DBE Committee/ODOT - DODI Meeting

Monday, July 16, 2018, 10:00 a.m.

OCA Conference Room

 

 

 

M I N U T E S

 

 

Call to order

 

  • Approval of minutes from April 16, 2018 - Approved

 

  • Counting of materials – liquid AC – Discussed hauling AC and gravel from terminal to an established plant.Many on the committee believe that it is impossible to tell what material went to the project it is counting toward for DBE credit.ODOT’s response is that it is permissible in the CFR.As long as the amount of material is less than what is needed for the project, it can count.If it is questionable, ODI will verify with Construction.
    • Drop shipping was discussed.As long as a DBE is identified as a regular dealer, and they physically take possession of the material on their property where it is regularly sold, the material can count for 60% of its cost.To count delivery, the DBE would have to have its own (or long term leased) equipment deliver the material to the project.
    • Providing materials – counting towards gross revenues – Committee asked ODOT if any consideration could be given to not counting as gross receipts where material is provided under MBE or EDGE programs.The material is provided by the DBE (although it is never taken possession of) and there is only a markup taken by the DBE.ODOT’s position is that the regulations are clear, and that all gross receipts must be counted.

       

  • Adjusting NAICS Code gross receipts limits – NAICS Codes are established by the Federal Office of Management and Budget, and the Small Business Administration establishes the limits of a company’s gross receipts.The limits for Specialty Trade Contractors (subsector 238) have not been adjusted for a long time (could be as long as 30 years) and this is impacting many DBEs since they have been classified in this area.Rachyl Smith will look into what other states are doing with regard to NAICS codes and let the committee know what she finds.Chris Engle suggested that, since the descriptors, which further break down NAICS Codes, are an ODOT creation, they are able to implement State specific standards and could possibly adjust the SBA NAICS Code size standards for inflation in the time period covered.ODOT’s Office of Construction Administration publishes an annual inflation factor, which is used to adjust prices for change orders.This factor could potentially be used in the adjustment of NAICS Code size standards.

     

  • DBE Administrative Appeal Process – Due to some DBE Administrative Appeal meetings that stretched out over a couple of days, ODOT had formulated and implemented an appeal process in September 2017 that limited the meetings to 90 minutes.Neither OCA nor the DBE Committee had provided input on the process before it was implemented.Chris Runyan and Chris Engle met with Lauren Purdy and Brad Jones regarding some suggestions for changing the process due to feedback received from some members who had been through an administrative appeal.ODOT has taken this feedback and is considering making some changes in the process, and will seek input from OCA and the DBE Committee prior to implementation.Hearings would be limited to six hours and the hearing panel may be changed (looking for suggestions as to who might be included in the pool of hearing officers).OCA and the DBE Committee would prefer not to have ODOT employees in this role.

     

  • The DBE Committee suggested that it would be beneficial to have a resource to ask questions and seek advice regarding DBE issues without fear of getting your company in jeopardy of being investigated.Several options discussed.

     

  • CRL Prompt Pay and Payroll – status – ODOT is looking at what can be done internally before changing completely over to a system such as B2GNow.Likely to switch to LCP Tracker for payroll and the certification modules and internal systems for reporting.

     

  • Determination of adequacy of Good Faith Efforts – There have been a total of 14 GFE submissions, 10 by consultants and 4 in construction.In construction, 2 have been accepted and 2 denied.

     

  • Next meeting – October 15, 2018 at 10:00 a.m.

 

Adjourn – 12:58 p.m.