DBE Committee/ODOT - DODI Meeting

Monday, October 15, 2018, 2:00 p.m. (ODOT 3:00 p.m.)

OCA Conference Room

 

 

 

A G E N D A

 

 

Call to order – 2:13 p.m.

 

  • Approval of minutes from July 16, 2018 - Approved

     

  • NAICS Code gross receipts limits – From discussion last meeting – federal website has historical NAICS Code limits.Adjusted more frequently than we had realized.Limits as follows:

     

    Year/NAICS Code

    237310

    238120 – Steel

    238210 - Electrical

    2000

    $17.0 million

    $7.0 million

    $7.0 million

    2001

    $27.5

    $11.5

    $11.5

    2002

    $27.5

    $11.5

    $11.5

    2003

    $28.5

    $12.0

    $12.0

    2004

    $28.5

    $12.0

    $12.0

    2005

    $28.5

    $12.0

    $12.0

    2006

    $31.0

    $13.0

    $13.0

    2007

    $31.0

    $13.0

    $13.0

    2008

    $31.0

    $13.0

    $13.0

    2009

    $33.5

    $14.0

    $14.0

    2010

    $33.5

    $14.0

    $14.0

    2011

    $33.5

    $14.0

    $14.0

    2012

    $33.5

    $14.0

    $14.0

    2013

    $33.5

    $14.0

    $14.0

    2014

    $33.5

    $14.0

    $14.0

    2015

    $36.5

    $15.0

    $15.0

    2016

    $36.5

    $15.0

    $15.0

    2017

    $36.5

    $15.0

    $15.0

    2018

    $36.5

    $15.0

    $15.0

     

    Last three or four times that they have been raised, the steel and electrical have only been raised $500k to $1 MM.

     

  • Status of DBE Administrative Appeal Process changes
    • Six hour maximum
    • Panel members for hearing

      Has not yet been implemented.  Has been edited, reviewing internally.  Will send to us for review as well as FHWA.  Have not been any hearings lately due to panel members not showing up or other reasons.  Would like to have new process in place before having any more hearings.

       

  • Good Faith Efforts
    • Updated statistics – submitted/accepted
      • Contractors – 6 submitted, 4 approved.What’s been accepted is when a clear picture is documented as to what happened.Non-performances, pre-bid alternate participation.The 2 denials basically had nothing submitted, so decision was easy.Denials were at bid time, so projects were awarded to second bidder or rejected.

         

        If low bidder doesn’t meet, but others do, what has happened?  Must submit GFEs within the 5 days after bid opening.  They do look at 2nd and 3rd, but it’s not a common occurrence. 

         

        DBE Utilization at bid time (on website) may not be properly indicated if the same DBE was used for multiple purposes (usually trucking & materials).  It does appear at times that a low bidder is under the goal at bid time, but then meets the goal at award.  This is caught by Tom Yanka and corrected in between – would not be allowed by ODOT.

         

        Would like to have GFE information – range of contract value, type of project, reasons for GFE approval or denial.  ODOT is somewhat hesitant to do this because there are unique situations in every case. 

         

      • Consultants – 10 submitted, 1 approved
      • Price adjustment and incentive payments may put a project that is close to the goal under the goal with no opportunity to mitigate.ODOT has said that would be accepted as a good faith effort.
      • Since not very many GFE requests, why isn’t ODOT meeting goal?Disparity study counted certified DBEs, non-certified potential DBEs, pre-qualified and non-prequalified DBEs.Project goals are set based only on ready, willing and able, certified DBEs that normally work in that area and do the work types that are entailed in that project.Shortfall requires ODOT to analyze why they are not meeting goal.Goal is not to maximize the DBE participation, but to get it to where it would be absent the effects of discrimination.
      • Why prime contractors do not exceed goal when they actually have more participation in mind when submitting contract goal – Primes have less work to do if the work of the DBE is more than what they turned in on their DBE Utilization Plan.If the work of the DBE is less than what’s shown in the DBEUP, even if the prime meets the project goal, then there’s a lot of additional work for no benefit.ODOT still gets the non-race conscious DBE credit, there is really no down side to it.

 

ODOT may not be getting an accurate reflection of intended DBE participation at bid time due to this concern. 

 

  • Meeting with prime contractors/FHWA/ODOT
    • Summary of meeting – Initiated by prime contractors.FHWA involved in meeting.High level discussion of how to improve the program.Prime contractors were concerned that efforts to help DBEs were jeopardizing CUFs.OCA was not involved in this meeting since we represent primes and DBEs.FHWA, Lauren Purdy, Brad Jones, Lloyd MacAdam, Jack Marchbanks attended.Discussion seemed to be positive and DBEs would support the changes that were discussed.Another meeting has been set for the afternoon of the 2nd day of the Winter Conference.Pilot Program that FHWA has – ODOT would submit a change to the program that would need to be accepted by FHWA to improve program and would not need to go through the rule making process.Possible elimination of NAICS Codes and their limits, use either DBE limit or SBA limit – something appropriate for Heavy/Highway industry.More collaboration on changes to program, similar to spec committees.Discussion of change order processing (including Estimated Cost of Force Accounts) for all small contractors.There is a draft action plan.
    • DBE Committee participation – Chair Amy Hall would be a part of the group going forward, add Mary Fantozzi and Bernard Lewis since they are on the Board of Directors and part of this Committee.Need ODOT, FHWA, OCA, primes and DBEs to be part of the effort to ensure each perspective is represented.Desire to centralize these discussions, since Heavy/Highway Committee, DBE Committee, and this group would all be addressing the same issues.However, keep the group to a manageable size.
    • Input from DBE Committee – Try to get them on a schedule similar to construction specs.Need to schedule DBE Committee meetings rather than having them at the call of the Chair.Try to mirror schedule of Spec Committees.

       

  • CRL – Working with Janet Treadway and IT, will meet with InfoTech.Discuss issues with the program.Would like to meet with the OCA CRL group.Trying not to be dependent upon a system.Need to document that requirements are met.Prompt payment will be needed.

     

  • Have discussed spec committee processes with Clint Bishop and will be implemented.

     

  • Trucking – quotes from DBEs.Need to agree what a negotiated price.Initial idea was to get negotiated prices on every project, but that is impractical.Want to make sure trucking DBEs are comfortable with prices they are agreeing to.

 

  • Next meeting – TBD

 

Adjourn - 4:05 p.m.

 

 

 

Attendance:

 

Amy Hall                         Ebony Construction

Dan Moncrief                 McDaniel’s Construction

Andy Leffler                   Shelly & Sands

Bernard Lewis               B&G Construction                                        (conference call)

Toya Estes                     J&B Steel                                         (conference call)

Mary Fantozzi                JD Williamson Construction                                        (conference call)

Rachyl Smith                 FHWA

Rachel LeVee                FHWA

Deborah Green             ODOT

Tom Yanka                    ODOT

David Walker                 ODOT

Lauren Purdy                 ODOT                                        (conference call)

Danette Shuler              ODOT                                         (conference call)