February 19, 2015 Arden Hills Office of Civil Rights Presented by: Kim Collins and Sean Skibbie

 Kim Collins, Director  Mary B. Schmidt, Deputy Director  Kristi Schroedl, Director of Special Projects  Ashanti Payne, Business and Program Development Manager  Maria Conley, Contract Compliance Supervisor  Sean Skibbie, Small Business Contracting Supervisor

 Report to MnDOT Chief Counsel, Betsy Parker  Staff of 27 FTEs  3 Primary Sections ◦ Contract Compliance ◦ Small Business Contracting ◦ Business Development and Supportive Services  OCR administers programs but success requires partnership with the district/local authority offices

 DBE Participation Rate (DBE statewide goal, achieved per annual Unified Report) 2014 Goal: 10.3%Achieved: 9.8% 2013 Goal: 10.3%Achieved: 9.3% 2012 Goal: 8.7%Achieved: 6.6%  Workforce Participation Rate (minority and women measured as the last payroll in July on all MnDOT construction contracts) 2014: Total Workforce 3,488 Women 5.9% Minority 8.62% 2013: Total Workforce 3,722 Women 5.7% Minority 8.46%

Small Business Contracting Supervisor Sean Small Business Contracting Team Lead Elaine DBE Specialists Andrea Robinson (Districts 1, 2, 3, Elaine Ogilvie interim (Districts 6, 7, 8) Adrien Carretero (Districts Delores Perez (Metro) Targeted Group Business (TGB) and Veterans Programs Specialist Joyce Brown-Griffin Joyce also takes care of P/T contracts Small Business Contracting Assistant Megan Solberg DBE Administration Contact/routing of forms Rajan Nayar Send requests for goal-setting, contract clearance and final clearance to Specialist, Rajan Nayar and Supervisor.

Helping MnDOT  Contract Clearance—269 clearances issued for contract award  Final Clearance—182 final clearances (71 in 2013)  Goal Setting for DBE/TGB/Vet—set goals on 465 projects Ongoing responsibilities for Small Business Contracting Section:  DBE Certifications MN Unified Certification Program  Annual No Changes for DBE firms  DBE removals  Investigate complaints  Monitoring (desk and onsite)  Federal and state reporting

 Purpose: increase participation by socially and economically disadvantaged businesses in federally-funded highway and transit projects.  Woman- and minority-owned businesses presumed disadvantaged.  49 CFR, Part 26, governs the DBE program  Main objectives of the DBE program: 1. ensure DBEs can compete fairly; 2. ensure that only eligible firms participate as DBEs; and 3. assist DBE firms in competing outside the DBE program.

 Certify eligibility of DBE firms  Establish annual statewide DBE participation goal (10.3%)  Establish project-specific DBE participation goals  Report to US DOT, stakeholders  Administer funds to increase DBE participation

Minnesota –DBE Data - 12/22/2014 Source: MN MAP 21 report Race/Gender of DBE ownerTotal FirmsPercentage Minority Men % Minority Women % White Women % Total DBE firms % DBEs located in MN % 12 states have more out-of-state DBEs than in state DBEs MN is 1 among 34 states with predominant women certified DBEs Metro West Metro East Total District 1 District 2 District 3 District 4 District 6 District 7 District

CY 2013CY 2014* 201 Contracts cleared (race conscious goal) 112 Contracts cleared (race conscious goal) 33 Contracts race/gender neutral (no goal) 68 Contracts race/gender neutral (no goal) 9 Good faith efforts6 Good faith efforts 192 Met/exceeded the goal106 Met/exceeded the goal *Through October Source: 2014 Report on the Highway Construction Training & Disadvantaged Business Enterprise Program, Feb. 2015

Purpose: To develop programs, initiatives and tools that support the activities of the Contract Compliance and Small Business Contracting Units in order to advance program objectives that will achieve the Office Mission  Mentor-protégé (10 active arrangements)  Working Capital Loan Fund (27 projects in )  1/1 estimating and bidding assistance (16 DBEs in )  Business development classes (541 attendances in )  5 On-the-Job Training (OJT) Supportive Services Programs that assist women and minorities to gain entry in the Highway Heavy Construction Trades

Small business contracting procedures

 Apparent Low Bidder (ALB) has 7 calendar days to submit required documents to OCR  ALB must commit to DBE goal or demonstrate Good Faith Efforts “The bidder must show that it took all necessary and reasonable steps to achieve a DBE goal or other requirements of 49 C.F.R. Part 26 which, by their scope, intensity, and appropriateness to the objective, could reasonably be expected to obtain sufficient DBE participation.” (49 C.F.R. §26.53)  OCR specialist reviews Exhibit A(s) and bidders list to confirm goal will be met; prepares green sheet, prime contractor clearance letter, and resident engineer memo for signature.

 Subcontract amounts (prime enters into CRL)  Contractor payment (prime and subs enter into CRL; OCR follows up with prime if any issues)  Exhibit A (Section E completed by project engineer when DBE’s work 1/3 to1/2 complete; typically OCR follows up with OM if no Section E; if OCR sees issue on Exhibit A, then follows up with project engineer or prime)  Final Payment Affidavit (prime enters into CRL; OM requests final clearance from OCR; if FPA not signed, OCR contacts prime and/or OM)  On-site review (when DBE present!) by OCR staff coordinated with project engineer  Construction inspectors need copy of subcontracts so know when DBEs expected to be on site and what DBEs are supposed to perform!  Notify OCR immediately if see discrepancies!  If prime wants to terminate or substitute; only OCR can determine the prime has good cause.

Office manager must request final clearance letter from OCR at end of project. Ensure Exhibit A forms have been completed and signed by the Project Engineer prior to submitting to OCR. Contractor Payments and Total Payment Affidavit are mandatory and must be obtained, reviewed and approved in CRL before a final clearance letter can be issued by OCR. Office Manager (i) ensures sub contractor payments are entered in CRL and (ii) approves contractor submitted payrolls. Otherwise, OCR cannot ensure compliance, report to State and Federal Government and perform the other duties.

 TGB: bid preference for TGB bidding as prime  Participation goals set by OCR for individual projects.  Definition of eligibility and determination of eligibility set by MN Dept. of Admin. 2013: 93 projects had TGB goal. 2014: 118 projects had TGB goal.

Contract Compliance Unit: Contract Compliance Supervisor Maria M. Conley, JD Contract Compliance Specialists Addi Batica (Districts 1, 2, East Metro) Bart Martinez (Districts 3, 4, West Metro) Statewide Program Support Specialist Lars Harrisville Administrative Assistant Christian Guerrero Forms

 OJT program addresses historical under-representation of women, minorities and disadvantaged individuals in highway construction skilled crafts  FHWA regulations in 23 CFR, Part 230  OCR sets number of trainees assigned to specific projects  FHWA projects estimated $1 m. or more and 100+ work days  10 factors considered e.g. availability of minorities and women, type of work, ratio journeymen to trainee  If a contractor does not attain the contract-specific trainee goal for the project, the contractor could be subject to monetary penalties

MnDOT’s Annual OJT Goals GoalAchievement Majority of positions are general laborer (73/126). Priority is increase more skilled trades, increase more female (50/126) Take a look at handout!

  Monitor, report contractor compliance with workforce and OJT goals  Conduct annual EEO/AA compliance reviews and site visits, in coordination with project engineer (annual compliance reviews required by FHWA 80% of PODIs, others at OCR discretion)  Implement corrective action plans (almost every contractor reviewed in 2014 had voluntary corrective action plan--failure to document EEO requirements in subcontracts)  Set OJT goals on projects, typically set within 24 hours of receiving request from pre-letting

 Review and approve OJT training plans submitted by prime within 5 days of letting/notification of ALB  Approve selection of OJT participants proposed by prime  Oversee financial OJT reimbursement submitted by prime to OCR and to project engineer (payment should not be approved by district office until OCR has made its determination)  Investigate complaints related to harassment and discrimination  Train MnDOT personnel and contractors on EEO/AA related issues—what issues require our attention?  Ensure TERO requirements are adhered to by contractors for projects taking place on or near tribal nations

Notify OCR of pre-construction meeting/notice and notes so we can explain EEO/workforce expectations EEO 13’s for non-CRL projects - Receive, review, and forward to OCR Forms account Notify OCR of difficulty in receiving EEO 13’s or CRL payrolls Relay complaints to OCR immediately about, or observations of, racial or sexual discrimination or harassment occurring on projects Convey expectations to inspectors!

 Fill vacancies  Train staff  CRL! (to meet OCR needs)  Update procedures/docs (e.g. DBE and EEO state special provisions)  Conduct Annual Compliance Reviews (ACRs)  SBC unit: goal settings, contract clearance, final clearance, ACRs, DBE applications  CCS unit: goal settings, approve OJT trainees, attend preconstruction meetings, review workforce plans, ACRs, complaints/investigations  w/Small Business Development: Achieve workforce participation and DBE goals, certify more DBEs, more minority DBEs, more contracts awarded to DBEs, more women and minorities in more skilled trades