AUGUSTA REGIONAL AIRPORT DISADVANTAGED BUSINESS ENTERPRISE PROGRAM Regional Airport AMENDED 2012
TABLE OF CONTENTS SECTION I:POLICY STATEMENT 1 A. Objectives/Policy Statement (49 CFR Part 26.1, 26.23) 1 SECTION II:GENERAL REQUIREMENTS 2 A. Objectives (49 CFR Part 26.1) 2 B. Applicability (49 CFR Part 26.3) 2 C. Definitions (49 CFR Part 26.5) 2 D. Non-discrimination Requirements (49 CFR Part 26.7) 2 E. Record Keeping Requirements (49 CFR Part 26.11) 2 F. Federal Financial Assistance Agreement (49 CFR Part 26.13) 3 SECTION ITI: ADMINISTRATIVE REQUIREMENTS 3 A. DBE Program Updates (49 CFR Part 26.21) 3 B. Policy Statement (49 CFR Part 26.23) 4 C. DBE Liaison Officer (49 CFR Part 26.25) 4 D. DBE Financial fustitutions (49 CFR Part 26.27) 6 E. Prompt Payment Mechanisms (49 CFR Part 26.29) 6 F. Directory(49CFRPart26.31) 7 G. Overconcentration (49 CFR Part 26.33) 7 H. Monitoring and Enforcement Mechanisms (49 CFR Part 26.37) 7 SECTION ITI: SMALL BUSINESS PARTICIPATION (49 CFR PART 26.39) 8 A. Objective 8 B. Definitions 8 C. Certification and Verification Procedures 9 D. Implementation Schedule 10 E. Assurances 10 SECTION IV:GOALS, GOOD FAITH EFFORTS, AND COUNTING 10 A. Set-asides or Quotas (49 CFR Part 26.43) 10 B. Set-asides or Quotas (49 CFR Part 26.45) 10 C. Contract Goals (49 CFR Part 26.51(d-g)) 11 D. Counting DBE Participation (49 CFR Part 26.55) 14 SECTION V- CERTIFICATION 14 A. Certification Process & Decisions (49 CFR Part 26.61-26.83) 14 B. Unified Certification Program 14 C. Certification Appeals (49 CFR Part 26.89) 15 SECTION VI- COMPLIANCE AND ENFORCEMENT 15 A. Information, Confidentiality, Cooperation (49 CFR Part 26.109) 15 ATTACHMENTS 16 Attachment 1 17 Attachment 2 18
Section 1: Policy Statement A. Objectives/Policy Statement (49 CFR Part 26.1, 26.23) Augusta Georgia's Augusta Regional Airport (Augusta Regional Airport) has established a Disadvantaged Business Enterprise (DBE) Program in accordance with regulations of the U.S. Department of Transportation, 49 CPR Part 26. Augusta Regional Airport has received financial assistance from the Department of Transportation, and as a condition of receiving this assistance, Augusta Regional Airport has signed an assurance that it will comply with 49 CPR Part 26. It is the policy of Augusta Regional Airport to ensure that Disadvantaged Business Enterprises (DBEs), as defined in 49 CFR Part 26, have an equal opportunity to receive and participate in DOTassisted contracts. It is also Augusta Regional Airport's policy to: 1. To ensure nondiscrimination in the award and administration ofpaa assisted contracts; 2. To create a level playing field on which DBEs can compete fairly for PAA assisted contracts; 3. To ensure that the DBE Program is narrowly tailored in accordance with applicable law; 4. To ensure that only firms that fully meet 49 CPR Part 26 eligibility standards are permitted to participate as DBEs; 5. To help remove any barriers to the participation of DBEs in PAA assisted contracts; and 6. To assist the development of firms that can compete successfully in the market place outside the DBE Program. Brenda Brown has been designated as the DBE Liaison Officer. In that capacity, Ms. Brown is. responsible for implementing all aspects of the DBE Program. Ms. Brown can be reached at 1501 Aviation Way Augusta, Georgia 30906, by phone at (706) 798-3236, or via email at bbrown@augustaga.gov. Implementation of the DBE Program is accorded the same priority as compliance with all other legal obligations incurred by Augusta Regional Airport in its financial assistance agreements with the Department of Transportation. Augusta Regional Airport has disseminated this policy statement to the Aviation Commission and all of the components of its organization. It has distributed this statement to DBE and non-dbe business communities that perform work for the Airport on PAA assisted contracts, and has implemented the DBE Program with the same priority with which it complies with other legal obligations imposed by PAA. Augusta Regional Airport has communicated with DBE and non-dbe businesses via its website to let them know that a copy of thidocument is available for viewing. Additionally, this d cument is available to anyone who requests at the Airport offices located at 1501 Aviation Way A gust eorgia 30906 during the Airport 's normal business hour of 8.. Gary. LeTellier, A.A.E Executive Airport Director Augusta J,l Regional Airport B I01-o 12-- Date \ Date!J - /J-J')._ 1
A. Objectives (49 CFR Part 26.1) SECTION II: GENERAL REQUIREMENTS The objectives are found in the Policy Statement on page one, hereinabove. B. Applicability (49 CFR Part 26.3) Augusta Regional Airport is the recipient of federal airport funds authorized by 49 U.S.C. 47101, et seq. C. Definitions (49 CFR Part 26.5) Augusta Regional Airport adopts, and incorporates herein by reference, the definitions contained in 49 CFR Part 26.5 for the DBE Program. D. Non-discrimination Requirements (49 CFR Part 26.7) Augusta Regional Airport will not exclude any person from participation in, deny any person the benefits of, or otherwise discriminate against anyone in connection with the award and performance of any contract covered by 49 CFR Part 26 on the basis of race, color, sex, or national origin. In administering its DBE Program, Augusta Regional Airport will not, directly or through contractual or other arrangements, use criteria or methods of administration that have the effect of defeating or substantially impairing accomplishment of the objectives of the DBE Program with respect to individuals of a particular race, color, sex, or national origin. E. Record Keeping Requirements (49 CFR Part 26.11) Reporting to FAA: 26.11(b) Augusta Regional Airport will submit the Uniform Report ofdbe Awards or Commitments and Payment Form, as modified, for use by FAA recipients on an annual basis. Bidders List: 26.ll(c) Augusta Regional Airport will create a bidders list, consisting of information about all DBE and non-dbe firms that bid or quote on its FAA assisted contracts. The purpose of this requirement is to allow use of the bidders' list approach to calculating overall goals. The bidder list will include the name, address, DBE non-dbe status, age, and annual gross receipts of the firms. Augusta Regional Airport will also collect this information from bid documents submitted to the Procurement Department upon receipt of a bid. Augusta Regional Airport will also collect the name, address of the responding firm, a list of the DBE 2
firms included in the bid or the firm's good faith efforts and the percentage and dollar amount of the work proposed for the DBE firm(s). F. Federal Financial Assistance Agreement (49 CFR Part 26.13) Augusta Regional Airport has made the following assurances, applicable to all FAA assisted contracts and their administration: Assurance: 49 CFR Part 26.13(a) Augusta Regional Airport shall not discriminate on the basis of race, color, national origin, or sex in the award and performance of any FAA-assisted contract or in the administration of its DBE Program or the requirements of 49 CFR Part 26. The recipient shall take all necessary and reasonable steps under 49 CFR Part 26 to ensure nondiscrimination in the award and administration of FAA-assisted contracts. The recipient 's DBE Program, as required by 49 CFR Part 26 and as approved by FAA, is incorporated by reference in this agreement. Implementation of this Program is a legal obligation and failure to carry out its terms shall be treated as a violation of this agreement. Upon notification to the Commission of its failure to carry out its approved Program, the Department may impose sanctions as provided for under 49 CFR Part 26 and may, in appropriate cases, refer the matter for enforcement under 18 U.S.C. 1001 and/or the Program Fraud Civil Remedies Act of 1986 (31 U.S.C. 3801 et seq.). Contract Assurance: 49 CFR Part 26.13(b) Augusta Regional Airport will ensure that the following clause, or its equal, is placed in every FAA-assisted contract and subcontract: The contractor or subcontractor shall not discriminate on the basis of race, color, national origin, or sex in the performance of this contract. The contractor shall carry out applicable requirements of 49 CFR Part 26 in the award and administration of FAA-assisted contracts. Failure by the contractor to carry out these requirements is a material breach of this contract, which may result in the termination of this contract or such other remedy as the Airport deems appropriate. SECTION III: ADMINISTRATIVE REQUIREMENTS A. DBE Program Updates (49 CFR Part 26.21) Since Augusta Regional Airport has received at least one grant of at least $250,000 or more for airport planning or development, it will continue to carry out this DBE Program until all fimds from FAA financial assistance have been expended. Augusta Regional Airport will provide updates to the FAA of any significant changes in the DBE Program. 3
B. Policy Statement (49 CFR Part 26.23) The Policy Statement is located on page one, hereinabove. c. DBE Liaison Officer (49 CFR Part 26.25) Augusta Regional Airport has designated the following individual as its DBE Liaison Officer (DBELO): Brenda Brown 1501 Aviation Way Augusta, GA 30906 Telephone:706-798-3236 Fax:706-798-1551 E-mail: BBrown@augustaga.gov In that capacity, the DBELO is responsible for, in coordination and cooperation with Airport staff and Board members, implementing all aspects of the DBE Program and ensuring that Augusta Regional Airport complies with all provisions of 49 CFR Part 26. The DBELO has direct, independent access to the Airport Executive Director concerning DBE Program matters. An organizational chart displaying the DBELO's position in the organization is found in Attachment 1 attached hereto and incorporated herein by reference. The DBELO is responsible for, among other duties: 1. Developing, managing, and implementing the DBE Program on a day-to-day basis; 2. Advising the Airport Executive Director and Aviation Commission on DBE matters and achievement; and 3. Acting as a liaison to the Uniform Certification Process (UCP) in Georgia. These duties and responsibilities include the following: Outreach & Education 1. Providing outreach to DBEs and community organizations to advise them of opportunities; 2. Providing DBEs with information and assistance in preparing bids, and obtaining bonding and insurance; 3. Planning and participating in DBE training seminars; 4. Providing assistance to DBEs in overcoming barriers in the procurement process such as inability to obtain financing or technical assistance; 4
Contract & Procurement Activities 1. Providing information to DBE firms about the Airport, its functions, and the full range of its contractual needs; 2. Providing DBE firms with information on future procurement and contracting schedules; 3. Providing sufficient lead time for advertisement of all invitations for bids so that all firms have reasonable time to develop a complete bid package or proposal and secure necessary assistance; 4. Placing bid notices in local newspapers, especially publications which are circulated through the DBE community; 5. Sending bid notices to DBE trade associations, technical assistance agencies, DBE economic development groups, and DBEs with capabilities relevant to the bid notice, as identified by the DBE directory; 6. Making bid specifications available to DBE contractor associations and technical assistance agencies; 7. Providing DBEs and DBE organizations with lists of contractors who are expected to be interested in bidding on a contract; 8. Holding pre-bid conferences and pre-proposal meetings to provide firms with an opportunity to inquire about the Airport's DBE requirements; 9. Conducting information and communication programs on contracting procedures and specific contracting opportunities; 10. Offering instructions and clarification on bid specifications, the Airport's procurement policies, procedures and general bidding requirements; 11. Providing instructions about contract performance requirements; 12. Notifying, whenever possible, certified DBEs of informal bid solicitations for contracts within their areas of expertise and qualifications to ensure a full and fair opportunity to participate in such contracts; Goal Setting 1. Working with Airport staff to set overall annual goals; 2. Analyzing contracts and procurements so that DBE goals are included in solicitations (both race-neutral methods and contract specific goals attainment); Monitoring & Compliance 1. Reviewing third party contracts and purchase requisitions for compliance with this DBE Program; 2. Compiling and reporting statistical data and other information as required by FAA; and 3. Analyzing the Airport's progress toward attainment and identifying ways to improve progress; 4. Creating a compilation of successful public bid documents from past procurements and permitting DBEs to review and evaluate these documents; 5
Other Airport personnel have responsibilities for DBE Program implementation, including: 1. Providing information to the DBELO on contracting and leasing opportunities, together with a breakdown of subcontracting possibilities; 2. Consulting with the DBELO on procurement policies, including bonding, licensing, and other requirements; 3. Explaining the DBE participation requirements at pre-bid and pre-proposal conferences; 4. Ensuring that solicitations contain the requisite clauses and goals; and 5. Reviewing contract provisions to assure compliance with applicable laws. D. DBE Financial Institutions (49 CFR Part 26.27) It is the policy of Augusta Regional Airport to investigate the full extent of services offered by financial institutions owned and controlled by socially and economically disadvantaged individuals in the community, to make reasonable efforts to use these institutions, and to encourage prime contractors working on FAA assisted contracts to make use of these institutions. To date we have identified the following such institutions: Capitol City Bank and Trust Company 1268 Broad Street Augusta, GA 30901 Information on the availability of such institutions may be obtained from the DBELO. E. Prompt Payment Mechanisms (49 CFR Part 26.29) Augusta Regional Airport will include the following clause, or similar language, in each FAA assisted prime contract: The prime contractor agrees to pay each subcontractor under this contract for satisfactory performance of its contractual obligations no later than seven (7) days from the receipt of each payment the prime contract receives from Augusta Regional Airport. The prime contractor agrees further to return retainage payments to each subcontractor within seven (7) days after the subcontractors work is satisfactorily completed. Any delay or postponement of payment from the above-referenced time frame may occur only for good cause following written approval of the Airport. 6
F. Directory (49 CFR Part 26.31) Augusta Regional Airport, through its participation in the state of Georgia's UCP, has access to a directory identifying all firms eligible to participate as DBEs. The directory lists the finn's name, address, phone number, date of the most recent certification, and the type of work the finn has been certified to perform as a DBE. The directory is updated at least monthly. Georgia Department of Transportation makes available via website the directory at http://tomcat2.dot.state.ga.us/contractsadministration/uploads/012012letdbe Directory C A New.pdf. G. Overconcentration (49 CFR Part 26.33) Augusta Regional Airport has not identified overconcentration in the types of work that DBEs perform. H. Monitoring and Enforcement Mechanisms (49 CFR Part 26.37) All bidders are hereby notified that failure to carry out the obligations of this DBE Program will constitute a breach of good faith in dealing with Augusta Regional Airport, and that Augusta Regional Airport will take any and all actions permitted by law to ensure compliance by all contractors engaged by it. Augusta Regional Airport will bring to the attention of the Department of Transportation any false, fraudulent or dishonest conduct in connection with the DBE Program, so that the Department of Transportation can take steps (e.g., referral to the Department of Justice for criminal prosecution, referral to the Department of Transportation Inspector General, action under suspension and debarment of Program Fraud and Civil Penalties rules) provided in 49 CFR Part 26.107. Augusta Regional Airport will also consider similar action to the extent permitted by applicable law, including making responsibility determinations in future contracts and solicitations. The DBELO and appropriate staff will make prompt compliance determinations regarding contractors. Documentation of non-compliance will include the specific areas in which the contractor failed to comply. In these instances, appropriate action, consistent with the DBE Program and contract provisions, will be taken. Augusta Regional Airport will also provide a monitoring and enforcement mechanism to verify that work committed to DBEs at contract award is actually performed by the DBEs. This will be accomplished by written certification in conjunction with monitoring of contract performance (i.e. DBE pay application and certifications). Augusta Regional Airport will keep a running tally of actual payments to DBEs. 7
A. Objective (49 CFR Part 26.39) SECTION III: SMALL BUSINESS PARTICIPATION Recognizing that the DBE Program goals should be met through a mixture of race conscious and race neutral methods and, that by definition, DBE firms are small businesses; Augusta Regional Airport seeks to implement a small business element into its current DBE policy in accordance with applicable law. Augusta Regional Airport is including this element to facilitate competition by and expand opportunities for small businesses. Augusta Regional Airport is committed to taking all reasonable steps to eliminate obstacles to small businesses that may preclude their participation in procurements as prime contractors or subcontractors. Augusta Regional Airport will meet its objectives using a combination of following methods and strategies: 1. Set asides: Where feasible, Augusta Regional Airport will establish a percentage of the total value of all prime contract and subcontract awards to be set aside for participation by small businesses on FAA-assisted contracts. A "set-aside" is the reserving of a contract or a portion of a contract exclusively for participation by small businesses. This requires that Augusta Regional Airport and its prime contractors/ consultants set aside a portion of the value of each contract for participation by small businesses. A small business set-aside is open to all small businesses regardless of the owner's gender, race or geographic location. The project manager and DBELO will review FAA-assisted purchases and contracts to assess the small business opportunities, giving consideration to the size and scope of each purchase or contract to establish the set aside percentage. This set aside is in addition to the DBE contract goals which may be required pursuant to applicable law or policy. In the event that a set-aside is not established on an FAAassisted contract, the project manager and small business officer will document why a small business set-aside is inappropriate. 2. Unbundling: Augusta Regional Airport, where feasible, may "unbundle" projects or separate large contracts into smaller contracts which may be more suitable for small business participation. Augusta Regional Airport will conduct contract bundling reviews on each FAA assisted contract to determine whether portions of the project could be "unbundled" or bid separately. Similarly, Augusta Regional Airport will encourage its prime contractors or prime consultants to unbundle contracts to facilitate participation by small businesses. B. Defmitions 1. Small Business: A small business is a business that is independently owned and operated, is organized for profit, and is not dominant in its field. Depending on the industry, size standard eligibility 8
is based on the average number of employees for the preceding twelve months or on sales volume averaged over a three-year period. Small businesses must meet the definitions specified in Section 3 of the Small Business Act and the Small Business Administration regulations implementing it (13 CFR Part 121). 2. Disadvantaged Business Enterprise: A for-profit small business (as defined by the Small Business Administration) - That is at least 51 percent owned by one or more individuals who are both socially and economically disadvantaged or, in the case of a corporation, in which 51 percent of the stock is owned by one or more such individuals; Whose socially and economically disadvantaged owners personal net worth (PNW) does not does not exceed the $1.32 million cap established in 49 CFR Part 26. Whose management and daily business operations are controlled by one or more socially and economically disadvantaged individuals; and Has been certified as a DBE by the Georgia Department of Transportation (GDOT) in accordance with 49 CFR 26. For purposes of the small business element of the Augusta Regional Airport's DBE Program, small businesses which are also owned and controlled by socially disadvantaged individuals will be encouraged to seek DBE certification. Only DBE certified firms will be counted towards DBE participation on FAA-assisted contracts. C. Certification and Verification Procedures Augusta Regional Airport will accept the following certifications, with applicable stipulations, for participation in the small business element of its DBE Program: 1. GDOT DBE Certification- DBE Certification by the GDOT which demonstrates that a firm has been determined to meet all the requirements in accordance with 49 CFR Part 26. All certification determinations are evidenced by a letter of DBE certification issued bygdot. 2. Georgia Department of Administrative Services (DOAS) Small Business Enterprise (SBE) -Will require submittal of three years ofbusiness tax returns after contract award. 3. SBA HUB Certification - Will require submittal of three years of business tax returns after contract award. 4. SBA (8A) Business Development Certification (as described in 13 CFR Parts 121 and 124)- will require submittal of three years ofbusiness tax returns. 5. Augusta, Georgia's Local Small Business Opportunities Program (LSBOP) Certification -Will require submittal of three years ofbusiness tax returns after contract award. Note that minority and women-owned business enterprises which are awarded contracts under the Small Business Enterprise set aside will be strongly encouraged to seek DBE certification in order to be counted towards race neutral DBE participation. 9
D. Implementation Schedule Augusta Regional Airport's Aviation Commission will approve the small business element of the Small Business Participation element of the DBE Program by February 28, 2012, and will implement it within two months of the FAA's approval of this element. E. Assurances Augusta Regional Airport Aviation Commission makes the following assurances: 1. The DBE Program and its small business element is not prohibited by state law; 2. Certified DBEs that meet the size criteria established under the DBE Program are presumptively eligible to participate in the small business element of the DBE Program; 3. There are no geographic or local preferences or limitations imposed on FAA-assisted contracts and the DBE Program is open to small businesses regardless of their location; 4. There are no limits on the number of contracts awarded to firms participating in the DBE Program; 5. Reasonable effort will be made to avoid creating barriers to the use of new, emerging, or untried businesses; and 6. Aggressive steps will be taken to encourage those minority and women owned firms participating in the Small Business Enterprise element of the DBE Program that are eligible for DBE certification to become certified as such. SECTION IV: GOALS, GOOD FAITH EFFORTS, AND COUNTING A. Set-asides or Quotas (49 CFR Part 26.43) Augusta Regional Airport does not use quotas in any way in the administration of its DBE Program. Augusta Regional Airport will not use race or gender-conscious set-aside contracts for DBEs on FAA-assisted contracts, except that, in limited and extreme circumstances, it may use set-asides when no other method can be reasonably expected to redress egregious instances of discrimination. Augusta Regional Airport may implement race and gender neutral set asides to facilitate the participation of Small Business Enterprises on FAA assisted contracts. B. Set-asides or Quotas (49 CFR Part 26.45) An overall goal will be determined each three years based on federal participation and historical data. A description of the methodology used to calculate the overall goal and the most recent goal calculations can be found in Attachment 2, attached hereto and incorporated herein by reference. Before establishing the overall goal, Augusta Regional Airport will 10
consult with the members of the DBE and non-dbe business community, to obtain information concerning the availability of disadvantaged and non-disadvantaged businesses, the effects of discrimination on opportunities for DBEs, and its efforts to establish a level playing field for the participation opportunities for DBEs. Following any such consultation, Augusta Regional Airport will publish a notice of the proposed overall goals, informing the public that the proposed goal and its rational are available for inspection during normal business hours at the Airport's offices for thirty (30) days following the date of the notice, and informing the public that the Commission and FAA will accept comments on the goals for forty-five (45) days from the date of the notice. Augusta Regional Airport's overall goal submission to FAA will include a summary of information and comments received during this public participation process and our responses. Augusta Regional Airport will begin using the overall goal on October 1 every three years, unless it has received other instructions from the FAA and/or applicable law. If the Airport establishes a goal for an FAA assisted contract on an individual project basis, it will apply that goal to the project. C. Contract Goals (49 CFR Part 26.5l(d-g)) Augusta Regional Airport will use contract goals to meet any portion of the overall goal that it does not project being able to meet using race-neutral means. Contract goals are established so that, over the period to which the overall goal applies, they will cumulatively result in meeting any portion of the overall goal that is not projected to be met through the use of race-neutral means. Augusta Regional Airport will establish contract goals only on those FAA assisted contracts that have subcontracting possibilities. Augusta Regional Airport may not establish a goal on every such contract, and the size of any contract goals will be adapted to the scope and type of each such contract (e.g., type and location of work, availability ofdbes to perform the particular type of work). Individual contract goals will be established on a contract-by-contract basis by the DBELO in conjunction with other Airport staff. Contract goals will be determined by considering the total dollar value of potential subcontract awards to DBEs, the total estimated dollar value of the prime contract, the scope of work to be accomplished, the availability of certified DBEs to perform necessary work, and past experience on similar contracts. D. Good Faith Efforts Procedures (49 CFR Part 26.53(a-f)) Demonstration of good faith efforts The obligation of the bidder is to make good faith efforts to meet the applicable DBE participation goal(s). The bidder can demonstrate that it has done so either by meeting the contract goal or documenting its good faith efforts. 11
All bidders will be required to agree, by the submission of a bid for work on a project for which a contract is to be awarded by the Commission, to ensure that they will not discriminate against DBEs in assembling bid responses, and that where there are contract goals, that they will either present a bid that meets the goals, or provide documentation of the good faith efforts made to meet the goals. Failure to make good faith efforts and to adequately document such efforts to the Augusta Regional Airport will be grounds for disqualifying a bid as non-responsive, pending the outcome of the administrative reconsideration process. Bidders shall not discriminate on the basis of race, color, national origin or gender in the award and performance of contracts. Augusta Regional Airport will ensure that all information is complete, accurate and adequately documents the bidder's good faith efforts before it commits to the award of the contract. Information to be submitted Augusta Regional Airport will treat a bidder's compliance with good faith efforts requirements as a matter of bid responsiveness. All DBE participation and good faith efforts must be identified during the bidding process. Any increase in DBE Participation which occurs after the bidding process will not be considered in determining the bidder's achievement of the verifiable goal or its good faith effort to achieve the goal. The DBELO in collaboration with Airport staff shall make the initial determination as to whether or not a bidder has made sufficient good faith efforts. In making this determination, the DBELO will only consider documentation provided during the bidding process. Each solicitation for which a contract goal has been established will require the bidders to submit the following information: 1. The names and addresses of DBE firms that will participate in the contract; 2. A description of the work that each DBE will perform; 3. The dollar amount of the participation of each DBE firm; 4. Written and signed documentation of a commitment to use a DBE subcontractor whose participation it submits to meet a contract goal; 5. Written and signed confirmation from the DBE that it is participating in the contract as provided in the prime contractor's commitment; and 6. Evidence of good faith efforts if the contract goal is not met. The following criteria will be considered and will be addressed point by point in assessing the bidder's good faith efforts submission: 1. Whether the bidder attended any pre-solicitation or pre-bid meetings that were scheduled by Augusta Regional Airport to inform DBEs of contracting and subcontracting opportunities and informed DBEs of contracting and subcontracting opportunities; 12
2. Whether the bidder advertised in general circulation, trade association, and minorityfocused media concerning subcontracting opportunities; 3. Whether the bidder provided timely written notice to a reasonable number of specific DBEs that their interest in the contract was being solicited; such notice shall include sufficient information about the project and work to be subcontracted to allow the DBE to make an informed response; 4. Whether the bidder followed up initial solicitations of interest by personal or telephone contact to DBEs to determine with certainty whether or not the DBEs were interested; 5. Whether the bidder selected portions ofthe work to be performed by DBEs in order to increase the likelihood ofdbe participation (including, where, appropriate, breaking down contracts into economically feasible units to facilitate DBE participation); 6. Whether the bidder provided interested DBEs with adequate information about the plans, specifications and requirements of the contract; 7. Whether the bidder negotiated in good faith with interested DBEs, not rejecting DBEs as unqualified without sound reasons based on a thorough investigation of their capabilities; 8. Whether the bidder made efforts to assist interested DBEs in obtaining bonding, lines of credit, or insurance required by Augusta Regional Airport or the bidder; 9. Whether the bidder effectively used the services of available minority community organizations; minority bidders' groups; local, state, and federal minority business assistance offices; and other organizations that provide assistance in the recruitment and replacement ofdbes; and 10. The bidder's record for subcontracting with DBEs on prior contracts, as well as, its utilization in its bid of subcontractors and suppliers who would qualify as DBEs. Administrative reconsideration Within three (3) days ofbeing informed by Augusta Regional Airport that it is not responsive because it has not documented sufficient good faith efforts, a bidder may request administrative reconsideration. Bidder should make this request in writing to the following Reconsideration Official: Ms.Yvonne Gentry DBE Coordinator Augusta Richmond County ygentry@augustaga.gov (706) 826-1325 The Reconsideration Official will not have played any role in the original determination that the bidder did not document sufficient good faith efforts. As part of this reconsideration, the bidder will have the opportunity to provide written documentation or argument concerning the issue of whether it met the goal or made adequate good faith efforts to do so. The bidder 13
will have the opportunity to meet in person with the Reconsideration Official to discuss whether it met the goal or made adequate good faith efforts to do. The Reconsideration Official will send the bidder a written decision on the reconsideration, explaining the basis for the decision. The result of the reconsideration process is not administratively appealable to the Department of Transportation. Good faith efforts when a DBE is replaced Augusta Regional Airport will require a contractor to make good faith efforts to replace a DBE that is terminated or has otherwise failed to complete its work on a contract with another certified DBE, to the extent needed to meet the contract goal. The prime contractor must notify the DBELO immediately of the DBE's inability or unwillingness to perform and provide reasonable documentation. In this situation, the prime contractor must obtain Augusta Regional Airport's prior approval of the substitute DBE and to provide copies of new or amended subcontracts, or documentation of good faith efforts. If the contractor fails or refuses to comply in the time specified, Augusta Regional Airport may stop all or part of payment/work until satisfactory action has been taken. If the contractor still fails to comply, Augusta Regional Airport may terminate for default. E. Counting DBE Participation (49 CFR Part 26.55) Augusta Regional Airport will count DBE participation toward overall and contract goals as provided in 49 CFR 26.55. SECTION V- CERTIFICATION A. Certification Process & Decisions (49 CFR Part 26.61-26.83) Augusta Regional Airport is a member of a Unified Certification Program (UCP) administered by the Georgia Department of Transportation. Certification decisions will be made using the process and standards of Part 26, except as provided for in Part 23. B. Unified Certification Program Augusta Regional Airport is a member of a Unified Certification Program (UCP) administered by Georgia Department of Transportation (GDOT). GDOT in collaboration with Metropolitan Atlanta Rapid Transit Commission (MARTA) are the only agencies within the state which certifies DBE firms. GDOT may certify any firm doing business in the state of Georgia with the exception of any firm whose primary line of work falls under the concessionaire category. Firms whose primary place of business is outside the State of 14
Georgia can be certified provided that the finn has previously obtained DBE certification from its home state UCP. C. Certification Appeals (49 CFR Part 26.89) Any finn or complainant may appeal GDOT's certification decision to the US DOT. Such appeals may be sent to: U.S. Department oftransportation Departmental Office of Civil Rights External Civil Rights Programs Division (S-33) 1200 New Jersey Ave., S.E. Washington, DC 20590 Phone: (202) 366-4754 Fax: (202) 366-5575 SECTION VI- COMPLIANCE AND ENFORCEMENT A. Information, Confidentiality, Cooperation (49 CFR Part 26.109) Augusta Regional Airport will safeguard from disclosure to third parties information that meets the requirements of confidential business information, established by applicable federal, state, and local law. Notwithstanding any contrary provisions of state or local law, financial information which is submitted by an applicant for DBE certification will be kept confidential by Augusta Regional Airport and will not be released to any third party except upon written consent by the party whom the information pertains; or to transmit information to Department of Transportation in the event of an appeal. In accordance with applicable provisions of state or local law, Augusta Regional Airport will not release personal financial information submitted in response to the personal net worth requirement to a third party (other than FAA) without the written consent of the submitter. Monitoring Payments to DBEs Augusta Regional Airport will require prime contractors to maintain records and documents of payments to DBEs for three years following the performance of the contract. These records will be made available for inspection upon request by any authorized representative of the Airport or FAA. This reporting requirement will also extend to any certified DBE subcontractor. Augusta Regional Airport will monitor contract payments to DBEs. Augusta Regional Airport will review payments to DBE subcontractors to ensure that the actual amount paid to DBE subcontractors equals or exceeds the dollar amounts stated in the schedule of DBE participation. 15
ATTACHMENTS Attachment 1 Attachment 2 Organizational Chart Overall Goal Calculation 16
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Attachment 2 Overall Goal Calculation 18
FY2010 DISADVANTAGED BUSINESS ENTERPRISE (DBE) PROGRAM METHODOLOGY for Augusta Regional Airport at Bush Field Regional Airport Augusta, Georgia June2009
METHODOLOGY for Establishing the FY 2010 Overall Disadvantaged Business Enterprise (DBE) Goal for: Augusta Regional Airport at Bush Field, Augusta, Georgia (49 CFR Part 26) June2009 In fulfillment of the requirements of 49 CFR Part 26, the Augusta Regional Airport at Bush Field has developed a proposed Overall Goal for FY 2010 FAA-AlP projects at the Airport. The methodology used in establishing this goal is described herein. I. Goal Methodology: Detailed Application, Step One - DBE Base Figure A. Amount of Goal The Augusta Regional Airport at Bush Field's (Airport) overall goal for FY 2010 is the following:18.64% of the Federal financial assistance it will expend in DOTassisted contracts. Given that the amount of DOT-assisted contracts the Airport expects to let during this fiscal year is $7,441,700, this means that the Airport has set a goal of expending $1,362,575 with DBEs during this fiscal year. B. Determination of the Market Area Based on discussions with the Airport Staff, and after reviewing recent projects at the airport and the location of bidders, the normal market area for the Airport is located in eleven (11) counties in Georgia and one (1) in South Carolina. This is based on the fact that a majority of contracting dollars on similar projects was expended with contractors from these counties, and a majority of interested bidders (as indicated in pre-bid sign-in sheets) are located in these counties. This information is illustrated in Table 1. Table 1: Locations of Bidders/Vendors on Recent Similar Projects County State Number of Bidders or Vendors Bryan Georgia 1 Clarke Georgia 1 Clayton Georgia 1 Cobb Georgia 1 Columbia Georgia 2 Fulton Georgia 1 Gwinnett Georgia 1 Henry Georgia 1 Jefferson Georgia 1 McDuffie Georgia 1 Richmond Georgia 10 Aiken South Carolina 2 Other Counties 7 Total 30 Source: Azrport staff 2
The normal market area is located in the following counties: Bryan, Clarke, Clayton, Cobb, Columbia, Fulton, Gwinnett, Henry, Jefferson, McDuffie, Richmond, Georgia; and Aiken, South Carolina. C. Determination of relevant NAICS codes Based on information provided by the airport staff concerning the proposed projects for this fiscal year, a list of NAICS codes corresponding to these projects was developed and is shown in Table 2. Construct Runway 17-35 Rejuvenate, Air Carrier Pavement Rehab Design-Air Carrier Pavement Rehabilitation (design)* ALP * To SOURCE: Airport staff 3
STEP 3: Determination of Relative Availability of DBEs in Market Area, Compared to All firms Table 3: Availability ofdbe firms by Relevant NAICS Code Type or FY 2009 ProJ.ects Activity NAICS Codes DBE Firms All Firms %ofdbe Firms Available % of Estimated Total Expended Weighted Total Availability 237310 fconstruction 49 401 12.22% 92.07% 11.25% Professional Services 238990 541330 541370 541380 SOURCES: 1. Georgia Department of Transportation Certified DBE Directory, May 2009 2. 2006 County Business Patterns, US Census Bureau, May 2009 33 1,182 2.79% 7 93%.22% Step 1Base Goal = 11-47% NOTE: The 2006 County Business Patterns data were used as the source to determine the denominator, or the number of all firms in the market area. The DEE directories listed above were used to determine the numerator, or the number of DEE firms in the market area. D. Determination of the DBE Base Figure The Step 1DBE Base Figure was derived by using a weighting process by which the percentage of dollars spent on various activities (represented by NAICS codes) were multiplied by the percentage of relevant DBE firms to all relevant firms as indicated in Table 3 above. The Step 1DBE Base Figure for Augusta Regional Airport at Bush Field is 11.47% using the NAICS code methodology. II.Step 2: Adjustment to the DBE Base Figure After the Step 1DBE Base Figure has been developed, the regulations (49 CFR Part 26) require that: "...additional evidence in the sponsor's jurisdiction be considered to determine what adjustment, if any, is needed to the base figure in order to arrive at your overall goal" (26:45(d)). A. Adjustment Figures to Consider The regulations further state that there are many types of evidence that must be considered when adjusting the base figure. These include: 4
(i) Current capacity of DBEs to perform work on DOT-assisted contracting program as measured by the volume of work DBEs have performed in recent years. The historical overall DBE goals accomplished at the Airport in recent years were examined relative to the above consideration. Specifically, the annual "Report of DBE Goal Accomplishments" for the reporting periods listed below was assessed. Notice the annual DBE percent accomplishment for each year, and the calculated median for the periods reported: Table 4: Augusta Airport at Bush Field Historic DBE AccompJII'Shment fior SeIected Report 1ng Per1.ods., 2006-2008 Report Established DBE Total DBE Percent Over-/Under- Period Percentage Goal Achieved Achieved FY2oo6 15.17% 9-10% -6.10% F 2007 15.17% 42-90% 27-70% F 2008 18.20% 25.80% 7.60% Median 15.17% 25.80% 7.6o% Source: Azrport staff The median DBE accomplishment for each of the reporting periods as shown above is 25.80%, compared to the Step 1 DBE base figure for the Airport of 11.47%, derived using the methodology detailed in Part I of this report. It should be noted that the historic data is based on historical participation that is substantially similar to the proposed activities. B. Consultation (ii) Evidence from disparity studies conducted anywhere within your jurisdiction, to the extent it is not already accounted for in your base figure... (iii) Data on employment, self employment, education, training and union apprenticeship programs to the extent you can relate it to the opportunities for DBEs to perform in your program" (26:45, d.) Augusta-Richmond County has solicited the assistance of NERA Consulting to develop a disparity study. However, the study is not complete, and therefore cannot be utilized in adjusting the FY 2009 DBE goal methodology. The Airport further consulted with representatives from the Georgia Tech Procurement Assistance Center, Augusta-Richmond County DBE Office and the Small Business Development Center at the University of Georgia to determine the availability of additional evidence of disparity or discrimination against small or minority-owned businesses with regard to access to capital, bonding, insurance, etc. Those agencies had no quantifiable information with which to adjust the base figure. 5
C. Adjustment to DBE Base Figure With the factors in Part II considered to this point, the Airport will adjust the Step 1DBE base figure of 11.47% by averaging it with the annual historic median DBE participation noted in Table 4, above (25.80%) for a adjusted overall goal of 8.48%. The final adjusted goal (after rounding) is 18.64%. III. Process Augusta Regional Airport will normally submit its overall goal to the FAA on August 1of each year. Before establishing the overall goal this year, the Airport consulted with the Georgia Tech Procurement Assistance Center, Augusta-Richmond County DBE Office and the Small Business Development Center at the University of Georgia without limiting consultation to these groups, to obtain information concerning the availability of disadvantaged and non-disadvantaged businesses, the effects of discrimination on opportunities for DBEs, and the Airport's efforts to establish a level playing field for the participation of DBEs. Following this consultation, the Airport published a notice of the proposed overall goal, informing the public that the proposed goal and its rationale were available for inspection during normal business hours at the Airport's administrative office for 30 days following the date of the notice, and informing the public that the Airport would accept comments on the goals for 45 days from the date of the notice. The notice was published in the Augusta Chronicle. The notice included addresses (including offices) to which comments could be sent and addresses where the proposal could be reviewed. The Airport overall goal submission to the FAA will include a summary of information and comments received during this public participation process and our responses. The Airport will begin using the overall goal on October 1of each year, unless the Airport has received other instructions from DOT/FAA, or if the goal is established on a project basis by the time of the first solicitation for a DOT/FAAassisted contract. IV. Breakout of Estimated Race-Neutral/Race Conscious Participation The Airport will meet the maximum feasible portion of its overall goal by using race-neutral means of facilitating DBE participation. The Airport will use a combination of the following race-neutral means to increase DBE participation: 1. Arranging solicitations, times for the presentation of bids, quantities, specifications, and delivery schedules in ways that facilitate DBE, and other small businesses participation (e.g., unbundling large contracts to make them more accessible to small businesses, encouraging prime contractors to subcontract portions of work that they might otherwise perform with their own forces); 6
2. Disseminating information communicating contracting procedures and specific contract opportunities (e.g., ensuring the inclusion of DBEs and other small businesses on recipient mailing lists for bidders, ensuring the dissemination of information to prime contractors regarding potential subcontractors listings). 3 Ensuring that prime contractors are aware of and know how to obtain the approved DBE listing from the Georgia Department of Transportation. The Airport estimates that, in meeting its overall goal of 18.64%, that it will obtain 7.6o% from race-neutral participation and 11.04% through race-conscious measures. The reason for this breakout is that the projects from the previous years show that the median amount by which the past DBE goals were exceeded is 7.60% (see Table 4). This over-subscription of the goal indicates that 7.60% of the goal may be met using race-neutral methods while the remainder (11.04%) is projected to be achieved through race-conscious methods. The Airport will adjust the estimated breakout of race-neutral and race-conscious participation as needed to reflect actual DBE participation (26.51(f)) and it will track and report race-neutral and race-conscious participation separately. For reporting purposes, race-neutral DBE participation includes, but is not necessarily limited to, the following: DBE participation through a prime contract obtained through customary competitive procurement procedures; DBE participation through a subcontract on a prime contract that does not carry a DBE goal; DBE participation on a prime contract exceeding a contract goal; and DBE participation through a subcontract from a prime contractor that did not consider a firm's DBE status in making the award. V. Contract Goals The Airport will use contract goals to meet any portion of the overall goal that it does not project being able to meet using race-neutral means. Contract goals are established so that, over the period to which the overall goal applies, they will cumulatively result in meeting any portion of our overall goal that is not projected to be met through the use of race-neutral means. The Airport will establish contract goals only on those DOT-assisted contracts that have subcontracting possibilities. The Airport need not establish a contract goal on every such contract, and the size of contract goals will be adapted to the circumstances of each such contract (e.g., type and location of work, availability ofdbes to perform the particular type of work). The Airport will express its contract goals as a percentage of the Federal share of a DOT-assisted contract. 7