DBE/EDGE Contract Development Goal Update Lyle Flower, Administrator Office of Consultant Services Deborah Green, Administrator Office of Small & Disadvantaged Business Enterprise John R. Kasich, Ohio Governor Jerry Wray, ODOT Director
AGENDA o DBE Program Measures o Contract Development Goal Overview o Consultant Selection Process o Consultant Survey Responses 2
DBE PROGRAM MEASURES DEVELOPMENT GOALS o Change contract goal objectives from participation (dollars paid) to development o Improve long-term development o Increase opportunities to participate in a variety of kinds of work o Handle increasingly significant projects o Achieve eventual self-sufficiency 3
DBE PROGRAM DEVELOPMENT GOALS o June 2015 23 CFR 172 (Consultant Rules) Revised o 23 CFR 172.7 - The participation of qualified and certified Disadvantaged Business Enterprise (DBE) subconsultants may be used as a nominal evaluation criterion where appropriate in accordance with 49 CFR part 26 and a contracting agency's FHWA-approved DBE program. 4
CONTRACT DEVELOPMENT GOALS o QBS selection based on development objectives o Contract includes contractual plan for meeting objectives o Additional fee for development and mentoring o Performance rating for meeting development plan 5
CONSULTANT SELECTION PROCESS o RFP requires a one page description of the efforts of the prime consultant and subconsultant to assist the DBE/EDGE firm in: o Improving their long-term development; o Increasing their abilities to participate in a variety of kinds of work, including prequalification in new categories, and handle increasingly significant projects; o Developing their capability to utilize emerging technology and conduct business through electronic media; o Achieving eventual self-sufficiency. 6
CONSULTANT SELECTION RATING Category Total Value Scoring Criteria Score Management & Team Project Manager 10 See Note 1, Exhibit 4 Strength/Experience of Assigned Staff including Subconsultants Firm's Current Workload/ Availability of Personnel 25 See Note 2, Exhibit 4 10 See Note 4, Exhibit 4 Consultant's Past Performance 30 See Note 3, Exhibit 4 Project Approach 25 DBE/EDGE Contract Development Goal Outcomes and Plan (If applicable See Note below) Total 105 5 See Note 5, Exhibit 4 7
FEE FOR DEVELOPMENT AND MENTORING Total Estimated Fee for Contractual Fee for Training and Agreement Assistance Less than $150,000 $7,500 $150,000 - $300,000 5% of Total Estimated Fee Greater than $300,000 $15,000 8
PROJECT SELECTION FOR DEVELOPMENT GOALS o Median Difficulty o Range of work types o Avoid small projects o Multiple possibilities within work types provide opportunity for training (10 bridges) 9
OVERALL GOAL SUMMARY 1/1/2016 THRU SEPTEMBER 2017 Work Type Summary Goal Type Number Est Total Fee Acquisition CI/CM PDP IDIQ Other Participation 76 $116,397,638 1 28 30 14 3 Development 36 $37,683,177 1 5 17 13 0 10
SURVEY RESULTS - NUMBER OF RESPONDENTS Number of Respondents All Consultants 33 Non DBE/EDGE Consultants 23 DBE/EDGE Consultants 10 ODOT Staff 14 11
SURVEY Question: Has your firm participated as either a prime consultant or subconsultant on a contract that included a Contract Development Goal? Respondents Yes No All Consultants 21 12 12
SURVEY Question 1: Is the Development Goal program effective in meeting the overall DBE/Edge program objectives of assisting DBE/EDGE firms in the following areas: Improving long-term development; Increasing opportunities to participate in a variety of kinds of work; Handle increasingly significant projects; Achieve eventual self-sufficiency. Respondents Yes No All Consultants 70% 30% Non DBE/EDGE Consultants 71% 29% DBE/EDGE Consultants 67% 33% ODOT Staff 93% 7% 13
SURVEY Question 2: Are projects selected by the Department the most suitable for Development Goals? Respondents Yes No All Consultants 73% 27% Non DBE/EDGE Consultants 72% 28% DBE/EDGE Consultants 75% 25% ODOT Staff 92% 8% 14
SURVEY Question 3: Is the selection process for agreements that include Development Goals clear, clearly stated, and fair? Respondents Yes No All Consultants 69% 31% Non DBE/EDGE Consultants 76% 24% DBE/EDGE Consultants 50% 50% ODOT Staff 75% 25% 15
SURVEY Question 4: Is the standard compensation for contracts with Development Goals adequate? Respondents Yes No All Consultants 43% 57% Non DBE/EDGE Consultants 33% 67% DBE/EDGE Consultants 71% 29% ODOT Staff 80% 20% 16
SURVEY Question 5: Which type of Goal (Development or Participation) do you believe is more effective in meeting the DBE/EDGE program objectives? Respondents Participation Development All Consultants 69% 31% Non DBE/EDGE Consultants 61% 39% DBE/EDGE Consultants 88% 12% ODOT Staff 57% 43% 17
CONSULTANT COMMENTS I have tried to help out the DBE/EDGE firms that I have typically used for ODOT work, but many of them already have most of the prequals, so this is forcing me to go to firms that I am not familiar with. In the meantime I am trying to increase my CES scores - its risky. As stated above, I would rather find a firm that meets the team's needs and let them fill that role, rather than find a firm who has little or no experience and try to help them achieve the goals. 18
CONSULTANT COMMENTS It is a challenge to get the contract administrators to understand how much it costs to train a DBE under the development goal program. It is not just more billable hours, it is mentorship which requires senior staff oversight. It is including them in meetings that adds time and cost. Please allow more compensation!! Most of the projects being released for consultants are too small and lack the variety and volume of tasks needed to properly serve the development of firms. 19
CONSULTANT COMMENTS Great program. Well executed by ODOT! 20
TAKEAWAYS o ODOT will evaluate potential improvements to communication and internal training concerning CES scoring, including overall scores for Development Goal contracts, and specific scores for achieving the objectives of a Development Goal. o ODOT will evaluate selection rating procedures for contracts that include Development Goals to ensure consistency statewide. o Complete survey results will be posted to ODOT s website. 21
QUESTIONS? Last updated 10/18/2017 22