2020 Disadvantaged Business Enterprise (DBE) Evaluation Report 2020 Disadvantaged Business...

download 2020 Disadvantaged Business Enterprise (DBE) Evaluation Report 2020 Disadvantaged Business Enterprise

of 13

  • date post

    06-Oct-2020
  • Category

    Documents

  • view

    2
  • download

    0

Embed Size (px)

Transcript of 2020 Disadvantaged Business Enterprise (DBE) Evaluation Report 2020 Disadvantaged Business...

  • 2020 Disadvantaged Business Enterprise (DBE) Evaluation Report

    Process Review #20-01

    May 2020

    Prepared By: Original Signature 05/08/2020

    Kitae Nam, Policy Liaison Office of Guidance and Oversight

    Date

    Approved By: Original Signature 05/08/2020

    Felicia Haslem, Acting Office Chief Office of Guidance and Oversight

    Date

    Empowering Our Partners To Be Successful

  • 2020 DBE Evaluation Report

    Table of Contents 03 EXECUTIVE SUMMARY

    06 KEY FINDINGS

    06 Nondiscrimination Statements & Contract Assurance 06 DBE Liaison Officer (DBELO) 06 Prompt Progress Payment 07 Prompt Payment of Withheld Funds to Subcontractors 07 Monitoring of Prime Contractor Performance

    (Termination/Substitution) 08 Monitoring of Prime Contractor Performance (Legal

    Remedy) 08 Commitment compared with Utilization 10 DBE Goal Setting 10 General GFE Procedures 11 Reconsideration Hearing Procedures

    12 CONCLUSIONS

  • 2020 DBE Evaluation Report

    District Agency

    Nondiscrimination

    & Contract

    Assurance

    DBELO

    Prompt

    Payment

    (Progress)

    Prompt

    Payment

    (Retainage)

    Performance

    Monitoring

    (Termination)

    Performance

    Mornitoring

    (Remedy)

    Commitment

    vs. Utilization

    DBE

    Goal

    Setting

    General GFE

    Procedures

    GFE Prime

    Contractor

    Requirements

    Hearing

    Procedures

    1 Lake County O O A&E X X X X X X O X

    3 Butte County O O O X X X X X X O X

    3 City of Elk Grove O O X CON O O X X X X O

    3 City of Rancho Cordova O O A&E X X X X X X O X

    3 El Dorado County O O A&E X X CON O O O O O

    3 Town of Truckee O O X X O X X O O O X

    4 County of Santa Clara O O CON CON X X O O O O O

    4 City of Palo Alto O O A&E X CON CON X X X O X

    5 Transportation Agency of

    Monterey County O O X X X X X X X X X

    7 City of Long Beach X O X X X X X X X O X

    7 City of Los Angeles X O X X O O N.A. X X O X

    7 Los Angeles County X O X CON X X N.A. O X O X

    8 City of Moreno Valley X O X X X X X X X X X

    9 City of Ridgecrest CON O X CON O O X O O O X

    11 City of San Diego O O CON CON O X X X X X O

    11 Imperial County O O CON CON X O O O O O O

    11 San Diego County O O CON CON O O X X O O O

    11 SANDAG O O O O O N.A. O O O O O

    12 City of Westminster CON O CON CON X X O X O O X

    Compliance Rate (%) 68% 100% 11% 5% 37% 28% 29% 37% 42% 79% 37%

    EXECUTIVE SUMMARY

    Pursuant to the Stewardship and Oversight Agreement between Caltrans and the Federal Highway Administration (FHWA), the Division of Local Assistance (DLA) is required to ensure that agencies receiving federal funding comply with the Disadvantaged Business Enterprise (DBE) program requirements per Title 49 of the Code of Federal Regulations (CFR), Part 26 (49 CFR 26). The DBE program goal is to increase participation by small businesses and socially and economically disadvantaged individuals. As part of its efforts to exercise its stewardship and oversight responsibilities, the DLA has conducted a study regarding the DBE program, and this report summarizes the findings related to the agencies’ compliance with DBE requirements. To perform on-site assessment, a consultant, APEX Civil Engineering, was selected to evaluate local agencies’ DBE program implementation and any resultant good- faith efforts (GFE).

    For the study, 19 agencies (see Table 1) were selected by the DLA for on-site process reviews of the DBE program for compliance with 49 CFR 26, Chapter 9 of the Local Assistance Procedures Manual (LAPM), and Office Bulletin (OB) 14-06. Along with a list of the selected agencies, their compliance with all reviewed regulatory requirements is summarized in Table 1. The agencies were reviewed regarding administration of the DBE program, project goal setting, GFE effort methodology, and project goal attainment, as summarized in Table 2.

    Table 1. Agencies Selected for On-Site Review and Compliance N.A.: not available

    O: compliant X: non-compliant A&E: only professional services contract compliant CON: only construction contract compliant 3

  • nation & Contract Assu ranee

    DBELO

    0 ~

    I-" 0 'cf-

    Prompt Payment 1• ~ (Progress) ~

    Prompt Payment I■ ~ (Retainage) ~

    Performance Monitoring (Termination)

    Performance Monitoring (Remedy)

    Commitment vs. Utilization

    DBE Goal Setting

    General GFE Procedures

    GFE Prime Contractor Requ irements

    Reconsideration Hearing Procedures

    N 0 '#.

    w 0 '#.

    I

    I

    Compliance Rate (%) ~ 0 '#.

    I

    I

    I~ CD -, I» oa CD

    Ii

    u, 0 '#.

    0) 0 '#.

    ...... 0 '#.

    00 0 'cf-

    --.J \.0 ~

    \,0 0 '#.

    I-" 0 0 'cf-

    f-' 0 0 ~

    2020 D B

    E E

    valuation R eport

    EX EC

    U TIV

    E SU M

    M A

    RY

    Table 2. Policies and R equirem

    ents R eview

    ed

    P o

    licy N am

    e Statu

    to ry R

    e q

    u ire

    m e

    n ts

    C a

    ltran s G

    u id

    an ce

    s

    N o

    n d

    iscrim in

    atio n

    & C

    o n

    tract A ssu

    ran ce

    4 9

    C FR

    2 6

    .1 3

    (a) & (b

    ) LA

    P M

    9 .6

    , Exh . 1

    2 -G

    D B

    E Liaiso n

    O fficer (D

    B ELO

    ) 4

    9 C

    FR 2

    6 .2

    5

    LA P

    M 9

    .6 , Exh

    . 9 -B

    P ro

    m p

    t P ro

    gress P aym

    en t

    4 9

    C FR

    2 6

    .2 9

    (a), C B

    P C

    7 1

    0 8

    .5 , C

    C C

    3 3

    2 1

    LA P

    M 9

    .6 , Exh

    . 1 2

    -G

    P ro

    m p

    t P aym

    en t o

    f W ith

    h eld

    Fu n

    d s to

    Su b

    co n

    tracto rs

    4 9

    C FR

    2 6

    .2 9

    (b )

    LA P

    M 9

    .6 , Exh

    . 9 -B

    M o

    n ito

    rin g o

    f P rim

    e C o

    n tracto

    r P erfo

    rm an

    ce

    (term in

    tatio n

    /su b

    stitu tio

    n )

    4 9

    C FR

    2 6

    .5 3

    (f) Exh

    . 1 2

    -G

    M o

    n ito

    rin g o

    f P rim

    e C o

    n tracto

    r P erfo

    rm an

    ce (legal

    rem ed

    ies) 4

    9 C

    FR 2

    6 .3

    7 (a)

    Exh . 1

    2 -G

    C o

    m m

    itm en

    t co m

    p ared

    to U

    tilizatio n

    4 9

    C FR

    2 6

    .3 7

    (b ) &

    (c) LA

    P M

    9 .7

    , Exh . 1

    0 -0

    2 , 1

    5 -G

    , 1 7

    -F

    D B

    E G o

    al Settin g

    4 9

    C FR

    2 6

    .5 1

    (e) LA

    P M

    9 .7

    , Exh . 9

    -D

    G en

    eral G FE P

    ro ced

    u res

    4 9

    C FR

    2 6

    .5 3

    (a)(2 )

    LA P

    M 9

    .8 , Exh

    . 1 5

    -H

    G FE P

    rim e C

    o n

    tracto r R

    eq u

    irem en

    ts 4

    9 C

    FR 2

    6 .5

    3 (b

    )(2 )

    LA P

    M 9

    .7 &

    9 .8

    , Exh . 1

    0 -0

    1 , 1

    0 -0

    2 , 1

    5 -G

    R eco

    n sid

    eratio n

    H earin

    g P ro

    ced u

    res 4

    9 C

    FR 2

    6 .5

    3 (d

    ) LA

    P M

    9 .8

    Figure 1. Rates of C om

    pliance w ith Statutory R

    equirem ents

    4

  • '' ''

    2020 DBE Evaluation Report

    EXECUTIVE SUMMARY

    Reviews of administrative documentation and contract documents suggested that agencies’ overall rate of compliance is markedly low, at 43%, with compliance rates of reviewed regulatory requirements ranging from 5% to 100%, as shown in Figure 1. Only three statutory requirements were found to exceed the average compliance rate, and compliance rates for most of the reviewed requirements, except for DBELO, were less than 80%. Also, this assessment revealed significant variance in rates of compliance among the agencies investigated, from 9% to 100%, for an overall average compliance rate of 43%. Other than SANDAG, all agencies’ compliance was below 80%. In addition, consultant contracts reviewed totaled $37,000,000 with $98,000 paid to DBE consultant firms.

    The following section discusses the assessment of each statutory requirement in detail.

    The review demonstrated an overall compliance rate of 43%

    5

  • 2020 DBE Evaluation Report2020 DBE Evaluation Report

    KEY FINDINGS

    Nondiscrimination & Contract Assurance Requireme