Government of New York



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DISADVANTAGED BUSINESS ENTERPRISE (DBE) GOAL

FOR

FEDERAL AVIATION ADMINISTRATION (FAA)-FUNDED PROJECTS AT REPUBLIC AIRPORT

FEDERAL FISCAL YEARS (FFY) 2017-2020

New York State Department of Transportation

50 Wolf Road, 6th Floor

Albany, New York 12232

September 2016

The following proposed Disadvantaged Business Enterprise (DBE) goal and methodology has been developed by the New York State Department of Transportation (Department) in fulfillment of the requirements of 49 CFR Part 26. The goal and methodology outlines the Department’s approach to compliance with DBE requirements covering federally funded projects at Republic Airport (FRG). FRG is the only state-owned airport for which the Department receives federal funds.

METHODOLOGY

The following is a summary of the methodology that NYSDOT used to calculate the goal.

Step 1 – Base Figure Determination

The base figure was calculated by dividing the number of ready, willing and able DBEs by the number of all available firms in the surrounding market area. The scope of FAA-assisted agreements by the Department consists of construction, landscaping and specialty trades, as well as, marketing, surveying and engineering services. The source of available DBEs is the New York State Unified Certification Program (NYSUCP) Directory. Firms are listed by North American Industry Classification System (NAICS) Codes in order to facilitate cross referencing with the County Business Patterns (CBP) data from U.S. Census Bureau. Therefore, only firms that are certified in the categories listed in the table below were considered. These services are performed at Republic Airport; therefore, the market area considered for this methodology includes Bronx, Kings, Nassau, New York, Queens, Richmond, Suffolk & Westchester Counties. The number of available DBEs and the number of available firms derived from the CBP for each code is as follows:

|Scope |NAICS Code |CBP Firms |DBE Firms |

|Airport Building Construction |236220 |1,404 |48 |

|Highway, Street and Bridge Construction |237310 |193 |73 |

|Other Heavy and Civil Engineering Construction |237990 |109 |16 |

|Electrical Contractors and Other Wiring Installation |238210 |3,326 |50 |

|Site Preparation Contractors |238910 |521 |60 |

|All Other Specialty Trade Contractors |238990 |902 |53 |

|Architectural Design Services |541310 |1,844 |21 |

|Engineering Services |541330 |1,267 |77 |

|Marketing Consulting Services |541613 |2,325 |19 |

|Environmental Consulting Services |541620 |253 |36 |

|Landscape Services |561730 |3,649 |8 |

|Remediation Services |562910 |150 |20 |

|Total Number of Firms | |15,943 |481 |

The base figure is therefore 481 total DBE firms divided by 15,943 CBP firms, which equals 3%.

Step 2 – Adjustment

The Department considered adjustment to the base figure by examining the following factors:

Goal From Another DOT Recipient With Same Market Area

Historically, the scope of the Department’s FAA-assisted consultant agreements cover a range of aviation planning projects and studies, including, but not limited to: financial analyses, economic benefits, land use plans, airport business plans, State System Plan updates, airport economic studies, runway obstruction studies, etc. The nature of these agreements is either a retainer or on-call consultant services, with a maximum amount payable. Specific assignments within these agreements are financed and scoped as needs are identified and as FAA funds become available. The DBE participation is usually obtained through the use of subcontract agreements. DBE firms that perform aviation planning have been and continue to be difficult to find.

In consideration of adjusting the base figure the Department consulted with other airports located in the same or similar market area as Republic Airport. These airports also contract with consultants and contractors to have similar types of work and services performed at their airport. The chart below illustrates data considered by the Department.

|AIRPORT |FISCAL YEARS |DBE GOAL |

|MacArthur Airport |2015-2017 |*12.71% |

|**PANYNJ |2017-2019 |12% |

*MacArthur Airport designated a specific goal for each federal fiscal year. This percentage is representative of the average DBE Goal over those thee years (FY2015 - FY2017).

**This data is representative of all the airports under the administration of the Port Authority of New York & New Jersey (PANYNJ) including: John F. Kennedy International, LaGuardia, Newark Liberty International, Stewart International and Teterboro Airports.

The average DBE Goal for the airports noted above is 12.35%. The Department is considering this data in its goal calculation as these airports are located in the same or a similar market area as Republic Airport and contract to have the same types of projects completed as the projects progressed at Republic Airport.

Evidence from Disparity Studies

The Department reviewed and analyzed the most recent NYS disparity study: The State of Minority- and Woman-Owned Business Enterprise: Evidence from New York (2010) to determine if any firms could serve the aviation industry. The study was not limited to DBEs and included a larger group of firms more broadly defined as Minority and Woman-Owned Business Enterprises (M/WBE). While the results of the study inferred some disparity for M/WBE firms, the findings did not yield significant differences such that an adjustment to the base figure would be warranted. The Department continues to partner with Empire State Development’s Division of Minority and Woman-Owned Business Development and sub-recipients to increase DBE certification among M/WBE firms to expand the potential for contracting opportunities through specific DBE and M/WBE outreach meetings and workshops and working directly with sub-recipients on every contracting opportunity including DBE participation or good faith outreach efforts.

Step 3 – Overall DBE Goal

The Department believes averaging the current capacity of ready, willing and able DBEs to be more representative of an attainable DBE Goal for the three year period covering Federal Fiscal Years 2017, 2018 and 2019. Thus, with the adjustment made to the base figure, the Department’s overall DBE Goal for this three year period is 7.7%. This rate is based on the average of 3% and 12.35%.

The Department will meet the maximum feasible portion of its goal by using both race-neutral (consultant/professional service agreements) and race-conscious (construction contracts) means of facilitating DBE participation such as: conducting outreach to potential DBE sub-consultants and sub-contractors and working with consultants progressing capital projects at Republic Airport to identify DBE firms that perform aspects of the project scope. The Department will establish sub-contracting DBE goals on construction projects undertaken at Republic Airport.

The basis for a race-neutral goal is as follows:

1. Individual assignments (which effectively are individual agreements) within the retainer or on-call services agreements are usually well below one (1) million dollars, and the maximum amount payable is usually below this amount; these present limited opportunity for subcontracting;

2. Assignment of work under retainer and on-call services nature of FAA-assisted agreements is dependent upon FAA funds availability vs. when needs are identified; these conditions are not completely certain and predictable;

3. The Department has aspired to attain a 20% level of DBE utilization for federally- assisted consultant agreements since the mid 1990s, preceding by several years the race-conscious/race-neutral discussion contained in 49 CFR 26. The aforementioned reasons (Items #1 and #2 above) are the basis for a race-neutral goal for consultant agreements.

The basis for a race-conscious goal is as follows:

1. Due to the limited amount of opportunities available for DBEs to participate on federally assisted consultant/professional service agreements, the Department has opted to include race-conscious DBE goals on all construction projects undertaken at Republic Airport.

2. Construction projects provide the opportunity for sub-contractors to participate on projects at Republic Airport. By setting DBE sub-contracting goals on all construction projects, the Department increases the opportunities for sub-contractors to participate in federally funded projects.

The Department anticipates that many of the FAA funded projects that will take place at Republic Airport over the next three federal fiscal years will be capital construction projects. Therefore, the percentage of contracts projected to be race-conscious vs. race-neutral based upon anticipated contracting activities over the 2017-2019 period is as follows:

• Race-Conscious: 90%

• Race-Neutral: 10%

PROCESS

The Department will post a notice of the proposed goal on the Department’s web site by September 19, 2016, and will advertise in the Minority Commerce Weekly, a publication that has served Minority and Women-owned Business Enterprises for 29 years. The notice will inform the public that the proposed goal and its rationale are available for inspection during normal business hours at the Department’s main office for thirty (30) days following the date of the notice, and that the Department and the United States Department of Transportation will accept comments on the goal for forty five (45) days from the date of the notice. The notice will include the respective addresses to which comments may be sent as well as the Department’s main office location where the goal and the goal setting methodology may be reviewed.

The Department will participate in outreach sessions held by other entities as they become available to inform contractors and consultants of the proposed DBE goal and the goal setting methodology. A list of organizations is provided in Attachment B. The notice will also be published in the New York State Contract Reporter. The Department will inform FAA accordingly of any comments received during this public participation process and its responses.

The Department will implement the goal upon completion of the public comment period and approval from FAA. The goal will not be finalized until all comments from FAA and the public have been reviewed and considered.

CONTRACT GOALS

The Department’s goal for each consultant contract will be race-neutral, regardless of dollar value. The Department’s goal for each construction contract will be 7.7%, regardless of dollar value. The contract goal will be expressed as a percentage of the total amount of the agreement.

ATTACHMENT A

PUBLICATIONS USED FOR PROPOSED DBE GOAL NOTICE

Minority Commerce Weekly

Advertise on Contracting and Procurement Opportunities for certified Small Disadvantaged, Minority and Woman-Owned Enterprises

And

New York State DOT Aviation Bureau Web Pages



or



And

New York State Contract Reporter

NYS' official source of contracting opportunities ()

ATTACHMENT B

NYS HIGHWAY CONTRACTOR ASSOCIATIONS

Construction Industry Council of

Westchester & Hudson Valley, Inc.

629 Old White Plains Road

Tarrytown, New York 10591

Phone – (914) 631-6070

Fax – (914) 631-5172

E-mail: ross@

Long Island Contractors Assoc., Inc.

150 Motor Parkway, Suite 307

Hauppauge, NY 11788

Phone – (631) 231-5422

Fax – (631) 231-4291

E-mail: mherbst@

General Contractors Association

60 E. 42nd Street

New York, New York 10165

Phone – (212) 687-3131

Fax – (212) 808-5267

E-mail: DRichardson@

Associated General Contractors

NYS Chapter, Inc.

10 Airline Drive, Suite 203

Albany, NY 12205-1025

Phone – (518) 456-1134

Fax – (518) 456-1198

E-mail: melmendorf@

Website:

Empire State Highway Contractors Association, Inc.

2481 Higby Road

Frankfort, NY 13340

Phone – (315) 895-5303

Fax – (315) 895-5307

Toll Free: 1-866-498-4440

E-mail: Jwheeler@

Website:

ATTACHMENT C

NYS DEPARTMENT OF TRANSPORTATION PUBLIC NOTICE

DBE GOAL FOR FAA-FUNDED CONTRACTS

Pursuant to 49 CFR Part 26.45(g)(2), the NYS Department of Transportation makes public notice of its proposed goal for DBE utilization on projects funded assisted by the Federal Aviation Administration (FAA) at Republic Airport for FFYs 2017-2019: 7.7% goal.

To view NYSDOT’s DBE Goal Plan 2017-2019 (FAA) and goal:



or



Comments are due by November 4, 2016.

NYS Department of Transportation

Aviation Bureau

50 Wolf Road

POD 5-4

Albany, New York 12232

E-mail comments to: Gerardo.Mendoza@dot.

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