DBE GOAL METHODOLOGY FOR
FISCAL YEARS 2016 THROUGH 2018
The Interurban Transit Partnership (ITP) overall goal for FYs-2016 through 2018 is
represented as a percentage of the FTA funds (exclusive of FTA funds to be used for
the purchase of transit vehicles) that ITP estimates it will be expending in new FTA
assisted contracts. The overall rate of DBE participation is 2.24%. The overall goal
(2.242% x $44,899,683 = $1,006,651) is based on the total ITP FYs’2016 through 2018
capital budget in Federal dollars less vehicle purchase which have no
subcontracting opportunities. Adjustments are then made for unbid carryover
projects from FY’2015 that have DBE contracting opportunities.
The exact calculation is as follows:
$44,899,683
x
2.242%
$ 1,006,651
The following is a summary of the method used to set this goal.
SUMMARY
Pursuant to USDOT regulations adopted under 49 CFR PART 26 which went into effect
in FY-2000, ITP has adopted percentage goals for DBE participation which are
consistent with ITP’s own spending patterns and with the amount of DBE participation
that would be expected to be achievable in a RACE NEUTRAL marketplace. The ITP
is seeking to obtain its fiscal years 2016 through 2018 goal by using 100% race/gender
neutral means. The new regulations require that goals be based upon demonstrable
evidence of relative availability of DBE’s in the ITP geographical and product
markets.
Availability Analysis:
ITP determined the number of ready, willing, and able DBE’s in its marketplace from
examination of the following DBE directories: MDOT Unified Certification Process
(MUCP) directory for DBE firms, local ITP directory, and the U.S. Census County
Business Pattern of Kent, Ottawa, Barry, Ionia, Newaygo, Muskegon and Allegan
Counties in Michigan to determine the total number of business establishments
available in its marketplace identified by North American Industrial Classification
Codes (NAIC). (ITP extended its statistical are by 6 counties from past years based on
a larger radius of DBE firms willing to travel to Grand Rapids, MI.) The County Business
Pattern data is available for FY 2013 in the specific counties which serve as ITP’s
primary marketplace.
Weighting To Reflect The Amount Of Money To Be Spent In Each NAIC Area:
Each area of minority participation was weighted, based on the relative availability
of Federal funds to be spent in each NAIC area: ITP utilized due diligence to sort out
DBE’s from directories by NAIC which were likely to be judged as willing and able in
FTA assisted contracting. This narrowing aspect ensured that a more accurate
availability figure would emerge from the Step One calculation. More emphasis was
then placed on the ITP FYs 2016 through 2018 Goal.
NAIC’s Which Made Up A Percentage Of The Total ITP Budget:
ITP has identified the relevant NAIC code services and commodities approximated
for acquisition FYs 2016 through 2018. DBE’s were identified in certain NAIC’s and
outreach efforts planned to target these commodities to ensure broader
participation such as.
METHODOLOGY FOR DETERMINING DBE GOAL FOR ITP
1.
ITP obtained the latest available NAICS report for Kent, Ottawa, Barry, Ionia,
Newaygo, Muskegon and Allegan Counties in Michigan using the U.S.
Census County Business Pattern for Kent County.
2.
ITP determined the number of certified DBE’s in each NAICS code within the
area.
3.
The number of DBE verses non-DBE firms was calculated in the applicable
NAICS code, and the number of DBE’s was expressed as a percentage of
total businesses in that code.
4.
“Weighting” of relative availability to reflect the amount of money to be
spent in each NAIC area. The formula used for this calculation can be
found on page 5110 Federal Register Vol.64. No. 21, February 2, 1999.
5.
Total Federal funds for fiscal years 2016 through 2018 are projected to be
$44,899,683 excluding vehicle purchases.
6.
Total DOT assisted funds for each NAICS code with DBE firms was identified
for the upcoming fiscal year. A three year average was determined to find
the historical rate of DBE participation with ITP. The applicable percentage
was applied to the budget line item.
The resulting DBE projected
expenditure amount of $1,006,651 is the amount to be obtained 100% by
race/gender neutral means or 2.242% of the Federal funds.
The Rapid’s Planned DBE Outreach Program for FYs 2016 through 2018





The Rapid is a participating member in the Michigan Unified Certified Program
(MUCP). The MUCP exists to provide an effective means of communication,
cooperation and collaboration among the MUCP agencies, and to enhance our
ability to encourage DBE firms to become certified and participate in transit
projects. The focus of the MUCP is to provide quality service to our customers
through the implementation and administration of this program. The Rapid will be
publicizing a list of potential bid opportunities that will occur in the fiscal year so
that firms will have the opportunity to get certified in a timely manner. (ITP notes
that the willingness of prospective vendors to participate in the FTA certification
process continues to be challenging as firms continue their reluctance to share
personal net worth information as well as find the entire process very long and
arduous; other certification programs through city and county entities are much
simpler).
The Rapid is a member in the Regional Alliance for Diversity in Public Purchasing.
The mission of the group is to increase opportunities for minorities, women,
veterans, and ADA-disabled and small business owners to sell their products and
services. A Rapid representative continues to attend the group meetings, which
are held bi-monthly. A Rapid representative will continue to maintain a display
booth and also represent as the vendor for explanation on the ITP DBE program at
the Regional Alliance for Diversity in Public Purchasing “Meet the Buyers”
conference event held annually. The regional Alliance will continue with stepping
up efforts in FY’2016 through 2018 to increase membership and to make minority
(and non-minority) and small business subcontracting opportunities available and
known throughout the area.
The Rapid has completed of a Purchasing Department web page that will
publicize bid opportunities and is working on posting instructions for all firms
including minority firms and small businesses (on how to do business with the ITP).
A representative from The Rapid is active in the following local organizations for
explanation of ITP DBE program; Minority Business Advocacy Coalition, West
Michigan Minority Contractors Association, and Regional Small Business
Development Center in Grand Rapids Michigan.
The ITP is a corporate benefactor or sponsor at the Grand Rapid Chamber of
Commerce Annual Minority Business Celebration. We will continue the corporate
sponsorship.
CALCULATION OF THE 2016 through 2018 DBE GOAL
Step One:
NAIC
236210
236220
236220
236220
236220
236220
236220
237120
332311
237310
237310
238190
238210
238210
238210
238210
238220
238220
238220
238910
238910
238910
332312
332312
333991
336112
336112
337211
337215
Calculation of Dollar Value
DBE’S IN EACH NAICS CODE
A
B
DISCRIPTION
% BUDGET
DBE-DIR
Rehab
1.721003%
1
admin/maintenance
facility
General Trades
0.534525%
1
CMAR
CMAR
General
CMAR
General Trades
Gas
Passenger Shelters/
Benches/Amenities
Concrete
Concrete
Building
Electrical
Electrical
Electrical
Electrical
Mechanical
Mechanical
Mechanical
Site Work
Site Work
Site Work
Architectural Metals
Bus Stations
Shop Equipment
Service Vehicles
Replacement Van
Pools
Office Furniture
Equipment
Storage/Shelving
Units
C
# COUNTY BP
6
84
0.534525%
0.734972%
0.601341%
0.902011%
2.115828%
0.734972%
0.751805%
1
1
1
1
1
0
0
84
84
84
84
84
2
0
0.24991%
4.443238%
2.706032%
1.425400%
0.489981%
0.902011%
7.405397%
1.603575%
0.979962%
1.503351%
1.469944%
0.300670%
4.443238%
0.979962%
18.931091%
0.730325%
0.536789%
0.723836%
2
2
0
1
1
1
1
1
1
1
4
4
4
0
1
0
0
0
32
32
3
278
278
278
278
369
369
369
57
57
57
8
19
29
1
1
0.292130%
0
6
0.109549%
0
10
339950
339950
423430
423430
423430
423510
423830
441310
485991
541310
541310
541330
541610
561621
561720
561730
Bus Stop Signs
Informational
Displays
Computer Hardware
Computer Software
Intelligent
Transportation
System
Metals
Supply/Fabrication
Facility Equipment
Associated Capital
Maintenance
Capital Cost of
Contracting
Funding for 65% PE
for Laker Line
A&E
MOT/Signage/Pvt
Mrkg
Planning Funds
Surveillance/Security
Equipment/Security
Preventive
Maintenance
Landscape/
Hardscape
Bus Tire Lease
Miscellaneous
Support Equipment
Miscellaneous
Contingencies
0.068840%
0.073032%
0
0
11
11
0.344201%
0.224389%
2.581205%
0
0
0
23
23
23
1.380856%
2
59
1.418107%
6.207762%
0
0
137
78
5.404405%
0
6
3.563500%
0
49
0.668156%
2.327411%
0
3
49
133
2.789423%
0.706063%
0
0
235
8
8.496827%
0
0
1.269497%
3
211
2.921300%
0.337410%
0
0
0
0
0.365162%
0
0
According to page 5110 Federal Reg. Vol.64, No 21, February 2, 1999 the formula is:
Column A times Column B divided by Column C: Results from formula for Base Rate
from County Business Pattern and DBE Directory
THE RESULTS
236210
236220
236220
236220
236220
236220
1.721003 x 1 divided by 6 =
0.534525 x 1 divided by 84 =
0.534525 x 1 divided by 84 =
0.734972 x 1 divided by 84 =
0.601341 x 1 divided by 84 =
0.902011 x 1 divided by 84 =
0.286834%
0.006363%
0.006363%
0.008750%
0.007159%
0.010738%
236220
237120
332311
237310
237310
238190
238210
238210
238210
238210
238220
238220
238220
238910
238910
238910
332312
332312
333991
336112
336112
337211
337215
339950
339950
423430
423430
423430
423510
423830
441310
485991
541310
541310
541330
541610
561621
561720
561730
2.115828 x 1 divided by 84 =
0.734972 x 0 divided by 2 =
0.751805 x 0 divided by 0 =
0.24991 x 2 divided by 32 =
4.443238 x 2 divided by 32 =
2.706032 x 0 divided by 3 =
1.425400 x 1 divided by 278 =
0.489981 x 1 divided by 278 =
0.902011 x 1 divided by 278 =
7.405397% x 0 divided by 278 =
1.603575 x 1 divided by 369 =
0.979962 x 1 divided by 369 =
1.503351 x 1 divided by 369 =
1.469944 x 4 divided by 57 =
0.300670 x 4 divided by 57 =
4.443238 x 4 divided by 57 =
0.979962 x 0 divided by 8 =
18.931091 x 1 divided by 19 =
0.730325 x 0 divided by 29 =
0.536789 x 0 divided by 1 =
0.723836 x 0 divided by 1 =
0.292130 x 0 divided by 6 =
0.109549 x 0 divided by 10=
0.068840 x 0 divided by 11 =
0.073032 x 0 divided by 11 =
0.344201 x 0 divided by 23 =
0.224389 x 0 divided by 23 =
2.581205 x 0 divided by 23 =
1.380856 x 2 divided by 59 =
1.418107 x 0 divided by 137 =
6.207762 x 0 divided by 78 =
5.404405 x 0 divided by 6 =
3.563500 x 0 divided by 49 =
0.668156 x 0 divided by 49 =
2.327411 x 3 divided by 133 =
2.789423 x 0 divided by 235 =
0.706063 x 0 divided by 8 =
8.496827 x 0 divided by 0 =
1.29497 x 3 divided by 211 =
2.921300 x 0 divided by 0 =
0.337410 x 0 divided by 0 =
0.365162 x 0 divided by 0 =
0.025188%
0.000000%
0.000000%
0.015312%
0.277702%
0.000000%
0.005127%
0.001763%
0.003245%
0.026638%
0.004346%
0.002656%
0.004074%
0.103154%
0.021100%
0.311806%
0.000000%
0.996373%
0.000000%
0.000000%
0.000000%
0.000000%
0.000000%
0.000000%
0.000000%
0.000000%
0.000000%
0.000000%
0.046806%
0.000000%
0.000000%
0.000000%
0.000000%
0.000000%
0.052498%
0.000000%
0.000000%
0.000000%
0.018050%
0.000000%
0.000000%
0.000000%
Total
Base Rate
2.242048%
2.242% (Rounded)
This 2.242% represents the Base Rate for ITP’s FYs 2016 through 2018 DBE utilization.
Step Two:
Historical Adjustment
The Rapid is entering a three (3) year period of high construction projects which is
generally associated with higher DBE contract opportunities as reflected in the Base
Rate calculated above. The anticipated projects include: A CNG Fueling Station,
Retrofit for CNG to the Rapid Operations Center and the Construction of the Laker
Line BRT. The project opportunities and awards are anticipated to be spread out
over the triennial period. Since we are entering this period of higher than normal
construction activity it seems unnecessary to conduct a historical adjustment which
would only reduce the projected DBE rate. Therefore the ITP has elected to skip Step
Two.