Greater Orlando Aviation Authority Disadvantaged Business Enterprise Goal Fiscal Years 2014 to 2016 Orlando International & Executive Airports Office of Small Business Development July 8, 2013 06/18/13 1
Outline ✈ Background ✈ Administrative requirements ✈ Establishing the triennial goal ✈ Race-Neutral component ✈ Summary ✈ Questions 7/11/2013 2
Background ✈ The Final Rule became effective March 4, 1999. It was revised in 2005 and 2012. ✈ Ensure “level playing field” ✈ Replaced the former DBE regulation ✈ The Authority’s DBE Goal is neither a “Quota” nor a “Set Aside”. 7/11/2013 3
Administrative Requirements ✈ Federal Aviation Administration (FAA) requires all recipients of Airport Improvement (AIP) Funds for planning & development exceeding $250,000 to have a DBE Program. ✈ The guidance is promulgated in 49 Code of Federal Regulation (CFR) Part 26 7/11/2013 4
Administrative Requirements Why Does the Authority have a DBE Program? ✈ The Authority, as a recipient of FAA funding, in excess of $250,000, has submitted a DBE program conforming to 49 CFR Part 26 to the FAA. ✈ The initial program was approved by the FAA in February, 2001 and is reviewed and approved every three years. 7/11/2013 5
Establishing the Goal ✈ Most airports must now update and submit their overall DBE goal for three years ✈ Anticipate upcoming projects that are eligible for federal funding. ✈ Estimate portions of the overall goal that will be achieved through: ✈ Race Neutral and/or Race Conscious means. ✈ Airports must use a two-step process (methodology) to determine the goal: 7/11/2013 6
Establishing the Goal The steps are: Calculation of the base figure; and 1. 2. Adjustment of the base figure, if necessary 7/11/2013 7
Step 1 ✈ ESTABLISH THE BASE FIGURE ✈ Use the County Business Pattern (CBP) Data published by the U.S. Census Bureau or the Authority’s market area. ✈ Determine the number of all firms within the Orlando Metropolitan Statistical Area (MSA) including DBE & Non-DBE firms ✈ Determine the number of Ready, Willing and Able (RWA) DBEs within the MSA or market area. 7/11/2013 8
Step Two Capacity Adjustment of the Base Figure Fiscal Actual Year Goal Participation Over/(Under) 2009 20.0% 16.7% (3.3%) 2010 16.0% 18.3% 2.3% 2011 14.0% 13.5% (0.5%) 2012 14.0% 15.6% 1.6% Median Actual Participation = 16.2% 16.2% 0.6% Median Over/Under = 0.6% 7/11/2013 9
Establishing the Goal (Cont.) ✈ Inspection of the documents for 30 days from the date of notice published through a legal advertisement. ✈ Accept comments from the public within 45 days after the date of notice. ✈ Consultation with local businesses, chambers and community partners. ✈ Submission of the goal by August 1 to the Federal Aviation Administration. 7/11/2013 10
Establishing the Goal Using the Two Step Methodology Step 1 Establish the Base Figure: compare the number of Ready, Willing and Able (RWA) DBE vendors with all vendors in the Census County Business Pattern (CBP) RWA DBEs = 295 All firms = 1,944 Base Figure: (295/1,944) = 15.2% Step 2 Establish an Adjustment to the Base Figure: determine actual median DBE participation for the previous four years; Capacity Adjusted Goal is the average of the Base Figure + Actual Median Goal for the previous four years: Base Figure: 15.2% + Adjustment Figure 16.2% = 31.4%; divide by 2 to find average: 31.4%/2 = 15.7% Adjusted DBE Goal: 16% (15.7%, rounded) 7/11/2013 11
Race-Neutral Participation The Federal Regulations require that the Authority make every effort to achieve as much of the goal as possible through race-neutral means. Race-Neutral Means include: ✈ Notifying minority primes and subcontractors / vendors of contracting & subcontracting opportunities ✈ Make plans available to all through plan rooms or other means ✈ Conduct pre-bid/pre-proposal meetings ✈ Subdivide trade packages into smaller packages when it is economically feasible 7/11/2013 12
Examples of Race Neutral Participation ✈ DBE participation on a Prime Contract obtained through competitive procurement ✈ DBE participation on a contract that does not require a DBE goal ✈ DBE participation on a contract where the Prime does not consider the firm’s DBE status in making the award 7/11/2013 13
Summary ✈ The overall goal must provide participation by all certified DBEs and must not be group specific; ✈ Proposed overall goal for next three years is 16%; ✈ Race Neutral: 1% (Median over/under previous four years); and ✈ Race Conscious: 15% 7/11/2013 14
Questions Comments Small Business Development Disadvantaged Business Enterprise Goal Fiscal Years 2014 - 2016 Orlando International & Executive Airports Michelle Tatom, Director 5850-B Cargo Road Orlando, FL 32827 407-825-7171 407-825-7173 fax mtatom@goaa.org 7/11/2013 15
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