PROPOSED FTA DBE GOALS FY NEW JERSEY TRANSIT CORPORATION JUNE 9, 2016*

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PROPOSED FTA DBE GOALS FY 2017-2019 NEW JERSEY TRANSIT CORPORATION JUNE 9, 2016* Presented by:

1 PROPOSED FTA DBE GOALS FY NEW JERSEY TRANSIT CORPORATION JUNE 9, 2016* Presented by: Samuel L. Myers, Jr. University of Minnesota * Revised and updated. Original presentation: May 25, 2016

2 Background Agenda Summary of Methodology for Computing Proposed DBE Goals Review of Intermediate Steps Required for Establishing Proposed DBE Goals RESULTS: Proposed DBE Goals for Questions and Answers about Methodology and Results

3 Background New Jersey Transit (NJT) required by federal regulations to establish a DBE goal every three years [49 C.F.R. 26.3]. Requirement for public input regarding the proposed goals Requirement for specific steps in computing the proposed goals

4 Objectives of the DBE Goal Setting Process Ensure non-discrimination in the award and administration of USDOT assisted contracts in the Department s highway, transit, and airport financial assistance programs. Create a level playing field on which DBEs can compete fairly for USDOT assisted contracts. Ensure that the Department s DBE program is narrowly-tailored in accordance with applicable law.

5 Objectives of the DBE Goal Setting Process, cont. Ensure that only firms fully meeting eligibility standards permitted to participate as DBEs. Help remove barriers to the participation of DBEs in USDOT-assisted contracts. Assist the development of firms that can compete successfully in the marketplace outside the DBE program. Provide appropriate flexibility to recipients of federal financial assistance in establishing and providing opportunities for DBEs.

6 The Conceptual Map of Goal-Setting Process Geographic Market Areas Availability Analysis Base Goal Discrimination Analysis Adjusted Goal Race Neutral Analysis

Summary of Methdology Two-step process to establish the DBE goal [49 C.F.R. 26.

7 Summary of Methdology Two-step process to establish the DBE goal [49 C.F.R ]: Step 1: Determine base figure for relative availability of DBEs in specific industries and relevant geographical market area Step 2: Adjust base figure in light of other evidence regarding the market area.

8 Methodology, cont. Adjustments to the base goal Evidence of market impediments to bidding on prime contracts, competing for subcontracts, or securing credit Information on experiences with rules, regulations, processes, procedures and implementation of stimulus funding activities Direct evidence of discrimination Disparity Studies Analysis of contracts and subcontracts awarded

9 Methodology, cont. Maximize the Race Neutral Portion of the Goal Determine the percentage of DBE contract and subcontract dollars would be awarded in the absence of a goal Compute the largest possible race-neutral share of the goal, consistent with ability of DBEs to compete in the marketplace

10 Geographic Market Areas PJM-1 Definition Counties in NJ, NY and PA that account for 75% of total contract dollars Share of Contract Amount 75.03% PJM-2 Counties in NJ, NY and PA where contracts were awarded 75.81% VM-1 All zip codes that account for prime contracts worth $100,000 and more or for sub contracts worth $25,000 and more % VM-2 All zip codes of NJ, NY and PA firms on the NJT Vendor List % VM-3 VM-4 A combination of the NJT contract database zip codes in NJ, NY and PA, and all zip codes in the NJ, NY and PA Unified Certification Process DBE lists. All zip codes where contracts were awarded in NJ, NY and PA 75.81% 75.81%

11 DBE List Method Computing Base Goal NJT UCP DBE List, NY UCP DBE List, PA UCP DBE List Survey Business Owners Method SBO 2012 Census Bureau Vendors List Method Office of Procurement Prequalification Method Office of Procurement Dun & Bradstreet Method Hoovers database Bidders List Method Office of Procurement

12 Results: Base Goal 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 4.23% Weighted Availability Rates 25.93% 19.23% 12.07% 3.17% 11.16% 15.70% 0.00%

13 Discrimination Analysis The adjustment factor is found by computing the portion of observed disparities not explained by differences in size, tenure, credit risk, location and industry.

14 Analysis to Adjust Base Goal Dependent Variable Percentage Difference Log Contract Awarded Amount (Prime) 52.6% Probability Pre-qualified bidding amount is over $4million 6.4% Average 29.53%

15 Results: Race Neutral Percent Race Neutral Analysis 40.2 Race Neutral Percent 59.8 Race Conscious Percent

16 Results: Proposed DBE Goals for

17 Base Goal from Availability 15.7% Discrimination Gap 29.5% Adjusted DBE Goal 20.3% Race Neutral Percent 59.8% Race Neutral Goal 12.1% Race Conscious Percent 40.2% Race Conscious Goal 8.2%

18 Questions and Answers Regarding the FY DBE Agency Goals

19 Feedback from Stakeholders

20 Feedback from Stakeholders Please speak for the record State your name, your establishment s name, your establishment s location (with zip code) and its primary business activity (NAICs code) Indicate what certifications your firm may have and with what jurisdiction (e.g. DBE, SBE, MBE, WBE, ESBE)

21 Feedback from Stakeholders Your Name & Title Your Firm Name Your Firm s Location and Zip Code Your Firm s Primary Business Activity (NAICS Code) Are you Certified as a DBE with which agency? SBE with which agency? WBE with which agency? MBE with which agency? Please speak loudly and slowly into microphone

22 PUBLIC COMMENT SESSION Business owners who have contracted, subcontracted or sought contracts with NJ TRANSIT. Face difficulties or barriers when bidding as prime contractors/consultants, sub-contractors/subconsultants, or vendors. Believe you are treated fairly or unfairly based on your race, ethnicity, or gender. Do prime contractors solicit, or fail to solicit, bids or price quotes from DBEs on non-goal projects. Do you feel there is a level playing field for firms accessing capital, bonding and insurance.

23 Thank you!

24 Contact Information Samuel L. Myers, Jr.

NEW JERSEY DEPARTMENT OF TRANSPORTATION DISADVANTAGED BUSINESS ENTERPRISE GOAL SUBMISSION FEDERAL FISCAL YEARS 2017 THROUGH 2019

NEW JERSEY DEPARTMENT OF TRANSPORTATION DISADVANTAGED BUSINESS ENTERPRISE GOAL SUBMISSION FEDERAL FISCAL YEARS 2017 THROUGH 2019 The New Jersey Department of Transportation (NJDOT) has established a Disadvantaged