Goal Setting and Methodology Summary

Transcription

1 Goal Setting and Methodology Summary DRAFT DATE: March 30, 2016 Jennifer Reiss Office of Civil Rights U.S. Department of Transportation Federal Transit Administration 230 Peachtree Street, Suite 800 Atlanta, GA Dear Ms. Reiss: Re: FY15-17 DBE Goal and Methodology Following our full review and analysis, the Greater Lynchburg Transit Company (GLTC) has proposed DBE goal of using 2% of DOT funding for fiscal years , as required under 49 CFR, Part 26. GLTC is proposing to achieve its entire goal using race-neutral means. In calculating our proposed goal, GLTC used data from the Virginia DOT Certified DBE Directory ( to determine the number of ready, willing and able DBE s in the area; and the Census Bureau s American Fact Finder database to determine the relative number of ready willing and able businesses in our chosen area to participate on DOT assisted contracts. To date, GLTC has received no comments regarding our proposed goal. In the event that GLTC does receive comments we will review them carefully to determine whether the DBE goal we are proposing for FY should be modified in any way. GLTC in the past and present has had difficulty obtaining any percentage of DBE because of a lack of certified firms in our local (within 50 miles) geographic area. GLTC has expanded the geographic area in which they are working, but are still continuously working hard in an effort to increase DBE firms in the local area as well. GLTC has made the following efforts to encourage local qualified small businesses to complete and return an application: 1. GLTC has placed an advertisement in our local newspaper, Lynchburg News and Advance, as well as on the Newspapers Website Figure 2 is a scan of that newspaper clipping. This paper is the most widely distributed paper and is the most heavily followed by minorities in our region.

2 2. GLTC has placed an advertisement on the bulletin boards throughout our company, on our buses, at our Transfer Station, at our Administration Facility, and in the news section on the company website (Figure 3). 3. GLTC met with Mike Lewis of the Lynchburg Regional Chamber of Commerce on 10/25/15 at the GLTC Annual Meeting. GLTC followed up with Mike Lewis the next day on 10/26/15 and Mr. Lewis suggested a mass mailing to the membership of the Chamber of Commerce to reach businesses in the area. Figure 4 is the letter confirming the mailing and Figure 5 is a copy of the flyer that was mailed. 4. GLTC conversed with Victor McCoy, the area Minority Business Leader, multiple times, and most recently on 2/9/16. Mr. McCoy has stated during our conversations that many of the local minority businesses are not on the Chamber of Commerce s mailing list, as a result GLTC performed additional outreach in the form of postings and flyers. He indicated that none of the businesses he knows of are a DBE, but they are holding a Minority Business Expo on April 22 nd, and that GLTC should consider attending. As a result of this discussion GLTC plans to have a strong presence at the Expo, discussing the DBE program, offering assistance in qualifying, and highlighting the benefits that it can provide businesses. Each year GLTC has participated in this same Expo in an effort to reach minority businesses in our area. GLTC has recently updated all purchasing documents, policies and procedures to properly include DBE participation. The GLTC DBE officer monitors the purchasing agents to ensure that DBE s in the directory are considered when ready, willing and able. GLTC will use the Virginia DOT Certified DBE Directory as its DBE directory. GLTC is confident that the efforts put forth thus far, and the further planned efforts will cause an increase of DBE participation by qualified businesses in the area. GLTC intends to increase the DBE goal in the future based on these efforts. As a part of this goal setting, I have attached any and all additional documents and reflected our methodology. If you have any questions please feel free to contact me at or by at JRayman@GLTConline.com. Thank you for your patience and continued support with our DBE program. John Rayman Assistant General Manager Greater Lynchburg Transit Company

3 This table represents all of the projects for which GLTC has programmed throughout Fiscal Year 2015, 2016, and This data was utilized to establish the total funding percentage and the assigned weight per project. 1) 2) 3) 4) 5) 1) NAICS Code Project Fiscal Year Ongoing Preventative Maintenance Projects to Enhance Life of Motorbuses (Includes Parts and Equipment , Capital to Rebuild Engine, Transmission and Msc. Drivetrain parts , Purchase Non- Revenue Maintenance Support Vehicles (Pickups) (2) , Shop Tools and Equipment (Hydraulic Floorjacks, Vices, Torque Multiplier, Shop Vacuum and Various handheld non-power tools such as wrenches, screwdrivers, sockets) Bus Shelter (New and Replacement) and funding to lay concrete pads (contracted out). Our staff construct the shelters. Fiscal Year Purchase Non- Revenue Operations Support Vehicle (2) Amount of DOT funds on project: % of total DOT funds (weight) $144, % $64, % $75, % $40, % $55, % Total for FY 15 $380, % $64, %

4 2) 3) 4) 5) , Purchase Non- Revenue Maintenance Support Vehicle (Pickup) (1) Replacement Security Cameras in Paratransit Vehicles Replacement Handheld Radios for Supervisors and Replacement On- Board Radio Head Units for Paratransit Vehicles Mobile Computer Tablets $55, % $73, % $25, % $27, % Total for 7.92% FY16 $246,167.00

5 2) 3) Fiscal Year , , , ADP Hardware $336, % (VOIP Phones, Servers, Laptops, Desktops, Printers, Copiers, Wi-Fi equipment ADP Hardware $102, % (Automated Passenger Counters) ADP Software $53, % Fare Collection $1,207, % Equipment Replacement , Automated External $6, % Defibrilators , Security Equipment $7, % (Badge and Control Systems) Purchase Non- $67, % Revenue Operations Support Vehicle Replacements (3) Purchase Non- $45, % Revenue Operations Support Vehicle Expansion (2) Bus Stop Amenities $14, % (Bus Stop Signs and Trash Cans) Bus Stop Amenities $311, % (Digital Bus Stop Signage) Ongoing Preventative $256, % Maintenance Projects to Enhance Life of Motorbuses (Includes Parts and Equipment , Vehicle Overhaul $28, % Single Source Transit Enhancements $20, % (Advertisement Sign Enhancement)

6 Replacement Handheld Radios for Supervisors and Replacement On- Board Head Units for Paratransit and Motorbuses $20, % Total for FY17 $2,477, Total for FY15-17 $3,104, %

7 This Table Represents the Number of DBE s available relative to the total number of firms available to do the work within our study area. Number Number of all of DBEs firms avail. to available perform (incl. Relative this work DBEs) Availability 1) 2) 3) 4) 5) 6) NAICS Code Project , Ongoing Preventative Maintenance Projects to Enhance Life of Motorbuses (Includes motorbus parts and related equipment) , Capital to rebuild Engine, Transmission and Misc Drivetrain parts , Purchasing Non- Revenue Maintenance Support Vehicles (Pickups) , , Shop Tools and Equipment (Hydraulic Floorjacks, Vices, Torque Multiplier, Shop Vacuum and Various handheld non-power tools such as wrenches, screwdrivers, sockets) , Bus Shelter (New and Replacement) and funding to lay concrete pads (contracted out). Our staff construct the shelters Purchase Non- Revenue Operations Support Vehicles % % % % % %

8 441110, Purchase Non- Revenue Maintenance Support % 7) Vehicle (Pickup) (1) , Replacement Security Cameras in % 8) Paratransit Vehicles , Replacement Handheld Radios for Supervisors and Replacement On- Board Radio Head Units for Paratransit % 9) Vehicles , Mobile Computer % 10) Tablets , , , ADP Hardware (VOIP Phones, Servers, Laptops, Desktops, Printers, Copiers, Wi-Fi % 11) equipment ADP Hardware (Automated % 12) Passenger Counters) 13) , ADP Software % Fare Collection ) Equipment Replacement , Automated External % 15) Defibrilators Security Equipment % 16) (Badge and Control Systems) Purchase Non % 17) Revenue Operations Support Vehicle Replacements (3) Purchase Non % 18) Revenue Administrative Support Vehicle for Expansion (2) ) Bus Stop Amenities (Bus Stop Signs and Trash Cans) %

9 Bus Stop Amenities (Digital Bus Stop % 20) Signage) , Ongoing Preventative Maintenance Projects to Enhance Life of Motorbuses (Includes motorbus parts and related % 21) equipment) 22) , Vehicle Overhaul % Single Source Transit ) Enhancements (Single Source Provider, improvement of advertising signage on buses with LED light strips) , ) Replacement Handheld Radios for Supervisors and Replacement On- Board Head Units for Paratransit and Motorbuses % Combined Totals % Overall availability of DBEs

10 This table represents the final weighted base figure considering availability and weight of each project. Weighted NAICS Code Project Weight x Availability Base Figure 1) 2) 3) 4) 5) 6) , Ongoing Preventative Maintenance Projects to Enhance Life of Motorbuses (Includes motorbus parts and related , Capital to rebuild Engine, Transmission and Misc Drivetrain , Purchasing Non- Revenue Maintenance Support Vehicles , , , Bus Shelter (New and Replacement) and funding to lay concrete pads (contracted out). Our staff construct equipment).0467 x.30% parts.0206 x 0.30% (Pickups).0245 x 0.50% Shop Tools and Equipment (Hydraulic Floorjacks, Vices, Torque Multiplier, Shop Vacuum and Various handheld non-power tools such as wrenches, screwdrivers, sockets).0130 x 1.92% the shelters x 57.07% Purchase Non- Revenue Operations Support Vehicles.0207 x 0.30%

11 7) 8) 9) 10) 11) 12) 13) 14) 15) 16) 17) 18) , Purchase Non- Revenue Maintenance Support Vehicle , Replacement Security Cameras in (Pickup) (1).0177 x 0.50% Paratransit Vehicles.0235 x 7.39% , Replacement Handheld Radios for Supervisors and Replacement On- Board Radio Head Units for Paratransit Vehicles.0083 x 6.03% , Mobile Computer , , , ADP Hardware (Automated Passenger Tablets.0090 x 7.22% ADP Hardware (VOIP Phones, Servers, Laptops, Desktops, Printers, Copiers, Wi-Fi equipment.1083 x 7.17% Counters).0329 x 5.86% , ADP Software.0172 x 3.32% Fare Collection Equipment Replacement.3889 x , Automated External Defibrilators.0020 x 8.06% Security Equipment (Badge and Control Systems) % Purchase Non- Revenue Operations Support Vehicle Replacements (3) % Purchase Non- Revenue Administrative Support Vehicle for Expansion (2) %

12 19) Bus Stop Amenities (Bus Stop Signs and Bus Stop Amenities (Digital Bus Stop Trash Cans) % ) Signage) % , Ongoing Preventative Maintenance Projects to Enhance Life of Motorbuses (Includes motorbus parts and related 21) equipment) % ) , Vehicle Overhaul % Single Source 23) 24) Transit Enhancements (Single Source Provider, improvement of advertising signage on buses with LED light strips) , Replacement Handheld Radios for Supervisors and Replacement On- Board Head Units for Paratransit and Motorbuses % Total 100% Total Expressed as a % (*100) 3.54% Rounded, Weighted Base Figure: 3.54%

13 GLTC Goal Setting Methodology The methodology used to establish GLTC Triennial Goal for FFY s FTA Funding is described below. GLTC s overall goal is based on ready, willing and able DBE s relative to all businesses ready, willing and able to participate in DOT-assisted contracts. To determine these goals the following steps were completed: Step 1: We worked to determine the % of funding available for each work item. We identified the funding for each project and developed a weighted percentage based on our total capital funding. Step 2: We determined the relative availability of DBE s for each project/type of work. GLTC first identified what is considered to be the area in which we do Business. In the past GLTC has had difficulty acquiring DBE participation (there are 3 DBE s within 50 miles of Lynchburg), and we have found that most of the DBE s are in the Northern Virginia area (3.5 hours away). So in an attempt to increase its availability to DBEs, we have decided to use the state of Virginia as our market area. While GLTC is not sure (but it will try) that it can always convince DBE s to travel to Lynchburg from all over the state, it does believe that it may be able to procure goods and have them shipped to Lynchburg. Next we identified the project and type of work by NAICS codes using the Census Bureau website: After identifying all of the possible NAICS code classifications for each project, we searched for registered/certified vendors in the Virginia Department of Small Business Database. This helped us to identify the number of ready, willing and able DBE s to do business on the projects we have during this time period. GLTC then used the NAICS Code in conjunction with the American Fact Finder on the Census Bureau Webpage to identify the total number of firms able participate in the FTA funded projects. Step 3: GLTC worked to determine the base figure for the relative availability of DBE s. The base figure was calculated using the following formula: Ready, willing and able DBE s (577) Base Figure = All firms ready, willing and able (6617) The data sources we used to determine the numerators was the Virginia Unified Certification Program List of Certified DBE Vendors. Denominator was sourced from the Census Bureau s American Fact Finder.

14 Step 4: After calculating a base figure of the relative availability of DBE s; we went through the process of weighting the base figure, or multiplying the individual relative availabilities found in step 3, by the weighted percentages in step 1. Step 5: After looking at the information gathered, GLTC took several other factors into consideration. GLTC looked at past participation. In the recent fiscal year FY2014 there was participation (nearly 4%), but the entirety of this goal was accomplished while GLTC was constructing a new Transfer Station. In such a case contractors were willing to travel more distance to participate in this project. Looking further back, we found that GLTC was unable to accomplish any DBE participation during Fiscal Years 2011 and This is again, due to the very limited number of DBE s available in the region. Further, past goal evaluations were examined to determine the median of the federal fiscal year transit goals for the last five years. These goal achievement percentages were determined as follows: FFY 2010: 0% FFY 2011: 0% FFY 2012: 0% FFY 2013: 0% FFY 2014: 4% Median: 0% GLTC did, however, identify a contracting opportunity in the coming cycle that would enable more DBE participation, this is with the construction of a new Operations and Maintenance Facility. This is a major project, much like the construction of the Transfer Station. Unfortunately, as we are the sub-recipient on the grant and will be reporting DBE participation to the State of Virginia the DBE participation on this project will not be counted towards GLTC s projects and goals and therefore is not included in our goal setting. In conclusion: After taking into consideration all of the factors, weighting the projects, DBE availability and considering the past participation and future projects GLTC has adjusted the 3.9% base figure down to 2%. GLTC ensured our methods were sound including looking at Disparity Studies (reviewed Virginia study from 2010 most recent), the Minority Business Enterprises Commission Report (last report 2003), the VA Disparity Study Report (last report 2004) and the VA Strategic Plan from the Department of Small Business and Supplier Diversity. Ultimately, we are looking forward to engaging more DBE s in the future through outreach and efforts to encourage minority and disadvantaged businesses to participate in this important program.

15 On the next several pages the outreach efforts by GLTC and efforts to assist potentially qualified DBE s to become certified are shown. They are as follows: Figure 2: Newspaper Advertisement seeking comment and input on GLTC s DBE Goals. Figure 3: Outreach to local businesses and those in the surrounding areas advertising our ability and willingness to assist in certification. Figure 4: Communications with the Lynchburg Regional Chamber of Commerce to post advertisement of the DBE program, GLTC s goals and GLTC s willingness to assist in becoming certified. Figure 5: The Lynchburg Regional Chamber Advertisement and outreach language. (Also distributed to Minority Business Leaders)

16 Figure 2: Newspaper Advertisement (most widely distributed in the region, there is no specific Minority Newspaper)

17 Figure 3: Advertisement

18 Figure 4: Communications with Lynchburg Chamber

19 Figure 5: Advertisement

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