Disadvantaged Business Enterprise Supportive Services (DBE Disadvantaged Business Enterprise Supportive Services (DBE.SS) Program & Best Practices Tuesday, May 8, 2018 2018 AASTHO Conference Oklahoma City, OK

Building Capacity for DBEs Today’s Agenda 1 Purpose of the DBE.SS Program 2 DBE.SS Program Structure 3 Types of Services/Programs Building Capacity for DBEs 4 Pilot Performance Measures 5 Best/Commendable Practices 6 FAQs/Roundtable/Open Discussion

Purpose of the DBE.SS Program 23 U.S.C. 140 (c) To provide training, assistance, and services to DBE firms certified in the DBE Program to increase their activity within the program, and to facilitate the firms’ development into viable, self-sufficient businesses capable of competing for and performing on Federally-assisted highway projects.

Program Structure Requirements: A detailed Statement of Work (SOW) Defined activities/performance measures Budget sheet (2 CFR 200): allowable expenses Business Development Program (BDP) To evaluate and provide a structured process for DBEs to receive firm-specific training and technical assistance.

Types of Services Identification, prequalification, and certification assistance Technical Skills (i.e. estimating, bidding, etc.) Long-term business management, recordkeeping, and financial accounting capabilities Bonding and financial assistance

Types of DBE.SS Program In-House Services Consultant (s) Hybrid formal advertising is not required by FHWA; however, the State DOT shall solicit proposals from such qualified sources as will assure the competitive nature of the procurement. Hybrid The evaluation of proposals by the State highway agency must include consideration of the proposer's ability to effect a productive relationship with majority and minority contractors, contractors' associations, minority groups, and other persons or organizations whose cooperation and assistance will increase the opportunities for minority business enterprises to compete for and perform contracts and subcontracts. In the selection of contractors to perform supportive services, State highway agencies shall make conscientious efforts to search out, and utilize the services of qualified minority or women organizations, or minority or women enterprises.

Bonus: Contract Provisions (as a minimum) Statements: A primary purpose of the supportive services is to increase the total number of minority firms participating in the Federal-aid highway program and to contribute to the growth and eventual self-sufficiency of minority firms; Supportive services shall be provided only to those minority business enterprises determined to be eligible for participation in the Federal-aid highway program in accordance with 49 CFR part 23 and have a work specialty related to the highway construction industry; Services to be provided under the contract, such as technical assistance, managerial assistance, counseling, certification assistance, and follow-up procedures as set forth in §230.204(b) of this part; The nondiscrimination provisions required by Title VI of the Civil Rights Act of 1964 as set forth in Form FHWA-1273, Required Contract Provisions, Federal-Aid Construction Contracts,1 and a statement of nondiscrimination in employment because of race, color, religion, sex, or national origin; The establishment of a definite period of contract performance together with, if appropriate, a schedule stating when specific supportive services are to be provided;

Bonus: Contract Provisions con’t (as a minimum) Monthly or quarterly reports to the State highway agency containing sufficient data and narrative content to enable evaluation of both progress and problems; The basis of payment; An estimated schedule for expenditures; The right of access to records and the right to audit shall be granted to authorize State highway agency and FHWA officials; Noncollusion certification; A requirement that the contractor provide all information necessary to support progress payments if such are provided for in the contract; and A termination clause.

DBE.SS National Performance Measures Pilot Categories: Increased Participation of DBEs Increased Pool of DBEs Services Provided Business Development Program (BDP) Financial Management: Cost Effectiveness and Internal Controls Pilot States: Florida, Illinois, Iowa, Virginia, Indiana, Arizona, Missouri, Kansas, Kentucky, DC, Alaska, Ohio & Montana

Best/Commendable Practices Needs Assessment (i.e. prime contractors, DBEs) A supportive Services Program is linked to current and future federal-aid highway projects Inter-agency agreements to leverage/maximize resources (i.e. educational institutions) Statewide approach programs Pay for Performance Concept Program curriculum for participants Survey stakeholders to create services

Frequently Asked Questions (FAQ) Yes –but the program cannot be part of someone’s collateral duties Can DBE.SS funds be used to fund a state employee’s salary? No Can DBE.SS funds be used to train the State DOT DBE.SS Program Coordinator? Should be part of needs assessment/services offered What about DBE consultants? Up to 2yrs – if funding is available. Are options to renew allowed?

Roundtable Discussion 1. What should success look in the DBE.SS Program? 2. DBE.SS Program Lessons Learned/Best Practices 3. What are the current barriers to DBE firms?

Questions Tracy Duval DBE.SS Program Coordinator/Program Analyst DBE & Contractor Compliance Team Federal Highway Administration Office of Civil Rights Phone: 202-366-1604 tracy.duval@dot.gov