Preparing an Adequate Shortfall Analysis and Corrective Action Plan

Shortfall Analysis Purpose of DBE Shortfall Analysis When is a Shortfall Analysis Required Elements in Drafting Shortfall Analysis Elements in Drafting Corrective Action Plan Exceeding DBE Goal 2 49 C.F.R (c)

A recipient’s failure to meet its Triennial DBE Goal by the end of the fiscal year 3 What is a Shortfall?

To identify the reasons recipients failed to meet their DBE goal in a fiscal year Help identify means to increase DBE participation to achieve the DBE goal in the next fiscal year Ensure compliance with the DBE rule Increase DBE accountability on FTA funded projects and activities 4 49 C.F.R (c) Purpose of a DBE Shortfall Analysis

If at the end of the fiscal year, Awards and Commitments < Overall DBE Goal = Shortfall Analysis and Corrective Action Plan REQUIRED 5 When is a Shortfall Analysis Required? 49 C.F.R (c)

Did Your Agency Meet Its DBE Goal? 1.Determine the total Awards and Commitments made during the respective fiscal year using Cell 8A from June 1 st and December 1 st Semi-Annual Reports.

Did Your Agency Meet Its DBE Goal? 1.Determine the total Awards and Commitments made during the respective fiscal year using Cell 8A from June 1 st and December 1 st Semi-Annual Reports. June 1st Prime Contract Total Dollars (8A) + December 1st Prime Contract Total Dollars (8A) = FY Total Awards and Commitments

Did Your Agency Meet Its DBE Goal? 2.Determine the total DBE Awards and Commitments during the fiscal year by adding cells 8C and 9C from June 1 st and December 1 st Semi-Annual Reports.

Did Your Agency Meet Its DBE Goal? 2.Determine the total DBE Awards and Commitments during the fiscal year by adding cells 8C and 9C from June 1 st and December 1 st Semi-Annual Reports. June 1 st DBE Awards/Commitments + December 1 st DBE Awards and Commitment = FY Total DBE Awards/Commitments

Did Your Agency Meet Its DBE Goal? 3.FY Total DBE Awards/Commitments ÷ FY Total Awards and Commitments = FY DBE Participation $6,119,400 (FY Total DBE Awards and Commitments) ÷ $74,072,092 (FY Total Awards and Commitments) = 8.26% FY DBE Participation

June 1 st (8A) + December 1 st (8A) = Total Awards and Commitments Ex: June 1 st ($24,163,859) + December 1 st ($49,908,233) = $74,072,092 June 1 st (8C + 9C) + December 1 st (8C + 9C) = DBE Total Awards and Commitments Ex: June 1 st ($5,117,013) + December 1 st ($1,002,387) = $6,119,400 DBE Total Awards and Commitments ÷ Total Awards and Commitments = DBE Participation Ex: $6,119,400 ÷ $74,072,092 = or 8.26% DBE Participation 〱 Triennial DBE Goal = Shortfall Ex: 8.26% less than 10% Triennial DBE Goal = Shortfall Did Your Agency Meet Its DBE Goal?

Your FY is 10% Goal FY 2014: Achieved 15% DBE Participation = No Shortfall Submission Required FY 2015: Achieved 8.7% DBE Participation = Shortfall Submission Required and due on December 29, 2015 FY 2016: Achieved 5.9% DBE Participation = Shortfall Submission Required and due on December 29, What If…

Timeframe: December 29 of respective year (90 days after the end of the fiscal year) FTA Approves: In Compliance FTA May Require: Modifications to overall goal methodology  Changes to RC/RN projections  Additional RC or RN measures 13 Shortfall Requirements

Top 50 FTA recipients: – must perform a Shortfall Analysis, create a Corrective Action Plan, and submit these documents to FTA by December Shortfall Requirements

Non-Top 50 FTA recipients: – must perform a Shortfall Analysis, create a Corrective Action Plan, and maintain these documents in a file for production upon FTA’s request or during an oversight review. 15 Shortfall Requirements

Elements in Drafting a Shortfall Analysis: 16  Shortfall Percentage Overall Goal – Actual Achievement = Shortfall Percentage

Elements in Drafting a Shortfall Analysis: 17  Shortfall Percentage  Race-Conscious/Race-Neutral Breakdown Projected RC/RN Attainment Actual RC/RN Attainment

*FTA Funds *  Highlighting the RN/RC levels of DBE participation helps identify additional areas for improvement Race-Neutral/Race-Conscious Breakdown: Effective Practice

Elements in Drafting a Shortfall Analysis: 19  Shortfall Percentage  Race-Conscious/Race-Neutral Breakdown  Race-Neutral Measures Explain RN measures utilized to achieve DBE goal and whether they were effective

Race-Neutral Measures: Effective Practices Answer these questions :  Were trainings and other outreach efforts effective? If no, why not?  Did training materials address issues relevant to the DBE and small business community?  Did DBE participation improve since the implementation of the small business element?  Were contracts unbundled? If so, what kind of contracts?  Did the contract solicitation process hinder DBE participation? If so, what corrective measures were taken?  Was the Office of Diversity present during the contract solicitation process?

Failure to specify which measures were (un)successful Error: Race-Neutral Measures: Common Error

Elements in Drafting a Shortfall Analysis: 22  Shortfall Percentage  Race-Conscious/Race-Neutral Breakdown  Race-Neutral Measures  Projects undertaken during the FY List FTA funded projects

*FTA Funds * FTA Funded Projects within the FY: Effective Practice  Displaying FTA funded projects in a table makes it easier to determine which projects attributed to the shortfall

Elements in Drafting a Shortfall Analysis: 24  Shortfall Percentage  Race-Conscious/Race-Neutral Breakdown  Race-Neutral Measures  Projects undertaken during the FY  DBE participation on these projects List DBE attainment on each project

 Highlighting DBE commitment by project helps identify the levels of DBE participation per project DBE Participation on each FTA Project: Effective Practice *FTA Funds*

Failure to discuss the FTA projects undertaken during the fiscal year and the level of DBE participation achieved during these projects. Error: FTA Funded Projects and DBE Participation: Common Error

Elements in Drafting a Shortfall Analysis: 27  Shortfall Percentage  Race-Conscious/Race-Neutral Breakdown  Race-Neutral Measures  Projects undertaken during the FY  DBE participation on these projects  Reasons for the Shortfall Thoroughly explain

Specific Reasons for Shortfall: Effective Practice After collecting all relevant data, specifically state reasons for the shortfall Example:

Specific Reasons for Shortfall: Common Error Lack of Specificity! Explain why you did not meet your goal by evaluating:  Projects with low level of DBE participation  Whether these projects implemented RC or RN measures  What went wrong generally

30 49 C.F.R (c) Elements in Drafting a Corrective Action Plan:  Describe all Corrective Action Measures

31 49 C.F.R (c) Elements in Drafting a Corrective Action Plan:  Describe all Corrective Action Measures  Explain how proposed corrective actions will increase DBE Participation in upcoming fiscal year

32 49 C.F.R (c) Elements in Drafting a Corrective Action Plan:  Describe all Corrective Action Measures  Explain how proposed corrective actions will increase DBE Participation in upcoming fiscal year  Provide timeline for implementation

Specific Steps to Achieve Goal: Effective Practice Enhanced Race-Neutral Measures Explain what race-neutral measures can be improved or added to increase DBE participation Example:

Increase DBE participation Explain how this will be achieved Strengthen race-neutral measures Identify and implement effective race-neutral measures Implement a race-conscious component Use all available evidence to determine whether race-conscious measures should be implemented Specific Steps to Achieve Goal: How to Get Back on Track

Specific Steps to Achieve Goal: Effective Practice Include dates and topics for outreach sessions that span throughout the FY Example:

What to include in a Corrective Action Plan 36  Specific Steps to Achieve Goal in Upcoming Fiscal Year Increase DBE participation Strengthen race-neutral measures Implement a race-conscious component  Milestones for Implementing these Steps Timeline for implementation

Milestones: Effective Practice Include a detailed timeline for implementing all corrective actions Example:

38 49 C.F.R (f)(4) Quick Reminder! Exceeding DBE Goal  If you exceed the overall goal in two consecutive years through the use of contracts goals, you must reduce your use of contract goals proportionately in the following years.

39 49 C.F.R (f)(4)  If you exceed the overall goal in two consecutive years through the use of contracts goals, you must reduce your use of contract goals proportionately in the following years.  NOTE: Only if you exceed your goal through race conscious measures. Quick Reminder! Exceeding DBE Goal

Recipient is in non-compliance if ANY of the following occur:  Does not submit analysis and corrective actions to FTA  FTA disapproves the analysis or corrective actions  Does not fully implement corrective actions or FTA’s imposed conditions for acceptance 40 Avoid Non-compliance