MASSACHUSETTS PORT AUTHORITY PROPOSED DISADVANTAGED BUSINESS ENTERPRISE ( DBE ) GOALS FFY 2017 - FFY 2019 Airport Sponsor: Massachusetts Port Authority Airports: Boston Logan International Airport (BOS) Worcester Regional Airport (ORH) L.G. Hanscom Field (BED) Name of Preparer: Tiffany Brown-Grier, Massport Cindy Olivares, Airport Concession Consultants Telephone Number: (617) 568-3190 Goal Period: October 1, 2016 - September 30, 2019 Overall DBE Goal for FAA-Assisted Projects: Boston Logan International Airport 11.6% (race-conscious) Hanscom Field 10.9% (race-conscious) Worcester Regional Airport 9.3% (race-conscious)
DBE GOAL METHODOLOGY This overall goal period for the Massachusetts Port Authority ( MASSPORT ) Disadvantaged Business Enterprise ( DBE ) Program covers Federal Fiscal Years 2017 through 2019, a threeyear period, beginning October 1, 2016 and ending September 30, 2019. The Overall DBE Goal for the three-year period has been set in compliance with the methodologies described in CFR 49 Part 26 and subsequent guidance. FAA funding for AIP projects is anticipated to be approximately $43.4 million over the three-year period. Geographic Region The relevant geographic market for contractors for Massport projects is defined as the Commonwealth of Massachusetts because more than 80% of the companies performing projects (including federally-funded contracts) at the Airports operated by Massport over the last five years are based in Massachusetts. The methodology for determining the DBE goal is described below. STEP 1 - DETERMINE A BASE FIGURE REPRESENTING THE RELATIVE AVAILABILITY OF DBEs. For Federal fiscal years 2017 through 2019, we anticipate the following projects to be awarded: Logan International Airport (Bos) Runway 4R/22L Rehab and Replace, Runway 4R Approach Light Pier Rehab Taxiway Alpha East Runway Incursion Mitigation Worcester Regional Airport (ORH) Taxiway B Rehabilitation Between Runway 29 and Taxiway F Rehabilitate Taxiway B between Runway 15 and Taxiway F Runway 15-33 Structural Overlay Hanscom Field (BED) Runway 11-29 Rehabilitation ARFF (&CBP) Facility East Ramp Rehabilitation Each project was broken down by trade classification using the North American Industry Classification System (NAICS) except where noted on the below chart. The trade breakdown for the projects listed above is shown on Table 1. It should be noted that Massport does not anticipate receiving federal funds for design projects at this time. If this changes and federal funds are received for design projects, the goals will be updated. Massachusetts Port Authority 2
Table 1 AIP Projects/Trade Classifications Project Trade NAICS Trade $ Paving and Milling 237310 $3,200,000 Crack fill / Saw & Seal 237310 $150,000 Markings 237310 $200,000 Electrical 238210 $600,000 Runway 4R/22L Rehab and Replace, Runway 4R Approach Light Pier Grooving 237310 $100,000 Landscaping 561730 $50,000 Precast Concrete 238120 $450,000 Pile Driving 238910 $200,000 Drainage 238910 $50,000 Total Logan FFY 2017 $5,000,000 Earthwork / Excavation 238910 $750,000 Paving and Milling 237310 $3,200,000 Crack fill / Saw & Seal 237310 $150,000 Rehab Taxiway Alpha East Markings 237310 $200,000 Electrical 238210 $600,000 Landscaping 561730 $50,000 Drainage 238910 $50,000 Total Logan FFY 2018 $5,000,000 Earthwork / Excavation 238910 $1,800,000 Paving and Milling 237310 $4,800,000 Runway Incursion Mitigation Crack fill / Saw & Seal 237310 $100,000 Electrical 238210 $2,000,000 Landscaping 561730 $300,000 Drainage 238910 $1,000,000 Total Logan FFY 2019 $10,000,000 Total Logan FFY 2017-2019 $20,000,000 Massachusetts Port Authority 3
Table 1 AIP Projects/Trade Classifications Project Trade NAICS Trade $ Runway 11-29 Rehabilitation Total Hanscom FFY 2017 Earthwork / Excavation 238910 $220,500 Paving and Milling 237310 $7,938,000 Crack fill / Saw & Seal 237310 $441,000 Markings 237310 $441,000 Electrical 238210 $1,323,000 Grooving 237310 $330,750 Landscaping 561730 $110,250 Drainage 238910 $220,500 $11,025,000 ARFF (&CBP) Facility Site Prep and Paving 238910 $1,350,000 Site Utilities Concrete and rebar Foundation Structural Steel Framing 237130/237110 $648,000 238110 $756,000 238120 $540,000 Drywall 238310 $108,000 Exterior Finish 238310 $540,000 Electrical *Filed Sub-Bid $594,000 Mechanical/Plumbing *Filed Sub-Bid $432,000 Doors and Windows *Filed Sub-Bid $108,000 Roofing *Filed Sub-Bid $216,000 Painting *Filed Sub-Bid $108,000 Total Hanscom FFY 2018 $5,400,000 East Ramp Rehabilitation Earthwork / Excavation 238910 $100,000 Paving and Milling 237310 $750,000 Crack fill / Saw & Seal 237310 $150,000 Total Hanscom FFY 2019 $1,000,000 Total Hanscom FFY 2017-2019 $17,425,000 Massachusetts Port Authority 4
Table 1 AIP Projects/Trade Classifications Project Trade NAICS Trade $ Taxiway B Rehabilitation Between Runway 29 and Taxiway F Earthwork / Excavation 238910 $45,000 Paving and Milling 237310 $666,000 Crack fill / Saw & Seal 237310 $36,000 Markings 237310 $36,000 Electrical 238210 $90,000 Landscaping 561730 $18,000 Drainage 238910 $9,000 Total Worcester FFY 2017 $900,000 Rehabilitate Taxiway B between Runway 15 and Taxiway F Total Worcester FFY 2018 Earthwork / Excavation 238910 $50,000 Paving and Milling 237310 $740,000 Crack fill / Saw & Seal 237310 $40,000 Markings 237310 $40,000 Electrical 238210 $100,000 Landscaping 561730 $20,000 Drainage 238910 $10,000 $1,000,000 Earthwork / Excavation 238910 $81,000 Paving and Milling 237310 $2,997,000 Crack fill / Saw & Seal 237310 $162,000 Runway 15-33 Structural Overlay Markings 237310 $162,000 Electrical 238210 $405,000 Grooving 237310 $121,500 Landscaping 561730 $81,000 Drainage 238910 $40,500 Total Worcester FFY 2019 $4,050,000 Total Worcester FFY 2017-2019 $5,950,000 Total $43,375,000 *Subcontractors for these classifications are filed sub-bids (building trades) in accordance with Massachusetts Law. Filed sub-bids will be selected by Massport based on low dollar bid and utilized by the General Contractor on the project. Under Massachusetts Law, work performed in these classifications must be performed by the bidder and cannot be subcontracted. Because these classifications will be separately contracted and are prohibited from subcontracting, a DBE goal has not been applied to this portion of the work in accordance with 49 CFR part 26, section 26.51(e) (1). DBE Availability for the trades included above has been calculated using Census Bureau Data and the DBE Directory published by The Commonwealth of Massachusetts Supplier Diversity Office (the Massachusetts Unified Certification Program ( UCP )). Massachusetts Port Authority 5
Table 2 - DBE Availability Percentages % OF DBE FIRMS VS. ALL FIRMS Trade NAICS Census Directory % Water and Sewer Line and Related Structures Construction 237110 238 22 9.24% Power and Communication Line and Related Structures Construction 237130 99 2 2.02% Subtotal Utility Lines 337 24 7.12% Highway, Street & Bridge Construction 237310 240 47 19.58% Poured Concrete Foundation and Structure Contractors 238110 255 10 3.92% Structural Steel and Precast Concrete Contractors 238120 46 19 41.30% Electrical contractors 238210 2,232 25 1.12% Drywall and Insulation Contractors 238310 406 16 3.94% Site Preparation Contractors 238910 1,083 55 5.08% Landscaping Services 561730 3,528 32 0.91% Weighting the project trade anticipated expenditures using the availability calculations shown in Table 2 results in the following: Table 3 - DBE $ based on Project Expenditures by Trade Classification X DBE Availability Project Trade NAICS Trade $ DBE % DBE $ Paving and Milling 237310 $3,200,000 19.58% $626,560 Crack fill / Saw & Seal 237310 $150,000 19.58% $29,370 Markings 237310 $200,000 19.58% $39,160 Runway 4R/22L Rehab and Electrical 238210 $600,000 1.12% $6,720 Replace, Runway 4R Grooving 237310 $100,000 19.58% $19,580 Approach Light Pier Landscaping 561730 $50,000 0.91% $455 Precast Concrete 238120 $450,000 41.30% $185,850 Pile Driving 238910 $200,000 5.08% $10,160 Drainage 238910 $50,000 5.08% $2,540 Total Logan FFY 2017 $5,000,000 18.41% $920,395 Earthwork / Excavation 238910 $750,000 5.08% $38,100 Paving and Milling 237310 $3,200,000 19.58% $626,560 Crack fill / Saw & Seal 237310 $150,000 19.58% $29,370 Rehab Taxiway Alpha East Markings 237310 $200,000 19.58% $39,160 Electrical 238210 $600,000 1.12% $6,720 Landscaping 561730 $50,000 0.91% $455 Drainage 238910 $50,000 5.08% $2,540 Total Logan FFY 2018 $5,000,000 14.86% $742,905 Earthwork / Excavation 238910 $1,800,000 5.08% $91,440 Paving and Milling 237310 $4,800,000 19.58% $939,840 Runway Incursion Mitigation Crack fill / Saw & Seal 237310 $100,000 19.58% $19,580 Electrical 238210 $2,000,000 1.12% $22,400 Landscaping 561730 $300,000 0.91% $2,730 Drainage 238910 $1,000,000 5.08% $50,800 Total Logan FFY 2019 $10,000,000 11.27% $1,126,790 Total Logan FFY 2017-2019 $20,000,000 13.95% $2,790,090 Massachusetts Port Authority 6
Table 3 - DBE $ based on Project Expenditures by Trade Classification X DBE Availability Project Trade NAICS Trade $ DBE % DBE $ Earthwork / Excavation 238910 $220,500 5.08% $11,201 Paving and Milling 237310 $7,938,000 19.58% $1,554,260 Crack fill / Saw & Seal 237310 $441,000 19.58% $86,348 Runway 11-29 Rehabilitation Markings 237310 $441,000 19.58% $86,348 Electrical 238210 $1,323,000 1.12% $14,818 Grooving 237310 $330,750 19.58% $64,761 Landscaping 561730 $110,250 0.91% $1,003 Drainage 238910 $220,500 5.08% $11,201 Total Hanscom FFY 2017 $11,025,000 16.60% $1,829,941 Site Prep and Paving 238910 $1,350,000 5.08% $68,580 237130/ Site Utilities 237110 $648,000 7.12% $46,138 Concrete and rebar Foundation 238110 $756,000 3.92% $29,635 Structural Steel Framing 238120 $540,000 41.30% $223,020 ARFF (&CBP) Facility Drywall 238310 $108,000 3.94% $4,255 Exterior Finish 238310 $540,000 3.94% $21,276 Electrical *Filed Sub-Bid $594,000 N/A N/A Mechanical/Plumbing *Filed Sub-Bid $432,000 N/A N/A Doors and Windows *Filed Sub-Bid $108,000 N/A N/A Roofing *Filed Sub-Bid $216,000 N/A N/A Painting *Filed Sub-Bid $108,000 N/A N/A Total Hanscom FFY 2018 $5,400,000 7.28% $392,904 Earthwork / Excavation 238910 $100,000 5.08% $5,080 East Ramp Rehabilitation Paving and Milling 237310 $750,000 19.58% $146,850 Crack fill / Saw & Seal 237310 $150,000 19.58% $29,370 Total Hanscom FFY 2019 $1,000,000 18.13% $181,300 Total Hanscom FFY 2017-2019 $17,425,000 13.80% $2,404,145 Earthwork / Excavation 238910 $45,000 5.08% $2,286 Paving and Milling 237310 $666,000 19.58% $130,403 Taxiway B Rehabilitation Crack fill / Saw & Seal 237310 $36,000 19.58% $7,049 Between Runway 29 and Markings 237310 $36,000 19.58% $7,049 Taxiway F Electrical 238210 $90,000 1.12% $1,008 Landscaping 561730 $18,000 0.91% $164 Drainage 238910 $9,000 5.08% $457 Total Worcester FFY 2017 $900,000 16.49% $148,415 Earthwork / Excavation 238910 $50,000 5.08% $2,540 Paving and Milling 237310 $740,000 19.58% $144,892 Rehabilitate Taxiway B Crack fill / Saw & Seal 237310 $40,000 19.58% $7,832 between Runway 15 and Markings 237310 $40,000 19.58% $7,832 Taxiway F Electrical 238210 $100,000 1.12% $1,120 Landscaping 561730 $20,000 0.91% $182 Drainage 238910 $10,000 5.08% $508 Total Worcester FFY 2018 $1,000,000 16.49% $164,906 Massachusetts Port Authority 7
Table 3 - DBE $ based on Project Expenditures by Trade Classification X DBE Availability Project Trade NAICS Trade $ DBE % DBE $ Runway 15-33 Structural Overlay Earthwork / Excavation 238910 $81,000 5.08% $4,115 Paving and Milling 237310 $2,997,000 19.58% $586,813 Crack fill / Saw & Seal 237310 $162,000 19.58% $31,720 Markings 237310 $162,000 19.58% $31,720 Electrical 238210 $405,000 1.12% $4,536 Grooving 237310 $121,500 19.58% $23,790 Landscaping 561730 $81,000 0.91% $737 Drainage 238910 $40,500 5.08% $2,057 Total Worcester FFY 2019 $4,050,000 16.93% $685,487 Total Worcester FFY 2017-2019 $5,950,000 16.79% $998,808 Total $43,375,000 14.28% $6,193,043 *Subcontractors for these classifications are filed sub-bids (building trades) in accordance with Massachusetts Law. Filed sub-bids will be selected by Massport based on low dollar bid and utilized by the General Contractor on the project. Under Massachusetts Law, work performed in these classifications must be performed by the bidder and cannot be subcontracted. Because these classifications will be separately contracted and are prohibited from subcontracting, a DBE goal has not been applied to this portion of the work in accordance with 49 CFR part 26, section 26.51(e) (1). Based on the above, we recommend a base goal of 14.28% for Massport projects for the three-year period. Because the types of projects to be undertaken at the three airports involve different trades, we propose separate base goals for each airport as follows: Boston Logan International Airport 13.95% Hanscom Field 13.80% Worcester Regional Airport 16.79% STEP 2 - EXAMINE DATA TO DETERMINE WHAT ADJUSTMENT, IF ANY, IS NEEDED TO THE BASE FIGURE. 1) We have reviewed the DBE goals of other agencies to determine if the proposed goals for the airports operated by the Authority are in line with the goals set by other local agencies. Goals for the other agencies reviewed are as follows: Massachusetts Bay Transportation Authority (MBTA) 13.5% Massachusetts Department of Transportation (MDOT) 13.2% Division of Capital Asset Management and Maintenance (DCAMM): Construction Projects 10.4% Design Projects 17.9% Based on this, we believe that the proposed goals are reasonable, requiring no adjustment as a result of this comparison, in light of the following: There are no design projects planned, so the DCAMM goal for design projects is not relevant The DCAMM goal is for M/WBEs, not DBEs, therefore the DBE goal for comparable projects (the ARFF Station) should be lower as not all M/WBEs will qualify as DBEs due to stricter requirements and filed sub-bids are not included The MBTA and MDOT goals are primarily for heavy construction and are comparable to the proposed goals for those projects with heavy construction trades 2) We have reviewed the past history of DBE participation for Massport projects over the last 5 years to determine if an adjustment should be made based on past history. Massachusetts Port Authority 8
DBE participation in awarded contracts over the past 5 years for each airport is as follows: Boston Logan International Airport Year Project $ DBE $ DBE % Goal % 2015 $13,441,725 $1,057,075 7.9% 11.0% 2014 $6,019,112 $832,990 13.8% 11.0% 2013 $10,558,528 $960,842 9.1% 14.0% 2012 $10,629,263 $1,393,318 13.1% 14.0% 2011 $47,423,938 $2,718,986 5.7% 14.0% Hanscom Field Year Project $ DBE $ DBE % Goal % 2015 $1,137,259 $93,261 8.2% 7.9% 2014 $1,191,229 $211,873 7.9% 7.9% 2013 $1,292,576 $116,286 9.0% 14.0% 2012 $537,815 $29,700 5.5% 14.0% 2011 $0 $0 0.0% 14.0% Worcester Regional Airport Year Project $ DBE $ DBE % Goal % 2015 $2,736,305 $377,286 13.8% 8.9% 2014 $3,444,942 $175,778 5.1% 8.9% 2013 $973,928 $16,921 1.7% 14.0% 2012 $759,388 $8,343 1.1% 14.0% 2011 $0 $0 0.0% 14.0% The median DBE participation accomplishment for Boston Logan International Airport for the fiveyear period is 9.1%. Adjusting the base goal by airport for past history results in the following: Boston Logan International Airport (BOS): 14.0% (base goal) + 9.1 % (median goal accomplishment) = 23.1% 23.1% 2 = 11.6% The median DBE participation accomplishment for Hanscom Field for the five-year period is 7.9%. Adjusting the base goal by airport for past history results in the following: L.G. Hanscom Field (BED): 13.8% (base goal) + 7.9% (median goal accomplishment) = 21.7% 21.7% 2 = 10.9% The median DBE participation accomplishment for Worcester Regional Airport for the five-year period is 1.7%. Adjusting the base goal by airport for past history results in the following: Worcester Regional Airport (ORH): 16.8% (base goal) + 1.7% (median goal accomplishment) = 18.5% 18.5% 2 = 9.3% Therefore, we propose the Overall Goals for FY 2017 2019 as follows: Boston Logan International Airport 11.6% Hanscom Field 10.9% Worcester Regional Airport 9.3% We will continue to monitor the project plans during this time period and update the goals as necessary for changes in the planned projects or scopes. Massachusetts Port Authority 9
Race-Neutral versus Race-Conscious Goal Race-Neutral versus Race-Conscious Goal In light of the fact that Massport has not met its overall DBE goal for 4 out of 5 of the last years for Boston Logan International Airport and Worcester Regional Airport and 3 of the last 5 years at Hanscom Field, we propose to set the goals as race-conscious goals. We will monitor the progress towards the goals on a monthly basis and adjust the race-neutral/race-conscious split as necessary. The following race-neutral methods will be employed: a) Provide information on the Massport organization, functions and its full range of contractual needs. b) Offer instructions and clarification on bid specifications, procurement policy, procedures, and general bidding requirements. c) Maintain a file of successful bid documents from past procurements and permit potential participants to review and evaluate such documents. d) Conduct debriefing sessions on awarded contracts as requested. e) Routinely issue projected procurement information. f) Provide instructions and clarification on job performance requirements. g) Provide information and assistance on certification procedures. h) Provide information on sub-contracting practices and bonding requirements. i) When arranging solicitations, endeavor to allow time for preparation of bids and delivery schedules so as to facilitate the participation of DBEs. Massachusetts Port Authority 10