TO: AC Transit Board of Directors
FROM: Michael A. Hursh, General Manager
SUBJECT: Disadvantaged Business Enterprise Semi-Annual Payment Report
BRIEFING ITEM
RECOMMENDED ACTION(S):
Title
Consider receiving the Disadvantaged Business Enterprise (DBE) Semi-Annual Payment Report for the Period of October 1, 2019 through March 31, 2020.
Body
STRATEGIC IMPORTANCE:
Goal - Financial Stability and Resiliency
Initiative - Financial Efficiency and Revenue Maximization
The Federal Transit Administration (FTA) has mandated that AC Transit, as a recipient of DOT-assisted funding, is required to adopt and implement a DBE Program. Inclusive in the implementation is the periodic reporting to the FTA on the success and challenges of meeting established triennial DBE goals. Supporting this requirement ensures that the District remains eligible to receive FTA funding.
BUDGETARY/FISCAL IMPACT:
There is no budgetary or fiscal impact associated with this report.
BACKGROUND/RATIONALE:
During this reporting period, the District successfully achieved and exceeded its 10% DBE participation goal. District awards and commitments during this period resulted in 26% of federal dollars going to DBE firms. This was due to a single contract awarded to a DBE firm that also included DBE subcontracting commitments.
|
Prime Contract Awards Dollars |
$2,253,071 |
|
DBE Prime Awards & Subcontract Commitments |
$585,038 |
|
DBE % |
26% |
In addition to new DBE commitments, the FTA looks at ongoing utilization of DBE firms. Currently, there are 14 ongoing contracts and subcontracts awarded prior to the current reporting period resulting in 14% DBE utilization, as indicated in the table below:
|
Total Federal Dollars Paid |
Total Payments to DBEs |
DBE Percentage |
|
$12,506,041 |
$1,751,127 |
14% |
The District’s Federal Transit Administration (FTA) Federal Fiscal Year (FFY) Triennial DBE Goal for FFY2020 - 2022 is 10% annually, reported semi-annually for periods October-thru-March, and April-thru-September. This is the 1st of two reports for FFY2020-2021, the first year of the three- year period.
Although DBE firms have performed on non-federally funded projects during this report period, the Federal Transportation Administration’s (FTA) DBE utilization calculation is exclusively based upon contract awards and commitments awarded during the specific semi-annual report period. District staff continually performs electronic monitoring of its prime contractors and their commitment to DBEs and SBEs, including prompt payment requirements. Additionally, efforts to increase the use of DBEs have been bolstered by aligning procurement opportunities with the Board Policy 460: Disadvantaged Business Enterprise (DBE) Policy, and Board Policy 466: Small and Small Local Business Enterprise Policy; enhanced outreach efforts that entail in-person meetings with DBE and SBE firms; and collaboration with other public agencies on DBE, SBE, and SLBE utilization.
ADVANTAGES/DISADVANTAGES:
This report does not recommend a course of action with advantages or disadvantages.
ALTERNATIVES ANALYSIS:
As this report is informational, no alternatives were considered.
PRIOR RELEVANT BOARD ACTION/POLICIES:
SR19-199 Disadvantage Business Enterprise Goal for Fiscal Years 2020-2022
Board Policy 466 - Small and Small Local Business Procurement Policy
Board Policy 460 - Disadvantages Business Enterprise Policy
ATTACHMENTS:
None. The corresponding FTA Uniform Report of DBE Commitments/Awards and Payments is available upon request.
Prepared by:
Phillip J. L. Halley, Contracts Compliance Administrator
Approved/Reviewed by:
Michael A. Hursh, General Manager
Jill A. Sprague, General Counsel
Lynette Little, Director of Civil Rights & Compliance