Southwest Ohio Regional Transportation Authority (SORTA)

[Pages:124]Southwest Ohio Regional Transportation Authority (SORTA)

Disadvantaged Business Enterprise (DBE) Program Compliance Review Final Report July 2017

U.S. Department of Transportation Federal Transit Administration

DBE Compliance Review SORTA)

July 2017

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DBE Compliance Review SORTA

July 2017

Table of Contents

Executive Summary ...................................................................................................................................... 5 Objective and Methodology...................................................................................................................... 5

1 General Information................................................................................................................................. 7

2 Jurisdiction and Authorities ..................................................................................................................... 9

3 Purpose and Objectives .......................................................................................................................... 11 3.1 Purpose .......................................................................................................................................... 11 3.2 Objectives ...................................................................................................................................... 11

4 Background Information ........................................................................................................................ 13 4.1 Introduction to SORTA and Organizational Structure .................................................................. 13 4.2 Budget and FTA-Assisted Projects................................................................................................ 14 4.3 DBE Program ................................................................................................................................ 14

5 Scope and Methodology......................................................................................................................... 15 5.1 Scope ............................................................................................................................................. 15 5.2 Methodology.................................................................................................................................. 16 5.3 Stakeholder Interviews .................................................................................................................. 17

6 Findings and Advisory Comments......................................................................................................... 19 6.1 DBE Program Plan ........................................................................................................................ 19 6.2 DBE Policy Statement ................................................................................................................... 19 6.3 DBE Liaison Officer...................................................................................................................... 21 6.4 DBE Financial Institutions ............................................................................................................ 22 6.5 DBE Directory ............................................................................................................................... 23 6.6 Overconcentration.......................................................................................................................... 23 6.7 Business Development Programs .................................................................................................. 23 6.8 Determining/Meeting Goals .......................................................................................................... 24

A) Calculation ................................................................................................................................. 24

B) Public Participation .................................................................................................................... 26

C) Race-Neutral DBE Participation ................................................................................................ 27

D) Race-Conscious DBE Participation............................................................................................ 28

E) Good Faith Efforts ...................................................................................................................... 29

F) Protecting Against Termination for Convenience....................................................................... 30

G) Counting DBE Participation....................................................................................................... 31

H) Quotas......................................................................................................................................... 31 6.9 Shortfall Analysis and Corrective Action Plan.............................................................................. 31 6.10 Transit Vehicle Manufacturers (TVMs) ........................................................................................ 32 6.11 Required Contract Provisions ........................................................................................................ 33

A) Contract Assurance..................................................................................................................... 33

B) Prompt Payment ......................................................................................................................... 33

C) Legal Remedies .......................................................................................................................... 33 6.12 Certification Standards .................................................................................................................. 34 6.13 Certification Procedures ................................................................................................................ 34

A) Onsite Visits and Document Review.......................................................................................... 34

B) Annual Affidavit......................................................................................................................... 34

C) Interstate Certification ................................................................................................................ 34

D) Denials........................................................................................................................................ 34 6.14 Record Keeping and Enforcements ............................................................................................... 35

DBE Compliance Review SORTA)

July 2017

7 Summary Table of Compliance Review Findings ................................................................................. 38

Attachments

A FTA Notification Letter to SORTA

B

SORTA Response

C

DBE Program Plan

DBE Compliance Review SORTA

July 2017

Executive Summary

Objective and Methodology

This report details the findings of FTA's compliance review of the Southwest Ohio Regional Transportation Authority's (SORTA's) Disadvantaged Business Enterprise (DBE) program implementation. It examines SORTA's DBE program procedures, management structure, actions, and documentation.

On behalf of FTA's Office of Civil Rights, the Collaborative, Inc. of Boston, Massachusetts conducted the review in three stages:

1. Preparation: compilation of information covering policies, procedures and reported data 2. Site visit: observation of SORTA's DBE program files, contracts, and interviews 3. Analysis and reporting: identification of deficiencies requiring corrective actions and suggestions

of effective practices in DBE programs

SORTA's DBE program includes the following positive program elements: Positive Program Elements

SORTA's Director of Diversity and Inclusion is well versed in the DBE program requirements and is implementing a number of important initiatives to increase DBE participation.

The DBE Program Plan is comprehensive and well organized.

SORTA must address the following administrative deficiencies to comply with 49 CFR Part 26: Administrative Deficiencies

Not all of SORTA's RFPs with DBE participation goals consistently include the required DBE provisions.

SORTA did not submit some Semi-Annual Uniform Reports by the required deadline.

SORTA must address the following substantive deficiencies to comply with 49 CFR Part 26: Substantive Deficiencies

SORTA's prior DBE goal calculation methodology and consultation process was not sufficiently documented.

SORTA's ability to monitor subrecipient DBE compliance is not sufficiently established.

SORTA's DBE participation has decreased over the past three fiscal years to just 1.4 percent. According to SORTA's management, a number of factors contribute to its recent low DBE participation, including capital project delays, staffing shortages, and other budget issues. Notwithstanding, this report highlight several steps to help ensure the DBE program is implemented in good faith

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DBE Compliance Review SORTA

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1 General Information

This chapter provides basic information concerning this compliance review of the Southwest Ohio Regional Transportation Authority (SORTA). Information on the grantee, the review team, and the dates of the review are presented below.

Grant Recipient: City/State: Grantee Number: Executive Official: On-site Liaison: Report Prepared By: Dates of Site Visit: Review Team Members:

Southwest Ohio Regional Transportation Authority (SORTA) Cincinnati, OH 2020 Dwight Ferrell, CEO Demarcus Peters, Director of Diversity and Inclusion The Collaborative, Inc., Boston, MA February 28?March 2, 2017 William Schwartz, Z. Wayne Johnson

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