 147-00. Resolution No. 147-00 approves the Revised Disadvantaged Business Program to be implemented for all DOT/FAA grant assisted contracts entered into by the City of Fayetteville Municipal Airport. The approved program contains the DBE participation goal level in FY 2001. The new resolution will accept and approve the airport's updated DBE participation goal for FY 2002. Budget Considerations: No budget effect. Action Requested: Approval of a resolution which accepts and approves the updated DBE participation Goal for FY 2002. Staff Recommendation: Review & Approval GD/tri attachment: FY 2002 Goal Update & Methodology Resolution 147-00 Approved DBE Program FY2001 Federal Register - 49CFR Part 26, Subpart B - Administrative Requirements Mc C.( Du Airport Sponsor: Name of Preparer: • • Overall Goal and Methodology Fayetteville Municipal Airport / Drake Field (FYV) FY 2002 Update City of Fayetteville James Nicholson, Financial Coordinator Fayetteville Municipal Airport/Drake Field 4500 S School Ave., Suite F Fayetteville, AR 72701 Goal Period: 10-1-2001 Thru: 9-30-2002 Overall DBE Goal: For review .52 % Introduction to 2002 DBE Goal update: The City of Fayetteville / Fayetteville Municipal Airport DBE Goal update for Fiscal Year (FY) 2002 is provided to describe the Airport Projects which are funded in part with Department of Transportation (DOT) / Federal Aviation Administration (FAA) funds, and to determine by the federally prescribed methodology the portion or percentage of those funds targeted for contract award to Disadvantaged Business Enterprises (DBE's) in accordance with Federal Regulations 49 CFR Part 26. The Goal Update is a prerequisite for Airport Improvement Project (AIP) grant funding for airports which anticipate receiving more than $250,000 in federal funding from the FAA. The 2002 DBE Goal Update revises the DBE participation goal in federally funded airport contracts anticipated for the 2002 fiscal year, from that originally described in the airport's previously published DBE Program Plan and successive annual goal updates. The FY 2002 Goal Update is effective October 15`, 2001 through September 30th , 2002. Public Participation and Consultation in the DBE Goal Update process is a requirement under federal regulations. The updated Goal and Methodology is published for 30 days prior to submittal to the FAA for approval. Comments on the Goal Update are accepted for 45 days after the date of public notification of its availability for public review. Copies of this document were mailed to a number of interested private and public entities for review and comment, ( see attachment #1 - list of consulting agencies). Public comments on the updated goal and methodology are incorporated with the submission to the FAA. No public comments on the proposed FY 2002 Goal were received as of October 24, 2001. Comments on the FY 2002 DBE Goal Update may be submitted to the Fayetteville Municipal Airport's DBE Liaison Officer by phone, writing, fax, or e-mail to the following: James Nicholson, DBE Liaison Officer Fayetteville Municipal Airport / Drake Field 4500 South School Ave., Suite F Fayetteville, AR 72701 501-718-7643 501-718-7646 fax inicholsonaci.favetteville ar us n U{ M • • Overall Goal and Methodology Fayetteville Municipal Airport / Drake Field (FYV) FY 2002 Update OVERALL GOALS (§26.45) Amount of Goal Fayetteville Municipal Airport's overall goal for FY 2002 is. 52% Fayetteville Municipal Airport anticipates one AIP (federally funded) project in FY 2002. The estimated project cost is $2.7 million for Taxiway Extension of taxiway "A" including related aircraft ramp extension. Thus, the projected dollar amount of DBE participation in the project is: $ 14,040 Determination of Market Area Step 1 of the methodology for determining DBE percentage goal requires an assessment of the relative availability of DBE's in the local market area. The local market area is the area which provides, or is most likely to provide, the firms considered qualified to perform the needed work. We used the most recent Census data available (1999) for Washington County, Arkansas and the four surrounding Arkansas counties, Benton, Crawford, Franklin, and Madison counties. Effectively all contractors for airport improvement work of the nature described in the first section have historically come from the local area, specifically, Washington or Crawford County. Except that occasionally a contractor performing ancillary tasks may be recruited from a further distance. However, for the sake of including contractors within a reasonable, feasible range, three other counties bordering Washington County are included in this assessment: Benton, Franklin, and Madison counties. A primary condition of asphalt pavement work is the distance from the asphalt material producer's location to the worksite. Asphalt is time limited in its workability before spoilage due to the material's working temperature range. Thus, local producers are most apt to provide material for this project Also, local asphalt contractors performing this type work have long established relationships with the local asphalt producers. Our Washington County, Arkansas location, situated in a central valley of the Boston Mountains, also contributes to the insulated climate for this type of construction work. Accessibility to distant asphalt producers by trans -state highway is limited by mountain terrain and distances of surrounding rural area The available DBE Contractors in Local Market Area are those listed as being certified DBE by the Arkansas State Highway & Transportation Department (AHTD), and listed in AHTD's "Disadvantaged Business Enterprise Directory," published July 13, 2001. • • Overall Goal and Methodology Fayetteville Municipal Airport / Drake Field (FYV) FY 2002 Update Methodology - Step 1 The Fayetteville Municipal Airport / Drake field anticipates awarding one AIP project contract in FY 2002. The project consists of extending Taxiway "A" and associated aircraft apron approximately 3,200 ft. south of Taxiway "D" on the east side and parallel to Runway 16/34, including approximately 800 ft. of taxiway access to the runway. This project is identified in the most recent draft of the airport's Conceptual Land Use Plan. Project No. 1 - Taxiway Extension NAICS Code Work Item DBE's in Local Market Area All Available Firms 23411 Heavy Construction; Hwy, Streets 0 12 32412 Asphalt paving - manufacture 0 2 23531 Electrical Contractors 0 99 23599 Markings (other specialty contractor) 0 35 23593 Excavation contractors 1 55 48411 Trucking, local (dump truck) 1 35 Totals for this Construction Contract 2 238 Calculation of Base Figure The base figure is calculated as: the number of available DBE contractors as a percentage of all available contractors in the Local Market Area Base Figure = DBE contractors / all contractors Base Figure = 2 / 238 = .84% • • Overall Goal and Methodology Fayetteville Municipal Airport / Drake Field (FYY) FY 2002 Update Methodology - Step 2 Step 2 is an adjustment to the base figure percentage from Step 1 so that the updated goal accurately reflects the actual attainable DBE participation in FY 2002 airport contracts. Past years DBE accomplishment results data for similar projects are examined and averaged with the base figure to determine the adjusted percentage goal. Only projects comprising like work are used for comparison. DBE Goal Accomplishments - Historical Information Year Goal % Accomplishment % Project Type 2000 1.74 0 Access Road Construction 2001 .93 .39 Taxiway / Runway Rehabilitation (bid) Average % 1.34 .20 Calculation of adjustment to DBE Base Figure The calculation of the adjusted figure is determined by averaging the base figure and the historical average for like projects. Base Figure + Histoncal Avg. / 2 = Adjusted Figure (.84+.20)/2=.52 • • Overall Goal and Methodology Fayetteville Municipal Airport / Drake Field (FYV) FY 2002 Update Other Factors Research was conducted to determine if any DBE / small business disparity studies for the region were available. None could be located. The latest U.S. Census Data for minority population, not including women, in the five county area indicates an increase from previous US Census 1998 estimates of 6.141% to 9.425 % in 2000. This is indicative of the recent influx of minority emigrants to the area. We anticipate that there will eventually be an increase of DBE's corresponding to the increase of local minority population as the new emigrants settle and become established. No other factors regarding the local DBE environment could be determined to be an influence on the adjusted DBE goal figure. Breakout of Estimated Race -Neutral and Race -Conscious Participation In determining what percentage of the 2002 adjusted goal could be met through race -neutral means, we again reviewed historical DBE accomplishments for Fayetteville / Drake Field. FYV has not met its DBE goal in any year since 1997. Therefore, we estimate that in meeting our overall 2002 adjusted goal of .52%, we will obtain 0% from race -neutral participation and .52% from race -conscious measures (e.g. setting contract goals). • • Overall Goal and Methodology Fayetteville Municipal Airport / Drake Field (FYV) FY 2002 Update Attachment #1 - List of Consulting Agencies Arkansas State Highway & Transportation Department Ms. Dana McClellan PO Box 226 Little Rock, AR 72203-2261 Arkansas SBDC College of Business Administration 100 South Main, Suite 401 Little Rock, AR 72201 Small Business Advancement National Center University of Central Arkansas College of Business Administration UCA Box 5018 201 Donaghey Avenue Conway, AR 72035-0001 Small Business Association (SBA) Arkansas District Office Joseph T. Foglia 2120 Riverfront Drive, Suite 100 Little Rock, AR 72202-1794 Arkansas State Chamber of Commerce 410 S Cross PO Box 3645 Little Rock, AR 72203-3645 Veterans Business Development Office Andy Lamonica Arkansas District Office 2120 River Front Drive, Room 100 Little Rock, AR 72202 Arkansas Department of Economic Development DBE Officer One Capitol Mall Little Rock, AR 72201 Fayetteville Chamber of Commerce PO Box 4216 Fayetteville, AR 72702-4216 COPY, DFCEIVEQ RESOLUTION NO, 147-00 A RESOLUTION APPROVING THE REVISED DISADVANTAGE BUSINESS ENTERPRISE (DBE) PROGRAM TO BE IMPLEMENTED FOR ALL DOT/FAA GRANT ASSISTED CONTRACTS ENTERED INTO BY THE CITY OF FAYETTEVILLE MUNICIPAL AIRPORT AS REQUIRED BY 49 C.F.R. PART 26. MAP 0 H 7001 ►ircrORT BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1. That the City Council hereby approves the revised Disadvantage Business Enterprise (DBE) Program to be implemented for all DOT/FAA grant assisted contracts entered into by the City of Fayetteville Municipal Airport as required by 49 C.F.R. Part 26. A copy of the regulation is attached hereto marked Exhibit "A" and made a part hereof. PASSED AND APPROVED this 17t day of October , 2000. APPROVED: By: ATTEST: By: clip //�/%ie Bather Woodruff, City Ch r . Hanna, Mayor FAYETTEVILLE MUNICIPAL AIRPORT DISADVANTAGED BUSINESS ENTERPRISE PROGRAM Definitions of Terms The terms used in this program have the meanings defined in DOT 49 CFR 26.5. Objectives/Policy Statement (26.1,26.23) EXHIBIT A COPY E. 4 Q_ The City of Fayetteville/Fayetteville Municipal Airport -Drake Field has established a Disadvantaged Business Enterprise (DBE) program in accordance with regulations of the U.S. Department of Transportation (DOT), 49 CFR Part 26. The City of Fayetteville has received Federal financial assistance from the Department of Transportation. and as a condition of receiving this assistance, the City of Fayetteville has signed an assurance that it will comply with 49 CFR Part 26. It is the policy of the City of Fayetteville to ensure that DBEs, as defined in Part 26, have equal opportunities to receive and participate in DOT -assisted contracts. It is also our policy - 1. To ensure nondiscrimination in the award and administration of DOT -assisted contracts; 2. To create a level playing field on which DBEs can compete fairly for DOT -assisted contracts; 3. To ensure that the DBE program is narrowly tailored in accordance with applicable law; 4. To ensure that only firms that fully meet 49 CFR Part 26 eligibility standards are permitted to participate as DBEs 5. To help remove barriers to the participation of DBEs in DOT -assisted contracts; and 6. To assist the development of firms that can compete successfully in the marketplace outside the DBE Program. The Airport's Financial Coordinator has been delegated as the DBE Liaison Officer. In that capacity, the Financial Coordinator is responsible for implementing all aspects of the DBE program. Implementation of the DBE program is accorded the same priority as compliance with all other legal obligations incurred by the City of Fayetteville in its financial assistance agreements with the Department of Transportation. The City of Fayetteville has disseminated this policy statement to the Fayetteville City Council and all the departments of our organization. We have distributed this statement to DBE and non -DBE business communities that perform work for us on DOT -assisted contracts by running an advertisement in a statewide newspaper. Attest: aidity ,City C CITY OF F By: Fre Hanna, Mayor Date //J�/jji 1 LE ate /jy/U • • APPROVED AS TO SUBSTANCE: P.e -t.26 Date 8 Alen Little, Economic Development Director Nondiscrimination. (26.7) The City of Fayetteville will not 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. • In administering the DBE Program, the City of Fayetteville will 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. DBE Program Updates. (26.21) We will continue to carry out this program until all funds from DOT financial assistance have been expended. We will provide DOT updates representing significant changes in the program Quotas. (26.43) We do not use quotas in any way in the administration of this DBE program DBE Liaison Officer (DBELO) (26.25) The following individual has been designated as the DBE Liaison Officer: Brenda Moss, Financial Coordinator, Fayetteville Municipal Airport -Drake Field, 4500 S. School Avenue, Suite F, Fayetteville, AR 72701, phone# 501- 718-7640 Ext. 5. In that capacity, Ms. Moss is responsible for implementing all aspects of the DBE program and ensuring that the Fayetteville Municipal Airport -Drake Field complies with all provisions of 49 CFR Pari 26. The DBE liaison officer has direct. independent access to the City of Fayetteville's Economic Development Director concerning DBE program matters. The City of Fayetteville is the sponsor for the Fayetteville Municipal Airport - Drake Field. All departments are available to assist or advise the DBE Liaison Officer as needed. The Airport recruits engineers for each ofour AIP projects who work and assist in the compliance of the Airport's DBE program. The DBELO is responsible for developing, implementing, and monitoring the DBE program, in coordination with other appropriate officials. Duties and responsibilities include the following: I. Gathers and reports statistical data and other information as required by DOT. 2. Sets overall annual goals. 3. Ensures that bid notices and request for proposals are available to DBEs in a timely manner. 4. Identifies contracts and procurement so that DBE goals are included in solicitations (both race -neutral methods and contract specific goals) and monitors results. 5. Participates in pre-bid meetings. 6. Advises the Economic Development Director on DBE matters and achievements. 7. Participates with the project engineer to determine contractor compliance with good faith efforts. 8. Maintains the airport's updated directory on certified DBEs. 2 • • Federal Financial Assistance Agreement Assurance. (26.13) The City of Fayetteville has signed the following assurance, applicable to all DOT -assisted contracts and their administration: The City of Fayetteville shall not discriminate on the basis of race, color, national origin, or sex in the award and performance of any DOT -assisted contract or in the administration of its DBE Program or the requirements of 49 CFR Part 26. The recipient shall take all necessary and reasonable steps under 49 CFR Part 26 to ensure nondiscrimination in the award and administration of DOT -assisted contracts. The recipient's DBE Program, as required by 49 CFR Part 26 and as approved by 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 City of Fayetteville of its failure to carry out its approved program, the Department may impose sanctions as provided for under 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 ) DBE Financial Institutions. (26.27) The City of Fayetteville utilizes the publication, "Report of the Bank Commissioners of Arkansas," as a source of financial institutions. This register is published yearly by the Office of State Bank Department. The DBE Liaison Officer will investigate the availability of any DBE Financial Institutions listed in this register and recruit other interested DBE financial institutions by running advertisements at least once a year in a statewide newspaper. The Fayetteville Municipal Airport will use these mediums to initiate the investigation to the full extent of services offered by financial institutions owned and controlled by socially and economically disadvantaged individuals in our community and make reasonable efforts to use these institutions. We will also encourage prime contractors to use such institutions which we have identified. To date we have identified no such institutions in our area, but will continue to search. Directory. (26.25) The Fayetteville Municipal Airport -Drake Field will maintain and make available to interested persons a directory identifying firms eligible to participate as DBEs in our program. The directory lists the firm's name, address, phone number, and the types of work the firm has been certified to perform as a DBE. The directory will be revised at least annually. The airport uses the Arkansas Highway Department's directory of certified DBEs as the airport's DBE directory. The directory will be available to contractors and the public on request and will be maintained at the Fayetteville Municipal Airport -Drake Field located at 4500 S. School Ave., Suite F, Fayetteville, AR 72701 or by calling 501-718-7640 ext. 5. Copies may also be obtained by calling the Arkansas State Highway and Transportation Department at 501-569-2259. Required Contract Clauses. (26.13, 26.29) Contract Assurance. (26.13) The Fayetteville Municipal Airport -Drake Field will ensure that the following clause is placed in every DOT - assisted contract and subcontract: The contractor 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 3 • • 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. Prompt Payment. (26.29) The Fayetteville Municipal Airport -Drake Fled will include the following clause in each DOT -assisted prime contract: The prime contractor agrees to pay each subcontractor under this prime contract for satisfactory performance of its contract no later than 30 days from the receipt of each payment the prime contractor receives from the City of Fayetteville. The prime contractor agrees further to return retainage payment to each subcontractor within 30 days after the subcontractor's work is satisfactorily completed. Any delay or postponement of payment front the above referenced time frame may occur only for good cause following written approval of the City of Fayetteville. This clause applies to both DBE and non -DBE subcontractors. Before any written approval for delay or postponement for payment is issued, both the prime contractor and the subcontractor will be invited to discuss the disputed issues. The Airport will fully investigate our options with the City of Fayetteville's Legal Department and the Federal Aviation Administration in the most expeditious time possible before written approval for delay or postponement of payment is given. Sanctions for Noncompliance: In the event of the contractor's noncompliance with any terms of a DOT -assisted prime contract. the City of Fayetteville shall impose such Contract sanctions as it or the Federal Aviation Administration may determine to be appropriate, including, but not limited to: (A.) Withholding of payments to the Contractor under the Contract until the Contractor complies, and/or (B.) Cancellation, termination, or suspension of the Contract in whole or in part. Monitoring and Enforcement Mechanisms. (26.37) The Disadvantaged Business Enterprise (DBE) program for the Fayetteville Municipal Airport -Drake Field will be incorporated as part of the Specifications and Contract Documents on all DOT -assisted contracts. The inclusion of this program in the Specifications and Contract Documents provides the same sanctions for noncompliance to the DBE program as any other term of any DOT -assisted contract. Submission of a bid on any federally assisted work advertised by the airport will obligate the Contractor who submitted the bid to use good faith efforts to meet the DBE goal published in the bid document. The Contractor will be required to submit the names, addresses, telephone numbers, EINs (Employer Identification Number), DBE Certification Numbers, the kind of work performed, and the amounts to be paid to all subcontractors participating as DBEs in the project at the time of contract execution. If no DBE participation is expected in the contract, the Contractor must submit proof at the time of contract execution of good faith efforts to obtain DBE participation. The Fayetteville Municipal Airport -Drake Field will bring to the attention of the Department of Transportation any false, fraudulent, or dishonest conduct in connection with the program which is evident to airport staff. DOT can at their discretion take steps (e.g., referral to the Department of Justice for criminal prosecution, referral to the DOT • • • Inspector General, action under suspension and debarment or Program Fraud and Civil Penalties rules) provided in 26.109. We also will consider similar action under our own legal authorities, including responsibility determinations in future contracts. Overall Goals. (26.45) Amount of goal. The City of Fayetteville's overall goal for FY2000 is the following: 5% of the Federal financial assistance we will expend in DOT -assisted contracts. Method The Fayetteville Municipal Airport -Drake Field used a weighted average method (Attachment #5 Example 2) to calculate our base figure for our DBE goal. Base Percentage: 1. The weighted factor was derived by calculating the percentage of the cost expected to be expended in each SIC code for the estimated project costs for the year. 2. The second factor used in the formula for calculating our base figure was derived as follows: the numerator is the number of DBEs located in our four county area (Benton, Crawford, Madison, and Washington Counties) that can perform the kinds of work needed which were identified from the Arkansas State Highway and Transportation Department's directory for DBE. The denominator was derived using the number of individuals listed by the Census Bureau's County Business Pattern database on the Internet. This calculation produced the relative -weighted availability of DBE participation of .50 percent. Adjusted Base Goal: The airport staff made inquires at the Chamber of Commerce and the Small Business Administration as to studies or records maintained on DBEs. No records are assembled to represent this group as a minority. A data search of the Census Bureau on the Internet revealed a minority population not including women in our four county arca of approximately 3.07 percent in 1990. A review of our recent let contracts for 1997 through 1999 indicate that with advertising outside of our immediate area, the airport can expect a participation of DBE activities as subcontractors at a rate of at least 1.74 percent (1997 accomplishment = 3.16%, 1998 accomplishment= 0, 1999 accomplishment 2.06 % equals a 1.74% yearly average)(Attachment #5). The average percentage of our base goal and the average of our last three years accomplishments would indicate an achievable overall goal of 1.12% ((.005 + .0174)/2=1.12). After evaluating the above information, the City of Fayetteville/Fayetteville Municipal Airport's initial base rate goal has been adjusted to 1.12% to reflect as accurately as possible the DBE participation the airport staff considers obtainable. 5 • • Process The Fayetteville Municipal Airport/Drake Field will submit its overall goal to DOT on August I of each year. Before establishing the overall goal each year. the airport staff will review the Disadvantage Business Enterprise Directory for changes in the nuinber of available DBEs in our area. Staff will also review the contracts let for the previous year, contact other airports in our vicinity, and any other persons or groups who might have knowledge concerning the availability of disadvantage and non -disadvantaged businesses, the effects of discrimination on opportunities for DBEs, and the airports efforts to establish a level playing field for the participation of DBEs. Following this process of determining our new goal, the airport staff will publish a notice of the proposed overall goal in a statewide newspaper, informing the public that the proposed goal and its rationale are available for inspection during normal business hours at the airport office for 30 days following the date of the notice, and informing the public that the airport and DOT will accept comments on the goals for 45 days from the date of the notice. The notice will include addresses to which comments may be sent and addresses where the proposal may Se reviewed. All comments will be reviewed by the airport staff, and if comments warrant, changes will be made to the proposed goals. The overall goal submission to DOT will include a summary of information and comments received during this public participation process and the airport's responses. The airport will begin using the overall goal on October 1 of each year, unless other instructions have been received from DOT. Breakout of Estimated Race-Neurral and Race -Conscious Participation We estimate that, in meeting an overall goal of 1.12%, we will obtain 0% from race -neutral participation and 112% through race -conscious measures. Since the Fayetteville Municipal Airport has not been able to reach our overall goals with race -neutral measures, we will continue to use contract goals in meeting our overall DBE goals. All of our DOT -assisted contracts for the Airport include the requirement of good faith efforts to meet our goal for DBE participation. Because of the few DBEs in the area, we receive very little response to the bids advertised and let. We do require the engineers to include DBE language in both specifications and advertisements that they initiate. We also place ads in newspapers encouraging DBE participation in our projects. I believe that the DBE participation that we do receive usually is a result of our efforts, the engineers, and the contractors in recruiting DBEs. Contract Goals The Fayetteville Municipal Airport -Drake Field will use contract goals to meet any portion of the overall goal the airport does not project being able to meet using race -neutral means. Contract goals are established so that, over the period to which the overall goal applies, they will cumulatively result in meeting any portion of our overall goal that is not projected to be met though the use of race -neutral means. The airport will establish contract goals only on those DOT -assisted contracts that have subcontracting possibilities. We need not establish a contract goal on every such contract, and the size of contract goals will be adapted to the circumstances of each such contract (e.g., type and location of work, availability of DBE's to perform the particular type of work). We will express our contract goals as a percentage of the Federal share of a DOT -assisted contract. 6 ! • Good Faith Efforts; (26.53) Information to be submitted: The City of Fayetteville treats bidder/offerors compliance with good faith efforts requirements as a matter of responsibility. Each solicitation for which a contract goal has been established will require the bidders/offerors to submit the following information at the time of contract execution: I. The names and addresses of DBE firms that will participate in the contract; 2. A description of the work that each DBE will perform; 3. The dollar amount of the participation of each DBE firm's participation; 4. Written and signed documentation of commitment to use a DBE subcontractor whose participation it submits to meet a contract goal; 5. Written and signed confirmation from the DBE that it is participating in the contract as provided in the prime contractor's commitment; and 6. If the contract goal is not met, evidence of good faith efforts. of good faith Demonstration efforts The obligation of the bidder/offeror is to make good faith efforts. The bidder/offeror can demonstrate that it has done so either by meeting the contract goal or documenting good faith efforts. The Airport's Financial Coordinator will be responsible for determining whether a bidder/offeror who has not met the contract goal has documented sufficient good faith efforts to be regarded as responsible. The DEB Liaison Officer will ensure that all information is complete and accurate and adequately documents the bidder/offeror's good faith efforts before the City of Fayetteville/Fayetteville Municipal Airport -Drake Field commits to the performance of the contract by the bidder/offeror. Administrative reconsideration Within 5 days of being informed by The City of Fayetteville that it is not responsible because it has not documented sufficient good faith efforts, a bidder/offeror may request administrative reconsideration. Bidder/offerors must make this request in writing to the following reconsideration officials: The Airport Board, 113 W. Mountain, Fayetteville AR 72701, phone number 501- 718-7640 Ext 5. The reconsideration officials will not have played any role in the original determination that the bidder/offeror did not document sufficient good faith efforts. As part of this reconsideration, the bidder/offeror will have the opportunity to provide written documentation or argument concerning the issue of whether it met the goal or made adequate good faith efforts to do so. The bidder/offeror will have the opportunity to meet in person with our reconsideration officials to discuss the issue of whether it met the goal or made adequate good faith efforts to do so. We will send the bidder/offeror a written decision on reconsideration, explaining the basis for fording that the bidder did or did not meet the goal or make adequate good faith efforts to do so The result of the reconsideration process is not administratively appealable to the Department of Transportation. 7 • • Good Faith Efforts when a DBE is replaced on a contract. We will require a contractor to make good faith efforts to replace a DBE that is terminated or has otherwise failed to complete its work on a contract with another certified DBE, to the extent needed to meet the contract goal. We will require the prime contractor to notify the DBE Liaison Officer immediately of the DBE's inability or unwillingness to perform and provide reasonable documentation. In this situation, we will require the prince contractor to obtain our prior approval of the substitute DBE and to provide copies of new or amended subcontracts, or documentation of good faith efforts. If the contractor fails or refuses to comply in the time specified, our contracting office will issue an order stopping all or part of paym_n: until satisfactory action has been taken. Counting DBE Participation. (26.55) We will count DBE participation toward overall and contract goals as provided in 49 CFR 26.55. Certification. (26.61 - 26.91) The Fayetteville Municipal Airport will use the certification standards of Subpart D of part 26 and the certification procedures of Subpart E of part 26 to determine the eligibility of firms to participate as DBEs in DOT -assisted contracts. To be certified as a DBE a firm must meet all certification eligibility standards. We will make our certification decisions based on the facts as a whole. Process Our certification application form and documentation requirements are found in Attachment _ To this program. For information about the certification process or to apply for certification, firms should contact: Brenda Moss 4500 S. School Avenue, Suite F Fayetteville AR 72701 Phone 501-718-7646 Or Arkansas State Highway And Transportation Department P.O. Box 2261 Little Rock AR 72203-2261 Phone 501-569-2259 The Arkansas Highway Department has certified all interested individuals who have inquired at the airport about DBE certification (see attached agreement with the State attachment #4). The airport will use the Arkansas Highway and Transportation Department's DBE directory to determine the eligibility of firms to participate as DBEs in DOT -assisted projects, and the Fayetteville Municipal Airport -Drake Field will continue to honor the certification completed by other entities as long as documentation can be provided. . In the event we propose to remove a DBE's certification, we will follow procedures consistent with 26.87. 8 • • Attachment #2 to this program sets forth these procedures in detail. Unified Certification Program The Fayetteville Municipal Airport -Drake Field will participate in a Unified Certification Program as one becomes available for the State of Arkansas. The Fayetteville Municipal Airport -Drake Field will utilize the Arkansas State Highway and Transportation Department in certifying individuals which we have recruited as candidates as DBEs. Certification Appeals Any firm or complainant about a certification matter should be sent to: Department of Transportation Office of Civil Rights Certification Appeals Branch 400"I St., SW, Room 2104 Washington, DC 20590 The airport will promptly implement any DOT certification appeal decisions affecting the eligibility of DBEs for DOT -assisted contracting (e g certify a firm if DOT has determined that our denial of its application was erroneous). "Recertification" The Arkansas Highway and Transportation Department will handle recertification of DBEs for the airport. The Arkansas Highway and Transportation Department's policy is to fully recertify DBEs every three years. "No Change" Affidavits and Notice of Change The Arkansas Highway and Transportation Department will handle "No Change" affidavits and Notice of Change for the Fayetteville Municipal Airport -Drake Field. They require an acknowledgment (a signed form that the DBE's status has not changed) annually. Personal Net Worth The Arkansas Highway and Transportation Department will handle personal net worth statements. Their statement is compatible with the U.S. Small Business Administration (SBA) form 413 (2-94). A copy of form 413 (2-94) is used as an attachment #3 to this document. Bidders List The Fayetteville Municipal Airport -Drake Field will create a bidders' list, consisting of information about all DBE and non -DBE firms that bid or quote on DOT -assisted contracts. The purpose of this requirement is to allow use of the bidders' list approach to calculating overall goals. The bidders' list will include the name, address, and DBE/non-DBE status, and age of the firm and the annual gross receipts. The bid packet will include a form for the necessary information required on all bidders, and the bidders will be required to return the form at the time of bid opening. 9 • • • Monitoring Payments to DBEs We will require prime contractors to maintai;: 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 City of Fayetteville or Department of Transportation. This reporting requiremen: also extends to any certified DBE subcontrac:or. We will keep a cumulative total of actual payments to DBE funis for work committed to them at the time of contract award. The contractor will be responsible for submitting a record of any payments made to DBEs when they submit payment requests from the recipient. We 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. Reporting to DOT We will report DBE participation to DOT by submitting annually DOT From 4630, as modified for by FAA recipients Confidentiality 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. The Arkansas State Freedom of Information .A:t A.C.A. Title 25-19-105 states that examination and copying of public records or files which, if disclosed, would give advantage to competitors and bidders shall not be deemed to be made open to the public under the provisions of the State FOIA law. However, the company must request this protection in writing with proof that such information would put them at a disadvantage. Notwithstanding any contrary provision of state or local law, we will not release personal financial information submitted in response to the personal net worth requirements to a third party (other than DOT) without the written consent of the submitter. All local laws are superseded by state and federal laws. Attachments 1. Attachment #2. 2. Attachment #3 3. Attachment #4 4 Attachment #5 APPROVED: U.S. DEPARTMENT OF TRANSPORTATION Federal Aviation Administration By: Department of Transportation 49 CFR Parts 23 and 26 rule #26.87. U.S. Small Business Administrations (SBA) form 413 (2-94). AHTD Agreement Sample Calculation for DBE base. 10 Date