FHWA Overall DBE Goal Methodology FFY 2018-2020 · Bureau and other econometric and social science...

95

Transcript of FHWA Overall DBE Goal Methodology FFY 2018-2020 · Bureau and other econometric and social science...

Page 1

Washington State Department of Transportations Federal Highway Administration Triennium Disadvantaged Business Enterprise Goal

Federal Fiscal Years 2018-2020 The Washington State Department of Transportation (WSDOT) submits this Disadvantaged Business Enterprise (DBE) goal methodology to the US Department of Transportations Federal Highway Administration (FHWA) for review and approval pursuant to 49 CFR sect 2645 to establish the triennium DBE goal for its federally-assisted highway contracts for Federal Fiscal Years (FFYs) 2018 through 2020 (hereinafter the triennium) WSDOT has established a triennium DBE goal of 190

To meet the requirements of sect 2645 WSDOT commissioned a Disparity Study from Colette Holt amp Associates (CHA) a nationally recognized law and consulting firm (Attachment A) The Study provides a statistical analysis of baseline DBE availability that can be used to establish the step 1 base figure estimate of DBE availability in WSDOTrsquos markets The Study further analyzed Census Bureau and other econometric and social science evidence to determine whether there are disparities between DBEs and non-DBEs in factors impacting entrepreneurial success on WSDOTrsquos contracts and subcontracts It also provided anecdotal data on DBEsrsquo experiences in seeking WSDOT prime contracts and associated subcontracts and whether firms owned by minorities or women have equal opportunities to compete The Studyrsquos results as relevant for goal setting are summarized below

Step One Base Figure

Definition of WSDOTrsquos contracting market The first element in estimating DBE availability was to determine empirically the relevant product and geographic markets for WSDOTrsquos FHWA-assisted contracts Based upon 5 years of WSDOTrsquos contract and subcontract expenditure data the Study identified the 6-digit North American Industry Classification System (NAICS) codes that comprise WSDOTrsquos product market for FHWA-funded contracts and the State of Washington was identified as the geographic market This approach incorporates USDOTrsquos advice to use the most detailed data available and to weight that data by the recipientrsquos expenditures See httposdbuwebdotgov It also separates firms by detailed function delineating for example general contractors from specialty trade firms that primarily act as subcontractors on WSDOT projects

Counting establishments in WSDOTrsquos relevant markets

The Study next examined the availability of DBEs in WSDOTrsquos relevant markets to perform on FHWA-assisted projects It used HooversDun amp Bradstreetrsquos Marketplace database an independent and established data source routinely relied upon by courts to identify the total number of Washington businesses in each 6-digit NAICS code weighted by that codersquos share of WSDOTrsquos product market It next identified the number of firms in each NAICS code owned by minorities and women based upon the information in Hoovers the Washington Unified Certification Program Directory and other regional listings As noted by USDOTrsquos guidance supplementing the DBE Directory with other information on minority- and women-owned firms may provide a more complete picture of the availability of firms to work on WSDOTrsquos contracts than reliance solely upon the number of WSDOT certified DBEs

Estimating baseline DBE availability

Applying the ldquocustom censusrdquo approach that has been repeatedly accepted by USDOT and the

Page 2

courts the Study estimated 190 as the base DBE availability figure for Step 1 Step Two Adjustment

Once the base figure has been calculated WSDOT must examine all of the evidence available in its jurisdiction to determine if an adjustment is necessary to the base figure to reflect the level of DBE participation expected absent the effects of discrimination Included among the types of evidence that must be considered are the current capacity of DBEs to perform work on WSDOTrsquos federally-assisted contracts as measured by the volume of work DBEs have performed in recent years and evidence from disparity studies conducted anywhere within WSDOTrsquos jurisdiction to the extent not already accounted for in the base figure If available WSDOT must also consider available evidence from related fields that affect the opportunities for DBEs to form grow and compete including statistical disparities in the ability of DBEs to obtain the financing bonding and insurance required to participate in the Program and data on employment self-employment education training and union apprenticeship programs to the extent relevant to the opportunities for DBEs to perform in the Program The regulations caution that any adjustment to the base figure to account for the continuing effects of past discrimination or the effects of an ongoing DBE program must be based on ldquodemonstrable evidence that is logically and directly related to the effect for which the adjustment is soughtrdquo sect2645(d)(3)

Past DBE utilization

WSDOT considered the current capacity of DBEs to perform work in Washington State as measured by the amount of work performed by certified DBEs on federal-aid projects over the past three years The median for WSDOTrsquos participation for FFY 2012 through FFY 2016 was 151

DBE Participation FFY 2012 152 DBE Participation FFY 2013 164 DBE Participation FFY 2014 141 DBE Participation FFY 2015 117 DBE Participation FFY 2016 151

The WSDOT median past DBE participation for FFY 2012 to 2016 is 151

Evidence from local disparity studies

No other local jurisdictions have conducted studies relevant to WSDOTrsquos contracting activities

Disparities affecting DBE opportunities

The Study explored the Census Bureau data and literature relevant to how discrimination in the Washington State highway industry market and throughout the wider economy affects the ability of minorities and women to fairly and fully engage in WSDOTrsquos prime contract and subcontract opportunities Data from the Census Bureaursquos Survey of Business Owners indicate very large disparities between Minority and Womenrsquos Business Enterprises (MWBE) firms and non-MWBE firms when examining the sales of all firms the sales of employer firms (firms that employ at least one worker) or the payroll of employer firms Data from the Census Bureaursquos American Community Survey (ACS) indicate that Blacks Hispanics Native Americans AsianPacific Islanders Others and White women were underutilized relative to White men Controlling for other factors relevant to business outcomes wages and business earnings were lower for these groups compared to White men Data from the ACS further indicate that non-Whites and White women are less likely to form businesses compared to similarly situated White men The literature on barriers to access to commercial credit and the development of human capital further reports that

Page 3

minorities continue to face constraints on their entrepreneurial success based on race These constraints negatively impact the ability of firms to form to grow and to succeed

While relevant and probative to whether the Department needs to continue to employ race- conscious measures to meet its DBE goal as well as the types of supportive services and other approaches to level the playing field WSDOT should consider the Study recognized that these results are difficult to quantify within the rigors of the strict scrutiny standards

Step 2 Adjustment

WSDOT considered the current capacity of DBE firms to perform work in this market area as measured by the amount of work performed by DBEs on FHWA-assisted projects over the past five years Following the USDOTrsquos Office of Small and Disadvantaged Business Utilizationrsquos Guidance on Tips for Goal-Setting in the Disadvantaged Business Enterprises (DBE) Program the Department combined the step 1 base figure with its median past DBE participation for an average of 171 (step 1 base figure of 190 + median past participation of 151 = 341 divide2 = 171 )

Projection of Race-Neutral vs Race-Conscious Goal Attainment

The regulations require that WSDOT must meet the maximum feasible portion of its overall goal by using race-neutral measures to facilitate DBE participation Ongoing and new initiatives seek to reduce discriminatory barriers increase capacity and level the playing field for the participation of DBEs and other small contractors They are also designed to assist WSDOT in meeting the increased goal for DBE participation by prime contractors and subcontractors

The Study found that DBEs face disparities in full and fair access to WSDOTrsquos FHWA-assisted contracts While not all disparity ratios in every industry code for each racial and ethnic group and White females groups were statistically significant large disparities remain overall Further DBE utilization on state-funded contracts for which no goals were set was extremely low Coupled with the additional anecdotal and economy-wide evidence the Study findings paint a clear picture of a mostly closed market These results strongly suggest that narrowly tailored contract goals remain necessary to ensure nondiscrimination

Past DBE race-neutral participation

To estimate the portions of the goal to be met through race-neutral and race-conscious measures WSDOT evaluated past race-neutral DBE participation as defined in 49 CFR sect 2651(a) WSDOTrsquos median percentage on federal-aid contracts through race-neutral means for FFY 2012- 2016 was 22

Federal Fiscal Year Total DBE

Participation Race-Neutral Participation

Race-Conscious Participation

2012 152 21 131 2013 164 23 141 2014 141 18 123 2015 117 22 96 2016 151 27 125

Therefore WSDOT projects that it will meet 22 of its overall goal through race-neutral measures

Page 4

and 168 of its overall goal through race-conscious contract goals WSDOT will monitor DBE participation throughout the year to adjust its use of contract goals to ensure that their use does not exceed the overall goal

Race-neutral measures to achieve DBE participation

WSDOT will meet the maximum feasible portion of its triennium goal through the race-neutral measures listed below WSDOT will maximize outreach efforts to the DBE contracting community and the use of DBE Support Services to increase the utilization and support of DBEs that participate on upcoming WSDOT projects

Support Services

WSDOT provides the following supportive services to DBEs

Immediate and long-term business management record keeping financial and accounting capabilities

Long-term development assistance to increase opportunities to participate in more varied and significant work and to achieve eventual self-sufficiency

Programs on contracting procedures and specific contract opportunities Assistance in obtaining bonding or financing Assistance to start-up firms particularly in fields with historically low DBE participation Identification of potential highway-related DBEs and prequalification assistance and In an effort to increase awareness of the DBE Supportive Services program WSDOT has

developed a DBE Supportive Services hotline (888) 259-9143 email address dbesswsdotwagov and website wwwwsdotwagovEqualOpportunityDBEhtm

Outreach and Networking

WSDOT engages in a number of outreach efforts to minority and womens organizations to enhance DBE opportunities in Department projects These efforts include but are not limited to

Sponsorship of the annual Regional Contracting Forum held in Seattle Washington in

partnership with state local and federal agencies Last years event attracted approximately 2000 individuals

WSDOT works with organizations such as the Northwest Minority Supplier Diversity Council Women in Construction USDOTs Small Business Transportation Resource Center the Womens Transportation Seminar Tabor 100 the National Association of Minority Contractors Association of General Contractors American Council of Engineering Companies the Office of Minority and Womens Business Enterprises and other groups to promote the DBE Program

WSDOT has established a Washington State DBE Work Group comprised of WSDOT divisions and local agencies among others that will advise WSDOT on DBE issues including but not limited to goal setting outreach training etc

Complaint Procedures

WSDOT has implemented procedures to process complaints of discrimination in the operation of the DBE Program and against contractors receiving WSDOT contracts This will ensure prompt uniform and fair responses to allegations of unlawful conduct so that DBEs non-DBEs and interested persons can have confidence in the integrity of WSDOTs operations

Page 5

WSDOT has implemented the Fraud Hotline to report fraud and abuse in the DBE Program The Fraud Hotline is available at (877) 856-3770 or fraudhotlinewsdotwagov

Prompt Payment

WSDOT continues to enforce its prompt payment provisions and processes It impresses upon its personnel and prime contractors the necessity and importance of meeting these requirements This is accomplished via WSDOT sponsored training for internal staff as well as external contractors which includes a portion on prompt payment

Emerging Contractor Support Initiatives

WSDOT recognizes the necessity of developing new and innovative race-neutral contractor support services and has begun implementing new programs and resources (eg Mentor Proteacutegeacute Program Minority Small Veteran and Womenrsquos Business Enterprise Program remodeled DBE Support Services Program etc) This process involved examining other states supportive services strategies as well as working with construction and minority and women business organizations It also includes soliciting input from the DBE Work Group and from construction and DBE organizations in this and other states

Counting race-neutral and race-conscious participation

Based on a 2012 Disparity Study WSDOT sought and received a waiver of the regulation that White females as a group are presumptively disadvantaged Under the terms of the waiver dollars paid to DBEs owned by such persons are not eligible for credit towards meeting DBE contract goals and WSDOT will count and report FHWA dollars to these firms as race-neutral participation

The 2017 Disparity Study found that White females do not enjoy a level playing field for USDOT- assisted contracts and recommended that firms owned by such persons should be returned to the status of goal credit eligibility WSDOT has sought a rescission of the waiver and awaits USDOTrsquos response Until such time as the waiver is rescinded WSDOT will count all participation by certified DBEs owned by White females as race-neutral participation

Public Participation

Consultation Per 49 CFR sect 2645 WSDOT employs a consultative process requesting input from organizations serving or representing DBEs minority-owned or women-owned businesses state or local offices of procurement federal state or local offices responsible for enforcing civil rights laws local labor offices and organizations etc WSDOT developed the proposed overall annual DBE goal and presents it to the DBE Work Group (individuals from various WSDOT divisions and offices and other state agencies) including

WSDOT Highways and Local Programs Division WSDOT Construction Office Washington State Attorney Generals Office WSDOT Ad amp Award Office WSDOT Public Transportation Division WSDOT Secretary of Transportation WSDOT Consulting Services Office WSDOT Aviation Division

Page 6

Washington State Ferries Washington State Office of Minority amp Womens Business Enterprises

Once the DBE Work Group reviewed and provided comments the overall DBE goal was revised accordingly

Upon DBE Work Group review the goal was then reviewed by the DBE Advisory Group comprised of minority women and trade organizations including but not limited to

Tabor 100 National Association of Minority Contractors Latino Civil Alliance American Council of Engineering Companies of Washington Laborers Local 440 Street Pavers Sewer Watermain and Tunnel Workers Washington Association of General Contractors Washington Asphalt Pavement Association Northwest Mountain Minority Supplier Diversity

Council Tribal Employment Rights Office Womens Transportation Seminar Washington Asphalt Pavement Association Women in Highway Construction

WSDOT followed the public participation requirements outlined in 49 CFR Part 26 This public participation process also included the publication of a press release on October 30 2017 requesting public comment for 45 days This publication also notified interested parties of public meetings to gain and understanding of the overall DBE goal at the following locations

Spokane November 28 Vancouver November 29 Webinar December 5 North Seattle December 7 Pasco December 131

The comments provided by these groups were taken into consideration and no quantitative evidence relevant to the determination of availability or utilization was submitted to revise the overall DBE goal

Published Notice To satisfy the public consultation requirements of 49 CFR sect 2645(d)(2) WSDOT will provided a press release to all media outlets in Washington State and publish the proposed overall annual DBE goal for the triennium in the Seattle Daily Journal of Commerce Included in its press release and publication is WSDOTs request for public comment and inspection of the goal methodology for 45 days from the date of publication

1 The December 13 Public Meeting was added with a separate press release to ensure sufficient statewide notice regarding the Proposed Overall DBE Goal

Page 7

Summary Pursuant to the requirements of 49 CFR sect 2645(a)(2) WSDOT submits this proposed triennium DBE Goal to FHWA for review and approval WSDOT followed the requirements of 49 CFR sect2645 in completing this FHWA DBE goal along with the OSDBU Guidance This proposed DBE Goal of 190 is based upon the availability of ready willing and able DBEs as established by the Disparity Study WSDOT anticipates race-neutral participation of 22 and race-conscious participation of 168

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WSDOT proposes 19 DBE goal on FHA-funded projectsWSDOT is proposing a 19 percent overall DBE participation goal on Federal Highway Administration-funded projects for federal fiscal years 2018 through 2020 WSDOT will submit the proposal to FHWA early next year following a public comment period Once submitted to FHWA the goal will be effective through Sept 30 2020 (See info on public meetings below)

AGC is reviewing the proposal and considering its response AGC members are encouraged to send comments to AGC Chief Lobbyist Jerry VanderWood(mailtojvanderwoodagcwacom) 3603525000

WSDOT said the 19 goal is based upon the availability of ready willing and able DBEs as established by the WSDOT Disparity Study (See summary of the 2017 disparity study here (httpwwwwsdotwagovsitesdefaultfiles20160509WSDOTDisparityStudyPresentation2017pdf) see full study report here(httpwwwwsdotwagovsitesdefaultfiles20170911OEO-DisparityStudy-2017pdf))

In its report study authors Collete Holt and Associates concluded ldquoThese results provide the agency with the evidence necessary to narrowly tailor its DBE program for federal-aid contracts as required by 49 CFR Part 26 The statistical data and the anecdotal testimony provide a sufficient basis for the continued use of narrowly tailored remedial race- and gender-conscious measures to ensure full and fair access by all firms to WSDOT federally-funded prime contracting and associated subcontracting opportunitiesrdquo

WSDOT will host a series of public meetings to provide opportunities for individuals to comment in person

Spokane 2 ndash 4 pm Tuesday Nov 28 (WSDOT Eastern Region Headquarters 2714 N Mayfair St)

Vancouver 2 ndash 4 pm Wednesday Nov 29 (WSDOT Vancouver Headquarters 11018 NE 51st Circle)

Seattle 2 ndash 4 pm Thursday Dec 7 (WSDOT Northwest Region Headquarters 15700 Dayton Ave N Shoreline)

Those who are unable to attend one of the meetings can participate in a no-cost webinar from 230 ndash 430 pm on Tuesday Dec 5 Advance registration for the webinar is required Those interested in participating should email DisparityStudywsdotwagov (adminDisparityStudywsdotwagov)

Written comments can also be submitted by mail or email to Jackie Bayne Policy amp Reporting Manager Washington State Department of Transportation Office of Equal Opportunity PO Box 47314 Olympia WA 98504-7314 or to DisparityStudywsdotwagov (adminDisparityStudywsdotwagov20)

WSDOT will consider all written comments received through Friday Dec 15 2017

Documents detailing the methodology used for determining the FHWA DBE goals are available at wwwwsdotwagovequalopportunity(httpwwwwsdotwagovequalopportunity) or in person at the Transportation Building 310 Maple Park Ave SE in Olympia

Page 1 of 1WSDOT proposes 19 DBE goal on FHA-funded projects - AGC of Washington

1112018httpwwwagcwacompostswsdot-proposes-19-dbe-goal-on-fha-funded-projects

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October 31 2017

WSDOT proposes new DBE goalsBy JOURNAL STAFF

OLYMPIA mdash The Washington State Department of Transportation is proposing a 19 percent overall DBE participation goal on Federal Highway Administration-funded projects for federal fiscal years 2018 through 2020

WSDOT plans to submit the goals early next year and is seeking comments through Dec 15

To read this story in full or purchase a login subscription

HOME MyDJC BUSINESS CONSTRUCTION REAL ESTATE ARCHITECTURE amp ENGINEERING ENVIRONMENT TECH WEEKEND FEATURES SEATTLESCAPE

Page 1 of 2Seattle DJCcom local business news and data - Construction - WSDOT proposes new D

1112018httpwwwdjccomnewsco12105680html

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WSDOT seeks comments on proposed DBE contracting goal for highway projects - Seattle MtgWSDOT seeks comments on proposed DBE contracting goal for highway projects

Comments accepted through Dec 15

OLYMPIA ndash Contractors trade and labor organizations small and disadvantaged businesses and all others who may be interested in working with the Washington State Department of Transportation are invited to comment on the agencyrsquos proposed Disadvantaged Business Enterprise goal for Federal Highway Administration contracts

DBE goals for transportation projects that receive federal funds represent a percentage of the value of work in which minority- and women-owned businesses should participate WSDOT is proposing a 19 percent overall DBE participation goal on Federal Highway Administration-funded projects for federal fiscal years 2018 through 2020

Once submitted to FHWA early next year the goal will be effective through Sept 30 2020

The purpose of the DBE program is to create a level playing field for firms owned and operated by disadvantaged individuals wanting to participate in federally assisted highway transit and aviation programs

Connecting with communities WSDOT will host a series of public meetings to provide opportunities for individuals to comment in person

Spokane meeting was held Nov 28

Vancouver meeting was held Nov 29

Seattle

2 ndash 4 pm Thursday Dec 7WSDOT Northwest Region Headquarters15700 Dayton Ave N Shoreline

Page 1 of 3WSDOT seeks comments on proposed DBE contracting goal for highway projects - Seattl

1112018httpwwwomwbewagovabouteventswsdot-seeks-comments-proposed-dbe-contracting

Date Thursday December 7 2017 - 200pm to 400pm

Other ways to provide comment Those who are unable to attend one of the meetings can participate in a no-cost webinar from 230 ndash 430 pm Tuesday Dec 5 Registration for the webinar is required Those interested in participating should email DisparityStudywsdotwagov (mailtoDisparityStudywsdotwagov)

Written comments can also be submitted by mail or email Jackie Bayne Policy amp Reporting Manager Washington State Department of Transportation Office of Equal Opportunity PO Box 47314 Olympia WA 98504-7314 DisparityStudywsdotwagov(mailtoDisparityStudywsdotwagov)

Documents detailing the methodology used for determining the FHWA DBE goals are available for review at all WSDOT region headquarters offices and at the Transportation Building 310 Maple Park Ave SE Olympia They are also available online at wwwwsdotwagovequalopportunity (httpwwwwsdotwagovequalopportunity)

WSDOT will consider all written comments received through Friday Dec 15 2017

WSDOT keeps people businesses and the economy moving by operating and improving the states transportation systems To learn more about what were doing go to wwwwsdotwagovnews (httpwwwwsdotwagovnews) for pictures videos news and blogs Real time traffic information is available at wwwwsdotcomtraffic(httpwwwwsdotcomtraffic) or by dialing 511

Americans with Disabilities Act (ADA) Information Accommodation requests for people with disabilities can be made by contacting the WSDOT DiversityADA Affairs team at wsdotadawsdotwagov (mailtowsdotadawsdotwagov) or by calling toll-free 855-362-4ADA (4232) Persons who are deaf or hard of hearing may make a request by calling the Washington State Relay at 711

Title VI Statement to Public It is WSDOTrsquos policy to assure that no person shall on the grounds of race color national origin or sex as provided by Title VI of the Civil Rights Act of 1964 be excluded from participation in be denied the benefits of or be otherwise discriminated against under any of its federally funded programs and activities Any person who believes his or her Title VI protection has been violated may file a complaint with WSDOTrsquos Office of Equal Opportunity For additional information regarding Title VI complaintprocedures andor information regarding our non-discrimination obligations please contactOEOrsquos Title VI Coordinator at 360-705-7090

Page 2 of 3WSDOT seeks comments on proposed DBE contracting goal for highway projects - Seattl

1112018httpwwwomwbewagovabouteventswsdot-seeks-comments-proposed-dbe-contracting

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89lt=gtABCDgtEF39=GHIJK1L0M1JLNO1L040K420PJLJLQ0K5R015JKNON70220K445N04S0K10Q4P6N5KNNN0K4022J1TLNUTJ70VP5K1LN145KUJLW5KQU51T1TX0NT5KQ1JK101YZ0L17K1J[CL0KNZJL1015JKXYgtC]0L5KS5141JMJ77K1JK1T0QKMVNZLJZJN4Y5N04S0K10Q4_6N5KNNK1LZL5NY_]QJ02[JL4L02a5QTU0VG475K5N1L015JKMJK1L0M1NbY_QJ02N[JL1L0KNZJL1015JKZLJcM1N1T01LM5S[4L02[6K4NLZLNK10ZLMK10QJ[1TS026J[UJLW5KUT5MT75KJL51Vd0K4UJ7KdJUK4P6N5KNNNNTJ624Z0L15M5Z01bXYgtC5NZLJZJN5KQ0efZLMK1JSL022Y_Z0L15M5Z015JKQJ02JK4L02a5QTU0VG475K5N1L015JKd[6K44ZLJcM1N[JL[4L02[5NM02V0LNghei1TLJ6QTghghbgtKMN6P751141JaXG0L2VKj1V0LO1TQJ02U522P[[M15S1TLJ6QTZ1bkhOghghbCTZ6LZJNJ[1TY_ZLJQL075N1JML0102S2Z20V5KQ[524[JL[5L7NJUK40K4JZL014PV45N04S0K10Q45K45S54602NU0K15KQ1JZ0L15M5Z015K[4L022V0NN5N14T5QTU0VO1L0KN510K40S5015JKZLJQL07NbXYgtCU522TJN10NL5NJ[Z6P25M715KQN1JZLJS54JZZJL16K515N[JL5K45S54602N1JMJ77K15KZLNJKlZJW0KOgHmZb7bJKC6NbOAJSbgi01XYgtC0N1LKQ5JKa04n60L1LNHgoemA30V[05L1bOZJW0Kplt0KMJ6SLOgHmZb7bX4NbOAJSbgf01XYgtClt0KMJ6SLa04n60L1LNHeeheiAqeN1I5LM2Olt0KMJ6SLp0112OgHmZb7bCT6LNbOYMbo01XYgtCAJL1TUN1Q5JKa04n60L1LNHeqohhY0V1JKGSbAOTJL25Kbrstuvwxyz|v|~u|usCTJNUTJ0L6K0P21J011K4JKJ[1T715KQNM0KZ0L15M5Z015K0KJdMJN1UP5K0L[LJ7glkhHmlkhZb7bC6N40VOYMbqbQ5N1L015JK[JL1TUP5K0L5NLn65L4bCTJN5K1LN145KZ0L15M5Z015KQNTJ6247052Y5NZ0L51V164VUN4J1bU0bQJSbXL511KMJ77K1NM0K02NJPN6P75114PV7052JL7052l0MW5_0VKO9J25MVZJL15KQ30K0QLOX0NT5KQ1JK101YZ0L17K1J[CL0KNZJL1015JKOgt[[5MJ[n602gtZZJL16K51VO9bgtb_JjmokemOgt2V7Z50OXGfiqhmdokemJL705241JY5NZ0L51V164VUN4J1bU0bQJSbYJM67K1N410525KQ1T71TJ4J2JQV6N4[JL41L75K5KQ1TaXGY_QJ02N0L0S0520P2[JLLS5U01022XYgtCLQ5JKT04n60L1LNJ[[5MN0K4011TCL0KNZJL1015JK_65245KQOkeh30Z290LWGSbOgt2V7Z50bCTV0L02NJ0S0520P2JK25K01UUUbUN4J1bU0bQJSn602JZZJL16K51VbXYgtCU522MJKN54L022UL511KMJ77K1NLM5S41TLJ6QTL540VOYMbeqOgheob iexclcentpound currenGPJ611TG61TJL G4SL15N7K1N

13

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AringEgraveAacuteEacuteAringcentAEligEcircEumlAcircCcedilIgraveEumlAacuteAacuteAgravecentfrac14frac12IacuteAacuteAgravefrac34AacuteIcircCcediliquestAEligiexclIumlAcircAacuteEumlETHEgraveNtildeOgraveOgraveEcircAacuteAEligIacuteiquestAEligfrac14AacuteAacuteyenAacuteiquestAEligCcedilAumliquestiquestAringiquestAacuteAEligAacuteiquestAEligAringAcircAacuteAtildeAringAtildeEcircAcircCcedilETHAtildeEcircAringiquestiquestAEligCcedilAtildeOacutefrac34Aacutefrac34CcedilAumliquestAEligCcedilAacute EacuteEacuteEacuteOcircOtildeEgraveOumlOcircOumlETHtimesIgravefrac12Agravefrac34AtildeiquestAEligfrac34iquestAtildeAgrave AringIgraveAacuteEgraveAringiquestEcircEumlAcircCcedilEgravefrac12CcediliquestAacute AacuteAgravefrac34AtildeiquestAEligEumliquestiquestAacutefrac34frac34frac34ETHCcedilAacuteAringAacuteiquestAEligCcedilAumlAringOslashCcediliquestAacuteOslashIgraveNtildeNtildeIgraveOgraveETHUgraveOgraveOgravefrac12AgraveAcirc AacuteAgraveCcedilAringiquestAacuteAumlAacuteEcirciquestAEligCcedil iquest 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iquestAumlcentAgraveiquestAEligCcedilAacuteAEligfrac14AacuteAacuteAacuteAringAEligAacute frac12AEligAacuteAacuteiquestAElig iquestAuml IumlAcircAacuteAcircAEligiquestAacuteEcircaumlRSaringPREcircAringiquestOWaeligccedilegraveeacuteNRecircSaringPRAringiquestaacute)LcopyXJeumldeg1ordf-raquodegraquolaquoreg

13

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httpwwwchronlinecomnewswsdot-seeks-public-comment-on-disadvantaged-business-enterprisearticle_f5c753ea-be61-11e7-966c-972f6769d8a6html

WSDOT Seeks Public Comment on Disadvantaged Business Enterprise By The Chronicle Oct 31 2017

The Washington State Department of Transportation will be accepting public comments about the departmentrsquos proposed Disadvantaged Business Enterprise goal for federal contracts

The goal is for transportation projects receiving Federal Highway Administration funds to have 19 percent of the value of work done by minority or women-owned businesses during the 2018 through 2020 fiscal years

ldquoThe purpose of the DBE program is to create a level playing field for firms owned and operated by disadvantaged individuals wanting to participate in federally assisted highway transit and aviation programsrdquo a press release from WSDOT said

A series of public meetings will be held to discuss the goal in Spokane Vancouver and Seattle

For those who are unable to attend the in person meetings a webinar will be hosted from 230 to 430 pm Thursday Dec 5 The webinar is free but registration is required To register email DisparityStudywsdotwagov

Page 1 of 2WSDOT Seeks Public Comment on Disadvantaged Business Enterprise | News | chronlin

1112018httpwwwchronlinecomnewswsdot-seeks-public-comment-on-disadvantaged-business-

Written comments can also be submitted by mail or email to Jackie Bayne policy and reporting manager for the department of transportation at Washington State Department of Transportation Office of Equal Opportunity PO Box 47314 Olympia 98504 or by email at disparitystudywsdotwagov Comments will be considered through Dec 17 2017

More information about the goal is available at all regional offices or at the main office in Olympia located at the Transportation Building 310 Maple Park Ave SE Olympia More information can also be found online at wsdotwagovequalopportunity

Page 2 of 2WSDOT Seeks Public Comment on Disadvantaged Business Enterprise | News | chronlin

1112018httpwwwchronlinecomnewswsdot-seeks-public-comment-on-disadvantaged-business-

larr Halfway there SR 8 fish barrier removal reaches milestone New SR 26 traffic cameras available rarr

WSDOT seeks comments on proposed DBE contracting goal for highway projects

December 1 2017 | No Comments

WSDOT is seeking comments on proposed participation goals for Disadvantaged Business Enterprises on upcoming Federal Highway Administration contracts a Yakima meeting has also been added to the schedule Source WSDOT Permalink WSDOT seeks comments on proposed DBE contracting goal for highway projects

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Page 1 of 3WSDOT seeks comments on proposed DBE contracting goal for highway projects | Tukw

1112018httptukwilatowingcom20171201wsdot-seeks-comments-on-proposed-dbe-contracting

From Liz EvansTo Bayne JackieSubject AGC Comments on Proposed 10 GoadDate Tuesday December 12 2017 50314 PMAttachments WSDOT Proposed Goal - AGC Comments FINALdocx

Hi there Jackie Attached are AGCrsquos comments on WSDOTs proposed 19 goal We will also be mailing you a copy Thanks for the opportunity to comment and we hope you find it helpful Regards Liz Liz Evans CAE Northern District ManagerAGC OF WASHINGTONTel 3602238757 | wwwagcwacom JOIN US for the 2018 AGC of Washington Annual Convention amp Technology Expo Jan 26

CUsersmwillmsPicturesInland AGCLogo_RGB_Half_5in

December 12 2017

Page 5

December 12 2017

VIA EMAIL amp US MAIL

Ms Jackie Bayne Policy amp Reporting Manager

Washington State Dept of Transportation

210 Maple Park Ave SE

PO Box 47314

Olympia WA 98504

RE WSDOT Proposed FHWA Triennium Disadvantaged Business Enterprise Goal

Dear Ms Bayne

This letter summarizes the views of the Associated General Contractors of Washington and Inland Northwest Associated General Contractorsrsquo (hereafter referred to collectively as AGC) regarding the Washington State Department of Transportationrsquos (WSDOT) recently proposed FHWA Triennium Disadvantaged Business Enterprise (DBE) Goal (the ldquoProposed Goalrdquo) AGC shares WSDOTrsquos commitment to continue the promotion of DBE firms but AGC is concerned the Proposed Goal which is a significant increase from the previous goal and actual utilization may have unintended consequences and could impose significant burdens on both prime contractors and DBE contractors alike AGC requests WSDOT reconsider its Proposed Goal and adjust the Proposed Goal to account for inevitable availability and capability issues including the lack of a formal retraction of the non-minority woman owned business waiver that makes up over half of the Proposed Goal Implementing an unachievable goal will only be to the detriment of the DBE program

1 AGCrsquos Membersrsquo Interest in WSDOTrsquos Proposed Goal

Together AGC of Washington and Inland Northwest AGC represent and serve the commercial industrial and highway construction industry These professional associations of commercial contractors are comprised of more than 900 members who have joined together to enhance the performance of their industry and build a better climate for construction operators many of which are small and closely held businesses

Like WSDOT AGC is firmly committed to the principals of equal opportunity and promoting efforts to ensure minority women and veteran owned businesses are properly represented In both its political advocacy and membership programs AGC has demonstrated its commitment to increasing the representation of disadvantaged groups in the construction industry as both workers and owners of firms For AGC this is both an issue of principles and a practical one The construction industry as a whole is facing a critical shortage of workers and it is imperative that the industry attract new participants Among AGCrsquos activities demonstrating this commitment are the following

middot AGC has an ongoing ldquoContractor Exchangerdquo program through which small minority- and women-owned subcontractors are offered one-on-one networking opportunities with established general contractors

middot The AGC Education Foundation provides financial support to construction-related programs in K-12 schools and conducts outreach specifically targeted at low income disadvantaged and female students

middot More than 2500 students most from inner-city schools participate in annual AGC-sponsored Construction Career Days in King Pierce and Spokane Counties

middot AGC supports the Pre-Apprenticeship Construction Training (PACT) program at Seattle Vocational Institute This program is focused on preparing underrepresented communities to be highly qualified applicants and successful apprentices in the construction trades

middot AGC is a sponsor of the Turner School a training course for minority- and women-business owners in the construction industry

middot AGC supports the National Association of Women in Construction (NAWIC) which provides professional development and other services to its members

middot AGC routinely supports legislative efforts aimed at supporting small businesses and encouraging small business participation

middot AGC recently formed a Diversity and Inclusion Committee comprised of both prime and DBE participants The purposed of the committee is to expand opportunities for DBE members and to help AGC consider diversity in decision-making Recently AGC approved a deeply discounted introductory dues structure for certified DBE members

middot AGC is a WSDOT partner on the new mentorproteacutegeacute program

AGCrsquos experience has been that the most effective approach is to help make emerging businesses successful through outreach training and public policies that will grow their capacitymdashnot by imposing mandates without clear evidence as to the mandates feasibility

2 WSDOTrsquos Proposed Goalrsquos Impacts To The Construction Industry

WSDOTrsquos Proposed Goal is 190 The Proposed Goal is based upon the recent Collete Holt amp Associates (CHA) Disparity Study released in 2017 With respect to availability the Disparity Study reports the following weighted availability for FHWA-Funded projects

Thus the 190 goal factors in Black Hispanic Asian Native American and White Women into its availability As indicated however this 19 goal raises a number of concerns

a WSDOTrsquos 19 Proposed Goal Represents a Significant Increase Without Concrete Evidence of Available And Capable DBE Firms

First WSDOTrsquos Proposal Goal of 190 represents a significant increase as compared to actual DBE participation (141 in 2014 117 in 2015 and 151 in 2016) as well as the last FHWA proposed goal of 116 for 2014-2018 See WSDOTrsquos Proposed Goal and Interim FHWA Overall DBE Goal Methodology FFY 2014-2018 The Proposed Goal is 74 more than the last goal which represents a 638 increase and a 52 increase over the average actual utilization for 2014-2016 While Contractors were exceeding the previous 116 goal this is primarily based on the fact that WSDOT previously requested a waiver to consider non-women-owned businesses and the waiver was not granted and effective until June 2017 (meaning that for 2014-2016 women were counted towards race-conscious goals and inevitably a higher overall percentage of DBE firms were utilized)

Contractors struggle to meet present DBE goals due to the relatively low availability of experienced and certified DBE firms By increasing the goal WSDOT is understandably trying to increase the participation of underrepresented firms Drastically increasing the goals (by over 5 of actual utilization) without concrete evidence that there is sufficient availability andor capability of such firms however will have the opposite effect Notably this lack of availability and capacity of DBE firms was discussed in detail in the Disparity Study For example the CHA Disparity Study notes a number of concerns of DBE firms while technically ldquoavailablerdquo with respect to the goal percentages are unable to meet the requirements necessary to fulfill the contract including purchasing the equipment necessary having available labor and ability to meet insurance and financing requirements Thus while there may be ldquoavailablerdquo firms there is not clear evidence (and if fact evidence to the contrary) that those available firms are capable and available to perform the majority of the FHWA-Funded contracts let by WSDOT

An additional example affecting DBE capability and availability that is not factored into the CHA Disparity Study or WSDOTrsquos Proposed GOAL is DBE ability to enter into Project Labor Agreements (ldquoPLAsrdquo) WSDOT has indicated their interest in pursuing a PLA AGC Members have raised concerns based on repeated experiences that many DBE firms due to the administrative and cost impacts refuse to enter into PLAs precluding those firms from performing certain work or increasing costs Again this lack of ability (or refusal) to perform should also be factored into WSDOTrsquos Proposed Goal which is not currently the case

b The Proposed Goal Does Not Account For The Current Non-Minority Woman Owned Business Waiver Still In Place

Second despite the significant increase WSDOT does not account for the current waiver of non-minority women owned businesses that remains in place As noted in WSDOTrsquos proposal comments WSDOT previously sought and received a waiver of the regulation that White females as a group are presumptively disadvantaged This waiver was heavily criticized by many including AGC and the results of the most recent CHA Disparity Study confirmed that White females are presumptively disadvantaged and do not enjoy a level playing field for USDOT-assisted contracts Therefore the CHA Disparity Study recommends that this group be returned to the status of goal credit eligibility WSDOT has sought a recession of the waiver but has not yet to our knowledge received a rescission of the waiver Nevertheless the 19 Proposed Goal still includes White women In fact of the 19 availability percentage White women represent 103 (over half) Accordingly for WSDOT to proceed with the 19 goal WSDOT must receive the rescission of the waiver for this goal to be even remotely possible to achieve If the rescission is not received the Proposed Goal must be adjusted

C The Proposed Goal Does Not Account For Availability Differences Across The State

Third the Proposed Goal does not account for availability difference across the state Eastern Washington contractors with an even scarcer pool of available and qualified DBE firms in the area as is the case now will be forced to subcontract to Western Washington firms paying transportation and per diem premiums for such work The CHA Disparity Study again provides numerous excerpts of anecdotal evidence demonstrating that the goals in Eastern Washington are too high A few of the contractor comments on the topic are as follows

When you apply those same goals to a different geographic region a different project site for a large firm to meet those goals is difficult because theres not necessarily the expertise in parts of the project that were submitting on

Theres very few DBEs over here [in Eastern Washington] Next year theres going to be even more work over here What are we going to do with all these goals We always meet the goals like I said youve got three four DBEs over here to do all the work and then they cant perform

There are just no [minority-owned] DBEs available in eastern Washington

See CHA Disparity Study at p 54 Again these are factors that should be taken into account in developing the Proposed Goal or at the very least its application WSDOTrsquos Proposed Goal however is silent as to this significant issue

When the lack of available firms with the capacity to perform significant DBE projects is coupled with the increased goals the price of WSDOT contracts will inevitably increase to the significant detriment of Washington taxpayers and the public entities Inevitably with a lack of available qualified firms the lack of competition will become evident and small qualifying contractorsrsquo prices will increase due to supply and demand principles as they become selected for projects and less able to take on additional work These increased DBE contract values will be passed on to the public agency and taxpayers which translates into fewer dollars available for the sorely needed and promised infrastructure upgrades In addition the instance of bid protests will inevitably increase potentially delaying projects and further diverting agency resources from badly needed infrastructure upgrades to resolving unnecessary disputes or rebidding the projects altogether

Finally faced with such drastic and potentially impossible requirements if adjustments are not made contractors may focus more on demonstrating good faith efforts Both a contractor who meets the required goal and a contractor that demonstrates good faith efforts are eligible for award It is likely that the contractor relying upon good faith effortsmdashwho will have a lower price than the other contractor who sacrificed price to actually meet the goalmdashwill be selected by the public agency This outcome will erode the total percentage participation of eligible firms and would clearly be inapposite of WSDOTrsquos intentions

3 Conclusion and Request

AGCrsquos members have asserted these and multiple other concerns Implementing an increased goal across the state and all contracts without clear evidence of available DBEs capable of performing the work and meeting the project requirements will have significant and far-reaching impacts on the construction industry many of which work against the aim of the Proposed Goal itself AGC requests WSDOT reconsider its Proposed Goal of 19 and make adjustments to account for the capability of DBE firms the lack of a rescission of the non-minority waiver and the lack of available DBE firms in parts of the state This Proposed Goal and its impacts on the construction industry will be irrevocable and will be to the detriment of taxpayers It is prudent to address these adjustments before implementing the Proposed Goal

Very truly yours

David DrsquoHondtCheryl Stewart Executive Vice President AGC of WashingtonExecutive Director Inland Northwest AGC

AGC of Washington bull 410 11th Avenue SE 203 Olympia WA 98501

Inland Northwest AGC bull 4935 E Trent Avenue Spokane WA 99212

image3jpeg

image1png

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image4png

image5jpeg

From Steve SmithTo WSDOT Disparity StudyCc Bayne JackieSubject 19 DBE RequirementDate Thursday December 14 2017 31947 PMAttachments DBE List and NAICS Listingpdf

Disparity Committee I recently read in The Daily Journal of Commerce that WSDOT plans to adopt a 19 DBEstandard for all FHWA funded projects early next year Our company S amp K Painting Inc is abridge painting company which is based in and works exclusively in Oregon and Washington Ihave been the owner of this firm since 1978 when it was first established My concerns aboutthe proposed 19 DBE requirement is as follows 1 There are very few opportunities for subcontract work on bridge repaint jobs These jobsare usually limited to cleaning and painting the bridge The only other facet of the project istraffic control which is almost always 3 or less of the project total cost The traffic controldoes provide a very good subcontracting opportunity 2 The NAISC code of 238320 includes bridge painting but also includes house painting wallcovering rust proofing etc which have almost no similarities to bridge painting When thiscode is used to determine the number of available firms (DBE or otherwise) that are availablefor bridge painting project this badly skews the numbers I would suggest that bridge paintingcontractors make up less than 5 of all firms in NAISC code 238320 3 If future WSDOT bridge painting projects require a 19 DBE participation A The qualified pool of DBE subcontractors available to submit pricing on any facetother than traffic control will be very limited I reviewed a list of 19 certified DBE firms listedunder painting at the WSDOT website and only recognized one firm from past projects B The number of prime bidders and competition will fall The state will incur highercosts due to this fact C Prime bidders will be forced to subcontract unqualified contractors just to be eligiblefor contract awards This will likely reduce the quality of the finished project Thank you for considering my concerns I may not have verbalized my thoughts as well as Iwould have liked but I have been in this business for almost 40 years and truly believe what Ihave said Sincerely

Steve Smith President

SampK Painting incP O BOx 390clacKamaS OregOn 97015Phone (503) 557-5544Fax (503) 557-5566Cell (503) 260-5280Steveskpaintingcom

From Lei WuTo Bayne JackieSubject comments on WSDOT proposed DBE goalDate Thursday December 14 2017 94925 PM

To Whom It May Concern

Below is my comments

The WSDOT recommended DBE Goal for FHWA contracts of 190 is a small andimportant increase that can further achieve equity in WSDOTFHWA contracting I am insupport of the 19 DBE Goal

I also want to express my appreciation for the thoroughness of the WSDOT Disparity studyand how the study disclosed the disparity in WSDOT contracts that do not have a DBE orWBE goal ndash further reinforcing that all women-owned firms and minority owned firms faceequity issues

I remain concerned with the methodology required by the Code of Federal Regulations andcase law because of the dependence on the availability of firms in the calculation Anunintended consequence of removing either gender or race from the goal is that many of thesefirms would go out of business the availability decreases and the formula then results in asmaller DBE goal

Thanks

Lei

Lei Wu PE AICP

Principal CSL Consulting

LeiWucsl-consultingnet

(425)562-6275

From Stephanie SimpkinsTo WSDOT Disparity StudySubject DBE Contracting goalsDate Wednesday November 29 2017 20259 PM

My name is Stephanie Simpkins and I own North Star Enterprises It is a large womanowned traffic control company located in Spokane Washington My mother founded thecompany in 1984 and I have worked in this family owned business most of my life Ipurchased the business from her in 2013 and have been sole owner since then My company thrived under the Disadvantaged Business Enterprise (DBE) Programimplemented by Washington Department of Transportation and administrated by United StatesDepartment of Transportation What started as a small business with one truck and a fewemployees has grown over the years to be one of the largest traffic control companies in thestate and employee countless people every construction season It has not been an easy roadover the years being a woman in the construction industry never is and it is hard to say wherewe would be now if it werenrsquot for the assistance of the DBE program As you know in June of 2017 majority women were removed from the DBE program basedon a disparity study conducted in 2012 On March 2014 Washington Department ofTransportation requested a wavier to remove majority women from the DBE program Thishas had an immediate and drastic impact on my business and all who work for me From themoment the waiver was approved and my company could no longer be used as a condition ofaward at bid time I began losing work Most recently the 2018 North Central Region ChipSeal which we have worked on for the last 10 years This contract provides work forapproximately 40 employees for the entire construction season I have already been told byseveral contractors that with such a high UDBE goal they wont even be able to consider mefor this project This loss along with several other smaller contracts to date are painting avery dismal future for my business With all of this turmoil surrounding the future of my business I find it frustrating to say theleast that WSDOT has chopped me off at the legs by not allowing my firm to count for theCOA but can use the little participation I may still contribute to help them reach their overallstate goal How is this fair If the contractors canrsquot utilize my business than neither shouldWSDOT As far as setting future state DBE contracting goals it looks as if the bar will beraised once again all while excluding the largest subset of useable DBErdquoS To me raising theoverall state goal at this time (which is already challenging to meet) with women DBErsquosexcluded from the program seems horribly ill timed

From Karen R BannishTo Bayne JackieSubject DBE GoalDate Tuesday December 5 2017 32549 PM

Hello Jackie ndash thank you for the webinar today concerning the proposed Overall DisadvantagedBusiness Enterprise Goal for the Federal Highway Administration I understanding the DisparityStudy much better now and checked the document you mentioned on the WSDOT website Pacific County is located in the Southwest corner of the State of Washington The tip of the LongBeach Peninsula would be 2 frac12 hours from Interstate 5 Our federal work primarily includes strictlyoverlay projects with 12 or fewer items of work included in the contract When bidding a project(our contracts are usually less than $500000) we sometimes received a single bid from the process Due to our proximity and the small cost for the work it is difficult to entice DBE participation Thereare simply no items of work that can be performed Having a mandatory DBE goal placed upon theproject in a rural area simply to meet the disparity guidelines will only increase the cost of theproject We feel the goals should be set in balance with the cost of the project and the items of work and notsimply directed to meet the overall goal

Karen BannishSenior Engineering TechnicianPacific County Department of Public Works211 North Commercial StreetRaymond WA 98577(360) 875-9368

From Dawn EgbertTo Bayne JackieSubject DBE Program Disparity StudyDate Tuesday December 5 2017 23825 PM

Hi JackieThank you for the great information on the call today You talked about the small works rosterbriefly We had a conversation in our office today about small contractors who are signed up on thePort of Vancouverrsquos small works roster Our team has had opportunity to talk to some of thecompanies on our roster who are women owned or minority owned businesses but they arenrsquotsigned up as a DBE firm When asked about that theyrsquove mentioned that they donrsquot want to fill outthe additional paperwork required to obtain the certification as a DBE As for the DBE goal at 19 it doesnrsquot seem to present an issue for the majority of our projects ndashespecially those where we would apply FHWA funds if granted However if we did happen to have aproject that didnrsquot include classifications of work where DBE certified participants are availablewould there still be an exception or a good faith efforts clause Thanks again for your time Dawn EgbertProcurement Services Manager3103 NW Lower River Road Vancouver WA 98660Direct 3609921102 | Cell 360448-9867 | Main 3606933611 | Fax 360735-1565degbertportvanusacom | wwwportvanusacom | available port properties Leadership | Stewardship | Partnership

From Feist MarleneTo WSDOT Disparity StudyCc Simmons Scott M Twohig KyleSubject Disparity Study Comments from City of SpokaneDate Friday December 15 2017 52226 PMAttachments image010png

image011pngimage012png

December 15 2017 Jackie BaynePolicy amp Reporting ManagerOffice of Equal OpportunityWashington State Department of TransportationPO Box 47314Olympia WA 98504-7314 RE Proposed DBE Contracting Goal for Highway Projects Dear Ms Bayne The City of Spokane would like to provide comments related to proposed DisadvantagedBusiness Enterprise Goal for Federal Highway Administration (FHWA) contracts by theWashington State Department of Transportation (WSDOT) Office of Equal Opportunity Manyof our projects receive funding from FHWA and as such the proposed new goals areapplicable to City work The City is supportive of the programrsquos purposemdashldquoto create a level playing field for firmsowned and operated by disadvantaged individuals wanting to participate in federally assistedhighway transit or aviation programsrdquo However the City is concerned about the ability to achieve the proposed utilization rate of upto 19 percent for DBEs in Eastern Washington considering the low number of DBEs in ourregion and the record construction under way in the City and in our region WSDOTrsquos DBE Program Disparity Study notes ldquoContractors in Eastern Washington repeatedlyreported that the goals on projects in their area are too highrdquo The Inland NorthwestAssociated General Contractors group notes that only about 12 DBEs in construction fields areavailable in the greater Spokane area Meanwhile the City has performed record construction in each of the last three years withproject totals hovering around $100 million Our City work has been bolstered by anaggressive program to improve water quality in the Spokane River Our local school districtsand our neighboring jurisdictions also have aggressive construction programs right now

Additionally we expect WSDOTrsquos work in this region to accelerate as North Spokane Corridor(NSC) construction proceeds At times our area is reaching the limits overall of our contractingcommunity the City has worked to release its projects in the first quarter of the year as muchas possible to lock in contractors and receive better pricing The capacity of existing DBEs in our region simply cannot meet that current high demand Some DBE firms are tempted to agree to more work in these times but we have found that insome cases DBEs have stretched themselves too thin On two recent City projects generalcontractors were unable to meet DBE goals as a result of DBE firms that couldnrsquot fulfill theircommitments for providing personnel or equipment It also seems implausible to expect DBEs from the West Side to mobilize teams to work on Cityof Spokane projects in large numbers In fact the Disparity Studyrsquos author responded at arecent meeting on this topic that a DBE from the West Side only very rarely completes workon the East Side of the state We would also be concerned about moving the good-paying jobs that construction providesoutside of our region The Cityrsquos median household income is $44350 considerably lower than theState of Washington MHI of $64129 and the Seattle MHI of $77351 Our leaders are working tocreate good-paying jobs for our citizens not export them to an already wealthier part of the state Additionally these projects are also funded with local dollars and our citizens expect their money toput their neighbors to work With the above considered the City is seeking

middot DBE goals for the 2018-2020 compliance period for Eastern Washington that arereflective of the current availability of DBE firms in our region

middot The re-inclusion of non-minority women owned DBEs in achieving DBE goals InSpokane non-minority women owned DBEs make up the majority of the availableDBEs And current information shows that women in Spokane overall still lag behindmen in opportunities and wages The Cityrsquos own ldquoGender and Racial Equityrdquo reportfrom 2016 noted that overall working women earned 783 percent of the earnings ofworking men in 2014 down from 827 percent in 2009 We need to lift up all women

middot The development of WSDOT programs to encourage the growth of existing andnew DBEs who can be used on street and highway projects We are encouraged by theproposed mentorproteacutegeacute program to increase the number and capacity of DBEs inEastern Washington Programs that address other barriers such as assistance withcompleting documentation or access to bonding capacity also could aid growth ofDBEs

middot The ability for WSDOT to adjust goals on a project if a selected DBE is unable tocomplete its commitments on a project This would help enable our contractors totake a chance on a new or inexperienced DBE to complete work

middot Recognition of local programs that strive to increase diversity in the work force Forexample the City operates a robust apprenticeship program that requires 15 percentof the labor hours on public works jobs greater than $600000 to be performed byapprentices The apprentice programs in our region are stepping up recruitmentefforts and are specifically seeking to recruit more youth women and minorities intoapprentice slots

As we seek to achieve the goal of increasing participation in street and highway constructionby companies owned by disadvantaged individuals we must also acknowledge that businessdevelopment and growth happens over time We must lay the groundwork now to build abase of DBEs that can help us achieve higher utilization goals over time Sincerely Marlene FeistDirector of Strategic DevelopmentPublic Works amp UtilitiesCity of Spokane

Marlene Feist | City of Spokane | Public Works Director of Strategic Development5096256505 | cell 5097109214 | mfeistspokanecityorg | spokanecityorg

From Hall MattTo WSDOT Disparity StudySubject FW WSDOT News - WSDOT seeks comments on proposed DBE contracting goal for highway projectsDate Friday December 15 2017 11956 PMAttachments WSDOT proposed DBE goal through 2020pdf

From Hall Matt Sent Friday December 15 2017 117 PMTo BayneJwsdotwagovCc Keniston Rick (KenistRwsdotwagov) MolyneKwsdotwagov SusanWilsonclarkwagovSubject WSDOT News - WSDOT seeks comments on proposed DBE contracting goal for highwayprojects Hello Jackie Please see our comments attached regarding the WSDOT proposed DBE goals Thanks for the opportunity to provide comments Matt HallClark County Public Works Washington State Department of Transportation ndash NEWSHeadquarters ndash 310 Maple Park Avenue SE ndash Olympia WA 98504-7314 ndash 360 705-7000 FOR IMMEDIATE RELEASEOct 30 2017 Contact Jackie Bayne Office of Equal Opportunity 360 705-7084

WSDOT seeks comments on proposed DBEcontracting goal for highway projectsComments accepted through Dec 15OLYMPIA ndash Contractors trade and labor organizations small and disadvantaged businessesand all others who may be interested in working with the Washington State Department ofTransportation are invited to comment on the agencyrsquos proposed Disadvantaged BusinessEnterprise goal for Federal Highway Administration contractsDBE goals for transportation projects that receive federal funds represent a percentage of thevalue of work in which minority- and women-owned businesses should participate WSDOTis proposing a 19 percent overall DBE participation goal on Federal Highway Administration-funded projects for federal fiscal years 2018 through 2020Once submitted to FHWA early next year the goal will be effective through Sept 30 2020The purpose of the DBE program is to create a level playing field for firms owned andoperated by disadvantaged individuals wanting to participate in federally assisted highwaytransit and aviation programsConnecting with communitiesWSDOT will host a series of public meetings to provide opportunities for individuals tocomment in person

Spokane

2 ndash 4 pm Tuesday Nov 28WSDOT Eastern Region Headquarters2714 N Mayfair St Spokane

Vancouver

2 ndash 4 pm Wednesday Nov 29WSDOT Vancouver Headquarters11018 NE 51st Circle Vancouver

Seattle

2 ndash 4 pm Thursday Dec 7WSDOT Northwest Region Headquarters15700 Dayton Ave N Shoreline

Other ways to provide commentThose who are unable to attend one of the meetings can participate in a no-cost webinar from230 ndash 430 pm Tuesday Dec 5 Registration for the webinar is required Those interested inparticipating should email DisparityStudywsdotwagovWritten comments can also be submitted by mail or emailJackie Bayne Policy amp Reporting ManagerWashington State Department of TransportationOffice of Equal OpportunityPO Box 47314Olympia WA 98504-7314DisparityStudywsdotwagovDocuments detailing the methodology used for determining the FHWA DBE goals areavailable for review at all WSDOT region headquarters offices and at the TransportationBuilding 310 Maple Park Ave SE Olympia They are also available online atwwwwsdotwagovequalopportunityWSDOT will consider all written comments received through Friday Dec 15 2017 Hyperlinks within this release

WSDOT Region offices wwwwsdotwagovContactofficelocationhtmregion

WSDOT keeps people businesses and the economy moving by operating and improving the statestransportation systems To learn more about what were doing go to wwwwsdotwagovnews forpictures videos news and blogs Real time traffic information is available at wwwwsdotcomtraffic or bydialing 511 Americans with Disabilities Act (ADA) InformationAccommodation requests for people with disabilities can be made by contacting the WSDOTDiversityADA Affairs team at wsdotadawsdotwagov or by calling toll-free 855-362-4ADA (4232)Persons who are deaf or hard of hearing may make a request by calling the Washington State Relay at711 Title VI Statement to Public It is WSDOTrsquos policy to assure that no person shall on the grounds ofrace color national origin or sex as provided by Title VI of the Civil Rights Act of 1964 be excluded fromparticipation in be denied the benefits of or be otherwise discriminated against under any of its federallyfunded programs and activities Any person who believes his or her Title VI protection has been violatedmay file a complaint with WSDOTrsquos Office of Equal Opportunity For additional information regarding Title

VI complaint procedures andor information regarding our non-discrimination obligations please contactOEOrsquos Title VI Coordinator at 360-705-7090 To unsubscribe to WSDOT media releases please reply and type REMOVE in the subject line

This e-mail and related attachments and any response may be subject to public disclosure under state law

From Cochrane EmilieTo WSDOT Disparity StudyCc Eugenis Susan Cowlitz Co Public Works - Brad BastinSubject Proposed DBE GoalsDate Thursday December 14 2017 85006 AMAttachments image002png

DBE Goals - Commentspdf

Please see the attached letter with comments regarding the proposed DBE Goals Ahard copy will be sent out today

Thanks

Emilie CochraneCowlitz County Public Works1600 ndash 13th Avenue SKelso WA 98626360-577-3030 ext 6523

From Michelle WolcottTo Bayne JackieCc Robideau Christopher LSubject RE DBE Contracting Goal CommentsDate Tuesday November 7 2017 65448 AMAttachments image001png

Thank you JackieWhat a relief to know that we have been heard and are not the only small business facing thisstruggle Your email is comforting

Yes you can provide us with additional assistanceLet me introduce my boss and Senior Vice President of Red Plains Professional Chris Robideau

Chris will be your contact from here since I will be leaving the company November 17th As a WA DBE we are ldquoeligible for limited DBE Support Services (SS) funding when funds becomeavailablerdquo When will this happen And are we registered or on a list to receive fundingIs the WSDOT ICR Training a prerequisite for the funding Or just helpful knowledge

Thank you for your time Jackie I will follow through with the training

Michelle Wolcott EIT Quality Control Engineer

2103 NE 129th Street Suite 201 Vancouver WA 98686 Office (360) 448-7999 Fax (360) 258-0274

wwwred-plainscom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Monday November 6 2017 332 PMTo Michelle Wolcott ltMichelleWolcottred-plainscomgtSubject RE DBE Contracting Goal Comments

Hi Michelle

Thank you for your interest in doing business with WSDOT I apologize for the lack of informationyou have come up against in your attempts to attain access to WSDOT ICR program

As you may well know WSDOT has recently completed a state wide agency specific diversity studyAnecdotal comments submitted with the study concur with your experience Not only did somerespondents find it difficult to become prequalified they also commented that the required indirectrate of 110 percent is too low to be profitable These requirements are currently under advisementby WSDOT and new DBE program requirements are currently in the process of seeking public input

As you are an OMWBE certified DBE in Washington State you will be eligible for limited DBE SupportServices (SS) funding when these funds become available At that time funds may become availableto assist you in your struggle to attain ICR eligibility Here is a link to WSDOTrsquos Indirect Cost RateTraining httpswwwwsdotwagovAuditICRTraininghtm If you would like me to find additionaltraining or information please let me know

If I can provide additional assistance of information please let me know

Best Regards

Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Michelle Wolcott [mailtoMichelleWolcottred-plainscom] Sent Tuesday October 31 2017 835 AMTo WSDOT Disparity Study ltDisparityStudyWSDOTWAGOVgtSubject DBE Contracting Goal Comments

HelloI have been in contact with WSDOT for 6 months sharing my disparaging story of beinga small DBE unable to submit SOQs for projects requiring a WSDOT Audited IndirectCost Rate Approval We do not have an in-house accountant and our outsideaccountant has explained to get all the paperwork together for WSDOT would take 40hours of work $9000 annually We cannot justify this cost to submit on a project thatwe may not acquire We have been directed to seek financial assistance from WSDOT Federal SBA andWashington State Office for Women and Minority Owned Enterprises all of whichprovided negative responses

As a DBE business in 11 states we are supporting the 19 incentive for federallyfunded contracts but we are frustrated in the fact that we will not be one of the luckyfew to participateWe have been in business 20 years From our Vancouver Washington office our clientsare the Native American tribes across the country with all contracts federally funded This summer alone the WSDOT ICR Approval has squashed our ability to submit on twoprojects that we were perfectly qualified to performI have attached previous emails to show a sample of who I have been dealing with

Thank you

Michelle Wolcott EIT Quality Control Engineer

ltimage001pnggt

2103 NE 129th Street Suite 201 Vancouver WA 98686 Office (360) 448-7999 Fax (360) 258-0274 wwwred-plainscom

From Michelle Wolcott Sent Monday July 10 2017 954 AMTo Harvey Schatzie ltHarveySwsdotwagovgtSubject RE WSDOT Indirect Cost Rate Process

Good Morning Schatzie

This is Michelle Wolcott from Red We spoke Friday June 30th about the ICRprocess and you were very encouraging I relayed the information to my boss who ishere in Vancouver then he shared with the president bookkeeper and our accountantin Oklahoma We had FAR compliance with Oklahoma DOT in 2015 so we are noteligible for the Safe Harbor Program Our account said our timekeeping system doesnot breakdown the hours and pay in the format WSDOT wants to have it presented andto get the documents in order would take the CPA and an assistant $9000 in paidhours of work It turns out this would have to be annually The other option is to hirean outside CPA firm to do the audit for us at $20000 annually

Our president said in the past we received funding assistance from the Stateof Oklahoma to get our ICR approval Does WSDOT offer any financial assistance for small businesses to reach compliance We are also a DBE in WA I have requested the same information from WA PTAC at theVancouver Chamber of Commerce and from WA Office of Minority and Women OwnedBusiness Enterprises and they both said there was nothing but suggested to askWSDOTThank you for your helpMichelle Wolcott EIT

Hello Michelle sorry but I am not aware of any grants But I was looking at this andthere is a POC at the bottom you may try to discuss the audit issuesHollyHolly BoehmeBusiness Opportunity Specialist | 8(a) Business Development ProgramUS Small Business Administration bull Seattle District Office

Hello Michelle -

Thank you for your email Im not aware of any funding available for thispurpose but do agree its quite a bit for a DBE firm to have as an expense Mostof the firms I work with do a lot more work on the Oregon side so perhaps thereare programs available that I just havent heard of Im copying my colleagueHoly Boehme in our Seattle District Office to see if they are aware of any suchassistance

Holly might there be some small business incubators or other resources availablein WA to help a small firm with the expense of getting a WSDOT AuditedIndirect Cost Rate approval Please reply all with anything you may have

Thank you

Yuri Yoshida Dyson Business Opportunity SpecialistUS SMALL BUSINESS ADMINISTRATION Portland District OfficePhone 503-326-6692 Fax 202-292-3872 wwwsbagovor

From Troy HalbergTo Bayne JackieSubject Re DBE Goal CommentsDate Wednesday December 13 2017 35533 PM

JackieToday was another example of why the goals should not be raised There were 2 jobs which Iwas low on and did not get due to the high goals This is exactly what will happen when thegoals get raised The first job was the 9180 Anacortes Ferry Paving Northeast Electric $244924 and UDBE $318000 Second job was the 9172 SR 9 East Junction Job Northeast Electric $68503 and UDBE $76300

Does this seem like a good way to spend the tax payer money I do not see how we are tosurvive if the goals get to 21

Thanks

Troy HalbergOffice360-225-7004Cell360-931-3990Fax360-225-7001

On Thu Nov 30 2017 at 1131 AM Bayne Jackie ltBayneJwsdotwagovgt wrote

Good Morning Troy

Thank you for taking the time to provide us with your experiences with the DBE Program TheWashington State Department of Transportation takes the public involvement process veryseriously and your comments will be taken into consideration prior to a final decision regardingthe overall DBE program goal

If I can be of further assistance please let me know

Best Regards

Jackie Bayne

Policy and Reporting Manager

WSDOT Office of Equal Opportunity

Work (360) 705-7084

Cell (360) 338-5783

BayneJwsdotwagov

From Troy Halberg [mailtotroyhnellcnet] Sent Wednesday November 29 2017 144 PMTo WSDOT Disparity Study ltDisparityStudyWSDOTWAGOVgtSubject DBE Goal Comments

If these goals are to be set that high this would make us as a non DBE small contractor at amajor disadvantage With these high of goals this is like handing all of the DBE electricalcontractors every job These general contractors will have no option but to use thembecause of the goals This should not go into effect We have been low on several jobs in thepast and have not gotten them do to the goals being 18 When this goes on it puts all therest of us contractors at a disadvantage Please consider the smaller non DBE contractorsthat are looking to survive as well

Thanks

Troy Halberg

Office360-225-7004

Cell360-931-3990

Fax360-225-7001

From Daniel Seydel IITo Bayne JackieCc Key Earl daneiwashingtonorg Nadeem Ismail Mussie Tewelde (mteweldehydro2geotechcom)

graceflyrightaolcom Mary Wenner Watkinson LarrySubject Re Seydel Dan - WSDOT Disparity Study Presentation Public TestimonyDate Friday December 8 2017 30323 PM

Jackie

It was my hope that the comments would be put into record I was also hoping that you wouldnot have to be the one having to formulate responses for each clarification If that is the caseI know you are swamped and will then I just ask my comments be only part of the recordHowever if there is dedicated staff that is going to be compiling and responding to theclarification then the below questions would be the priorities of most interest

These were questions unrelated to the disparity study and hopefully should be doable

1) Do you have any reports on your outcomes from the past 5 years on DBE support servicesand specific key performance measures from previous years funding (ie how many firmsutilized what was the objectives were objectives met did outcomes meet total satisfaction ifnot why next steps what was the firms capacity before and after services were performed (iesales employees bonding if applicable insurance equipment line of credit if applicablenumbertype of customers how are they doing now etc))

2) What other changes or improvements other than allowing DBES to select their own serviceproviders and a staff change will be a part of this new program

3) Was consideration to provide the new mentor protege consultant rather than separating theactivities into support services andor technical assistance

Disparity study clarifications

1) Will WSDOT consider sponsoring legislation to support the policy changes and goalincreases to insure manditory goals wont be necessary

a) If not what measures will you grant primes to operate outside the box (ie entertain bestvalue over low bid modify responsiveness by subs to require adherence to meeting voluntarygoals developing standards around federally funded gccm and other low bid procurementsthat give powers to primes to meet objectives including but not limited to mentor protegerelationships joint ventures bond waiving techniques cash flow assistance material andequipment acquisition manufacturer development specifications that have only DBES orinclude equal number of DBES as non DBES as approved installers etc)

2) Will the disparity study consultant be available for implementation or information gatheringfrom other regions

5) Will WSDOT be hiring more diverse staff amp professionaltechnical service providers inother departments outside OEO to insure policies commitments and evaluations areperformed in manner that improves diversity that reflects the communities WSDOT serves bythoughtful and legal efforts increase participation thus creating successful outcomes includingpartnerships and collaborations

Thank you and Merry Christmas

Hi Dan

Thank you for providing such thoughtful public comments questions and testimony

Regarding your public testimony below - I do not believe I am not able to answer questions ifthey are public comments Please let me know what part of this email you would likeclarification on and what part you would like considered public testimony

I appreciate your thoughtful consideration of WSDOTrsquos implementation of our civil rightsprograms

Best Regards

Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

DIDaniel Seydel IIFyi Daniel J Seydel II Platinum Group LLC 2064060844 f) 2062999934wwwplatinumbusinessgroupcom Small Business is the Answer FREE TRAINING FORENTREPRENEURS amp JOB SEEKERS - Polish your skills or make your firm standout thanksto the EntrepreneurialThu 233pDI

Daniel Seydel IIThu 1272017 1123 AMInbox Sent ItemsShow all 7 recipientsTobaynejwsdotwagov ltBayneJwsdotwagovgtJackie

Per your request below are my questions and comments some of which were verbally sharedyesterday

Congratulations on receiving the blessing of additional technical assistance dollars andcompleting the DBE Disparity Study per your report

1) Do you have any reports on your outcomes from the past 5 years on DBE support servicesand specific key performance measures from previous years funding (ie how many firmsutilized what was the objectives were objectives met did outcomes meet total satisfaction ifnot why next steps what was the firms capacity before and after services were performed (ie

sales employees bonding if applicable insurance equipment line of credit if applicablenumbertype of customers how are they doing now etc))

2) What other changes or improvements other than allowing DBES to select their own serviceproviders and a staff change will be a part of this new program

3) Was consideration to provide the new mentor protege consultant rather than separating theactivities into support services andor technical assistance

Disparity study clarifications andor comments

1) Will WSDOT consider sponsoring legislation to support the policy changes and goalincreases to insure manditory goals wont be necessary

a) If not what measures will you grant primes to operate outside the box (ie entertain bestvalue over low bid modify responsiveness by subs to require adherence to meeting voluntarygoals developing standards around federally funded gccm and other low bid procurementsthat give powers to primes to meet objectives including but not limited to mentor protegerelationships joint ventures bond waiving techniques cash flow assistance material andequipment acquisition manufacturer development specifications that have only DBES orinclude equal number of DBES as non DBES as approved installers etc)

2) Will the disparity study consultant be available for implementation or information gatheringfrom other regions

3) What lessons did WSDOT learn that it did not know from the other study(s)

4) What would WSDOT do different (ie scope time line process approach etc)

5) Will WSDOT be hiring more diverse staff amp professionaltechnical service providers inother departments outside OEO to insure policies commitments and evaluations areperformed in manner that improves diversity that reflects the communities WSDOT serves bythoughtful and legal efforts increase participation thus creating successful outcomes includingpartnerships and collaborations

Daniel J Seydel IIPlatinum Group LLC 2064060844f) 2062999934wwwplatinumbusinessgroupcom

Small Business is the Answer

FREE TRAINING FOR ENTREPRENEURS amp JOB SEEKERS - Polish your skills or makeyour firm standout thanks to the Entrepreneurial Institute of Washington

httpswwwyoutubecomchannelUCKL5YeVxL29HnNxqnb6hmXA

LIKE US on FaceBook if an Active Professional Development workshop provided by EIW

Construction University helps your firm or has benefited you

httpswwwfacebookcomEIWashingtonref=hl

From Bayne Jackie ltBayneJwsdotwagovgtSent Friday December 8 2017 10139 PMTo Daniel Seydel IICc Key Earl daneiwashingtonorg Nadeem Ismail Mussie Tewelde(mteweldehydro2geotechcom) graceflyrightaolcom Mary Wenner Watkinson LarrySubject RE Seydel Dan - WSDOT Disparity Study Presentation Public Testimony Hi Dan Thank you for providing such thoughtful public comments questions and testimony Regarding your public testimony below - I do not believe I am not able to answer questions if theyare public comments Please let me know what part of this email you would like clarification on andwhat part you would like considered public testimony I appreciate your thoughtful consideration of WSDOTrsquos implementation of our civil rights programs Best Regards Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov From Daniel Seydel II [mailtodanplatinumbusinessgroupcom] Sent Thursday December 7 2017 1123 AMTo Bayne Jackie ltBayneJwsdotwagovgtCc Key Earl ltKeyEwsdotwagovgt daneiwashingtonorg Nadeem Ismailltnipaintingearthlinknetgt Mussie Tewelde (mteweldehydro2geotechcom)ltmteweldehydro2geotechcomgt graceflyrightaolcom Mary Wennerltmwenn0108yahoocomgtSubject Seydel Dan - WSDOT Disparity Study Presentation Public Testimony Jackie

Per your request below are my questions and comments some of which were verbally sharedyesterday

Congratulations on receiving the blessing of additional technical assistance dollars andcompleting the DBE Disparity Study per your report

1) Do you have any reports on your outcomes from the past 5 years on DBE support servicesand specific key performance measures from previous years funding (ie how many firmsutilized what was the objectives were objectives met did outcomes meet total satisfaction ifnot why next steps what was the firms capacity before and after services were performed (iesales employees bonding if applicable insurance equipment line of credit if applicablenumbertype of customers how are they doing now etc))

2) What other changes or improvements other than allowing DBES to select their own serviceproviders and a staff change will be a part of this new program

3) Was consideration to provide the new mentor protege consultant rather than separating theactivities into support services andor technical assistance

Disparity study clarifications andor comments

1) Will WSDOT consider sponsoring legislation to support the policy changes and goalincreases to insure manditory goals wont be necessary

a) If not what measures will you grant primes to operate outside the box (ie entertain bestvalue over low bid modify responsiveness by subs to require adherence to meeting voluntarygoals developing standards around federally funded gccm and other low bid procurementsthat give powers to primes to meet objectives including but not limited to mentor protegerelationships joint ventures bond waiving techniques cash flow assistance material andequipment acquisition manufacturer development specifications that have only DBES orinclude equal number of DBES as non DBES as approved installers etc)

2) Will the disparity study consultant be available for implementation or information gatheringfrom other regions

3) What lessons did WSDOT learn that it did not know from the other study(s)

4) What would WSDOT do different (ie scope time line process approach etc)

5) Will WSDOT be hiring more diverse staff amp professionaltechnical service providers inother departments outside OEO to insure policies commitments and evaluations areperformed in manner that improves diversity that reflects the communities WSDOT serves bythoughtful and legal efforts increase participation thus creating successful outcomes includingpartnerships and collaborations

Thank you for your hard work

Daniel J Seydel IIPlatinum Group LLC2064060844f) 2062999934wwwplatinumbusinessgroupcom

Small Business is the Answer

FREE TRAINING FOR ENTREPRENEURS amp JOB SEEKERS - Polish your skills or makeyour firm standout thanks to the Entrepreneurial Institute of Washington

httpswwwyoutubecomchannelUCKL5YeVxL29HnNxqnb6hmXA

LIKE US on FaceBook if an Active Professional Development workshop provided by EIWConstruction University helps your firm or has benefited you

httpswwwfacebookcomEIWashingtonref=hl

From Erin EhlingerTo Bayne JackieSubject Support for WSDOTs proposed DBE goalDate Wednesday December 13 2017 115417 AM

I am writing to support the WSDOT recommended DBE Goal for FHWA contracts of 190 I also want to express my appreciation for the thoroughness of the WSDOT Disparity study and howthe study disclosed the disparity in WSDOT contracts that do not have a DBE or WBE goal ndash furtherreinforcing that all women-owned firms and minority owned firms face equity issues I remain concerned with the methodology required by the Code of Federal Regulations and case lawbecause of the dependence on the availability of firms in the calculation An unintendedconsequence of removing either gender or race from the goal is that many of these firms would goout of business the availability decreases and the formula then results in a smaller DBE goal Pleaselet me know how I can help influence a change to the CFR Thank you Erin Ehlinger

Erin Ehlinger PEPresident

24036 SE 47th StSammamish WA 98029erinehlingersmartcitytrafficcom425-221-0320

From Jackie EtterTo WSDOT Disparity StudySubject Why we need mandatory goalsDate Friday December 1 2017 61859 PM

As a DBE participating in bidding process I have found that regardless of the language which claims to insurethat disadvantaged business enterprises shall not be discriminated against the only way to ensure that this does nothappen is by mandating affirmative action goals Having been overlooked time and time again because of my gender when I have submitted bids that are verycompetitive with other bidders is very frustrating I have had many instances of companies using my price to getmy non DBE competitors to lower theirs The voluntary or laudatory DBE goals do nothing to ensure a level playing fieldThe only way to ensure non-discrimination is through mandatory goals

Jackie EtterWest Star Construction of Spokane

Sent from my iPhone

From Claudia HirscheyTo Key Earl Bayne JackieSubject WSDOT DBE Goal - Comment in supportDate Tuesday December 12 2017 61937 PM

Dear Earl and Jackie The WSDOT recommended DBE Goal for FHWA contracts of 190 is a small and important increasethat can further achieve equity in WSDOTFHWA contracting I am in support of the 19 DBE Goal I also want to express my appreciation for the thoroughness of the WSDOT Disparity study and howthe study disclosed the disparity in WSDOT contracts that do not have a DBE or WBE goal ndash furtherreinforcing that all women-owned firms and minority owned firms face equity issues I remain concerned with the methodology required by the Code of Federal Regulations and case lawbecause of the dependence on the availability of firms in the calculation An unintendedconsequence of removing either gender or race from the goal is that many of these firms would goout of business the availability decreases and the formula then results in a smaller DBE goal Sincerely Claudia S Hirschey PETransportation Consulting Servicesclaudiahirscheycomcastnethttphirscheytcscom2068564988 Mobile

From Nate ThomasTo WSDOT Disparity StudySubject WSDOT Proposes DBE goal of 19Date Thursday December 7 2017 42720 PM

The WSDOT should look into similar ways the Federal Gov has handled the equal opportunity forthose that fall under the DBE status and set aside specific projects for the DBErsquos and moreimportantly UDBErsquos so these companies have better chance of landing contracts Maybe a lot 10 ofthe DBE goal to set aside for only DBEs and other 9 goal met as it is done currently with COA onlarger contracts Nate ThomasSenior EstimatorD 5095688085 | C 5099941156331 North Fancher Road | Spokane WA | 99212

The information contained in this email including any attachments is confidential and may beprivileged It is intended only for the person or entity to which it is addressed and no waiver isintended by sending this email If the reader is not the intended recipient you are herebynotified that any review retransmission dissemination or other use of or taking any action inreliance upon this information is strictly prohibited If you have received this email in errorkindly notify the sender by reply email and delete the original message from any computerThank You

From Brian FujiiTo WSDOT Disparity StudySubject WSDOT propsed DBE GoalsDate Thursday December 7 2017 110638 AM

Good morning Jackie

I wanted to comment on WSDOTs proposed DBE goal to 19 I believe WSDOTs plan toincrease the overall DBE goal to 19 will provide greater opportunities for DBE contractorsin different disciplines to participate in federally funded contracts

Without the new DBE requirement and with Proposition 200 there are limited opportunitiesfor DBE contractors in disciplines different than the typical trucking flagging and rebar Inaddition there are no incentives for general contractors to go out beyond the usual truckingflagging and rebar DBE subcontractors

Increasing the DBE goals will provide opportunities for different DBE contractors in differentdisciplines to participate in WSDOT federally funded projects

Thank you for your time

RespectfullyBrian FujiiPresident Subsurface ConstructionP 2063836478F 2069604639MDBE 4M0024998

From Forman StephanieTo Bayne JackieCc Millar Roger christinenhanmailhousegov Claudia Hirschey Sarah Corbin Jiang Yingle

efaulknerenviroissuescom Diana Giraldo Kelly CheesemanSubject WTS - Disparity Study Comment LetterDate Friday December 15 2017 71020 PMAttachments 2017_Dec 15_WTSCommentLetter_WSDOT DBE Goalpdf

Dear Ms Bayne Please find our attached letter which summarizes the WTS Puget Sound Chapterrsquos support foradvancement of women in transportation and our comment letter regarding the recent DisparityStudy Please feel free to contact me if you have any questions or would like to discuss Sincerely Stephanie S Forman PEWTS Puget Sound President Transportation Project Manager

929 108th Avenue NE Suite 1300Bellevue WA 98004D 4254681548 M 2062291745stephanieformanhdrinccom

December 15 2017

Jackie Bayne Policy and Reporting Manager

Office of Equal Opportunity

Washington State Department of Transportation

PO Box 47314

Olympia WA 98504-7314

Dear Ms Bayne

On behalf of the Puget Sound Chapter of Womenrsquos Transportation Seminar (WTS) we would

like to thank the Washington State Department of Transportation for presenting to our

organization the DBE Disparity Study results We very much appreciated the presentation by Earl

Key Director of WSDOTrsquos Office of Equal Opportunity Teresa Berntsen (Director Office of Minority

and Womens Business Enterprises) as well as Leslie Jones (Director Sound Transit Office of Small

Business Development and Labor Compliance)

Following a review of the WSDOT Disparity Study and as a result of consultation with WTS

International we would like to provide WSDOT with our comments for your consideration

As you know WTS is an organization focused exclusively on attracting retaining and advancing

women in transportation By the year 2018 there will be thousands of vacancies in the

transportation industry for qualified professionals and while women account for more than half of

the worldrsquos workforce they are a very small minority in transportation disciplines

We are pleased that the outcome of the 2017 Disparity Study that recognizes the on-going barriers

for DBEs including women-owned businesses in transportation The WSDOT recommended DBE

Goal of 190 is a small and important increase that can further achieve equity in WSDOTFHWA

contracting We are also pleased that the 2017 Disparity Study has documented the disparity in

WSDOT contracts that do not have a DBE or WBE goal ndash further reinforcing that all women-owned

firms and minority owned firms face equity issues We are encouraged that the WSDOT has asked

FHWA to rescind the 2016 waiver

While WTSrsquo mission is specific to the advancement of women we are a race-neutral organization To

this end we are also deeply concerned about the underutilization of minority owned firms There is

no equity or ldquofair playing fieldrdquo without equity for all gender and races We remained concerned with

the methodology required by the Code of Federal Regulations and case law because of the

dependence on the availability of firms in the calculation An unintended consequence of removing

either gender or race from the goal is that many of these firms would go out of business the

availability decreases and the formula then results in a smaller DBE goal This consequence is

contrary to our mission

We look forward to our continued participation in WSDOTrsquos DBE advisory group we are anticipating

notice that the 2016 waiver has been rescinded and how we can work together to continue

advancing minority and women-owned firms in the transportation field

Sincerely

WTS Puget Sound Chapter

Stephanie Forman

President

C Roger Millar Secretary WSDOT

C Representative Adam Smith 9th Congressional District Washington co Christine Nhan

WTS Puget Sound Chapter

PO Box 3461

Bellevue Washington 98009

From Dave Gent - WAPATo Bayne JackieCc Tom GaetzSubject WAPA Public Comments - RE WSDOT FHWA Disadvantaged Business Enterprise Proposed GoalDate Friday December 15 2017 14119 PMAttachments 12152017 DBE Proposed Goal - WAPA Public Comments Letterpdf

Good afternoon Jackie Please find attached WAPArsquos ldquofor the public recordrdquo comments with respect to WSDOTrsquos proposedDBE Goals FHWA funded work I assume that the Master DBE Directory was not sent to you this week so as a result we were notable to review the directory before the close of the public comment period That fact is noted withinour comment letter Thank you for your efforts Have a good weekend

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Friday December 8 2017 1219 PMTo Dave Gent - WAPA ltdavegentasphaltwacomgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hello Dave WSDOT did not take possession of this directory as part of our review process We will provide youwith the records without submitting a formal request However we need to get them from theconsultant first I will hopefully have them to provide next week I will keep you updated on therequest Have a nice weekend Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal Opportunity

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

December 15 2017

Jackie Bayne Policy Manager WSDOT Office of Equal Opportunity Delivered via e-mail to BayneJwsdotwagov RE Public Comment (as requested) to Proposed Overall DBE Goal for the FHWA (2018 ndash 2020) Ms Bayne Thank you for your presentation via webinar on December 5 2017 outlining WSDOTrsquos evaluation process used to determine the proposed overall DBE goal for the FHWA Thank you also for the Colette Holt amp Associates (CHA) DBE Advisory Group presentation made on September 14 2017 Both presentations helped to distill the findings of the 2017 Disparity Study produced by CHA In response to Earl Keyrsquos initial informal request to comment on the proposed overall DBE goal made during the DBE Advisory Committee teleconference held on October 12th we provided a list of reasons that we believe justify a lower DBE goal than is now being proposed Our initial response to Mr Keyrsquos request did not serve to influence WSDOT and the current proposed goal remains at 190 The arguments provided on October 12th against the significant increase in the proposed DBE goal (versus the previous goal and recent historic DBE participation) are repeated and supplemented below and will serve as the Asphalt Pavement Associationrsquos (WAPArsquos) official public comments

In concert with WSDOT and the OWMBE WAPA and the construction firms that WAPA represents have demonstrated a commitment to the principals of equal opportunity for all ldquoready willing and ablerdquo firms for the entire history that our DBE program has been in place WAPA has continuously demonstrated its commitment to the goals of the DBE program and for increasing the representation of disadvantaged groups within our industry as both workers and owners of firms Please recognize that WAPArsquos oversight and critique of the DBE program has always attempted to balance the principals of fair and open competition with the practical aspects of the low bid compressed schedule high performance standards demanded within the WSDOT marketplace Our comments below are meant to enhance WSDOTrsquos and OWMBErsquos understanding of the market and to hopefully have WSDOT fully consider all of the dynamics that are at play when proposing its Triennial DBE goal for FHWA projects Current DBE Capacity vs Historically Robust Market In advocating for a realistic and defensible DBE goal it has always been WAPArsquos position that it is paramount that the realities of the marketplace and true certified DBE subcontracting capacity should be a primary standard While a ldquostretchrdquo goal may appear to be progressive on its face it comes with consequences for all of the parties involved in the WSDOT federal aid contracting arena To balance the dynamics of the WSDOT contracting system the DBE goal should be tempered with the realities of the market and with a true measure of the underlying effectiveness of the DBE support services available to contractors

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 2 of 6 The first point of fact that has not been given any apparent consideration by WSDOT in its evaluation of the current capacity of certified DBErsquos is that there is an historically robust workload scheduled to be performed in the 2017 through 2022 time-frame particularly in the Puget Sound ldquoEverett to Olympiardquo corridor By WSDOTrsquos own estimates (see Attachment A) public works construction project starts in the 2018 to 2022 time-frame in this region will exceed $333 billion (B) counting the work projected from just five public entities WSDOT will be taking a decidedly ldquoback seatrdquo role during this period to Sound Transit which will have construction project starts of $226B vs WSDOTrsquos projected volume of $67B WSDOTrsquos summary publication titled Washington State Department of Transportations Proposed Federal Highway Administration Triennium Disadvantaged Business Enterprise Goal Federal Fiscal Years 2018-2020 states correctly that ldquoIncluded among the types of evidence that must be considered are the current capacity of DBEs to perform work on WSDOTrsquos federally-assisted contracts as measured by the volume of work DBEs have performed in recent yearshelliprdquo (Step Two Adjustment discussion) With the Sound Transit program being over 300 larger than the total WSDOT program in this region a sober assessment of true certified DBE capacity in the next three years needs to be considered by WSDOT If the huge construction boom over the next five years does not prompt a Step Two Adjustment then it becomes obvious that the realities of the market are being ignored by WSDOT for DBE goal setting Put another way if the 2018 through 2022 level of contracting activity does not warrant a goal adjustment what will DBE Access Barriers Not Yet Addressed The CHA 2017 Disparity Study points out multiple recommendations in Section VII that impact DBE participation and access to the market Assessments relating to those impacts and the state of maturity in addressing the CHA recommendations should be considered when assessing the DBE goal Many of the CHA recommendation have not been adequately addressed at this point in time Some of the prime examples are listed below Increase Certification and Expertise ndash The Disparity Study as explained to us includes all minority- (MBE)

and women-owned (WBE) firms that could be readily identified that perform work within Washington State and that perform work within the NAICS code framework CHA developed to cover WSDOT project work During the various presentations relating to the Disparity Study WSDOT representatives said that outreach to currently non-certified MBE amp WBE firms has increased and that WSDOT aspires to bolster its list of certified firms in the future but this effort is just beginning and the success of the effort needs to be means tested against the broader population of MBE amp WBE firms included in the CHA base line evaluation As the Disparity Study uses a much broader population of MBE WBE contractors to arrive at its conclusions (both non-certified firms and firms too large for certification) it follows that the calculated DBE proposed goal is overstated to include capacity that does not currently exist within WSDOTrsquos certified DBE framework Unless OMWBE is experiencing sudden and unprecedented success in recruiting new MBEWBE firms the DBE goal should be adjusted downward to recognize that the ldquoready willing and ablerdquo contractors that WSDOT has certified is only a subset of the total MBEWBE contracting population used in the Disparity Study evaluation

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 3 of 6

Until the promised WSDOT outreach registration efforts result in a substantial increase in available certified DBE firms it is premature to count the entire population of minority- and women-owned contractors as available to participate in WSDOT contracting It is unreasonable for WSDOT to project availability capacity using the entire MBEWBE population when only its currently truncated list of certified firms is acceptable to count toward the DBE goal

A corollary to the Increase Certification and Expertise discussion above is that the calculation of the Base Figure evidently includes the broadest practical population of MBE and WBE firms identifiable (without a review of the CHA Master DBE Directory which has not been supplied prior to the close of the public comment period the scope of the directory cannot be ascertained) If this directory includes a large population of MBEWBE firms that are not certified or are too large to be certified then the Base Figure calculation should be adjusted to reflect that certified DBE firms are a fraction of the total MBEWBE firms used to arrive at the 19 suggested DBE goal With respect to the CHA Master Directory it is our understanding the WSDOT was not given the directory as part of its evaluation of the Disparity Study and it follows that it did not evaluate the proposed DBE goal in the context of the CHA Master DBE Directory In our opinion an informed decision on adjusting the CHA baseline goal calculation can only be done after an extensive evaluation of the CHA Master DBE Directory If this has not been done WSDOT has not exercised due diligence in evaluating the context and underpinnings of the CHA Disparity Study and a certified DBE Triennium goal proposal to the FHWA is premature Increase Contract ldquoUnbundlingrdquo ndash If this proposed strategy (suggested by the CHA Study) is undertaken

certified DBE Subcontractors currently available will be engaged as Prime Contractors and the value of their prime contracts will bolster the overall percentage of certified DBE contracting but a systematic effort and strategy to ldquounbundlerdquo has not been articulated by WSDOT The key question of how this effort can be accomplished without increased cost to the taxpayers and increased inconvenience for the traveling public As noted in the CHA study (page 129 final paragraph) ldquoUnbundling must be conducted however within the constraints of the need to ensure efficiency and limit cost to the taxpayersrdquo As of this writing no overarching strategy for further unbundling with proper accountability has been articulated by WSDOT to the DBE Advisory Group

Review Insurance and Experience Requirements ndash Impediments to certified DBE participation due to

necessary insurance and experience standards cannot be solved by the prime contracting community Unless and until WSDOT puts together programs to address the burden of the substantial risks shouldered by Prime Contractors on WSDOT contracts barriers for streamlined utilization of certified DBE firms will continue to exist These market driven barriers will continue to dampen the availability of certified DBE Subcontractors that are able to perform within WSDOTrsquos strict criteria without unduly transferring risk to the Prime Contractor

Better Partnering to Overcome DBE Failures to Perform ndash Prime Contractors are held fully responsible to maintain the project schedule and are subject to project liquidated damages even when they may be struggling to deal with Subcontractor performance issues It is well-established that replacing a certified ldquocondition of awardrdquo (COA) DBE Subcontractor is very onerous and likely very costly to the Prime Contractor Unfortunately the imposition of strict and often counter-productive commercially useful function (CUF) rules often compound this issue as Prime Contractors cannot help COA DBE Subcontractors work through capacity expertise or time-related issues that impact timely performance

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 4 of 6

WSDOT needs to be a much better partner in the process of dealing with under-performing or non-performing certified DBE Subcontractors The current standard operational procedure places all of the exposure for non-performance onto the Prime WSDOT does not have an equitable system to account for non-performing or under-performing certified DBE Subcontractors hired as a condition of award (COA)

Performance Information and Training ndash Commercially useful function rules (CUF) and the lack of clear benchmark definitions for good faith effort (GFE) standards remain barriers for improving accountability within the DBE system and in turn lead to distorted DBE participation rates These items remain amorphous due to lack of training or lack of historic information Chronic uncertainty exists regarding both of these items Until WSDOT changes and improves its approach to provide transparency and certainty for both the prime bidding amp subcontracting parties true certified DBE capacity will continue to be masked and the resultant higher subcontracting costs associated with a distorted marketplace will continue to be hidden

WAPA respectfully suggests that simply adding an ldquoEstimated DBE Subcontract Premiumrdquo line to the current DBE bid forms would help to establish benchmarks that could begin to be used to ldquomeans testrdquo good faith efforts If this information had been gathered over the last 20 years of the DBE program meaningful GFE standards could have been developed and could be in place today

An in-depth review of CUF standards would also provide clarity For instance it is unclear why force account items performed by certified DBEs are currently counted at only 50 of the value of the work How was this benchmark established Has it been reviewed since imposed Did it ldquosolverdquo whatever inequity WSDOT was trying to address Better clarity may lead to more expanded opportunities for certified DBE Subcontractors

Enhanced Supportive Services and Business Development Programs ndash Unless and until stronger programs of these types are shown to be effective in boosting certified DBE business development increased DBE participation due to stronger business acumen should not be relied upon when setting the new DBE goal

Does OMWBE have a reasonable expectation that future plans for enhanced and expanded programs will be more successful than those employed in the past Assuming that certified DBE Subcontractors will be better prepared to deal with the WSDOT contracting environment than in the past should not be relied upon to boost DBE participation goals Especially troubling were the multiple references within the CHA report highlighting that DBEs believe that the staff at OMWBE lack a deep knowledge about the highway construction industry (eg Study page 129 2nd paragraph) Does OMWBE have a path forward that will address this issue and thus improve supportive services impacts

Develop a Bonding and Financing Program for SBEs ndash This is completely outside of the prime contracting

communityrsquos scope of influence WSDOT must find a way to institute changes that both protect the taxpayer and help increase certified DBE bonding capacity and access to financing ndash very large hurtles To assume that these hurtles can effectively be overcome within the 2018 ndash 2020 time frame when they have been chromic issues for the past 20 plus years of DBE program development is not rational

A helpful innovation would be for WSDOT to underwrite performance and payment bonds for certified DBE firms or to create promote a system that helps certified DBE firms obtain private bonding Bridging the gap to address capital access and performance risks (bonding) must be championed by WSDOT

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 5 of 6

Base Figure Adjustment to Address Available Subcontract Volume and DBE Prime Contracts It is a fact that mid- to large-sized MBEWBE firms that compete both as Prime Contractors and as Subcontractors are not eligible to be OMWBE certified DBEs Further the current amount of contract unbundling for greater DBE access to WSDOT prime contracting (see below) accounts for a very low dollar volume of prime contracts performed by certified DBEs Finally by specification (WSDOT standard specification 1-081) Prime Contractors are obligated to perform 30 of the total volume of the work (less specialty work) or stated another way a maximum of 70 of the dollar volume on WSDOT projects is typically available to award to subcontractors These market dynamics are NOT addressed in the Disparity Study A responsible DBE goal made absent of these facts should not be implemented A reasonable adjustment to the proposed 19 DBE goal is presented below

bull The percent of WSDOT prime contracts awarded to certified DBE firms is likely less than 5 by total WSDOT

contract volume Assuming this approximation is valid (likely very conservative) then the amount of WSDOT contract work available to certified DBE firms via subcontracting should be adjusted to account for the factors outlined above The Base Figure (19) should be adjusted to recognize that a 70 maximum subcontractor participation is available (in the numerator) and to account for the assumed 5 certified DBE prime contracts in the denominator Reasonable Base Figure Adjustment 19 (proposed) x 70 subcontracts available divide 95 of Non-Certified DBEs as Prime Contract Volume = 190 x 0737 = 140 adjusted goal This is an adjustment based on the practical dynamics of the WSDOT contracting system and it represents a more realistic look at the true subcontract volume that is available for Prime Contractors to award to certified DBE firms

Conclusions

Until the items listed above are addressed and in place it is not reasonable to believe that DBE goals can be increased by nearly 163 (from 117 to 190) When the projected robust public works contracting market is appropriately considered the true availability of certified DBE Subcontractors for WSDOT contracts will be truncated due to demand across all public works sectors With multiple strong public works programs competing for a limited population of certified DBEs the ability to meet increased WSDOT DBE goals will be severely challenged Without very clear concise and transparent good faith effort rules the ability to address DBE goals that greatly overestimate true near term certified DBE capacity will result in non-attainment bid day chaos failures to perform andor rapidly increased pricing

The clear conclusion is that at this point in time under the current circumstances without effectively instituted new programs rules procedures that could enhance the certified DBE programrsquos overall effectiveness we believe that the DBE goal should remain at or near 12 As OMWBE documents and demonstrates its future successes in improving access and eliminating capacity barriers only then should the DBE goal be re-evaluated and increased

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 6 of 6

In closing please remember that it is rare that the contracting community is asked our opinion with respect to the WSDOTrsquos DBE policies and so this letter is somewhat a vehicle to highlight collective concerns It is our belief that the majority of the Prime Contractors in Washington state support the objective of creating a level playing field for ready willing and able DBEs

If the level playing field is not yet possible in the absence of the DBE program then the key is to set realistic goals that recognize reflect and address the hard realities and market dynamics imposed by WSDOTrsquos bedrock environment of awarding contracts to the lowest cost responsible and responsive Contractor

Respectfully submitted Washington Asphalt Pavement Association

David Gent Tom Gaetz Executive Director Senior Advisor

Attachment A ndash WSDOT Central Puget Sound Public Works Contracting Projection 2018 - 2022

Con

stru

ctio

n Pr

ojec

t Sta

rts

2018

-202

2S

ound

Tra

nsit

$22

6 B

SD

OT

$08

B

Tran

sit

amp O

ther

s$1

7 B

WS

DO

T$6

7 B

Por

t of

Sea

ttle

$15

B

TOTA

L$3

33

B

Source N

ov 1

9 2

017

pres

enta

tion

to W

APA

Ann

ual M

eetin

g

Attachment A

Work (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Dave Gent - WAPA [mailtodavegentasphaltwacom] Sent Thursday December 7 2017 144 PMTo Bayne Jackie ltBayneJwsdotwagovgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hi again Jackie Irsquom fine thanks and hope you are the same Interesting The Master DBE Directory is the basis for and integral to the conclusions of the DisparityStudy Is it not then part of the information needed to fully review and comment on the DisparityStudy Was it not provided by CHA to WSDOT for review We are trying to fully understand thestudy and if this directory was part of the study why would it need to be obtained by a publicrecords disclosure It should be in the public domain and not restricted from ease of access If you are sure that a public records request is needed Irsquoll start that process but we will need tonote that point of fact when we submit our public comments If you are able to reconsider please let me know Respectfully

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Thursday December 7 2017 126 PMTo Dave Gent - WAPA ltdavegentasphaltwacomgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hello Dave I hope you are doing well

That information would likely be obtained through a public disclosure request Best Regards Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Dave Gent - WAPA [mailtodavegentasphaltwacom] Sent Thursday December 7 2017 113 PMTo Bayne Jackie ltBayneJwsdotwagovgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Jackie Can you please provide an electronic file or provide a weblink for the Master DBE Directory thatColette Holt amp Associates developed for the WSDOT Disparity Study 2017 (first referred to on Page 8of the Disparity Study) I did not see a link to this Master DBE Directory within the study Thanks

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Friday October 27 2017 1118 AMTo Kenyon Wendy ltKenyonWwsdotwagovgt Adams E W ltewadamssystemsclcomgtAdekoyaAndrew ltandrewadekoyabccomgt AlyssaBalllegwagov Anindita Mitraltamitracrea-affiliatescomgt APRISeattlehotmailcom Armstrong CharlotteltCharlieAatgwagovgt Ato Apiafi Architects PLLC ltatoaatoapiaficomgt benzfanwaorgBerntsen Teresa (OMWBE) ltTeresaBomwbewagovgt Billingsley Andrealtbillinawsdotwagovgt Bramlet Erica ltEricaBramletlegwagovgt Brooks Julius

ltBrooksJwsdotwagovgt Brown Jason ltjbrownldccorpcomgt bwallacenwlaborersorgCamden Allison ltCamdenAwsdotwagovgt carlllivingstongmailcom Cerda OscarltCerdaOwsdotwagovgt Christopher Chris ltChristCwsdotwagovgt ckerneycaawagovdanplatinumbusinessgroupcom davegentasphaltwacom David BalltDavidsignsnowmillcreekcomgt Davis Khalia ltDavisKhwsdotwagovgt Davis RaShelle (GOVltrashelledavisgovwagovgt Dayton Jo ltDaytonJwsdotwagovgt ddhondtagcwacomDebbieDriverlegwagov Dennis ltdennisahlkiewitcomgt dmcleodnwlaborersorgdrart6651gmailcom Duncan Enid lthigradeincgmailcomgt EltonltEltonwashingtonstatetruckingcomgt eprincecaawagov flemosldccorpcomfmartineznwmtnmsdcorg geoffshookatkncom glovelady ltgloveladyexcelglovescomgtGrabow Katie ltkgrabowsystemsclcomgt Guilfucci Jackie ltJackieGuilfucciskanskacomgt HealyLinda ltHealyLwsdotwagovgt Higginbotham Breanne ltHigginBwsdotwagovgt HirscheyClaudia ltclaudiahirscheycomcastnetgt Holt Colette ltcoletteholtmwbelawcomgt Huff JohnltHuffJwsdotwagovgt Iniguezchawagov JacksonMaynardlegwagov Jimmy Matta(jmattaalcantarassoccom) ltjmattaalcantarassoccomgt kellywickergovwagov Key EarlltKeyEwsdotwagovgt Kirk Jon ltjkirkwhhnfscomgt Kris Purrier ltkpurrierhwageocomgtleewabuildingtradesorg lesliejonessoundtransitorg Liz Evans ltlevansagcwacomgt LopezErin lterinlopezdeswagovgt Martha Cerna ltMarthaPSLCCORGgt Martin-Arnold EdwinaltMartinEwsdotwagovgt Mary Lerdahl ltmarydbeelectricinccomgt McCarty Hannahlthannahmccartylegwagovgt Melissa L Boyles ltmelissaboylesmwbelawcomgt Metcalf KeithltMetcalKwsdotwagovgt michaelicapaawagov Michelle ltMichelleTTCC26netgt MillarRoger ltMillarRwsdotwagovgt Nakamura Jason ltjasonnakamura1-alliancecomgtNavarroLportseattleorg olliepmt-solutionscom pastorbanksesbctacomacom PatrickHughes ltphugheshughesgroupbizgt Petersen Jodi (FHWA) ltJodiPetersendotgovgtrabbottliunaorg rcarmsteadgmailcom ricemportseattleorg Riley D ltdrileylydigcomgtSeling ltSelingjpfranciscomgt sherryharrisergosynchcom Stell MellodyltStellMwsdotwagovgt terigobintulaliptribes-nsngov timwilliamfactorycom tinaterra-tdicom tkellyldccorpcom tomgaetzmsncom vcollinsacec-waorgverlenejazzmsncom Wang Albert ltWangAatgwagovgt Waugh GregltGregWMaxKuneyComgt Yates Henry ltYatesHWSDOTWAGOVgtCc Tom Gaetz lttomgaetzmsncomgt Dave Gent - WAPA ltdavegentasphaltwacomgt VanCollins ltvcollinsacec-waorggt Daniel Seydel II ltdanplatinumbusinessgroupcomgt MaynardJackson ltJacksonMaynardlegwagovgt Carl Livingston ltcarlllivingstongmailcomgt DonMcLeod ltdmcleodnwlaborersorggt JIMMY MATTA ltjimmymattamsncomgt Prince Ed(CAAA) lteprincecaawagovgt David DHondt ltddhondtagcwacomgt Irene Reyesltgloveladyexcelsupplycompanycomgt McDaniel Craig ltMcDaniCwsdotwagovgtsherryharrisergosynchcomSubject WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Good morning On Monday October 30th WSDOT will be releasing the proposed overall Federal HighwayAdministration Disadvantaged Business Enterprise goal attached for public comment throughDecember 15 2017 This overall DBE goal is based upon the recently completely DBE ProgramDisparity Study WSDOT is proposing a 19 percent overall DBE participation goal on Federal Highway

Administration-funded projects for federal fiscal years 2018 through 2020 DBE goals fortransportation projects that receive federal funds represent a percentage of the value of work inwhich minority- and women-owned businesses should participate Once finalized and submitted toFHWA early next year the goal will be effective through Sept 30 2020

The purpose of the DBE program is to create a level playing field for firms owned and operated bydisadvantaged individuals wanting to participate in federally assisted highway transit and aviationprograms The attached overall DBE goal is for FHWA funded projects WSDOT will be updating theFTA and FAA overall DBE goals in the near future

If you have any questions please contact Earl Key Director of the Office of Equal Opportunity at3607057091 or KeyEwsdotwagov Thank you Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

  • Proof-Of-Publicationpdf
    • Mediapdf
      • AGC
      • Daily Journal
      • Daily Medium
      • DBEGood
      • OMWBE
      • Seattle Medium
      • Tabor 100
      • The Chronicle
      • Tukwila
        • King County
          • Public-Comments-20180111pdf
            • 19 DBE Requirement(1)
            • AGC Comments on Proposed 10 Goad
            • Backstrom Curb amp Sidewalk
            • comments on WSDOT proposed DBE goal
            • Cowlitz County Public Works
            • DBE Contracting goals
            • DBE Goal
            • DBE Program Disparity Study
            • Disparity Study Comments from City of Spokane
            • FW_ WSDOT News - WSDOT seeks comments on propos
            • Proposed DBE Goals
            • RE_ DBE Contracting Goal Comments
            • Re_ DBE Goal Comments
            • Re_ Seydel Dan - WSDOT Disparity Study Present
            • Support for WSDOTs proposed DBE goal
            • Why we need mandatory goals
            • WSDOT DBE Goal - Comment in support
            • WSDOT Proposes DBE goal of 19
            • WSDOT propsed DBE Goals
            • WTS - Disparity Study Comment Letter

Page 2

courts the Study estimated 190 as the base DBE availability figure for Step 1 Step Two Adjustment

Once the base figure has been calculated WSDOT must examine all of the evidence available in its jurisdiction to determine if an adjustment is necessary to the base figure to reflect the level of DBE participation expected absent the effects of discrimination Included among the types of evidence that must be considered are the current capacity of DBEs to perform work on WSDOTrsquos federally-assisted contracts as measured by the volume of work DBEs have performed in recent years and evidence from disparity studies conducted anywhere within WSDOTrsquos jurisdiction to the extent not already accounted for in the base figure If available WSDOT must also consider available evidence from related fields that affect the opportunities for DBEs to form grow and compete including statistical disparities in the ability of DBEs to obtain the financing bonding and insurance required to participate in the Program and data on employment self-employment education training and union apprenticeship programs to the extent relevant to the opportunities for DBEs to perform in the Program The regulations caution that any adjustment to the base figure to account for the continuing effects of past discrimination or the effects of an ongoing DBE program must be based on ldquodemonstrable evidence that is logically and directly related to the effect for which the adjustment is soughtrdquo sect2645(d)(3)

Past DBE utilization

WSDOT considered the current capacity of DBEs to perform work in Washington State as measured by the amount of work performed by certified DBEs on federal-aid projects over the past three years The median for WSDOTrsquos participation for FFY 2012 through FFY 2016 was 151

DBE Participation FFY 2012 152 DBE Participation FFY 2013 164 DBE Participation FFY 2014 141 DBE Participation FFY 2015 117 DBE Participation FFY 2016 151

The WSDOT median past DBE participation for FFY 2012 to 2016 is 151

Evidence from local disparity studies

No other local jurisdictions have conducted studies relevant to WSDOTrsquos contracting activities

Disparities affecting DBE opportunities

The Study explored the Census Bureau data and literature relevant to how discrimination in the Washington State highway industry market and throughout the wider economy affects the ability of minorities and women to fairly and fully engage in WSDOTrsquos prime contract and subcontract opportunities Data from the Census Bureaursquos Survey of Business Owners indicate very large disparities between Minority and Womenrsquos Business Enterprises (MWBE) firms and non-MWBE firms when examining the sales of all firms the sales of employer firms (firms that employ at least one worker) or the payroll of employer firms Data from the Census Bureaursquos American Community Survey (ACS) indicate that Blacks Hispanics Native Americans AsianPacific Islanders Others and White women were underutilized relative to White men Controlling for other factors relevant to business outcomes wages and business earnings were lower for these groups compared to White men Data from the ACS further indicate that non-Whites and White women are less likely to form businesses compared to similarly situated White men The literature on barriers to access to commercial credit and the development of human capital further reports that

Page 3

minorities continue to face constraints on their entrepreneurial success based on race These constraints negatively impact the ability of firms to form to grow and to succeed

While relevant and probative to whether the Department needs to continue to employ race- conscious measures to meet its DBE goal as well as the types of supportive services and other approaches to level the playing field WSDOT should consider the Study recognized that these results are difficult to quantify within the rigors of the strict scrutiny standards

Step 2 Adjustment

WSDOT considered the current capacity of DBE firms to perform work in this market area as measured by the amount of work performed by DBEs on FHWA-assisted projects over the past five years Following the USDOTrsquos Office of Small and Disadvantaged Business Utilizationrsquos Guidance on Tips for Goal-Setting in the Disadvantaged Business Enterprises (DBE) Program the Department combined the step 1 base figure with its median past DBE participation for an average of 171 (step 1 base figure of 190 + median past participation of 151 = 341 divide2 = 171 )

Projection of Race-Neutral vs Race-Conscious Goal Attainment

The regulations require that WSDOT must meet the maximum feasible portion of its overall goal by using race-neutral measures to facilitate DBE participation Ongoing and new initiatives seek to reduce discriminatory barriers increase capacity and level the playing field for the participation of DBEs and other small contractors They are also designed to assist WSDOT in meeting the increased goal for DBE participation by prime contractors and subcontractors

The Study found that DBEs face disparities in full and fair access to WSDOTrsquos FHWA-assisted contracts While not all disparity ratios in every industry code for each racial and ethnic group and White females groups were statistically significant large disparities remain overall Further DBE utilization on state-funded contracts for which no goals were set was extremely low Coupled with the additional anecdotal and economy-wide evidence the Study findings paint a clear picture of a mostly closed market These results strongly suggest that narrowly tailored contract goals remain necessary to ensure nondiscrimination

Past DBE race-neutral participation

To estimate the portions of the goal to be met through race-neutral and race-conscious measures WSDOT evaluated past race-neutral DBE participation as defined in 49 CFR sect 2651(a) WSDOTrsquos median percentage on federal-aid contracts through race-neutral means for FFY 2012- 2016 was 22

Federal Fiscal Year Total DBE

Participation Race-Neutral Participation

Race-Conscious Participation

2012 152 21 131 2013 164 23 141 2014 141 18 123 2015 117 22 96 2016 151 27 125

Therefore WSDOT projects that it will meet 22 of its overall goal through race-neutral measures

Page 4

and 168 of its overall goal through race-conscious contract goals WSDOT will monitor DBE participation throughout the year to adjust its use of contract goals to ensure that their use does not exceed the overall goal

Race-neutral measures to achieve DBE participation

WSDOT will meet the maximum feasible portion of its triennium goal through the race-neutral measures listed below WSDOT will maximize outreach efforts to the DBE contracting community and the use of DBE Support Services to increase the utilization and support of DBEs that participate on upcoming WSDOT projects

Support Services

WSDOT provides the following supportive services to DBEs

Immediate and long-term business management record keeping financial and accounting capabilities

Long-term development assistance to increase opportunities to participate in more varied and significant work and to achieve eventual self-sufficiency

Programs on contracting procedures and specific contract opportunities Assistance in obtaining bonding or financing Assistance to start-up firms particularly in fields with historically low DBE participation Identification of potential highway-related DBEs and prequalification assistance and In an effort to increase awareness of the DBE Supportive Services program WSDOT has

developed a DBE Supportive Services hotline (888) 259-9143 email address dbesswsdotwagov and website wwwwsdotwagovEqualOpportunityDBEhtm

Outreach and Networking

WSDOT engages in a number of outreach efforts to minority and womens organizations to enhance DBE opportunities in Department projects These efforts include but are not limited to

Sponsorship of the annual Regional Contracting Forum held in Seattle Washington in

partnership with state local and federal agencies Last years event attracted approximately 2000 individuals

WSDOT works with organizations such as the Northwest Minority Supplier Diversity Council Women in Construction USDOTs Small Business Transportation Resource Center the Womens Transportation Seminar Tabor 100 the National Association of Minority Contractors Association of General Contractors American Council of Engineering Companies the Office of Minority and Womens Business Enterprises and other groups to promote the DBE Program

WSDOT has established a Washington State DBE Work Group comprised of WSDOT divisions and local agencies among others that will advise WSDOT on DBE issues including but not limited to goal setting outreach training etc

Complaint Procedures

WSDOT has implemented procedures to process complaints of discrimination in the operation of the DBE Program and against contractors receiving WSDOT contracts This will ensure prompt uniform and fair responses to allegations of unlawful conduct so that DBEs non-DBEs and interested persons can have confidence in the integrity of WSDOTs operations

Page 5

WSDOT has implemented the Fraud Hotline to report fraud and abuse in the DBE Program The Fraud Hotline is available at (877) 856-3770 or fraudhotlinewsdotwagov

Prompt Payment

WSDOT continues to enforce its prompt payment provisions and processes It impresses upon its personnel and prime contractors the necessity and importance of meeting these requirements This is accomplished via WSDOT sponsored training for internal staff as well as external contractors which includes a portion on prompt payment

Emerging Contractor Support Initiatives

WSDOT recognizes the necessity of developing new and innovative race-neutral contractor support services and has begun implementing new programs and resources (eg Mentor Proteacutegeacute Program Minority Small Veteran and Womenrsquos Business Enterprise Program remodeled DBE Support Services Program etc) This process involved examining other states supportive services strategies as well as working with construction and minority and women business organizations It also includes soliciting input from the DBE Work Group and from construction and DBE organizations in this and other states

Counting race-neutral and race-conscious participation

Based on a 2012 Disparity Study WSDOT sought and received a waiver of the regulation that White females as a group are presumptively disadvantaged Under the terms of the waiver dollars paid to DBEs owned by such persons are not eligible for credit towards meeting DBE contract goals and WSDOT will count and report FHWA dollars to these firms as race-neutral participation

The 2017 Disparity Study found that White females do not enjoy a level playing field for USDOT- assisted contracts and recommended that firms owned by such persons should be returned to the status of goal credit eligibility WSDOT has sought a rescission of the waiver and awaits USDOTrsquos response Until such time as the waiver is rescinded WSDOT will count all participation by certified DBEs owned by White females as race-neutral participation

Public Participation

Consultation Per 49 CFR sect 2645 WSDOT employs a consultative process requesting input from organizations serving or representing DBEs minority-owned or women-owned businesses state or local offices of procurement federal state or local offices responsible for enforcing civil rights laws local labor offices and organizations etc WSDOT developed the proposed overall annual DBE goal and presents it to the DBE Work Group (individuals from various WSDOT divisions and offices and other state agencies) including

WSDOT Highways and Local Programs Division WSDOT Construction Office Washington State Attorney Generals Office WSDOT Ad amp Award Office WSDOT Public Transportation Division WSDOT Secretary of Transportation WSDOT Consulting Services Office WSDOT Aviation Division

Page 6

Washington State Ferries Washington State Office of Minority amp Womens Business Enterprises

Once the DBE Work Group reviewed and provided comments the overall DBE goal was revised accordingly

Upon DBE Work Group review the goal was then reviewed by the DBE Advisory Group comprised of minority women and trade organizations including but not limited to

Tabor 100 National Association of Minority Contractors Latino Civil Alliance American Council of Engineering Companies of Washington Laborers Local 440 Street Pavers Sewer Watermain and Tunnel Workers Washington Association of General Contractors Washington Asphalt Pavement Association Northwest Mountain Minority Supplier Diversity

Council Tribal Employment Rights Office Womens Transportation Seminar Washington Asphalt Pavement Association Women in Highway Construction

WSDOT followed the public participation requirements outlined in 49 CFR Part 26 This public participation process also included the publication of a press release on October 30 2017 requesting public comment for 45 days This publication also notified interested parties of public meetings to gain and understanding of the overall DBE goal at the following locations

Spokane November 28 Vancouver November 29 Webinar December 5 North Seattle December 7 Pasco December 131

The comments provided by these groups were taken into consideration and no quantitative evidence relevant to the determination of availability or utilization was submitted to revise the overall DBE goal

Published Notice To satisfy the public consultation requirements of 49 CFR sect 2645(d)(2) WSDOT will provided a press release to all media outlets in Washington State and publish the proposed overall annual DBE goal for the triennium in the Seattle Daily Journal of Commerce Included in its press release and publication is WSDOTs request for public comment and inspection of the goal methodology for 45 days from the date of publication

1 The December 13 Public Meeting was added with a separate press release to ensure sufficient statewide notice regarding the Proposed Overall DBE Goal

Page 7

Summary Pursuant to the requirements of 49 CFR sect 2645(a)(2) WSDOT submits this proposed triennium DBE Goal to FHWA for review and approval WSDOT followed the requirements of 49 CFR sect2645 in completing this FHWA DBE goal along with the OSDBU Guidance This proposed DBE Goal of 190 is based upon the availability of ready willing and able DBEs as established by the Disparity Study WSDOT anticipates race-neutral participation of 22 and race-conscious participation of 168

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(httpswwwfacebookcompagesAGC-of-Washington151343784890595) (httptwittercomAGCofWashington)

(httpwwwlinkedincomcompanyagc-of-washington)1200 Westlake Avenue N Suite 301 Seattle Washington 98109 Phone 2062840061 | Fax 2062854546 Privacy Policy (about-usprivacy-policy) | AGC of America Website (httpswwwagcorg)

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WSDOT proposes 19 DBE goal on FHA-funded projectsWSDOT is proposing a 19 percent overall DBE participation goal on Federal Highway Administration-funded projects for federal fiscal years 2018 through 2020 WSDOT will submit the proposal to FHWA early next year following a public comment period Once submitted to FHWA the goal will be effective through Sept 30 2020 (See info on public meetings below)

AGC is reviewing the proposal and considering its response AGC members are encouraged to send comments to AGC Chief Lobbyist Jerry VanderWood(mailtojvanderwoodagcwacom) 3603525000

WSDOT said the 19 goal is based upon the availability of ready willing and able DBEs as established by the WSDOT Disparity Study (See summary of the 2017 disparity study here (httpwwwwsdotwagovsitesdefaultfiles20160509WSDOTDisparityStudyPresentation2017pdf) see full study report here(httpwwwwsdotwagovsitesdefaultfiles20170911OEO-DisparityStudy-2017pdf))

In its report study authors Collete Holt and Associates concluded ldquoThese results provide the agency with the evidence necessary to narrowly tailor its DBE program for federal-aid contracts as required by 49 CFR Part 26 The statistical data and the anecdotal testimony provide a sufficient basis for the continued use of narrowly tailored remedial race- and gender-conscious measures to ensure full and fair access by all firms to WSDOT federally-funded prime contracting and associated subcontracting opportunitiesrdquo

WSDOT will host a series of public meetings to provide opportunities for individuals to comment in person

Spokane 2 ndash 4 pm Tuesday Nov 28 (WSDOT Eastern Region Headquarters 2714 N Mayfair St)

Vancouver 2 ndash 4 pm Wednesday Nov 29 (WSDOT Vancouver Headquarters 11018 NE 51st Circle)

Seattle 2 ndash 4 pm Thursday Dec 7 (WSDOT Northwest Region Headquarters 15700 Dayton Ave N Shoreline)

Those who are unable to attend one of the meetings can participate in a no-cost webinar from 230 ndash 430 pm on Tuesday Dec 5 Advance registration for the webinar is required Those interested in participating should email DisparityStudywsdotwagov (adminDisparityStudywsdotwagov)

Written comments can also be submitted by mail or email to Jackie Bayne Policy amp Reporting Manager Washington State Department of Transportation Office of Equal Opportunity PO Box 47314 Olympia WA 98504-7314 or to DisparityStudywsdotwagov (adminDisparityStudywsdotwagov20)

WSDOT will consider all written comments received through Friday Dec 15 2017

Documents detailing the methodology used for determining the FHWA DBE goals are available at wwwwsdotwagovequalopportunity(httpwwwwsdotwagovequalopportunity) or in person at the Transportation Building 310 Maple Park Ave SE in Olympia

Page 1 of 1WSDOT proposes 19 DBE goal on FHA-funded projects - AGC of Washington

1112018httpwwwagcwacompostswsdot-proposes-19-dbe-goal-on-fha-funded-projects

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October 31 2017

WSDOT proposes new DBE goalsBy JOURNAL STAFF

OLYMPIA mdash The Washington State Department of Transportation is proposing a 19 percent overall DBE participation goal on Federal Highway Administration-funded projects for federal fiscal years 2018 through 2020

WSDOT plans to submit the goals early next year and is seeking comments through Dec 15

To read this story in full or purchase a login subscription

HOME MyDJC BUSINESS CONSTRUCTION REAL ESTATE ARCHITECTURE amp ENGINEERING ENVIRONMENT TECH WEEKEND FEATURES SEATTLESCAPE

Page 1 of 2Seattle DJCcom local business news and data - Construction - WSDOT proposes new D

1112018httpwwwdjccomnewsco12105680html

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()

WSDOT seeks comments on proposed DBE contracting goal for highway projects - Seattle MtgWSDOT seeks comments on proposed DBE contracting goal for highway projects

Comments accepted through Dec 15

OLYMPIA ndash Contractors trade and labor organizations small and disadvantaged businesses and all others who may be interested in working with the Washington State Department of Transportation are invited to comment on the agencyrsquos proposed Disadvantaged Business Enterprise goal for Federal Highway Administration contracts

DBE goals for transportation projects that receive federal funds represent a percentage of the value of work in which minority- and women-owned businesses should participate WSDOT is proposing a 19 percent overall DBE participation goal on Federal Highway Administration-funded projects for federal fiscal years 2018 through 2020

Once submitted to FHWA early next year the goal will be effective through Sept 30 2020

The purpose of the DBE program is to create a level playing field for firms owned and operated by disadvantaged individuals wanting to participate in federally assisted highway transit and aviation programs

Connecting with communities WSDOT will host a series of public meetings to provide opportunities for individuals to comment in person

Spokane meeting was held Nov 28

Vancouver meeting was held Nov 29

Seattle

2 ndash 4 pm Thursday Dec 7WSDOT Northwest Region Headquarters15700 Dayton Ave N Shoreline

Page 1 of 3WSDOT seeks comments on proposed DBE contracting goal for highway projects - Seattl

1112018httpwwwomwbewagovabouteventswsdot-seeks-comments-proposed-dbe-contracting

Date Thursday December 7 2017 - 200pm to 400pm

Other ways to provide comment Those who are unable to attend one of the meetings can participate in a no-cost webinar from 230 ndash 430 pm Tuesday Dec 5 Registration for the webinar is required Those interested in participating should email DisparityStudywsdotwagov (mailtoDisparityStudywsdotwagov)

Written comments can also be submitted by mail or email Jackie Bayne Policy amp Reporting Manager Washington State Department of Transportation Office of Equal Opportunity PO Box 47314 Olympia WA 98504-7314 DisparityStudywsdotwagov(mailtoDisparityStudywsdotwagov)

Documents detailing the methodology used for determining the FHWA DBE goals are available for review at all WSDOT region headquarters offices and at the Transportation Building 310 Maple Park Ave SE Olympia They are also available online at wwwwsdotwagovequalopportunity (httpwwwwsdotwagovequalopportunity)

WSDOT will consider all written comments received through Friday Dec 15 2017

WSDOT keeps people businesses and the economy moving by operating and improving the states transportation systems To learn more about what were doing go to wwwwsdotwagovnews (httpwwwwsdotwagovnews) for pictures videos news and blogs Real time traffic information is available at wwwwsdotcomtraffic(httpwwwwsdotcomtraffic) or by dialing 511

Americans with Disabilities Act (ADA) Information Accommodation requests for people with disabilities can be made by contacting the WSDOT DiversityADA Affairs team at wsdotadawsdotwagov (mailtowsdotadawsdotwagov) or by calling toll-free 855-362-4ADA (4232) Persons who are deaf or hard of hearing may make a request by calling the Washington State Relay at 711

Title VI Statement to Public It is WSDOTrsquos policy to assure that no person shall on the grounds of race color national origin or sex as provided by Title VI of the Civil Rights Act of 1964 be excluded from participation in be denied the benefits of or be otherwise discriminated against under any of its federally funded programs and activities Any person who believes his or her Title VI protection has been violated may file a complaint with WSDOTrsquos Office of Equal Opportunity For additional information regarding Title VI complaintprocedures andor information regarding our non-discrimination obligations please contactOEOrsquos Title VI Coordinator at 360-705-7090

Page 2 of 3WSDOT seeks comments on proposed DBE contracting goal for highway projects - Seattl

1112018httpwwwomwbewagovabouteventswsdot-seeks-comments-proposed-dbe-contracting

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aacc~~949lt7BB7lt3726C4ltG3401324ltB7ltj=9

13 $amp()(

(+amp13ampampampampampamp$amp -011234567

89lt=gtABCDgtEF39=GHIJK1L0M1JLNO1L040K420PJLJLQ0K5R015JKNON70220K445N04S0K10Q4P6N5KNNN0K4022J1TLNUTJ70VP5K1LN145KUJLW5KQU51T1TX0NT5KQ1JK101YZ0L17K1J[CL0KNZJL1015JKXYgtC]0L5KS5141JMJ77K1JK1T0QKMVNZLJZJN4Y5N04S0K10Q4_6N5KNNK1LZL5NY_]QJ02[JL4L02a5QTU0VG475K5N1L015JKMJK1L0M1NbY_QJ02N[JL1L0KNZJL1015JKZLJcM1N1T01LM5S[4L02[6K4NLZLNK10ZLMK10QJ[1TS026J[UJLW5KUT5MT75KJL51Vd0K4UJ7KdJUK4P6N5KNNNNTJ624Z0L15M5Z01bXYgtC5NZLJZJN5KQ0efZLMK1JSL022Y_Z0L15M5Z015JKQJ02JK4L02a5QTU0VG475K5N1L015JKd[6K44ZLJcM1N[JL[4L02[5NM02V0LNghei1TLJ6QTghghbgtKMN6P751141JaXG0L2VKj1V0LO1TQJ02U522P[[M15S1TLJ6QTZ1bkhOghghbCTZ6LZJNJ[1TY_ZLJQL075N1JML0102S2Z20V5KQ[524[JL[5L7NJUK40K4JZL014PV45N04S0K10Q45K45S54602NU0K15KQ1JZ0L15M5Z015K[4L022V0NN5N14T5QTU0VO1L0KN510K40S5015JKZLJQL07NbXYgtCU522TJN10NL5NJ[Z6P25M715KQN1JZLJS54JZZJL16K515N[JL5K45S54602N1JMJ77K15KZLNJKlZJW0KOgHmZb7bJKC6NbOAJSbgi01XYgtC0N1LKQ5JKa04n60L1LNHgoemA30V[05L1bOZJW0Kplt0KMJ6SLOgHmZb7bX4NbOAJSbgf01XYgtClt0KMJ6SLa04n60L1LNHeeheiAqeN1I5LM2Olt0KMJ6SLp0112OgHmZb7bCT6LNbOYMbo01XYgtCAJL1TUN1Q5JKa04n60L1LNHeqohhY0V1JKGSbAOTJL25Kbrstuvwxyz|v|~u|usCTJNUTJ0L6K0P21J011K4JKJ[1T715KQNM0KZ0L15M5Z015K0KJdMJN1UP5K0L[LJ7glkhHmlkhZb7bC6N40VOYMbqbQ5N1L015JK[JL1TUP5K0L5NLn65L4bCTJN5K1LN145KZ0L15M5Z015KQNTJ6247052Y5NZ0L51V164VUN4J1bU0bQJSbXL511KMJ77K1NM0K02NJPN6P75114PV7052JL7052l0MW5_0VKO9J25MVZJL15KQ30K0QLOX0NT5KQ1JK101YZ0L17K1J[CL0KNZJL1015JKOgt[[5MJ[n602gtZZJL16K51VO9bgtb_JjmokemOgt2V7Z50OXGfiqhmdokemJL705241JY5NZ0L51V164VUN4J1bU0bQJSbYJM67K1N410525KQ1T71TJ4J2JQV6N4[JL41L75K5KQ1TaXGY_QJ02N0L0S0520P2[JLLS5U01022XYgtCLQ5JKT04n60L1LNJ[[5MN0K4011TCL0KNZJL1015JK_65245KQOkeh30Z290LWGSbOgt2V7Z50bCTV0L02NJ0S0520P2JK25K01UUUbUN4J1bU0bQJSn602JZZJL16K51VbXYgtCU522MJKN54L022UL511KMJ77K1NLM5S41TLJ6QTL540VOYMbeqOgheob iexclcentpound currenGPJ611TG61TJL G4SL15N7K1N

13

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AringEgraveAacuteEacuteAringcentAEligEcircEumlAcircCcedilIgraveEumlAacuteAacuteAgravecentfrac14frac12IacuteAacuteAgravefrac34AacuteIcircCcediliquestAEligiexclIumlAcircAacuteEumlETHEgraveNtildeOgraveOgraveEcircAacuteAEligIacuteiquestAEligfrac14AacuteAacuteyenAacuteiquestAEligCcedilAumliquestiquestAringiquestAacuteAEligAacuteiquestAEligAringAcircAacuteAtildeAringAtildeEcircAcircCcedilETHAtildeEcircAringiquestiquestAEligCcedilAtildeOacutefrac34Aacutefrac34CcedilAumliquestAEligCcedilAacute EacuteEacuteEacuteOcircOtildeEgraveOumlOcircOumlETHtimesIgravefrac12Agravefrac34AtildeiquestAEligfrac34iquestAtildeAgrave AringIgraveAacuteEgraveAringiquestEcircEumlAcircCcedilEgravefrac12CcediliquestAacute AacuteAgravefrac34AtildeiquestAEligEumliquestiquestAacutefrac34frac34frac34ETHCcedilAacuteAringAacuteiquestAEligCcedilAumlAringOslashCcediliquestAacuteOslashIgraveNtildeNtildeIgraveOgraveETHUgraveOgraveOgravefrac12AgraveAcirc AacuteAgraveCcedilAringiquestAacuteAumlAacuteEcirciquestAEligCcedil iquest iquestAringfrac34AEligAEligAacuteAtildeEcirciquestAEligAacuteCcediliquestAEligiquestiquestAcircfrac34AEligAacuteiquestAEligCcedilAacuteAacuteiquestAumliquestAacuteiquestAElig EcirciquestAacuteAgraveiquestCcedilAgravefrac34EcircEumlAacuteAEligiquestAacuteAEligiquestAacuteiquestAEligCcedilAringCcedil Ecirc AcircAEligAacuteAEligAacuteAacuteiquestAEligUacuteAumlAacuteAEligAacuteAumlAEligAacuteCcedil AacuteAgraveAcirc frac34UcirciquestAEligfrac34AgraveiquestAumlAgraveAringiquestAEligiquestAacuteEcircOcircAEligfrac34AringAEligOcircfrac34AEligAtildeAcirciquestAEligAgraveAcircAacuteiquestAumliquestAacutecentfrac14frac12iquestiquestAEligCcedilOtildeAumlAEligAacuteAacuteiquestAumliquestAacuteiquestAEligCcedil iquestAacuteiquestAEligAringiquestAEligiquestAacuteAacuteiquestAEligUumlYacute AcircAEligUacuteAumlAacuteAEligETHtimesOgraveUgraveAumlAEligAacuteCcedil iexcliquestCcedilAgravefrac34EcircAringiquestAEligiquestAacuteAacuteiquestAEligUumliexclcentYacute AcircAEligUacuteAumlAacutefrac12AgraveCcedil iquestAumlEcircOtildeOgraveETHOtildeAacuteAgraveAcircCcedilAgraveOtildeOgraveETHtimesUumlAumlAacuteETHEumlOtildeOgraveETHETHEumlAacuteAgraveAcircCcedilAgravefrac14AacuteIgraveOgraveEumlOtildeOgraveETHtimesYacutefrac12AgraveCcediliquestAEligAacuteiquestAringAEligfrac34iquestiquestUcircEcircAumlAgraveAEligCcedil AacuteAacuteAgraveAumlAringAacuteiquestAElig centfrac14frac12THORNiquestiquestAacuteEcircAacuteAcircEcircfrac12AgraveAacuteAcircEcircfrac34iquestAcircAacuteiquest AringiquestAEligiquestAacuteEcircOcircAEligfrac34AringAEligOcircfrac34AEligAtildeAcirciquestAEligAumlAtildeAEligiquestAtildeAacutefrac34UcircAElig Ecirc AcircAEligAacuteAEligAacuteAacuteiquestAEligUacuteAumlAacuteAumlAcircAringAEligAacuteAacuteiquestiquestAEligCcedilAacuteAgraveAringAacuteAgraveCcedilEcircAcirc AacuteAringiquestAEligiquestAEligCcedilAacuteAgraveAEligiexclcentCcediliquestAtilde iquestfrac34Aacutecentfrac14frac12CcediliquestAEligAgraveIumlAcircAacute iquestAumlAEligAacuteAacuteAgravefrac12AEligAacuteAacuteiquestAEligAcirciquestiquestAEligCcedilEumlIgraveETHOgraveyenUcircfrac14iquestAEligEcircAringiquestfrac12AgraveEcirciquestAtildeAEligiquestAEligAacutedegdegdegraquodeg1ordf-raquodegraquolaquoregszligXagraveKsup3sup3Z-Kcopy0-Lszligraquocentfrac14frac12frac34iquestAumlAEligiquestfrac34iquestAacuteAacuteAEligAumlAringAringAEligAacuteEumlfrac34AacuteAgraveAringAacuteiquestAacuteAgraveAacuteiquestiquestAacuteAgraveIumlAcircAEligAacuteiquestAacuteAacuteiquestAEligAumlAacuteEumlAtilde AcircAtildeAringiquestAacuteAacuteiquestAEligCcediliquestAacute iquestAEligCcedilAacuteAacuteAgraveAEligiexclcentcentiquestAacuteAacuteAEligAumlAringAringAEligAacutefrac34iquestAtildeAumlAumlAacuteAcircAEligAacuteiquestAcircCcedilIgraveETHEumlOtildeOgraveETHETHEumlAEligAgraveAcircAtildeAEligAacuteAacuteaacuteacircAumlUcirciquestEcircAEligEumlyencentatildeAEligAacuteAumlAacuteatildeAringiquestAEligAuml iquestAumlcentAgraveiquestAEligCcedilAacuteAEligfrac14AacuteAacuteAacuteAringAEligAacute frac12AEligAacuteAacuteiquestAElig iquestAuml IumlAcircAacuteAcircAEligiquestAacuteEcircaumlRSaringPREcircAringiquestOWaeligccedilegraveeacuteNRecircSaringPRAringiquestaacute)LcopyXJeumldeg1ordf-raquodegraquolaquoreg

13

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)))13 +++ --------- -----+ 01234567894lt486=4gt4428050lt0A7BC3164C7D - + 13EF$ampGHH(HI-+E13 +HJ4gt2KAL62127CMN=gt4513 - OPQ R(amp++ S +TU13 OPI++ OPQF$ampGHH(F(G$ampVWWXYZZ[]

httpwwwchronlinecomnewswsdot-seeks-public-comment-on-disadvantaged-business-enterprisearticle_f5c753ea-be61-11e7-966c-972f6769d8a6html

WSDOT Seeks Public Comment on Disadvantaged Business Enterprise By The Chronicle Oct 31 2017

The Washington State Department of Transportation will be accepting public comments about the departmentrsquos proposed Disadvantaged Business Enterprise goal for federal contracts

The goal is for transportation projects receiving Federal Highway Administration funds to have 19 percent of the value of work done by minority or women-owned businesses during the 2018 through 2020 fiscal years

ldquoThe purpose of the DBE program is to create a level playing field for firms owned and operated by disadvantaged individuals wanting to participate in federally assisted highway transit and aviation programsrdquo a press release from WSDOT said

A series of public meetings will be held to discuss the goal in Spokane Vancouver and Seattle

For those who are unable to attend the in person meetings a webinar will be hosted from 230 to 430 pm Thursday Dec 5 The webinar is free but registration is required To register email DisparityStudywsdotwagov

Page 1 of 2WSDOT Seeks Public Comment on Disadvantaged Business Enterprise | News | chronlin

1112018httpwwwchronlinecomnewswsdot-seeks-public-comment-on-disadvantaged-business-

Written comments can also be submitted by mail or email to Jackie Bayne policy and reporting manager for the department of transportation at Washington State Department of Transportation Office of Equal Opportunity PO Box 47314 Olympia 98504 or by email at disparitystudywsdotwagov Comments will be considered through Dec 17 2017

More information about the goal is available at all regional offices or at the main office in Olympia located at the Transportation Building 310 Maple Park Ave SE Olympia More information can also be found online at wsdotwagovequalopportunity

Page 2 of 2WSDOT Seeks Public Comment on Disadvantaged Business Enterprise | News | chronlin

1112018httpwwwchronlinecomnewswsdot-seeks-public-comment-on-disadvantaged-business-

larr Halfway there SR 8 fish barrier removal reaches milestone New SR 26 traffic cameras available rarr

WSDOT seeks comments on proposed DBE contracting goal for highway projects

December 1 2017 | No Comments

WSDOT is seeking comments on proposed participation goals for Disadvantaged Business Enterprises on upcoming Federal Highway Administration contracts a Yakima meeting has also been added to the schedule Source WSDOT Permalink WSDOT seeks comments on proposed DBE contracting goal for highway projects

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Page 1 of 3WSDOT seeks comments on proposed DBE contracting goal for highway projects | Tukw

1112018httptukwilatowingcom20171201wsdot-seeks-comments-on-proposed-dbe-contracting

From Liz EvansTo Bayne JackieSubject AGC Comments on Proposed 10 GoadDate Tuesday December 12 2017 50314 PMAttachments WSDOT Proposed Goal - AGC Comments FINALdocx

Hi there Jackie Attached are AGCrsquos comments on WSDOTs proposed 19 goal We will also be mailing you a copy Thanks for the opportunity to comment and we hope you find it helpful Regards Liz Liz Evans CAE Northern District ManagerAGC OF WASHINGTONTel 3602238757 | wwwagcwacom JOIN US for the 2018 AGC of Washington Annual Convention amp Technology Expo Jan 26

CUsersmwillmsPicturesInland AGCLogo_RGB_Half_5in

December 12 2017

Page 5

December 12 2017

VIA EMAIL amp US MAIL

Ms Jackie Bayne Policy amp Reporting Manager

Washington State Dept of Transportation

210 Maple Park Ave SE

PO Box 47314

Olympia WA 98504

RE WSDOT Proposed FHWA Triennium Disadvantaged Business Enterprise Goal

Dear Ms Bayne

This letter summarizes the views of the Associated General Contractors of Washington and Inland Northwest Associated General Contractorsrsquo (hereafter referred to collectively as AGC) regarding the Washington State Department of Transportationrsquos (WSDOT) recently proposed FHWA Triennium Disadvantaged Business Enterprise (DBE) Goal (the ldquoProposed Goalrdquo) AGC shares WSDOTrsquos commitment to continue the promotion of DBE firms but AGC is concerned the Proposed Goal which is a significant increase from the previous goal and actual utilization may have unintended consequences and could impose significant burdens on both prime contractors and DBE contractors alike AGC requests WSDOT reconsider its Proposed Goal and adjust the Proposed Goal to account for inevitable availability and capability issues including the lack of a formal retraction of the non-minority woman owned business waiver that makes up over half of the Proposed Goal Implementing an unachievable goal will only be to the detriment of the DBE program

1 AGCrsquos Membersrsquo Interest in WSDOTrsquos Proposed Goal

Together AGC of Washington and Inland Northwest AGC represent and serve the commercial industrial and highway construction industry These professional associations of commercial contractors are comprised of more than 900 members who have joined together to enhance the performance of their industry and build a better climate for construction operators many of which are small and closely held businesses

Like WSDOT AGC is firmly committed to the principals of equal opportunity and promoting efforts to ensure minority women and veteran owned businesses are properly represented In both its political advocacy and membership programs AGC has demonstrated its commitment to increasing the representation of disadvantaged groups in the construction industry as both workers and owners of firms For AGC this is both an issue of principles and a practical one The construction industry as a whole is facing a critical shortage of workers and it is imperative that the industry attract new participants Among AGCrsquos activities demonstrating this commitment are the following

middot AGC has an ongoing ldquoContractor Exchangerdquo program through which small minority- and women-owned subcontractors are offered one-on-one networking opportunities with established general contractors

middot The AGC Education Foundation provides financial support to construction-related programs in K-12 schools and conducts outreach specifically targeted at low income disadvantaged and female students

middot More than 2500 students most from inner-city schools participate in annual AGC-sponsored Construction Career Days in King Pierce and Spokane Counties

middot AGC supports the Pre-Apprenticeship Construction Training (PACT) program at Seattle Vocational Institute This program is focused on preparing underrepresented communities to be highly qualified applicants and successful apprentices in the construction trades

middot AGC is a sponsor of the Turner School a training course for minority- and women-business owners in the construction industry

middot AGC supports the National Association of Women in Construction (NAWIC) which provides professional development and other services to its members

middot AGC routinely supports legislative efforts aimed at supporting small businesses and encouraging small business participation

middot AGC recently formed a Diversity and Inclusion Committee comprised of both prime and DBE participants The purposed of the committee is to expand opportunities for DBE members and to help AGC consider diversity in decision-making Recently AGC approved a deeply discounted introductory dues structure for certified DBE members

middot AGC is a WSDOT partner on the new mentorproteacutegeacute program

AGCrsquos experience has been that the most effective approach is to help make emerging businesses successful through outreach training and public policies that will grow their capacitymdashnot by imposing mandates without clear evidence as to the mandates feasibility

2 WSDOTrsquos Proposed Goalrsquos Impacts To The Construction Industry

WSDOTrsquos Proposed Goal is 190 The Proposed Goal is based upon the recent Collete Holt amp Associates (CHA) Disparity Study released in 2017 With respect to availability the Disparity Study reports the following weighted availability for FHWA-Funded projects

Thus the 190 goal factors in Black Hispanic Asian Native American and White Women into its availability As indicated however this 19 goal raises a number of concerns

a WSDOTrsquos 19 Proposed Goal Represents a Significant Increase Without Concrete Evidence of Available And Capable DBE Firms

First WSDOTrsquos Proposal Goal of 190 represents a significant increase as compared to actual DBE participation (141 in 2014 117 in 2015 and 151 in 2016) as well as the last FHWA proposed goal of 116 for 2014-2018 See WSDOTrsquos Proposed Goal and Interim FHWA Overall DBE Goal Methodology FFY 2014-2018 The Proposed Goal is 74 more than the last goal which represents a 638 increase and a 52 increase over the average actual utilization for 2014-2016 While Contractors were exceeding the previous 116 goal this is primarily based on the fact that WSDOT previously requested a waiver to consider non-women-owned businesses and the waiver was not granted and effective until June 2017 (meaning that for 2014-2016 women were counted towards race-conscious goals and inevitably a higher overall percentage of DBE firms were utilized)

Contractors struggle to meet present DBE goals due to the relatively low availability of experienced and certified DBE firms By increasing the goal WSDOT is understandably trying to increase the participation of underrepresented firms Drastically increasing the goals (by over 5 of actual utilization) without concrete evidence that there is sufficient availability andor capability of such firms however will have the opposite effect Notably this lack of availability and capacity of DBE firms was discussed in detail in the Disparity Study For example the CHA Disparity Study notes a number of concerns of DBE firms while technically ldquoavailablerdquo with respect to the goal percentages are unable to meet the requirements necessary to fulfill the contract including purchasing the equipment necessary having available labor and ability to meet insurance and financing requirements Thus while there may be ldquoavailablerdquo firms there is not clear evidence (and if fact evidence to the contrary) that those available firms are capable and available to perform the majority of the FHWA-Funded contracts let by WSDOT

An additional example affecting DBE capability and availability that is not factored into the CHA Disparity Study or WSDOTrsquos Proposed GOAL is DBE ability to enter into Project Labor Agreements (ldquoPLAsrdquo) WSDOT has indicated their interest in pursuing a PLA AGC Members have raised concerns based on repeated experiences that many DBE firms due to the administrative and cost impacts refuse to enter into PLAs precluding those firms from performing certain work or increasing costs Again this lack of ability (or refusal) to perform should also be factored into WSDOTrsquos Proposed Goal which is not currently the case

b The Proposed Goal Does Not Account For The Current Non-Minority Woman Owned Business Waiver Still In Place

Second despite the significant increase WSDOT does not account for the current waiver of non-minority women owned businesses that remains in place As noted in WSDOTrsquos proposal comments WSDOT previously sought and received a waiver of the regulation that White females as a group are presumptively disadvantaged This waiver was heavily criticized by many including AGC and the results of the most recent CHA Disparity Study confirmed that White females are presumptively disadvantaged and do not enjoy a level playing field for USDOT-assisted contracts Therefore the CHA Disparity Study recommends that this group be returned to the status of goal credit eligibility WSDOT has sought a recession of the waiver but has not yet to our knowledge received a rescission of the waiver Nevertheless the 19 Proposed Goal still includes White women In fact of the 19 availability percentage White women represent 103 (over half) Accordingly for WSDOT to proceed with the 19 goal WSDOT must receive the rescission of the waiver for this goal to be even remotely possible to achieve If the rescission is not received the Proposed Goal must be adjusted

C The Proposed Goal Does Not Account For Availability Differences Across The State

Third the Proposed Goal does not account for availability difference across the state Eastern Washington contractors with an even scarcer pool of available and qualified DBE firms in the area as is the case now will be forced to subcontract to Western Washington firms paying transportation and per diem premiums for such work The CHA Disparity Study again provides numerous excerpts of anecdotal evidence demonstrating that the goals in Eastern Washington are too high A few of the contractor comments on the topic are as follows

When you apply those same goals to a different geographic region a different project site for a large firm to meet those goals is difficult because theres not necessarily the expertise in parts of the project that were submitting on

Theres very few DBEs over here [in Eastern Washington] Next year theres going to be even more work over here What are we going to do with all these goals We always meet the goals like I said youve got three four DBEs over here to do all the work and then they cant perform

There are just no [minority-owned] DBEs available in eastern Washington

See CHA Disparity Study at p 54 Again these are factors that should be taken into account in developing the Proposed Goal or at the very least its application WSDOTrsquos Proposed Goal however is silent as to this significant issue

When the lack of available firms with the capacity to perform significant DBE projects is coupled with the increased goals the price of WSDOT contracts will inevitably increase to the significant detriment of Washington taxpayers and the public entities Inevitably with a lack of available qualified firms the lack of competition will become evident and small qualifying contractorsrsquo prices will increase due to supply and demand principles as they become selected for projects and less able to take on additional work These increased DBE contract values will be passed on to the public agency and taxpayers which translates into fewer dollars available for the sorely needed and promised infrastructure upgrades In addition the instance of bid protests will inevitably increase potentially delaying projects and further diverting agency resources from badly needed infrastructure upgrades to resolving unnecessary disputes or rebidding the projects altogether

Finally faced with such drastic and potentially impossible requirements if adjustments are not made contractors may focus more on demonstrating good faith efforts Both a contractor who meets the required goal and a contractor that demonstrates good faith efforts are eligible for award It is likely that the contractor relying upon good faith effortsmdashwho will have a lower price than the other contractor who sacrificed price to actually meet the goalmdashwill be selected by the public agency This outcome will erode the total percentage participation of eligible firms and would clearly be inapposite of WSDOTrsquos intentions

3 Conclusion and Request

AGCrsquos members have asserted these and multiple other concerns Implementing an increased goal across the state and all contracts without clear evidence of available DBEs capable of performing the work and meeting the project requirements will have significant and far-reaching impacts on the construction industry many of which work against the aim of the Proposed Goal itself AGC requests WSDOT reconsider its Proposed Goal of 19 and make adjustments to account for the capability of DBE firms the lack of a rescission of the non-minority waiver and the lack of available DBE firms in parts of the state This Proposed Goal and its impacts on the construction industry will be irrevocable and will be to the detriment of taxpayers It is prudent to address these adjustments before implementing the Proposed Goal

Very truly yours

David DrsquoHondtCheryl Stewart Executive Vice President AGC of WashingtonExecutive Director Inland Northwest AGC

AGC of Washington bull 410 11th Avenue SE 203 Olympia WA 98501

Inland Northwest AGC bull 4935 E Trent Avenue Spokane WA 99212

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image4png

image5jpeg

From Steve SmithTo WSDOT Disparity StudyCc Bayne JackieSubject 19 DBE RequirementDate Thursday December 14 2017 31947 PMAttachments DBE List and NAICS Listingpdf

Disparity Committee I recently read in The Daily Journal of Commerce that WSDOT plans to adopt a 19 DBEstandard for all FHWA funded projects early next year Our company S amp K Painting Inc is abridge painting company which is based in and works exclusively in Oregon and Washington Ihave been the owner of this firm since 1978 when it was first established My concerns aboutthe proposed 19 DBE requirement is as follows 1 There are very few opportunities for subcontract work on bridge repaint jobs These jobsare usually limited to cleaning and painting the bridge The only other facet of the project istraffic control which is almost always 3 or less of the project total cost The traffic controldoes provide a very good subcontracting opportunity 2 The NAISC code of 238320 includes bridge painting but also includes house painting wallcovering rust proofing etc which have almost no similarities to bridge painting When thiscode is used to determine the number of available firms (DBE or otherwise) that are availablefor bridge painting project this badly skews the numbers I would suggest that bridge paintingcontractors make up less than 5 of all firms in NAISC code 238320 3 If future WSDOT bridge painting projects require a 19 DBE participation A The qualified pool of DBE subcontractors available to submit pricing on any facetother than traffic control will be very limited I reviewed a list of 19 certified DBE firms listedunder painting at the WSDOT website and only recognized one firm from past projects B The number of prime bidders and competition will fall The state will incur highercosts due to this fact C Prime bidders will be forced to subcontract unqualified contractors just to be eligiblefor contract awards This will likely reduce the quality of the finished project Thank you for considering my concerns I may not have verbalized my thoughts as well as Iwould have liked but I have been in this business for almost 40 years and truly believe what Ihave said Sincerely

Steve Smith President

SampK Painting incP O BOx 390clacKamaS OregOn 97015Phone (503) 557-5544Fax (503) 557-5566Cell (503) 260-5280Steveskpaintingcom

From Lei WuTo Bayne JackieSubject comments on WSDOT proposed DBE goalDate Thursday December 14 2017 94925 PM

To Whom It May Concern

Below is my comments

The WSDOT recommended DBE Goal for FHWA contracts of 190 is a small andimportant increase that can further achieve equity in WSDOTFHWA contracting I am insupport of the 19 DBE Goal

I also want to express my appreciation for the thoroughness of the WSDOT Disparity studyand how the study disclosed the disparity in WSDOT contracts that do not have a DBE orWBE goal ndash further reinforcing that all women-owned firms and minority owned firms faceequity issues

I remain concerned with the methodology required by the Code of Federal Regulations andcase law because of the dependence on the availability of firms in the calculation Anunintended consequence of removing either gender or race from the goal is that many of thesefirms would go out of business the availability decreases and the formula then results in asmaller DBE goal

Thanks

Lei

Lei Wu PE AICP

Principal CSL Consulting

LeiWucsl-consultingnet

(425)562-6275

From Stephanie SimpkinsTo WSDOT Disparity StudySubject DBE Contracting goalsDate Wednesday November 29 2017 20259 PM

My name is Stephanie Simpkins and I own North Star Enterprises It is a large womanowned traffic control company located in Spokane Washington My mother founded thecompany in 1984 and I have worked in this family owned business most of my life Ipurchased the business from her in 2013 and have been sole owner since then My company thrived under the Disadvantaged Business Enterprise (DBE) Programimplemented by Washington Department of Transportation and administrated by United StatesDepartment of Transportation What started as a small business with one truck and a fewemployees has grown over the years to be one of the largest traffic control companies in thestate and employee countless people every construction season It has not been an easy roadover the years being a woman in the construction industry never is and it is hard to say wherewe would be now if it werenrsquot for the assistance of the DBE program As you know in June of 2017 majority women were removed from the DBE program basedon a disparity study conducted in 2012 On March 2014 Washington Department ofTransportation requested a wavier to remove majority women from the DBE program Thishas had an immediate and drastic impact on my business and all who work for me From themoment the waiver was approved and my company could no longer be used as a condition ofaward at bid time I began losing work Most recently the 2018 North Central Region ChipSeal which we have worked on for the last 10 years This contract provides work forapproximately 40 employees for the entire construction season I have already been told byseveral contractors that with such a high UDBE goal they wont even be able to consider mefor this project This loss along with several other smaller contracts to date are painting avery dismal future for my business With all of this turmoil surrounding the future of my business I find it frustrating to say theleast that WSDOT has chopped me off at the legs by not allowing my firm to count for theCOA but can use the little participation I may still contribute to help them reach their overallstate goal How is this fair If the contractors canrsquot utilize my business than neither shouldWSDOT As far as setting future state DBE contracting goals it looks as if the bar will beraised once again all while excluding the largest subset of useable DBErdquoS To me raising theoverall state goal at this time (which is already challenging to meet) with women DBErsquosexcluded from the program seems horribly ill timed

From Karen R BannishTo Bayne JackieSubject DBE GoalDate Tuesday December 5 2017 32549 PM

Hello Jackie ndash thank you for the webinar today concerning the proposed Overall DisadvantagedBusiness Enterprise Goal for the Federal Highway Administration I understanding the DisparityStudy much better now and checked the document you mentioned on the WSDOT website Pacific County is located in the Southwest corner of the State of Washington The tip of the LongBeach Peninsula would be 2 frac12 hours from Interstate 5 Our federal work primarily includes strictlyoverlay projects with 12 or fewer items of work included in the contract When bidding a project(our contracts are usually less than $500000) we sometimes received a single bid from the process Due to our proximity and the small cost for the work it is difficult to entice DBE participation Thereare simply no items of work that can be performed Having a mandatory DBE goal placed upon theproject in a rural area simply to meet the disparity guidelines will only increase the cost of theproject We feel the goals should be set in balance with the cost of the project and the items of work and notsimply directed to meet the overall goal

Karen BannishSenior Engineering TechnicianPacific County Department of Public Works211 North Commercial StreetRaymond WA 98577(360) 875-9368

From Dawn EgbertTo Bayne JackieSubject DBE Program Disparity StudyDate Tuesday December 5 2017 23825 PM

Hi JackieThank you for the great information on the call today You talked about the small works rosterbriefly We had a conversation in our office today about small contractors who are signed up on thePort of Vancouverrsquos small works roster Our team has had opportunity to talk to some of thecompanies on our roster who are women owned or minority owned businesses but they arenrsquotsigned up as a DBE firm When asked about that theyrsquove mentioned that they donrsquot want to fill outthe additional paperwork required to obtain the certification as a DBE As for the DBE goal at 19 it doesnrsquot seem to present an issue for the majority of our projects ndashespecially those where we would apply FHWA funds if granted However if we did happen to have aproject that didnrsquot include classifications of work where DBE certified participants are availablewould there still be an exception or a good faith efforts clause Thanks again for your time Dawn EgbertProcurement Services Manager3103 NW Lower River Road Vancouver WA 98660Direct 3609921102 | Cell 360448-9867 | Main 3606933611 | Fax 360735-1565degbertportvanusacom | wwwportvanusacom | available port properties Leadership | Stewardship | Partnership

From Feist MarleneTo WSDOT Disparity StudyCc Simmons Scott M Twohig KyleSubject Disparity Study Comments from City of SpokaneDate Friday December 15 2017 52226 PMAttachments image010png

image011pngimage012png

December 15 2017 Jackie BaynePolicy amp Reporting ManagerOffice of Equal OpportunityWashington State Department of TransportationPO Box 47314Olympia WA 98504-7314 RE Proposed DBE Contracting Goal for Highway Projects Dear Ms Bayne The City of Spokane would like to provide comments related to proposed DisadvantagedBusiness Enterprise Goal for Federal Highway Administration (FHWA) contracts by theWashington State Department of Transportation (WSDOT) Office of Equal Opportunity Manyof our projects receive funding from FHWA and as such the proposed new goals areapplicable to City work The City is supportive of the programrsquos purposemdashldquoto create a level playing field for firmsowned and operated by disadvantaged individuals wanting to participate in federally assistedhighway transit or aviation programsrdquo However the City is concerned about the ability to achieve the proposed utilization rate of upto 19 percent for DBEs in Eastern Washington considering the low number of DBEs in ourregion and the record construction under way in the City and in our region WSDOTrsquos DBE Program Disparity Study notes ldquoContractors in Eastern Washington repeatedlyreported that the goals on projects in their area are too highrdquo The Inland NorthwestAssociated General Contractors group notes that only about 12 DBEs in construction fields areavailable in the greater Spokane area Meanwhile the City has performed record construction in each of the last three years withproject totals hovering around $100 million Our City work has been bolstered by anaggressive program to improve water quality in the Spokane River Our local school districtsand our neighboring jurisdictions also have aggressive construction programs right now

Additionally we expect WSDOTrsquos work in this region to accelerate as North Spokane Corridor(NSC) construction proceeds At times our area is reaching the limits overall of our contractingcommunity the City has worked to release its projects in the first quarter of the year as muchas possible to lock in contractors and receive better pricing The capacity of existing DBEs in our region simply cannot meet that current high demand Some DBE firms are tempted to agree to more work in these times but we have found that insome cases DBEs have stretched themselves too thin On two recent City projects generalcontractors were unable to meet DBE goals as a result of DBE firms that couldnrsquot fulfill theircommitments for providing personnel or equipment It also seems implausible to expect DBEs from the West Side to mobilize teams to work on Cityof Spokane projects in large numbers In fact the Disparity Studyrsquos author responded at arecent meeting on this topic that a DBE from the West Side only very rarely completes workon the East Side of the state We would also be concerned about moving the good-paying jobs that construction providesoutside of our region The Cityrsquos median household income is $44350 considerably lower than theState of Washington MHI of $64129 and the Seattle MHI of $77351 Our leaders are working tocreate good-paying jobs for our citizens not export them to an already wealthier part of the state Additionally these projects are also funded with local dollars and our citizens expect their money toput their neighbors to work With the above considered the City is seeking

middot DBE goals for the 2018-2020 compliance period for Eastern Washington that arereflective of the current availability of DBE firms in our region

middot The re-inclusion of non-minority women owned DBEs in achieving DBE goals InSpokane non-minority women owned DBEs make up the majority of the availableDBEs And current information shows that women in Spokane overall still lag behindmen in opportunities and wages The Cityrsquos own ldquoGender and Racial Equityrdquo reportfrom 2016 noted that overall working women earned 783 percent of the earnings ofworking men in 2014 down from 827 percent in 2009 We need to lift up all women

middot The development of WSDOT programs to encourage the growth of existing andnew DBEs who can be used on street and highway projects We are encouraged by theproposed mentorproteacutegeacute program to increase the number and capacity of DBEs inEastern Washington Programs that address other barriers such as assistance withcompleting documentation or access to bonding capacity also could aid growth ofDBEs

middot The ability for WSDOT to adjust goals on a project if a selected DBE is unable tocomplete its commitments on a project This would help enable our contractors totake a chance on a new or inexperienced DBE to complete work

middot Recognition of local programs that strive to increase diversity in the work force Forexample the City operates a robust apprenticeship program that requires 15 percentof the labor hours on public works jobs greater than $600000 to be performed byapprentices The apprentice programs in our region are stepping up recruitmentefforts and are specifically seeking to recruit more youth women and minorities intoapprentice slots

As we seek to achieve the goal of increasing participation in street and highway constructionby companies owned by disadvantaged individuals we must also acknowledge that businessdevelopment and growth happens over time We must lay the groundwork now to build abase of DBEs that can help us achieve higher utilization goals over time Sincerely Marlene FeistDirector of Strategic DevelopmentPublic Works amp UtilitiesCity of Spokane

Marlene Feist | City of Spokane | Public Works Director of Strategic Development5096256505 | cell 5097109214 | mfeistspokanecityorg | spokanecityorg

From Hall MattTo WSDOT Disparity StudySubject FW WSDOT News - WSDOT seeks comments on proposed DBE contracting goal for highway projectsDate Friday December 15 2017 11956 PMAttachments WSDOT proposed DBE goal through 2020pdf

From Hall Matt Sent Friday December 15 2017 117 PMTo BayneJwsdotwagovCc Keniston Rick (KenistRwsdotwagov) MolyneKwsdotwagov SusanWilsonclarkwagovSubject WSDOT News - WSDOT seeks comments on proposed DBE contracting goal for highwayprojects Hello Jackie Please see our comments attached regarding the WSDOT proposed DBE goals Thanks for the opportunity to provide comments Matt HallClark County Public Works Washington State Department of Transportation ndash NEWSHeadquarters ndash 310 Maple Park Avenue SE ndash Olympia WA 98504-7314 ndash 360 705-7000 FOR IMMEDIATE RELEASEOct 30 2017 Contact Jackie Bayne Office of Equal Opportunity 360 705-7084

WSDOT seeks comments on proposed DBEcontracting goal for highway projectsComments accepted through Dec 15OLYMPIA ndash Contractors trade and labor organizations small and disadvantaged businessesand all others who may be interested in working with the Washington State Department ofTransportation are invited to comment on the agencyrsquos proposed Disadvantaged BusinessEnterprise goal for Federal Highway Administration contractsDBE goals for transportation projects that receive federal funds represent a percentage of thevalue of work in which minority- and women-owned businesses should participate WSDOTis proposing a 19 percent overall DBE participation goal on Federal Highway Administration-funded projects for federal fiscal years 2018 through 2020Once submitted to FHWA early next year the goal will be effective through Sept 30 2020The purpose of the DBE program is to create a level playing field for firms owned andoperated by disadvantaged individuals wanting to participate in federally assisted highwaytransit and aviation programsConnecting with communitiesWSDOT will host a series of public meetings to provide opportunities for individuals tocomment in person

Spokane

2 ndash 4 pm Tuesday Nov 28WSDOT Eastern Region Headquarters2714 N Mayfair St Spokane

Vancouver

2 ndash 4 pm Wednesday Nov 29WSDOT Vancouver Headquarters11018 NE 51st Circle Vancouver

Seattle

2 ndash 4 pm Thursday Dec 7WSDOT Northwest Region Headquarters15700 Dayton Ave N Shoreline

Other ways to provide commentThose who are unable to attend one of the meetings can participate in a no-cost webinar from230 ndash 430 pm Tuesday Dec 5 Registration for the webinar is required Those interested inparticipating should email DisparityStudywsdotwagovWritten comments can also be submitted by mail or emailJackie Bayne Policy amp Reporting ManagerWashington State Department of TransportationOffice of Equal OpportunityPO Box 47314Olympia WA 98504-7314DisparityStudywsdotwagovDocuments detailing the methodology used for determining the FHWA DBE goals areavailable for review at all WSDOT region headquarters offices and at the TransportationBuilding 310 Maple Park Ave SE Olympia They are also available online atwwwwsdotwagovequalopportunityWSDOT will consider all written comments received through Friday Dec 15 2017 Hyperlinks within this release

WSDOT Region offices wwwwsdotwagovContactofficelocationhtmregion

WSDOT keeps people businesses and the economy moving by operating and improving the statestransportation systems To learn more about what were doing go to wwwwsdotwagovnews forpictures videos news and blogs Real time traffic information is available at wwwwsdotcomtraffic or bydialing 511 Americans with Disabilities Act (ADA) InformationAccommodation requests for people with disabilities can be made by contacting the WSDOTDiversityADA Affairs team at wsdotadawsdotwagov or by calling toll-free 855-362-4ADA (4232)Persons who are deaf or hard of hearing may make a request by calling the Washington State Relay at711 Title VI Statement to Public It is WSDOTrsquos policy to assure that no person shall on the grounds ofrace color national origin or sex as provided by Title VI of the Civil Rights Act of 1964 be excluded fromparticipation in be denied the benefits of or be otherwise discriminated against under any of its federallyfunded programs and activities Any person who believes his or her Title VI protection has been violatedmay file a complaint with WSDOTrsquos Office of Equal Opportunity For additional information regarding Title

VI complaint procedures andor information regarding our non-discrimination obligations please contactOEOrsquos Title VI Coordinator at 360-705-7090 To unsubscribe to WSDOT media releases please reply and type REMOVE in the subject line

This e-mail and related attachments and any response may be subject to public disclosure under state law

From Cochrane EmilieTo WSDOT Disparity StudyCc Eugenis Susan Cowlitz Co Public Works - Brad BastinSubject Proposed DBE GoalsDate Thursday December 14 2017 85006 AMAttachments image002png

DBE Goals - Commentspdf

Please see the attached letter with comments regarding the proposed DBE Goals Ahard copy will be sent out today

Thanks

Emilie CochraneCowlitz County Public Works1600 ndash 13th Avenue SKelso WA 98626360-577-3030 ext 6523

From Michelle WolcottTo Bayne JackieCc Robideau Christopher LSubject RE DBE Contracting Goal CommentsDate Tuesday November 7 2017 65448 AMAttachments image001png

Thank you JackieWhat a relief to know that we have been heard and are not the only small business facing thisstruggle Your email is comforting

Yes you can provide us with additional assistanceLet me introduce my boss and Senior Vice President of Red Plains Professional Chris Robideau

Chris will be your contact from here since I will be leaving the company November 17th As a WA DBE we are ldquoeligible for limited DBE Support Services (SS) funding when funds becomeavailablerdquo When will this happen And are we registered or on a list to receive fundingIs the WSDOT ICR Training a prerequisite for the funding Or just helpful knowledge

Thank you for your time Jackie I will follow through with the training

Michelle Wolcott EIT Quality Control Engineer

2103 NE 129th Street Suite 201 Vancouver WA 98686 Office (360) 448-7999 Fax (360) 258-0274

wwwred-plainscom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Monday November 6 2017 332 PMTo Michelle Wolcott ltMichelleWolcottred-plainscomgtSubject RE DBE Contracting Goal Comments

Hi Michelle

Thank you for your interest in doing business with WSDOT I apologize for the lack of informationyou have come up against in your attempts to attain access to WSDOT ICR program

As you may well know WSDOT has recently completed a state wide agency specific diversity studyAnecdotal comments submitted with the study concur with your experience Not only did somerespondents find it difficult to become prequalified they also commented that the required indirectrate of 110 percent is too low to be profitable These requirements are currently under advisementby WSDOT and new DBE program requirements are currently in the process of seeking public input

As you are an OMWBE certified DBE in Washington State you will be eligible for limited DBE SupportServices (SS) funding when these funds become available At that time funds may become availableto assist you in your struggle to attain ICR eligibility Here is a link to WSDOTrsquos Indirect Cost RateTraining httpswwwwsdotwagovAuditICRTraininghtm If you would like me to find additionaltraining or information please let me know

If I can provide additional assistance of information please let me know

Best Regards

Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Michelle Wolcott [mailtoMichelleWolcottred-plainscom] Sent Tuesday October 31 2017 835 AMTo WSDOT Disparity Study ltDisparityStudyWSDOTWAGOVgtSubject DBE Contracting Goal Comments

HelloI have been in contact with WSDOT for 6 months sharing my disparaging story of beinga small DBE unable to submit SOQs for projects requiring a WSDOT Audited IndirectCost Rate Approval We do not have an in-house accountant and our outsideaccountant has explained to get all the paperwork together for WSDOT would take 40hours of work $9000 annually We cannot justify this cost to submit on a project thatwe may not acquire We have been directed to seek financial assistance from WSDOT Federal SBA andWashington State Office for Women and Minority Owned Enterprises all of whichprovided negative responses

As a DBE business in 11 states we are supporting the 19 incentive for federallyfunded contracts but we are frustrated in the fact that we will not be one of the luckyfew to participateWe have been in business 20 years From our Vancouver Washington office our clientsare the Native American tribes across the country with all contracts federally funded This summer alone the WSDOT ICR Approval has squashed our ability to submit on twoprojects that we were perfectly qualified to performI have attached previous emails to show a sample of who I have been dealing with

Thank you

Michelle Wolcott EIT Quality Control Engineer

ltimage001pnggt

2103 NE 129th Street Suite 201 Vancouver WA 98686 Office (360) 448-7999 Fax (360) 258-0274 wwwred-plainscom

From Michelle Wolcott Sent Monday July 10 2017 954 AMTo Harvey Schatzie ltHarveySwsdotwagovgtSubject RE WSDOT Indirect Cost Rate Process

Good Morning Schatzie

This is Michelle Wolcott from Red We spoke Friday June 30th about the ICRprocess and you were very encouraging I relayed the information to my boss who ishere in Vancouver then he shared with the president bookkeeper and our accountantin Oklahoma We had FAR compliance with Oklahoma DOT in 2015 so we are noteligible for the Safe Harbor Program Our account said our timekeeping system doesnot breakdown the hours and pay in the format WSDOT wants to have it presented andto get the documents in order would take the CPA and an assistant $9000 in paidhours of work It turns out this would have to be annually The other option is to hirean outside CPA firm to do the audit for us at $20000 annually

Our president said in the past we received funding assistance from the Stateof Oklahoma to get our ICR approval Does WSDOT offer any financial assistance for small businesses to reach compliance We are also a DBE in WA I have requested the same information from WA PTAC at theVancouver Chamber of Commerce and from WA Office of Minority and Women OwnedBusiness Enterprises and they both said there was nothing but suggested to askWSDOTThank you for your helpMichelle Wolcott EIT

Hello Michelle sorry but I am not aware of any grants But I was looking at this andthere is a POC at the bottom you may try to discuss the audit issuesHollyHolly BoehmeBusiness Opportunity Specialist | 8(a) Business Development ProgramUS Small Business Administration bull Seattle District Office

Hello Michelle -

Thank you for your email Im not aware of any funding available for thispurpose but do agree its quite a bit for a DBE firm to have as an expense Mostof the firms I work with do a lot more work on the Oregon side so perhaps thereare programs available that I just havent heard of Im copying my colleagueHoly Boehme in our Seattle District Office to see if they are aware of any suchassistance

Holly might there be some small business incubators or other resources availablein WA to help a small firm with the expense of getting a WSDOT AuditedIndirect Cost Rate approval Please reply all with anything you may have

Thank you

Yuri Yoshida Dyson Business Opportunity SpecialistUS SMALL BUSINESS ADMINISTRATION Portland District OfficePhone 503-326-6692 Fax 202-292-3872 wwwsbagovor

From Troy HalbergTo Bayne JackieSubject Re DBE Goal CommentsDate Wednesday December 13 2017 35533 PM

JackieToday was another example of why the goals should not be raised There were 2 jobs which Iwas low on and did not get due to the high goals This is exactly what will happen when thegoals get raised The first job was the 9180 Anacortes Ferry Paving Northeast Electric $244924 and UDBE $318000 Second job was the 9172 SR 9 East Junction Job Northeast Electric $68503 and UDBE $76300

Does this seem like a good way to spend the tax payer money I do not see how we are tosurvive if the goals get to 21

Thanks

Troy HalbergOffice360-225-7004Cell360-931-3990Fax360-225-7001

On Thu Nov 30 2017 at 1131 AM Bayne Jackie ltBayneJwsdotwagovgt wrote

Good Morning Troy

Thank you for taking the time to provide us with your experiences with the DBE Program TheWashington State Department of Transportation takes the public involvement process veryseriously and your comments will be taken into consideration prior to a final decision regardingthe overall DBE program goal

If I can be of further assistance please let me know

Best Regards

Jackie Bayne

Policy and Reporting Manager

WSDOT Office of Equal Opportunity

Work (360) 705-7084

Cell (360) 338-5783

BayneJwsdotwagov

From Troy Halberg [mailtotroyhnellcnet] Sent Wednesday November 29 2017 144 PMTo WSDOT Disparity Study ltDisparityStudyWSDOTWAGOVgtSubject DBE Goal Comments

If these goals are to be set that high this would make us as a non DBE small contractor at amajor disadvantage With these high of goals this is like handing all of the DBE electricalcontractors every job These general contractors will have no option but to use thembecause of the goals This should not go into effect We have been low on several jobs in thepast and have not gotten them do to the goals being 18 When this goes on it puts all therest of us contractors at a disadvantage Please consider the smaller non DBE contractorsthat are looking to survive as well

Thanks

Troy Halberg

Office360-225-7004

Cell360-931-3990

Fax360-225-7001

From Daniel Seydel IITo Bayne JackieCc Key Earl daneiwashingtonorg Nadeem Ismail Mussie Tewelde (mteweldehydro2geotechcom)

graceflyrightaolcom Mary Wenner Watkinson LarrySubject Re Seydel Dan - WSDOT Disparity Study Presentation Public TestimonyDate Friday December 8 2017 30323 PM

Jackie

It was my hope that the comments would be put into record I was also hoping that you wouldnot have to be the one having to formulate responses for each clarification If that is the caseI know you are swamped and will then I just ask my comments be only part of the recordHowever if there is dedicated staff that is going to be compiling and responding to theclarification then the below questions would be the priorities of most interest

These were questions unrelated to the disparity study and hopefully should be doable

1) Do you have any reports on your outcomes from the past 5 years on DBE support servicesand specific key performance measures from previous years funding (ie how many firmsutilized what was the objectives were objectives met did outcomes meet total satisfaction ifnot why next steps what was the firms capacity before and after services were performed (iesales employees bonding if applicable insurance equipment line of credit if applicablenumbertype of customers how are they doing now etc))

2) What other changes or improvements other than allowing DBES to select their own serviceproviders and a staff change will be a part of this new program

3) Was consideration to provide the new mentor protege consultant rather than separating theactivities into support services andor technical assistance

Disparity study clarifications

1) Will WSDOT consider sponsoring legislation to support the policy changes and goalincreases to insure manditory goals wont be necessary

a) If not what measures will you grant primes to operate outside the box (ie entertain bestvalue over low bid modify responsiveness by subs to require adherence to meeting voluntarygoals developing standards around federally funded gccm and other low bid procurementsthat give powers to primes to meet objectives including but not limited to mentor protegerelationships joint ventures bond waiving techniques cash flow assistance material andequipment acquisition manufacturer development specifications that have only DBES orinclude equal number of DBES as non DBES as approved installers etc)

2) Will the disparity study consultant be available for implementation or information gatheringfrom other regions

5) Will WSDOT be hiring more diverse staff amp professionaltechnical service providers inother departments outside OEO to insure policies commitments and evaluations areperformed in manner that improves diversity that reflects the communities WSDOT serves bythoughtful and legal efforts increase participation thus creating successful outcomes includingpartnerships and collaborations

Thank you and Merry Christmas

Hi Dan

Thank you for providing such thoughtful public comments questions and testimony

Regarding your public testimony below - I do not believe I am not able to answer questions ifthey are public comments Please let me know what part of this email you would likeclarification on and what part you would like considered public testimony

I appreciate your thoughtful consideration of WSDOTrsquos implementation of our civil rightsprograms

Best Regards

Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

DIDaniel Seydel IIFyi Daniel J Seydel II Platinum Group LLC 2064060844 f) 2062999934wwwplatinumbusinessgroupcom Small Business is the Answer FREE TRAINING FORENTREPRENEURS amp JOB SEEKERS - Polish your skills or make your firm standout thanksto the EntrepreneurialThu 233pDI

Daniel Seydel IIThu 1272017 1123 AMInbox Sent ItemsShow all 7 recipientsTobaynejwsdotwagov ltBayneJwsdotwagovgtJackie

Per your request below are my questions and comments some of which were verbally sharedyesterday

Congratulations on receiving the blessing of additional technical assistance dollars andcompleting the DBE Disparity Study per your report

1) Do you have any reports on your outcomes from the past 5 years on DBE support servicesand specific key performance measures from previous years funding (ie how many firmsutilized what was the objectives were objectives met did outcomes meet total satisfaction ifnot why next steps what was the firms capacity before and after services were performed (ie

sales employees bonding if applicable insurance equipment line of credit if applicablenumbertype of customers how are they doing now etc))

2) What other changes or improvements other than allowing DBES to select their own serviceproviders and a staff change will be a part of this new program

3) Was consideration to provide the new mentor protege consultant rather than separating theactivities into support services andor technical assistance

Disparity study clarifications andor comments

1) Will WSDOT consider sponsoring legislation to support the policy changes and goalincreases to insure manditory goals wont be necessary

a) If not what measures will you grant primes to operate outside the box (ie entertain bestvalue over low bid modify responsiveness by subs to require adherence to meeting voluntarygoals developing standards around federally funded gccm and other low bid procurementsthat give powers to primes to meet objectives including but not limited to mentor protegerelationships joint ventures bond waiving techniques cash flow assistance material andequipment acquisition manufacturer development specifications that have only DBES orinclude equal number of DBES as non DBES as approved installers etc)

2) Will the disparity study consultant be available for implementation or information gatheringfrom other regions

3) What lessons did WSDOT learn that it did not know from the other study(s)

4) What would WSDOT do different (ie scope time line process approach etc)

5) Will WSDOT be hiring more diverse staff amp professionaltechnical service providers inother departments outside OEO to insure policies commitments and evaluations areperformed in manner that improves diversity that reflects the communities WSDOT serves bythoughtful and legal efforts increase participation thus creating successful outcomes includingpartnerships and collaborations

Daniel J Seydel IIPlatinum Group LLC 2064060844f) 2062999934wwwplatinumbusinessgroupcom

Small Business is the Answer

FREE TRAINING FOR ENTREPRENEURS amp JOB SEEKERS - Polish your skills or makeyour firm standout thanks to the Entrepreneurial Institute of Washington

httpswwwyoutubecomchannelUCKL5YeVxL29HnNxqnb6hmXA

LIKE US on FaceBook if an Active Professional Development workshop provided by EIW

Construction University helps your firm or has benefited you

httpswwwfacebookcomEIWashingtonref=hl

From Bayne Jackie ltBayneJwsdotwagovgtSent Friday December 8 2017 10139 PMTo Daniel Seydel IICc Key Earl daneiwashingtonorg Nadeem Ismail Mussie Tewelde(mteweldehydro2geotechcom) graceflyrightaolcom Mary Wenner Watkinson LarrySubject RE Seydel Dan - WSDOT Disparity Study Presentation Public Testimony Hi Dan Thank you for providing such thoughtful public comments questions and testimony Regarding your public testimony below - I do not believe I am not able to answer questions if theyare public comments Please let me know what part of this email you would like clarification on andwhat part you would like considered public testimony I appreciate your thoughtful consideration of WSDOTrsquos implementation of our civil rights programs Best Regards Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov From Daniel Seydel II [mailtodanplatinumbusinessgroupcom] Sent Thursday December 7 2017 1123 AMTo Bayne Jackie ltBayneJwsdotwagovgtCc Key Earl ltKeyEwsdotwagovgt daneiwashingtonorg Nadeem Ismailltnipaintingearthlinknetgt Mussie Tewelde (mteweldehydro2geotechcom)ltmteweldehydro2geotechcomgt graceflyrightaolcom Mary Wennerltmwenn0108yahoocomgtSubject Seydel Dan - WSDOT Disparity Study Presentation Public Testimony Jackie

Per your request below are my questions and comments some of which were verbally sharedyesterday

Congratulations on receiving the blessing of additional technical assistance dollars andcompleting the DBE Disparity Study per your report

1) Do you have any reports on your outcomes from the past 5 years on DBE support servicesand specific key performance measures from previous years funding (ie how many firmsutilized what was the objectives were objectives met did outcomes meet total satisfaction ifnot why next steps what was the firms capacity before and after services were performed (iesales employees bonding if applicable insurance equipment line of credit if applicablenumbertype of customers how are they doing now etc))

2) What other changes or improvements other than allowing DBES to select their own serviceproviders and a staff change will be a part of this new program

3) Was consideration to provide the new mentor protege consultant rather than separating theactivities into support services andor technical assistance

Disparity study clarifications andor comments

1) Will WSDOT consider sponsoring legislation to support the policy changes and goalincreases to insure manditory goals wont be necessary

a) If not what measures will you grant primes to operate outside the box (ie entertain bestvalue over low bid modify responsiveness by subs to require adherence to meeting voluntarygoals developing standards around federally funded gccm and other low bid procurementsthat give powers to primes to meet objectives including but not limited to mentor protegerelationships joint ventures bond waiving techniques cash flow assistance material andequipment acquisition manufacturer development specifications that have only DBES orinclude equal number of DBES as non DBES as approved installers etc)

2) Will the disparity study consultant be available for implementation or information gatheringfrom other regions

3) What lessons did WSDOT learn that it did not know from the other study(s)

4) What would WSDOT do different (ie scope time line process approach etc)

5) Will WSDOT be hiring more diverse staff amp professionaltechnical service providers inother departments outside OEO to insure policies commitments and evaluations areperformed in manner that improves diversity that reflects the communities WSDOT serves bythoughtful and legal efforts increase participation thus creating successful outcomes includingpartnerships and collaborations

Thank you for your hard work

Daniel J Seydel IIPlatinum Group LLC2064060844f) 2062999934wwwplatinumbusinessgroupcom

Small Business is the Answer

FREE TRAINING FOR ENTREPRENEURS amp JOB SEEKERS - Polish your skills or makeyour firm standout thanks to the Entrepreneurial Institute of Washington

httpswwwyoutubecomchannelUCKL5YeVxL29HnNxqnb6hmXA

LIKE US on FaceBook if an Active Professional Development workshop provided by EIWConstruction University helps your firm or has benefited you

httpswwwfacebookcomEIWashingtonref=hl

From Erin EhlingerTo Bayne JackieSubject Support for WSDOTs proposed DBE goalDate Wednesday December 13 2017 115417 AM

I am writing to support the WSDOT recommended DBE Goal for FHWA contracts of 190 I also want to express my appreciation for the thoroughness of the WSDOT Disparity study and howthe study disclosed the disparity in WSDOT contracts that do not have a DBE or WBE goal ndash furtherreinforcing that all women-owned firms and minority owned firms face equity issues I remain concerned with the methodology required by the Code of Federal Regulations and case lawbecause of the dependence on the availability of firms in the calculation An unintendedconsequence of removing either gender or race from the goal is that many of these firms would goout of business the availability decreases and the formula then results in a smaller DBE goal Pleaselet me know how I can help influence a change to the CFR Thank you Erin Ehlinger

Erin Ehlinger PEPresident

24036 SE 47th StSammamish WA 98029erinehlingersmartcitytrafficcom425-221-0320

From Jackie EtterTo WSDOT Disparity StudySubject Why we need mandatory goalsDate Friday December 1 2017 61859 PM

As a DBE participating in bidding process I have found that regardless of the language which claims to insurethat disadvantaged business enterprises shall not be discriminated against the only way to ensure that this does nothappen is by mandating affirmative action goals Having been overlooked time and time again because of my gender when I have submitted bids that are verycompetitive with other bidders is very frustrating I have had many instances of companies using my price to getmy non DBE competitors to lower theirs The voluntary or laudatory DBE goals do nothing to ensure a level playing fieldThe only way to ensure non-discrimination is through mandatory goals

Jackie EtterWest Star Construction of Spokane

Sent from my iPhone

From Claudia HirscheyTo Key Earl Bayne JackieSubject WSDOT DBE Goal - Comment in supportDate Tuesday December 12 2017 61937 PM

Dear Earl and Jackie The WSDOT recommended DBE Goal for FHWA contracts of 190 is a small and important increasethat can further achieve equity in WSDOTFHWA contracting I am in support of the 19 DBE Goal I also want to express my appreciation for the thoroughness of the WSDOT Disparity study and howthe study disclosed the disparity in WSDOT contracts that do not have a DBE or WBE goal ndash furtherreinforcing that all women-owned firms and minority owned firms face equity issues I remain concerned with the methodology required by the Code of Federal Regulations and case lawbecause of the dependence on the availability of firms in the calculation An unintendedconsequence of removing either gender or race from the goal is that many of these firms would goout of business the availability decreases and the formula then results in a smaller DBE goal Sincerely Claudia S Hirschey PETransportation Consulting Servicesclaudiahirscheycomcastnethttphirscheytcscom2068564988 Mobile

From Nate ThomasTo WSDOT Disparity StudySubject WSDOT Proposes DBE goal of 19Date Thursday December 7 2017 42720 PM

The WSDOT should look into similar ways the Federal Gov has handled the equal opportunity forthose that fall under the DBE status and set aside specific projects for the DBErsquos and moreimportantly UDBErsquos so these companies have better chance of landing contracts Maybe a lot 10 ofthe DBE goal to set aside for only DBEs and other 9 goal met as it is done currently with COA onlarger contracts Nate ThomasSenior EstimatorD 5095688085 | C 5099941156331 North Fancher Road | Spokane WA | 99212

The information contained in this email including any attachments is confidential and may beprivileged It is intended only for the person or entity to which it is addressed and no waiver isintended by sending this email If the reader is not the intended recipient you are herebynotified that any review retransmission dissemination or other use of or taking any action inreliance upon this information is strictly prohibited If you have received this email in errorkindly notify the sender by reply email and delete the original message from any computerThank You

From Brian FujiiTo WSDOT Disparity StudySubject WSDOT propsed DBE GoalsDate Thursday December 7 2017 110638 AM

Good morning Jackie

I wanted to comment on WSDOTs proposed DBE goal to 19 I believe WSDOTs plan toincrease the overall DBE goal to 19 will provide greater opportunities for DBE contractorsin different disciplines to participate in federally funded contracts

Without the new DBE requirement and with Proposition 200 there are limited opportunitiesfor DBE contractors in disciplines different than the typical trucking flagging and rebar Inaddition there are no incentives for general contractors to go out beyond the usual truckingflagging and rebar DBE subcontractors

Increasing the DBE goals will provide opportunities for different DBE contractors in differentdisciplines to participate in WSDOT federally funded projects

Thank you for your time

RespectfullyBrian FujiiPresident Subsurface ConstructionP 2063836478F 2069604639MDBE 4M0024998

From Forman StephanieTo Bayne JackieCc Millar Roger christinenhanmailhousegov Claudia Hirschey Sarah Corbin Jiang Yingle

efaulknerenviroissuescom Diana Giraldo Kelly CheesemanSubject WTS - Disparity Study Comment LetterDate Friday December 15 2017 71020 PMAttachments 2017_Dec 15_WTSCommentLetter_WSDOT DBE Goalpdf

Dear Ms Bayne Please find our attached letter which summarizes the WTS Puget Sound Chapterrsquos support foradvancement of women in transportation and our comment letter regarding the recent DisparityStudy Please feel free to contact me if you have any questions or would like to discuss Sincerely Stephanie S Forman PEWTS Puget Sound President Transportation Project Manager

929 108th Avenue NE Suite 1300Bellevue WA 98004D 4254681548 M 2062291745stephanieformanhdrinccom

December 15 2017

Jackie Bayne Policy and Reporting Manager

Office of Equal Opportunity

Washington State Department of Transportation

PO Box 47314

Olympia WA 98504-7314

Dear Ms Bayne

On behalf of the Puget Sound Chapter of Womenrsquos Transportation Seminar (WTS) we would

like to thank the Washington State Department of Transportation for presenting to our

organization the DBE Disparity Study results We very much appreciated the presentation by Earl

Key Director of WSDOTrsquos Office of Equal Opportunity Teresa Berntsen (Director Office of Minority

and Womens Business Enterprises) as well as Leslie Jones (Director Sound Transit Office of Small

Business Development and Labor Compliance)

Following a review of the WSDOT Disparity Study and as a result of consultation with WTS

International we would like to provide WSDOT with our comments for your consideration

As you know WTS is an organization focused exclusively on attracting retaining and advancing

women in transportation By the year 2018 there will be thousands of vacancies in the

transportation industry for qualified professionals and while women account for more than half of

the worldrsquos workforce they are a very small minority in transportation disciplines

We are pleased that the outcome of the 2017 Disparity Study that recognizes the on-going barriers

for DBEs including women-owned businesses in transportation The WSDOT recommended DBE

Goal of 190 is a small and important increase that can further achieve equity in WSDOTFHWA

contracting We are also pleased that the 2017 Disparity Study has documented the disparity in

WSDOT contracts that do not have a DBE or WBE goal ndash further reinforcing that all women-owned

firms and minority owned firms face equity issues We are encouraged that the WSDOT has asked

FHWA to rescind the 2016 waiver

While WTSrsquo mission is specific to the advancement of women we are a race-neutral organization To

this end we are also deeply concerned about the underutilization of minority owned firms There is

no equity or ldquofair playing fieldrdquo without equity for all gender and races We remained concerned with

the methodology required by the Code of Federal Regulations and case law because of the

dependence on the availability of firms in the calculation An unintended consequence of removing

either gender or race from the goal is that many of these firms would go out of business the

availability decreases and the formula then results in a smaller DBE goal This consequence is

contrary to our mission

We look forward to our continued participation in WSDOTrsquos DBE advisory group we are anticipating

notice that the 2016 waiver has been rescinded and how we can work together to continue

advancing minority and women-owned firms in the transportation field

Sincerely

WTS Puget Sound Chapter

Stephanie Forman

President

C Roger Millar Secretary WSDOT

C Representative Adam Smith 9th Congressional District Washington co Christine Nhan

WTS Puget Sound Chapter

PO Box 3461

Bellevue Washington 98009

From Dave Gent - WAPATo Bayne JackieCc Tom GaetzSubject WAPA Public Comments - RE WSDOT FHWA Disadvantaged Business Enterprise Proposed GoalDate Friday December 15 2017 14119 PMAttachments 12152017 DBE Proposed Goal - WAPA Public Comments Letterpdf

Good afternoon Jackie Please find attached WAPArsquos ldquofor the public recordrdquo comments with respect to WSDOTrsquos proposedDBE Goals FHWA funded work I assume that the Master DBE Directory was not sent to you this week so as a result we were notable to review the directory before the close of the public comment period That fact is noted withinour comment letter Thank you for your efforts Have a good weekend

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Friday December 8 2017 1219 PMTo Dave Gent - WAPA ltdavegentasphaltwacomgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hello Dave WSDOT did not take possession of this directory as part of our review process We will provide youwith the records without submitting a formal request However we need to get them from theconsultant first I will hopefully have them to provide next week I will keep you updated on therequest Have a nice weekend Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal Opportunity

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

December 15 2017

Jackie Bayne Policy Manager WSDOT Office of Equal Opportunity Delivered via e-mail to BayneJwsdotwagov RE Public Comment (as requested) to Proposed Overall DBE Goal for the FHWA (2018 ndash 2020) Ms Bayne Thank you for your presentation via webinar on December 5 2017 outlining WSDOTrsquos evaluation process used to determine the proposed overall DBE goal for the FHWA Thank you also for the Colette Holt amp Associates (CHA) DBE Advisory Group presentation made on September 14 2017 Both presentations helped to distill the findings of the 2017 Disparity Study produced by CHA In response to Earl Keyrsquos initial informal request to comment on the proposed overall DBE goal made during the DBE Advisory Committee teleconference held on October 12th we provided a list of reasons that we believe justify a lower DBE goal than is now being proposed Our initial response to Mr Keyrsquos request did not serve to influence WSDOT and the current proposed goal remains at 190 The arguments provided on October 12th against the significant increase in the proposed DBE goal (versus the previous goal and recent historic DBE participation) are repeated and supplemented below and will serve as the Asphalt Pavement Associationrsquos (WAPArsquos) official public comments

In concert with WSDOT and the OWMBE WAPA and the construction firms that WAPA represents have demonstrated a commitment to the principals of equal opportunity for all ldquoready willing and ablerdquo firms for the entire history that our DBE program has been in place WAPA has continuously demonstrated its commitment to the goals of the DBE program and for increasing the representation of disadvantaged groups within our industry as both workers and owners of firms Please recognize that WAPArsquos oversight and critique of the DBE program has always attempted to balance the principals of fair and open competition with the practical aspects of the low bid compressed schedule high performance standards demanded within the WSDOT marketplace Our comments below are meant to enhance WSDOTrsquos and OWMBErsquos understanding of the market and to hopefully have WSDOT fully consider all of the dynamics that are at play when proposing its Triennial DBE goal for FHWA projects Current DBE Capacity vs Historically Robust Market In advocating for a realistic and defensible DBE goal it has always been WAPArsquos position that it is paramount that the realities of the marketplace and true certified DBE subcontracting capacity should be a primary standard While a ldquostretchrdquo goal may appear to be progressive on its face it comes with consequences for all of the parties involved in the WSDOT federal aid contracting arena To balance the dynamics of the WSDOT contracting system the DBE goal should be tempered with the realities of the market and with a true measure of the underlying effectiveness of the DBE support services available to contractors

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 2 of 6 The first point of fact that has not been given any apparent consideration by WSDOT in its evaluation of the current capacity of certified DBErsquos is that there is an historically robust workload scheduled to be performed in the 2017 through 2022 time-frame particularly in the Puget Sound ldquoEverett to Olympiardquo corridor By WSDOTrsquos own estimates (see Attachment A) public works construction project starts in the 2018 to 2022 time-frame in this region will exceed $333 billion (B) counting the work projected from just five public entities WSDOT will be taking a decidedly ldquoback seatrdquo role during this period to Sound Transit which will have construction project starts of $226B vs WSDOTrsquos projected volume of $67B WSDOTrsquos summary publication titled Washington State Department of Transportations Proposed Federal Highway Administration Triennium Disadvantaged Business Enterprise Goal Federal Fiscal Years 2018-2020 states correctly that ldquoIncluded among the types of evidence that must be considered are the current capacity of DBEs to perform work on WSDOTrsquos federally-assisted contracts as measured by the volume of work DBEs have performed in recent yearshelliprdquo (Step Two Adjustment discussion) With the Sound Transit program being over 300 larger than the total WSDOT program in this region a sober assessment of true certified DBE capacity in the next three years needs to be considered by WSDOT If the huge construction boom over the next five years does not prompt a Step Two Adjustment then it becomes obvious that the realities of the market are being ignored by WSDOT for DBE goal setting Put another way if the 2018 through 2022 level of contracting activity does not warrant a goal adjustment what will DBE Access Barriers Not Yet Addressed The CHA 2017 Disparity Study points out multiple recommendations in Section VII that impact DBE participation and access to the market Assessments relating to those impacts and the state of maturity in addressing the CHA recommendations should be considered when assessing the DBE goal Many of the CHA recommendation have not been adequately addressed at this point in time Some of the prime examples are listed below Increase Certification and Expertise ndash The Disparity Study as explained to us includes all minority- (MBE)

and women-owned (WBE) firms that could be readily identified that perform work within Washington State and that perform work within the NAICS code framework CHA developed to cover WSDOT project work During the various presentations relating to the Disparity Study WSDOT representatives said that outreach to currently non-certified MBE amp WBE firms has increased and that WSDOT aspires to bolster its list of certified firms in the future but this effort is just beginning and the success of the effort needs to be means tested against the broader population of MBE amp WBE firms included in the CHA base line evaluation As the Disparity Study uses a much broader population of MBE WBE contractors to arrive at its conclusions (both non-certified firms and firms too large for certification) it follows that the calculated DBE proposed goal is overstated to include capacity that does not currently exist within WSDOTrsquos certified DBE framework Unless OMWBE is experiencing sudden and unprecedented success in recruiting new MBEWBE firms the DBE goal should be adjusted downward to recognize that the ldquoready willing and ablerdquo contractors that WSDOT has certified is only a subset of the total MBEWBE contracting population used in the Disparity Study evaluation

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 3 of 6

Until the promised WSDOT outreach registration efforts result in a substantial increase in available certified DBE firms it is premature to count the entire population of minority- and women-owned contractors as available to participate in WSDOT contracting It is unreasonable for WSDOT to project availability capacity using the entire MBEWBE population when only its currently truncated list of certified firms is acceptable to count toward the DBE goal

A corollary to the Increase Certification and Expertise discussion above is that the calculation of the Base Figure evidently includes the broadest practical population of MBE and WBE firms identifiable (without a review of the CHA Master DBE Directory which has not been supplied prior to the close of the public comment period the scope of the directory cannot be ascertained) If this directory includes a large population of MBEWBE firms that are not certified or are too large to be certified then the Base Figure calculation should be adjusted to reflect that certified DBE firms are a fraction of the total MBEWBE firms used to arrive at the 19 suggested DBE goal With respect to the CHA Master Directory it is our understanding the WSDOT was not given the directory as part of its evaluation of the Disparity Study and it follows that it did not evaluate the proposed DBE goal in the context of the CHA Master DBE Directory In our opinion an informed decision on adjusting the CHA baseline goal calculation can only be done after an extensive evaluation of the CHA Master DBE Directory If this has not been done WSDOT has not exercised due diligence in evaluating the context and underpinnings of the CHA Disparity Study and a certified DBE Triennium goal proposal to the FHWA is premature Increase Contract ldquoUnbundlingrdquo ndash If this proposed strategy (suggested by the CHA Study) is undertaken

certified DBE Subcontractors currently available will be engaged as Prime Contractors and the value of their prime contracts will bolster the overall percentage of certified DBE contracting but a systematic effort and strategy to ldquounbundlerdquo has not been articulated by WSDOT The key question of how this effort can be accomplished without increased cost to the taxpayers and increased inconvenience for the traveling public As noted in the CHA study (page 129 final paragraph) ldquoUnbundling must be conducted however within the constraints of the need to ensure efficiency and limit cost to the taxpayersrdquo As of this writing no overarching strategy for further unbundling with proper accountability has been articulated by WSDOT to the DBE Advisory Group

Review Insurance and Experience Requirements ndash Impediments to certified DBE participation due to

necessary insurance and experience standards cannot be solved by the prime contracting community Unless and until WSDOT puts together programs to address the burden of the substantial risks shouldered by Prime Contractors on WSDOT contracts barriers for streamlined utilization of certified DBE firms will continue to exist These market driven barriers will continue to dampen the availability of certified DBE Subcontractors that are able to perform within WSDOTrsquos strict criteria without unduly transferring risk to the Prime Contractor

Better Partnering to Overcome DBE Failures to Perform ndash Prime Contractors are held fully responsible to maintain the project schedule and are subject to project liquidated damages even when they may be struggling to deal with Subcontractor performance issues It is well-established that replacing a certified ldquocondition of awardrdquo (COA) DBE Subcontractor is very onerous and likely very costly to the Prime Contractor Unfortunately the imposition of strict and often counter-productive commercially useful function (CUF) rules often compound this issue as Prime Contractors cannot help COA DBE Subcontractors work through capacity expertise or time-related issues that impact timely performance

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 4 of 6

WSDOT needs to be a much better partner in the process of dealing with under-performing or non-performing certified DBE Subcontractors The current standard operational procedure places all of the exposure for non-performance onto the Prime WSDOT does not have an equitable system to account for non-performing or under-performing certified DBE Subcontractors hired as a condition of award (COA)

Performance Information and Training ndash Commercially useful function rules (CUF) and the lack of clear benchmark definitions for good faith effort (GFE) standards remain barriers for improving accountability within the DBE system and in turn lead to distorted DBE participation rates These items remain amorphous due to lack of training or lack of historic information Chronic uncertainty exists regarding both of these items Until WSDOT changes and improves its approach to provide transparency and certainty for both the prime bidding amp subcontracting parties true certified DBE capacity will continue to be masked and the resultant higher subcontracting costs associated with a distorted marketplace will continue to be hidden

WAPA respectfully suggests that simply adding an ldquoEstimated DBE Subcontract Premiumrdquo line to the current DBE bid forms would help to establish benchmarks that could begin to be used to ldquomeans testrdquo good faith efforts If this information had been gathered over the last 20 years of the DBE program meaningful GFE standards could have been developed and could be in place today

An in-depth review of CUF standards would also provide clarity For instance it is unclear why force account items performed by certified DBEs are currently counted at only 50 of the value of the work How was this benchmark established Has it been reviewed since imposed Did it ldquosolverdquo whatever inequity WSDOT was trying to address Better clarity may lead to more expanded opportunities for certified DBE Subcontractors

Enhanced Supportive Services and Business Development Programs ndash Unless and until stronger programs of these types are shown to be effective in boosting certified DBE business development increased DBE participation due to stronger business acumen should not be relied upon when setting the new DBE goal

Does OMWBE have a reasonable expectation that future plans for enhanced and expanded programs will be more successful than those employed in the past Assuming that certified DBE Subcontractors will be better prepared to deal with the WSDOT contracting environment than in the past should not be relied upon to boost DBE participation goals Especially troubling were the multiple references within the CHA report highlighting that DBEs believe that the staff at OMWBE lack a deep knowledge about the highway construction industry (eg Study page 129 2nd paragraph) Does OMWBE have a path forward that will address this issue and thus improve supportive services impacts

Develop a Bonding and Financing Program for SBEs ndash This is completely outside of the prime contracting

communityrsquos scope of influence WSDOT must find a way to institute changes that both protect the taxpayer and help increase certified DBE bonding capacity and access to financing ndash very large hurtles To assume that these hurtles can effectively be overcome within the 2018 ndash 2020 time frame when they have been chromic issues for the past 20 plus years of DBE program development is not rational

A helpful innovation would be for WSDOT to underwrite performance and payment bonds for certified DBE firms or to create promote a system that helps certified DBE firms obtain private bonding Bridging the gap to address capital access and performance risks (bonding) must be championed by WSDOT

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 5 of 6

Base Figure Adjustment to Address Available Subcontract Volume and DBE Prime Contracts It is a fact that mid- to large-sized MBEWBE firms that compete both as Prime Contractors and as Subcontractors are not eligible to be OMWBE certified DBEs Further the current amount of contract unbundling for greater DBE access to WSDOT prime contracting (see below) accounts for a very low dollar volume of prime contracts performed by certified DBEs Finally by specification (WSDOT standard specification 1-081) Prime Contractors are obligated to perform 30 of the total volume of the work (less specialty work) or stated another way a maximum of 70 of the dollar volume on WSDOT projects is typically available to award to subcontractors These market dynamics are NOT addressed in the Disparity Study A responsible DBE goal made absent of these facts should not be implemented A reasonable adjustment to the proposed 19 DBE goal is presented below

bull The percent of WSDOT prime contracts awarded to certified DBE firms is likely less than 5 by total WSDOT

contract volume Assuming this approximation is valid (likely very conservative) then the amount of WSDOT contract work available to certified DBE firms via subcontracting should be adjusted to account for the factors outlined above The Base Figure (19) should be adjusted to recognize that a 70 maximum subcontractor participation is available (in the numerator) and to account for the assumed 5 certified DBE prime contracts in the denominator Reasonable Base Figure Adjustment 19 (proposed) x 70 subcontracts available divide 95 of Non-Certified DBEs as Prime Contract Volume = 190 x 0737 = 140 adjusted goal This is an adjustment based on the practical dynamics of the WSDOT contracting system and it represents a more realistic look at the true subcontract volume that is available for Prime Contractors to award to certified DBE firms

Conclusions

Until the items listed above are addressed and in place it is not reasonable to believe that DBE goals can be increased by nearly 163 (from 117 to 190) When the projected robust public works contracting market is appropriately considered the true availability of certified DBE Subcontractors for WSDOT contracts will be truncated due to demand across all public works sectors With multiple strong public works programs competing for a limited population of certified DBEs the ability to meet increased WSDOT DBE goals will be severely challenged Without very clear concise and transparent good faith effort rules the ability to address DBE goals that greatly overestimate true near term certified DBE capacity will result in non-attainment bid day chaos failures to perform andor rapidly increased pricing

The clear conclusion is that at this point in time under the current circumstances without effectively instituted new programs rules procedures that could enhance the certified DBE programrsquos overall effectiveness we believe that the DBE goal should remain at or near 12 As OMWBE documents and demonstrates its future successes in improving access and eliminating capacity barriers only then should the DBE goal be re-evaluated and increased

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 6 of 6

In closing please remember that it is rare that the contracting community is asked our opinion with respect to the WSDOTrsquos DBE policies and so this letter is somewhat a vehicle to highlight collective concerns It is our belief that the majority of the Prime Contractors in Washington state support the objective of creating a level playing field for ready willing and able DBEs

If the level playing field is not yet possible in the absence of the DBE program then the key is to set realistic goals that recognize reflect and address the hard realities and market dynamics imposed by WSDOTrsquos bedrock environment of awarding contracts to the lowest cost responsible and responsive Contractor

Respectfully submitted Washington Asphalt Pavement Association

David Gent Tom Gaetz Executive Director Senior Advisor

Attachment A ndash WSDOT Central Puget Sound Public Works Contracting Projection 2018 - 2022

Con

stru

ctio

n Pr

ojec

t Sta

rts

2018

-202

2S

ound

Tra

nsit

$22

6 B

SD

OT

$08

B

Tran

sit

amp O

ther

s$1

7 B

WS

DO

T$6

7 B

Por

t of

Sea

ttle

$15

B

TOTA

L$3

33

B

Source N

ov 1

9 2

017

pres

enta

tion

to W

APA

Ann

ual M

eetin

g

Attachment A

Work (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Dave Gent - WAPA [mailtodavegentasphaltwacom] Sent Thursday December 7 2017 144 PMTo Bayne Jackie ltBayneJwsdotwagovgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hi again Jackie Irsquom fine thanks and hope you are the same Interesting The Master DBE Directory is the basis for and integral to the conclusions of the DisparityStudy Is it not then part of the information needed to fully review and comment on the DisparityStudy Was it not provided by CHA to WSDOT for review We are trying to fully understand thestudy and if this directory was part of the study why would it need to be obtained by a publicrecords disclosure It should be in the public domain and not restricted from ease of access If you are sure that a public records request is needed Irsquoll start that process but we will need tonote that point of fact when we submit our public comments If you are able to reconsider please let me know Respectfully

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Thursday December 7 2017 126 PMTo Dave Gent - WAPA ltdavegentasphaltwacomgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hello Dave I hope you are doing well

That information would likely be obtained through a public disclosure request Best Regards Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Dave Gent - WAPA [mailtodavegentasphaltwacom] Sent Thursday December 7 2017 113 PMTo Bayne Jackie ltBayneJwsdotwagovgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Jackie Can you please provide an electronic file or provide a weblink for the Master DBE Directory thatColette Holt amp Associates developed for the WSDOT Disparity Study 2017 (first referred to on Page 8of the Disparity Study) I did not see a link to this Master DBE Directory within the study Thanks

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Friday October 27 2017 1118 AMTo Kenyon Wendy ltKenyonWwsdotwagovgt Adams E W ltewadamssystemsclcomgtAdekoyaAndrew ltandrewadekoyabccomgt AlyssaBalllegwagov Anindita Mitraltamitracrea-affiliatescomgt APRISeattlehotmailcom Armstrong CharlotteltCharlieAatgwagovgt Ato Apiafi Architects PLLC ltatoaatoapiaficomgt benzfanwaorgBerntsen Teresa (OMWBE) ltTeresaBomwbewagovgt Billingsley Andrealtbillinawsdotwagovgt Bramlet Erica ltEricaBramletlegwagovgt Brooks Julius

ltBrooksJwsdotwagovgt Brown Jason ltjbrownldccorpcomgt bwallacenwlaborersorgCamden Allison ltCamdenAwsdotwagovgt carlllivingstongmailcom Cerda OscarltCerdaOwsdotwagovgt Christopher Chris ltChristCwsdotwagovgt ckerneycaawagovdanplatinumbusinessgroupcom davegentasphaltwacom David BalltDavidsignsnowmillcreekcomgt Davis Khalia ltDavisKhwsdotwagovgt Davis RaShelle (GOVltrashelledavisgovwagovgt Dayton Jo ltDaytonJwsdotwagovgt ddhondtagcwacomDebbieDriverlegwagov Dennis ltdennisahlkiewitcomgt dmcleodnwlaborersorgdrart6651gmailcom Duncan Enid lthigradeincgmailcomgt EltonltEltonwashingtonstatetruckingcomgt eprincecaawagov flemosldccorpcomfmartineznwmtnmsdcorg geoffshookatkncom glovelady ltgloveladyexcelglovescomgtGrabow Katie ltkgrabowsystemsclcomgt Guilfucci Jackie ltJackieGuilfucciskanskacomgt HealyLinda ltHealyLwsdotwagovgt Higginbotham Breanne ltHigginBwsdotwagovgt HirscheyClaudia ltclaudiahirscheycomcastnetgt Holt Colette ltcoletteholtmwbelawcomgt Huff JohnltHuffJwsdotwagovgt Iniguezchawagov JacksonMaynardlegwagov Jimmy Matta(jmattaalcantarassoccom) ltjmattaalcantarassoccomgt kellywickergovwagov Key EarlltKeyEwsdotwagovgt Kirk Jon ltjkirkwhhnfscomgt Kris Purrier ltkpurrierhwageocomgtleewabuildingtradesorg lesliejonessoundtransitorg Liz Evans ltlevansagcwacomgt LopezErin lterinlopezdeswagovgt Martha Cerna ltMarthaPSLCCORGgt Martin-Arnold EdwinaltMartinEwsdotwagovgt Mary Lerdahl ltmarydbeelectricinccomgt McCarty Hannahlthannahmccartylegwagovgt Melissa L Boyles ltmelissaboylesmwbelawcomgt Metcalf KeithltMetcalKwsdotwagovgt michaelicapaawagov Michelle ltMichelleTTCC26netgt MillarRoger ltMillarRwsdotwagovgt Nakamura Jason ltjasonnakamura1-alliancecomgtNavarroLportseattleorg olliepmt-solutionscom pastorbanksesbctacomacom PatrickHughes ltphugheshughesgroupbizgt Petersen Jodi (FHWA) ltJodiPetersendotgovgtrabbottliunaorg rcarmsteadgmailcom ricemportseattleorg Riley D ltdrileylydigcomgtSeling ltSelingjpfranciscomgt sherryharrisergosynchcom Stell MellodyltStellMwsdotwagovgt terigobintulaliptribes-nsngov timwilliamfactorycom tinaterra-tdicom tkellyldccorpcom tomgaetzmsncom vcollinsacec-waorgverlenejazzmsncom Wang Albert ltWangAatgwagovgt Waugh GregltGregWMaxKuneyComgt Yates Henry ltYatesHWSDOTWAGOVgtCc Tom Gaetz lttomgaetzmsncomgt Dave Gent - WAPA ltdavegentasphaltwacomgt VanCollins ltvcollinsacec-waorggt Daniel Seydel II ltdanplatinumbusinessgroupcomgt MaynardJackson ltJacksonMaynardlegwagovgt Carl Livingston ltcarlllivingstongmailcomgt DonMcLeod ltdmcleodnwlaborersorggt JIMMY MATTA ltjimmymattamsncomgt Prince Ed(CAAA) lteprincecaawagovgt David DHondt ltddhondtagcwacomgt Irene Reyesltgloveladyexcelsupplycompanycomgt McDaniel Craig ltMcDaniCwsdotwagovgtsherryharrisergosynchcomSubject WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Good morning On Monday October 30th WSDOT will be releasing the proposed overall Federal HighwayAdministration Disadvantaged Business Enterprise goal attached for public comment throughDecember 15 2017 This overall DBE goal is based upon the recently completely DBE ProgramDisparity Study WSDOT is proposing a 19 percent overall DBE participation goal on Federal Highway

Administration-funded projects for federal fiscal years 2018 through 2020 DBE goals fortransportation projects that receive federal funds represent a percentage of the value of work inwhich minority- and women-owned businesses should participate Once finalized and submitted toFHWA early next year the goal will be effective through Sept 30 2020

The purpose of the DBE program is to create a level playing field for firms owned and operated bydisadvantaged individuals wanting to participate in federally assisted highway transit and aviationprograms The attached overall DBE goal is for FHWA funded projects WSDOT will be updating theFTA and FAA overall DBE goals in the near future

If you have any questions please contact Earl Key Director of the Office of Equal Opportunity at3607057091 or KeyEwsdotwagov Thank you Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

  • Proof-Of-Publicationpdf
    • Mediapdf
      • AGC
      • Daily Journal
      • Daily Medium
      • DBEGood
      • OMWBE
      • Seattle Medium
      • Tabor 100
      • The Chronicle
      • Tukwila
        • King County
          • Public-Comments-20180111pdf
            • 19 DBE Requirement(1)
            • AGC Comments on Proposed 10 Goad
            • Backstrom Curb amp Sidewalk
            • comments on WSDOT proposed DBE goal
            • Cowlitz County Public Works
            • DBE Contracting goals
            • DBE Goal
            • DBE Program Disparity Study
            • Disparity Study Comments from City of Spokane
            • FW_ WSDOT News - WSDOT seeks comments on propos
            • Proposed DBE Goals
            • RE_ DBE Contracting Goal Comments
            • Re_ DBE Goal Comments
            • Re_ Seydel Dan - WSDOT Disparity Study Present
            • Support for WSDOTs proposed DBE goal
            • Why we need mandatory goals
            • WSDOT DBE Goal - Comment in support
            • WSDOT Proposes DBE goal of 19
            • WSDOT propsed DBE Goals
            • WTS - Disparity Study Comment Letter

Page 3

minorities continue to face constraints on their entrepreneurial success based on race These constraints negatively impact the ability of firms to form to grow and to succeed

While relevant and probative to whether the Department needs to continue to employ race- conscious measures to meet its DBE goal as well as the types of supportive services and other approaches to level the playing field WSDOT should consider the Study recognized that these results are difficult to quantify within the rigors of the strict scrutiny standards

Step 2 Adjustment

WSDOT considered the current capacity of DBE firms to perform work in this market area as measured by the amount of work performed by DBEs on FHWA-assisted projects over the past five years Following the USDOTrsquos Office of Small and Disadvantaged Business Utilizationrsquos Guidance on Tips for Goal-Setting in the Disadvantaged Business Enterprises (DBE) Program the Department combined the step 1 base figure with its median past DBE participation for an average of 171 (step 1 base figure of 190 + median past participation of 151 = 341 divide2 = 171 )

Projection of Race-Neutral vs Race-Conscious Goal Attainment

The regulations require that WSDOT must meet the maximum feasible portion of its overall goal by using race-neutral measures to facilitate DBE participation Ongoing and new initiatives seek to reduce discriminatory barriers increase capacity and level the playing field for the participation of DBEs and other small contractors They are also designed to assist WSDOT in meeting the increased goal for DBE participation by prime contractors and subcontractors

The Study found that DBEs face disparities in full and fair access to WSDOTrsquos FHWA-assisted contracts While not all disparity ratios in every industry code for each racial and ethnic group and White females groups were statistically significant large disparities remain overall Further DBE utilization on state-funded contracts for which no goals were set was extremely low Coupled with the additional anecdotal and economy-wide evidence the Study findings paint a clear picture of a mostly closed market These results strongly suggest that narrowly tailored contract goals remain necessary to ensure nondiscrimination

Past DBE race-neutral participation

To estimate the portions of the goal to be met through race-neutral and race-conscious measures WSDOT evaluated past race-neutral DBE participation as defined in 49 CFR sect 2651(a) WSDOTrsquos median percentage on federal-aid contracts through race-neutral means for FFY 2012- 2016 was 22

Federal Fiscal Year Total DBE

Participation Race-Neutral Participation

Race-Conscious Participation

2012 152 21 131 2013 164 23 141 2014 141 18 123 2015 117 22 96 2016 151 27 125

Therefore WSDOT projects that it will meet 22 of its overall goal through race-neutral measures

Page 4

and 168 of its overall goal through race-conscious contract goals WSDOT will monitor DBE participation throughout the year to adjust its use of contract goals to ensure that their use does not exceed the overall goal

Race-neutral measures to achieve DBE participation

WSDOT will meet the maximum feasible portion of its triennium goal through the race-neutral measures listed below WSDOT will maximize outreach efforts to the DBE contracting community and the use of DBE Support Services to increase the utilization and support of DBEs that participate on upcoming WSDOT projects

Support Services

WSDOT provides the following supportive services to DBEs

Immediate and long-term business management record keeping financial and accounting capabilities

Long-term development assistance to increase opportunities to participate in more varied and significant work and to achieve eventual self-sufficiency

Programs on contracting procedures and specific contract opportunities Assistance in obtaining bonding or financing Assistance to start-up firms particularly in fields with historically low DBE participation Identification of potential highway-related DBEs and prequalification assistance and In an effort to increase awareness of the DBE Supportive Services program WSDOT has

developed a DBE Supportive Services hotline (888) 259-9143 email address dbesswsdotwagov and website wwwwsdotwagovEqualOpportunityDBEhtm

Outreach and Networking

WSDOT engages in a number of outreach efforts to minority and womens organizations to enhance DBE opportunities in Department projects These efforts include but are not limited to

Sponsorship of the annual Regional Contracting Forum held in Seattle Washington in

partnership with state local and federal agencies Last years event attracted approximately 2000 individuals

WSDOT works with organizations such as the Northwest Minority Supplier Diversity Council Women in Construction USDOTs Small Business Transportation Resource Center the Womens Transportation Seminar Tabor 100 the National Association of Minority Contractors Association of General Contractors American Council of Engineering Companies the Office of Minority and Womens Business Enterprises and other groups to promote the DBE Program

WSDOT has established a Washington State DBE Work Group comprised of WSDOT divisions and local agencies among others that will advise WSDOT on DBE issues including but not limited to goal setting outreach training etc

Complaint Procedures

WSDOT has implemented procedures to process complaints of discrimination in the operation of the DBE Program and against contractors receiving WSDOT contracts This will ensure prompt uniform and fair responses to allegations of unlawful conduct so that DBEs non-DBEs and interested persons can have confidence in the integrity of WSDOTs operations

Page 5

WSDOT has implemented the Fraud Hotline to report fraud and abuse in the DBE Program The Fraud Hotline is available at (877) 856-3770 or fraudhotlinewsdotwagov

Prompt Payment

WSDOT continues to enforce its prompt payment provisions and processes It impresses upon its personnel and prime contractors the necessity and importance of meeting these requirements This is accomplished via WSDOT sponsored training for internal staff as well as external contractors which includes a portion on prompt payment

Emerging Contractor Support Initiatives

WSDOT recognizes the necessity of developing new and innovative race-neutral contractor support services and has begun implementing new programs and resources (eg Mentor Proteacutegeacute Program Minority Small Veteran and Womenrsquos Business Enterprise Program remodeled DBE Support Services Program etc) This process involved examining other states supportive services strategies as well as working with construction and minority and women business organizations It also includes soliciting input from the DBE Work Group and from construction and DBE organizations in this and other states

Counting race-neutral and race-conscious participation

Based on a 2012 Disparity Study WSDOT sought and received a waiver of the regulation that White females as a group are presumptively disadvantaged Under the terms of the waiver dollars paid to DBEs owned by such persons are not eligible for credit towards meeting DBE contract goals and WSDOT will count and report FHWA dollars to these firms as race-neutral participation

The 2017 Disparity Study found that White females do not enjoy a level playing field for USDOT- assisted contracts and recommended that firms owned by such persons should be returned to the status of goal credit eligibility WSDOT has sought a rescission of the waiver and awaits USDOTrsquos response Until such time as the waiver is rescinded WSDOT will count all participation by certified DBEs owned by White females as race-neutral participation

Public Participation

Consultation Per 49 CFR sect 2645 WSDOT employs a consultative process requesting input from organizations serving or representing DBEs minority-owned or women-owned businesses state or local offices of procurement federal state or local offices responsible for enforcing civil rights laws local labor offices and organizations etc WSDOT developed the proposed overall annual DBE goal and presents it to the DBE Work Group (individuals from various WSDOT divisions and offices and other state agencies) including

WSDOT Highways and Local Programs Division WSDOT Construction Office Washington State Attorney Generals Office WSDOT Ad amp Award Office WSDOT Public Transportation Division WSDOT Secretary of Transportation WSDOT Consulting Services Office WSDOT Aviation Division

Page 6

Washington State Ferries Washington State Office of Minority amp Womens Business Enterprises

Once the DBE Work Group reviewed and provided comments the overall DBE goal was revised accordingly

Upon DBE Work Group review the goal was then reviewed by the DBE Advisory Group comprised of minority women and trade organizations including but not limited to

Tabor 100 National Association of Minority Contractors Latino Civil Alliance American Council of Engineering Companies of Washington Laborers Local 440 Street Pavers Sewer Watermain and Tunnel Workers Washington Association of General Contractors Washington Asphalt Pavement Association Northwest Mountain Minority Supplier Diversity

Council Tribal Employment Rights Office Womens Transportation Seminar Washington Asphalt Pavement Association Women in Highway Construction

WSDOT followed the public participation requirements outlined in 49 CFR Part 26 This public participation process also included the publication of a press release on October 30 2017 requesting public comment for 45 days This publication also notified interested parties of public meetings to gain and understanding of the overall DBE goal at the following locations

Spokane November 28 Vancouver November 29 Webinar December 5 North Seattle December 7 Pasco December 131

The comments provided by these groups were taken into consideration and no quantitative evidence relevant to the determination of availability or utilization was submitted to revise the overall DBE goal

Published Notice To satisfy the public consultation requirements of 49 CFR sect 2645(d)(2) WSDOT will provided a press release to all media outlets in Washington State and publish the proposed overall annual DBE goal for the triennium in the Seattle Daily Journal of Commerce Included in its press release and publication is WSDOTs request for public comment and inspection of the goal methodology for 45 days from the date of publication

1 The December 13 Public Meeting was added with a separate press release to ensure sufficient statewide notice regarding the Proposed Overall DBE Goal

Page 7

Summary Pursuant to the requirements of 49 CFR sect 2645(a)(2) WSDOT submits this proposed triennium DBE Goal to FHWA for review and approval WSDOT followed the requirements of 49 CFR sect2645 in completing this FHWA DBE goal along with the OSDBU Guidance This proposed DBE Goal of 190 is based upon the availability of ready willing and able DBEs as established by the Disparity Study WSDOT anticipates race-neutral participation of 22 and race-conscious participation of 168

V i s i o n V o i c e V a l u e

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(httpwwwlinkedincomcompanyagc-of-washington)1200 Westlake Avenue N Suite 301 Seattle Washington 98109 Phone 2062840061 | Fax 2062854546 Privacy Policy (about-usprivacy-policy) | AGC of America Website (httpswwwagcorg)

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WSDOT proposes 19 DBE goal on FHA-funded projectsWSDOT is proposing a 19 percent overall DBE participation goal on Federal Highway Administration-funded projects for federal fiscal years 2018 through 2020 WSDOT will submit the proposal to FHWA early next year following a public comment period Once submitted to FHWA the goal will be effective through Sept 30 2020 (See info on public meetings below)

AGC is reviewing the proposal and considering its response AGC members are encouraged to send comments to AGC Chief Lobbyist Jerry VanderWood(mailtojvanderwoodagcwacom) 3603525000

WSDOT said the 19 goal is based upon the availability of ready willing and able DBEs as established by the WSDOT Disparity Study (See summary of the 2017 disparity study here (httpwwwwsdotwagovsitesdefaultfiles20160509WSDOTDisparityStudyPresentation2017pdf) see full study report here(httpwwwwsdotwagovsitesdefaultfiles20170911OEO-DisparityStudy-2017pdf))

In its report study authors Collete Holt and Associates concluded ldquoThese results provide the agency with the evidence necessary to narrowly tailor its DBE program for federal-aid contracts as required by 49 CFR Part 26 The statistical data and the anecdotal testimony provide a sufficient basis for the continued use of narrowly tailored remedial race- and gender-conscious measures to ensure full and fair access by all firms to WSDOT federally-funded prime contracting and associated subcontracting opportunitiesrdquo

WSDOT will host a series of public meetings to provide opportunities for individuals to comment in person

Spokane 2 ndash 4 pm Tuesday Nov 28 (WSDOT Eastern Region Headquarters 2714 N Mayfair St)

Vancouver 2 ndash 4 pm Wednesday Nov 29 (WSDOT Vancouver Headquarters 11018 NE 51st Circle)

Seattle 2 ndash 4 pm Thursday Dec 7 (WSDOT Northwest Region Headquarters 15700 Dayton Ave N Shoreline)

Those who are unable to attend one of the meetings can participate in a no-cost webinar from 230 ndash 430 pm on Tuesday Dec 5 Advance registration for the webinar is required Those interested in participating should email DisparityStudywsdotwagov (adminDisparityStudywsdotwagov)

Written comments can also be submitted by mail or email to Jackie Bayne Policy amp Reporting Manager Washington State Department of Transportation Office of Equal Opportunity PO Box 47314 Olympia WA 98504-7314 or to DisparityStudywsdotwagov (adminDisparityStudywsdotwagov20)

WSDOT will consider all written comments received through Friday Dec 15 2017

Documents detailing the methodology used for determining the FHWA DBE goals are available at wwwwsdotwagovequalopportunity(httpwwwwsdotwagovequalopportunity) or in person at the Transportation Building 310 Maple Park Ave SE in Olympia

Page 1 of 1WSDOT proposes 19 DBE goal on FHA-funded projects - AGC of Washington

1112018httpwwwagcwacompostswsdot-proposes-19-dbe-goal-on-fha-funded-projects

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October 31 2017

WSDOT proposes new DBE goalsBy JOURNAL STAFF

OLYMPIA mdash The Washington State Department of Transportation is proposing a 19 percent overall DBE participation goal on Federal Highway Administration-funded projects for federal fiscal years 2018 through 2020

WSDOT plans to submit the goals early next year and is seeking comments through Dec 15

To read this story in full or purchase a login subscription

HOME MyDJC BUSINESS CONSTRUCTION REAL ESTATE ARCHITECTURE amp ENGINEERING ENVIRONMENT TECH WEEKEND FEATURES SEATTLESCAPE

Page 1 of 2Seattle DJCcom local business news and data - Construction - WSDOT proposes new D

1112018httpwwwdjccomnewsco12105680html

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()

WSDOT seeks comments on proposed DBE contracting goal for highway projects - Seattle MtgWSDOT seeks comments on proposed DBE contracting goal for highway projects

Comments accepted through Dec 15

OLYMPIA ndash Contractors trade and labor organizations small and disadvantaged businesses and all others who may be interested in working with the Washington State Department of Transportation are invited to comment on the agencyrsquos proposed Disadvantaged Business Enterprise goal for Federal Highway Administration contracts

DBE goals for transportation projects that receive federal funds represent a percentage of the value of work in which minority- and women-owned businesses should participate WSDOT is proposing a 19 percent overall DBE participation goal on Federal Highway Administration-funded projects for federal fiscal years 2018 through 2020

Once submitted to FHWA early next year the goal will be effective through Sept 30 2020

The purpose of the DBE program is to create a level playing field for firms owned and operated by disadvantaged individuals wanting to participate in federally assisted highway transit and aviation programs

Connecting with communities WSDOT will host a series of public meetings to provide opportunities for individuals to comment in person

Spokane meeting was held Nov 28

Vancouver meeting was held Nov 29

Seattle

2 ndash 4 pm Thursday Dec 7WSDOT Northwest Region Headquarters15700 Dayton Ave N Shoreline

Page 1 of 3WSDOT seeks comments on proposed DBE contracting goal for highway projects - Seattl

1112018httpwwwomwbewagovabouteventswsdot-seeks-comments-proposed-dbe-contracting

Date Thursday December 7 2017 - 200pm to 400pm

Other ways to provide comment Those who are unable to attend one of the meetings can participate in a no-cost webinar from 230 ndash 430 pm Tuesday Dec 5 Registration for the webinar is required Those interested in participating should email DisparityStudywsdotwagov (mailtoDisparityStudywsdotwagov)

Written comments can also be submitted by mail or email Jackie Bayne Policy amp Reporting Manager Washington State Department of Transportation Office of Equal Opportunity PO Box 47314 Olympia WA 98504-7314 DisparityStudywsdotwagov(mailtoDisparityStudywsdotwagov)

Documents detailing the methodology used for determining the FHWA DBE goals are available for review at all WSDOT region headquarters offices and at the Transportation Building 310 Maple Park Ave SE Olympia They are also available online at wwwwsdotwagovequalopportunity (httpwwwwsdotwagovequalopportunity)

WSDOT will consider all written comments received through Friday Dec 15 2017

WSDOT keeps people businesses and the economy moving by operating and improving the states transportation systems To learn more about what were doing go to wwwwsdotwagovnews (httpwwwwsdotwagovnews) for pictures videos news and blogs Real time traffic information is available at wwwwsdotcomtraffic(httpwwwwsdotcomtraffic) or by dialing 511

Americans with Disabilities Act (ADA) Information Accommodation requests for people with disabilities can be made by contacting the WSDOT DiversityADA Affairs team at wsdotadawsdotwagov (mailtowsdotadawsdotwagov) or by calling toll-free 855-362-4ADA (4232) Persons who are deaf or hard of hearing may make a request by calling the Washington State Relay at 711

Title VI Statement to Public It is WSDOTrsquos policy to assure that no person shall on the grounds of race color national origin or sex as provided by Title VI of the Civil Rights Act of 1964 be excluded from participation in be denied the benefits of or be otherwise discriminated against under any of its federally funded programs and activities Any person who believes his or her Title VI protection has been violated may file a complaint with WSDOTrsquos Office of Equal Opportunity For additional information regarding Title VI complaintprocedures andor information regarding our non-discrimination obligations please contactOEOrsquos Title VI Coordinator at 360-705-7090

Page 2 of 3WSDOT seeks comments on proposed DBE contracting goal for highway projects - Seattl

1112018httpwwwomwbewagovabouteventswsdot-seeks-comments-proposed-dbe-contracting

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aacc~~949lt7BB7lt3726C4ltG3401324ltB7ltj=9

13 $amp()(

(+amp13ampampampampampamp$amp -011234567

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13

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AringEgraveAacuteEacuteAringcentAEligEcircEumlAcircCcedilIgraveEumlAacuteAacuteAgravecentfrac14frac12IacuteAacuteAgravefrac34AacuteIcircCcediliquestAEligiexclIumlAcircAacuteEumlETHEgraveNtildeOgraveOgraveEcircAacuteAEligIacuteiquestAEligfrac14AacuteAacuteyenAacuteiquestAEligCcedilAumliquestiquestAringiquestAacuteAEligAacuteiquestAEligAringAcircAacuteAtildeAringAtildeEcircAcircCcedilETHAtildeEcircAringiquestiquestAEligCcedilAtildeOacutefrac34Aacutefrac34CcedilAumliquestAEligCcedilAacute EacuteEacuteEacuteOcircOtildeEgraveOumlOcircOumlETHtimesIgravefrac12Agravefrac34AtildeiquestAEligfrac34iquestAtildeAgrave AringIgraveAacuteEgraveAringiquestEcircEumlAcircCcedilEgravefrac12CcediliquestAacute AacuteAgravefrac34AtildeiquestAEligEumliquestiquestAacutefrac34frac34frac34ETHCcedilAacuteAringAacuteiquestAEligCcedilAumlAringOslashCcediliquestAacuteOslashIgraveNtildeNtildeIgraveOgraveETHUgraveOgraveOgravefrac12AgraveAcirc AacuteAgraveCcedilAringiquestAacuteAumlAacuteEcirciquestAEligCcedil iquest 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iquestAumlcentAgraveiquestAEligCcedilAacuteAEligfrac14AacuteAacuteAacuteAringAEligAacute frac12AEligAacuteAacuteiquestAElig iquestAuml IumlAcircAacuteAcircAEligiquestAacuteEcircaumlRSaringPREcircAringiquestOWaeligccedilegraveeacuteNRecircSaringPRAringiquestaacute)LcopyXJeumldeg1ordf-raquodegraquolaquoreg

13

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httpwwwchronlinecomnewswsdot-seeks-public-comment-on-disadvantaged-business-enterprisearticle_f5c753ea-be61-11e7-966c-972f6769d8a6html

WSDOT Seeks Public Comment on Disadvantaged Business Enterprise By The Chronicle Oct 31 2017

The Washington State Department of Transportation will be accepting public comments about the departmentrsquos proposed Disadvantaged Business Enterprise goal for federal contracts

The goal is for transportation projects receiving Federal Highway Administration funds to have 19 percent of the value of work done by minority or women-owned businesses during the 2018 through 2020 fiscal years

ldquoThe purpose of the DBE program is to create a level playing field for firms owned and operated by disadvantaged individuals wanting to participate in federally assisted highway transit and aviation programsrdquo a press release from WSDOT said

A series of public meetings will be held to discuss the goal in Spokane Vancouver and Seattle

For those who are unable to attend the in person meetings a webinar will be hosted from 230 to 430 pm Thursday Dec 5 The webinar is free but registration is required To register email DisparityStudywsdotwagov

Page 1 of 2WSDOT Seeks Public Comment on Disadvantaged Business Enterprise | News | chronlin

1112018httpwwwchronlinecomnewswsdot-seeks-public-comment-on-disadvantaged-business-

Written comments can also be submitted by mail or email to Jackie Bayne policy and reporting manager for the department of transportation at Washington State Department of Transportation Office of Equal Opportunity PO Box 47314 Olympia 98504 or by email at disparitystudywsdotwagov Comments will be considered through Dec 17 2017

More information about the goal is available at all regional offices or at the main office in Olympia located at the Transportation Building 310 Maple Park Ave SE Olympia More information can also be found online at wsdotwagovequalopportunity

Page 2 of 2WSDOT Seeks Public Comment on Disadvantaged Business Enterprise | News | chronlin

1112018httpwwwchronlinecomnewswsdot-seeks-public-comment-on-disadvantaged-business-

larr Halfway there SR 8 fish barrier removal reaches milestone New SR 26 traffic cameras available rarr

WSDOT seeks comments on proposed DBE contracting goal for highway projects

December 1 2017 | No Comments

WSDOT is seeking comments on proposed participation goals for Disadvantaged Business Enterprises on upcoming Federal Highway Administration contracts a Yakima meeting has also been added to the schedule Source WSDOT Permalink WSDOT seeks comments on proposed DBE contracting goal for highway projects

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Page 1 of 3WSDOT seeks comments on proposed DBE contracting goal for highway projects | Tukw

1112018httptukwilatowingcom20171201wsdot-seeks-comments-on-proposed-dbe-contracting

From Liz EvansTo Bayne JackieSubject AGC Comments on Proposed 10 GoadDate Tuesday December 12 2017 50314 PMAttachments WSDOT Proposed Goal - AGC Comments FINALdocx

Hi there Jackie Attached are AGCrsquos comments on WSDOTs proposed 19 goal We will also be mailing you a copy Thanks for the opportunity to comment and we hope you find it helpful Regards Liz Liz Evans CAE Northern District ManagerAGC OF WASHINGTONTel 3602238757 | wwwagcwacom JOIN US for the 2018 AGC of Washington Annual Convention amp Technology Expo Jan 26

CUsersmwillmsPicturesInland AGCLogo_RGB_Half_5in

December 12 2017

Page 5

December 12 2017

VIA EMAIL amp US MAIL

Ms Jackie Bayne Policy amp Reporting Manager

Washington State Dept of Transportation

210 Maple Park Ave SE

PO Box 47314

Olympia WA 98504

RE WSDOT Proposed FHWA Triennium Disadvantaged Business Enterprise Goal

Dear Ms Bayne

This letter summarizes the views of the Associated General Contractors of Washington and Inland Northwest Associated General Contractorsrsquo (hereafter referred to collectively as AGC) regarding the Washington State Department of Transportationrsquos (WSDOT) recently proposed FHWA Triennium Disadvantaged Business Enterprise (DBE) Goal (the ldquoProposed Goalrdquo) AGC shares WSDOTrsquos commitment to continue the promotion of DBE firms but AGC is concerned the Proposed Goal which is a significant increase from the previous goal and actual utilization may have unintended consequences and could impose significant burdens on both prime contractors and DBE contractors alike AGC requests WSDOT reconsider its Proposed Goal and adjust the Proposed Goal to account for inevitable availability and capability issues including the lack of a formal retraction of the non-minority woman owned business waiver that makes up over half of the Proposed Goal Implementing an unachievable goal will only be to the detriment of the DBE program

1 AGCrsquos Membersrsquo Interest in WSDOTrsquos Proposed Goal

Together AGC of Washington and Inland Northwest AGC represent and serve the commercial industrial and highway construction industry These professional associations of commercial contractors are comprised of more than 900 members who have joined together to enhance the performance of their industry and build a better climate for construction operators many of which are small and closely held businesses

Like WSDOT AGC is firmly committed to the principals of equal opportunity and promoting efforts to ensure minority women and veteran owned businesses are properly represented In both its political advocacy and membership programs AGC has demonstrated its commitment to increasing the representation of disadvantaged groups in the construction industry as both workers and owners of firms For AGC this is both an issue of principles and a practical one The construction industry as a whole is facing a critical shortage of workers and it is imperative that the industry attract new participants Among AGCrsquos activities demonstrating this commitment are the following

middot AGC has an ongoing ldquoContractor Exchangerdquo program through which small minority- and women-owned subcontractors are offered one-on-one networking opportunities with established general contractors

middot The AGC Education Foundation provides financial support to construction-related programs in K-12 schools and conducts outreach specifically targeted at low income disadvantaged and female students

middot More than 2500 students most from inner-city schools participate in annual AGC-sponsored Construction Career Days in King Pierce and Spokane Counties

middot AGC supports the Pre-Apprenticeship Construction Training (PACT) program at Seattle Vocational Institute This program is focused on preparing underrepresented communities to be highly qualified applicants and successful apprentices in the construction trades

middot AGC is a sponsor of the Turner School a training course for minority- and women-business owners in the construction industry

middot AGC supports the National Association of Women in Construction (NAWIC) which provides professional development and other services to its members

middot AGC routinely supports legislative efforts aimed at supporting small businesses and encouraging small business participation

middot AGC recently formed a Diversity and Inclusion Committee comprised of both prime and DBE participants The purposed of the committee is to expand opportunities for DBE members and to help AGC consider diversity in decision-making Recently AGC approved a deeply discounted introductory dues structure for certified DBE members

middot AGC is a WSDOT partner on the new mentorproteacutegeacute program

AGCrsquos experience has been that the most effective approach is to help make emerging businesses successful through outreach training and public policies that will grow their capacitymdashnot by imposing mandates without clear evidence as to the mandates feasibility

2 WSDOTrsquos Proposed Goalrsquos Impacts To The Construction Industry

WSDOTrsquos Proposed Goal is 190 The Proposed Goal is based upon the recent Collete Holt amp Associates (CHA) Disparity Study released in 2017 With respect to availability the Disparity Study reports the following weighted availability for FHWA-Funded projects

Thus the 190 goal factors in Black Hispanic Asian Native American and White Women into its availability As indicated however this 19 goal raises a number of concerns

a WSDOTrsquos 19 Proposed Goal Represents a Significant Increase Without Concrete Evidence of Available And Capable DBE Firms

First WSDOTrsquos Proposal Goal of 190 represents a significant increase as compared to actual DBE participation (141 in 2014 117 in 2015 and 151 in 2016) as well as the last FHWA proposed goal of 116 for 2014-2018 See WSDOTrsquos Proposed Goal and Interim FHWA Overall DBE Goal Methodology FFY 2014-2018 The Proposed Goal is 74 more than the last goal which represents a 638 increase and a 52 increase over the average actual utilization for 2014-2016 While Contractors were exceeding the previous 116 goal this is primarily based on the fact that WSDOT previously requested a waiver to consider non-women-owned businesses and the waiver was not granted and effective until June 2017 (meaning that for 2014-2016 women were counted towards race-conscious goals and inevitably a higher overall percentage of DBE firms were utilized)

Contractors struggle to meet present DBE goals due to the relatively low availability of experienced and certified DBE firms By increasing the goal WSDOT is understandably trying to increase the participation of underrepresented firms Drastically increasing the goals (by over 5 of actual utilization) without concrete evidence that there is sufficient availability andor capability of such firms however will have the opposite effect Notably this lack of availability and capacity of DBE firms was discussed in detail in the Disparity Study For example the CHA Disparity Study notes a number of concerns of DBE firms while technically ldquoavailablerdquo with respect to the goal percentages are unable to meet the requirements necessary to fulfill the contract including purchasing the equipment necessary having available labor and ability to meet insurance and financing requirements Thus while there may be ldquoavailablerdquo firms there is not clear evidence (and if fact evidence to the contrary) that those available firms are capable and available to perform the majority of the FHWA-Funded contracts let by WSDOT

An additional example affecting DBE capability and availability that is not factored into the CHA Disparity Study or WSDOTrsquos Proposed GOAL is DBE ability to enter into Project Labor Agreements (ldquoPLAsrdquo) WSDOT has indicated their interest in pursuing a PLA AGC Members have raised concerns based on repeated experiences that many DBE firms due to the administrative and cost impacts refuse to enter into PLAs precluding those firms from performing certain work or increasing costs Again this lack of ability (or refusal) to perform should also be factored into WSDOTrsquos Proposed Goal which is not currently the case

b The Proposed Goal Does Not Account For The Current Non-Minority Woman Owned Business Waiver Still In Place

Second despite the significant increase WSDOT does not account for the current waiver of non-minority women owned businesses that remains in place As noted in WSDOTrsquos proposal comments WSDOT previously sought and received a waiver of the regulation that White females as a group are presumptively disadvantaged This waiver was heavily criticized by many including AGC and the results of the most recent CHA Disparity Study confirmed that White females are presumptively disadvantaged and do not enjoy a level playing field for USDOT-assisted contracts Therefore the CHA Disparity Study recommends that this group be returned to the status of goal credit eligibility WSDOT has sought a recession of the waiver but has not yet to our knowledge received a rescission of the waiver Nevertheless the 19 Proposed Goal still includes White women In fact of the 19 availability percentage White women represent 103 (over half) Accordingly for WSDOT to proceed with the 19 goal WSDOT must receive the rescission of the waiver for this goal to be even remotely possible to achieve If the rescission is not received the Proposed Goal must be adjusted

C The Proposed Goal Does Not Account For Availability Differences Across The State

Third the Proposed Goal does not account for availability difference across the state Eastern Washington contractors with an even scarcer pool of available and qualified DBE firms in the area as is the case now will be forced to subcontract to Western Washington firms paying transportation and per diem premiums for such work The CHA Disparity Study again provides numerous excerpts of anecdotal evidence demonstrating that the goals in Eastern Washington are too high A few of the contractor comments on the topic are as follows

When you apply those same goals to a different geographic region a different project site for a large firm to meet those goals is difficult because theres not necessarily the expertise in parts of the project that were submitting on

Theres very few DBEs over here [in Eastern Washington] Next year theres going to be even more work over here What are we going to do with all these goals We always meet the goals like I said youve got three four DBEs over here to do all the work and then they cant perform

There are just no [minority-owned] DBEs available in eastern Washington

See CHA Disparity Study at p 54 Again these are factors that should be taken into account in developing the Proposed Goal or at the very least its application WSDOTrsquos Proposed Goal however is silent as to this significant issue

When the lack of available firms with the capacity to perform significant DBE projects is coupled with the increased goals the price of WSDOT contracts will inevitably increase to the significant detriment of Washington taxpayers and the public entities Inevitably with a lack of available qualified firms the lack of competition will become evident and small qualifying contractorsrsquo prices will increase due to supply and demand principles as they become selected for projects and less able to take on additional work These increased DBE contract values will be passed on to the public agency and taxpayers which translates into fewer dollars available for the sorely needed and promised infrastructure upgrades In addition the instance of bid protests will inevitably increase potentially delaying projects and further diverting agency resources from badly needed infrastructure upgrades to resolving unnecessary disputes or rebidding the projects altogether

Finally faced with such drastic and potentially impossible requirements if adjustments are not made contractors may focus more on demonstrating good faith efforts Both a contractor who meets the required goal and a contractor that demonstrates good faith efforts are eligible for award It is likely that the contractor relying upon good faith effortsmdashwho will have a lower price than the other contractor who sacrificed price to actually meet the goalmdashwill be selected by the public agency This outcome will erode the total percentage participation of eligible firms and would clearly be inapposite of WSDOTrsquos intentions

3 Conclusion and Request

AGCrsquos members have asserted these and multiple other concerns Implementing an increased goal across the state and all contracts without clear evidence of available DBEs capable of performing the work and meeting the project requirements will have significant and far-reaching impacts on the construction industry many of which work against the aim of the Proposed Goal itself AGC requests WSDOT reconsider its Proposed Goal of 19 and make adjustments to account for the capability of DBE firms the lack of a rescission of the non-minority waiver and the lack of available DBE firms in parts of the state This Proposed Goal and its impacts on the construction industry will be irrevocable and will be to the detriment of taxpayers It is prudent to address these adjustments before implementing the Proposed Goal

Very truly yours

David DrsquoHondtCheryl Stewart Executive Vice President AGC of WashingtonExecutive Director Inland Northwest AGC

AGC of Washington bull 410 11th Avenue SE 203 Olympia WA 98501

Inland Northwest AGC bull 4935 E Trent Avenue Spokane WA 99212

image3jpeg

image1png

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image4png

image5jpeg

From Steve SmithTo WSDOT Disparity StudyCc Bayne JackieSubject 19 DBE RequirementDate Thursday December 14 2017 31947 PMAttachments DBE List and NAICS Listingpdf

Disparity Committee I recently read in The Daily Journal of Commerce that WSDOT plans to adopt a 19 DBEstandard for all FHWA funded projects early next year Our company S amp K Painting Inc is abridge painting company which is based in and works exclusively in Oregon and Washington Ihave been the owner of this firm since 1978 when it was first established My concerns aboutthe proposed 19 DBE requirement is as follows 1 There are very few opportunities for subcontract work on bridge repaint jobs These jobsare usually limited to cleaning and painting the bridge The only other facet of the project istraffic control which is almost always 3 or less of the project total cost The traffic controldoes provide a very good subcontracting opportunity 2 The NAISC code of 238320 includes bridge painting but also includes house painting wallcovering rust proofing etc which have almost no similarities to bridge painting When thiscode is used to determine the number of available firms (DBE or otherwise) that are availablefor bridge painting project this badly skews the numbers I would suggest that bridge paintingcontractors make up less than 5 of all firms in NAISC code 238320 3 If future WSDOT bridge painting projects require a 19 DBE participation A The qualified pool of DBE subcontractors available to submit pricing on any facetother than traffic control will be very limited I reviewed a list of 19 certified DBE firms listedunder painting at the WSDOT website and only recognized one firm from past projects B The number of prime bidders and competition will fall The state will incur highercosts due to this fact C Prime bidders will be forced to subcontract unqualified contractors just to be eligiblefor contract awards This will likely reduce the quality of the finished project Thank you for considering my concerns I may not have verbalized my thoughts as well as Iwould have liked but I have been in this business for almost 40 years and truly believe what Ihave said Sincerely

Steve Smith President

SampK Painting incP O BOx 390clacKamaS OregOn 97015Phone (503) 557-5544Fax (503) 557-5566Cell (503) 260-5280Steveskpaintingcom

From Lei WuTo Bayne JackieSubject comments on WSDOT proposed DBE goalDate Thursday December 14 2017 94925 PM

To Whom It May Concern

Below is my comments

The WSDOT recommended DBE Goal for FHWA contracts of 190 is a small andimportant increase that can further achieve equity in WSDOTFHWA contracting I am insupport of the 19 DBE Goal

I also want to express my appreciation for the thoroughness of the WSDOT Disparity studyand how the study disclosed the disparity in WSDOT contracts that do not have a DBE orWBE goal ndash further reinforcing that all women-owned firms and minority owned firms faceequity issues

I remain concerned with the methodology required by the Code of Federal Regulations andcase law because of the dependence on the availability of firms in the calculation Anunintended consequence of removing either gender or race from the goal is that many of thesefirms would go out of business the availability decreases and the formula then results in asmaller DBE goal

Thanks

Lei

Lei Wu PE AICP

Principal CSL Consulting

LeiWucsl-consultingnet

(425)562-6275

From Stephanie SimpkinsTo WSDOT Disparity StudySubject DBE Contracting goalsDate Wednesday November 29 2017 20259 PM

My name is Stephanie Simpkins and I own North Star Enterprises It is a large womanowned traffic control company located in Spokane Washington My mother founded thecompany in 1984 and I have worked in this family owned business most of my life Ipurchased the business from her in 2013 and have been sole owner since then My company thrived under the Disadvantaged Business Enterprise (DBE) Programimplemented by Washington Department of Transportation and administrated by United StatesDepartment of Transportation What started as a small business with one truck and a fewemployees has grown over the years to be one of the largest traffic control companies in thestate and employee countless people every construction season It has not been an easy roadover the years being a woman in the construction industry never is and it is hard to say wherewe would be now if it werenrsquot for the assistance of the DBE program As you know in June of 2017 majority women were removed from the DBE program basedon a disparity study conducted in 2012 On March 2014 Washington Department ofTransportation requested a wavier to remove majority women from the DBE program Thishas had an immediate and drastic impact on my business and all who work for me From themoment the waiver was approved and my company could no longer be used as a condition ofaward at bid time I began losing work Most recently the 2018 North Central Region ChipSeal which we have worked on for the last 10 years This contract provides work forapproximately 40 employees for the entire construction season I have already been told byseveral contractors that with such a high UDBE goal they wont even be able to consider mefor this project This loss along with several other smaller contracts to date are painting avery dismal future for my business With all of this turmoil surrounding the future of my business I find it frustrating to say theleast that WSDOT has chopped me off at the legs by not allowing my firm to count for theCOA but can use the little participation I may still contribute to help them reach their overallstate goal How is this fair If the contractors canrsquot utilize my business than neither shouldWSDOT As far as setting future state DBE contracting goals it looks as if the bar will beraised once again all while excluding the largest subset of useable DBErdquoS To me raising theoverall state goal at this time (which is already challenging to meet) with women DBErsquosexcluded from the program seems horribly ill timed

From Karen R BannishTo Bayne JackieSubject DBE GoalDate Tuesday December 5 2017 32549 PM

Hello Jackie ndash thank you for the webinar today concerning the proposed Overall DisadvantagedBusiness Enterprise Goal for the Federal Highway Administration I understanding the DisparityStudy much better now and checked the document you mentioned on the WSDOT website Pacific County is located in the Southwest corner of the State of Washington The tip of the LongBeach Peninsula would be 2 frac12 hours from Interstate 5 Our federal work primarily includes strictlyoverlay projects with 12 or fewer items of work included in the contract When bidding a project(our contracts are usually less than $500000) we sometimes received a single bid from the process Due to our proximity and the small cost for the work it is difficult to entice DBE participation Thereare simply no items of work that can be performed Having a mandatory DBE goal placed upon theproject in a rural area simply to meet the disparity guidelines will only increase the cost of theproject We feel the goals should be set in balance with the cost of the project and the items of work and notsimply directed to meet the overall goal

Karen BannishSenior Engineering TechnicianPacific County Department of Public Works211 North Commercial StreetRaymond WA 98577(360) 875-9368

From Dawn EgbertTo Bayne JackieSubject DBE Program Disparity StudyDate Tuesday December 5 2017 23825 PM

Hi JackieThank you for the great information on the call today You talked about the small works rosterbriefly We had a conversation in our office today about small contractors who are signed up on thePort of Vancouverrsquos small works roster Our team has had opportunity to talk to some of thecompanies on our roster who are women owned or minority owned businesses but they arenrsquotsigned up as a DBE firm When asked about that theyrsquove mentioned that they donrsquot want to fill outthe additional paperwork required to obtain the certification as a DBE As for the DBE goal at 19 it doesnrsquot seem to present an issue for the majority of our projects ndashespecially those where we would apply FHWA funds if granted However if we did happen to have aproject that didnrsquot include classifications of work where DBE certified participants are availablewould there still be an exception or a good faith efforts clause Thanks again for your time Dawn EgbertProcurement Services Manager3103 NW Lower River Road Vancouver WA 98660Direct 3609921102 | Cell 360448-9867 | Main 3606933611 | Fax 360735-1565degbertportvanusacom | wwwportvanusacom | available port properties Leadership | Stewardship | Partnership

From Feist MarleneTo WSDOT Disparity StudyCc Simmons Scott M Twohig KyleSubject Disparity Study Comments from City of SpokaneDate Friday December 15 2017 52226 PMAttachments image010png

image011pngimage012png

December 15 2017 Jackie BaynePolicy amp Reporting ManagerOffice of Equal OpportunityWashington State Department of TransportationPO Box 47314Olympia WA 98504-7314 RE Proposed DBE Contracting Goal for Highway Projects Dear Ms Bayne The City of Spokane would like to provide comments related to proposed DisadvantagedBusiness Enterprise Goal for Federal Highway Administration (FHWA) contracts by theWashington State Department of Transportation (WSDOT) Office of Equal Opportunity Manyof our projects receive funding from FHWA and as such the proposed new goals areapplicable to City work The City is supportive of the programrsquos purposemdashldquoto create a level playing field for firmsowned and operated by disadvantaged individuals wanting to participate in federally assistedhighway transit or aviation programsrdquo However the City is concerned about the ability to achieve the proposed utilization rate of upto 19 percent for DBEs in Eastern Washington considering the low number of DBEs in ourregion and the record construction under way in the City and in our region WSDOTrsquos DBE Program Disparity Study notes ldquoContractors in Eastern Washington repeatedlyreported that the goals on projects in their area are too highrdquo The Inland NorthwestAssociated General Contractors group notes that only about 12 DBEs in construction fields areavailable in the greater Spokane area Meanwhile the City has performed record construction in each of the last three years withproject totals hovering around $100 million Our City work has been bolstered by anaggressive program to improve water quality in the Spokane River Our local school districtsand our neighboring jurisdictions also have aggressive construction programs right now

Additionally we expect WSDOTrsquos work in this region to accelerate as North Spokane Corridor(NSC) construction proceeds At times our area is reaching the limits overall of our contractingcommunity the City has worked to release its projects in the first quarter of the year as muchas possible to lock in contractors and receive better pricing The capacity of existing DBEs in our region simply cannot meet that current high demand Some DBE firms are tempted to agree to more work in these times but we have found that insome cases DBEs have stretched themselves too thin On two recent City projects generalcontractors were unable to meet DBE goals as a result of DBE firms that couldnrsquot fulfill theircommitments for providing personnel or equipment It also seems implausible to expect DBEs from the West Side to mobilize teams to work on Cityof Spokane projects in large numbers In fact the Disparity Studyrsquos author responded at arecent meeting on this topic that a DBE from the West Side only very rarely completes workon the East Side of the state We would also be concerned about moving the good-paying jobs that construction providesoutside of our region The Cityrsquos median household income is $44350 considerably lower than theState of Washington MHI of $64129 and the Seattle MHI of $77351 Our leaders are working tocreate good-paying jobs for our citizens not export them to an already wealthier part of the state Additionally these projects are also funded with local dollars and our citizens expect their money toput their neighbors to work With the above considered the City is seeking

middot DBE goals for the 2018-2020 compliance period for Eastern Washington that arereflective of the current availability of DBE firms in our region

middot The re-inclusion of non-minority women owned DBEs in achieving DBE goals InSpokane non-minority women owned DBEs make up the majority of the availableDBEs And current information shows that women in Spokane overall still lag behindmen in opportunities and wages The Cityrsquos own ldquoGender and Racial Equityrdquo reportfrom 2016 noted that overall working women earned 783 percent of the earnings ofworking men in 2014 down from 827 percent in 2009 We need to lift up all women

middot The development of WSDOT programs to encourage the growth of existing andnew DBEs who can be used on street and highway projects We are encouraged by theproposed mentorproteacutegeacute program to increase the number and capacity of DBEs inEastern Washington Programs that address other barriers such as assistance withcompleting documentation or access to bonding capacity also could aid growth ofDBEs

middot The ability for WSDOT to adjust goals on a project if a selected DBE is unable tocomplete its commitments on a project This would help enable our contractors totake a chance on a new or inexperienced DBE to complete work

middot Recognition of local programs that strive to increase diversity in the work force Forexample the City operates a robust apprenticeship program that requires 15 percentof the labor hours on public works jobs greater than $600000 to be performed byapprentices The apprentice programs in our region are stepping up recruitmentefforts and are specifically seeking to recruit more youth women and minorities intoapprentice slots

As we seek to achieve the goal of increasing participation in street and highway constructionby companies owned by disadvantaged individuals we must also acknowledge that businessdevelopment and growth happens over time We must lay the groundwork now to build abase of DBEs that can help us achieve higher utilization goals over time Sincerely Marlene FeistDirector of Strategic DevelopmentPublic Works amp UtilitiesCity of Spokane

Marlene Feist | City of Spokane | Public Works Director of Strategic Development5096256505 | cell 5097109214 | mfeistspokanecityorg | spokanecityorg

From Hall MattTo WSDOT Disparity StudySubject FW WSDOT News - WSDOT seeks comments on proposed DBE contracting goal for highway projectsDate Friday December 15 2017 11956 PMAttachments WSDOT proposed DBE goal through 2020pdf

From Hall Matt Sent Friday December 15 2017 117 PMTo BayneJwsdotwagovCc Keniston Rick (KenistRwsdotwagov) MolyneKwsdotwagov SusanWilsonclarkwagovSubject WSDOT News - WSDOT seeks comments on proposed DBE contracting goal for highwayprojects Hello Jackie Please see our comments attached regarding the WSDOT proposed DBE goals Thanks for the opportunity to provide comments Matt HallClark County Public Works Washington State Department of Transportation ndash NEWSHeadquarters ndash 310 Maple Park Avenue SE ndash Olympia WA 98504-7314 ndash 360 705-7000 FOR IMMEDIATE RELEASEOct 30 2017 Contact Jackie Bayne Office of Equal Opportunity 360 705-7084

WSDOT seeks comments on proposed DBEcontracting goal for highway projectsComments accepted through Dec 15OLYMPIA ndash Contractors trade and labor organizations small and disadvantaged businessesand all others who may be interested in working with the Washington State Department ofTransportation are invited to comment on the agencyrsquos proposed Disadvantaged BusinessEnterprise goal for Federal Highway Administration contractsDBE goals for transportation projects that receive federal funds represent a percentage of thevalue of work in which minority- and women-owned businesses should participate WSDOTis proposing a 19 percent overall DBE participation goal on Federal Highway Administration-funded projects for federal fiscal years 2018 through 2020Once submitted to FHWA early next year the goal will be effective through Sept 30 2020The purpose of the DBE program is to create a level playing field for firms owned andoperated by disadvantaged individuals wanting to participate in federally assisted highwaytransit and aviation programsConnecting with communitiesWSDOT will host a series of public meetings to provide opportunities for individuals tocomment in person

Spokane

2 ndash 4 pm Tuesday Nov 28WSDOT Eastern Region Headquarters2714 N Mayfair St Spokane

Vancouver

2 ndash 4 pm Wednesday Nov 29WSDOT Vancouver Headquarters11018 NE 51st Circle Vancouver

Seattle

2 ndash 4 pm Thursday Dec 7WSDOT Northwest Region Headquarters15700 Dayton Ave N Shoreline

Other ways to provide commentThose who are unable to attend one of the meetings can participate in a no-cost webinar from230 ndash 430 pm Tuesday Dec 5 Registration for the webinar is required Those interested inparticipating should email DisparityStudywsdotwagovWritten comments can also be submitted by mail or emailJackie Bayne Policy amp Reporting ManagerWashington State Department of TransportationOffice of Equal OpportunityPO Box 47314Olympia WA 98504-7314DisparityStudywsdotwagovDocuments detailing the methodology used for determining the FHWA DBE goals areavailable for review at all WSDOT region headquarters offices and at the TransportationBuilding 310 Maple Park Ave SE Olympia They are also available online atwwwwsdotwagovequalopportunityWSDOT will consider all written comments received through Friday Dec 15 2017 Hyperlinks within this release

WSDOT Region offices wwwwsdotwagovContactofficelocationhtmregion

WSDOT keeps people businesses and the economy moving by operating and improving the statestransportation systems To learn more about what were doing go to wwwwsdotwagovnews forpictures videos news and blogs Real time traffic information is available at wwwwsdotcomtraffic or bydialing 511 Americans with Disabilities Act (ADA) InformationAccommodation requests for people with disabilities can be made by contacting the WSDOTDiversityADA Affairs team at wsdotadawsdotwagov or by calling toll-free 855-362-4ADA (4232)Persons who are deaf or hard of hearing may make a request by calling the Washington State Relay at711 Title VI Statement to Public It is WSDOTrsquos policy to assure that no person shall on the grounds ofrace color national origin or sex as provided by Title VI of the Civil Rights Act of 1964 be excluded fromparticipation in be denied the benefits of or be otherwise discriminated against under any of its federallyfunded programs and activities Any person who believes his or her Title VI protection has been violatedmay file a complaint with WSDOTrsquos Office of Equal Opportunity For additional information regarding Title

VI complaint procedures andor information regarding our non-discrimination obligations please contactOEOrsquos Title VI Coordinator at 360-705-7090 To unsubscribe to WSDOT media releases please reply and type REMOVE in the subject line

This e-mail and related attachments and any response may be subject to public disclosure under state law

From Cochrane EmilieTo WSDOT Disparity StudyCc Eugenis Susan Cowlitz Co Public Works - Brad BastinSubject Proposed DBE GoalsDate Thursday December 14 2017 85006 AMAttachments image002png

DBE Goals - Commentspdf

Please see the attached letter with comments regarding the proposed DBE Goals Ahard copy will be sent out today

Thanks

Emilie CochraneCowlitz County Public Works1600 ndash 13th Avenue SKelso WA 98626360-577-3030 ext 6523

From Michelle WolcottTo Bayne JackieCc Robideau Christopher LSubject RE DBE Contracting Goal CommentsDate Tuesday November 7 2017 65448 AMAttachments image001png

Thank you JackieWhat a relief to know that we have been heard and are not the only small business facing thisstruggle Your email is comforting

Yes you can provide us with additional assistanceLet me introduce my boss and Senior Vice President of Red Plains Professional Chris Robideau

Chris will be your contact from here since I will be leaving the company November 17th As a WA DBE we are ldquoeligible for limited DBE Support Services (SS) funding when funds becomeavailablerdquo When will this happen And are we registered or on a list to receive fundingIs the WSDOT ICR Training a prerequisite for the funding Or just helpful knowledge

Thank you for your time Jackie I will follow through with the training

Michelle Wolcott EIT Quality Control Engineer

2103 NE 129th Street Suite 201 Vancouver WA 98686 Office (360) 448-7999 Fax (360) 258-0274

wwwred-plainscom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Monday November 6 2017 332 PMTo Michelle Wolcott ltMichelleWolcottred-plainscomgtSubject RE DBE Contracting Goal Comments

Hi Michelle

Thank you for your interest in doing business with WSDOT I apologize for the lack of informationyou have come up against in your attempts to attain access to WSDOT ICR program

As you may well know WSDOT has recently completed a state wide agency specific diversity studyAnecdotal comments submitted with the study concur with your experience Not only did somerespondents find it difficult to become prequalified they also commented that the required indirectrate of 110 percent is too low to be profitable These requirements are currently under advisementby WSDOT and new DBE program requirements are currently in the process of seeking public input

As you are an OMWBE certified DBE in Washington State you will be eligible for limited DBE SupportServices (SS) funding when these funds become available At that time funds may become availableto assist you in your struggle to attain ICR eligibility Here is a link to WSDOTrsquos Indirect Cost RateTraining httpswwwwsdotwagovAuditICRTraininghtm If you would like me to find additionaltraining or information please let me know

If I can provide additional assistance of information please let me know

Best Regards

Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Michelle Wolcott [mailtoMichelleWolcottred-plainscom] Sent Tuesday October 31 2017 835 AMTo WSDOT Disparity Study ltDisparityStudyWSDOTWAGOVgtSubject DBE Contracting Goal Comments

HelloI have been in contact with WSDOT for 6 months sharing my disparaging story of beinga small DBE unable to submit SOQs for projects requiring a WSDOT Audited IndirectCost Rate Approval We do not have an in-house accountant and our outsideaccountant has explained to get all the paperwork together for WSDOT would take 40hours of work $9000 annually We cannot justify this cost to submit on a project thatwe may not acquire We have been directed to seek financial assistance from WSDOT Federal SBA andWashington State Office for Women and Minority Owned Enterprises all of whichprovided negative responses

As a DBE business in 11 states we are supporting the 19 incentive for federallyfunded contracts but we are frustrated in the fact that we will not be one of the luckyfew to participateWe have been in business 20 years From our Vancouver Washington office our clientsare the Native American tribes across the country with all contracts federally funded This summer alone the WSDOT ICR Approval has squashed our ability to submit on twoprojects that we were perfectly qualified to performI have attached previous emails to show a sample of who I have been dealing with

Thank you

Michelle Wolcott EIT Quality Control Engineer

ltimage001pnggt

2103 NE 129th Street Suite 201 Vancouver WA 98686 Office (360) 448-7999 Fax (360) 258-0274 wwwred-plainscom

From Michelle Wolcott Sent Monday July 10 2017 954 AMTo Harvey Schatzie ltHarveySwsdotwagovgtSubject RE WSDOT Indirect Cost Rate Process

Good Morning Schatzie

This is Michelle Wolcott from Red We spoke Friday June 30th about the ICRprocess and you were very encouraging I relayed the information to my boss who ishere in Vancouver then he shared with the president bookkeeper and our accountantin Oklahoma We had FAR compliance with Oklahoma DOT in 2015 so we are noteligible for the Safe Harbor Program Our account said our timekeeping system doesnot breakdown the hours and pay in the format WSDOT wants to have it presented andto get the documents in order would take the CPA and an assistant $9000 in paidhours of work It turns out this would have to be annually The other option is to hirean outside CPA firm to do the audit for us at $20000 annually

Our president said in the past we received funding assistance from the Stateof Oklahoma to get our ICR approval Does WSDOT offer any financial assistance for small businesses to reach compliance We are also a DBE in WA I have requested the same information from WA PTAC at theVancouver Chamber of Commerce and from WA Office of Minority and Women OwnedBusiness Enterprises and they both said there was nothing but suggested to askWSDOTThank you for your helpMichelle Wolcott EIT

Hello Michelle sorry but I am not aware of any grants But I was looking at this andthere is a POC at the bottom you may try to discuss the audit issuesHollyHolly BoehmeBusiness Opportunity Specialist | 8(a) Business Development ProgramUS Small Business Administration bull Seattle District Office

Hello Michelle -

Thank you for your email Im not aware of any funding available for thispurpose but do agree its quite a bit for a DBE firm to have as an expense Mostof the firms I work with do a lot more work on the Oregon side so perhaps thereare programs available that I just havent heard of Im copying my colleagueHoly Boehme in our Seattle District Office to see if they are aware of any suchassistance

Holly might there be some small business incubators or other resources availablein WA to help a small firm with the expense of getting a WSDOT AuditedIndirect Cost Rate approval Please reply all with anything you may have

Thank you

Yuri Yoshida Dyson Business Opportunity SpecialistUS SMALL BUSINESS ADMINISTRATION Portland District OfficePhone 503-326-6692 Fax 202-292-3872 wwwsbagovor

From Troy HalbergTo Bayne JackieSubject Re DBE Goal CommentsDate Wednesday December 13 2017 35533 PM

JackieToday was another example of why the goals should not be raised There were 2 jobs which Iwas low on and did not get due to the high goals This is exactly what will happen when thegoals get raised The first job was the 9180 Anacortes Ferry Paving Northeast Electric $244924 and UDBE $318000 Second job was the 9172 SR 9 East Junction Job Northeast Electric $68503 and UDBE $76300

Does this seem like a good way to spend the tax payer money I do not see how we are tosurvive if the goals get to 21

Thanks

Troy HalbergOffice360-225-7004Cell360-931-3990Fax360-225-7001

On Thu Nov 30 2017 at 1131 AM Bayne Jackie ltBayneJwsdotwagovgt wrote

Good Morning Troy

Thank you for taking the time to provide us with your experiences with the DBE Program TheWashington State Department of Transportation takes the public involvement process veryseriously and your comments will be taken into consideration prior to a final decision regardingthe overall DBE program goal

If I can be of further assistance please let me know

Best Regards

Jackie Bayne

Policy and Reporting Manager

WSDOT Office of Equal Opportunity

Work (360) 705-7084

Cell (360) 338-5783

BayneJwsdotwagov

From Troy Halberg [mailtotroyhnellcnet] Sent Wednesday November 29 2017 144 PMTo WSDOT Disparity Study ltDisparityStudyWSDOTWAGOVgtSubject DBE Goal Comments

If these goals are to be set that high this would make us as a non DBE small contractor at amajor disadvantage With these high of goals this is like handing all of the DBE electricalcontractors every job These general contractors will have no option but to use thembecause of the goals This should not go into effect We have been low on several jobs in thepast and have not gotten them do to the goals being 18 When this goes on it puts all therest of us contractors at a disadvantage Please consider the smaller non DBE contractorsthat are looking to survive as well

Thanks

Troy Halberg

Office360-225-7004

Cell360-931-3990

Fax360-225-7001

From Daniel Seydel IITo Bayne JackieCc Key Earl daneiwashingtonorg Nadeem Ismail Mussie Tewelde (mteweldehydro2geotechcom)

graceflyrightaolcom Mary Wenner Watkinson LarrySubject Re Seydel Dan - WSDOT Disparity Study Presentation Public TestimonyDate Friday December 8 2017 30323 PM

Jackie

It was my hope that the comments would be put into record I was also hoping that you wouldnot have to be the one having to formulate responses for each clarification If that is the caseI know you are swamped and will then I just ask my comments be only part of the recordHowever if there is dedicated staff that is going to be compiling and responding to theclarification then the below questions would be the priorities of most interest

These were questions unrelated to the disparity study and hopefully should be doable

1) Do you have any reports on your outcomes from the past 5 years on DBE support servicesand specific key performance measures from previous years funding (ie how many firmsutilized what was the objectives were objectives met did outcomes meet total satisfaction ifnot why next steps what was the firms capacity before and after services were performed (iesales employees bonding if applicable insurance equipment line of credit if applicablenumbertype of customers how are they doing now etc))

2) What other changes or improvements other than allowing DBES to select their own serviceproviders and a staff change will be a part of this new program

3) Was consideration to provide the new mentor protege consultant rather than separating theactivities into support services andor technical assistance

Disparity study clarifications

1) Will WSDOT consider sponsoring legislation to support the policy changes and goalincreases to insure manditory goals wont be necessary

a) If not what measures will you grant primes to operate outside the box (ie entertain bestvalue over low bid modify responsiveness by subs to require adherence to meeting voluntarygoals developing standards around federally funded gccm and other low bid procurementsthat give powers to primes to meet objectives including but not limited to mentor protegerelationships joint ventures bond waiving techniques cash flow assistance material andequipment acquisition manufacturer development specifications that have only DBES orinclude equal number of DBES as non DBES as approved installers etc)

2) Will the disparity study consultant be available for implementation or information gatheringfrom other regions

5) Will WSDOT be hiring more diverse staff amp professionaltechnical service providers inother departments outside OEO to insure policies commitments and evaluations areperformed in manner that improves diversity that reflects the communities WSDOT serves bythoughtful and legal efforts increase participation thus creating successful outcomes includingpartnerships and collaborations

Thank you and Merry Christmas

Hi Dan

Thank you for providing such thoughtful public comments questions and testimony

Regarding your public testimony below - I do not believe I am not able to answer questions ifthey are public comments Please let me know what part of this email you would likeclarification on and what part you would like considered public testimony

I appreciate your thoughtful consideration of WSDOTrsquos implementation of our civil rightsprograms

Best Regards

Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

DIDaniel Seydel IIFyi Daniel J Seydel II Platinum Group LLC 2064060844 f) 2062999934wwwplatinumbusinessgroupcom Small Business is the Answer FREE TRAINING FORENTREPRENEURS amp JOB SEEKERS - Polish your skills or make your firm standout thanksto the EntrepreneurialThu 233pDI

Daniel Seydel IIThu 1272017 1123 AMInbox Sent ItemsShow all 7 recipientsTobaynejwsdotwagov ltBayneJwsdotwagovgtJackie

Per your request below are my questions and comments some of which were verbally sharedyesterday

Congratulations on receiving the blessing of additional technical assistance dollars andcompleting the DBE Disparity Study per your report

1) Do you have any reports on your outcomes from the past 5 years on DBE support servicesand specific key performance measures from previous years funding (ie how many firmsutilized what was the objectives were objectives met did outcomes meet total satisfaction ifnot why next steps what was the firms capacity before and after services were performed (ie

sales employees bonding if applicable insurance equipment line of credit if applicablenumbertype of customers how are they doing now etc))

2) What other changes or improvements other than allowing DBES to select their own serviceproviders and a staff change will be a part of this new program

3) Was consideration to provide the new mentor protege consultant rather than separating theactivities into support services andor technical assistance

Disparity study clarifications andor comments

1) Will WSDOT consider sponsoring legislation to support the policy changes and goalincreases to insure manditory goals wont be necessary

a) If not what measures will you grant primes to operate outside the box (ie entertain bestvalue over low bid modify responsiveness by subs to require adherence to meeting voluntarygoals developing standards around federally funded gccm and other low bid procurementsthat give powers to primes to meet objectives including but not limited to mentor protegerelationships joint ventures bond waiving techniques cash flow assistance material andequipment acquisition manufacturer development specifications that have only DBES orinclude equal number of DBES as non DBES as approved installers etc)

2) Will the disparity study consultant be available for implementation or information gatheringfrom other regions

3) What lessons did WSDOT learn that it did not know from the other study(s)

4) What would WSDOT do different (ie scope time line process approach etc)

5) Will WSDOT be hiring more diverse staff amp professionaltechnical service providers inother departments outside OEO to insure policies commitments and evaluations areperformed in manner that improves diversity that reflects the communities WSDOT serves bythoughtful and legal efforts increase participation thus creating successful outcomes includingpartnerships and collaborations

Daniel J Seydel IIPlatinum Group LLC 2064060844f) 2062999934wwwplatinumbusinessgroupcom

Small Business is the Answer

FREE TRAINING FOR ENTREPRENEURS amp JOB SEEKERS - Polish your skills or makeyour firm standout thanks to the Entrepreneurial Institute of Washington

httpswwwyoutubecomchannelUCKL5YeVxL29HnNxqnb6hmXA

LIKE US on FaceBook if an Active Professional Development workshop provided by EIW

Construction University helps your firm or has benefited you

httpswwwfacebookcomEIWashingtonref=hl

From Bayne Jackie ltBayneJwsdotwagovgtSent Friday December 8 2017 10139 PMTo Daniel Seydel IICc Key Earl daneiwashingtonorg Nadeem Ismail Mussie Tewelde(mteweldehydro2geotechcom) graceflyrightaolcom Mary Wenner Watkinson LarrySubject RE Seydel Dan - WSDOT Disparity Study Presentation Public Testimony Hi Dan Thank you for providing such thoughtful public comments questions and testimony Regarding your public testimony below - I do not believe I am not able to answer questions if theyare public comments Please let me know what part of this email you would like clarification on andwhat part you would like considered public testimony I appreciate your thoughtful consideration of WSDOTrsquos implementation of our civil rights programs Best Regards Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov From Daniel Seydel II [mailtodanplatinumbusinessgroupcom] Sent Thursday December 7 2017 1123 AMTo Bayne Jackie ltBayneJwsdotwagovgtCc Key Earl ltKeyEwsdotwagovgt daneiwashingtonorg Nadeem Ismailltnipaintingearthlinknetgt Mussie Tewelde (mteweldehydro2geotechcom)ltmteweldehydro2geotechcomgt graceflyrightaolcom Mary Wennerltmwenn0108yahoocomgtSubject Seydel Dan - WSDOT Disparity Study Presentation Public Testimony Jackie

Per your request below are my questions and comments some of which were verbally sharedyesterday

Congratulations on receiving the blessing of additional technical assistance dollars andcompleting the DBE Disparity Study per your report

1) Do you have any reports on your outcomes from the past 5 years on DBE support servicesand specific key performance measures from previous years funding (ie how many firmsutilized what was the objectives were objectives met did outcomes meet total satisfaction ifnot why next steps what was the firms capacity before and after services were performed (iesales employees bonding if applicable insurance equipment line of credit if applicablenumbertype of customers how are they doing now etc))

2) What other changes or improvements other than allowing DBES to select their own serviceproviders and a staff change will be a part of this new program

3) Was consideration to provide the new mentor protege consultant rather than separating theactivities into support services andor technical assistance

Disparity study clarifications andor comments

1) Will WSDOT consider sponsoring legislation to support the policy changes and goalincreases to insure manditory goals wont be necessary

a) If not what measures will you grant primes to operate outside the box (ie entertain bestvalue over low bid modify responsiveness by subs to require adherence to meeting voluntarygoals developing standards around federally funded gccm and other low bid procurementsthat give powers to primes to meet objectives including but not limited to mentor protegerelationships joint ventures bond waiving techniques cash flow assistance material andequipment acquisition manufacturer development specifications that have only DBES orinclude equal number of DBES as non DBES as approved installers etc)

2) Will the disparity study consultant be available for implementation or information gatheringfrom other regions

3) What lessons did WSDOT learn that it did not know from the other study(s)

4) What would WSDOT do different (ie scope time line process approach etc)

5) Will WSDOT be hiring more diverse staff amp professionaltechnical service providers inother departments outside OEO to insure policies commitments and evaluations areperformed in manner that improves diversity that reflects the communities WSDOT serves bythoughtful and legal efforts increase participation thus creating successful outcomes includingpartnerships and collaborations

Thank you for your hard work

Daniel J Seydel IIPlatinum Group LLC2064060844f) 2062999934wwwplatinumbusinessgroupcom

Small Business is the Answer

FREE TRAINING FOR ENTREPRENEURS amp JOB SEEKERS - Polish your skills or makeyour firm standout thanks to the Entrepreneurial Institute of Washington

httpswwwyoutubecomchannelUCKL5YeVxL29HnNxqnb6hmXA

LIKE US on FaceBook if an Active Professional Development workshop provided by EIWConstruction University helps your firm or has benefited you

httpswwwfacebookcomEIWashingtonref=hl

From Erin EhlingerTo Bayne JackieSubject Support for WSDOTs proposed DBE goalDate Wednesday December 13 2017 115417 AM

I am writing to support the WSDOT recommended DBE Goal for FHWA contracts of 190 I also want to express my appreciation for the thoroughness of the WSDOT Disparity study and howthe study disclosed the disparity in WSDOT contracts that do not have a DBE or WBE goal ndash furtherreinforcing that all women-owned firms and minority owned firms face equity issues I remain concerned with the methodology required by the Code of Federal Regulations and case lawbecause of the dependence on the availability of firms in the calculation An unintendedconsequence of removing either gender or race from the goal is that many of these firms would goout of business the availability decreases and the formula then results in a smaller DBE goal Pleaselet me know how I can help influence a change to the CFR Thank you Erin Ehlinger

Erin Ehlinger PEPresident

24036 SE 47th StSammamish WA 98029erinehlingersmartcitytrafficcom425-221-0320

From Jackie EtterTo WSDOT Disparity StudySubject Why we need mandatory goalsDate Friday December 1 2017 61859 PM

As a DBE participating in bidding process I have found that regardless of the language which claims to insurethat disadvantaged business enterprises shall not be discriminated against the only way to ensure that this does nothappen is by mandating affirmative action goals Having been overlooked time and time again because of my gender when I have submitted bids that are verycompetitive with other bidders is very frustrating I have had many instances of companies using my price to getmy non DBE competitors to lower theirs The voluntary or laudatory DBE goals do nothing to ensure a level playing fieldThe only way to ensure non-discrimination is through mandatory goals

Jackie EtterWest Star Construction of Spokane

Sent from my iPhone

From Claudia HirscheyTo Key Earl Bayne JackieSubject WSDOT DBE Goal - Comment in supportDate Tuesday December 12 2017 61937 PM

Dear Earl and Jackie The WSDOT recommended DBE Goal for FHWA contracts of 190 is a small and important increasethat can further achieve equity in WSDOTFHWA contracting I am in support of the 19 DBE Goal I also want to express my appreciation for the thoroughness of the WSDOT Disparity study and howthe study disclosed the disparity in WSDOT contracts that do not have a DBE or WBE goal ndash furtherreinforcing that all women-owned firms and minority owned firms face equity issues I remain concerned with the methodology required by the Code of Federal Regulations and case lawbecause of the dependence on the availability of firms in the calculation An unintendedconsequence of removing either gender or race from the goal is that many of these firms would goout of business the availability decreases and the formula then results in a smaller DBE goal Sincerely Claudia S Hirschey PETransportation Consulting Servicesclaudiahirscheycomcastnethttphirscheytcscom2068564988 Mobile

From Nate ThomasTo WSDOT Disparity StudySubject WSDOT Proposes DBE goal of 19Date Thursday December 7 2017 42720 PM

The WSDOT should look into similar ways the Federal Gov has handled the equal opportunity forthose that fall under the DBE status and set aside specific projects for the DBErsquos and moreimportantly UDBErsquos so these companies have better chance of landing contracts Maybe a lot 10 ofthe DBE goal to set aside for only DBEs and other 9 goal met as it is done currently with COA onlarger contracts Nate ThomasSenior EstimatorD 5095688085 | C 5099941156331 North Fancher Road | Spokane WA | 99212

The information contained in this email including any attachments is confidential and may beprivileged It is intended only for the person or entity to which it is addressed and no waiver isintended by sending this email If the reader is not the intended recipient you are herebynotified that any review retransmission dissemination or other use of or taking any action inreliance upon this information is strictly prohibited If you have received this email in errorkindly notify the sender by reply email and delete the original message from any computerThank You

From Brian FujiiTo WSDOT Disparity StudySubject WSDOT propsed DBE GoalsDate Thursday December 7 2017 110638 AM

Good morning Jackie

I wanted to comment on WSDOTs proposed DBE goal to 19 I believe WSDOTs plan toincrease the overall DBE goal to 19 will provide greater opportunities for DBE contractorsin different disciplines to participate in federally funded contracts

Without the new DBE requirement and with Proposition 200 there are limited opportunitiesfor DBE contractors in disciplines different than the typical trucking flagging and rebar Inaddition there are no incentives for general contractors to go out beyond the usual truckingflagging and rebar DBE subcontractors

Increasing the DBE goals will provide opportunities for different DBE contractors in differentdisciplines to participate in WSDOT federally funded projects

Thank you for your time

RespectfullyBrian FujiiPresident Subsurface ConstructionP 2063836478F 2069604639MDBE 4M0024998

From Forman StephanieTo Bayne JackieCc Millar Roger christinenhanmailhousegov Claudia Hirschey Sarah Corbin Jiang Yingle

efaulknerenviroissuescom Diana Giraldo Kelly CheesemanSubject WTS - Disparity Study Comment LetterDate Friday December 15 2017 71020 PMAttachments 2017_Dec 15_WTSCommentLetter_WSDOT DBE Goalpdf

Dear Ms Bayne Please find our attached letter which summarizes the WTS Puget Sound Chapterrsquos support foradvancement of women in transportation and our comment letter regarding the recent DisparityStudy Please feel free to contact me if you have any questions or would like to discuss Sincerely Stephanie S Forman PEWTS Puget Sound President Transportation Project Manager

929 108th Avenue NE Suite 1300Bellevue WA 98004D 4254681548 M 2062291745stephanieformanhdrinccom

December 15 2017

Jackie Bayne Policy and Reporting Manager

Office of Equal Opportunity

Washington State Department of Transportation

PO Box 47314

Olympia WA 98504-7314

Dear Ms Bayne

On behalf of the Puget Sound Chapter of Womenrsquos Transportation Seminar (WTS) we would

like to thank the Washington State Department of Transportation for presenting to our

organization the DBE Disparity Study results We very much appreciated the presentation by Earl

Key Director of WSDOTrsquos Office of Equal Opportunity Teresa Berntsen (Director Office of Minority

and Womens Business Enterprises) as well as Leslie Jones (Director Sound Transit Office of Small

Business Development and Labor Compliance)

Following a review of the WSDOT Disparity Study and as a result of consultation with WTS

International we would like to provide WSDOT with our comments for your consideration

As you know WTS is an organization focused exclusively on attracting retaining and advancing

women in transportation By the year 2018 there will be thousands of vacancies in the

transportation industry for qualified professionals and while women account for more than half of

the worldrsquos workforce they are a very small minority in transportation disciplines

We are pleased that the outcome of the 2017 Disparity Study that recognizes the on-going barriers

for DBEs including women-owned businesses in transportation The WSDOT recommended DBE

Goal of 190 is a small and important increase that can further achieve equity in WSDOTFHWA

contracting We are also pleased that the 2017 Disparity Study has documented the disparity in

WSDOT contracts that do not have a DBE or WBE goal ndash further reinforcing that all women-owned

firms and minority owned firms face equity issues We are encouraged that the WSDOT has asked

FHWA to rescind the 2016 waiver

While WTSrsquo mission is specific to the advancement of women we are a race-neutral organization To

this end we are also deeply concerned about the underutilization of minority owned firms There is

no equity or ldquofair playing fieldrdquo without equity for all gender and races We remained concerned with

the methodology required by the Code of Federal Regulations and case law because of the

dependence on the availability of firms in the calculation An unintended consequence of removing

either gender or race from the goal is that many of these firms would go out of business the

availability decreases and the formula then results in a smaller DBE goal This consequence is

contrary to our mission

We look forward to our continued participation in WSDOTrsquos DBE advisory group we are anticipating

notice that the 2016 waiver has been rescinded and how we can work together to continue

advancing minority and women-owned firms in the transportation field

Sincerely

WTS Puget Sound Chapter

Stephanie Forman

President

C Roger Millar Secretary WSDOT

C Representative Adam Smith 9th Congressional District Washington co Christine Nhan

WTS Puget Sound Chapter

PO Box 3461

Bellevue Washington 98009

From Dave Gent - WAPATo Bayne JackieCc Tom GaetzSubject WAPA Public Comments - RE WSDOT FHWA Disadvantaged Business Enterprise Proposed GoalDate Friday December 15 2017 14119 PMAttachments 12152017 DBE Proposed Goal - WAPA Public Comments Letterpdf

Good afternoon Jackie Please find attached WAPArsquos ldquofor the public recordrdquo comments with respect to WSDOTrsquos proposedDBE Goals FHWA funded work I assume that the Master DBE Directory was not sent to you this week so as a result we were notable to review the directory before the close of the public comment period That fact is noted withinour comment letter Thank you for your efforts Have a good weekend

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Friday December 8 2017 1219 PMTo Dave Gent - WAPA ltdavegentasphaltwacomgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hello Dave WSDOT did not take possession of this directory as part of our review process We will provide youwith the records without submitting a formal request However we need to get them from theconsultant first I will hopefully have them to provide next week I will keep you updated on therequest Have a nice weekend Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal Opportunity

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

December 15 2017

Jackie Bayne Policy Manager WSDOT Office of Equal Opportunity Delivered via e-mail to BayneJwsdotwagov RE Public Comment (as requested) to Proposed Overall DBE Goal for the FHWA (2018 ndash 2020) Ms Bayne Thank you for your presentation via webinar on December 5 2017 outlining WSDOTrsquos evaluation process used to determine the proposed overall DBE goal for the FHWA Thank you also for the Colette Holt amp Associates (CHA) DBE Advisory Group presentation made on September 14 2017 Both presentations helped to distill the findings of the 2017 Disparity Study produced by CHA In response to Earl Keyrsquos initial informal request to comment on the proposed overall DBE goal made during the DBE Advisory Committee teleconference held on October 12th we provided a list of reasons that we believe justify a lower DBE goal than is now being proposed Our initial response to Mr Keyrsquos request did not serve to influence WSDOT and the current proposed goal remains at 190 The arguments provided on October 12th against the significant increase in the proposed DBE goal (versus the previous goal and recent historic DBE participation) are repeated and supplemented below and will serve as the Asphalt Pavement Associationrsquos (WAPArsquos) official public comments

In concert with WSDOT and the OWMBE WAPA and the construction firms that WAPA represents have demonstrated a commitment to the principals of equal opportunity for all ldquoready willing and ablerdquo firms for the entire history that our DBE program has been in place WAPA has continuously demonstrated its commitment to the goals of the DBE program and for increasing the representation of disadvantaged groups within our industry as both workers and owners of firms Please recognize that WAPArsquos oversight and critique of the DBE program has always attempted to balance the principals of fair and open competition with the practical aspects of the low bid compressed schedule high performance standards demanded within the WSDOT marketplace Our comments below are meant to enhance WSDOTrsquos and OWMBErsquos understanding of the market and to hopefully have WSDOT fully consider all of the dynamics that are at play when proposing its Triennial DBE goal for FHWA projects Current DBE Capacity vs Historically Robust Market In advocating for a realistic and defensible DBE goal it has always been WAPArsquos position that it is paramount that the realities of the marketplace and true certified DBE subcontracting capacity should be a primary standard While a ldquostretchrdquo goal may appear to be progressive on its face it comes with consequences for all of the parties involved in the WSDOT federal aid contracting arena To balance the dynamics of the WSDOT contracting system the DBE goal should be tempered with the realities of the market and with a true measure of the underlying effectiveness of the DBE support services available to contractors

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 2 of 6 The first point of fact that has not been given any apparent consideration by WSDOT in its evaluation of the current capacity of certified DBErsquos is that there is an historically robust workload scheduled to be performed in the 2017 through 2022 time-frame particularly in the Puget Sound ldquoEverett to Olympiardquo corridor By WSDOTrsquos own estimates (see Attachment A) public works construction project starts in the 2018 to 2022 time-frame in this region will exceed $333 billion (B) counting the work projected from just five public entities WSDOT will be taking a decidedly ldquoback seatrdquo role during this period to Sound Transit which will have construction project starts of $226B vs WSDOTrsquos projected volume of $67B WSDOTrsquos summary publication titled Washington State Department of Transportations Proposed Federal Highway Administration Triennium Disadvantaged Business Enterprise Goal Federal Fiscal Years 2018-2020 states correctly that ldquoIncluded among the types of evidence that must be considered are the current capacity of DBEs to perform work on WSDOTrsquos federally-assisted contracts as measured by the volume of work DBEs have performed in recent yearshelliprdquo (Step Two Adjustment discussion) With the Sound Transit program being over 300 larger than the total WSDOT program in this region a sober assessment of true certified DBE capacity in the next three years needs to be considered by WSDOT If the huge construction boom over the next five years does not prompt a Step Two Adjustment then it becomes obvious that the realities of the market are being ignored by WSDOT for DBE goal setting Put another way if the 2018 through 2022 level of contracting activity does not warrant a goal adjustment what will DBE Access Barriers Not Yet Addressed The CHA 2017 Disparity Study points out multiple recommendations in Section VII that impact DBE participation and access to the market Assessments relating to those impacts and the state of maturity in addressing the CHA recommendations should be considered when assessing the DBE goal Many of the CHA recommendation have not been adequately addressed at this point in time Some of the prime examples are listed below Increase Certification and Expertise ndash The Disparity Study as explained to us includes all minority- (MBE)

and women-owned (WBE) firms that could be readily identified that perform work within Washington State and that perform work within the NAICS code framework CHA developed to cover WSDOT project work During the various presentations relating to the Disparity Study WSDOT representatives said that outreach to currently non-certified MBE amp WBE firms has increased and that WSDOT aspires to bolster its list of certified firms in the future but this effort is just beginning and the success of the effort needs to be means tested against the broader population of MBE amp WBE firms included in the CHA base line evaluation As the Disparity Study uses a much broader population of MBE WBE contractors to arrive at its conclusions (both non-certified firms and firms too large for certification) it follows that the calculated DBE proposed goal is overstated to include capacity that does not currently exist within WSDOTrsquos certified DBE framework Unless OMWBE is experiencing sudden and unprecedented success in recruiting new MBEWBE firms the DBE goal should be adjusted downward to recognize that the ldquoready willing and ablerdquo contractors that WSDOT has certified is only a subset of the total MBEWBE contracting population used in the Disparity Study evaluation

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 3 of 6

Until the promised WSDOT outreach registration efforts result in a substantial increase in available certified DBE firms it is premature to count the entire population of minority- and women-owned contractors as available to participate in WSDOT contracting It is unreasonable for WSDOT to project availability capacity using the entire MBEWBE population when only its currently truncated list of certified firms is acceptable to count toward the DBE goal

A corollary to the Increase Certification and Expertise discussion above is that the calculation of the Base Figure evidently includes the broadest practical population of MBE and WBE firms identifiable (without a review of the CHA Master DBE Directory which has not been supplied prior to the close of the public comment period the scope of the directory cannot be ascertained) If this directory includes a large population of MBEWBE firms that are not certified or are too large to be certified then the Base Figure calculation should be adjusted to reflect that certified DBE firms are a fraction of the total MBEWBE firms used to arrive at the 19 suggested DBE goal With respect to the CHA Master Directory it is our understanding the WSDOT was not given the directory as part of its evaluation of the Disparity Study and it follows that it did not evaluate the proposed DBE goal in the context of the CHA Master DBE Directory In our opinion an informed decision on adjusting the CHA baseline goal calculation can only be done after an extensive evaluation of the CHA Master DBE Directory If this has not been done WSDOT has not exercised due diligence in evaluating the context and underpinnings of the CHA Disparity Study and a certified DBE Triennium goal proposal to the FHWA is premature Increase Contract ldquoUnbundlingrdquo ndash If this proposed strategy (suggested by the CHA Study) is undertaken

certified DBE Subcontractors currently available will be engaged as Prime Contractors and the value of their prime contracts will bolster the overall percentage of certified DBE contracting but a systematic effort and strategy to ldquounbundlerdquo has not been articulated by WSDOT The key question of how this effort can be accomplished without increased cost to the taxpayers and increased inconvenience for the traveling public As noted in the CHA study (page 129 final paragraph) ldquoUnbundling must be conducted however within the constraints of the need to ensure efficiency and limit cost to the taxpayersrdquo As of this writing no overarching strategy for further unbundling with proper accountability has been articulated by WSDOT to the DBE Advisory Group

Review Insurance and Experience Requirements ndash Impediments to certified DBE participation due to

necessary insurance and experience standards cannot be solved by the prime contracting community Unless and until WSDOT puts together programs to address the burden of the substantial risks shouldered by Prime Contractors on WSDOT contracts barriers for streamlined utilization of certified DBE firms will continue to exist These market driven barriers will continue to dampen the availability of certified DBE Subcontractors that are able to perform within WSDOTrsquos strict criteria without unduly transferring risk to the Prime Contractor

Better Partnering to Overcome DBE Failures to Perform ndash Prime Contractors are held fully responsible to maintain the project schedule and are subject to project liquidated damages even when they may be struggling to deal with Subcontractor performance issues It is well-established that replacing a certified ldquocondition of awardrdquo (COA) DBE Subcontractor is very onerous and likely very costly to the Prime Contractor Unfortunately the imposition of strict and often counter-productive commercially useful function (CUF) rules often compound this issue as Prime Contractors cannot help COA DBE Subcontractors work through capacity expertise or time-related issues that impact timely performance

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 4 of 6

WSDOT needs to be a much better partner in the process of dealing with under-performing or non-performing certified DBE Subcontractors The current standard operational procedure places all of the exposure for non-performance onto the Prime WSDOT does not have an equitable system to account for non-performing or under-performing certified DBE Subcontractors hired as a condition of award (COA)

Performance Information and Training ndash Commercially useful function rules (CUF) and the lack of clear benchmark definitions for good faith effort (GFE) standards remain barriers for improving accountability within the DBE system and in turn lead to distorted DBE participation rates These items remain amorphous due to lack of training or lack of historic information Chronic uncertainty exists regarding both of these items Until WSDOT changes and improves its approach to provide transparency and certainty for both the prime bidding amp subcontracting parties true certified DBE capacity will continue to be masked and the resultant higher subcontracting costs associated with a distorted marketplace will continue to be hidden

WAPA respectfully suggests that simply adding an ldquoEstimated DBE Subcontract Premiumrdquo line to the current DBE bid forms would help to establish benchmarks that could begin to be used to ldquomeans testrdquo good faith efforts If this information had been gathered over the last 20 years of the DBE program meaningful GFE standards could have been developed and could be in place today

An in-depth review of CUF standards would also provide clarity For instance it is unclear why force account items performed by certified DBEs are currently counted at only 50 of the value of the work How was this benchmark established Has it been reviewed since imposed Did it ldquosolverdquo whatever inequity WSDOT was trying to address Better clarity may lead to more expanded opportunities for certified DBE Subcontractors

Enhanced Supportive Services and Business Development Programs ndash Unless and until stronger programs of these types are shown to be effective in boosting certified DBE business development increased DBE participation due to stronger business acumen should not be relied upon when setting the new DBE goal

Does OMWBE have a reasonable expectation that future plans for enhanced and expanded programs will be more successful than those employed in the past Assuming that certified DBE Subcontractors will be better prepared to deal with the WSDOT contracting environment than in the past should not be relied upon to boost DBE participation goals Especially troubling were the multiple references within the CHA report highlighting that DBEs believe that the staff at OMWBE lack a deep knowledge about the highway construction industry (eg Study page 129 2nd paragraph) Does OMWBE have a path forward that will address this issue and thus improve supportive services impacts

Develop a Bonding and Financing Program for SBEs ndash This is completely outside of the prime contracting

communityrsquos scope of influence WSDOT must find a way to institute changes that both protect the taxpayer and help increase certified DBE bonding capacity and access to financing ndash very large hurtles To assume that these hurtles can effectively be overcome within the 2018 ndash 2020 time frame when they have been chromic issues for the past 20 plus years of DBE program development is not rational

A helpful innovation would be for WSDOT to underwrite performance and payment bonds for certified DBE firms or to create promote a system that helps certified DBE firms obtain private bonding Bridging the gap to address capital access and performance risks (bonding) must be championed by WSDOT

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 5 of 6

Base Figure Adjustment to Address Available Subcontract Volume and DBE Prime Contracts It is a fact that mid- to large-sized MBEWBE firms that compete both as Prime Contractors and as Subcontractors are not eligible to be OMWBE certified DBEs Further the current amount of contract unbundling for greater DBE access to WSDOT prime contracting (see below) accounts for a very low dollar volume of prime contracts performed by certified DBEs Finally by specification (WSDOT standard specification 1-081) Prime Contractors are obligated to perform 30 of the total volume of the work (less specialty work) or stated another way a maximum of 70 of the dollar volume on WSDOT projects is typically available to award to subcontractors These market dynamics are NOT addressed in the Disparity Study A responsible DBE goal made absent of these facts should not be implemented A reasonable adjustment to the proposed 19 DBE goal is presented below

bull The percent of WSDOT prime contracts awarded to certified DBE firms is likely less than 5 by total WSDOT

contract volume Assuming this approximation is valid (likely very conservative) then the amount of WSDOT contract work available to certified DBE firms via subcontracting should be adjusted to account for the factors outlined above The Base Figure (19) should be adjusted to recognize that a 70 maximum subcontractor participation is available (in the numerator) and to account for the assumed 5 certified DBE prime contracts in the denominator Reasonable Base Figure Adjustment 19 (proposed) x 70 subcontracts available divide 95 of Non-Certified DBEs as Prime Contract Volume = 190 x 0737 = 140 adjusted goal This is an adjustment based on the practical dynamics of the WSDOT contracting system and it represents a more realistic look at the true subcontract volume that is available for Prime Contractors to award to certified DBE firms

Conclusions

Until the items listed above are addressed and in place it is not reasonable to believe that DBE goals can be increased by nearly 163 (from 117 to 190) When the projected robust public works contracting market is appropriately considered the true availability of certified DBE Subcontractors for WSDOT contracts will be truncated due to demand across all public works sectors With multiple strong public works programs competing for a limited population of certified DBEs the ability to meet increased WSDOT DBE goals will be severely challenged Without very clear concise and transparent good faith effort rules the ability to address DBE goals that greatly overestimate true near term certified DBE capacity will result in non-attainment bid day chaos failures to perform andor rapidly increased pricing

The clear conclusion is that at this point in time under the current circumstances without effectively instituted new programs rules procedures that could enhance the certified DBE programrsquos overall effectiveness we believe that the DBE goal should remain at or near 12 As OMWBE documents and demonstrates its future successes in improving access and eliminating capacity barriers only then should the DBE goal be re-evaluated and increased

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 6 of 6

In closing please remember that it is rare that the contracting community is asked our opinion with respect to the WSDOTrsquos DBE policies and so this letter is somewhat a vehicle to highlight collective concerns It is our belief that the majority of the Prime Contractors in Washington state support the objective of creating a level playing field for ready willing and able DBEs

If the level playing field is not yet possible in the absence of the DBE program then the key is to set realistic goals that recognize reflect and address the hard realities and market dynamics imposed by WSDOTrsquos bedrock environment of awarding contracts to the lowest cost responsible and responsive Contractor

Respectfully submitted Washington Asphalt Pavement Association

David Gent Tom Gaetz Executive Director Senior Advisor

Attachment A ndash WSDOT Central Puget Sound Public Works Contracting Projection 2018 - 2022

Con

stru

ctio

n Pr

ojec

t Sta

rts

2018

-202

2S

ound

Tra

nsit

$22

6 B

SD

OT

$08

B

Tran

sit

amp O

ther

s$1

7 B

WS

DO

T$6

7 B

Por

t of

Sea

ttle

$15

B

TOTA

L$3

33

B

Source N

ov 1

9 2

017

pres

enta

tion

to W

APA

Ann

ual M

eetin

g

Attachment A

Work (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Dave Gent - WAPA [mailtodavegentasphaltwacom] Sent Thursday December 7 2017 144 PMTo Bayne Jackie ltBayneJwsdotwagovgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hi again Jackie Irsquom fine thanks and hope you are the same Interesting The Master DBE Directory is the basis for and integral to the conclusions of the DisparityStudy Is it not then part of the information needed to fully review and comment on the DisparityStudy Was it not provided by CHA to WSDOT for review We are trying to fully understand thestudy and if this directory was part of the study why would it need to be obtained by a publicrecords disclosure It should be in the public domain and not restricted from ease of access If you are sure that a public records request is needed Irsquoll start that process but we will need tonote that point of fact when we submit our public comments If you are able to reconsider please let me know Respectfully

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Thursday December 7 2017 126 PMTo Dave Gent - WAPA ltdavegentasphaltwacomgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hello Dave I hope you are doing well

That information would likely be obtained through a public disclosure request Best Regards Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Dave Gent - WAPA [mailtodavegentasphaltwacom] Sent Thursday December 7 2017 113 PMTo Bayne Jackie ltBayneJwsdotwagovgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Jackie Can you please provide an electronic file or provide a weblink for the Master DBE Directory thatColette Holt amp Associates developed for the WSDOT Disparity Study 2017 (first referred to on Page 8of the Disparity Study) I did not see a link to this Master DBE Directory within the study Thanks

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Friday October 27 2017 1118 AMTo Kenyon Wendy ltKenyonWwsdotwagovgt Adams E W ltewadamssystemsclcomgtAdekoyaAndrew ltandrewadekoyabccomgt AlyssaBalllegwagov Anindita Mitraltamitracrea-affiliatescomgt APRISeattlehotmailcom Armstrong CharlotteltCharlieAatgwagovgt Ato Apiafi Architects PLLC ltatoaatoapiaficomgt benzfanwaorgBerntsen Teresa (OMWBE) ltTeresaBomwbewagovgt Billingsley Andrealtbillinawsdotwagovgt Bramlet Erica ltEricaBramletlegwagovgt Brooks Julius

ltBrooksJwsdotwagovgt Brown Jason ltjbrownldccorpcomgt bwallacenwlaborersorgCamden Allison ltCamdenAwsdotwagovgt carlllivingstongmailcom Cerda OscarltCerdaOwsdotwagovgt Christopher Chris ltChristCwsdotwagovgt ckerneycaawagovdanplatinumbusinessgroupcom davegentasphaltwacom David BalltDavidsignsnowmillcreekcomgt Davis Khalia ltDavisKhwsdotwagovgt Davis RaShelle (GOVltrashelledavisgovwagovgt Dayton Jo ltDaytonJwsdotwagovgt ddhondtagcwacomDebbieDriverlegwagov Dennis ltdennisahlkiewitcomgt dmcleodnwlaborersorgdrart6651gmailcom Duncan Enid lthigradeincgmailcomgt EltonltEltonwashingtonstatetruckingcomgt eprincecaawagov flemosldccorpcomfmartineznwmtnmsdcorg geoffshookatkncom glovelady ltgloveladyexcelglovescomgtGrabow Katie ltkgrabowsystemsclcomgt Guilfucci Jackie ltJackieGuilfucciskanskacomgt HealyLinda ltHealyLwsdotwagovgt Higginbotham Breanne ltHigginBwsdotwagovgt HirscheyClaudia ltclaudiahirscheycomcastnetgt Holt Colette ltcoletteholtmwbelawcomgt Huff JohnltHuffJwsdotwagovgt Iniguezchawagov JacksonMaynardlegwagov Jimmy Matta(jmattaalcantarassoccom) ltjmattaalcantarassoccomgt kellywickergovwagov Key EarlltKeyEwsdotwagovgt Kirk Jon ltjkirkwhhnfscomgt Kris Purrier ltkpurrierhwageocomgtleewabuildingtradesorg lesliejonessoundtransitorg Liz Evans ltlevansagcwacomgt LopezErin lterinlopezdeswagovgt Martha Cerna ltMarthaPSLCCORGgt Martin-Arnold EdwinaltMartinEwsdotwagovgt Mary Lerdahl ltmarydbeelectricinccomgt McCarty Hannahlthannahmccartylegwagovgt Melissa L Boyles ltmelissaboylesmwbelawcomgt Metcalf KeithltMetcalKwsdotwagovgt michaelicapaawagov Michelle ltMichelleTTCC26netgt MillarRoger ltMillarRwsdotwagovgt Nakamura Jason ltjasonnakamura1-alliancecomgtNavarroLportseattleorg olliepmt-solutionscom pastorbanksesbctacomacom PatrickHughes ltphugheshughesgroupbizgt Petersen Jodi (FHWA) ltJodiPetersendotgovgtrabbottliunaorg rcarmsteadgmailcom ricemportseattleorg Riley D ltdrileylydigcomgtSeling ltSelingjpfranciscomgt sherryharrisergosynchcom Stell MellodyltStellMwsdotwagovgt terigobintulaliptribes-nsngov timwilliamfactorycom tinaterra-tdicom tkellyldccorpcom tomgaetzmsncom vcollinsacec-waorgverlenejazzmsncom Wang Albert ltWangAatgwagovgt Waugh GregltGregWMaxKuneyComgt Yates Henry ltYatesHWSDOTWAGOVgtCc Tom Gaetz lttomgaetzmsncomgt Dave Gent - WAPA ltdavegentasphaltwacomgt VanCollins ltvcollinsacec-waorggt Daniel Seydel II ltdanplatinumbusinessgroupcomgt MaynardJackson ltJacksonMaynardlegwagovgt Carl Livingston ltcarlllivingstongmailcomgt DonMcLeod ltdmcleodnwlaborersorggt JIMMY MATTA ltjimmymattamsncomgt Prince Ed(CAAA) lteprincecaawagovgt David DHondt ltddhondtagcwacomgt Irene Reyesltgloveladyexcelsupplycompanycomgt McDaniel Craig ltMcDaniCwsdotwagovgtsherryharrisergosynchcomSubject WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Good morning On Monday October 30th WSDOT will be releasing the proposed overall Federal HighwayAdministration Disadvantaged Business Enterprise goal attached for public comment throughDecember 15 2017 This overall DBE goal is based upon the recently completely DBE ProgramDisparity Study WSDOT is proposing a 19 percent overall DBE participation goal on Federal Highway

Administration-funded projects for federal fiscal years 2018 through 2020 DBE goals fortransportation projects that receive federal funds represent a percentage of the value of work inwhich minority- and women-owned businesses should participate Once finalized and submitted toFHWA early next year the goal will be effective through Sept 30 2020

The purpose of the DBE program is to create a level playing field for firms owned and operated bydisadvantaged individuals wanting to participate in federally assisted highway transit and aviationprograms The attached overall DBE goal is for FHWA funded projects WSDOT will be updating theFTA and FAA overall DBE goals in the near future

If you have any questions please contact Earl Key Director of the Office of Equal Opportunity at3607057091 or KeyEwsdotwagov Thank you Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

  • Proof-Of-Publicationpdf
    • Mediapdf
      • AGC
      • Daily Journal
      • Daily Medium
      • DBEGood
      • OMWBE
      • Seattle Medium
      • Tabor 100
      • The Chronicle
      • Tukwila
        • King County
          • Public-Comments-20180111pdf
            • 19 DBE Requirement(1)
            • AGC Comments on Proposed 10 Goad
            • Backstrom Curb amp Sidewalk
            • comments on WSDOT proposed DBE goal
            • Cowlitz County Public Works
            • DBE Contracting goals
            • DBE Goal
            • DBE Program Disparity Study
            • Disparity Study Comments from City of Spokane
            • FW_ WSDOT News - WSDOT seeks comments on propos
            • Proposed DBE Goals
            • RE_ DBE Contracting Goal Comments
            • Re_ DBE Goal Comments
            • Re_ Seydel Dan - WSDOT Disparity Study Present
            • Support for WSDOTs proposed DBE goal
            • Why we need mandatory goals
            • WSDOT DBE Goal - Comment in support
            • WSDOT Proposes DBE goal of 19
            • WSDOT propsed DBE Goals
            • WTS - Disparity Study Comment Letter

Page 4

and 168 of its overall goal through race-conscious contract goals WSDOT will monitor DBE participation throughout the year to adjust its use of contract goals to ensure that their use does not exceed the overall goal

Race-neutral measures to achieve DBE participation

WSDOT will meet the maximum feasible portion of its triennium goal through the race-neutral measures listed below WSDOT will maximize outreach efforts to the DBE contracting community and the use of DBE Support Services to increase the utilization and support of DBEs that participate on upcoming WSDOT projects

Support Services

WSDOT provides the following supportive services to DBEs

Immediate and long-term business management record keeping financial and accounting capabilities

Long-term development assistance to increase opportunities to participate in more varied and significant work and to achieve eventual self-sufficiency

Programs on contracting procedures and specific contract opportunities Assistance in obtaining bonding or financing Assistance to start-up firms particularly in fields with historically low DBE participation Identification of potential highway-related DBEs and prequalification assistance and In an effort to increase awareness of the DBE Supportive Services program WSDOT has

developed a DBE Supportive Services hotline (888) 259-9143 email address dbesswsdotwagov and website wwwwsdotwagovEqualOpportunityDBEhtm

Outreach and Networking

WSDOT engages in a number of outreach efforts to minority and womens organizations to enhance DBE opportunities in Department projects These efforts include but are not limited to

Sponsorship of the annual Regional Contracting Forum held in Seattle Washington in

partnership with state local and federal agencies Last years event attracted approximately 2000 individuals

WSDOT works with organizations such as the Northwest Minority Supplier Diversity Council Women in Construction USDOTs Small Business Transportation Resource Center the Womens Transportation Seminar Tabor 100 the National Association of Minority Contractors Association of General Contractors American Council of Engineering Companies the Office of Minority and Womens Business Enterprises and other groups to promote the DBE Program

WSDOT has established a Washington State DBE Work Group comprised of WSDOT divisions and local agencies among others that will advise WSDOT on DBE issues including but not limited to goal setting outreach training etc

Complaint Procedures

WSDOT has implemented procedures to process complaints of discrimination in the operation of the DBE Program and against contractors receiving WSDOT contracts This will ensure prompt uniform and fair responses to allegations of unlawful conduct so that DBEs non-DBEs and interested persons can have confidence in the integrity of WSDOTs operations

Page 5

WSDOT has implemented the Fraud Hotline to report fraud and abuse in the DBE Program The Fraud Hotline is available at (877) 856-3770 or fraudhotlinewsdotwagov

Prompt Payment

WSDOT continues to enforce its prompt payment provisions and processes It impresses upon its personnel and prime contractors the necessity and importance of meeting these requirements This is accomplished via WSDOT sponsored training for internal staff as well as external contractors which includes a portion on prompt payment

Emerging Contractor Support Initiatives

WSDOT recognizes the necessity of developing new and innovative race-neutral contractor support services and has begun implementing new programs and resources (eg Mentor Proteacutegeacute Program Minority Small Veteran and Womenrsquos Business Enterprise Program remodeled DBE Support Services Program etc) This process involved examining other states supportive services strategies as well as working with construction and minority and women business organizations It also includes soliciting input from the DBE Work Group and from construction and DBE organizations in this and other states

Counting race-neutral and race-conscious participation

Based on a 2012 Disparity Study WSDOT sought and received a waiver of the regulation that White females as a group are presumptively disadvantaged Under the terms of the waiver dollars paid to DBEs owned by such persons are not eligible for credit towards meeting DBE contract goals and WSDOT will count and report FHWA dollars to these firms as race-neutral participation

The 2017 Disparity Study found that White females do not enjoy a level playing field for USDOT- assisted contracts and recommended that firms owned by such persons should be returned to the status of goal credit eligibility WSDOT has sought a rescission of the waiver and awaits USDOTrsquos response Until such time as the waiver is rescinded WSDOT will count all participation by certified DBEs owned by White females as race-neutral participation

Public Participation

Consultation Per 49 CFR sect 2645 WSDOT employs a consultative process requesting input from organizations serving or representing DBEs minority-owned or women-owned businesses state or local offices of procurement federal state or local offices responsible for enforcing civil rights laws local labor offices and organizations etc WSDOT developed the proposed overall annual DBE goal and presents it to the DBE Work Group (individuals from various WSDOT divisions and offices and other state agencies) including

WSDOT Highways and Local Programs Division WSDOT Construction Office Washington State Attorney Generals Office WSDOT Ad amp Award Office WSDOT Public Transportation Division WSDOT Secretary of Transportation WSDOT Consulting Services Office WSDOT Aviation Division

Page 6

Washington State Ferries Washington State Office of Minority amp Womens Business Enterprises

Once the DBE Work Group reviewed and provided comments the overall DBE goal was revised accordingly

Upon DBE Work Group review the goal was then reviewed by the DBE Advisory Group comprised of minority women and trade organizations including but not limited to

Tabor 100 National Association of Minority Contractors Latino Civil Alliance American Council of Engineering Companies of Washington Laborers Local 440 Street Pavers Sewer Watermain and Tunnel Workers Washington Association of General Contractors Washington Asphalt Pavement Association Northwest Mountain Minority Supplier Diversity

Council Tribal Employment Rights Office Womens Transportation Seminar Washington Asphalt Pavement Association Women in Highway Construction

WSDOT followed the public participation requirements outlined in 49 CFR Part 26 This public participation process also included the publication of a press release on October 30 2017 requesting public comment for 45 days This publication also notified interested parties of public meetings to gain and understanding of the overall DBE goal at the following locations

Spokane November 28 Vancouver November 29 Webinar December 5 North Seattle December 7 Pasco December 131

The comments provided by these groups were taken into consideration and no quantitative evidence relevant to the determination of availability or utilization was submitted to revise the overall DBE goal

Published Notice To satisfy the public consultation requirements of 49 CFR sect 2645(d)(2) WSDOT will provided a press release to all media outlets in Washington State and publish the proposed overall annual DBE goal for the triennium in the Seattle Daily Journal of Commerce Included in its press release and publication is WSDOTs request for public comment and inspection of the goal methodology for 45 days from the date of publication

1 The December 13 Public Meeting was added with a separate press release to ensure sufficient statewide notice regarding the Proposed Overall DBE Goal

Page 7

Summary Pursuant to the requirements of 49 CFR sect 2645(a)(2) WSDOT submits this proposed triennium DBE Goal to FHWA for review and approval WSDOT followed the requirements of 49 CFR sect2645 in completing this FHWA DBE goal along with the OSDBU Guidance This proposed DBE Goal of 190 is based upon the availability of ready willing and able DBEs as established by the Disparity Study WSDOT anticipates race-neutral participation of 22 and race-conscious participation of 168

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(httpwwwlinkedincomcompanyagc-of-washington)1200 Westlake Avenue N Suite 301 Seattle Washington 98109 Phone 2062840061 | Fax 2062854546 Privacy Policy (about-usprivacy-policy) | AGC of America Website (httpswwwagcorg)

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WSDOT proposes 19 DBE goal on FHA-funded projectsWSDOT is proposing a 19 percent overall DBE participation goal on Federal Highway Administration-funded projects for federal fiscal years 2018 through 2020 WSDOT will submit the proposal to FHWA early next year following a public comment period Once submitted to FHWA the goal will be effective through Sept 30 2020 (See info on public meetings below)

AGC is reviewing the proposal and considering its response AGC members are encouraged to send comments to AGC Chief Lobbyist Jerry VanderWood(mailtojvanderwoodagcwacom) 3603525000

WSDOT said the 19 goal is based upon the availability of ready willing and able DBEs as established by the WSDOT Disparity Study (See summary of the 2017 disparity study here (httpwwwwsdotwagovsitesdefaultfiles20160509WSDOTDisparityStudyPresentation2017pdf) see full study report here(httpwwwwsdotwagovsitesdefaultfiles20170911OEO-DisparityStudy-2017pdf))

In its report study authors Collete Holt and Associates concluded ldquoThese results provide the agency with the evidence necessary to narrowly tailor its DBE program for federal-aid contracts as required by 49 CFR Part 26 The statistical data and the anecdotal testimony provide a sufficient basis for the continued use of narrowly tailored remedial race- and gender-conscious measures to ensure full and fair access by all firms to WSDOT federally-funded prime contracting and associated subcontracting opportunitiesrdquo

WSDOT will host a series of public meetings to provide opportunities for individuals to comment in person

Spokane 2 ndash 4 pm Tuesday Nov 28 (WSDOT Eastern Region Headquarters 2714 N Mayfair St)

Vancouver 2 ndash 4 pm Wednesday Nov 29 (WSDOT Vancouver Headquarters 11018 NE 51st Circle)

Seattle 2 ndash 4 pm Thursday Dec 7 (WSDOT Northwest Region Headquarters 15700 Dayton Ave N Shoreline)

Those who are unable to attend one of the meetings can participate in a no-cost webinar from 230 ndash 430 pm on Tuesday Dec 5 Advance registration for the webinar is required Those interested in participating should email DisparityStudywsdotwagov (adminDisparityStudywsdotwagov)

Written comments can also be submitted by mail or email to Jackie Bayne Policy amp Reporting Manager Washington State Department of Transportation Office of Equal Opportunity PO Box 47314 Olympia WA 98504-7314 or to DisparityStudywsdotwagov (adminDisparityStudywsdotwagov20)

WSDOT will consider all written comments received through Friday Dec 15 2017

Documents detailing the methodology used for determining the FHWA DBE goals are available at wwwwsdotwagovequalopportunity(httpwwwwsdotwagovequalopportunity) or in person at the Transportation Building 310 Maple Park Ave SE in Olympia

Page 1 of 1WSDOT proposes 19 DBE goal on FHA-funded projects - AGC of Washington

1112018httpwwwagcwacompostswsdot-proposes-19-dbe-goal-on-fha-funded-projects

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October 31 2017

WSDOT proposes new DBE goalsBy JOURNAL STAFF

OLYMPIA mdash The Washington State Department of Transportation is proposing a 19 percent overall DBE participation goal on Federal Highway Administration-funded projects for federal fiscal years 2018 through 2020

WSDOT plans to submit the goals early next year and is seeking comments through Dec 15

To read this story in full or purchase a login subscription

HOME MyDJC BUSINESS CONSTRUCTION REAL ESTATE ARCHITECTURE amp ENGINEERING ENVIRONMENT TECH WEEKEND FEATURES SEATTLESCAPE

Page 1 of 2Seattle DJCcom local business news and data - Construction - WSDOT proposes new D

1112018httpwwwdjccomnewsco12105680html

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()

WSDOT seeks comments on proposed DBE contracting goal for highway projects - Seattle MtgWSDOT seeks comments on proposed DBE contracting goal for highway projects

Comments accepted through Dec 15

OLYMPIA ndash Contractors trade and labor organizations small and disadvantaged businesses and all others who may be interested in working with the Washington State Department of Transportation are invited to comment on the agencyrsquos proposed Disadvantaged Business Enterprise goal for Federal Highway Administration contracts

DBE goals for transportation projects that receive federal funds represent a percentage of the value of work in which minority- and women-owned businesses should participate WSDOT is proposing a 19 percent overall DBE participation goal on Federal Highway Administration-funded projects for federal fiscal years 2018 through 2020

Once submitted to FHWA early next year the goal will be effective through Sept 30 2020

The purpose of the DBE program is to create a level playing field for firms owned and operated by disadvantaged individuals wanting to participate in federally assisted highway transit and aviation programs

Connecting with communities WSDOT will host a series of public meetings to provide opportunities for individuals to comment in person

Spokane meeting was held Nov 28

Vancouver meeting was held Nov 29

Seattle

2 ndash 4 pm Thursday Dec 7WSDOT Northwest Region Headquarters15700 Dayton Ave N Shoreline

Page 1 of 3WSDOT seeks comments on proposed DBE contracting goal for highway projects - Seattl

1112018httpwwwomwbewagovabouteventswsdot-seeks-comments-proposed-dbe-contracting

Date Thursday December 7 2017 - 200pm to 400pm

Other ways to provide comment Those who are unable to attend one of the meetings can participate in a no-cost webinar from 230 ndash 430 pm Tuesday Dec 5 Registration for the webinar is required Those interested in participating should email DisparityStudywsdotwagov (mailtoDisparityStudywsdotwagov)

Written comments can also be submitted by mail or email Jackie Bayne Policy amp Reporting Manager Washington State Department of Transportation Office of Equal Opportunity PO Box 47314 Olympia WA 98504-7314 DisparityStudywsdotwagov(mailtoDisparityStudywsdotwagov)

Documents detailing the methodology used for determining the FHWA DBE goals are available for review at all WSDOT region headquarters offices and at the Transportation Building 310 Maple Park Ave SE Olympia They are also available online at wwwwsdotwagovequalopportunity (httpwwwwsdotwagovequalopportunity)

WSDOT will consider all written comments received through Friday Dec 15 2017

WSDOT keeps people businesses and the economy moving by operating and improving the states transportation systems To learn more about what were doing go to wwwwsdotwagovnews (httpwwwwsdotwagovnews) for pictures videos news and blogs Real time traffic information is available at wwwwsdotcomtraffic(httpwwwwsdotcomtraffic) or by dialing 511

Americans with Disabilities Act (ADA) Information Accommodation requests for people with disabilities can be made by contacting the WSDOT DiversityADA Affairs team at wsdotadawsdotwagov (mailtowsdotadawsdotwagov) or by calling toll-free 855-362-4ADA (4232) Persons who are deaf or hard of hearing may make a request by calling the Washington State Relay at 711

Title VI Statement to Public It is WSDOTrsquos policy to assure that no person shall on the grounds of race color national origin or sex as provided by Title VI of the Civil Rights Act of 1964 be excluded from participation in be denied the benefits of or be otherwise discriminated against under any of its federally funded programs and activities Any person who believes his or her Title VI protection has been violated may file a complaint with WSDOTrsquos Office of Equal Opportunity For additional information regarding Title VI complaintprocedures andor information regarding our non-discrimination obligations please contactOEOrsquos Title VI Coordinator at 360-705-7090

Page 2 of 3WSDOT seeks comments on proposed DBE contracting goal for highway projects - Seattl

1112018httpwwwomwbewagovabouteventswsdot-seeks-comments-proposed-dbe-contracting

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89lt=gtABCDgtEF39=GHIJK1L0M1JLNO1L040K420PJLJLQ0K5R015JKNON70220K445N04S0K10Q4P6N5KNNN0K4022J1TLNUTJ70VP5K1LN145KUJLW5KQU51T1TX0NT5KQ1JK101YZ0L17K1J[CL0KNZJL1015JKXYgtC]0L5KS5141JMJ77K1JK1T0QKMVNZLJZJN4Y5N04S0K10Q4_6N5KNNK1LZL5NY_]QJ02[JL4L02a5QTU0VG475K5N1L015JKMJK1L0M1NbY_QJ02N[JL1L0KNZJL1015JKZLJcM1N1T01LM5S[4L02[6K4NLZLNK10ZLMK10QJ[1TS026J[UJLW5KUT5MT75KJL51Vd0K4UJ7KdJUK4P6N5KNNNNTJ624Z0L15M5Z01bXYgtC5NZLJZJN5KQ0efZLMK1JSL022Y_Z0L15M5Z015JKQJ02JK4L02a5QTU0VG475K5N1L015JKd[6K44ZLJcM1N[JL[4L02[5NM02V0LNghei1TLJ6QTghghbgtKMN6P751141JaXG0L2VKj1V0LO1TQJ02U522P[[M15S1TLJ6QTZ1bkhOghghbCTZ6LZJNJ[1TY_ZLJQL075N1JML0102S2Z20V5KQ[524[JL[5L7NJUK40K4JZL014PV45N04S0K10Q45K45S54602NU0K15KQ1JZ0L15M5Z015K[4L022V0NN5N14T5QTU0VO1L0KN510K40S5015JKZLJQL07NbXYgtCU522TJN10NL5NJ[Z6P25M715KQN1JZLJS54JZZJL16K515N[JL5K45S54602N1JMJ77K15KZLNJKlZJW0KOgHmZb7bJKC6NbOAJSbgi01XYgtC0N1LKQ5JKa04n60L1LNHgoemA30V[05L1bOZJW0Kplt0KMJ6SLOgHmZb7bX4NbOAJSbgf01XYgtClt0KMJ6SLa04n60L1LNHeeheiAqeN1I5LM2Olt0KMJ6SLp0112OgHmZb7bCT6LNbOYMbo01XYgtCAJL1TUN1Q5JKa04n60L1LNHeqohhY0V1JKGSbAOTJL25Kbrstuvwxyz|v|~u|usCTJNUTJ0L6K0P21J011K4JKJ[1T715KQNM0KZ0L15M5Z015K0KJdMJN1UP5K0L[LJ7glkhHmlkhZb7bC6N40VOYMbqbQ5N1L015JK[JL1TUP5K0L5NLn65L4bCTJN5K1LN145KZ0L15M5Z015KQNTJ6247052Y5NZ0L51V164VUN4J1bU0bQJSbXL511KMJ77K1NM0K02NJPN6P75114PV7052JL7052l0MW5_0VKO9J25MVZJL15KQ30K0QLOX0NT5KQ1JK101YZ0L17K1J[CL0KNZJL1015JKOgt[[5MJ[n602gtZZJL16K51VO9bgtb_JjmokemOgt2V7Z50OXGfiqhmdokemJL705241JY5NZ0L51V164VUN4J1bU0bQJSbYJM67K1N410525KQ1T71TJ4J2JQV6N4[JL41L75K5KQ1TaXGY_QJ02N0L0S0520P2[JLLS5U01022XYgtCLQ5JKT04n60L1LNJ[[5MN0K4011TCL0KNZJL1015JK_65245KQOkeh30Z290LWGSbOgt2V7Z50bCTV0L02NJ0S0520P2JK25K01UUUbUN4J1bU0bQJSn602JZZJL16K51VbXYgtCU522MJKN54L022UL511KMJ77K1NLM5S41TLJ6QTL540VOYMbeqOgheob iexclcentpound currenGPJ611TG61TJL G4SL15N7K1N

13

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AringEgraveAacuteEacuteAringcentAEligEcircEumlAcircCcedilIgraveEumlAacuteAacuteAgravecentfrac14frac12IacuteAacuteAgravefrac34AacuteIcircCcediliquestAEligiexclIumlAcircAacuteEumlETHEgraveNtildeOgraveOgraveEcircAacuteAEligIacuteiquestAEligfrac14AacuteAacuteyenAacuteiquestAEligCcedilAumliquestiquestAringiquestAacuteAEligAacuteiquestAEligAringAcircAacuteAtildeAringAtildeEcircAcircCcedilETHAtildeEcircAringiquestiquestAEligCcedilAtildeOacutefrac34Aacutefrac34CcedilAumliquestAEligCcedilAacute EacuteEacuteEacuteOcircOtildeEgraveOumlOcircOumlETHtimesIgravefrac12Agravefrac34AtildeiquestAEligfrac34iquestAtildeAgrave AringIgraveAacuteEgraveAringiquestEcircEumlAcircCcedilEgravefrac12CcediliquestAacute AacuteAgravefrac34AtildeiquestAEligEumliquestiquestAacutefrac34frac34frac34ETHCcedilAacuteAringAacuteiquestAEligCcedilAumlAringOslashCcediliquestAacuteOslashIgraveNtildeNtildeIgraveOgraveETHUgraveOgraveOgravefrac12AgraveAcirc AacuteAgraveCcedilAringiquestAacuteAumlAacuteEcirciquestAEligCcedil iquest 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iquestAumlcentAgraveiquestAEligCcedilAacuteAEligfrac14AacuteAacuteAacuteAringAEligAacute frac12AEligAacuteAacuteiquestAElig iquestAuml IumlAcircAacuteAcircAEligiquestAacuteEcircaumlRSaringPREcircAringiquestOWaeligccedilegraveeacuteNRecircSaringPRAringiquestaacute)LcopyXJeumldeg1ordf-raquodegraquolaquoreg

13

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httpwwwchronlinecomnewswsdot-seeks-public-comment-on-disadvantaged-business-enterprisearticle_f5c753ea-be61-11e7-966c-972f6769d8a6html

WSDOT Seeks Public Comment on Disadvantaged Business Enterprise By The Chronicle Oct 31 2017

The Washington State Department of Transportation will be accepting public comments about the departmentrsquos proposed Disadvantaged Business Enterprise goal for federal contracts

The goal is for transportation projects receiving Federal Highway Administration funds to have 19 percent of the value of work done by minority or women-owned businesses during the 2018 through 2020 fiscal years

ldquoThe purpose of the DBE program is to create a level playing field for firms owned and operated by disadvantaged individuals wanting to participate in federally assisted highway transit and aviation programsrdquo a press release from WSDOT said

A series of public meetings will be held to discuss the goal in Spokane Vancouver and Seattle

For those who are unable to attend the in person meetings a webinar will be hosted from 230 to 430 pm Thursday Dec 5 The webinar is free but registration is required To register email DisparityStudywsdotwagov

Page 1 of 2WSDOT Seeks Public Comment on Disadvantaged Business Enterprise | News | chronlin

1112018httpwwwchronlinecomnewswsdot-seeks-public-comment-on-disadvantaged-business-

Written comments can also be submitted by mail or email to Jackie Bayne policy and reporting manager for the department of transportation at Washington State Department of Transportation Office of Equal Opportunity PO Box 47314 Olympia 98504 or by email at disparitystudywsdotwagov Comments will be considered through Dec 17 2017

More information about the goal is available at all regional offices or at the main office in Olympia located at the Transportation Building 310 Maple Park Ave SE Olympia More information can also be found online at wsdotwagovequalopportunity

Page 2 of 2WSDOT Seeks Public Comment on Disadvantaged Business Enterprise | News | chronlin

1112018httpwwwchronlinecomnewswsdot-seeks-public-comment-on-disadvantaged-business-

larr Halfway there SR 8 fish barrier removal reaches milestone New SR 26 traffic cameras available rarr

WSDOT seeks comments on proposed DBE contracting goal for highway projects

December 1 2017 | No Comments

WSDOT is seeking comments on proposed participation goals for Disadvantaged Business Enterprises on upcoming Federal Highway Administration contracts a Yakima meeting has also been added to the schedule Source WSDOT Permalink WSDOT seeks comments on proposed DBE contracting goal for highway projects

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Page 1 of 3WSDOT seeks comments on proposed DBE contracting goal for highway projects | Tukw

1112018httptukwilatowingcom20171201wsdot-seeks-comments-on-proposed-dbe-contracting

From Liz EvansTo Bayne JackieSubject AGC Comments on Proposed 10 GoadDate Tuesday December 12 2017 50314 PMAttachments WSDOT Proposed Goal - AGC Comments FINALdocx

Hi there Jackie Attached are AGCrsquos comments on WSDOTs proposed 19 goal We will also be mailing you a copy Thanks for the opportunity to comment and we hope you find it helpful Regards Liz Liz Evans CAE Northern District ManagerAGC OF WASHINGTONTel 3602238757 | wwwagcwacom JOIN US for the 2018 AGC of Washington Annual Convention amp Technology Expo Jan 26

CUsersmwillmsPicturesInland AGCLogo_RGB_Half_5in

December 12 2017

Page 5

December 12 2017

VIA EMAIL amp US MAIL

Ms Jackie Bayne Policy amp Reporting Manager

Washington State Dept of Transportation

210 Maple Park Ave SE

PO Box 47314

Olympia WA 98504

RE WSDOT Proposed FHWA Triennium Disadvantaged Business Enterprise Goal

Dear Ms Bayne

This letter summarizes the views of the Associated General Contractors of Washington and Inland Northwest Associated General Contractorsrsquo (hereafter referred to collectively as AGC) regarding the Washington State Department of Transportationrsquos (WSDOT) recently proposed FHWA Triennium Disadvantaged Business Enterprise (DBE) Goal (the ldquoProposed Goalrdquo) AGC shares WSDOTrsquos commitment to continue the promotion of DBE firms but AGC is concerned the Proposed Goal which is a significant increase from the previous goal and actual utilization may have unintended consequences and could impose significant burdens on both prime contractors and DBE contractors alike AGC requests WSDOT reconsider its Proposed Goal and adjust the Proposed Goal to account for inevitable availability and capability issues including the lack of a formal retraction of the non-minority woman owned business waiver that makes up over half of the Proposed Goal Implementing an unachievable goal will only be to the detriment of the DBE program

1 AGCrsquos Membersrsquo Interest in WSDOTrsquos Proposed Goal

Together AGC of Washington and Inland Northwest AGC represent and serve the commercial industrial and highway construction industry These professional associations of commercial contractors are comprised of more than 900 members who have joined together to enhance the performance of their industry and build a better climate for construction operators many of which are small and closely held businesses

Like WSDOT AGC is firmly committed to the principals of equal opportunity and promoting efforts to ensure minority women and veteran owned businesses are properly represented In both its political advocacy and membership programs AGC has demonstrated its commitment to increasing the representation of disadvantaged groups in the construction industry as both workers and owners of firms For AGC this is both an issue of principles and a practical one The construction industry as a whole is facing a critical shortage of workers and it is imperative that the industry attract new participants Among AGCrsquos activities demonstrating this commitment are the following

middot AGC has an ongoing ldquoContractor Exchangerdquo program through which small minority- and women-owned subcontractors are offered one-on-one networking opportunities with established general contractors

middot The AGC Education Foundation provides financial support to construction-related programs in K-12 schools and conducts outreach specifically targeted at low income disadvantaged and female students

middot More than 2500 students most from inner-city schools participate in annual AGC-sponsored Construction Career Days in King Pierce and Spokane Counties

middot AGC supports the Pre-Apprenticeship Construction Training (PACT) program at Seattle Vocational Institute This program is focused on preparing underrepresented communities to be highly qualified applicants and successful apprentices in the construction trades

middot AGC is a sponsor of the Turner School a training course for minority- and women-business owners in the construction industry

middot AGC supports the National Association of Women in Construction (NAWIC) which provides professional development and other services to its members

middot AGC routinely supports legislative efforts aimed at supporting small businesses and encouraging small business participation

middot AGC recently formed a Diversity and Inclusion Committee comprised of both prime and DBE participants The purposed of the committee is to expand opportunities for DBE members and to help AGC consider diversity in decision-making Recently AGC approved a deeply discounted introductory dues structure for certified DBE members

middot AGC is a WSDOT partner on the new mentorproteacutegeacute program

AGCrsquos experience has been that the most effective approach is to help make emerging businesses successful through outreach training and public policies that will grow their capacitymdashnot by imposing mandates without clear evidence as to the mandates feasibility

2 WSDOTrsquos Proposed Goalrsquos Impacts To The Construction Industry

WSDOTrsquos Proposed Goal is 190 The Proposed Goal is based upon the recent Collete Holt amp Associates (CHA) Disparity Study released in 2017 With respect to availability the Disparity Study reports the following weighted availability for FHWA-Funded projects

Thus the 190 goal factors in Black Hispanic Asian Native American and White Women into its availability As indicated however this 19 goal raises a number of concerns

a WSDOTrsquos 19 Proposed Goal Represents a Significant Increase Without Concrete Evidence of Available And Capable DBE Firms

First WSDOTrsquos Proposal Goal of 190 represents a significant increase as compared to actual DBE participation (141 in 2014 117 in 2015 and 151 in 2016) as well as the last FHWA proposed goal of 116 for 2014-2018 See WSDOTrsquos Proposed Goal and Interim FHWA Overall DBE Goal Methodology FFY 2014-2018 The Proposed Goal is 74 more than the last goal which represents a 638 increase and a 52 increase over the average actual utilization for 2014-2016 While Contractors were exceeding the previous 116 goal this is primarily based on the fact that WSDOT previously requested a waiver to consider non-women-owned businesses and the waiver was not granted and effective until June 2017 (meaning that for 2014-2016 women were counted towards race-conscious goals and inevitably a higher overall percentage of DBE firms were utilized)

Contractors struggle to meet present DBE goals due to the relatively low availability of experienced and certified DBE firms By increasing the goal WSDOT is understandably trying to increase the participation of underrepresented firms Drastically increasing the goals (by over 5 of actual utilization) without concrete evidence that there is sufficient availability andor capability of such firms however will have the opposite effect Notably this lack of availability and capacity of DBE firms was discussed in detail in the Disparity Study For example the CHA Disparity Study notes a number of concerns of DBE firms while technically ldquoavailablerdquo with respect to the goal percentages are unable to meet the requirements necessary to fulfill the contract including purchasing the equipment necessary having available labor and ability to meet insurance and financing requirements Thus while there may be ldquoavailablerdquo firms there is not clear evidence (and if fact evidence to the contrary) that those available firms are capable and available to perform the majority of the FHWA-Funded contracts let by WSDOT

An additional example affecting DBE capability and availability that is not factored into the CHA Disparity Study or WSDOTrsquos Proposed GOAL is DBE ability to enter into Project Labor Agreements (ldquoPLAsrdquo) WSDOT has indicated their interest in pursuing a PLA AGC Members have raised concerns based on repeated experiences that many DBE firms due to the administrative and cost impacts refuse to enter into PLAs precluding those firms from performing certain work or increasing costs Again this lack of ability (or refusal) to perform should also be factored into WSDOTrsquos Proposed Goal which is not currently the case

b The Proposed Goal Does Not Account For The Current Non-Minority Woman Owned Business Waiver Still In Place

Second despite the significant increase WSDOT does not account for the current waiver of non-minority women owned businesses that remains in place As noted in WSDOTrsquos proposal comments WSDOT previously sought and received a waiver of the regulation that White females as a group are presumptively disadvantaged This waiver was heavily criticized by many including AGC and the results of the most recent CHA Disparity Study confirmed that White females are presumptively disadvantaged and do not enjoy a level playing field for USDOT-assisted contracts Therefore the CHA Disparity Study recommends that this group be returned to the status of goal credit eligibility WSDOT has sought a recession of the waiver but has not yet to our knowledge received a rescission of the waiver Nevertheless the 19 Proposed Goal still includes White women In fact of the 19 availability percentage White women represent 103 (over half) Accordingly for WSDOT to proceed with the 19 goal WSDOT must receive the rescission of the waiver for this goal to be even remotely possible to achieve If the rescission is not received the Proposed Goal must be adjusted

C The Proposed Goal Does Not Account For Availability Differences Across The State

Third the Proposed Goal does not account for availability difference across the state Eastern Washington contractors with an even scarcer pool of available and qualified DBE firms in the area as is the case now will be forced to subcontract to Western Washington firms paying transportation and per diem premiums for such work The CHA Disparity Study again provides numerous excerpts of anecdotal evidence demonstrating that the goals in Eastern Washington are too high A few of the contractor comments on the topic are as follows

When you apply those same goals to a different geographic region a different project site for a large firm to meet those goals is difficult because theres not necessarily the expertise in parts of the project that were submitting on

Theres very few DBEs over here [in Eastern Washington] Next year theres going to be even more work over here What are we going to do with all these goals We always meet the goals like I said youve got three four DBEs over here to do all the work and then they cant perform

There are just no [minority-owned] DBEs available in eastern Washington

See CHA Disparity Study at p 54 Again these are factors that should be taken into account in developing the Proposed Goal or at the very least its application WSDOTrsquos Proposed Goal however is silent as to this significant issue

When the lack of available firms with the capacity to perform significant DBE projects is coupled with the increased goals the price of WSDOT contracts will inevitably increase to the significant detriment of Washington taxpayers and the public entities Inevitably with a lack of available qualified firms the lack of competition will become evident and small qualifying contractorsrsquo prices will increase due to supply and demand principles as they become selected for projects and less able to take on additional work These increased DBE contract values will be passed on to the public agency and taxpayers which translates into fewer dollars available for the sorely needed and promised infrastructure upgrades In addition the instance of bid protests will inevitably increase potentially delaying projects and further diverting agency resources from badly needed infrastructure upgrades to resolving unnecessary disputes or rebidding the projects altogether

Finally faced with such drastic and potentially impossible requirements if adjustments are not made contractors may focus more on demonstrating good faith efforts Both a contractor who meets the required goal and a contractor that demonstrates good faith efforts are eligible for award It is likely that the contractor relying upon good faith effortsmdashwho will have a lower price than the other contractor who sacrificed price to actually meet the goalmdashwill be selected by the public agency This outcome will erode the total percentage participation of eligible firms and would clearly be inapposite of WSDOTrsquos intentions

3 Conclusion and Request

AGCrsquos members have asserted these and multiple other concerns Implementing an increased goal across the state and all contracts without clear evidence of available DBEs capable of performing the work and meeting the project requirements will have significant and far-reaching impacts on the construction industry many of which work against the aim of the Proposed Goal itself AGC requests WSDOT reconsider its Proposed Goal of 19 and make adjustments to account for the capability of DBE firms the lack of a rescission of the non-minority waiver and the lack of available DBE firms in parts of the state This Proposed Goal and its impacts on the construction industry will be irrevocable and will be to the detriment of taxpayers It is prudent to address these adjustments before implementing the Proposed Goal

Very truly yours

David DrsquoHondtCheryl Stewart Executive Vice President AGC of WashingtonExecutive Director Inland Northwest AGC

AGC of Washington bull 410 11th Avenue SE 203 Olympia WA 98501

Inland Northwest AGC bull 4935 E Trent Avenue Spokane WA 99212

image3jpeg

image1png

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image4png

image5jpeg

From Steve SmithTo WSDOT Disparity StudyCc Bayne JackieSubject 19 DBE RequirementDate Thursday December 14 2017 31947 PMAttachments DBE List and NAICS Listingpdf

Disparity Committee I recently read in The Daily Journal of Commerce that WSDOT plans to adopt a 19 DBEstandard for all FHWA funded projects early next year Our company S amp K Painting Inc is abridge painting company which is based in and works exclusively in Oregon and Washington Ihave been the owner of this firm since 1978 when it was first established My concerns aboutthe proposed 19 DBE requirement is as follows 1 There are very few opportunities for subcontract work on bridge repaint jobs These jobsare usually limited to cleaning and painting the bridge The only other facet of the project istraffic control which is almost always 3 or less of the project total cost The traffic controldoes provide a very good subcontracting opportunity 2 The NAISC code of 238320 includes bridge painting but also includes house painting wallcovering rust proofing etc which have almost no similarities to bridge painting When thiscode is used to determine the number of available firms (DBE or otherwise) that are availablefor bridge painting project this badly skews the numbers I would suggest that bridge paintingcontractors make up less than 5 of all firms in NAISC code 238320 3 If future WSDOT bridge painting projects require a 19 DBE participation A The qualified pool of DBE subcontractors available to submit pricing on any facetother than traffic control will be very limited I reviewed a list of 19 certified DBE firms listedunder painting at the WSDOT website and only recognized one firm from past projects B The number of prime bidders and competition will fall The state will incur highercosts due to this fact C Prime bidders will be forced to subcontract unqualified contractors just to be eligiblefor contract awards This will likely reduce the quality of the finished project Thank you for considering my concerns I may not have verbalized my thoughts as well as Iwould have liked but I have been in this business for almost 40 years and truly believe what Ihave said Sincerely

Steve Smith President

SampK Painting incP O BOx 390clacKamaS OregOn 97015Phone (503) 557-5544Fax (503) 557-5566Cell (503) 260-5280Steveskpaintingcom

From Lei WuTo Bayne JackieSubject comments on WSDOT proposed DBE goalDate Thursday December 14 2017 94925 PM

To Whom It May Concern

Below is my comments

The WSDOT recommended DBE Goal for FHWA contracts of 190 is a small andimportant increase that can further achieve equity in WSDOTFHWA contracting I am insupport of the 19 DBE Goal

I also want to express my appreciation for the thoroughness of the WSDOT Disparity studyand how the study disclosed the disparity in WSDOT contracts that do not have a DBE orWBE goal ndash further reinforcing that all women-owned firms and minority owned firms faceequity issues

I remain concerned with the methodology required by the Code of Federal Regulations andcase law because of the dependence on the availability of firms in the calculation Anunintended consequence of removing either gender or race from the goal is that many of thesefirms would go out of business the availability decreases and the formula then results in asmaller DBE goal

Thanks

Lei

Lei Wu PE AICP

Principal CSL Consulting

LeiWucsl-consultingnet

(425)562-6275

From Stephanie SimpkinsTo WSDOT Disparity StudySubject DBE Contracting goalsDate Wednesday November 29 2017 20259 PM

My name is Stephanie Simpkins and I own North Star Enterprises It is a large womanowned traffic control company located in Spokane Washington My mother founded thecompany in 1984 and I have worked in this family owned business most of my life Ipurchased the business from her in 2013 and have been sole owner since then My company thrived under the Disadvantaged Business Enterprise (DBE) Programimplemented by Washington Department of Transportation and administrated by United StatesDepartment of Transportation What started as a small business with one truck and a fewemployees has grown over the years to be one of the largest traffic control companies in thestate and employee countless people every construction season It has not been an easy roadover the years being a woman in the construction industry never is and it is hard to say wherewe would be now if it werenrsquot for the assistance of the DBE program As you know in June of 2017 majority women were removed from the DBE program basedon a disparity study conducted in 2012 On March 2014 Washington Department ofTransportation requested a wavier to remove majority women from the DBE program Thishas had an immediate and drastic impact on my business and all who work for me From themoment the waiver was approved and my company could no longer be used as a condition ofaward at bid time I began losing work Most recently the 2018 North Central Region ChipSeal which we have worked on for the last 10 years This contract provides work forapproximately 40 employees for the entire construction season I have already been told byseveral contractors that with such a high UDBE goal they wont even be able to consider mefor this project This loss along with several other smaller contracts to date are painting avery dismal future for my business With all of this turmoil surrounding the future of my business I find it frustrating to say theleast that WSDOT has chopped me off at the legs by not allowing my firm to count for theCOA but can use the little participation I may still contribute to help them reach their overallstate goal How is this fair If the contractors canrsquot utilize my business than neither shouldWSDOT As far as setting future state DBE contracting goals it looks as if the bar will beraised once again all while excluding the largest subset of useable DBErdquoS To me raising theoverall state goal at this time (which is already challenging to meet) with women DBErsquosexcluded from the program seems horribly ill timed

From Karen R BannishTo Bayne JackieSubject DBE GoalDate Tuesday December 5 2017 32549 PM

Hello Jackie ndash thank you for the webinar today concerning the proposed Overall DisadvantagedBusiness Enterprise Goal for the Federal Highway Administration I understanding the DisparityStudy much better now and checked the document you mentioned on the WSDOT website Pacific County is located in the Southwest corner of the State of Washington The tip of the LongBeach Peninsula would be 2 frac12 hours from Interstate 5 Our federal work primarily includes strictlyoverlay projects with 12 or fewer items of work included in the contract When bidding a project(our contracts are usually less than $500000) we sometimes received a single bid from the process Due to our proximity and the small cost for the work it is difficult to entice DBE participation Thereare simply no items of work that can be performed Having a mandatory DBE goal placed upon theproject in a rural area simply to meet the disparity guidelines will only increase the cost of theproject We feel the goals should be set in balance with the cost of the project and the items of work and notsimply directed to meet the overall goal

Karen BannishSenior Engineering TechnicianPacific County Department of Public Works211 North Commercial StreetRaymond WA 98577(360) 875-9368

From Dawn EgbertTo Bayne JackieSubject DBE Program Disparity StudyDate Tuesday December 5 2017 23825 PM

Hi JackieThank you for the great information on the call today You talked about the small works rosterbriefly We had a conversation in our office today about small contractors who are signed up on thePort of Vancouverrsquos small works roster Our team has had opportunity to talk to some of thecompanies on our roster who are women owned or minority owned businesses but they arenrsquotsigned up as a DBE firm When asked about that theyrsquove mentioned that they donrsquot want to fill outthe additional paperwork required to obtain the certification as a DBE As for the DBE goal at 19 it doesnrsquot seem to present an issue for the majority of our projects ndashespecially those where we would apply FHWA funds if granted However if we did happen to have aproject that didnrsquot include classifications of work where DBE certified participants are availablewould there still be an exception or a good faith efforts clause Thanks again for your time Dawn EgbertProcurement Services Manager3103 NW Lower River Road Vancouver WA 98660Direct 3609921102 | Cell 360448-9867 | Main 3606933611 | Fax 360735-1565degbertportvanusacom | wwwportvanusacom | available port properties Leadership | Stewardship | Partnership

From Feist MarleneTo WSDOT Disparity StudyCc Simmons Scott M Twohig KyleSubject Disparity Study Comments from City of SpokaneDate Friday December 15 2017 52226 PMAttachments image010png

image011pngimage012png

December 15 2017 Jackie BaynePolicy amp Reporting ManagerOffice of Equal OpportunityWashington State Department of TransportationPO Box 47314Olympia WA 98504-7314 RE Proposed DBE Contracting Goal for Highway Projects Dear Ms Bayne The City of Spokane would like to provide comments related to proposed DisadvantagedBusiness Enterprise Goal for Federal Highway Administration (FHWA) contracts by theWashington State Department of Transportation (WSDOT) Office of Equal Opportunity Manyof our projects receive funding from FHWA and as such the proposed new goals areapplicable to City work The City is supportive of the programrsquos purposemdashldquoto create a level playing field for firmsowned and operated by disadvantaged individuals wanting to participate in federally assistedhighway transit or aviation programsrdquo However the City is concerned about the ability to achieve the proposed utilization rate of upto 19 percent for DBEs in Eastern Washington considering the low number of DBEs in ourregion and the record construction under way in the City and in our region WSDOTrsquos DBE Program Disparity Study notes ldquoContractors in Eastern Washington repeatedlyreported that the goals on projects in their area are too highrdquo The Inland NorthwestAssociated General Contractors group notes that only about 12 DBEs in construction fields areavailable in the greater Spokane area Meanwhile the City has performed record construction in each of the last three years withproject totals hovering around $100 million Our City work has been bolstered by anaggressive program to improve water quality in the Spokane River Our local school districtsand our neighboring jurisdictions also have aggressive construction programs right now

Additionally we expect WSDOTrsquos work in this region to accelerate as North Spokane Corridor(NSC) construction proceeds At times our area is reaching the limits overall of our contractingcommunity the City has worked to release its projects in the first quarter of the year as muchas possible to lock in contractors and receive better pricing The capacity of existing DBEs in our region simply cannot meet that current high demand Some DBE firms are tempted to agree to more work in these times but we have found that insome cases DBEs have stretched themselves too thin On two recent City projects generalcontractors were unable to meet DBE goals as a result of DBE firms that couldnrsquot fulfill theircommitments for providing personnel or equipment It also seems implausible to expect DBEs from the West Side to mobilize teams to work on Cityof Spokane projects in large numbers In fact the Disparity Studyrsquos author responded at arecent meeting on this topic that a DBE from the West Side only very rarely completes workon the East Side of the state We would also be concerned about moving the good-paying jobs that construction providesoutside of our region The Cityrsquos median household income is $44350 considerably lower than theState of Washington MHI of $64129 and the Seattle MHI of $77351 Our leaders are working tocreate good-paying jobs for our citizens not export them to an already wealthier part of the state Additionally these projects are also funded with local dollars and our citizens expect their money toput their neighbors to work With the above considered the City is seeking

middot DBE goals for the 2018-2020 compliance period for Eastern Washington that arereflective of the current availability of DBE firms in our region

middot The re-inclusion of non-minority women owned DBEs in achieving DBE goals InSpokane non-minority women owned DBEs make up the majority of the availableDBEs And current information shows that women in Spokane overall still lag behindmen in opportunities and wages The Cityrsquos own ldquoGender and Racial Equityrdquo reportfrom 2016 noted that overall working women earned 783 percent of the earnings ofworking men in 2014 down from 827 percent in 2009 We need to lift up all women

middot The development of WSDOT programs to encourage the growth of existing andnew DBEs who can be used on street and highway projects We are encouraged by theproposed mentorproteacutegeacute program to increase the number and capacity of DBEs inEastern Washington Programs that address other barriers such as assistance withcompleting documentation or access to bonding capacity also could aid growth ofDBEs

middot The ability for WSDOT to adjust goals on a project if a selected DBE is unable tocomplete its commitments on a project This would help enable our contractors totake a chance on a new or inexperienced DBE to complete work

middot Recognition of local programs that strive to increase diversity in the work force Forexample the City operates a robust apprenticeship program that requires 15 percentof the labor hours on public works jobs greater than $600000 to be performed byapprentices The apprentice programs in our region are stepping up recruitmentefforts and are specifically seeking to recruit more youth women and minorities intoapprentice slots

As we seek to achieve the goal of increasing participation in street and highway constructionby companies owned by disadvantaged individuals we must also acknowledge that businessdevelopment and growth happens over time We must lay the groundwork now to build abase of DBEs that can help us achieve higher utilization goals over time Sincerely Marlene FeistDirector of Strategic DevelopmentPublic Works amp UtilitiesCity of Spokane

Marlene Feist | City of Spokane | Public Works Director of Strategic Development5096256505 | cell 5097109214 | mfeistspokanecityorg | spokanecityorg

From Hall MattTo WSDOT Disparity StudySubject FW WSDOT News - WSDOT seeks comments on proposed DBE contracting goal for highway projectsDate Friday December 15 2017 11956 PMAttachments WSDOT proposed DBE goal through 2020pdf

From Hall Matt Sent Friday December 15 2017 117 PMTo BayneJwsdotwagovCc Keniston Rick (KenistRwsdotwagov) MolyneKwsdotwagov SusanWilsonclarkwagovSubject WSDOT News - WSDOT seeks comments on proposed DBE contracting goal for highwayprojects Hello Jackie Please see our comments attached regarding the WSDOT proposed DBE goals Thanks for the opportunity to provide comments Matt HallClark County Public Works Washington State Department of Transportation ndash NEWSHeadquarters ndash 310 Maple Park Avenue SE ndash Olympia WA 98504-7314 ndash 360 705-7000 FOR IMMEDIATE RELEASEOct 30 2017 Contact Jackie Bayne Office of Equal Opportunity 360 705-7084

WSDOT seeks comments on proposed DBEcontracting goal for highway projectsComments accepted through Dec 15OLYMPIA ndash Contractors trade and labor organizations small and disadvantaged businessesand all others who may be interested in working with the Washington State Department ofTransportation are invited to comment on the agencyrsquos proposed Disadvantaged BusinessEnterprise goal for Federal Highway Administration contractsDBE goals for transportation projects that receive federal funds represent a percentage of thevalue of work in which minority- and women-owned businesses should participate WSDOTis proposing a 19 percent overall DBE participation goal on Federal Highway Administration-funded projects for federal fiscal years 2018 through 2020Once submitted to FHWA early next year the goal will be effective through Sept 30 2020The purpose of the DBE program is to create a level playing field for firms owned andoperated by disadvantaged individuals wanting to participate in federally assisted highwaytransit and aviation programsConnecting with communitiesWSDOT will host a series of public meetings to provide opportunities for individuals tocomment in person

Spokane

2 ndash 4 pm Tuesday Nov 28WSDOT Eastern Region Headquarters2714 N Mayfair St Spokane

Vancouver

2 ndash 4 pm Wednesday Nov 29WSDOT Vancouver Headquarters11018 NE 51st Circle Vancouver

Seattle

2 ndash 4 pm Thursday Dec 7WSDOT Northwest Region Headquarters15700 Dayton Ave N Shoreline

Other ways to provide commentThose who are unable to attend one of the meetings can participate in a no-cost webinar from230 ndash 430 pm Tuesday Dec 5 Registration for the webinar is required Those interested inparticipating should email DisparityStudywsdotwagovWritten comments can also be submitted by mail or emailJackie Bayne Policy amp Reporting ManagerWashington State Department of TransportationOffice of Equal OpportunityPO Box 47314Olympia WA 98504-7314DisparityStudywsdotwagovDocuments detailing the methodology used for determining the FHWA DBE goals areavailable for review at all WSDOT region headquarters offices and at the TransportationBuilding 310 Maple Park Ave SE Olympia They are also available online atwwwwsdotwagovequalopportunityWSDOT will consider all written comments received through Friday Dec 15 2017 Hyperlinks within this release

WSDOT Region offices wwwwsdotwagovContactofficelocationhtmregion

WSDOT keeps people businesses and the economy moving by operating and improving the statestransportation systems To learn more about what were doing go to wwwwsdotwagovnews forpictures videos news and blogs Real time traffic information is available at wwwwsdotcomtraffic or bydialing 511 Americans with Disabilities Act (ADA) InformationAccommodation requests for people with disabilities can be made by contacting the WSDOTDiversityADA Affairs team at wsdotadawsdotwagov or by calling toll-free 855-362-4ADA (4232)Persons who are deaf or hard of hearing may make a request by calling the Washington State Relay at711 Title VI Statement to Public It is WSDOTrsquos policy to assure that no person shall on the grounds ofrace color national origin or sex as provided by Title VI of the Civil Rights Act of 1964 be excluded fromparticipation in be denied the benefits of or be otherwise discriminated against under any of its federallyfunded programs and activities Any person who believes his or her Title VI protection has been violatedmay file a complaint with WSDOTrsquos Office of Equal Opportunity For additional information regarding Title

VI complaint procedures andor information regarding our non-discrimination obligations please contactOEOrsquos Title VI Coordinator at 360-705-7090 To unsubscribe to WSDOT media releases please reply and type REMOVE in the subject line

This e-mail and related attachments and any response may be subject to public disclosure under state law

From Cochrane EmilieTo WSDOT Disparity StudyCc Eugenis Susan Cowlitz Co Public Works - Brad BastinSubject Proposed DBE GoalsDate Thursday December 14 2017 85006 AMAttachments image002png

DBE Goals - Commentspdf

Please see the attached letter with comments regarding the proposed DBE Goals Ahard copy will be sent out today

Thanks

Emilie CochraneCowlitz County Public Works1600 ndash 13th Avenue SKelso WA 98626360-577-3030 ext 6523

From Michelle WolcottTo Bayne JackieCc Robideau Christopher LSubject RE DBE Contracting Goal CommentsDate Tuesday November 7 2017 65448 AMAttachments image001png

Thank you JackieWhat a relief to know that we have been heard and are not the only small business facing thisstruggle Your email is comforting

Yes you can provide us with additional assistanceLet me introduce my boss and Senior Vice President of Red Plains Professional Chris Robideau

Chris will be your contact from here since I will be leaving the company November 17th As a WA DBE we are ldquoeligible for limited DBE Support Services (SS) funding when funds becomeavailablerdquo When will this happen And are we registered or on a list to receive fundingIs the WSDOT ICR Training a prerequisite for the funding Or just helpful knowledge

Thank you for your time Jackie I will follow through with the training

Michelle Wolcott EIT Quality Control Engineer

2103 NE 129th Street Suite 201 Vancouver WA 98686 Office (360) 448-7999 Fax (360) 258-0274

wwwred-plainscom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Monday November 6 2017 332 PMTo Michelle Wolcott ltMichelleWolcottred-plainscomgtSubject RE DBE Contracting Goal Comments

Hi Michelle

Thank you for your interest in doing business with WSDOT I apologize for the lack of informationyou have come up against in your attempts to attain access to WSDOT ICR program

As you may well know WSDOT has recently completed a state wide agency specific diversity studyAnecdotal comments submitted with the study concur with your experience Not only did somerespondents find it difficult to become prequalified they also commented that the required indirectrate of 110 percent is too low to be profitable These requirements are currently under advisementby WSDOT and new DBE program requirements are currently in the process of seeking public input

As you are an OMWBE certified DBE in Washington State you will be eligible for limited DBE SupportServices (SS) funding when these funds become available At that time funds may become availableto assist you in your struggle to attain ICR eligibility Here is a link to WSDOTrsquos Indirect Cost RateTraining httpswwwwsdotwagovAuditICRTraininghtm If you would like me to find additionaltraining or information please let me know

If I can provide additional assistance of information please let me know

Best Regards

Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Michelle Wolcott [mailtoMichelleWolcottred-plainscom] Sent Tuesday October 31 2017 835 AMTo WSDOT Disparity Study ltDisparityStudyWSDOTWAGOVgtSubject DBE Contracting Goal Comments

HelloI have been in contact with WSDOT for 6 months sharing my disparaging story of beinga small DBE unable to submit SOQs for projects requiring a WSDOT Audited IndirectCost Rate Approval We do not have an in-house accountant and our outsideaccountant has explained to get all the paperwork together for WSDOT would take 40hours of work $9000 annually We cannot justify this cost to submit on a project thatwe may not acquire We have been directed to seek financial assistance from WSDOT Federal SBA andWashington State Office for Women and Minority Owned Enterprises all of whichprovided negative responses

As a DBE business in 11 states we are supporting the 19 incentive for federallyfunded contracts but we are frustrated in the fact that we will not be one of the luckyfew to participateWe have been in business 20 years From our Vancouver Washington office our clientsare the Native American tribes across the country with all contracts federally funded This summer alone the WSDOT ICR Approval has squashed our ability to submit on twoprojects that we were perfectly qualified to performI have attached previous emails to show a sample of who I have been dealing with

Thank you

Michelle Wolcott EIT Quality Control Engineer

ltimage001pnggt

2103 NE 129th Street Suite 201 Vancouver WA 98686 Office (360) 448-7999 Fax (360) 258-0274 wwwred-plainscom

From Michelle Wolcott Sent Monday July 10 2017 954 AMTo Harvey Schatzie ltHarveySwsdotwagovgtSubject RE WSDOT Indirect Cost Rate Process

Good Morning Schatzie

This is Michelle Wolcott from Red We spoke Friday June 30th about the ICRprocess and you were very encouraging I relayed the information to my boss who ishere in Vancouver then he shared with the president bookkeeper and our accountantin Oklahoma We had FAR compliance with Oklahoma DOT in 2015 so we are noteligible for the Safe Harbor Program Our account said our timekeeping system doesnot breakdown the hours and pay in the format WSDOT wants to have it presented andto get the documents in order would take the CPA and an assistant $9000 in paidhours of work It turns out this would have to be annually The other option is to hirean outside CPA firm to do the audit for us at $20000 annually

Our president said in the past we received funding assistance from the Stateof Oklahoma to get our ICR approval Does WSDOT offer any financial assistance for small businesses to reach compliance We are also a DBE in WA I have requested the same information from WA PTAC at theVancouver Chamber of Commerce and from WA Office of Minority and Women OwnedBusiness Enterprises and they both said there was nothing but suggested to askWSDOTThank you for your helpMichelle Wolcott EIT

Hello Michelle sorry but I am not aware of any grants But I was looking at this andthere is a POC at the bottom you may try to discuss the audit issuesHollyHolly BoehmeBusiness Opportunity Specialist | 8(a) Business Development ProgramUS Small Business Administration bull Seattle District Office

Hello Michelle -

Thank you for your email Im not aware of any funding available for thispurpose but do agree its quite a bit for a DBE firm to have as an expense Mostof the firms I work with do a lot more work on the Oregon side so perhaps thereare programs available that I just havent heard of Im copying my colleagueHoly Boehme in our Seattle District Office to see if they are aware of any suchassistance

Holly might there be some small business incubators or other resources availablein WA to help a small firm with the expense of getting a WSDOT AuditedIndirect Cost Rate approval Please reply all with anything you may have

Thank you

Yuri Yoshida Dyson Business Opportunity SpecialistUS SMALL BUSINESS ADMINISTRATION Portland District OfficePhone 503-326-6692 Fax 202-292-3872 wwwsbagovor

From Troy HalbergTo Bayne JackieSubject Re DBE Goal CommentsDate Wednesday December 13 2017 35533 PM

JackieToday was another example of why the goals should not be raised There were 2 jobs which Iwas low on and did not get due to the high goals This is exactly what will happen when thegoals get raised The first job was the 9180 Anacortes Ferry Paving Northeast Electric $244924 and UDBE $318000 Second job was the 9172 SR 9 East Junction Job Northeast Electric $68503 and UDBE $76300

Does this seem like a good way to spend the tax payer money I do not see how we are tosurvive if the goals get to 21

Thanks

Troy HalbergOffice360-225-7004Cell360-931-3990Fax360-225-7001

On Thu Nov 30 2017 at 1131 AM Bayne Jackie ltBayneJwsdotwagovgt wrote

Good Morning Troy

Thank you for taking the time to provide us with your experiences with the DBE Program TheWashington State Department of Transportation takes the public involvement process veryseriously and your comments will be taken into consideration prior to a final decision regardingthe overall DBE program goal

If I can be of further assistance please let me know

Best Regards

Jackie Bayne

Policy and Reporting Manager

WSDOT Office of Equal Opportunity

Work (360) 705-7084

Cell (360) 338-5783

BayneJwsdotwagov

From Troy Halberg [mailtotroyhnellcnet] Sent Wednesday November 29 2017 144 PMTo WSDOT Disparity Study ltDisparityStudyWSDOTWAGOVgtSubject DBE Goal Comments

If these goals are to be set that high this would make us as a non DBE small contractor at amajor disadvantage With these high of goals this is like handing all of the DBE electricalcontractors every job These general contractors will have no option but to use thembecause of the goals This should not go into effect We have been low on several jobs in thepast and have not gotten them do to the goals being 18 When this goes on it puts all therest of us contractors at a disadvantage Please consider the smaller non DBE contractorsthat are looking to survive as well

Thanks

Troy Halberg

Office360-225-7004

Cell360-931-3990

Fax360-225-7001

From Daniel Seydel IITo Bayne JackieCc Key Earl daneiwashingtonorg Nadeem Ismail Mussie Tewelde (mteweldehydro2geotechcom)

graceflyrightaolcom Mary Wenner Watkinson LarrySubject Re Seydel Dan - WSDOT Disparity Study Presentation Public TestimonyDate Friday December 8 2017 30323 PM

Jackie

It was my hope that the comments would be put into record I was also hoping that you wouldnot have to be the one having to formulate responses for each clarification If that is the caseI know you are swamped and will then I just ask my comments be only part of the recordHowever if there is dedicated staff that is going to be compiling and responding to theclarification then the below questions would be the priorities of most interest

These were questions unrelated to the disparity study and hopefully should be doable

1) Do you have any reports on your outcomes from the past 5 years on DBE support servicesand specific key performance measures from previous years funding (ie how many firmsutilized what was the objectives were objectives met did outcomes meet total satisfaction ifnot why next steps what was the firms capacity before and after services were performed (iesales employees bonding if applicable insurance equipment line of credit if applicablenumbertype of customers how are they doing now etc))

2) What other changes or improvements other than allowing DBES to select their own serviceproviders and a staff change will be a part of this new program

3) Was consideration to provide the new mentor protege consultant rather than separating theactivities into support services andor technical assistance

Disparity study clarifications

1) Will WSDOT consider sponsoring legislation to support the policy changes and goalincreases to insure manditory goals wont be necessary

a) If not what measures will you grant primes to operate outside the box (ie entertain bestvalue over low bid modify responsiveness by subs to require adherence to meeting voluntarygoals developing standards around federally funded gccm and other low bid procurementsthat give powers to primes to meet objectives including but not limited to mentor protegerelationships joint ventures bond waiving techniques cash flow assistance material andequipment acquisition manufacturer development specifications that have only DBES orinclude equal number of DBES as non DBES as approved installers etc)

2) Will the disparity study consultant be available for implementation or information gatheringfrom other regions

5) Will WSDOT be hiring more diverse staff amp professionaltechnical service providers inother departments outside OEO to insure policies commitments and evaluations areperformed in manner that improves diversity that reflects the communities WSDOT serves bythoughtful and legal efforts increase participation thus creating successful outcomes includingpartnerships and collaborations

Thank you and Merry Christmas

Hi Dan

Thank you for providing such thoughtful public comments questions and testimony

Regarding your public testimony below - I do not believe I am not able to answer questions ifthey are public comments Please let me know what part of this email you would likeclarification on and what part you would like considered public testimony

I appreciate your thoughtful consideration of WSDOTrsquos implementation of our civil rightsprograms

Best Regards

Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

DIDaniel Seydel IIFyi Daniel J Seydel II Platinum Group LLC 2064060844 f) 2062999934wwwplatinumbusinessgroupcom Small Business is the Answer FREE TRAINING FORENTREPRENEURS amp JOB SEEKERS - Polish your skills or make your firm standout thanksto the EntrepreneurialThu 233pDI

Daniel Seydel IIThu 1272017 1123 AMInbox Sent ItemsShow all 7 recipientsTobaynejwsdotwagov ltBayneJwsdotwagovgtJackie

Per your request below are my questions and comments some of which were verbally sharedyesterday

Congratulations on receiving the blessing of additional technical assistance dollars andcompleting the DBE Disparity Study per your report

1) Do you have any reports on your outcomes from the past 5 years on DBE support servicesand specific key performance measures from previous years funding (ie how many firmsutilized what was the objectives were objectives met did outcomes meet total satisfaction ifnot why next steps what was the firms capacity before and after services were performed (ie

sales employees bonding if applicable insurance equipment line of credit if applicablenumbertype of customers how are they doing now etc))

2) What other changes or improvements other than allowing DBES to select their own serviceproviders and a staff change will be a part of this new program

3) Was consideration to provide the new mentor protege consultant rather than separating theactivities into support services andor technical assistance

Disparity study clarifications andor comments

1) Will WSDOT consider sponsoring legislation to support the policy changes and goalincreases to insure manditory goals wont be necessary

a) If not what measures will you grant primes to operate outside the box (ie entertain bestvalue over low bid modify responsiveness by subs to require adherence to meeting voluntarygoals developing standards around federally funded gccm and other low bid procurementsthat give powers to primes to meet objectives including but not limited to mentor protegerelationships joint ventures bond waiving techniques cash flow assistance material andequipment acquisition manufacturer development specifications that have only DBES orinclude equal number of DBES as non DBES as approved installers etc)

2) Will the disparity study consultant be available for implementation or information gatheringfrom other regions

3) What lessons did WSDOT learn that it did not know from the other study(s)

4) What would WSDOT do different (ie scope time line process approach etc)

5) Will WSDOT be hiring more diverse staff amp professionaltechnical service providers inother departments outside OEO to insure policies commitments and evaluations areperformed in manner that improves diversity that reflects the communities WSDOT serves bythoughtful and legal efforts increase participation thus creating successful outcomes includingpartnerships and collaborations

Daniel J Seydel IIPlatinum Group LLC 2064060844f) 2062999934wwwplatinumbusinessgroupcom

Small Business is the Answer

FREE TRAINING FOR ENTREPRENEURS amp JOB SEEKERS - Polish your skills or makeyour firm standout thanks to the Entrepreneurial Institute of Washington

httpswwwyoutubecomchannelUCKL5YeVxL29HnNxqnb6hmXA

LIKE US on FaceBook if an Active Professional Development workshop provided by EIW

Construction University helps your firm or has benefited you

httpswwwfacebookcomEIWashingtonref=hl

From Bayne Jackie ltBayneJwsdotwagovgtSent Friday December 8 2017 10139 PMTo Daniel Seydel IICc Key Earl daneiwashingtonorg Nadeem Ismail Mussie Tewelde(mteweldehydro2geotechcom) graceflyrightaolcom Mary Wenner Watkinson LarrySubject RE Seydel Dan - WSDOT Disparity Study Presentation Public Testimony Hi Dan Thank you for providing such thoughtful public comments questions and testimony Regarding your public testimony below - I do not believe I am not able to answer questions if theyare public comments Please let me know what part of this email you would like clarification on andwhat part you would like considered public testimony I appreciate your thoughtful consideration of WSDOTrsquos implementation of our civil rights programs Best Regards Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov From Daniel Seydel II [mailtodanplatinumbusinessgroupcom] Sent Thursday December 7 2017 1123 AMTo Bayne Jackie ltBayneJwsdotwagovgtCc Key Earl ltKeyEwsdotwagovgt daneiwashingtonorg Nadeem Ismailltnipaintingearthlinknetgt Mussie Tewelde (mteweldehydro2geotechcom)ltmteweldehydro2geotechcomgt graceflyrightaolcom Mary Wennerltmwenn0108yahoocomgtSubject Seydel Dan - WSDOT Disparity Study Presentation Public Testimony Jackie

Per your request below are my questions and comments some of which were verbally sharedyesterday

Congratulations on receiving the blessing of additional technical assistance dollars andcompleting the DBE Disparity Study per your report

1) Do you have any reports on your outcomes from the past 5 years on DBE support servicesand specific key performance measures from previous years funding (ie how many firmsutilized what was the objectives were objectives met did outcomes meet total satisfaction ifnot why next steps what was the firms capacity before and after services were performed (iesales employees bonding if applicable insurance equipment line of credit if applicablenumbertype of customers how are they doing now etc))

2) What other changes or improvements other than allowing DBES to select their own serviceproviders and a staff change will be a part of this new program

3) Was consideration to provide the new mentor protege consultant rather than separating theactivities into support services andor technical assistance

Disparity study clarifications andor comments

1) Will WSDOT consider sponsoring legislation to support the policy changes and goalincreases to insure manditory goals wont be necessary

a) If not what measures will you grant primes to operate outside the box (ie entertain bestvalue over low bid modify responsiveness by subs to require adherence to meeting voluntarygoals developing standards around federally funded gccm and other low bid procurementsthat give powers to primes to meet objectives including but not limited to mentor protegerelationships joint ventures bond waiving techniques cash flow assistance material andequipment acquisition manufacturer development specifications that have only DBES orinclude equal number of DBES as non DBES as approved installers etc)

2) Will the disparity study consultant be available for implementation or information gatheringfrom other regions

3) What lessons did WSDOT learn that it did not know from the other study(s)

4) What would WSDOT do different (ie scope time line process approach etc)

5) Will WSDOT be hiring more diverse staff amp professionaltechnical service providers inother departments outside OEO to insure policies commitments and evaluations areperformed in manner that improves diversity that reflects the communities WSDOT serves bythoughtful and legal efforts increase participation thus creating successful outcomes includingpartnerships and collaborations

Thank you for your hard work

Daniel J Seydel IIPlatinum Group LLC2064060844f) 2062999934wwwplatinumbusinessgroupcom

Small Business is the Answer

FREE TRAINING FOR ENTREPRENEURS amp JOB SEEKERS - Polish your skills or makeyour firm standout thanks to the Entrepreneurial Institute of Washington

httpswwwyoutubecomchannelUCKL5YeVxL29HnNxqnb6hmXA

LIKE US on FaceBook if an Active Professional Development workshop provided by EIWConstruction University helps your firm or has benefited you

httpswwwfacebookcomEIWashingtonref=hl

From Erin EhlingerTo Bayne JackieSubject Support for WSDOTs proposed DBE goalDate Wednesday December 13 2017 115417 AM

I am writing to support the WSDOT recommended DBE Goal for FHWA contracts of 190 I also want to express my appreciation for the thoroughness of the WSDOT Disparity study and howthe study disclosed the disparity in WSDOT contracts that do not have a DBE or WBE goal ndash furtherreinforcing that all women-owned firms and minority owned firms face equity issues I remain concerned with the methodology required by the Code of Federal Regulations and case lawbecause of the dependence on the availability of firms in the calculation An unintendedconsequence of removing either gender or race from the goal is that many of these firms would goout of business the availability decreases and the formula then results in a smaller DBE goal Pleaselet me know how I can help influence a change to the CFR Thank you Erin Ehlinger

Erin Ehlinger PEPresident

24036 SE 47th StSammamish WA 98029erinehlingersmartcitytrafficcom425-221-0320

From Jackie EtterTo WSDOT Disparity StudySubject Why we need mandatory goalsDate Friday December 1 2017 61859 PM

As a DBE participating in bidding process I have found that regardless of the language which claims to insurethat disadvantaged business enterprises shall not be discriminated against the only way to ensure that this does nothappen is by mandating affirmative action goals Having been overlooked time and time again because of my gender when I have submitted bids that are verycompetitive with other bidders is very frustrating I have had many instances of companies using my price to getmy non DBE competitors to lower theirs The voluntary or laudatory DBE goals do nothing to ensure a level playing fieldThe only way to ensure non-discrimination is through mandatory goals

Jackie EtterWest Star Construction of Spokane

Sent from my iPhone

From Claudia HirscheyTo Key Earl Bayne JackieSubject WSDOT DBE Goal - Comment in supportDate Tuesday December 12 2017 61937 PM

Dear Earl and Jackie The WSDOT recommended DBE Goal for FHWA contracts of 190 is a small and important increasethat can further achieve equity in WSDOTFHWA contracting I am in support of the 19 DBE Goal I also want to express my appreciation for the thoroughness of the WSDOT Disparity study and howthe study disclosed the disparity in WSDOT contracts that do not have a DBE or WBE goal ndash furtherreinforcing that all women-owned firms and minority owned firms face equity issues I remain concerned with the methodology required by the Code of Federal Regulations and case lawbecause of the dependence on the availability of firms in the calculation An unintendedconsequence of removing either gender or race from the goal is that many of these firms would goout of business the availability decreases and the formula then results in a smaller DBE goal Sincerely Claudia S Hirschey PETransportation Consulting Servicesclaudiahirscheycomcastnethttphirscheytcscom2068564988 Mobile

From Nate ThomasTo WSDOT Disparity StudySubject WSDOT Proposes DBE goal of 19Date Thursday December 7 2017 42720 PM

The WSDOT should look into similar ways the Federal Gov has handled the equal opportunity forthose that fall under the DBE status and set aside specific projects for the DBErsquos and moreimportantly UDBErsquos so these companies have better chance of landing contracts Maybe a lot 10 ofthe DBE goal to set aside for only DBEs and other 9 goal met as it is done currently with COA onlarger contracts Nate ThomasSenior EstimatorD 5095688085 | C 5099941156331 North Fancher Road | Spokane WA | 99212

The information contained in this email including any attachments is confidential and may beprivileged It is intended only for the person or entity to which it is addressed and no waiver isintended by sending this email If the reader is not the intended recipient you are herebynotified that any review retransmission dissemination or other use of or taking any action inreliance upon this information is strictly prohibited If you have received this email in errorkindly notify the sender by reply email and delete the original message from any computerThank You

From Brian FujiiTo WSDOT Disparity StudySubject WSDOT propsed DBE GoalsDate Thursday December 7 2017 110638 AM

Good morning Jackie

I wanted to comment on WSDOTs proposed DBE goal to 19 I believe WSDOTs plan toincrease the overall DBE goal to 19 will provide greater opportunities for DBE contractorsin different disciplines to participate in federally funded contracts

Without the new DBE requirement and with Proposition 200 there are limited opportunitiesfor DBE contractors in disciplines different than the typical trucking flagging and rebar Inaddition there are no incentives for general contractors to go out beyond the usual truckingflagging and rebar DBE subcontractors

Increasing the DBE goals will provide opportunities for different DBE contractors in differentdisciplines to participate in WSDOT federally funded projects

Thank you for your time

RespectfullyBrian FujiiPresident Subsurface ConstructionP 2063836478F 2069604639MDBE 4M0024998

From Forman StephanieTo Bayne JackieCc Millar Roger christinenhanmailhousegov Claudia Hirschey Sarah Corbin Jiang Yingle

efaulknerenviroissuescom Diana Giraldo Kelly CheesemanSubject WTS - Disparity Study Comment LetterDate Friday December 15 2017 71020 PMAttachments 2017_Dec 15_WTSCommentLetter_WSDOT DBE Goalpdf

Dear Ms Bayne Please find our attached letter which summarizes the WTS Puget Sound Chapterrsquos support foradvancement of women in transportation and our comment letter regarding the recent DisparityStudy Please feel free to contact me if you have any questions or would like to discuss Sincerely Stephanie S Forman PEWTS Puget Sound President Transportation Project Manager

929 108th Avenue NE Suite 1300Bellevue WA 98004D 4254681548 M 2062291745stephanieformanhdrinccom

December 15 2017

Jackie Bayne Policy and Reporting Manager

Office of Equal Opportunity

Washington State Department of Transportation

PO Box 47314

Olympia WA 98504-7314

Dear Ms Bayne

On behalf of the Puget Sound Chapter of Womenrsquos Transportation Seminar (WTS) we would

like to thank the Washington State Department of Transportation for presenting to our

organization the DBE Disparity Study results We very much appreciated the presentation by Earl

Key Director of WSDOTrsquos Office of Equal Opportunity Teresa Berntsen (Director Office of Minority

and Womens Business Enterprises) as well as Leslie Jones (Director Sound Transit Office of Small

Business Development and Labor Compliance)

Following a review of the WSDOT Disparity Study and as a result of consultation with WTS

International we would like to provide WSDOT with our comments for your consideration

As you know WTS is an organization focused exclusively on attracting retaining and advancing

women in transportation By the year 2018 there will be thousands of vacancies in the

transportation industry for qualified professionals and while women account for more than half of

the worldrsquos workforce they are a very small minority in transportation disciplines

We are pleased that the outcome of the 2017 Disparity Study that recognizes the on-going barriers

for DBEs including women-owned businesses in transportation The WSDOT recommended DBE

Goal of 190 is a small and important increase that can further achieve equity in WSDOTFHWA

contracting We are also pleased that the 2017 Disparity Study has documented the disparity in

WSDOT contracts that do not have a DBE or WBE goal ndash further reinforcing that all women-owned

firms and minority owned firms face equity issues We are encouraged that the WSDOT has asked

FHWA to rescind the 2016 waiver

While WTSrsquo mission is specific to the advancement of women we are a race-neutral organization To

this end we are also deeply concerned about the underutilization of minority owned firms There is

no equity or ldquofair playing fieldrdquo without equity for all gender and races We remained concerned with

the methodology required by the Code of Federal Regulations and case law because of the

dependence on the availability of firms in the calculation An unintended consequence of removing

either gender or race from the goal is that many of these firms would go out of business the

availability decreases and the formula then results in a smaller DBE goal This consequence is

contrary to our mission

We look forward to our continued participation in WSDOTrsquos DBE advisory group we are anticipating

notice that the 2016 waiver has been rescinded and how we can work together to continue

advancing minority and women-owned firms in the transportation field

Sincerely

WTS Puget Sound Chapter

Stephanie Forman

President

C Roger Millar Secretary WSDOT

C Representative Adam Smith 9th Congressional District Washington co Christine Nhan

WTS Puget Sound Chapter

PO Box 3461

Bellevue Washington 98009

From Dave Gent - WAPATo Bayne JackieCc Tom GaetzSubject WAPA Public Comments - RE WSDOT FHWA Disadvantaged Business Enterprise Proposed GoalDate Friday December 15 2017 14119 PMAttachments 12152017 DBE Proposed Goal - WAPA Public Comments Letterpdf

Good afternoon Jackie Please find attached WAPArsquos ldquofor the public recordrdquo comments with respect to WSDOTrsquos proposedDBE Goals FHWA funded work I assume that the Master DBE Directory was not sent to you this week so as a result we were notable to review the directory before the close of the public comment period That fact is noted withinour comment letter Thank you for your efforts Have a good weekend

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Friday December 8 2017 1219 PMTo Dave Gent - WAPA ltdavegentasphaltwacomgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hello Dave WSDOT did not take possession of this directory as part of our review process We will provide youwith the records without submitting a formal request However we need to get them from theconsultant first I will hopefully have them to provide next week I will keep you updated on therequest Have a nice weekend Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal Opportunity

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

December 15 2017

Jackie Bayne Policy Manager WSDOT Office of Equal Opportunity Delivered via e-mail to BayneJwsdotwagov RE Public Comment (as requested) to Proposed Overall DBE Goal for the FHWA (2018 ndash 2020) Ms Bayne Thank you for your presentation via webinar on December 5 2017 outlining WSDOTrsquos evaluation process used to determine the proposed overall DBE goal for the FHWA Thank you also for the Colette Holt amp Associates (CHA) DBE Advisory Group presentation made on September 14 2017 Both presentations helped to distill the findings of the 2017 Disparity Study produced by CHA In response to Earl Keyrsquos initial informal request to comment on the proposed overall DBE goal made during the DBE Advisory Committee teleconference held on October 12th we provided a list of reasons that we believe justify a lower DBE goal than is now being proposed Our initial response to Mr Keyrsquos request did not serve to influence WSDOT and the current proposed goal remains at 190 The arguments provided on October 12th against the significant increase in the proposed DBE goal (versus the previous goal and recent historic DBE participation) are repeated and supplemented below and will serve as the Asphalt Pavement Associationrsquos (WAPArsquos) official public comments

In concert with WSDOT and the OWMBE WAPA and the construction firms that WAPA represents have demonstrated a commitment to the principals of equal opportunity for all ldquoready willing and ablerdquo firms for the entire history that our DBE program has been in place WAPA has continuously demonstrated its commitment to the goals of the DBE program and for increasing the representation of disadvantaged groups within our industry as both workers and owners of firms Please recognize that WAPArsquos oversight and critique of the DBE program has always attempted to balance the principals of fair and open competition with the practical aspects of the low bid compressed schedule high performance standards demanded within the WSDOT marketplace Our comments below are meant to enhance WSDOTrsquos and OWMBErsquos understanding of the market and to hopefully have WSDOT fully consider all of the dynamics that are at play when proposing its Triennial DBE goal for FHWA projects Current DBE Capacity vs Historically Robust Market In advocating for a realistic and defensible DBE goal it has always been WAPArsquos position that it is paramount that the realities of the marketplace and true certified DBE subcontracting capacity should be a primary standard While a ldquostretchrdquo goal may appear to be progressive on its face it comes with consequences for all of the parties involved in the WSDOT federal aid contracting arena To balance the dynamics of the WSDOT contracting system the DBE goal should be tempered with the realities of the market and with a true measure of the underlying effectiveness of the DBE support services available to contractors

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 2 of 6 The first point of fact that has not been given any apparent consideration by WSDOT in its evaluation of the current capacity of certified DBErsquos is that there is an historically robust workload scheduled to be performed in the 2017 through 2022 time-frame particularly in the Puget Sound ldquoEverett to Olympiardquo corridor By WSDOTrsquos own estimates (see Attachment A) public works construction project starts in the 2018 to 2022 time-frame in this region will exceed $333 billion (B) counting the work projected from just five public entities WSDOT will be taking a decidedly ldquoback seatrdquo role during this period to Sound Transit which will have construction project starts of $226B vs WSDOTrsquos projected volume of $67B WSDOTrsquos summary publication titled Washington State Department of Transportations Proposed Federal Highway Administration Triennium Disadvantaged Business Enterprise Goal Federal Fiscal Years 2018-2020 states correctly that ldquoIncluded among the types of evidence that must be considered are the current capacity of DBEs to perform work on WSDOTrsquos federally-assisted contracts as measured by the volume of work DBEs have performed in recent yearshelliprdquo (Step Two Adjustment discussion) With the Sound Transit program being over 300 larger than the total WSDOT program in this region a sober assessment of true certified DBE capacity in the next three years needs to be considered by WSDOT If the huge construction boom over the next five years does not prompt a Step Two Adjustment then it becomes obvious that the realities of the market are being ignored by WSDOT for DBE goal setting Put another way if the 2018 through 2022 level of contracting activity does not warrant a goal adjustment what will DBE Access Barriers Not Yet Addressed The CHA 2017 Disparity Study points out multiple recommendations in Section VII that impact DBE participation and access to the market Assessments relating to those impacts and the state of maturity in addressing the CHA recommendations should be considered when assessing the DBE goal Many of the CHA recommendation have not been adequately addressed at this point in time Some of the prime examples are listed below Increase Certification and Expertise ndash The Disparity Study as explained to us includes all minority- (MBE)

and women-owned (WBE) firms that could be readily identified that perform work within Washington State and that perform work within the NAICS code framework CHA developed to cover WSDOT project work During the various presentations relating to the Disparity Study WSDOT representatives said that outreach to currently non-certified MBE amp WBE firms has increased and that WSDOT aspires to bolster its list of certified firms in the future but this effort is just beginning and the success of the effort needs to be means tested against the broader population of MBE amp WBE firms included in the CHA base line evaluation As the Disparity Study uses a much broader population of MBE WBE contractors to arrive at its conclusions (both non-certified firms and firms too large for certification) it follows that the calculated DBE proposed goal is overstated to include capacity that does not currently exist within WSDOTrsquos certified DBE framework Unless OMWBE is experiencing sudden and unprecedented success in recruiting new MBEWBE firms the DBE goal should be adjusted downward to recognize that the ldquoready willing and ablerdquo contractors that WSDOT has certified is only a subset of the total MBEWBE contracting population used in the Disparity Study evaluation

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 3 of 6

Until the promised WSDOT outreach registration efforts result in a substantial increase in available certified DBE firms it is premature to count the entire population of minority- and women-owned contractors as available to participate in WSDOT contracting It is unreasonable for WSDOT to project availability capacity using the entire MBEWBE population when only its currently truncated list of certified firms is acceptable to count toward the DBE goal

A corollary to the Increase Certification and Expertise discussion above is that the calculation of the Base Figure evidently includes the broadest practical population of MBE and WBE firms identifiable (without a review of the CHA Master DBE Directory which has not been supplied prior to the close of the public comment period the scope of the directory cannot be ascertained) If this directory includes a large population of MBEWBE firms that are not certified or are too large to be certified then the Base Figure calculation should be adjusted to reflect that certified DBE firms are a fraction of the total MBEWBE firms used to arrive at the 19 suggested DBE goal With respect to the CHA Master Directory it is our understanding the WSDOT was not given the directory as part of its evaluation of the Disparity Study and it follows that it did not evaluate the proposed DBE goal in the context of the CHA Master DBE Directory In our opinion an informed decision on adjusting the CHA baseline goal calculation can only be done after an extensive evaluation of the CHA Master DBE Directory If this has not been done WSDOT has not exercised due diligence in evaluating the context and underpinnings of the CHA Disparity Study and a certified DBE Triennium goal proposal to the FHWA is premature Increase Contract ldquoUnbundlingrdquo ndash If this proposed strategy (suggested by the CHA Study) is undertaken

certified DBE Subcontractors currently available will be engaged as Prime Contractors and the value of their prime contracts will bolster the overall percentage of certified DBE contracting but a systematic effort and strategy to ldquounbundlerdquo has not been articulated by WSDOT The key question of how this effort can be accomplished without increased cost to the taxpayers and increased inconvenience for the traveling public As noted in the CHA study (page 129 final paragraph) ldquoUnbundling must be conducted however within the constraints of the need to ensure efficiency and limit cost to the taxpayersrdquo As of this writing no overarching strategy for further unbundling with proper accountability has been articulated by WSDOT to the DBE Advisory Group

Review Insurance and Experience Requirements ndash Impediments to certified DBE participation due to

necessary insurance and experience standards cannot be solved by the prime contracting community Unless and until WSDOT puts together programs to address the burden of the substantial risks shouldered by Prime Contractors on WSDOT contracts barriers for streamlined utilization of certified DBE firms will continue to exist These market driven barriers will continue to dampen the availability of certified DBE Subcontractors that are able to perform within WSDOTrsquos strict criteria without unduly transferring risk to the Prime Contractor

Better Partnering to Overcome DBE Failures to Perform ndash Prime Contractors are held fully responsible to maintain the project schedule and are subject to project liquidated damages even when they may be struggling to deal with Subcontractor performance issues It is well-established that replacing a certified ldquocondition of awardrdquo (COA) DBE Subcontractor is very onerous and likely very costly to the Prime Contractor Unfortunately the imposition of strict and often counter-productive commercially useful function (CUF) rules often compound this issue as Prime Contractors cannot help COA DBE Subcontractors work through capacity expertise or time-related issues that impact timely performance

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 4 of 6

WSDOT needs to be a much better partner in the process of dealing with under-performing or non-performing certified DBE Subcontractors The current standard operational procedure places all of the exposure for non-performance onto the Prime WSDOT does not have an equitable system to account for non-performing or under-performing certified DBE Subcontractors hired as a condition of award (COA)

Performance Information and Training ndash Commercially useful function rules (CUF) and the lack of clear benchmark definitions for good faith effort (GFE) standards remain barriers for improving accountability within the DBE system and in turn lead to distorted DBE participation rates These items remain amorphous due to lack of training or lack of historic information Chronic uncertainty exists regarding both of these items Until WSDOT changes and improves its approach to provide transparency and certainty for both the prime bidding amp subcontracting parties true certified DBE capacity will continue to be masked and the resultant higher subcontracting costs associated with a distorted marketplace will continue to be hidden

WAPA respectfully suggests that simply adding an ldquoEstimated DBE Subcontract Premiumrdquo line to the current DBE bid forms would help to establish benchmarks that could begin to be used to ldquomeans testrdquo good faith efforts If this information had been gathered over the last 20 years of the DBE program meaningful GFE standards could have been developed and could be in place today

An in-depth review of CUF standards would also provide clarity For instance it is unclear why force account items performed by certified DBEs are currently counted at only 50 of the value of the work How was this benchmark established Has it been reviewed since imposed Did it ldquosolverdquo whatever inequity WSDOT was trying to address Better clarity may lead to more expanded opportunities for certified DBE Subcontractors

Enhanced Supportive Services and Business Development Programs ndash Unless and until stronger programs of these types are shown to be effective in boosting certified DBE business development increased DBE participation due to stronger business acumen should not be relied upon when setting the new DBE goal

Does OMWBE have a reasonable expectation that future plans for enhanced and expanded programs will be more successful than those employed in the past Assuming that certified DBE Subcontractors will be better prepared to deal with the WSDOT contracting environment than in the past should not be relied upon to boost DBE participation goals Especially troubling were the multiple references within the CHA report highlighting that DBEs believe that the staff at OMWBE lack a deep knowledge about the highway construction industry (eg Study page 129 2nd paragraph) Does OMWBE have a path forward that will address this issue and thus improve supportive services impacts

Develop a Bonding and Financing Program for SBEs ndash This is completely outside of the prime contracting

communityrsquos scope of influence WSDOT must find a way to institute changes that both protect the taxpayer and help increase certified DBE bonding capacity and access to financing ndash very large hurtles To assume that these hurtles can effectively be overcome within the 2018 ndash 2020 time frame when they have been chromic issues for the past 20 plus years of DBE program development is not rational

A helpful innovation would be for WSDOT to underwrite performance and payment bonds for certified DBE firms or to create promote a system that helps certified DBE firms obtain private bonding Bridging the gap to address capital access and performance risks (bonding) must be championed by WSDOT

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 5 of 6

Base Figure Adjustment to Address Available Subcontract Volume and DBE Prime Contracts It is a fact that mid- to large-sized MBEWBE firms that compete both as Prime Contractors and as Subcontractors are not eligible to be OMWBE certified DBEs Further the current amount of contract unbundling for greater DBE access to WSDOT prime contracting (see below) accounts for a very low dollar volume of prime contracts performed by certified DBEs Finally by specification (WSDOT standard specification 1-081) Prime Contractors are obligated to perform 30 of the total volume of the work (less specialty work) or stated another way a maximum of 70 of the dollar volume on WSDOT projects is typically available to award to subcontractors These market dynamics are NOT addressed in the Disparity Study A responsible DBE goal made absent of these facts should not be implemented A reasonable adjustment to the proposed 19 DBE goal is presented below

bull The percent of WSDOT prime contracts awarded to certified DBE firms is likely less than 5 by total WSDOT

contract volume Assuming this approximation is valid (likely very conservative) then the amount of WSDOT contract work available to certified DBE firms via subcontracting should be adjusted to account for the factors outlined above The Base Figure (19) should be adjusted to recognize that a 70 maximum subcontractor participation is available (in the numerator) and to account for the assumed 5 certified DBE prime contracts in the denominator Reasonable Base Figure Adjustment 19 (proposed) x 70 subcontracts available divide 95 of Non-Certified DBEs as Prime Contract Volume = 190 x 0737 = 140 adjusted goal This is an adjustment based on the practical dynamics of the WSDOT contracting system and it represents a more realistic look at the true subcontract volume that is available for Prime Contractors to award to certified DBE firms

Conclusions

Until the items listed above are addressed and in place it is not reasonable to believe that DBE goals can be increased by nearly 163 (from 117 to 190) When the projected robust public works contracting market is appropriately considered the true availability of certified DBE Subcontractors for WSDOT contracts will be truncated due to demand across all public works sectors With multiple strong public works programs competing for a limited population of certified DBEs the ability to meet increased WSDOT DBE goals will be severely challenged Without very clear concise and transparent good faith effort rules the ability to address DBE goals that greatly overestimate true near term certified DBE capacity will result in non-attainment bid day chaos failures to perform andor rapidly increased pricing

The clear conclusion is that at this point in time under the current circumstances without effectively instituted new programs rules procedures that could enhance the certified DBE programrsquos overall effectiveness we believe that the DBE goal should remain at or near 12 As OMWBE documents and demonstrates its future successes in improving access and eliminating capacity barriers only then should the DBE goal be re-evaluated and increased

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 6 of 6

In closing please remember that it is rare that the contracting community is asked our opinion with respect to the WSDOTrsquos DBE policies and so this letter is somewhat a vehicle to highlight collective concerns It is our belief that the majority of the Prime Contractors in Washington state support the objective of creating a level playing field for ready willing and able DBEs

If the level playing field is not yet possible in the absence of the DBE program then the key is to set realistic goals that recognize reflect and address the hard realities and market dynamics imposed by WSDOTrsquos bedrock environment of awarding contracts to the lowest cost responsible and responsive Contractor

Respectfully submitted Washington Asphalt Pavement Association

David Gent Tom Gaetz Executive Director Senior Advisor

Attachment A ndash WSDOT Central Puget Sound Public Works Contracting Projection 2018 - 2022

Con

stru

ctio

n Pr

ojec

t Sta

rts

2018

-202

2S

ound

Tra

nsit

$22

6 B

SD

OT

$08

B

Tran

sit

amp O

ther

s$1

7 B

WS

DO

T$6

7 B

Por

t of

Sea

ttle

$15

B

TOTA

L$3

33

B

Source N

ov 1

9 2

017

pres

enta

tion

to W

APA

Ann

ual M

eetin

g

Attachment A

Work (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Dave Gent - WAPA [mailtodavegentasphaltwacom] Sent Thursday December 7 2017 144 PMTo Bayne Jackie ltBayneJwsdotwagovgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hi again Jackie Irsquom fine thanks and hope you are the same Interesting The Master DBE Directory is the basis for and integral to the conclusions of the DisparityStudy Is it not then part of the information needed to fully review and comment on the DisparityStudy Was it not provided by CHA to WSDOT for review We are trying to fully understand thestudy and if this directory was part of the study why would it need to be obtained by a publicrecords disclosure It should be in the public domain and not restricted from ease of access If you are sure that a public records request is needed Irsquoll start that process but we will need tonote that point of fact when we submit our public comments If you are able to reconsider please let me know Respectfully

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Thursday December 7 2017 126 PMTo Dave Gent - WAPA ltdavegentasphaltwacomgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hello Dave I hope you are doing well

That information would likely be obtained through a public disclosure request Best Regards Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Dave Gent - WAPA [mailtodavegentasphaltwacom] Sent Thursday December 7 2017 113 PMTo Bayne Jackie ltBayneJwsdotwagovgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Jackie Can you please provide an electronic file or provide a weblink for the Master DBE Directory thatColette Holt amp Associates developed for the WSDOT Disparity Study 2017 (first referred to on Page 8of the Disparity Study) I did not see a link to this Master DBE Directory within the study Thanks

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Friday October 27 2017 1118 AMTo Kenyon Wendy ltKenyonWwsdotwagovgt Adams E W ltewadamssystemsclcomgtAdekoyaAndrew ltandrewadekoyabccomgt AlyssaBalllegwagov Anindita Mitraltamitracrea-affiliatescomgt APRISeattlehotmailcom Armstrong CharlotteltCharlieAatgwagovgt Ato Apiafi Architects PLLC ltatoaatoapiaficomgt benzfanwaorgBerntsen Teresa (OMWBE) ltTeresaBomwbewagovgt Billingsley Andrealtbillinawsdotwagovgt Bramlet Erica ltEricaBramletlegwagovgt Brooks Julius

ltBrooksJwsdotwagovgt Brown Jason ltjbrownldccorpcomgt bwallacenwlaborersorgCamden Allison ltCamdenAwsdotwagovgt carlllivingstongmailcom Cerda OscarltCerdaOwsdotwagovgt Christopher Chris ltChristCwsdotwagovgt ckerneycaawagovdanplatinumbusinessgroupcom davegentasphaltwacom David BalltDavidsignsnowmillcreekcomgt Davis Khalia ltDavisKhwsdotwagovgt Davis RaShelle (GOVltrashelledavisgovwagovgt Dayton Jo ltDaytonJwsdotwagovgt ddhondtagcwacomDebbieDriverlegwagov Dennis ltdennisahlkiewitcomgt dmcleodnwlaborersorgdrart6651gmailcom Duncan Enid lthigradeincgmailcomgt EltonltEltonwashingtonstatetruckingcomgt eprincecaawagov flemosldccorpcomfmartineznwmtnmsdcorg geoffshookatkncom glovelady ltgloveladyexcelglovescomgtGrabow Katie ltkgrabowsystemsclcomgt Guilfucci Jackie ltJackieGuilfucciskanskacomgt HealyLinda ltHealyLwsdotwagovgt Higginbotham Breanne ltHigginBwsdotwagovgt HirscheyClaudia ltclaudiahirscheycomcastnetgt Holt Colette ltcoletteholtmwbelawcomgt Huff JohnltHuffJwsdotwagovgt Iniguezchawagov JacksonMaynardlegwagov Jimmy Matta(jmattaalcantarassoccom) ltjmattaalcantarassoccomgt kellywickergovwagov Key EarlltKeyEwsdotwagovgt Kirk Jon ltjkirkwhhnfscomgt Kris Purrier ltkpurrierhwageocomgtleewabuildingtradesorg lesliejonessoundtransitorg Liz Evans ltlevansagcwacomgt LopezErin lterinlopezdeswagovgt Martha Cerna ltMarthaPSLCCORGgt Martin-Arnold EdwinaltMartinEwsdotwagovgt Mary Lerdahl ltmarydbeelectricinccomgt McCarty Hannahlthannahmccartylegwagovgt Melissa L Boyles ltmelissaboylesmwbelawcomgt Metcalf KeithltMetcalKwsdotwagovgt michaelicapaawagov Michelle ltMichelleTTCC26netgt MillarRoger ltMillarRwsdotwagovgt Nakamura Jason ltjasonnakamura1-alliancecomgtNavarroLportseattleorg olliepmt-solutionscom pastorbanksesbctacomacom PatrickHughes ltphugheshughesgroupbizgt Petersen Jodi (FHWA) ltJodiPetersendotgovgtrabbottliunaorg rcarmsteadgmailcom ricemportseattleorg Riley D ltdrileylydigcomgtSeling ltSelingjpfranciscomgt sherryharrisergosynchcom Stell MellodyltStellMwsdotwagovgt terigobintulaliptribes-nsngov timwilliamfactorycom tinaterra-tdicom tkellyldccorpcom tomgaetzmsncom vcollinsacec-waorgverlenejazzmsncom Wang Albert ltWangAatgwagovgt Waugh GregltGregWMaxKuneyComgt Yates Henry ltYatesHWSDOTWAGOVgtCc Tom Gaetz lttomgaetzmsncomgt Dave Gent - WAPA ltdavegentasphaltwacomgt VanCollins ltvcollinsacec-waorggt Daniel Seydel II ltdanplatinumbusinessgroupcomgt MaynardJackson ltJacksonMaynardlegwagovgt Carl Livingston ltcarlllivingstongmailcomgt DonMcLeod ltdmcleodnwlaborersorggt JIMMY MATTA ltjimmymattamsncomgt Prince Ed(CAAA) lteprincecaawagovgt David DHondt ltddhondtagcwacomgt Irene Reyesltgloveladyexcelsupplycompanycomgt McDaniel Craig ltMcDaniCwsdotwagovgtsherryharrisergosynchcomSubject WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Good morning On Monday October 30th WSDOT will be releasing the proposed overall Federal HighwayAdministration Disadvantaged Business Enterprise goal attached for public comment throughDecember 15 2017 This overall DBE goal is based upon the recently completely DBE ProgramDisparity Study WSDOT is proposing a 19 percent overall DBE participation goal on Federal Highway

Administration-funded projects for federal fiscal years 2018 through 2020 DBE goals fortransportation projects that receive federal funds represent a percentage of the value of work inwhich minority- and women-owned businesses should participate Once finalized and submitted toFHWA early next year the goal will be effective through Sept 30 2020

The purpose of the DBE program is to create a level playing field for firms owned and operated bydisadvantaged individuals wanting to participate in federally assisted highway transit and aviationprograms The attached overall DBE goal is for FHWA funded projects WSDOT will be updating theFTA and FAA overall DBE goals in the near future

If you have any questions please contact Earl Key Director of the Office of Equal Opportunity at3607057091 or KeyEwsdotwagov Thank you Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

  • Proof-Of-Publicationpdf
    • Mediapdf
      • AGC
      • Daily Journal
      • Daily Medium
      • DBEGood
      • OMWBE
      • Seattle Medium
      • Tabor 100
      • The Chronicle
      • Tukwila
        • King County
          • Public-Comments-20180111pdf
            • 19 DBE Requirement(1)
            • AGC Comments on Proposed 10 Goad
            • Backstrom Curb amp Sidewalk
            • comments on WSDOT proposed DBE goal
            • Cowlitz County Public Works
            • DBE Contracting goals
            • DBE Goal
            • DBE Program Disparity Study
            • Disparity Study Comments from City of Spokane
            • FW_ WSDOT News - WSDOT seeks comments on propos
            • Proposed DBE Goals
            • RE_ DBE Contracting Goal Comments
            • Re_ DBE Goal Comments
            • Re_ Seydel Dan - WSDOT Disparity Study Present
            • Support for WSDOTs proposed DBE goal
            • Why we need mandatory goals
            • WSDOT DBE Goal - Comment in support
            • WSDOT Proposes DBE goal of 19
            • WSDOT propsed DBE Goals
            • WTS - Disparity Study Comment Letter

Page 5

WSDOT has implemented the Fraud Hotline to report fraud and abuse in the DBE Program The Fraud Hotline is available at (877) 856-3770 or fraudhotlinewsdotwagov

Prompt Payment

WSDOT continues to enforce its prompt payment provisions and processes It impresses upon its personnel and prime contractors the necessity and importance of meeting these requirements This is accomplished via WSDOT sponsored training for internal staff as well as external contractors which includes a portion on prompt payment

Emerging Contractor Support Initiatives

WSDOT recognizes the necessity of developing new and innovative race-neutral contractor support services and has begun implementing new programs and resources (eg Mentor Proteacutegeacute Program Minority Small Veteran and Womenrsquos Business Enterprise Program remodeled DBE Support Services Program etc) This process involved examining other states supportive services strategies as well as working with construction and minority and women business organizations It also includes soliciting input from the DBE Work Group and from construction and DBE organizations in this and other states

Counting race-neutral and race-conscious participation

Based on a 2012 Disparity Study WSDOT sought and received a waiver of the regulation that White females as a group are presumptively disadvantaged Under the terms of the waiver dollars paid to DBEs owned by such persons are not eligible for credit towards meeting DBE contract goals and WSDOT will count and report FHWA dollars to these firms as race-neutral participation

The 2017 Disparity Study found that White females do not enjoy a level playing field for USDOT- assisted contracts and recommended that firms owned by such persons should be returned to the status of goal credit eligibility WSDOT has sought a rescission of the waiver and awaits USDOTrsquos response Until such time as the waiver is rescinded WSDOT will count all participation by certified DBEs owned by White females as race-neutral participation

Public Participation

Consultation Per 49 CFR sect 2645 WSDOT employs a consultative process requesting input from organizations serving or representing DBEs minority-owned or women-owned businesses state or local offices of procurement federal state or local offices responsible for enforcing civil rights laws local labor offices and organizations etc WSDOT developed the proposed overall annual DBE goal and presents it to the DBE Work Group (individuals from various WSDOT divisions and offices and other state agencies) including

WSDOT Highways and Local Programs Division WSDOT Construction Office Washington State Attorney Generals Office WSDOT Ad amp Award Office WSDOT Public Transportation Division WSDOT Secretary of Transportation WSDOT Consulting Services Office WSDOT Aviation Division

Page 6

Washington State Ferries Washington State Office of Minority amp Womens Business Enterprises

Once the DBE Work Group reviewed and provided comments the overall DBE goal was revised accordingly

Upon DBE Work Group review the goal was then reviewed by the DBE Advisory Group comprised of minority women and trade organizations including but not limited to

Tabor 100 National Association of Minority Contractors Latino Civil Alliance American Council of Engineering Companies of Washington Laborers Local 440 Street Pavers Sewer Watermain and Tunnel Workers Washington Association of General Contractors Washington Asphalt Pavement Association Northwest Mountain Minority Supplier Diversity

Council Tribal Employment Rights Office Womens Transportation Seminar Washington Asphalt Pavement Association Women in Highway Construction

WSDOT followed the public participation requirements outlined in 49 CFR Part 26 This public participation process also included the publication of a press release on October 30 2017 requesting public comment for 45 days This publication also notified interested parties of public meetings to gain and understanding of the overall DBE goal at the following locations

Spokane November 28 Vancouver November 29 Webinar December 5 North Seattle December 7 Pasco December 131

The comments provided by these groups were taken into consideration and no quantitative evidence relevant to the determination of availability or utilization was submitted to revise the overall DBE goal

Published Notice To satisfy the public consultation requirements of 49 CFR sect 2645(d)(2) WSDOT will provided a press release to all media outlets in Washington State and publish the proposed overall annual DBE goal for the triennium in the Seattle Daily Journal of Commerce Included in its press release and publication is WSDOTs request for public comment and inspection of the goal methodology for 45 days from the date of publication

1 The December 13 Public Meeting was added with a separate press release to ensure sufficient statewide notice regarding the Proposed Overall DBE Goal

Page 7

Summary Pursuant to the requirements of 49 CFR sect 2645(a)(2) WSDOT submits this proposed triennium DBE Goal to FHWA for review and approval WSDOT followed the requirements of 49 CFR sect2645 in completing this FHWA DBE goal along with the OSDBU Guidance This proposed DBE Goal of 190 is based upon the availability of ready willing and able DBEs as established by the Disparity Study WSDOT anticipates race-neutral participation of 22 and race-conscious participation of 168

V i s i o n V o i c e V a l u e

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(httpwwwlinkedincomcompanyagc-of-washington)1200 Westlake Avenue N Suite 301 Seattle Washington 98109 Phone 2062840061 | Fax 2062854546 Privacy Policy (about-usprivacy-policy) | AGC of America Website (httpswwwagcorg)

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WSDOT proposes 19 DBE goal on FHA-funded projectsWSDOT is proposing a 19 percent overall DBE participation goal on Federal Highway Administration-funded projects for federal fiscal years 2018 through 2020 WSDOT will submit the proposal to FHWA early next year following a public comment period Once submitted to FHWA the goal will be effective through Sept 30 2020 (See info on public meetings below)

AGC is reviewing the proposal and considering its response AGC members are encouraged to send comments to AGC Chief Lobbyist Jerry VanderWood(mailtojvanderwoodagcwacom) 3603525000

WSDOT said the 19 goal is based upon the availability of ready willing and able DBEs as established by the WSDOT Disparity Study (See summary of the 2017 disparity study here (httpwwwwsdotwagovsitesdefaultfiles20160509WSDOTDisparityStudyPresentation2017pdf) see full study report here(httpwwwwsdotwagovsitesdefaultfiles20170911OEO-DisparityStudy-2017pdf))

In its report study authors Collete Holt and Associates concluded ldquoThese results provide the agency with the evidence necessary to narrowly tailor its DBE program for federal-aid contracts as required by 49 CFR Part 26 The statistical data and the anecdotal testimony provide a sufficient basis for the continued use of narrowly tailored remedial race- and gender-conscious measures to ensure full and fair access by all firms to WSDOT federally-funded prime contracting and associated subcontracting opportunitiesrdquo

WSDOT will host a series of public meetings to provide opportunities for individuals to comment in person

Spokane 2 ndash 4 pm Tuesday Nov 28 (WSDOT Eastern Region Headquarters 2714 N Mayfair St)

Vancouver 2 ndash 4 pm Wednesday Nov 29 (WSDOT Vancouver Headquarters 11018 NE 51st Circle)

Seattle 2 ndash 4 pm Thursday Dec 7 (WSDOT Northwest Region Headquarters 15700 Dayton Ave N Shoreline)

Those who are unable to attend one of the meetings can participate in a no-cost webinar from 230 ndash 430 pm on Tuesday Dec 5 Advance registration for the webinar is required Those interested in participating should email DisparityStudywsdotwagov (adminDisparityStudywsdotwagov)

Written comments can also be submitted by mail or email to Jackie Bayne Policy amp Reporting Manager Washington State Department of Transportation Office of Equal Opportunity PO Box 47314 Olympia WA 98504-7314 or to DisparityStudywsdotwagov (adminDisparityStudywsdotwagov20)

WSDOT will consider all written comments received through Friday Dec 15 2017

Documents detailing the methodology used for determining the FHWA DBE goals are available at wwwwsdotwagovequalopportunity(httpwwwwsdotwagovequalopportunity) or in person at the Transportation Building 310 Maple Park Ave SE in Olympia

Page 1 of 1WSDOT proposes 19 DBE goal on FHA-funded projects - AGC of Washington

1112018httpwwwagcwacompostswsdot-proposes-19-dbe-goal-on-fha-funded-projects

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October 31 2017

WSDOT proposes new DBE goalsBy JOURNAL STAFF

OLYMPIA mdash The Washington State Department of Transportation is proposing a 19 percent overall DBE participation goal on Federal Highway Administration-funded projects for federal fiscal years 2018 through 2020

WSDOT plans to submit the goals early next year and is seeking comments through Dec 15

To read this story in full or purchase a login subscription

HOME MyDJC BUSINESS CONSTRUCTION REAL ESTATE ARCHITECTURE amp ENGINEERING ENVIRONMENT TECH WEEKEND FEATURES SEATTLESCAPE

Page 1 of 2Seattle DJCcom local business news and data - Construction - WSDOT proposes new D

1112018httpwwwdjccomnewsco12105680html

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()

WSDOT seeks comments on proposed DBE contracting goal for highway projects - Seattle MtgWSDOT seeks comments on proposed DBE contracting goal for highway projects

Comments accepted through Dec 15

OLYMPIA ndash Contractors trade and labor organizations small and disadvantaged businesses and all others who may be interested in working with the Washington State Department of Transportation are invited to comment on the agencyrsquos proposed Disadvantaged Business Enterprise goal for Federal Highway Administration contracts

DBE goals for transportation projects that receive federal funds represent a percentage of the value of work in which minority- and women-owned businesses should participate WSDOT is proposing a 19 percent overall DBE participation goal on Federal Highway Administration-funded projects for federal fiscal years 2018 through 2020

Once submitted to FHWA early next year the goal will be effective through Sept 30 2020

The purpose of the DBE program is to create a level playing field for firms owned and operated by disadvantaged individuals wanting to participate in federally assisted highway transit and aviation programs

Connecting with communities WSDOT will host a series of public meetings to provide opportunities for individuals to comment in person

Spokane meeting was held Nov 28

Vancouver meeting was held Nov 29

Seattle

2 ndash 4 pm Thursday Dec 7WSDOT Northwest Region Headquarters15700 Dayton Ave N Shoreline

Page 1 of 3WSDOT seeks comments on proposed DBE contracting goal for highway projects - Seattl

1112018httpwwwomwbewagovabouteventswsdot-seeks-comments-proposed-dbe-contracting

Date Thursday December 7 2017 - 200pm to 400pm

Other ways to provide comment Those who are unable to attend one of the meetings can participate in a no-cost webinar from 230 ndash 430 pm Tuesday Dec 5 Registration for the webinar is required Those interested in participating should email DisparityStudywsdotwagov (mailtoDisparityStudywsdotwagov)

Written comments can also be submitted by mail or email Jackie Bayne Policy amp Reporting Manager Washington State Department of Transportation Office of Equal Opportunity PO Box 47314 Olympia WA 98504-7314 DisparityStudywsdotwagov(mailtoDisparityStudywsdotwagov)

Documents detailing the methodology used for determining the FHWA DBE goals are available for review at all WSDOT region headquarters offices and at the Transportation Building 310 Maple Park Ave SE Olympia They are also available online at wwwwsdotwagovequalopportunity (httpwwwwsdotwagovequalopportunity)

WSDOT will consider all written comments received through Friday Dec 15 2017

WSDOT keeps people businesses and the economy moving by operating and improving the states transportation systems To learn more about what were doing go to wwwwsdotwagovnews (httpwwwwsdotwagovnews) for pictures videos news and blogs Real time traffic information is available at wwwwsdotcomtraffic(httpwwwwsdotcomtraffic) or by dialing 511

Americans with Disabilities Act (ADA) Information Accommodation requests for people with disabilities can be made by contacting the WSDOT DiversityADA Affairs team at wsdotadawsdotwagov (mailtowsdotadawsdotwagov) or by calling toll-free 855-362-4ADA (4232) Persons who are deaf or hard of hearing may make a request by calling the Washington State Relay at 711

Title VI Statement to Public It is WSDOTrsquos policy to assure that no person shall on the grounds of race color national origin or sex as provided by Title VI of the Civil Rights Act of 1964 be excluded from participation in be denied the benefits of or be otherwise discriminated against under any of its federally funded programs and activities Any person who believes his or her Title VI protection has been violated may file a complaint with WSDOTrsquos Office of Equal Opportunity For additional information regarding Title VI complaintprocedures andor information regarding our non-discrimination obligations please contactOEOrsquos Title VI Coordinator at 360-705-7090

Page 2 of 3WSDOT seeks comments on proposed DBE contracting goal for highway projects - Seattl

1112018httpwwwomwbewagovabouteventswsdot-seeks-comments-proposed-dbe-contracting

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89lt=gtABCDgtEF39=GHIJK1L0M1JLNO1L040K420PJLJLQ0K5R015JKNON70220K445N04S0K10Q4P6N5KNNN0K4022J1TLNUTJ70VP5K1LN145KUJLW5KQU51T1TX0NT5KQ1JK101YZ0L17K1J[CL0KNZJL1015JKXYgtC]0L5KS5141JMJ77K1JK1T0QKMVNZLJZJN4Y5N04S0K10Q4_6N5KNNK1LZL5NY_]QJ02[JL4L02a5QTU0VG475K5N1L015JKMJK1L0M1NbY_QJ02N[JL1L0KNZJL1015JKZLJcM1N1T01LM5S[4L02[6K4NLZLNK10ZLMK10QJ[1TS026J[UJLW5KUT5MT75KJL51Vd0K4UJ7KdJUK4P6N5KNNNNTJ624Z0L15M5Z01bXYgtC5NZLJZJN5KQ0efZLMK1JSL022Y_Z0L15M5Z015JKQJ02JK4L02a5QTU0VG475K5N1L015JKd[6K44ZLJcM1N[JL[4L02[5NM02V0LNghei1TLJ6QTghghbgtKMN6P751141JaXG0L2VKj1V0LO1TQJ02U522P[[M15S1TLJ6QTZ1bkhOghghbCTZ6LZJNJ[1TY_ZLJQL075N1JML0102S2Z20V5KQ[524[JL[5L7NJUK40K4JZL014PV45N04S0K10Q45K45S54602NU0K15KQ1JZ0L15M5Z015K[4L022V0NN5N14T5QTU0VO1L0KN510K40S5015JKZLJQL07NbXYgtCU522TJN10NL5NJ[Z6P25M715KQN1JZLJS54JZZJL16K515N[JL5K45S54602N1JMJ77K15KZLNJKlZJW0KOgHmZb7bJKC6NbOAJSbgi01XYgtC0N1LKQ5JKa04n60L1LNHgoemA30V[05L1bOZJW0Kplt0KMJ6SLOgHmZb7bX4NbOAJSbgf01XYgtClt0KMJ6SLa04n60L1LNHeeheiAqeN1I5LM2Olt0KMJ6SLp0112OgHmZb7bCT6LNbOYMbo01XYgtCAJL1TUN1Q5JKa04n60L1LNHeqohhY0V1JKGSbAOTJL25Kbrstuvwxyz|v|~u|usCTJNUTJ0L6K0P21J011K4JKJ[1T715KQNM0KZ0L15M5Z015K0KJdMJN1UP5K0L[LJ7glkhHmlkhZb7bC6N40VOYMbqbQ5N1L015JK[JL1TUP5K0L5NLn65L4bCTJN5K1LN145KZ0L15M5Z015KQNTJ6247052Y5NZ0L51V164VUN4J1bU0bQJSbXL511KMJ77K1NM0K02NJPN6P75114PV7052JL7052l0MW5_0VKO9J25MVZJL15KQ30K0QLOX0NT5KQ1JK101YZ0L17K1J[CL0KNZJL1015JKOgt[[5MJ[n602gtZZJL16K51VO9bgtb_JjmokemOgt2V7Z50OXGfiqhmdokemJL705241JY5NZ0L51V164VUN4J1bU0bQJSbYJM67K1N410525KQ1T71TJ4J2JQV6N4[JL41L75K5KQ1TaXGY_QJ02N0L0S0520P2[JLLS5U01022XYgtCLQ5JKT04n60L1LNJ[[5MN0K4011TCL0KNZJL1015JK_65245KQOkeh30Z290LWGSbOgt2V7Z50bCTV0L02NJ0S0520P2JK25K01UUUbUN4J1bU0bQJSn602JZZJL16K51VbXYgtCU522MJKN54L022UL511KMJ77K1NLM5S41TLJ6QTL540VOYMbeqOgheob iexclcentpound currenGPJ611TG61TJL G4SL15N7K1N

13

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AringEgraveAacuteEacuteAringcentAEligEcircEumlAcircCcedilIgraveEumlAacuteAacuteAgravecentfrac14frac12IacuteAacuteAgravefrac34AacuteIcircCcediliquestAEligiexclIumlAcircAacuteEumlETHEgraveNtildeOgraveOgraveEcircAacuteAEligIacuteiquestAEligfrac14AacuteAacuteyenAacuteiquestAEligCcedilAumliquestiquestAringiquestAacuteAEligAacuteiquestAEligAringAcircAacuteAtildeAringAtildeEcircAcircCcedilETHAtildeEcircAringiquestiquestAEligCcedilAtildeOacutefrac34Aacutefrac34CcedilAumliquestAEligCcedilAacute EacuteEacuteEacuteOcircOtildeEgraveOumlOcircOumlETHtimesIgravefrac12Agravefrac34AtildeiquestAEligfrac34iquestAtildeAgrave AringIgraveAacuteEgraveAringiquestEcircEumlAcircCcedilEgravefrac12CcediliquestAacute AacuteAgravefrac34AtildeiquestAEligEumliquestiquestAacutefrac34frac34frac34ETHCcedilAacuteAringAacuteiquestAEligCcedilAumlAringOslashCcediliquestAacuteOslashIgraveNtildeNtildeIgraveOgraveETHUgraveOgraveOgravefrac12AgraveAcirc AacuteAgraveCcedilAringiquestAacuteAumlAacuteEcirciquestAEligCcedil iquest 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iquestAumlcentAgraveiquestAEligCcedilAacuteAEligfrac14AacuteAacuteAacuteAringAEligAacute frac12AEligAacuteAacuteiquestAElig iquestAuml IumlAcircAacuteAcircAEligiquestAacuteEcircaumlRSaringPREcircAringiquestOWaeligccedilegraveeacuteNRecircSaringPRAringiquestaacute)LcopyXJeumldeg1ordf-raquodegraquolaquoreg

13

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httpwwwchronlinecomnewswsdot-seeks-public-comment-on-disadvantaged-business-enterprisearticle_f5c753ea-be61-11e7-966c-972f6769d8a6html

WSDOT Seeks Public Comment on Disadvantaged Business Enterprise By The Chronicle Oct 31 2017

The Washington State Department of Transportation will be accepting public comments about the departmentrsquos proposed Disadvantaged Business Enterprise goal for federal contracts

The goal is for transportation projects receiving Federal Highway Administration funds to have 19 percent of the value of work done by minority or women-owned businesses during the 2018 through 2020 fiscal years

ldquoThe purpose of the DBE program is to create a level playing field for firms owned and operated by disadvantaged individuals wanting to participate in federally assisted highway transit and aviation programsrdquo a press release from WSDOT said

A series of public meetings will be held to discuss the goal in Spokane Vancouver and Seattle

For those who are unable to attend the in person meetings a webinar will be hosted from 230 to 430 pm Thursday Dec 5 The webinar is free but registration is required To register email DisparityStudywsdotwagov

Page 1 of 2WSDOT Seeks Public Comment on Disadvantaged Business Enterprise | News | chronlin

1112018httpwwwchronlinecomnewswsdot-seeks-public-comment-on-disadvantaged-business-

Written comments can also be submitted by mail or email to Jackie Bayne policy and reporting manager for the department of transportation at Washington State Department of Transportation Office of Equal Opportunity PO Box 47314 Olympia 98504 or by email at disparitystudywsdotwagov Comments will be considered through Dec 17 2017

More information about the goal is available at all regional offices or at the main office in Olympia located at the Transportation Building 310 Maple Park Ave SE Olympia More information can also be found online at wsdotwagovequalopportunity

Page 2 of 2WSDOT Seeks Public Comment on Disadvantaged Business Enterprise | News | chronlin

1112018httpwwwchronlinecomnewswsdot-seeks-public-comment-on-disadvantaged-business-

larr Halfway there SR 8 fish barrier removal reaches milestone New SR 26 traffic cameras available rarr

WSDOT seeks comments on proposed DBE contracting goal for highway projects

December 1 2017 | No Comments

WSDOT is seeking comments on proposed participation goals for Disadvantaged Business Enterprises on upcoming Federal Highway Administration contracts a Yakima meeting has also been added to the schedule Source WSDOT Permalink WSDOT seeks comments on proposed DBE contracting goal for highway projects

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Page 1 of 3WSDOT seeks comments on proposed DBE contracting goal for highway projects | Tukw

1112018httptukwilatowingcom20171201wsdot-seeks-comments-on-proposed-dbe-contracting

From Liz EvansTo Bayne JackieSubject AGC Comments on Proposed 10 GoadDate Tuesday December 12 2017 50314 PMAttachments WSDOT Proposed Goal - AGC Comments FINALdocx

Hi there Jackie Attached are AGCrsquos comments on WSDOTs proposed 19 goal We will also be mailing you a copy Thanks for the opportunity to comment and we hope you find it helpful Regards Liz Liz Evans CAE Northern District ManagerAGC OF WASHINGTONTel 3602238757 | wwwagcwacom JOIN US for the 2018 AGC of Washington Annual Convention amp Technology Expo Jan 26

CUsersmwillmsPicturesInland AGCLogo_RGB_Half_5in

December 12 2017

Page 5

December 12 2017

VIA EMAIL amp US MAIL

Ms Jackie Bayne Policy amp Reporting Manager

Washington State Dept of Transportation

210 Maple Park Ave SE

PO Box 47314

Olympia WA 98504

RE WSDOT Proposed FHWA Triennium Disadvantaged Business Enterprise Goal

Dear Ms Bayne

This letter summarizes the views of the Associated General Contractors of Washington and Inland Northwest Associated General Contractorsrsquo (hereafter referred to collectively as AGC) regarding the Washington State Department of Transportationrsquos (WSDOT) recently proposed FHWA Triennium Disadvantaged Business Enterprise (DBE) Goal (the ldquoProposed Goalrdquo) AGC shares WSDOTrsquos commitment to continue the promotion of DBE firms but AGC is concerned the Proposed Goal which is a significant increase from the previous goal and actual utilization may have unintended consequences and could impose significant burdens on both prime contractors and DBE contractors alike AGC requests WSDOT reconsider its Proposed Goal and adjust the Proposed Goal to account for inevitable availability and capability issues including the lack of a formal retraction of the non-minority woman owned business waiver that makes up over half of the Proposed Goal Implementing an unachievable goal will only be to the detriment of the DBE program

1 AGCrsquos Membersrsquo Interest in WSDOTrsquos Proposed Goal

Together AGC of Washington and Inland Northwest AGC represent and serve the commercial industrial and highway construction industry These professional associations of commercial contractors are comprised of more than 900 members who have joined together to enhance the performance of their industry and build a better climate for construction operators many of which are small and closely held businesses

Like WSDOT AGC is firmly committed to the principals of equal opportunity and promoting efforts to ensure minority women and veteran owned businesses are properly represented In both its political advocacy and membership programs AGC has demonstrated its commitment to increasing the representation of disadvantaged groups in the construction industry as both workers and owners of firms For AGC this is both an issue of principles and a practical one The construction industry as a whole is facing a critical shortage of workers and it is imperative that the industry attract new participants Among AGCrsquos activities demonstrating this commitment are the following

middot AGC has an ongoing ldquoContractor Exchangerdquo program through which small minority- and women-owned subcontractors are offered one-on-one networking opportunities with established general contractors

middot The AGC Education Foundation provides financial support to construction-related programs in K-12 schools and conducts outreach specifically targeted at low income disadvantaged and female students

middot More than 2500 students most from inner-city schools participate in annual AGC-sponsored Construction Career Days in King Pierce and Spokane Counties

middot AGC supports the Pre-Apprenticeship Construction Training (PACT) program at Seattle Vocational Institute This program is focused on preparing underrepresented communities to be highly qualified applicants and successful apprentices in the construction trades

middot AGC is a sponsor of the Turner School a training course for minority- and women-business owners in the construction industry

middot AGC supports the National Association of Women in Construction (NAWIC) which provides professional development and other services to its members

middot AGC routinely supports legislative efforts aimed at supporting small businesses and encouraging small business participation

middot AGC recently formed a Diversity and Inclusion Committee comprised of both prime and DBE participants The purposed of the committee is to expand opportunities for DBE members and to help AGC consider diversity in decision-making Recently AGC approved a deeply discounted introductory dues structure for certified DBE members

middot AGC is a WSDOT partner on the new mentorproteacutegeacute program

AGCrsquos experience has been that the most effective approach is to help make emerging businesses successful through outreach training and public policies that will grow their capacitymdashnot by imposing mandates without clear evidence as to the mandates feasibility

2 WSDOTrsquos Proposed Goalrsquos Impacts To The Construction Industry

WSDOTrsquos Proposed Goal is 190 The Proposed Goal is based upon the recent Collete Holt amp Associates (CHA) Disparity Study released in 2017 With respect to availability the Disparity Study reports the following weighted availability for FHWA-Funded projects

Thus the 190 goal factors in Black Hispanic Asian Native American and White Women into its availability As indicated however this 19 goal raises a number of concerns

a WSDOTrsquos 19 Proposed Goal Represents a Significant Increase Without Concrete Evidence of Available And Capable DBE Firms

First WSDOTrsquos Proposal Goal of 190 represents a significant increase as compared to actual DBE participation (141 in 2014 117 in 2015 and 151 in 2016) as well as the last FHWA proposed goal of 116 for 2014-2018 See WSDOTrsquos Proposed Goal and Interim FHWA Overall DBE Goal Methodology FFY 2014-2018 The Proposed Goal is 74 more than the last goal which represents a 638 increase and a 52 increase over the average actual utilization for 2014-2016 While Contractors were exceeding the previous 116 goal this is primarily based on the fact that WSDOT previously requested a waiver to consider non-women-owned businesses and the waiver was not granted and effective until June 2017 (meaning that for 2014-2016 women were counted towards race-conscious goals and inevitably a higher overall percentage of DBE firms were utilized)

Contractors struggle to meet present DBE goals due to the relatively low availability of experienced and certified DBE firms By increasing the goal WSDOT is understandably trying to increase the participation of underrepresented firms Drastically increasing the goals (by over 5 of actual utilization) without concrete evidence that there is sufficient availability andor capability of such firms however will have the opposite effect Notably this lack of availability and capacity of DBE firms was discussed in detail in the Disparity Study For example the CHA Disparity Study notes a number of concerns of DBE firms while technically ldquoavailablerdquo with respect to the goal percentages are unable to meet the requirements necessary to fulfill the contract including purchasing the equipment necessary having available labor and ability to meet insurance and financing requirements Thus while there may be ldquoavailablerdquo firms there is not clear evidence (and if fact evidence to the contrary) that those available firms are capable and available to perform the majority of the FHWA-Funded contracts let by WSDOT

An additional example affecting DBE capability and availability that is not factored into the CHA Disparity Study or WSDOTrsquos Proposed GOAL is DBE ability to enter into Project Labor Agreements (ldquoPLAsrdquo) WSDOT has indicated their interest in pursuing a PLA AGC Members have raised concerns based on repeated experiences that many DBE firms due to the administrative and cost impacts refuse to enter into PLAs precluding those firms from performing certain work or increasing costs Again this lack of ability (or refusal) to perform should also be factored into WSDOTrsquos Proposed Goal which is not currently the case

b The Proposed Goal Does Not Account For The Current Non-Minority Woman Owned Business Waiver Still In Place

Second despite the significant increase WSDOT does not account for the current waiver of non-minority women owned businesses that remains in place As noted in WSDOTrsquos proposal comments WSDOT previously sought and received a waiver of the regulation that White females as a group are presumptively disadvantaged This waiver was heavily criticized by many including AGC and the results of the most recent CHA Disparity Study confirmed that White females are presumptively disadvantaged and do not enjoy a level playing field for USDOT-assisted contracts Therefore the CHA Disparity Study recommends that this group be returned to the status of goal credit eligibility WSDOT has sought a recession of the waiver but has not yet to our knowledge received a rescission of the waiver Nevertheless the 19 Proposed Goal still includes White women In fact of the 19 availability percentage White women represent 103 (over half) Accordingly for WSDOT to proceed with the 19 goal WSDOT must receive the rescission of the waiver for this goal to be even remotely possible to achieve If the rescission is not received the Proposed Goal must be adjusted

C The Proposed Goal Does Not Account For Availability Differences Across The State

Third the Proposed Goal does not account for availability difference across the state Eastern Washington contractors with an even scarcer pool of available and qualified DBE firms in the area as is the case now will be forced to subcontract to Western Washington firms paying transportation and per diem premiums for such work The CHA Disparity Study again provides numerous excerpts of anecdotal evidence demonstrating that the goals in Eastern Washington are too high A few of the contractor comments on the topic are as follows

When you apply those same goals to a different geographic region a different project site for a large firm to meet those goals is difficult because theres not necessarily the expertise in parts of the project that were submitting on

Theres very few DBEs over here [in Eastern Washington] Next year theres going to be even more work over here What are we going to do with all these goals We always meet the goals like I said youve got three four DBEs over here to do all the work and then they cant perform

There are just no [minority-owned] DBEs available in eastern Washington

See CHA Disparity Study at p 54 Again these are factors that should be taken into account in developing the Proposed Goal or at the very least its application WSDOTrsquos Proposed Goal however is silent as to this significant issue

When the lack of available firms with the capacity to perform significant DBE projects is coupled with the increased goals the price of WSDOT contracts will inevitably increase to the significant detriment of Washington taxpayers and the public entities Inevitably with a lack of available qualified firms the lack of competition will become evident and small qualifying contractorsrsquo prices will increase due to supply and demand principles as they become selected for projects and less able to take on additional work These increased DBE contract values will be passed on to the public agency and taxpayers which translates into fewer dollars available for the sorely needed and promised infrastructure upgrades In addition the instance of bid protests will inevitably increase potentially delaying projects and further diverting agency resources from badly needed infrastructure upgrades to resolving unnecessary disputes or rebidding the projects altogether

Finally faced with such drastic and potentially impossible requirements if adjustments are not made contractors may focus more on demonstrating good faith efforts Both a contractor who meets the required goal and a contractor that demonstrates good faith efforts are eligible for award It is likely that the contractor relying upon good faith effortsmdashwho will have a lower price than the other contractor who sacrificed price to actually meet the goalmdashwill be selected by the public agency This outcome will erode the total percentage participation of eligible firms and would clearly be inapposite of WSDOTrsquos intentions

3 Conclusion and Request

AGCrsquos members have asserted these and multiple other concerns Implementing an increased goal across the state and all contracts without clear evidence of available DBEs capable of performing the work and meeting the project requirements will have significant and far-reaching impacts on the construction industry many of which work against the aim of the Proposed Goal itself AGC requests WSDOT reconsider its Proposed Goal of 19 and make adjustments to account for the capability of DBE firms the lack of a rescission of the non-minority waiver and the lack of available DBE firms in parts of the state This Proposed Goal and its impacts on the construction industry will be irrevocable and will be to the detriment of taxpayers It is prudent to address these adjustments before implementing the Proposed Goal

Very truly yours

David DrsquoHondtCheryl Stewart Executive Vice President AGC of WashingtonExecutive Director Inland Northwest AGC

AGC of Washington bull 410 11th Avenue SE 203 Olympia WA 98501

Inland Northwest AGC bull 4935 E Trent Avenue Spokane WA 99212

image3jpeg

image1png

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image4png

image5jpeg

From Steve SmithTo WSDOT Disparity StudyCc Bayne JackieSubject 19 DBE RequirementDate Thursday December 14 2017 31947 PMAttachments DBE List and NAICS Listingpdf

Disparity Committee I recently read in The Daily Journal of Commerce that WSDOT plans to adopt a 19 DBEstandard for all FHWA funded projects early next year Our company S amp K Painting Inc is abridge painting company which is based in and works exclusively in Oregon and Washington Ihave been the owner of this firm since 1978 when it was first established My concerns aboutthe proposed 19 DBE requirement is as follows 1 There are very few opportunities for subcontract work on bridge repaint jobs These jobsare usually limited to cleaning and painting the bridge The only other facet of the project istraffic control which is almost always 3 or less of the project total cost The traffic controldoes provide a very good subcontracting opportunity 2 The NAISC code of 238320 includes bridge painting but also includes house painting wallcovering rust proofing etc which have almost no similarities to bridge painting When thiscode is used to determine the number of available firms (DBE or otherwise) that are availablefor bridge painting project this badly skews the numbers I would suggest that bridge paintingcontractors make up less than 5 of all firms in NAISC code 238320 3 If future WSDOT bridge painting projects require a 19 DBE participation A The qualified pool of DBE subcontractors available to submit pricing on any facetother than traffic control will be very limited I reviewed a list of 19 certified DBE firms listedunder painting at the WSDOT website and only recognized one firm from past projects B The number of prime bidders and competition will fall The state will incur highercosts due to this fact C Prime bidders will be forced to subcontract unqualified contractors just to be eligiblefor contract awards This will likely reduce the quality of the finished project Thank you for considering my concerns I may not have verbalized my thoughts as well as Iwould have liked but I have been in this business for almost 40 years and truly believe what Ihave said Sincerely

Steve Smith President

SampK Painting incP O BOx 390clacKamaS OregOn 97015Phone (503) 557-5544Fax (503) 557-5566Cell (503) 260-5280Steveskpaintingcom

From Lei WuTo Bayne JackieSubject comments on WSDOT proposed DBE goalDate Thursday December 14 2017 94925 PM

To Whom It May Concern

Below is my comments

The WSDOT recommended DBE Goal for FHWA contracts of 190 is a small andimportant increase that can further achieve equity in WSDOTFHWA contracting I am insupport of the 19 DBE Goal

I also want to express my appreciation for the thoroughness of the WSDOT Disparity studyand how the study disclosed the disparity in WSDOT contracts that do not have a DBE orWBE goal ndash further reinforcing that all women-owned firms and minority owned firms faceequity issues

I remain concerned with the methodology required by the Code of Federal Regulations andcase law because of the dependence on the availability of firms in the calculation Anunintended consequence of removing either gender or race from the goal is that many of thesefirms would go out of business the availability decreases and the formula then results in asmaller DBE goal

Thanks

Lei

Lei Wu PE AICP

Principal CSL Consulting

LeiWucsl-consultingnet

(425)562-6275

From Stephanie SimpkinsTo WSDOT Disparity StudySubject DBE Contracting goalsDate Wednesday November 29 2017 20259 PM

My name is Stephanie Simpkins and I own North Star Enterprises It is a large womanowned traffic control company located in Spokane Washington My mother founded thecompany in 1984 and I have worked in this family owned business most of my life Ipurchased the business from her in 2013 and have been sole owner since then My company thrived under the Disadvantaged Business Enterprise (DBE) Programimplemented by Washington Department of Transportation and administrated by United StatesDepartment of Transportation What started as a small business with one truck and a fewemployees has grown over the years to be one of the largest traffic control companies in thestate and employee countless people every construction season It has not been an easy roadover the years being a woman in the construction industry never is and it is hard to say wherewe would be now if it werenrsquot for the assistance of the DBE program As you know in June of 2017 majority women were removed from the DBE program basedon a disparity study conducted in 2012 On March 2014 Washington Department ofTransportation requested a wavier to remove majority women from the DBE program Thishas had an immediate and drastic impact on my business and all who work for me From themoment the waiver was approved and my company could no longer be used as a condition ofaward at bid time I began losing work Most recently the 2018 North Central Region ChipSeal which we have worked on for the last 10 years This contract provides work forapproximately 40 employees for the entire construction season I have already been told byseveral contractors that with such a high UDBE goal they wont even be able to consider mefor this project This loss along with several other smaller contracts to date are painting avery dismal future for my business With all of this turmoil surrounding the future of my business I find it frustrating to say theleast that WSDOT has chopped me off at the legs by not allowing my firm to count for theCOA but can use the little participation I may still contribute to help them reach their overallstate goal How is this fair If the contractors canrsquot utilize my business than neither shouldWSDOT As far as setting future state DBE contracting goals it looks as if the bar will beraised once again all while excluding the largest subset of useable DBErdquoS To me raising theoverall state goal at this time (which is already challenging to meet) with women DBErsquosexcluded from the program seems horribly ill timed

From Karen R BannishTo Bayne JackieSubject DBE GoalDate Tuesday December 5 2017 32549 PM

Hello Jackie ndash thank you for the webinar today concerning the proposed Overall DisadvantagedBusiness Enterprise Goal for the Federal Highway Administration I understanding the DisparityStudy much better now and checked the document you mentioned on the WSDOT website Pacific County is located in the Southwest corner of the State of Washington The tip of the LongBeach Peninsula would be 2 frac12 hours from Interstate 5 Our federal work primarily includes strictlyoverlay projects with 12 or fewer items of work included in the contract When bidding a project(our contracts are usually less than $500000) we sometimes received a single bid from the process Due to our proximity and the small cost for the work it is difficult to entice DBE participation Thereare simply no items of work that can be performed Having a mandatory DBE goal placed upon theproject in a rural area simply to meet the disparity guidelines will only increase the cost of theproject We feel the goals should be set in balance with the cost of the project and the items of work and notsimply directed to meet the overall goal

Karen BannishSenior Engineering TechnicianPacific County Department of Public Works211 North Commercial StreetRaymond WA 98577(360) 875-9368

From Dawn EgbertTo Bayne JackieSubject DBE Program Disparity StudyDate Tuesday December 5 2017 23825 PM

Hi JackieThank you for the great information on the call today You talked about the small works rosterbriefly We had a conversation in our office today about small contractors who are signed up on thePort of Vancouverrsquos small works roster Our team has had opportunity to talk to some of thecompanies on our roster who are women owned or minority owned businesses but they arenrsquotsigned up as a DBE firm When asked about that theyrsquove mentioned that they donrsquot want to fill outthe additional paperwork required to obtain the certification as a DBE As for the DBE goal at 19 it doesnrsquot seem to present an issue for the majority of our projects ndashespecially those where we would apply FHWA funds if granted However if we did happen to have aproject that didnrsquot include classifications of work where DBE certified participants are availablewould there still be an exception or a good faith efforts clause Thanks again for your time Dawn EgbertProcurement Services Manager3103 NW Lower River Road Vancouver WA 98660Direct 3609921102 | Cell 360448-9867 | Main 3606933611 | Fax 360735-1565degbertportvanusacom | wwwportvanusacom | available port properties Leadership | Stewardship | Partnership

From Feist MarleneTo WSDOT Disparity StudyCc Simmons Scott M Twohig KyleSubject Disparity Study Comments from City of SpokaneDate Friday December 15 2017 52226 PMAttachments image010png

image011pngimage012png

December 15 2017 Jackie BaynePolicy amp Reporting ManagerOffice of Equal OpportunityWashington State Department of TransportationPO Box 47314Olympia WA 98504-7314 RE Proposed DBE Contracting Goal for Highway Projects Dear Ms Bayne The City of Spokane would like to provide comments related to proposed DisadvantagedBusiness Enterprise Goal for Federal Highway Administration (FHWA) contracts by theWashington State Department of Transportation (WSDOT) Office of Equal Opportunity Manyof our projects receive funding from FHWA and as such the proposed new goals areapplicable to City work The City is supportive of the programrsquos purposemdashldquoto create a level playing field for firmsowned and operated by disadvantaged individuals wanting to participate in federally assistedhighway transit or aviation programsrdquo However the City is concerned about the ability to achieve the proposed utilization rate of upto 19 percent for DBEs in Eastern Washington considering the low number of DBEs in ourregion and the record construction under way in the City and in our region WSDOTrsquos DBE Program Disparity Study notes ldquoContractors in Eastern Washington repeatedlyreported that the goals on projects in their area are too highrdquo The Inland NorthwestAssociated General Contractors group notes that only about 12 DBEs in construction fields areavailable in the greater Spokane area Meanwhile the City has performed record construction in each of the last three years withproject totals hovering around $100 million Our City work has been bolstered by anaggressive program to improve water quality in the Spokane River Our local school districtsand our neighboring jurisdictions also have aggressive construction programs right now

Additionally we expect WSDOTrsquos work in this region to accelerate as North Spokane Corridor(NSC) construction proceeds At times our area is reaching the limits overall of our contractingcommunity the City has worked to release its projects in the first quarter of the year as muchas possible to lock in contractors and receive better pricing The capacity of existing DBEs in our region simply cannot meet that current high demand Some DBE firms are tempted to agree to more work in these times but we have found that insome cases DBEs have stretched themselves too thin On two recent City projects generalcontractors were unable to meet DBE goals as a result of DBE firms that couldnrsquot fulfill theircommitments for providing personnel or equipment It also seems implausible to expect DBEs from the West Side to mobilize teams to work on Cityof Spokane projects in large numbers In fact the Disparity Studyrsquos author responded at arecent meeting on this topic that a DBE from the West Side only very rarely completes workon the East Side of the state We would also be concerned about moving the good-paying jobs that construction providesoutside of our region The Cityrsquos median household income is $44350 considerably lower than theState of Washington MHI of $64129 and the Seattle MHI of $77351 Our leaders are working tocreate good-paying jobs for our citizens not export them to an already wealthier part of the state Additionally these projects are also funded with local dollars and our citizens expect their money toput their neighbors to work With the above considered the City is seeking

middot DBE goals for the 2018-2020 compliance period for Eastern Washington that arereflective of the current availability of DBE firms in our region

middot The re-inclusion of non-minority women owned DBEs in achieving DBE goals InSpokane non-minority women owned DBEs make up the majority of the availableDBEs And current information shows that women in Spokane overall still lag behindmen in opportunities and wages The Cityrsquos own ldquoGender and Racial Equityrdquo reportfrom 2016 noted that overall working women earned 783 percent of the earnings ofworking men in 2014 down from 827 percent in 2009 We need to lift up all women

middot The development of WSDOT programs to encourage the growth of existing andnew DBEs who can be used on street and highway projects We are encouraged by theproposed mentorproteacutegeacute program to increase the number and capacity of DBEs inEastern Washington Programs that address other barriers such as assistance withcompleting documentation or access to bonding capacity also could aid growth ofDBEs

middot The ability for WSDOT to adjust goals on a project if a selected DBE is unable tocomplete its commitments on a project This would help enable our contractors totake a chance on a new or inexperienced DBE to complete work

middot Recognition of local programs that strive to increase diversity in the work force Forexample the City operates a robust apprenticeship program that requires 15 percentof the labor hours on public works jobs greater than $600000 to be performed byapprentices The apprentice programs in our region are stepping up recruitmentefforts and are specifically seeking to recruit more youth women and minorities intoapprentice slots

As we seek to achieve the goal of increasing participation in street and highway constructionby companies owned by disadvantaged individuals we must also acknowledge that businessdevelopment and growth happens over time We must lay the groundwork now to build abase of DBEs that can help us achieve higher utilization goals over time Sincerely Marlene FeistDirector of Strategic DevelopmentPublic Works amp UtilitiesCity of Spokane

Marlene Feist | City of Spokane | Public Works Director of Strategic Development5096256505 | cell 5097109214 | mfeistspokanecityorg | spokanecityorg

From Hall MattTo WSDOT Disparity StudySubject FW WSDOT News - WSDOT seeks comments on proposed DBE contracting goal for highway projectsDate Friday December 15 2017 11956 PMAttachments WSDOT proposed DBE goal through 2020pdf

From Hall Matt Sent Friday December 15 2017 117 PMTo BayneJwsdotwagovCc Keniston Rick (KenistRwsdotwagov) MolyneKwsdotwagov SusanWilsonclarkwagovSubject WSDOT News - WSDOT seeks comments on proposed DBE contracting goal for highwayprojects Hello Jackie Please see our comments attached regarding the WSDOT proposed DBE goals Thanks for the opportunity to provide comments Matt HallClark County Public Works Washington State Department of Transportation ndash NEWSHeadquarters ndash 310 Maple Park Avenue SE ndash Olympia WA 98504-7314 ndash 360 705-7000 FOR IMMEDIATE RELEASEOct 30 2017 Contact Jackie Bayne Office of Equal Opportunity 360 705-7084

WSDOT seeks comments on proposed DBEcontracting goal for highway projectsComments accepted through Dec 15OLYMPIA ndash Contractors trade and labor organizations small and disadvantaged businessesand all others who may be interested in working with the Washington State Department ofTransportation are invited to comment on the agencyrsquos proposed Disadvantaged BusinessEnterprise goal for Federal Highway Administration contractsDBE goals for transportation projects that receive federal funds represent a percentage of thevalue of work in which minority- and women-owned businesses should participate WSDOTis proposing a 19 percent overall DBE participation goal on Federal Highway Administration-funded projects for federal fiscal years 2018 through 2020Once submitted to FHWA early next year the goal will be effective through Sept 30 2020The purpose of the DBE program is to create a level playing field for firms owned andoperated by disadvantaged individuals wanting to participate in federally assisted highwaytransit and aviation programsConnecting with communitiesWSDOT will host a series of public meetings to provide opportunities for individuals tocomment in person

Spokane

2 ndash 4 pm Tuesday Nov 28WSDOT Eastern Region Headquarters2714 N Mayfair St Spokane

Vancouver

2 ndash 4 pm Wednesday Nov 29WSDOT Vancouver Headquarters11018 NE 51st Circle Vancouver

Seattle

2 ndash 4 pm Thursday Dec 7WSDOT Northwest Region Headquarters15700 Dayton Ave N Shoreline

Other ways to provide commentThose who are unable to attend one of the meetings can participate in a no-cost webinar from230 ndash 430 pm Tuesday Dec 5 Registration for the webinar is required Those interested inparticipating should email DisparityStudywsdotwagovWritten comments can also be submitted by mail or emailJackie Bayne Policy amp Reporting ManagerWashington State Department of TransportationOffice of Equal OpportunityPO Box 47314Olympia WA 98504-7314DisparityStudywsdotwagovDocuments detailing the methodology used for determining the FHWA DBE goals areavailable for review at all WSDOT region headquarters offices and at the TransportationBuilding 310 Maple Park Ave SE Olympia They are also available online atwwwwsdotwagovequalopportunityWSDOT will consider all written comments received through Friday Dec 15 2017 Hyperlinks within this release

WSDOT Region offices wwwwsdotwagovContactofficelocationhtmregion

WSDOT keeps people businesses and the economy moving by operating and improving the statestransportation systems To learn more about what were doing go to wwwwsdotwagovnews forpictures videos news and blogs Real time traffic information is available at wwwwsdotcomtraffic or bydialing 511 Americans with Disabilities Act (ADA) InformationAccommodation requests for people with disabilities can be made by contacting the WSDOTDiversityADA Affairs team at wsdotadawsdotwagov or by calling toll-free 855-362-4ADA (4232)Persons who are deaf or hard of hearing may make a request by calling the Washington State Relay at711 Title VI Statement to Public It is WSDOTrsquos policy to assure that no person shall on the grounds ofrace color national origin or sex as provided by Title VI of the Civil Rights Act of 1964 be excluded fromparticipation in be denied the benefits of or be otherwise discriminated against under any of its federallyfunded programs and activities Any person who believes his or her Title VI protection has been violatedmay file a complaint with WSDOTrsquos Office of Equal Opportunity For additional information regarding Title

VI complaint procedures andor information regarding our non-discrimination obligations please contactOEOrsquos Title VI Coordinator at 360-705-7090 To unsubscribe to WSDOT media releases please reply and type REMOVE in the subject line

This e-mail and related attachments and any response may be subject to public disclosure under state law

From Cochrane EmilieTo WSDOT Disparity StudyCc Eugenis Susan Cowlitz Co Public Works - Brad BastinSubject Proposed DBE GoalsDate Thursday December 14 2017 85006 AMAttachments image002png

DBE Goals - Commentspdf

Please see the attached letter with comments regarding the proposed DBE Goals Ahard copy will be sent out today

Thanks

Emilie CochraneCowlitz County Public Works1600 ndash 13th Avenue SKelso WA 98626360-577-3030 ext 6523

From Michelle WolcottTo Bayne JackieCc Robideau Christopher LSubject RE DBE Contracting Goal CommentsDate Tuesday November 7 2017 65448 AMAttachments image001png

Thank you JackieWhat a relief to know that we have been heard and are not the only small business facing thisstruggle Your email is comforting

Yes you can provide us with additional assistanceLet me introduce my boss and Senior Vice President of Red Plains Professional Chris Robideau

Chris will be your contact from here since I will be leaving the company November 17th As a WA DBE we are ldquoeligible for limited DBE Support Services (SS) funding when funds becomeavailablerdquo When will this happen And are we registered or on a list to receive fundingIs the WSDOT ICR Training a prerequisite for the funding Or just helpful knowledge

Thank you for your time Jackie I will follow through with the training

Michelle Wolcott EIT Quality Control Engineer

2103 NE 129th Street Suite 201 Vancouver WA 98686 Office (360) 448-7999 Fax (360) 258-0274

wwwred-plainscom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Monday November 6 2017 332 PMTo Michelle Wolcott ltMichelleWolcottred-plainscomgtSubject RE DBE Contracting Goal Comments

Hi Michelle

Thank you for your interest in doing business with WSDOT I apologize for the lack of informationyou have come up against in your attempts to attain access to WSDOT ICR program

As you may well know WSDOT has recently completed a state wide agency specific diversity studyAnecdotal comments submitted with the study concur with your experience Not only did somerespondents find it difficult to become prequalified they also commented that the required indirectrate of 110 percent is too low to be profitable These requirements are currently under advisementby WSDOT and new DBE program requirements are currently in the process of seeking public input

As you are an OMWBE certified DBE in Washington State you will be eligible for limited DBE SupportServices (SS) funding when these funds become available At that time funds may become availableto assist you in your struggle to attain ICR eligibility Here is a link to WSDOTrsquos Indirect Cost RateTraining httpswwwwsdotwagovAuditICRTraininghtm If you would like me to find additionaltraining or information please let me know

If I can provide additional assistance of information please let me know

Best Regards

Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Michelle Wolcott [mailtoMichelleWolcottred-plainscom] Sent Tuesday October 31 2017 835 AMTo WSDOT Disparity Study ltDisparityStudyWSDOTWAGOVgtSubject DBE Contracting Goal Comments

HelloI have been in contact with WSDOT for 6 months sharing my disparaging story of beinga small DBE unable to submit SOQs for projects requiring a WSDOT Audited IndirectCost Rate Approval We do not have an in-house accountant and our outsideaccountant has explained to get all the paperwork together for WSDOT would take 40hours of work $9000 annually We cannot justify this cost to submit on a project thatwe may not acquire We have been directed to seek financial assistance from WSDOT Federal SBA andWashington State Office for Women and Minority Owned Enterprises all of whichprovided negative responses

As a DBE business in 11 states we are supporting the 19 incentive for federallyfunded contracts but we are frustrated in the fact that we will not be one of the luckyfew to participateWe have been in business 20 years From our Vancouver Washington office our clientsare the Native American tribes across the country with all contracts federally funded This summer alone the WSDOT ICR Approval has squashed our ability to submit on twoprojects that we were perfectly qualified to performI have attached previous emails to show a sample of who I have been dealing with

Thank you

Michelle Wolcott EIT Quality Control Engineer

ltimage001pnggt

2103 NE 129th Street Suite 201 Vancouver WA 98686 Office (360) 448-7999 Fax (360) 258-0274 wwwred-plainscom

From Michelle Wolcott Sent Monday July 10 2017 954 AMTo Harvey Schatzie ltHarveySwsdotwagovgtSubject RE WSDOT Indirect Cost Rate Process

Good Morning Schatzie

This is Michelle Wolcott from Red We spoke Friday June 30th about the ICRprocess and you were very encouraging I relayed the information to my boss who ishere in Vancouver then he shared with the president bookkeeper and our accountantin Oklahoma We had FAR compliance with Oklahoma DOT in 2015 so we are noteligible for the Safe Harbor Program Our account said our timekeeping system doesnot breakdown the hours and pay in the format WSDOT wants to have it presented andto get the documents in order would take the CPA and an assistant $9000 in paidhours of work It turns out this would have to be annually The other option is to hirean outside CPA firm to do the audit for us at $20000 annually

Our president said in the past we received funding assistance from the Stateof Oklahoma to get our ICR approval Does WSDOT offer any financial assistance for small businesses to reach compliance We are also a DBE in WA I have requested the same information from WA PTAC at theVancouver Chamber of Commerce and from WA Office of Minority and Women OwnedBusiness Enterprises and they both said there was nothing but suggested to askWSDOTThank you for your helpMichelle Wolcott EIT

Hello Michelle sorry but I am not aware of any grants But I was looking at this andthere is a POC at the bottom you may try to discuss the audit issuesHollyHolly BoehmeBusiness Opportunity Specialist | 8(a) Business Development ProgramUS Small Business Administration bull Seattle District Office

Hello Michelle -

Thank you for your email Im not aware of any funding available for thispurpose but do agree its quite a bit for a DBE firm to have as an expense Mostof the firms I work with do a lot more work on the Oregon side so perhaps thereare programs available that I just havent heard of Im copying my colleagueHoly Boehme in our Seattle District Office to see if they are aware of any suchassistance

Holly might there be some small business incubators or other resources availablein WA to help a small firm with the expense of getting a WSDOT AuditedIndirect Cost Rate approval Please reply all with anything you may have

Thank you

Yuri Yoshida Dyson Business Opportunity SpecialistUS SMALL BUSINESS ADMINISTRATION Portland District OfficePhone 503-326-6692 Fax 202-292-3872 wwwsbagovor

From Troy HalbergTo Bayne JackieSubject Re DBE Goal CommentsDate Wednesday December 13 2017 35533 PM

JackieToday was another example of why the goals should not be raised There were 2 jobs which Iwas low on and did not get due to the high goals This is exactly what will happen when thegoals get raised The first job was the 9180 Anacortes Ferry Paving Northeast Electric $244924 and UDBE $318000 Second job was the 9172 SR 9 East Junction Job Northeast Electric $68503 and UDBE $76300

Does this seem like a good way to spend the tax payer money I do not see how we are tosurvive if the goals get to 21

Thanks

Troy HalbergOffice360-225-7004Cell360-931-3990Fax360-225-7001

On Thu Nov 30 2017 at 1131 AM Bayne Jackie ltBayneJwsdotwagovgt wrote

Good Morning Troy

Thank you for taking the time to provide us with your experiences with the DBE Program TheWashington State Department of Transportation takes the public involvement process veryseriously and your comments will be taken into consideration prior to a final decision regardingthe overall DBE program goal

If I can be of further assistance please let me know

Best Regards

Jackie Bayne

Policy and Reporting Manager

WSDOT Office of Equal Opportunity

Work (360) 705-7084

Cell (360) 338-5783

BayneJwsdotwagov

From Troy Halberg [mailtotroyhnellcnet] Sent Wednesday November 29 2017 144 PMTo WSDOT Disparity Study ltDisparityStudyWSDOTWAGOVgtSubject DBE Goal Comments

If these goals are to be set that high this would make us as a non DBE small contractor at amajor disadvantage With these high of goals this is like handing all of the DBE electricalcontractors every job These general contractors will have no option but to use thembecause of the goals This should not go into effect We have been low on several jobs in thepast and have not gotten them do to the goals being 18 When this goes on it puts all therest of us contractors at a disadvantage Please consider the smaller non DBE contractorsthat are looking to survive as well

Thanks

Troy Halberg

Office360-225-7004

Cell360-931-3990

Fax360-225-7001

From Daniel Seydel IITo Bayne JackieCc Key Earl daneiwashingtonorg Nadeem Ismail Mussie Tewelde (mteweldehydro2geotechcom)

graceflyrightaolcom Mary Wenner Watkinson LarrySubject Re Seydel Dan - WSDOT Disparity Study Presentation Public TestimonyDate Friday December 8 2017 30323 PM

Jackie

It was my hope that the comments would be put into record I was also hoping that you wouldnot have to be the one having to formulate responses for each clarification If that is the caseI know you are swamped and will then I just ask my comments be only part of the recordHowever if there is dedicated staff that is going to be compiling and responding to theclarification then the below questions would be the priorities of most interest

These were questions unrelated to the disparity study and hopefully should be doable

1) Do you have any reports on your outcomes from the past 5 years on DBE support servicesand specific key performance measures from previous years funding (ie how many firmsutilized what was the objectives were objectives met did outcomes meet total satisfaction ifnot why next steps what was the firms capacity before and after services were performed (iesales employees bonding if applicable insurance equipment line of credit if applicablenumbertype of customers how are they doing now etc))

2) What other changes or improvements other than allowing DBES to select their own serviceproviders and a staff change will be a part of this new program

3) Was consideration to provide the new mentor protege consultant rather than separating theactivities into support services andor technical assistance

Disparity study clarifications

1) Will WSDOT consider sponsoring legislation to support the policy changes and goalincreases to insure manditory goals wont be necessary

a) If not what measures will you grant primes to operate outside the box (ie entertain bestvalue over low bid modify responsiveness by subs to require adherence to meeting voluntarygoals developing standards around federally funded gccm and other low bid procurementsthat give powers to primes to meet objectives including but not limited to mentor protegerelationships joint ventures bond waiving techniques cash flow assistance material andequipment acquisition manufacturer development specifications that have only DBES orinclude equal number of DBES as non DBES as approved installers etc)

2) Will the disparity study consultant be available for implementation or information gatheringfrom other regions

5) Will WSDOT be hiring more diverse staff amp professionaltechnical service providers inother departments outside OEO to insure policies commitments and evaluations areperformed in manner that improves diversity that reflects the communities WSDOT serves bythoughtful and legal efforts increase participation thus creating successful outcomes includingpartnerships and collaborations

Thank you and Merry Christmas

Hi Dan

Thank you for providing such thoughtful public comments questions and testimony

Regarding your public testimony below - I do not believe I am not able to answer questions ifthey are public comments Please let me know what part of this email you would likeclarification on and what part you would like considered public testimony

I appreciate your thoughtful consideration of WSDOTrsquos implementation of our civil rightsprograms

Best Regards

Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

DIDaniel Seydel IIFyi Daniel J Seydel II Platinum Group LLC 2064060844 f) 2062999934wwwplatinumbusinessgroupcom Small Business is the Answer FREE TRAINING FORENTREPRENEURS amp JOB SEEKERS - Polish your skills or make your firm standout thanksto the EntrepreneurialThu 233pDI

Daniel Seydel IIThu 1272017 1123 AMInbox Sent ItemsShow all 7 recipientsTobaynejwsdotwagov ltBayneJwsdotwagovgtJackie

Per your request below are my questions and comments some of which were verbally sharedyesterday

Congratulations on receiving the blessing of additional technical assistance dollars andcompleting the DBE Disparity Study per your report

1) Do you have any reports on your outcomes from the past 5 years on DBE support servicesand specific key performance measures from previous years funding (ie how many firmsutilized what was the objectives were objectives met did outcomes meet total satisfaction ifnot why next steps what was the firms capacity before and after services were performed (ie

sales employees bonding if applicable insurance equipment line of credit if applicablenumbertype of customers how are they doing now etc))

2) What other changes or improvements other than allowing DBES to select their own serviceproviders and a staff change will be a part of this new program

3) Was consideration to provide the new mentor protege consultant rather than separating theactivities into support services andor technical assistance

Disparity study clarifications andor comments

1) Will WSDOT consider sponsoring legislation to support the policy changes and goalincreases to insure manditory goals wont be necessary

a) If not what measures will you grant primes to operate outside the box (ie entertain bestvalue over low bid modify responsiveness by subs to require adherence to meeting voluntarygoals developing standards around federally funded gccm and other low bid procurementsthat give powers to primes to meet objectives including but not limited to mentor protegerelationships joint ventures bond waiving techniques cash flow assistance material andequipment acquisition manufacturer development specifications that have only DBES orinclude equal number of DBES as non DBES as approved installers etc)

2) Will the disparity study consultant be available for implementation or information gatheringfrom other regions

3) What lessons did WSDOT learn that it did not know from the other study(s)

4) What would WSDOT do different (ie scope time line process approach etc)

5) Will WSDOT be hiring more diverse staff amp professionaltechnical service providers inother departments outside OEO to insure policies commitments and evaluations areperformed in manner that improves diversity that reflects the communities WSDOT serves bythoughtful and legal efforts increase participation thus creating successful outcomes includingpartnerships and collaborations

Daniel J Seydel IIPlatinum Group LLC 2064060844f) 2062999934wwwplatinumbusinessgroupcom

Small Business is the Answer

FREE TRAINING FOR ENTREPRENEURS amp JOB SEEKERS - Polish your skills or makeyour firm standout thanks to the Entrepreneurial Institute of Washington

httpswwwyoutubecomchannelUCKL5YeVxL29HnNxqnb6hmXA

LIKE US on FaceBook if an Active Professional Development workshop provided by EIW

Construction University helps your firm or has benefited you

httpswwwfacebookcomEIWashingtonref=hl

From Bayne Jackie ltBayneJwsdotwagovgtSent Friday December 8 2017 10139 PMTo Daniel Seydel IICc Key Earl daneiwashingtonorg Nadeem Ismail Mussie Tewelde(mteweldehydro2geotechcom) graceflyrightaolcom Mary Wenner Watkinson LarrySubject RE Seydel Dan - WSDOT Disparity Study Presentation Public Testimony Hi Dan Thank you for providing such thoughtful public comments questions and testimony Regarding your public testimony below - I do not believe I am not able to answer questions if theyare public comments Please let me know what part of this email you would like clarification on andwhat part you would like considered public testimony I appreciate your thoughtful consideration of WSDOTrsquos implementation of our civil rights programs Best Regards Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov From Daniel Seydel II [mailtodanplatinumbusinessgroupcom] Sent Thursday December 7 2017 1123 AMTo Bayne Jackie ltBayneJwsdotwagovgtCc Key Earl ltKeyEwsdotwagovgt daneiwashingtonorg Nadeem Ismailltnipaintingearthlinknetgt Mussie Tewelde (mteweldehydro2geotechcom)ltmteweldehydro2geotechcomgt graceflyrightaolcom Mary Wennerltmwenn0108yahoocomgtSubject Seydel Dan - WSDOT Disparity Study Presentation Public Testimony Jackie

Per your request below are my questions and comments some of which were verbally sharedyesterday

Congratulations on receiving the blessing of additional technical assistance dollars andcompleting the DBE Disparity Study per your report

1) Do you have any reports on your outcomes from the past 5 years on DBE support servicesand specific key performance measures from previous years funding (ie how many firmsutilized what was the objectives were objectives met did outcomes meet total satisfaction ifnot why next steps what was the firms capacity before and after services were performed (iesales employees bonding if applicable insurance equipment line of credit if applicablenumbertype of customers how are they doing now etc))

2) What other changes or improvements other than allowing DBES to select their own serviceproviders and a staff change will be a part of this new program

3) Was consideration to provide the new mentor protege consultant rather than separating theactivities into support services andor technical assistance

Disparity study clarifications andor comments

1) Will WSDOT consider sponsoring legislation to support the policy changes and goalincreases to insure manditory goals wont be necessary

a) If not what measures will you grant primes to operate outside the box (ie entertain bestvalue over low bid modify responsiveness by subs to require adherence to meeting voluntarygoals developing standards around federally funded gccm and other low bid procurementsthat give powers to primes to meet objectives including but not limited to mentor protegerelationships joint ventures bond waiving techniques cash flow assistance material andequipment acquisition manufacturer development specifications that have only DBES orinclude equal number of DBES as non DBES as approved installers etc)

2) Will the disparity study consultant be available for implementation or information gatheringfrom other regions

3) What lessons did WSDOT learn that it did not know from the other study(s)

4) What would WSDOT do different (ie scope time line process approach etc)

5) Will WSDOT be hiring more diverse staff amp professionaltechnical service providers inother departments outside OEO to insure policies commitments and evaluations areperformed in manner that improves diversity that reflects the communities WSDOT serves bythoughtful and legal efforts increase participation thus creating successful outcomes includingpartnerships and collaborations

Thank you for your hard work

Daniel J Seydel IIPlatinum Group LLC2064060844f) 2062999934wwwplatinumbusinessgroupcom

Small Business is the Answer

FREE TRAINING FOR ENTREPRENEURS amp JOB SEEKERS - Polish your skills or makeyour firm standout thanks to the Entrepreneurial Institute of Washington

httpswwwyoutubecomchannelUCKL5YeVxL29HnNxqnb6hmXA

LIKE US on FaceBook if an Active Professional Development workshop provided by EIWConstruction University helps your firm or has benefited you

httpswwwfacebookcomEIWashingtonref=hl

From Erin EhlingerTo Bayne JackieSubject Support for WSDOTs proposed DBE goalDate Wednesday December 13 2017 115417 AM

I am writing to support the WSDOT recommended DBE Goal for FHWA contracts of 190 I also want to express my appreciation for the thoroughness of the WSDOT Disparity study and howthe study disclosed the disparity in WSDOT contracts that do not have a DBE or WBE goal ndash furtherreinforcing that all women-owned firms and minority owned firms face equity issues I remain concerned with the methodology required by the Code of Federal Regulations and case lawbecause of the dependence on the availability of firms in the calculation An unintendedconsequence of removing either gender or race from the goal is that many of these firms would goout of business the availability decreases and the formula then results in a smaller DBE goal Pleaselet me know how I can help influence a change to the CFR Thank you Erin Ehlinger

Erin Ehlinger PEPresident

24036 SE 47th StSammamish WA 98029erinehlingersmartcitytrafficcom425-221-0320

From Jackie EtterTo WSDOT Disparity StudySubject Why we need mandatory goalsDate Friday December 1 2017 61859 PM

As a DBE participating in bidding process I have found that regardless of the language which claims to insurethat disadvantaged business enterprises shall not be discriminated against the only way to ensure that this does nothappen is by mandating affirmative action goals Having been overlooked time and time again because of my gender when I have submitted bids that are verycompetitive with other bidders is very frustrating I have had many instances of companies using my price to getmy non DBE competitors to lower theirs The voluntary or laudatory DBE goals do nothing to ensure a level playing fieldThe only way to ensure non-discrimination is through mandatory goals

Jackie EtterWest Star Construction of Spokane

Sent from my iPhone

From Claudia HirscheyTo Key Earl Bayne JackieSubject WSDOT DBE Goal - Comment in supportDate Tuesday December 12 2017 61937 PM

Dear Earl and Jackie The WSDOT recommended DBE Goal for FHWA contracts of 190 is a small and important increasethat can further achieve equity in WSDOTFHWA contracting I am in support of the 19 DBE Goal I also want to express my appreciation for the thoroughness of the WSDOT Disparity study and howthe study disclosed the disparity in WSDOT contracts that do not have a DBE or WBE goal ndash furtherreinforcing that all women-owned firms and minority owned firms face equity issues I remain concerned with the methodology required by the Code of Federal Regulations and case lawbecause of the dependence on the availability of firms in the calculation An unintendedconsequence of removing either gender or race from the goal is that many of these firms would goout of business the availability decreases and the formula then results in a smaller DBE goal Sincerely Claudia S Hirschey PETransportation Consulting Servicesclaudiahirscheycomcastnethttphirscheytcscom2068564988 Mobile

From Nate ThomasTo WSDOT Disparity StudySubject WSDOT Proposes DBE goal of 19Date Thursday December 7 2017 42720 PM

The WSDOT should look into similar ways the Federal Gov has handled the equal opportunity forthose that fall under the DBE status and set aside specific projects for the DBErsquos and moreimportantly UDBErsquos so these companies have better chance of landing contracts Maybe a lot 10 ofthe DBE goal to set aside for only DBEs and other 9 goal met as it is done currently with COA onlarger contracts Nate ThomasSenior EstimatorD 5095688085 | C 5099941156331 North Fancher Road | Spokane WA | 99212

The information contained in this email including any attachments is confidential and may beprivileged It is intended only for the person or entity to which it is addressed and no waiver isintended by sending this email If the reader is not the intended recipient you are herebynotified that any review retransmission dissemination or other use of or taking any action inreliance upon this information is strictly prohibited If you have received this email in errorkindly notify the sender by reply email and delete the original message from any computerThank You

From Brian FujiiTo WSDOT Disparity StudySubject WSDOT propsed DBE GoalsDate Thursday December 7 2017 110638 AM

Good morning Jackie

I wanted to comment on WSDOTs proposed DBE goal to 19 I believe WSDOTs plan toincrease the overall DBE goal to 19 will provide greater opportunities for DBE contractorsin different disciplines to participate in federally funded contracts

Without the new DBE requirement and with Proposition 200 there are limited opportunitiesfor DBE contractors in disciplines different than the typical trucking flagging and rebar Inaddition there are no incentives for general contractors to go out beyond the usual truckingflagging and rebar DBE subcontractors

Increasing the DBE goals will provide opportunities for different DBE contractors in differentdisciplines to participate in WSDOT federally funded projects

Thank you for your time

RespectfullyBrian FujiiPresident Subsurface ConstructionP 2063836478F 2069604639MDBE 4M0024998

From Forman StephanieTo Bayne JackieCc Millar Roger christinenhanmailhousegov Claudia Hirschey Sarah Corbin Jiang Yingle

efaulknerenviroissuescom Diana Giraldo Kelly CheesemanSubject WTS - Disparity Study Comment LetterDate Friday December 15 2017 71020 PMAttachments 2017_Dec 15_WTSCommentLetter_WSDOT DBE Goalpdf

Dear Ms Bayne Please find our attached letter which summarizes the WTS Puget Sound Chapterrsquos support foradvancement of women in transportation and our comment letter regarding the recent DisparityStudy Please feel free to contact me if you have any questions or would like to discuss Sincerely Stephanie S Forman PEWTS Puget Sound President Transportation Project Manager

929 108th Avenue NE Suite 1300Bellevue WA 98004D 4254681548 M 2062291745stephanieformanhdrinccom

December 15 2017

Jackie Bayne Policy and Reporting Manager

Office of Equal Opportunity

Washington State Department of Transportation

PO Box 47314

Olympia WA 98504-7314

Dear Ms Bayne

On behalf of the Puget Sound Chapter of Womenrsquos Transportation Seminar (WTS) we would

like to thank the Washington State Department of Transportation for presenting to our

organization the DBE Disparity Study results We very much appreciated the presentation by Earl

Key Director of WSDOTrsquos Office of Equal Opportunity Teresa Berntsen (Director Office of Minority

and Womens Business Enterprises) as well as Leslie Jones (Director Sound Transit Office of Small

Business Development and Labor Compliance)

Following a review of the WSDOT Disparity Study and as a result of consultation with WTS

International we would like to provide WSDOT with our comments for your consideration

As you know WTS is an organization focused exclusively on attracting retaining and advancing

women in transportation By the year 2018 there will be thousands of vacancies in the

transportation industry for qualified professionals and while women account for more than half of

the worldrsquos workforce they are a very small minority in transportation disciplines

We are pleased that the outcome of the 2017 Disparity Study that recognizes the on-going barriers

for DBEs including women-owned businesses in transportation The WSDOT recommended DBE

Goal of 190 is a small and important increase that can further achieve equity in WSDOTFHWA

contracting We are also pleased that the 2017 Disparity Study has documented the disparity in

WSDOT contracts that do not have a DBE or WBE goal ndash further reinforcing that all women-owned

firms and minority owned firms face equity issues We are encouraged that the WSDOT has asked

FHWA to rescind the 2016 waiver

While WTSrsquo mission is specific to the advancement of women we are a race-neutral organization To

this end we are also deeply concerned about the underutilization of minority owned firms There is

no equity or ldquofair playing fieldrdquo without equity for all gender and races We remained concerned with

the methodology required by the Code of Federal Regulations and case law because of the

dependence on the availability of firms in the calculation An unintended consequence of removing

either gender or race from the goal is that many of these firms would go out of business the

availability decreases and the formula then results in a smaller DBE goal This consequence is

contrary to our mission

We look forward to our continued participation in WSDOTrsquos DBE advisory group we are anticipating

notice that the 2016 waiver has been rescinded and how we can work together to continue

advancing minority and women-owned firms in the transportation field

Sincerely

WTS Puget Sound Chapter

Stephanie Forman

President

C Roger Millar Secretary WSDOT

C Representative Adam Smith 9th Congressional District Washington co Christine Nhan

WTS Puget Sound Chapter

PO Box 3461

Bellevue Washington 98009

From Dave Gent - WAPATo Bayne JackieCc Tom GaetzSubject WAPA Public Comments - RE WSDOT FHWA Disadvantaged Business Enterprise Proposed GoalDate Friday December 15 2017 14119 PMAttachments 12152017 DBE Proposed Goal - WAPA Public Comments Letterpdf

Good afternoon Jackie Please find attached WAPArsquos ldquofor the public recordrdquo comments with respect to WSDOTrsquos proposedDBE Goals FHWA funded work I assume that the Master DBE Directory was not sent to you this week so as a result we were notable to review the directory before the close of the public comment period That fact is noted withinour comment letter Thank you for your efforts Have a good weekend

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Friday December 8 2017 1219 PMTo Dave Gent - WAPA ltdavegentasphaltwacomgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hello Dave WSDOT did not take possession of this directory as part of our review process We will provide youwith the records without submitting a formal request However we need to get them from theconsultant first I will hopefully have them to provide next week I will keep you updated on therequest Have a nice weekend Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal Opportunity

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

December 15 2017

Jackie Bayne Policy Manager WSDOT Office of Equal Opportunity Delivered via e-mail to BayneJwsdotwagov RE Public Comment (as requested) to Proposed Overall DBE Goal for the FHWA (2018 ndash 2020) Ms Bayne Thank you for your presentation via webinar on December 5 2017 outlining WSDOTrsquos evaluation process used to determine the proposed overall DBE goal for the FHWA Thank you also for the Colette Holt amp Associates (CHA) DBE Advisory Group presentation made on September 14 2017 Both presentations helped to distill the findings of the 2017 Disparity Study produced by CHA In response to Earl Keyrsquos initial informal request to comment on the proposed overall DBE goal made during the DBE Advisory Committee teleconference held on October 12th we provided a list of reasons that we believe justify a lower DBE goal than is now being proposed Our initial response to Mr Keyrsquos request did not serve to influence WSDOT and the current proposed goal remains at 190 The arguments provided on October 12th against the significant increase in the proposed DBE goal (versus the previous goal and recent historic DBE participation) are repeated and supplemented below and will serve as the Asphalt Pavement Associationrsquos (WAPArsquos) official public comments

In concert with WSDOT and the OWMBE WAPA and the construction firms that WAPA represents have demonstrated a commitment to the principals of equal opportunity for all ldquoready willing and ablerdquo firms for the entire history that our DBE program has been in place WAPA has continuously demonstrated its commitment to the goals of the DBE program and for increasing the representation of disadvantaged groups within our industry as both workers and owners of firms Please recognize that WAPArsquos oversight and critique of the DBE program has always attempted to balance the principals of fair and open competition with the practical aspects of the low bid compressed schedule high performance standards demanded within the WSDOT marketplace Our comments below are meant to enhance WSDOTrsquos and OWMBErsquos understanding of the market and to hopefully have WSDOT fully consider all of the dynamics that are at play when proposing its Triennial DBE goal for FHWA projects Current DBE Capacity vs Historically Robust Market In advocating for a realistic and defensible DBE goal it has always been WAPArsquos position that it is paramount that the realities of the marketplace and true certified DBE subcontracting capacity should be a primary standard While a ldquostretchrdquo goal may appear to be progressive on its face it comes with consequences for all of the parties involved in the WSDOT federal aid contracting arena To balance the dynamics of the WSDOT contracting system the DBE goal should be tempered with the realities of the market and with a true measure of the underlying effectiveness of the DBE support services available to contractors

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 2 of 6 The first point of fact that has not been given any apparent consideration by WSDOT in its evaluation of the current capacity of certified DBErsquos is that there is an historically robust workload scheduled to be performed in the 2017 through 2022 time-frame particularly in the Puget Sound ldquoEverett to Olympiardquo corridor By WSDOTrsquos own estimates (see Attachment A) public works construction project starts in the 2018 to 2022 time-frame in this region will exceed $333 billion (B) counting the work projected from just five public entities WSDOT will be taking a decidedly ldquoback seatrdquo role during this period to Sound Transit which will have construction project starts of $226B vs WSDOTrsquos projected volume of $67B WSDOTrsquos summary publication titled Washington State Department of Transportations Proposed Federal Highway Administration Triennium Disadvantaged Business Enterprise Goal Federal Fiscal Years 2018-2020 states correctly that ldquoIncluded among the types of evidence that must be considered are the current capacity of DBEs to perform work on WSDOTrsquos federally-assisted contracts as measured by the volume of work DBEs have performed in recent yearshelliprdquo (Step Two Adjustment discussion) With the Sound Transit program being over 300 larger than the total WSDOT program in this region a sober assessment of true certified DBE capacity in the next three years needs to be considered by WSDOT If the huge construction boom over the next five years does not prompt a Step Two Adjustment then it becomes obvious that the realities of the market are being ignored by WSDOT for DBE goal setting Put another way if the 2018 through 2022 level of contracting activity does not warrant a goal adjustment what will DBE Access Barriers Not Yet Addressed The CHA 2017 Disparity Study points out multiple recommendations in Section VII that impact DBE participation and access to the market Assessments relating to those impacts and the state of maturity in addressing the CHA recommendations should be considered when assessing the DBE goal Many of the CHA recommendation have not been adequately addressed at this point in time Some of the prime examples are listed below Increase Certification and Expertise ndash The Disparity Study as explained to us includes all minority- (MBE)

and women-owned (WBE) firms that could be readily identified that perform work within Washington State and that perform work within the NAICS code framework CHA developed to cover WSDOT project work During the various presentations relating to the Disparity Study WSDOT representatives said that outreach to currently non-certified MBE amp WBE firms has increased and that WSDOT aspires to bolster its list of certified firms in the future but this effort is just beginning and the success of the effort needs to be means tested against the broader population of MBE amp WBE firms included in the CHA base line evaluation As the Disparity Study uses a much broader population of MBE WBE contractors to arrive at its conclusions (both non-certified firms and firms too large for certification) it follows that the calculated DBE proposed goal is overstated to include capacity that does not currently exist within WSDOTrsquos certified DBE framework Unless OMWBE is experiencing sudden and unprecedented success in recruiting new MBEWBE firms the DBE goal should be adjusted downward to recognize that the ldquoready willing and ablerdquo contractors that WSDOT has certified is only a subset of the total MBEWBE contracting population used in the Disparity Study evaluation

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 3 of 6

Until the promised WSDOT outreach registration efforts result in a substantial increase in available certified DBE firms it is premature to count the entire population of minority- and women-owned contractors as available to participate in WSDOT contracting It is unreasonable for WSDOT to project availability capacity using the entire MBEWBE population when only its currently truncated list of certified firms is acceptable to count toward the DBE goal

A corollary to the Increase Certification and Expertise discussion above is that the calculation of the Base Figure evidently includes the broadest practical population of MBE and WBE firms identifiable (without a review of the CHA Master DBE Directory which has not been supplied prior to the close of the public comment period the scope of the directory cannot be ascertained) If this directory includes a large population of MBEWBE firms that are not certified or are too large to be certified then the Base Figure calculation should be adjusted to reflect that certified DBE firms are a fraction of the total MBEWBE firms used to arrive at the 19 suggested DBE goal With respect to the CHA Master Directory it is our understanding the WSDOT was not given the directory as part of its evaluation of the Disparity Study and it follows that it did not evaluate the proposed DBE goal in the context of the CHA Master DBE Directory In our opinion an informed decision on adjusting the CHA baseline goal calculation can only be done after an extensive evaluation of the CHA Master DBE Directory If this has not been done WSDOT has not exercised due diligence in evaluating the context and underpinnings of the CHA Disparity Study and a certified DBE Triennium goal proposal to the FHWA is premature Increase Contract ldquoUnbundlingrdquo ndash If this proposed strategy (suggested by the CHA Study) is undertaken

certified DBE Subcontractors currently available will be engaged as Prime Contractors and the value of their prime contracts will bolster the overall percentage of certified DBE contracting but a systematic effort and strategy to ldquounbundlerdquo has not been articulated by WSDOT The key question of how this effort can be accomplished without increased cost to the taxpayers and increased inconvenience for the traveling public As noted in the CHA study (page 129 final paragraph) ldquoUnbundling must be conducted however within the constraints of the need to ensure efficiency and limit cost to the taxpayersrdquo As of this writing no overarching strategy for further unbundling with proper accountability has been articulated by WSDOT to the DBE Advisory Group

Review Insurance and Experience Requirements ndash Impediments to certified DBE participation due to

necessary insurance and experience standards cannot be solved by the prime contracting community Unless and until WSDOT puts together programs to address the burden of the substantial risks shouldered by Prime Contractors on WSDOT contracts barriers for streamlined utilization of certified DBE firms will continue to exist These market driven barriers will continue to dampen the availability of certified DBE Subcontractors that are able to perform within WSDOTrsquos strict criteria without unduly transferring risk to the Prime Contractor

Better Partnering to Overcome DBE Failures to Perform ndash Prime Contractors are held fully responsible to maintain the project schedule and are subject to project liquidated damages even when they may be struggling to deal with Subcontractor performance issues It is well-established that replacing a certified ldquocondition of awardrdquo (COA) DBE Subcontractor is very onerous and likely very costly to the Prime Contractor Unfortunately the imposition of strict and often counter-productive commercially useful function (CUF) rules often compound this issue as Prime Contractors cannot help COA DBE Subcontractors work through capacity expertise or time-related issues that impact timely performance

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 4 of 6

WSDOT needs to be a much better partner in the process of dealing with under-performing or non-performing certified DBE Subcontractors The current standard operational procedure places all of the exposure for non-performance onto the Prime WSDOT does not have an equitable system to account for non-performing or under-performing certified DBE Subcontractors hired as a condition of award (COA)

Performance Information and Training ndash Commercially useful function rules (CUF) and the lack of clear benchmark definitions for good faith effort (GFE) standards remain barriers for improving accountability within the DBE system and in turn lead to distorted DBE participation rates These items remain amorphous due to lack of training or lack of historic information Chronic uncertainty exists regarding both of these items Until WSDOT changes and improves its approach to provide transparency and certainty for both the prime bidding amp subcontracting parties true certified DBE capacity will continue to be masked and the resultant higher subcontracting costs associated with a distorted marketplace will continue to be hidden

WAPA respectfully suggests that simply adding an ldquoEstimated DBE Subcontract Premiumrdquo line to the current DBE bid forms would help to establish benchmarks that could begin to be used to ldquomeans testrdquo good faith efforts If this information had been gathered over the last 20 years of the DBE program meaningful GFE standards could have been developed and could be in place today

An in-depth review of CUF standards would also provide clarity For instance it is unclear why force account items performed by certified DBEs are currently counted at only 50 of the value of the work How was this benchmark established Has it been reviewed since imposed Did it ldquosolverdquo whatever inequity WSDOT was trying to address Better clarity may lead to more expanded opportunities for certified DBE Subcontractors

Enhanced Supportive Services and Business Development Programs ndash Unless and until stronger programs of these types are shown to be effective in boosting certified DBE business development increased DBE participation due to stronger business acumen should not be relied upon when setting the new DBE goal

Does OMWBE have a reasonable expectation that future plans for enhanced and expanded programs will be more successful than those employed in the past Assuming that certified DBE Subcontractors will be better prepared to deal with the WSDOT contracting environment than in the past should not be relied upon to boost DBE participation goals Especially troubling were the multiple references within the CHA report highlighting that DBEs believe that the staff at OMWBE lack a deep knowledge about the highway construction industry (eg Study page 129 2nd paragraph) Does OMWBE have a path forward that will address this issue and thus improve supportive services impacts

Develop a Bonding and Financing Program for SBEs ndash This is completely outside of the prime contracting

communityrsquos scope of influence WSDOT must find a way to institute changes that both protect the taxpayer and help increase certified DBE bonding capacity and access to financing ndash very large hurtles To assume that these hurtles can effectively be overcome within the 2018 ndash 2020 time frame when they have been chromic issues for the past 20 plus years of DBE program development is not rational

A helpful innovation would be for WSDOT to underwrite performance and payment bonds for certified DBE firms or to create promote a system that helps certified DBE firms obtain private bonding Bridging the gap to address capital access and performance risks (bonding) must be championed by WSDOT

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 5 of 6

Base Figure Adjustment to Address Available Subcontract Volume and DBE Prime Contracts It is a fact that mid- to large-sized MBEWBE firms that compete both as Prime Contractors and as Subcontractors are not eligible to be OMWBE certified DBEs Further the current amount of contract unbundling for greater DBE access to WSDOT prime contracting (see below) accounts for a very low dollar volume of prime contracts performed by certified DBEs Finally by specification (WSDOT standard specification 1-081) Prime Contractors are obligated to perform 30 of the total volume of the work (less specialty work) or stated another way a maximum of 70 of the dollar volume on WSDOT projects is typically available to award to subcontractors These market dynamics are NOT addressed in the Disparity Study A responsible DBE goal made absent of these facts should not be implemented A reasonable adjustment to the proposed 19 DBE goal is presented below

bull The percent of WSDOT prime contracts awarded to certified DBE firms is likely less than 5 by total WSDOT

contract volume Assuming this approximation is valid (likely very conservative) then the amount of WSDOT contract work available to certified DBE firms via subcontracting should be adjusted to account for the factors outlined above The Base Figure (19) should be adjusted to recognize that a 70 maximum subcontractor participation is available (in the numerator) and to account for the assumed 5 certified DBE prime contracts in the denominator Reasonable Base Figure Adjustment 19 (proposed) x 70 subcontracts available divide 95 of Non-Certified DBEs as Prime Contract Volume = 190 x 0737 = 140 adjusted goal This is an adjustment based on the practical dynamics of the WSDOT contracting system and it represents a more realistic look at the true subcontract volume that is available for Prime Contractors to award to certified DBE firms

Conclusions

Until the items listed above are addressed and in place it is not reasonable to believe that DBE goals can be increased by nearly 163 (from 117 to 190) When the projected robust public works contracting market is appropriately considered the true availability of certified DBE Subcontractors for WSDOT contracts will be truncated due to demand across all public works sectors With multiple strong public works programs competing for a limited population of certified DBEs the ability to meet increased WSDOT DBE goals will be severely challenged Without very clear concise and transparent good faith effort rules the ability to address DBE goals that greatly overestimate true near term certified DBE capacity will result in non-attainment bid day chaos failures to perform andor rapidly increased pricing

The clear conclusion is that at this point in time under the current circumstances without effectively instituted new programs rules procedures that could enhance the certified DBE programrsquos overall effectiveness we believe that the DBE goal should remain at or near 12 As OMWBE documents and demonstrates its future successes in improving access and eliminating capacity barriers only then should the DBE goal be re-evaluated and increased

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 6 of 6

In closing please remember that it is rare that the contracting community is asked our opinion with respect to the WSDOTrsquos DBE policies and so this letter is somewhat a vehicle to highlight collective concerns It is our belief that the majority of the Prime Contractors in Washington state support the objective of creating a level playing field for ready willing and able DBEs

If the level playing field is not yet possible in the absence of the DBE program then the key is to set realistic goals that recognize reflect and address the hard realities and market dynamics imposed by WSDOTrsquos bedrock environment of awarding contracts to the lowest cost responsible and responsive Contractor

Respectfully submitted Washington Asphalt Pavement Association

David Gent Tom Gaetz Executive Director Senior Advisor

Attachment A ndash WSDOT Central Puget Sound Public Works Contracting Projection 2018 - 2022

Con

stru

ctio

n Pr

ojec

t Sta

rts

2018

-202

2S

ound

Tra

nsit

$22

6 B

SD

OT

$08

B

Tran

sit

amp O

ther

s$1

7 B

WS

DO

T$6

7 B

Por

t of

Sea

ttle

$15

B

TOTA

L$3

33

B

Source N

ov 1

9 2

017

pres

enta

tion

to W

APA

Ann

ual M

eetin

g

Attachment A

Work (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Dave Gent - WAPA [mailtodavegentasphaltwacom] Sent Thursday December 7 2017 144 PMTo Bayne Jackie ltBayneJwsdotwagovgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hi again Jackie Irsquom fine thanks and hope you are the same Interesting The Master DBE Directory is the basis for and integral to the conclusions of the DisparityStudy Is it not then part of the information needed to fully review and comment on the DisparityStudy Was it not provided by CHA to WSDOT for review We are trying to fully understand thestudy and if this directory was part of the study why would it need to be obtained by a publicrecords disclosure It should be in the public domain and not restricted from ease of access If you are sure that a public records request is needed Irsquoll start that process but we will need tonote that point of fact when we submit our public comments If you are able to reconsider please let me know Respectfully

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Thursday December 7 2017 126 PMTo Dave Gent - WAPA ltdavegentasphaltwacomgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hello Dave I hope you are doing well

That information would likely be obtained through a public disclosure request Best Regards Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Dave Gent - WAPA [mailtodavegentasphaltwacom] Sent Thursday December 7 2017 113 PMTo Bayne Jackie ltBayneJwsdotwagovgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Jackie Can you please provide an electronic file or provide a weblink for the Master DBE Directory thatColette Holt amp Associates developed for the WSDOT Disparity Study 2017 (first referred to on Page 8of the Disparity Study) I did not see a link to this Master DBE Directory within the study Thanks

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Friday October 27 2017 1118 AMTo Kenyon Wendy ltKenyonWwsdotwagovgt Adams E W ltewadamssystemsclcomgtAdekoyaAndrew ltandrewadekoyabccomgt AlyssaBalllegwagov Anindita Mitraltamitracrea-affiliatescomgt APRISeattlehotmailcom Armstrong CharlotteltCharlieAatgwagovgt Ato Apiafi Architects PLLC ltatoaatoapiaficomgt benzfanwaorgBerntsen Teresa (OMWBE) ltTeresaBomwbewagovgt Billingsley Andrealtbillinawsdotwagovgt Bramlet Erica ltEricaBramletlegwagovgt Brooks Julius

ltBrooksJwsdotwagovgt Brown Jason ltjbrownldccorpcomgt bwallacenwlaborersorgCamden Allison ltCamdenAwsdotwagovgt carlllivingstongmailcom Cerda OscarltCerdaOwsdotwagovgt Christopher Chris ltChristCwsdotwagovgt ckerneycaawagovdanplatinumbusinessgroupcom davegentasphaltwacom David BalltDavidsignsnowmillcreekcomgt Davis Khalia ltDavisKhwsdotwagovgt Davis RaShelle (GOVltrashelledavisgovwagovgt Dayton Jo ltDaytonJwsdotwagovgt ddhondtagcwacomDebbieDriverlegwagov Dennis ltdennisahlkiewitcomgt dmcleodnwlaborersorgdrart6651gmailcom Duncan Enid lthigradeincgmailcomgt EltonltEltonwashingtonstatetruckingcomgt eprincecaawagov flemosldccorpcomfmartineznwmtnmsdcorg geoffshookatkncom glovelady ltgloveladyexcelglovescomgtGrabow Katie ltkgrabowsystemsclcomgt Guilfucci Jackie ltJackieGuilfucciskanskacomgt HealyLinda ltHealyLwsdotwagovgt Higginbotham Breanne ltHigginBwsdotwagovgt HirscheyClaudia ltclaudiahirscheycomcastnetgt Holt Colette ltcoletteholtmwbelawcomgt Huff JohnltHuffJwsdotwagovgt Iniguezchawagov JacksonMaynardlegwagov Jimmy Matta(jmattaalcantarassoccom) ltjmattaalcantarassoccomgt kellywickergovwagov Key EarlltKeyEwsdotwagovgt Kirk Jon ltjkirkwhhnfscomgt Kris Purrier ltkpurrierhwageocomgtleewabuildingtradesorg lesliejonessoundtransitorg Liz Evans ltlevansagcwacomgt LopezErin lterinlopezdeswagovgt Martha Cerna ltMarthaPSLCCORGgt Martin-Arnold EdwinaltMartinEwsdotwagovgt Mary Lerdahl ltmarydbeelectricinccomgt McCarty Hannahlthannahmccartylegwagovgt Melissa L Boyles ltmelissaboylesmwbelawcomgt Metcalf KeithltMetcalKwsdotwagovgt michaelicapaawagov Michelle ltMichelleTTCC26netgt MillarRoger ltMillarRwsdotwagovgt Nakamura Jason ltjasonnakamura1-alliancecomgtNavarroLportseattleorg olliepmt-solutionscom pastorbanksesbctacomacom PatrickHughes ltphugheshughesgroupbizgt Petersen Jodi (FHWA) ltJodiPetersendotgovgtrabbottliunaorg rcarmsteadgmailcom ricemportseattleorg Riley D ltdrileylydigcomgtSeling ltSelingjpfranciscomgt sherryharrisergosynchcom Stell MellodyltStellMwsdotwagovgt terigobintulaliptribes-nsngov timwilliamfactorycom tinaterra-tdicom tkellyldccorpcom tomgaetzmsncom vcollinsacec-waorgverlenejazzmsncom Wang Albert ltWangAatgwagovgt Waugh GregltGregWMaxKuneyComgt Yates Henry ltYatesHWSDOTWAGOVgtCc Tom Gaetz lttomgaetzmsncomgt Dave Gent - WAPA ltdavegentasphaltwacomgt VanCollins ltvcollinsacec-waorggt Daniel Seydel II ltdanplatinumbusinessgroupcomgt MaynardJackson ltJacksonMaynardlegwagovgt Carl Livingston ltcarlllivingstongmailcomgt DonMcLeod ltdmcleodnwlaborersorggt JIMMY MATTA ltjimmymattamsncomgt Prince Ed(CAAA) lteprincecaawagovgt David DHondt ltddhondtagcwacomgt Irene Reyesltgloveladyexcelsupplycompanycomgt McDaniel Craig ltMcDaniCwsdotwagovgtsherryharrisergosynchcomSubject WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Good morning On Monday October 30th WSDOT will be releasing the proposed overall Federal HighwayAdministration Disadvantaged Business Enterprise goal attached for public comment throughDecember 15 2017 This overall DBE goal is based upon the recently completely DBE ProgramDisparity Study WSDOT is proposing a 19 percent overall DBE participation goal on Federal Highway

Administration-funded projects for federal fiscal years 2018 through 2020 DBE goals fortransportation projects that receive federal funds represent a percentage of the value of work inwhich minority- and women-owned businesses should participate Once finalized and submitted toFHWA early next year the goal will be effective through Sept 30 2020

The purpose of the DBE program is to create a level playing field for firms owned and operated bydisadvantaged individuals wanting to participate in federally assisted highway transit and aviationprograms The attached overall DBE goal is for FHWA funded projects WSDOT will be updating theFTA and FAA overall DBE goals in the near future

If you have any questions please contact Earl Key Director of the Office of Equal Opportunity at3607057091 or KeyEwsdotwagov Thank you Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

  • Proof-Of-Publicationpdf
    • Mediapdf
      • AGC
      • Daily Journal
      • Daily Medium
      • DBEGood
      • OMWBE
      • Seattle Medium
      • Tabor 100
      • The Chronicle
      • Tukwila
        • King County
          • Public-Comments-20180111pdf
            • 19 DBE Requirement(1)
            • AGC Comments on Proposed 10 Goad
            • Backstrom Curb amp Sidewalk
            • comments on WSDOT proposed DBE goal
            • Cowlitz County Public Works
            • DBE Contracting goals
            • DBE Goal
            • DBE Program Disparity Study
            • Disparity Study Comments from City of Spokane
            • FW_ WSDOT News - WSDOT seeks comments on propos
            • Proposed DBE Goals
            • RE_ DBE Contracting Goal Comments
            • Re_ DBE Goal Comments
            • Re_ Seydel Dan - WSDOT Disparity Study Present
            • Support for WSDOTs proposed DBE goal
            • Why we need mandatory goals
            • WSDOT DBE Goal - Comment in support
            • WSDOT Proposes DBE goal of 19
            • WSDOT propsed DBE Goals
            • WTS - Disparity Study Comment Letter

Page 6

Washington State Ferries Washington State Office of Minority amp Womens Business Enterprises

Once the DBE Work Group reviewed and provided comments the overall DBE goal was revised accordingly

Upon DBE Work Group review the goal was then reviewed by the DBE Advisory Group comprised of minority women and trade organizations including but not limited to

Tabor 100 National Association of Minority Contractors Latino Civil Alliance American Council of Engineering Companies of Washington Laborers Local 440 Street Pavers Sewer Watermain and Tunnel Workers Washington Association of General Contractors Washington Asphalt Pavement Association Northwest Mountain Minority Supplier Diversity

Council Tribal Employment Rights Office Womens Transportation Seminar Washington Asphalt Pavement Association Women in Highway Construction

WSDOT followed the public participation requirements outlined in 49 CFR Part 26 This public participation process also included the publication of a press release on October 30 2017 requesting public comment for 45 days This publication also notified interested parties of public meetings to gain and understanding of the overall DBE goal at the following locations

Spokane November 28 Vancouver November 29 Webinar December 5 North Seattle December 7 Pasco December 131

The comments provided by these groups were taken into consideration and no quantitative evidence relevant to the determination of availability or utilization was submitted to revise the overall DBE goal

Published Notice To satisfy the public consultation requirements of 49 CFR sect 2645(d)(2) WSDOT will provided a press release to all media outlets in Washington State and publish the proposed overall annual DBE goal for the triennium in the Seattle Daily Journal of Commerce Included in its press release and publication is WSDOTs request for public comment and inspection of the goal methodology for 45 days from the date of publication

1 The December 13 Public Meeting was added with a separate press release to ensure sufficient statewide notice regarding the Proposed Overall DBE Goal

Page 7

Summary Pursuant to the requirements of 49 CFR sect 2645(a)(2) WSDOT submits this proposed triennium DBE Goal to FHWA for review and approval WSDOT followed the requirements of 49 CFR sect2645 in completing this FHWA DBE goal along with the OSDBU Guidance This proposed DBE Goal of 190 is based upon the availability of ready willing and able DBEs as established by the Disparity Study WSDOT anticipates race-neutral participation of 22 and race-conscious participation of 168

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WSDOT proposes 19 DBE goal on FHA-funded projectsWSDOT is proposing a 19 percent overall DBE participation goal on Federal Highway Administration-funded projects for federal fiscal years 2018 through 2020 WSDOT will submit the proposal to FHWA early next year following a public comment period Once submitted to FHWA the goal will be effective through Sept 30 2020 (See info on public meetings below)

AGC is reviewing the proposal and considering its response AGC members are encouraged to send comments to AGC Chief Lobbyist Jerry VanderWood(mailtojvanderwoodagcwacom) 3603525000

WSDOT said the 19 goal is based upon the availability of ready willing and able DBEs as established by the WSDOT Disparity Study (See summary of the 2017 disparity study here (httpwwwwsdotwagovsitesdefaultfiles20160509WSDOTDisparityStudyPresentation2017pdf) see full study report here(httpwwwwsdotwagovsitesdefaultfiles20170911OEO-DisparityStudy-2017pdf))

In its report study authors Collete Holt and Associates concluded ldquoThese results provide the agency with the evidence necessary to narrowly tailor its DBE program for federal-aid contracts as required by 49 CFR Part 26 The statistical data and the anecdotal testimony provide a sufficient basis for the continued use of narrowly tailored remedial race- and gender-conscious measures to ensure full and fair access by all firms to WSDOT federally-funded prime contracting and associated subcontracting opportunitiesrdquo

WSDOT will host a series of public meetings to provide opportunities for individuals to comment in person

Spokane 2 ndash 4 pm Tuesday Nov 28 (WSDOT Eastern Region Headquarters 2714 N Mayfair St)

Vancouver 2 ndash 4 pm Wednesday Nov 29 (WSDOT Vancouver Headquarters 11018 NE 51st Circle)

Seattle 2 ndash 4 pm Thursday Dec 7 (WSDOT Northwest Region Headquarters 15700 Dayton Ave N Shoreline)

Those who are unable to attend one of the meetings can participate in a no-cost webinar from 230 ndash 430 pm on Tuesday Dec 5 Advance registration for the webinar is required Those interested in participating should email DisparityStudywsdotwagov (adminDisparityStudywsdotwagov)

Written comments can also be submitted by mail or email to Jackie Bayne Policy amp Reporting Manager Washington State Department of Transportation Office of Equal Opportunity PO Box 47314 Olympia WA 98504-7314 or to DisparityStudywsdotwagov (adminDisparityStudywsdotwagov20)

WSDOT will consider all written comments received through Friday Dec 15 2017

Documents detailing the methodology used for determining the FHWA DBE goals are available at wwwwsdotwagovequalopportunity(httpwwwwsdotwagovequalopportunity) or in person at the Transportation Building 310 Maple Park Ave SE in Olympia

Page 1 of 1WSDOT proposes 19 DBE goal on FHA-funded projects - AGC of Washington

1112018httpwwwagcwacompostswsdot-proposes-19-dbe-goal-on-fha-funded-projects

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October 31 2017

WSDOT proposes new DBE goalsBy JOURNAL STAFF

OLYMPIA mdash The Washington State Department of Transportation is proposing a 19 percent overall DBE participation goal on Federal Highway Administration-funded projects for federal fiscal years 2018 through 2020

WSDOT plans to submit the goals early next year and is seeking comments through Dec 15

To read this story in full or purchase a login subscription

HOME MyDJC BUSINESS CONSTRUCTION REAL ESTATE ARCHITECTURE amp ENGINEERING ENVIRONMENT TECH WEEKEND FEATURES SEATTLESCAPE

Page 1 of 2Seattle DJCcom local business news and data - Construction - WSDOT proposes new D

1112018httpwwwdjccomnewsco12105680html

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()

WSDOT seeks comments on proposed DBE contracting goal for highway projects - Seattle MtgWSDOT seeks comments on proposed DBE contracting goal for highway projects

Comments accepted through Dec 15

OLYMPIA ndash Contractors trade and labor organizations small and disadvantaged businesses and all others who may be interested in working with the Washington State Department of Transportation are invited to comment on the agencyrsquos proposed Disadvantaged Business Enterprise goal for Federal Highway Administration contracts

DBE goals for transportation projects that receive federal funds represent a percentage of the value of work in which minority- and women-owned businesses should participate WSDOT is proposing a 19 percent overall DBE participation goal on Federal Highway Administration-funded projects for federal fiscal years 2018 through 2020

Once submitted to FHWA early next year the goal will be effective through Sept 30 2020

The purpose of the DBE program is to create a level playing field for firms owned and operated by disadvantaged individuals wanting to participate in federally assisted highway transit and aviation programs

Connecting with communities WSDOT will host a series of public meetings to provide opportunities for individuals to comment in person

Spokane meeting was held Nov 28

Vancouver meeting was held Nov 29

Seattle

2 ndash 4 pm Thursday Dec 7WSDOT Northwest Region Headquarters15700 Dayton Ave N Shoreline

Page 1 of 3WSDOT seeks comments on proposed DBE contracting goal for highway projects - Seattl

1112018httpwwwomwbewagovabouteventswsdot-seeks-comments-proposed-dbe-contracting

Date Thursday December 7 2017 - 200pm to 400pm

Other ways to provide comment Those who are unable to attend one of the meetings can participate in a no-cost webinar from 230 ndash 430 pm Tuesday Dec 5 Registration for the webinar is required Those interested in participating should email DisparityStudywsdotwagov (mailtoDisparityStudywsdotwagov)

Written comments can also be submitted by mail or email Jackie Bayne Policy amp Reporting Manager Washington State Department of Transportation Office of Equal Opportunity PO Box 47314 Olympia WA 98504-7314 DisparityStudywsdotwagov(mailtoDisparityStudywsdotwagov)

Documents detailing the methodology used for determining the FHWA DBE goals are available for review at all WSDOT region headquarters offices and at the Transportation Building 310 Maple Park Ave SE Olympia They are also available online at wwwwsdotwagovequalopportunity (httpwwwwsdotwagovequalopportunity)

WSDOT will consider all written comments received through Friday Dec 15 2017

WSDOT keeps people businesses and the economy moving by operating and improving the states transportation systems To learn more about what were doing go to wwwwsdotwagovnews (httpwwwwsdotwagovnews) for pictures videos news and blogs Real time traffic information is available at wwwwsdotcomtraffic(httpwwwwsdotcomtraffic) or by dialing 511

Americans with Disabilities Act (ADA) Information Accommodation requests for people with disabilities can be made by contacting the WSDOT DiversityADA Affairs team at wsdotadawsdotwagov (mailtowsdotadawsdotwagov) or by calling toll-free 855-362-4ADA (4232) Persons who are deaf or hard of hearing may make a request by calling the Washington State Relay at 711

Title VI Statement to Public It is WSDOTrsquos policy to assure that no person shall on the grounds of race color national origin or sex as provided by Title VI of the Civil Rights Act of 1964 be excluded from participation in be denied the benefits of or be otherwise discriminated against under any of its federally funded programs and activities Any person who believes his or her Title VI protection has been violated may file a complaint with WSDOTrsquos Office of Equal Opportunity For additional information regarding Title VI complaintprocedures andor information regarding our non-discrimination obligations please contactOEOrsquos Title VI Coordinator at 360-705-7090

Page 2 of 3WSDOT seeks comments on proposed DBE contracting goal for highway projects - Seattl

1112018httpwwwomwbewagovabouteventswsdot-seeks-comments-proposed-dbe-contracting

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)+-01-2345678897ltlt8=gt7=47AB=gtC8ADE7=877F=gt8GHG78=gtGgt=CCI7JKLMNOMNPPPQRSTUVWXYU1-XZ[]_abcdbbefeghbiebcjkh]gchbb_clmn[d opqrsssq otuv$r ow13x(v$r$ampvv(yz|nf|~knnn~dn owow13 ssw$ampvvo[dfzk]ee]ciieb]cf_]bae]_e]]n behgh_]ecbhb_aac] iexclcent poundcurrenyenbrvbarsectcopy-Z+-Z1O-ZordfXcopyordfYZZlaquocopy0not-0copy1O1shycopyordfordf01ordfregcopy-laquoXordfYK10copyX11X1Ocopyordf-XZ1deg ZX0copy-XZX1-Xordf0copyordf0copylaquoYK10copyX11deg0--XW10copylaquo-copyplusmn--Xsup2Xsup3Z-shyXcopy-microZcopy1sup3Z--0copyparaWplusmnsup2middotmicroZX0copyreg0-Xordf-+shyshyXcopy-copy-XlaquoXcopy+Lsup11sup3Zsup31Xordf0copy-XZ0shysup201ordfregcopy-laquoXordf)K10copyX11ordmcopy-XZsup3Z01Xparasup2)ordmlaquo1raquocentfrac14frac12frac34iquestAgraveAacuteAcircAtildeiquestAumlAringAacuteiquestAEligCcedilAEligfrac34AtildeiquestAEligAacuteiquestAumlAcircAacuteAgraveiquestAEligAacuteiquestAringCcedil 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iquestAumlcentAgraveiquestAEligCcedilAacuteAEligfrac14AacuteAacuteAacuteAringAEligAacute frac12AEligAacuteAacuteiquestAElig iquestAuml IumlAcircAacuteAcircAEligiquestAacuteEcircaumlRSaringPREcircAringiquestOWaeligccedilegraveeacuteNRecircSaringPRAringiquestaacute)LcopyXJeumldeg1ordf-raquodegraquolaquoreg

13

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httpwwwchronlinecomnewswsdot-seeks-public-comment-on-disadvantaged-business-enterprisearticle_f5c753ea-be61-11e7-966c-972f6769d8a6html

WSDOT Seeks Public Comment on Disadvantaged Business Enterprise By The Chronicle Oct 31 2017

The Washington State Department of Transportation will be accepting public comments about the departmentrsquos proposed Disadvantaged Business Enterprise goal for federal contracts

The goal is for transportation projects receiving Federal Highway Administration funds to have 19 percent of the value of work done by minority or women-owned businesses during the 2018 through 2020 fiscal years

ldquoThe purpose of the DBE program is to create a level playing field for firms owned and operated by disadvantaged individuals wanting to participate in federally assisted highway transit and aviation programsrdquo a press release from WSDOT said

A series of public meetings will be held to discuss the goal in Spokane Vancouver and Seattle

For those who are unable to attend the in person meetings a webinar will be hosted from 230 to 430 pm Thursday Dec 5 The webinar is free but registration is required To register email DisparityStudywsdotwagov

Page 1 of 2WSDOT Seeks Public Comment on Disadvantaged Business Enterprise | News | chronlin

1112018httpwwwchronlinecomnewswsdot-seeks-public-comment-on-disadvantaged-business-

Written comments can also be submitted by mail or email to Jackie Bayne policy and reporting manager for the department of transportation at Washington State Department of Transportation Office of Equal Opportunity PO Box 47314 Olympia 98504 or by email at disparitystudywsdotwagov Comments will be considered through Dec 17 2017

More information about the goal is available at all regional offices or at the main office in Olympia located at the Transportation Building 310 Maple Park Ave SE Olympia More information can also be found online at wsdotwagovequalopportunity

Page 2 of 2WSDOT Seeks Public Comment on Disadvantaged Business Enterprise | News | chronlin

1112018httpwwwchronlinecomnewswsdot-seeks-public-comment-on-disadvantaged-business-

larr Halfway there SR 8 fish barrier removal reaches milestone New SR 26 traffic cameras available rarr

WSDOT seeks comments on proposed DBE contracting goal for highway projects

December 1 2017 | No Comments

WSDOT is seeking comments on proposed participation goals for Disadvantaged Business Enterprises on upcoming Federal Highway Administration contracts a Yakima meeting has also been added to the schedule Source WSDOT Permalink WSDOT seeks comments on proposed DBE contracting goal for highway projects

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Page 1 of 3WSDOT seeks comments on proposed DBE contracting goal for highway projects | Tukw

1112018httptukwilatowingcom20171201wsdot-seeks-comments-on-proposed-dbe-contracting

From Liz EvansTo Bayne JackieSubject AGC Comments on Proposed 10 GoadDate Tuesday December 12 2017 50314 PMAttachments WSDOT Proposed Goal - AGC Comments FINALdocx

Hi there Jackie Attached are AGCrsquos comments on WSDOTs proposed 19 goal We will also be mailing you a copy Thanks for the opportunity to comment and we hope you find it helpful Regards Liz Liz Evans CAE Northern District ManagerAGC OF WASHINGTONTel 3602238757 | wwwagcwacom JOIN US for the 2018 AGC of Washington Annual Convention amp Technology Expo Jan 26

CUsersmwillmsPicturesInland AGCLogo_RGB_Half_5in

December 12 2017

Page 5

December 12 2017

VIA EMAIL amp US MAIL

Ms Jackie Bayne Policy amp Reporting Manager

Washington State Dept of Transportation

210 Maple Park Ave SE

PO Box 47314

Olympia WA 98504

RE WSDOT Proposed FHWA Triennium Disadvantaged Business Enterprise Goal

Dear Ms Bayne

This letter summarizes the views of the Associated General Contractors of Washington and Inland Northwest Associated General Contractorsrsquo (hereafter referred to collectively as AGC) regarding the Washington State Department of Transportationrsquos (WSDOT) recently proposed FHWA Triennium Disadvantaged Business Enterprise (DBE) Goal (the ldquoProposed Goalrdquo) AGC shares WSDOTrsquos commitment to continue the promotion of DBE firms but AGC is concerned the Proposed Goal which is a significant increase from the previous goal and actual utilization may have unintended consequences and could impose significant burdens on both prime contractors and DBE contractors alike AGC requests WSDOT reconsider its Proposed Goal and adjust the Proposed Goal to account for inevitable availability and capability issues including the lack of a formal retraction of the non-minority woman owned business waiver that makes up over half of the Proposed Goal Implementing an unachievable goal will only be to the detriment of the DBE program

1 AGCrsquos Membersrsquo Interest in WSDOTrsquos Proposed Goal

Together AGC of Washington and Inland Northwest AGC represent and serve the commercial industrial and highway construction industry These professional associations of commercial contractors are comprised of more than 900 members who have joined together to enhance the performance of their industry and build a better climate for construction operators many of which are small and closely held businesses

Like WSDOT AGC is firmly committed to the principals of equal opportunity and promoting efforts to ensure minority women and veteran owned businesses are properly represented In both its political advocacy and membership programs AGC has demonstrated its commitment to increasing the representation of disadvantaged groups in the construction industry as both workers and owners of firms For AGC this is both an issue of principles and a practical one The construction industry as a whole is facing a critical shortage of workers and it is imperative that the industry attract new participants Among AGCrsquos activities demonstrating this commitment are the following

middot AGC has an ongoing ldquoContractor Exchangerdquo program through which small minority- and women-owned subcontractors are offered one-on-one networking opportunities with established general contractors

middot The AGC Education Foundation provides financial support to construction-related programs in K-12 schools and conducts outreach specifically targeted at low income disadvantaged and female students

middot More than 2500 students most from inner-city schools participate in annual AGC-sponsored Construction Career Days in King Pierce and Spokane Counties

middot AGC supports the Pre-Apprenticeship Construction Training (PACT) program at Seattle Vocational Institute This program is focused on preparing underrepresented communities to be highly qualified applicants and successful apprentices in the construction trades

middot AGC is a sponsor of the Turner School a training course for minority- and women-business owners in the construction industry

middot AGC supports the National Association of Women in Construction (NAWIC) which provides professional development and other services to its members

middot AGC routinely supports legislative efforts aimed at supporting small businesses and encouraging small business participation

middot AGC recently formed a Diversity and Inclusion Committee comprised of both prime and DBE participants The purposed of the committee is to expand opportunities for DBE members and to help AGC consider diversity in decision-making Recently AGC approved a deeply discounted introductory dues structure for certified DBE members

middot AGC is a WSDOT partner on the new mentorproteacutegeacute program

AGCrsquos experience has been that the most effective approach is to help make emerging businesses successful through outreach training and public policies that will grow their capacitymdashnot by imposing mandates without clear evidence as to the mandates feasibility

2 WSDOTrsquos Proposed Goalrsquos Impacts To The Construction Industry

WSDOTrsquos Proposed Goal is 190 The Proposed Goal is based upon the recent Collete Holt amp Associates (CHA) Disparity Study released in 2017 With respect to availability the Disparity Study reports the following weighted availability for FHWA-Funded projects

Thus the 190 goal factors in Black Hispanic Asian Native American and White Women into its availability As indicated however this 19 goal raises a number of concerns

a WSDOTrsquos 19 Proposed Goal Represents a Significant Increase Without Concrete Evidence of Available And Capable DBE Firms

First WSDOTrsquos Proposal Goal of 190 represents a significant increase as compared to actual DBE participation (141 in 2014 117 in 2015 and 151 in 2016) as well as the last FHWA proposed goal of 116 for 2014-2018 See WSDOTrsquos Proposed Goal and Interim FHWA Overall DBE Goal Methodology FFY 2014-2018 The Proposed Goal is 74 more than the last goal which represents a 638 increase and a 52 increase over the average actual utilization for 2014-2016 While Contractors were exceeding the previous 116 goal this is primarily based on the fact that WSDOT previously requested a waiver to consider non-women-owned businesses and the waiver was not granted and effective until June 2017 (meaning that for 2014-2016 women were counted towards race-conscious goals and inevitably a higher overall percentage of DBE firms were utilized)

Contractors struggle to meet present DBE goals due to the relatively low availability of experienced and certified DBE firms By increasing the goal WSDOT is understandably trying to increase the participation of underrepresented firms Drastically increasing the goals (by over 5 of actual utilization) without concrete evidence that there is sufficient availability andor capability of such firms however will have the opposite effect Notably this lack of availability and capacity of DBE firms was discussed in detail in the Disparity Study For example the CHA Disparity Study notes a number of concerns of DBE firms while technically ldquoavailablerdquo with respect to the goal percentages are unable to meet the requirements necessary to fulfill the contract including purchasing the equipment necessary having available labor and ability to meet insurance and financing requirements Thus while there may be ldquoavailablerdquo firms there is not clear evidence (and if fact evidence to the contrary) that those available firms are capable and available to perform the majority of the FHWA-Funded contracts let by WSDOT

An additional example affecting DBE capability and availability that is not factored into the CHA Disparity Study or WSDOTrsquos Proposed GOAL is DBE ability to enter into Project Labor Agreements (ldquoPLAsrdquo) WSDOT has indicated their interest in pursuing a PLA AGC Members have raised concerns based on repeated experiences that many DBE firms due to the administrative and cost impacts refuse to enter into PLAs precluding those firms from performing certain work or increasing costs Again this lack of ability (or refusal) to perform should also be factored into WSDOTrsquos Proposed Goal which is not currently the case

b The Proposed Goal Does Not Account For The Current Non-Minority Woman Owned Business Waiver Still In Place

Second despite the significant increase WSDOT does not account for the current waiver of non-minority women owned businesses that remains in place As noted in WSDOTrsquos proposal comments WSDOT previously sought and received a waiver of the regulation that White females as a group are presumptively disadvantaged This waiver was heavily criticized by many including AGC and the results of the most recent CHA Disparity Study confirmed that White females are presumptively disadvantaged and do not enjoy a level playing field for USDOT-assisted contracts Therefore the CHA Disparity Study recommends that this group be returned to the status of goal credit eligibility WSDOT has sought a recession of the waiver but has not yet to our knowledge received a rescission of the waiver Nevertheless the 19 Proposed Goal still includes White women In fact of the 19 availability percentage White women represent 103 (over half) Accordingly for WSDOT to proceed with the 19 goal WSDOT must receive the rescission of the waiver for this goal to be even remotely possible to achieve If the rescission is not received the Proposed Goal must be adjusted

C The Proposed Goal Does Not Account For Availability Differences Across The State

Third the Proposed Goal does not account for availability difference across the state Eastern Washington contractors with an even scarcer pool of available and qualified DBE firms in the area as is the case now will be forced to subcontract to Western Washington firms paying transportation and per diem premiums for such work The CHA Disparity Study again provides numerous excerpts of anecdotal evidence demonstrating that the goals in Eastern Washington are too high A few of the contractor comments on the topic are as follows

When you apply those same goals to a different geographic region a different project site for a large firm to meet those goals is difficult because theres not necessarily the expertise in parts of the project that were submitting on

Theres very few DBEs over here [in Eastern Washington] Next year theres going to be even more work over here What are we going to do with all these goals We always meet the goals like I said youve got three four DBEs over here to do all the work and then they cant perform

There are just no [minority-owned] DBEs available in eastern Washington

See CHA Disparity Study at p 54 Again these are factors that should be taken into account in developing the Proposed Goal or at the very least its application WSDOTrsquos Proposed Goal however is silent as to this significant issue

When the lack of available firms with the capacity to perform significant DBE projects is coupled with the increased goals the price of WSDOT contracts will inevitably increase to the significant detriment of Washington taxpayers and the public entities Inevitably with a lack of available qualified firms the lack of competition will become evident and small qualifying contractorsrsquo prices will increase due to supply and demand principles as they become selected for projects and less able to take on additional work These increased DBE contract values will be passed on to the public agency and taxpayers which translates into fewer dollars available for the sorely needed and promised infrastructure upgrades In addition the instance of bid protests will inevitably increase potentially delaying projects and further diverting agency resources from badly needed infrastructure upgrades to resolving unnecessary disputes or rebidding the projects altogether

Finally faced with such drastic and potentially impossible requirements if adjustments are not made contractors may focus more on demonstrating good faith efforts Both a contractor who meets the required goal and a contractor that demonstrates good faith efforts are eligible for award It is likely that the contractor relying upon good faith effortsmdashwho will have a lower price than the other contractor who sacrificed price to actually meet the goalmdashwill be selected by the public agency This outcome will erode the total percentage participation of eligible firms and would clearly be inapposite of WSDOTrsquos intentions

3 Conclusion and Request

AGCrsquos members have asserted these and multiple other concerns Implementing an increased goal across the state and all contracts without clear evidence of available DBEs capable of performing the work and meeting the project requirements will have significant and far-reaching impacts on the construction industry many of which work against the aim of the Proposed Goal itself AGC requests WSDOT reconsider its Proposed Goal of 19 and make adjustments to account for the capability of DBE firms the lack of a rescission of the non-minority waiver and the lack of available DBE firms in parts of the state This Proposed Goal and its impacts on the construction industry will be irrevocable and will be to the detriment of taxpayers It is prudent to address these adjustments before implementing the Proposed Goal

Very truly yours

David DrsquoHondtCheryl Stewart Executive Vice President AGC of WashingtonExecutive Director Inland Northwest AGC

AGC of Washington bull 410 11th Avenue SE 203 Olympia WA 98501

Inland Northwest AGC bull 4935 E Trent Avenue Spokane WA 99212

image3jpeg

image1png

image2emf

image4png

image5jpeg

From Steve SmithTo WSDOT Disparity StudyCc Bayne JackieSubject 19 DBE RequirementDate Thursday December 14 2017 31947 PMAttachments DBE List and NAICS Listingpdf

Disparity Committee I recently read in The Daily Journal of Commerce that WSDOT plans to adopt a 19 DBEstandard for all FHWA funded projects early next year Our company S amp K Painting Inc is abridge painting company which is based in and works exclusively in Oregon and Washington Ihave been the owner of this firm since 1978 when it was first established My concerns aboutthe proposed 19 DBE requirement is as follows 1 There are very few opportunities for subcontract work on bridge repaint jobs These jobsare usually limited to cleaning and painting the bridge The only other facet of the project istraffic control which is almost always 3 or less of the project total cost The traffic controldoes provide a very good subcontracting opportunity 2 The NAISC code of 238320 includes bridge painting but also includes house painting wallcovering rust proofing etc which have almost no similarities to bridge painting When thiscode is used to determine the number of available firms (DBE or otherwise) that are availablefor bridge painting project this badly skews the numbers I would suggest that bridge paintingcontractors make up less than 5 of all firms in NAISC code 238320 3 If future WSDOT bridge painting projects require a 19 DBE participation A The qualified pool of DBE subcontractors available to submit pricing on any facetother than traffic control will be very limited I reviewed a list of 19 certified DBE firms listedunder painting at the WSDOT website and only recognized one firm from past projects B The number of prime bidders and competition will fall The state will incur highercosts due to this fact C Prime bidders will be forced to subcontract unqualified contractors just to be eligiblefor contract awards This will likely reduce the quality of the finished project Thank you for considering my concerns I may not have verbalized my thoughts as well as Iwould have liked but I have been in this business for almost 40 years and truly believe what Ihave said Sincerely

Steve Smith President

SampK Painting incP O BOx 390clacKamaS OregOn 97015Phone (503) 557-5544Fax (503) 557-5566Cell (503) 260-5280Steveskpaintingcom

From Lei WuTo Bayne JackieSubject comments on WSDOT proposed DBE goalDate Thursday December 14 2017 94925 PM

To Whom It May Concern

Below is my comments

The WSDOT recommended DBE Goal for FHWA contracts of 190 is a small andimportant increase that can further achieve equity in WSDOTFHWA contracting I am insupport of the 19 DBE Goal

I also want to express my appreciation for the thoroughness of the WSDOT Disparity studyand how the study disclosed the disparity in WSDOT contracts that do not have a DBE orWBE goal ndash further reinforcing that all women-owned firms and minority owned firms faceequity issues

I remain concerned with the methodology required by the Code of Federal Regulations andcase law because of the dependence on the availability of firms in the calculation Anunintended consequence of removing either gender or race from the goal is that many of thesefirms would go out of business the availability decreases and the formula then results in asmaller DBE goal

Thanks

Lei

Lei Wu PE AICP

Principal CSL Consulting

LeiWucsl-consultingnet

(425)562-6275

From Stephanie SimpkinsTo WSDOT Disparity StudySubject DBE Contracting goalsDate Wednesday November 29 2017 20259 PM

My name is Stephanie Simpkins and I own North Star Enterprises It is a large womanowned traffic control company located in Spokane Washington My mother founded thecompany in 1984 and I have worked in this family owned business most of my life Ipurchased the business from her in 2013 and have been sole owner since then My company thrived under the Disadvantaged Business Enterprise (DBE) Programimplemented by Washington Department of Transportation and administrated by United StatesDepartment of Transportation What started as a small business with one truck and a fewemployees has grown over the years to be one of the largest traffic control companies in thestate and employee countless people every construction season It has not been an easy roadover the years being a woman in the construction industry never is and it is hard to say wherewe would be now if it werenrsquot for the assistance of the DBE program As you know in June of 2017 majority women were removed from the DBE program basedon a disparity study conducted in 2012 On March 2014 Washington Department ofTransportation requested a wavier to remove majority women from the DBE program Thishas had an immediate and drastic impact on my business and all who work for me From themoment the waiver was approved and my company could no longer be used as a condition ofaward at bid time I began losing work Most recently the 2018 North Central Region ChipSeal which we have worked on for the last 10 years This contract provides work forapproximately 40 employees for the entire construction season I have already been told byseveral contractors that with such a high UDBE goal they wont even be able to consider mefor this project This loss along with several other smaller contracts to date are painting avery dismal future for my business With all of this turmoil surrounding the future of my business I find it frustrating to say theleast that WSDOT has chopped me off at the legs by not allowing my firm to count for theCOA but can use the little participation I may still contribute to help them reach their overallstate goal How is this fair If the contractors canrsquot utilize my business than neither shouldWSDOT As far as setting future state DBE contracting goals it looks as if the bar will beraised once again all while excluding the largest subset of useable DBErdquoS To me raising theoverall state goal at this time (which is already challenging to meet) with women DBErsquosexcluded from the program seems horribly ill timed

From Karen R BannishTo Bayne JackieSubject DBE GoalDate Tuesday December 5 2017 32549 PM

Hello Jackie ndash thank you for the webinar today concerning the proposed Overall DisadvantagedBusiness Enterprise Goal for the Federal Highway Administration I understanding the DisparityStudy much better now and checked the document you mentioned on the WSDOT website Pacific County is located in the Southwest corner of the State of Washington The tip of the LongBeach Peninsula would be 2 frac12 hours from Interstate 5 Our federal work primarily includes strictlyoverlay projects with 12 or fewer items of work included in the contract When bidding a project(our contracts are usually less than $500000) we sometimes received a single bid from the process Due to our proximity and the small cost for the work it is difficult to entice DBE participation Thereare simply no items of work that can be performed Having a mandatory DBE goal placed upon theproject in a rural area simply to meet the disparity guidelines will only increase the cost of theproject We feel the goals should be set in balance with the cost of the project and the items of work and notsimply directed to meet the overall goal

Karen BannishSenior Engineering TechnicianPacific County Department of Public Works211 North Commercial StreetRaymond WA 98577(360) 875-9368

From Dawn EgbertTo Bayne JackieSubject DBE Program Disparity StudyDate Tuesday December 5 2017 23825 PM

Hi JackieThank you for the great information on the call today You talked about the small works rosterbriefly We had a conversation in our office today about small contractors who are signed up on thePort of Vancouverrsquos small works roster Our team has had opportunity to talk to some of thecompanies on our roster who are women owned or minority owned businesses but they arenrsquotsigned up as a DBE firm When asked about that theyrsquove mentioned that they donrsquot want to fill outthe additional paperwork required to obtain the certification as a DBE As for the DBE goal at 19 it doesnrsquot seem to present an issue for the majority of our projects ndashespecially those where we would apply FHWA funds if granted However if we did happen to have aproject that didnrsquot include classifications of work where DBE certified participants are availablewould there still be an exception or a good faith efforts clause Thanks again for your time Dawn EgbertProcurement Services Manager3103 NW Lower River Road Vancouver WA 98660Direct 3609921102 | Cell 360448-9867 | Main 3606933611 | Fax 360735-1565degbertportvanusacom | wwwportvanusacom | available port properties Leadership | Stewardship | Partnership

From Feist MarleneTo WSDOT Disparity StudyCc Simmons Scott M Twohig KyleSubject Disparity Study Comments from City of SpokaneDate Friday December 15 2017 52226 PMAttachments image010png

image011pngimage012png

December 15 2017 Jackie BaynePolicy amp Reporting ManagerOffice of Equal OpportunityWashington State Department of TransportationPO Box 47314Olympia WA 98504-7314 RE Proposed DBE Contracting Goal for Highway Projects Dear Ms Bayne The City of Spokane would like to provide comments related to proposed DisadvantagedBusiness Enterprise Goal for Federal Highway Administration (FHWA) contracts by theWashington State Department of Transportation (WSDOT) Office of Equal Opportunity Manyof our projects receive funding from FHWA and as such the proposed new goals areapplicable to City work The City is supportive of the programrsquos purposemdashldquoto create a level playing field for firmsowned and operated by disadvantaged individuals wanting to participate in federally assistedhighway transit or aviation programsrdquo However the City is concerned about the ability to achieve the proposed utilization rate of upto 19 percent for DBEs in Eastern Washington considering the low number of DBEs in ourregion and the record construction under way in the City and in our region WSDOTrsquos DBE Program Disparity Study notes ldquoContractors in Eastern Washington repeatedlyreported that the goals on projects in their area are too highrdquo The Inland NorthwestAssociated General Contractors group notes that only about 12 DBEs in construction fields areavailable in the greater Spokane area Meanwhile the City has performed record construction in each of the last three years withproject totals hovering around $100 million Our City work has been bolstered by anaggressive program to improve water quality in the Spokane River Our local school districtsand our neighboring jurisdictions also have aggressive construction programs right now

Additionally we expect WSDOTrsquos work in this region to accelerate as North Spokane Corridor(NSC) construction proceeds At times our area is reaching the limits overall of our contractingcommunity the City has worked to release its projects in the first quarter of the year as muchas possible to lock in contractors and receive better pricing The capacity of existing DBEs in our region simply cannot meet that current high demand Some DBE firms are tempted to agree to more work in these times but we have found that insome cases DBEs have stretched themselves too thin On two recent City projects generalcontractors were unable to meet DBE goals as a result of DBE firms that couldnrsquot fulfill theircommitments for providing personnel or equipment It also seems implausible to expect DBEs from the West Side to mobilize teams to work on Cityof Spokane projects in large numbers In fact the Disparity Studyrsquos author responded at arecent meeting on this topic that a DBE from the West Side only very rarely completes workon the East Side of the state We would also be concerned about moving the good-paying jobs that construction providesoutside of our region The Cityrsquos median household income is $44350 considerably lower than theState of Washington MHI of $64129 and the Seattle MHI of $77351 Our leaders are working tocreate good-paying jobs for our citizens not export them to an already wealthier part of the state Additionally these projects are also funded with local dollars and our citizens expect their money toput their neighbors to work With the above considered the City is seeking

middot DBE goals for the 2018-2020 compliance period for Eastern Washington that arereflective of the current availability of DBE firms in our region

middot The re-inclusion of non-minority women owned DBEs in achieving DBE goals InSpokane non-minority women owned DBEs make up the majority of the availableDBEs And current information shows that women in Spokane overall still lag behindmen in opportunities and wages The Cityrsquos own ldquoGender and Racial Equityrdquo reportfrom 2016 noted that overall working women earned 783 percent of the earnings ofworking men in 2014 down from 827 percent in 2009 We need to lift up all women

middot The development of WSDOT programs to encourage the growth of existing andnew DBEs who can be used on street and highway projects We are encouraged by theproposed mentorproteacutegeacute program to increase the number and capacity of DBEs inEastern Washington Programs that address other barriers such as assistance withcompleting documentation or access to bonding capacity also could aid growth ofDBEs

middot The ability for WSDOT to adjust goals on a project if a selected DBE is unable tocomplete its commitments on a project This would help enable our contractors totake a chance on a new or inexperienced DBE to complete work

middot Recognition of local programs that strive to increase diversity in the work force Forexample the City operates a robust apprenticeship program that requires 15 percentof the labor hours on public works jobs greater than $600000 to be performed byapprentices The apprentice programs in our region are stepping up recruitmentefforts and are specifically seeking to recruit more youth women and minorities intoapprentice slots

As we seek to achieve the goal of increasing participation in street and highway constructionby companies owned by disadvantaged individuals we must also acknowledge that businessdevelopment and growth happens over time We must lay the groundwork now to build abase of DBEs that can help us achieve higher utilization goals over time Sincerely Marlene FeistDirector of Strategic DevelopmentPublic Works amp UtilitiesCity of Spokane

Marlene Feist | City of Spokane | Public Works Director of Strategic Development5096256505 | cell 5097109214 | mfeistspokanecityorg | spokanecityorg

From Hall MattTo WSDOT Disparity StudySubject FW WSDOT News - WSDOT seeks comments on proposed DBE contracting goal for highway projectsDate Friday December 15 2017 11956 PMAttachments WSDOT proposed DBE goal through 2020pdf

From Hall Matt Sent Friday December 15 2017 117 PMTo BayneJwsdotwagovCc Keniston Rick (KenistRwsdotwagov) MolyneKwsdotwagov SusanWilsonclarkwagovSubject WSDOT News - WSDOT seeks comments on proposed DBE contracting goal for highwayprojects Hello Jackie Please see our comments attached regarding the WSDOT proposed DBE goals Thanks for the opportunity to provide comments Matt HallClark County Public Works Washington State Department of Transportation ndash NEWSHeadquarters ndash 310 Maple Park Avenue SE ndash Olympia WA 98504-7314 ndash 360 705-7000 FOR IMMEDIATE RELEASEOct 30 2017 Contact Jackie Bayne Office of Equal Opportunity 360 705-7084

WSDOT seeks comments on proposed DBEcontracting goal for highway projectsComments accepted through Dec 15OLYMPIA ndash Contractors trade and labor organizations small and disadvantaged businessesand all others who may be interested in working with the Washington State Department ofTransportation are invited to comment on the agencyrsquos proposed Disadvantaged BusinessEnterprise goal for Federal Highway Administration contractsDBE goals for transportation projects that receive federal funds represent a percentage of thevalue of work in which minority- and women-owned businesses should participate WSDOTis proposing a 19 percent overall DBE participation goal on Federal Highway Administration-funded projects for federal fiscal years 2018 through 2020Once submitted to FHWA early next year the goal will be effective through Sept 30 2020The purpose of the DBE program is to create a level playing field for firms owned andoperated by disadvantaged individuals wanting to participate in federally assisted highwaytransit and aviation programsConnecting with communitiesWSDOT will host a series of public meetings to provide opportunities for individuals tocomment in person

Spokane

2 ndash 4 pm Tuesday Nov 28WSDOT Eastern Region Headquarters2714 N Mayfair St Spokane

Vancouver

2 ndash 4 pm Wednesday Nov 29WSDOT Vancouver Headquarters11018 NE 51st Circle Vancouver

Seattle

2 ndash 4 pm Thursday Dec 7WSDOT Northwest Region Headquarters15700 Dayton Ave N Shoreline

Other ways to provide commentThose who are unable to attend one of the meetings can participate in a no-cost webinar from230 ndash 430 pm Tuesday Dec 5 Registration for the webinar is required Those interested inparticipating should email DisparityStudywsdotwagovWritten comments can also be submitted by mail or emailJackie Bayne Policy amp Reporting ManagerWashington State Department of TransportationOffice of Equal OpportunityPO Box 47314Olympia WA 98504-7314DisparityStudywsdotwagovDocuments detailing the methodology used for determining the FHWA DBE goals areavailable for review at all WSDOT region headquarters offices and at the TransportationBuilding 310 Maple Park Ave SE Olympia They are also available online atwwwwsdotwagovequalopportunityWSDOT will consider all written comments received through Friday Dec 15 2017 Hyperlinks within this release

WSDOT Region offices wwwwsdotwagovContactofficelocationhtmregion

WSDOT keeps people businesses and the economy moving by operating and improving the statestransportation systems To learn more about what were doing go to wwwwsdotwagovnews forpictures videos news and blogs Real time traffic information is available at wwwwsdotcomtraffic or bydialing 511 Americans with Disabilities Act (ADA) InformationAccommodation requests for people with disabilities can be made by contacting the WSDOTDiversityADA Affairs team at wsdotadawsdotwagov or by calling toll-free 855-362-4ADA (4232)Persons who are deaf or hard of hearing may make a request by calling the Washington State Relay at711 Title VI Statement to Public It is WSDOTrsquos policy to assure that no person shall on the grounds ofrace color national origin or sex as provided by Title VI of the Civil Rights Act of 1964 be excluded fromparticipation in be denied the benefits of or be otherwise discriminated against under any of its federallyfunded programs and activities Any person who believes his or her Title VI protection has been violatedmay file a complaint with WSDOTrsquos Office of Equal Opportunity For additional information regarding Title

VI complaint procedures andor information regarding our non-discrimination obligations please contactOEOrsquos Title VI Coordinator at 360-705-7090 To unsubscribe to WSDOT media releases please reply and type REMOVE in the subject line

This e-mail and related attachments and any response may be subject to public disclosure under state law

From Cochrane EmilieTo WSDOT Disparity StudyCc Eugenis Susan Cowlitz Co Public Works - Brad BastinSubject Proposed DBE GoalsDate Thursday December 14 2017 85006 AMAttachments image002png

DBE Goals - Commentspdf

Please see the attached letter with comments regarding the proposed DBE Goals Ahard copy will be sent out today

Thanks

Emilie CochraneCowlitz County Public Works1600 ndash 13th Avenue SKelso WA 98626360-577-3030 ext 6523

From Michelle WolcottTo Bayne JackieCc Robideau Christopher LSubject RE DBE Contracting Goal CommentsDate Tuesday November 7 2017 65448 AMAttachments image001png

Thank you JackieWhat a relief to know that we have been heard and are not the only small business facing thisstruggle Your email is comforting

Yes you can provide us with additional assistanceLet me introduce my boss and Senior Vice President of Red Plains Professional Chris Robideau

Chris will be your contact from here since I will be leaving the company November 17th As a WA DBE we are ldquoeligible for limited DBE Support Services (SS) funding when funds becomeavailablerdquo When will this happen And are we registered or on a list to receive fundingIs the WSDOT ICR Training a prerequisite for the funding Or just helpful knowledge

Thank you for your time Jackie I will follow through with the training

Michelle Wolcott EIT Quality Control Engineer

2103 NE 129th Street Suite 201 Vancouver WA 98686 Office (360) 448-7999 Fax (360) 258-0274

wwwred-plainscom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Monday November 6 2017 332 PMTo Michelle Wolcott ltMichelleWolcottred-plainscomgtSubject RE DBE Contracting Goal Comments

Hi Michelle

Thank you for your interest in doing business with WSDOT I apologize for the lack of informationyou have come up against in your attempts to attain access to WSDOT ICR program

As you may well know WSDOT has recently completed a state wide agency specific diversity studyAnecdotal comments submitted with the study concur with your experience Not only did somerespondents find it difficult to become prequalified they also commented that the required indirectrate of 110 percent is too low to be profitable These requirements are currently under advisementby WSDOT and new DBE program requirements are currently in the process of seeking public input

As you are an OMWBE certified DBE in Washington State you will be eligible for limited DBE SupportServices (SS) funding when these funds become available At that time funds may become availableto assist you in your struggle to attain ICR eligibility Here is a link to WSDOTrsquos Indirect Cost RateTraining httpswwwwsdotwagovAuditICRTraininghtm If you would like me to find additionaltraining or information please let me know

If I can provide additional assistance of information please let me know

Best Regards

Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Michelle Wolcott [mailtoMichelleWolcottred-plainscom] Sent Tuesday October 31 2017 835 AMTo WSDOT Disparity Study ltDisparityStudyWSDOTWAGOVgtSubject DBE Contracting Goal Comments

HelloI have been in contact with WSDOT for 6 months sharing my disparaging story of beinga small DBE unable to submit SOQs for projects requiring a WSDOT Audited IndirectCost Rate Approval We do not have an in-house accountant and our outsideaccountant has explained to get all the paperwork together for WSDOT would take 40hours of work $9000 annually We cannot justify this cost to submit on a project thatwe may not acquire We have been directed to seek financial assistance from WSDOT Federal SBA andWashington State Office for Women and Minority Owned Enterprises all of whichprovided negative responses

As a DBE business in 11 states we are supporting the 19 incentive for federallyfunded contracts but we are frustrated in the fact that we will not be one of the luckyfew to participateWe have been in business 20 years From our Vancouver Washington office our clientsare the Native American tribes across the country with all contracts federally funded This summer alone the WSDOT ICR Approval has squashed our ability to submit on twoprojects that we were perfectly qualified to performI have attached previous emails to show a sample of who I have been dealing with

Thank you

Michelle Wolcott EIT Quality Control Engineer

ltimage001pnggt

2103 NE 129th Street Suite 201 Vancouver WA 98686 Office (360) 448-7999 Fax (360) 258-0274 wwwred-plainscom

From Michelle Wolcott Sent Monday July 10 2017 954 AMTo Harvey Schatzie ltHarveySwsdotwagovgtSubject RE WSDOT Indirect Cost Rate Process

Good Morning Schatzie

This is Michelle Wolcott from Red We spoke Friday June 30th about the ICRprocess and you were very encouraging I relayed the information to my boss who ishere in Vancouver then he shared with the president bookkeeper and our accountantin Oklahoma We had FAR compliance with Oklahoma DOT in 2015 so we are noteligible for the Safe Harbor Program Our account said our timekeeping system doesnot breakdown the hours and pay in the format WSDOT wants to have it presented andto get the documents in order would take the CPA and an assistant $9000 in paidhours of work It turns out this would have to be annually The other option is to hirean outside CPA firm to do the audit for us at $20000 annually

Our president said in the past we received funding assistance from the Stateof Oklahoma to get our ICR approval Does WSDOT offer any financial assistance for small businesses to reach compliance We are also a DBE in WA I have requested the same information from WA PTAC at theVancouver Chamber of Commerce and from WA Office of Minority and Women OwnedBusiness Enterprises and they both said there was nothing but suggested to askWSDOTThank you for your helpMichelle Wolcott EIT

Hello Michelle sorry but I am not aware of any grants But I was looking at this andthere is a POC at the bottom you may try to discuss the audit issuesHollyHolly BoehmeBusiness Opportunity Specialist | 8(a) Business Development ProgramUS Small Business Administration bull Seattle District Office

Hello Michelle -

Thank you for your email Im not aware of any funding available for thispurpose but do agree its quite a bit for a DBE firm to have as an expense Mostof the firms I work with do a lot more work on the Oregon side so perhaps thereare programs available that I just havent heard of Im copying my colleagueHoly Boehme in our Seattle District Office to see if they are aware of any suchassistance

Holly might there be some small business incubators or other resources availablein WA to help a small firm with the expense of getting a WSDOT AuditedIndirect Cost Rate approval Please reply all with anything you may have

Thank you

Yuri Yoshida Dyson Business Opportunity SpecialistUS SMALL BUSINESS ADMINISTRATION Portland District OfficePhone 503-326-6692 Fax 202-292-3872 wwwsbagovor

From Troy HalbergTo Bayne JackieSubject Re DBE Goal CommentsDate Wednesday December 13 2017 35533 PM

JackieToday was another example of why the goals should not be raised There were 2 jobs which Iwas low on and did not get due to the high goals This is exactly what will happen when thegoals get raised The first job was the 9180 Anacortes Ferry Paving Northeast Electric $244924 and UDBE $318000 Second job was the 9172 SR 9 East Junction Job Northeast Electric $68503 and UDBE $76300

Does this seem like a good way to spend the tax payer money I do not see how we are tosurvive if the goals get to 21

Thanks

Troy HalbergOffice360-225-7004Cell360-931-3990Fax360-225-7001

On Thu Nov 30 2017 at 1131 AM Bayne Jackie ltBayneJwsdotwagovgt wrote

Good Morning Troy

Thank you for taking the time to provide us with your experiences with the DBE Program TheWashington State Department of Transportation takes the public involvement process veryseriously and your comments will be taken into consideration prior to a final decision regardingthe overall DBE program goal

If I can be of further assistance please let me know

Best Regards

Jackie Bayne

Policy and Reporting Manager

WSDOT Office of Equal Opportunity

Work (360) 705-7084

Cell (360) 338-5783

BayneJwsdotwagov

From Troy Halberg [mailtotroyhnellcnet] Sent Wednesday November 29 2017 144 PMTo WSDOT Disparity Study ltDisparityStudyWSDOTWAGOVgtSubject DBE Goal Comments

If these goals are to be set that high this would make us as a non DBE small contractor at amajor disadvantage With these high of goals this is like handing all of the DBE electricalcontractors every job These general contractors will have no option but to use thembecause of the goals This should not go into effect We have been low on several jobs in thepast and have not gotten them do to the goals being 18 When this goes on it puts all therest of us contractors at a disadvantage Please consider the smaller non DBE contractorsthat are looking to survive as well

Thanks

Troy Halberg

Office360-225-7004

Cell360-931-3990

Fax360-225-7001

From Daniel Seydel IITo Bayne JackieCc Key Earl daneiwashingtonorg Nadeem Ismail Mussie Tewelde (mteweldehydro2geotechcom)

graceflyrightaolcom Mary Wenner Watkinson LarrySubject Re Seydel Dan - WSDOT Disparity Study Presentation Public TestimonyDate Friday December 8 2017 30323 PM

Jackie

It was my hope that the comments would be put into record I was also hoping that you wouldnot have to be the one having to formulate responses for each clarification If that is the caseI know you are swamped and will then I just ask my comments be only part of the recordHowever if there is dedicated staff that is going to be compiling and responding to theclarification then the below questions would be the priorities of most interest

These were questions unrelated to the disparity study and hopefully should be doable

1) Do you have any reports on your outcomes from the past 5 years on DBE support servicesand specific key performance measures from previous years funding (ie how many firmsutilized what was the objectives were objectives met did outcomes meet total satisfaction ifnot why next steps what was the firms capacity before and after services were performed (iesales employees bonding if applicable insurance equipment line of credit if applicablenumbertype of customers how are they doing now etc))

2) What other changes or improvements other than allowing DBES to select their own serviceproviders and a staff change will be a part of this new program

3) Was consideration to provide the new mentor protege consultant rather than separating theactivities into support services andor technical assistance

Disparity study clarifications

1) Will WSDOT consider sponsoring legislation to support the policy changes and goalincreases to insure manditory goals wont be necessary

a) If not what measures will you grant primes to operate outside the box (ie entertain bestvalue over low bid modify responsiveness by subs to require adherence to meeting voluntarygoals developing standards around federally funded gccm and other low bid procurementsthat give powers to primes to meet objectives including but not limited to mentor protegerelationships joint ventures bond waiving techniques cash flow assistance material andequipment acquisition manufacturer development specifications that have only DBES orinclude equal number of DBES as non DBES as approved installers etc)

2) Will the disparity study consultant be available for implementation or information gatheringfrom other regions

5) Will WSDOT be hiring more diverse staff amp professionaltechnical service providers inother departments outside OEO to insure policies commitments and evaluations areperformed in manner that improves diversity that reflects the communities WSDOT serves bythoughtful and legal efforts increase participation thus creating successful outcomes includingpartnerships and collaborations

Thank you and Merry Christmas

Hi Dan

Thank you for providing such thoughtful public comments questions and testimony

Regarding your public testimony below - I do not believe I am not able to answer questions ifthey are public comments Please let me know what part of this email you would likeclarification on and what part you would like considered public testimony

I appreciate your thoughtful consideration of WSDOTrsquos implementation of our civil rightsprograms

Best Regards

Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

DIDaniel Seydel IIFyi Daniel J Seydel II Platinum Group LLC 2064060844 f) 2062999934wwwplatinumbusinessgroupcom Small Business is the Answer FREE TRAINING FORENTREPRENEURS amp JOB SEEKERS - Polish your skills or make your firm standout thanksto the EntrepreneurialThu 233pDI

Daniel Seydel IIThu 1272017 1123 AMInbox Sent ItemsShow all 7 recipientsTobaynejwsdotwagov ltBayneJwsdotwagovgtJackie

Per your request below are my questions and comments some of which were verbally sharedyesterday

Congratulations on receiving the blessing of additional technical assistance dollars andcompleting the DBE Disparity Study per your report

1) Do you have any reports on your outcomes from the past 5 years on DBE support servicesand specific key performance measures from previous years funding (ie how many firmsutilized what was the objectives were objectives met did outcomes meet total satisfaction ifnot why next steps what was the firms capacity before and after services were performed (ie

sales employees bonding if applicable insurance equipment line of credit if applicablenumbertype of customers how are they doing now etc))

2) What other changes or improvements other than allowing DBES to select their own serviceproviders and a staff change will be a part of this new program

3) Was consideration to provide the new mentor protege consultant rather than separating theactivities into support services andor technical assistance

Disparity study clarifications andor comments

1) Will WSDOT consider sponsoring legislation to support the policy changes and goalincreases to insure manditory goals wont be necessary

a) If not what measures will you grant primes to operate outside the box (ie entertain bestvalue over low bid modify responsiveness by subs to require adherence to meeting voluntarygoals developing standards around federally funded gccm and other low bid procurementsthat give powers to primes to meet objectives including but not limited to mentor protegerelationships joint ventures bond waiving techniques cash flow assistance material andequipment acquisition manufacturer development specifications that have only DBES orinclude equal number of DBES as non DBES as approved installers etc)

2) Will the disparity study consultant be available for implementation or information gatheringfrom other regions

3) What lessons did WSDOT learn that it did not know from the other study(s)

4) What would WSDOT do different (ie scope time line process approach etc)

5) Will WSDOT be hiring more diverse staff amp professionaltechnical service providers inother departments outside OEO to insure policies commitments and evaluations areperformed in manner that improves diversity that reflects the communities WSDOT serves bythoughtful and legal efforts increase participation thus creating successful outcomes includingpartnerships and collaborations

Daniel J Seydel IIPlatinum Group LLC 2064060844f) 2062999934wwwplatinumbusinessgroupcom

Small Business is the Answer

FREE TRAINING FOR ENTREPRENEURS amp JOB SEEKERS - Polish your skills or makeyour firm standout thanks to the Entrepreneurial Institute of Washington

httpswwwyoutubecomchannelUCKL5YeVxL29HnNxqnb6hmXA

LIKE US on FaceBook if an Active Professional Development workshop provided by EIW

Construction University helps your firm or has benefited you

httpswwwfacebookcomEIWashingtonref=hl

From Bayne Jackie ltBayneJwsdotwagovgtSent Friday December 8 2017 10139 PMTo Daniel Seydel IICc Key Earl daneiwashingtonorg Nadeem Ismail Mussie Tewelde(mteweldehydro2geotechcom) graceflyrightaolcom Mary Wenner Watkinson LarrySubject RE Seydel Dan - WSDOT Disparity Study Presentation Public Testimony Hi Dan Thank you for providing such thoughtful public comments questions and testimony Regarding your public testimony below - I do not believe I am not able to answer questions if theyare public comments Please let me know what part of this email you would like clarification on andwhat part you would like considered public testimony I appreciate your thoughtful consideration of WSDOTrsquos implementation of our civil rights programs Best Regards Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov From Daniel Seydel II [mailtodanplatinumbusinessgroupcom] Sent Thursday December 7 2017 1123 AMTo Bayne Jackie ltBayneJwsdotwagovgtCc Key Earl ltKeyEwsdotwagovgt daneiwashingtonorg Nadeem Ismailltnipaintingearthlinknetgt Mussie Tewelde (mteweldehydro2geotechcom)ltmteweldehydro2geotechcomgt graceflyrightaolcom Mary Wennerltmwenn0108yahoocomgtSubject Seydel Dan - WSDOT Disparity Study Presentation Public Testimony Jackie

Per your request below are my questions and comments some of which were verbally sharedyesterday

Congratulations on receiving the blessing of additional technical assistance dollars andcompleting the DBE Disparity Study per your report

1) Do you have any reports on your outcomes from the past 5 years on DBE support servicesand specific key performance measures from previous years funding (ie how many firmsutilized what was the objectives were objectives met did outcomes meet total satisfaction ifnot why next steps what was the firms capacity before and after services were performed (iesales employees bonding if applicable insurance equipment line of credit if applicablenumbertype of customers how are they doing now etc))

2) What other changes or improvements other than allowing DBES to select their own serviceproviders and a staff change will be a part of this new program

3) Was consideration to provide the new mentor protege consultant rather than separating theactivities into support services andor technical assistance

Disparity study clarifications andor comments

1) Will WSDOT consider sponsoring legislation to support the policy changes and goalincreases to insure manditory goals wont be necessary

a) If not what measures will you grant primes to operate outside the box (ie entertain bestvalue over low bid modify responsiveness by subs to require adherence to meeting voluntarygoals developing standards around federally funded gccm and other low bid procurementsthat give powers to primes to meet objectives including but not limited to mentor protegerelationships joint ventures bond waiving techniques cash flow assistance material andequipment acquisition manufacturer development specifications that have only DBES orinclude equal number of DBES as non DBES as approved installers etc)

2) Will the disparity study consultant be available for implementation or information gatheringfrom other regions

3) What lessons did WSDOT learn that it did not know from the other study(s)

4) What would WSDOT do different (ie scope time line process approach etc)

5) Will WSDOT be hiring more diverse staff amp professionaltechnical service providers inother departments outside OEO to insure policies commitments and evaluations areperformed in manner that improves diversity that reflects the communities WSDOT serves bythoughtful and legal efforts increase participation thus creating successful outcomes includingpartnerships and collaborations

Thank you for your hard work

Daniel J Seydel IIPlatinum Group LLC2064060844f) 2062999934wwwplatinumbusinessgroupcom

Small Business is the Answer

FREE TRAINING FOR ENTREPRENEURS amp JOB SEEKERS - Polish your skills or makeyour firm standout thanks to the Entrepreneurial Institute of Washington

httpswwwyoutubecomchannelUCKL5YeVxL29HnNxqnb6hmXA

LIKE US on FaceBook if an Active Professional Development workshop provided by EIWConstruction University helps your firm or has benefited you

httpswwwfacebookcomEIWashingtonref=hl

From Erin EhlingerTo Bayne JackieSubject Support for WSDOTs proposed DBE goalDate Wednesday December 13 2017 115417 AM

I am writing to support the WSDOT recommended DBE Goal for FHWA contracts of 190 I also want to express my appreciation for the thoroughness of the WSDOT Disparity study and howthe study disclosed the disparity in WSDOT contracts that do not have a DBE or WBE goal ndash furtherreinforcing that all women-owned firms and minority owned firms face equity issues I remain concerned with the methodology required by the Code of Federal Regulations and case lawbecause of the dependence on the availability of firms in the calculation An unintendedconsequence of removing either gender or race from the goal is that many of these firms would goout of business the availability decreases and the formula then results in a smaller DBE goal Pleaselet me know how I can help influence a change to the CFR Thank you Erin Ehlinger

Erin Ehlinger PEPresident

24036 SE 47th StSammamish WA 98029erinehlingersmartcitytrafficcom425-221-0320

From Jackie EtterTo WSDOT Disparity StudySubject Why we need mandatory goalsDate Friday December 1 2017 61859 PM

As a DBE participating in bidding process I have found that regardless of the language which claims to insurethat disadvantaged business enterprises shall not be discriminated against the only way to ensure that this does nothappen is by mandating affirmative action goals Having been overlooked time and time again because of my gender when I have submitted bids that are verycompetitive with other bidders is very frustrating I have had many instances of companies using my price to getmy non DBE competitors to lower theirs The voluntary or laudatory DBE goals do nothing to ensure a level playing fieldThe only way to ensure non-discrimination is through mandatory goals

Jackie EtterWest Star Construction of Spokane

Sent from my iPhone

From Claudia HirscheyTo Key Earl Bayne JackieSubject WSDOT DBE Goal - Comment in supportDate Tuesday December 12 2017 61937 PM

Dear Earl and Jackie The WSDOT recommended DBE Goal for FHWA contracts of 190 is a small and important increasethat can further achieve equity in WSDOTFHWA contracting I am in support of the 19 DBE Goal I also want to express my appreciation for the thoroughness of the WSDOT Disparity study and howthe study disclosed the disparity in WSDOT contracts that do not have a DBE or WBE goal ndash furtherreinforcing that all women-owned firms and minority owned firms face equity issues I remain concerned with the methodology required by the Code of Federal Regulations and case lawbecause of the dependence on the availability of firms in the calculation An unintendedconsequence of removing either gender or race from the goal is that many of these firms would goout of business the availability decreases and the formula then results in a smaller DBE goal Sincerely Claudia S Hirschey PETransportation Consulting Servicesclaudiahirscheycomcastnethttphirscheytcscom2068564988 Mobile

From Nate ThomasTo WSDOT Disparity StudySubject WSDOT Proposes DBE goal of 19Date Thursday December 7 2017 42720 PM

The WSDOT should look into similar ways the Federal Gov has handled the equal opportunity forthose that fall under the DBE status and set aside specific projects for the DBErsquos and moreimportantly UDBErsquos so these companies have better chance of landing contracts Maybe a lot 10 ofthe DBE goal to set aside for only DBEs and other 9 goal met as it is done currently with COA onlarger contracts Nate ThomasSenior EstimatorD 5095688085 | C 5099941156331 North Fancher Road | Spokane WA | 99212

The information contained in this email including any attachments is confidential and may beprivileged It is intended only for the person or entity to which it is addressed and no waiver isintended by sending this email If the reader is not the intended recipient you are herebynotified that any review retransmission dissemination or other use of or taking any action inreliance upon this information is strictly prohibited If you have received this email in errorkindly notify the sender by reply email and delete the original message from any computerThank You

From Brian FujiiTo WSDOT Disparity StudySubject WSDOT propsed DBE GoalsDate Thursday December 7 2017 110638 AM

Good morning Jackie

I wanted to comment on WSDOTs proposed DBE goal to 19 I believe WSDOTs plan toincrease the overall DBE goal to 19 will provide greater opportunities for DBE contractorsin different disciplines to participate in federally funded contracts

Without the new DBE requirement and with Proposition 200 there are limited opportunitiesfor DBE contractors in disciplines different than the typical trucking flagging and rebar Inaddition there are no incentives for general contractors to go out beyond the usual truckingflagging and rebar DBE subcontractors

Increasing the DBE goals will provide opportunities for different DBE contractors in differentdisciplines to participate in WSDOT federally funded projects

Thank you for your time

RespectfullyBrian FujiiPresident Subsurface ConstructionP 2063836478F 2069604639MDBE 4M0024998

From Forman StephanieTo Bayne JackieCc Millar Roger christinenhanmailhousegov Claudia Hirschey Sarah Corbin Jiang Yingle

efaulknerenviroissuescom Diana Giraldo Kelly CheesemanSubject WTS - Disparity Study Comment LetterDate Friday December 15 2017 71020 PMAttachments 2017_Dec 15_WTSCommentLetter_WSDOT DBE Goalpdf

Dear Ms Bayne Please find our attached letter which summarizes the WTS Puget Sound Chapterrsquos support foradvancement of women in transportation and our comment letter regarding the recent DisparityStudy Please feel free to contact me if you have any questions or would like to discuss Sincerely Stephanie S Forman PEWTS Puget Sound President Transportation Project Manager

929 108th Avenue NE Suite 1300Bellevue WA 98004D 4254681548 M 2062291745stephanieformanhdrinccom

December 15 2017

Jackie Bayne Policy and Reporting Manager

Office of Equal Opportunity

Washington State Department of Transportation

PO Box 47314

Olympia WA 98504-7314

Dear Ms Bayne

On behalf of the Puget Sound Chapter of Womenrsquos Transportation Seminar (WTS) we would

like to thank the Washington State Department of Transportation for presenting to our

organization the DBE Disparity Study results We very much appreciated the presentation by Earl

Key Director of WSDOTrsquos Office of Equal Opportunity Teresa Berntsen (Director Office of Minority

and Womens Business Enterprises) as well as Leslie Jones (Director Sound Transit Office of Small

Business Development and Labor Compliance)

Following a review of the WSDOT Disparity Study and as a result of consultation with WTS

International we would like to provide WSDOT with our comments for your consideration

As you know WTS is an organization focused exclusively on attracting retaining and advancing

women in transportation By the year 2018 there will be thousands of vacancies in the

transportation industry for qualified professionals and while women account for more than half of

the worldrsquos workforce they are a very small minority in transportation disciplines

We are pleased that the outcome of the 2017 Disparity Study that recognizes the on-going barriers

for DBEs including women-owned businesses in transportation The WSDOT recommended DBE

Goal of 190 is a small and important increase that can further achieve equity in WSDOTFHWA

contracting We are also pleased that the 2017 Disparity Study has documented the disparity in

WSDOT contracts that do not have a DBE or WBE goal ndash further reinforcing that all women-owned

firms and minority owned firms face equity issues We are encouraged that the WSDOT has asked

FHWA to rescind the 2016 waiver

While WTSrsquo mission is specific to the advancement of women we are a race-neutral organization To

this end we are also deeply concerned about the underutilization of minority owned firms There is

no equity or ldquofair playing fieldrdquo without equity for all gender and races We remained concerned with

the methodology required by the Code of Federal Regulations and case law because of the

dependence on the availability of firms in the calculation An unintended consequence of removing

either gender or race from the goal is that many of these firms would go out of business the

availability decreases and the formula then results in a smaller DBE goal This consequence is

contrary to our mission

We look forward to our continued participation in WSDOTrsquos DBE advisory group we are anticipating

notice that the 2016 waiver has been rescinded and how we can work together to continue

advancing minority and women-owned firms in the transportation field

Sincerely

WTS Puget Sound Chapter

Stephanie Forman

President

C Roger Millar Secretary WSDOT

C Representative Adam Smith 9th Congressional District Washington co Christine Nhan

WTS Puget Sound Chapter

PO Box 3461

Bellevue Washington 98009

From Dave Gent - WAPATo Bayne JackieCc Tom GaetzSubject WAPA Public Comments - RE WSDOT FHWA Disadvantaged Business Enterprise Proposed GoalDate Friday December 15 2017 14119 PMAttachments 12152017 DBE Proposed Goal - WAPA Public Comments Letterpdf

Good afternoon Jackie Please find attached WAPArsquos ldquofor the public recordrdquo comments with respect to WSDOTrsquos proposedDBE Goals FHWA funded work I assume that the Master DBE Directory was not sent to you this week so as a result we were notable to review the directory before the close of the public comment period That fact is noted withinour comment letter Thank you for your efforts Have a good weekend

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Friday December 8 2017 1219 PMTo Dave Gent - WAPA ltdavegentasphaltwacomgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hello Dave WSDOT did not take possession of this directory as part of our review process We will provide youwith the records without submitting a formal request However we need to get them from theconsultant first I will hopefully have them to provide next week I will keep you updated on therequest Have a nice weekend Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal Opportunity

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

December 15 2017

Jackie Bayne Policy Manager WSDOT Office of Equal Opportunity Delivered via e-mail to BayneJwsdotwagov RE Public Comment (as requested) to Proposed Overall DBE Goal for the FHWA (2018 ndash 2020) Ms Bayne Thank you for your presentation via webinar on December 5 2017 outlining WSDOTrsquos evaluation process used to determine the proposed overall DBE goal for the FHWA Thank you also for the Colette Holt amp Associates (CHA) DBE Advisory Group presentation made on September 14 2017 Both presentations helped to distill the findings of the 2017 Disparity Study produced by CHA In response to Earl Keyrsquos initial informal request to comment on the proposed overall DBE goal made during the DBE Advisory Committee teleconference held on October 12th we provided a list of reasons that we believe justify a lower DBE goal than is now being proposed Our initial response to Mr Keyrsquos request did not serve to influence WSDOT and the current proposed goal remains at 190 The arguments provided on October 12th against the significant increase in the proposed DBE goal (versus the previous goal and recent historic DBE participation) are repeated and supplemented below and will serve as the Asphalt Pavement Associationrsquos (WAPArsquos) official public comments

In concert with WSDOT and the OWMBE WAPA and the construction firms that WAPA represents have demonstrated a commitment to the principals of equal opportunity for all ldquoready willing and ablerdquo firms for the entire history that our DBE program has been in place WAPA has continuously demonstrated its commitment to the goals of the DBE program and for increasing the representation of disadvantaged groups within our industry as both workers and owners of firms Please recognize that WAPArsquos oversight and critique of the DBE program has always attempted to balance the principals of fair and open competition with the practical aspects of the low bid compressed schedule high performance standards demanded within the WSDOT marketplace Our comments below are meant to enhance WSDOTrsquos and OWMBErsquos understanding of the market and to hopefully have WSDOT fully consider all of the dynamics that are at play when proposing its Triennial DBE goal for FHWA projects Current DBE Capacity vs Historically Robust Market In advocating for a realistic and defensible DBE goal it has always been WAPArsquos position that it is paramount that the realities of the marketplace and true certified DBE subcontracting capacity should be a primary standard While a ldquostretchrdquo goal may appear to be progressive on its face it comes with consequences for all of the parties involved in the WSDOT federal aid contracting arena To balance the dynamics of the WSDOT contracting system the DBE goal should be tempered with the realities of the market and with a true measure of the underlying effectiveness of the DBE support services available to contractors

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 2 of 6 The first point of fact that has not been given any apparent consideration by WSDOT in its evaluation of the current capacity of certified DBErsquos is that there is an historically robust workload scheduled to be performed in the 2017 through 2022 time-frame particularly in the Puget Sound ldquoEverett to Olympiardquo corridor By WSDOTrsquos own estimates (see Attachment A) public works construction project starts in the 2018 to 2022 time-frame in this region will exceed $333 billion (B) counting the work projected from just five public entities WSDOT will be taking a decidedly ldquoback seatrdquo role during this period to Sound Transit which will have construction project starts of $226B vs WSDOTrsquos projected volume of $67B WSDOTrsquos summary publication titled Washington State Department of Transportations Proposed Federal Highway Administration Triennium Disadvantaged Business Enterprise Goal Federal Fiscal Years 2018-2020 states correctly that ldquoIncluded among the types of evidence that must be considered are the current capacity of DBEs to perform work on WSDOTrsquos federally-assisted contracts as measured by the volume of work DBEs have performed in recent yearshelliprdquo (Step Two Adjustment discussion) With the Sound Transit program being over 300 larger than the total WSDOT program in this region a sober assessment of true certified DBE capacity in the next three years needs to be considered by WSDOT If the huge construction boom over the next five years does not prompt a Step Two Adjustment then it becomes obvious that the realities of the market are being ignored by WSDOT for DBE goal setting Put another way if the 2018 through 2022 level of contracting activity does not warrant a goal adjustment what will DBE Access Barriers Not Yet Addressed The CHA 2017 Disparity Study points out multiple recommendations in Section VII that impact DBE participation and access to the market Assessments relating to those impacts and the state of maturity in addressing the CHA recommendations should be considered when assessing the DBE goal Many of the CHA recommendation have not been adequately addressed at this point in time Some of the prime examples are listed below Increase Certification and Expertise ndash The Disparity Study as explained to us includes all minority- (MBE)

and women-owned (WBE) firms that could be readily identified that perform work within Washington State and that perform work within the NAICS code framework CHA developed to cover WSDOT project work During the various presentations relating to the Disparity Study WSDOT representatives said that outreach to currently non-certified MBE amp WBE firms has increased and that WSDOT aspires to bolster its list of certified firms in the future but this effort is just beginning and the success of the effort needs to be means tested against the broader population of MBE amp WBE firms included in the CHA base line evaluation As the Disparity Study uses a much broader population of MBE WBE contractors to arrive at its conclusions (both non-certified firms and firms too large for certification) it follows that the calculated DBE proposed goal is overstated to include capacity that does not currently exist within WSDOTrsquos certified DBE framework Unless OMWBE is experiencing sudden and unprecedented success in recruiting new MBEWBE firms the DBE goal should be adjusted downward to recognize that the ldquoready willing and ablerdquo contractors that WSDOT has certified is only a subset of the total MBEWBE contracting population used in the Disparity Study evaluation

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 3 of 6

Until the promised WSDOT outreach registration efforts result in a substantial increase in available certified DBE firms it is premature to count the entire population of minority- and women-owned contractors as available to participate in WSDOT contracting It is unreasonable for WSDOT to project availability capacity using the entire MBEWBE population when only its currently truncated list of certified firms is acceptable to count toward the DBE goal

A corollary to the Increase Certification and Expertise discussion above is that the calculation of the Base Figure evidently includes the broadest practical population of MBE and WBE firms identifiable (without a review of the CHA Master DBE Directory which has not been supplied prior to the close of the public comment period the scope of the directory cannot be ascertained) If this directory includes a large population of MBEWBE firms that are not certified or are too large to be certified then the Base Figure calculation should be adjusted to reflect that certified DBE firms are a fraction of the total MBEWBE firms used to arrive at the 19 suggested DBE goal With respect to the CHA Master Directory it is our understanding the WSDOT was not given the directory as part of its evaluation of the Disparity Study and it follows that it did not evaluate the proposed DBE goal in the context of the CHA Master DBE Directory In our opinion an informed decision on adjusting the CHA baseline goal calculation can only be done after an extensive evaluation of the CHA Master DBE Directory If this has not been done WSDOT has not exercised due diligence in evaluating the context and underpinnings of the CHA Disparity Study and a certified DBE Triennium goal proposal to the FHWA is premature Increase Contract ldquoUnbundlingrdquo ndash If this proposed strategy (suggested by the CHA Study) is undertaken

certified DBE Subcontractors currently available will be engaged as Prime Contractors and the value of their prime contracts will bolster the overall percentage of certified DBE contracting but a systematic effort and strategy to ldquounbundlerdquo has not been articulated by WSDOT The key question of how this effort can be accomplished without increased cost to the taxpayers and increased inconvenience for the traveling public As noted in the CHA study (page 129 final paragraph) ldquoUnbundling must be conducted however within the constraints of the need to ensure efficiency and limit cost to the taxpayersrdquo As of this writing no overarching strategy for further unbundling with proper accountability has been articulated by WSDOT to the DBE Advisory Group

Review Insurance and Experience Requirements ndash Impediments to certified DBE participation due to

necessary insurance and experience standards cannot be solved by the prime contracting community Unless and until WSDOT puts together programs to address the burden of the substantial risks shouldered by Prime Contractors on WSDOT contracts barriers for streamlined utilization of certified DBE firms will continue to exist These market driven barriers will continue to dampen the availability of certified DBE Subcontractors that are able to perform within WSDOTrsquos strict criteria without unduly transferring risk to the Prime Contractor

Better Partnering to Overcome DBE Failures to Perform ndash Prime Contractors are held fully responsible to maintain the project schedule and are subject to project liquidated damages even when they may be struggling to deal with Subcontractor performance issues It is well-established that replacing a certified ldquocondition of awardrdquo (COA) DBE Subcontractor is very onerous and likely very costly to the Prime Contractor Unfortunately the imposition of strict and often counter-productive commercially useful function (CUF) rules often compound this issue as Prime Contractors cannot help COA DBE Subcontractors work through capacity expertise or time-related issues that impact timely performance

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 4 of 6

WSDOT needs to be a much better partner in the process of dealing with under-performing or non-performing certified DBE Subcontractors The current standard operational procedure places all of the exposure for non-performance onto the Prime WSDOT does not have an equitable system to account for non-performing or under-performing certified DBE Subcontractors hired as a condition of award (COA)

Performance Information and Training ndash Commercially useful function rules (CUF) and the lack of clear benchmark definitions for good faith effort (GFE) standards remain barriers for improving accountability within the DBE system and in turn lead to distorted DBE participation rates These items remain amorphous due to lack of training or lack of historic information Chronic uncertainty exists regarding both of these items Until WSDOT changes and improves its approach to provide transparency and certainty for both the prime bidding amp subcontracting parties true certified DBE capacity will continue to be masked and the resultant higher subcontracting costs associated with a distorted marketplace will continue to be hidden

WAPA respectfully suggests that simply adding an ldquoEstimated DBE Subcontract Premiumrdquo line to the current DBE bid forms would help to establish benchmarks that could begin to be used to ldquomeans testrdquo good faith efforts If this information had been gathered over the last 20 years of the DBE program meaningful GFE standards could have been developed and could be in place today

An in-depth review of CUF standards would also provide clarity For instance it is unclear why force account items performed by certified DBEs are currently counted at only 50 of the value of the work How was this benchmark established Has it been reviewed since imposed Did it ldquosolverdquo whatever inequity WSDOT was trying to address Better clarity may lead to more expanded opportunities for certified DBE Subcontractors

Enhanced Supportive Services and Business Development Programs ndash Unless and until stronger programs of these types are shown to be effective in boosting certified DBE business development increased DBE participation due to stronger business acumen should not be relied upon when setting the new DBE goal

Does OMWBE have a reasonable expectation that future plans for enhanced and expanded programs will be more successful than those employed in the past Assuming that certified DBE Subcontractors will be better prepared to deal with the WSDOT contracting environment than in the past should not be relied upon to boost DBE participation goals Especially troubling were the multiple references within the CHA report highlighting that DBEs believe that the staff at OMWBE lack a deep knowledge about the highway construction industry (eg Study page 129 2nd paragraph) Does OMWBE have a path forward that will address this issue and thus improve supportive services impacts

Develop a Bonding and Financing Program for SBEs ndash This is completely outside of the prime contracting

communityrsquos scope of influence WSDOT must find a way to institute changes that both protect the taxpayer and help increase certified DBE bonding capacity and access to financing ndash very large hurtles To assume that these hurtles can effectively be overcome within the 2018 ndash 2020 time frame when they have been chromic issues for the past 20 plus years of DBE program development is not rational

A helpful innovation would be for WSDOT to underwrite performance and payment bonds for certified DBE firms or to create promote a system that helps certified DBE firms obtain private bonding Bridging the gap to address capital access and performance risks (bonding) must be championed by WSDOT

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 5 of 6

Base Figure Adjustment to Address Available Subcontract Volume and DBE Prime Contracts It is a fact that mid- to large-sized MBEWBE firms that compete both as Prime Contractors and as Subcontractors are not eligible to be OMWBE certified DBEs Further the current amount of contract unbundling for greater DBE access to WSDOT prime contracting (see below) accounts for a very low dollar volume of prime contracts performed by certified DBEs Finally by specification (WSDOT standard specification 1-081) Prime Contractors are obligated to perform 30 of the total volume of the work (less specialty work) or stated another way a maximum of 70 of the dollar volume on WSDOT projects is typically available to award to subcontractors These market dynamics are NOT addressed in the Disparity Study A responsible DBE goal made absent of these facts should not be implemented A reasonable adjustment to the proposed 19 DBE goal is presented below

bull The percent of WSDOT prime contracts awarded to certified DBE firms is likely less than 5 by total WSDOT

contract volume Assuming this approximation is valid (likely very conservative) then the amount of WSDOT contract work available to certified DBE firms via subcontracting should be adjusted to account for the factors outlined above The Base Figure (19) should be adjusted to recognize that a 70 maximum subcontractor participation is available (in the numerator) and to account for the assumed 5 certified DBE prime contracts in the denominator Reasonable Base Figure Adjustment 19 (proposed) x 70 subcontracts available divide 95 of Non-Certified DBEs as Prime Contract Volume = 190 x 0737 = 140 adjusted goal This is an adjustment based on the practical dynamics of the WSDOT contracting system and it represents a more realistic look at the true subcontract volume that is available for Prime Contractors to award to certified DBE firms

Conclusions

Until the items listed above are addressed and in place it is not reasonable to believe that DBE goals can be increased by nearly 163 (from 117 to 190) When the projected robust public works contracting market is appropriately considered the true availability of certified DBE Subcontractors for WSDOT contracts will be truncated due to demand across all public works sectors With multiple strong public works programs competing for a limited population of certified DBEs the ability to meet increased WSDOT DBE goals will be severely challenged Without very clear concise and transparent good faith effort rules the ability to address DBE goals that greatly overestimate true near term certified DBE capacity will result in non-attainment bid day chaos failures to perform andor rapidly increased pricing

The clear conclusion is that at this point in time under the current circumstances without effectively instituted new programs rules procedures that could enhance the certified DBE programrsquos overall effectiveness we believe that the DBE goal should remain at or near 12 As OMWBE documents and demonstrates its future successes in improving access and eliminating capacity barriers only then should the DBE goal be re-evaluated and increased

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 6 of 6

In closing please remember that it is rare that the contracting community is asked our opinion with respect to the WSDOTrsquos DBE policies and so this letter is somewhat a vehicle to highlight collective concerns It is our belief that the majority of the Prime Contractors in Washington state support the objective of creating a level playing field for ready willing and able DBEs

If the level playing field is not yet possible in the absence of the DBE program then the key is to set realistic goals that recognize reflect and address the hard realities and market dynamics imposed by WSDOTrsquos bedrock environment of awarding contracts to the lowest cost responsible and responsive Contractor

Respectfully submitted Washington Asphalt Pavement Association

David Gent Tom Gaetz Executive Director Senior Advisor

Attachment A ndash WSDOT Central Puget Sound Public Works Contracting Projection 2018 - 2022

Con

stru

ctio

n Pr

ojec

t Sta

rts

2018

-202

2S

ound

Tra

nsit

$22

6 B

SD

OT

$08

B

Tran

sit

amp O

ther

s$1

7 B

WS

DO

T$6

7 B

Por

t of

Sea

ttle

$15

B

TOTA

L$3

33

B

Source N

ov 1

9 2

017

pres

enta

tion

to W

APA

Ann

ual M

eetin

g

Attachment A

Work (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Dave Gent - WAPA [mailtodavegentasphaltwacom] Sent Thursday December 7 2017 144 PMTo Bayne Jackie ltBayneJwsdotwagovgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hi again Jackie Irsquom fine thanks and hope you are the same Interesting The Master DBE Directory is the basis for and integral to the conclusions of the DisparityStudy Is it not then part of the information needed to fully review and comment on the DisparityStudy Was it not provided by CHA to WSDOT for review We are trying to fully understand thestudy and if this directory was part of the study why would it need to be obtained by a publicrecords disclosure It should be in the public domain and not restricted from ease of access If you are sure that a public records request is needed Irsquoll start that process but we will need tonote that point of fact when we submit our public comments If you are able to reconsider please let me know Respectfully

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Thursday December 7 2017 126 PMTo Dave Gent - WAPA ltdavegentasphaltwacomgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hello Dave I hope you are doing well

That information would likely be obtained through a public disclosure request Best Regards Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Dave Gent - WAPA [mailtodavegentasphaltwacom] Sent Thursday December 7 2017 113 PMTo Bayne Jackie ltBayneJwsdotwagovgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Jackie Can you please provide an electronic file or provide a weblink for the Master DBE Directory thatColette Holt amp Associates developed for the WSDOT Disparity Study 2017 (first referred to on Page 8of the Disparity Study) I did not see a link to this Master DBE Directory within the study Thanks

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Friday October 27 2017 1118 AMTo Kenyon Wendy ltKenyonWwsdotwagovgt Adams E W ltewadamssystemsclcomgtAdekoyaAndrew ltandrewadekoyabccomgt AlyssaBalllegwagov Anindita Mitraltamitracrea-affiliatescomgt APRISeattlehotmailcom Armstrong CharlotteltCharlieAatgwagovgt Ato Apiafi Architects PLLC ltatoaatoapiaficomgt benzfanwaorgBerntsen Teresa (OMWBE) ltTeresaBomwbewagovgt Billingsley Andrealtbillinawsdotwagovgt Bramlet Erica ltEricaBramletlegwagovgt Brooks Julius

ltBrooksJwsdotwagovgt Brown Jason ltjbrownldccorpcomgt bwallacenwlaborersorgCamden Allison ltCamdenAwsdotwagovgt carlllivingstongmailcom Cerda OscarltCerdaOwsdotwagovgt Christopher Chris ltChristCwsdotwagovgt ckerneycaawagovdanplatinumbusinessgroupcom davegentasphaltwacom David BalltDavidsignsnowmillcreekcomgt Davis Khalia ltDavisKhwsdotwagovgt Davis RaShelle (GOVltrashelledavisgovwagovgt Dayton Jo ltDaytonJwsdotwagovgt ddhondtagcwacomDebbieDriverlegwagov Dennis ltdennisahlkiewitcomgt dmcleodnwlaborersorgdrart6651gmailcom Duncan Enid lthigradeincgmailcomgt EltonltEltonwashingtonstatetruckingcomgt eprincecaawagov flemosldccorpcomfmartineznwmtnmsdcorg geoffshookatkncom glovelady ltgloveladyexcelglovescomgtGrabow Katie ltkgrabowsystemsclcomgt Guilfucci Jackie ltJackieGuilfucciskanskacomgt HealyLinda ltHealyLwsdotwagovgt Higginbotham Breanne ltHigginBwsdotwagovgt HirscheyClaudia ltclaudiahirscheycomcastnetgt Holt Colette ltcoletteholtmwbelawcomgt Huff JohnltHuffJwsdotwagovgt Iniguezchawagov JacksonMaynardlegwagov Jimmy Matta(jmattaalcantarassoccom) ltjmattaalcantarassoccomgt kellywickergovwagov Key EarlltKeyEwsdotwagovgt Kirk Jon ltjkirkwhhnfscomgt Kris Purrier ltkpurrierhwageocomgtleewabuildingtradesorg lesliejonessoundtransitorg Liz Evans ltlevansagcwacomgt LopezErin lterinlopezdeswagovgt Martha Cerna ltMarthaPSLCCORGgt Martin-Arnold EdwinaltMartinEwsdotwagovgt Mary Lerdahl ltmarydbeelectricinccomgt McCarty Hannahlthannahmccartylegwagovgt Melissa L Boyles ltmelissaboylesmwbelawcomgt Metcalf KeithltMetcalKwsdotwagovgt michaelicapaawagov Michelle ltMichelleTTCC26netgt MillarRoger ltMillarRwsdotwagovgt Nakamura Jason ltjasonnakamura1-alliancecomgtNavarroLportseattleorg olliepmt-solutionscom pastorbanksesbctacomacom PatrickHughes ltphugheshughesgroupbizgt Petersen Jodi (FHWA) ltJodiPetersendotgovgtrabbottliunaorg rcarmsteadgmailcom ricemportseattleorg Riley D ltdrileylydigcomgtSeling ltSelingjpfranciscomgt sherryharrisergosynchcom Stell MellodyltStellMwsdotwagovgt terigobintulaliptribes-nsngov timwilliamfactorycom tinaterra-tdicom tkellyldccorpcom tomgaetzmsncom vcollinsacec-waorgverlenejazzmsncom Wang Albert ltWangAatgwagovgt Waugh GregltGregWMaxKuneyComgt Yates Henry ltYatesHWSDOTWAGOVgtCc Tom Gaetz lttomgaetzmsncomgt Dave Gent - WAPA ltdavegentasphaltwacomgt VanCollins ltvcollinsacec-waorggt Daniel Seydel II ltdanplatinumbusinessgroupcomgt MaynardJackson ltJacksonMaynardlegwagovgt Carl Livingston ltcarlllivingstongmailcomgt DonMcLeod ltdmcleodnwlaborersorggt JIMMY MATTA ltjimmymattamsncomgt Prince Ed(CAAA) lteprincecaawagovgt David DHondt ltddhondtagcwacomgt Irene Reyesltgloveladyexcelsupplycompanycomgt McDaniel Craig ltMcDaniCwsdotwagovgtsherryharrisergosynchcomSubject WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Good morning On Monday October 30th WSDOT will be releasing the proposed overall Federal HighwayAdministration Disadvantaged Business Enterprise goal attached for public comment throughDecember 15 2017 This overall DBE goal is based upon the recently completely DBE ProgramDisparity Study WSDOT is proposing a 19 percent overall DBE participation goal on Federal Highway

Administration-funded projects for federal fiscal years 2018 through 2020 DBE goals fortransportation projects that receive federal funds represent a percentage of the value of work inwhich minority- and women-owned businesses should participate Once finalized and submitted toFHWA early next year the goal will be effective through Sept 30 2020

The purpose of the DBE program is to create a level playing field for firms owned and operated bydisadvantaged individuals wanting to participate in federally assisted highway transit and aviationprograms The attached overall DBE goal is for FHWA funded projects WSDOT will be updating theFTA and FAA overall DBE goals in the near future

If you have any questions please contact Earl Key Director of the Office of Equal Opportunity at3607057091 or KeyEwsdotwagov Thank you Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

  • Proof-Of-Publicationpdf
    • Mediapdf
      • AGC
      • Daily Journal
      • Daily Medium
      • DBEGood
      • OMWBE
      • Seattle Medium
      • Tabor 100
      • The Chronicle
      • Tukwila
        • King County
          • Public-Comments-20180111pdf
            • 19 DBE Requirement(1)
            • AGC Comments on Proposed 10 Goad
            • Backstrom Curb amp Sidewalk
            • comments on WSDOT proposed DBE goal
            • Cowlitz County Public Works
            • DBE Contracting goals
            • DBE Goal
            • DBE Program Disparity Study
            • Disparity Study Comments from City of Spokane
            • FW_ WSDOT News - WSDOT seeks comments on propos
            • Proposed DBE Goals
            • RE_ DBE Contracting Goal Comments
            • Re_ DBE Goal Comments
            • Re_ Seydel Dan - WSDOT Disparity Study Present
            • Support for WSDOTs proposed DBE goal
            • Why we need mandatory goals
            • WSDOT DBE Goal - Comment in support
            • WSDOT Proposes DBE goal of 19
            • WSDOT propsed DBE Goals
            • WTS - Disparity Study Comment Letter

Page 7

Summary Pursuant to the requirements of 49 CFR sect 2645(a)(2) WSDOT submits this proposed triennium DBE Goal to FHWA for review and approval WSDOT followed the requirements of 49 CFR sect2645 in completing this FHWA DBE goal along with the OSDBU Guidance This proposed DBE Goal of 190 is based upon the availability of ready willing and able DBEs as established by the Disparity Study WSDOT anticipates race-neutral participation of 22 and race-conscious participation of 168

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WSDOT proposes 19 DBE goal on FHA-funded projectsWSDOT is proposing a 19 percent overall DBE participation goal on Federal Highway Administration-funded projects for federal fiscal years 2018 through 2020 WSDOT will submit the proposal to FHWA early next year following a public comment period Once submitted to FHWA the goal will be effective through Sept 30 2020 (See info on public meetings below)

AGC is reviewing the proposal and considering its response AGC members are encouraged to send comments to AGC Chief Lobbyist Jerry VanderWood(mailtojvanderwoodagcwacom) 3603525000

WSDOT said the 19 goal is based upon the availability of ready willing and able DBEs as established by the WSDOT Disparity Study (See summary of the 2017 disparity study here (httpwwwwsdotwagovsitesdefaultfiles20160509WSDOTDisparityStudyPresentation2017pdf) see full study report here(httpwwwwsdotwagovsitesdefaultfiles20170911OEO-DisparityStudy-2017pdf))

In its report study authors Collete Holt and Associates concluded ldquoThese results provide the agency with the evidence necessary to narrowly tailor its DBE program for federal-aid contracts as required by 49 CFR Part 26 The statistical data and the anecdotal testimony provide a sufficient basis for the continued use of narrowly tailored remedial race- and gender-conscious measures to ensure full and fair access by all firms to WSDOT federally-funded prime contracting and associated subcontracting opportunitiesrdquo

WSDOT will host a series of public meetings to provide opportunities for individuals to comment in person

Spokane 2 ndash 4 pm Tuesday Nov 28 (WSDOT Eastern Region Headquarters 2714 N Mayfair St)

Vancouver 2 ndash 4 pm Wednesday Nov 29 (WSDOT Vancouver Headquarters 11018 NE 51st Circle)

Seattle 2 ndash 4 pm Thursday Dec 7 (WSDOT Northwest Region Headquarters 15700 Dayton Ave N Shoreline)

Those who are unable to attend one of the meetings can participate in a no-cost webinar from 230 ndash 430 pm on Tuesday Dec 5 Advance registration for the webinar is required Those interested in participating should email DisparityStudywsdotwagov (adminDisparityStudywsdotwagov)

Written comments can also be submitted by mail or email to Jackie Bayne Policy amp Reporting Manager Washington State Department of Transportation Office of Equal Opportunity PO Box 47314 Olympia WA 98504-7314 or to DisparityStudywsdotwagov (adminDisparityStudywsdotwagov20)

WSDOT will consider all written comments received through Friday Dec 15 2017

Documents detailing the methodology used for determining the FHWA DBE goals are available at wwwwsdotwagovequalopportunity(httpwwwwsdotwagovequalopportunity) or in person at the Transportation Building 310 Maple Park Ave SE in Olympia

Page 1 of 1WSDOT proposes 19 DBE goal on FHA-funded projects - AGC of Washington

1112018httpwwwagcwacompostswsdot-proposes-19-dbe-goal-on-fha-funded-projects

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October 31 2017

WSDOT proposes new DBE goalsBy JOURNAL STAFF

OLYMPIA mdash The Washington State Department of Transportation is proposing a 19 percent overall DBE participation goal on Federal Highway Administration-funded projects for federal fiscal years 2018 through 2020

WSDOT plans to submit the goals early next year and is seeking comments through Dec 15

To read this story in full or purchase a login subscription

HOME MyDJC BUSINESS CONSTRUCTION REAL ESTATE ARCHITECTURE amp ENGINEERING ENVIRONMENT TECH WEEKEND FEATURES SEATTLESCAPE

Page 1 of 2Seattle DJCcom local business news and data - Construction - WSDOT proposes new D

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()

WSDOT seeks comments on proposed DBE contracting goal for highway projects - Seattle MtgWSDOT seeks comments on proposed DBE contracting goal for highway projects

Comments accepted through Dec 15

OLYMPIA ndash Contractors trade and labor organizations small and disadvantaged businesses and all others who may be interested in working with the Washington State Department of Transportation are invited to comment on the agencyrsquos proposed Disadvantaged Business Enterprise goal for Federal Highway Administration contracts

DBE goals for transportation projects that receive federal funds represent a percentage of the value of work in which minority- and women-owned businesses should participate WSDOT is proposing a 19 percent overall DBE participation goal on Federal Highway Administration-funded projects for federal fiscal years 2018 through 2020

Once submitted to FHWA early next year the goal will be effective through Sept 30 2020

The purpose of the DBE program is to create a level playing field for firms owned and operated by disadvantaged individuals wanting to participate in federally assisted highway transit and aviation programs

Connecting with communities WSDOT will host a series of public meetings to provide opportunities for individuals to comment in person

Spokane meeting was held Nov 28

Vancouver meeting was held Nov 29

Seattle

2 ndash 4 pm Thursday Dec 7WSDOT Northwest Region Headquarters15700 Dayton Ave N Shoreline

Page 1 of 3WSDOT seeks comments on proposed DBE contracting goal for highway projects - Seattl

1112018httpwwwomwbewagovabouteventswsdot-seeks-comments-proposed-dbe-contracting

Date Thursday December 7 2017 - 200pm to 400pm

Other ways to provide comment Those who are unable to attend one of the meetings can participate in a no-cost webinar from 230 ndash 430 pm Tuesday Dec 5 Registration for the webinar is required Those interested in participating should email DisparityStudywsdotwagov (mailtoDisparityStudywsdotwagov)

Written comments can also be submitted by mail or email Jackie Bayne Policy amp Reporting Manager Washington State Department of Transportation Office of Equal Opportunity PO Box 47314 Olympia WA 98504-7314 DisparityStudywsdotwagov(mailtoDisparityStudywsdotwagov)

Documents detailing the methodology used for determining the FHWA DBE goals are available for review at all WSDOT region headquarters offices and at the Transportation Building 310 Maple Park Ave SE Olympia They are also available online at wwwwsdotwagovequalopportunity (httpwwwwsdotwagovequalopportunity)

WSDOT will consider all written comments received through Friday Dec 15 2017

WSDOT keeps people businesses and the economy moving by operating and improving the states transportation systems To learn more about what were doing go to wwwwsdotwagovnews (httpwwwwsdotwagovnews) for pictures videos news and blogs Real time traffic information is available at wwwwsdotcomtraffic(httpwwwwsdotcomtraffic) or by dialing 511

Americans with Disabilities Act (ADA) Information Accommodation requests for people with disabilities can be made by contacting the WSDOT DiversityADA Affairs team at wsdotadawsdotwagov (mailtowsdotadawsdotwagov) or by calling toll-free 855-362-4ADA (4232) Persons who are deaf or hard of hearing may make a request by calling the Washington State Relay at 711

Title VI Statement to Public It is WSDOTrsquos policy to assure that no person shall on the grounds of race color national origin or sex as provided by Title VI of the Civil Rights Act of 1964 be excluded from participation in be denied the benefits of or be otherwise discriminated against under any of its federally funded programs and activities Any person who believes his or her Title VI protection has been violated may file a complaint with WSDOTrsquos Office of Equal Opportunity For additional information regarding Title VI complaintprocedures andor information regarding our non-discrimination obligations please contactOEOrsquos Title VI Coordinator at 360-705-7090

Page 2 of 3WSDOT seeks comments on proposed DBE contracting goal for highway projects - Seattl

1112018httpwwwomwbewagovabouteventswsdot-seeks-comments-proposed-dbe-contracting

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13

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httpwwwchronlinecomnewswsdot-seeks-public-comment-on-disadvantaged-business-enterprisearticle_f5c753ea-be61-11e7-966c-972f6769d8a6html

WSDOT Seeks Public Comment on Disadvantaged Business Enterprise By The Chronicle Oct 31 2017

The Washington State Department of Transportation will be accepting public comments about the departmentrsquos proposed Disadvantaged Business Enterprise goal for federal contracts

The goal is for transportation projects receiving Federal Highway Administration funds to have 19 percent of the value of work done by minority or women-owned businesses during the 2018 through 2020 fiscal years

ldquoThe purpose of the DBE program is to create a level playing field for firms owned and operated by disadvantaged individuals wanting to participate in federally assisted highway transit and aviation programsrdquo a press release from WSDOT said

A series of public meetings will be held to discuss the goal in Spokane Vancouver and Seattle

For those who are unable to attend the in person meetings a webinar will be hosted from 230 to 430 pm Thursday Dec 5 The webinar is free but registration is required To register email DisparityStudywsdotwagov

Page 1 of 2WSDOT Seeks Public Comment on Disadvantaged Business Enterprise | News | chronlin

1112018httpwwwchronlinecomnewswsdot-seeks-public-comment-on-disadvantaged-business-

Written comments can also be submitted by mail or email to Jackie Bayne policy and reporting manager for the department of transportation at Washington State Department of Transportation Office of Equal Opportunity PO Box 47314 Olympia 98504 or by email at disparitystudywsdotwagov Comments will be considered through Dec 17 2017

More information about the goal is available at all regional offices or at the main office in Olympia located at the Transportation Building 310 Maple Park Ave SE Olympia More information can also be found online at wsdotwagovequalopportunity

Page 2 of 2WSDOT Seeks Public Comment on Disadvantaged Business Enterprise | News | chronlin

1112018httpwwwchronlinecomnewswsdot-seeks-public-comment-on-disadvantaged-business-

larr Halfway there SR 8 fish barrier removal reaches milestone New SR 26 traffic cameras available rarr

WSDOT seeks comments on proposed DBE contracting goal for highway projects

December 1 2017 | No Comments

WSDOT is seeking comments on proposed participation goals for Disadvantaged Business Enterprises on upcoming Federal Highway Administration contracts a Yakima meeting has also been added to the schedule Source WSDOT Permalink WSDOT seeks comments on proposed DBE contracting goal for highway projects

Categories WSDOT updates

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Page 1 of 3WSDOT seeks comments on proposed DBE contracting goal for highway projects | Tukw

1112018httptukwilatowingcom20171201wsdot-seeks-comments-on-proposed-dbe-contracting

From Liz EvansTo Bayne JackieSubject AGC Comments on Proposed 10 GoadDate Tuesday December 12 2017 50314 PMAttachments WSDOT Proposed Goal - AGC Comments FINALdocx

Hi there Jackie Attached are AGCrsquos comments on WSDOTs proposed 19 goal We will also be mailing you a copy Thanks for the opportunity to comment and we hope you find it helpful Regards Liz Liz Evans CAE Northern District ManagerAGC OF WASHINGTONTel 3602238757 | wwwagcwacom JOIN US for the 2018 AGC of Washington Annual Convention amp Technology Expo Jan 26

CUsersmwillmsPicturesInland AGCLogo_RGB_Half_5in

December 12 2017

Page 5

December 12 2017

VIA EMAIL amp US MAIL

Ms Jackie Bayne Policy amp Reporting Manager

Washington State Dept of Transportation

210 Maple Park Ave SE

PO Box 47314

Olympia WA 98504

RE WSDOT Proposed FHWA Triennium Disadvantaged Business Enterprise Goal

Dear Ms Bayne

This letter summarizes the views of the Associated General Contractors of Washington and Inland Northwest Associated General Contractorsrsquo (hereafter referred to collectively as AGC) regarding the Washington State Department of Transportationrsquos (WSDOT) recently proposed FHWA Triennium Disadvantaged Business Enterprise (DBE) Goal (the ldquoProposed Goalrdquo) AGC shares WSDOTrsquos commitment to continue the promotion of DBE firms but AGC is concerned the Proposed Goal which is a significant increase from the previous goal and actual utilization may have unintended consequences and could impose significant burdens on both prime contractors and DBE contractors alike AGC requests WSDOT reconsider its Proposed Goal and adjust the Proposed Goal to account for inevitable availability and capability issues including the lack of a formal retraction of the non-minority woman owned business waiver that makes up over half of the Proposed Goal Implementing an unachievable goal will only be to the detriment of the DBE program

1 AGCrsquos Membersrsquo Interest in WSDOTrsquos Proposed Goal

Together AGC of Washington and Inland Northwest AGC represent and serve the commercial industrial and highway construction industry These professional associations of commercial contractors are comprised of more than 900 members who have joined together to enhance the performance of their industry and build a better climate for construction operators many of which are small and closely held businesses

Like WSDOT AGC is firmly committed to the principals of equal opportunity and promoting efforts to ensure minority women and veteran owned businesses are properly represented In both its political advocacy and membership programs AGC has demonstrated its commitment to increasing the representation of disadvantaged groups in the construction industry as both workers and owners of firms For AGC this is both an issue of principles and a practical one The construction industry as a whole is facing a critical shortage of workers and it is imperative that the industry attract new participants Among AGCrsquos activities demonstrating this commitment are the following

middot AGC has an ongoing ldquoContractor Exchangerdquo program through which small minority- and women-owned subcontractors are offered one-on-one networking opportunities with established general contractors

middot The AGC Education Foundation provides financial support to construction-related programs in K-12 schools and conducts outreach specifically targeted at low income disadvantaged and female students

middot More than 2500 students most from inner-city schools participate in annual AGC-sponsored Construction Career Days in King Pierce and Spokane Counties

middot AGC supports the Pre-Apprenticeship Construction Training (PACT) program at Seattle Vocational Institute This program is focused on preparing underrepresented communities to be highly qualified applicants and successful apprentices in the construction trades

middot AGC is a sponsor of the Turner School a training course for minority- and women-business owners in the construction industry

middot AGC supports the National Association of Women in Construction (NAWIC) which provides professional development and other services to its members

middot AGC routinely supports legislative efforts aimed at supporting small businesses and encouraging small business participation

middot AGC recently formed a Diversity and Inclusion Committee comprised of both prime and DBE participants The purposed of the committee is to expand opportunities for DBE members and to help AGC consider diversity in decision-making Recently AGC approved a deeply discounted introductory dues structure for certified DBE members

middot AGC is a WSDOT partner on the new mentorproteacutegeacute program

AGCrsquos experience has been that the most effective approach is to help make emerging businesses successful through outreach training and public policies that will grow their capacitymdashnot by imposing mandates without clear evidence as to the mandates feasibility

2 WSDOTrsquos Proposed Goalrsquos Impacts To The Construction Industry

WSDOTrsquos Proposed Goal is 190 The Proposed Goal is based upon the recent Collete Holt amp Associates (CHA) Disparity Study released in 2017 With respect to availability the Disparity Study reports the following weighted availability for FHWA-Funded projects

Thus the 190 goal factors in Black Hispanic Asian Native American and White Women into its availability As indicated however this 19 goal raises a number of concerns

a WSDOTrsquos 19 Proposed Goal Represents a Significant Increase Without Concrete Evidence of Available And Capable DBE Firms

First WSDOTrsquos Proposal Goal of 190 represents a significant increase as compared to actual DBE participation (141 in 2014 117 in 2015 and 151 in 2016) as well as the last FHWA proposed goal of 116 for 2014-2018 See WSDOTrsquos Proposed Goal and Interim FHWA Overall DBE Goal Methodology FFY 2014-2018 The Proposed Goal is 74 more than the last goal which represents a 638 increase and a 52 increase over the average actual utilization for 2014-2016 While Contractors were exceeding the previous 116 goal this is primarily based on the fact that WSDOT previously requested a waiver to consider non-women-owned businesses and the waiver was not granted and effective until June 2017 (meaning that for 2014-2016 women were counted towards race-conscious goals and inevitably a higher overall percentage of DBE firms were utilized)

Contractors struggle to meet present DBE goals due to the relatively low availability of experienced and certified DBE firms By increasing the goal WSDOT is understandably trying to increase the participation of underrepresented firms Drastically increasing the goals (by over 5 of actual utilization) without concrete evidence that there is sufficient availability andor capability of such firms however will have the opposite effect Notably this lack of availability and capacity of DBE firms was discussed in detail in the Disparity Study For example the CHA Disparity Study notes a number of concerns of DBE firms while technically ldquoavailablerdquo with respect to the goal percentages are unable to meet the requirements necessary to fulfill the contract including purchasing the equipment necessary having available labor and ability to meet insurance and financing requirements Thus while there may be ldquoavailablerdquo firms there is not clear evidence (and if fact evidence to the contrary) that those available firms are capable and available to perform the majority of the FHWA-Funded contracts let by WSDOT

An additional example affecting DBE capability and availability that is not factored into the CHA Disparity Study or WSDOTrsquos Proposed GOAL is DBE ability to enter into Project Labor Agreements (ldquoPLAsrdquo) WSDOT has indicated their interest in pursuing a PLA AGC Members have raised concerns based on repeated experiences that many DBE firms due to the administrative and cost impacts refuse to enter into PLAs precluding those firms from performing certain work or increasing costs Again this lack of ability (or refusal) to perform should also be factored into WSDOTrsquos Proposed Goal which is not currently the case

b The Proposed Goal Does Not Account For The Current Non-Minority Woman Owned Business Waiver Still In Place

Second despite the significant increase WSDOT does not account for the current waiver of non-minority women owned businesses that remains in place As noted in WSDOTrsquos proposal comments WSDOT previously sought and received a waiver of the regulation that White females as a group are presumptively disadvantaged This waiver was heavily criticized by many including AGC and the results of the most recent CHA Disparity Study confirmed that White females are presumptively disadvantaged and do not enjoy a level playing field for USDOT-assisted contracts Therefore the CHA Disparity Study recommends that this group be returned to the status of goal credit eligibility WSDOT has sought a recession of the waiver but has not yet to our knowledge received a rescission of the waiver Nevertheless the 19 Proposed Goal still includes White women In fact of the 19 availability percentage White women represent 103 (over half) Accordingly for WSDOT to proceed with the 19 goal WSDOT must receive the rescission of the waiver for this goal to be even remotely possible to achieve If the rescission is not received the Proposed Goal must be adjusted

C The Proposed Goal Does Not Account For Availability Differences Across The State

Third the Proposed Goal does not account for availability difference across the state Eastern Washington contractors with an even scarcer pool of available and qualified DBE firms in the area as is the case now will be forced to subcontract to Western Washington firms paying transportation and per diem premiums for such work The CHA Disparity Study again provides numerous excerpts of anecdotal evidence demonstrating that the goals in Eastern Washington are too high A few of the contractor comments on the topic are as follows

When you apply those same goals to a different geographic region a different project site for a large firm to meet those goals is difficult because theres not necessarily the expertise in parts of the project that were submitting on

Theres very few DBEs over here [in Eastern Washington] Next year theres going to be even more work over here What are we going to do with all these goals We always meet the goals like I said youve got three four DBEs over here to do all the work and then they cant perform

There are just no [minority-owned] DBEs available in eastern Washington

See CHA Disparity Study at p 54 Again these are factors that should be taken into account in developing the Proposed Goal or at the very least its application WSDOTrsquos Proposed Goal however is silent as to this significant issue

When the lack of available firms with the capacity to perform significant DBE projects is coupled with the increased goals the price of WSDOT contracts will inevitably increase to the significant detriment of Washington taxpayers and the public entities Inevitably with a lack of available qualified firms the lack of competition will become evident and small qualifying contractorsrsquo prices will increase due to supply and demand principles as they become selected for projects and less able to take on additional work These increased DBE contract values will be passed on to the public agency and taxpayers which translates into fewer dollars available for the sorely needed and promised infrastructure upgrades In addition the instance of bid protests will inevitably increase potentially delaying projects and further diverting agency resources from badly needed infrastructure upgrades to resolving unnecessary disputes or rebidding the projects altogether

Finally faced with such drastic and potentially impossible requirements if adjustments are not made contractors may focus more on demonstrating good faith efforts Both a contractor who meets the required goal and a contractor that demonstrates good faith efforts are eligible for award It is likely that the contractor relying upon good faith effortsmdashwho will have a lower price than the other contractor who sacrificed price to actually meet the goalmdashwill be selected by the public agency This outcome will erode the total percentage participation of eligible firms and would clearly be inapposite of WSDOTrsquos intentions

3 Conclusion and Request

AGCrsquos members have asserted these and multiple other concerns Implementing an increased goal across the state and all contracts without clear evidence of available DBEs capable of performing the work and meeting the project requirements will have significant and far-reaching impacts on the construction industry many of which work against the aim of the Proposed Goal itself AGC requests WSDOT reconsider its Proposed Goal of 19 and make adjustments to account for the capability of DBE firms the lack of a rescission of the non-minority waiver and the lack of available DBE firms in parts of the state This Proposed Goal and its impacts on the construction industry will be irrevocable and will be to the detriment of taxpayers It is prudent to address these adjustments before implementing the Proposed Goal

Very truly yours

David DrsquoHondtCheryl Stewart Executive Vice President AGC of WashingtonExecutive Director Inland Northwest AGC

AGC of Washington bull 410 11th Avenue SE 203 Olympia WA 98501

Inland Northwest AGC bull 4935 E Trent Avenue Spokane WA 99212

image3jpeg

image1png

image2emf

image4png

image5jpeg

From Steve SmithTo WSDOT Disparity StudyCc Bayne JackieSubject 19 DBE RequirementDate Thursday December 14 2017 31947 PMAttachments DBE List and NAICS Listingpdf

Disparity Committee I recently read in The Daily Journal of Commerce that WSDOT plans to adopt a 19 DBEstandard for all FHWA funded projects early next year Our company S amp K Painting Inc is abridge painting company which is based in and works exclusively in Oregon and Washington Ihave been the owner of this firm since 1978 when it was first established My concerns aboutthe proposed 19 DBE requirement is as follows 1 There are very few opportunities for subcontract work on bridge repaint jobs These jobsare usually limited to cleaning and painting the bridge The only other facet of the project istraffic control which is almost always 3 or less of the project total cost The traffic controldoes provide a very good subcontracting opportunity 2 The NAISC code of 238320 includes bridge painting but also includes house painting wallcovering rust proofing etc which have almost no similarities to bridge painting When thiscode is used to determine the number of available firms (DBE or otherwise) that are availablefor bridge painting project this badly skews the numbers I would suggest that bridge paintingcontractors make up less than 5 of all firms in NAISC code 238320 3 If future WSDOT bridge painting projects require a 19 DBE participation A The qualified pool of DBE subcontractors available to submit pricing on any facetother than traffic control will be very limited I reviewed a list of 19 certified DBE firms listedunder painting at the WSDOT website and only recognized one firm from past projects B The number of prime bidders and competition will fall The state will incur highercosts due to this fact C Prime bidders will be forced to subcontract unqualified contractors just to be eligiblefor contract awards This will likely reduce the quality of the finished project Thank you for considering my concerns I may not have verbalized my thoughts as well as Iwould have liked but I have been in this business for almost 40 years and truly believe what Ihave said Sincerely

Steve Smith President

SampK Painting incP O BOx 390clacKamaS OregOn 97015Phone (503) 557-5544Fax (503) 557-5566Cell (503) 260-5280Steveskpaintingcom

From Lei WuTo Bayne JackieSubject comments on WSDOT proposed DBE goalDate Thursday December 14 2017 94925 PM

To Whom It May Concern

Below is my comments

The WSDOT recommended DBE Goal for FHWA contracts of 190 is a small andimportant increase that can further achieve equity in WSDOTFHWA contracting I am insupport of the 19 DBE Goal

I also want to express my appreciation for the thoroughness of the WSDOT Disparity studyand how the study disclosed the disparity in WSDOT contracts that do not have a DBE orWBE goal ndash further reinforcing that all women-owned firms and minority owned firms faceequity issues

I remain concerned with the methodology required by the Code of Federal Regulations andcase law because of the dependence on the availability of firms in the calculation Anunintended consequence of removing either gender or race from the goal is that many of thesefirms would go out of business the availability decreases and the formula then results in asmaller DBE goal

Thanks

Lei

Lei Wu PE AICP

Principal CSL Consulting

LeiWucsl-consultingnet

(425)562-6275

From Stephanie SimpkinsTo WSDOT Disparity StudySubject DBE Contracting goalsDate Wednesday November 29 2017 20259 PM

My name is Stephanie Simpkins and I own North Star Enterprises It is a large womanowned traffic control company located in Spokane Washington My mother founded thecompany in 1984 and I have worked in this family owned business most of my life Ipurchased the business from her in 2013 and have been sole owner since then My company thrived under the Disadvantaged Business Enterprise (DBE) Programimplemented by Washington Department of Transportation and administrated by United StatesDepartment of Transportation What started as a small business with one truck and a fewemployees has grown over the years to be one of the largest traffic control companies in thestate and employee countless people every construction season It has not been an easy roadover the years being a woman in the construction industry never is and it is hard to say wherewe would be now if it werenrsquot for the assistance of the DBE program As you know in June of 2017 majority women were removed from the DBE program basedon a disparity study conducted in 2012 On March 2014 Washington Department ofTransportation requested a wavier to remove majority women from the DBE program Thishas had an immediate and drastic impact on my business and all who work for me From themoment the waiver was approved and my company could no longer be used as a condition ofaward at bid time I began losing work Most recently the 2018 North Central Region ChipSeal which we have worked on for the last 10 years This contract provides work forapproximately 40 employees for the entire construction season I have already been told byseveral contractors that with such a high UDBE goal they wont even be able to consider mefor this project This loss along with several other smaller contracts to date are painting avery dismal future for my business With all of this turmoil surrounding the future of my business I find it frustrating to say theleast that WSDOT has chopped me off at the legs by not allowing my firm to count for theCOA but can use the little participation I may still contribute to help them reach their overallstate goal How is this fair If the contractors canrsquot utilize my business than neither shouldWSDOT As far as setting future state DBE contracting goals it looks as if the bar will beraised once again all while excluding the largest subset of useable DBErdquoS To me raising theoverall state goal at this time (which is already challenging to meet) with women DBErsquosexcluded from the program seems horribly ill timed

From Karen R BannishTo Bayne JackieSubject DBE GoalDate Tuesday December 5 2017 32549 PM

Hello Jackie ndash thank you for the webinar today concerning the proposed Overall DisadvantagedBusiness Enterprise Goal for the Federal Highway Administration I understanding the DisparityStudy much better now and checked the document you mentioned on the WSDOT website Pacific County is located in the Southwest corner of the State of Washington The tip of the LongBeach Peninsula would be 2 frac12 hours from Interstate 5 Our federal work primarily includes strictlyoverlay projects with 12 or fewer items of work included in the contract When bidding a project(our contracts are usually less than $500000) we sometimes received a single bid from the process Due to our proximity and the small cost for the work it is difficult to entice DBE participation Thereare simply no items of work that can be performed Having a mandatory DBE goal placed upon theproject in a rural area simply to meet the disparity guidelines will only increase the cost of theproject We feel the goals should be set in balance with the cost of the project and the items of work and notsimply directed to meet the overall goal

Karen BannishSenior Engineering TechnicianPacific County Department of Public Works211 North Commercial StreetRaymond WA 98577(360) 875-9368

From Dawn EgbertTo Bayne JackieSubject DBE Program Disparity StudyDate Tuesday December 5 2017 23825 PM

Hi JackieThank you for the great information on the call today You talked about the small works rosterbriefly We had a conversation in our office today about small contractors who are signed up on thePort of Vancouverrsquos small works roster Our team has had opportunity to talk to some of thecompanies on our roster who are women owned or minority owned businesses but they arenrsquotsigned up as a DBE firm When asked about that theyrsquove mentioned that they donrsquot want to fill outthe additional paperwork required to obtain the certification as a DBE As for the DBE goal at 19 it doesnrsquot seem to present an issue for the majority of our projects ndashespecially those where we would apply FHWA funds if granted However if we did happen to have aproject that didnrsquot include classifications of work where DBE certified participants are availablewould there still be an exception or a good faith efforts clause Thanks again for your time Dawn EgbertProcurement Services Manager3103 NW Lower River Road Vancouver WA 98660Direct 3609921102 | Cell 360448-9867 | Main 3606933611 | Fax 360735-1565degbertportvanusacom | wwwportvanusacom | available port properties Leadership | Stewardship | Partnership

From Feist MarleneTo WSDOT Disparity StudyCc Simmons Scott M Twohig KyleSubject Disparity Study Comments from City of SpokaneDate Friday December 15 2017 52226 PMAttachments image010png

image011pngimage012png

December 15 2017 Jackie BaynePolicy amp Reporting ManagerOffice of Equal OpportunityWashington State Department of TransportationPO Box 47314Olympia WA 98504-7314 RE Proposed DBE Contracting Goal for Highway Projects Dear Ms Bayne The City of Spokane would like to provide comments related to proposed DisadvantagedBusiness Enterprise Goal for Federal Highway Administration (FHWA) contracts by theWashington State Department of Transportation (WSDOT) Office of Equal Opportunity Manyof our projects receive funding from FHWA and as such the proposed new goals areapplicable to City work The City is supportive of the programrsquos purposemdashldquoto create a level playing field for firmsowned and operated by disadvantaged individuals wanting to participate in federally assistedhighway transit or aviation programsrdquo However the City is concerned about the ability to achieve the proposed utilization rate of upto 19 percent for DBEs in Eastern Washington considering the low number of DBEs in ourregion and the record construction under way in the City and in our region WSDOTrsquos DBE Program Disparity Study notes ldquoContractors in Eastern Washington repeatedlyreported that the goals on projects in their area are too highrdquo The Inland NorthwestAssociated General Contractors group notes that only about 12 DBEs in construction fields areavailable in the greater Spokane area Meanwhile the City has performed record construction in each of the last three years withproject totals hovering around $100 million Our City work has been bolstered by anaggressive program to improve water quality in the Spokane River Our local school districtsand our neighboring jurisdictions also have aggressive construction programs right now

Additionally we expect WSDOTrsquos work in this region to accelerate as North Spokane Corridor(NSC) construction proceeds At times our area is reaching the limits overall of our contractingcommunity the City has worked to release its projects in the first quarter of the year as muchas possible to lock in contractors and receive better pricing The capacity of existing DBEs in our region simply cannot meet that current high demand Some DBE firms are tempted to agree to more work in these times but we have found that insome cases DBEs have stretched themselves too thin On two recent City projects generalcontractors were unable to meet DBE goals as a result of DBE firms that couldnrsquot fulfill theircommitments for providing personnel or equipment It also seems implausible to expect DBEs from the West Side to mobilize teams to work on Cityof Spokane projects in large numbers In fact the Disparity Studyrsquos author responded at arecent meeting on this topic that a DBE from the West Side only very rarely completes workon the East Side of the state We would also be concerned about moving the good-paying jobs that construction providesoutside of our region The Cityrsquos median household income is $44350 considerably lower than theState of Washington MHI of $64129 and the Seattle MHI of $77351 Our leaders are working tocreate good-paying jobs for our citizens not export them to an already wealthier part of the state Additionally these projects are also funded with local dollars and our citizens expect their money toput their neighbors to work With the above considered the City is seeking

middot DBE goals for the 2018-2020 compliance period for Eastern Washington that arereflective of the current availability of DBE firms in our region

middot The re-inclusion of non-minority women owned DBEs in achieving DBE goals InSpokane non-minority women owned DBEs make up the majority of the availableDBEs And current information shows that women in Spokane overall still lag behindmen in opportunities and wages The Cityrsquos own ldquoGender and Racial Equityrdquo reportfrom 2016 noted that overall working women earned 783 percent of the earnings ofworking men in 2014 down from 827 percent in 2009 We need to lift up all women

middot The development of WSDOT programs to encourage the growth of existing andnew DBEs who can be used on street and highway projects We are encouraged by theproposed mentorproteacutegeacute program to increase the number and capacity of DBEs inEastern Washington Programs that address other barriers such as assistance withcompleting documentation or access to bonding capacity also could aid growth ofDBEs

middot The ability for WSDOT to adjust goals on a project if a selected DBE is unable tocomplete its commitments on a project This would help enable our contractors totake a chance on a new or inexperienced DBE to complete work

middot Recognition of local programs that strive to increase diversity in the work force Forexample the City operates a robust apprenticeship program that requires 15 percentof the labor hours on public works jobs greater than $600000 to be performed byapprentices The apprentice programs in our region are stepping up recruitmentefforts and are specifically seeking to recruit more youth women and minorities intoapprentice slots

As we seek to achieve the goal of increasing participation in street and highway constructionby companies owned by disadvantaged individuals we must also acknowledge that businessdevelopment and growth happens over time We must lay the groundwork now to build abase of DBEs that can help us achieve higher utilization goals over time Sincerely Marlene FeistDirector of Strategic DevelopmentPublic Works amp UtilitiesCity of Spokane

Marlene Feist | City of Spokane | Public Works Director of Strategic Development5096256505 | cell 5097109214 | mfeistspokanecityorg | spokanecityorg

From Hall MattTo WSDOT Disparity StudySubject FW WSDOT News - WSDOT seeks comments on proposed DBE contracting goal for highway projectsDate Friday December 15 2017 11956 PMAttachments WSDOT proposed DBE goal through 2020pdf

From Hall Matt Sent Friday December 15 2017 117 PMTo BayneJwsdotwagovCc Keniston Rick (KenistRwsdotwagov) MolyneKwsdotwagov SusanWilsonclarkwagovSubject WSDOT News - WSDOT seeks comments on proposed DBE contracting goal for highwayprojects Hello Jackie Please see our comments attached regarding the WSDOT proposed DBE goals Thanks for the opportunity to provide comments Matt HallClark County Public Works Washington State Department of Transportation ndash NEWSHeadquarters ndash 310 Maple Park Avenue SE ndash Olympia WA 98504-7314 ndash 360 705-7000 FOR IMMEDIATE RELEASEOct 30 2017 Contact Jackie Bayne Office of Equal Opportunity 360 705-7084

WSDOT seeks comments on proposed DBEcontracting goal for highway projectsComments accepted through Dec 15OLYMPIA ndash Contractors trade and labor organizations small and disadvantaged businessesand all others who may be interested in working with the Washington State Department ofTransportation are invited to comment on the agencyrsquos proposed Disadvantaged BusinessEnterprise goal for Federal Highway Administration contractsDBE goals for transportation projects that receive federal funds represent a percentage of thevalue of work in which minority- and women-owned businesses should participate WSDOTis proposing a 19 percent overall DBE participation goal on Federal Highway Administration-funded projects for federal fiscal years 2018 through 2020Once submitted to FHWA early next year the goal will be effective through Sept 30 2020The purpose of the DBE program is to create a level playing field for firms owned andoperated by disadvantaged individuals wanting to participate in federally assisted highwaytransit and aviation programsConnecting with communitiesWSDOT will host a series of public meetings to provide opportunities for individuals tocomment in person

Spokane

2 ndash 4 pm Tuesday Nov 28WSDOT Eastern Region Headquarters2714 N Mayfair St Spokane

Vancouver

2 ndash 4 pm Wednesday Nov 29WSDOT Vancouver Headquarters11018 NE 51st Circle Vancouver

Seattle

2 ndash 4 pm Thursday Dec 7WSDOT Northwest Region Headquarters15700 Dayton Ave N Shoreline

Other ways to provide commentThose who are unable to attend one of the meetings can participate in a no-cost webinar from230 ndash 430 pm Tuesday Dec 5 Registration for the webinar is required Those interested inparticipating should email DisparityStudywsdotwagovWritten comments can also be submitted by mail or emailJackie Bayne Policy amp Reporting ManagerWashington State Department of TransportationOffice of Equal OpportunityPO Box 47314Olympia WA 98504-7314DisparityStudywsdotwagovDocuments detailing the methodology used for determining the FHWA DBE goals areavailable for review at all WSDOT region headquarters offices and at the TransportationBuilding 310 Maple Park Ave SE Olympia They are also available online atwwwwsdotwagovequalopportunityWSDOT will consider all written comments received through Friday Dec 15 2017 Hyperlinks within this release

WSDOT Region offices wwwwsdotwagovContactofficelocationhtmregion

WSDOT keeps people businesses and the economy moving by operating and improving the statestransportation systems To learn more about what were doing go to wwwwsdotwagovnews forpictures videos news and blogs Real time traffic information is available at wwwwsdotcomtraffic or bydialing 511 Americans with Disabilities Act (ADA) InformationAccommodation requests for people with disabilities can be made by contacting the WSDOTDiversityADA Affairs team at wsdotadawsdotwagov or by calling toll-free 855-362-4ADA (4232)Persons who are deaf or hard of hearing may make a request by calling the Washington State Relay at711 Title VI Statement to Public It is WSDOTrsquos policy to assure that no person shall on the grounds ofrace color national origin or sex as provided by Title VI of the Civil Rights Act of 1964 be excluded fromparticipation in be denied the benefits of or be otherwise discriminated against under any of its federallyfunded programs and activities Any person who believes his or her Title VI protection has been violatedmay file a complaint with WSDOTrsquos Office of Equal Opportunity For additional information regarding Title

VI complaint procedures andor information regarding our non-discrimination obligations please contactOEOrsquos Title VI Coordinator at 360-705-7090 To unsubscribe to WSDOT media releases please reply and type REMOVE in the subject line

This e-mail and related attachments and any response may be subject to public disclosure under state law

From Cochrane EmilieTo WSDOT Disparity StudyCc Eugenis Susan Cowlitz Co Public Works - Brad BastinSubject Proposed DBE GoalsDate Thursday December 14 2017 85006 AMAttachments image002png

DBE Goals - Commentspdf

Please see the attached letter with comments regarding the proposed DBE Goals Ahard copy will be sent out today

Thanks

Emilie CochraneCowlitz County Public Works1600 ndash 13th Avenue SKelso WA 98626360-577-3030 ext 6523

From Michelle WolcottTo Bayne JackieCc Robideau Christopher LSubject RE DBE Contracting Goal CommentsDate Tuesday November 7 2017 65448 AMAttachments image001png

Thank you JackieWhat a relief to know that we have been heard and are not the only small business facing thisstruggle Your email is comforting

Yes you can provide us with additional assistanceLet me introduce my boss and Senior Vice President of Red Plains Professional Chris Robideau

Chris will be your contact from here since I will be leaving the company November 17th As a WA DBE we are ldquoeligible for limited DBE Support Services (SS) funding when funds becomeavailablerdquo When will this happen And are we registered or on a list to receive fundingIs the WSDOT ICR Training a prerequisite for the funding Or just helpful knowledge

Thank you for your time Jackie I will follow through with the training

Michelle Wolcott EIT Quality Control Engineer

2103 NE 129th Street Suite 201 Vancouver WA 98686 Office (360) 448-7999 Fax (360) 258-0274

wwwred-plainscom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Monday November 6 2017 332 PMTo Michelle Wolcott ltMichelleWolcottred-plainscomgtSubject RE DBE Contracting Goal Comments

Hi Michelle

Thank you for your interest in doing business with WSDOT I apologize for the lack of informationyou have come up against in your attempts to attain access to WSDOT ICR program

As you may well know WSDOT has recently completed a state wide agency specific diversity studyAnecdotal comments submitted with the study concur with your experience Not only did somerespondents find it difficult to become prequalified they also commented that the required indirectrate of 110 percent is too low to be profitable These requirements are currently under advisementby WSDOT and new DBE program requirements are currently in the process of seeking public input

As you are an OMWBE certified DBE in Washington State you will be eligible for limited DBE SupportServices (SS) funding when these funds become available At that time funds may become availableto assist you in your struggle to attain ICR eligibility Here is a link to WSDOTrsquos Indirect Cost RateTraining httpswwwwsdotwagovAuditICRTraininghtm If you would like me to find additionaltraining or information please let me know

If I can provide additional assistance of information please let me know

Best Regards

Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Michelle Wolcott [mailtoMichelleWolcottred-plainscom] Sent Tuesday October 31 2017 835 AMTo WSDOT Disparity Study ltDisparityStudyWSDOTWAGOVgtSubject DBE Contracting Goal Comments

HelloI have been in contact with WSDOT for 6 months sharing my disparaging story of beinga small DBE unable to submit SOQs for projects requiring a WSDOT Audited IndirectCost Rate Approval We do not have an in-house accountant and our outsideaccountant has explained to get all the paperwork together for WSDOT would take 40hours of work $9000 annually We cannot justify this cost to submit on a project thatwe may not acquire We have been directed to seek financial assistance from WSDOT Federal SBA andWashington State Office for Women and Minority Owned Enterprises all of whichprovided negative responses

As a DBE business in 11 states we are supporting the 19 incentive for federallyfunded contracts but we are frustrated in the fact that we will not be one of the luckyfew to participateWe have been in business 20 years From our Vancouver Washington office our clientsare the Native American tribes across the country with all contracts federally funded This summer alone the WSDOT ICR Approval has squashed our ability to submit on twoprojects that we were perfectly qualified to performI have attached previous emails to show a sample of who I have been dealing with

Thank you

Michelle Wolcott EIT Quality Control Engineer

ltimage001pnggt

2103 NE 129th Street Suite 201 Vancouver WA 98686 Office (360) 448-7999 Fax (360) 258-0274 wwwred-plainscom

From Michelle Wolcott Sent Monday July 10 2017 954 AMTo Harvey Schatzie ltHarveySwsdotwagovgtSubject RE WSDOT Indirect Cost Rate Process

Good Morning Schatzie

This is Michelle Wolcott from Red We spoke Friday June 30th about the ICRprocess and you were very encouraging I relayed the information to my boss who ishere in Vancouver then he shared with the president bookkeeper and our accountantin Oklahoma We had FAR compliance with Oklahoma DOT in 2015 so we are noteligible for the Safe Harbor Program Our account said our timekeeping system doesnot breakdown the hours and pay in the format WSDOT wants to have it presented andto get the documents in order would take the CPA and an assistant $9000 in paidhours of work It turns out this would have to be annually The other option is to hirean outside CPA firm to do the audit for us at $20000 annually

Our president said in the past we received funding assistance from the Stateof Oklahoma to get our ICR approval Does WSDOT offer any financial assistance for small businesses to reach compliance We are also a DBE in WA I have requested the same information from WA PTAC at theVancouver Chamber of Commerce and from WA Office of Minority and Women OwnedBusiness Enterprises and they both said there was nothing but suggested to askWSDOTThank you for your helpMichelle Wolcott EIT

Hello Michelle sorry but I am not aware of any grants But I was looking at this andthere is a POC at the bottom you may try to discuss the audit issuesHollyHolly BoehmeBusiness Opportunity Specialist | 8(a) Business Development ProgramUS Small Business Administration bull Seattle District Office

Hello Michelle -

Thank you for your email Im not aware of any funding available for thispurpose but do agree its quite a bit for a DBE firm to have as an expense Mostof the firms I work with do a lot more work on the Oregon side so perhaps thereare programs available that I just havent heard of Im copying my colleagueHoly Boehme in our Seattle District Office to see if they are aware of any suchassistance

Holly might there be some small business incubators or other resources availablein WA to help a small firm with the expense of getting a WSDOT AuditedIndirect Cost Rate approval Please reply all with anything you may have

Thank you

Yuri Yoshida Dyson Business Opportunity SpecialistUS SMALL BUSINESS ADMINISTRATION Portland District OfficePhone 503-326-6692 Fax 202-292-3872 wwwsbagovor

From Troy HalbergTo Bayne JackieSubject Re DBE Goal CommentsDate Wednesday December 13 2017 35533 PM

JackieToday was another example of why the goals should not be raised There were 2 jobs which Iwas low on and did not get due to the high goals This is exactly what will happen when thegoals get raised The first job was the 9180 Anacortes Ferry Paving Northeast Electric $244924 and UDBE $318000 Second job was the 9172 SR 9 East Junction Job Northeast Electric $68503 and UDBE $76300

Does this seem like a good way to spend the tax payer money I do not see how we are tosurvive if the goals get to 21

Thanks

Troy HalbergOffice360-225-7004Cell360-931-3990Fax360-225-7001

On Thu Nov 30 2017 at 1131 AM Bayne Jackie ltBayneJwsdotwagovgt wrote

Good Morning Troy

Thank you for taking the time to provide us with your experiences with the DBE Program TheWashington State Department of Transportation takes the public involvement process veryseriously and your comments will be taken into consideration prior to a final decision regardingthe overall DBE program goal

If I can be of further assistance please let me know

Best Regards

Jackie Bayne

Policy and Reporting Manager

WSDOT Office of Equal Opportunity

Work (360) 705-7084

Cell (360) 338-5783

BayneJwsdotwagov

From Troy Halberg [mailtotroyhnellcnet] Sent Wednesday November 29 2017 144 PMTo WSDOT Disparity Study ltDisparityStudyWSDOTWAGOVgtSubject DBE Goal Comments

If these goals are to be set that high this would make us as a non DBE small contractor at amajor disadvantage With these high of goals this is like handing all of the DBE electricalcontractors every job These general contractors will have no option but to use thembecause of the goals This should not go into effect We have been low on several jobs in thepast and have not gotten them do to the goals being 18 When this goes on it puts all therest of us contractors at a disadvantage Please consider the smaller non DBE contractorsthat are looking to survive as well

Thanks

Troy Halberg

Office360-225-7004

Cell360-931-3990

Fax360-225-7001

From Daniel Seydel IITo Bayne JackieCc Key Earl daneiwashingtonorg Nadeem Ismail Mussie Tewelde (mteweldehydro2geotechcom)

graceflyrightaolcom Mary Wenner Watkinson LarrySubject Re Seydel Dan - WSDOT Disparity Study Presentation Public TestimonyDate Friday December 8 2017 30323 PM

Jackie

It was my hope that the comments would be put into record I was also hoping that you wouldnot have to be the one having to formulate responses for each clarification If that is the caseI know you are swamped and will then I just ask my comments be only part of the recordHowever if there is dedicated staff that is going to be compiling and responding to theclarification then the below questions would be the priorities of most interest

These were questions unrelated to the disparity study and hopefully should be doable

1) Do you have any reports on your outcomes from the past 5 years on DBE support servicesand specific key performance measures from previous years funding (ie how many firmsutilized what was the objectives were objectives met did outcomes meet total satisfaction ifnot why next steps what was the firms capacity before and after services were performed (iesales employees bonding if applicable insurance equipment line of credit if applicablenumbertype of customers how are they doing now etc))

2) What other changes or improvements other than allowing DBES to select their own serviceproviders and a staff change will be a part of this new program

3) Was consideration to provide the new mentor protege consultant rather than separating theactivities into support services andor technical assistance

Disparity study clarifications

1) Will WSDOT consider sponsoring legislation to support the policy changes and goalincreases to insure manditory goals wont be necessary

a) If not what measures will you grant primes to operate outside the box (ie entertain bestvalue over low bid modify responsiveness by subs to require adherence to meeting voluntarygoals developing standards around federally funded gccm and other low bid procurementsthat give powers to primes to meet objectives including but not limited to mentor protegerelationships joint ventures bond waiving techniques cash flow assistance material andequipment acquisition manufacturer development specifications that have only DBES orinclude equal number of DBES as non DBES as approved installers etc)

2) Will the disparity study consultant be available for implementation or information gatheringfrom other regions

5) Will WSDOT be hiring more diverse staff amp professionaltechnical service providers inother departments outside OEO to insure policies commitments and evaluations areperformed in manner that improves diversity that reflects the communities WSDOT serves bythoughtful and legal efforts increase participation thus creating successful outcomes includingpartnerships and collaborations

Thank you and Merry Christmas

Hi Dan

Thank you for providing such thoughtful public comments questions and testimony

Regarding your public testimony below - I do not believe I am not able to answer questions ifthey are public comments Please let me know what part of this email you would likeclarification on and what part you would like considered public testimony

I appreciate your thoughtful consideration of WSDOTrsquos implementation of our civil rightsprograms

Best Regards

Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

DIDaniel Seydel IIFyi Daniel J Seydel II Platinum Group LLC 2064060844 f) 2062999934wwwplatinumbusinessgroupcom Small Business is the Answer FREE TRAINING FORENTREPRENEURS amp JOB SEEKERS - Polish your skills or make your firm standout thanksto the EntrepreneurialThu 233pDI

Daniel Seydel IIThu 1272017 1123 AMInbox Sent ItemsShow all 7 recipientsTobaynejwsdotwagov ltBayneJwsdotwagovgtJackie

Per your request below are my questions and comments some of which were verbally sharedyesterday

Congratulations on receiving the blessing of additional technical assistance dollars andcompleting the DBE Disparity Study per your report

1) Do you have any reports on your outcomes from the past 5 years on DBE support servicesand specific key performance measures from previous years funding (ie how many firmsutilized what was the objectives were objectives met did outcomes meet total satisfaction ifnot why next steps what was the firms capacity before and after services were performed (ie

sales employees bonding if applicable insurance equipment line of credit if applicablenumbertype of customers how are they doing now etc))

2) What other changes or improvements other than allowing DBES to select their own serviceproviders and a staff change will be a part of this new program

3) Was consideration to provide the new mentor protege consultant rather than separating theactivities into support services andor technical assistance

Disparity study clarifications andor comments

1) Will WSDOT consider sponsoring legislation to support the policy changes and goalincreases to insure manditory goals wont be necessary

a) If not what measures will you grant primes to operate outside the box (ie entertain bestvalue over low bid modify responsiveness by subs to require adherence to meeting voluntarygoals developing standards around federally funded gccm and other low bid procurementsthat give powers to primes to meet objectives including but not limited to mentor protegerelationships joint ventures bond waiving techniques cash flow assistance material andequipment acquisition manufacturer development specifications that have only DBES orinclude equal number of DBES as non DBES as approved installers etc)

2) Will the disparity study consultant be available for implementation or information gatheringfrom other regions

3) What lessons did WSDOT learn that it did not know from the other study(s)

4) What would WSDOT do different (ie scope time line process approach etc)

5) Will WSDOT be hiring more diverse staff amp professionaltechnical service providers inother departments outside OEO to insure policies commitments and evaluations areperformed in manner that improves diversity that reflects the communities WSDOT serves bythoughtful and legal efforts increase participation thus creating successful outcomes includingpartnerships and collaborations

Daniel J Seydel IIPlatinum Group LLC 2064060844f) 2062999934wwwplatinumbusinessgroupcom

Small Business is the Answer

FREE TRAINING FOR ENTREPRENEURS amp JOB SEEKERS - Polish your skills or makeyour firm standout thanks to the Entrepreneurial Institute of Washington

httpswwwyoutubecomchannelUCKL5YeVxL29HnNxqnb6hmXA

LIKE US on FaceBook if an Active Professional Development workshop provided by EIW

Construction University helps your firm or has benefited you

httpswwwfacebookcomEIWashingtonref=hl

From Bayne Jackie ltBayneJwsdotwagovgtSent Friday December 8 2017 10139 PMTo Daniel Seydel IICc Key Earl daneiwashingtonorg Nadeem Ismail Mussie Tewelde(mteweldehydro2geotechcom) graceflyrightaolcom Mary Wenner Watkinson LarrySubject RE Seydel Dan - WSDOT Disparity Study Presentation Public Testimony Hi Dan Thank you for providing such thoughtful public comments questions and testimony Regarding your public testimony below - I do not believe I am not able to answer questions if theyare public comments Please let me know what part of this email you would like clarification on andwhat part you would like considered public testimony I appreciate your thoughtful consideration of WSDOTrsquos implementation of our civil rights programs Best Regards Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov From Daniel Seydel II [mailtodanplatinumbusinessgroupcom] Sent Thursday December 7 2017 1123 AMTo Bayne Jackie ltBayneJwsdotwagovgtCc Key Earl ltKeyEwsdotwagovgt daneiwashingtonorg Nadeem Ismailltnipaintingearthlinknetgt Mussie Tewelde (mteweldehydro2geotechcom)ltmteweldehydro2geotechcomgt graceflyrightaolcom Mary Wennerltmwenn0108yahoocomgtSubject Seydel Dan - WSDOT Disparity Study Presentation Public Testimony Jackie

Per your request below are my questions and comments some of which were verbally sharedyesterday

Congratulations on receiving the blessing of additional technical assistance dollars andcompleting the DBE Disparity Study per your report

1) Do you have any reports on your outcomes from the past 5 years on DBE support servicesand specific key performance measures from previous years funding (ie how many firmsutilized what was the objectives were objectives met did outcomes meet total satisfaction ifnot why next steps what was the firms capacity before and after services were performed (iesales employees bonding if applicable insurance equipment line of credit if applicablenumbertype of customers how are they doing now etc))

2) What other changes or improvements other than allowing DBES to select their own serviceproviders and a staff change will be a part of this new program

3) Was consideration to provide the new mentor protege consultant rather than separating theactivities into support services andor technical assistance

Disparity study clarifications andor comments

1) Will WSDOT consider sponsoring legislation to support the policy changes and goalincreases to insure manditory goals wont be necessary

a) If not what measures will you grant primes to operate outside the box (ie entertain bestvalue over low bid modify responsiveness by subs to require adherence to meeting voluntarygoals developing standards around federally funded gccm and other low bid procurementsthat give powers to primes to meet objectives including but not limited to mentor protegerelationships joint ventures bond waiving techniques cash flow assistance material andequipment acquisition manufacturer development specifications that have only DBES orinclude equal number of DBES as non DBES as approved installers etc)

2) Will the disparity study consultant be available for implementation or information gatheringfrom other regions

3) What lessons did WSDOT learn that it did not know from the other study(s)

4) What would WSDOT do different (ie scope time line process approach etc)

5) Will WSDOT be hiring more diverse staff amp professionaltechnical service providers inother departments outside OEO to insure policies commitments and evaluations areperformed in manner that improves diversity that reflects the communities WSDOT serves bythoughtful and legal efforts increase participation thus creating successful outcomes includingpartnerships and collaborations

Thank you for your hard work

Daniel J Seydel IIPlatinum Group LLC2064060844f) 2062999934wwwplatinumbusinessgroupcom

Small Business is the Answer

FREE TRAINING FOR ENTREPRENEURS amp JOB SEEKERS - Polish your skills or makeyour firm standout thanks to the Entrepreneurial Institute of Washington

httpswwwyoutubecomchannelUCKL5YeVxL29HnNxqnb6hmXA

LIKE US on FaceBook if an Active Professional Development workshop provided by EIWConstruction University helps your firm or has benefited you

httpswwwfacebookcomEIWashingtonref=hl

From Erin EhlingerTo Bayne JackieSubject Support for WSDOTs proposed DBE goalDate Wednesday December 13 2017 115417 AM

I am writing to support the WSDOT recommended DBE Goal for FHWA contracts of 190 I also want to express my appreciation for the thoroughness of the WSDOT Disparity study and howthe study disclosed the disparity in WSDOT contracts that do not have a DBE or WBE goal ndash furtherreinforcing that all women-owned firms and minority owned firms face equity issues I remain concerned with the methodology required by the Code of Federal Regulations and case lawbecause of the dependence on the availability of firms in the calculation An unintendedconsequence of removing either gender or race from the goal is that many of these firms would goout of business the availability decreases and the formula then results in a smaller DBE goal Pleaselet me know how I can help influence a change to the CFR Thank you Erin Ehlinger

Erin Ehlinger PEPresident

24036 SE 47th StSammamish WA 98029erinehlingersmartcitytrafficcom425-221-0320

From Jackie EtterTo WSDOT Disparity StudySubject Why we need mandatory goalsDate Friday December 1 2017 61859 PM

As a DBE participating in bidding process I have found that regardless of the language which claims to insurethat disadvantaged business enterprises shall not be discriminated against the only way to ensure that this does nothappen is by mandating affirmative action goals Having been overlooked time and time again because of my gender when I have submitted bids that are verycompetitive with other bidders is very frustrating I have had many instances of companies using my price to getmy non DBE competitors to lower theirs The voluntary or laudatory DBE goals do nothing to ensure a level playing fieldThe only way to ensure non-discrimination is through mandatory goals

Jackie EtterWest Star Construction of Spokane

Sent from my iPhone

From Claudia HirscheyTo Key Earl Bayne JackieSubject WSDOT DBE Goal - Comment in supportDate Tuesday December 12 2017 61937 PM

Dear Earl and Jackie The WSDOT recommended DBE Goal for FHWA contracts of 190 is a small and important increasethat can further achieve equity in WSDOTFHWA contracting I am in support of the 19 DBE Goal I also want to express my appreciation for the thoroughness of the WSDOT Disparity study and howthe study disclosed the disparity in WSDOT contracts that do not have a DBE or WBE goal ndash furtherreinforcing that all women-owned firms and minority owned firms face equity issues I remain concerned with the methodology required by the Code of Federal Regulations and case lawbecause of the dependence on the availability of firms in the calculation An unintendedconsequence of removing either gender or race from the goal is that many of these firms would goout of business the availability decreases and the formula then results in a smaller DBE goal Sincerely Claudia S Hirschey PETransportation Consulting Servicesclaudiahirscheycomcastnethttphirscheytcscom2068564988 Mobile

From Nate ThomasTo WSDOT Disparity StudySubject WSDOT Proposes DBE goal of 19Date Thursday December 7 2017 42720 PM

The WSDOT should look into similar ways the Federal Gov has handled the equal opportunity forthose that fall under the DBE status and set aside specific projects for the DBErsquos and moreimportantly UDBErsquos so these companies have better chance of landing contracts Maybe a lot 10 ofthe DBE goal to set aside for only DBEs and other 9 goal met as it is done currently with COA onlarger contracts Nate ThomasSenior EstimatorD 5095688085 | C 5099941156331 North Fancher Road | Spokane WA | 99212

The information contained in this email including any attachments is confidential and may beprivileged It is intended only for the person or entity to which it is addressed and no waiver isintended by sending this email If the reader is not the intended recipient you are herebynotified that any review retransmission dissemination or other use of or taking any action inreliance upon this information is strictly prohibited If you have received this email in errorkindly notify the sender by reply email and delete the original message from any computerThank You

From Brian FujiiTo WSDOT Disparity StudySubject WSDOT propsed DBE GoalsDate Thursday December 7 2017 110638 AM

Good morning Jackie

I wanted to comment on WSDOTs proposed DBE goal to 19 I believe WSDOTs plan toincrease the overall DBE goal to 19 will provide greater opportunities for DBE contractorsin different disciplines to participate in federally funded contracts

Without the new DBE requirement and with Proposition 200 there are limited opportunitiesfor DBE contractors in disciplines different than the typical trucking flagging and rebar Inaddition there are no incentives for general contractors to go out beyond the usual truckingflagging and rebar DBE subcontractors

Increasing the DBE goals will provide opportunities for different DBE contractors in differentdisciplines to participate in WSDOT federally funded projects

Thank you for your time

RespectfullyBrian FujiiPresident Subsurface ConstructionP 2063836478F 2069604639MDBE 4M0024998

From Forman StephanieTo Bayne JackieCc Millar Roger christinenhanmailhousegov Claudia Hirschey Sarah Corbin Jiang Yingle

efaulknerenviroissuescom Diana Giraldo Kelly CheesemanSubject WTS - Disparity Study Comment LetterDate Friday December 15 2017 71020 PMAttachments 2017_Dec 15_WTSCommentLetter_WSDOT DBE Goalpdf

Dear Ms Bayne Please find our attached letter which summarizes the WTS Puget Sound Chapterrsquos support foradvancement of women in transportation and our comment letter regarding the recent DisparityStudy Please feel free to contact me if you have any questions or would like to discuss Sincerely Stephanie S Forman PEWTS Puget Sound President Transportation Project Manager

929 108th Avenue NE Suite 1300Bellevue WA 98004D 4254681548 M 2062291745stephanieformanhdrinccom

December 15 2017

Jackie Bayne Policy and Reporting Manager

Office of Equal Opportunity

Washington State Department of Transportation

PO Box 47314

Olympia WA 98504-7314

Dear Ms Bayne

On behalf of the Puget Sound Chapter of Womenrsquos Transportation Seminar (WTS) we would

like to thank the Washington State Department of Transportation for presenting to our

organization the DBE Disparity Study results We very much appreciated the presentation by Earl

Key Director of WSDOTrsquos Office of Equal Opportunity Teresa Berntsen (Director Office of Minority

and Womens Business Enterprises) as well as Leslie Jones (Director Sound Transit Office of Small

Business Development and Labor Compliance)

Following a review of the WSDOT Disparity Study and as a result of consultation with WTS

International we would like to provide WSDOT with our comments for your consideration

As you know WTS is an organization focused exclusively on attracting retaining and advancing

women in transportation By the year 2018 there will be thousands of vacancies in the

transportation industry for qualified professionals and while women account for more than half of

the worldrsquos workforce they are a very small minority in transportation disciplines

We are pleased that the outcome of the 2017 Disparity Study that recognizes the on-going barriers

for DBEs including women-owned businesses in transportation The WSDOT recommended DBE

Goal of 190 is a small and important increase that can further achieve equity in WSDOTFHWA

contracting We are also pleased that the 2017 Disparity Study has documented the disparity in

WSDOT contracts that do not have a DBE or WBE goal ndash further reinforcing that all women-owned

firms and minority owned firms face equity issues We are encouraged that the WSDOT has asked

FHWA to rescind the 2016 waiver

While WTSrsquo mission is specific to the advancement of women we are a race-neutral organization To

this end we are also deeply concerned about the underutilization of minority owned firms There is

no equity or ldquofair playing fieldrdquo without equity for all gender and races We remained concerned with

the methodology required by the Code of Federal Regulations and case law because of the

dependence on the availability of firms in the calculation An unintended consequence of removing

either gender or race from the goal is that many of these firms would go out of business the

availability decreases and the formula then results in a smaller DBE goal This consequence is

contrary to our mission

We look forward to our continued participation in WSDOTrsquos DBE advisory group we are anticipating

notice that the 2016 waiver has been rescinded and how we can work together to continue

advancing minority and women-owned firms in the transportation field

Sincerely

WTS Puget Sound Chapter

Stephanie Forman

President

C Roger Millar Secretary WSDOT

C Representative Adam Smith 9th Congressional District Washington co Christine Nhan

WTS Puget Sound Chapter

PO Box 3461

Bellevue Washington 98009

From Dave Gent - WAPATo Bayne JackieCc Tom GaetzSubject WAPA Public Comments - RE WSDOT FHWA Disadvantaged Business Enterprise Proposed GoalDate Friday December 15 2017 14119 PMAttachments 12152017 DBE Proposed Goal - WAPA Public Comments Letterpdf

Good afternoon Jackie Please find attached WAPArsquos ldquofor the public recordrdquo comments with respect to WSDOTrsquos proposedDBE Goals FHWA funded work I assume that the Master DBE Directory was not sent to you this week so as a result we were notable to review the directory before the close of the public comment period That fact is noted withinour comment letter Thank you for your efforts Have a good weekend

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Friday December 8 2017 1219 PMTo Dave Gent - WAPA ltdavegentasphaltwacomgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hello Dave WSDOT did not take possession of this directory as part of our review process We will provide youwith the records without submitting a formal request However we need to get them from theconsultant first I will hopefully have them to provide next week I will keep you updated on therequest Have a nice weekend Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal Opportunity

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

December 15 2017

Jackie Bayne Policy Manager WSDOT Office of Equal Opportunity Delivered via e-mail to BayneJwsdotwagov RE Public Comment (as requested) to Proposed Overall DBE Goal for the FHWA (2018 ndash 2020) Ms Bayne Thank you for your presentation via webinar on December 5 2017 outlining WSDOTrsquos evaluation process used to determine the proposed overall DBE goal for the FHWA Thank you also for the Colette Holt amp Associates (CHA) DBE Advisory Group presentation made on September 14 2017 Both presentations helped to distill the findings of the 2017 Disparity Study produced by CHA In response to Earl Keyrsquos initial informal request to comment on the proposed overall DBE goal made during the DBE Advisory Committee teleconference held on October 12th we provided a list of reasons that we believe justify a lower DBE goal than is now being proposed Our initial response to Mr Keyrsquos request did not serve to influence WSDOT and the current proposed goal remains at 190 The arguments provided on October 12th against the significant increase in the proposed DBE goal (versus the previous goal and recent historic DBE participation) are repeated and supplemented below and will serve as the Asphalt Pavement Associationrsquos (WAPArsquos) official public comments

In concert with WSDOT and the OWMBE WAPA and the construction firms that WAPA represents have demonstrated a commitment to the principals of equal opportunity for all ldquoready willing and ablerdquo firms for the entire history that our DBE program has been in place WAPA has continuously demonstrated its commitment to the goals of the DBE program and for increasing the representation of disadvantaged groups within our industry as both workers and owners of firms Please recognize that WAPArsquos oversight and critique of the DBE program has always attempted to balance the principals of fair and open competition with the practical aspects of the low bid compressed schedule high performance standards demanded within the WSDOT marketplace Our comments below are meant to enhance WSDOTrsquos and OWMBErsquos understanding of the market and to hopefully have WSDOT fully consider all of the dynamics that are at play when proposing its Triennial DBE goal for FHWA projects Current DBE Capacity vs Historically Robust Market In advocating for a realistic and defensible DBE goal it has always been WAPArsquos position that it is paramount that the realities of the marketplace and true certified DBE subcontracting capacity should be a primary standard While a ldquostretchrdquo goal may appear to be progressive on its face it comes with consequences for all of the parties involved in the WSDOT federal aid contracting arena To balance the dynamics of the WSDOT contracting system the DBE goal should be tempered with the realities of the market and with a true measure of the underlying effectiveness of the DBE support services available to contractors

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 2 of 6 The first point of fact that has not been given any apparent consideration by WSDOT in its evaluation of the current capacity of certified DBErsquos is that there is an historically robust workload scheduled to be performed in the 2017 through 2022 time-frame particularly in the Puget Sound ldquoEverett to Olympiardquo corridor By WSDOTrsquos own estimates (see Attachment A) public works construction project starts in the 2018 to 2022 time-frame in this region will exceed $333 billion (B) counting the work projected from just five public entities WSDOT will be taking a decidedly ldquoback seatrdquo role during this period to Sound Transit which will have construction project starts of $226B vs WSDOTrsquos projected volume of $67B WSDOTrsquos summary publication titled Washington State Department of Transportations Proposed Federal Highway Administration Triennium Disadvantaged Business Enterprise Goal Federal Fiscal Years 2018-2020 states correctly that ldquoIncluded among the types of evidence that must be considered are the current capacity of DBEs to perform work on WSDOTrsquos federally-assisted contracts as measured by the volume of work DBEs have performed in recent yearshelliprdquo (Step Two Adjustment discussion) With the Sound Transit program being over 300 larger than the total WSDOT program in this region a sober assessment of true certified DBE capacity in the next three years needs to be considered by WSDOT If the huge construction boom over the next five years does not prompt a Step Two Adjustment then it becomes obvious that the realities of the market are being ignored by WSDOT for DBE goal setting Put another way if the 2018 through 2022 level of contracting activity does not warrant a goal adjustment what will DBE Access Barriers Not Yet Addressed The CHA 2017 Disparity Study points out multiple recommendations in Section VII that impact DBE participation and access to the market Assessments relating to those impacts and the state of maturity in addressing the CHA recommendations should be considered when assessing the DBE goal Many of the CHA recommendation have not been adequately addressed at this point in time Some of the prime examples are listed below Increase Certification and Expertise ndash The Disparity Study as explained to us includes all minority- (MBE)

and women-owned (WBE) firms that could be readily identified that perform work within Washington State and that perform work within the NAICS code framework CHA developed to cover WSDOT project work During the various presentations relating to the Disparity Study WSDOT representatives said that outreach to currently non-certified MBE amp WBE firms has increased and that WSDOT aspires to bolster its list of certified firms in the future but this effort is just beginning and the success of the effort needs to be means tested against the broader population of MBE amp WBE firms included in the CHA base line evaluation As the Disparity Study uses a much broader population of MBE WBE contractors to arrive at its conclusions (both non-certified firms and firms too large for certification) it follows that the calculated DBE proposed goal is overstated to include capacity that does not currently exist within WSDOTrsquos certified DBE framework Unless OMWBE is experiencing sudden and unprecedented success in recruiting new MBEWBE firms the DBE goal should be adjusted downward to recognize that the ldquoready willing and ablerdquo contractors that WSDOT has certified is only a subset of the total MBEWBE contracting population used in the Disparity Study evaluation

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 3 of 6

Until the promised WSDOT outreach registration efforts result in a substantial increase in available certified DBE firms it is premature to count the entire population of minority- and women-owned contractors as available to participate in WSDOT contracting It is unreasonable for WSDOT to project availability capacity using the entire MBEWBE population when only its currently truncated list of certified firms is acceptable to count toward the DBE goal

A corollary to the Increase Certification and Expertise discussion above is that the calculation of the Base Figure evidently includes the broadest practical population of MBE and WBE firms identifiable (without a review of the CHA Master DBE Directory which has not been supplied prior to the close of the public comment period the scope of the directory cannot be ascertained) If this directory includes a large population of MBEWBE firms that are not certified or are too large to be certified then the Base Figure calculation should be adjusted to reflect that certified DBE firms are a fraction of the total MBEWBE firms used to arrive at the 19 suggested DBE goal With respect to the CHA Master Directory it is our understanding the WSDOT was not given the directory as part of its evaluation of the Disparity Study and it follows that it did not evaluate the proposed DBE goal in the context of the CHA Master DBE Directory In our opinion an informed decision on adjusting the CHA baseline goal calculation can only be done after an extensive evaluation of the CHA Master DBE Directory If this has not been done WSDOT has not exercised due diligence in evaluating the context and underpinnings of the CHA Disparity Study and a certified DBE Triennium goal proposal to the FHWA is premature Increase Contract ldquoUnbundlingrdquo ndash If this proposed strategy (suggested by the CHA Study) is undertaken

certified DBE Subcontractors currently available will be engaged as Prime Contractors and the value of their prime contracts will bolster the overall percentage of certified DBE contracting but a systematic effort and strategy to ldquounbundlerdquo has not been articulated by WSDOT The key question of how this effort can be accomplished without increased cost to the taxpayers and increased inconvenience for the traveling public As noted in the CHA study (page 129 final paragraph) ldquoUnbundling must be conducted however within the constraints of the need to ensure efficiency and limit cost to the taxpayersrdquo As of this writing no overarching strategy for further unbundling with proper accountability has been articulated by WSDOT to the DBE Advisory Group

Review Insurance and Experience Requirements ndash Impediments to certified DBE participation due to

necessary insurance and experience standards cannot be solved by the prime contracting community Unless and until WSDOT puts together programs to address the burden of the substantial risks shouldered by Prime Contractors on WSDOT contracts barriers for streamlined utilization of certified DBE firms will continue to exist These market driven barriers will continue to dampen the availability of certified DBE Subcontractors that are able to perform within WSDOTrsquos strict criteria without unduly transferring risk to the Prime Contractor

Better Partnering to Overcome DBE Failures to Perform ndash Prime Contractors are held fully responsible to maintain the project schedule and are subject to project liquidated damages even when they may be struggling to deal with Subcontractor performance issues It is well-established that replacing a certified ldquocondition of awardrdquo (COA) DBE Subcontractor is very onerous and likely very costly to the Prime Contractor Unfortunately the imposition of strict and often counter-productive commercially useful function (CUF) rules often compound this issue as Prime Contractors cannot help COA DBE Subcontractors work through capacity expertise or time-related issues that impact timely performance

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 4 of 6

WSDOT needs to be a much better partner in the process of dealing with under-performing or non-performing certified DBE Subcontractors The current standard operational procedure places all of the exposure for non-performance onto the Prime WSDOT does not have an equitable system to account for non-performing or under-performing certified DBE Subcontractors hired as a condition of award (COA)

Performance Information and Training ndash Commercially useful function rules (CUF) and the lack of clear benchmark definitions for good faith effort (GFE) standards remain barriers for improving accountability within the DBE system and in turn lead to distorted DBE participation rates These items remain amorphous due to lack of training or lack of historic information Chronic uncertainty exists regarding both of these items Until WSDOT changes and improves its approach to provide transparency and certainty for both the prime bidding amp subcontracting parties true certified DBE capacity will continue to be masked and the resultant higher subcontracting costs associated with a distorted marketplace will continue to be hidden

WAPA respectfully suggests that simply adding an ldquoEstimated DBE Subcontract Premiumrdquo line to the current DBE bid forms would help to establish benchmarks that could begin to be used to ldquomeans testrdquo good faith efforts If this information had been gathered over the last 20 years of the DBE program meaningful GFE standards could have been developed and could be in place today

An in-depth review of CUF standards would also provide clarity For instance it is unclear why force account items performed by certified DBEs are currently counted at only 50 of the value of the work How was this benchmark established Has it been reviewed since imposed Did it ldquosolverdquo whatever inequity WSDOT was trying to address Better clarity may lead to more expanded opportunities for certified DBE Subcontractors

Enhanced Supportive Services and Business Development Programs ndash Unless and until stronger programs of these types are shown to be effective in boosting certified DBE business development increased DBE participation due to stronger business acumen should not be relied upon when setting the new DBE goal

Does OMWBE have a reasonable expectation that future plans for enhanced and expanded programs will be more successful than those employed in the past Assuming that certified DBE Subcontractors will be better prepared to deal with the WSDOT contracting environment than in the past should not be relied upon to boost DBE participation goals Especially troubling were the multiple references within the CHA report highlighting that DBEs believe that the staff at OMWBE lack a deep knowledge about the highway construction industry (eg Study page 129 2nd paragraph) Does OMWBE have a path forward that will address this issue and thus improve supportive services impacts

Develop a Bonding and Financing Program for SBEs ndash This is completely outside of the prime contracting

communityrsquos scope of influence WSDOT must find a way to institute changes that both protect the taxpayer and help increase certified DBE bonding capacity and access to financing ndash very large hurtles To assume that these hurtles can effectively be overcome within the 2018 ndash 2020 time frame when they have been chromic issues for the past 20 plus years of DBE program development is not rational

A helpful innovation would be for WSDOT to underwrite performance and payment bonds for certified DBE firms or to create promote a system that helps certified DBE firms obtain private bonding Bridging the gap to address capital access and performance risks (bonding) must be championed by WSDOT

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 5 of 6

Base Figure Adjustment to Address Available Subcontract Volume and DBE Prime Contracts It is a fact that mid- to large-sized MBEWBE firms that compete both as Prime Contractors and as Subcontractors are not eligible to be OMWBE certified DBEs Further the current amount of contract unbundling for greater DBE access to WSDOT prime contracting (see below) accounts for a very low dollar volume of prime contracts performed by certified DBEs Finally by specification (WSDOT standard specification 1-081) Prime Contractors are obligated to perform 30 of the total volume of the work (less specialty work) or stated another way a maximum of 70 of the dollar volume on WSDOT projects is typically available to award to subcontractors These market dynamics are NOT addressed in the Disparity Study A responsible DBE goal made absent of these facts should not be implemented A reasonable adjustment to the proposed 19 DBE goal is presented below

bull The percent of WSDOT prime contracts awarded to certified DBE firms is likely less than 5 by total WSDOT

contract volume Assuming this approximation is valid (likely very conservative) then the amount of WSDOT contract work available to certified DBE firms via subcontracting should be adjusted to account for the factors outlined above The Base Figure (19) should be adjusted to recognize that a 70 maximum subcontractor participation is available (in the numerator) and to account for the assumed 5 certified DBE prime contracts in the denominator Reasonable Base Figure Adjustment 19 (proposed) x 70 subcontracts available divide 95 of Non-Certified DBEs as Prime Contract Volume = 190 x 0737 = 140 adjusted goal This is an adjustment based on the practical dynamics of the WSDOT contracting system and it represents a more realistic look at the true subcontract volume that is available for Prime Contractors to award to certified DBE firms

Conclusions

Until the items listed above are addressed and in place it is not reasonable to believe that DBE goals can be increased by nearly 163 (from 117 to 190) When the projected robust public works contracting market is appropriately considered the true availability of certified DBE Subcontractors for WSDOT contracts will be truncated due to demand across all public works sectors With multiple strong public works programs competing for a limited population of certified DBEs the ability to meet increased WSDOT DBE goals will be severely challenged Without very clear concise and transparent good faith effort rules the ability to address DBE goals that greatly overestimate true near term certified DBE capacity will result in non-attainment bid day chaos failures to perform andor rapidly increased pricing

The clear conclusion is that at this point in time under the current circumstances without effectively instituted new programs rules procedures that could enhance the certified DBE programrsquos overall effectiveness we believe that the DBE goal should remain at or near 12 As OMWBE documents and demonstrates its future successes in improving access and eliminating capacity barriers only then should the DBE goal be re-evaluated and increased

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 6 of 6

In closing please remember that it is rare that the contracting community is asked our opinion with respect to the WSDOTrsquos DBE policies and so this letter is somewhat a vehicle to highlight collective concerns It is our belief that the majority of the Prime Contractors in Washington state support the objective of creating a level playing field for ready willing and able DBEs

If the level playing field is not yet possible in the absence of the DBE program then the key is to set realistic goals that recognize reflect and address the hard realities and market dynamics imposed by WSDOTrsquos bedrock environment of awarding contracts to the lowest cost responsible and responsive Contractor

Respectfully submitted Washington Asphalt Pavement Association

David Gent Tom Gaetz Executive Director Senior Advisor

Attachment A ndash WSDOT Central Puget Sound Public Works Contracting Projection 2018 - 2022

Con

stru

ctio

n Pr

ojec

t Sta

rts

2018

-202

2S

ound

Tra

nsit

$22

6 B

SD

OT

$08

B

Tran

sit

amp O

ther

s$1

7 B

WS

DO

T$6

7 B

Por

t of

Sea

ttle

$15

B

TOTA

L$3

33

B

Source N

ov 1

9 2

017

pres

enta

tion

to W

APA

Ann

ual M

eetin

g

Attachment A

Work (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Dave Gent - WAPA [mailtodavegentasphaltwacom] Sent Thursday December 7 2017 144 PMTo Bayne Jackie ltBayneJwsdotwagovgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hi again Jackie Irsquom fine thanks and hope you are the same Interesting The Master DBE Directory is the basis for and integral to the conclusions of the DisparityStudy Is it not then part of the information needed to fully review and comment on the DisparityStudy Was it not provided by CHA to WSDOT for review We are trying to fully understand thestudy and if this directory was part of the study why would it need to be obtained by a publicrecords disclosure It should be in the public domain and not restricted from ease of access If you are sure that a public records request is needed Irsquoll start that process but we will need tonote that point of fact when we submit our public comments If you are able to reconsider please let me know Respectfully

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Thursday December 7 2017 126 PMTo Dave Gent - WAPA ltdavegentasphaltwacomgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hello Dave I hope you are doing well

That information would likely be obtained through a public disclosure request Best Regards Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Dave Gent - WAPA [mailtodavegentasphaltwacom] Sent Thursday December 7 2017 113 PMTo Bayne Jackie ltBayneJwsdotwagovgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Jackie Can you please provide an electronic file or provide a weblink for the Master DBE Directory thatColette Holt amp Associates developed for the WSDOT Disparity Study 2017 (first referred to on Page 8of the Disparity Study) I did not see a link to this Master DBE Directory within the study Thanks

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Friday October 27 2017 1118 AMTo Kenyon Wendy ltKenyonWwsdotwagovgt Adams E W ltewadamssystemsclcomgtAdekoyaAndrew ltandrewadekoyabccomgt AlyssaBalllegwagov Anindita Mitraltamitracrea-affiliatescomgt APRISeattlehotmailcom Armstrong CharlotteltCharlieAatgwagovgt Ato Apiafi Architects PLLC ltatoaatoapiaficomgt benzfanwaorgBerntsen Teresa (OMWBE) ltTeresaBomwbewagovgt Billingsley Andrealtbillinawsdotwagovgt Bramlet Erica ltEricaBramletlegwagovgt Brooks Julius

ltBrooksJwsdotwagovgt Brown Jason ltjbrownldccorpcomgt bwallacenwlaborersorgCamden Allison ltCamdenAwsdotwagovgt carlllivingstongmailcom Cerda OscarltCerdaOwsdotwagovgt Christopher Chris ltChristCwsdotwagovgt ckerneycaawagovdanplatinumbusinessgroupcom davegentasphaltwacom David BalltDavidsignsnowmillcreekcomgt Davis Khalia ltDavisKhwsdotwagovgt Davis RaShelle (GOVltrashelledavisgovwagovgt Dayton Jo ltDaytonJwsdotwagovgt ddhondtagcwacomDebbieDriverlegwagov Dennis ltdennisahlkiewitcomgt dmcleodnwlaborersorgdrart6651gmailcom Duncan Enid lthigradeincgmailcomgt EltonltEltonwashingtonstatetruckingcomgt eprincecaawagov flemosldccorpcomfmartineznwmtnmsdcorg geoffshookatkncom glovelady ltgloveladyexcelglovescomgtGrabow Katie ltkgrabowsystemsclcomgt Guilfucci Jackie ltJackieGuilfucciskanskacomgt HealyLinda ltHealyLwsdotwagovgt Higginbotham Breanne ltHigginBwsdotwagovgt HirscheyClaudia ltclaudiahirscheycomcastnetgt Holt Colette ltcoletteholtmwbelawcomgt Huff JohnltHuffJwsdotwagovgt Iniguezchawagov JacksonMaynardlegwagov Jimmy Matta(jmattaalcantarassoccom) ltjmattaalcantarassoccomgt kellywickergovwagov Key EarlltKeyEwsdotwagovgt Kirk Jon ltjkirkwhhnfscomgt Kris Purrier ltkpurrierhwageocomgtleewabuildingtradesorg lesliejonessoundtransitorg Liz Evans ltlevansagcwacomgt LopezErin lterinlopezdeswagovgt Martha Cerna ltMarthaPSLCCORGgt Martin-Arnold EdwinaltMartinEwsdotwagovgt Mary Lerdahl ltmarydbeelectricinccomgt McCarty Hannahlthannahmccartylegwagovgt Melissa L Boyles ltmelissaboylesmwbelawcomgt Metcalf KeithltMetcalKwsdotwagovgt michaelicapaawagov Michelle ltMichelleTTCC26netgt MillarRoger ltMillarRwsdotwagovgt Nakamura Jason ltjasonnakamura1-alliancecomgtNavarroLportseattleorg olliepmt-solutionscom pastorbanksesbctacomacom PatrickHughes ltphugheshughesgroupbizgt Petersen Jodi (FHWA) ltJodiPetersendotgovgtrabbottliunaorg rcarmsteadgmailcom ricemportseattleorg Riley D ltdrileylydigcomgtSeling ltSelingjpfranciscomgt sherryharrisergosynchcom Stell MellodyltStellMwsdotwagovgt terigobintulaliptribes-nsngov timwilliamfactorycom tinaterra-tdicom tkellyldccorpcom tomgaetzmsncom vcollinsacec-waorgverlenejazzmsncom Wang Albert ltWangAatgwagovgt Waugh GregltGregWMaxKuneyComgt Yates Henry ltYatesHWSDOTWAGOVgtCc Tom Gaetz lttomgaetzmsncomgt Dave Gent - WAPA ltdavegentasphaltwacomgt VanCollins ltvcollinsacec-waorggt Daniel Seydel II ltdanplatinumbusinessgroupcomgt MaynardJackson ltJacksonMaynardlegwagovgt Carl Livingston ltcarlllivingstongmailcomgt DonMcLeod ltdmcleodnwlaborersorggt JIMMY MATTA ltjimmymattamsncomgt Prince Ed(CAAA) lteprincecaawagovgt David DHondt ltddhondtagcwacomgt Irene Reyesltgloveladyexcelsupplycompanycomgt McDaniel Craig ltMcDaniCwsdotwagovgtsherryharrisergosynchcomSubject WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Good morning On Monday October 30th WSDOT will be releasing the proposed overall Federal HighwayAdministration Disadvantaged Business Enterprise goal attached for public comment throughDecember 15 2017 This overall DBE goal is based upon the recently completely DBE ProgramDisparity Study WSDOT is proposing a 19 percent overall DBE participation goal on Federal Highway

Administration-funded projects for federal fiscal years 2018 through 2020 DBE goals fortransportation projects that receive federal funds represent a percentage of the value of work inwhich minority- and women-owned businesses should participate Once finalized and submitted toFHWA early next year the goal will be effective through Sept 30 2020

The purpose of the DBE program is to create a level playing field for firms owned and operated bydisadvantaged individuals wanting to participate in federally assisted highway transit and aviationprograms The attached overall DBE goal is for FHWA funded projects WSDOT will be updating theFTA and FAA overall DBE goals in the near future

If you have any questions please contact Earl Key Director of the Office of Equal Opportunity at3607057091 or KeyEwsdotwagov Thank you Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

  • Proof-Of-Publicationpdf
    • Mediapdf
      • AGC
      • Daily Journal
      • Daily Medium
      • DBEGood
      • OMWBE
      • Seattle Medium
      • Tabor 100
      • The Chronicle
      • Tukwila
        • King County
          • Public-Comments-20180111pdf
            • 19 DBE Requirement(1)
            • AGC Comments on Proposed 10 Goad
            • Backstrom Curb amp Sidewalk
            • comments on WSDOT proposed DBE goal
            • Cowlitz County Public Works
            • DBE Contracting goals
            • DBE Goal
            • DBE Program Disparity Study
            • Disparity Study Comments from City of Spokane
            • FW_ WSDOT News - WSDOT seeks comments on propos
            • Proposed DBE Goals
            • RE_ DBE Contracting Goal Comments
            • Re_ DBE Goal Comments
            • Re_ Seydel Dan - WSDOT Disparity Study Present
            • Support for WSDOTs proposed DBE goal
            • Why we need mandatory goals
            • WSDOT DBE Goal - Comment in support
            • WSDOT Proposes DBE goal of 19
            • WSDOT propsed DBE Goals
            • WTS - Disparity Study Comment Letter

V i s i o n V o i c e V a l u e

(httpswwwfacebookcompagesAGC-of-Washington151343784890595) (httptwittercomAGCofWashington)

(httpwwwlinkedincomcompanyagc-of-washington)1200 Westlake Avenue N Suite 301 Seattle Washington 98109 Phone 2062840061 | Fax 2062854546 Privacy Policy (about-usprivacy-policy) | AGC of America Website (httpswwwagcorg)

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WSDOT proposes 19 DBE goal on FHA-funded projectsWSDOT is proposing a 19 percent overall DBE participation goal on Federal Highway Administration-funded projects for federal fiscal years 2018 through 2020 WSDOT will submit the proposal to FHWA early next year following a public comment period Once submitted to FHWA the goal will be effective through Sept 30 2020 (See info on public meetings below)

AGC is reviewing the proposal and considering its response AGC members are encouraged to send comments to AGC Chief Lobbyist Jerry VanderWood(mailtojvanderwoodagcwacom) 3603525000

WSDOT said the 19 goal is based upon the availability of ready willing and able DBEs as established by the WSDOT Disparity Study (See summary of the 2017 disparity study here (httpwwwwsdotwagovsitesdefaultfiles20160509WSDOTDisparityStudyPresentation2017pdf) see full study report here(httpwwwwsdotwagovsitesdefaultfiles20170911OEO-DisparityStudy-2017pdf))

In its report study authors Collete Holt and Associates concluded ldquoThese results provide the agency with the evidence necessary to narrowly tailor its DBE program for federal-aid contracts as required by 49 CFR Part 26 The statistical data and the anecdotal testimony provide a sufficient basis for the continued use of narrowly tailored remedial race- and gender-conscious measures to ensure full and fair access by all firms to WSDOT federally-funded prime contracting and associated subcontracting opportunitiesrdquo

WSDOT will host a series of public meetings to provide opportunities for individuals to comment in person

Spokane 2 ndash 4 pm Tuesday Nov 28 (WSDOT Eastern Region Headquarters 2714 N Mayfair St)

Vancouver 2 ndash 4 pm Wednesday Nov 29 (WSDOT Vancouver Headquarters 11018 NE 51st Circle)

Seattle 2 ndash 4 pm Thursday Dec 7 (WSDOT Northwest Region Headquarters 15700 Dayton Ave N Shoreline)

Those who are unable to attend one of the meetings can participate in a no-cost webinar from 230 ndash 430 pm on Tuesday Dec 5 Advance registration for the webinar is required Those interested in participating should email DisparityStudywsdotwagov (adminDisparityStudywsdotwagov)

Written comments can also be submitted by mail or email to Jackie Bayne Policy amp Reporting Manager Washington State Department of Transportation Office of Equal Opportunity PO Box 47314 Olympia WA 98504-7314 or to DisparityStudywsdotwagov (adminDisparityStudywsdotwagov20)

WSDOT will consider all written comments received through Friday Dec 15 2017

Documents detailing the methodology used for determining the FHWA DBE goals are available at wwwwsdotwagovequalopportunity(httpwwwwsdotwagovequalopportunity) or in person at the Transportation Building 310 Maple Park Ave SE in Olympia

Page 1 of 1WSDOT proposes 19 DBE goal on FHA-funded projects - AGC of Washington

1112018httpwwwagcwacompostswsdot-proposes-19-dbe-goal-on-fha-funded-projects

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October 31 2017

WSDOT proposes new DBE goalsBy JOURNAL STAFF

OLYMPIA mdash The Washington State Department of Transportation is proposing a 19 percent overall DBE participation goal on Federal Highway Administration-funded projects for federal fiscal years 2018 through 2020

WSDOT plans to submit the goals early next year and is seeking comments through Dec 15

To read this story in full or purchase a login subscription

HOME MyDJC BUSINESS CONSTRUCTION REAL ESTATE ARCHITECTURE amp ENGINEERING ENVIRONMENT TECH WEEKEND FEATURES SEATTLESCAPE

Page 1 of 2Seattle DJCcom local business news and data - Construction - WSDOT proposes new D

1112018httpwwwdjccomnewsco12105680html

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()

WSDOT seeks comments on proposed DBE contracting goal for highway projects - Seattle MtgWSDOT seeks comments on proposed DBE contracting goal for highway projects

Comments accepted through Dec 15

OLYMPIA ndash Contractors trade and labor organizations small and disadvantaged businesses and all others who may be interested in working with the Washington State Department of Transportation are invited to comment on the agencyrsquos proposed Disadvantaged Business Enterprise goal for Federal Highway Administration contracts

DBE goals for transportation projects that receive federal funds represent a percentage of the value of work in which minority- and women-owned businesses should participate WSDOT is proposing a 19 percent overall DBE participation goal on Federal Highway Administration-funded projects for federal fiscal years 2018 through 2020

Once submitted to FHWA early next year the goal will be effective through Sept 30 2020

The purpose of the DBE program is to create a level playing field for firms owned and operated by disadvantaged individuals wanting to participate in federally assisted highway transit and aviation programs

Connecting with communities WSDOT will host a series of public meetings to provide opportunities for individuals to comment in person

Spokane meeting was held Nov 28

Vancouver meeting was held Nov 29

Seattle

2 ndash 4 pm Thursday Dec 7WSDOT Northwest Region Headquarters15700 Dayton Ave N Shoreline

Page 1 of 3WSDOT seeks comments on proposed DBE contracting goal for highway projects - Seattl

1112018httpwwwomwbewagovabouteventswsdot-seeks-comments-proposed-dbe-contracting

Date Thursday December 7 2017 - 200pm to 400pm

Other ways to provide comment Those who are unable to attend one of the meetings can participate in a no-cost webinar from 230 ndash 430 pm Tuesday Dec 5 Registration for the webinar is required Those interested in participating should email DisparityStudywsdotwagov (mailtoDisparityStudywsdotwagov)

Written comments can also be submitted by mail or email Jackie Bayne Policy amp Reporting Manager Washington State Department of Transportation Office of Equal Opportunity PO Box 47314 Olympia WA 98504-7314 DisparityStudywsdotwagov(mailtoDisparityStudywsdotwagov)

Documents detailing the methodology used for determining the FHWA DBE goals are available for review at all WSDOT region headquarters offices and at the Transportation Building 310 Maple Park Ave SE Olympia They are also available online at wwwwsdotwagovequalopportunity (httpwwwwsdotwagovequalopportunity)

WSDOT will consider all written comments received through Friday Dec 15 2017

WSDOT keeps people businesses and the economy moving by operating and improving the states transportation systems To learn more about what were doing go to wwwwsdotwagovnews (httpwwwwsdotwagovnews) for pictures videos news and blogs Real time traffic information is available at wwwwsdotcomtraffic(httpwwwwsdotcomtraffic) or by dialing 511

Americans with Disabilities Act (ADA) Information Accommodation requests for people with disabilities can be made by contacting the WSDOT DiversityADA Affairs team at wsdotadawsdotwagov (mailtowsdotadawsdotwagov) or by calling toll-free 855-362-4ADA (4232) Persons who are deaf or hard of hearing may make a request by calling the Washington State Relay at 711

Title VI Statement to Public It is WSDOTrsquos policy to assure that no person shall on the grounds of race color national origin or sex as provided by Title VI of the Civil Rights Act of 1964 be excluded from participation in be denied the benefits of or be otherwise discriminated against under any of its federally funded programs and activities Any person who believes his or her Title VI protection has been violated may file a complaint with WSDOTrsquos Office of Equal Opportunity For additional information regarding Title VI complaintprocedures andor information regarding our non-discrimination obligations please contactOEOrsquos Title VI Coordinator at 360-705-7090

Page 2 of 3WSDOT seeks comments on proposed DBE contracting goal for highway projects - Seattl

1112018httpwwwomwbewagovabouteventswsdot-seeks-comments-proposed-dbe-contracting

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aacc~~949lt7BB7lt3726C4ltG3401324ltB7ltj=9

13 $amp()(

(+amp13ampampampampampamp$amp -011234567

89lt=gtABCDgtEF39=GHIJK1L0M1JLNO1L040K420PJLJLQ0K5R015JKNON70220K445N04S0K10Q4P6N5KNNN0K4022J1TLNUTJ70VP5K1LN145KUJLW5KQU51T1TX0NT5KQ1JK101YZ0L17K1J[CL0KNZJL1015JKXYgtC]0L5KS5141JMJ77K1JK1T0QKMVNZLJZJN4Y5N04S0K10Q4_6N5KNNK1LZL5NY_]QJ02[JL4L02a5QTU0VG475K5N1L015JKMJK1L0M1NbY_QJ02N[JL1L0KNZJL1015JKZLJcM1N1T01LM5S[4L02[6K4NLZLNK10ZLMK10QJ[1TS026J[UJLW5KUT5MT75KJL51Vd0K4UJ7KdJUK4P6N5KNNNNTJ624Z0L15M5Z01bXYgtC5NZLJZJN5KQ0efZLMK1JSL022Y_Z0L15M5Z015JKQJ02JK4L02a5QTU0VG475K5N1L015JKd[6K44ZLJcM1N[JL[4L02[5NM02V0LNghei1TLJ6QTghghbgtKMN6P751141JaXG0L2VKj1V0LO1TQJ02U522P[[M15S1TLJ6QTZ1bkhOghghbCTZ6LZJNJ[1TY_ZLJQL075N1JML0102S2Z20V5KQ[524[JL[5L7NJUK40K4JZL014PV45N04S0K10Q45K45S54602NU0K15KQ1JZ0L15M5Z015K[4L022V0NN5N14T5QTU0VO1L0KN510K40S5015JKZLJQL07NbXYgtCU522TJN10NL5NJ[Z6P25M715KQN1JZLJS54JZZJL16K515N[JL5K45S54602N1JMJ77K15KZLNJKlZJW0KOgHmZb7bJKC6NbOAJSbgi01XYgtC0N1LKQ5JKa04n60L1LNHgoemA30V[05L1bOZJW0Kplt0KMJ6SLOgHmZb7bX4NbOAJSbgf01XYgtClt0KMJ6SLa04n60L1LNHeeheiAqeN1I5LM2Olt0KMJ6SLp0112OgHmZb7bCT6LNbOYMbo01XYgtCAJL1TUN1Q5JKa04n60L1LNHeqohhY0V1JKGSbAOTJL25Kbrstuvwxyz|v|~u|usCTJNUTJ0L6K0P21J011K4JKJ[1T715KQNM0KZ0L15M5Z015K0KJdMJN1UP5K0L[LJ7glkhHmlkhZb7bC6N40VOYMbqbQ5N1L015JK[JL1TUP5K0L5NLn65L4bCTJN5K1LN145KZ0L15M5Z015KQNTJ6247052Y5NZ0L51V164VUN4J1bU0bQJSbXL511KMJ77K1NM0K02NJPN6P75114PV7052JL7052l0MW5_0VKO9J25MVZJL15KQ30K0QLOX0NT5KQ1JK101YZ0L17K1J[CL0KNZJL1015JKOgt[[5MJ[n602gtZZJL16K51VO9bgtb_JjmokemOgt2V7Z50OXGfiqhmdokemJL705241JY5NZ0L51V164VUN4J1bU0bQJSbYJM67K1N410525KQ1T71TJ4J2JQV6N4[JL41L75K5KQ1TaXGY_QJ02N0L0S0520P2[JLLS5U01022XYgtCLQ5JKT04n60L1LNJ[[5MN0K4011TCL0KNZJL1015JK_65245KQOkeh30Z290LWGSbOgt2V7Z50bCTV0L02NJ0S0520P2JK25K01UUUbUN4J1bU0bQJSn602JZZJL16K51VbXYgtCU522MJKN54L022UL511KMJ77K1NLM5S41TLJ6QTL540VOYMbeqOgheob iexclcentpound currenGPJ611TG61TJL G4SL15N7K1N

13

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AringEgraveAacuteEacuteAringcentAEligEcircEumlAcircCcedilIgraveEumlAacuteAacuteAgravecentfrac14frac12IacuteAacuteAgravefrac34AacuteIcircCcediliquestAEligiexclIumlAcircAacuteEumlETHEgraveNtildeOgraveOgraveEcircAacuteAEligIacuteiquestAEligfrac14AacuteAacuteyenAacuteiquestAEligCcedilAumliquestiquestAringiquestAacuteAEligAacuteiquestAEligAringAcircAacuteAtildeAringAtildeEcircAcircCcedilETHAtildeEcircAringiquestiquestAEligCcedilAtildeOacutefrac34Aacutefrac34CcedilAumliquestAEligCcedilAacute EacuteEacuteEacuteOcircOtildeEgraveOumlOcircOumlETHtimesIgravefrac12Agravefrac34AtildeiquestAEligfrac34iquestAtildeAgrave AringIgraveAacuteEgraveAringiquestEcircEumlAcircCcedilEgravefrac12CcediliquestAacute AacuteAgravefrac34AtildeiquestAEligEumliquestiquestAacutefrac34frac34frac34ETHCcedilAacuteAringAacuteiquestAEligCcedilAumlAringOslashCcediliquestAacuteOslashIgraveNtildeNtildeIgraveOgraveETHUgraveOgraveOgravefrac12AgraveAcirc AacuteAgraveCcedilAringiquestAacuteAumlAacuteEcirciquestAEligCcedil iquest iquestAringfrac34AEligAEligAacuteAtildeEcirciquestAEligAacuteCcediliquestAEligiquestiquestAcircfrac34AEligAacuteiquestAEligCcedilAacuteAacuteiquestAumliquestAacuteiquestAElig EcirciquestAacuteAgraveiquestCcedilAgravefrac34EcircEumlAacuteAEligiquestAacuteAEligiquestAacuteiquestAEligCcedilAringCcedil Ecirc AcircAEligAacuteAEligAacuteAacuteiquestAEligUacuteAumlAacuteAEligAacuteAumlAEligAacuteCcedil AacuteAgraveAcirc frac34UcirciquestAEligfrac34AgraveiquestAumlAgraveAringiquestAEligiquestAacuteEcircOcircAEligfrac34AringAEligOcircfrac34AEligAtildeAcirciquestAEligAgraveAcircAacuteiquestAumliquestAacutecentfrac14frac12iquestiquestAEligCcedilOtildeAumlAEligAacuteAacuteiquestAumliquestAacuteiquestAEligCcedil iquestAacuteiquestAEligAringiquestAEligiquestAacuteAacuteiquestAEligUumlYacute AcircAEligUacuteAumlAacuteAEligETHtimesOgraveUgraveAumlAEligAacuteCcedil iexcliquestCcedilAgravefrac34EcircAringiquestAEligiquestAacuteAacuteiquestAEligUumliexclcentYacute AcircAEligUacuteAumlAacutefrac12AgraveCcedil iquestAumlEcircOtildeOgraveETHOtildeAacuteAgraveAcircCcedilAgraveOtildeOgraveETHtimesUumlAumlAacuteETHEumlOtildeOgraveETHETHEumlAacuteAgraveAcircCcedilAgravefrac14AacuteIgraveOgraveEumlOtildeOgraveETHtimesYacutefrac12AgraveCcediliquestAEligAacuteiquestAringAEligfrac34iquestiquestUcircEcircAumlAgraveAEligCcedil AacuteAacuteAgraveAumlAringAacuteiquestAElig centfrac14frac12THORNiquestiquestAacuteEcircAacuteAcircEcircfrac12AgraveAacuteAcircEcircfrac34iquestAcircAacuteiquest AringiquestAEligiquestAacuteEcircOcircAEligfrac34AringAEligOcircfrac34AEligAtildeAcirciquestAEligAumlAtildeAEligiquestAtildeAacutefrac34UcircAElig Ecirc AcircAEligAacuteAEligAacuteAacuteiquestAEligUacuteAumlAacuteAumlAcircAringAEligAacuteAacuteiquestiquestAEligCcedilAacuteAgraveAringAacuteAgraveCcedilEcircAcirc AacuteAringiquestAEligiquestAEligCcedilAacuteAgraveAEligiexclcentCcediliquestAtilde iquestfrac34Aacutecentfrac14frac12CcediliquestAEligAgraveIumlAcircAacute iquestAumlAEligAacuteAacuteAgravefrac12AEligAacuteAacuteiquestAEligAcirciquestiquestAEligCcedilEumlIgraveETHOgraveyenUcircfrac14iquestAEligEcircAringiquestfrac12AgraveEcirciquestAtildeAEligiquestAEligAacutedegdegdegraquodeg1ordf-raquodegraquolaquoregszligXagraveKsup3sup3Z-Kcopy0-Lszligraquocentfrac14frac12frac34iquestAumlAEligiquestfrac34iquestAacuteAacuteAEligAumlAringAringAEligAacuteEumlfrac34AacuteAgraveAringAacuteiquestAacuteAgraveAacuteiquestiquestAacuteAgraveIumlAcircAEligAacuteiquestAacuteAacuteiquestAEligAumlAacuteEumlAtilde AcircAtildeAringiquestAacuteAacuteiquestAEligCcediliquestAacute iquestAEligCcedilAacuteAacuteAgraveAEligiexclcentcentiquestAacuteAacuteAEligAumlAringAringAEligAacutefrac34iquestAtildeAumlAumlAacuteAcircAEligAacuteiquestAcircCcedilIgraveETHEumlOtildeOgraveETHETHEumlAEligAgraveAcircAtildeAEligAacuteAacuteaacuteacircAumlUcirciquestEcircAEligEumlyencentatildeAEligAacuteAumlAacuteatildeAringiquestAEligAuml iquestAumlcentAgraveiquestAEligCcedilAacuteAEligfrac14AacuteAacuteAacuteAringAEligAacute frac12AEligAacuteAacuteiquestAElig iquestAuml IumlAcircAacuteAcircAEligiquestAacuteEcircaumlRSaringPREcircAringiquestOWaeligccedilegraveeacuteNRecircSaringPRAringiquestaacute)LcopyXJeumldeg1ordf-raquodegraquolaquoreg

13

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httpwwwchronlinecomnewswsdot-seeks-public-comment-on-disadvantaged-business-enterprisearticle_f5c753ea-be61-11e7-966c-972f6769d8a6html

WSDOT Seeks Public Comment on Disadvantaged Business Enterprise By The Chronicle Oct 31 2017

The Washington State Department of Transportation will be accepting public comments about the departmentrsquos proposed Disadvantaged Business Enterprise goal for federal contracts

The goal is for transportation projects receiving Federal Highway Administration funds to have 19 percent of the value of work done by minority or women-owned businesses during the 2018 through 2020 fiscal years

ldquoThe purpose of the DBE program is to create a level playing field for firms owned and operated by disadvantaged individuals wanting to participate in federally assisted highway transit and aviation programsrdquo a press release from WSDOT said

A series of public meetings will be held to discuss the goal in Spokane Vancouver and Seattle

For those who are unable to attend the in person meetings a webinar will be hosted from 230 to 430 pm Thursday Dec 5 The webinar is free but registration is required To register email DisparityStudywsdotwagov

Page 1 of 2WSDOT Seeks Public Comment on Disadvantaged Business Enterprise | News | chronlin

1112018httpwwwchronlinecomnewswsdot-seeks-public-comment-on-disadvantaged-business-

Written comments can also be submitted by mail or email to Jackie Bayne policy and reporting manager for the department of transportation at Washington State Department of Transportation Office of Equal Opportunity PO Box 47314 Olympia 98504 or by email at disparitystudywsdotwagov Comments will be considered through Dec 17 2017

More information about the goal is available at all regional offices or at the main office in Olympia located at the Transportation Building 310 Maple Park Ave SE Olympia More information can also be found online at wsdotwagovequalopportunity

Page 2 of 2WSDOT Seeks Public Comment on Disadvantaged Business Enterprise | News | chronlin

1112018httpwwwchronlinecomnewswsdot-seeks-public-comment-on-disadvantaged-business-

larr Halfway there SR 8 fish barrier removal reaches milestone New SR 26 traffic cameras available rarr

WSDOT seeks comments on proposed DBE contracting goal for highway projects

December 1 2017 | No Comments

WSDOT is seeking comments on proposed participation goals for Disadvantaged Business Enterprises on upcoming Federal Highway Administration contracts a Yakima meeting has also been added to the schedule Source WSDOT Permalink WSDOT seeks comments on proposed DBE contracting goal for highway projects

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Page 1 of 3WSDOT seeks comments on proposed DBE contracting goal for highway projects | Tukw

1112018httptukwilatowingcom20171201wsdot-seeks-comments-on-proposed-dbe-contracting

From Liz EvansTo Bayne JackieSubject AGC Comments on Proposed 10 GoadDate Tuesday December 12 2017 50314 PMAttachments WSDOT Proposed Goal - AGC Comments FINALdocx

Hi there Jackie Attached are AGCrsquos comments on WSDOTs proposed 19 goal We will also be mailing you a copy Thanks for the opportunity to comment and we hope you find it helpful Regards Liz Liz Evans CAE Northern District ManagerAGC OF WASHINGTONTel 3602238757 | wwwagcwacom JOIN US for the 2018 AGC of Washington Annual Convention amp Technology Expo Jan 26

CUsersmwillmsPicturesInland AGCLogo_RGB_Half_5in

December 12 2017

Page 5

December 12 2017

VIA EMAIL amp US MAIL

Ms Jackie Bayne Policy amp Reporting Manager

Washington State Dept of Transportation

210 Maple Park Ave SE

PO Box 47314

Olympia WA 98504

RE WSDOT Proposed FHWA Triennium Disadvantaged Business Enterprise Goal

Dear Ms Bayne

This letter summarizes the views of the Associated General Contractors of Washington and Inland Northwest Associated General Contractorsrsquo (hereafter referred to collectively as AGC) regarding the Washington State Department of Transportationrsquos (WSDOT) recently proposed FHWA Triennium Disadvantaged Business Enterprise (DBE) Goal (the ldquoProposed Goalrdquo) AGC shares WSDOTrsquos commitment to continue the promotion of DBE firms but AGC is concerned the Proposed Goal which is a significant increase from the previous goal and actual utilization may have unintended consequences and could impose significant burdens on both prime contractors and DBE contractors alike AGC requests WSDOT reconsider its Proposed Goal and adjust the Proposed Goal to account for inevitable availability and capability issues including the lack of a formal retraction of the non-minority woman owned business waiver that makes up over half of the Proposed Goal Implementing an unachievable goal will only be to the detriment of the DBE program

1 AGCrsquos Membersrsquo Interest in WSDOTrsquos Proposed Goal

Together AGC of Washington and Inland Northwest AGC represent and serve the commercial industrial and highway construction industry These professional associations of commercial contractors are comprised of more than 900 members who have joined together to enhance the performance of their industry and build a better climate for construction operators many of which are small and closely held businesses

Like WSDOT AGC is firmly committed to the principals of equal opportunity and promoting efforts to ensure minority women and veteran owned businesses are properly represented In both its political advocacy and membership programs AGC has demonstrated its commitment to increasing the representation of disadvantaged groups in the construction industry as both workers and owners of firms For AGC this is both an issue of principles and a practical one The construction industry as a whole is facing a critical shortage of workers and it is imperative that the industry attract new participants Among AGCrsquos activities demonstrating this commitment are the following

middot AGC has an ongoing ldquoContractor Exchangerdquo program through which small minority- and women-owned subcontractors are offered one-on-one networking opportunities with established general contractors

middot The AGC Education Foundation provides financial support to construction-related programs in K-12 schools and conducts outreach specifically targeted at low income disadvantaged and female students

middot More than 2500 students most from inner-city schools participate in annual AGC-sponsored Construction Career Days in King Pierce and Spokane Counties

middot AGC supports the Pre-Apprenticeship Construction Training (PACT) program at Seattle Vocational Institute This program is focused on preparing underrepresented communities to be highly qualified applicants and successful apprentices in the construction trades

middot AGC is a sponsor of the Turner School a training course for minority- and women-business owners in the construction industry

middot AGC supports the National Association of Women in Construction (NAWIC) which provides professional development and other services to its members

middot AGC routinely supports legislative efforts aimed at supporting small businesses and encouraging small business participation

middot AGC recently formed a Diversity and Inclusion Committee comprised of both prime and DBE participants The purposed of the committee is to expand opportunities for DBE members and to help AGC consider diversity in decision-making Recently AGC approved a deeply discounted introductory dues structure for certified DBE members

middot AGC is a WSDOT partner on the new mentorproteacutegeacute program

AGCrsquos experience has been that the most effective approach is to help make emerging businesses successful through outreach training and public policies that will grow their capacitymdashnot by imposing mandates without clear evidence as to the mandates feasibility

2 WSDOTrsquos Proposed Goalrsquos Impacts To The Construction Industry

WSDOTrsquos Proposed Goal is 190 The Proposed Goal is based upon the recent Collete Holt amp Associates (CHA) Disparity Study released in 2017 With respect to availability the Disparity Study reports the following weighted availability for FHWA-Funded projects

Thus the 190 goal factors in Black Hispanic Asian Native American and White Women into its availability As indicated however this 19 goal raises a number of concerns

a WSDOTrsquos 19 Proposed Goal Represents a Significant Increase Without Concrete Evidence of Available And Capable DBE Firms

First WSDOTrsquos Proposal Goal of 190 represents a significant increase as compared to actual DBE participation (141 in 2014 117 in 2015 and 151 in 2016) as well as the last FHWA proposed goal of 116 for 2014-2018 See WSDOTrsquos Proposed Goal and Interim FHWA Overall DBE Goal Methodology FFY 2014-2018 The Proposed Goal is 74 more than the last goal which represents a 638 increase and a 52 increase over the average actual utilization for 2014-2016 While Contractors were exceeding the previous 116 goal this is primarily based on the fact that WSDOT previously requested a waiver to consider non-women-owned businesses and the waiver was not granted and effective until June 2017 (meaning that for 2014-2016 women were counted towards race-conscious goals and inevitably a higher overall percentage of DBE firms were utilized)

Contractors struggle to meet present DBE goals due to the relatively low availability of experienced and certified DBE firms By increasing the goal WSDOT is understandably trying to increase the participation of underrepresented firms Drastically increasing the goals (by over 5 of actual utilization) without concrete evidence that there is sufficient availability andor capability of such firms however will have the opposite effect Notably this lack of availability and capacity of DBE firms was discussed in detail in the Disparity Study For example the CHA Disparity Study notes a number of concerns of DBE firms while technically ldquoavailablerdquo with respect to the goal percentages are unable to meet the requirements necessary to fulfill the contract including purchasing the equipment necessary having available labor and ability to meet insurance and financing requirements Thus while there may be ldquoavailablerdquo firms there is not clear evidence (and if fact evidence to the contrary) that those available firms are capable and available to perform the majority of the FHWA-Funded contracts let by WSDOT

An additional example affecting DBE capability and availability that is not factored into the CHA Disparity Study or WSDOTrsquos Proposed GOAL is DBE ability to enter into Project Labor Agreements (ldquoPLAsrdquo) WSDOT has indicated their interest in pursuing a PLA AGC Members have raised concerns based on repeated experiences that many DBE firms due to the administrative and cost impacts refuse to enter into PLAs precluding those firms from performing certain work or increasing costs Again this lack of ability (or refusal) to perform should also be factored into WSDOTrsquos Proposed Goal which is not currently the case

b The Proposed Goal Does Not Account For The Current Non-Minority Woman Owned Business Waiver Still In Place

Second despite the significant increase WSDOT does not account for the current waiver of non-minority women owned businesses that remains in place As noted in WSDOTrsquos proposal comments WSDOT previously sought and received a waiver of the regulation that White females as a group are presumptively disadvantaged This waiver was heavily criticized by many including AGC and the results of the most recent CHA Disparity Study confirmed that White females are presumptively disadvantaged and do not enjoy a level playing field for USDOT-assisted contracts Therefore the CHA Disparity Study recommends that this group be returned to the status of goal credit eligibility WSDOT has sought a recession of the waiver but has not yet to our knowledge received a rescission of the waiver Nevertheless the 19 Proposed Goal still includes White women In fact of the 19 availability percentage White women represent 103 (over half) Accordingly for WSDOT to proceed with the 19 goal WSDOT must receive the rescission of the waiver for this goal to be even remotely possible to achieve If the rescission is not received the Proposed Goal must be adjusted

C The Proposed Goal Does Not Account For Availability Differences Across The State

Third the Proposed Goal does not account for availability difference across the state Eastern Washington contractors with an even scarcer pool of available and qualified DBE firms in the area as is the case now will be forced to subcontract to Western Washington firms paying transportation and per diem premiums for such work The CHA Disparity Study again provides numerous excerpts of anecdotal evidence demonstrating that the goals in Eastern Washington are too high A few of the contractor comments on the topic are as follows

When you apply those same goals to a different geographic region a different project site for a large firm to meet those goals is difficult because theres not necessarily the expertise in parts of the project that were submitting on

Theres very few DBEs over here [in Eastern Washington] Next year theres going to be even more work over here What are we going to do with all these goals We always meet the goals like I said youve got three four DBEs over here to do all the work and then they cant perform

There are just no [minority-owned] DBEs available in eastern Washington

See CHA Disparity Study at p 54 Again these are factors that should be taken into account in developing the Proposed Goal or at the very least its application WSDOTrsquos Proposed Goal however is silent as to this significant issue

When the lack of available firms with the capacity to perform significant DBE projects is coupled with the increased goals the price of WSDOT contracts will inevitably increase to the significant detriment of Washington taxpayers and the public entities Inevitably with a lack of available qualified firms the lack of competition will become evident and small qualifying contractorsrsquo prices will increase due to supply and demand principles as they become selected for projects and less able to take on additional work These increased DBE contract values will be passed on to the public agency and taxpayers which translates into fewer dollars available for the sorely needed and promised infrastructure upgrades In addition the instance of bid protests will inevitably increase potentially delaying projects and further diverting agency resources from badly needed infrastructure upgrades to resolving unnecessary disputes or rebidding the projects altogether

Finally faced with such drastic and potentially impossible requirements if adjustments are not made contractors may focus more on demonstrating good faith efforts Both a contractor who meets the required goal and a contractor that demonstrates good faith efforts are eligible for award It is likely that the contractor relying upon good faith effortsmdashwho will have a lower price than the other contractor who sacrificed price to actually meet the goalmdashwill be selected by the public agency This outcome will erode the total percentage participation of eligible firms and would clearly be inapposite of WSDOTrsquos intentions

3 Conclusion and Request

AGCrsquos members have asserted these and multiple other concerns Implementing an increased goal across the state and all contracts without clear evidence of available DBEs capable of performing the work and meeting the project requirements will have significant and far-reaching impacts on the construction industry many of which work against the aim of the Proposed Goal itself AGC requests WSDOT reconsider its Proposed Goal of 19 and make adjustments to account for the capability of DBE firms the lack of a rescission of the non-minority waiver and the lack of available DBE firms in parts of the state This Proposed Goal and its impacts on the construction industry will be irrevocable and will be to the detriment of taxpayers It is prudent to address these adjustments before implementing the Proposed Goal

Very truly yours

David DrsquoHondtCheryl Stewart Executive Vice President AGC of WashingtonExecutive Director Inland Northwest AGC

AGC of Washington bull 410 11th Avenue SE 203 Olympia WA 98501

Inland Northwest AGC bull 4935 E Trent Avenue Spokane WA 99212

image3jpeg

image1png

image2emf

image4png

image5jpeg

From Steve SmithTo WSDOT Disparity StudyCc Bayne JackieSubject 19 DBE RequirementDate Thursday December 14 2017 31947 PMAttachments DBE List and NAICS Listingpdf

Disparity Committee I recently read in The Daily Journal of Commerce that WSDOT plans to adopt a 19 DBEstandard for all FHWA funded projects early next year Our company S amp K Painting Inc is abridge painting company which is based in and works exclusively in Oregon and Washington Ihave been the owner of this firm since 1978 when it was first established My concerns aboutthe proposed 19 DBE requirement is as follows 1 There are very few opportunities for subcontract work on bridge repaint jobs These jobsare usually limited to cleaning and painting the bridge The only other facet of the project istraffic control which is almost always 3 or less of the project total cost The traffic controldoes provide a very good subcontracting opportunity 2 The NAISC code of 238320 includes bridge painting but also includes house painting wallcovering rust proofing etc which have almost no similarities to bridge painting When thiscode is used to determine the number of available firms (DBE or otherwise) that are availablefor bridge painting project this badly skews the numbers I would suggest that bridge paintingcontractors make up less than 5 of all firms in NAISC code 238320 3 If future WSDOT bridge painting projects require a 19 DBE participation A The qualified pool of DBE subcontractors available to submit pricing on any facetother than traffic control will be very limited I reviewed a list of 19 certified DBE firms listedunder painting at the WSDOT website and only recognized one firm from past projects B The number of prime bidders and competition will fall The state will incur highercosts due to this fact C Prime bidders will be forced to subcontract unqualified contractors just to be eligiblefor contract awards This will likely reduce the quality of the finished project Thank you for considering my concerns I may not have verbalized my thoughts as well as Iwould have liked but I have been in this business for almost 40 years and truly believe what Ihave said Sincerely

Steve Smith President

SampK Painting incP O BOx 390clacKamaS OregOn 97015Phone (503) 557-5544Fax (503) 557-5566Cell (503) 260-5280Steveskpaintingcom

From Lei WuTo Bayne JackieSubject comments on WSDOT proposed DBE goalDate Thursday December 14 2017 94925 PM

To Whom It May Concern

Below is my comments

The WSDOT recommended DBE Goal for FHWA contracts of 190 is a small andimportant increase that can further achieve equity in WSDOTFHWA contracting I am insupport of the 19 DBE Goal

I also want to express my appreciation for the thoroughness of the WSDOT Disparity studyand how the study disclosed the disparity in WSDOT contracts that do not have a DBE orWBE goal ndash further reinforcing that all women-owned firms and minority owned firms faceequity issues

I remain concerned with the methodology required by the Code of Federal Regulations andcase law because of the dependence on the availability of firms in the calculation Anunintended consequence of removing either gender or race from the goal is that many of thesefirms would go out of business the availability decreases and the formula then results in asmaller DBE goal

Thanks

Lei

Lei Wu PE AICP

Principal CSL Consulting

LeiWucsl-consultingnet

(425)562-6275

From Stephanie SimpkinsTo WSDOT Disparity StudySubject DBE Contracting goalsDate Wednesday November 29 2017 20259 PM

My name is Stephanie Simpkins and I own North Star Enterprises It is a large womanowned traffic control company located in Spokane Washington My mother founded thecompany in 1984 and I have worked in this family owned business most of my life Ipurchased the business from her in 2013 and have been sole owner since then My company thrived under the Disadvantaged Business Enterprise (DBE) Programimplemented by Washington Department of Transportation and administrated by United StatesDepartment of Transportation What started as a small business with one truck and a fewemployees has grown over the years to be one of the largest traffic control companies in thestate and employee countless people every construction season It has not been an easy roadover the years being a woman in the construction industry never is and it is hard to say wherewe would be now if it werenrsquot for the assistance of the DBE program As you know in June of 2017 majority women were removed from the DBE program basedon a disparity study conducted in 2012 On March 2014 Washington Department ofTransportation requested a wavier to remove majority women from the DBE program Thishas had an immediate and drastic impact on my business and all who work for me From themoment the waiver was approved and my company could no longer be used as a condition ofaward at bid time I began losing work Most recently the 2018 North Central Region ChipSeal which we have worked on for the last 10 years This contract provides work forapproximately 40 employees for the entire construction season I have already been told byseveral contractors that with such a high UDBE goal they wont even be able to consider mefor this project This loss along with several other smaller contracts to date are painting avery dismal future for my business With all of this turmoil surrounding the future of my business I find it frustrating to say theleast that WSDOT has chopped me off at the legs by not allowing my firm to count for theCOA but can use the little participation I may still contribute to help them reach their overallstate goal How is this fair If the contractors canrsquot utilize my business than neither shouldWSDOT As far as setting future state DBE contracting goals it looks as if the bar will beraised once again all while excluding the largest subset of useable DBErdquoS To me raising theoverall state goal at this time (which is already challenging to meet) with women DBErsquosexcluded from the program seems horribly ill timed

From Karen R BannishTo Bayne JackieSubject DBE GoalDate Tuesday December 5 2017 32549 PM

Hello Jackie ndash thank you for the webinar today concerning the proposed Overall DisadvantagedBusiness Enterprise Goal for the Federal Highway Administration I understanding the DisparityStudy much better now and checked the document you mentioned on the WSDOT website Pacific County is located in the Southwest corner of the State of Washington The tip of the LongBeach Peninsula would be 2 frac12 hours from Interstate 5 Our federal work primarily includes strictlyoverlay projects with 12 or fewer items of work included in the contract When bidding a project(our contracts are usually less than $500000) we sometimes received a single bid from the process Due to our proximity and the small cost for the work it is difficult to entice DBE participation Thereare simply no items of work that can be performed Having a mandatory DBE goal placed upon theproject in a rural area simply to meet the disparity guidelines will only increase the cost of theproject We feel the goals should be set in balance with the cost of the project and the items of work and notsimply directed to meet the overall goal

Karen BannishSenior Engineering TechnicianPacific County Department of Public Works211 North Commercial StreetRaymond WA 98577(360) 875-9368

From Dawn EgbertTo Bayne JackieSubject DBE Program Disparity StudyDate Tuesday December 5 2017 23825 PM

Hi JackieThank you for the great information on the call today You talked about the small works rosterbriefly We had a conversation in our office today about small contractors who are signed up on thePort of Vancouverrsquos small works roster Our team has had opportunity to talk to some of thecompanies on our roster who are women owned or minority owned businesses but they arenrsquotsigned up as a DBE firm When asked about that theyrsquove mentioned that they donrsquot want to fill outthe additional paperwork required to obtain the certification as a DBE As for the DBE goal at 19 it doesnrsquot seem to present an issue for the majority of our projects ndashespecially those where we would apply FHWA funds if granted However if we did happen to have aproject that didnrsquot include classifications of work where DBE certified participants are availablewould there still be an exception or a good faith efforts clause Thanks again for your time Dawn EgbertProcurement Services Manager3103 NW Lower River Road Vancouver WA 98660Direct 3609921102 | Cell 360448-9867 | Main 3606933611 | Fax 360735-1565degbertportvanusacom | wwwportvanusacom | available port properties Leadership | Stewardship | Partnership

From Feist MarleneTo WSDOT Disparity StudyCc Simmons Scott M Twohig KyleSubject Disparity Study Comments from City of SpokaneDate Friday December 15 2017 52226 PMAttachments image010png

image011pngimage012png

December 15 2017 Jackie BaynePolicy amp Reporting ManagerOffice of Equal OpportunityWashington State Department of TransportationPO Box 47314Olympia WA 98504-7314 RE Proposed DBE Contracting Goal for Highway Projects Dear Ms Bayne The City of Spokane would like to provide comments related to proposed DisadvantagedBusiness Enterprise Goal for Federal Highway Administration (FHWA) contracts by theWashington State Department of Transportation (WSDOT) Office of Equal Opportunity Manyof our projects receive funding from FHWA and as such the proposed new goals areapplicable to City work The City is supportive of the programrsquos purposemdashldquoto create a level playing field for firmsowned and operated by disadvantaged individuals wanting to participate in federally assistedhighway transit or aviation programsrdquo However the City is concerned about the ability to achieve the proposed utilization rate of upto 19 percent for DBEs in Eastern Washington considering the low number of DBEs in ourregion and the record construction under way in the City and in our region WSDOTrsquos DBE Program Disparity Study notes ldquoContractors in Eastern Washington repeatedlyreported that the goals on projects in their area are too highrdquo The Inland NorthwestAssociated General Contractors group notes that only about 12 DBEs in construction fields areavailable in the greater Spokane area Meanwhile the City has performed record construction in each of the last three years withproject totals hovering around $100 million Our City work has been bolstered by anaggressive program to improve water quality in the Spokane River Our local school districtsand our neighboring jurisdictions also have aggressive construction programs right now

Additionally we expect WSDOTrsquos work in this region to accelerate as North Spokane Corridor(NSC) construction proceeds At times our area is reaching the limits overall of our contractingcommunity the City has worked to release its projects in the first quarter of the year as muchas possible to lock in contractors and receive better pricing The capacity of existing DBEs in our region simply cannot meet that current high demand Some DBE firms are tempted to agree to more work in these times but we have found that insome cases DBEs have stretched themselves too thin On two recent City projects generalcontractors were unable to meet DBE goals as a result of DBE firms that couldnrsquot fulfill theircommitments for providing personnel or equipment It also seems implausible to expect DBEs from the West Side to mobilize teams to work on Cityof Spokane projects in large numbers In fact the Disparity Studyrsquos author responded at arecent meeting on this topic that a DBE from the West Side only very rarely completes workon the East Side of the state We would also be concerned about moving the good-paying jobs that construction providesoutside of our region The Cityrsquos median household income is $44350 considerably lower than theState of Washington MHI of $64129 and the Seattle MHI of $77351 Our leaders are working tocreate good-paying jobs for our citizens not export them to an already wealthier part of the state Additionally these projects are also funded with local dollars and our citizens expect their money toput their neighbors to work With the above considered the City is seeking

middot DBE goals for the 2018-2020 compliance period for Eastern Washington that arereflective of the current availability of DBE firms in our region

middot The re-inclusion of non-minority women owned DBEs in achieving DBE goals InSpokane non-minority women owned DBEs make up the majority of the availableDBEs And current information shows that women in Spokane overall still lag behindmen in opportunities and wages The Cityrsquos own ldquoGender and Racial Equityrdquo reportfrom 2016 noted that overall working women earned 783 percent of the earnings ofworking men in 2014 down from 827 percent in 2009 We need to lift up all women

middot The development of WSDOT programs to encourage the growth of existing andnew DBEs who can be used on street and highway projects We are encouraged by theproposed mentorproteacutegeacute program to increase the number and capacity of DBEs inEastern Washington Programs that address other barriers such as assistance withcompleting documentation or access to bonding capacity also could aid growth ofDBEs

middot The ability for WSDOT to adjust goals on a project if a selected DBE is unable tocomplete its commitments on a project This would help enable our contractors totake a chance on a new or inexperienced DBE to complete work

middot Recognition of local programs that strive to increase diversity in the work force Forexample the City operates a robust apprenticeship program that requires 15 percentof the labor hours on public works jobs greater than $600000 to be performed byapprentices The apprentice programs in our region are stepping up recruitmentefforts and are specifically seeking to recruit more youth women and minorities intoapprentice slots

As we seek to achieve the goal of increasing participation in street and highway constructionby companies owned by disadvantaged individuals we must also acknowledge that businessdevelopment and growth happens over time We must lay the groundwork now to build abase of DBEs that can help us achieve higher utilization goals over time Sincerely Marlene FeistDirector of Strategic DevelopmentPublic Works amp UtilitiesCity of Spokane

Marlene Feist | City of Spokane | Public Works Director of Strategic Development5096256505 | cell 5097109214 | mfeistspokanecityorg | spokanecityorg

From Hall MattTo WSDOT Disparity StudySubject FW WSDOT News - WSDOT seeks comments on proposed DBE contracting goal for highway projectsDate Friday December 15 2017 11956 PMAttachments WSDOT proposed DBE goal through 2020pdf

From Hall Matt Sent Friday December 15 2017 117 PMTo BayneJwsdotwagovCc Keniston Rick (KenistRwsdotwagov) MolyneKwsdotwagov SusanWilsonclarkwagovSubject WSDOT News - WSDOT seeks comments on proposed DBE contracting goal for highwayprojects Hello Jackie Please see our comments attached regarding the WSDOT proposed DBE goals Thanks for the opportunity to provide comments Matt HallClark County Public Works Washington State Department of Transportation ndash NEWSHeadquarters ndash 310 Maple Park Avenue SE ndash Olympia WA 98504-7314 ndash 360 705-7000 FOR IMMEDIATE RELEASEOct 30 2017 Contact Jackie Bayne Office of Equal Opportunity 360 705-7084

WSDOT seeks comments on proposed DBEcontracting goal for highway projectsComments accepted through Dec 15OLYMPIA ndash Contractors trade and labor organizations small and disadvantaged businessesand all others who may be interested in working with the Washington State Department ofTransportation are invited to comment on the agencyrsquos proposed Disadvantaged BusinessEnterprise goal for Federal Highway Administration contractsDBE goals for transportation projects that receive federal funds represent a percentage of thevalue of work in which minority- and women-owned businesses should participate WSDOTis proposing a 19 percent overall DBE participation goal on Federal Highway Administration-funded projects for federal fiscal years 2018 through 2020Once submitted to FHWA early next year the goal will be effective through Sept 30 2020The purpose of the DBE program is to create a level playing field for firms owned andoperated by disadvantaged individuals wanting to participate in federally assisted highwaytransit and aviation programsConnecting with communitiesWSDOT will host a series of public meetings to provide opportunities for individuals tocomment in person

Spokane

2 ndash 4 pm Tuesday Nov 28WSDOT Eastern Region Headquarters2714 N Mayfair St Spokane

Vancouver

2 ndash 4 pm Wednesday Nov 29WSDOT Vancouver Headquarters11018 NE 51st Circle Vancouver

Seattle

2 ndash 4 pm Thursday Dec 7WSDOT Northwest Region Headquarters15700 Dayton Ave N Shoreline

Other ways to provide commentThose who are unable to attend one of the meetings can participate in a no-cost webinar from230 ndash 430 pm Tuesday Dec 5 Registration for the webinar is required Those interested inparticipating should email DisparityStudywsdotwagovWritten comments can also be submitted by mail or emailJackie Bayne Policy amp Reporting ManagerWashington State Department of TransportationOffice of Equal OpportunityPO Box 47314Olympia WA 98504-7314DisparityStudywsdotwagovDocuments detailing the methodology used for determining the FHWA DBE goals areavailable for review at all WSDOT region headquarters offices and at the TransportationBuilding 310 Maple Park Ave SE Olympia They are also available online atwwwwsdotwagovequalopportunityWSDOT will consider all written comments received through Friday Dec 15 2017 Hyperlinks within this release

WSDOT Region offices wwwwsdotwagovContactofficelocationhtmregion

WSDOT keeps people businesses and the economy moving by operating and improving the statestransportation systems To learn more about what were doing go to wwwwsdotwagovnews forpictures videos news and blogs Real time traffic information is available at wwwwsdotcomtraffic or bydialing 511 Americans with Disabilities Act (ADA) InformationAccommodation requests for people with disabilities can be made by contacting the WSDOTDiversityADA Affairs team at wsdotadawsdotwagov or by calling toll-free 855-362-4ADA (4232)Persons who are deaf or hard of hearing may make a request by calling the Washington State Relay at711 Title VI Statement to Public It is WSDOTrsquos policy to assure that no person shall on the grounds ofrace color national origin or sex as provided by Title VI of the Civil Rights Act of 1964 be excluded fromparticipation in be denied the benefits of or be otherwise discriminated against under any of its federallyfunded programs and activities Any person who believes his or her Title VI protection has been violatedmay file a complaint with WSDOTrsquos Office of Equal Opportunity For additional information regarding Title

VI complaint procedures andor information regarding our non-discrimination obligations please contactOEOrsquos Title VI Coordinator at 360-705-7090 To unsubscribe to WSDOT media releases please reply and type REMOVE in the subject line

This e-mail and related attachments and any response may be subject to public disclosure under state law

From Cochrane EmilieTo WSDOT Disparity StudyCc Eugenis Susan Cowlitz Co Public Works - Brad BastinSubject Proposed DBE GoalsDate Thursday December 14 2017 85006 AMAttachments image002png

DBE Goals - Commentspdf

Please see the attached letter with comments regarding the proposed DBE Goals Ahard copy will be sent out today

Thanks

Emilie CochraneCowlitz County Public Works1600 ndash 13th Avenue SKelso WA 98626360-577-3030 ext 6523

From Michelle WolcottTo Bayne JackieCc Robideau Christopher LSubject RE DBE Contracting Goal CommentsDate Tuesday November 7 2017 65448 AMAttachments image001png

Thank you JackieWhat a relief to know that we have been heard and are not the only small business facing thisstruggle Your email is comforting

Yes you can provide us with additional assistanceLet me introduce my boss and Senior Vice President of Red Plains Professional Chris Robideau

Chris will be your contact from here since I will be leaving the company November 17th As a WA DBE we are ldquoeligible for limited DBE Support Services (SS) funding when funds becomeavailablerdquo When will this happen And are we registered or on a list to receive fundingIs the WSDOT ICR Training a prerequisite for the funding Or just helpful knowledge

Thank you for your time Jackie I will follow through with the training

Michelle Wolcott EIT Quality Control Engineer

2103 NE 129th Street Suite 201 Vancouver WA 98686 Office (360) 448-7999 Fax (360) 258-0274

wwwred-plainscom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Monday November 6 2017 332 PMTo Michelle Wolcott ltMichelleWolcottred-plainscomgtSubject RE DBE Contracting Goal Comments

Hi Michelle

Thank you for your interest in doing business with WSDOT I apologize for the lack of informationyou have come up against in your attempts to attain access to WSDOT ICR program

As you may well know WSDOT has recently completed a state wide agency specific diversity studyAnecdotal comments submitted with the study concur with your experience Not only did somerespondents find it difficult to become prequalified they also commented that the required indirectrate of 110 percent is too low to be profitable These requirements are currently under advisementby WSDOT and new DBE program requirements are currently in the process of seeking public input

As you are an OMWBE certified DBE in Washington State you will be eligible for limited DBE SupportServices (SS) funding when these funds become available At that time funds may become availableto assist you in your struggle to attain ICR eligibility Here is a link to WSDOTrsquos Indirect Cost RateTraining httpswwwwsdotwagovAuditICRTraininghtm If you would like me to find additionaltraining or information please let me know

If I can provide additional assistance of information please let me know

Best Regards

Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Michelle Wolcott [mailtoMichelleWolcottred-plainscom] Sent Tuesday October 31 2017 835 AMTo WSDOT Disparity Study ltDisparityStudyWSDOTWAGOVgtSubject DBE Contracting Goal Comments

HelloI have been in contact with WSDOT for 6 months sharing my disparaging story of beinga small DBE unable to submit SOQs for projects requiring a WSDOT Audited IndirectCost Rate Approval We do not have an in-house accountant and our outsideaccountant has explained to get all the paperwork together for WSDOT would take 40hours of work $9000 annually We cannot justify this cost to submit on a project thatwe may not acquire We have been directed to seek financial assistance from WSDOT Federal SBA andWashington State Office for Women and Minority Owned Enterprises all of whichprovided negative responses

As a DBE business in 11 states we are supporting the 19 incentive for federallyfunded contracts but we are frustrated in the fact that we will not be one of the luckyfew to participateWe have been in business 20 years From our Vancouver Washington office our clientsare the Native American tribes across the country with all contracts federally funded This summer alone the WSDOT ICR Approval has squashed our ability to submit on twoprojects that we were perfectly qualified to performI have attached previous emails to show a sample of who I have been dealing with

Thank you

Michelle Wolcott EIT Quality Control Engineer

ltimage001pnggt

2103 NE 129th Street Suite 201 Vancouver WA 98686 Office (360) 448-7999 Fax (360) 258-0274 wwwred-plainscom

From Michelle Wolcott Sent Monday July 10 2017 954 AMTo Harvey Schatzie ltHarveySwsdotwagovgtSubject RE WSDOT Indirect Cost Rate Process

Good Morning Schatzie

This is Michelle Wolcott from Red We spoke Friday June 30th about the ICRprocess and you were very encouraging I relayed the information to my boss who ishere in Vancouver then he shared with the president bookkeeper and our accountantin Oklahoma We had FAR compliance with Oklahoma DOT in 2015 so we are noteligible for the Safe Harbor Program Our account said our timekeeping system doesnot breakdown the hours and pay in the format WSDOT wants to have it presented andto get the documents in order would take the CPA and an assistant $9000 in paidhours of work It turns out this would have to be annually The other option is to hirean outside CPA firm to do the audit for us at $20000 annually

Our president said in the past we received funding assistance from the Stateof Oklahoma to get our ICR approval Does WSDOT offer any financial assistance for small businesses to reach compliance We are also a DBE in WA I have requested the same information from WA PTAC at theVancouver Chamber of Commerce and from WA Office of Minority and Women OwnedBusiness Enterprises and they both said there was nothing but suggested to askWSDOTThank you for your helpMichelle Wolcott EIT

Hello Michelle sorry but I am not aware of any grants But I was looking at this andthere is a POC at the bottom you may try to discuss the audit issuesHollyHolly BoehmeBusiness Opportunity Specialist | 8(a) Business Development ProgramUS Small Business Administration bull Seattle District Office

Hello Michelle -

Thank you for your email Im not aware of any funding available for thispurpose but do agree its quite a bit for a DBE firm to have as an expense Mostof the firms I work with do a lot more work on the Oregon side so perhaps thereare programs available that I just havent heard of Im copying my colleagueHoly Boehme in our Seattle District Office to see if they are aware of any suchassistance

Holly might there be some small business incubators or other resources availablein WA to help a small firm with the expense of getting a WSDOT AuditedIndirect Cost Rate approval Please reply all with anything you may have

Thank you

Yuri Yoshida Dyson Business Opportunity SpecialistUS SMALL BUSINESS ADMINISTRATION Portland District OfficePhone 503-326-6692 Fax 202-292-3872 wwwsbagovor

From Troy HalbergTo Bayne JackieSubject Re DBE Goal CommentsDate Wednesday December 13 2017 35533 PM

JackieToday was another example of why the goals should not be raised There were 2 jobs which Iwas low on and did not get due to the high goals This is exactly what will happen when thegoals get raised The first job was the 9180 Anacortes Ferry Paving Northeast Electric $244924 and UDBE $318000 Second job was the 9172 SR 9 East Junction Job Northeast Electric $68503 and UDBE $76300

Does this seem like a good way to spend the tax payer money I do not see how we are tosurvive if the goals get to 21

Thanks

Troy HalbergOffice360-225-7004Cell360-931-3990Fax360-225-7001

On Thu Nov 30 2017 at 1131 AM Bayne Jackie ltBayneJwsdotwagovgt wrote

Good Morning Troy

Thank you for taking the time to provide us with your experiences with the DBE Program TheWashington State Department of Transportation takes the public involvement process veryseriously and your comments will be taken into consideration prior to a final decision regardingthe overall DBE program goal

If I can be of further assistance please let me know

Best Regards

Jackie Bayne

Policy and Reporting Manager

WSDOT Office of Equal Opportunity

Work (360) 705-7084

Cell (360) 338-5783

BayneJwsdotwagov

From Troy Halberg [mailtotroyhnellcnet] Sent Wednesday November 29 2017 144 PMTo WSDOT Disparity Study ltDisparityStudyWSDOTWAGOVgtSubject DBE Goal Comments

If these goals are to be set that high this would make us as a non DBE small contractor at amajor disadvantage With these high of goals this is like handing all of the DBE electricalcontractors every job These general contractors will have no option but to use thembecause of the goals This should not go into effect We have been low on several jobs in thepast and have not gotten them do to the goals being 18 When this goes on it puts all therest of us contractors at a disadvantage Please consider the smaller non DBE contractorsthat are looking to survive as well

Thanks

Troy Halberg

Office360-225-7004

Cell360-931-3990

Fax360-225-7001

From Daniel Seydel IITo Bayne JackieCc Key Earl daneiwashingtonorg Nadeem Ismail Mussie Tewelde (mteweldehydro2geotechcom)

graceflyrightaolcom Mary Wenner Watkinson LarrySubject Re Seydel Dan - WSDOT Disparity Study Presentation Public TestimonyDate Friday December 8 2017 30323 PM

Jackie

It was my hope that the comments would be put into record I was also hoping that you wouldnot have to be the one having to formulate responses for each clarification If that is the caseI know you are swamped and will then I just ask my comments be only part of the recordHowever if there is dedicated staff that is going to be compiling and responding to theclarification then the below questions would be the priorities of most interest

These were questions unrelated to the disparity study and hopefully should be doable

1) Do you have any reports on your outcomes from the past 5 years on DBE support servicesand specific key performance measures from previous years funding (ie how many firmsutilized what was the objectives were objectives met did outcomes meet total satisfaction ifnot why next steps what was the firms capacity before and after services were performed (iesales employees bonding if applicable insurance equipment line of credit if applicablenumbertype of customers how are they doing now etc))

2) What other changes or improvements other than allowing DBES to select their own serviceproviders and a staff change will be a part of this new program

3) Was consideration to provide the new mentor protege consultant rather than separating theactivities into support services andor technical assistance

Disparity study clarifications

1) Will WSDOT consider sponsoring legislation to support the policy changes and goalincreases to insure manditory goals wont be necessary

a) If not what measures will you grant primes to operate outside the box (ie entertain bestvalue over low bid modify responsiveness by subs to require adherence to meeting voluntarygoals developing standards around federally funded gccm and other low bid procurementsthat give powers to primes to meet objectives including but not limited to mentor protegerelationships joint ventures bond waiving techniques cash flow assistance material andequipment acquisition manufacturer development specifications that have only DBES orinclude equal number of DBES as non DBES as approved installers etc)

2) Will the disparity study consultant be available for implementation or information gatheringfrom other regions

5) Will WSDOT be hiring more diverse staff amp professionaltechnical service providers inother departments outside OEO to insure policies commitments and evaluations areperformed in manner that improves diversity that reflects the communities WSDOT serves bythoughtful and legal efforts increase participation thus creating successful outcomes includingpartnerships and collaborations

Thank you and Merry Christmas

Hi Dan

Thank you for providing such thoughtful public comments questions and testimony

Regarding your public testimony below - I do not believe I am not able to answer questions ifthey are public comments Please let me know what part of this email you would likeclarification on and what part you would like considered public testimony

I appreciate your thoughtful consideration of WSDOTrsquos implementation of our civil rightsprograms

Best Regards

Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

DIDaniel Seydel IIFyi Daniel J Seydel II Platinum Group LLC 2064060844 f) 2062999934wwwplatinumbusinessgroupcom Small Business is the Answer FREE TRAINING FORENTREPRENEURS amp JOB SEEKERS - Polish your skills or make your firm standout thanksto the EntrepreneurialThu 233pDI

Daniel Seydel IIThu 1272017 1123 AMInbox Sent ItemsShow all 7 recipientsTobaynejwsdotwagov ltBayneJwsdotwagovgtJackie

Per your request below are my questions and comments some of which were verbally sharedyesterday

Congratulations on receiving the blessing of additional technical assistance dollars andcompleting the DBE Disparity Study per your report

1) Do you have any reports on your outcomes from the past 5 years on DBE support servicesand specific key performance measures from previous years funding (ie how many firmsutilized what was the objectives were objectives met did outcomes meet total satisfaction ifnot why next steps what was the firms capacity before and after services were performed (ie

sales employees bonding if applicable insurance equipment line of credit if applicablenumbertype of customers how are they doing now etc))

2) What other changes or improvements other than allowing DBES to select their own serviceproviders and a staff change will be a part of this new program

3) Was consideration to provide the new mentor protege consultant rather than separating theactivities into support services andor technical assistance

Disparity study clarifications andor comments

1) Will WSDOT consider sponsoring legislation to support the policy changes and goalincreases to insure manditory goals wont be necessary

a) If not what measures will you grant primes to operate outside the box (ie entertain bestvalue over low bid modify responsiveness by subs to require adherence to meeting voluntarygoals developing standards around federally funded gccm and other low bid procurementsthat give powers to primes to meet objectives including but not limited to mentor protegerelationships joint ventures bond waiving techniques cash flow assistance material andequipment acquisition manufacturer development specifications that have only DBES orinclude equal number of DBES as non DBES as approved installers etc)

2) Will the disparity study consultant be available for implementation or information gatheringfrom other regions

3) What lessons did WSDOT learn that it did not know from the other study(s)

4) What would WSDOT do different (ie scope time line process approach etc)

5) Will WSDOT be hiring more diverse staff amp professionaltechnical service providers inother departments outside OEO to insure policies commitments and evaluations areperformed in manner that improves diversity that reflects the communities WSDOT serves bythoughtful and legal efforts increase participation thus creating successful outcomes includingpartnerships and collaborations

Daniel J Seydel IIPlatinum Group LLC 2064060844f) 2062999934wwwplatinumbusinessgroupcom

Small Business is the Answer

FREE TRAINING FOR ENTREPRENEURS amp JOB SEEKERS - Polish your skills or makeyour firm standout thanks to the Entrepreneurial Institute of Washington

httpswwwyoutubecomchannelUCKL5YeVxL29HnNxqnb6hmXA

LIKE US on FaceBook if an Active Professional Development workshop provided by EIW

Construction University helps your firm or has benefited you

httpswwwfacebookcomEIWashingtonref=hl

From Bayne Jackie ltBayneJwsdotwagovgtSent Friday December 8 2017 10139 PMTo Daniel Seydel IICc Key Earl daneiwashingtonorg Nadeem Ismail Mussie Tewelde(mteweldehydro2geotechcom) graceflyrightaolcom Mary Wenner Watkinson LarrySubject RE Seydel Dan - WSDOT Disparity Study Presentation Public Testimony Hi Dan Thank you for providing such thoughtful public comments questions and testimony Regarding your public testimony below - I do not believe I am not able to answer questions if theyare public comments Please let me know what part of this email you would like clarification on andwhat part you would like considered public testimony I appreciate your thoughtful consideration of WSDOTrsquos implementation of our civil rights programs Best Regards Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov From Daniel Seydel II [mailtodanplatinumbusinessgroupcom] Sent Thursday December 7 2017 1123 AMTo Bayne Jackie ltBayneJwsdotwagovgtCc Key Earl ltKeyEwsdotwagovgt daneiwashingtonorg Nadeem Ismailltnipaintingearthlinknetgt Mussie Tewelde (mteweldehydro2geotechcom)ltmteweldehydro2geotechcomgt graceflyrightaolcom Mary Wennerltmwenn0108yahoocomgtSubject Seydel Dan - WSDOT Disparity Study Presentation Public Testimony Jackie

Per your request below are my questions and comments some of which were verbally sharedyesterday

Congratulations on receiving the blessing of additional technical assistance dollars andcompleting the DBE Disparity Study per your report

1) Do you have any reports on your outcomes from the past 5 years on DBE support servicesand specific key performance measures from previous years funding (ie how many firmsutilized what was the objectives were objectives met did outcomes meet total satisfaction ifnot why next steps what was the firms capacity before and after services were performed (iesales employees bonding if applicable insurance equipment line of credit if applicablenumbertype of customers how are they doing now etc))

2) What other changes or improvements other than allowing DBES to select their own serviceproviders and a staff change will be a part of this new program

3) Was consideration to provide the new mentor protege consultant rather than separating theactivities into support services andor technical assistance

Disparity study clarifications andor comments

1) Will WSDOT consider sponsoring legislation to support the policy changes and goalincreases to insure manditory goals wont be necessary

a) If not what measures will you grant primes to operate outside the box (ie entertain bestvalue over low bid modify responsiveness by subs to require adherence to meeting voluntarygoals developing standards around federally funded gccm and other low bid procurementsthat give powers to primes to meet objectives including but not limited to mentor protegerelationships joint ventures bond waiving techniques cash flow assistance material andequipment acquisition manufacturer development specifications that have only DBES orinclude equal number of DBES as non DBES as approved installers etc)

2) Will the disparity study consultant be available for implementation or information gatheringfrom other regions

3) What lessons did WSDOT learn that it did not know from the other study(s)

4) What would WSDOT do different (ie scope time line process approach etc)

5) Will WSDOT be hiring more diverse staff amp professionaltechnical service providers inother departments outside OEO to insure policies commitments and evaluations areperformed in manner that improves diversity that reflects the communities WSDOT serves bythoughtful and legal efforts increase participation thus creating successful outcomes includingpartnerships and collaborations

Thank you for your hard work

Daniel J Seydel IIPlatinum Group LLC2064060844f) 2062999934wwwplatinumbusinessgroupcom

Small Business is the Answer

FREE TRAINING FOR ENTREPRENEURS amp JOB SEEKERS - Polish your skills or makeyour firm standout thanks to the Entrepreneurial Institute of Washington

httpswwwyoutubecomchannelUCKL5YeVxL29HnNxqnb6hmXA

LIKE US on FaceBook if an Active Professional Development workshop provided by EIWConstruction University helps your firm or has benefited you

httpswwwfacebookcomEIWashingtonref=hl

From Erin EhlingerTo Bayne JackieSubject Support for WSDOTs proposed DBE goalDate Wednesday December 13 2017 115417 AM

I am writing to support the WSDOT recommended DBE Goal for FHWA contracts of 190 I also want to express my appreciation for the thoroughness of the WSDOT Disparity study and howthe study disclosed the disparity in WSDOT contracts that do not have a DBE or WBE goal ndash furtherreinforcing that all women-owned firms and minority owned firms face equity issues I remain concerned with the methodology required by the Code of Federal Regulations and case lawbecause of the dependence on the availability of firms in the calculation An unintendedconsequence of removing either gender or race from the goal is that many of these firms would goout of business the availability decreases and the formula then results in a smaller DBE goal Pleaselet me know how I can help influence a change to the CFR Thank you Erin Ehlinger

Erin Ehlinger PEPresident

24036 SE 47th StSammamish WA 98029erinehlingersmartcitytrafficcom425-221-0320

From Jackie EtterTo WSDOT Disparity StudySubject Why we need mandatory goalsDate Friday December 1 2017 61859 PM

As a DBE participating in bidding process I have found that regardless of the language which claims to insurethat disadvantaged business enterprises shall not be discriminated against the only way to ensure that this does nothappen is by mandating affirmative action goals Having been overlooked time and time again because of my gender when I have submitted bids that are verycompetitive with other bidders is very frustrating I have had many instances of companies using my price to getmy non DBE competitors to lower theirs The voluntary or laudatory DBE goals do nothing to ensure a level playing fieldThe only way to ensure non-discrimination is through mandatory goals

Jackie EtterWest Star Construction of Spokane

Sent from my iPhone

From Claudia HirscheyTo Key Earl Bayne JackieSubject WSDOT DBE Goal - Comment in supportDate Tuesday December 12 2017 61937 PM

Dear Earl and Jackie The WSDOT recommended DBE Goal for FHWA contracts of 190 is a small and important increasethat can further achieve equity in WSDOTFHWA contracting I am in support of the 19 DBE Goal I also want to express my appreciation for the thoroughness of the WSDOT Disparity study and howthe study disclosed the disparity in WSDOT contracts that do not have a DBE or WBE goal ndash furtherreinforcing that all women-owned firms and minority owned firms face equity issues I remain concerned with the methodology required by the Code of Federal Regulations and case lawbecause of the dependence on the availability of firms in the calculation An unintendedconsequence of removing either gender or race from the goal is that many of these firms would goout of business the availability decreases and the formula then results in a smaller DBE goal Sincerely Claudia S Hirschey PETransportation Consulting Servicesclaudiahirscheycomcastnethttphirscheytcscom2068564988 Mobile

From Nate ThomasTo WSDOT Disparity StudySubject WSDOT Proposes DBE goal of 19Date Thursday December 7 2017 42720 PM

The WSDOT should look into similar ways the Federal Gov has handled the equal opportunity forthose that fall under the DBE status and set aside specific projects for the DBErsquos and moreimportantly UDBErsquos so these companies have better chance of landing contracts Maybe a lot 10 ofthe DBE goal to set aside for only DBEs and other 9 goal met as it is done currently with COA onlarger contracts Nate ThomasSenior EstimatorD 5095688085 | C 5099941156331 North Fancher Road | Spokane WA | 99212

The information contained in this email including any attachments is confidential and may beprivileged It is intended only for the person or entity to which it is addressed and no waiver isintended by sending this email If the reader is not the intended recipient you are herebynotified that any review retransmission dissemination or other use of or taking any action inreliance upon this information is strictly prohibited If you have received this email in errorkindly notify the sender by reply email and delete the original message from any computerThank You

From Brian FujiiTo WSDOT Disparity StudySubject WSDOT propsed DBE GoalsDate Thursday December 7 2017 110638 AM

Good morning Jackie

I wanted to comment on WSDOTs proposed DBE goal to 19 I believe WSDOTs plan toincrease the overall DBE goal to 19 will provide greater opportunities for DBE contractorsin different disciplines to participate in federally funded contracts

Without the new DBE requirement and with Proposition 200 there are limited opportunitiesfor DBE contractors in disciplines different than the typical trucking flagging and rebar Inaddition there are no incentives for general contractors to go out beyond the usual truckingflagging and rebar DBE subcontractors

Increasing the DBE goals will provide opportunities for different DBE contractors in differentdisciplines to participate in WSDOT federally funded projects

Thank you for your time

RespectfullyBrian FujiiPresident Subsurface ConstructionP 2063836478F 2069604639MDBE 4M0024998

From Forman StephanieTo Bayne JackieCc Millar Roger christinenhanmailhousegov Claudia Hirschey Sarah Corbin Jiang Yingle

efaulknerenviroissuescom Diana Giraldo Kelly CheesemanSubject WTS - Disparity Study Comment LetterDate Friday December 15 2017 71020 PMAttachments 2017_Dec 15_WTSCommentLetter_WSDOT DBE Goalpdf

Dear Ms Bayne Please find our attached letter which summarizes the WTS Puget Sound Chapterrsquos support foradvancement of women in transportation and our comment letter regarding the recent DisparityStudy Please feel free to contact me if you have any questions or would like to discuss Sincerely Stephanie S Forman PEWTS Puget Sound President Transportation Project Manager

929 108th Avenue NE Suite 1300Bellevue WA 98004D 4254681548 M 2062291745stephanieformanhdrinccom

December 15 2017

Jackie Bayne Policy and Reporting Manager

Office of Equal Opportunity

Washington State Department of Transportation

PO Box 47314

Olympia WA 98504-7314

Dear Ms Bayne

On behalf of the Puget Sound Chapter of Womenrsquos Transportation Seminar (WTS) we would

like to thank the Washington State Department of Transportation for presenting to our

organization the DBE Disparity Study results We very much appreciated the presentation by Earl

Key Director of WSDOTrsquos Office of Equal Opportunity Teresa Berntsen (Director Office of Minority

and Womens Business Enterprises) as well as Leslie Jones (Director Sound Transit Office of Small

Business Development and Labor Compliance)

Following a review of the WSDOT Disparity Study and as a result of consultation with WTS

International we would like to provide WSDOT with our comments for your consideration

As you know WTS is an organization focused exclusively on attracting retaining and advancing

women in transportation By the year 2018 there will be thousands of vacancies in the

transportation industry for qualified professionals and while women account for more than half of

the worldrsquos workforce they are a very small minority in transportation disciplines

We are pleased that the outcome of the 2017 Disparity Study that recognizes the on-going barriers

for DBEs including women-owned businesses in transportation The WSDOT recommended DBE

Goal of 190 is a small and important increase that can further achieve equity in WSDOTFHWA

contracting We are also pleased that the 2017 Disparity Study has documented the disparity in

WSDOT contracts that do not have a DBE or WBE goal ndash further reinforcing that all women-owned

firms and minority owned firms face equity issues We are encouraged that the WSDOT has asked

FHWA to rescind the 2016 waiver

While WTSrsquo mission is specific to the advancement of women we are a race-neutral organization To

this end we are also deeply concerned about the underutilization of minority owned firms There is

no equity or ldquofair playing fieldrdquo without equity for all gender and races We remained concerned with

the methodology required by the Code of Federal Regulations and case law because of the

dependence on the availability of firms in the calculation An unintended consequence of removing

either gender or race from the goal is that many of these firms would go out of business the

availability decreases and the formula then results in a smaller DBE goal This consequence is

contrary to our mission

We look forward to our continued participation in WSDOTrsquos DBE advisory group we are anticipating

notice that the 2016 waiver has been rescinded and how we can work together to continue

advancing minority and women-owned firms in the transportation field

Sincerely

WTS Puget Sound Chapter

Stephanie Forman

President

C Roger Millar Secretary WSDOT

C Representative Adam Smith 9th Congressional District Washington co Christine Nhan

WTS Puget Sound Chapter

PO Box 3461

Bellevue Washington 98009

From Dave Gent - WAPATo Bayne JackieCc Tom GaetzSubject WAPA Public Comments - RE WSDOT FHWA Disadvantaged Business Enterprise Proposed GoalDate Friday December 15 2017 14119 PMAttachments 12152017 DBE Proposed Goal - WAPA Public Comments Letterpdf

Good afternoon Jackie Please find attached WAPArsquos ldquofor the public recordrdquo comments with respect to WSDOTrsquos proposedDBE Goals FHWA funded work I assume that the Master DBE Directory was not sent to you this week so as a result we were notable to review the directory before the close of the public comment period That fact is noted withinour comment letter Thank you for your efforts Have a good weekend

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Friday December 8 2017 1219 PMTo Dave Gent - WAPA ltdavegentasphaltwacomgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hello Dave WSDOT did not take possession of this directory as part of our review process We will provide youwith the records without submitting a formal request However we need to get them from theconsultant first I will hopefully have them to provide next week I will keep you updated on therequest Have a nice weekend Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal Opportunity

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

December 15 2017

Jackie Bayne Policy Manager WSDOT Office of Equal Opportunity Delivered via e-mail to BayneJwsdotwagov RE Public Comment (as requested) to Proposed Overall DBE Goal for the FHWA (2018 ndash 2020) Ms Bayne Thank you for your presentation via webinar on December 5 2017 outlining WSDOTrsquos evaluation process used to determine the proposed overall DBE goal for the FHWA Thank you also for the Colette Holt amp Associates (CHA) DBE Advisory Group presentation made on September 14 2017 Both presentations helped to distill the findings of the 2017 Disparity Study produced by CHA In response to Earl Keyrsquos initial informal request to comment on the proposed overall DBE goal made during the DBE Advisory Committee teleconference held on October 12th we provided a list of reasons that we believe justify a lower DBE goal than is now being proposed Our initial response to Mr Keyrsquos request did not serve to influence WSDOT and the current proposed goal remains at 190 The arguments provided on October 12th against the significant increase in the proposed DBE goal (versus the previous goal and recent historic DBE participation) are repeated and supplemented below and will serve as the Asphalt Pavement Associationrsquos (WAPArsquos) official public comments

In concert with WSDOT and the OWMBE WAPA and the construction firms that WAPA represents have demonstrated a commitment to the principals of equal opportunity for all ldquoready willing and ablerdquo firms for the entire history that our DBE program has been in place WAPA has continuously demonstrated its commitment to the goals of the DBE program and for increasing the representation of disadvantaged groups within our industry as both workers and owners of firms Please recognize that WAPArsquos oversight and critique of the DBE program has always attempted to balance the principals of fair and open competition with the practical aspects of the low bid compressed schedule high performance standards demanded within the WSDOT marketplace Our comments below are meant to enhance WSDOTrsquos and OWMBErsquos understanding of the market and to hopefully have WSDOT fully consider all of the dynamics that are at play when proposing its Triennial DBE goal for FHWA projects Current DBE Capacity vs Historically Robust Market In advocating for a realistic and defensible DBE goal it has always been WAPArsquos position that it is paramount that the realities of the marketplace and true certified DBE subcontracting capacity should be a primary standard While a ldquostretchrdquo goal may appear to be progressive on its face it comes with consequences for all of the parties involved in the WSDOT federal aid contracting arena To balance the dynamics of the WSDOT contracting system the DBE goal should be tempered with the realities of the market and with a true measure of the underlying effectiveness of the DBE support services available to contractors

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 2 of 6 The first point of fact that has not been given any apparent consideration by WSDOT in its evaluation of the current capacity of certified DBErsquos is that there is an historically robust workload scheduled to be performed in the 2017 through 2022 time-frame particularly in the Puget Sound ldquoEverett to Olympiardquo corridor By WSDOTrsquos own estimates (see Attachment A) public works construction project starts in the 2018 to 2022 time-frame in this region will exceed $333 billion (B) counting the work projected from just five public entities WSDOT will be taking a decidedly ldquoback seatrdquo role during this period to Sound Transit which will have construction project starts of $226B vs WSDOTrsquos projected volume of $67B WSDOTrsquos summary publication titled Washington State Department of Transportations Proposed Federal Highway Administration Triennium Disadvantaged Business Enterprise Goal Federal Fiscal Years 2018-2020 states correctly that ldquoIncluded among the types of evidence that must be considered are the current capacity of DBEs to perform work on WSDOTrsquos federally-assisted contracts as measured by the volume of work DBEs have performed in recent yearshelliprdquo (Step Two Adjustment discussion) With the Sound Transit program being over 300 larger than the total WSDOT program in this region a sober assessment of true certified DBE capacity in the next three years needs to be considered by WSDOT If the huge construction boom over the next five years does not prompt a Step Two Adjustment then it becomes obvious that the realities of the market are being ignored by WSDOT for DBE goal setting Put another way if the 2018 through 2022 level of contracting activity does not warrant a goal adjustment what will DBE Access Barriers Not Yet Addressed The CHA 2017 Disparity Study points out multiple recommendations in Section VII that impact DBE participation and access to the market Assessments relating to those impacts and the state of maturity in addressing the CHA recommendations should be considered when assessing the DBE goal Many of the CHA recommendation have not been adequately addressed at this point in time Some of the prime examples are listed below Increase Certification and Expertise ndash The Disparity Study as explained to us includes all minority- (MBE)

and women-owned (WBE) firms that could be readily identified that perform work within Washington State and that perform work within the NAICS code framework CHA developed to cover WSDOT project work During the various presentations relating to the Disparity Study WSDOT representatives said that outreach to currently non-certified MBE amp WBE firms has increased and that WSDOT aspires to bolster its list of certified firms in the future but this effort is just beginning and the success of the effort needs to be means tested against the broader population of MBE amp WBE firms included in the CHA base line evaluation As the Disparity Study uses a much broader population of MBE WBE contractors to arrive at its conclusions (both non-certified firms and firms too large for certification) it follows that the calculated DBE proposed goal is overstated to include capacity that does not currently exist within WSDOTrsquos certified DBE framework Unless OMWBE is experiencing sudden and unprecedented success in recruiting new MBEWBE firms the DBE goal should be adjusted downward to recognize that the ldquoready willing and ablerdquo contractors that WSDOT has certified is only a subset of the total MBEWBE contracting population used in the Disparity Study evaluation

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 3 of 6

Until the promised WSDOT outreach registration efforts result in a substantial increase in available certified DBE firms it is premature to count the entire population of minority- and women-owned contractors as available to participate in WSDOT contracting It is unreasonable for WSDOT to project availability capacity using the entire MBEWBE population when only its currently truncated list of certified firms is acceptable to count toward the DBE goal

A corollary to the Increase Certification and Expertise discussion above is that the calculation of the Base Figure evidently includes the broadest practical population of MBE and WBE firms identifiable (without a review of the CHA Master DBE Directory which has not been supplied prior to the close of the public comment period the scope of the directory cannot be ascertained) If this directory includes a large population of MBEWBE firms that are not certified or are too large to be certified then the Base Figure calculation should be adjusted to reflect that certified DBE firms are a fraction of the total MBEWBE firms used to arrive at the 19 suggested DBE goal With respect to the CHA Master Directory it is our understanding the WSDOT was not given the directory as part of its evaluation of the Disparity Study and it follows that it did not evaluate the proposed DBE goal in the context of the CHA Master DBE Directory In our opinion an informed decision on adjusting the CHA baseline goal calculation can only be done after an extensive evaluation of the CHA Master DBE Directory If this has not been done WSDOT has not exercised due diligence in evaluating the context and underpinnings of the CHA Disparity Study and a certified DBE Triennium goal proposal to the FHWA is premature Increase Contract ldquoUnbundlingrdquo ndash If this proposed strategy (suggested by the CHA Study) is undertaken

certified DBE Subcontractors currently available will be engaged as Prime Contractors and the value of their prime contracts will bolster the overall percentage of certified DBE contracting but a systematic effort and strategy to ldquounbundlerdquo has not been articulated by WSDOT The key question of how this effort can be accomplished without increased cost to the taxpayers and increased inconvenience for the traveling public As noted in the CHA study (page 129 final paragraph) ldquoUnbundling must be conducted however within the constraints of the need to ensure efficiency and limit cost to the taxpayersrdquo As of this writing no overarching strategy for further unbundling with proper accountability has been articulated by WSDOT to the DBE Advisory Group

Review Insurance and Experience Requirements ndash Impediments to certified DBE participation due to

necessary insurance and experience standards cannot be solved by the prime contracting community Unless and until WSDOT puts together programs to address the burden of the substantial risks shouldered by Prime Contractors on WSDOT contracts barriers for streamlined utilization of certified DBE firms will continue to exist These market driven barriers will continue to dampen the availability of certified DBE Subcontractors that are able to perform within WSDOTrsquos strict criteria without unduly transferring risk to the Prime Contractor

Better Partnering to Overcome DBE Failures to Perform ndash Prime Contractors are held fully responsible to maintain the project schedule and are subject to project liquidated damages even when they may be struggling to deal with Subcontractor performance issues It is well-established that replacing a certified ldquocondition of awardrdquo (COA) DBE Subcontractor is very onerous and likely very costly to the Prime Contractor Unfortunately the imposition of strict and often counter-productive commercially useful function (CUF) rules often compound this issue as Prime Contractors cannot help COA DBE Subcontractors work through capacity expertise or time-related issues that impact timely performance

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 4 of 6

WSDOT needs to be a much better partner in the process of dealing with under-performing or non-performing certified DBE Subcontractors The current standard operational procedure places all of the exposure for non-performance onto the Prime WSDOT does not have an equitable system to account for non-performing or under-performing certified DBE Subcontractors hired as a condition of award (COA)

Performance Information and Training ndash Commercially useful function rules (CUF) and the lack of clear benchmark definitions for good faith effort (GFE) standards remain barriers for improving accountability within the DBE system and in turn lead to distorted DBE participation rates These items remain amorphous due to lack of training or lack of historic information Chronic uncertainty exists regarding both of these items Until WSDOT changes and improves its approach to provide transparency and certainty for both the prime bidding amp subcontracting parties true certified DBE capacity will continue to be masked and the resultant higher subcontracting costs associated with a distorted marketplace will continue to be hidden

WAPA respectfully suggests that simply adding an ldquoEstimated DBE Subcontract Premiumrdquo line to the current DBE bid forms would help to establish benchmarks that could begin to be used to ldquomeans testrdquo good faith efforts If this information had been gathered over the last 20 years of the DBE program meaningful GFE standards could have been developed and could be in place today

An in-depth review of CUF standards would also provide clarity For instance it is unclear why force account items performed by certified DBEs are currently counted at only 50 of the value of the work How was this benchmark established Has it been reviewed since imposed Did it ldquosolverdquo whatever inequity WSDOT was trying to address Better clarity may lead to more expanded opportunities for certified DBE Subcontractors

Enhanced Supportive Services and Business Development Programs ndash Unless and until stronger programs of these types are shown to be effective in boosting certified DBE business development increased DBE participation due to stronger business acumen should not be relied upon when setting the new DBE goal

Does OMWBE have a reasonable expectation that future plans for enhanced and expanded programs will be more successful than those employed in the past Assuming that certified DBE Subcontractors will be better prepared to deal with the WSDOT contracting environment than in the past should not be relied upon to boost DBE participation goals Especially troubling were the multiple references within the CHA report highlighting that DBEs believe that the staff at OMWBE lack a deep knowledge about the highway construction industry (eg Study page 129 2nd paragraph) Does OMWBE have a path forward that will address this issue and thus improve supportive services impacts

Develop a Bonding and Financing Program for SBEs ndash This is completely outside of the prime contracting

communityrsquos scope of influence WSDOT must find a way to institute changes that both protect the taxpayer and help increase certified DBE bonding capacity and access to financing ndash very large hurtles To assume that these hurtles can effectively be overcome within the 2018 ndash 2020 time frame when they have been chromic issues for the past 20 plus years of DBE program development is not rational

A helpful innovation would be for WSDOT to underwrite performance and payment bonds for certified DBE firms or to create promote a system that helps certified DBE firms obtain private bonding Bridging the gap to address capital access and performance risks (bonding) must be championed by WSDOT

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 5 of 6

Base Figure Adjustment to Address Available Subcontract Volume and DBE Prime Contracts It is a fact that mid- to large-sized MBEWBE firms that compete both as Prime Contractors and as Subcontractors are not eligible to be OMWBE certified DBEs Further the current amount of contract unbundling for greater DBE access to WSDOT prime contracting (see below) accounts for a very low dollar volume of prime contracts performed by certified DBEs Finally by specification (WSDOT standard specification 1-081) Prime Contractors are obligated to perform 30 of the total volume of the work (less specialty work) or stated another way a maximum of 70 of the dollar volume on WSDOT projects is typically available to award to subcontractors These market dynamics are NOT addressed in the Disparity Study A responsible DBE goal made absent of these facts should not be implemented A reasonable adjustment to the proposed 19 DBE goal is presented below

bull The percent of WSDOT prime contracts awarded to certified DBE firms is likely less than 5 by total WSDOT

contract volume Assuming this approximation is valid (likely very conservative) then the amount of WSDOT contract work available to certified DBE firms via subcontracting should be adjusted to account for the factors outlined above The Base Figure (19) should be adjusted to recognize that a 70 maximum subcontractor participation is available (in the numerator) and to account for the assumed 5 certified DBE prime contracts in the denominator Reasonable Base Figure Adjustment 19 (proposed) x 70 subcontracts available divide 95 of Non-Certified DBEs as Prime Contract Volume = 190 x 0737 = 140 adjusted goal This is an adjustment based on the practical dynamics of the WSDOT contracting system and it represents a more realistic look at the true subcontract volume that is available for Prime Contractors to award to certified DBE firms

Conclusions

Until the items listed above are addressed and in place it is not reasonable to believe that DBE goals can be increased by nearly 163 (from 117 to 190) When the projected robust public works contracting market is appropriately considered the true availability of certified DBE Subcontractors for WSDOT contracts will be truncated due to demand across all public works sectors With multiple strong public works programs competing for a limited population of certified DBEs the ability to meet increased WSDOT DBE goals will be severely challenged Without very clear concise and transparent good faith effort rules the ability to address DBE goals that greatly overestimate true near term certified DBE capacity will result in non-attainment bid day chaos failures to perform andor rapidly increased pricing

The clear conclusion is that at this point in time under the current circumstances without effectively instituted new programs rules procedures that could enhance the certified DBE programrsquos overall effectiveness we believe that the DBE goal should remain at or near 12 As OMWBE documents and demonstrates its future successes in improving access and eliminating capacity barriers only then should the DBE goal be re-evaluated and increased

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 6 of 6

In closing please remember that it is rare that the contracting community is asked our opinion with respect to the WSDOTrsquos DBE policies and so this letter is somewhat a vehicle to highlight collective concerns It is our belief that the majority of the Prime Contractors in Washington state support the objective of creating a level playing field for ready willing and able DBEs

If the level playing field is not yet possible in the absence of the DBE program then the key is to set realistic goals that recognize reflect and address the hard realities and market dynamics imposed by WSDOTrsquos bedrock environment of awarding contracts to the lowest cost responsible and responsive Contractor

Respectfully submitted Washington Asphalt Pavement Association

David Gent Tom Gaetz Executive Director Senior Advisor

Attachment A ndash WSDOT Central Puget Sound Public Works Contracting Projection 2018 - 2022

Con

stru

ctio

n Pr

ojec

t Sta

rts

2018

-202

2S

ound

Tra

nsit

$22

6 B

SD

OT

$08

B

Tran

sit

amp O

ther

s$1

7 B

WS

DO

T$6

7 B

Por

t of

Sea

ttle

$15

B

TOTA

L$3

33

B

Source N

ov 1

9 2

017

pres

enta

tion

to W

APA

Ann

ual M

eetin

g

Attachment A

Work (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Dave Gent - WAPA [mailtodavegentasphaltwacom] Sent Thursday December 7 2017 144 PMTo Bayne Jackie ltBayneJwsdotwagovgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hi again Jackie Irsquom fine thanks and hope you are the same Interesting The Master DBE Directory is the basis for and integral to the conclusions of the DisparityStudy Is it not then part of the information needed to fully review and comment on the DisparityStudy Was it not provided by CHA to WSDOT for review We are trying to fully understand thestudy and if this directory was part of the study why would it need to be obtained by a publicrecords disclosure It should be in the public domain and not restricted from ease of access If you are sure that a public records request is needed Irsquoll start that process but we will need tonote that point of fact when we submit our public comments If you are able to reconsider please let me know Respectfully

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Thursday December 7 2017 126 PMTo Dave Gent - WAPA ltdavegentasphaltwacomgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hello Dave I hope you are doing well

That information would likely be obtained through a public disclosure request Best Regards Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Dave Gent - WAPA [mailtodavegentasphaltwacom] Sent Thursday December 7 2017 113 PMTo Bayne Jackie ltBayneJwsdotwagovgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Jackie Can you please provide an electronic file or provide a weblink for the Master DBE Directory thatColette Holt amp Associates developed for the WSDOT Disparity Study 2017 (first referred to on Page 8of the Disparity Study) I did not see a link to this Master DBE Directory within the study Thanks

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Friday October 27 2017 1118 AMTo Kenyon Wendy ltKenyonWwsdotwagovgt Adams E W ltewadamssystemsclcomgtAdekoyaAndrew ltandrewadekoyabccomgt AlyssaBalllegwagov Anindita Mitraltamitracrea-affiliatescomgt APRISeattlehotmailcom Armstrong CharlotteltCharlieAatgwagovgt Ato Apiafi Architects PLLC ltatoaatoapiaficomgt benzfanwaorgBerntsen Teresa (OMWBE) ltTeresaBomwbewagovgt Billingsley Andrealtbillinawsdotwagovgt Bramlet Erica ltEricaBramletlegwagovgt Brooks Julius

ltBrooksJwsdotwagovgt Brown Jason ltjbrownldccorpcomgt bwallacenwlaborersorgCamden Allison ltCamdenAwsdotwagovgt carlllivingstongmailcom Cerda OscarltCerdaOwsdotwagovgt Christopher Chris ltChristCwsdotwagovgt ckerneycaawagovdanplatinumbusinessgroupcom davegentasphaltwacom David BalltDavidsignsnowmillcreekcomgt Davis Khalia ltDavisKhwsdotwagovgt Davis RaShelle (GOVltrashelledavisgovwagovgt Dayton Jo ltDaytonJwsdotwagovgt ddhondtagcwacomDebbieDriverlegwagov Dennis ltdennisahlkiewitcomgt dmcleodnwlaborersorgdrart6651gmailcom Duncan Enid lthigradeincgmailcomgt EltonltEltonwashingtonstatetruckingcomgt eprincecaawagov flemosldccorpcomfmartineznwmtnmsdcorg geoffshookatkncom glovelady ltgloveladyexcelglovescomgtGrabow Katie ltkgrabowsystemsclcomgt Guilfucci Jackie ltJackieGuilfucciskanskacomgt HealyLinda ltHealyLwsdotwagovgt Higginbotham Breanne ltHigginBwsdotwagovgt HirscheyClaudia ltclaudiahirscheycomcastnetgt Holt Colette ltcoletteholtmwbelawcomgt Huff JohnltHuffJwsdotwagovgt Iniguezchawagov JacksonMaynardlegwagov Jimmy Matta(jmattaalcantarassoccom) ltjmattaalcantarassoccomgt kellywickergovwagov Key EarlltKeyEwsdotwagovgt Kirk Jon ltjkirkwhhnfscomgt Kris Purrier ltkpurrierhwageocomgtleewabuildingtradesorg lesliejonessoundtransitorg Liz Evans ltlevansagcwacomgt LopezErin lterinlopezdeswagovgt Martha Cerna ltMarthaPSLCCORGgt Martin-Arnold EdwinaltMartinEwsdotwagovgt Mary Lerdahl ltmarydbeelectricinccomgt McCarty Hannahlthannahmccartylegwagovgt Melissa L Boyles ltmelissaboylesmwbelawcomgt Metcalf KeithltMetcalKwsdotwagovgt michaelicapaawagov Michelle ltMichelleTTCC26netgt MillarRoger ltMillarRwsdotwagovgt Nakamura Jason ltjasonnakamura1-alliancecomgtNavarroLportseattleorg olliepmt-solutionscom pastorbanksesbctacomacom PatrickHughes ltphugheshughesgroupbizgt Petersen Jodi (FHWA) ltJodiPetersendotgovgtrabbottliunaorg rcarmsteadgmailcom ricemportseattleorg Riley D ltdrileylydigcomgtSeling ltSelingjpfranciscomgt sherryharrisergosynchcom Stell MellodyltStellMwsdotwagovgt terigobintulaliptribes-nsngov timwilliamfactorycom tinaterra-tdicom tkellyldccorpcom tomgaetzmsncom vcollinsacec-waorgverlenejazzmsncom Wang Albert ltWangAatgwagovgt Waugh GregltGregWMaxKuneyComgt Yates Henry ltYatesHWSDOTWAGOVgtCc Tom Gaetz lttomgaetzmsncomgt Dave Gent - WAPA ltdavegentasphaltwacomgt VanCollins ltvcollinsacec-waorggt Daniel Seydel II ltdanplatinumbusinessgroupcomgt MaynardJackson ltJacksonMaynardlegwagovgt Carl Livingston ltcarlllivingstongmailcomgt DonMcLeod ltdmcleodnwlaborersorggt JIMMY MATTA ltjimmymattamsncomgt Prince Ed(CAAA) lteprincecaawagovgt David DHondt ltddhondtagcwacomgt Irene Reyesltgloveladyexcelsupplycompanycomgt McDaniel Craig ltMcDaniCwsdotwagovgtsherryharrisergosynchcomSubject WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Good morning On Monday October 30th WSDOT will be releasing the proposed overall Federal HighwayAdministration Disadvantaged Business Enterprise goal attached for public comment throughDecember 15 2017 This overall DBE goal is based upon the recently completely DBE ProgramDisparity Study WSDOT is proposing a 19 percent overall DBE participation goal on Federal Highway

Administration-funded projects for federal fiscal years 2018 through 2020 DBE goals fortransportation projects that receive federal funds represent a percentage of the value of work inwhich minority- and women-owned businesses should participate Once finalized and submitted toFHWA early next year the goal will be effective through Sept 30 2020

The purpose of the DBE program is to create a level playing field for firms owned and operated bydisadvantaged individuals wanting to participate in federally assisted highway transit and aviationprograms The attached overall DBE goal is for FHWA funded projects WSDOT will be updating theFTA and FAA overall DBE goals in the near future

If you have any questions please contact Earl Key Director of the Office of Equal Opportunity at3607057091 or KeyEwsdotwagov Thank you Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

  • Proof-Of-Publicationpdf
    • Mediapdf
      • AGC
      • Daily Journal
      • Daily Medium
      • DBEGood
      • OMWBE
      • Seattle Medium
      • Tabor 100
      • The Chronicle
      • Tukwila
        • King County
          • Public-Comments-20180111pdf
            • 19 DBE Requirement(1)
            • AGC Comments on Proposed 10 Goad
            • Backstrom Curb amp Sidewalk
            • comments on WSDOT proposed DBE goal
            • Cowlitz County Public Works
            • DBE Contracting goals
            • DBE Goal
            • DBE Program Disparity Study
            • Disparity Study Comments from City of Spokane
            • FW_ WSDOT News - WSDOT seeks comments on propos
            • Proposed DBE Goals
            • RE_ DBE Contracting Goal Comments
            • Re_ DBE Goal Comments
            • Re_ Seydel Dan - WSDOT Disparity Study Present
            • Support for WSDOTs proposed DBE goal
            • Why we need mandatory goals
            • WSDOT DBE Goal - Comment in support
            • WSDOT Proposes DBE goal of 19
            • WSDOT propsed DBE Goals
            • WTS - Disparity Study Comment Letter

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October 31 2017

WSDOT proposes new DBE goalsBy JOURNAL STAFF

OLYMPIA mdash The Washington State Department of Transportation is proposing a 19 percent overall DBE participation goal on Federal Highway Administration-funded projects for federal fiscal years 2018 through 2020

WSDOT plans to submit the goals early next year and is seeking comments through Dec 15

To read this story in full or purchase a login subscription

HOME MyDJC BUSINESS CONSTRUCTION REAL ESTATE ARCHITECTURE amp ENGINEERING ENVIRONMENT TECH WEEKEND FEATURES SEATTLESCAPE

Page 1 of 2Seattle DJCcom local business news and data - Construction - WSDOT proposes new D

1112018httpwwwdjccomnewsco12105680html

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WSDOT seeks comments on proposed DBE contracting goal for highway projects - Seattle MtgWSDOT seeks comments on proposed DBE contracting goal for highway projects

Comments accepted through Dec 15

OLYMPIA ndash Contractors trade and labor organizations small and disadvantaged businesses and all others who may be interested in working with the Washington State Department of Transportation are invited to comment on the agencyrsquos proposed Disadvantaged Business Enterprise goal for Federal Highway Administration contracts

DBE goals for transportation projects that receive federal funds represent a percentage of the value of work in which minority- and women-owned businesses should participate WSDOT is proposing a 19 percent overall DBE participation goal on Federal Highway Administration-funded projects for federal fiscal years 2018 through 2020

Once submitted to FHWA early next year the goal will be effective through Sept 30 2020

The purpose of the DBE program is to create a level playing field for firms owned and operated by disadvantaged individuals wanting to participate in federally assisted highway transit and aviation programs

Connecting with communities WSDOT will host a series of public meetings to provide opportunities for individuals to comment in person

Spokane meeting was held Nov 28

Vancouver meeting was held Nov 29

Seattle

2 ndash 4 pm Thursday Dec 7WSDOT Northwest Region Headquarters15700 Dayton Ave N Shoreline

Page 1 of 3WSDOT seeks comments on proposed DBE contracting goal for highway projects - Seattl

1112018httpwwwomwbewagovabouteventswsdot-seeks-comments-proposed-dbe-contracting

Date Thursday December 7 2017 - 200pm to 400pm

Other ways to provide comment Those who are unable to attend one of the meetings can participate in a no-cost webinar from 230 ndash 430 pm Tuesday Dec 5 Registration for the webinar is required Those interested in participating should email DisparityStudywsdotwagov (mailtoDisparityStudywsdotwagov)

Written comments can also be submitted by mail or email Jackie Bayne Policy amp Reporting Manager Washington State Department of Transportation Office of Equal Opportunity PO Box 47314 Olympia WA 98504-7314 DisparityStudywsdotwagov(mailtoDisparityStudywsdotwagov)

Documents detailing the methodology used for determining the FHWA DBE goals are available for review at all WSDOT region headquarters offices and at the Transportation Building 310 Maple Park Ave SE Olympia They are also available online at wwwwsdotwagovequalopportunity (httpwwwwsdotwagovequalopportunity)

WSDOT will consider all written comments received through Friday Dec 15 2017

WSDOT keeps people businesses and the economy moving by operating and improving the states transportation systems To learn more about what were doing go to wwwwsdotwagovnews (httpwwwwsdotwagovnews) for pictures videos news and blogs Real time traffic information is available at wwwwsdotcomtraffic(httpwwwwsdotcomtraffic) or by dialing 511

Americans with Disabilities Act (ADA) Information Accommodation requests for people with disabilities can be made by contacting the WSDOT DiversityADA Affairs team at wsdotadawsdotwagov (mailtowsdotadawsdotwagov) or by calling toll-free 855-362-4ADA (4232) Persons who are deaf or hard of hearing may make a request by calling the Washington State Relay at 711

Title VI Statement to Public It is WSDOTrsquos policy to assure that no person shall on the grounds of race color national origin or sex as provided by Title VI of the Civil Rights Act of 1964 be excluded from participation in be denied the benefits of or be otherwise discriminated against under any of its federally funded programs and activities Any person who believes his or her Title VI protection has been violated may file a complaint with WSDOTrsquos Office of Equal Opportunity For additional information regarding Title VI complaintprocedures andor information regarding our non-discrimination obligations please contactOEOrsquos Title VI Coordinator at 360-705-7090

Page 2 of 3WSDOT seeks comments on proposed DBE contracting goal for highway projects - Seattl

1112018httpwwwomwbewagovabouteventswsdot-seeks-comments-proposed-dbe-contracting

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iquestAumlAEligAacuteAacuteAgravefrac12AEligAacuteAacuteiquestAEligAcirciquestiquestAEligCcedilEumlIgraveETHOgraveyenUcircfrac14iquestAEligEcircAringiquestfrac12AgraveEcirciquestAtildeAEligiquestAEligAacutedegdegdegraquodeg1ordf-raquodegraquolaquoregszligXagraveKsup3sup3Z-Kcopy0-Lszligraquocentfrac14frac12frac34iquestAumlAEligiquestfrac34iquestAacuteAacuteAEligAumlAringAringAEligAacuteEumlfrac34AacuteAgraveAringAacuteiquestAacuteAgraveAacuteiquestiquestAacuteAgraveIumlAcircAEligAacuteiquestAacuteAacuteiquestAEligAumlAacuteEumlAtilde AcircAtildeAringiquestAacuteAacuteiquestAEligCcediliquestAacute iquestAEligCcedilAacuteAacuteAgraveAEligiexclcentcentiquestAacuteAacuteAEligAumlAringAringAEligAacutefrac34iquestAtildeAumlAumlAacuteAcircAEligAacuteiquestAcircCcedilIgraveETHEumlOtildeOgraveETHETHEumlAEligAgraveAcircAtildeAEligAacuteAacuteaacuteacircAumlUcirciquestEcircAEligEumlyencentatildeAEligAacuteAumlAacuteatildeAringiquestAEligAuml iquestAumlcentAgraveiquestAEligCcedilAacuteAEligfrac14AacuteAacuteAacuteAringAEligAacute frac12AEligAacuteAacuteiquestAElig iquestAuml IumlAcircAacuteAcircAEligiquestAacuteEcircaumlRSaringPREcircAringiquestOWaeligccedilegraveeacuteNRecircSaringPRAringiquestaacute)LcopyXJeumldeg1ordf-raquodegraquolaquoreg

13

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httpwwwchronlinecomnewswsdot-seeks-public-comment-on-disadvantaged-business-enterprisearticle_f5c753ea-be61-11e7-966c-972f6769d8a6html

WSDOT Seeks Public Comment on Disadvantaged Business Enterprise By The Chronicle Oct 31 2017

The Washington State Department of Transportation will be accepting public comments about the departmentrsquos proposed Disadvantaged Business Enterprise goal for federal contracts

The goal is for transportation projects receiving Federal Highway Administration funds to have 19 percent of the value of work done by minority or women-owned businesses during the 2018 through 2020 fiscal years

ldquoThe purpose of the DBE program is to create a level playing field for firms owned and operated by disadvantaged individuals wanting to participate in federally assisted highway transit and aviation programsrdquo a press release from WSDOT said

A series of public meetings will be held to discuss the goal in Spokane Vancouver and Seattle

For those who are unable to attend the in person meetings a webinar will be hosted from 230 to 430 pm Thursday Dec 5 The webinar is free but registration is required To register email DisparityStudywsdotwagov

Page 1 of 2WSDOT Seeks Public Comment on Disadvantaged Business Enterprise | News | chronlin

1112018httpwwwchronlinecomnewswsdot-seeks-public-comment-on-disadvantaged-business-

Written comments can also be submitted by mail or email to Jackie Bayne policy and reporting manager for the department of transportation at Washington State Department of Transportation Office of Equal Opportunity PO Box 47314 Olympia 98504 or by email at disparitystudywsdotwagov Comments will be considered through Dec 17 2017

More information about the goal is available at all regional offices or at the main office in Olympia located at the Transportation Building 310 Maple Park Ave SE Olympia More information can also be found online at wsdotwagovequalopportunity

Page 2 of 2WSDOT Seeks Public Comment on Disadvantaged Business Enterprise | News | chronlin

1112018httpwwwchronlinecomnewswsdot-seeks-public-comment-on-disadvantaged-business-

larr Halfway there SR 8 fish barrier removal reaches milestone New SR 26 traffic cameras available rarr

WSDOT seeks comments on proposed DBE contracting goal for highway projects

December 1 2017 | No Comments

WSDOT is seeking comments on proposed participation goals for Disadvantaged Business Enterprises on upcoming Federal Highway Administration contracts a Yakima meeting has also been added to the schedule Source WSDOT Permalink WSDOT seeks comments on proposed DBE contracting goal for highway projects

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Page 1 of 3WSDOT seeks comments on proposed DBE contracting goal for highway projects | Tukw

1112018httptukwilatowingcom20171201wsdot-seeks-comments-on-proposed-dbe-contracting

From Liz EvansTo Bayne JackieSubject AGC Comments on Proposed 10 GoadDate Tuesday December 12 2017 50314 PMAttachments WSDOT Proposed Goal - AGC Comments FINALdocx

Hi there Jackie Attached are AGCrsquos comments on WSDOTs proposed 19 goal We will also be mailing you a copy Thanks for the opportunity to comment and we hope you find it helpful Regards Liz Liz Evans CAE Northern District ManagerAGC OF WASHINGTONTel 3602238757 | wwwagcwacom JOIN US for the 2018 AGC of Washington Annual Convention amp Technology Expo Jan 26

CUsersmwillmsPicturesInland AGCLogo_RGB_Half_5in

December 12 2017

Page 5

December 12 2017

VIA EMAIL amp US MAIL

Ms Jackie Bayne Policy amp Reporting Manager

Washington State Dept of Transportation

210 Maple Park Ave SE

PO Box 47314

Olympia WA 98504

RE WSDOT Proposed FHWA Triennium Disadvantaged Business Enterprise Goal

Dear Ms Bayne

This letter summarizes the views of the Associated General Contractors of Washington and Inland Northwest Associated General Contractorsrsquo (hereafter referred to collectively as AGC) regarding the Washington State Department of Transportationrsquos (WSDOT) recently proposed FHWA Triennium Disadvantaged Business Enterprise (DBE) Goal (the ldquoProposed Goalrdquo) AGC shares WSDOTrsquos commitment to continue the promotion of DBE firms but AGC is concerned the Proposed Goal which is a significant increase from the previous goal and actual utilization may have unintended consequences and could impose significant burdens on both prime contractors and DBE contractors alike AGC requests WSDOT reconsider its Proposed Goal and adjust the Proposed Goal to account for inevitable availability and capability issues including the lack of a formal retraction of the non-minority woman owned business waiver that makes up over half of the Proposed Goal Implementing an unachievable goal will only be to the detriment of the DBE program

1 AGCrsquos Membersrsquo Interest in WSDOTrsquos Proposed Goal

Together AGC of Washington and Inland Northwest AGC represent and serve the commercial industrial and highway construction industry These professional associations of commercial contractors are comprised of more than 900 members who have joined together to enhance the performance of their industry and build a better climate for construction operators many of which are small and closely held businesses

Like WSDOT AGC is firmly committed to the principals of equal opportunity and promoting efforts to ensure minority women and veteran owned businesses are properly represented In both its political advocacy and membership programs AGC has demonstrated its commitment to increasing the representation of disadvantaged groups in the construction industry as both workers and owners of firms For AGC this is both an issue of principles and a practical one The construction industry as a whole is facing a critical shortage of workers and it is imperative that the industry attract new participants Among AGCrsquos activities demonstrating this commitment are the following

middot AGC has an ongoing ldquoContractor Exchangerdquo program through which small minority- and women-owned subcontractors are offered one-on-one networking opportunities with established general contractors

middot The AGC Education Foundation provides financial support to construction-related programs in K-12 schools and conducts outreach specifically targeted at low income disadvantaged and female students

middot More than 2500 students most from inner-city schools participate in annual AGC-sponsored Construction Career Days in King Pierce and Spokane Counties

middot AGC supports the Pre-Apprenticeship Construction Training (PACT) program at Seattle Vocational Institute This program is focused on preparing underrepresented communities to be highly qualified applicants and successful apprentices in the construction trades

middot AGC is a sponsor of the Turner School a training course for minority- and women-business owners in the construction industry

middot AGC supports the National Association of Women in Construction (NAWIC) which provides professional development and other services to its members

middot AGC routinely supports legislative efforts aimed at supporting small businesses and encouraging small business participation

middot AGC recently formed a Diversity and Inclusion Committee comprised of both prime and DBE participants The purposed of the committee is to expand opportunities for DBE members and to help AGC consider diversity in decision-making Recently AGC approved a deeply discounted introductory dues structure for certified DBE members

middot AGC is a WSDOT partner on the new mentorproteacutegeacute program

AGCrsquos experience has been that the most effective approach is to help make emerging businesses successful through outreach training and public policies that will grow their capacitymdashnot by imposing mandates without clear evidence as to the mandates feasibility

2 WSDOTrsquos Proposed Goalrsquos Impacts To The Construction Industry

WSDOTrsquos Proposed Goal is 190 The Proposed Goal is based upon the recent Collete Holt amp Associates (CHA) Disparity Study released in 2017 With respect to availability the Disparity Study reports the following weighted availability for FHWA-Funded projects

Thus the 190 goal factors in Black Hispanic Asian Native American and White Women into its availability As indicated however this 19 goal raises a number of concerns

a WSDOTrsquos 19 Proposed Goal Represents a Significant Increase Without Concrete Evidence of Available And Capable DBE Firms

First WSDOTrsquos Proposal Goal of 190 represents a significant increase as compared to actual DBE participation (141 in 2014 117 in 2015 and 151 in 2016) as well as the last FHWA proposed goal of 116 for 2014-2018 See WSDOTrsquos Proposed Goal and Interim FHWA Overall DBE Goal Methodology FFY 2014-2018 The Proposed Goal is 74 more than the last goal which represents a 638 increase and a 52 increase over the average actual utilization for 2014-2016 While Contractors were exceeding the previous 116 goal this is primarily based on the fact that WSDOT previously requested a waiver to consider non-women-owned businesses and the waiver was not granted and effective until June 2017 (meaning that for 2014-2016 women were counted towards race-conscious goals and inevitably a higher overall percentage of DBE firms were utilized)

Contractors struggle to meet present DBE goals due to the relatively low availability of experienced and certified DBE firms By increasing the goal WSDOT is understandably trying to increase the participation of underrepresented firms Drastically increasing the goals (by over 5 of actual utilization) without concrete evidence that there is sufficient availability andor capability of such firms however will have the opposite effect Notably this lack of availability and capacity of DBE firms was discussed in detail in the Disparity Study For example the CHA Disparity Study notes a number of concerns of DBE firms while technically ldquoavailablerdquo with respect to the goal percentages are unable to meet the requirements necessary to fulfill the contract including purchasing the equipment necessary having available labor and ability to meet insurance and financing requirements Thus while there may be ldquoavailablerdquo firms there is not clear evidence (and if fact evidence to the contrary) that those available firms are capable and available to perform the majority of the FHWA-Funded contracts let by WSDOT

An additional example affecting DBE capability and availability that is not factored into the CHA Disparity Study or WSDOTrsquos Proposed GOAL is DBE ability to enter into Project Labor Agreements (ldquoPLAsrdquo) WSDOT has indicated their interest in pursuing a PLA AGC Members have raised concerns based on repeated experiences that many DBE firms due to the administrative and cost impacts refuse to enter into PLAs precluding those firms from performing certain work or increasing costs Again this lack of ability (or refusal) to perform should also be factored into WSDOTrsquos Proposed Goal which is not currently the case

b The Proposed Goal Does Not Account For The Current Non-Minority Woman Owned Business Waiver Still In Place

Second despite the significant increase WSDOT does not account for the current waiver of non-minority women owned businesses that remains in place As noted in WSDOTrsquos proposal comments WSDOT previously sought and received a waiver of the regulation that White females as a group are presumptively disadvantaged This waiver was heavily criticized by many including AGC and the results of the most recent CHA Disparity Study confirmed that White females are presumptively disadvantaged and do not enjoy a level playing field for USDOT-assisted contracts Therefore the CHA Disparity Study recommends that this group be returned to the status of goal credit eligibility WSDOT has sought a recession of the waiver but has not yet to our knowledge received a rescission of the waiver Nevertheless the 19 Proposed Goal still includes White women In fact of the 19 availability percentage White women represent 103 (over half) Accordingly for WSDOT to proceed with the 19 goal WSDOT must receive the rescission of the waiver for this goal to be even remotely possible to achieve If the rescission is not received the Proposed Goal must be adjusted

C The Proposed Goal Does Not Account For Availability Differences Across The State

Third the Proposed Goal does not account for availability difference across the state Eastern Washington contractors with an even scarcer pool of available and qualified DBE firms in the area as is the case now will be forced to subcontract to Western Washington firms paying transportation and per diem premiums for such work The CHA Disparity Study again provides numerous excerpts of anecdotal evidence demonstrating that the goals in Eastern Washington are too high A few of the contractor comments on the topic are as follows

When you apply those same goals to a different geographic region a different project site for a large firm to meet those goals is difficult because theres not necessarily the expertise in parts of the project that were submitting on

Theres very few DBEs over here [in Eastern Washington] Next year theres going to be even more work over here What are we going to do with all these goals We always meet the goals like I said youve got three four DBEs over here to do all the work and then they cant perform

There are just no [minority-owned] DBEs available in eastern Washington

See CHA Disparity Study at p 54 Again these are factors that should be taken into account in developing the Proposed Goal or at the very least its application WSDOTrsquos Proposed Goal however is silent as to this significant issue

When the lack of available firms with the capacity to perform significant DBE projects is coupled with the increased goals the price of WSDOT contracts will inevitably increase to the significant detriment of Washington taxpayers and the public entities Inevitably with a lack of available qualified firms the lack of competition will become evident and small qualifying contractorsrsquo prices will increase due to supply and demand principles as they become selected for projects and less able to take on additional work These increased DBE contract values will be passed on to the public agency and taxpayers which translates into fewer dollars available for the sorely needed and promised infrastructure upgrades In addition the instance of bid protests will inevitably increase potentially delaying projects and further diverting agency resources from badly needed infrastructure upgrades to resolving unnecessary disputes or rebidding the projects altogether

Finally faced with such drastic and potentially impossible requirements if adjustments are not made contractors may focus more on demonstrating good faith efforts Both a contractor who meets the required goal and a contractor that demonstrates good faith efforts are eligible for award It is likely that the contractor relying upon good faith effortsmdashwho will have a lower price than the other contractor who sacrificed price to actually meet the goalmdashwill be selected by the public agency This outcome will erode the total percentage participation of eligible firms and would clearly be inapposite of WSDOTrsquos intentions

3 Conclusion and Request

AGCrsquos members have asserted these and multiple other concerns Implementing an increased goal across the state and all contracts without clear evidence of available DBEs capable of performing the work and meeting the project requirements will have significant and far-reaching impacts on the construction industry many of which work against the aim of the Proposed Goal itself AGC requests WSDOT reconsider its Proposed Goal of 19 and make adjustments to account for the capability of DBE firms the lack of a rescission of the non-minority waiver and the lack of available DBE firms in parts of the state This Proposed Goal and its impacts on the construction industry will be irrevocable and will be to the detriment of taxpayers It is prudent to address these adjustments before implementing the Proposed Goal

Very truly yours

David DrsquoHondtCheryl Stewart Executive Vice President AGC of WashingtonExecutive Director Inland Northwest AGC

AGC of Washington bull 410 11th Avenue SE 203 Olympia WA 98501

Inland Northwest AGC bull 4935 E Trent Avenue Spokane WA 99212

image3jpeg

image1png

image2emf

image4png

image5jpeg

From Steve SmithTo WSDOT Disparity StudyCc Bayne JackieSubject 19 DBE RequirementDate Thursday December 14 2017 31947 PMAttachments DBE List and NAICS Listingpdf

Disparity Committee I recently read in The Daily Journal of Commerce that WSDOT plans to adopt a 19 DBEstandard for all FHWA funded projects early next year Our company S amp K Painting Inc is abridge painting company which is based in and works exclusively in Oregon and Washington Ihave been the owner of this firm since 1978 when it was first established My concerns aboutthe proposed 19 DBE requirement is as follows 1 There are very few opportunities for subcontract work on bridge repaint jobs These jobsare usually limited to cleaning and painting the bridge The only other facet of the project istraffic control which is almost always 3 or less of the project total cost The traffic controldoes provide a very good subcontracting opportunity 2 The NAISC code of 238320 includes bridge painting but also includes house painting wallcovering rust proofing etc which have almost no similarities to bridge painting When thiscode is used to determine the number of available firms (DBE or otherwise) that are availablefor bridge painting project this badly skews the numbers I would suggest that bridge paintingcontractors make up less than 5 of all firms in NAISC code 238320 3 If future WSDOT bridge painting projects require a 19 DBE participation A The qualified pool of DBE subcontractors available to submit pricing on any facetother than traffic control will be very limited I reviewed a list of 19 certified DBE firms listedunder painting at the WSDOT website and only recognized one firm from past projects B The number of prime bidders and competition will fall The state will incur highercosts due to this fact C Prime bidders will be forced to subcontract unqualified contractors just to be eligiblefor contract awards This will likely reduce the quality of the finished project Thank you for considering my concerns I may not have verbalized my thoughts as well as Iwould have liked but I have been in this business for almost 40 years and truly believe what Ihave said Sincerely

Steve Smith President

SampK Painting incP O BOx 390clacKamaS OregOn 97015Phone (503) 557-5544Fax (503) 557-5566Cell (503) 260-5280Steveskpaintingcom

From Lei WuTo Bayne JackieSubject comments on WSDOT proposed DBE goalDate Thursday December 14 2017 94925 PM

To Whom It May Concern

Below is my comments

The WSDOT recommended DBE Goal for FHWA contracts of 190 is a small andimportant increase that can further achieve equity in WSDOTFHWA contracting I am insupport of the 19 DBE Goal

I also want to express my appreciation for the thoroughness of the WSDOT Disparity studyand how the study disclosed the disparity in WSDOT contracts that do not have a DBE orWBE goal ndash further reinforcing that all women-owned firms and minority owned firms faceequity issues

I remain concerned with the methodology required by the Code of Federal Regulations andcase law because of the dependence on the availability of firms in the calculation Anunintended consequence of removing either gender or race from the goal is that many of thesefirms would go out of business the availability decreases and the formula then results in asmaller DBE goal

Thanks

Lei

Lei Wu PE AICP

Principal CSL Consulting

LeiWucsl-consultingnet

(425)562-6275

From Stephanie SimpkinsTo WSDOT Disparity StudySubject DBE Contracting goalsDate Wednesday November 29 2017 20259 PM

My name is Stephanie Simpkins and I own North Star Enterprises It is a large womanowned traffic control company located in Spokane Washington My mother founded thecompany in 1984 and I have worked in this family owned business most of my life Ipurchased the business from her in 2013 and have been sole owner since then My company thrived under the Disadvantaged Business Enterprise (DBE) Programimplemented by Washington Department of Transportation and administrated by United StatesDepartment of Transportation What started as a small business with one truck and a fewemployees has grown over the years to be one of the largest traffic control companies in thestate and employee countless people every construction season It has not been an easy roadover the years being a woman in the construction industry never is and it is hard to say wherewe would be now if it werenrsquot for the assistance of the DBE program As you know in June of 2017 majority women were removed from the DBE program basedon a disparity study conducted in 2012 On March 2014 Washington Department ofTransportation requested a wavier to remove majority women from the DBE program Thishas had an immediate and drastic impact on my business and all who work for me From themoment the waiver was approved and my company could no longer be used as a condition ofaward at bid time I began losing work Most recently the 2018 North Central Region ChipSeal which we have worked on for the last 10 years This contract provides work forapproximately 40 employees for the entire construction season I have already been told byseveral contractors that with such a high UDBE goal they wont even be able to consider mefor this project This loss along with several other smaller contracts to date are painting avery dismal future for my business With all of this turmoil surrounding the future of my business I find it frustrating to say theleast that WSDOT has chopped me off at the legs by not allowing my firm to count for theCOA but can use the little participation I may still contribute to help them reach their overallstate goal How is this fair If the contractors canrsquot utilize my business than neither shouldWSDOT As far as setting future state DBE contracting goals it looks as if the bar will beraised once again all while excluding the largest subset of useable DBErdquoS To me raising theoverall state goal at this time (which is already challenging to meet) with women DBErsquosexcluded from the program seems horribly ill timed

From Karen R BannishTo Bayne JackieSubject DBE GoalDate Tuesday December 5 2017 32549 PM

Hello Jackie ndash thank you for the webinar today concerning the proposed Overall DisadvantagedBusiness Enterprise Goal for the Federal Highway Administration I understanding the DisparityStudy much better now and checked the document you mentioned on the WSDOT website Pacific County is located in the Southwest corner of the State of Washington The tip of the LongBeach Peninsula would be 2 frac12 hours from Interstate 5 Our federal work primarily includes strictlyoverlay projects with 12 or fewer items of work included in the contract When bidding a project(our contracts are usually less than $500000) we sometimes received a single bid from the process Due to our proximity and the small cost for the work it is difficult to entice DBE participation Thereare simply no items of work that can be performed Having a mandatory DBE goal placed upon theproject in a rural area simply to meet the disparity guidelines will only increase the cost of theproject We feel the goals should be set in balance with the cost of the project and the items of work and notsimply directed to meet the overall goal

Karen BannishSenior Engineering TechnicianPacific County Department of Public Works211 North Commercial StreetRaymond WA 98577(360) 875-9368

From Dawn EgbertTo Bayne JackieSubject DBE Program Disparity StudyDate Tuesday December 5 2017 23825 PM

Hi JackieThank you for the great information on the call today You talked about the small works rosterbriefly We had a conversation in our office today about small contractors who are signed up on thePort of Vancouverrsquos small works roster Our team has had opportunity to talk to some of thecompanies on our roster who are women owned or minority owned businesses but they arenrsquotsigned up as a DBE firm When asked about that theyrsquove mentioned that they donrsquot want to fill outthe additional paperwork required to obtain the certification as a DBE As for the DBE goal at 19 it doesnrsquot seem to present an issue for the majority of our projects ndashespecially those where we would apply FHWA funds if granted However if we did happen to have aproject that didnrsquot include classifications of work where DBE certified participants are availablewould there still be an exception or a good faith efforts clause Thanks again for your time Dawn EgbertProcurement Services Manager3103 NW Lower River Road Vancouver WA 98660Direct 3609921102 | Cell 360448-9867 | Main 3606933611 | Fax 360735-1565degbertportvanusacom | wwwportvanusacom | available port properties Leadership | Stewardship | Partnership

From Feist MarleneTo WSDOT Disparity StudyCc Simmons Scott M Twohig KyleSubject Disparity Study Comments from City of SpokaneDate Friday December 15 2017 52226 PMAttachments image010png

image011pngimage012png

December 15 2017 Jackie BaynePolicy amp Reporting ManagerOffice of Equal OpportunityWashington State Department of TransportationPO Box 47314Olympia WA 98504-7314 RE Proposed DBE Contracting Goal for Highway Projects Dear Ms Bayne The City of Spokane would like to provide comments related to proposed DisadvantagedBusiness Enterprise Goal for Federal Highway Administration (FHWA) contracts by theWashington State Department of Transportation (WSDOT) Office of Equal Opportunity Manyof our projects receive funding from FHWA and as such the proposed new goals areapplicable to City work The City is supportive of the programrsquos purposemdashldquoto create a level playing field for firmsowned and operated by disadvantaged individuals wanting to participate in federally assistedhighway transit or aviation programsrdquo However the City is concerned about the ability to achieve the proposed utilization rate of upto 19 percent for DBEs in Eastern Washington considering the low number of DBEs in ourregion and the record construction under way in the City and in our region WSDOTrsquos DBE Program Disparity Study notes ldquoContractors in Eastern Washington repeatedlyreported that the goals on projects in their area are too highrdquo The Inland NorthwestAssociated General Contractors group notes that only about 12 DBEs in construction fields areavailable in the greater Spokane area Meanwhile the City has performed record construction in each of the last three years withproject totals hovering around $100 million Our City work has been bolstered by anaggressive program to improve water quality in the Spokane River Our local school districtsand our neighboring jurisdictions also have aggressive construction programs right now

Additionally we expect WSDOTrsquos work in this region to accelerate as North Spokane Corridor(NSC) construction proceeds At times our area is reaching the limits overall of our contractingcommunity the City has worked to release its projects in the first quarter of the year as muchas possible to lock in contractors and receive better pricing The capacity of existing DBEs in our region simply cannot meet that current high demand Some DBE firms are tempted to agree to more work in these times but we have found that insome cases DBEs have stretched themselves too thin On two recent City projects generalcontractors were unable to meet DBE goals as a result of DBE firms that couldnrsquot fulfill theircommitments for providing personnel or equipment It also seems implausible to expect DBEs from the West Side to mobilize teams to work on Cityof Spokane projects in large numbers In fact the Disparity Studyrsquos author responded at arecent meeting on this topic that a DBE from the West Side only very rarely completes workon the East Side of the state We would also be concerned about moving the good-paying jobs that construction providesoutside of our region The Cityrsquos median household income is $44350 considerably lower than theState of Washington MHI of $64129 and the Seattle MHI of $77351 Our leaders are working tocreate good-paying jobs for our citizens not export them to an already wealthier part of the state Additionally these projects are also funded with local dollars and our citizens expect their money toput their neighbors to work With the above considered the City is seeking

middot DBE goals for the 2018-2020 compliance period for Eastern Washington that arereflective of the current availability of DBE firms in our region

middot The re-inclusion of non-minority women owned DBEs in achieving DBE goals InSpokane non-minority women owned DBEs make up the majority of the availableDBEs And current information shows that women in Spokane overall still lag behindmen in opportunities and wages The Cityrsquos own ldquoGender and Racial Equityrdquo reportfrom 2016 noted that overall working women earned 783 percent of the earnings ofworking men in 2014 down from 827 percent in 2009 We need to lift up all women

middot The development of WSDOT programs to encourage the growth of existing andnew DBEs who can be used on street and highway projects We are encouraged by theproposed mentorproteacutegeacute program to increase the number and capacity of DBEs inEastern Washington Programs that address other barriers such as assistance withcompleting documentation or access to bonding capacity also could aid growth ofDBEs

middot The ability for WSDOT to adjust goals on a project if a selected DBE is unable tocomplete its commitments on a project This would help enable our contractors totake a chance on a new or inexperienced DBE to complete work

middot Recognition of local programs that strive to increase diversity in the work force Forexample the City operates a robust apprenticeship program that requires 15 percentof the labor hours on public works jobs greater than $600000 to be performed byapprentices The apprentice programs in our region are stepping up recruitmentefforts and are specifically seeking to recruit more youth women and minorities intoapprentice slots

As we seek to achieve the goal of increasing participation in street and highway constructionby companies owned by disadvantaged individuals we must also acknowledge that businessdevelopment and growth happens over time We must lay the groundwork now to build abase of DBEs that can help us achieve higher utilization goals over time Sincerely Marlene FeistDirector of Strategic DevelopmentPublic Works amp UtilitiesCity of Spokane

Marlene Feist | City of Spokane | Public Works Director of Strategic Development5096256505 | cell 5097109214 | mfeistspokanecityorg | spokanecityorg

From Hall MattTo WSDOT Disparity StudySubject FW WSDOT News - WSDOT seeks comments on proposed DBE contracting goal for highway projectsDate Friday December 15 2017 11956 PMAttachments WSDOT proposed DBE goal through 2020pdf

From Hall Matt Sent Friday December 15 2017 117 PMTo BayneJwsdotwagovCc Keniston Rick (KenistRwsdotwagov) MolyneKwsdotwagov SusanWilsonclarkwagovSubject WSDOT News - WSDOT seeks comments on proposed DBE contracting goal for highwayprojects Hello Jackie Please see our comments attached regarding the WSDOT proposed DBE goals Thanks for the opportunity to provide comments Matt HallClark County Public Works Washington State Department of Transportation ndash NEWSHeadquarters ndash 310 Maple Park Avenue SE ndash Olympia WA 98504-7314 ndash 360 705-7000 FOR IMMEDIATE RELEASEOct 30 2017 Contact Jackie Bayne Office of Equal Opportunity 360 705-7084

WSDOT seeks comments on proposed DBEcontracting goal for highway projectsComments accepted through Dec 15OLYMPIA ndash Contractors trade and labor organizations small and disadvantaged businessesand all others who may be interested in working with the Washington State Department ofTransportation are invited to comment on the agencyrsquos proposed Disadvantaged BusinessEnterprise goal for Federal Highway Administration contractsDBE goals for transportation projects that receive federal funds represent a percentage of thevalue of work in which minority- and women-owned businesses should participate WSDOTis proposing a 19 percent overall DBE participation goal on Federal Highway Administration-funded projects for federal fiscal years 2018 through 2020Once submitted to FHWA early next year the goal will be effective through Sept 30 2020The purpose of the DBE program is to create a level playing field for firms owned andoperated by disadvantaged individuals wanting to participate in federally assisted highwaytransit and aviation programsConnecting with communitiesWSDOT will host a series of public meetings to provide opportunities for individuals tocomment in person

Spokane

2 ndash 4 pm Tuesday Nov 28WSDOT Eastern Region Headquarters2714 N Mayfair St Spokane

Vancouver

2 ndash 4 pm Wednesday Nov 29WSDOT Vancouver Headquarters11018 NE 51st Circle Vancouver

Seattle

2 ndash 4 pm Thursday Dec 7WSDOT Northwest Region Headquarters15700 Dayton Ave N Shoreline

Other ways to provide commentThose who are unable to attend one of the meetings can participate in a no-cost webinar from230 ndash 430 pm Tuesday Dec 5 Registration for the webinar is required Those interested inparticipating should email DisparityStudywsdotwagovWritten comments can also be submitted by mail or emailJackie Bayne Policy amp Reporting ManagerWashington State Department of TransportationOffice of Equal OpportunityPO Box 47314Olympia WA 98504-7314DisparityStudywsdotwagovDocuments detailing the methodology used for determining the FHWA DBE goals areavailable for review at all WSDOT region headquarters offices and at the TransportationBuilding 310 Maple Park Ave SE Olympia They are also available online atwwwwsdotwagovequalopportunityWSDOT will consider all written comments received through Friday Dec 15 2017 Hyperlinks within this release

WSDOT Region offices wwwwsdotwagovContactofficelocationhtmregion

WSDOT keeps people businesses and the economy moving by operating and improving the statestransportation systems To learn more about what were doing go to wwwwsdotwagovnews forpictures videos news and blogs Real time traffic information is available at wwwwsdotcomtraffic or bydialing 511 Americans with Disabilities Act (ADA) InformationAccommodation requests for people with disabilities can be made by contacting the WSDOTDiversityADA Affairs team at wsdotadawsdotwagov or by calling toll-free 855-362-4ADA (4232)Persons who are deaf or hard of hearing may make a request by calling the Washington State Relay at711 Title VI Statement to Public It is WSDOTrsquos policy to assure that no person shall on the grounds ofrace color national origin or sex as provided by Title VI of the Civil Rights Act of 1964 be excluded fromparticipation in be denied the benefits of or be otherwise discriminated against under any of its federallyfunded programs and activities Any person who believes his or her Title VI protection has been violatedmay file a complaint with WSDOTrsquos Office of Equal Opportunity For additional information regarding Title

VI complaint procedures andor information regarding our non-discrimination obligations please contactOEOrsquos Title VI Coordinator at 360-705-7090 To unsubscribe to WSDOT media releases please reply and type REMOVE in the subject line

This e-mail and related attachments and any response may be subject to public disclosure under state law

From Cochrane EmilieTo WSDOT Disparity StudyCc Eugenis Susan Cowlitz Co Public Works - Brad BastinSubject Proposed DBE GoalsDate Thursday December 14 2017 85006 AMAttachments image002png

DBE Goals - Commentspdf

Please see the attached letter with comments regarding the proposed DBE Goals Ahard copy will be sent out today

Thanks

Emilie CochraneCowlitz County Public Works1600 ndash 13th Avenue SKelso WA 98626360-577-3030 ext 6523

From Michelle WolcottTo Bayne JackieCc Robideau Christopher LSubject RE DBE Contracting Goal CommentsDate Tuesday November 7 2017 65448 AMAttachments image001png

Thank you JackieWhat a relief to know that we have been heard and are not the only small business facing thisstruggle Your email is comforting

Yes you can provide us with additional assistanceLet me introduce my boss and Senior Vice President of Red Plains Professional Chris Robideau

Chris will be your contact from here since I will be leaving the company November 17th As a WA DBE we are ldquoeligible for limited DBE Support Services (SS) funding when funds becomeavailablerdquo When will this happen And are we registered or on a list to receive fundingIs the WSDOT ICR Training a prerequisite for the funding Or just helpful knowledge

Thank you for your time Jackie I will follow through with the training

Michelle Wolcott EIT Quality Control Engineer

2103 NE 129th Street Suite 201 Vancouver WA 98686 Office (360) 448-7999 Fax (360) 258-0274

wwwred-plainscom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Monday November 6 2017 332 PMTo Michelle Wolcott ltMichelleWolcottred-plainscomgtSubject RE DBE Contracting Goal Comments

Hi Michelle

Thank you for your interest in doing business with WSDOT I apologize for the lack of informationyou have come up against in your attempts to attain access to WSDOT ICR program

As you may well know WSDOT has recently completed a state wide agency specific diversity studyAnecdotal comments submitted with the study concur with your experience Not only did somerespondents find it difficult to become prequalified they also commented that the required indirectrate of 110 percent is too low to be profitable These requirements are currently under advisementby WSDOT and new DBE program requirements are currently in the process of seeking public input

As you are an OMWBE certified DBE in Washington State you will be eligible for limited DBE SupportServices (SS) funding when these funds become available At that time funds may become availableto assist you in your struggle to attain ICR eligibility Here is a link to WSDOTrsquos Indirect Cost RateTraining httpswwwwsdotwagovAuditICRTraininghtm If you would like me to find additionaltraining or information please let me know

If I can provide additional assistance of information please let me know

Best Regards

Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Michelle Wolcott [mailtoMichelleWolcottred-plainscom] Sent Tuesday October 31 2017 835 AMTo WSDOT Disparity Study ltDisparityStudyWSDOTWAGOVgtSubject DBE Contracting Goal Comments

HelloI have been in contact with WSDOT for 6 months sharing my disparaging story of beinga small DBE unable to submit SOQs for projects requiring a WSDOT Audited IndirectCost Rate Approval We do not have an in-house accountant and our outsideaccountant has explained to get all the paperwork together for WSDOT would take 40hours of work $9000 annually We cannot justify this cost to submit on a project thatwe may not acquire We have been directed to seek financial assistance from WSDOT Federal SBA andWashington State Office for Women and Minority Owned Enterprises all of whichprovided negative responses

As a DBE business in 11 states we are supporting the 19 incentive for federallyfunded contracts but we are frustrated in the fact that we will not be one of the luckyfew to participateWe have been in business 20 years From our Vancouver Washington office our clientsare the Native American tribes across the country with all contracts federally funded This summer alone the WSDOT ICR Approval has squashed our ability to submit on twoprojects that we were perfectly qualified to performI have attached previous emails to show a sample of who I have been dealing with

Thank you

Michelle Wolcott EIT Quality Control Engineer

ltimage001pnggt

2103 NE 129th Street Suite 201 Vancouver WA 98686 Office (360) 448-7999 Fax (360) 258-0274 wwwred-plainscom

From Michelle Wolcott Sent Monday July 10 2017 954 AMTo Harvey Schatzie ltHarveySwsdotwagovgtSubject RE WSDOT Indirect Cost Rate Process

Good Morning Schatzie

This is Michelle Wolcott from Red We spoke Friday June 30th about the ICRprocess and you were very encouraging I relayed the information to my boss who ishere in Vancouver then he shared with the president bookkeeper and our accountantin Oklahoma We had FAR compliance with Oklahoma DOT in 2015 so we are noteligible for the Safe Harbor Program Our account said our timekeeping system doesnot breakdown the hours and pay in the format WSDOT wants to have it presented andto get the documents in order would take the CPA and an assistant $9000 in paidhours of work It turns out this would have to be annually The other option is to hirean outside CPA firm to do the audit for us at $20000 annually

Our president said in the past we received funding assistance from the Stateof Oklahoma to get our ICR approval Does WSDOT offer any financial assistance for small businesses to reach compliance We are also a DBE in WA I have requested the same information from WA PTAC at theVancouver Chamber of Commerce and from WA Office of Minority and Women OwnedBusiness Enterprises and they both said there was nothing but suggested to askWSDOTThank you for your helpMichelle Wolcott EIT

Hello Michelle sorry but I am not aware of any grants But I was looking at this andthere is a POC at the bottom you may try to discuss the audit issuesHollyHolly BoehmeBusiness Opportunity Specialist | 8(a) Business Development ProgramUS Small Business Administration bull Seattle District Office

Hello Michelle -

Thank you for your email Im not aware of any funding available for thispurpose but do agree its quite a bit for a DBE firm to have as an expense Mostof the firms I work with do a lot more work on the Oregon side so perhaps thereare programs available that I just havent heard of Im copying my colleagueHoly Boehme in our Seattle District Office to see if they are aware of any suchassistance

Holly might there be some small business incubators or other resources availablein WA to help a small firm with the expense of getting a WSDOT AuditedIndirect Cost Rate approval Please reply all with anything you may have

Thank you

Yuri Yoshida Dyson Business Opportunity SpecialistUS SMALL BUSINESS ADMINISTRATION Portland District OfficePhone 503-326-6692 Fax 202-292-3872 wwwsbagovor

From Troy HalbergTo Bayne JackieSubject Re DBE Goal CommentsDate Wednesday December 13 2017 35533 PM

JackieToday was another example of why the goals should not be raised There were 2 jobs which Iwas low on and did not get due to the high goals This is exactly what will happen when thegoals get raised The first job was the 9180 Anacortes Ferry Paving Northeast Electric $244924 and UDBE $318000 Second job was the 9172 SR 9 East Junction Job Northeast Electric $68503 and UDBE $76300

Does this seem like a good way to spend the tax payer money I do not see how we are tosurvive if the goals get to 21

Thanks

Troy HalbergOffice360-225-7004Cell360-931-3990Fax360-225-7001

On Thu Nov 30 2017 at 1131 AM Bayne Jackie ltBayneJwsdotwagovgt wrote

Good Morning Troy

Thank you for taking the time to provide us with your experiences with the DBE Program TheWashington State Department of Transportation takes the public involvement process veryseriously and your comments will be taken into consideration prior to a final decision regardingthe overall DBE program goal

If I can be of further assistance please let me know

Best Regards

Jackie Bayne

Policy and Reporting Manager

WSDOT Office of Equal Opportunity

Work (360) 705-7084

Cell (360) 338-5783

BayneJwsdotwagov

From Troy Halberg [mailtotroyhnellcnet] Sent Wednesday November 29 2017 144 PMTo WSDOT Disparity Study ltDisparityStudyWSDOTWAGOVgtSubject DBE Goal Comments

If these goals are to be set that high this would make us as a non DBE small contractor at amajor disadvantage With these high of goals this is like handing all of the DBE electricalcontractors every job These general contractors will have no option but to use thembecause of the goals This should not go into effect We have been low on several jobs in thepast and have not gotten them do to the goals being 18 When this goes on it puts all therest of us contractors at a disadvantage Please consider the smaller non DBE contractorsthat are looking to survive as well

Thanks

Troy Halberg

Office360-225-7004

Cell360-931-3990

Fax360-225-7001

From Daniel Seydel IITo Bayne JackieCc Key Earl daneiwashingtonorg Nadeem Ismail Mussie Tewelde (mteweldehydro2geotechcom)

graceflyrightaolcom Mary Wenner Watkinson LarrySubject Re Seydel Dan - WSDOT Disparity Study Presentation Public TestimonyDate Friday December 8 2017 30323 PM

Jackie

It was my hope that the comments would be put into record I was also hoping that you wouldnot have to be the one having to formulate responses for each clarification If that is the caseI know you are swamped and will then I just ask my comments be only part of the recordHowever if there is dedicated staff that is going to be compiling and responding to theclarification then the below questions would be the priorities of most interest

These were questions unrelated to the disparity study and hopefully should be doable

1) Do you have any reports on your outcomes from the past 5 years on DBE support servicesand specific key performance measures from previous years funding (ie how many firmsutilized what was the objectives were objectives met did outcomes meet total satisfaction ifnot why next steps what was the firms capacity before and after services were performed (iesales employees bonding if applicable insurance equipment line of credit if applicablenumbertype of customers how are they doing now etc))

2) What other changes or improvements other than allowing DBES to select their own serviceproviders and a staff change will be a part of this new program

3) Was consideration to provide the new mentor protege consultant rather than separating theactivities into support services andor technical assistance

Disparity study clarifications

1) Will WSDOT consider sponsoring legislation to support the policy changes and goalincreases to insure manditory goals wont be necessary

a) If not what measures will you grant primes to operate outside the box (ie entertain bestvalue over low bid modify responsiveness by subs to require adherence to meeting voluntarygoals developing standards around federally funded gccm and other low bid procurementsthat give powers to primes to meet objectives including but not limited to mentor protegerelationships joint ventures bond waiving techniques cash flow assistance material andequipment acquisition manufacturer development specifications that have only DBES orinclude equal number of DBES as non DBES as approved installers etc)

2) Will the disparity study consultant be available for implementation or information gatheringfrom other regions

5) Will WSDOT be hiring more diverse staff amp professionaltechnical service providers inother departments outside OEO to insure policies commitments and evaluations areperformed in manner that improves diversity that reflects the communities WSDOT serves bythoughtful and legal efforts increase participation thus creating successful outcomes includingpartnerships and collaborations

Thank you and Merry Christmas

Hi Dan

Thank you for providing such thoughtful public comments questions and testimony

Regarding your public testimony below - I do not believe I am not able to answer questions ifthey are public comments Please let me know what part of this email you would likeclarification on and what part you would like considered public testimony

I appreciate your thoughtful consideration of WSDOTrsquos implementation of our civil rightsprograms

Best Regards

Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

DIDaniel Seydel IIFyi Daniel J Seydel II Platinum Group LLC 2064060844 f) 2062999934wwwplatinumbusinessgroupcom Small Business is the Answer FREE TRAINING FORENTREPRENEURS amp JOB SEEKERS - Polish your skills or make your firm standout thanksto the EntrepreneurialThu 233pDI

Daniel Seydel IIThu 1272017 1123 AMInbox Sent ItemsShow all 7 recipientsTobaynejwsdotwagov ltBayneJwsdotwagovgtJackie

Per your request below are my questions and comments some of which were verbally sharedyesterday

Congratulations on receiving the blessing of additional technical assistance dollars andcompleting the DBE Disparity Study per your report

1) Do you have any reports on your outcomes from the past 5 years on DBE support servicesand specific key performance measures from previous years funding (ie how many firmsutilized what was the objectives were objectives met did outcomes meet total satisfaction ifnot why next steps what was the firms capacity before and after services were performed (ie

sales employees bonding if applicable insurance equipment line of credit if applicablenumbertype of customers how are they doing now etc))

2) What other changes or improvements other than allowing DBES to select their own serviceproviders and a staff change will be a part of this new program

3) Was consideration to provide the new mentor protege consultant rather than separating theactivities into support services andor technical assistance

Disparity study clarifications andor comments

1) Will WSDOT consider sponsoring legislation to support the policy changes and goalincreases to insure manditory goals wont be necessary

a) If not what measures will you grant primes to operate outside the box (ie entertain bestvalue over low bid modify responsiveness by subs to require adherence to meeting voluntarygoals developing standards around federally funded gccm and other low bid procurementsthat give powers to primes to meet objectives including but not limited to mentor protegerelationships joint ventures bond waiving techniques cash flow assistance material andequipment acquisition manufacturer development specifications that have only DBES orinclude equal number of DBES as non DBES as approved installers etc)

2) Will the disparity study consultant be available for implementation or information gatheringfrom other regions

3) What lessons did WSDOT learn that it did not know from the other study(s)

4) What would WSDOT do different (ie scope time line process approach etc)

5) Will WSDOT be hiring more diverse staff amp professionaltechnical service providers inother departments outside OEO to insure policies commitments and evaluations areperformed in manner that improves diversity that reflects the communities WSDOT serves bythoughtful and legal efforts increase participation thus creating successful outcomes includingpartnerships and collaborations

Daniel J Seydel IIPlatinum Group LLC 2064060844f) 2062999934wwwplatinumbusinessgroupcom

Small Business is the Answer

FREE TRAINING FOR ENTREPRENEURS amp JOB SEEKERS - Polish your skills or makeyour firm standout thanks to the Entrepreneurial Institute of Washington

httpswwwyoutubecomchannelUCKL5YeVxL29HnNxqnb6hmXA

LIKE US on FaceBook if an Active Professional Development workshop provided by EIW

Construction University helps your firm or has benefited you

httpswwwfacebookcomEIWashingtonref=hl

From Bayne Jackie ltBayneJwsdotwagovgtSent Friday December 8 2017 10139 PMTo Daniel Seydel IICc Key Earl daneiwashingtonorg Nadeem Ismail Mussie Tewelde(mteweldehydro2geotechcom) graceflyrightaolcom Mary Wenner Watkinson LarrySubject RE Seydel Dan - WSDOT Disparity Study Presentation Public Testimony Hi Dan Thank you for providing such thoughtful public comments questions and testimony Regarding your public testimony below - I do not believe I am not able to answer questions if theyare public comments Please let me know what part of this email you would like clarification on andwhat part you would like considered public testimony I appreciate your thoughtful consideration of WSDOTrsquos implementation of our civil rights programs Best Regards Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov From Daniel Seydel II [mailtodanplatinumbusinessgroupcom] Sent Thursday December 7 2017 1123 AMTo Bayne Jackie ltBayneJwsdotwagovgtCc Key Earl ltKeyEwsdotwagovgt daneiwashingtonorg Nadeem Ismailltnipaintingearthlinknetgt Mussie Tewelde (mteweldehydro2geotechcom)ltmteweldehydro2geotechcomgt graceflyrightaolcom Mary Wennerltmwenn0108yahoocomgtSubject Seydel Dan - WSDOT Disparity Study Presentation Public Testimony Jackie

Per your request below are my questions and comments some of which were verbally sharedyesterday

Congratulations on receiving the blessing of additional technical assistance dollars andcompleting the DBE Disparity Study per your report

1) Do you have any reports on your outcomes from the past 5 years on DBE support servicesand specific key performance measures from previous years funding (ie how many firmsutilized what was the objectives were objectives met did outcomes meet total satisfaction ifnot why next steps what was the firms capacity before and after services were performed (iesales employees bonding if applicable insurance equipment line of credit if applicablenumbertype of customers how are they doing now etc))

2) What other changes or improvements other than allowing DBES to select their own serviceproviders and a staff change will be a part of this new program

3) Was consideration to provide the new mentor protege consultant rather than separating theactivities into support services andor technical assistance

Disparity study clarifications andor comments

1) Will WSDOT consider sponsoring legislation to support the policy changes and goalincreases to insure manditory goals wont be necessary

a) If not what measures will you grant primes to operate outside the box (ie entertain bestvalue over low bid modify responsiveness by subs to require adherence to meeting voluntarygoals developing standards around federally funded gccm and other low bid procurementsthat give powers to primes to meet objectives including but not limited to mentor protegerelationships joint ventures bond waiving techniques cash flow assistance material andequipment acquisition manufacturer development specifications that have only DBES orinclude equal number of DBES as non DBES as approved installers etc)

2) Will the disparity study consultant be available for implementation or information gatheringfrom other regions

3) What lessons did WSDOT learn that it did not know from the other study(s)

4) What would WSDOT do different (ie scope time line process approach etc)

5) Will WSDOT be hiring more diverse staff amp professionaltechnical service providers inother departments outside OEO to insure policies commitments and evaluations areperformed in manner that improves diversity that reflects the communities WSDOT serves bythoughtful and legal efforts increase participation thus creating successful outcomes includingpartnerships and collaborations

Thank you for your hard work

Daniel J Seydel IIPlatinum Group LLC2064060844f) 2062999934wwwplatinumbusinessgroupcom

Small Business is the Answer

FREE TRAINING FOR ENTREPRENEURS amp JOB SEEKERS - Polish your skills or makeyour firm standout thanks to the Entrepreneurial Institute of Washington

httpswwwyoutubecomchannelUCKL5YeVxL29HnNxqnb6hmXA

LIKE US on FaceBook if an Active Professional Development workshop provided by EIWConstruction University helps your firm or has benefited you

httpswwwfacebookcomEIWashingtonref=hl

From Erin EhlingerTo Bayne JackieSubject Support for WSDOTs proposed DBE goalDate Wednesday December 13 2017 115417 AM

I am writing to support the WSDOT recommended DBE Goal for FHWA contracts of 190 I also want to express my appreciation for the thoroughness of the WSDOT Disparity study and howthe study disclosed the disparity in WSDOT contracts that do not have a DBE or WBE goal ndash furtherreinforcing that all women-owned firms and minority owned firms face equity issues I remain concerned with the methodology required by the Code of Federal Regulations and case lawbecause of the dependence on the availability of firms in the calculation An unintendedconsequence of removing either gender or race from the goal is that many of these firms would goout of business the availability decreases and the formula then results in a smaller DBE goal Pleaselet me know how I can help influence a change to the CFR Thank you Erin Ehlinger

Erin Ehlinger PEPresident

24036 SE 47th StSammamish WA 98029erinehlingersmartcitytrafficcom425-221-0320

From Jackie EtterTo WSDOT Disparity StudySubject Why we need mandatory goalsDate Friday December 1 2017 61859 PM

As a DBE participating in bidding process I have found that regardless of the language which claims to insurethat disadvantaged business enterprises shall not be discriminated against the only way to ensure that this does nothappen is by mandating affirmative action goals Having been overlooked time and time again because of my gender when I have submitted bids that are verycompetitive with other bidders is very frustrating I have had many instances of companies using my price to getmy non DBE competitors to lower theirs The voluntary or laudatory DBE goals do nothing to ensure a level playing fieldThe only way to ensure non-discrimination is through mandatory goals

Jackie EtterWest Star Construction of Spokane

Sent from my iPhone

From Claudia HirscheyTo Key Earl Bayne JackieSubject WSDOT DBE Goal - Comment in supportDate Tuesday December 12 2017 61937 PM

Dear Earl and Jackie The WSDOT recommended DBE Goal for FHWA contracts of 190 is a small and important increasethat can further achieve equity in WSDOTFHWA contracting I am in support of the 19 DBE Goal I also want to express my appreciation for the thoroughness of the WSDOT Disparity study and howthe study disclosed the disparity in WSDOT contracts that do not have a DBE or WBE goal ndash furtherreinforcing that all women-owned firms and minority owned firms face equity issues I remain concerned with the methodology required by the Code of Federal Regulations and case lawbecause of the dependence on the availability of firms in the calculation An unintendedconsequence of removing either gender or race from the goal is that many of these firms would goout of business the availability decreases and the formula then results in a smaller DBE goal Sincerely Claudia S Hirschey PETransportation Consulting Servicesclaudiahirscheycomcastnethttphirscheytcscom2068564988 Mobile

From Nate ThomasTo WSDOT Disparity StudySubject WSDOT Proposes DBE goal of 19Date Thursday December 7 2017 42720 PM

The WSDOT should look into similar ways the Federal Gov has handled the equal opportunity forthose that fall under the DBE status and set aside specific projects for the DBErsquos and moreimportantly UDBErsquos so these companies have better chance of landing contracts Maybe a lot 10 ofthe DBE goal to set aside for only DBEs and other 9 goal met as it is done currently with COA onlarger contracts Nate ThomasSenior EstimatorD 5095688085 | C 5099941156331 North Fancher Road | Spokane WA | 99212

The information contained in this email including any attachments is confidential and may beprivileged It is intended only for the person or entity to which it is addressed and no waiver isintended by sending this email If the reader is not the intended recipient you are herebynotified that any review retransmission dissemination or other use of or taking any action inreliance upon this information is strictly prohibited If you have received this email in errorkindly notify the sender by reply email and delete the original message from any computerThank You

From Brian FujiiTo WSDOT Disparity StudySubject WSDOT propsed DBE GoalsDate Thursday December 7 2017 110638 AM

Good morning Jackie

I wanted to comment on WSDOTs proposed DBE goal to 19 I believe WSDOTs plan toincrease the overall DBE goal to 19 will provide greater opportunities for DBE contractorsin different disciplines to participate in federally funded contracts

Without the new DBE requirement and with Proposition 200 there are limited opportunitiesfor DBE contractors in disciplines different than the typical trucking flagging and rebar Inaddition there are no incentives for general contractors to go out beyond the usual truckingflagging and rebar DBE subcontractors

Increasing the DBE goals will provide opportunities for different DBE contractors in differentdisciplines to participate in WSDOT federally funded projects

Thank you for your time

RespectfullyBrian FujiiPresident Subsurface ConstructionP 2063836478F 2069604639MDBE 4M0024998

From Forman StephanieTo Bayne JackieCc Millar Roger christinenhanmailhousegov Claudia Hirschey Sarah Corbin Jiang Yingle

efaulknerenviroissuescom Diana Giraldo Kelly CheesemanSubject WTS - Disparity Study Comment LetterDate Friday December 15 2017 71020 PMAttachments 2017_Dec 15_WTSCommentLetter_WSDOT DBE Goalpdf

Dear Ms Bayne Please find our attached letter which summarizes the WTS Puget Sound Chapterrsquos support foradvancement of women in transportation and our comment letter regarding the recent DisparityStudy Please feel free to contact me if you have any questions or would like to discuss Sincerely Stephanie S Forman PEWTS Puget Sound President Transportation Project Manager

929 108th Avenue NE Suite 1300Bellevue WA 98004D 4254681548 M 2062291745stephanieformanhdrinccom

December 15 2017

Jackie Bayne Policy and Reporting Manager

Office of Equal Opportunity

Washington State Department of Transportation

PO Box 47314

Olympia WA 98504-7314

Dear Ms Bayne

On behalf of the Puget Sound Chapter of Womenrsquos Transportation Seminar (WTS) we would

like to thank the Washington State Department of Transportation for presenting to our

organization the DBE Disparity Study results We very much appreciated the presentation by Earl

Key Director of WSDOTrsquos Office of Equal Opportunity Teresa Berntsen (Director Office of Minority

and Womens Business Enterprises) as well as Leslie Jones (Director Sound Transit Office of Small

Business Development and Labor Compliance)

Following a review of the WSDOT Disparity Study and as a result of consultation with WTS

International we would like to provide WSDOT with our comments for your consideration

As you know WTS is an organization focused exclusively on attracting retaining and advancing

women in transportation By the year 2018 there will be thousands of vacancies in the

transportation industry for qualified professionals and while women account for more than half of

the worldrsquos workforce they are a very small minority in transportation disciplines

We are pleased that the outcome of the 2017 Disparity Study that recognizes the on-going barriers

for DBEs including women-owned businesses in transportation The WSDOT recommended DBE

Goal of 190 is a small and important increase that can further achieve equity in WSDOTFHWA

contracting We are also pleased that the 2017 Disparity Study has documented the disparity in

WSDOT contracts that do not have a DBE or WBE goal ndash further reinforcing that all women-owned

firms and minority owned firms face equity issues We are encouraged that the WSDOT has asked

FHWA to rescind the 2016 waiver

While WTSrsquo mission is specific to the advancement of women we are a race-neutral organization To

this end we are also deeply concerned about the underutilization of minority owned firms There is

no equity or ldquofair playing fieldrdquo without equity for all gender and races We remained concerned with

the methodology required by the Code of Federal Regulations and case law because of the

dependence on the availability of firms in the calculation An unintended consequence of removing

either gender or race from the goal is that many of these firms would go out of business the

availability decreases and the formula then results in a smaller DBE goal This consequence is

contrary to our mission

We look forward to our continued participation in WSDOTrsquos DBE advisory group we are anticipating

notice that the 2016 waiver has been rescinded and how we can work together to continue

advancing minority and women-owned firms in the transportation field

Sincerely

WTS Puget Sound Chapter

Stephanie Forman

President

C Roger Millar Secretary WSDOT

C Representative Adam Smith 9th Congressional District Washington co Christine Nhan

WTS Puget Sound Chapter

PO Box 3461

Bellevue Washington 98009

From Dave Gent - WAPATo Bayne JackieCc Tom GaetzSubject WAPA Public Comments - RE WSDOT FHWA Disadvantaged Business Enterprise Proposed GoalDate Friday December 15 2017 14119 PMAttachments 12152017 DBE Proposed Goal - WAPA Public Comments Letterpdf

Good afternoon Jackie Please find attached WAPArsquos ldquofor the public recordrdquo comments with respect to WSDOTrsquos proposedDBE Goals FHWA funded work I assume that the Master DBE Directory was not sent to you this week so as a result we were notable to review the directory before the close of the public comment period That fact is noted withinour comment letter Thank you for your efforts Have a good weekend

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Friday December 8 2017 1219 PMTo Dave Gent - WAPA ltdavegentasphaltwacomgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hello Dave WSDOT did not take possession of this directory as part of our review process We will provide youwith the records without submitting a formal request However we need to get them from theconsultant first I will hopefully have them to provide next week I will keep you updated on therequest Have a nice weekend Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal Opportunity

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

December 15 2017

Jackie Bayne Policy Manager WSDOT Office of Equal Opportunity Delivered via e-mail to BayneJwsdotwagov RE Public Comment (as requested) to Proposed Overall DBE Goal for the FHWA (2018 ndash 2020) Ms Bayne Thank you for your presentation via webinar on December 5 2017 outlining WSDOTrsquos evaluation process used to determine the proposed overall DBE goal for the FHWA Thank you also for the Colette Holt amp Associates (CHA) DBE Advisory Group presentation made on September 14 2017 Both presentations helped to distill the findings of the 2017 Disparity Study produced by CHA In response to Earl Keyrsquos initial informal request to comment on the proposed overall DBE goal made during the DBE Advisory Committee teleconference held on October 12th we provided a list of reasons that we believe justify a lower DBE goal than is now being proposed Our initial response to Mr Keyrsquos request did not serve to influence WSDOT and the current proposed goal remains at 190 The arguments provided on October 12th against the significant increase in the proposed DBE goal (versus the previous goal and recent historic DBE participation) are repeated and supplemented below and will serve as the Asphalt Pavement Associationrsquos (WAPArsquos) official public comments

In concert with WSDOT and the OWMBE WAPA and the construction firms that WAPA represents have demonstrated a commitment to the principals of equal opportunity for all ldquoready willing and ablerdquo firms for the entire history that our DBE program has been in place WAPA has continuously demonstrated its commitment to the goals of the DBE program and for increasing the representation of disadvantaged groups within our industry as both workers and owners of firms Please recognize that WAPArsquos oversight and critique of the DBE program has always attempted to balance the principals of fair and open competition with the practical aspects of the low bid compressed schedule high performance standards demanded within the WSDOT marketplace Our comments below are meant to enhance WSDOTrsquos and OWMBErsquos understanding of the market and to hopefully have WSDOT fully consider all of the dynamics that are at play when proposing its Triennial DBE goal for FHWA projects Current DBE Capacity vs Historically Robust Market In advocating for a realistic and defensible DBE goal it has always been WAPArsquos position that it is paramount that the realities of the marketplace and true certified DBE subcontracting capacity should be a primary standard While a ldquostretchrdquo goal may appear to be progressive on its face it comes with consequences for all of the parties involved in the WSDOT federal aid contracting arena To balance the dynamics of the WSDOT contracting system the DBE goal should be tempered with the realities of the market and with a true measure of the underlying effectiveness of the DBE support services available to contractors

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 2 of 6 The first point of fact that has not been given any apparent consideration by WSDOT in its evaluation of the current capacity of certified DBErsquos is that there is an historically robust workload scheduled to be performed in the 2017 through 2022 time-frame particularly in the Puget Sound ldquoEverett to Olympiardquo corridor By WSDOTrsquos own estimates (see Attachment A) public works construction project starts in the 2018 to 2022 time-frame in this region will exceed $333 billion (B) counting the work projected from just five public entities WSDOT will be taking a decidedly ldquoback seatrdquo role during this period to Sound Transit which will have construction project starts of $226B vs WSDOTrsquos projected volume of $67B WSDOTrsquos summary publication titled Washington State Department of Transportations Proposed Federal Highway Administration Triennium Disadvantaged Business Enterprise Goal Federal Fiscal Years 2018-2020 states correctly that ldquoIncluded among the types of evidence that must be considered are the current capacity of DBEs to perform work on WSDOTrsquos federally-assisted contracts as measured by the volume of work DBEs have performed in recent yearshelliprdquo (Step Two Adjustment discussion) With the Sound Transit program being over 300 larger than the total WSDOT program in this region a sober assessment of true certified DBE capacity in the next three years needs to be considered by WSDOT If the huge construction boom over the next five years does not prompt a Step Two Adjustment then it becomes obvious that the realities of the market are being ignored by WSDOT for DBE goal setting Put another way if the 2018 through 2022 level of contracting activity does not warrant a goal adjustment what will DBE Access Barriers Not Yet Addressed The CHA 2017 Disparity Study points out multiple recommendations in Section VII that impact DBE participation and access to the market Assessments relating to those impacts and the state of maturity in addressing the CHA recommendations should be considered when assessing the DBE goal Many of the CHA recommendation have not been adequately addressed at this point in time Some of the prime examples are listed below Increase Certification and Expertise ndash The Disparity Study as explained to us includes all minority- (MBE)

and women-owned (WBE) firms that could be readily identified that perform work within Washington State and that perform work within the NAICS code framework CHA developed to cover WSDOT project work During the various presentations relating to the Disparity Study WSDOT representatives said that outreach to currently non-certified MBE amp WBE firms has increased and that WSDOT aspires to bolster its list of certified firms in the future but this effort is just beginning and the success of the effort needs to be means tested against the broader population of MBE amp WBE firms included in the CHA base line evaluation As the Disparity Study uses a much broader population of MBE WBE contractors to arrive at its conclusions (both non-certified firms and firms too large for certification) it follows that the calculated DBE proposed goal is overstated to include capacity that does not currently exist within WSDOTrsquos certified DBE framework Unless OMWBE is experiencing sudden and unprecedented success in recruiting new MBEWBE firms the DBE goal should be adjusted downward to recognize that the ldquoready willing and ablerdquo contractors that WSDOT has certified is only a subset of the total MBEWBE contracting population used in the Disparity Study evaluation

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 3 of 6

Until the promised WSDOT outreach registration efforts result in a substantial increase in available certified DBE firms it is premature to count the entire population of minority- and women-owned contractors as available to participate in WSDOT contracting It is unreasonable for WSDOT to project availability capacity using the entire MBEWBE population when only its currently truncated list of certified firms is acceptable to count toward the DBE goal

A corollary to the Increase Certification and Expertise discussion above is that the calculation of the Base Figure evidently includes the broadest practical population of MBE and WBE firms identifiable (without a review of the CHA Master DBE Directory which has not been supplied prior to the close of the public comment period the scope of the directory cannot be ascertained) If this directory includes a large population of MBEWBE firms that are not certified or are too large to be certified then the Base Figure calculation should be adjusted to reflect that certified DBE firms are a fraction of the total MBEWBE firms used to arrive at the 19 suggested DBE goal With respect to the CHA Master Directory it is our understanding the WSDOT was not given the directory as part of its evaluation of the Disparity Study and it follows that it did not evaluate the proposed DBE goal in the context of the CHA Master DBE Directory In our opinion an informed decision on adjusting the CHA baseline goal calculation can only be done after an extensive evaluation of the CHA Master DBE Directory If this has not been done WSDOT has not exercised due diligence in evaluating the context and underpinnings of the CHA Disparity Study and a certified DBE Triennium goal proposal to the FHWA is premature Increase Contract ldquoUnbundlingrdquo ndash If this proposed strategy (suggested by the CHA Study) is undertaken

certified DBE Subcontractors currently available will be engaged as Prime Contractors and the value of their prime contracts will bolster the overall percentage of certified DBE contracting but a systematic effort and strategy to ldquounbundlerdquo has not been articulated by WSDOT The key question of how this effort can be accomplished without increased cost to the taxpayers and increased inconvenience for the traveling public As noted in the CHA study (page 129 final paragraph) ldquoUnbundling must be conducted however within the constraints of the need to ensure efficiency and limit cost to the taxpayersrdquo As of this writing no overarching strategy for further unbundling with proper accountability has been articulated by WSDOT to the DBE Advisory Group

Review Insurance and Experience Requirements ndash Impediments to certified DBE participation due to

necessary insurance and experience standards cannot be solved by the prime contracting community Unless and until WSDOT puts together programs to address the burden of the substantial risks shouldered by Prime Contractors on WSDOT contracts barriers for streamlined utilization of certified DBE firms will continue to exist These market driven barriers will continue to dampen the availability of certified DBE Subcontractors that are able to perform within WSDOTrsquos strict criteria without unduly transferring risk to the Prime Contractor

Better Partnering to Overcome DBE Failures to Perform ndash Prime Contractors are held fully responsible to maintain the project schedule and are subject to project liquidated damages even when they may be struggling to deal with Subcontractor performance issues It is well-established that replacing a certified ldquocondition of awardrdquo (COA) DBE Subcontractor is very onerous and likely very costly to the Prime Contractor Unfortunately the imposition of strict and often counter-productive commercially useful function (CUF) rules often compound this issue as Prime Contractors cannot help COA DBE Subcontractors work through capacity expertise or time-related issues that impact timely performance

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 4 of 6

WSDOT needs to be a much better partner in the process of dealing with under-performing or non-performing certified DBE Subcontractors The current standard operational procedure places all of the exposure for non-performance onto the Prime WSDOT does not have an equitable system to account for non-performing or under-performing certified DBE Subcontractors hired as a condition of award (COA)

Performance Information and Training ndash Commercially useful function rules (CUF) and the lack of clear benchmark definitions for good faith effort (GFE) standards remain barriers for improving accountability within the DBE system and in turn lead to distorted DBE participation rates These items remain amorphous due to lack of training or lack of historic information Chronic uncertainty exists regarding both of these items Until WSDOT changes and improves its approach to provide transparency and certainty for both the prime bidding amp subcontracting parties true certified DBE capacity will continue to be masked and the resultant higher subcontracting costs associated with a distorted marketplace will continue to be hidden

WAPA respectfully suggests that simply adding an ldquoEstimated DBE Subcontract Premiumrdquo line to the current DBE bid forms would help to establish benchmarks that could begin to be used to ldquomeans testrdquo good faith efforts If this information had been gathered over the last 20 years of the DBE program meaningful GFE standards could have been developed and could be in place today

An in-depth review of CUF standards would also provide clarity For instance it is unclear why force account items performed by certified DBEs are currently counted at only 50 of the value of the work How was this benchmark established Has it been reviewed since imposed Did it ldquosolverdquo whatever inequity WSDOT was trying to address Better clarity may lead to more expanded opportunities for certified DBE Subcontractors

Enhanced Supportive Services and Business Development Programs ndash Unless and until stronger programs of these types are shown to be effective in boosting certified DBE business development increased DBE participation due to stronger business acumen should not be relied upon when setting the new DBE goal

Does OMWBE have a reasonable expectation that future plans for enhanced and expanded programs will be more successful than those employed in the past Assuming that certified DBE Subcontractors will be better prepared to deal with the WSDOT contracting environment than in the past should not be relied upon to boost DBE participation goals Especially troubling were the multiple references within the CHA report highlighting that DBEs believe that the staff at OMWBE lack a deep knowledge about the highway construction industry (eg Study page 129 2nd paragraph) Does OMWBE have a path forward that will address this issue and thus improve supportive services impacts

Develop a Bonding and Financing Program for SBEs ndash This is completely outside of the prime contracting

communityrsquos scope of influence WSDOT must find a way to institute changes that both protect the taxpayer and help increase certified DBE bonding capacity and access to financing ndash very large hurtles To assume that these hurtles can effectively be overcome within the 2018 ndash 2020 time frame when they have been chromic issues for the past 20 plus years of DBE program development is not rational

A helpful innovation would be for WSDOT to underwrite performance and payment bonds for certified DBE firms or to create promote a system that helps certified DBE firms obtain private bonding Bridging the gap to address capital access and performance risks (bonding) must be championed by WSDOT

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 5 of 6

Base Figure Adjustment to Address Available Subcontract Volume and DBE Prime Contracts It is a fact that mid- to large-sized MBEWBE firms that compete both as Prime Contractors and as Subcontractors are not eligible to be OMWBE certified DBEs Further the current amount of contract unbundling for greater DBE access to WSDOT prime contracting (see below) accounts for a very low dollar volume of prime contracts performed by certified DBEs Finally by specification (WSDOT standard specification 1-081) Prime Contractors are obligated to perform 30 of the total volume of the work (less specialty work) or stated another way a maximum of 70 of the dollar volume on WSDOT projects is typically available to award to subcontractors These market dynamics are NOT addressed in the Disparity Study A responsible DBE goal made absent of these facts should not be implemented A reasonable adjustment to the proposed 19 DBE goal is presented below

bull The percent of WSDOT prime contracts awarded to certified DBE firms is likely less than 5 by total WSDOT

contract volume Assuming this approximation is valid (likely very conservative) then the amount of WSDOT contract work available to certified DBE firms via subcontracting should be adjusted to account for the factors outlined above The Base Figure (19) should be adjusted to recognize that a 70 maximum subcontractor participation is available (in the numerator) and to account for the assumed 5 certified DBE prime contracts in the denominator Reasonable Base Figure Adjustment 19 (proposed) x 70 subcontracts available divide 95 of Non-Certified DBEs as Prime Contract Volume = 190 x 0737 = 140 adjusted goal This is an adjustment based on the practical dynamics of the WSDOT contracting system and it represents a more realistic look at the true subcontract volume that is available for Prime Contractors to award to certified DBE firms

Conclusions

Until the items listed above are addressed and in place it is not reasonable to believe that DBE goals can be increased by nearly 163 (from 117 to 190) When the projected robust public works contracting market is appropriately considered the true availability of certified DBE Subcontractors for WSDOT contracts will be truncated due to demand across all public works sectors With multiple strong public works programs competing for a limited population of certified DBEs the ability to meet increased WSDOT DBE goals will be severely challenged Without very clear concise and transparent good faith effort rules the ability to address DBE goals that greatly overestimate true near term certified DBE capacity will result in non-attainment bid day chaos failures to perform andor rapidly increased pricing

The clear conclusion is that at this point in time under the current circumstances without effectively instituted new programs rules procedures that could enhance the certified DBE programrsquos overall effectiveness we believe that the DBE goal should remain at or near 12 As OMWBE documents and demonstrates its future successes in improving access and eliminating capacity barriers only then should the DBE goal be re-evaluated and increased

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 6 of 6

In closing please remember that it is rare that the contracting community is asked our opinion with respect to the WSDOTrsquos DBE policies and so this letter is somewhat a vehicle to highlight collective concerns It is our belief that the majority of the Prime Contractors in Washington state support the objective of creating a level playing field for ready willing and able DBEs

If the level playing field is not yet possible in the absence of the DBE program then the key is to set realistic goals that recognize reflect and address the hard realities and market dynamics imposed by WSDOTrsquos bedrock environment of awarding contracts to the lowest cost responsible and responsive Contractor

Respectfully submitted Washington Asphalt Pavement Association

David Gent Tom Gaetz Executive Director Senior Advisor

Attachment A ndash WSDOT Central Puget Sound Public Works Contracting Projection 2018 - 2022

Con

stru

ctio

n Pr

ojec

t Sta

rts

2018

-202

2S

ound

Tra

nsit

$22

6 B

SD

OT

$08

B

Tran

sit

amp O

ther

s$1

7 B

WS

DO

T$6

7 B

Por

t of

Sea

ttle

$15

B

TOTA

L$3

33

B

Source N

ov 1

9 2

017

pres

enta

tion

to W

APA

Ann

ual M

eetin

g

Attachment A

Work (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Dave Gent - WAPA [mailtodavegentasphaltwacom] Sent Thursday December 7 2017 144 PMTo Bayne Jackie ltBayneJwsdotwagovgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hi again Jackie Irsquom fine thanks and hope you are the same Interesting The Master DBE Directory is the basis for and integral to the conclusions of the DisparityStudy Is it not then part of the information needed to fully review and comment on the DisparityStudy Was it not provided by CHA to WSDOT for review We are trying to fully understand thestudy and if this directory was part of the study why would it need to be obtained by a publicrecords disclosure It should be in the public domain and not restricted from ease of access If you are sure that a public records request is needed Irsquoll start that process but we will need tonote that point of fact when we submit our public comments If you are able to reconsider please let me know Respectfully

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Thursday December 7 2017 126 PMTo Dave Gent - WAPA ltdavegentasphaltwacomgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hello Dave I hope you are doing well

That information would likely be obtained through a public disclosure request Best Regards Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Dave Gent - WAPA [mailtodavegentasphaltwacom] Sent Thursday December 7 2017 113 PMTo Bayne Jackie ltBayneJwsdotwagovgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Jackie Can you please provide an electronic file or provide a weblink for the Master DBE Directory thatColette Holt amp Associates developed for the WSDOT Disparity Study 2017 (first referred to on Page 8of the Disparity Study) I did not see a link to this Master DBE Directory within the study Thanks

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Friday October 27 2017 1118 AMTo Kenyon Wendy ltKenyonWwsdotwagovgt Adams E W ltewadamssystemsclcomgtAdekoyaAndrew ltandrewadekoyabccomgt AlyssaBalllegwagov Anindita Mitraltamitracrea-affiliatescomgt APRISeattlehotmailcom Armstrong CharlotteltCharlieAatgwagovgt Ato Apiafi Architects PLLC ltatoaatoapiaficomgt benzfanwaorgBerntsen Teresa (OMWBE) ltTeresaBomwbewagovgt Billingsley Andrealtbillinawsdotwagovgt Bramlet Erica ltEricaBramletlegwagovgt Brooks Julius

ltBrooksJwsdotwagovgt Brown Jason ltjbrownldccorpcomgt bwallacenwlaborersorgCamden Allison ltCamdenAwsdotwagovgt carlllivingstongmailcom Cerda OscarltCerdaOwsdotwagovgt Christopher Chris ltChristCwsdotwagovgt ckerneycaawagovdanplatinumbusinessgroupcom davegentasphaltwacom David BalltDavidsignsnowmillcreekcomgt Davis Khalia ltDavisKhwsdotwagovgt Davis RaShelle (GOVltrashelledavisgovwagovgt Dayton Jo ltDaytonJwsdotwagovgt ddhondtagcwacomDebbieDriverlegwagov Dennis ltdennisahlkiewitcomgt dmcleodnwlaborersorgdrart6651gmailcom Duncan Enid lthigradeincgmailcomgt EltonltEltonwashingtonstatetruckingcomgt eprincecaawagov flemosldccorpcomfmartineznwmtnmsdcorg geoffshookatkncom glovelady ltgloveladyexcelglovescomgtGrabow Katie ltkgrabowsystemsclcomgt Guilfucci Jackie ltJackieGuilfucciskanskacomgt HealyLinda ltHealyLwsdotwagovgt Higginbotham Breanne ltHigginBwsdotwagovgt HirscheyClaudia ltclaudiahirscheycomcastnetgt Holt Colette ltcoletteholtmwbelawcomgt Huff JohnltHuffJwsdotwagovgt Iniguezchawagov JacksonMaynardlegwagov Jimmy Matta(jmattaalcantarassoccom) ltjmattaalcantarassoccomgt kellywickergovwagov Key EarlltKeyEwsdotwagovgt Kirk Jon ltjkirkwhhnfscomgt Kris Purrier ltkpurrierhwageocomgtleewabuildingtradesorg lesliejonessoundtransitorg Liz Evans ltlevansagcwacomgt LopezErin lterinlopezdeswagovgt Martha Cerna ltMarthaPSLCCORGgt Martin-Arnold EdwinaltMartinEwsdotwagovgt Mary Lerdahl ltmarydbeelectricinccomgt McCarty Hannahlthannahmccartylegwagovgt Melissa L Boyles ltmelissaboylesmwbelawcomgt Metcalf KeithltMetcalKwsdotwagovgt michaelicapaawagov Michelle ltMichelleTTCC26netgt MillarRoger ltMillarRwsdotwagovgt Nakamura Jason ltjasonnakamura1-alliancecomgtNavarroLportseattleorg olliepmt-solutionscom pastorbanksesbctacomacom PatrickHughes ltphugheshughesgroupbizgt Petersen Jodi (FHWA) ltJodiPetersendotgovgtrabbottliunaorg rcarmsteadgmailcom ricemportseattleorg Riley D ltdrileylydigcomgtSeling ltSelingjpfranciscomgt sherryharrisergosynchcom Stell MellodyltStellMwsdotwagovgt terigobintulaliptribes-nsngov timwilliamfactorycom tinaterra-tdicom tkellyldccorpcom tomgaetzmsncom vcollinsacec-waorgverlenejazzmsncom Wang Albert ltWangAatgwagovgt Waugh GregltGregWMaxKuneyComgt Yates Henry ltYatesHWSDOTWAGOVgtCc Tom Gaetz lttomgaetzmsncomgt Dave Gent - WAPA ltdavegentasphaltwacomgt VanCollins ltvcollinsacec-waorggt Daniel Seydel II ltdanplatinumbusinessgroupcomgt MaynardJackson ltJacksonMaynardlegwagovgt Carl Livingston ltcarlllivingstongmailcomgt DonMcLeod ltdmcleodnwlaborersorggt JIMMY MATTA ltjimmymattamsncomgt Prince Ed(CAAA) lteprincecaawagovgt David DHondt ltddhondtagcwacomgt Irene Reyesltgloveladyexcelsupplycompanycomgt McDaniel Craig ltMcDaniCwsdotwagovgtsherryharrisergosynchcomSubject WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Good morning On Monday October 30th WSDOT will be releasing the proposed overall Federal HighwayAdministration Disadvantaged Business Enterprise goal attached for public comment throughDecember 15 2017 This overall DBE goal is based upon the recently completely DBE ProgramDisparity Study WSDOT is proposing a 19 percent overall DBE participation goal on Federal Highway

Administration-funded projects for federal fiscal years 2018 through 2020 DBE goals fortransportation projects that receive federal funds represent a percentage of the value of work inwhich minority- and women-owned businesses should participate Once finalized and submitted toFHWA early next year the goal will be effective through Sept 30 2020

The purpose of the DBE program is to create a level playing field for firms owned and operated bydisadvantaged individuals wanting to participate in federally assisted highway transit and aviationprograms The attached overall DBE goal is for FHWA funded projects WSDOT will be updating theFTA and FAA overall DBE goals in the near future

If you have any questions please contact Earl Key Director of the Office of Equal Opportunity at3607057091 or KeyEwsdotwagov Thank you Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

  • Proof-Of-Publicationpdf
    • Mediapdf
      • AGC
      • Daily Journal
      • Daily Medium
      • DBEGood
      • OMWBE
      • Seattle Medium
      • Tabor 100
      • The Chronicle
      • Tukwila
        • King County
          • Public-Comments-20180111pdf
            • 19 DBE Requirement(1)
            • AGC Comments on Proposed 10 Goad
            • Backstrom Curb amp Sidewalk
            • comments on WSDOT proposed DBE goal
            • Cowlitz County Public Works
            • DBE Contracting goals
            • DBE Goal
            • DBE Program Disparity Study
            • Disparity Study Comments from City of Spokane
            • FW_ WSDOT News - WSDOT seeks comments on propos
            • Proposed DBE Goals
            • RE_ DBE Contracting Goal Comments
            • Re_ DBE Goal Comments
            • Re_ Seydel Dan - WSDOT Disparity Study Present
            • Support for WSDOTs proposed DBE goal
            • Why we need mandatory goals
            • WSDOT DBE Goal - Comment in support
            • WSDOT Proposes DBE goal of 19
            • WSDOT propsed DBE Goals
            • WTS - Disparity Study Comment Letter

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13 $amp()amp+1313++1313++13 )

-012345678989lt=gtABCDEDFDGHDIJIKFABLDIEKLLGIFIKIgtMNFgtDGOIKGPINIQNRILGIKS=RNGFKRINIDKGTMPQU=VRONRJDGODIFRKKFJQDFNJHNGINOJWAFDGFFXGIRRDFTQWXVOKNCSKRNCCYJRNCZDOgt[N]JLDGDFIRNIDKGTYZM]VSAGJJEKGIRNEIFN[NRJJBI[G_aNGJ__bQARDGOIgtIgtRcNRRDKJdMPQU=DFNDLDGOIKN[NRJeREGIKSEKGIRNEIFIgtNIREDHYZM]JKCCNRFIKQWXFb]LNfKRDIKSIgtDFOKNC[DCCBN[NRJJ[DIgtIgtAFKSQWXNRIDEDNIDKGFABEKGIRNEIDGOOKNCFKGDGJDHDJANCMPQU=EKGIRNEIFbMPQU=DFgtKCJDGOIgtRABCDEEKLLGILIDGOFBI[GgKHLBRadgKHLBRedNGJQELBRhDGPKiNGdjNGEKAHRdNGJPgtKRCDGdRFEIDHCb]JJDIDKGNCCdIgtJNRILGI[DCCgtKFIN[BDGNRKGQELBRkSKRIgtKF[gtKENGGKINIIGJIgtLIDGOFbYKRLKRDGSKRLNIDKGNBKAIMPQU=lFRKKFJ_ac__=RDGGDNCQWXOKNCdHDFDIgtIImnn[FJKIb[NbOKHnXoANCUKRIAGDInJSNACIbgtILbYKRLKRDGSKRLNIDKGNBKAIIgtABCDEEKLLGIFFFDKGFNGJ[BDGNRdHDFDIgtIImnn[FJKIb[NbOKHnG[Fn_hn_np_n[FJKIcFiFcEKLLGIFcRKKFJcJBcEKGIRNEIDGOcOKNCcgtDOgt[NcRKfEIFbqrstuvwqxyzx|~v~vyr~|~v=lPYXX

()

WSDOT seeks comments on proposed DBE contracting goal for highway projects - Seattle MtgWSDOT seeks comments on proposed DBE contracting goal for highway projects

Comments accepted through Dec 15

OLYMPIA ndash Contractors trade and labor organizations small and disadvantaged businesses and all others who may be interested in working with the Washington State Department of Transportation are invited to comment on the agencyrsquos proposed Disadvantaged Business Enterprise goal for Federal Highway Administration contracts

DBE goals for transportation projects that receive federal funds represent a percentage of the value of work in which minority- and women-owned businesses should participate WSDOT is proposing a 19 percent overall DBE participation goal on Federal Highway Administration-funded projects for federal fiscal years 2018 through 2020

Once submitted to FHWA early next year the goal will be effective through Sept 30 2020

The purpose of the DBE program is to create a level playing field for firms owned and operated by disadvantaged individuals wanting to participate in federally assisted highway transit and aviation programs

Connecting with communities WSDOT will host a series of public meetings to provide opportunities for individuals to comment in person

Spokane meeting was held Nov 28

Vancouver meeting was held Nov 29

Seattle

2 ndash 4 pm Thursday Dec 7WSDOT Northwest Region Headquarters15700 Dayton Ave N Shoreline

Page 1 of 3WSDOT seeks comments on proposed DBE contracting goal for highway projects - Seattl

1112018httpwwwomwbewagovabouteventswsdot-seeks-comments-proposed-dbe-contracting

Date Thursday December 7 2017 - 200pm to 400pm

Other ways to provide comment Those who are unable to attend one of the meetings can participate in a no-cost webinar from 230 ndash 430 pm Tuesday Dec 5 Registration for the webinar is required Those interested in participating should email DisparityStudywsdotwagov (mailtoDisparityStudywsdotwagov)

Written comments can also be submitted by mail or email Jackie Bayne Policy amp Reporting Manager Washington State Department of Transportation Office of Equal Opportunity PO Box 47314 Olympia WA 98504-7314 DisparityStudywsdotwagov(mailtoDisparityStudywsdotwagov)

Documents detailing the methodology used for determining the FHWA DBE goals are available for review at all WSDOT region headquarters offices and at the Transportation Building 310 Maple Park Ave SE Olympia They are also available online at wwwwsdotwagovequalopportunity (httpwwwwsdotwagovequalopportunity)

WSDOT will consider all written comments received through Friday Dec 15 2017

WSDOT keeps people businesses and the economy moving by operating and improving the states transportation systems To learn more about what were doing go to wwwwsdotwagovnews (httpwwwwsdotwagovnews) for pictures videos news and blogs Real time traffic information is available at wwwwsdotcomtraffic(httpwwwwsdotcomtraffic) or by dialing 511

Americans with Disabilities Act (ADA) Information Accommodation requests for people with disabilities can be made by contacting the WSDOT DiversityADA Affairs team at wsdotadawsdotwagov (mailtowsdotadawsdotwagov) or by calling toll-free 855-362-4ADA (4232) Persons who are deaf or hard of hearing may make a request by calling the Washington State Relay at 711

Title VI Statement to Public It is WSDOTrsquos policy to assure that no person shall on the grounds of race color national origin or sex as provided by Title VI of the Civil Rights Act of 1964 be excluded from participation in be denied the benefits of or be otherwise discriminated against under any of its federally funded programs and activities Any person who believes his or her Title VI protection has been violated may file a complaint with WSDOTrsquos Office of Equal Opportunity For additional information regarding Title VI complaintprocedures andor information regarding our non-discrimination obligations please contactOEOrsquos Title VI Coordinator at 360-705-7090

Page 2 of 3WSDOT seeks comments on proposed DBE contracting goal for highway projects - Seattl

1112018httpwwwomwbewagovabouteventswsdot-seeks-comments-proposed-dbe-contracting

13 $amp()(

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01213456789729lt=gt02lt523Alt7B=Clt293D137933E7495204F2G72294Hlt5900IJKLMNOMPJQRSTUE0ltBCV41=gt72F0H9lt22B9ltlt5=V41=V4lt89BDltW1929926X0B75960027YZ[]S_ Wlt1lt4Faabcdaefg+++h09i9G3jXkAEl7H932FB9=0423j721lt4793X0C5lt323120A2942lt792gt0m0023X90=B9=9ltIn7C90opNqJpUrQss_tUq_u[QRQUvNZLrQ_t[]TtS_PQ]wxQ[ySz]|u[QTtUX0329C0i08acda~kc=F9lt22B99C71

aacc~~949lt7BB7lt3726C4ltG3401324ltB7ltj=9

13 $amp()(

(+amp13ampampampampampamp$amp -011234567

89lt=gtABCDgtEF39=GHIJK1L0M1JLNO1L040K420PJLJLQ0K5R015JKNON70220K445N04S0K10Q4P6N5KNNN0K4022J1TLNUTJ70VP5K1LN145KUJLW5KQU51T1TX0NT5KQ1JK101YZ0L17K1J[CL0KNZJL1015JKXYgtC]0L5KS5141JMJ77K1JK1T0QKMVNZLJZJN4Y5N04S0K10Q4_6N5KNNK1LZL5NY_]QJ02[JL4L02a5QTU0VG475K5N1L015JKMJK1L0M1NbY_QJ02N[JL1L0KNZJL1015JKZLJcM1N1T01LM5S[4L02[6K4NLZLNK10ZLMK10QJ[1TS026J[UJLW5KUT5MT75KJL51Vd0K4UJ7KdJUK4P6N5KNNNNTJ624Z0L15M5Z01bXYgtC5NZLJZJN5KQ0efZLMK1JSL022Y_Z0L15M5Z015JKQJ02JK4L02a5QTU0VG475K5N1L015JKd[6K44ZLJcM1N[JL[4L02[5NM02V0LNghei1TLJ6QTghghbgtKMN6P751141JaXG0L2VKj1V0LO1TQJ02U522P[[M15S1TLJ6QTZ1bkhOghghbCTZ6LZJNJ[1TY_ZLJQL075N1JML0102S2Z20V5KQ[524[JL[5L7NJUK40K4JZL014PV45N04S0K10Q45K45S54602NU0K15KQ1JZ0L15M5Z015K[4L022V0NN5N14T5QTU0VO1L0KN510K40S5015JKZLJQL07NbXYgtCU522TJN10NL5NJ[Z6P25M715KQN1JZLJS54JZZJL16K515N[JL5K45S54602N1JMJ77K15KZLNJKlZJW0KOgHmZb7bJKC6NbOAJSbgi01XYgtC0N1LKQ5JKa04n60L1LNHgoemA30V[05L1bOZJW0Kplt0KMJ6SLOgHmZb7bX4NbOAJSbgf01XYgtClt0KMJ6SLa04n60L1LNHeeheiAqeN1I5LM2Olt0KMJ6SLp0112OgHmZb7bCT6LNbOYMbo01XYgtCAJL1TUN1Q5JKa04n60L1LNHeqohhY0V1JKGSbAOTJL25Kbrstuvwxyz|v|~u|usCTJNUTJ0L6K0P21J011K4JKJ[1T715KQNM0KZ0L15M5Z015K0KJdMJN1UP5K0L[LJ7glkhHmlkhZb7bC6N40VOYMbqbQ5N1L015JK[JL1TUP5K0L5NLn65L4bCTJN5K1LN145KZ0L15M5Z015KQNTJ6247052Y5NZ0L51V164VUN4J1bU0bQJSbXL511KMJ77K1NM0K02NJPN6P75114PV7052JL7052l0MW5_0VKO9J25MVZJL15KQ30K0QLOX0NT5KQ1JK101YZ0L17K1J[CL0KNZJL1015JKOgt[[5MJ[n602gtZZJL16K51VO9bgtb_JjmokemOgt2V7Z50OXGfiqhmdokemJL705241JY5NZ0L51V164VUN4J1bU0bQJSbYJM67K1N410525KQ1T71TJ4J2JQV6N4[JL41L75K5KQ1TaXGY_QJ02N0L0S0520P2[JLLS5U01022XYgtCLQ5JKT04n60L1LNJ[[5MN0K4011TCL0KNZJL1015JK_65245KQOkeh30Z290LWGSbOgt2V7Z50bCTV0L02NJ0S0520P2JK25K01UUUbUN4J1bU0bQJSn602JZZJL16K51VbXYgtCU522MJKN54L022UL511KMJ77K1NLM5S41TLJ6QTL540VOYMbeqOgheob iexclcentpound currenGPJ611TG61TJL G4SL15N7K1N

13

$$amp(amp

)+-01-2345678897ltlt8=gt7=47AB=gtC8ADE7=877F=gt8GHG78=gtGgt=CCI7JKLMNOMNPPPQRSTUVWXYU1-XZ[]_abcdbbefeghbiebcjkh]gchbb_clmn[d opqrsssq otuv$r ow13x(v$r$ampvv(yz|nf|~knnn~dn owow13 ssw$ampvvo[dfzk]ee]ciieb]cf_]bae]_e]]n behgh_]ecbhb_aac] iexclcent poundcurrenyenbrvbarsectcopy-Z+-Z1O-ZordfXcopyordfYZZlaquocopy0not-0copy1O1shycopyordfordf01ordfregcopy-laquoXordfYK10copyX11X1Ocopyordf-XZ1deg ZX0copy-XZX1-Xordf0copyordf0copylaquoYK10copyX11deg0--XW10copylaquo-copyplusmn--Xsup2Xsup3Z-shyXcopy-microZcopy1sup3Z--0copyparaWplusmnsup2middotmicroZX0copyreg0-Xordf-+shyshyXcopy-copy-XlaquoXcopy+Lsup11sup3Zsup31Xordf0copy-XZ0shysup201ordfregcopy-laquoXordf)K10copyX11ordmcopy-XZsup3Z01Xparasup2)ordmlaquo1raquocentfrac14frac12frac34iquestAgraveAacuteAcircAtildeiquestAumlAringAacuteiquestAEligCcedilAEligfrac34AtildeiquestAEligAacuteiquestAumlAcircAacuteAgraveiquestAEligAacuteiquestAringCcedil AringEgraveAacuteEacuteAringcentAEligEcircEumlAcircCcedilIgraveEumlAacuteAacuteAgravecentfrac14frac12IacuteAacuteAgravefrac34AacuteIcircCcediliquestAEligiexclIumlAcircAacuteEumlETHEgraveNtildeOgraveOgraveEcircAacuteAEligIacuteiquestAEligfrac14AacuteAacuteyenAacuteiquestAEligCcedilAumliquestiquestAringiquestAacuteAEligAacuteiquestAEligAringAcircAacuteAtildeAringAtildeEcircAcircCcedilETHAtildeEcircAringiquestiquestAEligCcedilAtildeOacutefrac34Aacutefrac34CcedilAumliquestAEligCcedilAacute EacuteEacuteEacuteOcircOtildeEgraveOumlOcircOumlETHtimesIgravefrac12Agravefrac34AtildeiquestAEligfrac34iquestAtildeAgrave AringIgraveAacuteEgraveAringiquestEcircEumlAcircCcedilEgravefrac12CcediliquestAacute AacuteAgravefrac34AtildeiquestAEligEumliquestiquestAacutefrac34frac34frac34ETHCcedilAacuteAringAacuteiquestAEligCcedilAumlAringOslashCcediliquestAacuteOslashIgraveNtildeNtildeIgraveOgraveETHUgraveOgraveOgravefrac12AgraveAcirc AacuteAgraveCcedilAringiquestAacuteAumlAacuteEcirciquestAEligCcedil iquest iquestAringfrac34AEligAEligAacuteAtildeEcirciquestAEligAacuteCcediliquestAEligiquestiquestAcircfrac34AEligAacuteiquestAEligCcedilAacuteAacuteiquestAumliquestAacuteiquestAElig EcirciquestAacuteAgraveiquestCcedilAgravefrac34EcircEumlAacuteAEligiquestAacuteAEligiquestAacuteiquestAEligCcedilAringCcedil Ecirc AcircAEligAacuteAEligAacuteAacuteiquestAEligUacuteAumlAacuteAEligAacuteAumlAEligAacuteCcedil AacuteAgraveAcirc frac34UcirciquestAEligfrac34AgraveiquestAumlAgraveAringiquestAEligiquestAacuteEcircOcircAEligfrac34AringAEligOcircfrac34AEligAtildeAcirciquestAEligAgraveAcircAacuteiquestAumliquestAacutecentfrac14frac12iquestiquestAEligCcedilOtildeAumlAEligAacuteAacuteiquestAumliquestAacuteiquestAEligCcedil iquestAacuteiquestAEligAringiquestAEligiquestAacuteAacuteiquestAEligUumlYacute AcircAEligUacuteAumlAacuteAEligETHtimesOgraveUgraveAumlAEligAacuteCcedil iexcliquestCcedilAgravefrac34EcircAringiquestAEligiquestAacuteAacuteiquestAEligUumliexclcentYacute AcircAEligUacuteAumlAacutefrac12AgraveCcedil iquestAumlEcircOtildeOgraveETHOtildeAacuteAgraveAcircCcedilAgraveOtildeOgraveETHtimesUumlAumlAacuteETHEumlOtildeOgraveETHETHEumlAacuteAgraveAcircCcedilAgravefrac14AacuteIgraveOgraveEumlOtildeOgraveETHtimesYacutefrac12AgraveCcediliquestAEligAacuteiquestAringAEligfrac34iquestiquestUcircEcircAumlAgraveAEligCcedil AacuteAacuteAgraveAumlAringAacuteiquestAElig centfrac14frac12THORNiquestiquestAacuteEcircAacuteAcircEcircfrac12AgraveAacuteAcircEcircfrac34iquestAcircAacuteiquest AringiquestAEligiquestAacuteEcircOcircAEligfrac34AringAEligOcircfrac34AEligAtildeAcirciquestAEligAumlAtildeAEligiquestAtildeAacutefrac34UcircAElig Ecirc AcircAEligAacuteAEligAacuteAacuteiquestAEligUacuteAumlAacuteAumlAcircAringAEligAacuteAacuteiquestiquestAEligCcedilAacuteAgraveAringAacuteAgraveCcedilEcircAcirc AacuteAringiquestAEligiquestAEligCcedilAacuteAgraveAEligiexclcentCcediliquestAtilde iquestfrac34Aacutecentfrac14frac12CcediliquestAEligAgraveIumlAcircAacute iquestAumlAEligAacuteAacuteAgravefrac12AEligAacuteAacuteiquestAEligAcirciquestiquestAEligCcedilEumlIgraveETHOgraveyenUcircfrac14iquestAEligEcircAringiquestfrac12AgraveEcirciquestAtildeAEligiquestAEligAacutedegdegdegraquodeg1ordf-raquodegraquolaquoregszligXagraveKsup3sup3Z-Kcopy0-Lszligraquocentfrac14frac12frac34iquestAumlAEligiquestfrac34iquestAacuteAacuteAEligAumlAringAringAEligAacuteEumlfrac34AacuteAgraveAringAacuteiquestAacuteAgraveAacuteiquestiquestAacuteAgraveIumlAcircAEligAacuteiquestAacuteAacuteiquestAEligAumlAacuteEumlAtilde AcircAtildeAringiquestAacuteAacuteiquestAEligCcediliquestAacute iquestAEligCcedilAacuteAacuteAgraveAEligiexclcentcentiquestAacuteAacuteAEligAumlAringAringAEligAacutefrac34iquestAtildeAumlAumlAacuteAcircAEligAacuteiquestAcircCcedilIgraveETHEumlOtildeOgraveETHETHEumlAEligAgraveAcircAtildeAEligAacuteAacuteaacuteacircAumlUcirciquestEcircAEligEumlyencentatildeAEligAacuteAumlAacuteatildeAringiquestAEligAuml iquestAumlcentAgraveiquestAEligCcedilAacuteAEligfrac14AacuteAacuteAacuteAringAEligAacute frac12AEligAacuteAacuteiquestAElig iquestAuml IumlAcircAacuteAcircAEligiquestAacuteEcircaumlRSaringPREcircAringiquestOWaeligccedilegraveeacuteNRecircSaringPRAringiquestaacute)LcopyXJeumldeg1ordf-raquodegraquolaquoreg

13

$$amp(amp

)))13 +++ --------- -----+ 01234567894lt486=4gt4428050lt0A7BC3164C7D - + 13EF$ampGHH(HI-+E13 +HJ4gt2KAL62127CMN=gt4513 - OPQ R(amp++ S +TU13 OPI++ OPQF$ampGHH(F(G$ampVWWXYZZ[]

httpwwwchronlinecomnewswsdot-seeks-public-comment-on-disadvantaged-business-enterprisearticle_f5c753ea-be61-11e7-966c-972f6769d8a6html

WSDOT Seeks Public Comment on Disadvantaged Business Enterprise By The Chronicle Oct 31 2017

The Washington State Department of Transportation will be accepting public comments about the departmentrsquos proposed Disadvantaged Business Enterprise goal for federal contracts

The goal is for transportation projects receiving Federal Highway Administration funds to have 19 percent of the value of work done by minority or women-owned businesses during the 2018 through 2020 fiscal years

ldquoThe purpose of the DBE program is to create a level playing field for firms owned and operated by disadvantaged individuals wanting to participate in federally assisted highway transit and aviation programsrdquo a press release from WSDOT said

A series of public meetings will be held to discuss the goal in Spokane Vancouver and Seattle

For those who are unable to attend the in person meetings a webinar will be hosted from 230 to 430 pm Thursday Dec 5 The webinar is free but registration is required To register email DisparityStudywsdotwagov

Page 1 of 2WSDOT Seeks Public Comment on Disadvantaged Business Enterprise | News | chronlin

1112018httpwwwchronlinecomnewswsdot-seeks-public-comment-on-disadvantaged-business-

Written comments can also be submitted by mail or email to Jackie Bayne policy and reporting manager for the department of transportation at Washington State Department of Transportation Office of Equal Opportunity PO Box 47314 Olympia 98504 or by email at disparitystudywsdotwagov Comments will be considered through Dec 17 2017

More information about the goal is available at all regional offices or at the main office in Olympia located at the Transportation Building 310 Maple Park Ave SE Olympia More information can also be found online at wsdotwagovequalopportunity

Page 2 of 2WSDOT Seeks Public Comment on Disadvantaged Business Enterprise | News | chronlin

1112018httpwwwchronlinecomnewswsdot-seeks-public-comment-on-disadvantaged-business-

larr Halfway there SR 8 fish barrier removal reaches milestone New SR 26 traffic cameras available rarr

WSDOT seeks comments on proposed DBE contracting goal for highway projects

December 1 2017 | No Comments

WSDOT is seeking comments on proposed participation goals for Disadvantaged Business Enterprises on upcoming Federal Highway Administration contracts a Yakima meeting has also been added to the schedule Source WSDOT Permalink WSDOT seeks comments on proposed DBE contracting goal for highway projects

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Page 1 of 3WSDOT seeks comments on proposed DBE contracting goal for highway projects | Tukw

1112018httptukwilatowingcom20171201wsdot-seeks-comments-on-proposed-dbe-contracting

From Liz EvansTo Bayne JackieSubject AGC Comments on Proposed 10 GoadDate Tuesday December 12 2017 50314 PMAttachments WSDOT Proposed Goal - AGC Comments FINALdocx

Hi there Jackie Attached are AGCrsquos comments on WSDOTs proposed 19 goal We will also be mailing you a copy Thanks for the opportunity to comment and we hope you find it helpful Regards Liz Liz Evans CAE Northern District ManagerAGC OF WASHINGTONTel 3602238757 | wwwagcwacom JOIN US for the 2018 AGC of Washington Annual Convention amp Technology Expo Jan 26

CUsersmwillmsPicturesInland AGCLogo_RGB_Half_5in

December 12 2017

Page 5

December 12 2017

VIA EMAIL amp US MAIL

Ms Jackie Bayne Policy amp Reporting Manager

Washington State Dept of Transportation

210 Maple Park Ave SE

PO Box 47314

Olympia WA 98504

RE WSDOT Proposed FHWA Triennium Disadvantaged Business Enterprise Goal

Dear Ms Bayne

This letter summarizes the views of the Associated General Contractors of Washington and Inland Northwest Associated General Contractorsrsquo (hereafter referred to collectively as AGC) regarding the Washington State Department of Transportationrsquos (WSDOT) recently proposed FHWA Triennium Disadvantaged Business Enterprise (DBE) Goal (the ldquoProposed Goalrdquo) AGC shares WSDOTrsquos commitment to continue the promotion of DBE firms but AGC is concerned the Proposed Goal which is a significant increase from the previous goal and actual utilization may have unintended consequences and could impose significant burdens on both prime contractors and DBE contractors alike AGC requests WSDOT reconsider its Proposed Goal and adjust the Proposed Goal to account for inevitable availability and capability issues including the lack of a formal retraction of the non-minority woman owned business waiver that makes up over half of the Proposed Goal Implementing an unachievable goal will only be to the detriment of the DBE program

1 AGCrsquos Membersrsquo Interest in WSDOTrsquos Proposed Goal

Together AGC of Washington and Inland Northwest AGC represent and serve the commercial industrial and highway construction industry These professional associations of commercial contractors are comprised of more than 900 members who have joined together to enhance the performance of their industry and build a better climate for construction operators many of which are small and closely held businesses

Like WSDOT AGC is firmly committed to the principals of equal opportunity and promoting efforts to ensure minority women and veteran owned businesses are properly represented In both its political advocacy and membership programs AGC has demonstrated its commitment to increasing the representation of disadvantaged groups in the construction industry as both workers and owners of firms For AGC this is both an issue of principles and a practical one The construction industry as a whole is facing a critical shortage of workers and it is imperative that the industry attract new participants Among AGCrsquos activities demonstrating this commitment are the following

middot AGC has an ongoing ldquoContractor Exchangerdquo program through which small minority- and women-owned subcontractors are offered one-on-one networking opportunities with established general contractors

middot The AGC Education Foundation provides financial support to construction-related programs in K-12 schools and conducts outreach specifically targeted at low income disadvantaged and female students

middot More than 2500 students most from inner-city schools participate in annual AGC-sponsored Construction Career Days in King Pierce and Spokane Counties

middot AGC supports the Pre-Apprenticeship Construction Training (PACT) program at Seattle Vocational Institute This program is focused on preparing underrepresented communities to be highly qualified applicants and successful apprentices in the construction trades

middot AGC is a sponsor of the Turner School a training course for minority- and women-business owners in the construction industry

middot AGC supports the National Association of Women in Construction (NAWIC) which provides professional development and other services to its members

middot AGC routinely supports legislative efforts aimed at supporting small businesses and encouraging small business participation

middot AGC recently formed a Diversity and Inclusion Committee comprised of both prime and DBE participants The purposed of the committee is to expand opportunities for DBE members and to help AGC consider diversity in decision-making Recently AGC approved a deeply discounted introductory dues structure for certified DBE members

middot AGC is a WSDOT partner on the new mentorproteacutegeacute program

AGCrsquos experience has been that the most effective approach is to help make emerging businesses successful through outreach training and public policies that will grow their capacitymdashnot by imposing mandates without clear evidence as to the mandates feasibility

2 WSDOTrsquos Proposed Goalrsquos Impacts To The Construction Industry

WSDOTrsquos Proposed Goal is 190 The Proposed Goal is based upon the recent Collete Holt amp Associates (CHA) Disparity Study released in 2017 With respect to availability the Disparity Study reports the following weighted availability for FHWA-Funded projects

Thus the 190 goal factors in Black Hispanic Asian Native American and White Women into its availability As indicated however this 19 goal raises a number of concerns

a WSDOTrsquos 19 Proposed Goal Represents a Significant Increase Without Concrete Evidence of Available And Capable DBE Firms

First WSDOTrsquos Proposal Goal of 190 represents a significant increase as compared to actual DBE participation (141 in 2014 117 in 2015 and 151 in 2016) as well as the last FHWA proposed goal of 116 for 2014-2018 See WSDOTrsquos Proposed Goal and Interim FHWA Overall DBE Goal Methodology FFY 2014-2018 The Proposed Goal is 74 more than the last goal which represents a 638 increase and a 52 increase over the average actual utilization for 2014-2016 While Contractors were exceeding the previous 116 goal this is primarily based on the fact that WSDOT previously requested a waiver to consider non-women-owned businesses and the waiver was not granted and effective until June 2017 (meaning that for 2014-2016 women were counted towards race-conscious goals and inevitably a higher overall percentage of DBE firms were utilized)

Contractors struggle to meet present DBE goals due to the relatively low availability of experienced and certified DBE firms By increasing the goal WSDOT is understandably trying to increase the participation of underrepresented firms Drastically increasing the goals (by over 5 of actual utilization) without concrete evidence that there is sufficient availability andor capability of such firms however will have the opposite effect Notably this lack of availability and capacity of DBE firms was discussed in detail in the Disparity Study For example the CHA Disparity Study notes a number of concerns of DBE firms while technically ldquoavailablerdquo with respect to the goal percentages are unable to meet the requirements necessary to fulfill the contract including purchasing the equipment necessary having available labor and ability to meet insurance and financing requirements Thus while there may be ldquoavailablerdquo firms there is not clear evidence (and if fact evidence to the contrary) that those available firms are capable and available to perform the majority of the FHWA-Funded contracts let by WSDOT

An additional example affecting DBE capability and availability that is not factored into the CHA Disparity Study or WSDOTrsquos Proposed GOAL is DBE ability to enter into Project Labor Agreements (ldquoPLAsrdquo) WSDOT has indicated their interest in pursuing a PLA AGC Members have raised concerns based on repeated experiences that many DBE firms due to the administrative and cost impacts refuse to enter into PLAs precluding those firms from performing certain work or increasing costs Again this lack of ability (or refusal) to perform should also be factored into WSDOTrsquos Proposed Goal which is not currently the case

b The Proposed Goal Does Not Account For The Current Non-Minority Woman Owned Business Waiver Still In Place

Second despite the significant increase WSDOT does not account for the current waiver of non-minority women owned businesses that remains in place As noted in WSDOTrsquos proposal comments WSDOT previously sought and received a waiver of the regulation that White females as a group are presumptively disadvantaged This waiver was heavily criticized by many including AGC and the results of the most recent CHA Disparity Study confirmed that White females are presumptively disadvantaged and do not enjoy a level playing field for USDOT-assisted contracts Therefore the CHA Disparity Study recommends that this group be returned to the status of goal credit eligibility WSDOT has sought a recession of the waiver but has not yet to our knowledge received a rescission of the waiver Nevertheless the 19 Proposed Goal still includes White women In fact of the 19 availability percentage White women represent 103 (over half) Accordingly for WSDOT to proceed with the 19 goal WSDOT must receive the rescission of the waiver for this goal to be even remotely possible to achieve If the rescission is not received the Proposed Goal must be adjusted

C The Proposed Goal Does Not Account For Availability Differences Across The State

Third the Proposed Goal does not account for availability difference across the state Eastern Washington contractors with an even scarcer pool of available and qualified DBE firms in the area as is the case now will be forced to subcontract to Western Washington firms paying transportation and per diem premiums for such work The CHA Disparity Study again provides numerous excerpts of anecdotal evidence demonstrating that the goals in Eastern Washington are too high A few of the contractor comments on the topic are as follows

When you apply those same goals to a different geographic region a different project site for a large firm to meet those goals is difficult because theres not necessarily the expertise in parts of the project that were submitting on

Theres very few DBEs over here [in Eastern Washington] Next year theres going to be even more work over here What are we going to do with all these goals We always meet the goals like I said youve got three four DBEs over here to do all the work and then they cant perform

There are just no [minority-owned] DBEs available in eastern Washington

See CHA Disparity Study at p 54 Again these are factors that should be taken into account in developing the Proposed Goal or at the very least its application WSDOTrsquos Proposed Goal however is silent as to this significant issue

When the lack of available firms with the capacity to perform significant DBE projects is coupled with the increased goals the price of WSDOT contracts will inevitably increase to the significant detriment of Washington taxpayers and the public entities Inevitably with a lack of available qualified firms the lack of competition will become evident and small qualifying contractorsrsquo prices will increase due to supply and demand principles as they become selected for projects and less able to take on additional work These increased DBE contract values will be passed on to the public agency and taxpayers which translates into fewer dollars available for the sorely needed and promised infrastructure upgrades In addition the instance of bid protests will inevitably increase potentially delaying projects and further diverting agency resources from badly needed infrastructure upgrades to resolving unnecessary disputes or rebidding the projects altogether

Finally faced with such drastic and potentially impossible requirements if adjustments are not made contractors may focus more on demonstrating good faith efforts Both a contractor who meets the required goal and a contractor that demonstrates good faith efforts are eligible for award It is likely that the contractor relying upon good faith effortsmdashwho will have a lower price than the other contractor who sacrificed price to actually meet the goalmdashwill be selected by the public agency This outcome will erode the total percentage participation of eligible firms and would clearly be inapposite of WSDOTrsquos intentions

3 Conclusion and Request

AGCrsquos members have asserted these and multiple other concerns Implementing an increased goal across the state and all contracts without clear evidence of available DBEs capable of performing the work and meeting the project requirements will have significant and far-reaching impacts on the construction industry many of which work against the aim of the Proposed Goal itself AGC requests WSDOT reconsider its Proposed Goal of 19 and make adjustments to account for the capability of DBE firms the lack of a rescission of the non-minority waiver and the lack of available DBE firms in parts of the state This Proposed Goal and its impacts on the construction industry will be irrevocable and will be to the detriment of taxpayers It is prudent to address these adjustments before implementing the Proposed Goal

Very truly yours

David DrsquoHondtCheryl Stewart Executive Vice President AGC of WashingtonExecutive Director Inland Northwest AGC

AGC of Washington bull 410 11th Avenue SE 203 Olympia WA 98501

Inland Northwest AGC bull 4935 E Trent Avenue Spokane WA 99212

image3jpeg

image1png

image2emf

image4png

image5jpeg

From Steve SmithTo WSDOT Disparity StudyCc Bayne JackieSubject 19 DBE RequirementDate Thursday December 14 2017 31947 PMAttachments DBE List and NAICS Listingpdf

Disparity Committee I recently read in The Daily Journal of Commerce that WSDOT plans to adopt a 19 DBEstandard for all FHWA funded projects early next year Our company S amp K Painting Inc is abridge painting company which is based in and works exclusively in Oregon and Washington Ihave been the owner of this firm since 1978 when it was first established My concerns aboutthe proposed 19 DBE requirement is as follows 1 There are very few opportunities for subcontract work on bridge repaint jobs These jobsare usually limited to cleaning and painting the bridge The only other facet of the project istraffic control which is almost always 3 or less of the project total cost The traffic controldoes provide a very good subcontracting opportunity 2 The NAISC code of 238320 includes bridge painting but also includes house painting wallcovering rust proofing etc which have almost no similarities to bridge painting When thiscode is used to determine the number of available firms (DBE or otherwise) that are availablefor bridge painting project this badly skews the numbers I would suggest that bridge paintingcontractors make up less than 5 of all firms in NAISC code 238320 3 If future WSDOT bridge painting projects require a 19 DBE participation A The qualified pool of DBE subcontractors available to submit pricing on any facetother than traffic control will be very limited I reviewed a list of 19 certified DBE firms listedunder painting at the WSDOT website and only recognized one firm from past projects B The number of prime bidders and competition will fall The state will incur highercosts due to this fact C Prime bidders will be forced to subcontract unqualified contractors just to be eligiblefor contract awards This will likely reduce the quality of the finished project Thank you for considering my concerns I may not have verbalized my thoughts as well as Iwould have liked but I have been in this business for almost 40 years and truly believe what Ihave said Sincerely

Steve Smith President

SampK Painting incP O BOx 390clacKamaS OregOn 97015Phone (503) 557-5544Fax (503) 557-5566Cell (503) 260-5280Steveskpaintingcom

From Lei WuTo Bayne JackieSubject comments on WSDOT proposed DBE goalDate Thursday December 14 2017 94925 PM

To Whom It May Concern

Below is my comments

The WSDOT recommended DBE Goal for FHWA contracts of 190 is a small andimportant increase that can further achieve equity in WSDOTFHWA contracting I am insupport of the 19 DBE Goal

I also want to express my appreciation for the thoroughness of the WSDOT Disparity studyand how the study disclosed the disparity in WSDOT contracts that do not have a DBE orWBE goal ndash further reinforcing that all women-owned firms and minority owned firms faceequity issues

I remain concerned with the methodology required by the Code of Federal Regulations andcase law because of the dependence on the availability of firms in the calculation Anunintended consequence of removing either gender or race from the goal is that many of thesefirms would go out of business the availability decreases and the formula then results in asmaller DBE goal

Thanks

Lei

Lei Wu PE AICP

Principal CSL Consulting

LeiWucsl-consultingnet

(425)562-6275

From Stephanie SimpkinsTo WSDOT Disparity StudySubject DBE Contracting goalsDate Wednesday November 29 2017 20259 PM

My name is Stephanie Simpkins and I own North Star Enterprises It is a large womanowned traffic control company located in Spokane Washington My mother founded thecompany in 1984 and I have worked in this family owned business most of my life Ipurchased the business from her in 2013 and have been sole owner since then My company thrived under the Disadvantaged Business Enterprise (DBE) Programimplemented by Washington Department of Transportation and administrated by United StatesDepartment of Transportation What started as a small business with one truck and a fewemployees has grown over the years to be one of the largest traffic control companies in thestate and employee countless people every construction season It has not been an easy roadover the years being a woman in the construction industry never is and it is hard to say wherewe would be now if it werenrsquot for the assistance of the DBE program As you know in June of 2017 majority women were removed from the DBE program basedon a disparity study conducted in 2012 On March 2014 Washington Department ofTransportation requested a wavier to remove majority women from the DBE program Thishas had an immediate and drastic impact on my business and all who work for me From themoment the waiver was approved and my company could no longer be used as a condition ofaward at bid time I began losing work Most recently the 2018 North Central Region ChipSeal which we have worked on for the last 10 years This contract provides work forapproximately 40 employees for the entire construction season I have already been told byseveral contractors that with such a high UDBE goal they wont even be able to consider mefor this project This loss along with several other smaller contracts to date are painting avery dismal future for my business With all of this turmoil surrounding the future of my business I find it frustrating to say theleast that WSDOT has chopped me off at the legs by not allowing my firm to count for theCOA but can use the little participation I may still contribute to help them reach their overallstate goal How is this fair If the contractors canrsquot utilize my business than neither shouldWSDOT As far as setting future state DBE contracting goals it looks as if the bar will beraised once again all while excluding the largest subset of useable DBErdquoS To me raising theoverall state goal at this time (which is already challenging to meet) with women DBErsquosexcluded from the program seems horribly ill timed

From Karen R BannishTo Bayne JackieSubject DBE GoalDate Tuesday December 5 2017 32549 PM

Hello Jackie ndash thank you for the webinar today concerning the proposed Overall DisadvantagedBusiness Enterprise Goal for the Federal Highway Administration I understanding the DisparityStudy much better now and checked the document you mentioned on the WSDOT website Pacific County is located in the Southwest corner of the State of Washington The tip of the LongBeach Peninsula would be 2 frac12 hours from Interstate 5 Our federal work primarily includes strictlyoverlay projects with 12 or fewer items of work included in the contract When bidding a project(our contracts are usually less than $500000) we sometimes received a single bid from the process Due to our proximity and the small cost for the work it is difficult to entice DBE participation Thereare simply no items of work that can be performed Having a mandatory DBE goal placed upon theproject in a rural area simply to meet the disparity guidelines will only increase the cost of theproject We feel the goals should be set in balance with the cost of the project and the items of work and notsimply directed to meet the overall goal

Karen BannishSenior Engineering TechnicianPacific County Department of Public Works211 North Commercial StreetRaymond WA 98577(360) 875-9368

From Dawn EgbertTo Bayne JackieSubject DBE Program Disparity StudyDate Tuesday December 5 2017 23825 PM

Hi JackieThank you for the great information on the call today You talked about the small works rosterbriefly We had a conversation in our office today about small contractors who are signed up on thePort of Vancouverrsquos small works roster Our team has had opportunity to talk to some of thecompanies on our roster who are women owned or minority owned businesses but they arenrsquotsigned up as a DBE firm When asked about that theyrsquove mentioned that they donrsquot want to fill outthe additional paperwork required to obtain the certification as a DBE As for the DBE goal at 19 it doesnrsquot seem to present an issue for the majority of our projects ndashespecially those where we would apply FHWA funds if granted However if we did happen to have aproject that didnrsquot include classifications of work where DBE certified participants are availablewould there still be an exception or a good faith efforts clause Thanks again for your time Dawn EgbertProcurement Services Manager3103 NW Lower River Road Vancouver WA 98660Direct 3609921102 | Cell 360448-9867 | Main 3606933611 | Fax 360735-1565degbertportvanusacom | wwwportvanusacom | available port properties Leadership | Stewardship | Partnership

From Feist MarleneTo WSDOT Disparity StudyCc Simmons Scott M Twohig KyleSubject Disparity Study Comments from City of SpokaneDate Friday December 15 2017 52226 PMAttachments image010png

image011pngimage012png

December 15 2017 Jackie BaynePolicy amp Reporting ManagerOffice of Equal OpportunityWashington State Department of TransportationPO Box 47314Olympia WA 98504-7314 RE Proposed DBE Contracting Goal for Highway Projects Dear Ms Bayne The City of Spokane would like to provide comments related to proposed DisadvantagedBusiness Enterprise Goal for Federal Highway Administration (FHWA) contracts by theWashington State Department of Transportation (WSDOT) Office of Equal Opportunity Manyof our projects receive funding from FHWA and as such the proposed new goals areapplicable to City work The City is supportive of the programrsquos purposemdashldquoto create a level playing field for firmsowned and operated by disadvantaged individuals wanting to participate in federally assistedhighway transit or aviation programsrdquo However the City is concerned about the ability to achieve the proposed utilization rate of upto 19 percent for DBEs in Eastern Washington considering the low number of DBEs in ourregion and the record construction under way in the City and in our region WSDOTrsquos DBE Program Disparity Study notes ldquoContractors in Eastern Washington repeatedlyreported that the goals on projects in their area are too highrdquo The Inland NorthwestAssociated General Contractors group notes that only about 12 DBEs in construction fields areavailable in the greater Spokane area Meanwhile the City has performed record construction in each of the last three years withproject totals hovering around $100 million Our City work has been bolstered by anaggressive program to improve water quality in the Spokane River Our local school districtsand our neighboring jurisdictions also have aggressive construction programs right now

Additionally we expect WSDOTrsquos work in this region to accelerate as North Spokane Corridor(NSC) construction proceeds At times our area is reaching the limits overall of our contractingcommunity the City has worked to release its projects in the first quarter of the year as muchas possible to lock in contractors and receive better pricing The capacity of existing DBEs in our region simply cannot meet that current high demand Some DBE firms are tempted to agree to more work in these times but we have found that insome cases DBEs have stretched themselves too thin On two recent City projects generalcontractors were unable to meet DBE goals as a result of DBE firms that couldnrsquot fulfill theircommitments for providing personnel or equipment It also seems implausible to expect DBEs from the West Side to mobilize teams to work on Cityof Spokane projects in large numbers In fact the Disparity Studyrsquos author responded at arecent meeting on this topic that a DBE from the West Side only very rarely completes workon the East Side of the state We would also be concerned about moving the good-paying jobs that construction providesoutside of our region The Cityrsquos median household income is $44350 considerably lower than theState of Washington MHI of $64129 and the Seattle MHI of $77351 Our leaders are working tocreate good-paying jobs for our citizens not export them to an already wealthier part of the state Additionally these projects are also funded with local dollars and our citizens expect their money toput their neighbors to work With the above considered the City is seeking

middot DBE goals for the 2018-2020 compliance period for Eastern Washington that arereflective of the current availability of DBE firms in our region

middot The re-inclusion of non-minority women owned DBEs in achieving DBE goals InSpokane non-minority women owned DBEs make up the majority of the availableDBEs And current information shows that women in Spokane overall still lag behindmen in opportunities and wages The Cityrsquos own ldquoGender and Racial Equityrdquo reportfrom 2016 noted that overall working women earned 783 percent of the earnings ofworking men in 2014 down from 827 percent in 2009 We need to lift up all women

middot The development of WSDOT programs to encourage the growth of existing andnew DBEs who can be used on street and highway projects We are encouraged by theproposed mentorproteacutegeacute program to increase the number and capacity of DBEs inEastern Washington Programs that address other barriers such as assistance withcompleting documentation or access to bonding capacity also could aid growth ofDBEs

middot The ability for WSDOT to adjust goals on a project if a selected DBE is unable tocomplete its commitments on a project This would help enable our contractors totake a chance on a new or inexperienced DBE to complete work

middot Recognition of local programs that strive to increase diversity in the work force Forexample the City operates a robust apprenticeship program that requires 15 percentof the labor hours on public works jobs greater than $600000 to be performed byapprentices The apprentice programs in our region are stepping up recruitmentefforts and are specifically seeking to recruit more youth women and minorities intoapprentice slots

As we seek to achieve the goal of increasing participation in street and highway constructionby companies owned by disadvantaged individuals we must also acknowledge that businessdevelopment and growth happens over time We must lay the groundwork now to build abase of DBEs that can help us achieve higher utilization goals over time Sincerely Marlene FeistDirector of Strategic DevelopmentPublic Works amp UtilitiesCity of Spokane

Marlene Feist | City of Spokane | Public Works Director of Strategic Development5096256505 | cell 5097109214 | mfeistspokanecityorg | spokanecityorg

From Hall MattTo WSDOT Disparity StudySubject FW WSDOT News - WSDOT seeks comments on proposed DBE contracting goal for highway projectsDate Friday December 15 2017 11956 PMAttachments WSDOT proposed DBE goal through 2020pdf

From Hall Matt Sent Friday December 15 2017 117 PMTo BayneJwsdotwagovCc Keniston Rick (KenistRwsdotwagov) MolyneKwsdotwagov SusanWilsonclarkwagovSubject WSDOT News - WSDOT seeks comments on proposed DBE contracting goal for highwayprojects Hello Jackie Please see our comments attached regarding the WSDOT proposed DBE goals Thanks for the opportunity to provide comments Matt HallClark County Public Works Washington State Department of Transportation ndash NEWSHeadquarters ndash 310 Maple Park Avenue SE ndash Olympia WA 98504-7314 ndash 360 705-7000 FOR IMMEDIATE RELEASEOct 30 2017 Contact Jackie Bayne Office of Equal Opportunity 360 705-7084

WSDOT seeks comments on proposed DBEcontracting goal for highway projectsComments accepted through Dec 15OLYMPIA ndash Contractors trade and labor organizations small and disadvantaged businessesand all others who may be interested in working with the Washington State Department ofTransportation are invited to comment on the agencyrsquos proposed Disadvantaged BusinessEnterprise goal for Federal Highway Administration contractsDBE goals for transportation projects that receive federal funds represent a percentage of thevalue of work in which minority- and women-owned businesses should participate WSDOTis proposing a 19 percent overall DBE participation goal on Federal Highway Administration-funded projects for federal fiscal years 2018 through 2020Once submitted to FHWA early next year the goal will be effective through Sept 30 2020The purpose of the DBE program is to create a level playing field for firms owned andoperated by disadvantaged individuals wanting to participate in federally assisted highwaytransit and aviation programsConnecting with communitiesWSDOT will host a series of public meetings to provide opportunities for individuals tocomment in person

Spokane

2 ndash 4 pm Tuesday Nov 28WSDOT Eastern Region Headquarters2714 N Mayfair St Spokane

Vancouver

2 ndash 4 pm Wednesday Nov 29WSDOT Vancouver Headquarters11018 NE 51st Circle Vancouver

Seattle

2 ndash 4 pm Thursday Dec 7WSDOT Northwest Region Headquarters15700 Dayton Ave N Shoreline

Other ways to provide commentThose who are unable to attend one of the meetings can participate in a no-cost webinar from230 ndash 430 pm Tuesday Dec 5 Registration for the webinar is required Those interested inparticipating should email DisparityStudywsdotwagovWritten comments can also be submitted by mail or emailJackie Bayne Policy amp Reporting ManagerWashington State Department of TransportationOffice of Equal OpportunityPO Box 47314Olympia WA 98504-7314DisparityStudywsdotwagovDocuments detailing the methodology used for determining the FHWA DBE goals areavailable for review at all WSDOT region headquarters offices and at the TransportationBuilding 310 Maple Park Ave SE Olympia They are also available online atwwwwsdotwagovequalopportunityWSDOT will consider all written comments received through Friday Dec 15 2017 Hyperlinks within this release

WSDOT Region offices wwwwsdotwagovContactofficelocationhtmregion

WSDOT keeps people businesses and the economy moving by operating and improving the statestransportation systems To learn more about what were doing go to wwwwsdotwagovnews forpictures videos news and blogs Real time traffic information is available at wwwwsdotcomtraffic or bydialing 511 Americans with Disabilities Act (ADA) InformationAccommodation requests for people with disabilities can be made by contacting the WSDOTDiversityADA Affairs team at wsdotadawsdotwagov or by calling toll-free 855-362-4ADA (4232)Persons who are deaf or hard of hearing may make a request by calling the Washington State Relay at711 Title VI Statement to Public It is WSDOTrsquos policy to assure that no person shall on the grounds ofrace color national origin or sex as provided by Title VI of the Civil Rights Act of 1964 be excluded fromparticipation in be denied the benefits of or be otherwise discriminated against under any of its federallyfunded programs and activities Any person who believes his or her Title VI protection has been violatedmay file a complaint with WSDOTrsquos Office of Equal Opportunity For additional information regarding Title

VI complaint procedures andor information regarding our non-discrimination obligations please contactOEOrsquos Title VI Coordinator at 360-705-7090 To unsubscribe to WSDOT media releases please reply and type REMOVE in the subject line

This e-mail and related attachments and any response may be subject to public disclosure under state law

From Cochrane EmilieTo WSDOT Disparity StudyCc Eugenis Susan Cowlitz Co Public Works - Brad BastinSubject Proposed DBE GoalsDate Thursday December 14 2017 85006 AMAttachments image002png

DBE Goals - Commentspdf

Please see the attached letter with comments regarding the proposed DBE Goals Ahard copy will be sent out today

Thanks

Emilie CochraneCowlitz County Public Works1600 ndash 13th Avenue SKelso WA 98626360-577-3030 ext 6523

From Michelle WolcottTo Bayne JackieCc Robideau Christopher LSubject RE DBE Contracting Goal CommentsDate Tuesday November 7 2017 65448 AMAttachments image001png

Thank you JackieWhat a relief to know that we have been heard and are not the only small business facing thisstruggle Your email is comforting

Yes you can provide us with additional assistanceLet me introduce my boss and Senior Vice President of Red Plains Professional Chris Robideau

Chris will be your contact from here since I will be leaving the company November 17th As a WA DBE we are ldquoeligible for limited DBE Support Services (SS) funding when funds becomeavailablerdquo When will this happen And are we registered or on a list to receive fundingIs the WSDOT ICR Training a prerequisite for the funding Or just helpful knowledge

Thank you for your time Jackie I will follow through with the training

Michelle Wolcott EIT Quality Control Engineer

2103 NE 129th Street Suite 201 Vancouver WA 98686 Office (360) 448-7999 Fax (360) 258-0274

wwwred-plainscom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Monday November 6 2017 332 PMTo Michelle Wolcott ltMichelleWolcottred-plainscomgtSubject RE DBE Contracting Goal Comments

Hi Michelle

Thank you for your interest in doing business with WSDOT I apologize for the lack of informationyou have come up against in your attempts to attain access to WSDOT ICR program

As you may well know WSDOT has recently completed a state wide agency specific diversity studyAnecdotal comments submitted with the study concur with your experience Not only did somerespondents find it difficult to become prequalified they also commented that the required indirectrate of 110 percent is too low to be profitable These requirements are currently under advisementby WSDOT and new DBE program requirements are currently in the process of seeking public input

As you are an OMWBE certified DBE in Washington State you will be eligible for limited DBE SupportServices (SS) funding when these funds become available At that time funds may become availableto assist you in your struggle to attain ICR eligibility Here is a link to WSDOTrsquos Indirect Cost RateTraining httpswwwwsdotwagovAuditICRTraininghtm If you would like me to find additionaltraining or information please let me know

If I can provide additional assistance of information please let me know

Best Regards

Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Michelle Wolcott [mailtoMichelleWolcottred-plainscom] Sent Tuesday October 31 2017 835 AMTo WSDOT Disparity Study ltDisparityStudyWSDOTWAGOVgtSubject DBE Contracting Goal Comments

HelloI have been in contact with WSDOT for 6 months sharing my disparaging story of beinga small DBE unable to submit SOQs for projects requiring a WSDOT Audited IndirectCost Rate Approval We do not have an in-house accountant and our outsideaccountant has explained to get all the paperwork together for WSDOT would take 40hours of work $9000 annually We cannot justify this cost to submit on a project thatwe may not acquire We have been directed to seek financial assistance from WSDOT Federal SBA andWashington State Office for Women and Minority Owned Enterprises all of whichprovided negative responses

As a DBE business in 11 states we are supporting the 19 incentive for federallyfunded contracts but we are frustrated in the fact that we will not be one of the luckyfew to participateWe have been in business 20 years From our Vancouver Washington office our clientsare the Native American tribes across the country with all contracts federally funded This summer alone the WSDOT ICR Approval has squashed our ability to submit on twoprojects that we were perfectly qualified to performI have attached previous emails to show a sample of who I have been dealing with

Thank you

Michelle Wolcott EIT Quality Control Engineer

ltimage001pnggt

2103 NE 129th Street Suite 201 Vancouver WA 98686 Office (360) 448-7999 Fax (360) 258-0274 wwwred-plainscom

From Michelle Wolcott Sent Monday July 10 2017 954 AMTo Harvey Schatzie ltHarveySwsdotwagovgtSubject RE WSDOT Indirect Cost Rate Process

Good Morning Schatzie

This is Michelle Wolcott from Red We spoke Friday June 30th about the ICRprocess and you were very encouraging I relayed the information to my boss who ishere in Vancouver then he shared with the president bookkeeper and our accountantin Oklahoma We had FAR compliance with Oklahoma DOT in 2015 so we are noteligible for the Safe Harbor Program Our account said our timekeeping system doesnot breakdown the hours and pay in the format WSDOT wants to have it presented andto get the documents in order would take the CPA and an assistant $9000 in paidhours of work It turns out this would have to be annually The other option is to hirean outside CPA firm to do the audit for us at $20000 annually

Our president said in the past we received funding assistance from the Stateof Oklahoma to get our ICR approval Does WSDOT offer any financial assistance for small businesses to reach compliance We are also a DBE in WA I have requested the same information from WA PTAC at theVancouver Chamber of Commerce and from WA Office of Minority and Women OwnedBusiness Enterprises and they both said there was nothing but suggested to askWSDOTThank you for your helpMichelle Wolcott EIT

Hello Michelle sorry but I am not aware of any grants But I was looking at this andthere is a POC at the bottom you may try to discuss the audit issuesHollyHolly BoehmeBusiness Opportunity Specialist | 8(a) Business Development ProgramUS Small Business Administration bull Seattle District Office

Hello Michelle -

Thank you for your email Im not aware of any funding available for thispurpose but do agree its quite a bit for a DBE firm to have as an expense Mostof the firms I work with do a lot more work on the Oregon side so perhaps thereare programs available that I just havent heard of Im copying my colleagueHoly Boehme in our Seattle District Office to see if they are aware of any suchassistance

Holly might there be some small business incubators or other resources availablein WA to help a small firm with the expense of getting a WSDOT AuditedIndirect Cost Rate approval Please reply all with anything you may have

Thank you

Yuri Yoshida Dyson Business Opportunity SpecialistUS SMALL BUSINESS ADMINISTRATION Portland District OfficePhone 503-326-6692 Fax 202-292-3872 wwwsbagovor

From Troy HalbergTo Bayne JackieSubject Re DBE Goal CommentsDate Wednesday December 13 2017 35533 PM

JackieToday was another example of why the goals should not be raised There were 2 jobs which Iwas low on and did not get due to the high goals This is exactly what will happen when thegoals get raised The first job was the 9180 Anacortes Ferry Paving Northeast Electric $244924 and UDBE $318000 Second job was the 9172 SR 9 East Junction Job Northeast Electric $68503 and UDBE $76300

Does this seem like a good way to spend the tax payer money I do not see how we are tosurvive if the goals get to 21

Thanks

Troy HalbergOffice360-225-7004Cell360-931-3990Fax360-225-7001

On Thu Nov 30 2017 at 1131 AM Bayne Jackie ltBayneJwsdotwagovgt wrote

Good Morning Troy

Thank you for taking the time to provide us with your experiences with the DBE Program TheWashington State Department of Transportation takes the public involvement process veryseriously and your comments will be taken into consideration prior to a final decision regardingthe overall DBE program goal

If I can be of further assistance please let me know

Best Regards

Jackie Bayne

Policy and Reporting Manager

WSDOT Office of Equal Opportunity

Work (360) 705-7084

Cell (360) 338-5783

BayneJwsdotwagov

From Troy Halberg [mailtotroyhnellcnet] Sent Wednesday November 29 2017 144 PMTo WSDOT Disparity Study ltDisparityStudyWSDOTWAGOVgtSubject DBE Goal Comments

If these goals are to be set that high this would make us as a non DBE small contractor at amajor disadvantage With these high of goals this is like handing all of the DBE electricalcontractors every job These general contractors will have no option but to use thembecause of the goals This should not go into effect We have been low on several jobs in thepast and have not gotten them do to the goals being 18 When this goes on it puts all therest of us contractors at a disadvantage Please consider the smaller non DBE contractorsthat are looking to survive as well

Thanks

Troy Halberg

Office360-225-7004

Cell360-931-3990

Fax360-225-7001

From Daniel Seydel IITo Bayne JackieCc Key Earl daneiwashingtonorg Nadeem Ismail Mussie Tewelde (mteweldehydro2geotechcom)

graceflyrightaolcom Mary Wenner Watkinson LarrySubject Re Seydel Dan - WSDOT Disparity Study Presentation Public TestimonyDate Friday December 8 2017 30323 PM

Jackie

It was my hope that the comments would be put into record I was also hoping that you wouldnot have to be the one having to formulate responses for each clarification If that is the caseI know you are swamped and will then I just ask my comments be only part of the recordHowever if there is dedicated staff that is going to be compiling and responding to theclarification then the below questions would be the priorities of most interest

These were questions unrelated to the disparity study and hopefully should be doable

1) Do you have any reports on your outcomes from the past 5 years on DBE support servicesand specific key performance measures from previous years funding (ie how many firmsutilized what was the objectives were objectives met did outcomes meet total satisfaction ifnot why next steps what was the firms capacity before and after services were performed (iesales employees bonding if applicable insurance equipment line of credit if applicablenumbertype of customers how are they doing now etc))

2) What other changes or improvements other than allowing DBES to select their own serviceproviders and a staff change will be a part of this new program

3) Was consideration to provide the new mentor protege consultant rather than separating theactivities into support services andor technical assistance

Disparity study clarifications

1) Will WSDOT consider sponsoring legislation to support the policy changes and goalincreases to insure manditory goals wont be necessary

a) If not what measures will you grant primes to operate outside the box (ie entertain bestvalue over low bid modify responsiveness by subs to require adherence to meeting voluntarygoals developing standards around federally funded gccm and other low bid procurementsthat give powers to primes to meet objectives including but not limited to mentor protegerelationships joint ventures bond waiving techniques cash flow assistance material andequipment acquisition manufacturer development specifications that have only DBES orinclude equal number of DBES as non DBES as approved installers etc)

2) Will the disparity study consultant be available for implementation or information gatheringfrom other regions

5) Will WSDOT be hiring more diverse staff amp professionaltechnical service providers inother departments outside OEO to insure policies commitments and evaluations areperformed in manner that improves diversity that reflects the communities WSDOT serves bythoughtful and legal efforts increase participation thus creating successful outcomes includingpartnerships and collaborations

Thank you and Merry Christmas

Hi Dan

Thank you for providing such thoughtful public comments questions and testimony

Regarding your public testimony below - I do not believe I am not able to answer questions ifthey are public comments Please let me know what part of this email you would likeclarification on and what part you would like considered public testimony

I appreciate your thoughtful consideration of WSDOTrsquos implementation of our civil rightsprograms

Best Regards

Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

DIDaniel Seydel IIFyi Daniel J Seydel II Platinum Group LLC 2064060844 f) 2062999934wwwplatinumbusinessgroupcom Small Business is the Answer FREE TRAINING FORENTREPRENEURS amp JOB SEEKERS - Polish your skills or make your firm standout thanksto the EntrepreneurialThu 233pDI

Daniel Seydel IIThu 1272017 1123 AMInbox Sent ItemsShow all 7 recipientsTobaynejwsdotwagov ltBayneJwsdotwagovgtJackie

Per your request below are my questions and comments some of which were verbally sharedyesterday

Congratulations on receiving the blessing of additional technical assistance dollars andcompleting the DBE Disparity Study per your report

1) Do you have any reports on your outcomes from the past 5 years on DBE support servicesand specific key performance measures from previous years funding (ie how many firmsutilized what was the objectives were objectives met did outcomes meet total satisfaction ifnot why next steps what was the firms capacity before and after services were performed (ie

sales employees bonding if applicable insurance equipment line of credit if applicablenumbertype of customers how are they doing now etc))

2) What other changes or improvements other than allowing DBES to select their own serviceproviders and a staff change will be a part of this new program

3) Was consideration to provide the new mentor protege consultant rather than separating theactivities into support services andor technical assistance

Disparity study clarifications andor comments

1) Will WSDOT consider sponsoring legislation to support the policy changes and goalincreases to insure manditory goals wont be necessary

a) If not what measures will you grant primes to operate outside the box (ie entertain bestvalue over low bid modify responsiveness by subs to require adherence to meeting voluntarygoals developing standards around federally funded gccm and other low bid procurementsthat give powers to primes to meet objectives including but not limited to mentor protegerelationships joint ventures bond waiving techniques cash flow assistance material andequipment acquisition manufacturer development specifications that have only DBES orinclude equal number of DBES as non DBES as approved installers etc)

2) Will the disparity study consultant be available for implementation or information gatheringfrom other regions

3) What lessons did WSDOT learn that it did not know from the other study(s)

4) What would WSDOT do different (ie scope time line process approach etc)

5) Will WSDOT be hiring more diverse staff amp professionaltechnical service providers inother departments outside OEO to insure policies commitments and evaluations areperformed in manner that improves diversity that reflects the communities WSDOT serves bythoughtful and legal efforts increase participation thus creating successful outcomes includingpartnerships and collaborations

Daniel J Seydel IIPlatinum Group LLC 2064060844f) 2062999934wwwplatinumbusinessgroupcom

Small Business is the Answer

FREE TRAINING FOR ENTREPRENEURS amp JOB SEEKERS - Polish your skills or makeyour firm standout thanks to the Entrepreneurial Institute of Washington

httpswwwyoutubecomchannelUCKL5YeVxL29HnNxqnb6hmXA

LIKE US on FaceBook if an Active Professional Development workshop provided by EIW

Construction University helps your firm or has benefited you

httpswwwfacebookcomEIWashingtonref=hl

From Bayne Jackie ltBayneJwsdotwagovgtSent Friday December 8 2017 10139 PMTo Daniel Seydel IICc Key Earl daneiwashingtonorg Nadeem Ismail Mussie Tewelde(mteweldehydro2geotechcom) graceflyrightaolcom Mary Wenner Watkinson LarrySubject RE Seydel Dan - WSDOT Disparity Study Presentation Public Testimony Hi Dan Thank you for providing such thoughtful public comments questions and testimony Regarding your public testimony below - I do not believe I am not able to answer questions if theyare public comments Please let me know what part of this email you would like clarification on andwhat part you would like considered public testimony I appreciate your thoughtful consideration of WSDOTrsquos implementation of our civil rights programs Best Regards Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov From Daniel Seydel II [mailtodanplatinumbusinessgroupcom] Sent Thursday December 7 2017 1123 AMTo Bayne Jackie ltBayneJwsdotwagovgtCc Key Earl ltKeyEwsdotwagovgt daneiwashingtonorg Nadeem Ismailltnipaintingearthlinknetgt Mussie Tewelde (mteweldehydro2geotechcom)ltmteweldehydro2geotechcomgt graceflyrightaolcom Mary Wennerltmwenn0108yahoocomgtSubject Seydel Dan - WSDOT Disparity Study Presentation Public Testimony Jackie

Per your request below are my questions and comments some of which were verbally sharedyesterday

Congratulations on receiving the blessing of additional technical assistance dollars andcompleting the DBE Disparity Study per your report

1) Do you have any reports on your outcomes from the past 5 years on DBE support servicesand specific key performance measures from previous years funding (ie how many firmsutilized what was the objectives were objectives met did outcomes meet total satisfaction ifnot why next steps what was the firms capacity before and after services were performed (iesales employees bonding if applicable insurance equipment line of credit if applicablenumbertype of customers how are they doing now etc))

2) What other changes or improvements other than allowing DBES to select their own serviceproviders and a staff change will be a part of this new program

3) Was consideration to provide the new mentor protege consultant rather than separating theactivities into support services andor technical assistance

Disparity study clarifications andor comments

1) Will WSDOT consider sponsoring legislation to support the policy changes and goalincreases to insure manditory goals wont be necessary

a) If not what measures will you grant primes to operate outside the box (ie entertain bestvalue over low bid modify responsiveness by subs to require adherence to meeting voluntarygoals developing standards around federally funded gccm and other low bid procurementsthat give powers to primes to meet objectives including but not limited to mentor protegerelationships joint ventures bond waiving techniques cash flow assistance material andequipment acquisition manufacturer development specifications that have only DBES orinclude equal number of DBES as non DBES as approved installers etc)

2) Will the disparity study consultant be available for implementation or information gatheringfrom other regions

3) What lessons did WSDOT learn that it did not know from the other study(s)

4) What would WSDOT do different (ie scope time line process approach etc)

5) Will WSDOT be hiring more diverse staff amp professionaltechnical service providers inother departments outside OEO to insure policies commitments and evaluations areperformed in manner that improves diversity that reflects the communities WSDOT serves bythoughtful and legal efforts increase participation thus creating successful outcomes includingpartnerships and collaborations

Thank you for your hard work

Daniel J Seydel IIPlatinum Group LLC2064060844f) 2062999934wwwplatinumbusinessgroupcom

Small Business is the Answer

FREE TRAINING FOR ENTREPRENEURS amp JOB SEEKERS - Polish your skills or makeyour firm standout thanks to the Entrepreneurial Institute of Washington

httpswwwyoutubecomchannelUCKL5YeVxL29HnNxqnb6hmXA

LIKE US on FaceBook if an Active Professional Development workshop provided by EIWConstruction University helps your firm or has benefited you

httpswwwfacebookcomEIWashingtonref=hl

From Erin EhlingerTo Bayne JackieSubject Support for WSDOTs proposed DBE goalDate Wednesday December 13 2017 115417 AM

I am writing to support the WSDOT recommended DBE Goal for FHWA contracts of 190 I also want to express my appreciation for the thoroughness of the WSDOT Disparity study and howthe study disclosed the disparity in WSDOT contracts that do not have a DBE or WBE goal ndash furtherreinforcing that all women-owned firms and minority owned firms face equity issues I remain concerned with the methodology required by the Code of Federal Regulations and case lawbecause of the dependence on the availability of firms in the calculation An unintendedconsequence of removing either gender or race from the goal is that many of these firms would goout of business the availability decreases and the formula then results in a smaller DBE goal Pleaselet me know how I can help influence a change to the CFR Thank you Erin Ehlinger

Erin Ehlinger PEPresident

24036 SE 47th StSammamish WA 98029erinehlingersmartcitytrafficcom425-221-0320

From Jackie EtterTo WSDOT Disparity StudySubject Why we need mandatory goalsDate Friday December 1 2017 61859 PM

As a DBE participating in bidding process I have found that regardless of the language which claims to insurethat disadvantaged business enterprises shall not be discriminated against the only way to ensure that this does nothappen is by mandating affirmative action goals Having been overlooked time and time again because of my gender when I have submitted bids that are verycompetitive with other bidders is very frustrating I have had many instances of companies using my price to getmy non DBE competitors to lower theirs The voluntary or laudatory DBE goals do nothing to ensure a level playing fieldThe only way to ensure non-discrimination is through mandatory goals

Jackie EtterWest Star Construction of Spokane

Sent from my iPhone

From Claudia HirscheyTo Key Earl Bayne JackieSubject WSDOT DBE Goal - Comment in supportDate Tuesday December 12 2017 61937 PM

Dear Earl and Jackie The WSDOT recommended DBE Goal for FHWA contracts of 190 is a small and important increasethat can further achieve equity in WSDOTFHWA contracting I am in support of the 19 DBE Goal I also want to express my appreciation for the thoroughness of the WSDOT Disparity study and howthe study disclosed the disparity in WSDOT contracts that do not have a DBE or WBE goal ndash furtherreinforcing that all women-owned firms and minority owned firms face equity issues I remain concerned with the methodology required by the Code of Federal Regulations and case lawbecause of the dependence on the availability of firms in the calculation An unintendedconsequence of removing either gender or race from the goal is that many of these firms would goout of business the availability decreases and the formula then results in a smaller DBE goal Sincerely Claudia S Hirschey PETransportation Consulting Servicesclaudiahirscheycomcastnethttphirscheytcscom2068564988 Mobile

From Nate ThomasTo WSDOT Disparity StudySubject WSDOT Proposes DBE goal of 19Date Thursday December 7 2017 42720 PM

The WSDOT should look into similar ways the Federal Gov has handled the equal opportunity forthose that fall under the DBE status and set aside specific projects for the DBErsquos and moreimportantly UDBErsquos so these companies have better chance of landing contracts Maybe a lot 10 ofthe DBE goal to set aside for only DBEs and other 9 goal met as it is done currently with COA onlarger contracts Nate ThomasSenior EstimatorD 5095688085 | C 5099941156331 North Fancher Road | Spokane WA | 99212

The information contained in this email including any attachments is confidential and may beprivileged It is intended only for the person or entity to which it is addressed and no waiver isintended by sending this email If the reader is not the intended recipient you are herebynotified that any review retransmission dissemination or other use of or taking any action inreliance upon this information is strictly prohibited If you have received this email in errorkindly notify the sender by reply email and delete the original message from any computerThank You

From Brian FujiiTo WSDOT Disparity StudySubject WSDOT propsed DBE GoalsDate Thursday December 7 2017 110638 AM

Good morning Jackie

I wanted to comment on WSDOTs proposed DBE goal to 19 I believe WSDOTs plan toincrease the overall DBE goal to 19 will provide greater opportunities for DBE contractorsin different disciplines to participate in federally funded contracts

Without the new DBE requirement and with Proposition 200 there are limited opportunitiesfor DBE contractors in disciplines different than the typical trucking flagging and rebar Inaddition there are no incentives for general contractors to go out beyond the usual truckingflagging and rebar DBE subcontractors

Increasing the DBE goals will provide opportunities for different DBE contractors in differentdisciplines to participate in WSDOT federally funded projects

Thank you for your time

RespectfullyBrian FujiiPresident Subsurface ConstructionP 2063836478F 2069604639MDBE 4M0024998

From Forman StephanieTo Bayne JackieCc Millar Roger christinenhanmailhousegov Claudia Hirschey Sarah Corbin Jiang Yingle

efaulknerenviroissuescom Diana Giraldo Kelly CheesemanSubject WTS - Disparity Study Comment LetterDate Friday December 15 2017 71020 PMAttachments 2017_Dec 15_WTSCommentLetter_WSDOT DBE Goalpdf

Dear Ms Bayne Please find our attached letter which summarizes the WTS Puget Sound Chapterrsquos support foradvancement of women in transportation and our comment letter regarding the recent DisparityStudy Please feel free to contact me if you have any questions or would like to discuss Sincerely Stephanie S Forman PEWTS Puget Sound President Transportation Project Manager

929 108th Avenue NE Suite 1300Bellevue WA 98004D 4254681548 M 2062291745stephanieformanhdrinccom

December 15 2017

Jackie Bayne Policy and Reporting Manager

Office of Equal Opportunity

Washington State Department of Transportation

PO Box 47314

Olympia WA 98504-7314

Dear Ms Bayne

On behalf of the Puget Sound Chapter of Womenrsquos Transportation Seminar (WTS) we would

like to thank the Washington State Department of Transportation for presenting to our

organization the DBE Disparity Study results We very much appreciated the presentation by Earl

Key Director of WSDOTrsquos Office of Equal Opportunity Teresa Berntsen (Director Office of Minority

and Womens Business Enterprises) as well as Leslie Jones (Director Sound Transit Office of Small

Business Development and Labor Compliance)

Following a review of the WSDOT Disparity Study and as a result of consultation with WTS

International we would like to provide WSDOT with our comments for your consideration

As you know WTS is an organization focused exclusively on attracting retaining and advancing

women in transportation By the year 2018 there will be thousands of vacancies in the

transportation industry for qualified professionals and while women account for more than half of

the worldrsquos workforce they are a very small minority in transportation disciplines

We are pleased that the outcome of the 2017 Disparity Study that recognizes the on-going barriers

for DBEs including women-owned businesses in transportation The WSDOT recommended DBE

Goal of 190 is a small and important increase that can further achieve equity in WSDOTFHWA

contracting We are also pleased that the 2017 Disparity Study has documented the disparity in

WSDOT contracts that do not have a DBE or WBE goal ndash further reinforcing that all women-owned

firms and minority owned firms face equity issues We are encouraged that the WSDOT has asked

FHWA to rescind the 2016 waiver

While WTSrsquo mission is specific to the advancement of women we are a race-neutral organization To

this end we are also deeply concerned about the underutilization of minority owned firms There is

no equity or ldquofair playing fieldrdquo without equity for all gender and races We remained concerned with

the methodology required by the Code of Federal Regulations and case law because of the

dependence on the availability of firms in the calculation An unintended consequence of removing

either gender or race from the goal is that many of these firms would go out of business the

availability decreases and the formula then results in a smaller DBE goal This consequence is

contrary to our mission

We look forward to our continued participation in WSDOTrsquos DBE advisory group we are anticipating

notice that the 2016 waiver has been rescinded and how we can work together to continue

advancing minority and women-owned firms in the transportation field

Sincerely

WTS Puget Sound Chapter

Stephanie Forman

President

C Roger Millar Secretary WSDOT

C Representative Adam Smith 9th Congressional District Washington co Christine Nhan

WTS Puget Sound Chapter

PO Box 3461

Bellevue Washington 98009

From Dave Gent - WAPATo Bayne JackieCc Tom GaetzSubject WAPA Public Comments - RE WSDOT FHWA Disadvantaged Business Enterprise Proposed GoalDate Friday December 15 2017 14119 PMAttachments 12152017 DBE Proposed Goal - WAPA Public Comments Letterpdf

Good afternoon Jackie Please find attached WAPArsquos ldquofor the public recordrdquo comments with respect to WSDOTrsquos proposedDBE Goals FHWA funded work I assume that the Master DBE Directory was not sent to you this week so as a result we were notable to review the directory before the close of the public comment period That fact is noted withinour comment letter Thank you for your efforts Have a good weekend

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Friday December 8 2017 1219 PMTo Dave Gent - WAPA ltdavegentasphaltwacomgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hello Dave WSDOT did not take possession of this directory as part of our review process We will provide youwith the records without submitting a formal request However we need to get them from theconsultant first I will hopefully have them to provide next week I will keep you updated on therequest Have a nice weekend Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal Opportunity

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

December 15 2017

Jackie Bayne Policy Manager WSDOT Office of Equal Opportunity Delivered via e-mail to BayneJwsdotwagov RE Public Comment (as requested) to Proposed Overall DBE Goal for the FHWA (2018 ndash 2020) Ms Bayne Thank you for your presentation via webinar on December 5 2017 outlining WSDOTrsquos evaluation process used to determine the proposed overall DBE goal for the FHWA Thank you also for the Colette Holt amp Associates (CHA) DBE Advisory Group presentation made on September 14 2017 Both presentations helped to distill the findings of the 2017 Disparity Study produced by CHA In response to Earl Keyrsquos initial informal request to comment on the proposed overall DBE goal made during the DBE Advisory Committee teleconference held on October 12th we provided a list of reasons that we believe justify a lower DBE goal than is now being proposed Our initial response to Mr Keyrsquos request did not serve to influence WSDOT and the current proposed goal remains at 190 The arguments provided on October 12th against the significant increase in the proposed DBE goal (versus the previous goal and recent historic DBE participation) are repeated and supplemented below and will serve as the Asphalt Pavement Associationrsquos (WAPArsquos) official public comments

In concert with WSDOT and the OWMBE WAPA and the construction firms that WAPA represents have demonstrated a commitment to the principals of equal opportunity for all ldquoready willing and ablerdquo firms for the entire history that our DBE program has been in place WAPA has continuously demonstrated its commitment to the goals of the DBE program and for increasing the representation of disadvantaged groups within our industry as both workers and owners of firms Please recognize that WAPArsquos oversight and critique of the DBE program has always attempted to balance the principals of fair and open competition with the practical aspects of the low bid compressed schedule high performance standards demanded within the WSDOT marketplace Our comments below are meant to enhance WSDOTrsquos and OWMBErsquos understanding of the market and to hopefully have WSDOT fully consider all of the dynamics that are at play when proposing its Triennial DBE goal for FHWA projects Current DBE Capacity vs Historically Robust Market In advocating for a realistic and defensible DBE goal it has always been WAPArsquos position that it is paramount that the realities of the marketplace and true certified DBE subcontracting capacity should be a primary standard While a ldquostretchrdquo goal may appear to be progressive on its face it comes with consequences for all of the parties involved in the WSDOT federal aid contracting arena To balance the dynamics of the WSDOT contracting system the DBE goal should be tempered with the realities of the market and with a true measure of the underlying effectiveness of the DBE support services available to contractors

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 2 of 6 The first point of fact that has not been given any apparent consideration by WSDOT in its evaluation of the current capacity of certified DBErsquos is that there is an historically robust workload scheduled to be performed in the 2017 through 2022 time-frame particularly in the Puget Sound ldquoEverett to Olympiardquo corridor By WSDOTrsquos own estimates (see Attachment A) public works construction project starts in the 2018 to 2022 time-frame in this region will exceed $333 billion (B) counting the work projected from just five public entities WSDOT will be taking a decidedly ldquoback seatrdquo role during this period to Sound Transit which will have construction project starts of $226B vs WSDOTrsquos projected volume of $67B WSDOTrsquos summary publication titled Washington State Department of Transportations Proposed Federal Highway Administration Triennium Disadvantaged Business Enterprise Goal Federal Fiscal Years 2018-2020 states correctly that ldquoIncluded among the types of evidence that must be considered are the current capacity of DBEs to perform work on WSDOTrsquos federally-assisted contracts as measured by the volume of work DBEs have performed in recent yearshelliprdquo (Step Two Adjustment discussion) With the Sound Transit program being over 300 larger than the total WSDOT program in this region a sober assessment of true certified DBE capacity in the next three years needs to be considered by WSDOT If the huge construction boom over the next five years does not prompt a Step Two Adjustment then it becomes obvious that the realities of the market are being ignored by WSDOT for DBE goal setting Put another way if the 2018 through 2022 level of contracting activity does not warrant a goal adjustment what will DBE Access Barriers Not Yet Addressed The CHA 2017 Disparity Study points out multiple recommendations in Section VII that impact DBE participation and access to the market Assessments relating to those impacts and the state of maturity in addressing the CHA recommendations should be considered when assessing the DBE goal Many of the CHA recommendation have not been adequately addressed at this point in time Some of the prime examples are listed below Increase Certification and Expertise ndash The Disparity Study as explained to us includes all minority- (MBE)

and women-owned (WBE) firms that could be readily identified that perform work within Washington State and that perform work within the NAICS code framework CHA developed to cover WSDOT project work During the various presentations relating to the Disparity Study WSDOT representatives said that outreach to currently non-certified MBE amp WBE firms has increased and that WSDOT aspires to bolster its list of certified firms in the future but this effort is just beginning and the success of the effort needs to be means tested against the broader population of MBE amp WBE firms included in the CHA base line evaluation As the Disparity Study uses a much broader population of MBE WBE contractors to arrive at its conclusions (both non-certified firms and firms too large for certification) it follows that the calculated DBE proposed goal is overstated to include capacity that does not currently exist within WSDOTrsquos certified DBE framework Unless OMWBE is experiencing sudden and unprecedented success in recruiting new MBEWBE firms the DBE goal should be adjusted downward to recognize that the ldquoready willing and ablerdquo contractors that WSDOT has certified is only a subset of the total MBEWBE contracting population used in the Disparity Study evaluation

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 3 of 6

Until the promised WSDOT outreach registration efforts result in a substantial increase in available certified DBE firms it is premature to count the entire population of minority- and women-owned contractors as available to participate in WSDOT contracting It is unreasonable for WSDOT to project availability capacity using the entire MBEWBE population when only its currently truncated list of certified firms is acceptable to count toward the DBE goal

A corollary to the Increase Certification and Expertise discussion above is that the calculation of the Base Figure evidently includes the broadest practical population of MBE and WBE firms identifiable (without a review of the CHA Master DBE Directory which has not been supplied prior to the close of the public comment period the scope of the directory cannot be ascertained) If this directory includes a large population of MBEWBE firms that are not certified or are too large to be certified then the Base Figure calculation should be adjusted to reflect that certified DBE firms are a fraction of the total MBEWBE firms used to arrive at the 19 suggested DBE goal With respect to the CHA Master Directory it is our understanding the WSDOT was not given the directory as part of its evaluation of the Disparity Study and it follows that it did not evaluate the proposed DBE goal in the context of the CHA Master DBE Directory In our opinion an informed decision on adjusting the CHA baseline goal calculation can only be done after an extensive evaluation of the CHA Master DBE Directory If this has not been done WSDOT has not exercised due diligence in evaluating the context and underpinnings of the CHA Disparity Study and a certified DBE Triennium goal proposal to the FHWA is premature Increase Contract ldquoUnbundlingrdquo ndash If this proposed strategy (suggested by the CHA Study) is undertaken

certified DBE Subcontractors currently available will be engaged as Prime Contractors and the value of their prime contracts will bolster the overall percentage of certified DBE contracting but a systematic effort and strategy to ldquounbundlerdquo has not been articulated by WSDOT The key question of how this effort can be accomplished without increased cost to the taxpayers and increased inconvenience for the traveling public As noted in the CHA study (page 129 final paragraph) ldquoUnbundling must be conducted however within the constraints of the need to ensure efficiency and limit cost to the taxpayersrdquo As of this writing no overarching strategy for further unbundling with proper accountability has been articulated by WSDOT to the DBE Advisory Group

Review Insurance and Experience Requirements ndash Impediments to certified DBE participation due to

necessary insurance and experience standards cannot be solved by the prime contracting community Unless and until WSDOT puts together programs to address the burden of the substantial risks shouldered by Prime Contractors on WSDOT contracts barriers for streamlined utilization of certified DBE firms will continue to exist These market driven barriers will continue to dampen the availability of certified DBE Subcontractors that are able to perform within WSDOTrsquos strict criteria without unduly transferring risk to the Prime Contractor

Better Partnering to Overcome DBE Failures to Perform ndash Prime Contractors are held fully responsible to maintain the project schedule and are subject to project liquidated damages even when they may be struggling to deal with Subcontractor performance issues It is well-established that replacing a certified ldquocondition of awardrdquo (COA) DBE Subcontractor is very onerous and likely very costly to the Prime Contractor Unfortunately the imposition of strict and often counter-productive commercially useful function (CUF) rules often compound this issue as Prime Contractors cannot help COA DBE Subcontractors work through capacity expertise or time-related issues that impact timely performance

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 4 of 6

WSDOT needs to be a much better partner in the process of dealing with under-performing or non-performing certified DBE Subcontractors The current standard operational procedure places all of the exposure for non-performance onto the Prime WSDOT does not have an equitable system to account for non-performing or under-performing certified DBE Subcontractors hired as a condition of award (COA)

Performance Information and Training ndash Commercially useful function rules (CUF) and the lack of clear benchmark definitions for good faith effort (GFE) standards remain barriers for improving accountability within the DBE system and in turn lead to distorted DBE participation rates These items remain amorphous due to lack of training or lack of historic information Chronic uncertainty exists regarding both of these items Until WSDOT changes and improves its approach to provide transparency and certainty for both the prime bidding amp subcontracting parties true certified DBE capacity will continue to be masked and the resultant higher subcontracting costs associated with a distorted marketplace will continue to be hidden

WAPA respectfully suggests that simply adding an ldquoEstimated DBE Subcontract Premiumrdquo line to the current DBE bid forms would help to establish benchmarks that could begin to be used to ldquomeans testrdquo good faith efforts If this information had been gathered over the last 20 years of the DBE program meaningful GFE standards could have been developed and could be in place today

An in-depth review of CUF standards would also provide clarity For instance it is unclear why force account items performed by certified DBEs are currently counted at only 50 of the value of the work How was this benchmark established Has it been reviewed since imposed Did it ldquosolverdquo whatever inequity WSDOT was trying to address Better clarity may lead to more expanded opportunities for certified DBE Subcontractors

Enhanced Supportive Services and Business Development Programs ndash Unless and until stronger programs of these types are shown to be effective in boosting certified DBE business development increased DBE participation due to stronger business acumen should not be relied upon when setting the new DBE goal

Does OMWBE have a reasonable expectation that future plans for enhanced and expanded programs will be more successful than those employed in the past Assuming that certified DBE Subcontractors will be better prepared to deal with the WSDOT contracting environment than in the past should not be relied upon to boost DBE participation goals Especially troubling were the multiple references within the CHA report highlighting that DBEs believe that the staff at OMWBE lack a deep knowledge about the highway construction industry (eg Study page 129 2nd paragraph) Does OMWBE have a path forward that will address this issue and thus improve supportive services impacts

Develop a Bonding and Financing Program for SBEs ndash This is completely outside of the prime contracting

communityrsquos scope of influence WSDOT must find a way to institute changes that both protect the taxpayer and help increase certified DBE bonding capacity and access to financing ndash very large hurtles To assume that these hurtles can effectively be overcome within the 2018 ndash 2020 time frame when they have been chromic issues for the past 20 plus years of DBE program development is not rational

A helpful innovation would be for WSDOT to underwrite performance and payment bonds for certified DBE firms or to create promote a system that helps certified DBE firms obtain private bonding Bridging the gap to address capital access and performance risks (bonding) must be championed by WSDOT

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 5 of 6

Base Figure Adjustment to Address Available Subcontract Volume and DBE Prime Contracts It is a fact that mid- to large-sized MBEWBE firms that compete both as Prime Contractors and as Subcontractors are not eligible to be OMWBE certified DBEs Further the current amount of contract unbundling for greater DBE access to WSDOT prime contracting (see below) accounts for a very low dollar volume of prime contracts performed by certified DBEs Finally by specification (WSDOT standard specification 1-081) Prime Contractors are obligated to perform 30 of the total volume of the work (less specialty work) or stated another way a maximum of 70 of the dollar volume on WSDOT projects is typically available to award to subcontractors These market dynamics are NOT addressed in the Disparity Study A responsible DBE goal made absent of these facts should not be implemented A reasonable adjustment to the proposed 19 DBE goal is presented below

bull The percent of WSDOT prime contracts awarded to certified DBE firms is likely less than 5 by total WSDOT

contract volume Assuming this approximation is valid (likely very conservative) then the amount of WSDOT contract work available to certified DBE firms via subcontracting should be adjusted to account for the factors outlined above The Base Figure (19) should be adjusted to recognize that a 70 maximum subcontractor participation is available (in the numerator) and to account for the assumed 5 certified DBE prime contracts in the denominator Reasonable Base Figure Adjustment 19 (proposed) x 70 subcontracts available divide 95 of Non-Certified DBEs as Prime Contract Volume = 190 x 0737 = 140 adjusted goal This is an adjustment based on the practical dynamics of the WSDOT contracting system and it represents a more realistic look at the true subcontract volume that is available for Prime Contractors to award to certified DBE firms

Conclusions

Until the items listed above are addressed and in place it is not reasonable to believe that DBE goals can be increased by nearly 163 (from 117 to 190) When the projected robust public works contracting market is appropriately considered the true availability of certified DBE Subcontractors for WSDOT contracts will be truncated due to demand across all public works sectors With multiple strong public works programs competing for a limited population of certified DBEs the ability to meet increased WSDOT DBE goals will be severely challenged Without very clear concise and transparent good faith effort rules the ability to address DBE goals that greatly overestimate true near term certified DBE capacity will result in non-attainment bid day chaos failures to perform andor rapidly increased pricing

The clear conclusion is that at this point in time under the current circumstances without effectively instituted new programs rules procedures that could enhance the certified DBE programrsquos overall effectiveness we believe that the DBE goal should remain at or near 12 As OMWBE documents and demonstrates its future successes in improving access and eliminating capacity barriers only then should the DBE goal be re-evaluated and increased

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 6 of 6

In closing please remember that it is rare that the contracting community is asked our opinion with respect to the WSDOTrsquos DBE policies and so this letter is somewhat a vehicle to highlight collective concerns It is our belief that the majority of the Prime Contractors in Washington state support the objective of creating a level playing field for ready willing and able DBEs

If the level playing field is not yet possible in the absence of the DBE program then the key is to set realistic goals that recognize reflect and address the hard realities and market dynamics imposed by WSDOTrsquos bedrock environment of awarding contracts to the lowest cost responsible and responsive Contractor

Respectfully submitted Washington Asphalt Pavement Association

David Gent Tom Gaetz Executive Director Senior Advisor

Attachment A ndash WSDOT Central Puget Sound Public Works Contracting Projection 2018 - 2022

Con

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n Pr

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t Sta

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2018

-202

2S

ound

Tra

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$22

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WS

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Attachment A

Work (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Dave Gent - WAPA [mailtodavegentasphaltwacom] Sent Thursday December 7 2017 144 PMTo Bayne Jackie ltBayneJwsdotwagovgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hi again Jackie Irsquom fine thanks and hope you are the same Interesting The Master DBE Directory is the basis for and integral to the conclusions of the DisparityStudy Is it not then part of the information needed to fully review and comment on the DisparityStudy Was it not provided by CHA to WSDOT for review We are trying to fully understand thestudy and if this directory was part of the study why would it need to be obtained by a publicrecords disclosure It should be in the public domain and not restricted from ease of access If you are sure that a public records request is needed Irsquoll start that process but we will need tonote that point of fact when we submit our public comments If you are able to reconsider please let me know Respectfully

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Thursday December 7 2017 126 PMTo Dave Gent - WAPA ltdavegentasphaltwacomgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hello Dave I hope you are doing well

That information would likely be obtained through a public disclosure request Best Regards Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Dave Gent - WAPA [mailtodavegentasphaltwacom] Sent Thursday December 7 2017 113 PMTo Bayne Jackie ltBayneJwsdotwagovgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Jackie Can you please provide an electronic file or provide a weblink for the Master DBE Directory thatColette Holt amp Associates developed for the WSDOT Disparity Study 2017 (first referred to on Page 8of the Disparity Study) I did not see a link to this Master DBE Directory within the study Thanks

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Friday October 27 2017 1118 AMTo Kenyon Wendy ltKenyonWwsdotwagovgt Adams E W ltewadamssystemsclcomgtAdekoyaAndrew ltandrewadekoyabccomgt AlyssaBalllegwagov Anindita Mitraltamitracrea-affiliatescomgt APRISeattlehotmailcom Armstrong CharlotteltCharlieAatgwagovgt Ato Apiafi Architects PLLC ltatoaatoapiaficomgt benzfanwaorgBerntsen Teresa (OMWBE) ltTeresaBomwbewagovgt Billingsley Andrealtbillinawsdotwagovgt Bramlet Erica ltEricaBramletlegwagovgt Brooks Julius

ltBrooksJwsdotwagovgt Brown Jason ltjbrownldccorpcomgt bwallacenwlaborersorgCamden Allison ltCamdenAwsdotwagovgt carlllivingstongmailcom Cerda OscarltCerdaOwsdotwagovgt Christopher Chris ltChristCwsdotwagovgt ckerneycaawagovdanplatinumbusinessgroupcom davegentasphaltwacom David BalltDavidsignsnowmillcreekcomgt Davis Khalia ltDavisKhwsdotwagovgt Davis RaShelle (GOVltrashelledavisgovwagovgt Dayton Jo ltDaytonJwsdotwagovgt ddhondtagcwacomDebbieDriverlegwagov Dennis ltdennisahlkiewitcomgt dmcleodnwlaborersorgdrart6651gmailcom Duncan Enid lthigradeincgmailcomgt EltonltEltonwashingtonstatetruckingcomgt eprincecaawagov flemosldccorpcomfmartineznwmtnmsdcorg geoffshookatkncom glovelady ltgloveladyexcelglovescomgtGrabow Katie ltkgrabowsystemsclcomgt Guilfucci Jackie ltJackieGuilfucciskanskacomgt HealyLinda ltHealyLwsdotwagovgt Higginbotham Breanne ltHigginBwsdotwagovgt HirscheyClaudia ltclaudiahirscheycomcastnetgt Holt Colette ltcoletteholtmwbelawcomgt Huff JohnltHuffJwsdotwagovgt Iniguezchawagov JacksonMaynardlegwagov Jimmy Matta(jmattaalcantarassoccom) ltjmattaalcantarassoccomgt kellywickergovwagov Key EarlltKeyEwsdotwagovgt Kirk Jon ltjkirkwhhnfscomgt Kris Purrier ltkpurrierhwageocomgtleewabuildingtradesorg lesliejonessoundtransitorg Liz Evans ltlevansagcwacomgt LopezErin lterinlopezdeswagovgt Martha Cerna ltMarthaPSLCCORGgt Martin-Arnold EdwinaltMartinEwsdotwagovgt Mary Lerdahl ltmarydbeelectricinccomgt McCarty Hannahlthannahmccartylegwagovgt Melissa L Boyles ltmelissaboylesmwbelawcomgt Metcalf KeithltMetcalKwsdotwagovgt michaelicapaawagov Michelle ltMichelleTTCC26netgt MillarRoger ltMillarRwsdotwagovgt Nakamura Jason ltjasonnakamura1-alliancecomgtNavarroLportseattleorg olliepmt-solutionscom pastorbanksesbctacomacom PatrickHughes ltphugheshughesgroupbizgt Petersen Jodi (FHWA) ltJodiPetersendotgovgtrabbottliunaorg rcarmsteadgmailcom ricemportseattleorg Riley D ltdrileylydigcomgtSeling ltSelingjpfranciscomgt sherryharrisergosynchcom Stell MellodyltStellMwsdotwagovgt terigobintulaliptribes-nsngov timwilliamfactorycom tinaterra-tdicom tkellyldccorpcom tomgaetzmsncom vcollinsacec-waorgverlenejazzmsncom Wang Albert ltWangAatgwagovgt Waugh GregltGregWMaxKuneyComgt Yates Henry ltYatesHWSDOTWAGOVgtCc Tom Gaetz lttomgaetzmsncomgt Dave Gent - WAPA ltdavegentasphaltwacomgt VanCollins ltvcollinsacec-waorggt Daniel Seydel II ltdanplatinumbusinessgroupcomgt MaynardJackson ltJacksonMaynardlegwagovgt Carl Livingston ltcarlllivingstongmailcomgt DonMcLeod ltdmcleodnwlaborersorggt JIMMY MATTA ltjimmymattamsncomgt Prince Ed(CAAA) lteprincecaawagovgt David DHondt ltddhondtagcwacomgt Irene Reyesltgloveladyexcelsupplycompanycomgt McDaniel Craig ltMcDaniCwsdotwagovgtsherryharrisergosynchcomSubject WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Good morning On Monday October 30th WSDOT will be releasing the proposed overall Federal HighwayAdministration Disadvantaged Business Enterprise goal attached for public comment throughDecember 15 2017 This overall DBE goal is based upon the recently completely DBE ProgramDisparity Study WSDOT is proposing a 19 percent overall DBE participation goal on Federal Highway

Administration-funded projects for federal fiscal years 2018 through 2020 DBE goals fortransportation projects that receive federal funds represent a percentage of the value of work inwhich minority- and women-owned businesses should participate Once finalized and submitted toFHWA early next year the goal will be effective through Sept 30 2020

The purpose of the DBE program is to create a level playing field for firms owned and operated bydisadvantaged individuals wanting to participate in federally assisted highway transit and aviationprograms The attached overall DBE goal is for FHWA funded projects WSDOT will be updating theFTA and FAA overall DBE goals in the near future

If you have any questions please contact Earl Key Director of the Office of Equal Opportunity at3607057091 or KeyEwsdotwagov Thank you Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

  • Proof-Of-Publicationpdf
    • Mediapdf
      • AGC
      • Daily Journal
      • Daily Medium
      • DBEGood
      • OMWBE
      • Seattle Medium
      • Tabor 100
      • The Chronicle
      • Tukwila
        • King County
          • Public-Comments-20180111pdf
            • 19 DBE Requirement(1)
            • AGC Comments on Proposed 10 Goad
            • Backstrom Curb amp Sidewalk
            • comments on WSDOT proposed DBE goal
            • Cowlitz County Public Works
            • DBE Contracting goals
            • DBE Goal
            • DBE Program Disparity Study
            • Disparity Study Comments from City of Spokane
            • FW_ WSDOT News - WSDOT seeks comments on propos
            • Proposed DBE Goals
            • RE_ DBE Contracting Goal Comments
            • Re_ DBE Goal Comments
            • Re_ Seydel Dan - WSDOT Disparity Study Present
            • Support for WSDOTs proposed DBE goal
            • Why we need mandatory goals
            • WSDOT DBE Goal - Comment in support
            • WSDOT Proposes DBE goal of 19
            • WSDOT propsed DBE Goals
            • WTS - Disparity Study Comment Letter

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()

WSDOT seeks comments on proposed DBE contracting goal for highway projects - Seattle MtgWSDOT seeks comments on proposed DBE contracting goal for highway projects

Comments accepted through Dec 15

OLYMPIA ndash Contractors trade and labor organizations small and disadvantaged businesses and all others who may be interested in working with the Washington State Department of Transportation are invited to comment on the agencyrsquos proposed Disadvantaged Business Enterprise goal for Federal Highway Administration contracts

DBE goals for transportation projects that receive federal funds represent a percentage of the value of work in which minority- and women-owned businesses should participate WSDOT is proposing a 19 percent overall DBE participation goal on Federal Highway Administration-funded projects for federal fiscal years 2018 through 2020

Once submitted to FHWA early next year the goal will be effective through Sept 30 2020

The purpose of the DBE program is to create a level playing field for firms owned and operated by disadvantaged individuals wanting to participate in federally assisted highway transit and aviation programs

Connecting with communities WSDOT will host a series of public meetings to provide opportunities for individuals to comment in person

Spokane meeting was held Nov 28

Vancouver meeting was held Nov 29

Seattle

2 ndash 4 pm Thursday Dec 7WSDOT Northwest Region Headquarters15700 Dayton Ave N Shoreline

Page 1 of 3WSDOT seeks comments on proposed DBE contracting goal for highway projects - Seattl

1112018httpwwwomwbewagovabouteventswsdot-seeks-comments-proposed-dbe-contracting

Date Thursday December 7 2017 - 200pm to 400pm

Other ways to provide comment Those who are unable to attend one of the meetings can participate in a no-cost webinar from 230 ndash 430 pm Tuesday Dec 5 Registration for the webinar is required Those interested in participating should email DisparityStudywsdotwagov (mailtoDisparityStudywsdotwagov)

Written comments can also be submitted by mail or email Jackie Bayne Policy amp Reporting Manager Washington State Department of Transportation Office of Equal Opportunity PO Box 47314 Olympia WA 98504-7314 DisparityStudywsdotwagov(mailtoDisparityStudywsdotwagov)

Documents detailing the methodology used for determining the FHWA DBE goals are available for review at all WSDOT region headquarters offices and at the Transportation Building 310 Maple Park Ave SE Olympia They are also available online at wwwwsdotwagovequalopportunity (httpwwwwsdotwagovequalopportunity)

WSDOT will consider all written comments received through Friday Dec 15 2017

WSDOT keeps people businesses and the economy moving by operating and improving the states transportation systems To learn more about what were doing go to wwwwsdotwagovnews (httpwwwwsdotwagovnews) for pictures videos news and blogs Real time traffic information is available at wwwwsdotcomtraffic(httpwwwwsdotcomtraffic) or by dialing 511

Americans with Disabilities Act (ADA) Information Accommodation requests for people with disabilities can be made by contacting the WSDOT DiversityADA Affairs team at wsdotadawsdotwagov (mailtowsdotadawsdotwagov) or by calling toll-free 855-362-4ADA (4232) Persons who are deaf or hard of hearing may make a request by calling the Washington State Relay at 711

Title VI Statement to Public It is WSDOTrsquos policy to assure that no person shall on the grounds of race color national origin or sex as provided by Title VI of the Civil Rights Act of 1964 be excluded from participation in be denied the benefits of or be otherwise discriminated against under any of its federally funded programs and activities Any person who believes his or her Title VI protection has been violated may file a complaint with WSDOTrsquos Office of Equal Opportunity For additional information regarding Title VI complaintprocedures andor information regarding our non-discrimination obligations please contactOEOrsquos Title VI Coordinator at 360-705-7090

Page 2 of 3WSDOT seeks comments on proposed DBE contracting goal for highway projects - Seattl

1112018httpwwwomwbewagovabouteventswsdot-seeks-comments-proposed-dbe-contracting

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iquestAumlAEligAacuteAacuteAgravefrac12AEligAacuteAacuteiquestAEligAcirciquestiquestAEligCcedilEumlIgraveETHOgraveyenUcircfrac14iquestAEligEcircAringiquestfrac12AgraveEcirciquestAtildeAEligiquestAEligAacutedegdegdegraquodeg1ordf-raquodegraquolaquoregszligXagraveKsup3sup3Z-Kcopy0-Lszligraquocentfrac14frac12frac34iquestAumlAEligiquestfrac34iquestAacuteAacuteAEligAumlAringAringAEligAacuteEumlfrac34AacuteAgraveAringAacuteiquestAacuteAgraveAacuteiquestiquestAacuteAgraveIumlAcircAEligAacuteiquestAacuteAacuteiquestAEligAumlAacuteEumlAtilde AcircAtildeAringiquestAacuteAacuteiquestAEligCcediliquestAacute iquestAEligCcedilAacuteAacuteAgraveAEligiexclcentcentiquestAacuteAacuteAEligAumlAringAringAEligAacutefrac34iquestAtildeAumlAumlAacuteAcircAEligAacuteiquestAcircCcedilIgraveETHEumlOtildeOgraveETHETHEumlAEligAgraveAcircAtildeAEligAacuteAacuteaacuteacircAumlUcirciquestEcircAEligEumlyencentatildeAEligAacuteAumlAacuteatildeAringiquestAEligAuml iquestAumlcentAgraveiquestAEligCcedilAacuteAEligfrac14AacuteAacuteAacuteAringAEligAacute frac12AEligAacuteAacuteiquestAElig iquestAuml IumlAcircAacuteAcircAEligiquestAacuteEcircaumlRSaringPREcircAringiquestOWaeligccedilegraveeacuteNRecircSaringPRAringiquestaacute)LcopyXJeumldeg1ordf-raquodegraquolaquoreg

13

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httpwwwchronlinecomnewswsdot-seeks-public-comment-on-disadvantaged-business-enterprisearticle_f5c753ea-be61-11e7-966c-972f6769d8a6html

WSDOT Seeks Public Comment on Disadvantaged Business Enterprise By The Chronicle Oct 31 2017

The Washington State Department of Transportation will be accepting public comments about the departmentrsquos proposed Disadvantaged Business Enterprise goal for federal contracts

The goal is for transportation projects receiving Federal Highway Administration funds to have 19 percent of the value of work done by minority or women-owned businesses during the 2018 through 2020 fiscal years

ldquoThe purpose of the DBE program is to create a level playing field for firms owned and operated by disadvantaged individuals wanting to participate in federally assisted highway transit and aviation programsrdquo a press release from WSDOT said

A series of public meetings will be held to discuss the goal in Spokane Vancouver and Seattle

For those who are unable to attend the in person meetings a webinar will be hosted from 230 to 430 pm Thursday Dec 5 The webinar is free but registration is required To register email DisparityStudywsdotwagov

Page 1 of 2WSDOT Seeks Public Comment on Disadvantaged Business Enterprise | News | chronlin

1112018httpwwwchronlinecomnewswsdot-seeks-public-comment-on-disadvantaged-business-

Written comments can also be submitted by mail or email to Jackie Bayne policy and reporting manager for the department of transportation at Washington State Department of Transportation Office of Equal Opportunity PO Box 47314 Olympia 98504 or by email at disparitystudywsdotwagov Comments will be considered through Dec 17 2017

More information about the goal is available at all regional offices or at the main office in Olympia located at the Transportation Building 310 Maple Park Ave SE Olympia More information can also be found online at wsdotwagovequalopportunity

Page 2 of 2WSDOT Seeks Public Comment on Disadvantaged Business Enterprise | News | chronlin

1112018httpwwwchronlinecomnewswsdot-seeks-public-comment-on-disadvantaged-business-

larr Halfway there SR 8 fish barrier removal reaches milestone New SR 26 traffic cameras available rarr

WSDOT seeks comments on proposed DBE contracting goal for highway projects

December 1 2017 | No Comments

WSDOT is seeking comments on proposed participation goals for Disadvantaged Business Enterprises on upcoming Federal Highway Administration contracts a Yakima meeting has also been added to the schedule Source WSDOT Permalink WSDOT seeks comments on proposed DBE contracting goal for highway projects

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Page 1 of 3WSDOT seeks comments on proposed DBE contracting goal for highway projects | Tukw

1112018httptukwilatowingcom20171201wsdot-seeks-comments-on-proposed-dbe-contracting

From Liz EvansTo Bayne JackieSubject AGC Comments on Proposed 10 GoadDate Tuesday December 12 2017 50314 PMAttachments WSDOT Proposed Goal - AGC Comments FINALdocx

Hi there Jackie Attached are AGCrsquos comments on WSDOTs proposed 19 goal We will also be mailing you a copy Thanks for the opportunity to comment and we hope you find it helpful Regards Liz Liz Evans CAE Northern District ManagerAGC OF WASHINGTONTel 3602238757 | wwwagcwacom JOIN US for the 2018 AGC of Washington Annual Convention amp Technology Expo Jan 26

CUsersmwillmsPicturesInland AGCLogo_RGB_Half_5in

December 12 2017

Page 5

December 12 2017

VIA EMAIL amp US MAIL

Ms Jackie Bayne Policy amp Reporting Manager

Washington State Dept of Transportation

210 Maple Park Ave SE

PO Box 47314

Olympia WA 98504

RE WSDOT Proposed FHWA Triennium Disadvantaged Business Enterprise Goal

Dear Ms Bayne

This letter summarizes the views of the Associated General Contractors of Washington and Inland Northwest Associated General Contractorsrsquo (hereafter referred to collectively as AGC) regarding the Washington State Department of Transportationrsquos (WSDOT) recently proposed FHWA Triennium Disadvantaged Business Enterprise (DBE) Goal (the ldquoProposed Goalrdquo) AGC shares WSDOTrsquos commitment to continue the promotion of DBE firms but AGC is concerned the Proposed Goal which is a significant increase from the previous goal and actual utilization may have unintended consequences and could impose significant burdens on both prime contractors and DBE contractors alike AGC requests WSDOT reconsider its Proposed Goal and adjust the Proposed Goal to account for inevitable availability and capability issues including the lack of a formal retraction of the non-minority woman owned business waiver that makes up over half of the Proposed Goal Implementing an unachievable goal will only be to the detriment of the DBE program

1 AGCrsquos Membersrsquo Interest in WSDOTrsquos Proposed Goal

Together AGC of Washington and Inland Northwest AGC represent and serve the commercial industrial and highway construction industry These professional associations of commercial contractors are comprised of more than 900 members who have joined together to enhance the performance of their industry and build a better climate for construction operators many of which are small and closely held businesses

Like WSDOT AGC is firmly committed to the principals of equal opportunity and promoting efforts to ensure minority women and veteran owned businesses are properly represented In both its political advocacy and membership programs AGC has demonstrated its commitment to increasing the representation of disadvantaged groups in the construction industry as both workers and owners of firms For AGC this is both an issue of principles and a practical one The construction industry as a whole is facing a critical shortage of workers and it is imperative that the industry attract new participants Among AGCrsquos activities demonstrating this commitment are the following

middot AGC has an ongoing ldquoContractor Exchangerdquo program through which small minority- and women-owned subcontractors are offered one-on-one networking opportunities with established general contractors

middot The AGC Education Foundation provides financial support to construction-related programs in K-12 schools and conducts outreach specifically targeted at low income disadvantaged and female students

middot More than 2500 students most from inner-city schools participate in annual AGC-sponsored Construction Career Days in King Pierce and Spokane Counties

middot AGC supports the Pre-Apprenticeship Construction Training (PACT) program at Seattle Vocational Institute This program is focused on preparing underrepresented communities to be highly qualified applicants and successful apprentices in the construction trades

middot AGC is a sponsor of the Turner School a training course for minority- and women-business owners in the construction industry

middot AGC supports the National Association of Women in Construction (NAWIC) which provides professional development and other services to its members

middot AGC routinely supports legislative efforts aimed at supporting small businesses and encouraging small business participation

middot AGC recently formed a Diversity and Inclusion Committee comprised of both prime and DBE participants The purposed of the committee is to expand opportunities for DBE members and to help AGC consider diversity in decision-making Recently AGC approved a deeply discounted introductory dues structure for certified DBE members

middot AGC is a WSDOT partner on the new mentorproteacutegeacute program

AGCrsquos experience has been that the most effective approach is to help make emerging businesses successful through outreach training and public policies that will grow their capacitymdashnot by imposing mandates without clear evidence as to the mandates feasibility

2 WSDOTrsquos Proposed Goalrsquos Impacts To The Construction Industry

WSDOTrsquos Proposed Goal is 190 The Proposed Goal is based upon the recent Collete Holt amp Associates (CHA) Disparity Study released in 2017 With respect to availability the Disparity Study reports the following weighted availability for FHWA-Funded projects

Thus the 190 goal factors in Black Hispanic Asian Native American and White Women into its availability As indicated however this 19 goal raises a number of concerns

a WSDOTrsquos 19 Proposed Goal Represents a Significant Increase Without Concrete Evidence of Available And Capable DBE Firms

First WSDOTrsquos Proposal Goal of 190 represents a significant increase as compared to actual DBE participation (141 in 2014 117 in 2015 and 151 in 2016) as well as the last FHWA proposed goal of 116 for 2014-2018 See WSDOTrsquos Proposed Goal and Interim FHWA Overall DBE Goal Methodology FFY 2014-2018 The Proposed Goal is 74 more than the last goal which represents a 638 increase and a 52 increase over the average actual utilization for 2014-2016 While Contractors were exceeding the previous 116 goal this is primarily based on the fact that WSDOT previously requested a waiver to consider non-women-owned businesses and the waiver was not granted and effective until June 2017 (meaning that for 2014-2016 women were counted towards race-conscious goals and inevitably a higher overall percentage of DBE firms were utilized)

Contractors struggle to meet present DBE goals due to the relatively low availability of experienced and certified DBE firms By increasing the goal WSDOT is understandably trying to increase the participation of underrepresented firms Drastically increasing the goals (by over 5 of actual utilization) without concrete evidence that there is sufficient availability andor capability of such firms however will have the opposite effect Notably this lack of availability and capacity of DBE firms was discussed in detail in the Disparity Study For example the CHA Disparity Study notes a number of concerns of DBE firms while technically ldquoavailablerdquo with respect to the goal percentages are unable to meet the requirements necessary to fulfill the contract including purchasing the equipment necessary having available labor and ability to meet insurance and financing requirements Thus while there may be ldquoavailablerdquo firms there is not clear evidence (and if fact evidence to the contrary) that those available firms are capable and available to perform the majority of the FHWA-Funded contracts let by WSDOT

An additional example affecting DBE capability and availability that is not factored into the CHA Disparity Study or WSDOTrsquos Proposed GOAL is DBE ability to enter into Project Labor Agreements (ldquoPLAsrdquo) WSDOT has indicated their interest in pursuing a PLA AGC Members have raised concerns based on repeated experiences that many DBE firms due to the administrative and cost impacts refuse to enter into PLAs precluding those firms from performing certain work or increasing costs Again this lack of ability (or refusal) to perform should also be factored into WSDOTrsquos Proposed Goal which is not currently the case

b The Proposed Goal Does Not Account For The Current Non-Minority Woman Owned Business Waiver Still In Place

Second despite the significant increase WSDOT does not account for the current waiver of non-minority women owned businesses that remains in place As noted in WSDOTrsquos proposal comments WSDOT previously sought and received a waiver of the regulation that White females as a group are presumptively disadvantaged This waiver was heavily criticized by many including AGC and the results of the most recent CHA Disparity Study confirmed that White females are presumptively disadvantaged and do not enjoy a level playing field for USDOT-assisted contracts Therefore the CHA Disparity Study recommends that this group be returned to the status of goal credit eligibility WSDOT has sought a recession of the waiver but has not yet to our knowledge received a rescission of the waiver Nevertheless the 19 Proposed Goal still includes White women In fact of the 19 availability percentage White women represent 103 (over half) Accordingly for WSDOT to proceed with the 19 goal WSDOT must receive the rescission of the waiver for this goal to be even remotely possible to achieve If the rescission is not received the Proposed Goal must be adjusted

C The Proposed Goal Does Not Account For Availability Differences Across The State

Third the Proposed Goal does not account for availability difference across the state Eastern Washington contractors with an even scarcer pool of available and qualified DBE firms in the area as is the case now will be forced to subcontract to Western Washington firms paying transportation and per diem premiums for such work The CHA Disparity Study again provides numerous excerpts of anecdotal evidence demonstrating that the goals in Eastern Washington are too high A few of the contractor comments on the topic are as follows

When you apply those same goals to a different geographic region a different project site for a large firm to meet those goals is difficult because theres not necessarily the expertise in parts of the project that were submitting on

Theres very few DBEs over here [in Eastern Washington] Next year theres going to be even more work over here What are we going to do with all these goals We always meet the goals like I said youve got three four DBEs over here to do all the work and then they cant perform

There are just no [minority-owned] DBEs available in eastern Washington

See CHA Disparity Study at p 54 Again these are factors that should be taken into account in developing the Proposed Goal or at the very least its application WSDOTrsquos Proposed Goal however is silent as to this significant issue

When the lack of available firms with the capacity to perform significant DBE projects is coupled with the increased goals the price of WSDOT contracts will inevitably increase to the significant detriment of Washington taxpayers and the public entities Inevitably with a lack of available qualified firms the lack of competition will become evident and small qualifying contractorsrsquo prices will increase due to supply and demand principles as they become selected for projects and less able to take on additional work These increased DBE contract values will be passed on to the public agency and taxpayers which translates into fewer dollars available for the sorely needed and promised infrastructure upgrades In addition the instance of bid protests will inevitably increase potentially delaying projects and further diverting agency resources from badly needed infrastructure upgrades to resolving unnecessary disputes or rebidding the projects altogether

Finally faced with such drastic and potentially impossible requirements if adjustments are not made contractors may focus more on demonstrating good faith efforts Both a contractor who meets the required goal and a contractor that demonstrates good faith efforts are eligible for award It is likely that the contractor relying upon good faith effortsmdashwho will have a lower price than the other contractor who sacrificed price to actually meet the goalmdashwill be selected by the public agency This outcome will erode the total percentage participation of eligible firms and would clearly be inapposite of WSDOTrsquos intentions

3 Conclusion and Request

AGCrsquos members have asserted these and multiple other concerns Implementing an increased goal across the state and all contracts without clear evidence of available DBEs capable of performing the work and meeting the project requirements will have significant and far-reaching impacts on the construction industry many of which work against the aim of the Proposed Goal itself AGC requests WSDOT reconsider its Proposed Goal of 19 and make adjustments to account for the capability of DBE firms the lack of a rescission of the non-minority waiver and the lack of available DBE firms in parts of the state This Proposed Goal and its impacts on the construction industry will be irrevocable and will be to the detriment of taxpayers It is prudent to address these adjustments before implementing the Proposed Goal

Very truly yours

David DrsquoHondtCheryl Stewart Executive Vice President AGC of WashingtonExecutive Director Inland Northwest AGC

AGC of Washington bull 410 11th Avenue SE 203 Olympia WA 98501

Inland Northwest AGC bull 4935 E Trent Avenue Spokane WA 99212

image3jpeg

image1png

image2emf

image4png

image5jpeg

From Steve SmithTo WSDOT Disparity StudyCc Bayne JackieSubject 19 DBE RequirementDate Thursday December 14 2017 31947 PMAttachments DBE List and NAICS Listingpdf

Disparity Committee I recently read in The Daily Journal of Commerce that WSDOT plans to adopt a 19 DBEstandard for all FHWA funded projects early next year Our company S amp K Painting Inc is abridge painting company which is based in and works exclusively in Oregon and Washington Ihave been the owner of this firm since 1978 when it was first established My concerns aboutthe proposed 19 DBE requirement is as follows 1 There are very few opportunities for subcontract work on bridge repaint jobs These jobsare usually limited to cleaning and painting the bridge The only other facet of the project istraffic control which is almost always 3 or less of the project total cost The traffic controldoes provide a very good subcontracting opportunity 2 The NAISC code of 238320 includes bridge painting but also includes house painting wallcovering rust proofing etc which have almost no similarities to bridge painting When thiscode is used to determine the number of available firms (DBE or otherwise) that are availablefor bridge painting project this badly skews the numbers I would suggest that bridge paintingcontractors make up less than 5 of all firms in NAISC code 238320 3 If future WSDOT bridge painting projects require a 19 DBE participation A The qualified pool of DBE subcontractors available to submit pricing on any facetother than traffic control will be very limited I reviewed a list of 19 certified DBE firms listedunder painting at the WSDOT website and only recognized one firm from past projects B The number of prime bidders and competition will fall The state will incur highercosts due to this fact C Prime bidders will be forced to subcontract unqualified contractors just to be eligiblefor contract awards This will likely reduce the quality of the finished project Thank you for considering my concerns I may not have verbalized my thoughts as well as Iwould have liked but I have been in this business for almost 40 years and truly believe what Ihave said Sincerely

Steve Smith President

SampK Painting incP O BOx 390clacKamaS OregOn 97015Phone (503) 557-5544Fax (503) 557-5566Cell (503) 260-5280Steveskpaintingcom

From Lei WuTo Bayne JackieSubject comments on WSDOT proposed DBE goalDate Thursday December 14 2017 94925 PM

To Whom It May Concern

Below is my comments

The WSDOT recommended DBE Goal for FHWA contracts of 190 is a small andimportant increase that can further achieve equity in WSDOTFHWA contracting I am insupport of the 19 DBE Goal

I also want to express my appreciation for the thoroughness of the WSDOT Disparity studyand how the study disclosed the disparity in WSDOT contracts that do not have a DBE orWBE goal ndash further reinforcing that all women-owned firms and minority owned firms faceequity issues

I remain concerned with the methodology required by the Code of Federal Regulations andcase law because of the dependence on the availability of firms in the calculation Anunintended consequence of removing either gender or race from the goal is that many of thesefirms would go out of business the availability decreases and the formula then results in asmaller DBE goal

Thanks

Lei

Lei Wu PE AICP

Principal CSL Consulting

LeiWucsl-consultingnet

(425)562-6275

From Stephanie SimpkinsTo WSDOT Disparity StudySubject DBE Contracting goalsDate Wednesday November 29 2017 20259 PM

My name is Stephanie Simpkins and I own North Star Enterprises It is a large womanowned traffic control company located in Spokane Washington My mother founded thecompany in 1984 and I have worked in this family owned business most of my life Ipurchased the business from her in 2013 and have been sole owner since then My company thrived under the Disadvantaged Business Enterprise (DBE) Programimplemented by Washington Department of Transportation and administrated by United StatesDepartment of Transportation What started as a small business with one truck and a fewemployees has grown over the years to be one of the largest traffic control companies in thestate and employee countless people every construction season It has not been an easy roadover the years being a woman in the construction industry never is and it is hard to say wherewe would be now if it werenrsquot for the assistance of the DBE program As you know in June of 2017 majority women were removed from the DBE program basedon a disparity study conducted in 2012 On March 2014 Washington Department ofTransportation requested a wavier to remove majority women from the DBE program Thishas had an immediate and drastic impact on my business and all who work for me From themoment the waiver was approved and my company could no longer be used as a condition ofaward at bid time I began losing work Most recently the 2018 North Central Region ChipSeal which we have worked on for the last 10 years This contract provides work forapproximately 40 employees for the entire construction season I have already been told byseveral contractors that with such a high UDBE goal they wont even be able to consider mefor this project This loss along with several other smaller contracts to date are painting avery dismal future for my business With all of this turmoil surrounding the future of my business I find it frustrating to say theleast that WSDOT has chopped me off at the legs by not allowing my firm to count for theCOA but can use the little participation I may still contribute to help them reach their overallstate goal How is this fair If the contractors canrsquot utilize my business than neither shouldWSDOT As far as setting future state DBE contracting goals it looks as if the bar will beraised once again all while excluding the largest subset of useable DBErdquoS To me raising theoverall state goal at this time (which is already challenging to meet) with women DBErsquosexcluded from the program seems horribly ill timed

From Karen R BannishTo Bayne JackieSubject DBE GoalDate Tuesday December 5 2017 32549 PM

Hello Jackie ndash thank you for the webinar today concerning the proposed Overall DisadvantagedBusiness Enterprise Goal for the Federal Highway Administration I understanding the DisparityStudy much better now and checked the document you mentioned on the WSDOT website Pacific County is located in the Southwest corner of the State of Washington The tip of the LongBeach Peninsula would be 2 frac12 hours from Interstate 5 Our federal work primarily includes strictlyoverlay projects with 12 or fewer items of work included in the contract When bidding a project(our contracts are usually less than $500000) we sometimes received a single bid from the process Due to our proximity and the small cost for the work it is difficult to entice DBE participation Thereare simply no items of work that can be performed Having a mandatory DBE goal placed upon theproject in a rural area simply to meet the disparity guidelines will only increase the cost of theproject We feel the goals should be set in balance with the cost of the project and the items of work and notsimply directed to meet the overall goal

Karen BannishSenior Engineering TechnicianPacific County Department of Public Works211 North Commercial StreetRaymond WA 98577(360) 875-9368

From Dawn EgbertTo Bayne JackieSubject DBE Program Disparity StudyDate Tuesday December 5 2017 23825 PM

Hi JackieThank you for the great information on the call today You talked about the small works rosterbriefly We had a conversation in our office today about small contractors who are signed up on thePort of Vancouverrsquos small works roster Our team has had opportunity to talk to some of thecompanies on our roster who are women owned or minority owned businesses but they arenrsquotsigned up as a DBE firm When asked about that theyrsquove mentioned that they donrsquot want to fill outthe additional paperwork required to obtain the certification as a DBE As for the DBE goal at 19 it doesnrsquot seem to present an issue for the majority of our projects ndashespecially those where we would apply FHWA funds if granted However if we did happen to have aproject that didnrsquot include classifications of work where DBE certified participants are availablewould there still be an exception or a good faith efforts clause Thanks again for your time Dawn EgbertProcurement Services Manager3103 NW Lower River Road Vancouver WA 98660Direct 3609921102 | Cell 360448-9867 | Main 3606933611 | Fax 360735-1565degbertportvanusacom | wwwportvanusacom | available port properties Leadership | Stewardship | Partnership

From Feist MarleneTo WSDOT Disparity StudyCc Simmons Scott M Twohig KyleSubject Disparity Study Comments from City of SpokaneDate Friday December 15 2017 52226 PMAttachments image010png

image011pngimage012png

December 15 2017 Jackie BaynePolicy amp Reporting ManagerOffice of Equal OpportunityWashington State Department of TransportationPO Box 47314Olympia WA 98504-7314 RE Proposed DBE Contracting Goal for Highway Projects Dear Ms Bayne The City of Spokane would like to provide comments related to proposed DisadvantagedBusiness Enterprise Goal for Federal Highway Administration (FHWA) contracts by theWashington State Department of Transportation (WSDOT) Office of Equal Opportunity Manyof our projects receive funding from FHWA and as such the proposed new goals areapplicable to City work The City is supportive of the programrsquos purposemdashldquoto create a level playing field for firmsowned and operated by disadvantaged individuals wanting to participate in federally assistedhighway transit or aviation programsrdquo However the City is concerned about the ability to achieve the proposed utilization rate of upto 19 percent for DBEs in Eastern Washington considering the low number of DBEs in ourregion and the record construction under way in the City and in our region WSDOTrsquos DBE Program Disparity Study notes ldquoContractors in Eastern Washington repeatedlyreported that the goals on projects in their area are too highrdquo The Inland NorthwestAssociated General Contractors group notes that only about 12 DBEs in construction fields areavailable in the greater Spokane area Meanwhile the City has performed record construction in each of the last three years withproject totals hovering around $100 million Our City work has been bolstered by anaggressive program to improve water quality in the Spokane River Our local school districtsand our neighboring jurisdictions also have aggressive construction programs right now

Additionally we expect WSDOTrsquos work in this region to accelerate as North Spokane Corridor(NSC) construction proceeds At times our area is reaching the limits overall of our contractingcommunity the City has worked to release its projects in the first quarter of the year as muchas possible to lock in contractors and receive better pricing The capacity of existing DBEs in our region simply cannot meet that current high demand Some DBE firms are tempted to agree to more work in these times but we have found that insome cases DBEs have stretched themselves too thin On two recent City projects generalcontractors were unable to meet DBE goals as a result of DBE firms that couldnrsquot fulfill theircommitments for providing personnel or equipment It also seems implausible to expect DBEs from the West Side to mobilize teams to work on Cityof Spokane projects in large numbers In fact the Disparity Studyrsquos author responded at arecent meeting on this topic that a DBE from the West Side only very rarely completes workon the East Side of the state We would also be concerned about moving the good-paying jobs that construction providesoutside of our region The Cityrsquos median household income is $44350 considerably lower than theState of Washington MHI of $64129 and the Seattle MHI of $77351 Our leaders are working tocreate good-paying jobs for our citizens not export them to an already wealthier part of the state Additionally these projects are also funded with local dollars and our citizens expect their money toput their neighbors to work With the above considered the City is seeking

middot DBE goals for the 2018-2020 compliance period for Eastern Washington that arereflective of the current availability of DBE firms in our region

middot The re-inclusion of non-minority women owned DBEs in achieving DBE goals InSpokane non-minority women owned DBEs make up the majority of the availableDBEs And current information shows that women in Spokane overall still lag behindmen in opportunities and wages The Cityrsquos own ldquoGender and Racial Equityrdquo reportfrom 2016 noted that overall working women earned 783 percent of the earnings ofworking men in 2014 down from 827 percent in 2009 We need to lift up all women

middot The development of WSDOT programs to encourage the growth of existing andnew DBEs who can be used on street and highway projects We are encouraged by theproposed mentorproteacutegeacute program to increase the number and capacity of DBEs inEastern Washington Programs that address other barriers such as assistance withcompleting documentation or access to bonding capacity also could aid growth ofDBEs

middot The ability for WSDOT to adjust goals on a project if a selected DBE is unable tocomplete its commitments on a project This would help enable our contractors totake a chance on a new or inexperienced DBE to complete work

middot Recognition of local programs that strive to increase diversity in the work force Forexample the City operates a robust apprenticeship program that requires 15 percentof the labor hours on public works jobs greater than $600000 to be performed byapprentices The apprentice programs in our region are stepping up recruitmentefforts and are specifically seeking to recruit more youth women and minorities intoapprentice slots

As we seek to achieve the goal of increasing participation in street and highway constructionby companies owned by disadvantaged individuals we must also acknowledge that businessdevelopment and growth happens over time We must lay the groundwork now to build abase of DBEs that can help us achieve higher utilization goals over time Sincerely Marlene FeistDirector of Strategic DevelopmentPublic Works amp UtilitiesCity of Spokane

Marlene Feist | City of Spokane | Public Works Director of Strategic Development5096256505 | cell 5097109214 | mfeistspokanecityorg | spokanecityorg

From Hall MattTo WSDOT Disparity StudySubject FW WSDOT News - WSDOT seeks comments on proposed DBE contracting goal for highway projectsDate Friday December 15 2017 11956 PMAttachments WSDOT proposed DBE goal through 2020pdf

From Hall Matt Sent Friday December 15 2017 117 PMTo BayneJwsdotwagovCc Keniston Rick (KenistRwsdotwagov) MolyneKwsdotwagov SusanWilsonclarkwagovSubject WSDOT News - WSDOT seeks comments on proposed DBE contracting goal for highwayprojects Hello Jackie Please see our comments attached regarding the WSDOT proposed DBE goals Thanks for the opportunity to provide comments Matt HallClark County Public Works Washington State Department of Transportation ndash NEWSHeadquarters ndash 310 Maple Park Avenue SE ndash Olympia WA 98504-7314 ndash 360 705-7000 FOR IMMEDIATE RELEASEOct 30 2017 Contact Jackie Bayne Office of Equal Opportunity 360 705-7084

WSDOT seeks comments on proposed DBEcontracting goal for highway projectsComments accepted through Dec 15OLYMPIA ndash Contractors trade and labor organizations small and disadvantaged businessesand all others who may be interested in working with the Washington State Department ofTransportation are invited to comment on the agencyrsquos proposed Disadvantaged BusinessEnterprise goal for Federal Highway Administration contractsDBE goals for transportation projects that receive federal funds represent a percentage of thevalue of work in which minority- and women-owned businesses should participate WSDOTis proposing a 19 percent overall DBE participation goal on Federal Highway Administration-funded projects for federal fiscal years 2018 through 2020Once submitted to FHWA early next year the goal will be effective through Sept 30 2020The purpose of the DBE program is to create a level playing field for firms owned andoperated by disadvantaged individuals wanting to participate in federally assisted highwaytransit and aviation programsConnecting with communitiesWSDOT will host a series of public meetings to provide opportunities for individuals tocomment in person

Spokane

2 ndash 4 pm Tuesday Nov 28WSDOT Eastern Region Headquarters2714 N Mayfair St Spokane

Vancouver

2 ndash 4 pm Wednesday Nov 29WSDOT Vancouver Headquarters11018 NE 51st Circle Vancouver

Seattle

2 ndash 4 pm Thursday Dec 7WSDOT Northwest Region Headquarters15700 Dayton Ave N Shoreline

Other ways to provide commentThose who are unable to attend one of the meetings can participate in a no-cost webinar from230 ndash 430 pm Tuesday Dec 5 Registration for the webinar is required Those interested inparticipating should email DisparityStudywsdotwagovWritten comments can also be submitted by mail or emailJackie Bayne Policy amp Reporting ManagerWashington State Department of TransportationOffice of Equal OpportunityPO Box 47314Olympia WA 98504-7314DisparityStudywsdotwagovDocuments detailing the methodology used for determining the FHWA DBE goals areavailable for review at all WSDOT region headquarters offices and at the TransportationBuilding 310 Maple Park Ave SE Olympia They are also available online atwwwwsdotwagovequalopportunityWSDOT will consider all written comments received through Friday Dec 15 2017 Hyperlinks within this release

WSDOT Region offices wwwwsdotwagovContactofficelocationhtmregion

WSDOT keeps people businesses and the economy moving by operating and improving the statestransportation systems To learn more about what were doing go to wwwwsdotwagovnews forpictures videos news and blogs Real time traffic information is available at wwwwsdotcomtraffic or bydialing 511 Americans with Disabilities Act (ADA) InformationAccommodation requests for people with disabilities can be made by contacting the WSDOTDiversityADA Affairs team at wsdotadawsdotwagov or by calling toll-free 855-362-4ADA (4232)Persons who are deaf or hard of hearing may make a request by calling the Washington State Relay at711 Title VI Statement to Public It is WSDOTrsquos policy to assure that no person shall on the grounds ofrace color national origin or sex as provided by Title VI of the Civil Rights Act of 1964 be excluded fromparticipation in be denied the benefits of or be otherwise discriminated against under any of its federallyfunded programs and activities Any person who believes his or her Title VI protection has been violatedmay file a complaint with WSDOTrsquos Office of Equal Opportunity For additional information regarding Title

VI complaint procedures andor information regarding our non-discrimination obligations please contactOEOrsquos Title VI Coordinator at 360-705-7090 To unsubscribe to WSDOT media releases please reply and type REMOVE in the subject line

This e-mail and related attachments and any response may be subject to public disclosure under state law

From Cochrane EmilieTo WSDOT Disparity StudyCc Eugenis Susan Cowlitz Co Public Works - Brad BastinSubject Proposed DBE GoalsDate Thursday December 14 2017 85006 AMAttachments image002png

DBE Goals - Commentspdf

Please see the attached letter with comments regarding the proposed DBE Goals Ahard copy will be sent out today

Thanks

Emilie CochraneCowlitz County Public Works1600 ndash 13th Avenue SKelso WA 98626360-577-3030 ext 6523

From Michelle WolcottTo Bayne JackieCc Robideau Christopher LSubject RE DBE Contracting Goal CommentsDate Tuesday November 7 2017 65448 AMAttachments image001png

Thank you JackieWhat a relief to know that we have been heard and are not the only small business facing thisstruggle Your email is comforting

Yes you can provide us with additional assistanceLet me introduce my boss and Senior Vice President of Red Plains Professional Chris Robideau

Chris will be your contact from here since I will be leaving the company November 17th As a WA DBE we are ldquoeligible for limited DBE Support Services (SS) funding when funds becomeavailablerdquo When will this happen And are we registered or on a list to receive fundingIs the WSDOT ICR Training a prerequisite for the funding Or just helpful knowledge

Thank you for your time Jackie I will follow through with the training

Michelle Wolcott EIT Quality Control Engineer

2103 NE 129th Street Suite 201 Vancouver WA 98686 Office (360) 448-7999 Fax (360) 258-0274

wwwred-plainscom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Monday November 6 2017 332 PMTo Michelle Wolcott ltMichelleWolcottred-plainscomgtSubject RE DBE Contracting Goal Comments

Hi Michelle

Thank you for your interest in doing business with WSDOT I apologize for the lack of informationyou have come up against in your attempts to attain access to WSDOT ICR program

As you may well know WSDOT has recently completed a state wide agency specific diversity studyAnecdotal comments submitted with the study concur with your experience Not only did somerespondents find it difficult to become prequalified they also commented that the required indirectrate of 110 percent is too low to be profitable These requirements are currently under advisementby WSDOT and new DBE program requirements are currently in the process of seeking public input

As you are an OMWBE certified DBE in Washington State you will be eligible for limited DBE SupportServices (SS) funding when these funds become available At that time funds may become availableto assist you in your struggle to attain ICR eligibility Here is a link to WSDOTrsquos Indirect Cost RateTraining httpswwwwsdotwagovAuditICRTraininghtm If you would like me to find additionaltraining or information please let me know

If I can provide additional assistance of information please let me know

Best Regards

Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Michelle Wolcott [mailtoMichelleWolcottred-plainscom] Sent Tuesday October 31 2017 835 AMTo WSDOT Disparity Study ltDisparityStudyWSDOTWAGOVgtSubject DBE Contracting Goal Comments

HelloI have been in contact with WSDOT for 6 months sharing my disparaging story of beinga small DBE unable to submit SOQs for projects requiring a WSDOT Audited IndirectCost Rate Approval We do not have an in-house accountant and our outsideaccountant has explained to get all the paperwork together for WSDOT would take 40hours of work $9000 annually We cannot justify this cost to submit on a project thatwe may not acquire We have been directed to seek financial assistance from WSDOT Federal SBA andWashington State Office for Women and Minority Owned Enterprises all of whichprovided negative responses

As a DBE business in 11 states we are supporting the 19 incentive for federallyfunded contracts but we are frustrated in the fact that we will not be one of the luckyfew to participateWe have been in business 20 years From our Vancouver Washington office our clientsare the Native American tribes across the country with all contracts federally funded This summer alone the WSDOT ICR Approval has squashed our ability to submit on twoprojects that we were perfectly qualified to performI have attached previous emails to show a sample of who I have been dealing with

Thank you

Michelle Wolcott EIT Quality Control Engineer

ltimage001pnggt

2103 NE 129th Street Suite 201 Vancouver WA 98686 Office (360) 448-7999 Fax (360) 258-0274 wwwred-plainscom

From Michelle Wolcott Sent Monday July 10 2017 954 AMTo Harvey Schatzie ltHarveySwsdotwagovgtSubject RE WSDOT Indirect Cost Rate Process

Good Morning Schatzie

This is Michelle Wolcott from Red We spoke Friday June 30th about the ICRprocess and you were very encouraging I relayed the information to my boss who ishere in Vancouver then he shared with the president bookkeeper and our accountantin Oklahoma We had FAR compliance with Oklahoma DOT in 2015 so we are noteligible for the Safe Harbor Program Our account said our timekeeping system doesnot breakdown the hours and pay in the format WSDOT wants to have it presented andto get the documents in order would take the CPA and an assistant $9000 in paidhours of work It turns out this would have to be annually The other option is to hirean outside CPA firm to do the audit for us at $20000 annually

Our president said in the past we received funding assistance from the Stateof Oklahoma to get our ICR approval Does WSDOT offer any financial assistance for small businesses to reach compliance We are also a DBE in WA I have requested the same information from WA PTAC at theVancouver Chamber of Commerce and from WA Office of Minority and Women OwnedBusiness Enterprises and they both said there was nothing but suggested to askWSDOTThank you for your helpMichelle Wolcott EIT

Hello Michelle sorry but I am not aware of any grants But I was looking at this andthere is a POC at the bottom you may try to discuss the audit issuesHollyHolly BoehmeBusiness Opportunity Specialist | 8(a) Business Development ProgramUS Small Business Administration bull Seattle District Office

Hello Michelle -

Thank you for your email Im not aware of any funding available for thispurpose but do agree its quite a bit for a DBE firm to have as an expense Mostof the firms I work with do a lot more work on the Oregon side so perhaps thereare programs available that I just havent heard of Im copying my colleagueHoly Boehme in our Seattle District Office to see if they are aware of any suchassistance

Holly might there be some small business incubators or other resources availablein WA to help a small firm with the expense of getting a WSDOT AuditedIndirect Cost Rate approval Please reply all with anything you may have

Thank you

Yuri Yoshida Dyson Business Opportunity SpecialistUS SMALL BUSINESS ADMINISTRATION Portland District OfficePhone 503-326-6692 Fax 202-292-3872 wwwsbagovor

From Troy HalbergTo Bayne JackieSubject Re DBE Goal CommentsDate Wednesday December 13 2017 35533 PM

JackieToday was another example of why the goals should not be raised There were 2 jobs which Iwas low on and did not get due to the high goals This is exactly what will happen when thegoals get raised The first job was the 9180 Anacortes Ferry Paving Northeast Electric $244924 and UDBE $318000 Second job was the 9172 SR 9 East Junction Job Northeast Electric $68503 and UDBE $76300

Does this seem like a good way to spend the tax payer money I do not see how we are tosurvive if the goals get to 21

Thanks

Troy HalbergOffice360-225-7004Cell360-931-3990Fax360-225-7001

On Thu Nov 30 2017 at 1131 AM Bayne Jackie ltBayneJwsdotwagovgt wrote

Good Morning Troy

Thank you for taking the time to provide us with your experiences with the DBE Program TheWashington State Department of Transportation takes the public involvement process veryseriously and your comments will be taken into consideration prior to a final decision regardingthe overall DBE program goal

If I can be of further assistance please let me know

Best Regards

Jackie Bayne

Policy and Reporting Manager

WSDOT Office of Equal Opportunity

Work (360) 705-7084

Cell (360) 338-5783

BayneJwsdotwagov

From Troy Halberg [mailtotroyhnellcnet] Sent Wednesday November 29 2017 144 PMTo WSDOT Disparity Study ltDisparityStudyWSDOTWAGOVgtSubject DBE Goal Comments

If these goals are to be set that high this would make us as a non DBE small contractor at amajor disadvantage With these high of goals this is like handing all of the DBE electricalcontractors every job These general contractors will have no option but to use thembecause of the goals This should not go into effect We have been low on several jobs in thepast and have not gotten them do to the goals being 18 When this goes on it puts all therest of us contractors at a disadvantage Please consider the smaller non DBE contractorsthat are looking to survive as well

Thanks

Troy Halberg

Office360-225-7004

Cell360-931-3990

Fax360-225-7001

From Daniel Seydel IITo Bayne JackieCc Key Earl daneiwashingtonorg Nadeem Ismail Mussie Tewelde (mteweldehydro2geotechcom)

graceflyrightaolcom Mary Wenner Watkinson LarrySubject Re Seydel Dan - WSDOT Disparity Study Presentation Public TestimonyDate Friday December 8 2017 30323 PM

Jackie

It was my hope that the comments would be put into record I was also hoping that you wouldnot have to be the one having to formulate responses for each clarification If that is the caseI know you are swamped and will then I just ask my comments be only part of the recordHowever if there is dedicated staff that is going to be compiling and responding to theclarification then the below questions would be the priorities of most interest

These were questions unrelated to the disparity study and hopefully should be doable

1) Do you have any reports on your outcomes from the past 5 years on DBE support servicesand specific key performance measures from previous years funding (ie how many firmsutilized what was the objectives were objectives met did outcomes meet total satisfaction ifnot why next steps what was the firms capacity before and after services were performed (iesales employees bonding if applicable insurance equipment line of credit if applicablenumbertype of customers how are they doing now etc))

2) What other changes or improvements other than allowing DBES to select their own serviceproviders and a staff change will be a part of this new program

3) Was consideration to provide the new mentor protege consultant rather than separating theactivities into support services andor technical assistance

Disparity study clarifications

1) Will WSDOT consider sponsoring legislation to support the policy changes and goalincreases to insure manditory goals wont be necessary

a) If not what measures will you grant primes to operate outside the box (ie entertain bestvalue over low bid modify responsiveness by subs to require adherence to meeting voluntarygoals developing standards around federally funded gccm and other low bid procurementsthat give powers to primes to meet objectives including but not limited to mentor protegerelationships joint ventures bond waiving techniques cash flow assistance material andequipment acquisition manufacturer development specifications that have only DBES orinclude equal number of DBES as non DBES as approved installers etc)

2) Will the disparity study consultant be available for implementation or information gatheringfrom other regions

5) Will WSDOT be hiring more diverse staff amp professionaltechnical service providers inother departments outside OEO to insure policies commitments and evaluations areperformed in manner that improves diversity that reflects the communities WSDOT serves bythoughtful and legal efforts increase participation thus creating successful outcomes includingpartnerships and collaborations

Thank you and Merry Christmas

Hi Dan

Thank you for providing such thoughtful public comments questions and testimony

Regarding your public testimony below - I do not believe I am not able to answer questions ifthey are public comments Please let me know what part of this email you would likeclarification on and what part you would like considered public testimony

I appreciate your thoughtful consideration of WSDOTrsquos implementation of our civil rightsprograms

Best Regards

Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

DIDaniel Seydel IIFyi Daniel J Seydel II Platinum Group LLC 2064060844 f) 2062999934wwwplatinumbusinessgroupcom Small Business is the Answer FREE TRAINING FORENTREPRENEURS amp JOB SEEKERS - Polish your skills or make your firm standout thanksto the EntrepreneurialThu 233pDI

Daniel Seydel IIThu 1272017 1123 AMInbox Sent ItemsShow all 7 recipientsTobaynejwsdotwagov ltBayneJwsdotwagovgtJackie

Per your request below are my questions and comments some of which were verbally sharedyesterday

Congratulations on receiving the blessing of additional technical assistance dollars andcompleting the DBE Disparity Study per your report

1) Do you have any reports on your outcomes from the past 5 years on DBE support servicesand specific key performance measures from previous years funding (ie how many firmsutilized what was the objectives were objectives met did outcomes meet total satisfaction ifnot why next steps what was the firms capacity before and after services were performed (ie

sales employees bonding if applicable insurance equipment line of credit if applicablenumbertype of customers how are they doing now etc))

2) What other changes or improvements other than allowing DBES to select their own serviceproviders and a staff change will be a part of this new program

3) Was consideration to provide the new mentor protege consultant rather than separating theactivities into support services andor technical assistance

Disparity study clarifications andor comments

1) Will WSDOT consider sponsoring legislation to support the policy changes and goalincreases to insure manditory goals wont be necessary

a) If not what measures will you grant primes to operate outside the box (ie entertain bestvalue over low bid modify responsiveness by subs to require adherence to meeting voluntarygoals developing standards around federally funded gccm and other low bid procurementsthat give powers to primes to meet objectives including but not limited to mentor protegerelationships joint ventures bond waiving techniques cash flow assistance material andequipment acquisition manufacturer development specifications that have only DBES orinclude equal number of DBES as non DBES as approved installers etc)

2) Will the disparity study consultant be available for implementation or information gatheringfrom other regions

3) What lessons did WSDOT learn that it did not know from the other study(s)

4) What would WSDOT do different (ie scope time line process approach etc)

5) Will WSDOT be hiring more diverse staff amp professionaltechnical service providers inother departments outside OEO to insure policies commitments and evaluations areperformed in manner that improves diversity that reflects the communities WSDOT serves bythoughtful and legal efforts increase participation thus creating successful outcomes includingpartnerships and collaborations

Daniel J Seydel IIPlatinum Group LLC 2064060844f) 2062999934wwwplatinumbusinessgroupcom

Small Business is the Answer

FREE TRAINING FOR ENTREPRENEURS amp JOB SEEKERS - Polish your skills or makeyour firm standout thanks to the Entrepreneurial Institute of Washington

httpswwwyoutubecomchannelUCKL5YeVxL29HnNxqnb6hmXA

LIKE US on FaceBook if an Active Professional Development workshop provided by EIW

Construction University helps your firm or has benefited you

httpswwwfacebookcomEIWashingtonref=hl

From Bayne Jackie ltBayneJwsdotwagovgtSent Friday December 8 2017 10139 PMTo Daniel Seydel IICc Key Earl daneiwashingtonorg Nadeem Ismail Mussie Tewelde(mteweldehydro2geotechcom) graceflyrightaolcom Mary Wenner Watkinson LarrySubject RE Seydel Dan - WSDOT Disparity Study Presentation Public Testimony Hi Dan Thank you for providing such thoughtful public comments questions and testimony Regarding your public testimony below - I do not believe I am not able to answer questions if theyare public comments Please let me know what part of this email you would like clarification on andwhat part you would like considered public testimony I appreciate your thoughtful consideration of WSDOTrsquos implementation of our civil rights programs Best Regards Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov From Daniel Seydel II [mailtodanplatinumbusinessgroupcom] Sent Thursday December 7 2017 1123 AMTo Bayne Jackie ltBayneJwsdotwagovgtCc Key Earl ltKeyEwsdotwagovgt daneiwashingtonorg Nadeem Ismailltnipaintingearthlinknetgt Mussie Tewelde (mteweldehydro2geotechcom)ltmteweldehydro2geotechcomgt graceflyrightaolcom Mary Wennerltmwenn0108yahoocomgtSubject Seydel Dan - WSDOT Disparity Study Presentation Public Testimony Jackie

Per your request below are my questions and comments some of which were verbally sharedyesterday

Congratulations on receiving the blessing of additional technical assistance dollars andcompleting the DBE Disparity Study per your report

1) Do you have any reports on your outcomes from the past 5 years on DBE support servicesand specific key performance measures from previous years funding (ie how many firmsutilized what was the objectives were objectives met did outcomes meet total satisfaction ifnot why next steps what was the firms capacity before and after services were performed (iesales employees bonding if applicable insurance equipment line of credit if applicablenumbertype of customers how are they doing now etc))

2) What other changes or improvements other than allowing DBES to select their own serviceproviders and a staff change will be a part of this new program

3) Was consideration to provide the new mentor protege consultant rather than separating theactivities into support services andor technical assistance

Disparity study clarifications andor comments

1) Will WSDOT consider sponsoring legislation to support the policy changes and goalincreases to insure manditory goals wont be necessary

a) If not what measures will you grant primes to operate outside the box (ie entertain bestvalue over low bid modify responsiveness by subs to require adherence to meeting voluntarygoals developing standards around federally funded gccm and other low bid procurementsthat give powers to primes to meet objectives including but not limited to mentor protegerelationships joint ventures bond waiving techniques cash flow assistance material andequipment acquisition manufacturer development specifications that have only DBES orinclude equal number of DBES as non DBES as approved installers etc)

2) Will the disparity study consultant be available for implementation or information gatheringfrom other regions

3) What lessons did WSDOT learn that it did not know from the other study(s)

4) What would WSDOT do different (ie scope time line process approach etc)

5) Will WSDOT be hiring more diverse staff amp professionaltechnical service providers inother departments outside OEO to insure policies commitments and evaluations areperformed in manner that improves diversity that reflects the communities WSDOT serves bythoughtful and legal efforts increase participation thus creating successful outcomes includingpartnerships and collaborations

Thank you for your hard work

Daniel J Seydel IIPlatinum Group LLC2064060844f) 2062999934wwwplatinumbusinessgroupcom

Small Business is the Answer

FREE TRAINING FOR ENTREPRENEURS amp JOB SEEKERS - Polish your skills or makeyour firm standout thanks to the Entrepreneurial Institute of Washington

httpswwwyoutubecomchannelUCKL5YeVxL29HnNxqnb6hmXA

LIKE US on FaceBook if an Active Professional Development workshop provided by EIWConstruction University helps your firm or has benefited you

httpswwwfacebookcomEIWashingtonref=hl

From Erin EhlingerTo Bayne JackieSubject Support for WSDOTs proposed DBE goalDate Wednesday December 13 2017 115417 AM

I am writing to support the WSDOT recommended DBE Goal for FHWA contracts of 190 I also want to express my appreciation for the thoroughness of the WSDOT Disparity study and howthe study disclosed the disparity in WSDOT contracts that do not have a DBE or WBE goal ndash furtherreinforcing that all women-owned firms and minority owned firms face equity issues I remain concerned with the methodology required by the Code of Federal Regulations and case lawbecause of the dependence on the availability of firms in the calculation An unintendedconsequence of removing either gender or race from the goal is that many of these firms would goout of business the availability decreases and the formula then results in a smaller DBE goal Pleaselet me know how I can help influence a change to the CFR Thank you Erin Ehlinger

Erin Ehlinger PEPresident

24036 SE 47th StSammamish WA 98029erinehlingersmartcitytrafficcom425-221-0320

From Jackie EtterTo WSDOT Disparity StudySubject Why we need mandatory goalsDate Friday December 1 2017 61859 PM

As a DBE participating in bidding process I have found that regardless of the language which claims to insurethat disadvantaged business enterprises shall not be discriminated against the only way to ensure that this does nothappen is by mandating affirmative action goals Having been overlooked time and time again because of my gender when I have submitted bids that are verycompetitive with other bidders is very frustrating I have had many instances of companies using my price to getmy non DBE competitors to lower theirs The voluntary or laudatory DBE goals do nothing to ensure a level playing fieldThe only way to ensure non-discrimination is through mandatory goals

Jackie EtterWest Star Construction of Spokane

Sent from my iPhone

From Claudia HirscheyTo Key Earl Bayne JackieSubject WSDOT DBE Goal - Comment in supportDate Tuesday December 12 2017 61937 PM

Dear Earl and Jackie The WSDOT recommended DBE Goal for FHWA contracts of 190 is a small and important increasethat can further achieve equity in WSDOTFHWA contracting I am in support of the 19 DBE Goal I also want to express my appreciation for the thoroughness of the WSDOT Disparity study and howthe study disclosed the disparity in WSDOT contracts that do not have a DBE or WBE goal ndash furtherreinforcing that all women-owned firms and minority owned firms face equity issues I remain concerned with the methodology required by the Code of Federal Regulations and case lawbecause of the dependence on the availability of firms in the calculation An unintendedconsequence of removing either gender or race from the goal is that many of these firms would goout of business the availability decreases and the formula then results in a smaller DBE goal Sincerely Claudia S Hirschey PETransportation Consulting Servicesclaudiahirscheycomcastnethttphirscheytcscom2068564988 Mobile

From Nate ThomasTo WSDOT Disparity StudySubject WSDOT Proposes DBE goal of 19Date Thursday December 7 2017 42720 PM

The WSDOT should look into similar ways the Federal Gov has handled the equal opportunity forthose that fall under the DBE status and set aside specific projects for the DBErsquos and moreimportantly UDBErsquos so these companies have better chance of landing contracts Maybe a lot 10 ofthe DBE goal to set aside for only DBEs and other 9 goal met as it is done currently with COA onlarger contracts Nate ThomasSenior EstimatorD 5095688085 | C 5099941156331 North Fancher Road | Spokane WA | 99212

The information contained in this email including any attachments is confidential and may beprivileged It is intended only for the person or entity to which it is addressed and no waiver isintended by sending this email If the reader is not the intended recipient you are herebynotified that any review retransmission dissemination or other use of or taking any action inreliance upon this information is strictly prohibited If you have received this email in errorkindly notify the sender by reply email and delete the original message from any computerThank You

From Brian FujiiTo WSDOT Disparity StudySubject WSDOT propsed DBE GoalsDate Thursday December 7 2017 110638 AM

Good morning Jackie

I wanted to comment on WSDOTs proposed DBE goal to 19 I believe WSDOTs plan toincrease the overall DBE goal to 19 will provide greater opportunities for DBE contractorsin different disciplines to participate in federally funded contracts

Without the new DBE requirement and with Proposition 200 there are limited opportunitiesfor DBE contractors in disciplines different than the typical trucking flagging and rebar Inaddition there are no incentives for general contractors to go out beyond the usual truckingflagging and rebar DBE subcontractors

Increasing the DBE goals will provide opportunities for different DBE contractors in differentdisciplines to participate in WSDOT federally funded projects

Thank you for your time

RespectfullyBrian FujiiPresident Subsurface ConstructionP 2063836478F 2069604639MDBE 4M0024998

From Forman StephanieTo Bayne JackieCc Millar Roger christinenhanmailhousegov Claudia Hirschey Sarah Corbin Jiang Yingle

efaulknerenviroissuescom Diana Giraldo Kelly CheesemanSubject WTS - Disparity Study Comment LetterDate Friday December 15 2017 71020 PMAttachments 2017_Dec 15_WTSCommentLetter_WSDOT DBE Goalpdf

Dear Ms Bayne Please find our attached letter which summarizes the WTS Puget Sound Chapterrsquos support foradvancement of women in transportation and our comment letter regarding the recent DisparityStudy Please feel free to contact me if you have any questions or would like to discuss Sincerely Stephanie S Forman PEWTS Puget Sound President Transportation Project Manager

929 108th Avenue NE Suite 1300Bellevue WA 98004D 4254681548 M 2062291745stephanieformanhdrinccom

December 15 2017

Jackie Bayne Policy and Reporting Manager

Office of Equal Opportunity

Washington State Department of Transportation

PO Box 47314

Olympia WA 98504-7314

Dear Ms Bayne

On behalf of the Puget Sound Chapter of Womenrsquos Transportation Seminar (WTS) we would

like to thank the Washington State Department of Transportation for presenting to our

organization the DBE Disparity Study results We very much appreciated the presentation by Earl

Key Director of WSDOTrsquos Office of Equal Opportunity Teresa Berntsen (Director Office of Minority

and Womens Business Enterprises) as well as Leslie Jones (Director Sound Transit Office of Small

Business Development and Labor Compliance)

Following a review of the WSDOT Disparity Study and as a result of consultation with WTS

International we would like to provide WSDOT with our comments for your consideration

As you know WTS is an organization focused exclusively on attracting retaining and advancing

women in transportation By the year 2018 there will be thousands of vacancies in the

transportation industry for qualified professionals and while women account for more than half of

the worldrsquos workforce they are a very small minority in transportation disciplines

We are pleased that the outcome of the 2017 Disparity Study that recognizes the on-going barriers

for DBEs including women-owned businesses in transportation The WSDOT recommended DBE

Goal of 190 is a small and important increase that can further achieve equity in WSDOTFHWA

contracting We are also pleased that the 2017 Disparity Study has documented the disparity in

WSDOT contracts that do not have a DBE or WBE goal ndash further reinforcing that all women-owned

firms and minority owned firms face equity issues We are encouraged that the WSDOT has asked

FHWA to rescind the 2016 waiver

While WTSrsquo mission is specific to the advancement of women we are a race-neutral organization To

this end we are also deeply concerned about the underutilization of minority owned firms There is

no equity or ldquofair playing fieldrdquo without equity for all gender and races We remained concerned with

the methodology required by the Code of Federal Regulations and case law because of the

dependence on the availability of firms in the calculation An unintended consequence of removing

either gender or race from the goal is that many of these firms would go out of business the

availability decreases and the formula then results in a smaller DBE goal This consequence is

contrary to our mission

We look forward to our continued participation in WSDOTrsquos DBE advisory group we are anticipating

notice that the 2016 waiver has been rescinded and how we can work together to continue

advancing minority and women-owned firms in the transportation field

Sincerely

WTS Puget Sound Chapter

Stephanie Forman

President

C Roger Millar Secretary WSDOT

C Representative Adam Smith 9th Congressional District Washington co Christine Nhan

WTS Puget Sound Chapter

PO Box 3461

Bellevue Washington 98009

From Dave Gent - WAPATo Bayne JackieCc Tom GaetzSubject WAPA Public Comments - RE WSDOT FHWA Disadvantaged Business Enterprise Proposed GoalDate Friday December 15 2017 14119 PMAttachments 12152017 DBE Proposed Goal - WAPA Public Comments Letterpdf

Good afternoon Jackie Please find attached WAPArsquos ldquofor the public recordrdquo comments with respect to WSDOTrsquos proposedDBE Goals FHWA funded work I assume that the Master DBE Directory was not sent to you this week so as a result we were notable to review the directory before the close of the public comment period That fact is noted withinour comment letter Thank you for your efforts Have a good weekend

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Friday December 8 2017 1219 PMTo Dave Gent - WAPA ltdavegentasphaltwacomgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hello Dave WSDOT did not take possession of this directory as part of our review process We will provide youwith the records without submitting a formal request However we need to get them from theconsultant first I will hopefully have them to provide next week I will keep you updated on therequest Have a nice weekend Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal Opportunity

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

December 15 2017

Jackie Bayne Policy Manager WSDOT Office of Equal Opportunity Delivered via e-mail to BayneJwsdotwagov RE Public Comment (as requested) to Proposed Overall DBE Goal for the FHWA (2018 ndash 2020) Ms Bayne Thank you for your presentation via webinar on December 5 2017 outlining WSDOTrsquos evaluation process used to determine the proposed overall DBE goal for the FHWA Thank you also for the Colette Holt amp Associates (CHA) DBE Advisory Group presentation made on September 14 2017 Both presentations helped to distill the findings of the 2017 Disparity Study produced by CHA In response to Earl Keyrsquos initial informal request to comment on the proposed overall DBE goal made during the DBE Advisory Committee teleconference held on October 12th we provided a list of reasons that we believe justify a lower DBE goal than is now being proposed Our initial response to Mr Keyrsquos request did not serve to influence WSDOT and the current proposed goal remains at 190 The arguments provided on October 12th against the significant increase in the proposed DBE goal (versus the previous goal and recent historic DBE participation) are repeated and supplemented below and will serve as the Asphalt Pavement Associationrsquos (WAPArsquos) official public comments

In concert with WSDOT and the OWMBE WAPA and the construction firms that WAPA represents have demonstrated a commitment to the principals of equal opportunity for all ldquoready willing and ablerdquo firms for the entire history that our DBE program has been in place WAPA has continuously demonstrated its commitment to the goals of the DBE program and for increasing the representation of disadvantaged groups within our industry as both workers and owners of firms Please recognize that WAPArsquos oversight and critique of the DBE program has always attempted to balance the principals of fair and open competition with the practical aspects of the low bid compressed schedule high performance standards demanded within the WSDOT marketplace Our comments below are meant to enhance WSDOTrsquos and OWMBErsquos understanding of the market and to hopefully have WSDOT fully consider all of the dynamics that are at play when proposing its Triennial DBE goal for FHWA projects Current DBE Capacity vs Historically Robust Market In advocating for a realistic and defensible DBE goal it has always been WAPArsquos position that it is paramount that the realities of the marketplace and true certified DBE subcontracting capacity should be a primary standard While a ldquostretchrdquo goal may appear to be progressive on its face it comes with consequences for all of the parties involved in the WSDOT federal aid contracting arena To balance the dynamics of the WSDOT contracting system the DBE goal should be tempered with the realities of the market and with a true measure of the underlying effectiveness of the DBE support services available to contractors

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 2 of 6 The first point of fact that has not been given any apparent consideration by WSDOT in its evaluation of the current capacity of certified DBErsquos is that there is an historically robust workload scheduled to be performed in the 2017 through 2022 time-frame particularly in the Puget Sound ldquoEverett to Olympiardquo corridor By WSDOTrsquos own estimates (see Attachment A) public works construction project starts in the 2018 to 2022 time-frame in this region will exceed $333 billion (B) counting the work projected from just five public entities WSDOT will be taking a decidedly ldquoback seatrdquo role during this period to Sound Transit which will have construction project starts of $226B vs WSDOTrsquos projected volume of $67B WSDOTrsquos summary publication titled Washington State Department of Transportations Proposed Federal Highway Administration Triennium Disadvantaged Business Enterprise Goal Federal Fiscal Years 2018-2020 states correctly that ldquoIncluded among the types of evidence that must be considered are the current capacity of DBEs to perform work on WSDOTrsquos federally-assisted contracts as measured by the volume of work DBEs have performed in recent yearshelliprdquo (Step Two Adjustment discussion) With the Sound Transit program being over 300 larger than the total WSDOT program in this region a sober assessment of true certified DBE capacity in the next three years needs to be considered by WSDOT If the huge construction boom over the next five years does not prompt a Step Two Adjustment then it becomes obvious that the realities of the market are being ignored by WSDOT for DBE goal setting Put another way if the 2018 through 2022 level of contracting activity does not warrant a goal adjustment what will DBE Access Barriers Not Yet Addressed The CHA 2017 Disparity Study points out multiple recommendations in Section VII that impact DBE participation and access to the market Assessments relating to those impacts and the state of maturity in addressing the CHA recommendations should be considered when assessing the DBE goal Many of the CHA recommendation have not been adequately addressed at this point in time Some of the prime examples are listed below Increase Certification and Expertise ndash The Disparity Study as explained to us includes all minority- (MBE)

and women-owned (WBE) firms that could be readily identified that perform work within Washington State and that perform work within the NAICS code framework CHA developed to cover WSDOT project work During the various presentations relating to the Disparity Study WSDOT representatives said that outreach to currently non-certified MBE amp WBE firms has increased and that WSDOT aspires to bolster its list of certified firms in the future but this effort is just beginning and the success of the effort needs to be means tested against the broader population of MBE amp WBE firms included in the CHA base line evaluation As the Disparity Study uses a much broader population of MBE WBE contractors to arrive at its conclusions (both non-certified firms and firms too large for certification) it follows that the calculated DBE proposed goal is overstated to include capacity that does not currently exist within WSDOTrsquos certified DBE framework Unless OMWBE is experiencing sudden and unprecedented success in recruiting new MBEWBE firms the DBE goal should be adjusted downward to recognize that the ldquoready willing and ablerdquo contractors that WSDOT has certified is only a subset of the total MBEWBE contracting population used in the Disparity Study evaluation

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 3 of 6

Until the promised WSDOT outreach registration efforts result in a substantial increase in available certified DBE firms it is premature to count the entire population of minority- and women-owned contractors as available to participate in WSDOT contracting It is unreasonable for WSDOT to project availability capacity using the entire MBEWBE population when only its currently truncated list of certified firms is acceptable to count toward the DBE goal

A corollary to the Increase Certification and Expertise discussion above is that the calculation of the Base Figure evidently includes the broadest practical population of MBE and WBE firms identifiable (without a review of the CHA Master DBE Directory which has not been supplied prior to the close of the public comment period the scope of the directory cannot be ascertained) If this directory includes a large population of MBEWBE firms that are not certified or are too large to be certified then the Base Figure calculation should be adjusted to reflect that certified DBE firms are a fraction of the total MBEWBE firms used to arrive at the 19 suggested DBE goal With respect to the CHA Master Directory it is our understanding the WSDOT was not given the directory as part of its evaluation of the Disparity Study and it follows that it did not evaluate the proposed DBE goal in the context of the CHA Master DBE Directory In our opinion an informed decision on adjusting the CHA baseline goal calculation can only be done after an extensive evaluation of the CHA Master DBE Directory If this has not been done WSDOT has not exercised due diligence in evaluating the context and underpinnings of the CHA Disparity Study and a certified DBE Triennium goal proposal to the FHWA is premature Increase Contract ldquoUnbundlingrdquo ndash If this proposed strategy (suggested by the CHA Study) is undertaken

certified DBE Subcontractors currently available will be engaged as Prime Contractors and the value of their prime contracts will bolster the overall percentage of certified DBE contracting but a systematic effort and strategy to ldquounbundlerdquo has not been articulated by WSDOT The key question of how this effort can be accomplished without increased cost to the taxpayers and increased inconvenience for the traveling public As noted in the CHA study (page 129 final paragraph) ldquoUnbundling must be conducted however within the constraints of the need to ensure efficiency and limit cost to the taxpayersrdquo As of this writing no overarching strategy for further unbundling with proper accountability has been articulated by WSDOT to the DBE Advisory Group

Review Insurance and Experience Requirements ndash Impediments to certified DBE participation due to

necessary insurance and experience standards cannot be solved by the prime contracting community Unless and until WSDOT puts together programs to address the burden of the substantial risks shouldered by Prime Contractors on WSDOT contracts barriers for streamlined utilization of certified DBE firms will continue to exist These market driven barriers will continue to dampen the availability of certified DBE Subcontractors that are able to perform within WSDOTrsquos strict criteria without unduly transferring risk to the Prime Contractor

Better Partnering to Overcome DBE Failures to Perform ndash Prime Contractors are held fully responsible to maintain the project schedule and are subject to project liquidated damages even when they may be struggling to deal with Subcontractor performance issues It is well-established that replacing a certified ldquocondition of awardrdquo (COA) DBE Subcontractor is very onerous and likely very costly to the Prime Contractor Unfortunately the imposition of strict and often counter-productive commercially useful function (CUF) rules often compound this issue as Prime Contractors cannot help COA DBE Subcontractors work through capacity expertise or time-related issues that impact timely performance

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 4 of 6

WSDOT needs to be a much better partner in the process of dealing with under-performing or non-performing certified DBE Subcontractors The current standard operational procedure places all of the exposure for non-performance onto the Prime WSDOT does not have an equitable system to account for non-performing or under-performing certified DBE Subcontractors hired as a condition of award (COA)

Performance Information and Training ndash Commercially useful function rules (CUF) and the lack of clear benchmark definitions for good faith effort (GFE) standards remain barriers for improving accountability within the DBE system and in turn lead to distorted DBE participation rates These items remain amorphous due to lack of training or lack of historic information Chronic uncertainty exists regarding both of these items Until WSDOT changes and improves its approach to provide transparency and certainty for both the prime bidding amp subcontracting parties true certified DBE capacity will continue to be masked and the resultant higher subcontracting costs associated with a distorted marketplace will continue to be hidden

WAPA respectfully suggests that simply adding an ldquoEstimated DBE Subcontract Premiumrdquo line to the current DBE bid forms would help to establish benchmarks that could begin to be used to ldquomeans testrdquo good faith efforts If this information had been gathered over the last 20 years of the DBE program meaningful GFE standards could have been developed and could be in place today

An in-depth review of CUF standards would also provide clarity For instance it is unclear why force account items performed by certified DBEs are currently counted at only 50 of the value of the work How was this benchmark established Has it been reviewed since imposed Did it ldquosolverdquo whatever inequity WSDOT was trying to address Better clarity may lead to more expanded opportunities for certified DBE Subcontractors

Enhanced Supportive Services and Business Development Programs ndash Unless and until stronger programs of these types are shown to be effective in boosting certified DBE business development increased DBE participation due to stronger business acumen should not be relied upon when setting the new DBE goal

Does OMWBE have a reasonable expectation that future plans for enhanced and expanded programs will be more successful than those employed in the past Assuming that certified DBE Subcontractors will be better prepared to deal with the WSDOT contracting environment than in the past should not be relied upon to boost DBE participation goals Especially troubling were the multiple references within the CHA report highlighting that DBEs believe that the staff at OMWBE lack a deep knowledge about the highway construction industry (eg Study page 129 2nd paragraph) Does OMWBE have a path forward that will address this issue and thus improve supportive services impacts

Develop a Bonding and Financing Program for SBEs ndash This is completely outside of the prime contracting

communityrsquos scope of influence WSDOT must find a way to institute changes that both protect the taxpayer and help increase certified DBE bonding capacity and access to financing ndash very large hurtles To assume that these hurtles can effectively be overcome within the 2018 ndash 2020 time frame when they have been chromic issues for the past 20 plus years of DBE program development is not rational

A helpful innovation would be for WSDOT to underwrite performance and payment bonds for certified DBE firms or to create promote a system that helps certified DBE firms obtain private bonding Bridging the gap to address capital access and performance risks (bonding) must be championed by WSDOT

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 5 of 6

Base Figure Adjustment to Address Available Subcontract Volume and DBE Prime Contracts It is a fact that mid- to large-sized MBEWBE firms that compete both as Prime Contractors and as Subcontractors are not eligible to be OMWBE certified DBEs Further the current amount of contract unbundling for greater DBE access to WSDOT prime contracting (see below) accounts for a very low dollar volume of prime contracts performed by certified DBEs Finally by specification (WSDOT standard specification 1-081) Prime Contractors are obligated to perform 30 of the total volume of the work (less specialty work) or stated another way a maximum of 70 of the dollar volume on WSDOT projects is typically available to award to subcontractors These market dynamics are NOT addressed in the Disparity Study A responsible DBE goal made absent of these facts should not be implemented A reasonable adjustment to the proposed 19 DBE goal is presented below

bull The percent of WSDOT prime contracts awarded to certified DBE firms is likely less than 5 by total WSDOT

contract volume Assuming this approximation is valid (likely very conservative) then the amount of WSDOT contract work available to certified DBE firms via subcontracting should be adjusted to account for the factors outlined above The Base Figure (19) should be adjusted to recognize that a 70 maximum subcontractor participation is available (in the numerator) and to account for the assumed 5 certified DBE prime contracts in the denominator Reasonable Base Figure Adjustment 19 (proposed) x 70 subcontracts available divide 95 of Non-Certified DBEs as Prime Contract Volume = 190 x 0737 = 140 adjusted goal This is an adjustment based on the practical dynamics of the WSDOT contracting system and it represents a more realistic look at the true subcontract volume that is available for Prime Contractors to award to certified DBE firms

Conclusions

Until the items listed above are addressed and in place it is not reasonable to believe that DBE goals can be increased by nearly 163 (from 117 to 190) When the projected robust public works contracting market is appropriately considered the true availability of certified DBE Subcontractors for WSDOT contracts will be truncated due to demand across all public works sectors With multiple strong public works programs competing for a limited population of certified DBEs the ability to meet increased WSDOT DBE goals will be severely challenged Without very clear concise and transparent good faith effort rules the ability to address DBE goals that greatly overestimate true near term certified DBE capacity will result in non-attainment bid day chaos failures to perform andor rapidly increased pricing

The clear conclusion is that at this point in time under the current circumstances without effectively instituted new programs rules procedures that could enhance the certified DBE programrsquos overall effectiveness we believe that the DBE goal should remain at or near 12 As OMWBE documents and demonstrates its future successes in improving access and eliminating capacity barriers only then should the DBE goal be re-evaluated and increased

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 6 of 6

In closing please remember that it is rare that the contracting community is asked our opinion with respect to the WSDOTrsquos DBE policies and so this letter is somewhat a vehicle to highlight collective concerns It is our belief that the majority of the Prime Contractors in Washington state support the objective of creating a level playing field for ready willing and able DBEs

If the level playing field is not yet possible in the absence of the DBE program then the key is to set realistic goals that recognize reflect and address the hard realities and market dynamics imposed by WSDOTrsquos bedrock environment of awarding contracts to the lowest cost responsible and responsive Contractor

Respectfully submitted Washington Asphalt Pavement Association

David Gent Tom Gaetz Executive Director Senior Advisor

Attachment A ndash WSDOT Central Puget Sound Public Works Contracting Projection 2018 - 2022

Con

stru

ctio

n Pr

ojec

t Sta

rts

2018

-202

2S

ound

Tra

nsit

$22

6 B

SD

OT

$08

B

Tran

sit

amp O

ther

s$1

7 B

WS

DO

T$6

7 B

Por

t of

Sea

ttle

$15

B

TOTA

L$3

33

B

Source N

ov 1

9 2

017

pres

enta

tion

to W

APA

Ann

ual M

eetin

g

Attachment A

Work (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Dave Gent - WAPA [mailtodavegentasphaltwacom] Sent Thursday December 7 2017 144 PMTo Bayne Jackie ltBayneJwsdotwagovgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hi again Jackie Irsquom fine thanks and hope you are the same Interesting The Master DBE Directory is the basis for and integral to the conclusions of the DisparityStudy Is it not then part of the information needed to fully review and comment on the DisparityStudy Was it not provided by CHA to WSDOT for review We are trying to fully understand thestudy and if this directory was part of the study why would it need to be obtained by a publicrecords disclosure It should be in the public domain and not restricted from ease of access If you are sure that a public records request is needed Irsquoll start that process but we will need tonote that point of fact when we submit our public comments If you are able to reconsider please let me know Respectfully

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Thursday December 7 2017 126 PMTo Dave Gent - WAPA ltdavegentasphaltwacomgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hello Dave I hope you are doing well

That information would likely be obtained through a public disclosure request Best Regards Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Dave Gent - WAPA [mailtodavegentasphaltwacom] Sent Thursday December 7 2017 113 PMTo Bayne Jackie ltBayneJwsdotwagovgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Jackie Can you please provide an electronic file or provide a weblink for the Master DBE Directory thatColette Holt amp Associates developed for the WSDOT Disparity Study 2017 (first referred to on Page 8of the Disparity Study) I did not see a link to this Master DBE Directory within the study Thanks

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Friday October 27 2017 1118 AMTo Kenyon Wendy ltKenyonWwsdotwagovgt Adams E W ltewadamssystemsclcomgtAdekoyaAndrew ltandrewadekoyabccomgt AlyssaBalllegwagov Anindita Mitraltamitracrea-affiliatescomgt APRISeattlehotmailcom Armstrong CharlotteltCharlieAatgwagovgt Ato Apiafi Architects PLLC ltatoaatoapiaficomgt benzfanwaorgBerntsen Teresa (OMWBE) ltTeresaBomwbewagovgt Billingsley Andrealtbillinawsdotwagovgt Bramlet Erica ltEricaBramletlegwagovgt Brooks Julius

ltBrooksJwsdotwagovgt Brown Jason ltjbrownldccorpcomgt bwallacenwlaborersorgCamden Allison ltCamdenAwsdotwagovgt carlllivingstongmailcom Cerda OscarltCerdaOwsdotwagovgt Christopher Chris ltChristCwsdotwagovgt ckerneycaawagovdanplatinumbusinessgroupcom davegentasphaltwacom David BalltDavidsignsnowmillcreekcomgt Davis Khalia ltDavisKhwsdotwagovgt Davis RaShelle (GOVltrashelledavisgovwagovgt Dayton Jo ltDaytonJwsdotwagovgt ddhondtagcwacomDebbieDriverlegwagov Dennis ltdennisahlkiewitcomgt dmcleodnwlaborersorgdrart6651gmailcom Duncan Enid lthigradeincgmailcomgt EltonltEltonwashingtonstatetruckingcomgt eprincecaawagov flemosldccorpcomfmartineznwmtnmsdcorg geoffshookatkncom glovelady ltgloveladyexcelglovescomgtGrabow Katie ltkgrabowsystemsclcomgt Guilfucci Jackie ltJackieGuilfucciskanskacomgt HealyLinda ltHealyLwsdotwagovgt Higginbotham Breanne ltHigginBwsdotwagovgt HirscheyClaudia ltclaudiahirscheycomcastnetgt Holt Colette ltcoletteholtmwbelawcomgt Huff JohnltHuffJwsdotwagovgt Iniguezchawagov JacksonMaynardlegwagov Jimmy Matta(jmattaalcantarassoccom) ltjmattaalcantarassoccomgt kellywickergovwagov Key EarlltKeyEwsdotwagovgt Kirk Jon ltjkirkwhhnfscomgt Kris Purrier ltkpurrierhwageocomgtleewabuildingtradesorg lesliejonessoundtransitorg Liz Evans ltlevansagcwacomgt LopezErin lterinlopezdeswagovgt Martha Cerna ltMarthaPSLCCORGgt Martin-Arnold EdwinaltMartinEwsdotwagovgt Mary Lerdahl ltmarydbeelectricinccomgt McCarty Hannahlthannahmccartylegwagovgt Melissa L Boyles ltmelissaboylesmwbelawcomgt Metcalf KeithltMetcalKwsdotwagovgt michaelicapaawagov Michelle ltMichelleTTCC26netgt MillarRoger ltMillarRwsdotwagovgt Nakamura Jason ltjasonnakamura1-alliancecomgtNavarroLportseattleorg olliepmt-solutionscom pastorbanksesbctacomacom PatrickHughes ltphugheshughesgroupbizgt Petersen Jodi (FHWA) ltJodiPetersendotgovgtrabbottliunaorg rcarmsteadgmailcom ricemportseattleorg Riley D ltdrileylydigcomgtSeling ltSelingjpfranciscomgt sherryharrisergosynchcom Stell MellodyltStellMwsdotwagovgt terigobintulaliptribes-nsngov timwilliamfactorycom tinaterra-tdicom tkellyldccorpcom tomgaetzmsncom vcollinsacec-waorgverlenejazzmsncom Wang Albert ltWangAatgwagovgt Waugh GregltGregWMaxKuneyComgt Yates Henry ltYatesHWSDOTWAGOVgtCc Tom Gaetz lttomgaetzmsncomgt Dave Gent - WAPA ltdavegentasphaltwacomgt VanCollins ltvcollinsacec-waorggt Daniel Seydel II ltdanplatinumbusinessgroupcomgt MaynardJackson ltJacksonMaynardlegwagovgt Carl Livingston ltcarlllivingstongmailcomgt DonMcLeod ltdmcleodnwlaborersorggt JIMMY MATTA ltjimmymattamsncomgt Prince Ed(CAAA) lteprincecaawagovgt David DHondt ltddhondtagcwacomgt Irene Reyesltgloveladyexcelsupplycompanycomgt McDaniel Craig ltMcDaniCwsdotwagovgtsherryharrisergosynchcomSubject WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Good morning On Monday October 30th WSDOT will be releasing the proposed overall Federal HighwayAdministration Disadvantaged Business Enterprise goal attached for public comment throughDecember 15 2017 This overall DBE goal is based upon the recently completely DBE ProgramDisparity Study WSDOT is proposing a 19 percent overall DBE participation goal on Federal Highway

Administration-funded projects for federal fiscal years 2018 through 2020 DBE goals fortransportation projects that receive federal funds represent a percentage of the value of work inwhich minority- and women-owned businesses should participate Once finalized and submitted toFHWA early next year the goal will be effective through Sept 30 2020

The purpose of the DBE program is to create a level playing field for firms owned and operated bydisadvantaged individuals wanting to participate in federally assisted highway transit and aviationprograms The attached overall DBE goal is for FHWA funded projects WSDOT will be updating theFTA and FAA overall DBE goals in the near future

If you have any questions please contact Earl Key Director of the Office of Equal Opportunity at3607057091 or KeyEwsdotwagov Thank you Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

  • Proof-Of-Publicationpdf
    • Mediapdf
      • AGC
      • Daily Journal
      • Daily Medium
      • DBEGood
      • OMWBE
      • Seattle Medium
      • Tabor 100
      • The Chronicle
      • Tukwila
        • King County
          • Public-Comments-20180111pdf
            • 19 DBE Requirement(1)
            • AGC Comments on Proposed 10 Goad
            • Backstrom Curb amp Sidewalk
            • comments on WSDOT proposed DBE goal
            • Cowlitz County Public Works
            • DBE Contracting goals
            • DBE Goal
            • DBE Program Disparity Study
            • Disparity Study Comments from City of Spokane
            • FW_ WSDOT News - WSDOT seeks comments on propos
            • Proposed DBE Goals
            • RE_ DBE Contracting Goal Comments
            • Re_ DBE Goal Comments
            • Re_ Seydel Dan - WSDOT Disparity Study Present
            • Support for WSDOTs proposed DBE goal
            • Why we need mandatory goals
            • WSDOT DBE Goal - Comment in support
            • WSDOT Proposes DBE goal of 19
            • WSDOT propsed DBE Goals
            • WTS - Disparity Study Comment Letter

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13 $amp()amp+1313++1313++13 )

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1313131313

13 $amp()amp+1313++1313++13 )

-012345678989lt=gtABCDEDFDGHDIJIKFABLDIEKLLGIFIKIgtMNFgtDGOIKGPINIQNRILGIKS=RNGFKRINIDKGTMPQU=VRONRJDGODIFRKKFJQDFNJHNGINOJWAFDGFFXGIRRDFTQWXVOKNCSKRNCCYJRNCZDOgt[N]JLDGDFIRNIDKGTYZM]VSAGJJEKGIRNEIFN[NRJJBI[G_aNGJ__bQARDGOIgtIgtRcNRRDKJdMPQU=DFNDLDGOIKN[NRJeREGIKSEKGIRNEIFIgtNIREDHYZM]JKCCNRFIKQWXFb]LNfKRDIKSIgtDFOKNC[DCCBN[NRJJ[DIgtIgtAFKSQWXNRIDEDNIDKGFABEKGIRNEIDGOOKNCFKGDGJDHDJANCMPQU=EKGIRNEIFbMPQU=DFgtKCJDGOIgtRABCDEEKLLGILIDGOFBI[GgKHLBRadgKHLBRedNGJQELBRhDGPKiNGdjNGEKAHRdNGJPgtKRCDGdRFEIDHCb]JJDIDKGNCCdIgtJNRILGI[DCCgtKFIN[BDGNRKGQELBRkSKRIgtKF[gtKENGGKINIIGJIgtLIDGOFbYKRLKRDGSKRLNIDKGNBKAIMPQU=lFRKKFJ_ac__=RDGGDNCQWXOKNCdHDFDIgtIImnn[FJKIb[NbOKHnXoANCUKRIAGDInJSNACIbgtILbYKRLKRDGSKRLNIDKGNBKAIIgtABCDEEKLLGIFFFDKGFNGJ[BDGNRdHDFDIgtIImnn[FJKIb[NbOKHnG[Fn_hn_np_n[FJKIcFiFcEKLLGIFcRKKFJcJBcEKGIRNEIDGOcOKNCcgtDOgt[NcRKfEIFbqrstuvwqxyzx|~v~vyr~|~v=lPYXX

()

WSDOT seeks comments on proposed DBE contracting goal for highway projects - Seattle MtgWSDOT seeks comments on proposed DBE contracting goal for highway projects

Comments accepted through Dec 15

OLYMPIA ndash Contractors trade and labor organizations small and disadvantaged businesses and all others who may be interested in working with the Washington State Department of Transportation are invited to comment on the agencyrsquos proposed Disadvantaged Business Enterprise goal for Federal Highway Administration contracts

DBE goals for transportation projects that receive federal funds represent a percentage of the value of work in which minority- and women-owned businesses should participate WSDOT is proposing a 19 percent overall DBE participation goal on Federal Highway Administration-funded projects for federal fiscal years 2018 through 2020

Once submitted to FHWA early next year the goal will be effective through Sept 30 2020

The purpose of the DBE program is to create a level playing field for firms owned and operated by disadvantaged individuals wanting to participate in federally assisted highway transit and aviation programs

Connecting with communities WSDOT will host a series of public meetings to provide opportunities for individuals to comment in person

Spokane meeting was held Nov 28

Vancouver meeting was held Nov 29

Seattle

2 ndash 4 pm Thursday Dec 7WSDOT Northwest Region Headquarters15700 Dayton Ave N Shoreline

Page 1 of 3WSDOT seeks comments on proposed DBE contracting goal for highway projects - Seattl

1112018httpwwwomwbewagovabouteventswsdot-seeks-comments-proposed-dbe-contracting

Date Thursday December 7 2017 - 200pm to 400pm

Other ways to provide comment Those who are unable to attend one of the meetings can participate in a no-cost webinar from 230 ndash 430 pm Tuesday Dec 5 Registration for the webinar is required Those interested in participating should email DisparityStudywsdotwagov (mailtoDisparityStudywsdotwagov)

Written comments can also be submitted by mail or email Jackie Bayne Policy amp Reporting Manager Washington State Department of Transportation Office of Equal Opportunity PO Box 47314 Olympia WA 98504-7314 DisparityStudywsdotwagov(mailtoDisparityStudywsdotwagov)

Documents detailing the methodology used for determining the FHWA DBE goals are available for review at all WSDOT region headquarters offices and at the Transportation Building 310 Maple Park Ave SE Olympia They are also available online at wwwwsdotwagovequalopportunity (httpwwwwsdotwagovequalopportunity)

WSDOT will consider all written comments received through Friday Dec 15 2017

WSDOT keeps people businesses and the economy moving by operating and improving the states transportation systems To learn more about what were doing go to wwwwsdotwagovnews (httpwwwwsdotwagovnews) for pictures videos news and blogs Real time traffic information is available at wwwwsdotcomtraffic(httpwwwwsdotcomtraffic) or by dialing 511

Americans with Disabilities Act (ADA) Information Accommodation requests for people with disabilities can be made by contacting the WSDOT DiversityADA Affairs team at wsdotadawsdotwagov (mailtowsdotadawsdotwagov) or by calling toll-free 855-362-4ADA (4232) Persons who are deaf or hard of hearing may make a request by calling the Washington State Relay at 711

Title VI Statement to Public It is WSDOTrsquos policy to assure that no person shall on the grounds of race color national origin or sex as provided by Title VI of the Civil Rights Act of 1964 be excluded from participation in be denied the benefits of or be otherwise discriminated against under any of its federally funded programs and activities Any person who believes his or her Title VI protection has been violated may file a complaint with WSDOTrsquos Office of Equal Opportunity For additional information regarding Title VI complaintprocedures andor information regarding our non-discrimination obligations please contactOEOrsquos Title VI Coordinator at 360-705-7090

Page 2 of 3WSDOT seeks comments on proposed DBE contracting goal for highway projects - Seattl

1112018httpwwwomwbewagovabouteventswsdot-seeks-comments-proposed-dbe-contracting

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aacc~~949lt7BB7lt3726C4ltG3401324ltB7ltj=9

13 $amp()(

(+amp13ampampampampampamp$amp -011234567

89lt=gtABCDgtEF39=GHIJK1L0M1JLNO1L040K420PJLJLQ0K5R015JKNON70220K445N04S0K10Q4P6N5KNNN0K4022J1TLNUTJ70VP5K1LN145KUJLW5KQU51T1TX0NT5KQ1JK101YZ0L17K1J[CL0KNZJL1015JKXYgtC]0L5KS5141JMJ77K1JK1T0QKMVNZLJZJN4Y5N04S0K10Q4_6N5KNNK1LZL5NY_]QJ02[JL4L02a5QTU0VG475K5N1L015JKMJK1L0M1NbY_QJ02N[JL1L0KNZJL1015JKZLJcM1N1T01LM5S[4L02[6K4NLZLNK10ZLMK10QJ[1TS026J[UJLW5KUT5MT75KJL51Vd0K4UJ7KdJUK4P6N5KNNNNTJ624Z0L15M5Z01bXYgtC5NZLJZJN5KQ0efZLMK1JSL022Y_Z0L15M5Z015JKQJ02JK4L02a5QTU0VG475K5N1L015JKd[6K44ZLJcM1N[JL[4L02[5NM02V0LNghei1TLJ6QTghghbgtKMN6P751141JaXG0L2VKj1V0LO1TQJ02U522P[[M15S1TLJ6QTZ1bkhOghghbCTZ6LZJNJ[1TY_ZLJQL075N1JML0102S2Z20V5KQ[524[JL[5L7NJUK40K4JZL014PV45N04S0K10Q45K45S54602NU0K15KQ1JZ0L15M5Z015K[4L022V0NN5N14T5QTU0VO1L0KN510K40S5015JKZLJQL07NbXYgtCU522TJN10NL5NJ[Z6P25M715KQN1JZLJS54JZZJL16K515N[JL5K45S54602N1JMJ77K15KZLNJKlZJW0KOgHmZb7bJKC6NbOAJSbgi01XYgtC0N1LKQ5JKa04n60L1LNHgoemA30V[05L1bOZJW0Kplt0KMJ6SLOgHmZb7bX4NbOAJSbgf01XYgtClt0KMJ6SLa04n60L1LNHeeheiAqeN1I5LM2Olt0KMJ6SLp0112OgHmZb7bCT6LNbOYMbo01XYgtCAJL1TUN1Q5JKa04n60L1LNHeqohhY0V1JKGSbAOTJL25Kbrstuvwxyz|v|~u|usCTJNUTJ0L6K0P21J011K4JKJ[1T715KQNM0KZ0L15M5Z015K0KJdMJN1UP5K0L[LJ7glkhHmlkhZb7bC6N40VOYMbqbQ5N1L015JK[JL1TUP5K0L5NLn65L4bCTJN5K1LN145KZ0L15M5Z015KQNTJ6247052Y5NZ0L51V164VUN4J1bU0bQJSbXL511KMJ77K1NM0K02NJPN6P75114PV7052JL7052l0MW5_0VKO9J25MVZJL15KQ30K0QLOX0NT5KQ1JK101YZ0L17K1J[CL0KNZJL1015JKOgt[[5MJ[n602gtZZJL16K51VO9bgtb_JjmokemOgt2V7Z50OXGfiqhmdokemJL705241JY5NZ0L51V164VUN4J1bU0bQJSbYJM67K1N410525KQ1T71TJ4J2JQV6N4[JL41L75K5KQ1TaXGY_QJ02N0L0S0520P2[JLLS5U01022XYgtCLQ5JKT04n60L1LNJ[[5MN0K4011TCL0KNZJL1015JK_65245KQOkeh30Z290LWGSbOgt2V7Z50bCTV0L02NJ0S0520P2JK25K01UUUbUN4J1bU0bQJSn602JZZJL16K51VbXYgtCU522MJKN54L022UL511KMJ77K1NLM5S41TLJ6QTL540VOYMbeqOgheob iexclcentpound currenGPJ611TG61TJL G4SL15N7K1N

13

$$amp(amp

)+-01-2345678897ltlt8=gt7=47AB=gtC8ADE7=877F=gt8GHG78=gtGgt=CCI7JKLMNOMNPPPQRSTUVWXYU1-XZ[]_abcdbbefeghbiebcjkh]gchbb_clmn[d opqrsssq otuv$r ow13x(v$r$ampvv(yz|nf|~knnn~dn owow13 ssw$ampvvo[dfzk]ee]ciieb]cf_]bae]_e]]n behgh_]ecbhb_aac] iexclcent poundcurrenyenbrvbarsectcopy-Z+-Z1O-ZordfXcopyordfYZZlaquocopy0not-0copy1O1shycopyordfordf01ordfregcopy-laquoXordfYK10copyX11X1Ocopyordf-XZ1deg ZX0copy-XZX1-Xordf0copyordf0copylaquoYK10copyX11deg0--XW10copylaquo-copyplusmn--Xsup2Xsup3Z-shyXcopy-microZcopy1sup3Z--0copyparaWplusmnsup2middotmicroZX0copyreg0-Xordf-+shyshyXcopy-copy-XlaquoXcopy+Lsup11sup3Zsup31Xordf0copy-XZ0shysup201ordfregcopy-laquoXordf)K10copyX11ordmcopy-XZsup3Z01Xparasup2)ordmlaquo1raquocentfrac14frac12frac34iquestAgraveAacuteAcircAtildeiquestAumlAringAacuteiquestAEligCcedilAEligfrac34AtildeiquestAEligAacuteiquestAumlAcircAacuteAgraveiquestAEligAacuteiquestAringCcedil AringEgraveAacuteEacuteAringcentAEligEcircEumlAcircCcedilIgraveEumlAacuteAacuteAgravecentfrac14frac12IacuteAacuteAgravefrac34AacuteIcircCcediliquestAEligiexclIumlAcircAacuteEumlETHEgraveNtildeOgraveOgraveEcircAacuteAEligIacuteiquestAEligfrac14AacuteAacuteyenAacuteiquestAEligCcedilAumliquestiquestAringiquestAacuteAEligAacuteiquestAEligAringAcircAacuteAtildeAringAtildeEcircAcircCcedilETHAtildeEcircAringiquestiquestAEligCcedilAtildeOacutefrac34Aacutefrac34CcedilAumliquestAEligCcedilAacute EacuteEacuteEacuteOcircOtildeEgraveOumlOcircOumlETHtimesIgravefrac12Agravefrac34AtildeiquestAEligfrac34iquestAtildeAgrave AringIgraveAacuteEgraveAringiquestEcircEumlAcircCcedilEgravefrac12CcediliquestAacute AacuteAgravefrac34AtildeiquestAEligEumliquestiquestAacutefrac34frac34frac34ETHCcedilAacuteAringAacuteiquestAEligCcedilAumlAringOslashCcediliquestAacuteOslashIgraveNtildeNtildeIgraveOgraveETHUgraveOgraveOgravefrac12AgraveAcirc AacuteAgraveCcedilAringiquestAacuteAumlAacuteEcirciquestAEligCcedil iquest iquestAringfrac34AEligAEligAacuteAtildeEcirciquestAEligAacuteCcediliquestAEligiquestiquestAcircfrac34AEligAacuteiquestAEligCcedilAacuteAacuteiquestAumliquestAacuteiquestAElig EcirciquestAacuteAgraveiquestCcedilAgravefrac34EcircEumlAacuteAEligiquestAacuteAEligiquestAacuteiquestAEligCcedilAringCcedil Ecirc AcircAEligAacuteAEligAacuteAacuteiquestAEligUacuteAumlAacuteAEligAacuteAumlAEligAacuteCcedil AacuteAgraveAcirc frac34UcirciquestAEligfrac34AgraveiquestAumlAgraveAringiquestAEligiquestAacuteEcircOcircAEligfrac34AringAEligOcircfrac34AEligAtildeAcirciquestAEligAgraveAcircAacuteiquestAumliquestAacutecentfrac14frac12iquestiquestAEligCcedilOtildeAumlAEligAacuteAacuteiquestAumliquestAacuteiquestAEligCcedil iquestAacuteiquestAEligAringiquestAEligiquestAacuteAacuteiquestAEligUumlYacute AcircAEligUacuteAumlAacuteAEligETHtimesOgraveUgraveAumlAEligAacuteCcedil iexcliquestCcedilAgravefrac34EcircAringiquestAEligiquestAacuteAacuteiquestAEligUumliexclcentYacute AcircAEligUacuteAumlAacutefrac12AgraveCcedil iquestAumlEcircOtildeOgraveETHOtildeAacuteAgraveAcircCcedilAgraveOtildeOgraveETHtimesUumlAumlAacuteETHEumlOtildeOgraveETHETHEumlAacuteAgraveAcircCcedilAgravefrac14AacuteIgraveOgraveEumlOtildeOgraveETHtimesYacutefrac12AgraveCcediliquestAEligAacuteiquestAringAEligfrac34iquestiquestUcircEcircAumlAgraveAEligCcedil AacuteAacuteAgraveAumlAringAacuteiquestAElig centfrac14frac12THORNiquestiquestAacuteEcircAacuteAcircEcircfrac12AgraveAacuteAcircEcircfrac34iquestAcircAacuteiquest AringiquestAEligiquestAacuteEcircOcircAEligfrac34AringAEligOcircfrac34AEligAtildeAcirciquestAEligAumlAtildeAEligiquestAtildeAacutefrac34UcircAElig Ecirc AcircAEligAacuteAEligAacuteAacuteiquestAEligUacuteAumlAacuteAumlAcircAringAEligAacuteAacuteiquestiquestAEligCcedilAacuteAgraveAringAacuteAgraveCcedilEcircAcirc AacuteAringiquestAEligiquestAEligCcedilAacuteAgraveAEligiexclcentCcediliquestAtilde iquestfrac34Aacutecentfrac14frac12CcediliquestAEligAgraveIumlAcircAacute iquestAumlAEligAacuteAacuteAgravefrac12AEligAacuteAacuteiquestAEligAcirciquestiquestAEligCcedilEumlIgraveETHOgraveyenUcircfrac14iquestAEligEcircAringiquestfrac12AgraveEcirciquestAtildeAEligiquestAEligAacutedegdegdegraquodeg1ordf-raquodegraquolaquoregszligXagraveKsup3sup3Z-Kcopy0-Lszligraquocentfrac14frac12frac34iquestAumlAEligiquestfrac34iquestAacuteAacuteAEligAumlAringAringAEligAacuteEumlfrac34AacuteAgraveAringAacuteiquestAacuteAgraveAacuteiquestiquestAacuteAgraveIumlAcircAEligAacuteiquestAacuteAacuteiquestAEligAumlAacuteEumlAtilde AcircAtildeAringiquestAacuteAacuteiquestAEligCcediliquestAacute iquestAEligCcedilAacuteAacuteAgraveAEligiexclcentcentiquestAacuteAacuteAEligAumlAringAringAEligAacutefrac34iquestAtildeAumlAumlAacuteAcircAEligAacuteiquestAcircCcedilIgraveETHEumlOtildeOgraveETHETHEumlAEligAgraveAcircAtildeAEligAacuteAacuteaacuteacircAumlUcirciquestEcircAEligEumlyencentatildeAEligAacuteAumlAacuteatildeAringiquestAEligAuml iquestAumlcentAgraveiquestAEligCcedilAacuteAEligfrac14AacuteAacuteAacuteAringAEligAacute frac12AEligAacuteAacuteiquestAElig iquestAuml IumlAcircAacuteAcircAEligiquestAacuteEcircaumlRSaringPREcircAringiquestOWaeligccedilegraveeacuteNRecircSaringPRAringiquestaacute)LcopyXJeumldeg1ordf-raquodegraquolaquoreg

13

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)))13 +++ --------- -----+ 01234567894lt486=4gt4428050lt0A7BC3164C7D - + 13EF$ampGHH(HI-+E13 +HJ4gt2KAL62127CMN=gt4513 - OPQ R(amp++ S +TU13 OPI++ OPQF$ampGHH(F(G$ampVWWXYZZ[]

httpwwwchronlinecomnewswsdot-seeks-public-comment-on-disadvantaged-business-enterprisearticle_f5c753ea-be61-11e7-966c-972f6769d8a6html

WSDOT Seeks Public Comment on Disadvantaged Business Enterprise By The Chronicle Oct 31 2017

The Washington State Department of Transportation will be accepting public comments about the departmentrsquos proposed Disadvantaged Business Enterprise goal for federal contracts

The goal is for transportation projects receiving Federal Highway Administration funds to have 19 percent of the value of work done by minority or women-owned businesses during the 2018 through 2020 fiscal years

ldquoThe purpose of the DBE program is to create a level playing field for firms owned and operated by disadvantaged individuals wanting to participate in federally assisted highway transit and aviation programsrdquo a press release from WSDOT said

A series of public meetings will be held to discuss the goal in Spokane Vancouver and Seattle

For those who are unable to attend the in person meetings a webinar will be hosted from 230 to 430 pm Thursday Dec 5 The webinar is free but registration is required To register email DisparityStudywsdotwagov

Page 1 of 2WSDOT Seeks Public Comment on Disadvantaged Business Enterprise | News | chronlin

1112018httpwwwchronlinecomnewswsdot-seeks-public-comment-on-disadvantaged-business-

Written comments can also be submitted by mail or email to Jackie Bayne policy and reporting manager for the department of transportation at Washington State Department of Transportation Office of Equal Opportunity PO Box 47314 Olympia 98504 or by email at disparitystudywsdotwagov Comments will be considered through Dec 17 2017

More information about the goal is available at all regional offices or at the main office in Olympia located at the Transportation Building 310 Maple Park Ave SE Olympia More information can also be found online at wsdotwagovequalopportunity

Page 2 of 2WSDOT Seeks Public Comment on Disadvantaged Business Enterprise | News | chronlin

1112018httpwwwchronlinecomnewswsdot-seeks-public-comment-on-disadvantaged-business-

larr Halfway there SR 8 fish barrier removal reaches milestone New SR 26 traffic cameras available rarr

WSDOT seeks comments on proposed DBE contracting goal for highway projects

December 1 2017 | No Comments

WSDOT is seeking comments on proposed participation goals for Disadvantaged Business Enterprises on upcoming Federal Highway Administration contracts a Yakima meeting has also been added to the schedule Source WSDOT Permalink WSDOT seeks comments on proposed DBE contracting goal for highway projects

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Page 1 of 3WSDOT seeks comments on proposed DBE contracting goal for highway projects | Tukw

1112018httptukwilatowingcom20171201wsdot-seeks-comments-on-proposed-dbe-contracting

From Liz EvansTo Bayne JackieSubject AGC Comments on Proposed 10 GoadDate Tuesday December 12 2017 50314 PMAttachments WSDOT Proposed Goal - AGC Comments FINALdocx

Hi there Jackie Attached are AGCrsquos comments on WSDOTs proposed 19 goal We will also be mailing you a copy Thanks for the opportunity to comment and we hope you find it helpful Regards Liz Liz Evans CAE Northern District ManagerAGC OF WASHINGTONTel 3602238757 | wwwagcwacom JOIN US for the 2018 AGC of Washington Annual Convention amp Technology Expo Jan 26

CUsersmwillmsPicturesInland AGCLogo_RGB_Half_5in

December 12 2017

Page 5

December 12 2017

VIA EMAIL amp US MAIL

Ms Jackie Bayne Policy amp Reporting Manager

Washington State Dept of Transportation

210 Maple Park Ave SE

PO Box 47314

Olympia WA 98504

RE WSDOT Proposed FHWA Triennium Disadvantaged Business Enterprise Goal

Dear Ms Bayne

This letter summarizes the views of the Associated General Contractors of Washington and Inland Northwest Associated General Contractorsrsquo (hereafter referred to collectively as AGC) regarding the Washington State Department of Transportationrsquos (WSDOT) recently proposed FHWA Triennium Disadvantaged Business Enterprise (DBE) Goal (the ldquoProposed Goalrdquo) AGC shares WSDOTrsquos commitment to continue the promotion of DBE firms but AGC is concerned the Proposed Goal which is a significant increase from the previous goal and actual utilization may have unintended consequences and could impose significant burdens on both prime contractors and DBE contractors alike AGC requests WSDOT reconsider its Proposed Goal and adjust the Proposed Goal to account for inevitable availability and capability issues including the lack of a formal retraction of the non-minority woman owned business waiver that makes up over half of the Proposed Goal Implementing an unachievable goal will only be to the detriment of the DBE program

1 AGCrsquos Membersrsquo Interest in WSDOTrsquos Proposed Goal

Together AGC of Washington and Inland Northwest AGC represent and serve the commercial industrial and highway construction industry These professional associations of commercial contractors are comprised of more than 900 members who have joined together to enhance the performance of their industry and build a better climate for construction operators many of which are small and closely held businesses

Like WSDOT AGC is firmly committed to the principals of equal opportunity and promoting efforts to ensure minority women and veteran owned businesses are properly represented In both its political advocacy and membership programs AGC has demonstrated its commitment to increasing the representation of disadvantaged groups in the construction industry as both workers and owners of firms For AGC this is both an issue of principles and a practical one The construction industry as a whole is facing a critical shortage of workers and it is imperative that the industry attract new participants Among AGCrsquos activities demonstrating this commitment are the following

middot AGC has an ongoing ldquoContractor Exchangerdquo program through which small minority- and women-owned subcontractors are offered one-on-one networking opportunities with established general contractors

middot The AGC Education Foundation provides financial support to construction-related programs in K-12 schools and conducts outreach specifically targeted at low income disadvantaged and female students

middot More than 2500 students most from inner-city schools participate in annual AGC-sponsored Construction Career Days in King Pierce and Spokane Counties

middot AGC supports the Pre-Apprenticeship Construction Training (PACT) program at Seattle Vocational Institute This program is focused on preparing underrepresented communities to be highly qualified applicants and successful apprentices in the construction trades

middot AGC is a sponsor of the Turner School a training course for minority- and women-business owners in the construction industry

middot AGC supports the National Association of Women in Construction (NAWIC) which provides professional development and other services to its members

middot AGC routinely supports legislative efforts aimed at supporting small businesses and encouraging small business participation

middot AGC recently formed a Diversity and Inclusion Committee comprised of both prime and DBE participants The purposed of the committee is to expand opportunities for DBE members and to help AGC consider diversity in decision-making Recently AGC approved a deeply discounted introductory dues structure for certified DBE members

middot AGC is a WSDOT partner on the new mentorproteacutegeacute program

AGCrsquos experience has been that the most effective approach is to help make emerging businesses successful through outreach training and public policies that will grow their capacitymdashnot by imposing mandates without clear evidence as to the mandates feasibility

2 WSDOTrsquos Proposed Goalrsquos Impacts To The Construction Industry

WSDOTrsquos Proposed Goal is 190 The Proposed Goal is based upon the recent Collete Holt amp Associates (CHA) Disparity Study released in 2017 With respect to availability the Disparity Study reports the following weighted availability for FHWA-Funded projects

Thus the 190 goal factors in Black Hispanic Asian Native American and White Women into its availability As indicated however this 19 goal raises a number of concerns

a WSDOTrsquos 19 Proposed Goal Represents a Significant Increase Without Concrete Evidence of Available And Capable DBE Firms

First WSDOTrsquos Proposal Goal of 190 represents a significant increase as compared to actual DBE participation (141 in 2014 117 in 2015 and 151 in 2016) as well as the last FHWA proposed goal of 116 for 2014-2018 See WSDOTrsquos Proposed Goal and Interim FHWA Overall DBE Goal Methodology FFY 2014-2018 The Proposed Goal is 74 more than the last goal which represents a 638 increase and a 52 increase over the average actual utilization for 2014-2016 While Contractors were exceeding the previous 116 goal this is primarily based on the fact that WSDOT previously requested a waiver to consider non-women-owned businesses and the waiver was not granted and effective until June 2017 (meaning that for 2014-2016 women were counted towards race-conscious goals and inevitably a higher overall percentage of DBE firms were utilized)

Contractors struggle to meet present DBE goals due to the relatively low availability of experienced and certified DBE firms By increasing the goal WSDOT is understandably trying to increase the participation of underrepresented firms Drastically increasing the goals (by over 5 of actual utilization) without concrete evidence that there is sufficient availability andor capability of such firms however will have the opposite effect Notably this lack of availability and capacity of DBE firms was discussed in detail in the Disparity Study For example the CHA Disparity Study notes a number of concerns of DBE firms while technically ldquoavailablerdquo with respect to the goal percentages are unable to meet the requirements necessary to fulfill the contract including purchasing the equipment necessary having available labor and ability to meet insurance and financing requirements Thus while there may be ldquoavailablerdquo firms there is not clear evidence (and if fact evidence to the contrary) that those available firms are capable and available to perform the majority of the FHWA-Funded contracts let by WSDOT

An additional example affecting DBE capability and availability that is not factored into the CHA Disparity Study or WSDOTrsquos Proposed GOAL is DBE ability to enter into Project Labor Agreements (ldquoPLAsrdquo) WSDOT has indicated their interest in pursuing a PLA AGC Members have raised concerns based on repeated experiences that many DBE firms due to the administrative and cost impacts refuse to enter into PLAs precluding those firms from performing certain work or increasing costs Again this lack of ability (or refusal) to perform should also be factored into WSDOTrsquos Proposed Goal which is not currently the case

b The Proposed Goal Does Not Account For The Current Non-Minority Woman Owned Business Waiver Still In Place

Second despite the significant increase WSDOT does not account for the current waiver of non-minority women owned businesses that remains in place As noted in WSDOTrsquos proposal comments WSDOT previously sought and received a waiver of the regulation that White females as a group are presumptively disadvantaged This waiver was heavily criticized by many including AGC and the results of the most recent CHA Disparity Study confirmed that White females are presumptively disadvantaged and do not enjoy a level playing field for USDOT-assisted contracts Therefore the CHA Disparity Study recommends that this group be returned to the status of goal credit eligibility WSDOT has sought a recession of the waiver but has not yet to our knowledge received a rescission of the waiver Nevertheless the 19 Proposed Goal still includes White women In fact of the 19 availability percentage White women represent 103 (over half) Accordingly for WSDOT to proceed with the 19 goal WSDOT must receive the rescission of the waiver for this goal to be even remotely possible to achieve If the rescission is not received the Proposed Goal must be adjusted

C The Proposed Goal Does Not Account For Availability Differences Across The State

Third the Proposed Goal does not account for availability difference across the state Eastern Washington contractors with an even scarcer pool of available and qualified DBE firms in the area as is the case now will be forced to subcontract to Western Washington firms paying transportation and per diem premiums for such work The CHA Disparity Study again provides numerous excerpts of anecdotal evidence demonstrating that the goals in Eastern Washington are too high A few of the contractor comments on the topic are as follows

When you apply those same goals to a different geographic region a different project site for a large firm to meet those goals is difficult because theres not necessarily the expertise in parts of the project that were submitting on

Theres very few DBEs over here [in Eastern Washington] Next year theres going to be even more work over here What are we going to do with all these goals We always meet the goals like I said youve got three four DBEs over here to do all the work and then they cant perform

There are just no [minority-owned] DBEs available in eastern Washington

See CHA Disparity Study at p 54 Again these are factors that should be taken into account in developing the Proposed Goal or at the very least its application WSDOTrsquos Proposed Goal however is silent as to this significant issue

When the lack of available firms with the capacity to perform significant DBE projects is coupled with the increased goals the price of WSDOT contracts will inevitably increase to the significant detriment of Washington taxpayers and the public entities Inevitably with a lack of available qualified firms the lack of competition will become evident and small qualifying contractorsrsquo prices will increase due to supply and demand principles as they become selected for projects and less able to take on additional work These increased DBE contract values will be passed on to the public agency and taxpayers which translates into fewer dollars available for the sorely needed and promised infrastructure upgrades In addition the instance of bid protests will inevitably increase potentially delaying projects and further diverting agency resources from badly needed infrastructure upgrades to resolving unnecessary disputes or rebidding the projects altogether

Finally faced with such drastic and potentially impossible requirements if adjustments are not made contractors may focus more on demonstrating good faith efforts Both a contractor who meets the required goal and a contractor that demonstrates good faith efforts are eligible for award It is likely that the contractor relying upon good faith effortsmdashwho will have a lower price than the other contractor who sacrificed price to actually meet the goalmdashwill be selected by the public agency This outcome will erode the total percentage participation of eligible firms and would clearly be inapposite of WSDOTrsquos intentions

3 Conclusion and Request

AGCrsquos members have asserted these and multiple other concerns Implementing an increased goal across the state and all contracts without clear evidence of available DBEs capable of performing the work and meeting the project requirements will have significant and far-reaching impacts on the construction industry many of which work against the aim of the Proposed Goal itself AGC requests WSDOT reconsider its Proposed Goal of 19 and make adjustments to account for the capability of DBE firms the lack of a rescission of the non-minority waiver and the lack of available DBE firms in parts of the state This Proposed Goal and its impacts on the construction industry will be irrevocable and will be to the detriment of taxpayers It is prudent to address these adjustments before implementing the Proposed Goal

Very truly yours

David DrsquoHondtCheryl Stewart Executive Vice President AGC of WashingtonExecutive Director Inland Northwest AGC

AGC of Washington bull 410 11th Avenue SE 203 Olympia WA 98501

Inland Northwest AGC bull 4935 E Trent Avenue Spokane WA 99212

image3jpeg

image1png

image2emf

image4png

image5jpeg

From Steve SmithTo WSDOT Disparity StudyCc Bayne JackieSubject 19 DBE RequirementDate Thursday December 14 2017 31947 PMAttachments DBE List and NAICS Listingpdf

Disparity Committee I recently read in The Daily Journal of Commerce that WSDOT plans to adopt a 19 DBEstandard for all FHWA funded projects early next year Our company S amp K Painting Inc is abridge painting company which is based in and works exclusively in Oregon and Washington Ihave been the owner of this firm since 1978 when it was first established My concerns aboutthe proposed 19 DBE requirement is as follows 1 There are very few opportunities for subcontract work on bridge repaint jobs These jobsare usually limited to cleaning and painting the bridge The only other facet of the project istraffic control which is almost always 3 or less of the project total cost The traffic controldoes provide a very good subcontracting opportunity 2 The NAISC code of 238320 includes bridge painting but also includes house painting wallcovering rust proofing etc which have almost no similarities to bridge painting When thiscode is used to determine the number of available firms (DBE or otherwise) that are availablefor bridge painting project this badly skews the numbers I would suggest that bridge paintingcontractors make up less than 5 of all firms in NAISC code 238320 3 If future WSDOT bridge painting projects require a 19 DBE participation A The qualified pool of DBE subcontractors available to submit pricing on any facetother than traffic control will be very limited I reviewed a list of 19 certified DBE firms listedunder painting at the WSDOT website and only recognized one firm from past projects B The number of prime bidders and competition will fall The state will incur highercosts due to this fact C Prime bidders will be forced to subcontract unqualified contractors just to be eligiblefor contract awards This will likely reduce the quality of the finished project Thank you for considering my concerns I may not have verbalized my thoughts as well as Iwould have liked but I have been in this business for almost 40 years and truly believe what Ihave said Sincerely

Steve Smith President

SampK Painting incP O BOx 390clacKamaS OregOn 97015Phone (503) 557-5544Fax (503) 557-5566Cell (503) 260-5280Steveskpaintingcom

From Lei WuTo Bayne JackieSubject comments on WSDOT proposed DBE goalDate Thursday December 14 2017 94925 PM

To Whom It May Concern

Below is my comments

The WSDOT recommended DBE Goal for FHWA contracts of 190 is a small andimportant increase that can further achieve equity in WSDOTFHWA contracting I am insupport of the 19 DBE Goal

I also want to express my appreciation for the thoroughness of the WSDOT Disparity studyand how the study disclosed the disparity in WSDOT contracts that do not have a DBE orWBE goal ndash further reinforcing that all women-owned firms and minority owned firms faceequity issues

I remain concerned with the methodology required by the Code of Federal Regulations andcase law because of the dependence on the availability of firms in the calculation Anunintended consequence of removing either gender or race from the goal is that many of thesefirms would go out of business the availability decreases and the formula then results in asmaller DBE goal

Thanks

Lei

Lei Wu PE AICP

Principal CSL Consulting

LeiWucsl-consultingnet

(425)562-6275

From Stephanie SimpkinsTo WSDOT Disparity StudySubject DBE Contracting goalsDate Wednesday November 29 2017 20259 PM

My name is Stephanie Simpkins and I own North Star Enterprises It is a large womanowned traffic control company located in Spokane Washington My mother founded thecompany in 1984 and I have worked in this family owned business most of my life Ipurchased the business from her in 2013 and have been sole owner since then My company thrived under the Disadvantaged Business Enterprise (DBE) Programimplemented by Washington Department of Transportation and administrated by United StatesDepartment of Transportation What started as a small business with one truck and a fewemployees has grown over the years to be one of the largest traffic control companies in thestate and employee countless people every construction season It has not been an easy roadover the years being a woman in the construction industry never is and it is hard to say wherewe would be now if it werenrsquot for the assistance of the DBE program As you know in June of 2017 majority women were removed from the DBE program basedon a disparity study conducted in 2012 On March 2014 Washington Department ofTransportation requested a wavier to remove majority women from the DBE program Thishas had an immediate and drastic impact on my business and all who work for me From themoment the waiver was approved and my company could no longer be used as a condition ofaward at bid time I began losing work Most recently the 2018 North Central Region ChipSeal which we have worked on for the last 10 years This contract provides work forapproximately 40 employees for the entire construction season I have already been told byseveral contractors that with such a high UDBE goal they wont even be able to consider mefor this project This loss along with several other smaller contracts to date are painting avery dismal future for my business With all of this turmoil surrounding the future of my business I find it frustrating to say theleast that WSDOT has chopped me off at the legs by not allowing my firm to count for theCOA but can use the little participation I may still contribute to help them reach their overallstate goal How is this fair If the contractors canrsquot utilize my business than neither shouldWSDOT As far as setting future state DBE contracting goals it looks as if the bar will beraised once again all while excluding the largest subset of useable DBErdquoS To me raising theoverall state goal at this time (which is already challenging to meet) with women DBErsquosexcluded from the program seems horribly ill timed

From Karen R BannishTo Bayne JackieSubject DBE GoalDate Tuesday December 5 2017 32549 PM

Hello Jackie ndash thank you for the webinar today concerning the proposed Overall DisadvantagedBusiness Enterprise Goal for the Federal Highway Administration I understanding the DisparityStudy much better now and checked the document you mentioned on the WSDOT website Pacific County is located in the Southwest corner of the State of Washington The tip of the LongBeach Peninsula would be 2 frac12 hours from Interstate 5 Our federal work primarily includes strictlyoverlay projects with 12 or fewer items of work included in the contract When bidding a project(our contracts are usually less than $500000) we sometimes received a single bid from the process Due to our proximity and the small cost for the work it is difficult to entice DBE participation Thereare simply no items of work that can be performed Having a mandatory DBE goal placed upon theproject in a rural area simply to meet the disparity guidelines will only increase the cost of theproject We feel the goals should be set in balance with the cost of the project and the items of work and notsimply directed to meet the overall goal

Karen BannishSenior Engineering TechnicianPacific County Department of Public Works211 North Commercial StreetRaymond WA 98577(360) 875-9368

From Dawn EgbertTo Bayne JackieSubject DBE Program Disparity StudyDate Tuesday December 5 2017 23825 PM

Hi JackieThank you for the great information on the call today You talked about the small works rosterbriefly We had a conversation in our office today about small contractors who are signed up on thePort of Vancouverrsquos small works roster Our team has had opportunity to talk to some of thecompanies on our roster who are women owned or minority owned businesses but they arenrsquotsigned up as a DBE firm When asked about that theyrsquove mentioned that they donrsquot want to fill outthe additional paperwork required to obtain the certification as a DBE As for the DBE goal at 19 it doesnrsquot seem to present an issue for the majority of our projects ndashespecially those where we would apply FHWA funds if granted However if we did happen to have aproject that didnrsquot include classifications of work where DBE certified participants are availablewould there still be an exception or a good faith efforts clause Thanks again for your time Dawn EgbertProcurement Services Manager3103 NW Lower River Road Vancouver WA 98660Direct 3609921102 | Cell 360448-9867 | Main 3606933611 | Fax 360735-1565degbertportvanusacom | wwwportvanusacom | available port properties Leadership | Stewardship | Partnership

From Feist MarleneTo WSDOT Disparity StudyCc Simmons Scott M Twohig KyleSubject Disparity Study Comments from City of SpokaneDate Friday December 15 2017 52226 PMAttachments image010png

image011pngimage012png

December 15 2017 Jackie BaynePolicy amp Reporting ManagerOffice of Equal OpportunityWashington State Department of TransportationPO Box 47314Olympia WA 98504-7314 RE Proposed DBE Contracting Goal for Highway Projects Dear Ms Bayne The City of Spokane would like to provide comments related to proposed DisadvantagedBusiness Enterprise Goal for Federal Highway Administration (FHWA) contracts by theWashington State Department of Transportation (WSDOT) Office of Equal Opportunity Manyof our projects receive funding from FHWA and as such the proposed new goals areapplicable to City work The City is supportive of the programrsquos purposemdashldquoto create a level playing field for firmsowned and operated by disadvantaged individuals wanting to participate in federally assistedhighway transit or aviation programsrdquo However the City is concerned about the ability to achieve the proposed utilization rate of upto 19 percent for DBEs in Eastern Washington considering the low number of DBEs in ourregion and the record construction under way in the City and in our region WSDOTrsquos DBE Program Disparity Study notes ldquoContractors in Eastern Washington repeatedlyreported that the goals on projects in their area are too highrdquo The Inland NorthwestAssociated General Contractors group notes that only about 12 DBEs in construction fields areavailable in the greater Spokane area Meanwhile the City has performed record construction in each of the last three years withproject totals hovering around $100 million Our City work has been bolstered by anaggressive program to improve water quality in the Spokane River Our local school districtsand our neighboring jurisdictions also have aggressive construction programs right now

Additionally we expect WSDOTrsquos work in this region to accelerate as North Spokane Corridor(NSC) construction proceeds At times our area is reaching the limits overall of our contractingcommunity the City has worked to release its projects in the first quarter of the year as muchas possible to lock in contractors and receive better pricing The capacity of existing DBEs in our region simply cannot meet that current high demand Some DBE firms are tempted to agree to more work in these times but we have found that insome cases DBEs have stretched themselves too thin On two recent City projects generalcontractors were unable to meet DBE goals as a result of DBE firms that couldnrsquot fulfill theircommitments for providing personnel or equipment It also seems implausible to expect DBEs from the West Side to mobilize teams to work on Cityof Spokane projects in large numbers In fact the Disparity Studyrsquos author responded at arecent meeting on this topic that a DBE from the West Side only very rarely completes workon the East Side of the state We would also be concerned about moving the good-paying jobs that construction providesoutside of our region The Cityrsquos median household income is $44350 considerably lower than theState of Washington MHI of $64129 and the Seattle MHI of $77351 Our leaders are working tocreate good-paying jobs for our citizens not export them to an already wealthier part of the state Additionally these projects are also funded with local dollars and our citizens expect their money toput their neighbors to work With the above considered the City is seeking

middot DBE goals for the 2018-2020 compliance period for Eastern Washington that arereflective of the current availability of DBE firms in our region

middot The re-inclusion of non-minority women owned DBEs in achieving DBE goals InSpokane non-minority women owned DBEs make up the majority of the availableDBEs And current information shows that women in Spokane overall still lag behindmen in opportunities and wages The Cityrsquos own ldquoGender and Racial Equityrdquo reportfrom 2016 noted that overall working women earned 783 percent of the earnings ofworking men in 2014 down from 827 percent in 2009 We need to lift up all women

middot The development of WSDOT programs to encourage the growth of existing andnew DBEs who can be used on street and highway projects We are encouraged by theproposed mentorproteacutegeacute program to increase the number and capacity of DBEs inEastern Washington Programs that address other barriers such as assistance withcompleting documentation or access to bonding capacity also could aid growth ofDBEs

middot The ability for WSDOT to adjust goals on a project if a selected DBE is unable tocomplete its commitments on a project This would help enable our contractors totake a chance on a new or inexperienced DBE to complete work

middot Recognition of local programs that strive to increase diversity in the work force Forexample the City operates a robust apprenticeship program that requires 15 percentof the labor hours on public works jobs greater than $600000 to be performed byapprentices The apprentice programs in our region are stepping up recruitmentefforts and are specifically seeking to recruit more youth women and minorities intoapprentice slots

As we seek to achieve the goal of increasing participation in street and highway constructionby companies owned by disadvantaged individuals we must also acknowledge that businessdevelopment and growth happens over time We must lay the groundwork now to build abase of DBEs that can help us achieve higher utilization goals over time Sincerely Marlene FeistDirector of Strategic DevelopmentPublic Works amp UtilitiesCity of Spokane

Marlene Feist | City of Spokane | Public Works Director of Strategic Development5096256505 | cell 5097109214 | mfeistspokanecityorg | spokanecityorg

From Hall MattTo WSDOT Disparity StudySubject FW WSDOT News - WSDOT seeks comments on proposed DBE contracting goal for highway projectsDate Friday December 15 2017 11956 PMAttachments WSDOT proposed DBE goal through 2020pdf

From Hall Matt Sent Friday December 15 2017 117 PMTo BayneJwsdotwagovCc Keniston Rick (KenistRwsdotwagov) MolyneKwsdotwagov SusanWilsonclarkwagovSubject WSDOT News - WSDOT seeks comments on proposed DBE contracting goal for highwayprojects Hello Jackie Please see our comments attached regarding the WSDOT proposed DBE goals Thanks for the opportunity to provide comments Matt HallClark County Public Works Washington State Department of Transportation ndash NEWSHeadquarters ndash 310 Maple Park Avenue SE ndash Olympia WA 98504-7314 ndash 360 705-7000 FOR IMMEDIATE RELEASEOct 30 2017 Contact Jackie Bayne Office of Equal Opportunity 360 705-7084

WSDOT seeks comments on proposed DBEcontracting goal for highway projectsComments accepted through Dec 15OLYMPIA ndash Contractors trade and labor organizations small and disadvantaged businessesand all others who may be interested in working with the Washington State Department ofTransportation are invited to comment on the agencyrsquos proposed Disadvantaged BusinessEnterprise goal for Federal Highway Administration contractsDBE goals for transportation projects that receive federal funds represent a percentage of thevalue of work in which minority- and women-owned businesses should participate WSDOTis proposing a 19 percent overall DBE participation goal on Federal Highway Administration-funded projects for federal fiscal years 2018 through 2020Once submitted to FHWA early next year the goal will be effective through Sept 30 2020The purpose of the DBE program is to create a level playing field for firms owned andoperated by disadvantaged individuals wanting to participate in federally assisted highwaytransit and aviation programsConnecting with communitiesWSDOT will host a series of public meetings to provide opportunities for individuals tocomment in person

Spokane

2 ndash 4 pm Tuesday Nov 28WSDOT Eastern Region Headquarters2714 N Mayfair St Spokane

Vancouver

2 ndash 4 pm Wednesday Nov 29WSDOT Vancouver Headquarters11018 NE 51st Circle Vancouver

Seattle

2 ndash 4 pm Thursday Dec 7WSDOT Northwest Region Headquarters15700 Dayton Ave N Shoreline

Other ways to provide commentThose who are unable to attend one of the meetings can participate in a no-cost webinar from230 ndash 430 pm Tuesday Dec 5 Registration for the webinar is required Those interested inparticipating should email DisparityStudywsdotwagovWritten comments can also be submitted by mail or emailJackie Bayne Policy amp Reporting ManagerWashington State Department of TransportationOffice of Equal OpportunityPO Box 47314Olympia WA 98504-7314DisparityStudywsdotwagovDocuments detailing the methodology used for determining the FHWA DBE goals areavailable for review at all WSDOT region headquarters offices and at the TransportationBuilding 310 Maple Park Ave SE Olympia They are also available online atwwwwsdotwagovequalopportunityWSDOT will consider all written comments received through Friday Dec 15 2017 Hyperlinks within this release

WSDOT Region offices wwwwsdotwagovContactofficelocationhtmregion

WSDOT keeps people businesses and the economy moving by operating and improving the statestransportation systems To learn more about what were doing go to wwwwsdotwagovnews forpictures videos news and blogs Real time traffic information is available at wwwwsdotcomtraffic or bydialing 511 Americans with Disabilities Act (ADA) InformationAccommodation requests for people with disabilities can be made by contacting the WSDOTDiversityADA Affairs team at wsdotadawsdotwagov or by calling toll-free 855-362-4ADA (4232)Persons who are deaf or hard of hearing may make a request by calling the Washington State Relay at711 Title VI Statement to Public It is WSDOTrsquos policy to assure that no person shall on the grounds ofrace color national origin or sex as provided by Title VI of the Civil Rights Act of 1964 be excluded fromparticipation in be denied the benefits of or be otherwise discriminated against under any of its federallyfunded programs and activities Any person who believes his or her Title VI protection has been violatedmay file a complaint with WSDOTrsquos Office of Equal Opportunity For additional information regarding Title

VI complaint procedures andor information regarding our non-discrimination obligations please contactOEOrsquos Title VI Coordinator at 360-705-7090 To unsubscribe to WSDOT media releases please reply and type REMOVE in the subject line

This e-mail and related attachments and any response may be subject to public disclosure under state law

From Cochrane EmilieTo WSDOT Disparity StudyCc Eugenis Susan Cowlitz Co Public Works - Brad BastinSubject Proposed DBE GoalsDate Thursday December 14 2017 85006 AMAttachments image002png

DBE Goals - Commentspdf

Please see the attached letter with comments regarding the proposed DBE Goals Ahard copy will be sent out today

Thanks

Emilie CochraneCowlitz County Public Works1600 ndash 13th Avenue SKelso WA 98626360-577-3030 ext 6523

From Michelle WolcottTo Bayne JackieCc Robideau Christopher LSubject RE DBE Contracting Goal CommentsDate Tuesday November 7 2017 65448 AMAttachments image001png

Thank you JackieWhat a relief to know that we have been heard and are not the only small business facing thisstruggle Your email is comforting

Yes you can provide us with additional assistanceLet me introduce my boss and Senior Vice President of Red Plains Professional Chris Robideau

Chris will be your contact from here since I will be leaving the company November 17th As a WA DBE we are ldquoeligible for limited DBE Support Services (SS) funding when funds becomeavailablerdquo When will this happen And are we registered or on a list to receive fundingIs the WSDOT ICR Training a prerequisite for the funding Or just helpful knowledge

Thank you for your time Jackie I will follow through with the training

Michelle Wolcott EIT Quality Control Engineer

2103 NE 129th Street Suite 201 Vancouver WA 98686 Office (360) 448-7999 Fax (360) 258-0274

wwwred-plainscom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Monday November 6 2017 332 PMTo Michelle Wolcott ltMichelleWolcottred-plainscomgtSubject RE DBE Contracting Goal Comments

Hi Michelle

Thank you for your interest in doing business with WSDOT I apologize for the lack of informationyou have come up against in your attempts to attain access to WSDOT ICR program

As you may well know WSDOT has recently completed a state wide agency specific diversity studyAnecdotal comments submitted with the study concur with your experience Not only did somerespondents find it difficult to become prequalified they also commented that the required indirectrate of 110 percent is too low to be profitable These requirements are currently under advisementby WSDOT and new DBE program requirements are currently in the process of seeking public input

As you are an OMWBE certified DBE in Washington State you will be eligible for limited DBE SupportServices (SS) funding when these funds become available At that time funds may become availableto assist you in your struggle to attain ICR eligibility Here is a link to WSDOTrsquos Indirect Cost RateTraining httpswwwwsdotwagovAuditICRTraininghtm If you would like me to find additionaltraining or information please let me know

If I can provide additional assistance of information please let me know

Best Regards

Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Michelle Wolcott [mailtoMichelleWolcottred-plainscom] Sent Tuesday October 31 2017 835 AMTo WSDOT Disparity Study ltDisparityStudyWSDOTWAGOVgtSubject DBE Contracting Goal Comments

HelloI have been in contact with WSDOT for 6 months sharing my disparaging story of beinga small DBE unable to submit SOQs for projects requiring a WSDOT Audited IndirectCost Rate Approval We do not have an in-house accountant and our outsideaccountant has explained to get all the paperwork together for WSDOT would take 40hours of work $9000 annually We cannot justify this cost to submit on a project thatwe may not acquire We have been directed to seek financial assistance from WSDOT Federal SBA andWashington State Office for Women and Minority Owned Enterprises all of whichprovided negative responses

As a DBE business in 11 states we are supporting the 19 incentive for federallyfunded contracts but we are frustrated in the fact that we will not be one of the luckyfew to participateWe have been in business 20 years From our Vancouver Washington office our clientsare the Native American tribes across the country with all contracts federally funded This summer alone the WSDOT ICR Approval has squashed our ability to submit on twoprojects that we were perfectly qualified to performI have attached previous emails to show a sample of who I have been dealing with

Thank you

Michelle Wolcott EIT Quality Control Engineer

ltimage001pnggt

2103 NE 129th Street Suite 201 Vancouver WA 98686 Office (360) 448-7999 Fax (360) 258-0274 wwwred-plainscom

From Michelle Wolcott Sent Monday July 10 2017 954 AMTo Harvey Schatzie ltHarveySwsdotwagovgtSubject RE WSDOT Indirect Cost Rate Process

Good Morning Schatzie

This is Michelle Wolcott from Red We spoke Friday June 30th about the ICRprocess and you were very encouraging I relayed the information to my boss who ishere in Vancouver then he shared with the president bookkeeper and our accountantin Oklahoma We had FAR compliance with Oklahoma DOT in 2015 so we are noteligible for the Safe Harbor Program Our account said our timekeeping system doesnot breakdown the hours and pay in the format WSDOT wants to have it presented andto get the documents in order would take the CPA and an assistant $9000 in paidhours of work It turns out this would have to be annually The other option is to hirean outside CPA firm to do the audit for us at $20000 annually

Our president said in the past we received funding assistance from the Stateof Oklahoma to get our ICR approval Does WSDOT offer any financial assistance for small businesses to reach compliance We are also a DBE in WA I have requested the same information from WA PTAC at theVancouver Chamber of Commerce and from WA Office of Minority and Women OwnedBusiness Enterprises and they both said there was nothing but suggested to askWSDOTThank you for your helpMichelle Wolcott EIT

Hello Michelle sorry but I am not aware of any grants But I was looking at this andthere is a POC at the bottom you may try to discuss the audit issuesHollyHolly BoehmeBusiness Opportunity Specialist | 8(a) Business Development ProgramUS Small Business Administration bull Seattle District Office

Hello Michelle -

Thank you for your email Im not aware of any funding available for thispurpose but do agree its quite a bit for a DBE firm to have as an expense Mostof the firms I work with do a lot more work on the Oregon side so perhaps thereare programs available that I just havent heard of Im copying my colleagueHoly Boehme in our Seattle District Office to see if they are aware of any suchassistance

Holly might there be some small business incubators or other resources availablein WA to help a small firm with the expense of getting a WSDOT AuditedIndirect Cost Rate approval Please reply all with anything you may have

Thank you

Yuri Yoshida Dyson Business Opportunity SpecialistUS SMALL BUSINESS ADMINISTRATION Portland District OfficePhone 503-326-6692 Fax 202-292-3872 wwwsbagovor

From Troy HalbergTo Bayne JackieSubject Re DBE Goal CommentsDate Wednesday December 13 2017 35533 PM

JackieToday was another example of why the goals should not be raised There were 2 jobs which Iwas low on and did not get due to the high goals This is exactly what will happen when thegoals get raised The first job was the 9180 Anacortes Ferry Paving Northeast Electric $244924 and UDBE $318000 Second job was the 9172 SR 9 East Junction Job Northeast Electric $68503 and UDBE $76300

Does this seem like a good way to spend the tax payer money I do not see how we are tosurvive if the goals get to 21

Thanks

Troy HalbergOffice360-225-7004Cell360-931-3990Fax360-225-7001

On Thu Nov 30 2017 at 1131 AM Bayne Jackie ltBayneJwsdotwagovgt wrote

Good Morning Troy

Thank you for taking the time to provide us with your experiences with the DBE Program TheWashington State Department of Transportation takes the public involvement process veryseriously and your comments will be taken into consideration prior to a final decision regardingthe overall DBE program goal

If I can be of further assistance please let me know

Best Regards

Jackie Bayne

Policy and Reporting Manager

WSDOT Office of Equal Opportunity

Work (360) 705-7084

Cell (360) 338-5783

BayneJwsdotwagov

From Troy Halberg [mailtotroyhnellcnet] Sent Wednesday November 29 2017 144 PMTo WSDOT Disparity Study ltDisparityStudyWSDOTWAGOVgtSubject DBE Goal Comments

If these goals are to be set that high this would make us as a non DBE small contractor at amajor disadvantage With these high of goals this is like handing all of the DBE electricalcontractors every job These general contractors will have no option but to use thembecause of the goals This should not go into effect We have been low on several jobs in thepast and have not gotten them do to the goals being 18 When this goes on it puts all therest of us contractors at a disadvantage Please consider the smaller non DBE contractorsthat are looking to survive as well

Thanks

Troy Halberg

Office360-225-7004

Cell360-931-3990

Fax360-225-7001

From Daniel Seydel IITo Bayne JackieCc Key Earl daneiwashingtonorg Nadeem Ismail Mussie Tewelde (mteweldehydro2geotechcom)

graceflyrightaolcom Mary Wenner Watkinson LarrySubject Re Seydel Dan - WSDOT Disparity Study Presentation Public TestimonyDate Friday December 8 2017 30323 PM

Jackie

It was my hope that the comments would be put into record I was also hoping that you wouldnot have to be the one having to formulate responses for each clarification If that is the caseI know you are swamped and will then I just ask my comments be only part of the recordHowever if there is dedicated staff that is going to be compiling and responding to theclarification then the below questions would be the priorities of most interest

These were questions unrelated to the disparity study and hopefully should be doable

1) Do you have any reports on your outcomes from the past 5 years on DBE support servicesand specific key performance measures from previous years funding (ie how many firmsutilized what was the objectives were objectives met did outcomes meet total satisfaction ifnot why next steps what was the firms capacity before and after services were performed (iesales employees bonding if applicable insurance equipment line of credit if applicablenumbertype of customers how are they doing now etc))

2) What other changes or improvements other than allowing DBES to select their own serviceproviders and a staff change will be a part of this new program

3) Was consideration to provide the new mentor protege consultant rather than separating theactivities into support services andor technical assistance

Disparity study clarifications

1) Will WSDOT consider sponsoring legislation to support the policy changes and goalincreases to insure manditory goals wont be necessary

a) If not what measures will you grant primes to operate outside the box (ie entertain bestvalue over low bid modify responsiveness by subs to require adherence to meeting voluntarygoals developing standards around federally funded gccm and other low bid procurementsthat give powers to primes to meet objectives including but not limited to mentor protegerelationships joint ventures bond waiving techniques cash flow assistance material andequipment acquisition manufacturer development specifications that have only DBES orinclude equal number of DBES as non DBES as approved installers etc)

2) Will the disparity study consultant be available for implementation or information gatheringfrom other regions

5) Will WSDOT be hiring more diverse staff amp professionaltechnical service providers inother departments outside OEO to insure policies commitments and evaluations areperformed in manner that improves diversity that reflects the communities WSDOT serves bythoughtful and legal efforts increase participation thus creating successful outcomes includingpartnerships and collaborations

Thank you and Merry Christmas

Hi Dan

Thank you for providing such thoughtful public comments questions and testimony

Regarding your public testimony below - I do not believe I am not able to answer questions ifthey are public comments Please let me know what part of this email you would likeclarification on and what part you would like considered public testimony

I appreciate your thoughtful consideration of WSDOTrsquos implementation of our civil rightsprograms

Best Regards

Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

DIDaniel Seydel IIFyi Daniel J Seydel II Platinum Group LLC 2064060844 f) 2062999934wwwplatinumbusinessgroupcom Small Business is the Answer FREE TRAINING FORENTREPRENEURS amp JOB SEEKERS - Polish your skills or make your firm standout thanksto the EntrepreneurialThu 233pDI

Daniel Seydel IIThu 1272017 1123 AMInbox Sent ItemsShow all 7 recipientsTobaynejwsdotwagov ltBayneJwsdotwagovgtJackie

Per your request below are my questions and comments some of which were verbally sharedyesterday

Congratulations on receiving the blessing of additional technical assistance dollars andcompleting the DBE Disparity Study per your report

1) Do you have any reports on your outcomes from the past 5 years on DBE support servicesand specific key performance measures from previous years funding (ie how many firmsutilized what was the objectives were objectives met did outcomes meet total satisfaction ifnot why next steps what was the firms capacity before and after services were performed (ie

sales employees bonding if applicable insurance equipment line of credit if applicablenumbertype of customers how are they doing now etc))

2) What other changes or improvements other than allowing DBES to select their own serviceproviders and a staff change will be a part of this new program

3) Was consideration to provide the new mentor protege consultant rather than separating theactivities into support services andor technical assistance

Disparity study clarifications andor comments

1) Will WSDOT consider sponsoring legislation to support the policy changes and goalincreases to insure manditory goals wont be necessary

a) If not what measures will you grant primes to operate outside the box (ie entertain bestvalue over low bid modify responsiveness by subs to require adherence to meeting voluntarygoals developing standards around federally funded gccm and other low bid procurementsthat give powers to primes to meet objectives including but not limited to mentor protegerelationships joint ventures bond waiving techniques cash flow assistance material andequipment acquisition manufacturer development specifications that have only DBES orinclude equal number of DBES as non DBES as approved installers etc)

2) Will the disparity study consultant be available for implementation or information gatheringfrom other regions

3) What lessons did WSDOT learn that it did not know from the other study(s)

4) What would WSDOT do different (ie scope time line process approach etc)

5) Will WSDOT be hiring more diverse staff amp professionaltechnical service providers inother departments outside OEO to insure policies commitments and evaluations areperformed in manner that improves diversity that reflects the communities WSDOT serves bythoughtful and legal efforts increase participation thus creating successful outcomes includingpartnerships and collaborations

Daniel J Seydel IIPlatinum Group LLC 2064060844f) 2062999934wwwplatinumbusinessgroupcom

Small Business is the Answer

FREE TRAINING FOR ENTREPRENEURS amp JOB SEEKERS - Polish your skills or makeyour firm standout thanks to the Entrepreneurial Institute of Washington

httpswwwyoutubecomchannelUCKL5YeVxL29HnNxqnb6hmXA

LIKE US on FaceBook if an Active Professional Development workshop provided by EIW

Construction University helps your firm or has benefited you

httpswwwfacebookcomEIWashingtonref=hl

From Bayne Jackie ltBayneJwsdotwagovgtSent Friday December 8 2017 10139 PMTo Daniel Seydel IICc Key Earl daneiwashingtonorg Nadeem Ismail Mussie Tewelde(mteweldehydro2geotechcom) graceflyrightaolcom Mary Wenner Watkinson LarrySubject RE Seydel Dan - WSDOT Disparity Study Presentation Public Testimony Hi Dan Thank you for providing such thoughtful public comments questions and testimony Regarding your public testimony below - I do not believe I am not able to answer questions if theyare public comments Please let me know what part of this email you would like clarification on andwhat part you would like considered public testimony I appreciate your thoughtful consideration of WSDOTrsquos implementation of our civil rights programs Best Regards Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov From Daniel Seydel II [mailtodanplatinumbusinessgroupcom] Sent Thursday December 7 2017 1123 AMTo Bayne Jackie ltBayneJwsdotwagovgtCc Key Earl ltKeyEwsdotwagovgt daneiwashingtonorg Nadeem Ismailltnipaintingearthlinknetgt Mussie Tewelde (mteweldehydro2geotechcom)ltmteweldehydro2geotechcomgt graceflyrightaolcom Mary Wennerltmwenn0108yahoocomgtSubject Seydel Dan - WSDOT Disparity Study Presentation Public Testimony Jackie

Per your request below are my questions and comments some of which were verbally sharedyesterday

Congratulations on receiving the blessing of additional technical assistance dollars andcompleting the DBE Disparity Study per your report

1) Do you have any reports on your outcomes from the past 5 years on DBE support servicesand specific key performance measures from previous years funding (ie how many firmsutilized what was the objectives were objectives met did outcomes meet total satisfaction ifnot why next steps what was the firms capacity before and after services were performed (iesales employees bonding if applicable insurance equipment line of credit if applicablenumbertype of customers how are they doing now etc))

2) What other changes or improvements other than allowing DBES to select their own serviceproviders and a staff change will be a part of this new program

3) Was consideration to provide the new mentor protege consultant rather than separating theactivities into support services andor technical assistance

Disparity study clarifications andor comments

1) Will WSDOT consider sponsoring legislation to support the policy changes and goalincreases to insure manditory goals wont be necessary

a) If not what measures will you grant primes to operate outside the box (ie entertain bestvalue over low bid modify responsiveness by subs to require adherence to meeting voluntarygoals developing standards around federally funded gccm and other low bid procurementsthat give powers to primes to meet objectives including but not limited to mentor protegerelationships joint ventures bond waiving techniques cash flow assistance material andequipment acquisition manufacturer development specifications that have only DBES orinclude equal number of DBES as non DBES as approved installers etc)

2) Will the disparity study consultant be available for implementation or information gatheringfrom other regions

3) What lessons did WSDOT learn that it did not know from the other study(s)

4) What would WSDOT do different (ie scope time line process approach etc)

5) Will WSDOT be hiring more diverse staff amp professionaltechnical service providers inother departments outside OEO to insure policies commitments and evaluations areperformed in manner that improves diversity that reflects the communities WSDOT serves bythoughtful and legal efforts increase participation thus creating successful outcomes includingpartnerships and collaborations

Thank you for your hard work

Daniel J Seydel IIPlatinum Group LLC2064060844f) 2062999934wwwplatinumbusinessgroupcom

Small Business is the Answer

FREE TRAINING FOR ENTREPRENEURS amp JOB SEEKERS - Polish your skills or makeyour firm standout thanks to the Entrepreneurial Institute of Washington

httpswwwyoutubecomchannelUCKL5YeVxL29HnNxqnb6hmXA

LIKE US on FaceBook if an Active Professional Development workshop provided by EIWConstruction University helps your firm or has benefited you

httpswwwfacebookcomEIWashingtonref=hl

From Erin EhlingerTo Bayne JackieSubject Support for WSDOTs proposed DBE goalDate Wednesday December 13 2017 115417 AM

I am writing to support the WSDOT recommended DBE Goal for FHWA contracts of 190 I also want to express my appreciation for the thoroughness of the WSDOT Disparity study and howthe study disclosed the disparity in WSDOT contracts that do not have a DBE or WBE goal ndash furtherreinforcing that all women-owned firms and minority owned firms face equity issues I remain concerned with the methodology required by the Code of Federal Regulations and case lawbecause of the dependence on the availability of firms in the calculation An unintendedconsequence of removing either gender or race from the goal is that many of these firms would goout of business the availability decreases and the formula then results in a smaller DBE goal Pleaselet me know how I can help influence a change to the CFR Thank you Erin Ehlinger

Erin Ehlinger PEPresident

24036 SE 47th StSammamish WA 98029erinehlingersmartcitytrafficcom425-221-0320

From Jackie EtterTo WSDOT Disparity StudySubject Why we need mandatory goalsDate Friday December 1 2017 61859 PM

As a DBE participating in bidding process I have found that regardless of the language which claims to insurethat disadvantaged business enterprises shall not be discriminated against the only way to ensure that this does nothappen is by mandating affirmative action goals Having been overlooked time and time again because of my gender when I have submitted bids that are verycompetitive with other bidders is very frustrating I have had many instances of companies using my price to getmy non DBE competitors to lower theirs The voluntary or laudatory DBE goals do nothing to ensure a level playing fieldThe only way to ensure non-discrimination is through mandatory goals

Jackie EtterWest Star Construction of Spokane

Sent from my iPhone

From Claudia HirscheyTo Key Earl Bayne JackieSubject WSDOT DBE Goal - Comment in supportDate Tuesday December 12 2017 61937 PM

Dear Earl and Jackie The WSDOT recommended DBE Goal for FHWA contracts of 190 is a small and important increasethat can further achieve equity in WSDOTFHWA contracting I am in support of the 19 DBE Goal I also want to express my appreciation for the thoroughness of the WSDOT Disparity study and howthe study disclosed the disparity in WSDOT contracts that do not have a DBE or WBE goal ndash furtherreinforcing that all women-owned firms and minority owned firms face equity issues I remain concerned with the methodology required by the Code of Federal Regulations and case lawbecause of the dependence on the availability of firms in the calculation An unintendedconsequence of removing either gender or race from the goal is that many of these firms would goout of business the availability decreases and the formula then results in a smaller DBE goal Sincerely Claudia S Hirschey PETransportation Consulting Servicesclaudiahirscheycomcastnethttphirscheytcscom2068564988 Mobile

From Nate ThomasTo WSDOT Disparity StudySubject WSDOT Proposes DBE goal of 19Date Thursday December 7 2017 42720 PM

The WSDOT should look into similar ways the Federal Gov has handled the equal opportunity forthose that fall under the DBE status and set aside specific projects for the DBErsquos and moreimportantly UDBErsquos so these companies have better chance of landing contracts Maybe a lot 10 ofthe DBE goal to set aside for only DBEs and other 9 goal met as it is done currently with COA onlarger contracts Nate ThomasSenior EstimatorD 5095688085 | C 5099941156331 North Fancher Road | Spokane WA | 99212

The information contained in this email including any attachments is confidential and may beprivileged It is intended only for the person or entity to which it is addressed and no waiver isintended by sending this email If the reader is not the intended recipient you are herebynotified that any review retransmission dissemination or other use of or taking any action inreliance upon this information is strictly prohibited If you have received this email in errorkindly notify the sender by reply email and delete the original message from any computerThank You

From Brian FujiiTo WSDOT Disparity StudySubject WSDOT propsed DBE GoalsDate Thursday December 7 2017 110638 AM

Good morning Jackie

I wanted to comment on WSDOTs proposed DBE goal to 19 I believe WSDOTs plan toincrease the overall DBE goal to 19 will provide greater opportunities for DBE contractorsin different disciplines to participate in federally funded contracts

Without the new DBE requirement and with Proposition 200 there are limited opportunitiesfor DBE contractors in disciplines different than the typical trucking flagging and rebar Inaddition there are no incentives for general contractors to go out beyond the usual truckingflagging and rebar DBE subcontractors

Increasing the DBE goals will provide opportunities for different DBE contractors in differentdisciplines to participate in WSDOT federally funded projects

Thank you for your time

RespectfullyBrian FujiiPresident Subsurface ConstructionP 2063836478F 2069604639MDBE 4M0024998

From Forman StephanieTo Bayne JackieCc Millar Roger christinenhanmailhousegov Claudia Hirschey Sarah Corbin Jiang Yingle

efaulknerenviroissuescom Diana Giraldo Kelly CheesemanSubject WTS - Disparity Study Comment LetterDate Friday December 15 2017 71020 PMAttachments 2017_Dec 15_WTSCommentLetter_WSDOT DBE Goalpdf

Dear Ms Bayne Please find our attached letter which summarizes the WTS Puget Sound Chapterrsquos support foradvancement of women in transportation and our comment letter regarding the recent DisparityStudy Please feel free to contact me if you have any questions or would like to discuss Sincerely Stephanie S Forman PEWTS Puget Sound President Transportation Project Manager

929 108th Avenue NE Suite 1300Bellevue WA 98004D 4254681548 M 2062291745stephanieformanhdrinccom

December 15 2017

Jackie Bayne Policy and Reporting Manager

Office of Equal Opportunity

Washington State Department of Transportation

PO Box 47314

Olympia WA 98504-7314

Dear Ms Bayne

On behalf of the Puget Sound Chapter of Womenrsquos Transportation Seminar (WTS) we would

like to thank the Washington State Department of Transportation for presenting to our

organization the DBE Disparity Study results We very much appreciated the presentation by Earl

Key Director of WSDOTrsquos Office of Equal Opportunity Teresa Berntsen (Director Office of Minority

and Womens Business Enterprises) as well as Leslie Jones (Director Sound Transit Office of Small

Business Development and Labor Compliance)

Following a review of the WSDOT Disparity Study and as a result of consultation with WTS

International we would like to provide WSDOT with our comments for your consideration

As you know WTS is an organization focused exclusively on attracting retaining and advancing

women in transportation By the year 2018 there will be thousands of vacancies in the

transportation industry for qualified professionals and while women account for more than half of

the worldrsquos workforce they are a very small minority in transportation disciplines

We are pleased that the outcome of the 2017 Disparity Study that recognizes the on-going barriers

for DBEs including women-owned businesses in transportation The WSDOT recommended DBE

Goal of 190 is a small and important increase that can further achieve equity in WSDOTFHWA

contracting We are also pleased that the 2017 Disparity Study has documented the disparity in

WSDOT contracts that do not have a DBE or WBE goal ndash further reinforcing that all women-owned

firms and minority owned firms face equity issues We are encouraged that the WSDOT has asked

FHWA to rescind the 2016 waiver

While WTSrsquo mission is specific to the advancement of women we are a race-neutral organization To

this end we are also deeply concerned about the underutilization of minority owned firms There is

no equity or ldquofair playing fieldrdquo without equity for all gender and races We remained concerned with

the methodology required by the Code of Federal Regulations and case law because of the

dependence on the availability of firms in the calculation An unintended consequence of removing

either gender or race from the goal is that many of these firms would go out of business the

availability decreases and the formula then results in a smaller DBE goal This consequence is

contrary to our mission

We look forward to our continued participation in WSDOTrsquos DBE advisory group we are anticipating

notice that the 2016 waiver has been rescinded and how we can work together to continue

advancing minority and women-owned firms in the transportation field

Sincerely

WTS Puget Sound Chapter

Stephanie Forman

President

C Roger Millar Secretary WSDOT

C Representative Adam Smith 9th Congressional District Washington co Christine Nhan

WTS Puget Sound Chapter

PO Box 3461

Bellevue Washington 98009

From Dave Gent - WAPATo Bayne JackieCc Tom GaetzSubject WAPA Public Comments - RE WSDOT FHWA Disadvantaged Business Enterprise Proposed GoalDate Friday December 15 2017 14119 PMAttachments 12152017 DBE Proposed Goal - WAPA Public Comments Letterpdf

Good afternoon Jackie Please find attached WAPArsquos ldquofor the public recordrdquo comments with respect to WSDOTrsquos proposedDBE Goals FHWA funded work I assume that the Master DBE Directory was not sent to you this week so as a result we were notable to review the directory before the close of the public comment period That fact is noted withinour comment letter Thank you for your efforts Have a good weekend

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Friday December 8 2017 1219 PMTo Dave Gent - WAPA ltdavegentasphaltwacomgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hello Dave WSDOT did not take possession of this directory as part of our review process We will provide youwith the records without submitting a formal request However we need to get them from theconsultant first I will hopefully have them to provide next week I will keep you updated on therequest Have a nice weekend Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal Opportunity

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

December 15 2017

Jackie Bayne Policy Manager WSDOT Office of Equal Opportunity Delivered via e-mail to BayneJwsdotwagov RE Public Comment (as requested) to Proposed Overall DBE Goal for the FHWA (2018 ndash 2020) Ms Bayne Thank you for your presentation via webinar on December 5 2017 outlining WSDOTrsquos evaluation process used to determine the proposed overall DBE goal for the FHWA Thank you also for the Colette Holt amp Associates (CHA) DBE Advisory Group presentation made on September 14 2017 Both presentations helped to distill the findings of the 2017 Disparity Study produced by CHA In response to Earl Keyrsquos initial informal request to comment on the proposed overall DBE goal made during the DBE Advisory Committee teleconference held on October 12th we provided a list of reasons that we believe justify a lower DBE goal than is now being proposed Our initial response to Mr Keyrsquos request did not serve to influence WSDOT and the current proposed goal remains at 190 The arguments provided on October 12th against the significant increase in the proposed DBE goal (versus the previous goal and recent historic DBE participation) are repeated and supplemented below and will serve as the Asphalt Pavement Associationrsquos (WAPArsquos) official public comments

In concert with WSDOT and the OWMBE WAPA and the construction firms that WAPA represents have demonstrated a commitment to the principals of equal opportunity for all ldquoready willing and ablerdquo firms for the entire history that our DBE program has been in place WAPA has continuously demonstrated its commitment to the goals of the DBE program and for increasing the representation of disadvantaged groups within our industry as both workers and owners of firms Please recognize that WAPArsquos oversight and critique of the DBE program has always attempted to balance the principals of fair and open competition with the practical aspects of the low bid compressed schedule high performance standards demanded within the WSDOT marketplace Our comments below are meant to enhance WSDOTrsquos and OWMBErsquos understanding of the market and to hopefully have WSDOT fully consider all of the dynamics that are at play when proposing its Triennial DBE goal for FHWA projects Current DBE Capacity vs Historically Robust Market In advocating for a realistic and defensible DBE goal it has always been WAPArsquos position that it is paramount that the realities of the marketplace and true certified DBE subcontracting capacity should be a primary standard While a ldquostretchrdquo goal may appear to be progressive on its face it comes with consequences for all of the parties involved in the WSDOT federal aid contracting arena To balance the dynamics of the WSDOT contracting system the DBE goal should be tempered with the realities of the market and with a true measure of the underlying effectiveness of the DBE support services available to contractors

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 2 of 6 The first point of fact that has not been given any apparent consideration by WSDOT in its evaluation of the current capacity of certified DBErsquos is that there is an historically robust workload scheduled to be performed in the 2017 through 2022 time-frame particularly in the Puget Sound ldquoEverett to Olympiardquo corridor By WSDOTrsquos own estimates (see Attachment A) public works construction project starts in the 2018 to 2022 time-frame in this region will exceed $333 billion (B) counting the work projected from just five public entities WSDOT will be taking a decidedly ldquoback seatrdquo role during this period to Sound Transit which will have construction project starts of $226B vs WSDOTrsquos projected volume of $67B WSDOTrsquos summary publication titled Washington State Department of Transportations Proposed Federal Highway Administration Triennium Disadvantaged Business Enterprise Goal Federal Fiscal Years 2018-2020 states correctly that ldquoIncluded among the types of evidence that must be considered are the current capacity of DBEs to perform work on WSDOTrsquos federally-assisted contracts as measured by the volume of work DBEs have performed in recent yearshelliprdquo (Step Two Adjustment discussion) With the Sound Transit program being over 300 larger than the total WSDOT program in this region a sober assessment of true certified DBE capacity in the next three years needs to be considered by WSDOT If the huge construction boom over the next five years does not prompt a Step Two Adjustment then it becomes obvious that the realities of the market are being ignored by WSDOT for DBE goal setting Put another way if the 2018 through 2022 level of contracting activity does not warrant a goal adjustment what will DBE Access Barriers Not Yet Addressed The CHA 2017 Disparity Study points out multiple recommendations in Section VII that impact DBE participation and access to the market Assessments relating to those impacts and the state of maturity in addressing the CHA recommendations should be considered when assessing the DBE goal Many of the CHA recommendation have not been adequately addressed at this point in time Some of the prime examples are listed below Increase Certification and Expertise ndash The Disparity Study as explained to us includes all minority- (MBE)

and women-owned (WBE) firms that could be readily identified that perform work within Washington State and that perform work within the NAICS code framework CHA developed to cover WSDOT project work During the various presentations relating to the Disparity Study WSDOT representatives said that outreach to currently non-certified MBE amp WBE firms has increased and that WSDOT aspires to bolster its list of certified firms in the future but this effort is just beginning and the success of the effort needs to be means tested against the broader population of MBE amp WBE firms included in the CHA base line evaluation As the Disparity Study uses a much broader population of MBE WBE contractors to arrive at its conclusions (both non-certified firms and firms too large for certification) it follows that the calculated DBE proposed goal is overstated to include capacity that does not currently exist within WSDOTrsquos certified DBE framework Unless OMWBE is experiencing sudden and unprecedented success in recruiting new MBEWBE firms the DBE goal should be adjusted downward to recognize that the ldquoready willing and ablerdquo contractors that WSDOT has certified is only a subset of the total MBEWBE contracting population used in the Disparity Study evaluation

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 3 of 6

Until the promised WSDOT outreach registration efforts result in a substantial increase in available certified DBE firms it is premature to count the entire population of minority- and women-owned contractors as available to participate in WSDOT contracting It is unreasonable for WSDOT to project availability capacity using the entire MBEWBE population when only its currently truncated list of certified firms is acceptable to count toward the DBE goal

A corollary to the Increase Certification and Expertise discussion above is that the calculation of the Base Figure evidently includes the broadest practical population of MBE and WBE firms identifiable (without a review of the CHA Master DBE Directory which has not been supplied prior to the close of the public comment period the scope of the directory cannot be ascertained) If this directory includes a large population of MBEWBE firms that are not certified or are too large to be certified then the Base Figure calculation should be adjusted to reflect that certified DBE firms are a fraction of the total MBEWBE firms used to arrive at the 19 suggested DBE goal With respect to the CHA Master Directory it is our understanding the WSDOT was not given the directory as part of its evaluation of the Disparity Study and it follows that it did not evaluate the proposed DBE goal in the context of the CHA Master DBE Directory In our opinion an informed decision on adjusting the CHA baseline goal calculation can only be done after an extensive evaluation of the CHA Master DBE Directory If this has not been done WSDOT has not exercised due diligence in evaluating the context and underpinnings of the CHA Disparity Study and a certified DBE Triennium goal proposal to the FHWA is premature Increase Contract ldquoUnbundlingrdquo ndash If this proposed strategy (suggested by the CHA Study) is undertaken

certified DBE Subcontractors currently available will be engaged as Prime Contractors and the value of their prime contracts will bolster the overall percentage of certified DBE contracting but a systematic effort and strategy to ldquounbundlerdquo has not been articulated by WSDOT The key question of how this effort can be accomplished without increased cost to the taxpayers and increased inconvenience for the traveling public As noted in the CHA study (page 129 final paragraph) ldquoUnbundling must be conducted however within the constraints of the need to ensure efficiency and limit cost to the taxpayersrdquo As of this writing no overarching strategy for further unbundling with proper accountability has been articulated by WSDOT to the DBE Advisory Group

Review Insurance and Experience Requirements ndash Impediments to certified DBE participation due to

necessary insurance and experience standards cannot be solved by the prime contracting community Unless and until WSDOT puts together programs to address the burden of the substantial risks shouldered by Prime Contractors on WSDOT contracts barriers for streamlined utilization of certified DBE firms will continue to exist These market driven barriers will continue to dampen the availability of certified DBE Subcontractors that are able to perform within WSDOTrsquos strict criteria without unduly transferring risk to the Prime Contractor

Better Partnering to Overcome DBE Failures to Perform ndash Prime Contractors are held fully responsible to maintain the project schedule and are subject to project liquidated damages even when they may be struggling to deal with Subcontractor performance issues It is well-established that replacing a certified ldquocondition of awardrdquo (COA) DBE Subcontractor is very onerous and likely very costly to the Prime Contractor Unfortunately the imposition of strict and often counter-productive commercially useful function (CUF) rules often compound this issue as Prime Contractors cannot help COA DBE Subcontractors work through capacity expertise or time-related issues that impact timely performance

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 4 of 6

WSDOT needs to be a much better partner in the process of dealing with under-performing or non-performing certified DBE Subcontractors The current standard operational procedure places all of the exposure for non-performance onto the Prime WSDOT does not have an equitable system to account for non-performing or under-performing certified DBE Subcontractors hired as a condition of award (COA)

Performance Information and Training ndash Commercially useful function rules (CUF) and the lack of clear benchmark definitions for good faith effort (GFE) standards remain barriers for improving accountability within the DBE system and in turn lead to distorted DBE participation rates These items remain amorphous due to lack of training or lack of historic information Chronic uncertainty exists regarding both of these items Until WSDOT changes and improves its approach to provide transparency and certainty for both the prime bidding amp subcontracting parties true certified DBE capacity will continue to be masked and the resultant higher subcontracting costs associated with a distorted marketplace will continue to be hidden

WAPA respectfully suggests that simply adding an ldquoEstimated DBE Subcontract Premiumrdquo line to the current DBE bid forms would help to establish benchmarks that could begin to be used to ldquomeans testrdquo good faith efforts If this information had been gathered over the last 20 years of the DBE program meaningful GFE standards could have been developed and could be in place today

An in-depth review of CUF standards would also provide clarity For instance it is unclear why force account items performed by certified DBEs are currently counted at only 50 of the value of the work How was this benchmark established Has it been reviewed since imposed Did it ldquosolverdquo whatever inequity WSDOT was trying to address Better clarity may lead to more expanded opportunities for certified DBE Subcontractors

Enhanced Supportive Services and Business Development Programs ndash Unless and until stronger programs of these types are shown to be effective in boosting certified DBE business development increased DBE participation due to stronger business acumen should not be relied upon when setting the new DBE goal

Does OMWBE have a reasonable expectation that future plans for enhanced and expanded programs will be more successful than those employed in the past Assuming that certified DBE Subcontractors will be better prepared to deal with the WSDOT contracting environment than in the past should not be relied upon to boost DBE participation goals Especially troubling were the multiple references within the CHA report highlighting that DBEs believe that the staff at OMWBE lack a deep knowledge about the highway construction industry (eg Study page 129 2nd paragraph) Does OMWBE have a path forward that will address this issue and thus improve supportive services impacts

Develop a Bonding and Financing Program for SBEs ndash This is completely outside of the prime contracting

communityrsquos scope of influence WSDOT must find a way to institute changes that both protect the taxpayer and help increase certified DBE bonding capacity and access to financing ndash very large hurtles To assume that these hurtles can effectively be overcome within the 2018 ndash 2020 time frame when they have been chromic issues for the past 20 plus years of DBE program development is not rational

A helpful innovation would be for WSDOT to underwrite performance and payment bonds for certified DBE firms or to create promote a system that helps certified DBE firms obtain private bonding Bridging the gap to address capital access and performance risks (bonding) must be championed by WSDOT

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 5 of 6

Base Figure Adjustment to Address Available Subcontract Volume and DBE Prime Contracts It is a fact that mid- to large-sized MBEWBE firms that compete both as Prime Contractors and as Subcontractors are not eligible to be OMWBE certified DBEs Further the current amount of contract unbundling for greater DBE access to WSDOT prime contracting (see below) accounts for a very low dollar volume of prime contracts performed by certified DBEs Finally by specification (WSDOT standard specification 1-081) Prime Contractors are obligated to perform 30 of the total volume of the work (less specialty work) or stated another way a maximum of 70 of the dollar volume on WSDOT projects is typically available to award to subcontractors These market dynamics are NOT addressed in the Disparity Study A responsible DBE goal made absent of these facts should not be implemented A reasonable adjustment to the proposed 19 DBE goal is presented below

bull The percent of WSDOT prime contracts awarded to certified DBE firms is likely less than 5 by total WSDOT

contract volume Assuming this approximation is valid (likely very conservative) then the amount of WSDOT contract work available to certified DBE firms via subcontracting should be adjusted to account for the factors outlined above The Base Figure (19) should be adjusted to recognize that a 70 maximum subcontractor participation is available (in the numerator) and to account for the assumed 5 certified DBE prime contracts in the denominator Reasonable Base Figure Adjustment 19 (proposed) x 70 subcontracts available divide 95 of Non-Certified DBEs as Prime Contract Volume = 190 x 0737 = 140 adjusted goal This is an adjustment based on the practical dynamics of the WSDOT contracting system and it represents a more realistic look at the true subcontract volume that is available for Prime Contractors to award to certified DBE firms

Conclusions

Until the items listed above are addressed and in place it is not reasonable to believe that DBE goals can be increased by nearly 163 (from 117 to 190) When the projected robust public works contracting market is appropriately considered the true availability of certified DBE Subcontractors for WSDOT contracts will be truncated due to demand across all public works sectors With multiple strong public works programs competing for a limited population of certified DBEs the ability to meet increased WSDOT DBE goals will be severely challenged Without very clear concise and transparent good faith effort rules the ability to address DBE goals that greatly overestimate true near term certified DBE capacity will result in non-attainment bid day chaos failures to perform andor rapidly increased pricing

The clear conclusion is that at this point in time under the current circumstances without effectively instituted new programs rules procedures that could enhance the certified DBE programrsquos overall effectiveness we believe that the DBE goal should remain at or near 12 As OMWBE documents and demonstrates its future successes in improving access and eliminating capacity barriers only then should the DBE goal be re-evaluated and increased

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 6 of 6

In closing please remember that it is rare that the contracting community is asked our opinion with respect to the WSDOTrsquos DBE policies and so this letter is somewhat a vehicle to highlight collective concerns It is our belief that the majority of the Prime Contractors in Washington state support the objective of creating a level playing field for ready willing and able DBEs

If the level playing field is not yet possible in the absence of the DBE program then the key is to set realistic goals that recognize reflect and address the hard realities and market dynamics imposed by WSDOTrsquos bedrock environment of awarding contracts to the lowest cost responsible and responsive Contractor

Respectfully submitted Washington Asphalt Pavement Association

David Gent Tom Gaetz Executive Director Senior Advisor

Attachment A ndash WSDOT Central Puget Sound Public Works Contracting Projection 2018 - 2022

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2018

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$22

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Attachment A

Work (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Dave Gent - WAPA [mailtodavegentasphaltwacom] Sent Thursday December 7 2017 144 PMTo Bayne Jackie ltBayneJwsdotwagovgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hi again Jackie Irsquom fine thanks and hope you are the same Interesting The Master DBE Directory is the basis for and integral to the conclusions of the DisparityStudy Is it not then part of the information needed to fully review and comment on the DisparityStudy Was it not provided by CHA to WSDOT for review We are trying to fully understand thestudy and if this directory was part of the study why would it need to be obtained by a publicrecords disclosure It should be in the public domain and not restricted from ease of access If you are sure that a public records request is needed Irsquoll start that process but we will need tonote that point of fact when we submit our public comments If you are able to reconsider please let me know Respectfully

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Thursday December 7 2017 126 PMTo Dave Gent - WAPA ltdavegentasphaltwacomgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hello Dave I hope you are doing well

That information would likely be obtained through a public disclosure request Best Regards Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Dave Gent - WAPA [mailtodavegentasphaltwacom] Sent Thursday December 7 2017 113 PMTo Bayne Jackie ltBayneJwsdotwagovgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Jackie Can you please provide an electronic file or provide a weblink for the Master DBE Directory thatColette Holt amp Associates developed for the WSDOT Disparity Study 2017 (first referred to on Page 8of the Disparity Study) I did not see a link to this Master DBE Directory within the study Thanks

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Friday October 27 2017 1118 AMTo Kenyon Wendy ltKenyonWwsdotwagovgt Adams E W ltewadamssystemsclcomgtAdekoyaAndrew ltandrewadekoyabccomgt AlyssaBalllegwagov Anindita Mitraltamitracrea-affiliatescomgt APRISeattlehotmailcom Armstrong CharlotteltCharlieAatgwagovgt Ato Apiafi Architects PLLC ltatoaatoapiaficomgt benzfanwaorgBerntsen Teresa (OMWBE) ltTeresaBomwbewagovgt Billingsley Andrealtbillinawsdotwagovgt Bramlet Erica ltEricaBramletlegwagovgt Brooks Julius

ltBrooksJwsdotwagovgt Brown Jason ltjbrownldccorpcomgt bwallacenwlaborersorgCamden Allison ltCamdenAwsdotwagovgt carlllivingstongmailcom Cerda OscarltCerdaOwsdotwagovgt Christopher Chris ltChristCwsdotwagovgt ckerneycaawagovdanplatinumbusinessgroupcom davegentasphaltwacom David BalltDavidsignsnowmillcreekcomgt Davis Khalia ltDavisKhwsdotwagovgt Davis RaShelle (GOVltrashelledavisgovwagovgt Dayton Jo ltDaytonJwsdotwagovgt ddhondtagcwacomDebbieDriverlegwagov Dennis ltdennisahlkiewitcomgt dmcleodnwlaborersorgdrart6651gmailcom Duncan Enid lthigradeincgmailcomgt EltonltEltonwashingtonstatetruckingcomgt eprincecaawagov flemosldccorpcomfmartineznwmtnmsdcorg geoffshookatkncom glovelady ltgloveladyexcelglovescomgtGrabow Katie ltkgrabowsystemsclcomgt Guilfucci Jackie ltJackieGuilfucciskanskacomgt HealyLinda ltHealyLwsdotwagovgt Higginbotham Breanne ltHigginBwsdotwagovgt HirscheyClaudia ltclaudiahirscheycomcastnetgt Holt Colette ltcoletteholtmwbelawcomgt Huff JohnltHuffJwsdotwagovgt Iniguezchawagov JacksonMaynardlegwagov Jimmy Matta(jmattaalcantarassoccom) ltjmattaalcantarassoccomgt kellywickergovwagov Key EarlltKeyEwsdotwagovgt Kirk Jon ltjkirkwhhnfscomgt Kris Purrier ltkpurrierhwageocomgtleewabuildingtradesorg lesliejonessoundtransitorg Liz Evans ltlevansagcwacomgt LopezErin lterinlopezdeswagovgt Martha Cerna ltMarthaPSLCCORGgt Martin-Arnold EdwinaltMartinEwsdotwagovgt Mary Lerdahl ltmarydbeelectricinccomgt McCarty Hannahlthannahmccartylegwagovgt Melissa L Boyles ltmelissaboylesmwbelawcomgt Metcalf KeithltMetcalKwsdotwagovgt michaelicapaawagov Michelle ltMichelleTTCC26netgt MillarRoger ltMillarRwsdotwagovgt Nakamura Jason ltjasonnakamura1-alliancecomgtNavarroLportseattleorg olliepmt-solutionscom pastorbanksesbctacomacom PatrickHughes ltphugheshughesgroupbizgt Petersen Jodi (FHWA) ltJodiPetersendotgovgtrabbottliunaorg rcarmsteadgmailcom ricemportseattleorg Riley D ltdrileylydigcomgtSeling ltSelingjpfranciscomgt sherryharrisergosynchcom Stell MellodyltStellMwsdotwagovgt terigobintulaliptribes-nsngov timwilliamfactorycom tinaterra-tdicom tkellyldccorpcom tomgaetzmsncom vcollinsacec-waorgverlenejazzmsncom Wang Albert ltWangAatgwagovgt Waugh GregltGregWMaxKuneyComgt Yates Henry ltYatesHWSDOTWAGOVgtCc Tom Gaetz lttomgaetzmsncomgt Dave Gent - WAPA ltdavegentasphaltwacomgt VanCollins ltvcollinsacec-waorggt Daniel Seydel II ltdanplatinumbusinessgroupcomgt MaynardJackson ltJacksonMaynardlegwagovgt Carl Livingston ltcarlllivingstongmailcomgt DonMcLeod ltdmcleodnwlaborersorggt JIMMY MATTA ltjimmymattamsncomgt Prince Ed(CAAA) lteprincecaawagovgt David DHondt ltddhondtagcwacomgt Irene Reyesltgloveladyexcelsupplycompanycomgt McDaniel Craig ltMcDaniCwsdotwagovgtsherryharrisergosynchcomSubject WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Good morning On Monday October 30th WSDOT will be releasing the proposed overall Federal HighwayAdministration Disadvantaged Business Enterprise goal attached for public comment throughDecember 15 2017 This overall DBE goal is based upon the recently completely DBE ProgramDisparity Study WSDOT is proposing a 19 percent overall DBE participation goal on Federal Highway

Administration-funded projects for federal fiscal years 2018 through 2020 DBE goals fortransportation projects that receive federal funds represent a percentage of the value of work inwhich minority- and women-owned businesses should participate Once finalized and submitted toFHWA early next year the goal will be effective through Sept 30 2020

The purpose of the DBE program is to create a level playing field for firms owned and operated bydisadvantaged individuals wanting to participate in federally assisted highway transit and aviationprograms The attached overall DBE goal is for FHWA funded projects WSDOT will be updating theFTA and FAA overall DBE goals in the near future

If you have any questions please contact Earl Key Director of the Office of Equal Opportunity at3607057091 or KeyEwsdotwagov Thank you Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

  • Proof-Of-Publicationpdf
    • Mediapdf
      • AGC
      • Daily Journal
      • Daily Medium
      • DBEGood
      • OMWBE
      • Seattle Medium
      • Tabor 100
      • The Chronicle
      • Tukwila
        • King County
          • Public-Comments-20180111pdf
            • 19 DBE Requirement(1)
            • AGC Comments on Proposed 10 Goad
            • Backstrom Curb amp Sidewalk
            • comments on WSDOT proposed DBE goal
            • Cowlitz County Public Works
            • DBE Contracting goals
            • DBE Goal
            • DBE Program Disparity Study
            • Disparity Study Comments from City of Spokane
            • FW_ WSDOT News - WSDOT seeks comments on propos
            • Proposed DBE Goals
            • RE_ DBE Contracting Goal Comments
            • Re_ DBE Goal Comments
            • Re_ Seydel Dan - WSDOT Disparity Study Present
            • Support for WSDOTs proposed DBE goal
            • Why we need mandatory goals
            • WSDOT DBE Goal - Comment in support
            • WSDOT Proposes DBE goal of 19
            • WSDOT propsed DBE Goals
            • WTS - Disparity Study Comment Letter

1313131313

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WSDOT seeks comments on proposed DBE contracting goal for highway projects - Seattle MtgWSDOT seeks comments on proposed DBE contracting goal for highway projects

Comments accepted through Dec 15

OLYMPIA ndash Contractors trade and labor organizations small and disadvantaged businesses and all others who may be interested in working with the Washington State Department of Transportation are invited to comment on the agencyrsquos proposed Disadvantaged Business Enterprise goal for Federal Highway Administration contracts

DBE goals for transportation projects that receive federal funds represent a percentage of the value of work in which minority- and women-owned businesses should participate WSDOT is proposing a 19 percent overall DBE participation goal on Federal Highway Administration-funded projects for federal fiscal years 2018 through 2020

Once submitted to FHWA early next year the goal will be effective through Sept 30 2020

The purpose of the DBE program is to create a level playing field for firms owned and operated by disadvantaged individuals wanting to participate in federally assisted highway transit and aviation programs

Connecting with communities WSDOT will host a series of public meetings to provide opportunities for individuals to comment in person

Spokane meeting was held Nov 28

Vancouver meeting was held Nov 29

Seattle

2 ndash 4 pm Thursday Dec 7WSDOT Northwest Region Headquarters15700 Dayton Ave N Shoreline

Page 1 of 3WSDOT seeks comments on proposed DBE contracting goal for highway projects - Seattl

1112018httpwwwomwbewagovabouteventswsdot-seeks-comments-proposed-dbe-contracting

Date Thursday December 7 2017 - 200pm to 400pm

Other ways to provide comment Those who are unable to attend one of the meetings can participate in a no-cost webinar from 230 ndash 430 pm Tuesday Dec 5 Registration for the webinar is required Those interested in participating should email DisparityStudywsdotwagov (mailtoDisparityStudywsdotwagov)

Written comments can also be submitted by mail or email Jackie Bayne Policy amp Reporting Manager Washington State Department of Transportation Office of Equal Opportunity PO Box 47314 Olympia WA 98504-7314 DisparityStudywsdotwagov(mailtoDisparityStudywsdotwagov)

Documents detailing the methodology used for determining the FHWA DBE goals are available for review at all WSDOT region headquarters offices and at the Transportation Building 310 Maple Park Ave SE Olympia They are also available online at wwwwsdotwagovequalopportunity (httpwwwwsdotwagovequalopportunity)

WSDOT will consider all written comments received through Friday Dec 15 2017

WSDOT keeps people businesses and the economy moving by operating and improving the states transportation systems To learn more about what were doing go to wwwwsdotwagovnews (httpwwwwsdotwagovnews) for pictures videos news and blogs Real time traffic information is available at wwwwsdotcomtraffic(httpwwwwsdotcomtraffic) or by dialing 511

Americans with Disabilities Act (ADA) Information Accommodation requests for people with disabilities can be made by contacting the WSDOT DiversityADA Affairs team at wsdotadawsdotwagov (mailtowsdotadawsdotwagov) or by calling toll-free 855-362-4ADA (4232) Persons who are deaf or hard of hearing may make a request by calling the Washington State Relay at 711

Title VI Statement to Public It is WSDOTrsquos policy to assure that no person shall on the grounds of race color national origin or sex as provided by Title VI of the Civil Rights Act of 1964 be excluded from participation in be denied the benefits of or be otherwise discriminated against under any of its federally funded programs and activities Any person who believes his or her Title VI protection has been violated may file a complaint with WSDOTrsquos Office of Equal Opportunity For additional information regarding Title VI complaintprocedures andor information regarding our non-discrimination obligations please contactOEOrsquos Title VI Coordinator at 360-705-7090

Page 2 of 3WSDOT seeks comments on proposed DBE contracting goal for highway projects - Seattl

1112018httpwwwomwbewagovabouteventswsdot-seeks-comments-proposed-dbe-contracting

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httpwwwchronlinecomnewswsdot-seeks-public-comment-on-disadvantaged-business-enterprisearticle_f5c753ea-be61-11e7-966c-972f6769d8a6html

WSDOT Seeks Public Comment on Disadvantaged Business Enterprise By The Chronicle Oct 31 2017

The Washington State Department of Transportation will be accepting public comments about the departmentrsquos proposed Disadvantaged Business Enterprise goal for federal contracts

The goal is for transportation projects receiving Federal Highway Administration funds to have 19 percent of the value of work done by minority or women-owned businesses during the 2018 through 2020 fiscal years

ldquoThe purpose of the DBE program is to create a level playing field for firms owned and operated by disadvantaged individuals wanting to participate in federally assisted highway transit and aviation programsrdquo a press release from WSDOT said

A series of public meetings will be held to discuss the goal in Spokane Vancouver and Seattle

For those who are unable to attend the in person meetings a webinar will be hosted from 230 to 430 pm Thursday Dec 5 The webinar is free but registration is required To register email DisparityStudywsdotwagov

Page 1 of 2WSDOT Seeks Public Comment on Disadvantaged Business Enterprise | News | chronlin

1112018httpwwwchronlinecomnewswsdot-seeks-public-comment-on-disadvantaged-business-

Written comments can also be submitted by mail or email to Jackie Bayne policy and reporting manager for the department of transportation at Washington State Department of Transportation Office of Equal Opportunity PO Box 47314 Olympia 98504 or by email at disparitystudywsdotwagov Comments will be considered through Dec 17 2017

More information about the goal is available at all regional offices or at the main office in Olympia located at the Transportation Building 310 Maple Park Ave SE Olympia More information can also be found online at wsdotwagovequalopportunity

Page 2 of 2WSDOT Seeks Public Comment on Disadvantaged Business Enterprise | News | chronlin

1112018httpwwwchronlinecomnewswsdot-seeks-public-comment-on-disadvantaged-business-

larr Halfway there SR 8 fish barrier removal reaches milestone New SR 26 traffic cameras available rarr

WSDOT seeks comments on proposed DBE contracting goal for highway projects

December 1 2017 | No Comments

WSDOT is seeking comments on proposed participation goals for Disadvantaged Business Enterprises on upcoming Federal Highway Administration contracts a Yakima meeting has also been added to the schedule Source WSDOT Permalink WSDOT seeks comments on proposed DBE contracting goal for highway projects

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From Liz EvansTo Bayne JackieSubject AGC Comments on Proposed 10 GoadDate Tuesday December 12 2017 50314 PMAttachments WSDOT Proposed Goal - AGC Comments FINALdocx

Hi there Jackie Attached are AGCrsquos comments on WSDOTs proposed 19 goal We will also be mailing you a copy Thanks for the opportunity to comment and we hope you find it helpful Regards Liz Liz Evans CAE Northern District ManagerAGC OF WASHINGTONTel 3602238757 | wwwagcwacom JOIN US for the 2018 AGC of Washington Annual Convention amp Technology Expo Jan 26

CUsersmwillmsPicturesInland AGCLogo_RGB_Half_5in

December 12 2017

Page 5

December 12 2017

VIA EMAIL amp US MAIL

Ms Jackie Bayne Policy amp Reporting Manager

Washington State Dept of Transportation

210 Maple Park Ave SE

PO Box 47314

Olympia WA 98504

RE WSDOT Proposed FHWA Triennium Disadvantaged Business Enterprise Goal

Dear Ms Bayne

This letter summarizes the views of the Associated General Contractors of Washington and Inland Northwest Associated General Contractorsrsquo (hereafter referred to collectively as AGC) regarding the Washington State Department of Transportationrsquos (WSDOT) recently proposed FHWA Triennium Disadvantaged Business Enterprise (DBE) Goal (the ldquoProposed Goalrdquo) AGC shares WSDOTrsquos commitment to continue the promotion of DBE firms but AGC is concerned the Proposed Goal which is a significant increase from the previous goal and actual utilization may have unintended consequences and could impose significant burdens on both prime contractors and DBE contractors alike AGC requests WSDOT reconsider its Proposed Goal and adjust the Proposed Goal to account for inevitable availability and capability issues including the lack of a formal retraction of the non-minority woman owned business waiver that makes up over half of the Proposed Goal Implementing an unachievable goal will only be to the detriment of the DBE program

1 AGCrsquos Membersrsquo Interest in WSDOTrsquos Proposed Goal

Together AGC of Washington and Inland Northwest AGC represent and serve the commercial industrial and highway construction industry These professional associations of commercial contractors are comprised of more than 900 members who have joined together to enhance the performance of their industry and build a better climate for construction operators many of which are small and closely held businesses

Like WSDOT AGC is firmly committed to the principals of equal opportunity and promoting efforts to ensure minority women and veteran owned businesses are properly represented In both its political advocacy and membership programs AGC has demonstrated its commitment to increasing the representation of disadvantaged groups in the construction industry as both workers and owners of firms For AGC this is both an issue of principles and a practical one The construction industry as a whole is facing a critical shortage of workers and it is imperative that the industry attract new participants Among AGCrsquos activities demonstrating this commitment are the following

middot AGC has an ongoing ldquoContractor Exchangerdquo program through which small minority- and women-owned subcontractors are offered one-on-one networking opportunities with established general contractors

middot The AGC Education Foundation provides financial support to construction-related programs in K-12 schools and conducts outreach specifically targeted at low income disadvantaged and female students

middot More than 2500 students most from inner-city schools participate in annual AGC-sponsored Construction Career Days in King Pierce and Spokane Counties

middot AGC supports the Pre-Apprenticeship Construction Training (PACT) program at Seattle Vocational Institute This program is focused on preparing underrepresented communities to be highly qualified applicants and successful apprentices in the construction trades

middot AGC is a sponsor of the Turner School a training course for minority- and women-business owners in the construction industry

middot AGC supports the National Association of Women in Construction (NAWIC) which provides professional development and other services to its members

middot AGC routinely supports legislative efforts aimed at supporting small businesses and encouraging small business participation

middot AGC recently formed a Diversity and Inclusion Committee comprised of both prime and DBE participants The purposed of the committee is to expand opportunities for DBE members and to help AGC consider diversity in decision-making Recently AGC approved a deeply discounted introductory dues structure for certified DBE members

middot AGC is a WSDOT partner on the new mentorproteacutegeacute program

AGCrsquos experience has been that the most effective approach is to help make emerging businesses successful through outreach training and public policies that will grow their capacitymdashnot by imposing mandates without clear evidence as to the mandates feasibility

2 WSDOTrsquos Proposed Goalrsquos Impacts To The Construction Industry

WSDOTrsquos Proposed Goal is 190 The Proposed Goal is based upon the recent Collete Holt amp Associates (CHA) Disparity Study released in 2017 With respect to availability the Disparity Study reports the following weighted availability for FHWA-Funded projects

Thus the 190 goal factors in Black Hispanic Asian Native American and White Women into its availability As indicated however this 19 goal raises a number of concerns

a WSDOTrsquos 19 Proposed Goal Represents a Significant Increase Without Concrete Evidence of Available And Capable DBE Firms

First WSDOTrsquos Proposal Goal of 190 represents a significant increase as compared to actual DBE participation (141 in 2014 117 in 2015 and 151 in 2016) as well as the last FHWA proposed goal of 116 for 2014-2018 See WSDOTrsquos Proposed Goal and Interim FHWA Overall DBE Goal Methodology FFY 2014-2018 The Proposed Goal is 74 more than the last goal which represents a 638 increase and a 52 increase over the average actual utilization for 2014-2016 While Contractors were exceeding the previous 116 goal this is primarily based on the fact that WSDOT previously requested a waiver to consider non-women-owned businesses and the waiver was not granted and effective until June 2017 (meaning that for 2014-2016 women were counted towards race-conscious goals and inevitably a higher overall percentage of DBE firms were utilized)

Contractors struggle to meet present DBE goals due to the relatively low availability of experienced and certified DBE firms By increasing the goal WSDOT is understandably trying to increase the participation of underrepresented firms Drastically increasing the goals (by over 5 of actual utilization) without concrete evidence that there is sufficient availability andor capability of such firms however will have the opposite effect Notably this lack of availability and capacity of DBE firms was discussed in detail in the Disparity Study For example the CHA Disparity Study notes a number of concerns of DBE firms while technically ldquoavailablerdquo with respect to the goal percentages are unable to meet the requirements necessary to fulfill the contract including purchasing the equipment necessary having available labor and ability to meet insurance and financing requirements Thus while there may be ldquoavailablerdquo firms there is not clear evidence (and if fact evidence to the contrary) that those available firms are capable and available to perform the majority of the FHWA-Funded contracts let by WSDOT

An additional example affecting DBE capability and availability that is not factored into the CHA Disparity Study or WSDOTrsquos Proposed GOAL is DBE ability to enter into Project Labor Agreements (ldquoPLAsrdquo) WSDOT has indicated their interest in pursuing a PLA AGC Members have raised concerns based on repeated experiences that many DBE firms due to the administrative and cost impacts refuse to enter into PLAs precluding those firms from performing certain work or increasing costs Again this lack of ability (or refusal) to perform should also be factored into WSDOTrsquos Proposed Goal which is not currently the case

b The Proposed Goal Does Not Account For The Current Non-Minority Woman Owned Business Waiver Still In Place

Second despite the significant increase WSDOT does not account for the current waiver of non-minority women owned businesses that remains in place As noted in WSDOTrsquos proposal comments WSDOT previously sought and received a waiver of the regulation that White females as a group are presumptively disadvantaged This waiver was heavily criticized by many including AGC and the results of the most recent CHA Disparity Study confirmed that White females are presumptively disadvantaged and do not enjoy a level playing field for USDOT-assisted contracts Therefore the CHA Disparity Study recommends that this group be returned to the status of goal credit eligibility WSDOT has sought a recession of the waiver but has not yet to our knowledge received a rescission of the waiver Nevertheless the 19 Proposed Goal still includes White women In fact of the 19 availability percentage White women represent 103 (over half) Accordingly for WSDOT to proceed with the 19 goal WSDOT must receive the rescission of the waiver for this goal to be even remotely possible to achieve If the rescission is not received the Proposed Goal must be adjusted

C The Proposed Goal Does Not Account For Availability Differences Across The State

Third the Proposed Goal does not account for availability difference across the state Eastern Washington contractors with an even scarcer pool of available and qualified DBE firms in the area as is the case now will be forced to subcontract to Western Washington firms paying transportation and per diem premiums for such work The CHA Disparity Study again provides numerous excerpts of anecdotal evidence demonstrating that the goals in Eastern Washington are too high A few of the contractor comments on the topic are as follows

When you apply those same goals to a different geographic region a different project site for a large firm to meet those goals is difficult because theres not necessarily the expertise in parts of the project that were submitting on

Theres very few DBEs over here [in Eastern Washington] Next year theres going to be even more work over here What are we going to do with all these goals We always meet the goals like I said youve got three four DBEs over here to do all the work and then they cant perform

There are just no [minority-owned] DBEs available in eastern Washington

See CHA Disparity Study at p 54 Again these are factors that should be taken into account in developing the Proposed Goal or at the very least its application WSDOTrsquos Proposed Goal however is silent as to this significant issue

When the lack of available firms with the capacity to perform significant DBE projects is coupled with the increased goals the price of WSDOT contracts will inevitably increase to the significant detriment of Washington taxpayers and the public entities Inevitably with a lack of available qualified firms the lack of competition will become evident and small qualifying contractorsrsquo prices will increase due to supply and demand principles as they become selected for projects and less able to take on additional work These increased DBE contract values will be passed on to the public agency and taxpayers which translates into fewer dollars available for the sorely needed and promised infrastructure upgrades In addition the instance of bid protests will inevitably increase potentially delaying projects and further diverting agency resources from badly needed infrastructure upgrades to resolving unnecessary disputes or rebidding the projects altogether

Finally faced with such drastic and potentially impossible requirements if adjustments are not made contractors may focus more on demonstrating good faith efforts Both a contractor who meets the required goal and a contractor that demonstrates good faith efforts are eligible for award It is likely that the contractor relying upon good faith effortsmdashwho will have a lower price than the other contractor who sacrificed price to actually meet the goalmdashwill be selected by the public agency This outcome will erode the total percentage participation of eligible firms and would clearly be inapposite of WSDOTrsquos intentions

3 Conclusion and Request

AGCrsquos members have asserted these and multiple other concerns Implementing an increased goal across the state and all contracts without clear evidence of available DBEs capable of performing the work and meeting the project requirements will have significant and far-reaching impacts on the construction industry many of which work against the aim of the Proposed Goal itself AGC requests WSDOT reconsider its Proposed Goal of 19 and make adjustments to account for the capability of DBE firms the lack of a rescission of the non-minority waiver and the lack of available DBE firms in parts of the state This Proposed Goal and its impacts on the construction industry will be irrevocable and will be to the detriment of taxpayers It is prudent to address these adjustments before implementing the Proposed Goal

Very truly yours

David DrsquoHondtCheryl Stewart Executive Vice President AGC of WashingtonExecutive Director Inland Northwest AGC

AGC of Washington bull 410 11th Avenue SE 203 Olympia WA 98501

Inland Northwest AGC bull 4935 E Trent Avenue Spokane WA 99212

image3jpeg

image1png

image2emf

image4png

image5jpeg

From Steve SmithTo WSDOT Disparity StudyCc Bayne JackieSubject 19 DBE RequirementDate Thursday December 14 2017 31947 PMAttachments DBE List and NAICS Listingpdf

Disparity Committee I recently read in The Daily Journal of Commerce that WSDOT plans to adopt a 19 DBEstandard for all FHWA funded projects early next year Our company S amp K Painting Inc is abridge painting company which is based in and works exclusively in Oregon and Washington Ihave been the owner of this firm since 1978 when it was first established My concerns aboutthe proposed 19 DBE requirement is as follows 1 There are very few opportunities for subcontract work on bridge repaint jobs These jobsare usually limited to cleaning and painting the bridge The only other facet of the project istraffic control which is almost always 3 or less of the project total cost The traffic controldoes provide a very good subcontracting opportunity 2 The NAISC code of 238320 includes bridge painting but also includes house painting wallcovering rust proofing etc which have almost no similarities to bridge painting When thiscode is used to determine the number of available firms (DBE or otherwise) that are availablefor bridge painting project this badly skews the numbers I would suggest that bridge paintingcontractors make up less than 5 of all firms in NAISC code 238320 3 If future WSDOT bridge painting projects require a 19 DBE participation A The qualified pool of DBE subcontractors available to submit pricing on any facetother than traffic control will be very limited I reviewed a list of 19 certified DBE firms listedunder painting at the WSDOT website and only recognized one firm from past projects B The number of prime bidders and competition will fall The state will incur highercosts due to this fact C Prime bidders will be forced to subcontract unqualified contractors just to be eligiblefor contract awards This will likely reduce the quality of the finished project Thank you for considering my concerns I may not have verbalized my thoughts as well as Iwould have liked but I have been in this business for almost 40 years and truly believe what Ihave said Sincerely

Steve Smith President

SampK Painting incP O BOx 390clacKamaS OregOn 97015Phone (503) 557-5544Fax (503) 557-5566Cell (503) 260-5280Steveskpaintingcom

From Lei WuTo Bayne JackieSubject comments on WSDOT proposed DBE goalDate Thursday December 14 2017 94925 PM

To Whom It May Concern

Below is my comments

The WSDOT recommended DBE Goal for FHWA contracts of 190 is a small andimportant increase that can further achieve equity in WSDOTFHWA contracting I am insupport of the 19 DBE Goal

I also want to express my appreciation for the thoroughness of the WSDOT Disparity studyand how the study disclosed the disparity in WSDOT contracts that do not have a DBE orWBE goal ndash further reinforcing that all women-owned firms and minority owned firms faceequity issues

I remain concerned with the methodology required by the Code of Federal Regulations andcase law because of the dependence on the availability of firms in the calculation Anunintended consequence of removing either gender or race from the goal is that many of thesefirms would go out of business the availability decreases and the formula then results in asmaller DBE goal

Thanks

Lei

Lei Wu PE AICP

Principal CSL Consulting

LeiWucsl-consultingnet

(425)562-6275

From Stephanie SimpkinsTo WSDOT Disparity StudySubject DBE Contracting goalsDate Wednesday November 29 2017 20259 PM

My name is Stephanie Simpkins and I own North Star Enterprises It is a large womanowned traffic control company located in Spokane Washington My mother founded thecompany in 1984 and I have worked in this family owned business most of my life Ipurchased the business from her in 2013 and have been sole owner since then My company thrived under the Disadvantaged Business Enterprise (DBE) Programimplemented by Washington Department of Transportation and administrated by United StatesDepartment of Transportation What started as a small business with one truck and a fewemployees has grown over the years to be one of the largest traffic control companies in thestate and employee countless people every construction season It has not been an easy roadover the years being a woman in the construction industry never is and it is hard to say wherewe would be now if it werenrsquot for the assistance of the DBE program As you know in June of 2017 majority women were removed from the DBE program basedon a disparity study conducted in 2012 On March 2014 Washington Department ofTransportation requested a wavier to remove majority women from the DBE program Thishas had an immediate and drastic impact on my business and all who work for me From themoment the waiver was approved and my company could no longer be used as a condition ofaward at bid time I began losing work Most recently the 2018 North Central Region ChipSeal which we have worked on for the last 10 years This contract provides work forapproximately 40 employees for the entire construction season I have already been told byseveral contractors that with such a high UDBE goal they wont even be able to consider mefor this project This loss along with several other smaller contracts to date are painting avery dismal future for my business With all of this turmoil surrounding the future of my business I find it frustrating to say theleast that WSDOT has chopped me off at the legs by not allowing my firm to count for theCOA but can use the little participation I may still contribute to help them reach their overallstate goal How is this fair If the contractors canrsquot utilize my business than neither shouldWSDOT As far as setting future state DBE contracting goals it looks as if the bar will beraised once again all while excluding the largest subset of useable DBErdquoS To me raising theoverall state goal at this time (which is already challenging to meet) with women DBErsquosexcluded from the program seems horribly ill timed

From Karen R BannishTo Bayne JackieSubject DBE GoalDate Tuesday December 5 2017 32549 PM

Hello Jackie ndash thank you for the webinar today concerning the proposed Overall DisadvantagedBusiness Enterprise Goal for the Federal Highway Administration I understanding the DisparityStudy much better now and checked the document you mentioned on the WSDOT website Pacific County is located in the Southwest corner of the State of Washington The tip of the LongBeach Peninsula would be 2 frac12 hours from Interstate 5 Our federal work primarily includes strictlyoverlay projects with 12 or fewer items of work included in the contract When bidding a project(our contracts are usually less than $500000) we sometimes received a single bid from the process Due to our proximity and the small cost for the work it is difficult to entice DBE participation Thereare simply no items of work that can be performed Having a mandatory DBE goal placed upon theproject in a rural area simply to meet the disparity guidelines will only increase the cost of theproject We feel the goals should be set in balance with the cost of the project and the items of work and notsimply directed to meet the overall goal

Karen BannishSenior Engineering TechnicianPacific County Department of Public Works211 North Commercial StreetRaymond WA 98577(360) 875-9368

From Dawn EgbertTo Bayne JackieSubject DBE Program Disparity StudyDate Tuesday December 5 2017 23825 PM

Hi JackieThank you for the great information on the call today You talked about the small works rosterbriefly We had a conversation in our office today about small contractors who are signed up on thePort of Vancouverrsquos small works roster Our team has had opportunity to talk to some of thecompanies on our roster who are women owned or minority owned businesses but they arenrsquotsigned up as a DBE firm When asked about that theyrsquove mentioned that they donrsquot want to fill outthe additional paperwork required to obtain the certification as a DBE As for the DBE goal at 19 it doesnrsquot seem to present an issue for the majority of our projects ndashespecially those where we would apply FHWA funds if granted However if we did happen to have aproject that didnrsquot include classifications of work where DBE certified participants are availablewould there still be an exception or a good faith efforts clause Thanks again for your time Dawn EgbertProcurement Services Manager3103 NW Lower River Road Vancouver WA 98660Direct 3609921102 | Cell 360448-9867 | Main 3606933611 | Fax 360735-1565degbertportvanusacom | wwwportvanusacom | available port properties Leadership | Stewardship | Partnership

From Feist MarleneTo WSDOT Disparity StudyCc Simmons Scott M Twohig KyleSubject Disparity Study Comments from City of SpokaneDate Friday December 15 2017 52226 PMAttachments image010png

image011pngimage012png

December 15 2017 Jackie BaynePolicy amp Reporting ManagerOffice of Equal OpportunityWashington State Department of TransportationPO Box 47314Olympia WA 98504-7314 RE Proposed DBE Contracting Goal for Highway Projects Dear Ms Bayne The City of Spokane would like to provide comments related to proposed DisadvantagedBusiness Enterprise Goal for Federal Highway Administration (FHWA) contracts by theWashington State Department of Transportation (WSDOT) Office of Equal Opportunity Manyof our projects receive funding from FHWA and as such the proposed new goals areapplicable to City work The City is supportive of the programrsquos purposemdashldquoto create a level playing field for firmsowned and operated by disadvantaged individuals wanting to participate in federally assistedhighway transit or aviation programsrdquo However the City is concerned about the ability to achieve the proposed utilization rate of upto 19 percent for DBEs in Eastern Washington considering the low number of DBEs in ourregion and the record construction under way in the City and in our region WSDOTrsquos DBE Program Disparity Study notes ldquoContractors in Eastern Washington repeatedlyreported that the goals on projects in their area are too highrdquo The Inland NorthwestAssociated General Contractors group notes that only about 12 DBEs in construction fields areavailable in the greater Spokane area Meanwhile the City has performed record construction in each of the last three years withproject totals hovering around $100 million Our City work has been bolstered by anaggressive program to improve water quality in the Spokane River Our local school districtsand our neighboring jurisdictions also have aggressive construction programs right now

Additionally we expect WSDOTrsquos work in this region to accelerate as North Spokane Corridor(NSC) construction proceeds At times our area is reaching the limits overall of our contractingcommunity the City has worked to release its projects in the first quarter of the year as muchas possible to lock in contractors and receive better pricing The capacity of existing DBEs in our region simply cannot meet that current high demand Some DBE firms are tempted to agree to more work in these times but we have found that insome cases DBEs have stretched themselves too thin On two recent City projects generalcontractors were unable to meet DBE goals as a result of DBE firms that couldnrsquot fulfill theircommitments for providing personnel or equipment It also seems implausible to expect DBEs from the West Side to mobilize teams to work on Cityof Spokane projects in large numbers In fact the Disparity Studyrsquos author responded at arecent meeting on this topic that a DBE from the West Side only very rarely completes workon the East Side of the state We would also be concerned about moving the good-paying jobs that construction providesoutside of our region The Cityrsquos median household income is $44350 considerably lower than theState of Washington MHI of $64129 and the Seattle MHI of $77351 Our leaders are working tocreate good-paying jobs for our citizens not export them to an already wealthier part of the state Additionally these projects are also funded with local dollars and our citizens expect their money toput their neighbors to work With the above considered the City is seeking

middot DBE goals for the 2018-2020 compliance period for Eastern Washington that arereflective of the current availability of DBE firms in our region

middot The re-inclusion of non-minority women owned DBEs in achieving DBE goals InSpokane non-minority women owned DBEs make up the majority of the availableDBEs And current information shows that women in Spokane overall still lag behindmen in opportunities and wages The Cityrsquos own ldquoGender and Racial Equityrdquo reportfrom 2016 noted that overall working women earned 783 percent of the earnings ofworking men in 2014 down from 827 percent in 2009 We need to lift up all women

middot The development of WSDOT programs to encourage the growth of existing andnew DBEs who can be used on street and highway projects We are encouraged by theproposed mentorproteacutegeacute program to increase the number and capacity of DBEs inEastern Washington Programs that address other barriers such as assistance withcompleting documentation or access to bonding capacity also could aid growth ofDBEs

middot The ability for WSDOT to adjust goals on a project if a selected DBE is unable tocomplete its commitments on a project This would help enable our contractors totake a chance on a new or inexperienced DBE to complete work

middot Recognition of local programs that strive to increase diversity in the work force Forexample the City operates a robust apprenticeship program that requires 15 percentof the labor hours on public works jobs greater than $600000 to be performed byapprentices The apprentice programs in our region are stepping up recruitmentefforts and are specifically seeking to recruit more youth women and minorities intoapprentice slots

As we seek to achieve the goal of increasing participation in street and highway constructionby companies owned by disadvantaged individuals we must also acknowledge that businessdevelopment and growth happens over time We must lay the groundwork now to build abase of DBEs that can help us achieve higher utilization goals over time Sincerely Marlene FeistDirector of Strategic DevelopmentPublic Works amp UtilitiesCity of Spokane

Marlene Feist | City of Spokane | Public Works Director of Strategic Development5096256505 | cell 5097109214 | mfeistspokanecityorg | spokanecityorg

From Hall MattTo WSDOT Disparity StudySubject FW WSDOT News - WSDOT seeks comments on proposed DBE contracting goal for highway projectsDate Friday December 15 2017 11956 PMAttachments WSDOT proposed DBE goal through 2020pdf

From Hall Matt Sent Friday December 15 2017 117 PMTo BayneJwsdotwagovCc Keniston Rick (KenistRwsdotwagov) MolyneKwsdotwagov SusanWilsonclarkwagovSubject WSDOT News - WSDOT seeks comments on proposed DBE contracting goal for highwayprojects Hello Jackie Please see our comments attached regarding the WSDOT proposed DBE goals Thanks for the opportunity to provide comments Matt HallClark County Public Works Washington State Department of Transportation ndash NEWSHeadquarters ndash 310 Maple Park Avenue SE ndash Olympia WA 98504-7314 ndash 360 705-7000 FOR IMMEDIATE RELEASEOct 30 2017 Contact Jackie Bayne Office of Equal Opportunity 360 705-7084

WSDOT seeks comments on proposed DBEcontracting goal for highway projectsComments accepted through Dec 15OLYMPIA ndash Contractors trade and labor organizations small and disadvantaged businessesand all others who may be interested in working with the Washington State Department ofTransportation are invited to comment on the agencyrsquos proposed Disadvantaged BusinessEnterprise goal for Federal Highway Administration contractsDBE goals for transportation projects that receive federal funds represent a percentage of thevalue of work in which minority- and women-owned businesses should participate WSDOTis proposing a 19 percent overall DBE participation goal on Federal Highway Administration-funded projects for federal fiscal years 2018 through 2020Once submitted to FHWA early next year the goal will be effective through Sept 30 2020The purpose of the DBE program is to create a level playing field for firms owned andoperated by disadvantaged individuals wanting to participate in federally assisted highwaytransit and aviation programsConnecting with communitiesWSDOT will host a series of public meetings to provide opportunities for individuals tocomment in person

Spokane

2 ndash 4 pm Tuesday Nov 28WSDOT Eastern Region Headquarters2714 N Mayfair St Spokane

Vancouver

2 ndash 4 pm Wednesday Nov 29WSDOT Vancouver Headquarters11018 NE 51st Circle Vancouver

Seattle

2 ndash 4 pm Thursday Dec 7WSDOT Northwest Region Headquarters15700 Dayton Ave N Shoreline

Other ways to provide commentThose who are unable to attend one of the meetings can participate in a no-cost webinar from230 ndash 430 pm Tuesday Dec 5 Registration for the webinar is required Those interested inparticipating should email DisparityStudywsdotwagovWritten comments can also be submitted by mail or emailJackie Bayne Policy amp Reporting ManagerWashington State Department of TransportationOffice of Equal OpportunityPO Box 47314Olympia WA 98504-7314DisparityStudywsdotwagovDocuments detailing the methodology used for determining the FHWA DBE goals areavailable for review at all WSDOT region headquarters offices and at the TransportationBuilding 310 Maple Park Ave SE Olympia They are also available online atwwwwsdotwagovequalopportunityWSDOT will consider all written comments received through Friday Dec 15 2017 Hyperlinks within this release

WSDOT Region offices wwwwsdotwagovContactofficelocationhtmregion

WSDOT keeps people businesses and the economy moving by operating and improving the statestransportation systems To learn more about what were doing go to wwwwsdotwagovnews forpictures videos news and blogs Real time traffic information is available at wwwwsdotcomtraffic or bydialing 511 Americans with Disabilities Act (ADA) InformationAccommodation requests for people with disabilities can be made by contacting the WSDOTDiversityADA Affairs team at wsdotadawsdotwagov or by calling toll-free 855-362-4ADA (4232)Persons who are deaf or hard of hearing may make a request by calling the Washington State Relay at711 Title VI Statement to Public It is WSDOTrsquos policy to assure that no person shall on the grounds ofrace color national origin or sex as provided by Title VI of the Civil Rights Act of 1964 be excluded fromparticipation in be denied the benefits of or be otherwise discriminated against under any of its federallyfunded programs and activities Any person who believes his or her Title VI protection has been violatedmay file a complaint with WSDOTrsquos Office of Equal Opportunity For additional information regarding Title

VI complaint procedures andor information regarding our non-discrimination obligations please contactOEOrsquos Title VI Coordinator at 360-705-7090 To unsubscribe to WSDOT media releases please reply and type REMOVE in the subject line

This e-mail and related attachments and any response may be subject to public disclosure under state law

From Cochrane EmilieTo WSDOT Disparity StudyCc Eugenis Susan Cowlitz Co Public Works - Brad BastinSubject Proposed DBE GoalsDate Thursday December 14 2017 85006 AMAttachments image002png

DBE Goals - Commentspdf

Please see the attached letter with comments regarding the proposed DBE Goals Ahard copy will be sent out today

Thanks

Emilie CochraneCowlitz County Public Works1600 ndash 13th Avenue SKelso WA 98626360-577-3030 ext 6523

From Michelle WolcottTo Bayne JackieCc Robideau Christopher LSubject RE DBE Contracting Goal CommentsDate Tuesday November 7 2017 65448 AMAttachments image001png

Thank you JackieWhat a relief to know that we have been heard and are not the only small business facing thisstruggle Your email is comforting

Yes you can provide us with additional assistanceLet me introduce my boss and Senior Vice President of Red Plains Professional Chris Robideau

Chris will be your contact from here since I will be leaving the company November 17th As a WA DBE we are ldquoeligible for limited DBE Support Services (SS) funding when funds becomeavailablerdquo When will this happen And are we registered or on a list to receive fundingIs the WSDOT ICR Training a prerequisite for the funding Or just helpful knowledge

Thank you for your time Jackie I will follow through with the training

Michelle Wolcott EIT Quality Control Engineer

2103 NE 129th Street Suite 201 Vancouver WA 98686 Office (360) 448-7999 Fax (360) 258-0274

wwwred-plainscom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Monday November 6 2017 332 PMTo Michelle Wolcott ltMichelleWolcottred-plainscomgtSubject RE DBE Contracting Goal Comments

Hi Michelle

Thank you for your interest in doing business with WSDOT I apologize for the lack of informationyou have come up against in your attempts to attain access to WSDOT ICR program

As you may well know WSDOT has recently completed a state wide agency specific diversity studyAnecdotal comments submitted with the study concur with your experience Not only did somerespondents find it difficult to become prequalified they also commented that the required indirectrate of 110 percent is too low to be profitable These requirements are currently under advisementby WSDOT and new DBE program requirements are currently in the process of seeking public input

As you are an OMWBE certified DBE in Washington State you will be eligible for limited DBE SupportServices (SS) funding when these funds become available At that time funds may become availableto assist you in your struggle to attain ICR eligibility Here is a link to WSDOTrsquos Indirect Cost RateTraining httpswwwwsdotwagovAuditICRTraininghtm If you would like me to find additionaltraining or information please let me know

If I can provide additional assistance of information please let me know

Best Regards

Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Michelle Wolcott [mailtoMichelleWolcottred-plainscom] Sent Tuesday October 31 2017 835 AMTo WSDOT Disparity Study ltDisparityStudyWSDOTWAGOVgtSubject DBE Contracting Goal Comments

HelloI have been in contact with WSDOT for 6 months sharing my disparaging story of beinga small DBE unable to submit SOQs for projects requiring a WSDOT Audited IndirectCost Rate Approval We do not have an in-house accountant and our outsideaccountant has explained to get all the paperwork together for WSDOT would take 40hours of work $9000 annually We cannot justify this cost to submit on a project thatwe may not acquire We have been directed to seek financial assistance from WSDOT Federal SBA andWashington State Office for Women and Minority Owned Enterprises all of whichprovided negative responses

As a DBE business in 11 states we are supporting the 19 incentive for federallyfunded contracts but we are frustrated in the fact that we will not be one of the luckyfew to participateWe have been in business 20 years From our Vancouver Washington office our clientsare the Native American tribes across the country with all contracts federally funded This summer alone the WSDOT ICR Approval has squashed our ability to submit on twoprojects that we were perfectly qualified to performI have attached previous emails to show a sample of who I have been dealing with

Thank you

Michelle Wolcott EIT Quality Control Engineer

ltimage001pnggt

2103 NE 129th Street Suite 201 Vancouver WA 98686 Office (360) 448-7999 Fax (360) 258-0274 wwwred-plainscom

From Michelle Wolcott Sent Monday July 10 2017 954 AMTo Harvey Schatzie ltHarveySwsdotwagovgtSubject RE WSDOT Indirect Cost Rate Process

Good Morning Schatzie

This is Michelle Wolcott from Red We spoke Friday June 30th about the ICRprocess and you were very encouraging I relayed the information to my boss who ishere in Vancouver then he shared with the president bookkeeper and our accountantin Oklahoma We had FAR compliance with Oklahoma DOT in 2015 so we are noteligible for the Safe Harbor Program Our account said our timekeeping system doesnot breakdown the hours and pay in the format WSDOT wants to have it presented andto get the documents in order would take the CPA and an assistant $9000 in paidhours of work It turns out this would have to be annually The other option is to hirean outside CPA firm to do the audit for us at $20000 annually

Our president said in the past we received funding assistance from the Stateof Oklahoma to get our ICR approval Does WSDOT offer any financial assistance for small businesses to reach compliance We are also a DBE in WA I have requested the same information from WA PTAC at theVancouver Chamber of Commerce and from WA Office of Minority and Women OwnedBusiness Enterprises and they both said there was nothing but suggested to askWSDOTThank you for your helpMichelle Wolcott EIT

Hello Michelle sorry but I am not aware of any grants But I was looking at this andthere is a POC at the bottom you may try to discuss the audit issuesHollyHolly BoehmeBusiness Opportunity Specialist | 8(a) Business Development ProgramUS Small Business Administration bull Seattle District Office

Hello Michelle -

Thank you for your email Im not aware of any funding available for thispurpose but do agree its quite a bit for a DBE firm to have as an expense Mostof the firms I work with do a lot more work on the Oregon side so perhaps thereare programs available that I just havent heard of Im copying my colleagueHoly Boehme in our Seattle District Office to see if they are aware of any suchassistance

Holly might there be some small business incubators or other resources availablein WA to help a small firm with the expense of getting a WSDOT AuditedIndirect Cost Rate approval Please reply all with anything you may have

Thank you

Yuri Yoshida Dyson Business Opportunity SpecialistUS SMALL BUSINESS ADMINISTRATION Portland District OfficePhone 503-326-6692 Fax 202-292-3872 wwwsbagovor

From Troy HalbergTo Bayne JackieSubject Re DBE Goal CommentsDate Wednesday December 13 2017 35533 PM

JackieToday was another example of why the goals should not be raised There were 2 jobs which Iwas low on and did not get due to the high goals This is exactly what will happen when thegoals get raised The first job was the 9180 Anacortes Ferry Paving Northeast Electric $244924 and UDBE $318000 Second job was the 9172 SR 9 East Junction Job Northeast Electric $68503 and UDBE $76300

Does this seem like a good way to spend the tax payer money I do not see how we are tosurvive if the goals get to 21

Thanks

Troy HalbergOffice360-225-7004Cell360-931-3990Fax360-225-7001

On Thu Nov 30 2017 at 1131 AM Bayne Jackie ltBayneJwsdotwagovgt wrote

Good Morning Troy

Thank you for taking the time to provide us with your experiences with the DBE Program TheWashington State Department of Transportation takes the public involvement process veryseriously and your comments will be taken into consideration prior to a final decision regardingthe overall DBE program goal

If I can be of further assistance please let me know

Best Regards

Jackie Bayne

Policy and Reporting Manager

WSDOT Office of Equal Opportunity

Work (360) 705-7084

Cell (360) 338-5783

BayneJwsdotwagov

From Troy Halberg [mailtotroyhnellcnet] Sent Wednesday November 29 2017 144 PMTo WSDOT Disparity Study ltDisparityStudyWSDOTWAGOVgtSubject DBE Goal Comments

If these goals are to be set that high this would make us as a non DBE small contractor at amajor disadvantage With these high of goals this is like handing all of the DBE electricalcontractors every job These general contractors will have no option but to use thembecause of the goals This should not go into effect We have been low on several jobs in thepast and have not gotten them do to the goals being 18 When this goes on it puts all therest of us contractors at a disadvantage Please consider the smaller non DBE contractorsthat are looking to survive as well

Thanks

Troy Halberg

Office360-225-7004

Cell360-931-3990

Fax360-225-7001

From Daniel Seydel IITo Bayne JackieCc Key Earl daneiwashingtonorg Nadeem Ismail Mussie Tewelde (mteweldehydro2geotechcom)

graceflyrightaolcom Mary Wenner Watkinson LarrySubject Re Seydel Dan - WSDOT Disparity Study Presentation Public TestimonyDate Friday December 8 2017 30323 PM

Jackie

It was my hope that the comments would be put into record I was also hoping that you wouldnot have to be the one having to formulate responses for each clarification If that is the caseI know you are swamped and will then I just ask my comments be only part of the recordHowever if there is dedicated staff that is going to be compiling and responding to theclarification then the below questions would be the priorities of most interest

These were questions unrelated to the disparity study and hopefully should be doable

1) Do you have any reports on your outcomes from the past 5 years on DBE support servicesand specific key performance measures from previous years funding (ie how many firmsutilized what was the objectives were objectives met did outcomes meet total satisfaction ifnot why next steps what was the firms capacity before and after services were performed (iesales employees bonding if applicable insurance equipment line of credit if applicablenumbertype of customers how are they doing now etc))

2) What other changes or improvements other than allowing DBES to select their own serviceproviders and a staff change will be a part of this new program

3) Was consideration to provide the new mentor protege consultant rather than separating theactivities into support services andor technical assistance

Disparity study clarifications

1) Will WSDOT consider sponsoring legislation to support the policy changes and goalincreases to insure manditory goals wont be necessary

a) If not what measures will you grant primes to operate outside the box (ie entertain bestvalue over low bid modify responsiveness by subs to require adherence to meeting voluntarygoals developing standards around federally funded gccm and other low bid procurementsthat give powers to primes to meet objectives including but not limited to mentor protegerelationships joint ventures bond waiving techniques cash flow assistance material andequipment acquisition manufacturer development specifications that have only DBES orinclude equal number of DBES as non DBES as approved installers etc)

2) Will the disparity study consultant be available for implementation or information gatheringfrom other regions

5) Will WSDOT be hiring more diverse staff amp professionaltechnical service providers inother departments outside OEO to insure policies commitments and evaluations areperformed in manner that improves diversity that reflects the communities WSDOT serves bythoughtful and legal efforts increase participation thus creating successful outcomes includingpartnerships and collaborations

Thank you and Merry Christmas

Hi Dan

Thank you for providing such thoughtful public comments questions and testimony

Regarding your public testimony below - I do not believe I am not able to answer questions ifthey are public comments Please let me know what part of this email you would likeclarification on and what part you would like considered public testimony

I appreciate your thoughtful consideration of WSDOTrsquos implementation of our civil rightsprograms

Best Regards

Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

DIDaniel Seydel IIFyi Daniel J Seydel II Platinum Group LLC 2064060844 f) 2062999934wwwplatinumbusinessgroupcom Small Business is the Answer FREE TRAINING FORENTREPRENEURS amp JOB SEEKERS - Polish your skills or make your firm standout thanksto the EntrepreneurialThu 233pDI

Daniel Seydel IIThu 1272017 1123 AMInbox Sent ItemsShow all 7 recipientsTobaynejwsdotwagov ltBayneJwsdotwagovgtJackie

Per your request below are my questions and comments some of which were verbally sharedyesterday

Congratulations on receiving the blessing of additional technical assistance dollars andcompleting the DBE Disparity Study per your report

1) Do you have any reports on your outcomes from the past 5 years on DBE support servicesand specific key performance measures from previous years funding (ie how many firmsutilized what was the objectives were objectives met did outcomes meet total satisfaction ifnot why next steps what was the firms capacity before and after services were performed (ie

sales employees bonding if applicable insurance equipment line of credit if applicablenumbertype of customers how are they doing now etc))

2) What other changes or improvements other than allowing DBES to select their own serviceproviders and a staff change will be a part of this new program

3) Was consideration to provide the new mentor protege consultant rather than separating theactivities into support services andor technical assistance

Disparity study clarifications andor comments

1) Will WSDOT consider sponsoring legislation to support the policy changes and goalincreases to insure manditory goals wont be necessary

a) If not what measures will you grant primes to operate outside the box (ie entertain bestvalue over low bid modify responsiveness by subs to require adherence to meeting voluntarygoals developing standards around federally funded gccm and other low bid procurementsthat give powers to primes to meet objectives including but not limited to mentor protegerelationships joint ventures bond waiving techniques cash flow assistance material andequipment acquisition manufacturer development specifications that have only DBES orinclude equal number of DBES as non DBES as approved installers etc)

2) Will the disparity study consultant be available for implementation or information gatheringfrom other regions

3) What lessons did WSDOT learn that it did not know from the other study(s)

4) What would WSDOT do different (ie scope time line process approach etc)

5) Will WSDOT be hiring more diverse staff amp professionaltechnical service providers inother departments outside OEO to insure policies commitments and evaluations areperformed in manner that improves diversity that reflects the communities WSDOT serves bythoughtful and legal efforts increase participation thus creating successful outcomes includingpartnerships and collaborations

Daniel J Seydel IIPlatinum Group LLC 2064060844f) 2062999934wwwplatinumbusinessgroupcom

Small Business is the Answer

FREE TRAINING FOR ENTREPRENEURS amp JOB SEEKERS - Polish your skills or makeyour firm standout thanks to the Entrepreneurial Institute of Washington

httpswwwyoutubecomchannelUCKL5YeVxL29HnNxqnb6hmXA

LIKE US on FaceBook if an Active Professional Development workshop provided by EIW

Construction University helps your firm or has benefited you

httpswwwfacebookcomEIWashingtonref=hl

From Bayne Jackie ltBayneJwsdotwagovgtSent Friday December 8 2017 10139 PMTo Daniel Seydel IICc Key Earl daneiwashingtonorg Nadeem Ismail Mussie Tewelde(mteweldehydro2geotechcom) graceflyrightaolcom Mary Wenner Watkinson LarrySubject RE Seydel Dan - WSDOT Disparity Study Presentation Public Testimony Hi Dan Thank you for providing such thoughtful public comments questions and testimony Regarding your public testimony below - I do not believe I am not able to answer questions if theyare public comments Please let me know what part of this email you would like clarification on andwhat part you would like considered public testimony I appreciate your thoughtful consideration of WSDOTrsquos implementation of our civil rights programs Best Regards Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov From Daniel Seydel II [mailtodanplatinumbusinessgroupcom] Sent Thursday December 7 2017 1123 AMTo Bayne Jackie ltBayneJwsdotwagovgtCc Key Earl ltKeyEwsdotwagovgt daneiwashingtonorg Nadeem Ismailltnipaintingearthlinknetgt Mussie Tewelde (mteweldehydro2geotechcom)ltmteweldehydro2geotechcomgt graceflyrightaolcom Mary Wennerltmwenn0108yahoocomgtSubject Seydel Dan - WSDOT Disparity Study Presentation Public Testimony Jackie

Per your request below are my questions and comments some of which were verbally sharedyesterday

Congratulations on receiving the blessing of additional technical assistance dollars andcompleting the DBE Disparity Study per your report

1) Do you have any reports on your outcomes from the past 5 years on DBE support servicesand specific key performance measures from previous years funding (ie how many firmsutilized what was the objectives were objectives met did outcomes meet total satisfaction ifnot why next steps what was the firms capacity before and after services were performed (iesales employees bonding if applicable insurance equipment line of credit if applicablenumbertype of customers how are they doing now etc))

2) What other changes or improvements other than allowing DBES to select their own serviceproviders and a staff change will be a part of this new program

3) Was consideration to provide the new mentor protege consultant rather than separating theactivities into support services andor technical assistance

Disparity study clarifications andor comments

1) Will WSDOT consider sponsoring legislation to support the policy changes and goalincreases to insure manditory goals wont be necessary

a) If not what measures will you grant primes to operate outside the box (ie entertain bestvalue over low bid modify responsiveness by subs to require adherence to meeting voluntarygoals developing standards around federally funded gccm and other low bid procurementsthat give powers to primes to meet objectives including but not limited to mentor protegerelationships joint ventures bond waiving techniques cash flow assistance material andequipment acquisition manufacturer development specifications that have only DBES orinclude equal number of DBES as non DBES as approved installers etc)

2) Will the disparity study consultant be available for implementation or information gatheringfrom other regions

3) What lessons did WSDOT learn that it did not know from the other study(s)

4) What would WSDOT do different (ie scope time line process approach etc)

5) Will WSDOT be hiring more diverse staff amp professionaltechnical service providers inother departments outside OEO to insure policies commitments and evaluations areperformed in manner that improves diversity that reflects the communities WSDOT serves bythoughtful and legal efforts increase participation thus creating successful outcomes includingpartnerships and collaborations

Thank you for your hard work

Daniel J Seydel IIPlatinum Group LLC2064060844f) 2062999934wwwplatinumbusinessgroupcom

Small Business is the Answer

FREE TRAINING FOR ENTREPRENEURS amp JOB SEEKERS - Polish your skills or makeyour firm standout thanks to the Entrepreneurial Institute of Washington

httpswwwyoutubecomchannelUCKL5YeVxL29HnNxqnb6hmXA

LIKE US on FaceBook if an Active Professional Development workshop provided by EIWConstruction University helps your firm or has benefited you

httpswwwfacebookcomEIWashingtonref=hl

From Erin EhlingerTo Bayne JackieSubject Support for WSDOTs proposed DBE goalDate Wednesday December 13 2017 115417 AM

I am writing to support the WSDOT recommended DBE Goal for FHWA contracts of 190 I also want to express my appreciation for the thoroughness of the WSDOT Disparity study and howthe study disclosed the disparity in WSDOT contracts that do not have a DBE or WBE goal ndash furtherreinforcing that all women-owned firms and minority owned firms face equity issues I remain concerned with the methodology required by the Code of Federal Regulations and case lawbecause of the dependence on the availability of firms in the calculation An unintendedconsequence of removing either gender or race from the goal is that many of these firms would goout of business the availability decreases and the formula then results in a smaller DBE goal Pleaselet me know how I can help influence a change to the CFR Thank you Erin Ehlinger

Erin Ehlinger PEPresident

24036 SE 47th StSammamish WA 98029erinehlingersmartcitytrafficcom425-221-0320

From Jackie EtterTo WSDOT Disparity StudySubject Why we need mandatory goalsDate Friday December 1 2017 61859 PM

As a DBE participating in bidding process I have found that regardless of the language which claims to insurethat disadvantaged business enterprises shall not be discriminated against the only way to ensure that this does nothappen is by mandating affirmative action goals Having been overlooked time and time again because of my gender when I have submitted bids that are verycompetitive with other bidders is very frustrating I have had many instances of companies using my price to getmy non DBE competitors to lower theirs The voluntary or laudatory DBE goals do nothing to ensure a level playing fieldThe only way to ensure non-discrimination is through mandatory goals

Jackie EtterWest Star Construction of Spokane

Sent from my iPhone

From Claudia HirscheyTo Key Earl Bayne JackieSubject WSDOT DBE Goal - Comment in supportDate Tuesday December 12 2017 61937 PM

Dear Earl and Jackie The WSDOT recommended DBE Goal for FHWA contracts of 190 is a small and important increasethat can further achieve equity in WSDOTFHWA contracting I am in support of the 19 DBE Goal I also want to express my appreciation for the thoroughness of the WSDOT Disparity study and howthe study disclosed the disparity in WSDOT contracts that do not have a DBE or WBE goal ndash furtherreinforcing that all women-owned firms and minority owned firms face equity issues I remain concerned with the methodology required by the Code of Federal Regulations and case lawbecause of the dependence on the availability of firms in the calculation An unintendedconsequence of removing either gender or race from the goal is that many of these firms would goout of business the availability decreases and the formula then results in a smaller DBE goal Sincerely Claudia S Hirschey PETransportation Consulting Servicesclaudiahirscheycomcastnethttphirscheytcscom2068564988 Mobile

From Nate ThomasTo WSDOT Disparity StudySubject WSDOT Proposes DBE goal of 19Date Thursday December 7 2017 42720 PM

The WSDOT should look into similar ways the Federal Gov has handled the equal opportunity forthose that fall under the DBE status and set aside specific projects for the DBErsquos and moreimportantly UDBErsquos so these companies have better chance of landing contracts Maybe a lot 10 ofthe DBE goal to set aside for only DBEs and other 9 goal met as it is done currently with COA onlarger contracts Nate ThomasSenior EstimatorD 5095688085 | C 5099941156331 North Fancher Road | Spokane WA | 99212

The information contained in this email including any attachments is confidential and may beprivileged It is intended only for the person or entity to which it is addressed and no waiver isintended by sending this email If the reader is not the intended recipient you are herebynotified that any review retransmission dissemination or other use of or taking any action inreliance upon this information is strictly prohibited If you have received this email in errorkindly notify the sender by reply email and delete the original message from any computerThank You

From Brian FujiiTo WSDOT Disparity StudySubject WSDOT propsed DBE GoalsDate Thursday December 7 2017 110638 AM

Good morning Jackie

I wanted to comment on WSDOTs proposed DBE goal to 19 I believe WSDOTs plan toincrease the overall DBE goal to 19 will provide greater opportunities for DBE contractorsin different disciplines to participate in federally funded contracts

Without the new DBE requirement and with Proposition 200 there are limited opportunitiesfor DBE contractors in disciplines different than the typical trucking flagging and rebar Inaddition there are no incentives for general contractors to go out beyond the usual truckingflagging and rebar DBE subcontractors

Increasing the DBE goals will provide opportunities for different DBE contractors in differentdisciplines to participate in WSDOT federally funded projects

Thank you for your time

RespectfullyBrian FujiiPresident Subsurface ConstructionP 2063836478F 2069604639MDBE 4M0024998

From Forman StephanieTo Bayne JackieCc Millar Roger christinenhanmailhousegov Claudia Hirschey Sarah Corbin Jiang Yingle

efaulknerenviroissuescom Diana Giraldo Kelly CheesemanSubject WTS - Disparity Study Comment LetterDate Friday December 15 2017 71020 PMAttachments 2017_Dec 15_WTSCommentLetter_WSDOT DBE Goalpdf

Dear Ms Bayne Please find our attached letter which summarizes the WTS Puget Sound Chapterrsquos support foradvancement of women in transportation and our comment letter regarding the recent DisparityStudy Please feel free to contact me if you have any questions or would like to discuss Sincerely Stephanie S Forman PEWTS Puget Sound President Transportation Project Manager

929 108th Avenue NE Suite 1300Bellevue WA 98004D 4254681548 M 2062291745stephanieformanhdrinccom

December 15 2017

Jackie Bayne Policy and Reporting Manager

Office of Equal Opportunity

Washington State Department of Transportation

PO Box 47314

Olympia WA 98504-7314

Dear Ms Bayne

On behalf of the Puget Sound Chapter of Womenrsquos Transportation Seminar (WTS) we would

like to thank the Washington State Department of Transportation for presenting to our

organization the DBE Disparity Study results We very much appreciated the presentation by Earl

Key Director of WSDOTrsquos Office of Equal Opportunity Teresa Berntsen (Director Office of Minority

and Womens Business Enterprises) as well as Leslie Jones (Director Sound Transit Office of Small

Business Development and Labor Compliance)

Following a review of the WSDOT Disparity Study and as a result of consultation with WTS

International we would like to provide WSDOT with our comments for your consideration

As you know WTS is an organization focused exclusively on attracting retaining and advancing

women in transportation By the year 2018 there will be thousands of vacancies in the

transportation industry for qualified professionals and while women account for more than half of

the worldrsquos workforce they are a very small minority in transportation disciplines

We are pleased that the outcome of the 2017 Disparity Study that recognizes the on-going barriers

for DBEs including women-owned businesses in transportation The WSDOT recommended DBE

Goal of 190 is a small and important increase that can further achieve equity in WSDOTFHWA

contracting We are also pleased that the 2017 Disparity Study has documented the disparity in

WSDOT contracts that do not have a DBE or WBE goal ndash further reinforcing that all women-owned

firms and minority owned firms face equity issues We are encouraged that the WSDOT has asked

FHWA to rescind the 2016 waiver

While WTSrsquo mission is specific to the advancement of women we are a race-neutral organization To

this end we are also deeply concerned about the underutilization of minority owned firms There is

no equity or ldquofair playing fieldrdquo without equity for all gender and races We remained concerned with

the methodology required by the Code of Federal Regulations and case law because of the

dependence on the availability of firms in the calculation An unintended consequence of removing

either gender or race from the goal is that many of these firms would go out of business the

availability decreases and the formula then results in a smaller DBE goal This consequence is

contrary to our mission

We look forward to our continued participation in WSDOTrsquos DBE advisory group we are anticipating

notice that the 2016 waiver has been rescinded and how we can work together to continue

advancing minority and women-owned firms in the transportation field

Sincerely

WTS Puget Sound Chapter

Stephanie Forman

President

C Roger Millar Secretary WSDOT

C Representative Adam Smith 9th Congressional District Washington co Christine Nhan

WTS Puget Sound Chapter

PO Box 3461

Bellevue Washington 98009

From Dave Gent - WAPATo Bayne JackieCc Tom GaetzSubject WAPA Public Comments - RE WSDOT FHWA Disadvantaged Business Enterprise Proposed GoalDate Friday December 15 2017 14119 PMAttachments 12152017 DBE Proposed Goal - WAPA Public Comments Letterpdf

Good afternoon Jackie Please find attached WAPArsquos ldquofor the public recordrdquo comments with respect to WSDOTrsquos proposedDBE Goals FHWA funded work I assume that the Master DBE Directory was not sent to you this week so as a result we were notable to review the directory before the close of the public comment period That fact is noted withinour comment letter Thank you for your efforts Have a good weekend

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Friday December 8 2017 1219 PMTo Dave Gent - WAPA ltdavegentasphaltwacomgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hello Dave WSDOT did not take possession of this directory as part of our review process We will provide youwith the records without submitting a formal request However we need to get them from theconsultant first I will hopefully have them to provide next week I will keep you updated on therequest Have a nice weekend Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal Opportunity

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

December 15 2017

Jackie Bayne Policy Manager WSDOT Office of Equal Opportunity Delivered via e-mail to BayneJwsdotwagov RE Public Comment (as requested) to Proposed Overall DBE Goal for the FHWA (2018 ndash 2020) Ms Bayne Thank you for your presentation via webinar on December 5 2017 outlining WSDOTrsquos evaluation process used to determine the proposed overall DBE goal for the FHWA Thank you also for the Colette Holt amp Associates (CHA) DBE Advisory Group presentation made on September 14 2017 Both presentations helped to distill the findings of the 2017 Disparity Study produced by CHA In response to Earl Keyrsquos initial informal request to comment on the proposed overall DBE goal made during the DBE Advisory Committee teleconference held on October 12th we provided a list of reasons that we believe justify a lower DBE goal than is now being proposed Our initial response to Mr Keyrsquos request did not serve to influence WSDOT and the current proposed goal remains at 190 The arguments provided on October 12th against the significant increase in the proposed DBE goal (versus the previous goal and recent historic DBE participation) are repeated and supplemented below and will serve as the Asphalt Pavement Associationrsquos (WAPArsquos) official public comments

In concert with WSDOT and the OWMBE WAPA and the construction firms that WAPA represents have demonstrated a commitment to the principals of equal opportunity for all ldquoready willing and ablerdquo firms for the entire history that our DBE program has been in place WAPA has continuously demonstrated its commitment to the goals of the DBE program and for increasing the representation of disadvantaged groups within our industry as both workers and owners of firms Please recognize that WAPArsquos oversight and critique of the DBE program has always attempted to balance the principals of fair and open competition with the practical aspects of the low bid compressed schedule high performance standards demanded within the WSDOT marketplace Our comments below are meant to enhance WSDOTrsquos and OWMBErsquos understanding of the market and to hopefully have WSDOT fully consider all of the dynamics that are at play when proposing its Triennial DBE goal for FHWA projects Current DBE Capacity vs Historically Robust Market In advocating for a realistic and defensible DBE goal it has always been WAPArsquos position that it is paramount that the realities of the marketplace and true certified DBE subcontracting capacity should be a primary standard While a ldquostretchrdquo goal may appear to be progressive on its face it comes with consequences for all of the parties involved in the WSDOT federal aid contracting arena To balance the dynamics of the WSDOT contracting system the DBE goal should be tempered with the realities of the market and with a true measure of the underlying effectiveness of the DBE support services available to contractors

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 2 of 6 The first point of fact that has not been given any apparent consideration by WSDOT in its evaluation of the current capacity of certified DBErsquos is that there is an historically robust workload scheduled to be performed in the 2017 through 2022 time-frame particularly in the Puget Sound ldquoEverett to Olympiardquo corridor By WSDOTrsquos own estimates (see Attachment A) public works construction project starts in the 2018 to 2022 time-frame in this region will exceed $333 billion (B) counting the work projected from just five public entities WSDOT will be taking a decidedly ldquoback seatrdquo role during this period to Sound Transit which will have construction project starts of $226B vs WSDOTrsquos projected volume of $67B WSDOTrsquos summary publication titled Washington State Department of Transportations Proposed Federal Highway Administration Triennium Disadvantaged Business Enterprise Goal Federal Fiscal Years 2018-2020 states correctly that ldquoIncluded among the types of evidence that must be considered are the current capacity of DBEs to perform work on WSDOTrsquos federally-assisted contracts as measured by the volume of work DBEs have performed in recent yearshelliprdquo (Step Two Adjustment discussion) With the Sound Transit program being over 300 larger than the total WSDOT program in this region a sober assessment of true certified DBE capacity in the next three years needs to be considered by WSDOT If the huge construction boom over the next five years does not prompt a Step Two Adjustment then it becomes obvious that the realities of the market are being ignored by WSDOT for DBE goal setting Put another way if the 2018 through 2022 level of contracting activity does not warrant a goal adjustment what will DBE Access Barriers Not Yet Addressed The CHA 2017 Disparity Study points out multiple recommendations in Section VII that impact DBE participation and access to the market Assessments relating to those impacts and the state of maturity in addressing the CHA recommendations should be considered when assessing the DBE goal Many of the CHA recommendation have not been adequately addressed at this point in time Some of the prime examples are listed below Increase Certification and Expertise ndash The Disparity Study as explained to us includes all minority- (MBE)

and women-owned (WBE) firms that could be readily identified that perform work within Washington State and that perform work within the NAICS code framework CHA developed to cover WSDOT project work During the various presentations relating to the Disparity Study WSDOT representatives said that outreach to currently non-certified MBE amp WBE firms has increased and that WSDOT aspires to bolster its list of certified firms in the future but this effort is just beginning and the success of the effort needs to be means tested against the broader population of MBE amp WBE firms included in the CHA base line evaluation As the Disparity Study uses a much broader population of MBE WBE contractors to arrive at its conclusions (both non-certified firms and firms too large for certification) it follows that the calculated DBE proposed goal is overstated to include capacity that does not currently exist within WSDOTrsquos certified DBE framework Unless OMWBE is experiencing sudden and unprecedented success in recruiting new MBEWBE firms the DBE goal should be adjusted downward to recognize that the ldquoready willing and ablerdquo contractors that WSDOT has certified is only a subset of the total MBEWBE contracting population used in the Disparity Study evaluation

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 3 of 6

Until the promised WSDOT outreach registration efforts result in a substantial increase in available certified DBE firms it is premature to count the entire population of minority- and women-owned contractors as available to participate in WSDOT contracting It is unreasonable for WSDOT to project availability capacity using the entire MBEWBE population when only its currently truncated list of certified firms is acceptable to count toward the DBE goal

A corollary to the Increase Certification and Expertise discussion above is that the calculation of the Base Figure evidently includes the broadest practical population of MBE and WBE firms identifiable (without a review of the CHA Master DBE Directory which has not been supplied prior to the close of the public comment period the scope of the directory cannot be ascertained) If this directory includes a large population of MBEWBE firms that are not certified or are too large to be certified then the Base Figure calculation should be adjusted to reflect that certified DBE firms are a fraction of the total MBEWBE firms used to arrive at the 19 suggested DBE goal With respect to the CHA Master Directory it is our understanding the WSDOT was not given the directory as part of its evaluation of the Disparity Study and it follows that it did not evaluate the proposed DBE goal in the context of the CHA Master DBE Directory In our opinion an informed decision on adjusting the CHA baseline goal calculation can only be done after an extensive evaluation of the CHA Master DBE Directory If this has not been done WSDOT has not exercised due diligence in evaluating the context and underpinnings of the CHA Disparity Study and a certified DBE Triennium goal proposal to the FHWA is premature Increase Contract ldquoUnbundlingrdquo ndash If this proposed strategy (suggested by the CHA Study) is undertaken

certified DBE Subcontractors currently available will be engaged as Prime Contractors and the value of their prime contracts will bolster the overall percentage of certified DBE contracting but a systematic effort and strategy to ldquounbundlerdquo has not been articulated by WSDOT The key question of how this effort can be accomplished without increased cost to the taxpayers and increased inconvenience for the traveling public As noted in the CHA study (page 129 final paragraph) ldquoUnbundling must be conducted however within the constraints of the need to ensure efficiency and limit cost to the taxpayersrdquo As of this writing no overarching strategy for further unbundling with proper accountability has been articulated by WSDOT to the DBE Advisory Group

Review Insurance and Experience Requirements ndash Impediments to certified DBE participation due to

necessary insurance and experience standards cannot be solved by the prime contracting community Unless and until WSDOT puts together programs to address the burden of the substantial risks shouldered by Prime Contractors on WSDOT contracts barriers for streamlined utilization of certified DBE firms will continue to exist These market driven barriers will continue to dampen the availability of certified DBE Subcontractors that are able to perform within WSDOTrsquos strict criteria without unduly transferring risk to the Prime Contractor

Better Partnering to Overcome DBE Failures to Perform ndash Prime Contractors are held fully responsible to maintain the project schedule and are subject to project liquidated damages even when they may be struggling to deal with Subcontractor performance issues It is well-established that replacing a certified ldquocondition of awardrdquo (COA) DBE Subcontractor is very onerous and likely very costly to the Prime Contractor Unfortunately the imposition of strict and often counter-productive commercially useful function (CUF) rules often compound this issue as Prime Contractors cannot help COA DBE Subcontractors work through capacity expertise or time-related issues that impact timely performance

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 4 of 6

WSDOT needs to be a much better partner in the process of dealing with under-performing or non-performing certified DBE Subcontractors The current standard operational procedure places all of the exposure for non-performance onto the Prime WSDOT does not have an equitable system to account for non-performing or under-performing certified DBE Subcontractors hired as a condition of award (COA)

Performance Information and Training ndash Commercially useful function rules (CUF) and the lack of clear benchmark definitions for good faith effort (GFE) standards remain barriers for improving accountability within the DBE system and in turn lead to distorted DBE participation rates These items remain amorphous due to lack of training or lack of historic information Chronic uncertainty exists regarding both of these items Until WSDOT changes and improves its approach to provide transparency and certainty for both the prime bidding amp subcontracting parties true certified DBE capacity will continue to be masked and the resultant higher subcontracting costs associated with a distorted marketplace will continue to be hidden

WAPA respectfully suggests that simply adding an ldquoEstimated DBE Subcontract Premiumrdquo line to the current DBE bid forms would help to establish benchmarks that could begin to be used to ldquomeans testrdquo good faith efforts If this information had been gathered over the last 20 years of the DBE program meaningful GFE standards could have been developed and could be in place today

An in-depth review of CUF standards would also provide clarity For instance it is unclear why force account items performed by certified DBEs are currently counted at only 50 of the value of the work How was this benchmark established Has it been reviewed since imposed Did it ldquosolverdquo whatever inequity WSDOT was trying to address Better clarity may lead to more expanded opportunities for certified DBE Subcontractors

Enhanced Supportive Services and Business Development Programs ndash Unless and until stronger programs of these types are shown to be effective in boosting certified DBE business development increased DBE participation due to stronger business acumen should not be relied upon when setting the new DBE goal

Does OMWBE have a reasonable expectation that future plans for enhanced and expanded programs will be more successful than those employed in the past Assuming that certified DBE Subcontractors will be better prepared to deal with the WSDOT contracting environment than in the past should not be relied upon to boost DBE participation goals Especially troubling were the multiple references within the CHA report highlighting that DBEs believe that the staff at OMWBE lack a deep knowledge about the highway construction industry (eg Study page 129 2nd paragraph) Does OMWBE have a path forward that will address this issue and thus improve supportive services impacts

Develop a Bonding and Financing Program for SBEs ndash This is completely outside of the prime contracting

communityrsquos scope of influence WSDOT must find a way to institute changes that both protect the taxpayer and help increase certified DBE bonding capacity and access to financing ndash very large hurtles To assume that these hurtles can effectively be overcome within the 2018 ndash 2020 time frame when they have been chromic issues for the past 20 plus years of DBE program development is not rational

A helpful innovation would be for WSDOT to underwrite performance and payment bonds for certified DBE firms or to create promote a system that helps certified DBE firms obtain private bonding Bridging the gap to address capital access and performance risks (bonding) must be championed by WSDOT

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 5 of 6

Base Figure Adjustment to Address Available Subcontract Volume and DBE Prime Contracts It is a fact that mid- to large-sized MBEWBE firms that compete both as Prime Contractors and as Subcontractors are not eligible to be OMWBE certified DBEs Further the current amount of contract unbundling for greater DBE access to WSDOT prime contracting (see below) accounts for a very low dollar volume of prime contracts performed by certified DBEs Finally by specification (WSDOT standard specification 1-081) Prime Contractors are obligated to perform 30 of the total volume of the work (less specialty work) or stated another way a maximum of 70 of the dollar volume on WSDOT projects is typically available to award to subcontractors These market dynamics are NOT addressed in the Disparity Study A responsible DBE goal made absent of these facts should not be implemented A reasonable adjustment to the proposed 19 DBE goal is presented below

bull The percent of WSDOT prime contracts awarded to certified DBE firms is likely less than 5 by total WSDOT

contract volume Assuming this approximation is valid (likely very conservative) then the amount of WSDOT contract work available to certified DBE firms via subcontracting should be adjusted to account for the factors outlined above The Base Figure (19) should be adjusted to recognize that a 70 maximum subcontractor participation is available (in the numerator) and to account for the assumed 5 certified DBE prime contracts in the denominator Reasonable Base Figure Adjustment 19 (proposed) x 70 subcontracts available divide 95 of Non-Certified DBEs as Prime Contract Volume = 190 x 0737 = 140 adjusted goal This is an adjustment based on the practical dynamics of the WSDOT contracting system and it represents a more realistic look at the true subcontract volume that is available for Prime Contractors to award to certified DBE firms

Conclusions

Until the items listed above are addressed and in place it is not reasonable to believe that DBE goals can be increased by nearly 163 (from 117 to 190) When the projected robust public works contracting market is appropriately considered the true availability of certified DBE Subcontractors for WSDOT contracts will be truncated due to demand across all public works sectors With multiple strong public works programs competing for a limited population of certified DBEs the ability to meet increased WSDOT DBE goals will be severely challenged Without very clear concise and transparent good faith effort rules the ability to address DBE goals that greatly overestimate true near term certified DBE capacity will result in non-attainment bid day chaos failures to perform andor rapidly increased pricing

The clear conclusion is that at this point in time under the current circumstances without effectively instituted new programs rules procedures that could enhance the certified DBE programrsquos overall effectiveness we believe that the DBE goal should remain at or near 12 As OMWBE documents and demonstrates its future successes in improving access and eliminating capacity barriers only then should the DBE goal be re-evaluated and increased

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 6 of 6

In closing please remember that it is rare that the contracting community is asked our opinion with respect to the WSDOTrsquos DBE policies and so this letter is somewhat a vehicle to highlight collective concerns It is our belief that the majority of the Prime Contractors in Washington state support the objective of creating a level playing field for ready willing and able DBEs

If the level playing field is not yet possible in the absence of the DBE program then the key is to set realistic goals that recognize reflect and address the hard realities and market dynamics imposed by WSDOTrsquos bedrock environment of awarding contracts to the lowest cost responsible and responsive Contractor

Respectfully submitted Washington Asphalt Pavement Association

David Gent Tom Gaetz Executive Director Senior Advisor

Attachment A ndash WSDOT Central Puget Sound Public Works Contracting Projection 2018 - 2022

Con

stru

ctio

n Pr

ojec

t Sta

rts

2018

-202

2S

ound

Tra

nsit

$22

6 B

SD

OT

$08

B

Tran

sit

amp O

ther

s$1

7 B

WS

DO

T$6

7 B

Por

t of

Sea

ttle

$15

B

TOTA

L$3

33

B

Source N

ov 1

9 2

017

pres

enta

tion

to W

APA

Ann

ual M

eetin

g

Attachment A

Work (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Dave Gent - WAPA [mailtodavegentasphaltwacom] Sent Thursday December 7 2017 144 PMTo Bayne Jackie ltBayneJwsdotwagovgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hi again Jackie Irsquom fine thanks and hope you are the same Interesting The Master DBE Directory is the basis for and integral to the conclusions of the DisparityStudy Is it not then part of the information needed to fully review and comment on the DisparityStudy Was it not provided by CHA to WSDOT for review We are trying to fully understand thestudy and if this directory was part of the study why would it need to be obtained by a publicrecords disclosure It should be in the public domain and not restricted from ease of access If you are sure that a public records request is needed Irsquoll start that process but we will need tonote that point of fact when we submit our public comments If you are able to reconsider please let me know Respectfully

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Thursday December 7 2017 126 PMTo Dave Gent - WAPA ltdavegentasphaltwacomgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hello Dave I hope you are doing well

That information would likely be obtained through a public disclosure request Best Regards Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Dave Gent - WAPA [mailtodavegentasphaltwacom] Sent Thursday December 7 2017 113 PMTo Bayne Jackie ltBayneJwsdotwagovgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Jackie Can you please provide an electronic file or provide a weblink for the Master DBE Directory thatColette Holt amp Associates developed for the WSDOT Disparity Study 2017 (first referred to on Page 8of the Disparity Study) I did not see a link to this Master DBE Directory within the study Thanks

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Friday October 27 2017 1118 AMTo Kenyon Wendy ltKenyonWwsdotwagovgt Adams E W ltewadamssystemsclcomgtAdekoyaAndrew ltandrewadekoyabccomgt AlyssaBalllegwagov Anindita Mitraltamitracrea-affiliatescomgt APRISeattlehotmailcom Armstrong CharlotteltCharlieAatgwagovgt Ato Apiafi Architects PLLC ltatoaatoapiaficomgt benzfanwaorgBerntsen Teresa (OMWBE) ltTeresaBomwbewagovgt Billingsley Andrealtbillinawsdotwagovgt Bramlet Erica ltEricaBramletlegwagovgt Brooks Julius

ltBrooksJwsdotwagovgt Brown Jason ltjbrownldccorpcomgt bwallacenwlaborersorgCamden Allison ltCamdenAwsdotwagovgt carlllivingstongmailcom Cerda OscarltCerdaOwsdotwagovgt Christopher Chris ltChristCwsdotwagovgt ckerneycaawagovdanplatinumbusinessgroupcom davegentasphaltwacom David BalltDavidsignsnowmillcreekcomgt Davis Khalia ltDavisKhwsdotwagovgt Davis RaShelle (GOVltrashelledavisgovwagovgt Dayton Jo ltDaytonJwsdotwagovgt ddhondtagcwacomDebbieDriverlegwagov Dennis ltdennisahlkiewitcomgt dmcleodnwlaborersorgdrart6651gmailcom Duncan Enid lthigradeincgmailcomgt EltonltEltonwashingtonstatetruckingcomgt eprincecaawagov flemosldccorpcomfmartineznwmtnmsdcorg geoffshookatkncom glovelady ltgloveladyexcelglovescomgtGrabow Katie ltkgrabowsystemsclcomgt Guilfucci Jackie ltJackieGuilfucciskanskacomgt HealyLinda ltHealyLwsdotwagovgt Higginbotham Breanne ltHigginBwsdotwagovgt HirscheyClaudia ltclaudiahirscheycomcastnetgt Holt Colette ltcoletteholtmwbelawcomgt Huff JohnltHuffJwsdotwagovgt Iniguezchawagov JacksonMaynardlegwagov Jimmy Matta(jmattaalcantarassoccom) ltjmattaalcantarassoccomgt kellywickergovwagov Key EarlltKeyEwsdotwagovgt Kirk Jon ltjkirkwhhnfscomgt Kris Purrier ltkpurrierhwageocomgtleewabuildingtradesorg lesliejonessoundtransitorg Liz Evans ltlevansagcwacomgt LopezErin lterinlopezdeswagovgt Martha Cerna ltMarthaPSLCCORGgt Martin-Arnold EdwinaltMartinEwsdotwagovgt Mary Lerdahl ltmarydbeelectricinccomgt McCarty Hannahlthannahmccartylegwagovgt Melissa L Boyles ltmelissaboylesmwbelawcomgt Metcalf KeithltMetcalKwsdotwagovgt michaelicapaawagov Michelle ltMichelleTTCC26netgt MillarRoger ltMillarRwsdotwagovgt Nakamura Jason ltjasonnakamura1-alliancecomgtNavarroLportseattleorg olliepmt-solutionscom pastorbanksesbctacomacom PatrickHughes ltphugheshughesgroupbizgt Petersen Jodi (FHWA) ltJodiPetersendotgovgtrabbottliunaorg rcarmsteadgmailcom ricemportseattleorg Riley D ltdrileylydigcomgtSeling ltSelingjpfranciscomgt sherryharrisergosynchcom Stell MellodyltStellMwsdotwagovgt terigobintulaliptribes-nsngov timwilliamfactorycom tinaterra-tdicom tkellyldccorpcom tomgaetzmsncom vcollinsacec-waorgverlenejazzmsncom Wang Albert ltWangAatgwagovgt Waugh GregltGregWMaxKuneyComgt Yates Henry ltYatesHWSDOTWAGOVgtCc Tom Gaetz lttomgaetzmsncomgt Dave Gent - WAPA ltdavegentasphaltwacomgt VanCollins ltvcollinsacec-waorggt Daniel Seydel II ltdanplatinumbusinessgroupcomgt MaynardJackson ltJacksonMaynardlegwagovgt Carl Livingston ltcarlllivingstongmailcomgt DonMcLeod ltdmcleodnwlaborersorggt JIMMY MATTA ltjimmymattamsncomgt Prince Ed(CAAA) lteprincecaawagovgt David DHondt ltddhondtagcwacomgt Irene Reyesltgloveladyexcelsupplycompanycomgt McDaniel Craig ltMcDaniCwsdotwagovgtsherryharrisergosynchcomSubject WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Good morning On Monday October 30th WSDOT will be releasing the proposed overall Federal HighwayAdministration Disadvantaged Business Enterprise goal attached for public comment throughDecember 15 2017 This overall DBE goal is based upon the recently completely DBE ProgramDisparity Study WSDOT is proposing a 19 percent overall DBE participation goal on Federal Highway

Administration-funded projects for federal fiscal years 2018 through 2020 DBE goals fortransportation projects that receive federal funds represent a percentage of the value of work inwhich minority- and women-owned businesses should participate Once finalized and submitted toFHWA early next year the goal will be effective through Sept 30 2020

The purpose of the DBE program is to create a level playing field for firms owned and operated bydisadvantaged individuals wanting to participate in federally assisted highway transit and aviationprograms The attached overall DBE goal is for FHWA funded projects WSDOT will be updating theFTA and FAA overall DBE goals in the near future

If you have any questions please contact Earl Key Director of the Office of Equal Opportunity at3607057091 or KeyEwsdotwagov Thank you Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

  • Proof-Of-Publicationpdf
    • Mediapdf
      • AGC
      • Daily Journal
      • Daily Medium
      • DBEGood
      • OMWBE
      • Seattle Medium
      • Tabor 100
      • The Chronicle
      • Tukwila
        • King County
          • Public-Comments-20180111pdf
            • 19 DBE Requirement(1)
            • AGC Comments on Proposed 10 Goad
            • Backstrom Curb amp Sidewalk
            • comments on WSDOT proposed DBE goal
            • Cowlitz County Public Works
            • DBE Contracting goals
            • DBE Goal
            • DBE Program Disparity Study
            • Disparity Study Comments from City of Spokane
            • FW_ WSDOT News - WSDOT seeks comments on propos
            • Proposed DBE Goals
            • RE_ DBE Contracting Goal Comments
            • Re_ DBE Goal Comments
            • Re_ Seydel Dan - WSDOT Disparity Study Present
            • Support for WSDOTs proposed DBE goal
            • Why we need mandatory goals
            • WSDOT DBE Goal - Comment in support
            • WSDOT Proposes DBE goal of 19
            • WSDOT propsed DBE Goals
            • WTS - Disparity Study Comment Letter

()

WSDOT seeks comments on proposed DBE contracting goal for highway projects - Seattle MtgWSDOT seeks comments on proposed DBE contracting goal for highway projects

Comments accepted through Dec 15

OLYMPIA ndash Contractors trade and labor organizations small and disadvantaged businesses and all others who may be interested in working with the Washington State Department of Transportation are invited to comment on the agencyrsquos proposed Disadvantaged Business Enterprise goal for Federal Highway Administration contracts

DBE goals for transportation projects that receive federal funds represent a percentage of the value of work in which minority- and women-owned businesses should participate WSDOT is proposing a 19 percent overall DBE participation goal on Federal Highway Administration-funded projects for federal fiscal years 2018 through 2020

Once submitted to FHWA early next year the goal will be effective through Sept 30 2020

The purpose of the DBE program is to create a level playing field for firms owned and operated by disadvantaged individuals wanting to participate in federally assisted highway transit and aviation programs

Connecting with communities WSDOT will host a series of public meetings to provide opportunities for individuals to comment in person

Spokane meeting was held Nov 28

Vancouver meeting was held Nov 29

Seattle

2 ndash 4 pm Thursday Dec 7WSDOT Northwest Region Headquarters15700 Dayton Ave N Shoreline

Page 1 of 3WSDOT seeks comments on proposed DBE contracting goal for highway projects - Seattl

1112018httpwwwomwbewagovabouteventswsdot-seeks-comments-proposed-dbe-contracting

Date Thursday December 7 2017 - 200pm to 400pm

Other ways to provide comment Those who are unable to attend one of the meetings can participate in a no-cost webinar from 230 ndash 430 pm Tuesday Dec 5 Registration for the webinar is required Those interested in participating should email DisparityStudywsdotwagov (mailtoDisparityStudywsdotwagov)

Written comments can also be submitted by mail or email Jackie Bayne Policy amp Reporting Manager Washington State Department of Transportation Office of Equal Opportunity PO Box 47314 Olympia WA 98504-7314 DisparityStudywsdotwagov(mailtoDisparityStudywsdotwagov)

Documents detailing the methodology used for determining the FHWA DBE goals are available for review at all WSDOT region headquarters offices and at the Transportation Building 310 Maple Park Ave SE Olympia They are also available online at wwwwsdotwagovequalopportunity (httpwwwwsdotwagovequalopportunity)

WSDOT will consider all written comments received through Friday Dec 15 2017

WSDOT keeps people businesses and the economy moving by operating and improving the states transportation systems To learn more about what were doing go to wwwwsdotwagovnews (httpwwwwsdotwagovnews) for pictures videos news and blogs Real time traffic information is available at wwwwsdotcomtraffic(httpwwwwsdotcomtraffic) or by dialing 511

Americans with Disabilities Act (ADA) Information Accommodation requests for people with disabilities can be made by contacting the WSDOT DiversityADA Affairs team at wsdotadawsdotwagov (mailtowsdotadawsdotwagov) or by calling toll-free 855-362-4ADA (4232) Persons who are deaf or hard of hearing may make a request by calling the Washington State Relay at 711

Title VI Statement to Public It is WSDOTrsquos policy to assure that no person shall on the grounds of race color national origin or sex as provided by Title VI of the Civil Rights Act of 1964 be excluded from participation in be denied the benefits of or be otherwise discriminated against under any of its federally funded programs and activities Any person who believes his or her Title VI protection has been violated may file a complaint with WSDOTrsquos Office of Equal Opportunity For additional information regarding Title VI complaintprocedures andor information regarding our non-discrimination obligations please contactOEOrsquos Title VI Coordinator at 360-705-7090

Page 2 of 3WSDOT seeks comments on proposed DBE contracting goal for highway projects - Seattl

1112018httpwwwomwbewagovabouteventswsdot-seeks-comments-proposed-dbe-contracting

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aacc~~949lt7BB7lt3726C4ltG3401324ltB7ltj=9

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89lt=gtABCDgtEF39=GHIJK1L0M1JLNO1L040K420PJLJLQ0K5R015JKNON70220K445N04S0K10Q4P6N5KNNN0K4022J1TLNUTJ70VP5K1LN145KUJLW5KQU51T1TX0NT5KQ1JK101YZ0L17K1J[CL0KNZJL1015JKXYgtC]0L5KS5141JMJ77K1JK1T0QKMVNZLJZJN4Y5N04S0K10Q4_6N5KNNK1LZL5NY_]QJ02[JL4L02a5QTU0VG475K5N1L015JKMJK1L0M1NbY_QJ02N[JL1L0KNZJL1015JKZLJcM1N1T01LM5S[4L02[6K4NLZLNK10ZLMK10QJ[1TS026J[UJLW5KUT5MT75KJL51Vd0K4UJ7KdJUK4P6N5KNNNNTJ624Z0L15M5Z01bXYgtC5NZLJZJN5KQ0efZLMK1JSL022Y_Z0L15M5Z015JKQJ02JK4L02a5QTU0VG475K5N1L015JKd[6K44ZLJcM1N[JL[4L02[5NM02V0LNghei1TLJ6QTghghbgtKMN6P751141JaXG0L2VKj1V0LO1TQJ02U522P[[M15S1TLJ6QTZ1bkhOghghbCTZ6LZJNJ[1TY_ZLJQL075N1JML0102S2Z20V5KQ[524[JL[5L7NJUK40K4JZL014PV45N04S0K10Q45K45S54602NU0K15KQ1JZ0L15M5Z015K[4L022V0NN5N14T5QTU0VO1L0KN510K40S5015JKZLJQL07NbXYgtCU522TJN10NL5NJ[Z6P25M715KQN1JZLJS54JZZJL16K515N[JL5K45S54602N1JMJ77K15KZLNJKlZJW0KOgHmZb7bJKC6NbOAJSbgi01XYgtC0N1LKQ5JKa04n60L1LNHgoemA30V[05L1bOZJW0Kplt0KMJ6SLOgHmZb7bX4NbOAJSbgf01XYgtClt0KMJ6SLa04n60L1LNHeeheiAqeN1I5LM2Olt0KMJ6SLp0112OgHmZb7bCT6LNbOYMbo01XYgtCAJL1TUN1Q5JKa04n60L1LNHeqohhY0V1JKGSbAOTJL25Kbrstuvwxyz|v|~u|usCTJNUTJ0L6K0P21J011K4JKJ[1T715KQNM0KZ0L15M5Z015K0KJdMJN1UP5K0L[LJ7glkhHmlkhZb7bC6N40VOYMbqbQ5N1L015JK[JL1TUP5K0L5NLn65L4bCTJN5K1LN145KZ0L15M5Z015KQNTJ6247052Y5NZ0L51V164VUN4J1bU0bQJSbXL511KMJ77K1NM0K02NJPN6P75114PV7052JL7052l0MW5_0VKO9J25MVZJL15KQ30K0QLOX0NT5KQ1JK101YZ0L17K1J[CL0KNZJL1015JKOgt[[5MJ[n602gtZZJL16K51VO9bgtb_JjmokemOgt2V7Z50OXGfiqhmdokemJL705241JY5NZ0L51V164VUN4J1bU0bQJSbYJM67K1N410525KQ1T71TJ4J2JQV6N4[JL41L75K5KQ1TaXGY_QJ02N0L0S0520P2[JLLS5U01022XYgtCLQ5JKT04n60L1LNJ[[5MN0K4011TCL0KNZJL1015JK_65245KQOkeh30Z290LWGSbOgt2V7Z50bCTV0L02NJ0S0520P2JK25K01UUUbUN4J1bU0bQJSn602JZZJL16K51VbXYgtCU522MJKN54L022UL511KMJ77K1NLM5S41TLJ6QTL540VOYMbeqOgheob iexclcentpound currenGPJ611TG61TJL G4SL15N7K1N

13

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AringEgraveAacuteEacuteAringcentAEligEcircEumlAcircCcedilIgraveEumlAacuteAacuteAgravecentfrac14frac12IacuteAacuteAgravefrac34AacuteIcircCcediliquestAEligiexclIumlAcircAacuteEumlETHEgraveNtildeOgraveOgraveEcircAacuteAEligIacuteiquestAEligfrac14AacuteAacuteyenAacuteiquestAEligCcedilAumliquestiquestAringiquestAacuteAEligAacuteiquestAEligAringAcircAacuteAtildeAringAtildeEcircAcircCcedilETHAtildeEcircAringiquestiquestAEligCcedilAtildeOacutefrac34Aacutefrac34CcedilAumliquestAEligCcedilAacute EacuteEacuteEacuteOcircOtildeEgraveOumlOcircOumlETHtimesIgravefrac12Agravefrac34AtildeiquestAEligfrac34iquestAtildeAgrave AringIgraveAacuteEgraveAringiquestEcircEumlAcircCcedilEgravefrac12CcediliquestAacute AacuteAgravefrac34AtildeiquestAEligEumliquestiquestAacutefrac34frac34frac34ETHCcedilAacuteAringAacuteiquestAEligCcedilAumlAringOslashCcediliquestAacuteOslashIgraveNtildeNtildeIgraveOgraveETHUgraveOgraveOgravefrac12AgraveAcirc AacuteAgraveCcedilAringiquestAacuteAumlAacuteEcirciquestAEligCcedil iquest 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iquestAumlcentAgraveiquestAEligCcedilAacuteAEligfrac14AacuteAacuteAacuteAringAEligAacute frac12AEligAacuteAacuteiquestAElig iquestAuml IumlAcircAacuteAcircAEligiquestAacuteEcircaumlRSaringPREcircAringiquestOWaeligccedilegraveeacuteNRecircSaringPRAringiquestaacute)LcopyXJeumldeg1ordf-raquodegraquolaquoreg

13

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httpwwwchronlinecomnewswsdot-seeks-public-comment-on-disadvantaged-business-enterprisearticle_f5c753ea-be61-11e7-966c-972f6769d8a6html

WSDOT Seeks Public Comment on Disadvantaged Business Enterprise By The Chronicle Oct 31 2017

The Washington State Department of Transportation will be accepting public comments about the departmentrsquos proposed Disadvantaged Business Enterprise goal for federal contracts

The goal is for transportation projects receiving Federal Highway Administration funds to have 19 percent of the value of work done by minority or women-owned businesses during the 2018 through 2020 fiscal years

ldquoThe purpose of the DBE program is to create a level playing field for firms owned and operated by disadvantaged individuals wanting to participate in federally assisted highway transit and aviation programsrdquo a press release from WSDOT said

A series of public meetings will be held to discuss the goal in Spokane Vancouver and Seattle

For those who are unable to attend the in person meetings a webinar will be hosted from 230 to 430 pm Thursday Dec 5 The webinar is free but registration is required To register email DisparityStudywsdotwagov

Page 1 of 2WSDOT Seeks Public Comment on Disadvantaged Business Enterprise | News | chronlin

1112018httpwwwchronlinecomnewswsdot-seeks-public-comment-on-disadvantaged-business-

Written comments can also be submitted by mail or email to Jackie Bayne policy and reporting manager for the department of transportation at Washington State Department of Transportation Office of Equal Opportunity PO Box 47314 Olympia 98504 or by email at disparitystudywsdotwagov Comments will be considered through Dec 17 2017

More information about the goal is available at all regional offices or at the main office in Olympia located at the Transportation Building 310 Maple Park Ave SE Olympia More information can also be found online at wsdotwagovequalopportunity

Page 2 of 2WSDOT Seeks Public Comment on Disadvantaged Business Enterprise | News | chronlin

1112018httpwwwchronlinecomnewswsdot-seeks-public-comment-on-disadvantaged-business-

larr Halfway there SR 8 fish barrier removal reaches milestone New SR 26 traffic cameras available rarr

WSDOT seeks comments on proposed DBE contracting goal for highway projects

December 1 2017 | No Comments

WSDOT is seeking comments on proposed participation goals for Disadvantaged Business Enterprises on upcoming Federal Highway Administration contracts a Yakima meeting has also been added to the schedule Source WSDOT Permalink WSDOT seeks comments on proposed DBE contracting goal for highway projects

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Page 1 of 3WSDOT seeks comments on proposed DBE contracting goal for highway projects | Tukw

1112018httptukwilatowingcom20171201wsdot-seeks-comments-on-proposed-dbe-contracting

From Liz EvansTo Bayne JackieSubject AGC Comments on Proposed 10 GoadDate Tuesday December 12 2017 50314 PMAttachments WSDOT Proposed Goal - AGC Comments FINALdocx

Hi there Jackie Attached are AGCrsquos comments on WSDOTs proposed 19 goal We will also be mailing you a copy Thanks for the opportunity to comment and we hope you find it helpful Regards Liz Liz Evans CAE Northern District ManagerAGC OF WASHINGTONTel 3602238757 | wwwagcwacom JOIN US for the 2018 AGC of Washington Annual Convention amp Technology Expo Jan 26

CUsersmwillmsPicturesInland AGCLogo_RGB_Half_5in

December 12 2017

Page 5

December 12 2017

VIA EMAIL amp US MAIL

Ms Jackie Bayne Policy amp Reporting Manager

Washington State Dept of Transportation

210 Maple Park Ave SE

PO Box 47314

Olympia WA 98504

RE WSDOT Proposed FHWA Triennium Disadvantaged Business Enterprise Goal

Dear Ms Bayne

This letter summarizes the views of the Associated General Contractors of Washington and Inland Northwest Associated General Contractorsrsquo (hereafter referred to collectively as AGC) regarding the Washington State Department of Transportationrsquos (WSDOT) recently proposed FHWA Triennium Disadvantaged Business Enterprise (DBE) Goal (the ldquoProposed Goalrdquo) AGC shares WSDOTrsquos commitment to continue the promotion of DBE firms but AGC is concerned the Proposed Goal which is a significant increase from the previous goal and actual utilization may have unintended consequences and could impose significant burdens on both prime contractors and DBE contractors alike AGC requests WSDOT reconsider its Proposed Goal and adjust the Proposed Goal to account for inevitable availability and capability issues including the lack of a formal retraction of the non-minority woman owned business waiver that makes up over half of the Proposed Goal Implementing an unachievable goal will only be to the detriment of the DBE program

1 AGCrsquos Membersrsquo Interest in WSDOTrsquos Proposed Goal

Together AGC of Washington and Inland Northwest AGC represent and serve the commercial industrial and highway construction industry These professional associations of commercial contractors are comprised of more than 900 members who have joined together to enhance the performance of their industry and build a better climate for construction operators many of which are small and closely held businesses

Like WSDOT AGC is firmly committed to the principals of equal opportunity and promoting efforts to ensure minority women and veteran owned businesses are properly represented In both its political advocacy and membership programs AGC has demonstrated its commitment to increasing the representation of disadvantaged groups in the construction industry as both workers and owners of firms For AGC this is both an issue of principles and a practical one The construction industry as a whole is facing a critical shortage of workers and it is imperative that the industry attract new participants Among AGCrsquos activities demonstrating this commitment are the following

middot AGC has an ongoing ldquoContractor Exchangerdquo program through which small minority- and women-owned subcontractors are offered one-on-one networking opportunities with established general contractors

middot The AGC Education Foundation provides financial support to construction-related programs in K-12 schools and conducts outreach specifically targeted at low income disadvantaged and female students

middot More than 2500 students most from inner-city schools participate in annual AGC-sponsored Construction Career Days in King Pierce and Spokane Counties

middot AGC supports the Pre-Apprenticeship Construction Training (PACT) program at Seattle Vocational Institute This program is focused on preparing underrepresented communities to be highly qualified applicants and successful apprentices in the construction trades

middot AGC is a sponsor of the Turner School a training course for minority- and women-business owners in the construction industry

middot AGC supports the National Association of Women in Construction (NAWIC) which provides professional development and other services to its members

middot AGC routinely supports legislative efforts aimed at supporting small businesses and encouraging small business participation

middot AGC recently formed a Diversity and Inclusion Committee comprised of both prime and DBE participants The purposed of the committee is to expand opportunities for DBE members and to help AGC consider diversity in decision-making Recently AGC approved a deeply discounted introductory dues structure for certified DBE members

middot AGC is a WSDOT partner on the new mentorproteacutegeacute program

AGCrsquos experience has been that the most effective approach is to help make emerging businesses successful through outreach training and public policies that will grow their capacitymdashnot by imposing mandates without clear evidence as to the mandates feasibility

2 WSDOTrsquos Proposed Goalrsquos Impacts To The Construction Industry

WSDOTrsquos Proposed Goal is 190 The Proposed Goal is based upon the recent Collete Holt amp Associates (CHA) Disparity Study released in 2017 With respect to availability the Disparity Study reports the following weighted availability for FHWA-Funded projects

Thus the 190 goal factors in Black Hispanic Asian Native American and White Women into its availability As indicated however this 19 goal raises a number of concerns

a WSDOTrsquos 19 Proposed Goal Represents a Significant Increase Without Concrete Evidence of Available And Capable DBE Firms

First WSDOTrsquos Proposal Goal of 190 represents a significant increase as compared to actual DBE participation (141 in 2014 117 in 2015 and 151 in 2016) as well as the last FHWA proposed goal of 116 for 2014-2018 See WSDOTrsquos Proposed Goal and Interim FHWA Overall DBE Goal Methodology FFY 2014-2018 The Proposed Goal is 74 more than the last goal which represents a 638 increase and a 52 increase over the average actual utilization for 2014-2016 While Contractors were exceeding the previous 116 goal this is primarily based on the fact that WSDOT previously requested a waiver to consider non-women-owned businesses and the waiver was not granted and effective until June 2017 (meaning that for 2014-2016 women were counted towards race-conscious goals and inevitably a higher overall percentage of DBE firms were utilized)

Contractors struggle to meet present DBE goals due to the relatively low availability of experienced and certified DBE firms By increasing the goal WSDOT is understandably trying to increase the participation of underrepresented firms Drastically increasing the goals (by over 5 of actual utilization) without concrete evidence that there is sufficient availability andor capability of such firms however will have the opposite effect Notably this lack of availability and capacity of DBE firms was discussed in detail in the Disparity Study For example the CHA Disparity Study notes a number of concerns of DBE firms while technically ldquoavailablerdquo with respect to the goal percentages are unable to meet the requirements necessary to fulfill the contract including purchasing the equipment necessary having available labor and ability to meet insurance and financing requirements Thus while there may be ldquoavailablerdquo firms there is not clear evidence (and if fact evidence to the contrary) that those available firms are capable and available to perform the majority of the FHWA-Funded contracts let by WSDOT

An additional example affecting DBE capability and availability that is not factored into the CHA Disparity Study or WSDOTrsquos Proposed GOAL is DBE ability to enter into Project Labor Agreements (ldquoPLAsrdquo) WSDOT has indicated their interest in pursuing a PLA AGC Members have raised concerns based on repeated experiences that many DBE firms due to the administrative and cost impacts refuse to enter into PLAs precluding those firms from performing certain work or increasing costs Again this lack of ability (or refusal) to perform should also be factored into WSDOTrsquos Proposed Goal which is not currently the case

b The Proposed Goal Does Not Account For The Current Non-Minority Woman Owned Business Waiver Still In Place

Second despite the significant increase WSDOT does not account for the current waiver of non-minority women owned businesses that remains in place As noted in WSDOTrsquos proposal comments WSDOT previously sought and received a waiver of the regulation that White females as a group are presumptively disadvantaged This waiver was heavily criticized by many including AGC and the results of the most recent CHA Disparity Study confirmed that White females are presumptively disadvantaged and do not enjoy a level playing field for USDOT-assisted contracts Therefore the CHA Disparity Study recommends that this group be returned to the status of goal credit eligibility WSDOT has sought a recession of the waiver but has not yet to our knowledge received a rescission of the waiver Nevertheless the 19 Proposed Goal still includes White women In fact of the 19 availability percentage White women represent 103 (over half) Accordingly for WSDOT to proceed with the 19 goal WSDOT must receive the rescission of the waiver for this goal to be even remotely possible to achieve If the rescission is not received the Proposed Goal must be adjusted

C The Proposed Goal Does Not Account For Availability Differences Across The State

Third the Proposed Goal does not account for availability difference across the state Eastern Washington contractors with an even scarcer pool of available and qualified DBE firms in the area as is the case now will be forced to subcontract to Western Washington firms paying transportation and per diem premiums for such work The CHA Disparity Study again provides numerous excerpts of anecdotal evidence demonstrating that the goals in Eastern Washington are too high A few of the contractor comments on the topic are as follows

When you apply those same goals to a different geographic region a different project site for a large firm to meet those goals is difficult because theres not necessarily the expertise in parts of the project that were submitting on

Theres very few DBEs over here [in Eastern Washington] Next year theres going to be even more work over here What are we going to do with all these goals We always meet the goals like I said youve got three four DBEs over here to do all the work and then they cant perform

There are just no [minority-owned] DBEs available in eastern Washington

See CHA Disparity Study at p 54 Again these are factors that should be taken into account in developing the Proposed Goal or at the very least its application WSDOTrsquos Proposed Goal however is silent as to this significant issue

When the lack of available firms with the capacity to perform significant DBE projects is coupled with the increased goals the price of WSDOT contracts will inevitably increase to the significant detriment of Washington taxpayers and the public entities Inevitably with a lack of available qualified firms the lack of competition will become evident and small qualifying contractorsrsquo prices will increase due to supply and demand principles as they become selected for projects and less able to take on additional work These increased DBE contract values will be passed on to the public agency and taxpayers which translates into fewer dollars available for the sorely needed and promised infrastructure upgrades In addition the instance of bid protests will inevitably increase potentially delaying projects and further diverting agency resources from badly needed infrastructure upgrades to resolving unnecessary disputes or rebidding the projects altogether

Finally faced with such drastic and potentially impossible requirements if adjustments are not made contractors may focus more on demonstrating good faith efforts Both a contractor who meets the required goal and a contractor that demonstrates good faith efforts are eligible for award It is likely that the contractor relying upon good faith effortsmdashwho will have a lower price than the other contractor who sacrificed price to actually meet the goalmdashwill be selected by the public agency This outcome will erode the total percentage participation of eligible firms and would clearly be inapposite of WSDOTrsquos intentions

3 Conclusion and Request

AGCrsquos members have asserted these and multiple other concerns Implementing an increased goal across the state and all contracts without clear evidence of available DBEs capable of performing the work and meeting the project requirements will have significant and far-reaching impacts on the construction industry many of which work against the aim of the Proposed Goal itself AGC requests WSDOT reconsider its Proposed Goal of 19 and make adjustments to account for the capability of DBE firms the lack of a rescission of the non-minority waiver and the lack of available DBE firms in parts of the state This Proposed Goal and its impacts on the construction industry will be irrevocable and will be to the detriment of taxpayers It is prudent to address these adjustments before implementing the Proposed Goal

Very truly yours

David DrsquoHondtCheryl Stewart Executive Vice President AGC of WashingtonExecutive Director Inland Northwest AGC

AGC of Washington bull 410 11th Avenue SE 203 Olympia WA 98501

Inland Northwest AGC bull 4935 E Trent Avenue Spokane WA 99212

image3jpeg

image1png

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image4png

image5jpeg

From Steve SmithTo WSDOT Disparity StudyCc Bayne JackieSubject 19 DBE RequirementDate Thursday December 14 2017 31947 PMAttachments DBE List and NAICS Listingpdf

Disparity Committee I recently read in The Daily Journal of Commerce that WSDOT plans to adopt a 19 DBEstandard for all FHWA funded projects early next year Our company S amp K Painting Inc is abridge painting company which is based in and works exclusively in Oregon and Washington Ihave been the owner of this firm since 1978 when it was first established My concerns aboutthe proposed 19 DBE requirement is as follows 1 There are very few opportunities for subcontract work on bridge repaint jobs These jobsare usually limited to cleaning and painting the bridge The only other facet of the project istraffic control which is almost always 3 or less of the project total cost The traffic controldoes provide a very good subcontracting opportunity 2 The NAISC code of 238320 includes bridge painting but also includes house painting wallcovering rust proofing etc which have almost no similarities to bridge painting When thiscode is used to determine the number of available firms (DBE or otherwise) that are availablefor bridge painting project this badly skews the numbers I would suggest that bridge paintingcontractors make up less than 5 of all firms in NAISC code 238320 3 If future WSDOT bridge painting projects require a 19 DBE participation A The qualified pool of DBE subcontractors available to submit pricing on any facetother than traffic control will be very limited I reviewed a list of 19 certified DBE firms listedunder painting at the WSDOT website and only recognized one firm from past projects B The number of prime bidders and competition will fall The state will incur highercosts due to this fact C Prime bidders will be forced to subcontract unqualified contractors just to be eligiblefor contract awards This will likely reduce the quality of the finished project Thank you for considering my concerns I may not have verbalized my thoughts as well as Iwould have liked but I have been in this business for almost 40 years and truly believe what Ihave said Sincerely

Steve Smith President

SampK Painting incP O BOx 390clacKamaS OregOn 97015Phone (503) 557-5544Fax (503) 557-5566Cell (503) 260-5280Steveskpaintingcom

From Lei WuTo Bayne JackieSubject comments on WSDOT proposed DBE goalDate Thursday December 14 2017 94925 PM

To Whom It May Concern

Below is my comments

The WSDOT recommended DBE Goal for FHWA contracts of 190 is a small andimportant increase that can further achieve equity in WSDOTFHWA contracting I am insupport of the 19 DBE Goal

I also want to express my appreciation for the thoroughness of the WSDOT Disparity studyand how the study disclosed the disparity in WSDOT contracts that do not have a DBE orWBE goal ndash further reinforcing that all women-owned firms and minority owned firms faceequity issues

I remain concerned with the methodology required by the Code of Federal Regulations andcase law because of the dependence on the availability of firms in the calculation Anunintended consequence of removing either gender or race from the goal is that many of thesefirms would go out of business the availability decreases and the formula then results in asmaller DBE goal

Thanks

Lei

Lei Wu PE AICP

Principal CSL Consulting

LeiWucsl-consultingnet

(425)562-6275

From Stephanie SimpkinsTo WSDOT Disparity StudySubject DBE Contracting goalsDate Wednesday November 29 2017 20259 PM

My name is Stephanie Simpkins and I own North Star Enterprises It is a large womanowned traffic control company located in Spokane Washington My mother founded thecompany in 1984 and I have worked in this family owned business most of my life Ipurchased the business from her in 2013 and have been sole owner since then My company thrived under the Disadvantaged Business Enterprise (DBE) Programimplemented by Washington Department of Transportation and administrated by United StatesDepartment of Transportation What started as a small business with one truck and a fewemployees has grown over the years to be one of the largest traffic control companies in thestate and employee countless people every construction season It has not been an easy roadover the years being a woman in the construction industry never is and it is hard to say wherewe would be now if it werenrsquot for the assistance of the DBE program As you know in June of 2017 majority women were removed from the DBE program basedon a disparity study conducted in 2012 On March 2014 Washington Department ofTransportation requested a wavier to remove majority women from the DBE program Thishas had an immediate and drastic impact on my business and all who work for me From themoment the waiver was approved and my company could no longer be used as a condition ofaward at bid time I began losing work Most recently the 2018 North Central Region ChipSeal which we have worked on for the last 10 years This contract provides work forapproximately 40 employees for the entire construction season I have already been told byseveral contractors that with such a high UDBE goal they wont even be able to consider mefor this project This loss along with several other smaller contracts to date are painting avery dismal future for my business With all of this turmoil surrounding the future of my business I find it frustrating to say theleast that WSDOT has chopped me off at the legs by not allowing my firm to count for theCOA but can use the little participation I may still contribute to help them reach their overallstate goal How is this fair If the contractors canrsquot utilize my business than neither shouldWSDOT As far as setting future state DBE contracting goals it looks as if the bar will beraised once again all while excluding the largest subset of useable DBErdquoS To me raising theoverall state goal at this time (which is already challenging to meet) with women DBErsquosexcluded from the program seems horribly ill timed

From Karen R BannishTo Bayne JackieSubject DBE GoalDate Tuesday December 5 2017 32549 PM

Hello Jackie ndash thank you for the webinar today concerning the proposed Overall DisadvantagedBusiness Enterprise Goal for the Federal Highway Administration I understanding the DisparityStudy much better now and checked the document you mentioned on the WSDOT website Pacific County is located in the Southwest corner of the State of Washington The tip of the LongBeach Peninsula would be 2 frac12 hours from Interstate 5 Our federal work primarily includes strictlyoverlay projects with 12 or fewer items of work included in the contract When bidding a project(our contracts are usually less than $500000) we sometimes received a single bid from the process Due to our proximity and the small cost for the work it is difficult to entice DBE participation Thereare simply no items of work that can be performed Having a mandatory DBE goal placed upon theproject in a rural area simply to meet the disparity guidelines will only increase the cost of theproject We feel the goals should be set in balance with the cost of the project and the items of work and notsimply directed to meet the overall goal

Karen BannishSenior Engineering TechnicianPacific County Department of Public Works211 North Commercial StreetRaymond WA 98577(360) 875-9368

From Dawn EgbertTo Bayne JackieSubject DBE Program Disparity StudyDate Tuesday December 5 2017 23825 PM

Hi JackieThank you for the great information on the call today You talked about the small works rosterbriefly We had a conversation in our office today about small contractors who are signed up on thePort of Vancouverrsquos small works roster Our team has had opportunity to talk to some of thecompanies on our roster who are women owned or minority owned businesses but they arenrsquotsigned up as a DBE firm When asked about that theyrsquove mentioned that they donrsquot want to fill outthe additional paperwork required to obtain the certification as a DBE As for the DBE goal at 19 it doesnrsquot seem to present an issue for the majority of our projects ndashespecially those where we would apply FHWA funds if granted However if we did happen to have aproject that didnrsquot include classifications of work where DBE certified participants are availablewould there still be an exception or a good faith efforts clause Thanks again for your time Dawn EgbertProcurement Services Manager3103 NW Lower River Road Vancouver WA 98660Direct 3609921102 | Cell 360448-9867 | Main 3606933611 | Fax 360735-1565degbertportvanusacom | wwwportvanusacom | available port properties Leadership | Stewardship | Partnership

From Feist MarleneTo WSDOT Disparity StudyCc Simmons Scott M Twohig KyleSubject Disparity Study Comments from City of SpokaneDate Friday December 15 2017 52226 PMAttachments image010png

image011pngimage012png

December 15 2017 Jackie BaynePolicy amp Reporting ManagerOffice of Equal OpportunityWashington State Department of TransportationPO Box 47314Olympia WA 98504-7314 RE Proposed DBE Contracting Goal for Highway Projects Dear Ms Bayne The City of Spokane would like to provide comments related to proposed DisadvantagedBusiness Enterprise Goal for Federal Highway Administration (FHWA) contracts by theWashington State Department of Transportation (WSDOT) Office of Equal Opportunity Manyof our projects receive funding from FHWA and as such the proposed new goals areapplicable to City work The City is supportive of the programrsquos purposemdashldquoto create a level playing field for firmsowned and operated by disadvantaged individuals wanting to participate in federally assistedhighway transit or aviation programsrdquo However the City is concerned about the ability to achieve the proposed utilization rate of upto 19 percent for DBEs in Eastern Washington considering the low number of DBEs in ourregion and the record construction under way in the City and in our region WSDOTrsquos DBE Program Disparity Study notes ldquoContractors in Eastern Washington repeatedlyreported that the goals on projects in their area are too highrdquo The Inland NorthwestAssociated General Contractors group notes that only about 12 DBEs in construction fields areavailable in the greater Spokane area Meanwhile the City has performed record construction in each of the last three years withproject totals hovering around $100 million Our City work has been bolstered by anaggressive program to improve water quality in the Spokane River Our local school districtsand our neighboring jurisdictions also have aggressive construction programs right now

Additionally we expect WSDOTrsquos work in this region to accelerate as North Spokane Corridor(NSC) construction proceeds At times our area is reaching the limits overall of our contractingcommunity the City has worked to release its projects in the first quarter of the year as muchas possible to lock in contractors and receive better pricing The capacity of existing DBEs in our region simply cannot meet that current high demand Some DBE firms are tempted to agree to more work in these times but we have found that insome cases DBEs have stretched themselves too thin On two recent City projects generalcontractors were unable to meet DBE goals as a result of DBE firms that couldnrsquot fulfill theircommitments for providing personnel or equipment It also seems implausible to expect DBEs from the West Side to mobilize teams to work on Cityof Spokane projects in large numbers In fact the Disparity Studyrsquos author responded at arecent meeting on this topic that a DBE from the West Side only very rarely completes workon the East Side of the state We would also be concerned about moving the good-paying jobs that construction providesoutside of our region The Cityrsquos median household income is $44350 considerably lower than theState of Washington MHI of $64129 and the Seattle MHI of $77351 Our leaders are working tocreate good-paying jobs for our citizens not export them to an already wealthier part of the state Additionally these projects are also funded with local dollars and our citizens expect their money toput their neighbors to work With the above considered the City is seeking

middot DBE goals for the 2018-2020 compliance period for Eastern Washington that arereflective of the current availability of DBE firms in our region

middot The re-inclusion of non-minority women owned DBEs in achieving DBE goals InSpokane non-minority women owned DBEs make up the majority of the availableDBEs And current information shows that women in Spokane overall still lag behindmen in opportunities and wages The Cityrsquos own ldquoGender and Racial Equityrdquo reportfrom 2016 noted that overall working women earned 783 percent of the earnings ofworking men in 2014 down from 827 percent in 2009 We need to lift up all women

middot The development of WSDOT programs to encourage the growth of existing andnew DBEs who can be used on street and highway projects We are encouraged by theproposed mentorproteacutegeacute program to increase the number and capacity of DBEs inEastern Washington Programs that address other barriers such as assistance withcompleting documentation or access to bonding capacity also could aid growth ofDBEs

middot The ability for WSDOT to adjust goals on a project if a selected DBE is unable tocomplete its commitments on a project This would help enable our contractors totake a chance on a new or inexperienced DBE to complete work

middot Recognition of local programs that strive to increase diversity in the work force Forexample the City operates a robust apprenticeship program that requires 15 percentof the labor hours on public works jobs greater than $600000 to be performed byapprentices The apprentice programs in our region are stepping up recruitmentefforts and are specifically seeking to recruit more youth women and minorities intoapprentice slots

As we seek to achieve the goal of increasing participation in street and highway constructionby companies owned by disadvantaged individuals we must also acknowledge that businessdevelopment and growth happens over time We must lay the groundwork now to build abase of DBEs that can help us achieve higher utilization goals over time Sincerely Marlene FeistDirector of Strategic DevelopmentPublic Works amp UtilitiesCity of Spokane

Marlene Feist | City of Spokane | Public Works Director of Strategic Development5096256505 | cell 5097109214 | mfeistspokanecityorg | spokanecityorg

From Hall MattTo WSDOT Disparity StudySubject FW WSDOT News - WSDOT seeks comments on proposed DBE contracting goal for highway projectsDate Friday December 15 2017 11956 PMAttachments WSDOT proposed DBE goal through 2020pdf

From Hall Matt Sent Friday December 15 2017 117 PMTo BayneJwsdotwagovCc Keniston Rick (KenistRwsdotwagov) MolyneKwsdotwagov SusanWilsonclarkwagovSubject WSDOT News - WSDOT seeks comments on proposed DBE contracting goal for highwayprojects Hello Jackie Please see our comments attached regarding the WSDOT proposed DBE goals Thanks for the opportunity to provide comments Matt HallClark County Public Works Washington State Department of Transportation ndash NEWSHeadquarters ndash 310 Maple Park Avenue SE ndash Olympia WA 98504-7314 ndash 360 705-7000 FOR IMMEDIATE RELEASEOct 30 2017 Contact Jackie Bayne Office of Equal Opportunity 360 705-7084

WSDOT seeks comments on proposed DBEcontracting goal for highway projectsComments accepted through Dec 15OLYMPIA ndash Contractors trade and labor organizations small and disadvantaged businessesand all others who may be interested in working with the Washington State Department ofTransportation are invited to comment on the agencyrsquos proposed Disadvantaged BusinessEnterprise goal for Federal Highway Administration contractsDBE goals for transportation projects that receive federal funds represent a percentage of thevalue of work in which minority- and women-owned businesses should participate WSDOTis proposing a 19 percent overall DBE participation goal on Federal Highway Administration-funded projects for federal fiscal years 2018 through 2020Once submitted to FHWA early next year the goal will be effective through Sept 30 2020The purpose of the DBE program is to create a level playing field for firms owned andoperated by disadvantaged individuals wanting to participate in federally assisted highwaytransit and aviation programsConnecting with communitiesWSDOT will host a series of public meetings to provide opportunities for individuals tocomment in person

Spokane

2 ndash 4 pm Tuesday Nov 28WSDOT Eastern Region Headquarters2714 N Mayfair St Spokane

Vancouver

2 ndash 4 pm Wednesday Nov 29WSDOT Vancouver Headquarters11018 NE 51st Circle Vancouver

Seattle

2 ndash 4 pm Thursday Dec 7WSDOT Northwest Region Headquarters15700 Dayton Ave N Shoreline

Other ways to provide commentThose who are unable to attend one of the meetings can participate in a no-cost webinar from230 ndash 430 pm Tuesday Dec 5 Registration for the webinar is required Those interested inparticipating should email DisparityStudywsdotwagovWritten comments can also be submitted by mail or emailJackie Bayne Policy amp Reporting ManagerWashington State Department of TransportationOffice of Equal OpportunityPO Box 47314Olympia WA 98504-7314DisparityStudywsdotwagovDocuments detailing the methodology used for determining the FHWA DBE goals areavailable for review at all WSDOT region headquarters offices and at the TransportationBuilding 310 Maple Park Ave SE Olympia They are also available online atwwwwsdotwagovequalopportunityWSDOT will consider all written comments received through Friday Dec 15 2017 Hyperlinks within this release

WSDOT Region offices wwwwsdotwagovContactofficelocationhtmregion

WSDOT keeps people businesses and the economy moving by operating and improving the statestransportation systems To learn more about what were doing go to wwwwsdotwagovnews forpictures videos news and blogs Real time traffic information is available at wwwwsdotcomtraffic or bydialing 511 Americans with Disabilities Act (ADA) InformationAccommodation requests for people with disabilities can be made by contacting the WSDOTDiversityADA Affairs team at wsdotadawsdotwagov or by calling toll-free 855-362-4ADA (4232)Persons who are deaf or hard of hearing may make a request by calling the Washington State Relay at711 Title VI Statement to Public It is WSDOTrsquos policy to assure that no person shall on the grounds ofrace color national origin or sex as provided by Title VI of the Civil Rights Act of 1964 be excluded fromparticipation in be denied the benefits of or be otherwise discriminated against under any of its federallyfunded programs and activities Any person who believes his or her Title VI protection has been violatedmay file a complaint with WSDOTrsquos Office of Equal Opportunity For additional information regarding Title

VI complaint procedures andor information regarding our non-discrimination obligations please contactOEOrsquos Title VI Coordinator at 360-705-7090 To unsubscribe to WSDOT media releases please reply and type REMOVE in the subject line

This e-mail and related attachments and any response may be subject to public disclosure under state law

From Cochrane EmilieTo WSDOT Disparity StudyCc Eugenis Susan Cowlitz Co Public Works - Brad BastinSubject Proposed DBE GoalsDate Thursday December 14 2017 85006 AMAttachments image002png

DBE Goals - Commentspdf

Please see the attached letter with comments regarding the proposed DBE Goals Ahard copy will be sent out today

Thanks

Emilie CochraneCowlitz County Public Works1600 ndash 13th Avenue SKelso WA 98626360-577-3030 ext 6523

From Michelle WolcottTo Bayne JackieCc Robideau Christopher LSubject RE DBE Contracting Goal CommentsDate Tuesday November 7 2017 65448 AMAttachments image001png

Thank you JackieWhat a relief to know that we have been heard and are not the only small business facing thisstruggle Your email is comforting

Yes you can provide us with additional assistanceLet me introduce my boss and Senior Vice President of Red Plains Professional Chris Robideau

Chris will be your contact from here since I will be leaving the company November 17th As a WA DBE we are ldquoeligible for limited DBE Support Services (SS) funding when funds becomeavailablerdquo When will this happen And are we registered or on a list to receive fundingIs the WSDOT ICR Training a prerequisite for the funding Or just helpful knowledge

Thank you for your time Jackie I will follow through with the training

Michelle Wolcott EIT Quality Control Engineer

2103 NE 129th Street Suite 201 Vancouver WA 98686 Office (360) 448-7999 Fax (360) 258-0274

wwwred-plainscom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Monday November 6 2017 332 PMTo Michelle Wolcott ltMichelleWolcottred-plainscomgtSubject RE DBE Contracting Goal Comments

Hi Michelle

Thank you for your interest in doing business with WSDOT I apologize for the lack of informationyou have come up against in your attempts to attain access to WSDOT ICR program

As you may well know WSDOT has recently completed a state wide agency specific diversity studyAnecdotal comments submitted with the study concur with your experience Not only did somerespondents find it difficult to become prequalified they also commented that the required indirectrate of 110 percent is too low to be profitable These requirements are currently under advisementby WSDOT and new DBE program requirements are currently in the process of seeking public input

As you are an OMWBE certified DBE in Washington State you will be eligible for limited DBE SupportServices (SS) funding when these funds become available At that time funds may become availableto assist you in your struggle to attain ICR eligibility Here is a link to WSDOTrsquos Indirect Cost RateTraining httpswwwwsdotwagovAuditICRTraininghtm If you would like me to find additionaltraining or information please let me know

If I can provide additional assistance of information please let me know

Best Regards

Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Michelle Wolcott [mailtoMichelleWolcottred-plainscom] Sent Tuesday October 31 2017 835 AMTo WSDOT Disparity Study ltDisparityStudyWSDOTWAGOVgtSubject DBE Contracting Goal Comments

HelloI have been in contact with WSDOT for 6 months sharing my disparaging story of beinga small DBE unable to submit SOQs for projects requiring a WSDOT Audited IndirectCost Rate Approval We do not have an in-house accountant and our outsideaccountant has explained to get all the paperwork together for WSDOT would take 40hours of work $9000 annually We cannot justify this cost to submit on a project thatwe may not acquire We have been directed to seek financial assistance from WSDOT Federal SBA andWashington State Office for Women and Minority Owned Enterprises all of whichprovided negative responses

As a DBE business in 11 states we are supporting the 19 incentive for federallyfunded contracts but we are frustrated in the fact that we will not be one of the luckyfew to participateWe have been in business 20 years From our Vancouver Washington office our clientsare the Native American tribes across the country with all contracts federally funded This summer alone the WSDOT ICR Approval has squashed our ability to submit on twoprojects that we were perfectly qualified to performI have attached previous emails to show a sample of who I have been dealing with

Thank you

Michelle Wolcott EIT Quality Control Engineer

ltimage001pnggt

2103 NE 129th Street Suite 201 Vancouver WA 98686 Office (360) 448-7999 Fax (360) 258-0274 wwwred-plainscom

From Michelle Wolcott Sent Monday July 10 2017 954 AMTo Harvey Schatzie ltHarveySwsdotwagovgtSubject RE WSDOT Indirect Cost Rate Process

Good Morning Schatzie

This is Michelle Wolcott from Red We spoke Friday June 30th about the ICRprocess and you were very encouraging I relayed the information to my boss who ishere in Vancouver then he shared with the president bookkeeper and our accountantin Oklahoma We had FAR compliance with Oklahoma DOT in 2015 so we are noteligible for the Safe Harbor Program Our account said our timekeeping system doesnot breakdown the hours and pay in the format WSDOT wants to have it presented andto get the documents in order would take the CPA and an assistant $9000 in paidhours of work It turns out this would have to be annually The other option is to hirean outside CPA firm to do the audit for us at $20000 annually

Our president said in the past we received funding assistance from the Stateof Oklahoma to get our ICR approval Does WSDOT offer any financial assistance for small businesses to reach compliance We are also a DBE in WA I have requested the same information from WA PTAC at theVancouver Chamber of Commerce and from WA Office of Minority and Women OwnedBusiness Enterprises and they both said there was nothing but suggested to askWSDOTThank you for your helpMichelle Wolcott EIT

Hello Michelle sorry but I am not aware of any grants But I was looking at this andthere is a POC at the bottom you may try to discuss the audit issuesHollyHolly BoehmeBusiness Opportunity Specialist | 8(a) Business Development ProgramUS Small Business Administration bull Seattle District Office

Hello Michelle -

Thank you for your email Im not aware of any funding available for thispurpose but do agree its quite a bit for a DBE firm to have as an expense Mostof the firms I work with do a lot more work on the Oregon side so perhaps thereare programs available that I just havent heard of Im copying my colleagueHoly Boehme in our Seattle District Office to see if they are aware of any suchassistance

Holly might there be some small business incubators or other resources availablein WA to help a small firm with the expense of getting a WSDOT AuditedIndirect Cost Rate approval Please reply all with anything you may have

Thank you

Yuri Yoshida Dyson Business Opportunity SpecialistUS SMALL BUSINESS ADMINISTRATION Portland District OfficePhone 503-326-6692 Fax 202-292-3872 wwwsbagovor

From Troy HalbergTo Bayne JackieSubject Re DBE Goal CommentsDate Wednesday December 13 2017 35533 PM

JackieToday was another example of why the goals should not be raised There were 2 jobs which Iwas low on and did not get due to the high goals This is exactly what will happen when thegoals get raised The first job was the 9180 Anacortes Ferry Paving Northeast Electric $244924 and UDBE $318000 Second job was the 9172 SR 9 East Junction Job Northeast Electric $68503 and UDBE $76300

Does this seem like a good way to spend the tax payer money I do not see how we are tosurvive if the goals get to 21

Thanks

Troy HalbergOffice360-225-7004Cell360-931-3990Fax360-225-7001

On Thu Nov 30 2017 at 1131 AM Bayne Jackie ltBayneJwsdotwagovgt wrote

Good Morning Troy

Thank you for taking the time to provide us with your experiences with the DBE Program TheWashington State Department of Transportation takes the public involvement process veryseriously and your comments will be taken into consideration prior to a final decision regardingthe overall DBE program goal

If I can be of further assistance please let me know

Best Regards

Jackie Bayne

Policy and Reporting Manager

WSDOT Office of Equal Opportunity

Work (360) 705-7084

Cell (360) 338-5783

BayneJwsdotwagov

From Troy Halberg [mailtotroyhnellcnet] Sent Wednesday November 29 2017 144 PMTo WSDOT Disparity Study ltDisparityStudyWSDOTWAGOVgtSubject DBE Goal Comments

If these goals are to be set that high this would make us as a non DBE small contractor at amajor disadvantage With these high of goals this is like handing all of the DBE electricalcontractors every job These general contractors will have no option but to use thembecause of the goals This should not go into effect We have been low on several jobs in thepast and have not gotten them do to the goals being 18 When this goes on it puts all therest of us contractors at a disadvantage Please consider the smaller non DBE contractorsthat are looking to survive as well

Thanks

Troy Halberg

Office360-225-7004

Cell360-931-3990

Fax360-225-7001

From Daniel Seydel IITo Bayne JackieCc Key Earl daneiwashingtonorg Nadeem Ismail Mussie Tewelde (mteweldehydro2geotechcom)

graceflyrightaolcom Mary Wenner Watkinson LarrySubject Re Seydel Dan - WSDOT Disparity Study Presentation Public TestimonyDate Friday December 8 2017 30323 PM

Jackie

It was my hope that the comments would be put into record I was also hoping that you wouldnot have to be the one having to formulate responses for each clarification If that is the caseI know you are swamped and will then I just ask my comments be only part of the recordHowever if there is dedicated staff that is going to be compiling and responding to theclarification then the below questions would be the priorities of most interest

These were questions unrelated to the disparity study and hopefully should be doable

1) Do you have any reports on your outcomes from the past 5 years on DBE support servicesand specific key performance measures from previous years funding (ie how many firmsutilized what was the objectives were objectives met did outcomes meet total satisfaction ifnot why next steps what was the firms capacity before and after services were performed (iesales employees bonding if applicable insurance equipment line of credit if applicablenumbertype of customers how are they doing now etc))

2) What other changes or improvements other than allowing DBES to select their own serviceproviders and a staff change will be a part of this new program

3) Was consideration to provide the new mentor protege consultant rather than separating theactivities into support services andor technical assistance

Disparity study clarifications

1) Will WSDOT consider sponsoring legislation to support the policy changes and goalincreases to insure manditory goals wont be necessary

a) If not what measures will you grant primes to operate outside the box (ie entertain bestvalue over low bid modify responsiveness by subs to require adherence to meeting voluntarygoals developing standards around federally funded gccm and other low bid procurementsthat give powers to primes to meet objectives including but not limited to mentor protegerelationships joint ventures bond waiving techniques cash flow assistance material andequipment acquisition manufacturer development specifications that have only DBES orinclude equal number of DBES as non DBES as approved installers etc)

2) Will the disparity study consultant be available for implementation or information gatheringfrom other regions

5) Will WSDOT be hiring more diverse staff amp professionaltechnical service providers inother departments outside OEO to insure policies commitments and evaluations areperformed in manner that improves diversity that reflects the communities WSDOT serves bythoughtful and legal efforts increase participation thus creating successful outcomes includingpartnerships and collaborations

Thank you and Merry Christmas

Hi Dan

Thank you for providing such thoughtful public comments questions and testimony

Regarding your public testimony below - I do not believe I am not able to answer questions ifthey are public comments Please let me know what part of this email you would likeclarification on and what part you would like considered public testimony

I appreciate your thoughtful consideration of WSDOTrsquos implementation of our civil rightsprograms

Best Regards

Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

DIDaniel Seydel IIFyi Daniel J Seydel II Platinum Group LLC 2064060844 f) 2062999934wwwplatinumbusinessgroupcom Small Business is the Answer FREE TRAINING FORENTREPRENEURS amp JOB SEEKERS - Polish your skills or make your firm standout thanksto the EntrepreneurialThu 233pDI

Daniel Seydel IIThu 1272017 1123 AMInbox Sent ItemsShow all 7 recipientsTobaynejwsdotwagov ltBayneJwsdotwagovgtJackie

Per your request below are my questions and comments some of which were verbally sharedyesterday

Congratulations on receiving the blessing of additional technical assistance dollars andcompleting the DBE Disparity Study per your report

1) Do you have any reports on your outcomes from the past 5 years on DBE support servicesand specific key performance measures from previous years funding (ie how many firmsutilized what was the objectives were objectives met did outcomes meet total satisfaction ifnot why next steps what was the firms capacity before and after services were performed (ie

sales employees bonding if applicable insurance equipment line of credit if applicablenumbertype of customers how are they doing now etc))

2) What other changes or improvements other than allowing DBES to select their own serviceproviders and a staff change will be a part of this new program

3) Was consideration to provide the new mentor protege consultant rather than separating theactivities into support services andor technical assistance

Disparity study clarifications andor comments

1) Will WSDOT consider sponsoring legislation to support the policy changes and goalincreases to insure manditory goals wont be necessary

a) If not what measures will you grant primes to operate outside the box (ie entertain bestvalue over low bid modify responsiveness by subs to require adherence to meeting voluntarygoals developing standards around federally funded gccm and other low bid procurementsthat give powers to primes to meet objectives including but not limited to mentor protegerelationships joint ventures bond waiving techniques cash flow assistance material andequipment acquisition manufacturer development specifications that have only DBES orinclude equal number of DBES as non DBES as approved installers etc)

2) Will the disparity study consultant be available for implementation or information gatheringfrom other regions

3) What lessons did WSDOT learn that it did not know from the other study(s)

4) What would WSDOT do different (ie scope time line process approach etc)

5) Will WSDOT be hiring more diverse staff amp professionaltechnical service providers inother departments outside OEO to insure policies commitments and evaluations areperformed in manner that improves diversity that reflects the communities WSDOT serves bythoughtful and legal efforts increase participation thus creating successful outcomes includingpartnerships and collaborations

Daniel J Seydel IIPlatinum Group LLC 2064060844f) 2062999934wwwplatinumbusinessgroupcom

Small Business is the Answer

FREE TRAINING FOR ENTREPRENEURS amp JOB SEEKERS - Polish your skills or makeyour firm standout thanks to the Entrepreneurial Institute of Washington

httpswwwyoutubecomchannelUCKL5YeVxL29HnNxqnb6hmXA

LIKE US on FaceBook if an Active Professional Development workshop provided by EIW

Construction University helps your firm or has benefited you

httpswwwfacebookcomEIWashingtonref=hl

From Bayne Jackie ltBayneJwsdotwagovgtSent Friday December 8 2017 10139 PMTo Daniel Seydel IICc Key Earl daneiwashingtonorg Nadeem Ismail Mussie Tewelde(mteweldehydro2geotechcom) graceflyrightaolcom Mary Wenner Watkinson LarrySubject RE Seydel Dan - WSDOT Disparity Study Presentation Public Testimony Hi Dan Thank you for providing such thoughtful public comments questions and testimony Regarding your public testimony below - I do not believe I am not able to answer questions if theyare public comments Please let me know what part of this email you would like clarification on andwhat part you would like considered public testimony I appreciate your thoughtful consideration of WSDOTrsquos implementation of our civil rights programs Best Regards Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov From Daniel Seydel II [mailtodanplatinumbusinessgroupcom] Sent Thursday December 7 2017 1123 AMTo Bayne Jackie ltBayneJwsdotwagovgtCc Key Earl ltKeyEwsdotwagovgt daneiwashingtonorg Nadeem Ismailltnipaintingearthlinknetgt Mussie Tewelde (mteweldehydro2geotechcom)ltmteweldehydro2geotechcomgt graceflyrightaolcom Mary Wennerltmwenn0108yahoocomgtSubject Seydel Dan - WSDOT Disparity Study Presentation Public Testimony Jackie

Per your request below are my questions and comments some of which were verbally sharedyesterday

Congratulations on receiving the blessing of additional technical assistance dollars andcompleting the DBE Disparity Study per your report

1) Do you have any reports on your outcomes from the past 5 years on DBE support servicesand specific key performance measures from previous years funding (ie how many firmsutilized what was the objectives were objectives met did outcomes meet total satisfaction ifnot why next steps what was the firms capacity before and after services were performed (iesales employees bonding if applicable insurance equipment line of credit if applicablenumbertype of customers how are they doing now etc))

2) What other changes or improvements other than allowing DBES to select their own serviceproviders and a staff change will be a part of this new program

3) Was consideration to provide the new mentor protege consultant rather than separating theactivities into support services andor technical assistance

Disparity study clarifications andor comments

1) Will WSDOT consider sponsoring legislation to support the policy changes and goalincreases to insure manditory goals wont be necessary

a) If not what measures will you grant primes to operate outside the box (ie entertain bestvalue over low bid modify responsiveness by subs to require adherence to meeting voluntarygoals developing standards around federally funded gccm and other low bid procurementsthat give powers to primes to meet objectives including but not limited to mentor protegerelationships joint ventures bond waiving techniques cash flow assistance material andequipment acquisition manufacturer development specifications that have only DBES orinclude equal number of DBES as non DBES as approved installers etc)

2) Will the disparity study consultant be available for implementation or information gatheringfrom other regions

3) What lessons did WSDOT learn that it did not know from the other study(s)

4) What would WSDOT do different (ie scope time line process approach etc)

5) Will WSDOT be hiring more diverse staff amp professionaltechnical service providers inother departments outside OEO to insure policies commitments and evaluations areperformed in manner that improves diversity that reflects the communities WSDOT serves bythoughtful and legal efforts increase participation thus creating successful outcomes includingpartnerships and collaborations

Thank you for your hard work

Daniel J Seydel IIPlatinum Group LLC2064060844f) 2062999934wwwplatinumbusinessgroupcom

Small Business is the Answer

FREE TRAINING FOR ENTREPRENEURS amp JOB SEEKERS - Polish your skills or makeyour firm standout thanks to the Entrepreneurial Institute of Washington

httpswwwyoutubecomchannelUCKL5YeVxL29HnNxqnb6hmXA

LIKE US on FaceBook if an Active Professional Development workshop provided by EIWConstruction University helps your firm or has benefited you

httpswwwfacebookcomEIWashingtonref=hl

From Erin EhlingerTo Bayne JackieSubject Support for WSDOTs proposed DBE goalDate Wednesday December 13 2017 115417 AM

I am writing to support the WSDOT recommended DBE Goal for FHWA contracts of 190 I also want to express my appreciation for the thoroughness of the WSDOT Disparity study and howthe study disclosed the disparity in WSDOT contracts that do not have a DBE or WBE goal ndash furtherreinforcing that all women-owned firms and minority owned firms face equity issues I remain concerned with the methodology required by the Code of Federal Regulations and case lawbecause of the dependence on the availability of firms in the calculation An unintendedconsequence of removing either gender or race from the goal is that many of these firms would goout of business the availability decreases and the formula then results in a smaller DBE goal Pleaselet me know how I can help influence a change to the CFR Thank you Erin Ehlinger

Erin Ehlinger PEPresident

24036 SE 47th StSammamish WA 98029erinehlingersmartcitytrafficcom425-221-0320

From Jackie EtterTo WSDOT Disparity StudySubject Why we need mandatory goalsDate Friday December 1 2017 61859 PM

As a DBE participating in bidding process I have found that regardless of the language which claims to insurethat disadvantaged business enterprises shall not be discriminated against the only way to ensure that this does nothappen is by mandating affirmative action goals Having been overlooked time and time again because of my gender when I have submitted bids that are verycompetitive with other bidders is very frustrating I have had many instances of companies using my price to getmy non DBE competitors to lower theirs The voluntary or laudatory DBE goals do nothing to ensure a level playing fieldThe only way to ensure non-discrimination is through mandatory goals

Jackie EtterWest Star Construction of Spokane

Sent from my iPhone

From Claudia HirscheyTo Key Earl Bayne JackieSubject WSDOT DBE Goal - Comment in supportDate Tuesday December 12 2017 61937 PM

Dear Earl and Jackie The WSDOT recommended DBE Goal for FHWA contracts of 190 is a small and important increasethat can further achieve equity in WSDOTFHWA contracting I am in support of the 19 DBE Goal I also want to express my appreciation for the thoroughness of the WSDOT Disparity study and howthe study disclosed the disparity in WSDOT contracts that do not have a DBE or WBE goal ndash furtherreinforcing that all women-owned firms and minority owned firms face equity issues I remain concerned with the methodology required by the Code of Federal Regulations and case lawbecause of the dependence on the availability of firms in the calculation An unintendedconsequence of removing either gender or race from the goal is that many of these firms would goout of business the availability decreases and the formula then results in a smaller DBE goal Sincerely Claudia S Hirschey PETransportation Consulting Servicesclaudiahirscheycomcastnethttphirscheytcscom2068564988 Mobile

From Nate ThomasTo WSDOT Disparity StudySubject WSDOT Proposes DBE goal of 19Date Thursday December 7 2017 42720 PM

The WSDOT should look into similar ways the Federal Gov has handled the equal opportunity forthose that fall under the DBE status and set aside specific projects for the DBErsquos and moreimportantly UDBErsquos so these companies have better chance of landing contracts Maybe a lot 10 ofthe DBE goal to set aside for only DBEs and other 9 goal met as it is done currently with COA onlarger contracts Nate ThomasSenior EstimatorD 5095688085 | C 5099941156331 North Fancher Road | Spokane WA | 99212

The information contained in this email including any attachments is confidential and may beprivileged It is intended only for the person or entity to which it is addressed and no waiver isintended by sending this email If the reader is not the intended recipient you are herebynotified that any review retransmission dissemination or other use of or taking any action inreliance upon this information is strictly prohibited If you have received this email in errorkindly notify the sender by reply email and delete the original message from any computerThank You

From Brian FujiiTo WSDOT Disparity StudySubject WSDOT propsed DBE GoalsDate Thursday December 7 2017 110638 AM

Good morning Jackie

I wanted to comment on WSDOTs proposed DBE goal to 19 I believe WSDOTs plan toincrease the overall DBE goal to 19 will provide greater opportunities for DBE contractorsin different disciplines to participate in federally funded contracts

Without the new DBE requirement and with Proposition 200 there are limited opportunitiesfor DBE contractors in disciplines different than the typical trucking flagging and rebar Inaddition there are no incentives for general contractors to go out beyond the usual truckingflagging and rebar DBE subcontractors

Increasing the DBE goals will provide opportunities for different DBE contractors in differentdisciplines to participate in WSDOT federally funded projects

Thank you for your time

RespectfullyBrian FujiiPresident Subsurface ConstructionP 2063836478F 2069604639MDBE 4M0024998

From Forman StephanieTo Bayne JackieCc Millar Roger christinenhanmailhousegov Claudia Hirschey Sarah Corbin Jiang Yingle

efaulknerenviroissuescom Diana Giraldo Kelly CheesemanSubject WTS - Disparity Study Comment LetterDate Friday December 15 2017 71020 PMAttachments 2017_Dec 15_WTSCommentLetter_WSDOT DBE Goalpdf

Dear Ms Bayne Please find our attached letter which summarizes the WTS Puget Sound Chapterrsquos support foradvancement of women in transportation and our comment letter regarding the recent DisparityStudy Please feel free to contact me if you have any questions or would like to discuss Sincerely Stephanie S Forman PEWTS Puget Sound President Transportation Project Manager

929 108th Avenue NE Suite 1300Bellevue WA 98004D 4254681548 M 2062291745stephanieformanhdrinccom

December 15 2017

Jackie Bayne Policy and Reporting Manager

Office of Equal Opportunity

Washington State Department of Transportation

PO Box 47314

Olympia WA 98504-7314

Dear Ms Bayne

On behalf of the Puget Sound Chapter of Womenrsquos Transportation Seminar (WTS) we would

like to thank the Washington State Department of Transportation for presenting to our

organization the DBE Disparity Study results We very much appreciated the presentation by Earl

Key Director of WSDOTrsquos Office of Equal Opportunity Teresa Berntsen (Director Office of Minority

and Womens Business Enterprises) as well as Leslie Jones (Director Sound Transit Office of Small

Business Development and Labor Compliance)

Following a review of the WSDOT Disparity Study and as a result of consultation with WTS

International we would like to provide WSDOT with our comments for your consideration

As you know WTS is an organization focused exclusively on attracting retaining and advancing

women in transportation By the year 2018 there will be thousands of vacancies in the

transportation industry for qualified professionals and while women account for more than half of

the worldrsquos workforce they are a very small minority in transportation disciplines

We are pleased that the outcome of the 2017 Disparity Study that recognizes the on-going barriers

for DBEs including women-owned businesses in transportation The WSDOT recommended DBE

Goal of 190 is a small and important increase that can further achieve equity in WSDOTFHWA

contracting We are also pleased that the 2017 Disparity Study has documented the disparity in

WSDOT contracts that do not have a DBE or WBE goal ndash further reinforcing that all women-owned

firms and minority owned firms face equity issues We are encouraged that the WSDOT has asked

FHWA to rescind the 2016 waiver

While WTSrsquo mission is specific to the advancement of women we are a race-neutral organization To

this end we are also deeply concerned about the underutilization of minority owned firms There is

no equity or ldquofair playing fieldrdquo without equity for all gender and races We remained concerned with

the methodology required by the Code of Federal Regulations and case law because of the

dependence on the availability of firms in the calculation An unintended consequence of removing

either gender or race from the goal is that many of these firms would go out of business the

availability decreases and the formula then results in a smaller DBE goal This consequence is

contrary to our mission

We look forward to our continued participation in WSDOTrsquos DBE advisory group we are anticipating

notice that the 2016 waiver has been rescinded and how we can work together to continue

advancing minority and women-owned firms in the transportation field

Sincerely

WTS Puget Sound Chapter

Stephanie Forman

President

C Roger Millar Secretary WSDOT

C Representative Adam Smith 9th Congressional District Washington co Christine Nhan

WTS Puget Sound Chapter

PO Box 3461

Bellevue Washington 98009

From Dave Gent - WAPATo Bayne JackieCc Tom GaetzSubject WAPA Public Comments - RE WSDOT FHWA Disadvantaged Business Enterprise Proposed GoalDate Friday December 15 2017 14119 PMAttachments 12152017 DBE Proposed Goal - WAPA Public Comments Letterpdf

Good afternoon Jackie Please find attached WAPArsquos ldquofor the public recordrdquo comments with respect to WSDOTrsquos proposedDBE Goals FHWA funded work I assume that the Master DBE Directory was not sent to you this week so as a result we were notable to review the directory before the close of the public comment period That fact is noted withinour comment letter Thank you for your efforts Have a good weekend

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Friday December 8 2017 1219 PMTo Dave Gent - WAPA ltdavegentasphaltwacomgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hello Dave WSDOT did not take possession of this directory as part of our review process We will provide youwith the records without submitting a formal request However we need to get them from theconsultant first I will hopefully have them to provide next week I will keep you updated on therequest Have a nice weekend Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal Opportunity

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

December 15 2017

Jackie Bayne Policy Manager WSDOT Office of Equal Opportunity Delivered via e-mail to BayneJwsdotwagov RE Public Comment (as requested) to Proposed Overall DBE Goal for the FHWA (2018 ndash 2020) Ms Bayne Thank you for your presentation via webinar on December 5 2017 outlining WSDOTrsquos evaluation process used to determine the proposed overall DBE goal for the FHWA Thank you also for the Colette Holt amp Associates (CHA) DBE Advisory Group presentation made on September 14 2017 Both presentations helped to distill the findings of the 2017 Disparity Study produced by CHA In response to Earl Keyrsquos initial informal request to comment on the proposed overall DBE goal made during the DBE Advisory Committee teleconference held on October 12th we provided a list of reasons that we believe justify a lower DBE goal than is now being proposed Our initial response to Mr Keyrsquos request did not serve to influence WSDOT and the current proposed goal remains at 190 The arguments provided on October 12th against the significant increase in the proposed DBE goal (versus the previous goal and recent historic DBE participation) are repeated and supplemented below and will serve as the Asphalt Pavement Associationrsquos (WAPArsquos) official public comments

In concert with WSDOT and the OWMBE WAPA and the construction firms that WAPA represents have demonstrated a commitment to the principals of equal opportunity for all ldquoready willing and ablerdquo firms for the entire history that our DBE program has been in place WAPA has continuously demonstrated its commitment to the goals of the DBE program and for increasing the representation of disadvantaged groups within our industry as both workers and owners of firms Please recognize that WAPArsquos oversight and critique of the DBE program has always attempted to balance the principals of fair and open competition with the practical aspects of the low bid compressed schedule high performance standards demanded within the WSDOT marketplace Our comments below are meant to enhance WSDOTrsquos and OWMBErsquos understanding of the market and to hopefully have WSDOT fully consider all of the dynamics that are at play when proposing its Triennial DBE goal for FHWA projects Current DBE Capacity vs Historically Robust Market In advocating for a realistic and defensible DBE goal it has always been WAPArsquos position that it is paramount that the realities of the marketplace and true certified DBE subcontracting capacity should be a primary standard While a ldquostretchrdquo goal may appear to be progressive on its face it comes with consequences for all of the parties involved in the WSDOT federal aid contracting arena To balance the dynamics of the WSDOT contracting system the DBE goal should be tempered with the realities of the market and with a true measure of the underlying effectiveness of the DBE support services available to contractors

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 2 of 6 The first point of fact that has not been given any apparent consideration by WSDOT in its evaluation of the current capacity of certified DBErsquos is that there is an historically robust workload scheduled to be performed in the 2017 through 2022 time-frame particularly in the Puget Sound ldquoEverett to Olympiardquo corridor By WSDOTrsquos own estimates (see Attachment A) public works construction project starts in the 2018 to 2022 time-frame in this region will exceed $333 billion (B) counting the work projected from just five public entities WSDOT will be taking a decidedly ldquoback seatrdquo role during this period to Sound Transit which will have construction project starts of $226B vs WSDOTrsquos projected volume of $67B WSDOTrsquos summary publication titled Washington State Department of Transportations Proposed Federal Highway Administration Triennium Disadvantaged Business Enterprise Goal Federal Fiscal Years 2018-2020 states correctly that ldquoIncluded among the types of evidence that must be considered are the current capacity of DBEs to perform work on WSDOTrsquos federally-assisted contracts as measured by the volume of work DBEs have performed in recent yearshelliprdquo (Step Two Adjustment discussion) With the Sound Transit program being over 300 larger than the total WSDOT program in this region a sober assessment of true certified DBE capacity in the next three years needs to be considered by WSDOT If the huge construction boom over the next five years does not prompt a Step Two Adjustment then it becomes obvious that the realities of the market are being ignored by WSDOT for DBE goal setting Put another way if the 2018 through 2022 level of contracting activity does not warrant a goal adjustment what will DBE Access Barriers Not Yet Addressed The CHA 2017 Disparity Study points out multiple recommendations in Section VII that impact DBE participation and access to the market Assessments relating to those impacts and the state of maturity in addressing the CHA recommendations should be considered when assessing the DBE goal Many of the CHA recommendation have not been adequately addressed at this point in time Some of the prime examples are listed below Increase Certification and Expertise ndash The Disparity Study as explained to us includes all minority- (MBE)

and women-owned (WBE) firms that could be readily identified that perform work within Washington State and that perform work within the NAICS code framework CHA developed to cover WSDOT project work During the various presentations relating to the Disparity Study WSDOT representatives said that outreach to currently non-certified MBE amp WBE firms has increased and that WSDOT aspires to bolster its list of certified firms in the future but this effort is just beginning and the success of the effort needs to be means tested against the broader population of MBE amp WBE firms included in the CHA base line evaluation As the Disparity Study uses a much broader population of MBE WBE contractors to arrive at its conclusions (both non-certified firms and firms too large for certification) it follows that the calculated DBE proposed goal is overstated to include capacity that does not currently exist within WSDOTrsquos certified DBE framework Unless OMWBE is experiencing sudden and unprecedented success in recruiting new MBEWBE firms the DBE goal should be adjusted downward to recognize that the ldquoready willing and ablerdquo contractors that WSDOT has certified is only a subset of the total MBEWBE contracting population used in the Disparity Study evaluation

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 3 of 6

Until the promised WSDOT outreach registration efforts result in a substantial increase in available certified DBE firms it is premature to count the entire population of minority- and women-owned contractors as available to participate in WSDOT contracting It is unreasonable for WSDOT to project availability capacity using the entire MBEWBE population when only its currently truncated list of certified firms is acceptable to count toward the DBE goal

A corollary to the Increase Certification and Expertise discussion above is that the calculation of the Base Figure evidently includes the broadest practical population of MBE and WBE firms identifiable (without a review of the CHA Master DBE Directory which has not been supplied prior to the close of the public comment period the scope of the directory cannot be ascertained) If this directory includes a large population of MBEWBE firms that are not certified or are too large to be certified then the Base Figure calculation should be adjusted to reflect that certified DBE firms are a fraction of the total MBEWBE firms used to arrive at the 19 suggested DBE goal With respect to the CHA Master Directory it is our understanding the WSDOT was not given the directory as part of its evaluation of the Disparity Study and it follows that it did not evaluate the proposed DBE goal in the context of the CHA Master DBE Directory In our opinion an informed decision on adjusting the CHA baseline goal calculation can only be done after an extensive evaluation of the CHA Master DBE Directory If this has not been done WSDOT has not exercised due diligence in evaluating the context and underpinnings of the CHA Disparity Study and a certified DBE Triennium goal proposal to the FHWA is premature Increase Contract ldquoUnbundlingrdquo ndash If this proposed strategy (suggested by the CHA Study) is undertaken

certified DBE Subcontractors currently available will be engaged as Prime Contractors and the value of their prime contracts will bolster the overall percentage of certified DBE contracting but a systematic effort and strategy to ldquounbundlerdquo has not been articulated by WSDOT The key question of how this effort can be accomplished without increased cost to the taxpayers and increased inconvenience for the traveling public As noted in the CHA study (page 129 final paragraph) ldquoUnbundling must be conducted however within the constraints of the need to ensure efficiency and limit cost to the taxpayersrdquo As of this writing no overarching strategy for further unbundling with proper accountability has been articulated by WSDOT to the DBE Advisory Group

Review Insurance and Experience Requirements ndash Impediments to certified DBE participation due to

necessary insurance and experience standards cannot be solved by the prime contracting community Unless and until WSDOT puts together programs to address the burden of the substantial risks shouldered by Prime Contractors on WSDOT contracts barriers for streamlined utilization of certified DBE firms will continue to exist These market driven barriers will continue to dampen the availability of certified DBE Subcontractors that are able to perform within WSDOTrsquos strict criteria without unduly transferring risk to the Prime Contractor

Better Partnering to Overcome DBE Failures to Perform ndash Prime Contractors are held fully responsible to maintain the project schedule and are subject to project liquidated damages even when they may be struggling to deal with Subcontractor performance issues It is well-established that replacing a certified ldquocondition of awardrdquo (COA) DBE Subcontractor is very onerous and likely very costly to the Prime Contractor Unfortunately the imposition of strict and often counter-productive commercially useful function (CUF) rules often compound this issue as Prime Contractors cannot help COA DBE Subcontractors work through capacity expertise or time-related issues that impact timely performance

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 4 of 6

WSDOT needs to be a much better partner in the process of dealing with under-performing or non-performing certified DBE Subcontractors The current standard operational procedure places all of the exposure for non-performance onto the Prime WSDOT does not have an equitable system to account for non-performing or under-performing certified DBE Subcontractors hired as a condition of award (COA)

Performance Information and Training ndash Commercially useful function rules (CUF) and the lack of clear benchmark definitions for good faith effort (GFE) standards remain barriers for improving accountability within the DBE system and in turn lead to distorted DBE participation rates These items remain amorphous due to lack of training or lack of historic information Chronic uncertainty exists regarding both of these items Until WSDOT changes and improves its approach to provide transparency and certainty for both the prime bidding amp subcontracting parties true certified DBE capacity will continue to be masked and the resultant higher subcontracting costs associated with a distorted marketplace will continue to be hidden

WAPA respectfully suggests that simply adding an ldquoEstimated DBE Subcontract Premiumrdquo line to the current DBE bid forms would help to establish benchmarks that could begin to be used to ldquomeans testrdquo good faith efforts If this information had been gathered over the last 20 years of the DBE program meaningful GFE standards could have been developed and could be in place today

An in-depth review of CUF standards would also provide clarity For instance it is unclear why force account items performed by certified DBEs are currently counted at only 50 of the value of the work How was this benchmark established Has it been reviewed since imposed Did it ldquosolverdquo whatever inequity WSDOT was trying to address Better clarity may lead to more expanded opportunities for certified DBE Subcontractors

Enhanced Supportive Services and Business Development Programs ndash Unless and until stronger programs of these types are shown to be effective in boosting certified DBE business development increased DBE participation due to stronger business acumen should not be relied upon when setting the new DBE goal

Does OMWBE have a reasonable expectation that future plans for enhanced and expanded programs will be more successful than those employed in the past Assuming that certified DBE Subcontractors will be better prepared to deal with the WSDOT contracting environment than in the past should not be relied upon to boost DBE participation goals Especially troubling were the multiple references within the CHA report highlighting that DBEs believe that the staff at OMWBE lack a deep knowledge about the highway construction industry (eg Study page 129 2nd paragraph) Does OMWBE have a path forward that will address this issue and thus improve supportive services impacts

Develop a Bonding and Financing Program for SBEs ndash This is completely outside of the prime contracting

communityrsquos scope of influence WSDOT must find a way to institute changes that both protect the taxpayer and help increase certified DBE bonding capacity and access to financing ndash very large hurtles To assume that these hurtles can effectively be overcome within the 2018 ndash 2020 time frame when they have been chromic issues for the past 20 plus years of DBE program development is not rational

A helpful innovation would be for WSDOT to underwrite performance and payment bonds for certified DBE firms or to create promote a system that helps certified DBE firms obtain private bonding Bridging the gap to address capital access and performance risks (bonding) must be championed by WSDOT

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 5 of 6

Base Figure Adjustment to Address Available Subcontract Volume and DBE Prime Contracts It is a fact that mid- to large-sized MBEWBE firms that compete both as Prime Contractors and as Subcontractors are not eligible to be OMWBE certified DBEs Further the current amount of contract unbundling for greater DBE access to WSDOT prime contracting (see below) accounts for a very low dollar volume of prime contracts performed by certified DBEs Finally by specification (WSDOT standard specification 1-081) Prime Contractors are obligated to perform 30 of the total volume of the work (less specialty work) or stated another way a maximum of 70 of the dollar volume on WSDOT projects is typically available to award to subcontractors These market dynamics are NOT addressed in the Disparity Study A responsible DBE goal made absent of these facts should not be implemented A reasonable adjustment to the proposed 19 DBE goal is presented below

bull The percent of WSDOT prime contracts awarded to certified DBE firms is likely less than 5 by total WSDOT

contract volume Assuming this approximation is valid (likely very conservative) then the amount of WSDOT contract work available to certified DBE firms via subcontracting should be adjusted to account for the factors outlined above The Base Figure (19) should be adjusted to recognize that a 70 maximum subcontractor participation is available (in the numerator) and to account for the assumed 5 certified DBE prime contracts in the denominator Reasonable Base Figure Adjustment 19 (proposed) x 70 subcontracts available divide 95 of Non-Certified DBEs as Prime Contract Volume = 190 x 0737 = 140 adjusted goal This is an adjustment based on the practical dynamics of the WSDOT contracting system and it represents a more realistic look at the true subcontract volume that is available for Prime Contractors to award to certified DBE firms

Conclusions

Until the items listed above are addressed and in place it is not reasonable to believe that DBE goals can be increased by nearly 163 (from 117 to 190) When the projected robust public works contracting market is appropriately considered the true availability of certified DBE Subcontractors for WSDOT contracts will be truncated due to demand across all public works sectors With multiple strong public works programs competing for a limited population of certified DBEs the ability to meet increased WSDOT DBE goals will be severely challenged Without very clear concise and transparent good faith effort rules the ability to address DBE goals that greatly overestimate true near term certified DBE capacity will result in non-attainment bid day chaos failures to perform andor rapidly increased pricing

The clear conclusion is that at this point in time under the current circumstances without effectively instituted new programs rules procedures that could enhance the certified DBE programrsquos overall effectiveness we believe that the DBE goal should remain at or near 12 As OMWBE documents and demonstrates its future successes in improving access and eliminating capacity barriers only then should the DBE goal be re-evaluated and increased

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 6 of 6

In closing please remember that it is rare that the contracting community is asked our opinion with respect to the WSDOTrsquos DBE policies and so this letter is somewhat a vehicle to highlight collective concerns It is our belief that the majority of the Prime Contractors in Washington state support the objective of creating a level playing field for ready willing and able DBEs

If the level playing field is not yet possible in the absence of the DBE program then the key is to set realistic goals that recognize reflect and address the hard realities and market dynamics imposed by WSDOTrsquos bedrock environment of awarding contracts to the lowest cost responsible and responsive Contractor

Respectfully submitted Washington Asphalt Pavement Association

David Gent Tom Gaetz Executive Director Senior Advisor

Attachment A ndash WSDOT Central Puget Sound Public Works Contracting Projection 2018 - 2022

Con

stru

ctio

n Pr

ojec

t Sta

rts

2018

-202

2S

ound

Tra

nsit

$22

6 B

SD

OT

$08

B

Tran

sit

amp O

ther

s$1

7 B

WS

DO

T$6

7 B

Por

t of

Sea

ttle

$15

B

TOTA

L$3

33

B

Source N

ov 1

9 2

017

pres

enta

tion

to W

APA

Ann

ual M

eetin

g

Attachment A

Work (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Dave Gent - WAPA [mailtodavegentasphaltwacom] Sent Thursday December 7 2017 144 PMTo Bayne Jackie ltBayneJwsdotwagovgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hi again Jackie Irsquom fine thanks and hope you are the same Interesting The Master DBE Directory is the basis for and integral to the conclusions of the DisparityStudy Is it not then part of the information needed to fully review and comment on the DisparityStudy Was it not provided by CHA to WSDOT for review We are trying to fully understand thestudy and if this directory was part of the study why would it need to be obtained by a publicrecords disclosure It should be in the public domain and not restricted from ease of access If you are sure that a public records request is needed Irsquoll start that process but we will need tonote that point of fact when we submit our public comments If you are able to reconsider please let me know Respectfully

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Thursday December 7 2017 126 PMTo Dave Gent - WAPA ltdavegentasphaltwacomgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hello Dave I hope you are doing well

That information would likely be obtained through a public disclosure request Best Regards Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Dave Gent - WAPA [mailtodavegentasphaltwacom] Sent Thursday December 7 2017 113 PMTo Bayne Jackie ltBayneJwsdotwagovgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Jackie Can you please provide an electronic file or provide a weblink for the Master DBE Directory thatColette Holt amp Associates developed for the WSDOT Disparity Study 2017 (first referred to on Page 8of the Disparity Study) I did not see a link to this Master DBE Directory within the study Thanks

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Friday October 27 2017 1118 AMTo Kenyon Wendy ltKenyonWwsdotwagovgt Adams E W ltewadamssystemsclcomgtAdekoyaAndrew ltandrewadekoyabccomgt AlyssaBalllegwagov Anindita Mitraltamitracrea-affiliatescomgt APRISeattlehotmailcom Armstrong CharlotteltCharlieAatgwagovgt Ato Apiafi Architects PLLC ltatoaatoapiaficomgt benzfanwaorgBerntsen Teresa (OMWBE) ltTeresaBomwbewagovgt Billingsley Andrealtbillinawsdotwagovgt Bramlet Erica ltEricaBramletlegwagovgt Brooks Julius

ltBrooksJwsdotwagovgt Brown Jason ltjbrownldccorpcomgt bwallacenwlaborersorgCamden Allison ltCamdenAwsdotwagovgt carlllivingstongmailcom Cerda OscarltCerdaOwsdotwagovgt Christopher Chris ltChristCwsdotwagovgt ckerneycaawagovdanplatinumbusinessgroupcom davegentasphaltwacom David BalltDavidsignsnowmillcreekcomgt Davis Khalia ltDavisKhwsdotwagovgt Davis RaShelle (GOVltrashelledavisgovwagovgt Dayton Jo ltDaytonJwsdotwagovgt ddhondtagcwacomDebbieDriverlegwagov Dennis ltdennisahlkiewitcomgt dmcleodnwlaborersorgdrart6651gmailcom Duncan Enid lthigradeincgmailcomgt EltonltEltonwashingtonstatetruckingcomgt eprincecaawagov flemosldccorpcomfmartineznwmtnmsdcorg geoffshookatkncom glovelady ltgloveladyexcelglovescomgtGrabow Katie ltkgrabowsystemsclcomgt Guilfucci Jackie ltJackieGuilfucciskanskacomgt HealyLinda ltHealyLwsdotwagovgt Higginbotham Breanne ltHigginBwsdotwagovgt HirscheyClaudia ltclaudiahirscheycomcastnetgt Holt Colette ltcoletteholtmwbelawcomgt Huff JohnltHuffJwsdotwagovgt Iniguezchawagov JacksonMaynardlegwagov Jimmy Matta(jmattaalcantarassoccom) ltjmattaalcantarassoccomgt kellywickergovwagov Key EarlltKeyEwsdotwagovgt Kirk Jon ltjkirkwhhnfscomgt Kris Purrier ltkpurrierhwageocomgtleewabuildingtradesorg lesliejonessoundtransitorg Liz Evans ltlevansagcwacomgt LopezErin lterinlopezdeswagovgt Martha Cerna ltMarthaPSLCCORGgt Martin-Arnold EdwinaltMartinEwsdotwagovgt Mary Lerdahl ltmarydbeelectricinccomgt McCarty Hannahlthannahmccartylegwagovgt Melissa L Boyles ltmelissaboylesmwbelawcomgt Metcalf KeithltMetcalKwsdotwagovgt michaelicapaawagov Michelle ltMichelleTTCC26netgt MillarRoger ltMillarRwsdotwagovgt Nakamura Jason ltjasonnakamura1-alliancecomgtNavarroLportseattleorg olliepmt-solutionscom pastorbanksesbctacomacom PatrickHughes ltphugheshughesgroupbizgt Petersen Jodi (FHWA) ltJodiPetersendotgovgtrabbottliunaorg rcarmsteadgmailcom ricemportseattleorg Riley D ltdrileylydigcomgtSeling ltSelingjpfranciscomgt sherryharrisergosynchcom Stell MellodyltStellMwsdotwagovgt terigobintulaliptribes-nsngov timwilliamfactorycom tinaterra-tdicom tkellyldccorpcom tomgaetzmsncom vcollinsacec-waorgverlenejazzmsncom Wang Albert ltWangAatgwagovgt Waugh GregltGregWMaxKuneyComgt Yates Henry ltYatesHWSDOTWAGOVgtCc Tom Gaetz lttomgaetzmsncomgt Dave Gent - WAPA ltdavegentasphaltwacomgt VanCollins ltvcollinsacec-waorggt Daniel Seydel II ltdanplatinumbusinessgroupcomgt MaynardJackson ltJacksonMaynardlegwagovgt Carl Livingston ltcarlllivingstongmailcomgt DonMcLeod ltdmcleodnwlaborersorggt JIMMY MATTA ltjimmymattamsncomgt Prince Ed(CAAA) lteprincecaawagovgt David DHondt ltddhondtagcwacomgt Irene Reyesltgloveladyexcelsupplycompanycomgt McDaniel Craig ltMcDaniCwsdotwagovgtsherryharrisergosynchcomSubject WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Good morning On Monday October 30th WSDOT will be releasing the proposed overall Federal HighwayAdministration Disadvantaged Business Enterprise goal attached for public comment throughDecember 15 2017 This overall DBE goal is based upon the recently completely DBE ProgramDisparity Study WSDOT is proposing a 19 percent overall DBE participation goal on Federal Highway

Administration-funded projects for federal fiscal years 2018 through 2020 DBE goals fortransportation projects that receive federal funds represent a percentage of the value of work inwhich minority- and women-owned businesses should participate Once finalized and submitted toFHWA early next year the goal will be effective through Sept 30 2020

The purpose of the DBE program is to create a level playing field for firms owned and operated bydisadvantaged individuals wanting to participate in federally assisted highway transit and aviationprograms The attached overall DBE goal is for FHWA funded projects WSDOT will be updating theFTA and FAA overall DBE goals in the near future

If you have any questions please contact Earl Key Director of the Office of Equal Opportunity at3607057091 or KeyEwsdotwagov Thank you Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

  • Proof-Of-Publicationpdf
    • Mediapdf
      • AGC
      • Daily Journal
      • Daily Medium
      • DBEGood
      • OMWBE
      • Seattle Medium
      • Tabor 100
      • The Chronicle
      • Tukwila
        • King County
          • Public-Comments-20180111pdf
            • 19 DBE Requirement(1)
            • AGC Comments on Proposed 10 Goad
            • Backstrom Curb amp Sidewalk
            • comments on WSDOT proposed DBE goal
            • Cowlitz County Public Works
            • DBE Contracting goals
            • DBE Goal
            • DBE Program Disparity Study
            • Disparity Study Comments from City of Spokane
            • FW_ WSDOT News - WSDOT seeks comments on propos
            • Proposed DBE Goals
            • RE_ DBE Contracting Goal Comments
            • Re_ DBE Goal Comments
            • Re_ Seydel Dan - WSDOT Disparity Study Present
            • Support for WSDOTs proposed DBE goal
            • Why we need mandatory goals
            • WSDOT DBE Goal - Comment in support
            • WSDOT Proposes DBE goal of 19
            • WSDOT propsed DBE Goals
            • WTS - Disparity Study Comment Letter

Date Thursday December 7 2017 - 200pm to 400pm

Other ways to provide comment Those who are unable to attend one of the meetings can participate in a no-cost webinar from 230 ndash 430 pm Tuesday Dec 5 Registration for the webinar is required Those interested in participating should email DisparityStudywsdotwagov (mailtoDisparityStudywsdotwagov)

Written comments can also be submitted by mail or email Jackie Bayne Policy amp Reporting Manager Washington State Department of Transportation Office of Equal Opportunity PO Box 47314 Olympia WA 98504-7314 DisparityStudywsdotwagov(mailtoDisparityStudywsdotwagov)

Documents detailing the methodology used for determining the FHWA DBE goals are available for review at all WSDOT region headquarters offices and at the Transportation Building 310 Maple Park Ave SE Olympia They are also available online at wwwwsdotwagovequalopportunity (httpwwwwsdotwagovequalopportunity)

WSDOT will consider all written comments received through Friday Dec 15 2017

WSDOT keeps people businesses and the economy moving by operating and improving the states transportation systems To learn more about what were doing go to wwwwsdotwagovnews (httpwwwwsdotwagovnews) for pictures videos news and blogs Real time traffic information is available at wwwwsdotcomtraffic(httpwwwwsdotcomtraffic) or by dialing 511

Americans with Disabilities Act (ADA) Information Accommodation requests for people with disabilities can be made by contacting the WSDOT DiversityADA Affairs team at wsdotadawsdotwagov (mailtowsdotadawsdotwagov) or by calling toll-free 855-362-4ADA (4232) Persons who are deaf or hard of hearing may make a request by calling the Washington State Relay at 711

Title VI Statement to Public It is WSDOTrsquos policy to assure that no person shall on the grounds of race color national origin or sex as provided by Title VI of the Civil Rights Act of 1964 be excluded from participation in be denied the benefits of or be otherwise discriminated against under any of its federally funded programs and activities Any person who believes his or her Title VI protection has been violated may file a complaint with WSDOTrsquos Office of Equal Opportunity For additional information regarding Title VI complaintprocedures andor information regarding our non-discrimination obligations please contactOEOrsquos Title VI Coordinator at 360-705-7090

Page 2 of 3WSDOT seeks comments on proposed DBE contracting goal for highway projects - Seattl

1112018httpwwwomwbewagovabouteventswsdot-seeks-comments-proposed-dbe-contracting

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aacc~~949lt7BB7lt3726C4ltG3401324ltB7ltj=9

13 $amp()(

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89lt=gtABCDgtEF39=GHIJK1L0M1JLNO1L040K420PJLJLQ0K5R015JKNON70220K445N04S0K10Q4P6N5KNNN0K4022J1TLNUTJ70VP5K1LN145KUJLW5KQU51T1TX0NT5KQ1JK101YZ0L17K1J[CL0KNZJL1015JKXYgtC]0L5KS5141JMJ77K1JK1T0QKMVNZLJZJN4Y5N04S0K10Q4_6N5KNNK1LZL5NY_]QJ02[JL4L02a5QTU0VG475K5N1L015JKMJK1L0M1NbY_QJ02N[JL1L0KNZJL1015JKZLJcM1N1T01LM5S[4L02[6K4NLZLNK10ZLMK10QJ[1TS026J[UJLW5KUT5MT75KJL51Vd0K4UJ7KdJUK4P6N5KNNNNTJ624Z0L15M5Z01bXYgtC5NZLJZJN5KQ0efZLMK1JSL022Y_Z0L15M5Z015JKQJ02JK4L02a5QTU0VG475K5N1L015JKd[6K44ZLJcM1N[JL[4L02[5NM02V0LNghei1TLJ6QTghghbgtKMN6P751141JaXG0L2VKj1V0LO1TQJ02U522P[[M15S1TLJ6QTZ1bkhOghghbCTZ6LZJNJ[1TY_ZLJQL075N1JML0102S2Z20V5KQ[524[JL[5L7NJUK40K4JZL014PV45N04S0K10Q45K45S54602NU0K15KQ1JZ0L15M5Z015K[4L022V0NN5N14T5QTU0VO1L0KN510K40S5015JKZLJQL07NbXYgtCU522TJN10NL5NJ[Z6P25M715KQN1JZLJS54JZZJL16K515N[JL5K45S54602N1JMJ77K15KZLNJKlZJW0KOgHmZb7bJKC6NbOAJSbgi01XYgtC0N1LKQ5JKa04n60L1LNHgoemA30V[05L1bOZJW0Kplt0KMJ6SLOgHmZb7bX4NbOAJSbgf01XYgtClt0KMJ6SLa04n60L1LNHeeheiAqeN1I5LM2Olt0KMJ6SLp0112OgHmZb7bCT6LNbOYMbo01XYgtCAJL1TUN1Q5JKa04n60L1LNHeqohhY0V1JKGSbAOTJL25Kbrstuvwxyz|v|~u|usCTJNUTJ0L6K0P21J011K4JKJ[1T715KQNM0KZ0L15M5Z015K0KJdMJN1UP5K0L[LJ7glkhHmlkhZb7bC6N40VOYMbqbQ5N1L015JK[JL1TUP5K0L5NLn65L4bCTJN5K1LN145KZ0L15M5Z015KQNTJ6247052Y5NZ0L51V164VUN4J1bU0bQJSbXL511KMJ77K1NM0K02NJPN6P75114PV7052JL7052l0MW5_0VKO9J25MVZJL15KQ30K0QLOX0NT5KQ1JK101YZ0L17K1J[CL0KNZJL1015JKOgt[[5MJ[n602gtZZJL16K51VO9bgtb_JjmokemOgt2V7Z50OXGfiqhmdokemJL705241JY5NZ0L51V164VUN4J1bU0bQJSbYJM67K1N410525KQ1T71TJ4J2JQV6N4[JL41L75K5KQ1TaXGY_QJ02N0L0S0520P2[JLLS5U01022XYgtCLQ5JKT04n60L1LNJ[[5MN0K4011TCL0KNZJL1015JK_65245KQOkeh30Z290LWGSbOgt2V7Z50bCTV0L02NJ0S0520P2JK25K01UUUbUN4J1bU0bQJSn602JZZJL16K51VbXYgtCU522MJKN54L022UL511KMJ77K1NLM5S41TLJ6QTL540VOYMbeqOgheob iexclcentpound currenGPJ611TG61TJL G4SL15N7K1N

13

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AringEgraveAacuteEacuteAringcentAEligEcircEumlAcircCcedilIgraveEumlAacuteAacuteAgravecentfrac14frac12IacuteAacuteAgravefrac34AacuteIcircCcediliquestAEligiexclIumlAcircAacuteEumlETHEgraveNtildeOgraveOgraveEcircAacuteAEligIacuteiquestAEligfrac14AacuteAacuteyenAacuteiquestAEligCcedilAumliquestiquestAringiquestAacuteAEligAacuteiquestAEligAringAcircAacuteAtildeAringAtildeEcircAcircCcedilETHAtildeEcircAringiquestiquestAEligCcedilAtildeOacutefrac34Aacutefrac34CcedilAumliquestAEligCcedilAacute EacuteEacuteEacuteOcircOtildeEgraveOumlOcircOumlETHtimesIgravefrac12Agravefrac34AtildeiquestAEligfrac34iquestAtildeAgrave AringIgraveAacuteEgraveAringiquestEcircEumlAcircCcedilEgravefrac12CcediliquestAacute AacuteAgravefrac34AtildeiquestAEligEumliquestiquestAacutefrac34frac34frac34ETHCcedilAacuteAringAacuteiquestAEligCcedilAumlAringOslashCcediliquestAacuteOslashIgraveNtildeNtildeIgraveOgraveETHUgraveOgraveOgravefrac12AgraveAcirc AacuteAgraveCcedilAringiquestAacuteAumlAacuteEcirciquestAEligCcedil iquest iquestAringfrac34AEligAEligAacuteAtildeEcirciquestAEligAacuteCcediliquestAEligiquestiquestAcircfrac34AEligAacuteiquestAEligCcedilAacuteAacuteiquestAumliquestAacuteiquestAElig EcirciquestAacuteAgraveiquestCcedilAgravefrac34EcircEumlAacuteAEligiquestAacuteAEligiquestAacuteiquestAEligCcedilAringCcedil Ecirc AcircAEligAacuteAEligAacuteAacuteiquestAEligUacuteAumlAacuteAEligAacuteAumlAEligAacuteCcedil AacuteAgraveAcirc frac34UcirciquestAEligfrac34AgraveiquestAumlAgraveAringiquestAEligiquestAacuteEcircOcircAEligfrac34AringAEligOcircfrac34AEligAtildeAcirciquestAEligAgraveAcircAacuteiquestAumliquestAacutecentfrac14frac12iquestiquestAEligCcedilOtildeAumlAEligAacuteAacuteiquestAumliquestAacuteiquestAEligCcedil iquestAacuteiquestAEligAringiquestAEligiquestAacuteAacuteiquestAEligUumlYacute AcircAEligUacuteAumlAacuteAEligETHtimesOgraveUgraveAumlAEligAacuteCcedil iexcliquestCcedilAgravefrac34EcircAringiquestAEligiquestAacuteAacuteiquestAEligUumliexclcentYacute 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iquestAumlAEligAacuteAacuteAgravefrac12AEligAacuteAacuteiquestAEligAcirciquestiquestAEligCcedilEumlIgraveETHOgraveyenUcircfrac14iquestAEligEcircAringiquestfrac12AgraveEcirciquestAtildeAEligiquestAEligAacutedegdegdegraquodeg1ordf-raquodegraquolaquoregszligXagraveKsup3sup3Z-Kcopy0-Lszligraquocentfrac14frac12frac34iquestAumlAEligiquestfrac34iquestAacuteAacuteAEligAumlAringAringAEligAacuteEumlfrac34AacuteAgraveAringAacuteiquestAacuteAgraveAacuteiquestiquestAacuteAgraveIumlAcircAEligAacuteiquestAacuteAacuteiquestAEligAumlAacuteEumlAtilde AcircAtildeAringiquestAacuteAacuteiquestAEligCcediliquestAacute iquestAEligCcedilAacuteAacuteAgraveAEligiexclcentcentiquestAacuteAacuteAEligAumlAringAringAEligAacutefrac34iquestAtildeAumlAumlAacuteAcircAEligAacuteiquestAcircCcedilIgraveETHEumlOtildeOgraveETHETHEumlAEligAgraveAcircAtildeAEligAacuteAacuteaacuteacircAumlUcirciquestEcircAEligEumlyencentatildeAEligAacuteAumlAacuteatildeAringiquestAEligAuml iquestAumlcentAgraveiquestAEligCcedilAacuteAEligfrac14AacuteAacuteAacuteAringAEligAacute frac12AEligAacuteAacuteiquestAElig iquestAuml IumlAcircAacuteAcircAEligiquestAacuteEcircaumlRSaringPREcircAringiquestOWaeligccedilegraveeacuteNRecircSaringPRAringiquestaacute)LcopyXJeumldeg1ordf-raquodegraquolaquoreg

13

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httpwwwchronlinecomnewswsdot-seeks-public-comment-on-disadvantaged-business-enterprisearticle_f5c753ea-be61-11e7-966c-972f6769d8a6html

WSDOT Seeks Public Comment on Disadvantaged Business Enterprise By The Chronicle Oct 31 2017

The Washington State Department of Transportation will be accepting public comments about the departmentrsquos proposed Disadvantaged Business Enterprise goal for federal contracts

The goal is for transportation projects receiving Federal Highway Administration funds to have 19 percent of the value of work done by minority or women-owned businesses during the 2018 through 2020 fiscal years

ldquoThe purpose of the DBE program is to create a level playing field for firms owned and operated by disadvantaged individuals wanting to participate in federally assisted highway transit and aviation programsrdquo a press release from WSDOT said

A series of public meetings will be held to discuss the goal in Spokane Vancouver and Seattle

For those who are unable to attend the in person meetings a webinar will be hosted from 230 to 430 pm Thursday Dec 5 The webinar is free but registration is required To register email DisparityStudywsdotwagov

Page 1 of 2WSDOT Seeks Public Comment on Disadvantaged Business Enterprise | News | chronlin

1112018httpwwwchronlinecomnewswsdot-seeks-public-comment-on-disadvantaged-business-

Written comments can also be submitted by mail or email to Jackie Bayne policy and reporting manager for the department of transportation at Washington State Department of Transportation Office of Equal Opportunity PO Box 47314 Olympia 98504 or by email at disparitystudywsdotwagov Comments will be considered through Dec 17 2017

More information about the goal is available at all regional offices or at the main office in Olympia located at the Transportation Building 310 Maple Park Ave SE Olympia More information can also be found online at wsdotwagovequalopportunity

Page 2 of 2WSDOT Seeks Public Comment on Disadvantaged Business Enterprise | News | chronlin

1112018httpwwwchronlinecomnewswsdot-seeks-public-comment-on-disadvantaged-business-

larr Halfway there SR 8 fish barrier removal reaches milestone New SR 26 traffic cameras available rarr

WSDOT seeks comments on proposed DBE contracting goal for highway projects

December 1 2017 | No Comments

WSDOT is seeking comments on proposed participation goals for Disadvantaged Business Enterprises on upcoming Federal Highway Administration contracts a Yakima meeting has also been added to the schedule Source WSDOT Permalink WSDOT seeks comments on proposed DBE contracting goal for highway projects

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Page 1 of 3WSDOT seeks comments on proposed DBE contracting goal for highway projects | Tukw

1112018httptukwilatowingcom20171201wsdot-seeks-comments-on-proposed-dbe-contracting

From Liz EvansTo Bayne JackieSubject AGC Comments on Proposed 10 GoadDate Tuesday December 12 2017 50314 PMAttachments WSDOT Proposed Goal - AGC Comments FINALdocx

Hi there Jackie Attached are AGCrsquos comments on WSDOTs proposed 19 goal We will also be mailing you a copy Thanks for the opportunity to comment and we hope you find it helpful Regards Liz Liz Evans CAE Northern District ManagerAGC OF WASHINGTONTel 3602238757 | wwwagcwacom JOIN US for the 2018 AGC of Washington Annual Convention amp Technology Expo Jan 26

CUsersmwillmsPicturesInland AGCLogo_RGB_Half_5in

December 12 2017

Page 5

December 12 2017

VIA EMAIL amp US MAIL

Ms Jackie Bayne Policy amp Reporting Manager

Washington State Dept of Transportation

210 Maple Park Ave SE

PO Box 47314

Olympia WA 98504

RE WSDOT Proposed FHWA Triennium Disadvantaged Business Enterprise Goal

Dear Ms Bayne

This letter summarizes the views of the Associated General Contractors of Washington and Inland Northwest Associated General Contractorsrsquo (hereafter referred to collectively as AGC) regarding the Washington State Department of Transportationrsquos (WSDOT) recently proposed FHWA Triennium Disadvantaged Business Enterprise (DBE) Goal (the ldquoProposed Goalrdquo) AGC shares WSDOTrsquos commitment to continue the promotion of DBE firms but AGC is concerned the Proposed Goal which is a significant increase from the previous goal and actual utilization may have unintended consequences and could impose significant burdens on both prime contractors and DBE contractors alike AGC requests WSDOT reconsider its Proposed Goal and adjust the Proposed Goal to account for inevitable availability and capability issues including the lack of a formal retraction of the non-minority woman owned business waiver that makes up over half of the Proposed Goal Implementing an unachievable goal will only be to the detriment of the DBE program

1 AGCrsquos Membersrsquo Interest in WSDOTrsquos Proposed Goal

Together AGC of Washington and Inland Northwest AGC represent and serve the commercial industrial and highway construction industry These professional associations of commercial contractors are comprised of more than 900 members who have joined together to enhance the performance of their industry and build a better climate for construction operators many of which are small and closely held businesses

Like WSDOT AGC is firmly committed to the principals of equal opportunity and promoting efforts to ensure minority women and veteran owned businesses are properly represented In both its political advocacy and membership programs AGC has demonstrated its commitment to increasing the representation of disadvantaged groups in the construction industry as both workers and owners of firms For AGC this is both an issue of principles and a practical one The construction industry as a whole is facing a critical shortage of workers and it is imperative that the industry attract new participants Among AGCrsquos activities demonstrating this commitment are the following

middot AGC has an ongoing ldquoContractor Exchangerdquo program through which small minority- and women-owned subcontractors are offered one-on-one networking opportunities with established general contractors

middot The AGC Education Foundation provides financial support to construction-related programs in K-12 schools and conducts outreach specifically targeted at low income disadvantaged and female students

middot More than 2500 students most from inner-city schools participate in annual AGC-sponsored Construction Career Days in King Pierce and Spokane Counties

middot AGC supports the Pre-Apprenticeship Construction Training (PACT) program at Seattle Vocational Institute This program is focused on preparing underrepresented communities to be highly qualified applicants and successful apprentices in the construction trades

middot AGC is a sponsor of the Turner School a training course for minority- and women-business owners in the construction industry

middot AGC supports the National Association of Women in Construction (NAWIC) which provides professional development and other services to its members

middot AGC routinely supports legislative efforts aimed at supporting small businesses and encouraging small business participation

middot AGC recently formed a Diversity and Inclusion Committee comprised of both prime and DBE participants The purposed of the committee is to expand opportunities for DBE members and to help AGC consider diversity in decision-making Recently AGC approved a deeply discounted introductory dues structure for certified DBE members

middot AGC is a WSDOT partner on the new mentorproteacutegeacute program

AGCrsquos experience has been that the most effective approach is to help make emerging businesses successful through outreach training and public policies that will grow their capacitymdashnot by imposing mandates without clear evidence as to the mandates feasibility

2 WSDOTrsquos Proposed Goalrsquos Impacts To The Construction Industry

WSDOTrsquos Proposed Goal is 190 The Proposed Goal is based upon the recent Collete Holt amp Associates (CHA) Disparity Study released in 2017 With respect to availability the Disparity Study reports the following weighted availability for FHWA-Funded projects

Thus the 190 goal factors in Black Hispanic Asian Native American and White Women into its availability As indicated however this 19 goal raises a number of concerns

a WSDOTrsquos 19 Proposed Goal Represents a Significant Increase Without Concrete Evidence of Available And Capable DBE Firms

First WSDOTrsquos Proposal Goal of 190 represents a significant increase as compared to actual DBE participation (141 in 2014 117 in 2015 and 151 in 2016) as well as the last FHWA proposed goal of 116 for 2014-2018 See WSDOTrsquos Proposed Goal and Interim FHWA Overall DBE Goal Methodology FFY 2014-2018 The Proposed Goal is 74 more than the last goal which represents a 638 increase and a 52 increase over the average actual utilization for 2014-2016 While Contractors were exceeding the previous 116 goal this is primarily based on the fact that WSDOT previously requested a waiver to consider non-women-owned businesses and the waiver was not granted and effective until June 2017 (meaning that for 2014-2016 women were counted towards race-conscious goals and inevitably a higher overall percentage of DBE firms were utilized)

Contractors struggle to meet present DBE goals due to the relatively low availability of experienced and certified DBE firms By increasing the goal WSDOT is understandably trying to increase the participation of underrepresented firms Drastically increasing the goals (by over 5 of actual utilization) without concrete evidence that there is sufficient availability andor capability of such firms however will have the opposite effect Notably this lack of availability and capacity of DBE firms was discussed in detail in the Disparity Study For example the CHA Disparity Study notes a number of concerns of DBE firms while technically ldquoavailablerdquo with respect to the goal percentages are unable to meet the requirements necessary to fulfill the contract including purchasing the equipment necessary having available labor and ability to meet insurance and financing requirements Thus while there may be ldquoavailablerdquo firms there is not clear evidence (and if fact evidence to the contrary) that those available firms are capable and available to perform the majority of the FHWA-Funded contracts let by WSDOT

An additional example affecting DBE capability and availability that is not factored into the CHA Disparity Study or WSDOTrsquos Proposed GOAL is DBE ability to enter into Project Labor Agreements (ldquoPLAsrdquo) WSDOT has indicated their interest in pursuing a PLA AGC Members have raised concerns based on repeated experiences that many DBE firms due to the administrative and cost impacts refuse to enter into PLAs precluding those firms from performing certain work or increasing costs Again this lack of ability (or refusal) to perform should also be factored into WSDOTrsquos Proposed Goal which is not currently the case

b The Proposed Goal Does Not Account For The Current Non-Minority Woman Owned Business Waiver Still In Place

Second despite the significant increase WSDOT does not account for the current waiver of non-minority women owned businesses that remains in place As noted in WSDOTrsquos proposal comments WSDOT previously sought and received a waiver of the regulation that White females as a group are presumptively disadvantaged This waiver was heavily criticized by many including AGC and the results of the most recent CHA Disparity Study confirmed that White females are presumptively disadvantaged and do not enjoy a level playing field for USDOT-assisted contracts Therefore the CHA Disparity Study recommends that this group be returned to the status of goal credit eligibility WSDOT has sought a recession of the waiver but has not yet to our knowledge received a rescission of the waiver Nevertheless the 19 Proposed Goal still includes White women In fact of the 19 availability percentage White women represent 103 (over half) Accordingly for WSDOT to proceed with the 19 goal WSDOT must receive the rescission of the waiver for this goal to be even remotely possible to achieve If the rescission is not received the Proposed Goal must be adjusted

C The Proposed Goal Does Not Account For Availability Differences Across The State

Third the Proposed Goal does not account for availability difference across the state Eastern Washington contractors with an even scarcer pool of available and qualified DBE firms in the area as is the case now will be forced to subcontract to Western Washington firms paying transportation and per diem premiums for such work The CHA Disparity Study again provides numerous excerpts of anecdotal evidence demonstrating that the goals in Eastern Washington are too high A few of the contractor comments on the topic are as follows

When you apply those same goals to a different geographic region a different project site for a large firm to meet those goals is difficult because theres not necessarily the expertise in parts of the project that were submitting on

Theres very few DBEs over here [in Eastern Washington] Next year theres going to be even more work over here What are we going to do with all these goals We always meet the goals like I said youve got three four DBEs over here to do all the work and then they cant perform

There are just no [minority-owned] DBEs available in eastern Washington

See CHA Disparity Study at p 54 Again these are factors that should be taken into account in developing the Proposed Goal or at the very least its application WSDOTrsquos Proposed Goal however is silent as to this significant issue

When the lack of available firms with the capacity to perform significant DBE projects is coupled with the increased goals the price of WSDOT contracts will inevitably increase to the significant detriment of Washington taxpayers and the public entities Inevitably with a lack of available qualified firms the lack of competition will become evident and small qualifying contractorsrsquo prices will increase due to supply and demand principles as they become selected for projects and less able to take on additional work These increased DBE contract values will be passed on to the public agency and taxpayers which translates into fewer dollars available for the sorely needed and promised infrastructure upgrades In addition the instance of bid protests will inevitably increase potentially delaying projects and further diverting agency resources from badly needed infrastructure upgrades to resolving unnecessary disputes or rebidding the projects altogether

Finally faced with such drastic and potentially impossible requirements if adjustments are not made contractors may focus more on demonstrating good faith efforts Both a contractor who meets the required goal and a contractor that demonstrates good faith efforts are eligible for award It is likely that the contractor relying upon good faith effortsmdashwho will have a lower price than the other contractor who sacrificed price to actually meet the goalmdashwill be selected by the public agency This outcome will erode the total percentage participation of eligible firms and would clearly be inapposite of WSDOTrsquos intentions

3 Conclusion and Request

AGCrsquos members have asserted these and multiple other concerns Implementing an increased goal across the state and all contracts without clear evidence of available DBEs capable of performing the work and meeting the project requirements will have significant and far-reaching impacts on the construction industry many of which work against the aim of the Proposed Goal itself AGC requests WSDOT reconsider its Proposed Goal of 19 and make adjustments to account for the capability of DBE firms the lack of a rescission of the non-minority waiver and the lack of available DBE firms in parts of the state This Proposed Goal and its impacts on the construction industry will be irrevocable and will be to the detriment of taxpayers It is prudent to address these adjustments before implementing the Proposed Goal

Very truly yours

David DrsquoHondtCheryl Stewart Executive Vice President AGC of WashingtonExecutive Director Inland Northwest AGC

AGC of Washington bull 410 11th Avenue SE 203 Olympia WA 98501

Inland Northwest AGC bull 4935 E Trent Avenue Spokane WA 99212

image3jpeg

image1png

image2emf

image4png

image5jpeg

From Steve SmithTo WSDOT Disparity StudyCc Bayne JackieSubject 19 DBE RequirementDate Thursday December 14 2017 31947 PMAttachments DBE List and NAICS Listingpdf

Disparity Committee I recently read in The Daily Journal of Commerce that WSDOT plans to adopt a 19 DBEstandard for all FHWA funded projects early next year Our company S amp K Painting Inc is abridge painting company which is based in and works exclusively in Oregon and Washington Ihave been the owner of this firm since 1978 when it was first established My concerns aboutthe proposed 19 DBE requirement is as follows 1 There are very few opportunities for subcontract work on bridge repaint jobs These jobsare usually limited to cleaning and painting the bridge The only other facet of the project istraffic control which is almost always 3 or less of the project total cost The traffic controldoes provide a very good subcontracting opportunity 2 The NAISC code of 238320 includes bridge painting but also includes house painting wallcovering rust proofing etc which have almost no similarities to bridge painting When thiscode is used to determine the number of available firms (DBE or otherwise) that are availablefor bridge painting project this badly skews the numbers I would suggest that bridge paintingcontractors make up less than 5 of all firms in NAISC code 238320 3 If future WSDOT bridge painting projects require a 19 DBE participation A The qualified pool of DBE subcontractors available to submit pricing on any facetother than traffic control will be very limited I reviewed a list of 19 certified DBE firms listedunder painting at the WSDOT website and only recognized one firm from past projects B The number of prime bidders and competition will fall The state will incur highercosts due to this fact C Prime bidders will be forced to subcontract unqualified contractors just to be eligiblefor contract awards This will likely reduce the quality of the finished project Thank you for considering my concerns I may not have verbalized my thoughts as well as Iwould have liked but I have been in this business for almost 40 years and truly believe what Ihave said Sincerely

Steve Smith President

SampK Painting incP O BOx 390clacKamaS OregOn 97015Phone (503) 557-5544Fax (503) 557-5566Cell (503) 260-5280Steveskpaintingcom

From Lei WuTo Bayne JackieSubject comments on WSDOT proposed DBE goalDate Thursday December 14 2017 94925 PM

To Whom It May Concern

Below is my comments

The WSDOT recommended DBE Goal for FHWA contracts of 190 is a small andimportant increase that can further achieve equity in WSDOTFHWA contracting I am insupport of the 19 DBE Goal

I also want to express my appreciation for the thoroughness of the WSDOT Disparity studyand how the study disclosed the disparity in WSDOT contracts that do not have a DBE orWBE goal ndash further reinforcing that all women-owned firms and minority owned firms faceequity issues

I remain concerned with the methodology required by the Code of Federal Regulations andcase law because of the dependence on the availability of firms in the calculation Anunintended consequence of removing either gender or race from the goal is that many of thesefirms would go out of business the availability decreases and the formula then results in asmaller DBE goal

Thanks

Lei

Lei Wu PE AICP

Principal CSL Consulting

LeiWucsl-consultingnet

(425)562-6275

From Stephanie SimpkinsTo WSDOT Disparity StudySubject DBE Contracting goalsDate Wednesday November 29 2017 20259 PM

My name is Stephanie Simpkins and I own North Star Enterprises It is a large womanowned traffic control company located in Spokane Washington My mother founded thecompany in 1984 and I have worked in this family owned business most of my life Ipurchased the business from her in 2013 and have been sole owner since then My company thrived under the Disadvantaged Business Enterprise (DBE) Programimplemented by Washington Department of Transportation and administrated by United StatesDepartment of Transportation What started as a small business with one truck and a fewemployees has grown over the years to be one of the largest traffic control companies in thestate and employee countless people every construction season It has not been an easy roadover the years being a woman in the construction industry never is and it is hard to say wherewe would be now if it werenrsquot for the assistance of the DBE program As you know in June of 2017 majority women were removed from the DBE program basedon a disparity study conducted in 2012 On March 2014 Washington Department ofTransportation requested a wavier to remove majority women from the DBE program Thishas had an immediate and drastic impact on my business and all who work for me From themoment the waiver was approved and my company could no longer be used as a condition ofaward at bid time I began losing work Most recently the 2018 North Central Region ChipSeal which we have worked on for the last 10 years This contract provides work forapproximately 40 employees for the entire construction season I have already been told byseveral contractors that with such a high UDBE goal they wont even be able to consider mefor this project This loss along with several other smaller contracts to date are painting avery dismal future for my business With all of this turmoil surrounding the future of my business I find it frustrating to say theleast that WSDOT has chopped me off at the legs by not allowing my firm to count for theCOA but can use the little participation I may still contribute to help them reach their overallstate goal How is this fair If the contractors canrsquot utilize my business than neither shouldWSDOT As far as setting future state DBE contracting goals it looks as if the bar will beraised once again all while excluding the largest subset of useable DBErdquoS To me raising theoverall state goal at this time (which is already challenging to meet) with women DBErsquosexcluded from the program seems horribly ill timed

From Karen R BannishTo Bayne JackieSubject DBE GoalDate Tuesday December 5 2017 32549 PM

Hello Jackie ndash thank you for the webinar today concerning the proposed Overall DisadvantagedBusiness Enterprise Goal for the Federal Highway Administration I understanding the DisparityStudy much better now and checked the document you mentioned on the WSDOT website Pacific County is located in the Southwest corner of the State of Washington The tip of the LongBeach Peninsula would be 2 frac12 hours from Interstate 5 Our federal work primarily includes strictlyoverlay projects with 12 or fewer items of work included in the contract When bidding a project(our contracts are usually less than $500000) we sometimes received a single bid from the process Due to our proximity and the small cost for the work it is difficult to entice DBE participation Thereare simply no items of work that can be performed Having a mandatory DBE goal placed upon theproject in a rural area simply to meet the disparity guidelines will only increase the cost of theproject We feel the goals should be set in balance with the cost of the project and the items of work and notsimply directed to meet the overall goal

Karen BannishSenior Engineering TechnicianPacific County Department of Public Works211 North Commercial StreetRaymond WA 98577(360) 875-9368

From Dawn EgbertTo Bayne JackieSubject DBE Program Disparity StudyDate Tuesday December 5 2017 23825 PM

Hi JackieThank you for the great information on the call today You talked about the small works rosterbriefly We had a conversation in our office today about small contractors who are signed up on thePort of Vancouverrsquos small works roster Our team has had opportunity to talk to some of thecompanies on our roster who are women owned or minority owned businesses but they arenrsquotsigned up as a DBE firm When asked about that theyrsquove mentioned that they donrsquot want to fill outthe additional paperwork required to obtain the certification as a DBE As for the DBE goal at 19 it doesnrsquot seem to present an issue for the majority of our projects ndashespecially those where we would apply FHWA funds if granted However if we did happen to have aproject that didnrsquot include classifications of work where DBE certified participants are availablewould there still be an exception or a good faith efforts clause Thanks again for your time Dawn EgbertProcurement Services Manager3103 NW Lower River Road Vancouver WA 98660Direct 3609921102 | Cell 360448-9867 | Main 3606933611 | Fax 360735-1565degbertportvanusacom | wwwportvanusacom | available port properties Leadership | Stewardship | Partnership

From Feist MarleneTo WSDOT Disparity StudyCc Simmons Scott M Twohig KyleSubject Disparity Study Comments from City of SpokaneDate Friday December 15 2017 52226 PMAttachments image010png

image011pngimage012png

December 15 2017 Jackie BaynePolicy amp Reporting ManagerOffice of Equal OpportunityWashington State Department of TransportationPO Box 47314Olympia WA 98504-7314 RE Proposed DBE Contracting Goal for Highway Projects Dear Ms Bayne The City of Spokane would like to provide comments related to proposed DisadvantagedBusiness Enterprise Goal for Federal Highway Administration (FHWA) contracts by theWashington State Department of Transportation (WSDOT) Office of Equal Opportunity Manyof our projects receive funding from FHWA and as such the proposed new goals areapplicable to City work The City is supportive of the programrsquos purposemdashldquoto create a level playing field for firmsowned and operated by disadvantaged individuals wanting to participate in federally assistedhighway transit or aviation programsrdquo However the City is concerned about the ability to achieve the proposed utilization rate of upto 19 percent for DBEs in Eastern Washington considering the low number of DBEs in ourregion and the record construction under way in the City and in our region WSDOTrsquos DBE Program Disparity Study notes ldquoContractors in Eastern Washington repeatedlyreported that the goals on projects in their area are too highrdquo The Inland NorthwestAssociated General Contractors group notes that only about 12 DBEs in construction fields areavailable in the greater Spokane area Meanwhile the City has performed record construction in each of the last three years withproject totals hovering around $100 million Our City work has been bolstered by anaggressive program to improve water quality in the Spokane River Our local school districtsand our neighboring jurisdictions also have aggressive construction programs right now

Additionally we expect WSDOTrsquos work in this region to accelerate as North Spokane Corridor(NSC) construction proceeds At times our area is reaching the limits overall of our contractingcommunity the City has worked to release its projects in the first quarter of the year as muchas possible to lock in contractors and receive better pricing The capacity of existing DBEs in our region simply cannot meet that current high demand Some DBE firms are tempted to agree to more work in these times but we have found that insome cases DBEs have stretched themselves too thin On two recent City projects generalcontractors were unable to meet DBE goals as a result of DBE firms that couldnrsquot fulfill theircommitments for providing personnel or equipment It also seems implausible to expect DBEs from the West Side to mobilize teams to work on Cityof Spokane projects in large numbers In fact the Disparity Studyrsquos author responded at arecent meeting on this topic that a DBE from the West Side only very rarely completes workon the East Side of the state We would also be concerned about moving the good-paying jobs that construction providesoutside of our region The Cityrsquos median household income is $44350 considerably lower than theState of Washington MHI of $64129 and the Seattle MHI of $77351 Our leaders are working tocreate good-paying jobs for our citizens not export them to an already wealthier part of the state Additionally these projects are also funded with local dollars and our citizens expect their money toput their neighbors to work With the above considered the City is seeking

middot DBE goals for the 2018-2020 compliance period for Eastern Washington that arereflective of the current availability of DBE firms in our region

middot The re-inclusion of non-minority women owned DBEs in achieving DBE goals InSpokane non-minority women owned DBEs make up the majority of the availableDBEs And current information shows that women in Spokane overall still lag behindmen in opportunities and wages The Cityrsquos own ldquoGender and Racial Equityrdquo reportfrom 2016 noted that overall working women earned 783 percent of the earnings ofworking men in 2014 down from 827 percent in 2009 We need to lift up all women

middot The development of WSDOT programs to encourage the growth of existing andnew DBEs who can be used on street and highway projects We are encouraged by theproposed mentorproteacutegeacute program to increase the number and capacity of DBEs inEastern Washington Programs that address other barriers such as assistance withcompleting documentation or access to bonding capacity also could aid growth ofDBEs

middot The ability for WSDOT to adjust goals on a project if a selected DBE is unable tocomplete its commitments on a project This would help enable our contractors totake a chance on a new or inexperienced DBE to complete work

middot Recognition of local programs that strive to increase diversity in the work force Forexample the City operates a robust apprenticeship program that requires 15 percentof the labor hours on public works jobs greater than $600000 to be performed byapprentices The apprentice programs in our region are stepping up recruitmentefforts and are specifically seeking to recruit more youth women and minorities intoapprentice slots

As we seek to achieve the goal of increasing participation in street and highway constructionby companies owned by disadvantaged individuals we must also acknowledge that businessdevelopment and growth happens over time We must lay the groundwork now to build abase of DBEs that can help us achieve higher utilization goals over time Sincerely Marlene FeistDirector of Strategic DevelopmentPublic Works amp UtilitiesCity of Spokane

Marlene Feist | City of Spokane | Public Works Director of Strategic Development5096256505 | cell 5097109214 | mfeistspokanecityorg | spokanecityorg

From Hall MattTo WSDOT Disparity StudySubject FW WSDOT News - WSDOT seeks comments on proposed DBE contracting goal for highway projectsDate Friday December 15 2017 11956 PMAttachments WSDOT proposed DBE goal through 2020pdf

From Hall Matt Sent Friday December 15 2017 117 PMTo BayneJwsdotwagovCc Keniston Rick (KenistRwsdotwagov) MolyneKwsdotwagov SusanWilsonclarkwagovSubject WSDOT News - WSDOT seeks comments on proposed DBE contracting goal for highwayprojects Hello Jackie Please see our comments attached regarding the WSDOT proposed DBE goals Thanks for the opportunity to provide comments Matt HallClark County Public Works Washington State Department of Transportation ndash NEWSHeadquarters ndash 310 Maple Park Avenue SE ndash Olympia WA 98504-7314 ndash 360 705-7000 FOR IMMEDIATE RELEASEOct 30 2017 Contact Jackie Bayne Office of Equal Opportunity 360 705-7084

WSDOT seeks comments on proposed DBEcontracting goal for highway projectsComments accepted through Dec 15OLYMPIA ndash Contractors trade and labor organizations small and disadvantaged businessesand all others who may be interested in working with the Washington State Department ofTransportation are invited to comment on the agencyrsquos proposed Disadvantaged BusinessEnterprise goal for Federal Highway Administration contractsDBE goals for transportation projects that receive federal funds represent a percentage of thevalue of work in which minority- and women-owned businesses should participate WSDOTis proposing a 19 percent overall DBE participation goal on Federal Highway Administration-funded projects for federal fiscal years 2018 through 2020Once submitted to FHWA early next year the goal will be effective through Sept 30 2020The purpose of the DBE program is to create a level playing field for firms owned andoperated by disadvantaged individuals wanting to participate in federally assisted highwaytransit and aviation programsConnecting with communitiesWSDOT will host a series of public meetings to provide opportunities for individuals tocomment in person

Spokane

2 ndash 4 pm Tuesday Nov 28WSDOT Eastern Region Headquarters2714 N Mayfair St Spokane

Vancouver

2 ndash 4 pm Wednesday Nov 29WSDOT Vancouver Headquarters11018 NE 51st Circle Vancouver

Seattle

2 ndash 4 pm Thursday Dec 7WSDOT Northwest Region Headquarters15700 Dayton Ave N Shoreline

Other ways to provide commentThose who are unable to attend one of the meetings can participate in a no-cost webinar from230 ndash 430 pm Tuesday Dec 5 Registration for the webinar is required Those interested inparticipating should email DisparityStudywsdotwagovWritten comments can also be submitted by mail or emailJackie Bayne Policy amp Reporting ManagerWashington State Department of TransportationOffice of Equal OpportunityPO Box 47314Olympia WA 98504-7314DisparityStudywsdotwagovDocuments detailing the methodology used for determining the FHWA DBE goals areavailable for review at all WSDOT region headquarters offices and at the TransportationBuilding 310 Maple Park Ave SE Olympia They are also available online atwwwwsdotwagovequalopportunityWSDOT will consider all written comments received through Friday Dec 15 2017 Hyperlinks within this release

WSDOT Region offices wwwwsdotwagovContactofficelocationhtmregion

WSDOT keeps people businesses and the economy moving by operating and improving the statestransportation systems To learn more about what were doing go to wwwwsdotwagovnews forpictures videos news and blogs Real time traffic information is available at wwwwsdotcomtraffic or bydialing 511 Americans with Disabilities Act (ADA) InformationAccommodation requests for people with disabilities can be made by contacting the WSDOTDiversityADA Affairs team at wsdotadawsdotwagov or by calling toll-free 855-362-4ADA (4232)Persons who are deaf or hard of hearing may make a request by calling the Washington State Relay at711 Title VI Statement to Public It is WSDOTrsquos policy to assure that no person shall on the grounds ofrace color national origin or sex as provided by Title VI of the Civil Rights Act of 1964 be excluded fromparticipation in be denied the benefits of or be otherwise discriminated against under any of its federallyfunded programs and activities Any person who believes his or her Title VI protection has been violatedmay file a complaint with WSDOTrsquos Office of Equal Opportunity For additional information regarding Title

VI complaint procedures andor information regarding our non-discrimination obligations please contactOEOrsquos Title VI Coordinator at 360-705-7090 To unsubscribe to WSDOT media releases please reply and type REMOVE in the subject line

This e-mail and related attachments and any response may be subject to public disclosure under state law

From Cochrane EmilieTo WSDOT Disparity StudyCc Eugenis Susan Cowlitz Co Public Works - Brad BastinSubject Proposed DBE GoalsDate Thursday December 14 2017 85006 AMAttachments image002png

DBE Goals - Commentspdf

Please see the attached letter with comments regarding the proposed DBE Goals Ahard copy will be sent out today

Thanks

Emilie CochraneCowlitz County Public Works1600 ndash 13th Avenue SKelso WA 98626360-577-3030 ext 6523

From Michelle WolcottTo Bayne JackieCc Robideau Christopher LSubject RE DBE Contracting Goal CommentsDate Tuesday November 7 2017 65448 AMAttachments image001png

Thank you JackieWhat a relief to know that we have been heard and are not the only small business facing thisstruggle Your email is comforting

Yes you can provide us with additional assistanceLet me introduce my boss and Senior Vice President of Red Plains Professional Chris Robideau

Chris will be your contact from here since I will be leaving the company November 17th As a WA DBE we are ldquoeligible for limited DBE Support Services (SS) funding when funds becomeavailablerdquo When will this happen And are we registered or on a list to receive fundingIs the WSDOT ICR Training a prerequisite for the funding Or just helpful knowledge

Thank you for your time Jackie I will follow through with the training

Michelle Wolcott EIT Quality Control Engineer

2103 NE 129th Street Suite 201 Vancouver WA 98686 Office (360) 448-7999 Fax (360) 258-0274

wwwred-plainscom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Monday November 6 2017 332 PMTo Michelle Wolcott ltMichelleWolcottred-plainscomgtSubject RE DBE Contracting Goal Comments

Hi Michelle

Thank you for your interest in doing business with WSDOT I apologize for the lack of informationyou have come up against in your attempts to attain access to WSDOT ICR program

As you may well know WSDOT has recently completed a state wide agency specific diversity studyAnecdotal comments submitted with the study concur with your experience Not only did somerespondents find it difficult to become prequalified they also commented that the required indirectrate of 110 percent is too low to be profitable These requirements are currently under advisementby WSDOT and new DBE program requirements are currently in the process of seeking public input

As you are an OMWBE certified DBE in Washington State you will be eligible for limited DBE SupportServices (SS) funding when these funds become available At that time funds may become availableto assist you in your struggle to attain ICR eligibility Here is a link to WSDOTrsquos Indirect Cost RateTraining httpswwwwsdotwagovAuditICRTraininghtm If you would like me to find additionaltraining or information please let me know

If I can provide additional assistance of information please let me know

Best Regards

Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Michelle Wolcott [mailtoMichelleWolcottred-plainscom] Sent Tuesday October 31 2017 835 AMTo WSDOT Disparity Study ltDisparityStudyWSDOTWAGOVgtSubject DBE Contracting Goal Comments

HelloI have been in contact with WSDOT for 6 months sharing my disparaging story of beinga small DBE unable to submit SOQs for projects requiring a WSDOT Audited IndirectCost Rate Approval We do not have an in-house accountant and our outsideaccountant has explained to get all the paperwork together for WSDOT would take 40hours of work $9000 annually We cannot justify this cost to submit on a project thatwe may not acquire We have been directed to seek financial assistance from WSDOT Federal SBA andWashington State Office for Women and Minority Owned Enterprises all of whichprovided negative responses

As a DBE business in 11 states we are supporting the 19 incentive for federallyfunded contracts but we are frustrated in the fact that we will not be one of the luckyfew to participateWe have been in business 20 years From our Vancouver Washington office our clientsare the Native American tribes across the country with all contracts federally funded This summer alone the WSDOT ICR Approval has squashed our ability to submit on twoprojects that we were perfectly qualified to performI have attached previous emails to show a sample of who I have been dealing with

Thank you

Michelle Wolcott EIT Quality Control Engineer

ltimage001pnggt

2103 NE 129th Street Suite 201 Vancouver WA 98686 Office (360) 448-7999 Fax (360) 258-0274 wwwred-plainscom

From Michelle Wolcott Sent Monday July 10 2017 954 AMTo Harvey Schatzie ltHarveySwsdotwagovgtSubject RE WSDOT Indirect Cost Rate Process

Good Morning Schatzie

This is Michelle Wolcott from Red We spoke Friday June 30th about the ICRprocess and you were very encouraging I relayed the information to my boss who ishere in Vancouver then he shared with the president bookkeeper and our accountantin Oklahoma We had FAR compliance with Oklahoma DOT in 2015 so we are noteligible for the Safe Harbor Program Our account said our timekeeping system doesnot breakdown the hours and pay in the format WSDOT wants to have it presented andto get the documents in order would take the CPA and an assistant $9000 in paidhours of work It turns out this would have to be annually The other option is to hirean outside CPA firm to do the audit for us at $20000 annually

Our president said in the past we received funding assistance from the Stateof Oklahoma to get our ICR approval Does WSDOT offer any financial assistance for small businesses to reach compliance We are also a DBE in WA I have requested the same information from WA PTAC at theVancouver Chamber of Commerce and from WA Office of Minority and Women OwnedBusiness Enterprises and they both said there was nothing but suggested to askWSDOTThank you for your helpMichelle Wolcott EIT

Hello Michelle sorry but I am not aware of any grants But I was looking at this andthere is a POC at the bottom you may try to discuss the audit issuesHollyHolly BoehmeBusiness Opportunity Specialist | 8(a) Business Development ProgramUS Small Business Administration bull Seattle District Office

Hello Michelle -

Thank you for your email Im not aware of any funding available for thispurpose but do agree its quite a bit for a DBE firm to have as an expense Mostof the firms I work with do a lot more work on the Oregon side so perhaps thereare programs available that I just havent heard of Im copying my colleagueHoly Boehme in our Seattle District Office to see if they are aware of any suchassistance

Holly might there be some small business incubators or other resources availablein WA to help a small firm with the expense of getting a WSDOT AuditedIndirect Cost Rate approval Please reply all with anything you may have

Thank you

Yuri Yoshida Dyson Business Opportunity SpecialistUS SMALL BUSINESS ADMINISTRATION Portland District OfficePhone 503-326-6692 Fax 202-292-3872 wwwsbagovor

From Troy HalbergTo Bayne JackieSubject Re DBE Goal CommentsDate Wednesday December 13 2017 35533 PM

JackieToday was another example of why the goals should not be raised There were 2 jobs which Iwas low on and did not get due to the high goals This is exactly what will happen when thegoals get raised The first job was the 9180 Anacortes Ferry Paving Northeast Electric $244924 and UDBE $318000 Second job was the 9172 SR 9 East Junction Job Northeast Electric $68503 and UDBE $76300

Does this seem like a good way to spend the tax payer money I do not see how we are tosurvive if the goals get to 21

Thanks

Troy HalbergOffice360-225-7004Cell360-931-3990Fax360-225-7001

On Thu Nov 30 2017 at 1131 AM Bayne Jackie ltBayneJwsdotwagovgt wrote

Good Morning Troy

Thank you for taking the time to provide us with your experiences with the DBE Program TheWashington State Department of Transportation takes the public involvement process veryseriously and your comments will be taken into consideration prior to a final decision regardingthe overall DBE program goal

If I can be of further assistance please let me know

Best Regards

Jackie Bayne

Policy and Reporting Manager

WSDOT Office of Equal Opportunity

Work (360) 705-7084

Cell (360) 338-5783

BayneJwsdotwagov

From Troy Halberg [mailtotroyhnellcnet] Sent Wednesday November 29 2017 144 PMTo WSDOT Disparity Study ltDisparityStudyWSDOTWAGOVgtSubject DBE Goal Comments

If these goals are to be set that high this would make us as a non DBE small contractor at amajor disadvantage With these high of goals this is like handing all of the DBE electricalcontractors every job These general contractors will have no option but to use thembecause of the goals This should not go into effect We have been low on several jobs in thepast and have not gotten them do to the goals being 18 When this goes on it puts all therest of us contractors at a disadvantage Please consider the smaller non DBE contractorsthat are looking to survive as well

Thanks

Troy Halberg

Office360-225-7004

Cell360-931-3990

Fax360-225-7001

From Daniel Seydel IITo Bayne JackieCc Key Earl daneiwashingtonorg Nadeem Ismail Mussie Tewelde (mteweldehydro2geotechcom)

graceflyrightaolcom Mary Wenner Watkinson LarrySubject Re Seydel Dan - WSDOT Disparity Study Presentation Public TestimonyDate Friday December 8 2017 30323 PM

Jackie

It was my hope that the comments would be put into record I was also hoping that you wouldnot have to be the one having to formulate responses for each clarification If that is the caseI know you are swamped and will then I just ask my comments be only part of the recordHowever if there is dedicated staff that is going to be compiling and responding to theclarification then the below questions would be the priorities of most interest

These were questions unrelated to the disparity study and hopefully should be doable

1) Do you have any reports on your outcomes from the past 5 years on DBE support servicesand specific key performance measures from previous years funding (ie how many firmsutilized what was the objectives were objectives met did outcomes meet total satisfaction ifnot why next steps what was the firms capacity before and after services were performed (iesales employees bonding if applicable insurance equipment line of credit if applicablenumbertype of customers how are they doing now etc))

2) What other changes or improvements other than allowing DBES to select their own serviceproviders and a staff change will be a part of this new program

3) Was consideration to provide the new mentor protege consultant rather than separating theactivities into support services andor technical assistance

Disparity study clarifications

1) Will WSDOT consider sponsoring legislation to support the policy changes and goalincreases to insure manditory goals wont be necessary

a) If not what measures will you grant primes to operate outside the box (ie entertain bestvalue over low bid modify responsiveness by subs to require adherence to meeting voluntarygoals developing standards around federally funded gccm and other low bid procurementsthat give powers to primes to meet objectives including but not limited to mentor protegerelationships joint ventures bond waiving techniques cash flow assistance material andequipment acquisition manufacturer development specifications that have only DBES orinclude equal number of DBES as non DBES as approved installers etc)

2) Will the disparity study consultant be available for implementation or information gatheringfrom other regions

5) Will WSDOT be hiring more diverse staff amp professionaltechnical service providers inother departments outside OEO to insure policies commitments and evaluations areperformed in manner that improves diversity that reflects the communities WSDOT serves bythoughtful and legal efforts increase participation thus creating successful outcomes includingpartnerships and collaborations

Thank you and Merry Christmas

Hi Dan

Thank you for providing such thoughtful public comments questions and testimony

Regarding your public testimony below - I do not believe I am not able to answer questions ifthey are public comments Please let me know what part of this email you would likeclarification on and what part you would like considered public testimony

I appreciate your thoughtful consideration of WSDOTrsquos implementation of our civil rightsprograms

Best Regards

Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

DIDaniel Seydel IIFyi Daniel J Seydel II Platinum Group LLC 2064060844 f) 2062999934wwwplatinumbusinessgroupcom Small Business is the Answer FREE TRAINING FORENTREPRENEURS amp JOB SEEKERS - Polish your skills or make your firm standout thanksto the EntrepreneurialThu 233pDI

Daniel Seydel IIThu 1272017 1123 AMInbox Sent ItemsShow all 7 recipientsTobaynejwsdotwagov ltBayneJwsdotwagovgtJackie

Per your request below are my questions and comments some of which were verbally sharedyesterday

Congratulations on receiving the blessing of additional technical assistance dollars andcompleting the DBE Disparity Study per your report

1) Do you have any reports on your outcomes from the past 5 years on DBE support servicesand specific key performance measures from previous years funding (ie how many firmsutilized what was the objectives were objectives met did outcomes meet total satisfaction ifnot why next steps what was the firms capacity before and after services were performed (ie

sales employees bonding if applicable insurance equipment line of credit if applicablenumbertype of customers how are they doing now etc))

2) What other changes or improvements other than allowing DBES to select their own serviceproviders and a staff change will be a part of this new program

3) Was consideration to provide the new mentor protege consultant rather than separating theactivities into support services andor technical assistance

Disparity study clarifications andor comments

1) Will WSDOT consider sponsoring legislation to support the policy changes and goalincreases to insure manditory goals wont be necessary

a) If not what measures will you grant primes to operate outside the box (ie entertain bestvalue over low bid modify responsiveness by subs to require adherence to meeting voluntarygoals developing standards around federally funded gccm and other low bid procurementsthat give powers to primes to meet objectives including but not limited to mentor protegerelationships joint ventures bond waiving techniques cash flow assistance material andequipment acquisition manufacturer development specifications that have only DBES orinclude equal number of DBES as non DBES as approved installers etc)

2) Will the disparity study consultant be available for implementation or information gatheringfrom other regions

3) What lessons did WSDOT learn that it did not know from the other study(s)

4) What would WSDOT do different (ie scope time line process approach etc)

5) Will WSDOT be hiring more diverse staff amp professionaltechnical service providers inother departments outside OEO to insure policies commitments and evaluations areperformed in manner that improves diversity that reflects the communities WSDOT serves bythoughtful and legal efforts increase participation thus creating successful outcomes includingpartnerships and collaborations

Daniel J Seydel IIPlatinum Group LLC 2064060844f) 2062999934wwwplatinumbusinessgroupcom

Small Business is the Answer

FREE TRAINING FOR ENTREPRENEURS amp JOB SEEKERS - Polish your skills or makeyour firm standout thanks to the Entrepreneurial Institute of Washington

httpswwwyoutubecomchannelUCKL5YeVxL29HnNxqnb6hmXA

LIKE US on FaceBook if an Active Professional Development workshop provided by EIW

Construction University helps your firm or has benefited you

httpswwwfacebookcomEIWashingtonref=hl

From Bayne Jackie ltBayneJwsdotwagovgtSent Friday December 8 2017 10139 PMTo Daniel Seydel IICc Key Earl daneiwashingtonorg Nadeem Ismail Mussie Tewelde(mteweldehydro2geotechcom) graceflyrightaolcom Mary Wenner Watkinson LarrySubject RE Seydel Dan - WSDOT Disparity Study Presentation Public Testimony Hi Dan Thank you for providing such thoughtful public comments questions and testimony Regarding your public testimony below - I do not believe I am not able to answer questions if theyare public comments Please let me know what part of this email you would like clarification on andwhat part you would like considered public testimony I appreciate your thoughtful consideration of WSDOTrsquos implementation of our civil rights programs Best Regards Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov From Daniel Seydel II [mailtodanplatinumbusinessgroupcom] Sent Thursday December 7 2017 1123 AMTo Bayne Jackie ltBayneJwsdotwagovgtCc Key Earl ltKeyEwsdotwagovgt daneiwashingtonorg Nadeem Ismailltnipaintingearthlinknetgt Mussie Tewelde (mteweldehydro2geotechcom)ltmteweldehydro2geotechcomgt graceflyrightaolcom Mary Wennerltmwenn0108yahoocomgtSubject Seydel Dan - WSDOT Disparity Study Presentation Public Testimony Jackie

Per your request below are my questions and comments some of which were verbally sharedyesterday

Congratulations on receiving the blessing of additional technical assistance dollars andcompleting the DBE Disparity Study per your report

1) Do you have any reports on your outcomes from the past 5 years on DBE support servicesand specific key performance measures from previous years funding (ie how many firmsutilized what was the objectives were objectives met did outcomes meet total satisfaction ifnot why next steps what was the firms capacity before and after services were performed (iesales employees bonding if applicable insurance equipment line of credit if applicablenumbertype of customers how are they doing now etc))

2) What other changes or improvements other than allowing DBES to select their own serviceproviders and a staff change will be a part of this new program

3) Was consideration to provide the new mentor protege consultant rather than separating theactivities into support services andor technical assistance

Disparity study clarifications andor comments

1) Will WSDOT consider sponsoring legislation to support the policy changes and goalincreases to insure manditory goals wont be necessary

a) If not what measures will you grant primes to operate outside the box (ie entertain bestvalue over low bid modify responsiveness by subs to require adherence to meeting voluntarygoals developing standards around federally funded gccm and other low bid procurementsthat give powers to primes to meet objectives including but not limited to mentor protegerelationships joint ventures bond waiving techniques cash flow assistance material andequipment acquisition manufacturer development specifications that have only DBES orinclude equal number of DBES as non DBES as approved installers etc)

2) Will the disparity study consultant be available for implementation or information gatheringfrom other regions

3) What lessons did WSDOT learn that it did not know from the other study(s)

4) What would WSDOT do different (ie scope time line process approach etc)

5) Will WSDOT be hiring more diverse staff amp professionaltechnical service providers inother departments outside OEO to insure policies commitments and evaluations areperformed in manner that improves diversity that reflects the communities WSDOT serves bythoughtful and legal efforts increase participation thus creating successful outcomes includingpartnerships and collaborations

Thank you for your hard work

Daniel J Seydel IIPlatinum Group LLC2064060844f) 2062999934wwwplatinumbusinessgroupcom

Small Business is the Answer

FREE TRAINING FOR ENTREPRENEURS amp JOB SEEKERS - Polish your skills or makeyour firm standout thanks to the Entrepreneurial Institute of Washington

httpswwwyoutubecomchannelUCKL5YeVxL29HnNxqnb6hmXA

LIKE US on FaceBook if an Active Professional Development workshop provided by EIWConstruction University helps your firm or has benefited you

httpswwwfacebookcomEIWashingtonref=hl

From Erin EhlingerTo Bayne JackieSubject Support for WSDOTs proposed DBE goalDate Wednesday December 13 2017 115417 AM

I am writing to support the WSDOT recommended DBE Goal for FHWA contracts of 190 I also want to express my appreciation for the thoroughness of the WSDOT Disparity study and howthe study disclosed the disparity in WSDOT contracts that do not have a DBE or WBE goal ndash furtherreinforcing that all women-owned firms and minority owned firms face equity issues I remain concerned with the methodology required by the Code of Federal Regulations and case lawbecause of the dependence on the availability of firms in the calculation An unintendedconsequence of removing either gender or race from the goal is that many of these firms would goout of business the availability decreases and the formula then results in a smaller DBE goal Pleaselet me know how I can help influence a change to the CFR Thank you Erin Ehlinger

Erin Ehlinger PEPresident

24036 SE 47th StSammamish WA 98029erinehlingersmartcitytrafficcom425-221-0320

From Jackie EtterTo WSDOT Disparity StudySubject Why we need mandatory goalsDate Friday December 1 2017 61859 PM

As a DBE participating in bidding process I have found that regardless of the language which claims to insurethat disadvantaged business enterprises shall not be discriminated against the only way to ensure that this does nothappen is by mandating affirmative action goals Having been overlooked time and time again because of my gender when I have submitted bids that are verycompetitive with other bidders is very frustrating I have had many instances of companies using my price to getmy non DBE competitors to lower theirs The voluntary or laudatory DBE goals do nothing to ensure a level playing fieldThe only way to ensure non-discrimination is through mandatory goals

Jackie EtterWest Star Construction of Spokane

Sent from my iPhone

From Claudia HirscheyTo Key Earl Bayne JackieSubject WSDOT DBE Goal - Comment in supportDate Tuesday December 12 2017 61937 PM

Dear Earl and Jackie The WSDOT recommended DBE Goal for FHWA contracts of 190 is a small and important increasethat can further achieve equity in WSDOTFHWA contracting I am in support of the 19 DBE Goal I also want to express my appreciation for the thoroughness of the WSDOT Disparity study and howthe study disclosed the disparity in WSDOT contracts that do not have a DBE or WBE goal ndash furtherreinforcing that all women-owned firms and minority owned firms face equity issues I remain concerned with the methodology required by the Code of Federal Regulations and case lawbecause of the dependence on the availability of firms in the calculation An unintendedconsequence of removing either gender or race from the goal is that many of these firms would goout of business the availability decreases and the formula then results in a smaller DBE goal Sincerely Claudia S Hirschey PETransportation Consulting Servicesclaudiahirscheycomcastnethttphirscheytcscom2068564988 Mobile

From Nate ThomasTo WSDOT Disparity StudySubject WSDOT Proposes DBE goal of 19Date Thursday December 7 2017 42720 PM

The WSDOT should look into similar ways the Federal Gov has handled the equal opportunity forthose that fall under the DBE status and set aside specific projects for the DBErsquos and moreimportantly UDBErsquos so these companies have better chance of landing contracts Maybe a lot 10 ofthe DBE goal to set aside for only DBEs and other 9 goal met as it is done currently with COA onlarger contracts Nate ThomasSenior EstimatorD 5095688085 | C 5099941156331 North Fancher Road | Spokane WA | 99212

The information contained in this email including any attachments is confidential and may beprivileged It is intended only for the person or entity to which it is addressed and no waiver isintended by sending this email If the reader is not the intended recipient you are herebynotified that any review retransmission dissemination or other use of or taking any action inreliance upon this information is strictly prohibited If you have received this email in errorkindly notify the sender by reply email and delete the original message from any computerThank You

From Brian FujiiTo WSDOT Disparity StudySubject WSDOT propsed DBE GoalsDate Thursday December 7 2017 110638 AM

Good morning Jackie

I wanted to comment on WSDOTs proposed DBE goal to 19 I believe WSDOTs plan toincrease the overall DBE goal to 19 will provide greater opportunities for DBE contractorsin different disciplines to participate in federally funded contracts

Without the new DBE requirement and with Proposition 200 there are limited opportunitiesfor DBE contractors in disciplines different than the typical trucking flagging and rebar Inaddition there are no incentives for general contractors to go out beyond the usual truckingflagging and rebar DBE subcontractors

Increasing the DBE goals will provide opportunities for different DBE contractors in differentdisciplines to participate in WSDOT federally funded projects

Thank you for your time

RespectfullyBrian FujiiPresident Subsurface ConstructionP 2063836478F 2069604639MDBE 4M0024998

From Forman StephanieTo Bayne JackieCc Millar Roger christinenhanmailhousegov Claudia Hirschey Sarah Corbin Jiang Yingle

efaulknerenviroissuescom Diana Giraldo Kelly CheesemanSubject WTS - Disparity Study Comment LetterDate Friday December 15 2017 71020 PMAttachments 2017_Dec 15_WTSCommentLetter_WSDOT DBE Goalpdf

Dear Ms Bayne Please find our attached letter which summarizes the WTS Puget Sound Chapterrsquos support foradvancement of women in transportation and our comment letter regarding the recent DisparityStudy Please feel free to contact me if you have any questions or would like to discuss Sincerely Stephanie S Forman PEWTS Puget Sound President Transportation Project Manager

929 108th Avenue NE Suite 1300Bellevue WA 98004D 4254681548 M 2062291745stephanieformanhdrinccom

December 15 2017

Jackie Bayne Policy and Reporting Manager

Office of Equal Opportunity

Washington State Department of Transportation

PO Box 47314

Olympia WA 98504-7314

Dear Ms Bayne

On behalf of the Puget Sound Chapter of Womenrsquos Transportation Seminar (WTS) we would

like to thank the Washington State Department of Transportation for presenting to our

organization the DBE Disparity Study results We very much appreciated the presentation by Earl

Key Director of WSDOTrsquos Office of Equal Opportunity Teresa Berntsen (Director Office of Minority

and Womens Business Enterprises) as well as Leslie Jones (Director Sound Transit Office of Small

Business Development and Labor Compliance)

Following a review of the WSDOT Disparity Study and as a result of consultation with WTS

International we would like to provide WSDOT with our comments for your consideration

As you know WTS is an organization focused exclusively on attracting retaining and advancing

women in transportation By the year 2018 there will be thousands of vacancies in the

transportation industry for qualified professionals and while women account for more than half of

the worldrsquos workforce they are a very small minority in transportation disciplines

We are pleased that the outcome of the 2017 Disparity Study that recognizes the on-going barriers

for DBEs including women-owned businesses in transportation The WSDOT recommended DBE

Goal of 190 is a small and important increase that can further achieve equity in WSDOTFHWA

contracting We are also pleased that the 2017 Disparity Study has documented the disparity in

WSDOT contracts that do not have a DBE or WBE goal ndash further reinforcing that all women-owned

firms and minority owned firms face equity issues We are encouraged that the WSDOT has asked

FHWA to rescind the 2016 waiver

While WTSrsquo mission is specific to the advancement of women we are a race-neutral organization To

this end we are also deeply concerned about the underutilization of minority owned firms There is

no equity or ldquofair playing fieldrdquo without equity for all gender and races We remained concerned with

the methodology required by the Code of Federal Regulations and case law because of the

dependence on the availability of firms in the calculation An unintended consequence of removing

either gender or race from the goal is that many of these firms would go out of business the

availability decreases and the formula then results in a smaller DBE goal This consequence is

contrary to our mission

We look forward to our continued participation in WSDOTrsquos DBE advisory group we are anticipating

notice that the 2016 waiver has been rescinded and how we can work together to continue

advancing minority and women-owned firms in the transportation field

Sincerely

WTS Puget Sound Chapter

Stephanie Forman

President

C Roger Millar Secretary WSDOT

C Representative Adam Smith 9th Congressional District Washington co Christine Nhan

WTS Puget Sound Chapter

PO Box 3461

Bellevue Washington 98009

From Dave Gent - WAPATo Bayne JackieCc Tom GaetzSubject WAPA Public Comments - RE WSDOT FHWA Disadvantaged Business Enterprise Proposed GoalDate Friday December 15 2017 14119 PMAttachments 12152017 DBE Proposed Goal - WAPA Public Comments Letterpdf

Good afternoon Jackie Please find attached WAPArsquos ldquofor the public recordrdquo comments with respect to WSDOTrsquos proposedDBE Goals FHWA funded work I assume that the Master DBE Directory was not sent to you this week so as a result we were notable to review the directory before the close of the public comment period That fact is noted withinour comment letter Thank you for your efforts Have a good weekend

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Friday December 8 2017 1219 PMTo Dave Gent - WAPA ltdavegentasphaltwacomgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hello Dave WSDOT did not take possession of this directory as part of our review process We will provide youwith the records without submitting a formal request However we need to get them from theconsultant first I will hopefully have them to provide next week I will keep you updated on therequest Have a nice weekend Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal Opportunity

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

December 15 2017

Jackie Bayne Policy Manager WSDOT Office of Equal Opportunity Delivered via e-mail to BayneJwsdotwagov RE Public Comment (as requested) to Proposed Overall DBE Goal for the FHWA (2018 ndash 2020) Ms Bayne Thank you for your presentation via webinar on December 5 2017 outlining WSDOTrsquos evaluation process used to determine the proposed overall DBE goal for the FHWA Thank you also for the Colette Holt amp Associates (CHA) DBE Advisory Group presentation made on September 14 2017 Both presentations helped to distill the findings of the 2017 Disparity Study produced by CHA In response to Earl Keyrsquos initial informal request to comment on the proposed overall DBE goal made during the DBE Advisory Committee teleconference held on October 12th we provided a list of reasons that we believe justify a lower DBE goal than is now being proposed Our initial response to Mr Keyrsquos request did not serve to influence WSDOT and the current proposed goal remains at 190 The arguments provided on October 12th against the significant increase in the proposed DBE goal (versus the previous goal and recent historic DBE participation) are repeated and supplemented below and will serve as the Asphalt Pavement Associationrsquos (WAPArsquos) official public comments

In concert with WSDOT and the OWMBE WAPA and the construction firms that WAPA represents have demonstrated a commitment to the principals of equal opportunity for all ldquoready willing and ablerdquo firms for the entire history that our DBE program has been in place WAPA has continuously demonstrated its commitment to the goals of the DBE program and for increasing the representation of disadvantaged groups within our industry as both workers and owners of firms Please recognize that WAPArsquos oversight and critique of the DBE program has always attempted to balance the principals of fair and open competition with the practical aspects of the low bid compressed schedule high performance standards demanded within the WSDOT marketplace Our comments below are meant to enhance WSDOTrsquos and OWMBErsquos understanding of the market and to hopefully have WSDOT fully consider all of the dynamics that are at play when proposing its Triennial DBE goal for FHWA projects Current DBE Capacity vs Historically Robust Market In advocating for a realistic and defensible DBE goal it has always been WAPArsquos position that it is paramount that the realities of the marketplace and true certified DBE subcontracting capacity should be a primary standard While a ldquostretchrdquo goal may appear to be progressive on its face it comes with consequences for all of the parties involved in the WSDOT federal aid contracting arena To balance the dynamics of the WSDOT contracting system the DBE goal should be tempered with the realities of the market and with a true measure of the underlying effectiveness of the DBE support services available to contractors

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 2 of 6 The first point of fact that has not been given any apparent consideration by WSDOT in its evaluation of the current capacity of certified DBErsquos is that there is an historically robust workload scheduled to be performed in the 2017 through 2022 time-frame particularly in the Puget Sound ldquoEverett to Olympiardquo corridor By WSDOTrsquos own estimates (see Attachment A) public works construction project starts in the 2018 to 2022 time-frame in this region will exceed $333 billion (B) counting the work projected from just five public entities WSDOT will be taking a decidedly ldquoback seatrdquo role during this period to Sound Transit which will have construction project starts of $226B vs WSDOTrsquos projected volume of $67B WSDOTrsquos summary publication titled Washington State Department of Transportations Proposed Federal Highway Administration Triennium Disadvantaged Business Enterprise Goal Federal Fiscal Years 2018-2020 states correctly that ldquoIncluded among the types of evidence that must be considered are the current capacity of DBEs to perform work on WSDOTrsquos federally-assisted contracts as measured by the volume of work DBEs have performed in recent yearshelliprdquo (Step Two Adjustment discussion) With the Sound Transit program being over 300 larger than the total WSDOT program in this region a sober assessment of true certified DBE capacity in the next three years needs to be considered by WSDOT If the huge construction boom over the next five years does not prompt a Step Two Adjustment then it becomes obvious that the realities of the market are being ignored by WSDOT for DBE goal setting Put another way if the 2018 through 2022 level of contracting activity does not warrant a goal adjustment what will DBE Access Barriers Not Yet Addressed The CHA 2017 Disparity Study points out multiple recommendations in Section VII that impact DBE participation and access to the market Assessments relating to those impacts and the state of maturity in addressing the CHA recommendations should be considered when assessing the DBE goal Many of the CHA recommendation have not been adequately addressed at this point in time Some of the prime examples are listed below Increase Certification and Expertise ndash The Disparity Study as explained to us includes all minority- (MBE)

and women-owned (WBE) firms that could be readily identified that perform work within Washington State and that perform work within the NAICS code framework CHA developed to cover WSDOT project work During the various presentations relating to the Disparity Study WSDOT representatives said that outreach to currently non-certified MBE amp WBE firms has increased and that WSDOT aspires to bolster its list of certified firms in the future but this effort is just beginning and the success of the effort needs to be means tested against the broader population of MBE amp WBE firms included in the CHA base line evaluation As the Disparity Study uses a much broader population of MBE WBE contractors to arrive at its conclusions (both non-certified firms and firms too large for certification) it follows that the calculated DBE proposed goal is overstated to include capacity that does not currently exist within WSDOTrsquos certified DBE framework Unless OMWBE is experiencing sudden and unprecedented success in recruiting new MBEWBE firms the DBE goal should be adjusted downward to recognize that the ldquoready willing and ablerdquo contractors that WSDOT has certified is only a subset of the total MBEWBE contracting population used in the Disparity Study evaluation

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 3 of 6

Until the promised WSDOT outreach registration efforts result in a substantial increase in available certified DBE firms it is premature to count the entire population of minority- and women-owned contractors as available to participate in WSDOT contracting It is unreasonable for WSDOT to project availability capacity using the entire MBEWBE population when only its currently truncated list of certified firms is acceptable to count toward the DBE goal

A corollary to the Increase Certification and Expertise discussion above is that the calculation of the Base Figure evidently includes the broadest practical population of MBE and WBE firms identifiable (without a review of the CHA Master DBE Directory which has not been supplied prior to the close of the public comment period the scope of the directory cannot be ascertained) If this directory includes a large population of MBEWBE firms that are not certified or are too large to be certified then the Base Figure calculation should be adjusted to reflect that certified DBE firms are a fraction of the total MBEWBE firms used to arrive at the 19 suggested DBE goal With respect to the CHA Master Directory it is our understanding the WSDOT was not given the directory as part of its evaluation of the Disparity Study and it follows that it did not evaluate the proposed DBE goal in the context of the CHA Master DBE Directory In our opinion an informed decision on adjusting the CHA baseline goal calculation can only be done after an extensive evaluation of the CHA Master DBE Directory If this has not been done WSDOT has not exercised due diligence in evaluating the context and underpinnings of the CHA Disparity Study and a certified DBE Triennium goal proposal to the FHWA is premature Increase Contract ldquoUnbundlingrdquo ndash If this proposed strategy (suggested by the CHA Study) is undertaken

certified DBE Subcontractors currently available will be engaged as Prime Contractors and the value of their prime contracts will bolster the overall percentage of certified DBE contracting but a systematic effort and strategy to ldquounbundlerdquo has not been articulated by WSDOT The key question of how this effort can be accomplished without increased cost to the taxpayers and increased inconvenience for the traveling public As noted in the CHA study (page 129 final paragraph) ldquoUnbundling must be conducted however within the constraints of the need to ensure efficiency and limit cost to the taxpayersrdquo As of this writing no overarching strategy for further unbundling with proper accountability has been articulated by WSDOT to the DBE Advisory Group

Review Insurance and Experience Requirements ndash Impediments to certified DBE participation due to

necessary insurance and experience standards cannot be solved by the prime contracting community Unless and until WSDOT puts together programs to address the burden of the substantial risks shouldered by Prime Contractors on WSDOT contracts barriers for streamlined utilization of certified DBE firms will continue to exist These market driven barriers will continue to dampen the availability of certified DBE Subcontractors that are able to perform within WSDOTrsquos strict criteria without unduly transferring risk to the Prime Contractor

Better Partnering to Overcome DBE Failures to Perform ndash Prime Contractors are held fully responsible to maintain the project schedule and are subject to project liquidated damages even when they may be struggling to deal with Subcontractor performance issues It is well-established that replacing a certified ldquocondition of awardrdquo (COA) DBE Subcontractor is very onerous and likely very costly to the Prime Contractor Unfortunately the imposition of strict and often counter-productive commercially useful function (CUF) rules often compound this issue as Prime Contractors cannot help COA DBE Subcontractors work through capacity expertise or time-related issues that impact timely performance

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 4 of 6

WSDOT needs to be a much better partner in the process of dealing with under-performing or non-performing certified DBE Subcontractors The current standard operational procedure places all of the exposure for non-performance onto the Prime WSDOT does not have an equitable system to account for non-performing or under-performing certified DBE Subcontractors hired as a condition of award (COA)

Performance Information and Training ndash Commercially useful function rules (CUF) and the lack of clear benchmark definitions for good faith effort (GFE) standards remain barriers for improving accountability within the DBE system and in turn lead to distorted DBE participation rates These items remain amorphous due to lack of training or lack of historic information Chronic uncertainty exists regarding both of these items Until WSDOT changes and improves its approach to provide transparency and certainty for both the prime bidding amp subcontracting parties true certified DBE capacity will continue to be masked and the resultant higher subcontracting costs associated with a distorted marketplace will continue to be hidden

WAPA respectfully suggests that simply adding an ldquoEstimated DBE Subcontract Premiumrdquo line to the current DBE bid forms would help to establish benchmarks that could begin to be used to ldquomeans testrdquo good faith efforts If this information had been gathered over the last 20 years of the DBE program meaningful GFE standards could have been developed and could be in place today

An in-depth review of CUF standards would also provide clarity For instance it is unclear why force account items performed by certified DBEs are currently counted at only 50 of the value of the work How was this benchmark established Has it been reviewed since imposed Did it ldquosolverdquo whatever inequity WSDOT was trying to address Better clarity may lead to more expanded opportunities for certified DBE Subcontractors

Enhanced Supportive Services and Business Development Programs ndash Unless and until stronger programs of these types are shown to be effective in boosting certified DBE business development increased DBE participation due to stronger business acumen should not be relied upon when setting the new DBE goal

Does OMWBE have a reasonable expectation that future plans for enhanced and expanded programs will be more successful than those employed in the past Assuming that certified DBE Subcontractors will be better prepared to deal with the WSDOT contracting environment than in the past should not be relied upon to boost DBE participation goals Especially troubling were the multiple references within the CHA report highlighting that DBEs believe that the staff at OMWBE lack a deep knowledge about the highway construction industry (eg Study page 129 2nd paragraph) Does OMWBE have a path forward that will address this issue and thus improve supportive services impacts

Develop a Bonding and Financing Program for SBEs ndash This is completely outside of the prime contracting

communityrsquos scope of influence WSDOT must find a way to institute changes that both protect the taxpayer and help increase certified DBE bonding capacity and access to financing ndash very large hurtles To assume that these hurtles can effectively be overcome within the 2018 ndash 2020 time frame when they have been chromic issues for the past 20 plus years of DBE program development is not rational

A helpful innovation would be for WSDOT to underwrite performance and payment bonds for certified DBE firms or to create promote a system that helps certified DBE firms obtain private bonding Bridging the gap to address capital access and performance risks (bonding) must be championed by WSDOT

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 5 of 6

Base Figure Adjustment to Address Available Subcontract Volume and DBE Prime Contracts It is a fact that mid- to large-sized MBEWBE firms that compete both as Prime Contractors and as Subcontractors are not eligible to be OMWBE certified DBEs Further the current amount of contract unbundling for greater DBE access to WSDOT prime contracting (see below) accounts for a very low dollar volume of prime contracts performed by certified DBEs Finally by specification (WSDOT standard specification 1-081) Prime Contractors are obligated to perform 30 of the total volume of the work (less specialty work) or stated another way a maximum of 70 of the dollar volume on WSDOT projects is typically available to award to subcontractors These market dynamics are NOT addressed in the Disparity Study A responsible DBE goal made absent of these facts should not be implemented A reasonable adjustment to the proposed 19 DBE goal is presented below

bull The percent of WSDOT prime contracts awarded to certified DBE firms is likely less than 5 by total WSDOT

contract volume Assuming this approximation is valid (likely very conservative) then the amount of WSDOT contract work available to certified DBE firms via subcontracting should be adjusted to account for the factors outlined above The Base Figure (19) should be adjusted to recognize that a 70 maximum subcontractor participation is available (in the numerator) and to account for the assumed 5 certified DBE prime contracts in the denominator Reasonable Base Figure Adjustment 19 (proposed) x 70 subcontracts available divide 95 of Non-Certified DBEs as Prime Contract Volume = 190 x 0737 = 140 adjusted goal This is an adjustment based on the practical dynamics of the WSDOT contracting system and it represents a more realistic look at the true subcontract volume that is available for Prime Contractors to award to certified DBE firms

Conclusions

Until the items listed above are addressed and in place it is not reasonable to believe that DBE goals can be increased by nearly 163 (from 117 to 190) When the projected robust public works contracting market is appropriately considered the true availability of certified DBE Subcontractors for WSDOT contracts will be truncated due to demand across all public works sectors With multiple strong public works programs competing for a limited population of certified DBEs the ability to meet increased WSDOT DBE goals will be severely challenged Without very clear concise and transparent good faith effort rules the ability to address DBE goals that greatly overestimate true near term certified DBE capacity will result in non-attainment bid day chaos failures to perform andor rapidly increased pricing

The clear conclusion is that at this point in time under the current circumstances without effectively instituted new programs rules procedures that could enhance the certified DBE programrsquos overall effectiveness we believe that the DBE goal should remain at or near 12 As OMWBE documents and demonstrates its future successes in improving access and eliminating capacity barriers only then should the DBE goal be re-evaluated and increased

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 6 of 6

In closing please remember that it is rare that the contracting community is asked our opinion with respect to the WSDOTrsquos DBE policies and so this letter is somewhat a vehicle to highlight collective concerns It is our belief that the majority of the Prime Contractors in Washington state support the objective of creating a level playing field for ready willing and able DBEs

If the level playing field is not yet possible in the absence of the DBE program then the key is to set realistic goals that recognize reflect and address the hard realities and market dynamics imposed by WSDOTrsquos bedrock environment of awarding contracts to the lowest cost responsible and responsive Contractor

Respectfully submitted Washington Asphalt Pavement Association

David Gent Tom Gaetz Executive Director Senior Advisor

Attachment A ndash WSDOT Central Puget Sound Public Works Contracting Projection 2018 - 2022

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t Sta

rts

2018

-202

2S

ound

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$22

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$08

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Tran

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T$6

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Por

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ttle

$15

B

TOTA

L$3

33

B

Source N

ov 1

9 2

017

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APA

Ann

ual M

eetin

g

Attachment A

Work (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Dave Gent - WAPA [mailtodavegentasphaltwacom] Sent Thursday December 7 2017 144 PMTo Bayne Jackie ltBayneJwsdotwagovgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hi again Jackie Irsquom fine thanks and hope you are the same Interesting The Master DBE Directory is the basis for and integral to the conclusions of the DisparityStudy Is it not then part of the information needed to fully review and comment on the DisparityStudy Was it not provided by CHA to WSDOT for review We are trying to fully understand thestudy and if this directory was part of the study why would it need to be obtained by a publicrecords disclosure It should be in the public domain and not restricted from ease of access If you are sure that a public records request is needed Irsquoll start that process but we will need tonote that point of fact when we submit our public comments If you are able to reconsider please let me know Respectfully

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Thursday December 7 2017 126 PMTo Dave Gent - WAPA ltdavegentasphaltwacomgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hello Dave I hope you are doing well

That information would likely be obtained through a public disclosure request Best Regards Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Dave Gent - WAPA [mailtodavegentasphaltwacom] Sent Thursday December 7 2017 113 PMTo Bayne Jackie ltBayneJwsdotwagovgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Jackie Can you please provide an electronic file or provide a weblink for the Master DBE Directory thatColette Holt amp Associates developed for the WSDOT Disparity Study 2017 (first referred to on Page 8of the Disparity Study) I did not see a link to this Master DBE Directory within the study Thanks

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Friday October 27 2017 1118 AMTo Kenyon Wendy ltKenyonWwsdotwagovgt Adams E W ltewadamssystemsclcomgtAdekoyaAndrew ltandrewadekoyabccomgt AlyssaBalllegwagov Anindita Mitraltamitracrea-affiliatescomgt APRISeattlehotmailcom Armstrong CharlotteltCharlieAatgwagovgt Ato Apiafi Architects PLLC ltatoaatoapiaficomgt benzfanwaorgBerntsen Teresa (OMWBE) ltTeresaBomwbewagovgt Billingsley Andrealtbillinawsdotwagovgt Bramlet Erica ltEricaBramletlegwagovgt Brooks Julius

ltBrooksJwsdotwagovgt Brown Jason ltjbrownldccorpcomgt bwallacenwlaborersorgCamden Allison ltCamdenAwsdotwagovgt carlllivingstongmailcom Cerda OscarltCerdaOwsdotwagovgt Christopher Chris ltChristCwsdotwagovgt ckerneycaawagovdanplatinumbusinessgroupcom davegentasphaltwacom David BalltDavidsignsnowmillcreekcomgt Davis Khalia ltDavisKhwsdotwagovgt Davis RaShelle (GOVltrashelledavisgovwagovgt Dayton Jo ltDaytonJwsdotwagovgt ddhondtagcwacomDebbieDriverlegwagov Dennis ltdennisahlkiewitcomgt dmcleodnwlaborersorgdrart6651gmailcom Duncan Enid lthigradeincgmailcomgt EltonltEltonwashingtonstatetruckingcomgt eprincecaawagov flemosldccorpcomfmartineznwmtnmsdcorg geoffshookatkncom glovelady ltgloveladyexcelglovescomgtGrabow Katie ltkgrabowsystemsclcomgt Guilfucci Jackie ltJackieGuilfucciskanskacomgt HealyLinda ltHealyLwsdotwagovgt Higginbotham Breanne ltHigginBwsdotwagovgt HirscheyClaudia ltclaudiahirscheycomcastnetgt Holt Colette ltcoletteholtmwbelawcomgt Huff JohnltHuffJwsdotwagovgt Iniguezchawagov JacksonMaynardlegwagov Jimmy Matta(jmattaalcantarassoccom) ltjmattaalcantarassoccomgt kellywickergovwagov Key EarlltKeyEwsdotwagovgt Kirk Jon ltjkirkwhhnfscomgt Kris Purrier ltkpurrierhwageocomgtleewabuildingtradesorg lesliejonessoundtransitorg Liz Evans ltlevansagcwacomgt LopezErin lterinlopezdeswagovgt Martha Cerna ltMarthaPSLCCORGgt Martin-Arnold EdwinaltMartinEwsdotwagovgt Mary Lerdahl ltmarydbeelectricinccomgt McCarty Hannahlthannahmccartylegwagovgt Melissa L Boyles ltmelissaboylesmwbelawcomgt Metcalf KeithltMetcalKwsdotwagovgt michaelicapaawagov Michelle ltMichelleTTCC26netgt MillarRoger ltMillarRwsdotwagovgt Nakamura Jason ltjasonnakamura1-alliancecomgtNavarroLportseattleorg olliepmt-solutionscom pastorbanksesbctacomacom PatrickHughes ltphugheshughesgroupbizgt Petersen Jodi (FHWA) ltJodiPetersendotgovgtrabbottliunaorg rcarmsteadgmailcom ricemportseattleorg Riley D ltdrileylydigcomgtSeling ltSelingjpfranciscomgt sherryharrisergosynchcom Stell MellodyltStellMwsdotwagovgt terigobintulaliptribes-nsngov timwilliamfactorycom tinaterra-tdicom tkellyldccorpcom tomgaetzmsncom vcollinsacec-waorgverlenejazzmsncom Wang Albert ltWangAatgwagovgt Waugh GregltGregWMaxKuneyComgt Yates Henry ltYatesHWSDOTWAGOVgtCc Tom Gaetz lttomgaetzmsncomgt Dave Gent - WAPA ltdavegentasphaltwacomgt VanCollins ltvcollinsacec-waorggt Daniel Seydel II ltdanplatinumbusinessgroupcomgt MaynardJackson ltJacksonMaynardlegwagovgt Carl Livingston ltcarlllivingstongmailcomgt DonMcLeod ltdmcleodnwlaborersorggt JIMMY MATTA ltjimmymattamsncomgt Prince Ed(CAAA) lteprincecaawagovgt David DHondt ltddhondtagcwacomgt Irene Reyesltgloveladyexcelsupplycompanycomgt McDaniel Craig ltMcDaniCwsdotwagovgtsherryharrisergosynchcomSubject WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Good morning On Monday October 30th WSDOT will be releasing the proposed overall Federal HighwayAdministration Disadvantaged Business Enterprise goal attached for public comment throughDecember 15 2017 This overall DBE goal is based upon the recently completely DBE ProgramDisparity Study WSDOT is proposing a 19 percent overall DBE participation goal on Federal Highway

Administration-funded projects for federal fiscal years 2018 through 2020 DBE goals fortransportation projects that receive federal funds represent a percentage of the value of work inwhich minority- and women-owned businesses should participate Once finalized and submitted toFHWA early next year the goal will be effective through Sept 30 2020

The purpose of the DBE program is to create a level playing field for firms owned and operated bydisadvantaged individuals wanting to participate in federally assisted highway transit and aviationprograms The attached overall DBE goal is for FHWA funded projects WSDOT will be updating theFTA and FAA overall DBE goals in the near future

If you have any questions please contact Earl Key Director of the Office of Equal Opportunity at3607057091 or KeyEwsdotwagov Thank you Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

  • Proof-Of-Publicationpdf
    • Mediapdf
      • AGC
      • Daily Journal
      • Daily Medium
      • DBEGood
      • OMWBE
      • Seattle Medium
      • Tabor 100
      • The Chronicle
      • Tukwila
        • King County
          • Public-Comments-20180111pdf
            • 19 DBE Requirement(1)
            • AGC Comments on Proposed 10 Goad
            • Backstrom Curb amp Sidewalk
            • comments on WSDOT proposed DBE goal
            • Cowlitz County Public Works
            • DBE Contracting goals
            • DBE Goal
            • DBE Program Disparity Study
            • Disparity Study Comments from City of Spokane
            • FW_ WSDOT News - WSDOT seeks comments on propos
            • Proposed DBE Goals
            • RE_ DBE Contracting Goal Comments
            • Re_ DBE Goal Comments
            • Re_ Seydel Dan - WSDOT Disparity Study Present
            • Support for WSDOTs proposed DBE goal
            • Why we need mandatory goals
            • WSDOT DBE Goal - Comment in support
            • WSDOT Proposes DBE goal of 19
            • WSDOT propsed DBE Goals
            • WTS - Disparity Study Comment Letter

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aacc~~949lt7BB7lt3726C4ltG3401324ltB7ltj=9

13 $amp()(

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89lt=gtABCDgtEF39=GHIJK1L0M1JLNO1L040K420PJLJLQ0K5R015JKNON70220K445N04S0K10Q4P6N5KNNN0K4022J1TLNUTJ70VP5K1LN145KUJLW5KQU51T1TX0NT5KQ1JK101YZ0L17K1J[CL0KNZJL1015JKXYgtC]0L5KS5141JMJ77K1JK1T0QKMVNZLJZJN4Y5N04S0K10Q4_6N5KNNK1LZL5NY_]QJ02[JL4L02a5QTU0VG475K5N1L015JKMJK1L0M1NbY_QJ02N[JL1L0KNZJL1015JKZLJcM1N1T01LM5S[4L02[6K4NLZLNK10ZLMK10QJ[1TS026J[UJLW5KUT5MT75KJL51Vd0K4UJ7KdJUK4P6N5KNNNNTJ624Z0L15M5Z01bXYgtC5NZLJZJN5KQ0efZLMK1JSL022Y_Z0L15M5Z015JKQJ02JK4L02a5QTU0VG475K5N1L015JKd[6K44ZLJcM1N[JL[4L02[5NM02V0LNghei1TLJ6QTghghbgtKMN6P751141JaXG0L2VKj1V0LO1TQJ02U522P[[M15S1TLJ6QTZ1bkhOghghbCTZ6LZJNJ[1TY_ZLJQL075N1JML0102S2Z20V5KQ[524[JL[5L7NJUK40K4JZL014PV45N04S0K10Q45K45S54602NU0K15KQ1JZ0L15M5Z015K[4L022V0NN5N14T5QTU0VO1L0KN510K40S5015JKZLJQL07NbXYgtCU522TJN10NL5NJ[Z6P25M715KQN1JZLJS54JZZJL16K515N[JL5K45S54602N1JMJ77K15KZLNJKlZJW0KOgHmZb7bJKC6NbOAJSbgi01XYgtC0N1LKQ5JKa04n60L1LNHgoemA30V[05L1bOZJW0Kplt0KMJ6SLOgHmZb7bX4NbOAJSbgf01XYgtClt0KMJ6SLa04n60L1LNHeeheiAqeN1I5LM2Olt0KMJ6SLp0112OgHmZb7bCT6LNbOYMbo01XYgtCAJL1TUN1Q5JKa04n60L1LNHeqohhY0V1JKGSbAOTJL25Kbrstuvwxyz|v|~u|usCTJNUTJ0L6K0P21J011K4JKJ[1T715KQNM0KZ0L15M5Z015K0KJdMJN1UP5K0L[LJ7glkhHmlkhZb7bC6N40VOYMbqbQ5N1L015JK[JL1TUP5K0L5NLn65L4bCTJN5K1LN145KZ0L15M5Z015KQNTJ6247052Y5NZ0L51V164VUN4J1bU0bQJSbXL511KMJ77K1NM0K02NJPN6P75114PV7052JL7052l0MW5_0VKO9J25MVZJL15KQ30K0QLOX0NT5KQ1JK101YZ0L17K1J[CL0KNZJL1015JKOgt[[5MJ[n602gtZZJL16K51VO9bgtb_JjmokemOgt2V7Z50OXGfiqhmdokemJL705241JY5NZ0L51V164VUN4J1bU0bQJSbYJM67K1N410525KQ1T71TJ4J2JQV6N4[JL41L75K5KQ1TaXGY_QJ02N0L0S0520P2[JLLS5U01022XYgtCLQ5JKT04n60L1LNJ[[5MN0K4011TCL0KNZJL1015JK_65245KQOkeh30Z290LWGSbOgt2V7Z50bCTV0L02NJ0S0520P2JK25K01UUUbUN4J1bU0bQJSn602JZZJL16K51VbXYgtCU522MJKN54L022UL511KMJ77K1NLM5S41TLJ6QTL540VOYMbeqOgheob iexclcentpound currenGPJ611TG61TJL G4SL15N7K1N

13

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AringEgraveAacuteEacuteAringcentAEligEcircEumlAcircCcedilIgraveEumlAacuteAacuteAgravecentfrac14frac12IacuteAacuteAgravefrac34AacuteIcircCcediliquestAEligiexclIumlAcircAacuteEumlETHEgraveNtildeOgraveOgraveEcircAacuteAEligIacuteiquestAEligfrac14AacuteAacuteyenAacuteiquestAEligCcedilAumliquestiquestAringiquestAacuteAEligAacuteiquestAEligAringAcircAacuteAtildeAringAtildeEcircAcircCcedilETHAtildeEcircAringiquestiquestAEligCcedilAtildeOacutefrac34Aacutefrac34CcedilAumliquestAEligCcedilAacute EacuteEacuteEacuteOcircOtildeEgraveOumlOcircOumlETHtimesIgravefrac12Agravefrac34AtildeiquestAEligfrac34iquestAtildeAgrave AringIgraveAacuteEgraveAringiquestEcircEumlAcircCcedilEgravefrac12CcediliquestAacute AacuteAgravefrac34AtildeiquestAEligEumliquestiquestAacutefrac34frac34frac34ETHCcedilAacuteAringAacuteiquestAEligCcedilAumlAringOslashCcediliquestAacuteOslashIgraveNtildeNtildeIgraveOgraveETHUgraveOgraveOgravefrac12AgraveAcirc AacuteAgraveCcedilAringiquestAacuteAumlAacuteEcirciquestAEligCcedil iquest iquestAringfrac34AEligAEligAacuteAtildeEcirciquestAEligAacuteCcediliquestAEligiquestiquestAcircfrac34AEligAacuteiquestAEligCcedilAacuteAacuteiquestAumliquestAacuteiquestAElig EcirciquestAacuteAgraveiquestCcedilAgravefrac34EcircEumlAacuteAEligiquestAacuteAEligiquestAacuteiquestAEligCcedilAringCcedil Ecirc AcircAEligAacuteAEligAacuteAacuteiquestAEligUacuteAumlAacuteAEligAacuteAumlAEligAacuteCcedil AacuteAgraveAcirc frac34UcirciquestAEligfrac34AgraveiquestAumlAgraveAringiquestAEligiquestAacuteEcircOcircAEligfrac34AringAEligOcircfrac34AEligAtildeAcirciquestAEligAgraveAcircAacuteiquestAumliquestAacutecentfrac14frac12iquestiquestAEligCcedilOtildeAumlAEligAacuteAacuteiquestAumliquestAacuteiquestAEligCcedil iquestAacuteiquestAEligAringiquestAEligiquestAacuteAacuteiquestAEligUumlYacute AcircAEligUacuteAumlAacuteAEligETHtimesOgraveUgraveAumlAEligAacuteCcedil iexcliquestCcedilAgravefrac34EcircAringiquestAEligiquestAacuteAacuteiquestAEligUumliexclcentYacute 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13

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httpwwwchronlinecomnewswsdot-seeks-public-comment-on-disadvantaged-business-enterprisearticle_f5c753ea-be61-11e7-966c-972f6769d8a6html

WSDOT Seeks Public Comment on Disadvantaged Business Enterprise By The Chronicle Oct 31 2017

The Washington State Department of Transportation will be accepting public comments about the departmentrsquos proposed Disadvantaged Business Enterprise goal for federal contracts

The goal is for transportation projects receiving Federal Highway Administration funds to have 19 percent of the value of work done by minority or women-owned businesses during the 2018 through 2020 fiscal years

ldquoThe purpose of the DBE program is to create a level playing field for firms owned and operated by disadvantaged individuals wanting to participate in federally assisted highway transit and aviation programsrdquo a press release from WSDOT said

A series of public meetings will be held to discuss the goal in Spokane Vancouver and Seattle

For those who are unable to attend the in person meetings a webinar will be hosted from 230 to 430 pm Thursday Dec 5 The webinar is free but registration is required To register email DisparityStudywsdotwagov

Page 1 of 2WSDOT Seeks Public Comment on Disadvantaged Business Enterprise | News | chronlin

1112018httpwwwchronlinecomnewswsdot-seeks-public-comment-on-disadvantaged-business-

Written comments can also be submitted by mail or email to Jackie Bayne policy and reporting manager for the department of transportation at Washington State Department of Transportation Office of Equal Opportunity PO Box 47314 Olympia 98504 or by email at disparitystudywsdotwagov Comments will be considered through Dec 17 2017

More information about the goal is available at all regional offices or at the main office in Olympia located at the Transportation Building 310 Maple Park Ave SE Olympia More information can also be found online at wsdotwagovequalopportunity

Page 2 of 2WSDOT Seeks Public Comment on Disadvantaged Business Enterprise | News | chronlin

1112018httpwwwchronlinecomnewswsdot-seeks-public-comment-on-disadvantaged-business-

larr Halfway there SR 8 fish barrier removal reaches milestone New SR 26 traffic cameras available rarr

WSDOT seeks comments on proposed DBE contracting goal for highway projects

December 1 2017 | No Comments

WSDOT is seeking comments on proposed participation goals for Disadvantaged Business Enterprises on upcoming Federal Highway Administration contracts a Yakima meeting has also been added to the schedule Source WSDOT Permalink WSDOT seeks comments on proposed DBE contracting goal for highway projects

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Page 1 of 3WSDOT seeks comments on proposed DBE contracting goal for highway projects | Tukw

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From Liz EvansTo Bayne JackieSubject AGC Comments on Proposed 10 GoadDate Tuesday December 12 2017 50314 PMAttachments WSDOT Proposed Goal - AGC Comments FINALdocx

Hi there Jackie Attached are AGCrsquos comments on WSDOTs proposed 19 goal We will also be mailing you a copy Thanks for the opportunity to comment and we hope you find it helpful Regards Liz Liz Evans CAE Northern District ManagerAGC OF WASHINGTONTel 3602238757 | wwwagcwacom JOIN US for the 2018 AGC of Washington Annual Convention amp Technology Expo Jan 26

CUsersmwillmsPicturesInland AGCLogo_RGB_Half_5in

December 12 2017

Page 5

December 12 2017

VIA EMAIL amp US MAIL

Ms Jackie Bayne Policy amp Reporting Manager

Washington State Dept of Transportation

210 Maple Park Ave SE

PO Box 47314

Olympia WA 98504

RE WSDOT Proposed FHWA Triennium Disadvantaged Business Enterprise Goal

Dear Ms Bayne

This letter summarizes the views of the Associated General Contractors of Washington and Inland Northwest Associated General Contractorsrsquo (hereafter referred to collectively as AGC) regarding the Washington State Department of Transportationrsquos (WSDOT) recently proposed FHWA Triennium Disadvantaged Business Enterprise (DBE) Goal (the ldquoProposed Goalrdquo) AGC shares WSDOTrsquos commitment to continue the promotion of DBE firms but AGC is concerned the Proposed Goal which is a significant increase from the previous goal and actual utilization may have unintended consequences and could impose significant burdens on both prime contractors and DBE contractors alike AGC requests WSDOT reconsider its Proposed Goal and adjust the Proposed Goal to account for inevitable availability and capability issues including the lack of a formal retraction of the non-minority woman owned business waiver that makes up over half of the Proposed Goal Implementing an unachievable goal will only be to the detriment of the DBE program

1 AGCrsquos Membersrsquo Interest in WSDOTrsquos Proposed Goal

Together AGC of Washington and Inland Northwest AGC represent and serve the commercial industrial and highway construction industry These professional associations of commercial contractors are comprised of more than 900 members who have joined together to enhance the performance of their industry and build a better climate for construction operators many of which are small and closely held businesses

Like WSDOT AGC is firmly committed to the principals of equal opportunity and promoting efforts to ensure minority women and veteran owned businesses are properly represented In both its political advocacy and membership programs AGC has demonstrated its commitment to increasing the representation of disadvantaged groups in the construction industry as both workers and owners of firms For AGC this is both an issue of principles and a practical one The construction industry as a whole is facing a critical shortage of workers and it is imperative that the industry attract new participants Among AGCrsquos activities demonstrating this commitment are the following

middot AGC has an ongoing ldquoContractor Exchangerdquo program through which small minority- and women-owned subcontractors are offered one-on-one networking opportunities with established general contractors

middot The AGC Education Foundation provides financial support to construction-related programs in K-12 schools and conducts outreach specifically targeted at low income disadvantaged and female students

middot More than 2500 students most from inner-city schools participate in annual AGC-sponsored Construction Career Days in King Pierce and Spokane Counties

middot AGC supports the Pre-Apprenticeship Construction Training (PACT) program at Seattle Vocational Institute This program is focused on preparing underrepresented communities to be highly qualified applicants and successful apprentices in the construction trades

middot AGC is a sponsor of the Turner School a training course for minority- and women-business owners in the construction industry

middot AGC supports the National Association of Women in Construction (NAWIC) which provides professional development and other services to its members

middot AGC routinely supports legislative efforts aimed at supporting small businesses and encouraging small business participation

middot AGC recently formed a Diversity and Inclusion Committee comprised of both prime and DBE participants The purposed of the committee is to expand opportunities for DBE members and to help AGC consider diversity in decision-making Recently AGC approved a deeply discounted introductory dues structure for certified DBE members

middot AGC is a WSDOT partner on the new mentorproteacutegeacute program

AGCrsquos experience has been that the most effective approach is to help make emerging businesses successful through outreach training and public policies that will grow their capacitymdashnot by imposing mandates without clear evidence as to the mandates feasibility

2 WSDOTrsquos Proposed Goalrsquos Impacts To The Construction Industry

WSDOTrsquos Proposed Goal is 190 The Proposed Goal is based upon the recent Collete Holt amp Associates (CHA) Disparity Study released in 2017 With respect to availability the Disparity Study reports the following weighted availability for FHWA-Funded projects

Thus the 190 goal factors in Black Hispanic Asian Native American and White Women into its availability As indicated however this 19 goal raises a number of concerns

a WSDOTrsquos 19 Proposed Goal Represents a Significant Increase Without Concrete Evidence of Available And Capable DBE Firms

First WSDOTrsquos Proposal Goal of 190 represents a significant increase as compared to actual DBE participation (141 in 2014 117 in 2015 and 151 in 2016) as well as the last FHWA proposed goal of 116 for 2014-2018 See WSDOTrsquos Proposed Goal and Interim FHWA Overall DBE Goal Methodology FFY 2014-2018 The Proposed Goal is 74 more than the last goal which represents a 638 increase and a 52 increase over the average actual utilization for 2014-2016 While Contractors were exceeding the previous 116 goal this is primarily based on the fact that WSDOT previously requested a waiver to consider non-women-owned businesses and the waiver was not granted and effective until June 2017 (meaning that for 2014-2016 women were counted towards race-conscious goals and inevitably a higher overall percentage of DBE firms were utilized)

Contractors struggle to meet present DBE goals due to the relatively low availability of experienced and certified DBE firms By increasing the goal WSDOT is understandably trying to increase the participation of underrepresented firms Drastically increasing the goals (by over 5 of actual utilization) without concrete evidence that there is sufficient availability andor capability of such firms however will have the opposite effect Notably this lack of availability and capacity of DBE firms was discussed in detail in the Disparity Study For example the CHA Disparity Study notes a number of concerns of DBE firms while technically ldquoavailablerdquo with respect to the goal percentages are unable to meet the requirements necessary to fulfill the contract including purchasing the equipment necessary having available labor and ability to meet insurance and financing requirements Thus while there may be ldquoavailablerdquo firms there is not clear evidence (and if fact evidence to the contrary) that those available firms are capable and available to perform the majority of the FHWA-Funded contracts let by WSDOT

An additional example affecting DBE capability and availability that is not factored into the CHA Disparity Study or WSDOTrsquos Proposed GOAL is DBE ability to enter into Project Labor Agreements (ldquoPLAsrdquo) WSDOT has indicated their interest in pursuing a PLA AGC Members have raised concerns based on repeated experiences that many DBE firms due to the administrative and cost impacts refuse to enter into PLAs precluding those firms from performing certain work or increasing costs Again this lack of ability (or refusal) to perform should also be factored into WSDOTrsquos Proposed Goal which is not currently the case

b The Proposed Goal Does Not Account For The Current Non-Minority Woman Owned Business Waiver Still In Place

Second despite the significant increase WSDOT does not account for the current waiver of non-minority women owned businesses that remains in place As noted in WSDOTrsquos proposal comments WSDOT previously sought and received a waiver of the regulation that White females as a group are presumptively disadvantaged This waiver was heavily criticized by many including AGC and the results of the most recent CHA Disparity Study confirmed that White females are presumptively disadvantaged and do not enjoy a level playing field for USDOT-assisted contracts Therefore the CHA Disparity Study recommends that this group be returned to the status of goal credit eligibility WSDOT has sought a recession of the waiver but has not yet to our knowledge received a rescission of the waiver Nevertheless the 19 Proposed Goal still includes White women In fact of the 19 availability percentage White women represent 103 (over half) Accordingly for WSDOT to proceed with the 19 goal WSDOT must receive the rescission of the waiver for this goal to be even remotely possible to achieve If the rescission is not received the Proposed Goal must be adjusted

C The Proposed Goal Does Not Account For Availability Differences Across The State

Third the Proposed Goal does not account for availability difference across the state Eastern Washington contractors with an even scarcer pool of available and qualified DBE firms in the area as is the case now will be forced to subcontract to Western Washington firms paying transportation and per diem premiums for such work The CHA Disparity Study again provides numerous excerpts of anecdotal evidence demonstrating that the goals in Eastern Washington are too high A few of the contractor comments on the topic are as follows

When you apply those same goals to a different geographic region a different project site for a large firm to meet those goals is difficult because theres not necessarily the expertise in parts of the project that were submitting on

Theres very few DBEs over here [in Eastern Washington] Next year theres going to be even more work over here What are we going to do with all these goals We always meet the goals like I said youve got three four DBEs over here to do all the work and then they cant perform

There are just no [minority-owned] DBEs available in eastern Washington

See CHA Disparity Study at p 54 Again these are factors that should be taken into account in developing the Proposed Goal or at the very least its application WSDOTrsquos Proposed Goal however is silent as to this significant issue

When the lack of available firms with the capacity to perform significant DBE projects is coupled with the increased goals the price of WSDOT contracts will inevitably increase to the significant detriment of Washington taxpayers and the public entities Inevitably with a lack of available qualified firms the lack of competition will become evident and small qualifying contractorsrsquo prices will increase due to supply and demand principles as they become selected for projects and less able to take on additional work These increased DBE contract values will be passed on to the public agency and taxpayers which translates into fewer dollars available for the sorely needed and promised infrastructure upgrades In addition the instance of bid protests will inevitably increase potentially delaying projects and further diverting agency resources from badly needed infrastructure upgrades to resolving unnecessary disputes or rebidding the projects altogether

Finally faced with such drastic and potentially impossible requirements if adjustments are not made contractors may focus more on demonstrating good faith efforts Both a contractor who meets the required goal and a contractor that demonstrates good faith efforts are eligible for award It is likely that the contractor relying upon good faith effortsmdashwho will have a lower price than the other contractor who sacrificed price to actually meet the goalmdashwill be selected by the public agency This outcome will erode the total percentage participation of eligible firms and would clearly be inapposite of WSDOTrsquos intentions

3 Conclusion and Request

AGCrsquos members have asserted these and multiple other concerns Implementing an increased goal across the state and all contracts without clear evidence of available DBEs capable of performing the work and meeting the project requirements will have significant and far-reaching impacts on the construction industry many of which work against the aim of the Proposed Goal itself AGC requests WSDOT reconsider its Proposed Goal of 19 and make adjustments to account for the capability of DBE firms the lack of a rescission of the non-minority waiver and the lack of available DBE firms in parts of the state This Proposed Goal and its impacts on the construction industry will be irrevocable and will be to the detriment of taxpayers It is prudent to address these adjustments before implementing the Proposed Goal

Very truly yours

David DrsquoHondtCheryl Stewart Executive Vice President AGC of WashingtonExecutive Director Inland Northwest AGC

AGC of Washington bull 410 11th Avenue SE 203 Olympia WA 98501

Inland Northwest AGC bull 4935 E Trent Avenue Spokane WA 99212

image3jpeg

image1png

image2emf

image4png

image5jpeg

From Steve SmithTo WSDOT Disparity StudyCc Bayne JackieSubject 19 DBE RequirementDate Thursday December 14 2017 31947 PMAttachments DBE List and NAICS Listingpdf

Disparity Committee I recently read in The Daily Journal of Commerce that WSDOT plans to adopt a 19 DBEstandard for all FHWA funded projects early next year Our company S amp K Painting Inc is abridge painting company which is based in and works exclusively in Oregon and Washington Ihave been the owner of this firm since 1978 when it was first established My concerns aboutthe proposed 19 DBE requirement is as follows 1 There are very few opportunities for subcontract work on bridge repaint jobs These jobsare usually limited to cleaning and painting the bridge The only other facet of the project istraffic control which is almost always 3 or less of the project total cost The traffic controldoes provide a very good subcontracting opportunity 2 The NAISC code of 238320 includes bridge painting but also includes house painting wallcovering rust proofing etc which have almost no similarities to bridge painting When thiscode is used to determine the number of available firms (DBE or otherwise) that are availablefor bridge painting project this badly skews the numbers I would suggest that bridge paintingcontractors make up less than 5 of all firms in NAISC code 238320 3 If future WSDOT bridge painting projects require a 19 DBE participation A The qualified pool of DBE subcontractors available to submit pricing on any facetother than traffic control will be very limited I reviewed a list of 19 certified DBE firms listedunder painting at the WSDOT website and only recognized one firm from past projects B The number of prime bidders and competition will fall The state will incur highercosts due to this fact C Prime bidders will be forced to subcontract unqualified contractors just to be eligiblefor contract awards This will likely reduce the quality of the finished project Thank you for considering my concerns I may not have verbalized my thoughts as well as Iwould have liked but I have been in this business for almost 40 years and truly believe what Ihave said Sincerely

Steve Smith President

SampK Painting incP O BOx 390clacKamaS OregOn 97015Phone (503) 557-5544Fax (503) 557-5566Cell (503) 260-5280Steveskpaintingcom

From Lei WuTo Bayne JackieSubject comments on WSDOT proposed DBE goalDate Thursday December 14 2017 94925 PM

To Whom It May Concern

Below is my comments

The WSDOT recommended DBE Goal for FHWA contracts of 190 is a small andimportant increase that can further achieve equity in WSDOTFHWA contracting I am insupport of the 19 DBE Goal

I also want to express my appreciation for the thoroughness of the WSDOT Disparity studyand how the study disclosed the disparity in WSDOT contracts that do not have a DBE orWBE goal ndash further reinforcing that all women-owned firms and minority owned firms faceequity issues

I remain concerned with the methodology required by the Code of Federal Regulations andcase law because of the dependence on the availability of firms in the calculation Anunintended consequence of removing either gender or race from the goal is that many of thesefirms would go out of business the availability decreases and the formula then results in asmaller DBE goal

Thanks

Lei

Lei Wu PE AICP

Principal CSL Consulting

LeiWucsl-consultingnet

(425)562-6275

From Stephanie SimpkinsTo WSDOT Disparity StudySubject DBE Contracting goalsDate Wednesday November 29 2017 20259 PM

My name is Stephanie Simpkins and I own North Star Enterprises It is a large womanowned traffic control company located in Spokane Washington My mother founded thecompany in 1984 and I have worked in this family owned business most of my life Ipurchased the business from her in 2013 and have been sole owner since then My company thrived under the Disadvantaged Business Enterprise (DBE) Programimplemented by Washington Department of Transportation and administrated by United StatesDepartment of Transportation What started as a small business with one truck and a fewemployees has grown over the years to be one of the largest traffic control companies in thestate and employee countless people every construction season It has not been an easy roadover the years being a woman in the construction industry never is and it is hard to say wherewe would be now if it werenrsquot for the assistance of the DBE program As you know in June of 2017 majority women were removed from the DBE program basedon a disparity study conducted in 2012 On March 2014 Washington Department ofTransportation requested a wavier to remove majority women from the DBE program Thishas had an immediate and drastic impact on my business and all who work for me From themoment the waiver was approved and my company could no longer be used as a condition ofaward at bid time I began losing work Most recently the 2018 North Central Region ChipSeal which we have worked on for the last 10 years This contract provides work forapproximately 40 employees for the entire construction season I have already been told byseveral contractors that with such a high UDBE goal they wont even be able to consider mefor this project This loss along with several other smaller contracts to date are painting avery dismal future for my business With all of this turmoil surrounding the future of my business I find it frustrating to say theleast that WSDOT has chopped me off at the legs by not allowing my firm to count for theCOA but can use the little participation I may still contribute to help them reach their overallstate goal How is this fair If the contractors canrsquot utilize my business than neither shouldWSDOT As far as setting future state DBE contracting goals it looks as if the bar will beraised once again all while excluding the largest subset of useable DBErdquoS To me raising theoverall state goal at this time (which is already challenging to meet) with women DBErsquosexcluded from the program seems horribly ill timed

From Karen R BannishTo Bayne JackieSubject DBE GoalDate Tuesday December 5 2017 32549 PM

Hello Jackie ndash thank you for the webinar today concerning the proposed Overall DisadvantagedBusiness Enterprise Goal for the Federal Highway Administration I understanding the DisparityStudy much better now and checked the document you mentioned on the WSDOT website Pacific County is located in the Southwest corner of the State of Washington The tip of the LongBeach Peninsula would be 2 frac12 hours from Interstate 5 Our federal work primarily includes strictlyoverlay projects with 12 or fewer items of work included in the contract When bidding a project(our contracts are usually less than $500000) we sometimes received a single bid from the process Due to our proximity and the small cost for the work it is difficult to entice DBE participation Thereare simply no items of work that can be performed Having a mandatory DBE goal placed upon theproject in a rural area simply to meet the disparity guidelines will only increase the cost of theproject We feel the goals should be set in balance with the cost of the project and the items of work and notsimply directed to meet the overall goal

Karen BannishSenior Engineering TechnicianPacific County Department of Public Works211 North Commercial StreetRaymond WA 98577(360) 875-9368

From Dawn EgbertTo Bayne JackieSubject DBE Program Disparity StudyDate Tuesday December 5 2017 23825 PM

Hi JackieThank you for the great information on the call today You talked about the small works rosterbriefly We had a conversation in our office today about small contractors who are signed up on thePort of Vancouverrsquos small works roster Our team has had opportunity to talk to some of thecompanies on our roster who are women owned or minority owned businesses but they arenrsquotsigned up as a DBE firm When asked about that theyrsquove mentioned that they donrsquot want to fill outthe additional paperwork required to obtain the certification as a DBE As for the DBE goal at 19 it doesnrsquot seem to present an issue for the majority of our projects ndashespecially those where we would apply FHWA funds if granted However if we did happen to have aproject that didnrsquot include classifications of work where DBE certified participants are availablewould there still be an exception or a good faith efforts clause Thanks again for your time Dawn EgbertProcurement Services Manager3103 NW Lower River Road Vancouver WA 98660Direct 3609921102 | Cell 360448-9867 | Main 3606933611 | Fax 360735-1565degbertportvanusacom | wwwportvanusacom | available port properties Leadership | Stewardship | Partnership

From Feist MarleneTo WSDOT Disparity StudyCc Simmons Scott M Twohig KyleSubject Disparity Study Comments from City of SpokaneDate Friday December 15 2017 52226 PMAttachments image010png

image011pngimage012png

December 15 2017 Jackie BaynePolicy amp Reporting ManagerOffice of Equal OpportunityWashington State Department of TransportationPO Box 47314Olympia WA 98504-7314 RE Proposed DBE Contracting Goal for Highway Projects Dear Ms Bayne The City of Spokane would like to provide comments related to proposed DisadvantagedBusiness Enterprise Goal for Federal Highway Administration (FHWA) contracts by theWashington State Department of Transportation (WSDOT) Office of Equal Opportunity Manyof our projects receive funding from FHWA and as such the proposed new goals areapplicable to City work The City is supportive of the programrsquos purposemdashldquoto create a level playing field for firmsowned and operated by disadvantaged individuals wanting to participate in federally assistedhighway transit or aviation programsrdquo However the City is concerned about the ability to achieve the proposed utilization rate of upto 19 percent for DBEs in Eastern Washington considering the low number of DBEs in ourregion and the record construction under way in the City and in our region WSDOTrsquos DBE Program Disparity Study notes ldquoContractors in Eastern Washington repeatedlyreported that the goals on projects in their area are too highrdquo The Inland NorthwestAssociated General Contractors group notes that only about 12 DBEs in construction fields areavailable in the greater Spokane area Meanwhile the City has performed record construction in each of the last three years withproject totals hovering around $100 million Our City work has been bolstered by anaggressive program to improve water quality in the Spokane River Our local school districtsand our neighboring jurisdictions also have aggressive construction programs right now

Additionally we expect WSDOTrsquos work in this region to accelerate as North Spokane Corridor(NSC) construction proceeds At times our area is reaching the limits overall of our contractingcommunity the City has worked to release its projects in the first quarter of the year as muchas possible to lock in contractors and receive better pricing The capacity of existing DBEs in our region simply cannot meet that current high demand Some DBE firms are tempted to agree to more work in these times but we have found that insome cases DBEs have stretched themselves too thin On two recent City projects generalcontractors were unable to meet DBE goals as a result of DBE firms that couldnrsquot fulfill theircommitments for providing personnel or equipment It also seems implausible to expect DBEs from the West Side to mobilize teams to work on Cityof Spokane projects in large numbers In fact the Disparity Studyrsquos author responded at arecent meeting on this topic that a DBE from the West Side only very rarely completes workon the East Side of the state We would also be concerned about moving the good-paying jobs that construction providesoutside of our region The Cityrsquos median household income is $44350 considerably lower than theState of Washington MHI of $64129 and the Seattle MHI of $77351 Our leaders are working tocreate good-paying jobs for our citizens not export them to an already wealthier part of the state Additionally these projects are also funded with local dollars and our citizens expect their money toput their neighbors to work With the above considered the City is seeking

middot DBE goals for the 2018-2020 compliance period for Eastern Washington that arereflective of the current availability of DBE firms in our region

middot The re-inclusion of non-minority women owned DBEs in achieving DBE goals InSpokane non-minority women owned DBEs make up the majority of the availableDBEs And current information shows that women in Spokane overall still lag behindmen in opportunities and wages The Cityrsquos own ldquoGender and Racial Equityrdquo reportfrom 2016 noted that overall working women earned 783 percent of the earnings ofworking men in 2014 down from 827 percent in 2009 We need to lift up all women

middot The development of WSDOT programs to encourage the growth of existing andnew DBEs who can be used on street and highway projects We are encouraged by theproposed mentorproteacutegeacute program to increase the number and capacity of DBEs inEastern Washington Programs that address other barriers such as assistance withcompleting documentation or access to bonding capacity also could aid growth ofDBEs

middot The ability for WSDOT to adjust goals on a project if a selected DBE is unable tocomplete its commitments on a project This would help enable our contractors totake a chance on a new or inexperienced DBE to complete work

middot Recognition of local programs that strive to increase diversity in the work force Forexample the City operates a robust apprenticeship program that requires 15 percentof the labor hours on public works jobs greater than $600000 to be performed byapprentices The apprentice programs in our region are stepping up recruitmentefforts and are specifically seeking to recruit more youth women and minorities intoapprentice slots

As we seek to achieve the goal of increasing participation in street and highway constructionby companies owned by disadvantaged individuals we must also acknowledge that businessdevelopment and growth happens over time We must lay the groundwork now to build abase of DBEs that can help us achieve higher utilization goals over time Sincerely Marlene FeistDirector of Strategic DevelopmentPublic Works amp UtilitiesCity of Spokane

Marlene Feist | City of Spokane | Public Works Director of Strategic Development5096256505 | cell 5097109214 | mfeistspokanecityorg | spokanecityorg

From Hall MattTo WSDOT Disparity StudySubject FW WSDOT News - WSDOT seeks comments on proposed DBE contracting goal for highway projectsDate Friday December 15 2017 11956 PMAttachments WSDOT proposed DBE goal through 2020pdf

From Hall Matt Sent Friday December 15 2017 117 PMTo BayneJwsdotwagovCc Keniston Rick (KenistRwsdotwagov) MolyneKwsdotwagov SusanWilsonclarkwagovSubject WSDOT News - WSDOT seeks comments on proposed DBE contracting goal for highwayprojects Hello Jackie Please see our comments attached regarding the WSDOT proposed DBE goals Thanks for the opportunity to provide comments Matt HallClark County Public Works Washington State Department of Transportation ndash NEWSHeadquarters ndash 310 Maple Park Avenue SE ndash Olympia WA 98504-7314 ndash 360 705-7000 FOR IMMEDIATE RELEASEOct 30 2017 Contact Jackie Bayne Office of Equal Opportunity 360 705-7084

WSDOT seeks comments on proposed DBEcontracting goal for highway projectsComments accepted through Dec 15OLYMPIA ndash Contractors trade and labor organizations small and disadvantaged businessesand all others who may be interested in working with the Washington State Department ofTransportation are invited to comment on the agencyrsquos proposed Disadvantaged BusinessEnterprise goal for Federal Highway Administration contractsDBE goals for transportation projects that receive federal funds represent a percentage of thevalue of work in which minority- and women-owned businesses should participate WSDOTis proposing a 19 percent overall DBE participation goal on Federal Highway Administration-funded projects for federal fiscal years 2018 through 2020Once submitted to FHWA early next year the goal will be effective through Sept 30 2020The purpose of the DBE program is to create a level playing field for firms owned andoperated by disadvantaged individuals wanting to participate in federally assisted highwaytransit and aviation programsConnecting with communitiesWSDOT will host a series of public meetings to provide opportunities for individuals tocomment in person

Spokane

2 ndash 4 pm Tuesday Nov 28WSDOT Eastern Region Headquarters2714 N Mayfair St Spokane

Vancouver

2 ndash 4 pm Wednesday Nov 29WSDOT Vancouver Headquarters11018 NE 51st Circle Vancouver

Seattle

2 ndash 4 pm Thursday Dec 7WSDOT Northwest Region Headquarters15700 Dayton Ave N Shoreline

Other ways to provide commentThose who are unable to attend one of the meetings can participate in a no-cost webinar from230 ndash 430 pm Tuesday Dec 5 Registration for the webinar is required Those interested inparticipating should email DisparityStudywsdotwagovWritten comments can also be submitted by mail or emailJackie Bayne Policy amp Reporting ManagerWashington State Department of TransportationOffice of Equal OpportunityPO Box 47314Olympia WA 98504-7314DisparityStudywsdotwagovDocuments detailing the methodology used for determining the FHWA DBE goals areavailable for review at all WSDOT region headquarters offices and at the TransportationBuilding 310 Maple Park Ave SE Olympia They are also available online atwwwwsdotwagovequalopportunityWSDOT will consider all written comments received through Friday Dec 15 2017 Hyperlinks within this release

WSDOT Region offices wwwwsdotwagovContactofficelocationhtmregion

WSDOT keeps people businesses and the economy moving by operating and improving the statestransportation systems To learn more about what were doing go to wwwwsdotwagovnews forpictures videos news and blogs Real time traffic information is available at wwwwsdotcomtraffic or bydialing 511 Americans with Disabilities Act (ADA) InformationAccommodation requests for people with disabilities can be made by contacting the WSDOTDiversityADA Affairs team at wsdotadawsdotwagov or by calling toll-free 855-362-4ADA (4232)Persons who are deaf or hard of hearing may make a request by calling the Washington State Relay at711 Title VI Statement to Public It is WSDOTrsquos policy to assure that no person shall on the grounds ofrace color national origin or sex as provided by Title VI of the Civil Rights Act of 1964 be excluded fromparticipation in be denied the benefits of or be otherwise discriminated against under any of its federallyfunded programs and activities Any person who believes his or her Title VI protection has been violatedmay file a complaint with WSDOTrsquos Office of Equal Opportunity For additional information regarding Title

VI complaint procedures andor information regarding our non-discrimination obligations please contactOEOrsquos Title VI Coordinator at 360-705-7090 To unsubscribe to WSDOT media releases please reply and type REMOVE in the subject line

This e-mail and related attachments and any response may be subject to public disclosure under state law

From Cochrane EmilieTo WSDOT Disparity StudyCc Eugenis Susan Cowlitz Co Public Works - Brad BastinSubject Proposed DBE GoalsDate Thursday December 14 2017 85006 AMAttachments image002png

DBE Goals - Commentspdf

Please see the attached letter with comments regarding the proposed DBE Goals Ahard copy will be sent out today

Thanks

Emilie CochraneCowlitz County Public Works1600 ndash 13th Avenue SKelso WA 98626360-577-3030 ext 6523

From Michelle WolcottTo Bayne JackieCc Robideau Christopher LSubject RE DBE Contracting Goal CommentsDate Tuesday November 7 2017 65448 AMAttachments image001png

Thank you JackieWhat a relief to know that we have been heard and are not the only small business facing thisstruggle Your email is comforting

Yes you can provide us with additional assistanceLet me introduce my boss and Senior Vice President of Red Plains Professional Chris Robideau

Chris will be your contact from here since I will be leaving the company November 17th As a WA DBE we are ldquoeligible for limited DBE Support Services (SS) funding when funds becomeavailablerdquo When will this happen And are we registered or on a list to receive fundingIs the WSDOT ICR Training a prerequisite for the funding Or just helpful knowledge

Thank you for your time Jackie I will follow through with the training

Michelle Wolcott EIT Quality Control Engineer

2103 NE 129th Street Suite 201 Vancouver WA 98686 Office (360) 448-7999 Fax (360) 258-0274

wwwred-plainscom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Monday November 6 2017 332 PMTo Michelle Wolcott ltMichelleWolcottred-plainscomgtSubject RE DBE Contracting Goal Comments

Hi Michelle

Thank you for your interest in doing business with WSDOT I apologize for the lack of informationyou have come up against in your attempts to attain access to WSDOT ICR program

As you may well know WSDOT has recently completed a state wide agency specific diversity studyAnecdotal comments submitted with the study concur with your experience Not only did somerespondents find it difficult to become prequalified they also commented that the required indirectrate of 110 percent is too low to be profitable These requirements are currently under advisementby WSDOT and new DBE program requirements are currently in the process of seeking public input

As you are an OMWBE certified DBE in Washington State you will be eligible for limited DBE SupportServices (SS) funding when these funds become available At that time funds may become availableto assist you in your struggle to attain ICR eligibility Here is a link to WSDOTrsquos Indirect Cost RateTraining httpswwwwsdotwagovAuditICRTraininghtm If you would like me to find additionaltraining or information please let me know

If I can provide additional assistance of information please let me know

Best Regards

Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Michelle Wolcott [mailtoMichelleWolcottred-plainscom] Sent Tuesday October 31 2017 835 AMTo WSDOT Disparity Study ltDisparityStudyWSDOTWAGOVgtSubject DBE Contracting Goal Comments

HelloI have been in contact with WSDOT for 6 months sharing my disparaging story of beinga small DBE unable to submit SOQs for projects requiring a WSDOT Audited IndirectCost Rate Approval We do not have an in-house accountant and our outsideaccountant has explained to get all the paperwork together for WSDOT would take 40hours of work $9000 annually We cannot justify this cost to submit on a project thatwe may not acquire We have been directed to seek financial assistance from WSDOT Federal SBA andWashington State Office for Women and Minority Owned Enterprises all of whichprovided negative responses

As a DBE business in 11 states we are supporting the 19 incentive for federallyfunded contracts but we are frustrated in the fact that we will not be one of the luckyfew to participateWe have been in business 20 years From our Vancouver Washington office our clientsare the Native American tribes across the country with all contracts federally funded This summer alone the WSDOT ICR Approval has squashed our ability to submit on twoprojects that we were perfectly qualified to performI have attached previous emails to show a sample of who I have been dealing with

Thank you

Michelle Wolcott EIT Quality Control Engineer

ltimage001pnggt

2103 NE 129th Street Suite 201 Vancouver WA 98686 Office (360) 448-7999 Fax (360) 258-0274 wwwred-plainscom

From Michelle Wolcott Sent Monday July 10 2017 954 AMTo Harvey Schatzie ltHarveySwsdotwagovgtSubject RE WSDOT Indirect Cost Rate Process

Good Morning Schatzie

This is Michelle Wolcott from Red We spoke Friday June 30th about the ICRprocess and you were very encouraging I relayed the information to my boss who ishere in Vancouver then he shared with the president bookkeeper and our accountantin Oklahoma We had FAR compliance with Oklahoma DOT in 2015 so we are noteligible for the Safe Harbor Program Our account said our timekeeping system doesnot breakdown the hours and pay in the format WSDOT wants to have it presented andto get the documents in order would take the CPA and an assistant $9000 in paidhours of work It turns out this would have to be annually The other option is to hirean outside CPA firm to do the audit for us at $20000 annually

Our president said in the past we received funding assistance from the Stateof Oklahoma to get our ICR approval Does WSDOT offer any financial assistance for small businesses to reach compliance We are also a DBE in WA I have requested the same information from WA PTAC at theVancouver Chamber of Commerce and from WA Office of Minority and Women OwnedBusiness Enterprises and they both said there was nothing but suggested to askWSDOTThank you for your helpMichelle Wolcott EIT

Hello Michelle sorry but I am not aware of any grants But I was looking at this andthere is a POC at the bottom you may try to discuss the audit issuesHollyHolly BoehmeBusiness Opportunity Specialist | 8(a) Business Development ProgramUS Small Business Administration bull Seattle District Office

Hello Michelle -

Thank you for your email Im not aware of any funding available for thispurpose but do agree its quite a bit for a DBE firm to have as an expense Mostof the firms I work with do a lot more work on the Oregon side so perhaps thereare programs available that I just havent heard of Im copying my colleagueHoly Boehme in our Seattle District Office to see if they are aware of any suchassistance

Holly might there be some small business incubators or other resources availablein WA to help a small firm with the expense of getting a WSDOT AuditedIndirect Cost Rate approval Please reply all with anything you may have

Thank you

Yuri Yoshida Dyson Business Opportunity SpecialistUS SMALL BUSINESS ADMINISTRATION Portland District OfficePhone 503-326-6692 Fax 202-292-3872 wwwsbagovor

From Troy HalbergTo Bayne JackieSubject Re DBE Goal CommentsDate Wednesday December 13 2017 35533 PM

JackieToday was another example of why the goals should not be raised There were 2 jobs which Iwas low on and did not get due to the high goals This is exactly what will happen when thegoals get raised The first job was the 9180 Anacortes Ferry Paving Northeast Electric $244924 and UDBE $318000 Second job was the 9172 SR 9 East Junction Job Northeast Electric $68503 and UDBE $76300

Does this seem like a good way to spend the tax payer money I do not see how we are tosurvive if the goals get to 21

Thanks

Troy HalbergOffice360-225-7004Cell360-931-3990Fax360-225-7001

On Thu Nov 30 2017 at 1131 AM Bayne Jackie ltBayneJwsdotwagovgt wrote

Good Morning Troy

Thank you for taking the time to provide us with your experiences with the DBE Program TheWashington State Department of Transportation takes the public involvement process veryseriously and your comments will be taken into consideration prior to a final decision regardingthe overall DBE program goal

If I can be of further assistance please let me know

Best Regards

Jackie Bayne

Policy and Reporting Manager

WSDOT Office of Equal Opportunity

Work (360) 705-7084

Cell (360) 338-5783

BayneJwsdotwagov

From Troy Halberg [mailtotroyhnellcnet] Sent Wednesday November 29 2017 144 PMTo WSDOT Disparity Study ltDisparityStudyWSDOTWAGOVgtSubject DBE Goal Comments

If these goals are to be set that high this would make us as a non DBE small contractor at amajor disadvantage With these high of goals this is like handing all of the DBE electricalcontractors every job These general contractors will have no option but to use thembecause of the goals This should not go into effect We have been low on several jobs in thepast and have not gotten them do to the goals being 18 When this goes on it puts all therest of us contractors at a disadvantage Please consider the smaller non DBE contractorsthat are looking to survive as well

Thanks

Troy Halberg

Office360-225-7004

Cell360-931-3990

Fax360-225-7001

From Daniel Seydel IITo Bayne JackieCc Key Earl daneiwashingtonorg Nadeem Ismail Mussie Tewelde (mteweldehydro2geotechcom)

graceflyrightaolcom Mary Wenner Watkinson LarrySubject Re Seydel Dan - WSDOT Disparity Study Presentation Public TestimonyDate Friday December 8 2017 30323 PM

Jackie

It was my hope that the comments would be put into record I was also hoping that you wouldnot have to be the one having to formulate responses for each clarification If that is the caseI know you are swamped and will then I just ask my comments be only part of the recordHowever if there is dedicated staff that is going to be compiling and responding to theclarification then the below questions would be the priorities of most interest

These were questions unrelated to the disparity study and hopefully should be doable

1) Do you have any reports on your outcomes from the past 5 years on DBE support servicesand specific key performance measures from previous years funding (ie how many firmsutilized what was the objectives were objectives met did outcomes meet total satisfaction ifnot why next steps what was the firms capacity before and after services were performed (iesales employees bonding if applicable insurance equipment line of credit if applicablenumbertype of customers how are they doing now etc))

2) What other changes or improvements other than allowing DBES to select their own serviceproviders and a staff change will be a part of this new program

3) Was consideration to provide the new mentor protege consultant rather than separating theactivities into support services andor technical assistance

Disparity study clarifications

1) Will WSDOT consider sponsoring legislation to support the policy changes and goalincreases to insure manditory goals wont be necessary

a) If not what measures will you grant primes to operate outside the box (ie entertain bestvalue over low bid modify responsiveness by subs to require adherence to meeting voluntarygoals developing standards around federally funded gccm and other low bid procurementsthat give powers to primes to meet objectives including but not limited to mentor protegerelationships joint ventures bond waiving techniques cash flow assistance material andequipment acquisition manufacturer development specifications that have only DBES orinclude equal number of DBES as non DBES as approved installers etc)

2) Will the disparity study consultant be available for implementation or information gatheringfrom other regions

5) Will WSDOT be hiring more diverse staff amp professionaltechnical service providers inother departments outside OEO to insure policies commitments and evaluations areperformed in manner that improves diversity that reflects the communities WSDOT serves bythoughtful and legal efforts increase participation thus creating successful outcomes includingpartnerships and collaborations

Thank you and Merry Christmas

Hi Dan

Thank you for providing such thoughtful public comments questions and testimony

Regarding your public testimony below - I do not believe I am not able to answer questions ifthey are public comments Please let me know what part of this email you would likeclarification on and what part you would like considered public testimony

I appreciate your thoughtful consideration of WSDOTrsquos implementation of our civil rightsprograms

Best Regards

Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

DIDaniel Seydel IIFyi Daniel J Seydel II Platinum Group LLC 2064060844 f) 2062999934wwwplatinumbusinessgroupcom Small Business is the Answer FREE TRAINING FORENTREPRENEURS amp JOB SEEKERS - Polish your skills or make your firm standout thanksto the EntrepreneurialThu 233pDI

Daniel Seydel IIThu 1272017 1123 AMInbox Sent ItemsShow all 7 recipientsTobaynejwsdotwagov ltBayneJwsdotwagovgtJackie

Per your request below are my questions and comments some of which were verbally sharedyesterday

Congratulations on receiving the blessing of additional technical assistance dollars andcompleting the DBE Disparity Study per your report

1) Do you have any reports on your outcomes from the past 5 years on DBE support servicesand specific key performance measures from previous years funding (ie how many firmsutilized what was the objectives were objectives met did outcomes meet total satisfaction ifnot why next steps what was the firms capacity before and after services were performed (ie

sales employees bonding if applicable insurance equipment line of credit if applicablenumbertype of customers how are they doing now etc))

2) What other changes or improvements other than allowing DBES to select their own serviceproviders and a staff change will be a part of this new program

3) Was consideration to provide the new mentor protege consultant rather than separating theactivities into support services andor technical assistance

Disparity study clarifications andor comments

1) Will WSDOT consider sponsoring legislation to support the policy changes and goalincreases to insure manditory goals wont be necessary

a) If not what measures will you grant primes to operate outside the box (ie entertain bestvalue over low bid modify responsiveness by subs to require adherence to meeting voluntarygoals developing standards around federally funded gccm and other low bid procurementsthat give powers to primes to meet objectives including but not limited to mentor protegerelationships joint ventures bond waiving techniques cash flow assistance material andequipment acquisition manufacturer development specifications that have only DBES orinclude equal number of DBES as non DBES as approved installers etc)

2) Will the disparity study consultant be available for implementation or information gatheringfrom other regions

3) What lessons did WSDOT learn that it did not know from the other study(s)

4) What would WSDOT do different (ie scope time line process approach etc)

5) Will WSDOT be hiring more diverse staff amp professionaltechnical service providers inother departments outside OEO to insure policies commitments and evaluations areperformed in manner that improves diversity that reflects the communities WSDOT serves bythoughtful and legal efforts increase participation thus creating successful outcomes includingpartnerships and collaborations

Daniel J Seydel IIPlatinum Group LLC 2064060844f) 2062999934wwwplatinumbusinessgroupcom

Small Business is the Answer

FREE TRAINING FOR ENTREPRENEURS amp JOB SEEKERS - Polish your skills or makeyour firm standout thanks to the Entrepreneurial Institute of Washington

httpswwwyoutubecomchannelUCKL5YeVxL29HnNxqnb6hmXA

LIKE US on FaceBook if an Active Professional Development workshop provided by EIW

Construction University helps your firm or has benefited you

httpswwwfacebookcomEIWashingtonref=hl

From Bayne Jackie ltBayneJwsdotwagovgtSent Friday December 8 2017 10139 PMTo Daniel Seydel IICc Key Earl daneiwashingtonorg Nadeem Ismail Mussie Tewelde(mteweldehydro2geotechcom) graceflyrightaolcom Mary Wenner Watkinson LarrySubject RE Seydel Dan - WSDOT Disparity Study Presentation Public Testimony Hi Dan Thank you for providing such thoughtful public comments questions and testimony Regarding your public testimony below - I do not believe I am not able to answer questions if theyare public comments Please let me know what part of this email you would like clarification on andwhat part you would like considered public testimony I appreciate your thoughtful consideration of WSDOTrsquos implementation of our civil rights programs Best Regards Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov From Daniel Seydel II [mailtodanplatinumbusinessgroupcom] Sent Thursday December 7 2017 1123 AMTo Bayne Jackie ltBayneJwsdotwagovgtCc Key Earl ltKeyEwsdotwagovgt daneiwashingtonorg Nadeem Ismailltnipaintingearthlinknetgt Mussie Tewelde (mteweldehydro2geotechcom)ltmteweldehydro2geotechcomgt graceflyrightaolcom Mary Wennerltmwenn0108yahoocomgtSubject Seydel Dan - WSDOT Disparity Study Presentation Public Testimony Jackie

Per your request below are my questions and comments some of which were verbally sharedyesterday

Congratulations on receiving the blessing of additional technical assistance dollars andcompleting the DBE Disparity Study per your report

1) Do you have any reports on your outcomes from the past 5 years on DBE support servicesand specific key performance measures from previous years funding (ie how many firmsutilized what was the objectives were objectives met did outcomes meet total satisfaction ifnot why next steps what was the firms capacity before and after services were performed (iesales employees bonding if applicable insurance equipment line of credit if applicablenumbertype of customers how are they doing now etc))

2) What other changes or improvements other than allowing DBES to select their own serviceproviders and a staff change will be a part of this new program

3) Was consideration to provide the new mentor protege consultant rather than separating theactivities into support services andor technical assistance

Disparity study clarifications andor comments

1) Will WSDOT consider sponsoring legislation to support the policy changes and goalincreases to insure manditory goals wont be necessary

a) If not what measures will you grant primes to operate outside the box (ie entertain bestvalue over low bid modify responsiveness by subs to require adherence to meeting voluntarygoals developing standards around federally funded gccm and other low bid procurementsthat give powers to primes to meet objectives including but not limited to mentor protegerelationships joint ventures bond waiving techniques cash flow assistance material andequipment acquisition manufacturer development specifications that have only DBES orinclude equal number of DBES as non DBES as approved installers etc)

2) Will the disparity study consultant be available for implementation or information gatheringfrom other regions

3) What lessons did WSDOT learn that it did not know from the other study(s)

4) What would WSDOT do different (ie scope time line process approach etc)

5) Will WSDOT be hiring more diverse staff amp professionaltechnical service providers inother departments outside OEO to insure policies commitments and evaluations areperformed in manner that improves diversity that reflects the communities WSDOT serves bythoughtful and legal efforts increase participation thus creating successful outcomes includingpartnerships and collaborations

Thank you for your hard work

Daniel J Seydel IIPlatinum Group LLC2064060844f) 2062999934wwwplatinumbusinessgroupcom

Small Business is the Answer

FREE TRAINING FOR ENTREPRENEURS amp JOB SEEKERS - Polish your skills or makeyour firm standout thanks to the Entrepreneurial Institute of Washington

httpswwwyoutubecomchannelUCKL5YeVxL29HnNxqnb6hmXA

LIKE US on FaceBook if an Active Professional Development workshop provided by EIWConstruction University helps your firm or has benefited you

httpswwwfacebookcomEIWashingtonref=hl

From Erin EhlingerTo Bayne JackieSubject Support for WSDOTs proposed DBE goalDate Wednesday December 13 2017 115417 AM

I am writing to support the WSDOT recommended DBE Goal for FHWA contracts of 190 I also want to express my appreciation for the thoroughness of the WSDOT Disparity study and howthe study disclosed the disparity in WSDOT contracts that do not have a DBE or WBE goal ndash furtherreinforcing that all women-owned firms and minority owned firms face equity issues I remain concerned with the methodology required by the Code of Federal Regulations and case lawbecause of the dependence on the availability of firms in the calculation An unintendedconsequence of removing either gender or race from the goal is that many of these firms would goout of business the availability decreases and the formula then results in a smaller DBE goal Pleaselet me know how I can help influence a change to the CFR Thank you Erin Ehlinger

Erin Ehlinger PEPresident

24036 SE 47th StSammamish WA 98029erinehlingersmartcitytrafficcom425-221-0320

From Jackie EtterTo WSDOT Disparity StudySubject Why we need mandatory goalsDate Friday December 1 2017 61859 PM

As a DBE participating in bidding process I have found that regardless of the language which claims to insurethat disadvantaged business enterprises shall not be discriminated against the only way to ensure that this does nothappen is by mandating affirmative action goals Having been overlooked time and time again because of my gender when I have submitted bids that are verycompetitive with other bidders is very frustrating I have had many instances of companies using my price to getmy non DBE competitors to lower theirs The voluntary or laudatory DBE goals do nothing to ensure a level playing fieldThe only way to ensure non-discrimination is through mandatory goals

Jackie EtterWest Star Construction of Spokane

Sent from my iPhone

From Claudia HirscheyTo Key Earl Bayne JackieSubject WSDOT DBE Goal - Comment in supportDate Tuesday December 12 2017 61937 PM

Dear Earl and Jackie The WSDOT recommended DBE Goal for FHWA contracts of 190 is a small and important increasethat can further achieve equity in WSDOTFHWA contracting I am in support of the 19 DBE Goal I also want to express my appreciation for the thoroughness of the WSDOT Disparity study and howthe study disclosed the disparity in WSDOT contracts that do not have a DBE or WBE goal ndash furtherreinforcing that all women-owned firms and minority owned firms face equity issues I remain concerned with the methodology required by the Code of Federal Regulations and case lawbecause of the dependence on the availability of firms in the calculation An unintendedconsequence of removing either gender or race from the goal is that many of these firms would goout of business the availability decreases and the formula then results in a smaller DBE goal Sincerely Claudia S Hirschey PETransportation Consulting Servicesclaudiahirscheycomcastnethttphirscheytcscom2068564988 Mobile

From Nate ThomasTo WSDOT Disparity StudySubject WSDOT Proposes DBE goal of 19Date Thursday December 7 2017 42720 PM

The WSDOT should look into similar ways the Federal Gov has handled the equal opportunity forthose that fall under the DBE status and set aside specific projects for the DBErsquos and moreimportantly UDBErsquos so these companies have better chance of landing contracts Maybe a lot 10 ofthe DBE goal to set aside for only DBEs and other 9 goal met as it is done currently with COA onlarger contracts Nate ThomasSenior EstimatorD 5095688085 | C 5099941156331 North Fancher Road | Spokane WA | 99212

The information contained in this email including any attachments is confidential and may beprivileged It is intended only for the person or entity to which it is addressed and no waiver isintended by sending this email If the reader is not the intended recipient you are herebynotified that any review retransmission dissemination or other use of or taking any action inreliance upon this information is strictly prohibited If you have received this email in errorkindly notify the sender by reply email and delete the original message from any computerThank You

From Brian FujiiTo WSDOT Disparity StudySubject WSDOT propsed DBE GoalsDate Thursday December 7 2017 110638 AM

Good morning Jackie

I wanted to comment on WSDOTs proposed DBE goal to 19 I believe WSDOTs plan toincrease the overall DBE goal to 19 will provide greater opportunities for DBE contractorsin different disciplines to participate in federally funded contracts

Without the new DBE requirement and with Proposition 200 there are limited opportunitiesfor DBE contractors in disciplines different than the typical trucking flagging and rebar Inaddition there are no incentives for general contractors to go out beyond the usual truckingflagging and rebar DBE subcontractors

Increasing the DBE goals will provide opportunities for different DBE contractors in differentdisciplines to participate in WSDOT federally funded projects

Thank you for your time

RespectfullyBrian FujiiPresident Subsurface ConstructionP 2063836478F 2069604639MDBE 4M0024998

From Forman StephanieTo Bayne JackieCc Millar Roger christinenhanmailhousegov Claudia Hirschey Sarah Corbin Jiang Yingle

efaulknerenviroissuescom Diana Giraldo Kelly CheesemanSubject WTS - Disparity Study Comment LetterDate Friday December 15 2017 71020 PMAttachments 2017_Dec 15_WTSCommentLetter_WSDOT DBE Goalpdf

Dear Ms Bayne Please find our attached letter which summarizes the WTS Puget Sound Chapterrsquos support foradvancement of women in transportation and our comment letter regarding the recent DisparityStudy Please feel free to contact me if you have any questions or would like to discuss Sincerely Stephanie S Forman PEWTS Puget Sound President Transportation Project Manager

929 108th Avenue NE Suite 1300Bellevue WA 98004D 4254681548 M 2062291745stephanieformanhdrinccom

December 15 2017

Jackie Bayne Policy and Reporting Manager

Office of Equal Opportunity

Washington State Department of Transportation

PO Box 47314

Olympia WA 98504-7314

Dear Ms Bayne

On behalf of the Puget Sound Chapter of Womenrsquos Transportation Seminar (WTS) we would

like to thank the Washington State Department of Transportation for presenting to our

organization the DBE Disparity Study results We very much appreciated the presentation by Earl

Key Director of WSDOTrsquos Office of Equal Opportunity Teresa Berntsen (Director Office of Minority

and Womens Business Enterprises) as well as Leslie Jones (Director Sound Transit Office of Small

Business Development and Labor Compliance)

Following a review of the WSDOT Disparity Study and as a result of consultation with WTS

International we would like to provide WSDOT with our comments for your consideration

As you know WTS is an organization focused exclusively on attracting retaining and advancing

women in transportation By the year 2018 there will be thousands of vacancies in the

transportation industry for qualified professionals and while women account for more than half of

the worldrsquos workforce they are a very small minority in transportation disciplines

We are pleased that the outcome of the 2017 Disparity Study that recognizes the on-going barriers

for DBEs including women-owned businesses in transportation The WSDOT recommended DBE

Goal of 190 is a small and important increase that can further achieve equity in WSDOTFHWA

contracting We are also pleased that the 2017 Disparity Study has documented the disparity in

WSDOT contracts that do not have a DBE or WBE goal ndash further reinforcing that all women-owned

firms and minority owned firms face equity issues We are encouraged that the WSDOT has asked

FHWA to rescind the 2016 waiver

While WTSrsquo mission is specific to the advancement of women we are a race-neutral organization To

this end we are also deeply concerned about the underutilization of minority owned firms There is

no equity or ldquofair playing fieldrdquo without equity for all gender and races We remained concerned with

the methodology required by the Code of Federal Regulations and case law because of the

dependence on the availability of firms in the calculation An unintended consequence of removing

either gender or race from the goal is that many of these firms would go out of business the

availability decreases and the formula then results in a smaller DBE goal This consequence is

contrary to our mission

We look forward to our continued participation in WSDOTrsquos DBE advisory group we are anticipating

notice that the 2016 waiver has been rescinded and how we can work together to continue

advancing minority and women-owned firms in the transportation field

Sincerely

WTS Puget Sound Chapter

Stephanie Forman

President

C Roger Millar Secretary WSDOT

C Representative Adam Smith 9th Congressional District Washington co Christine Nhan

WTS Puget Sound Chapter

PO Box 3461

Bellevue Washington 98009

From Dave Gent - WAPATo Bayne JackieCc Tom GaetzSubject WAPA Public Comments - RE WSDOT FHWA Disadvantaged Business Enterprise Proposed GoalDate Friday December 15 2017 14119 PMAttachments 12152017 DBE Proposed Goal - WAPA Public Comments Letterpdf

Good afternoon Jackie Please find attached WAPArsquos ldquofor the public recordrdquo comments with respect to WSDOTrsquos proposedDBE Goals FHWA funded work I assume that the Master DBE Directory was not sent to you this week so as a result we were notable to review the directory before the close of the public comment period That fact is noted withinour comment letter Thank you for your efforts Have a good weekend

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Friday December 8 2017 1219 PMTo Dave Gent - WAPA ltdavegentasphaltwacomgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hello Dave WSDOT did not take possession of this directory as part of our review process We will provide youwith the records without submitting a formal request However we need to get them from theconsultant first I will hopefully have them to provide next week I will keep you updated on therequest Have a nice weekend Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal Opportunity

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

December 15 2017

Jackie Bayne Policy Manager WSDOT Office of Equal Opportunity Delivered via e-mail to BayneJwsdotwagov RE Public Comment (as requested) to Proposed Overall DBE Goal for the FHWA (2018 ndash 2020) Ms Bayne Thank you for your presentation via webinar on December 5 2017 outlining WSDOTrsquos evaluation process used to determine the proposed overall DBE goal for the FHWA Thank you also for the Colette Holt amp Associates (CHA) DBE Advisory Group presentation made on September 14 2017 Both presentations helped to distill the findings of the 2017 Disparity Study produced by CHA In response to Earl Keyrsquos initial informal request to comment on the proposed overall DBE goal made during the DBE Advisory Committee teleconference held on October 12th we provided a list of reasons that we believe justify a lower DBE goal than is now being proposed Our initial response to Mr Keyrsquos request did not serve to influence WSDOT and the current proposed goal remains at 190 The arguments provided on October 12th against the significant increase in the proposed DBE goal (versus the previous goal and recent historic DBE participation) are repeated and supplemented below and will serve as the Asphalt Pavement Associationrsquos (WAPArsquos) official public comments

In concert with WSDOT and the OWMBE WAPA and the construction firms that WAPA represents have demonstrated a commitment to the principals of equal opportunity for all ldquoready willing and ablerdquo firms for the entire history that our DBE program has been in place WAPA has continuously demonstrated its commitment to the goals of the DBE program and for increasing the representation of disadvantaged groups within our industry as both workers and owners of firms Please recognize that WAPArsquos oversight and critique of the DBE program has always attempted to balance the principals of fair and open competition with the practical aspects of the low bid compressed schedule high performance standards demanded within the WSDOT marketplace Our comments below are meant to enhance WSDOTrsquos and OWMBErsquos understanding of the market and to hopefully have WSDOT fully consider all of the dynamics that are at play when proposing its Triennial DBE goal for FHWA projects Current DBE Capacity vs Historically Robust Market In advocating for a realistic and defensible DBE goal it has always been WAPArsquos position that it is paramount that the realities of the marketplace and true certified DBE subcontracting capacity should be a primary standard While a ldquostretchrdquo goal may appear to be progressive on its face it comes with consequences for all of the parties involved in the WSDOT federal aid contracting arena To balance the dynamics of the WSDOT contracting system the DBE goal should be tempered with the realities of the market and with a true measure of the underlying effectiveness of the DBE support services available to contractors

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 2 of 6 The first point of fact that has not been given any apparent consideration by WSDOT in its evaluation of the current capacity of certified DBErsquos is that there is an historically robust workload scheduled to be performed in the 2017 through 2022 time-frame particularly in the Puget Sound ldquoEverett to Olympiardquo corridor By WSDOTrsquos own estimates (see Attachment A) public works construction project starts in the 2018 to 2022 time-frame in this region will exceed $333 billion (B) counting the work projected from just five public entities WSDOT will be taking a decidedly ldquoback seatrdquo role during this period to Sound Transit which will have construction project starts of $226B vs WSDOTrsquos projected volume of $67B WSDOTrsquos summary publication titled Washington State Department of Transportations Proposed Federal Highway Administration Triennium Disadvantaged Business Enterprise Goal Federal Fiscal Years 2018-2020 states correctly that ldquoIncluded among the types of evidence that must be considered are the current capacity of DBEs to perform work on WSDOTrsquos federally-assisted contracts as measured by the volume of work DBEs have performed in recent yearshelliprdquo (Step Two Adjustment discussion) With the Sound Transit program being over 300 larger than the total WSDOT program in this region a sober assessment of true certified DBE capacity in the next three years needs to be considered by WSDOT If the huge construction boom over the next five years does not prompt a Step Two Adjustment then it becomes obvious that the realities of the market are being ignored by WSDOT for DBE goal setting Put another way if the 2018 through 2022 level of contracting activity does not warrant a goal adjustment what will DBE Access Barriers Not Yet Addressed The CHA 2017 Disparity Study points out multiple recommendations in Section VII that impact DBE participation and access to the market Assessments relating to those impacts and the state of maturity in addressing the CHA recommendations should be considered when assessing the DBE goal Many of the CHA recommendation have not been adequately addressed at this point in time Some of the prime examples are listed below Increase Certification and Expertise ndash The Disparity Study as explained to us includes all minority- (MBE)

and women-owned (WBE) firms that could be readily identified that perform work within Washington State and that perform work within the NAICS code framework CHA developed to cover WSDOT project work During the various presentations relating to the Disparity Study WSDOT representatives said that outreach to currently non-certified MBE amp WBE firms has increased and that WSDOT aspires to bolster its list of certified firms in the future but this effort is just beginning and the success of the effort needs to be means tested against the broader population of MBE amp WBE firms included in the CHA base line evaluation As the Disparity Study uses a much broader population of MBE WBE contractors to arrive at its conclusions (both non-certified firms and firms too large for certification) it follows that the calculated DBE proposed goal is overstated to include capacity that does not currently exist within WSDOTrsquos certified DBE framework Unless OMWBE is experiencing sudden and unprecedented success in recruiting new MBEWBE firms the DBE goal should be adjusted downward to recognize that the ldquoready willing and ablerdquo contractors that WSDOT has certified is only a subset of the total MBEWBE contracting population used in the Disparity Study evaluation

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 3 of 6

Until the promised WSDOT outreach registration efforts result in a substantial increase in available certified DBE firms it is premature to count the entire population of minority- and women-owned contractors as available to participate in WSDOT contracting It is unreasonable for WSDOT to project availability capacity using the entire MBEWBE population when only its currently truncated list of certified firms is acceptable to count toward the DBE goal

A corollary to the Increase Certification and Expertise discussion above is that the calculation of the Base Figure evidently includes the broadest practical population of MBE and WBE firms identifiable (without a review of the CHA Master DBE Directory which has not been supplied prior to the close of the public comment period the scope of the directory cannot be ascertained) If this directory includes a large population of MBEWBE firms that are not certified or are too large to be certified then the Base Figure calculation should be adjusted to reflect that certified DBE firms are a fraction of the total MBEWBE firms used to arrive at the 19 suggested DBE goal With respect to the CHA Master Directory it is our understanding the WSDOT was not given the directory as part of its evaluation of the Disparity Study and it follows that it did not evaluate the proposed DBE goal in the context of the CHA Master DBE Directory In our opinion an informed decision on adjusting the CHA baseline goal calculation can only be done after an extensive evaluation of the CHA Master DBE Directory If this has not been done WSDOT has not exercised due diligence in evaluating the context and underpinnings of the CHA Disparity Study and a certified DBE Triennium goal proposal to the FHWA is premature Increase Contract ldquoUnbundlingrdquo ndash If this proposed strategy (suggested by the CHA Study) is undertaken

certified DBE Subcontractors currently available will be engaged as Prime Contractors and the value of their prime contracts will bolster the overall percentage of certified DBE contracting but a systematic effort and strategy to ldquounbundlerdquo has not been articulated by WSDOT The key question of how this effort can be accomplished without increased cost to the taxpayers and increased inconvenience for the traveling public As noted in the CHA study (page 129 final paragraph) ldquoUnbundling must be conducted however within the constraints of the need to ensure efficiency and limit cost to the taxpayersrdquo As of this writing no overarching strategy for further unbundling with proper accountability has been articulated by WSDOT to the DBE Advisory Group

Review Insurance and Experience Requirements ndash Impediments to certified DBE participation due to

necessary insurance and experience standards cannot be solved by the prime contracting community Unless and until WSDOT puts together programs to address the burden of the substantial risks shouldered by Prime Contractors on WSDOT contracts barriers for streamlined utilization of certified DBE firms will continue to exist These market driven barriers will continue to dampen the availability of certified DBE Subcontractors that are able to perform within WSDOTrsquos strict criteria without unduly transferring risk to the Prime Contractor

Better Partnering to Overcome DBE Failures to Perform ndash Prime Contractors are held fully responsible to maintain the project schedule and are subject to project liquidated damages even when they may be struggling to deal with Subcontractor performance issues It is well-established that replacing a certified ldquocondition of awardrdquo (COA) DBE Subcontractor is very onerous and likely very costly to the Prime Contractor Unfortunately the imposition of strict and often counter-productive commercially useful function (CUF) rules often compound this issue as Prime Contractors cannot help COA DBE Subcontractors work through capacity expertise or time-related issues that impact timely performance

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 4 of 6

WSDOT needs to be a much better partner in the process of dealing with under-performing or non-performing certified DBE Subcontractors The current standard operational procedure places all of the exposure for non-performance onto the Prime WSDOT does not have an equitable system to account for non-performing or under-performing certified DBE Subcontractors hired as a condition of award (COA)

Performance Information and Training ndash Commercially useful function rules (CUF) and the lack of clear benchmark definitions for good faith effort (GFE) standards remain barriers for improving accountability within the DBE system and in turn lead to distorted DBE participation rates These items remain amorphous due to lack of training or lack of historic information Chronic uncertainty exists regarding both of these items Until WSDOT changes and improves its approach to provide transparency and certainty for both the prime bidding amp subcontracting parties true certified DBE capacity will continue to be masked and the resultant higher subcontracting costs associated with a distorted marketplace will continue to be hidden

WAPA respectfully suggests that simply adding an ldquoEstimated DBE Subcontract Premiumrdquo line to the current DBE bid forms would help to establish benchmarks that could begin to be used to ldquomeans testrdquo good faith efforts If this information had been gathered over the last 20 years of the DBE program meaningful GFE standards could have been developed and could be in place today

An in-depth review of CUF standards would also provide clarity For instance it is unclear why force account items performed by certified DBEs are currently counted at only 50 of the value of the work How was this benchmark established Has it been reviewed since imposed Did it ldquosolverdquo whatever inequity WSDOT was trying to address Better clarity may lead to more expanded opportunities for certified DBE Subcontractors

Enhanced Supportive Services and Business Development Programs ndash Unless and until stronger programs of these types are shown to be effective in boosting certified DBE business development increased DBE participation due to stronger business acumen should not be relied upon when setting the new DBE goal

Does OMWBE have a reasonable expectation that future plans for enhanced and expanded programs will be more successful than those employed in the past Assuming that certified DBE Subcontractors will be better prepared to deal with the WSDOT contracting environment than in the past should not be relied upon to boost DBE participation goals Especially troubling were the multiple references within the CHA report highlighting that DBEs believe that the staff at OMWBE lack a deep knowledge about the highway construction industry (eg Study page 129 2nd paragraph) Does OMWBE have a path forward that will address this issue and thus improve supportive services impacts

Develop a Bonding and Financing Program for SBEs ndash This is completely outside of the prime contracting

communityrsquos scope of influence WSDOT must find a way to institute changes that both protect the taxpayer and help increase certified DBE bonding capacity and access to financing ndash very large hurtles To assume that these hurtles can effectively be overcome within the 2018 ndash 2020 time frame when they have been chromic issues for the past 20 plus years of DBE program development is not rational

A helpful innovation would be for WSDOT to underwrite performance and payment bonds for certified DBE firms or to create promote a system that helps certified DBE firms obtain private bonding Bridging the gap to address capital access and performance risks (bonding) must be championed by WSDOT

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 5 of 6

Base Figure Adjustment to Address Available Subcontract Volume and DBE Prime Contracts It is a fact that mid- to large-sized MBEWBE firms that compete both as Prime Contractors and as Subcontractors are not eligible to be OMWBE certified DBEs Further the current amount of contract unbundling for greater DBE access to WSDOT prime contracting (see below) accounts for a very low dollar volume of prime contracts performed by certified DBEs Finally by specification (WSDOT standard specification 1-081) Prime Contractors are obligated to perform 30 of the total volume of the work (less specialty work) or stated another way a maximum of 70 of the dollar volume on WSDOT projects is typically available to award to subcontractors These market dynamics are NOT addressed in the Disparity Study A responsible DBE goal made absent of these facts should not be implemented A reasonable adjustment to the proposed 19 DBE goal is presented below

bull The percent of WSDOT prime contracts awarded to certified DBE firms is likely less than 5 by total WSDOT

contract volume Assuming this approximation is valid (likely very conservative) then the amount of WSDOT contract work available to certified DBE firms via subcontracting should be adjusted to account for the factors outlined above The Base Figure (19) should be adjusted to recognize that a 70 maximum subcontractor participation is available (in the numerator) and to account for the assumed 5 certified DBE prime contracts in the denominator Reasonable Base Figure Adjustment 19 (proposed) x 70 subcontracts available divide 95 of Non-Certified DBEs as Prime Contract Volume = 190 x 0737 = 140 adjusted goal This is an adjustment based on the practical dynamics of the WSDOT contracting system and it represents a more realistic look at the true subcontract volume that is available for Prime Contractors to award to certified DBE firms

Conclusions

Until the items listed above are addressed and in place it is not reasonable to believe that DBE goals can be increased by nearly 163 (from 117 to 190) When the projected robust public works contracting market is appropriately considered the true availability of certified DBE Subcontractors for WSDOT contracts will be truncated due to demand across all public works sectors With multiple strong public works programs competing for a limited population of certified DBEs the ability to meet increased WSDOT DBE goals will be severely challenged Without very clear concise and transparent good faith effort rules the ability to address DBE goals that greatly overestimate true near term certified DBE capacity will result in non-attainment bid day chaos failures to perform andor rapidly increased pricing

The clear conclusion is that at this point in time under the current circumstances without effectively instituted new programs rules procedures that could enhance the certified DBE programrsquos overall effectiveness we believe that the DBE goal should remain at or near 12 As OMWBE documents and demonstrates its future successes in improving access and eliminating capacity barriers only then should the DBE goal be re-evaluated and increased

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 6 of 6

In closing please remember that it is rare that the contracting community is asked our opinion with respect to the WSDOTrsquos DBE policies and so this letter is somewhat a vehicle to highlight collective concerns It is our belief that the majority of the Prime Contractors in Washington state support the objective of creating a level playing field for ready willing and able DBEs

If the level playing field is not yet possible in the absence of the DBE program then the key is to set realistic goals that recognize reflect and address the hard realities and market dynamics imposed by WSDOTrsquos bedrock environment of awarding contracts to the lowest cost responsible and responsive Contractor

Respectfully submitted Washington Asphalt Pavement Association

David Gent Tom Gaetz Executive Director Senior Advisor

Attachment A ndash WSDOT Central Puget Sound Public Works Contracting Projection 2018 - 2022

Con

stru

ctio

n Pr

ojec

t Sta

rts

2018

-202

2S

ound

Tra

nsit

$22

6 B

SD

OT

$08

B

Tran

sit

amp O

ther

s$1

7 B

WS

DO

T$6

7 B

Por

t of

Sea

ttle

$15

B

TOTA

L$3

33

B

Source N

ov 1

9 2

017

pres

enta

tion

to W

APA

Ann

ual M

eetin

g

Attachment A

Work (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Dave Gent - WAPA [mailtodavegentasphaltwacom] Sent Thursday December 7 2017 144 PMTo Bayne Jackie ltBayneJwsdotwagovgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hi again Jackie Irsquom fine thanks and hope you are the same Interesting The Master DBE Directory is the basis for and integral to the conclusions of the DisparityStudy Is it not then part of the information needed to fully review and comment on the DisparityStudy Was it not provided by CHA to WSDOT for review We are trying to fully understand thestudy and if this directory was part of the study why would it need to be obtained by a publicrecords disclosure It should be in the public domain and not restricted from ease of access If you are sure that a public records request is needed Irsquoll start that process but we will need tonote that point of fact when we submit our public comments If you are able to reconsider please let me know Respectfully

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Thursday December 7 2017 126 PMTo Dave Gent - WAPA ltdavegentasphaltwacomgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hello Dave I hope you are doing well

That information would likely be obtained through a public disclosure request Best Regards Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Dave Gent - WAPA [mailtodavegentasphaltwacom] Sent Thursday December 7 2017 113 PMTo Bayne Jackie ltBayneJwsdotwagovgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Jackie Can you please provide an electronic file or provide a weblink for the Master DBE Directory thatColette Holt amp Associates developed for the WSDOT Disparity Study 2017 (first referred to on Page 8of the Disparity Study) I did not see a link to this Master DBE Directory within the study Thanks

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Friday October 27 2017 1118 AMTo Kenyon Wendy ltKenyonWwsdotwagovgt Adams E W ltewadamssystemsclcomgtAdekoyaAndrew ltandrewadekoyabccomgt AlyssaBalllegwagov Anindita Mitraltamitracrea-affiliatescomgt APRISeattlehotmailcom Armstrong CharlotteltCharlieAatgwagovgt Ato Apiafi Architects PLLC ltatoaatoapiaficomgt benzfanwaorgBerntsen Teresa (OMWBE) ltTeresaBomwbewagovgt Billingsley Andrealtbillinawsdotwagovgt Bramlet Erica ltEricaBramletlegwagovgt Brooks Julius

ltBrooksJwsdotwagovgt Brown Jason ltjbrownldccorpcomgt bwallacenwlaborersorgCamden Allison ltCamdenAwsdotwagovgt carlllivingstongmailcom Cerda OscarltCerdaOwsdotwagovgt Christopher Chris ltChristCwsdotwagovgt ckerneycaawagovdanplatinumbusinessgroupcom davegentasphaltwacom David BalltDavidsignsnowmillcreekcomgt Davis Khalia ltDavisKhwsdotwagovgt Davis RaShelle (GOVltrashelledavisgovwagovgt Dayton Jo ltDaytonJwsdotwagovgt ddhondtagcwacomDebbieDriverlegwagov Dennis ltdennisahlkiewitcomgt dmcleodnwlaborersorgdrart6651gmailcom Duncan Enid lthigradeincgmailcomgt EltonltEltonwashingtonstatetruckingcomgt eprincecaawagov flemosldccorpcomfmartineznwmtnmsdcorg geoffshookatkncom glovelady ltgloveladyexcelglovescomgtGrabow Katie ltkgrabowsystemsclcomgt Guilfucci Jackie ltJackieGuilfucciskanskacomgt HealyLinda ltHealyLwsdotwagovgt Higginbotham Breanne ltHigginBwsdotwagovgt HirscheyClaudia ltclaudiahirscheycomcastnetgt Holt Colette ltcoletteholtmwbelawcomgt Huff JohnltHuffJwsdotwagovgt Iniguezchawagov JacksonMaynardlegwagov Jimmy Matta(jmattaalcantarassoccom) ltjmattaalcantarassoccomgt kellywickergovwagov Key EarlltKeyEwsdotwagovgt Kirk Jon ltjkirkwhhnfscomgt Kris Purrier ltkpurrierhwageocomgtleewabuildingtradesorg lesliejonessoundtransitorg Liz Evans ltlevansagcwacomgt LopezErin lterinlopezdeswagovgt Martha Cerna ltMarthaPSLCCORGgt Martin-Arnold EdwinaltMartinEwsdotwagovgt Mary Lerdahl ltmarydbeelectricinccomgt McCarty Hannahlthannahmccartylegwagovgt Melissa L Boyles ltmelissaboylesmwbelawcomgt Metcalf KeithltMetcalKwsdotwagovgt michaelicapaawagov Michelle ltMichelleTTCC26netgt MillarRoger ltMillarRwsdotwagovgt Nakamura Jason ltjasonnakamura1-alliancecomgtNavarroLportseattleorg olliepmt-solutionscom pastorbanksesbctacomacom PatrickHughes ltphugheshughesgroupbizgt Petersen Jodi (FHWA) ltJodiPetersendotgovgtrabbottliunaorg rcarmsteadgmailcom ricemportseattleorg Riley D ltdrileylydigcomgtSeling ltSelingjpfranciscomgt sherryharrisergosynchcom Stell MellodyltStellMwsdotwagovgt terigobintulaliptribes-nsngov timwilliamfactorycom tinaterra-tdicom tkellyldccorpcom tomgaetzmsncom vcollinsacec-waorgverlenejazzmsncom Wang Albert ltWangAatgwagovgt Waugh GregltGregWMaxKuneyComgt Yates Henry ltYatesHWSDOTWAGOVgtCc Tom Gaetz lttomgaetzmsncomgt Dave Gent - WAPA ltdavegentasphaltwacomgt VanCollins ltvcollinsacec-waorggt Daniel Seydel II ltdanplatinumbusinessgroupcomgt MaynardJackson ltJacksonMaynardlegwagovgt Carl Livingston ltcarlllivingstongmailcomgt DonMcLeod ltdmcleodnwlaborersorggt JIMMY MATTA ltjimmymattamsncomgt Prince Ed(CAAA) lteprincecaawagovgt David DHondt ltddhondtagcwacomgt Irene Reyesltgloveladyexcelsupplycompanycomgt McDaniel Craig ltMcDaniCwsdotwagovgtsherryharrisergosynchcomSubject WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Good morning On Monday October 30th WSDOT will be releasing the proposed overall Federal HighwayAdministration Disadvantaged Business Enterprise goal attached for public comment throughDecember 15 2017 This overall DBE goal is based upon the recently completely DBE ProgramDisparity Study WSDOT is proposing a 19 percent overall DBE participation goal on Federal Highway

Administration-funded projects for federal fiscal years 2018 through 2020 DBE goals fortransportation projects that receive federal funds represent a percentage of the value of work inwhich minority- and women-owned businesses should participate Once finalized and submitted toFHWA early next year the goal will be effective through Sept 30 2020

The purpose of the DBE program is to create a level playing field for firms owned and operated bydisadvantaged individuals wanting to participate in federally assisted highway transit and aviationprograms The attached overall DBE goal is for FHWA funded projects WSDOT will be updating theFTA and FAA overall DBE goals in the near future

If you have any questions please contact Earl Key Director of the Office of Equal Opportunity at3607057091 or KeyEwsdotwagov Thank you Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

  • Proof-Of-Publicationpdf
    • Mediapdf
      • AGC
      • Daily Journal
      • Daily Medium
      • DBEGood
      • OMWBE
      • Seattle Medium
      • Tabor 100
      • The Chronicle
      • Tukwila
        • King County
          • Public-Comments-20180111pdf
            • 19 DBE Requirement(1)
            • AGC Comments on Proposed 10 Goad
            • Backstrom Curb amp Sidewalk
            • comments on WSDOT proposed DBE goal
            • Cowlitz County Public Works
            • DBE Contracting goals
            • DBE Goal
            • DBE Program Disparity Study
            • Disparity Study Comments from City of Spokane
            • FW_ WSDOT News - WSDOT seeks comments on propos
            • Proposed DBE Goals
            • RE_ DBE Contracting Goal Comments
            • Re_ DBE Goal Comments
            • Re_ Seydel Dan - WSDOT Disparity Study Present
            • Support for WSDOTs proposed DBE goal
            • Why we need mandatory goals
            • WSDOT DBE Goal - Comment in support
            • WSDOT Proposes DBE goal of 19
            • WSDOT propsed DBE Goals
            • WTS - Disparity Study Comment Letter

13 $amp()(

(+amp13ampampampampampamp$amp -011234567

89lt=gtABCDgtEF39=GHIJK1L0M1JLNO1L040K420PJLJLQ0K5R015JKNON70220K445N04S0K10Q4P6N5KNNN0K4022J1TLNUTJ70VP5K1LN145KUJLW5KQU51T1TX0NT5KQ1JK101YZ0L17K1J[CL0KNZJL1015JKXYgtC]0L5KS5141JMJ77K1JK1T0QKMVNZLJZJN4Y5N04S0K10Q4_6N5KNNK1LZL5NY_]QJ02[JL4L02a5QTU0VG475K5N1L015JKMJK1L0M1NbY_QJ02N[JL1L0KNZJL1015JKZLJcM1N1T01LM5S[4L02[6K4NLZLNK10ZLMK10QJ[1TS026J[UJLW5KUT5MT75KJL51Vd0K4UJ7KdJUK4P6N5KNNNNTJ624Z0L15M5Z01bXYgtC5NZLJZJN5KQ0efZLMK1JSL022Y_Z0L15M5Z015JKQJ02JK4L02a5QTU0VG475K5N1L015JKd[6K44ZLJcM1N[JL[4L02[5NM02V0LNghei1TLJ6QTghghbgtKMN6P751141JaXG0L2VKj1V0LO1TQJ02U522P[[M15S1TLJ6QTZ1bkhOghghbCTZ6LZJNJ[1TY_ZLJQL075N1JML0102S2Z20V5KQ[524[JL[5L7NJUK40K4JZL014PV45N04S0K10Q45K45S54602NU0K15KQ1JZ0L15M5Z015K[4L022V0NN5N14T5QTU0VO1L0KN510K40S5015JKZLJQL07NbXYgtCU522TJN10NL5NJ[Z6P25M715KQN1JZLJS54JZZJL16K515N[JL5K45S54602N1JMJ77K15KZLNJKlZJW0KOgHmZb7bJKC6NbOAJSbgi01XYgtC0N1LKQ5JKa04n60L1LNHgoemA30V[05L1bOZJW0Kplt0KMJ6SLOgHmZb7bX4NbOAJSbgf01XYgtClt0KMJ6SLa04n60L1LNHeeheiAqeN1I5LM2Olt0KMJ6SLp0112OgHmZb7bCT6LNbOYMbo01XYgtCAJL1TUN1Q5JKa04n60L1LNHeqohhY0V1JKGSbAOTJL25Kbrstuvwxyz|v|~u|usCTJNUTJ0L6K0P21J011K4JKJ[1T715KQNM0KZ0L15M5Z015K0KJdMJN1UP5K0L[LJ7glkhHmlkhZb7bC6N40VOYMbqbQ5N1L015JK[JL1TUP5K0L5NLn65L4bCTJN5K1LN145KZ0L15M5Z015KQNTJ6247052Y5NZ0L51V164VUN4J1bU0bQJSbXL511KMJ77K1NM0K02NJPN6P75114PV7052JL7052l0MW5_0VKO9J25MVZJL15KQ30K0QLOX0NT5KQ1JK101YZ0L17K1J[CL0KNZJL1015JKOgt[[5MJ[n602gtZZJL16K51VO9bgtb_JjmokemOgt2V7Z50OXGfiqhmdokemJL705241JY5NZ0L51V164VUN4J1bU0bQJSbYJM67K1N410525KQ1T71TJ4J2JQV6N4[JL41L75K5KQ1TaXGY_QJ02N0L0S0520P2[JLLS5U01022XYgtCLQ5JKT04n60L1LNJ[[5MN0K4011TCL0KNZJL1015JK_65245KQOkeh30Z290LWGSbOgt2V7Z50bCTV0L02NJ0S0520P2JK25K01UUUbUN4J1bU0bQJSn602JZZJL16K51VbXYgtCU522MJKN54L022UL511KMJ77K1NLM5S41TLJ6QTL540VOYMbeqOgheob iexclcentpound currenGPJ611TG61TJL G4SL15N7K1N

13

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AringEgraveAacuteEacuteAringcentAEligEcircEumlAcircCcedilIgraveEumlAacuteAacuteAgravecentfrac14frac12IacuteAacuteAgravefrac34AacuteIcircCcediliquestAEligiexclIumlAcircAacuteEumlETHEgraveNtildeOgraveOgraveEcircAacuteAEligIacuteiquestAEligfrac14AacuteAacuteyenAacuteiquestAEligCcedilAumliquestiquestAringiquestAacuteAEligAacuteiquestAEligAringAcircAacuteAtildeAringAtildeEcircAcircCcedilETHAtildeEcircAringiquestiquestAEligCcedilAtildeOacutefrac34Aacutefrac34CcedilAumliquestAEligCcedilAacute EacuteEacuteEacuteOcircOtildeEgraveOumlOcircOumlETHtimesIgravefrac12Agravefrac34AtildeiquestAEligfrac34iquestAtildeAgrave AringIgraveAacuteEgraveAringiquestEcircEumlAcircCcedilEgravefrac12CcediliquestAacute AacuteAgravefrac34AtildeiquestAEligEumliquestiquestAacutefrac34frac34frac34ETHCcedilAacuteAringAacuteiquestAEligCcedilAumlAringOslashCcediliquestAacuteOslashIgraveNtildeNtildeIgraveOgraveETHUgraveOgraveOgravefrac12AgraveAcirc AacuteAgraveCcedilAringiquestAacuteAumlAacuteEcirciquestAEligCcedil iquest 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13

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httpwwwchronlinecomnewswsdot-seeks-public-comment-on-disadvantaged-business-enterprisearticle_f5c753ea-be61-11e7-966c-972f6769d8a6html

WSDOT Seeks Public Comment on Disadvantaged Business Enterprise By The Chronicle Oct 31 2017

The Washington State Department of Transportation will be accepting public comments about the departmentrsquos proposed Disadvantaged Business Enterprise goal for federal contracts

The goal is for transportation projects receiving Federal Highway Administration funds to have 19 percent of the value of work done by minority or women-owned businesses during the 2018 through 2020 fiscal years

ldquoThe purpose of the DBE program is to create a level playing field for firms owned and operated by disadvantaged individuals wanting to participate in federally assisted highway transit and aviation programsrdquo a press release from WSDOT said

A series of public meetings will be held to discuss the goal in Spokane Vancouver and Seattle

For those who are unable to attend the in person meetings a webinar will be hosted from 230 to 430 pm Thursday Dec 5 The webinar is free but registration is required To register email DisparityStudywsdotwagov

Page 1 of 2WSDOT Seeks Public Comment on Disadvantaged Business Enterprise | News | chronlin

1112018httpwwwchronlinecomnewswsdot-seeks-public-comment-on-disadvantaged-business-

Written comments can also be submitted by mail or email to Jackie Bayne policy and reporting manager for the department of transportation at Washington State Department of Transportation Office of Equal Opportunity PO Box 47314 Olympia 98504 or by email at disparitystudywsdotwagov Comments will be considered through Dec 17 2017

More information about the goal is available at all regional offices or at the main office in Olympia located at the Transportation Building 310 Maple Park Ave SE Olympia More information can also be found online at wsdotwagovequalopportunity

Page 2 of 2WSDOT Seeks Public Comment on Disadvantaged Business Enterprise | News | chronlin

1112018httpwwwchronlinecomnewswsdot-seeks-public-comment-on-disadvantaged-business-

larr Halfway there SR 8 fish barrier removal reaches milestone New SR 26 traffic cameras available rarr

WSDOT seeks comments on proposed DBE contracting goal for highway projects

December 1 2017 | No Comments

WSDOT is seeking comments on proposed participation goals for Disadvantaged Business Enterprises on upcoming Federal Highway Administration contracts a Yakima meeting has also been added to the schedule Source WSDOT Permalink WSDOT seeks comments on proposed DBE contracting goal for highway projects

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From Liz EvansTo Bayne JackieSubject AGC Comments on Proposed 10 GoadDate Tuesday December 12 2017 50314 PMAttachments WSDOT Proposed Goal - AGC Comments FINALdocx

Hi there Jackie Attached are AGCrsquos comments on WSDOTs proposed 19 goal We will also be mailing you a copy Thanks for the opportunity to comment and we hope you find it helpful Regards Liz Liz Evans CAE Northern District ManagerAGC OF WASHINGTONTel 3602238757 | wwwagcwacom JOIN US for the 2018 AGC of Washington Annual Convention amp Technology Expo Jan 26

CUsersmwillmsPicturesInland AGCLogo_RGB_Half_5in

December 12 2017

Page 5

December 12 2017

VIA EMAIL amp US MAIL

Ms Jackie Bayne Policy amp Reporting Manager

Washington State Dept of Transportation

210 Maple Park Ave SE

PO Box 47314

Olympia WA 98504

RE WSDOT Proposed FHWA Triennium Disadvantaged Business Enterprise Goal

Dear Ms Bayne

This letter summarizes the views of the Associated General Contractors of Washington and Inland Northwest Associated General Contractorsrsquo (hereafter referred to collectively as AGC) regarding the Washington State Department of Transportationrsquos (WSDOT) recently proposed FHWA Triennium Disadvantaged Business Enterprise (DBE) Goal (the ldquoProposed Goalrdquo) AGC shares WSDOTrsquos commitment to continue the promotion of DBE firms but AGC is concerned the Proposed Goal which is a significant increase from the previous goal and actual utilization may have unintended consequences and could impose significant burdens on both prime contractors and DBE contractors alike AGC requests WSDOT reconsider its Proposed Goal and adjust the Proposed Goal to account for inevitable availability and capability issues including the lack of a formal retraction of the non-minority woman owned business waiver that makes up over half of the Proposed Goal Implementing an unachievable goal will only be to the detriment of the DBE program

1 AGCrsquos Membersrsquo Interest in WSDOTrsquos Proposed Goal

Together AGC of Washington and Inland Northwest AGC represent and serve the commercial industrial and highway construction industry These professional associations of commercial contractors are comprised of more than 900 members who have joined together to enhance the performance of their industry and build a better climate for construction operators many of which are small and closely held businesses

Like WSDOT AGC is firmly committed to the principals of equal opportunity and promoting efforts to ensure minority women and veteran owned businesses are properly represented In both its political advocacy and membership programs AGC has demonstrated its commitment to increasing the representation of disadvantaged groups in the construction industry as both workers and owners of firms For AGC this is both an issue of principles and a practical one The construction industry as a whole is facing a critical shortage of workers and it is imperative that the industry attract new participants Among AGCrsquos activities demonstrating this commitment are the following

middot AGC has an ongoing ldquoContractor Exchangerdquo program through which small minority- and women-owned subcontractors are offered one-on-one networking opportunities with established general contractors

middot The AGC Education Foundation provides financial support to construction-related programs in K-12 schools and conducts outreach specifically targeted at low income disadvantaged and female students

middot More than 2500 students most from inner-city schools participate in annual AGC-sponsored Construction Career Days in King Pierce and Spokane Counties

middot AGC supports the Pre-Apprenticeship Construction Training (PACT) program at Seattle Vocational Institute This program is focused on preparing underrepresented communities to be highly qualified applicants and successful apprentices in the construction trades

middot AGC is a sponsor of the Turner School a training course for minority- and women-business owners in the construction industry

middot AGC supports the National Association of Women in Construction (NAWIC) which provides professional development and other services to its members

middot AGC routinely supports legislative efforts aimed at supporting small businesses and encouraging small business participation

middot AGC recently formed a Diversity and Inclusion Committee comprised of both prime and DBE participants The purposed of the committee is to expand opportunities for DBE members and to help AGC consider diversity in decision-making Recently AGC approved a deeply discounted introductory dues structure for certified DBE members

middot AGC is a WSDOT partner on the new mentorproteacutegeacute program

AGCrsquos experience has been that the most effective approach is to help make emerging businesses successful through outreach training and public policies that will grow their capacitymdashnot by imposing mandates without clear evidence as to the mandates feasibility

2 WSDOTrsquos Proposed Goalrsquos Impacts To The Construction Industry

WSDOTrsquos Proposed Goal is 190 The Proposed Goal is based upon the recent Collete Holt amp Associates (CHA) Disparity Study released in 2017 With respect to availability the Disparity Study reports the following weighted availability for FHWA-Funded projects

Thus the 190 goal factors in Black Hispanic Asian Native American and White Women into its availability As indicated however this 19 goal raises a number of concerns

a WSDOTrsquos 19 Proposed Goal Represents a Significant Increase Without Concrete Evidence of Available And Capable DBE Firms

First WSDOTrsquos Proposal Goal of 190 represents a significant increase as compared to actual DBE participation (141 in 2014 117 in 2015 and 151 in 2016) as well as the last FHWA proposed goal of 116 for 2014-2018 See WSDOTrsquos Proposed Goal and Interim FHWA Overall DBE Goal Methodology FFY 2014-2018 The Proposed Goal is 74 more than the last goal which represents a 638 increase and a 52 increase over the average actual utilization for 2014-2016 While Contractors were exceeding the previous 116 goal this is primarily based on the fact that WSDOT previously requested a waiver to consider non-women-owned businesses and the waiver was not granted and effective until June 2017 (meaning that for 2014-2016 women were counted towards race-conscious goals and inevitably a higher overall percentage of DBE firms were utilized)

Contractors struggle to meet present DBE goals due to the relatively low availability of experienced and certified DBE firms By increasing the goal WSDOT is understandably trying to increase the participation of underrepresented firms Drastically increasing the goals (by over 5 of actual utilization) without concrete evidence that there is sufficient availability andor capability of such firms however will have the opposite effect Notably this lack of availability and capacity of DBE firms was discussed in detail in the Disparity Study For example the CHA Disparity Study notes a number of concerns of DBE firms while technically ldquoavailablerdquo with respect to the goal percentages are unable to meet the requirements necessary to fulfill the contract including purchasing the equipment necessary having available labor and ability to meet insurance and financing requirements Thus while there may be ldquoavailablerdquo firms there is not clear evidence (and if fact evidence to the contrary) that those available firms are capable and available to perform the majority of the FHWA-Funded contracts let by WSDOT

An additional example affecting DBE capability and availability that is not factored into the CHA Disparity Study or WSDOTrsquos Proposed GOAL is DBE ability to enter into Project Labor Agreements (ldquoPLAsrdquo) WSDOT has indicated their interest in pursuing a PLA AGC Members have raised concerns based on repeated experiences that many DBE firms due to the administrative and cost impacts refuse to enter into PLAs precluding those firms from performing certain work or increasing costs Again this lack of ability (or refusal) to perform should also be factored into WSDOTrsquos Proposed Goal which is not currently the case

b The Proposed Goal Does Not Account For The Current Non-Minority Woman Owned Business Waiver Still In Place

Second despite the significant increase WSDOT does not account for the current waiver of non-minority women owned businesses that remains in place As noted in WSDOTrsquos proposal comments WSDOT previously sought and received a waiver of the regulation that White females as a group are presumptively disadvantaged This waiver was heavily criticized by many including AGC and the results of the most recent CHA Disparity Study confirmed that White females are presumptively disadvantaged and do not enjoy a level playing field for USDOT-assisted contracts Therefore the CHA Disparity Study recommends that this group be returned to the status of goal credit eligibility WSDOT has sought a recession of the waiver but has not yet to our knowledge received a rescission of the waiver Nevertheless the 19 Proposed Goal still includes White women In fact of the 19 availability percentage White women represent 103 (over half) Accordingly for WSDOT to proceed with the 19 goal WSDOT must receive the rescission of the waiver for this goal to be even remotely possible to achieve If the rescission is not received the Proposed Goal must be adjusted

C The Proposed Goal Does Not Account For Availability Differences Across The State

Third the Proposed Goal does not account for availability difference across the state Eastern Washington contractors with an even scarcer pool of available and qualified DBE firms in the area as is the case now will be forced to subcontract to Western Washington firms paying transportation and per diem premiums for such work The CHA Disparity Study again provides numerous excerpts of anecdotal evidence demonstrating that the goals in Eastern Washington are too high A few of the contractor comments on the topic are as follows

When you apply those same goals to a different geographic region a different project site for a large firm to meet those goals is difficult because theres not necessarily the expertise in parts of the project that were submitting on

Theres very few DBEs over here [in Eastern Washington] Next year theres going to be even more work over here What are we going to do with all these goals We always meet the goals like I said youve got three four DBEs over here to do all the work and then they cant perform

There are just no [minority-owned] DBEs available in eastern Washington

See CHA Disparity Study at p 54 Again these are factors that should be taken into account in developing the Proposed Goal or at the very least its application WSDOTrsquos Proposed Goal however is silent as to this significant issue

When the lack of available firms with the capacity to perform significant DBE projects is coupled with the increased goals the price of WSDOT contracts will inevitably increase to the significant detriment of Washington taxpayers and the public entities Inevitably with a lack of available qualified firms the lack of competition will become evident and small qualifying contractorsrsquo prices will increase due to supply and demand principles as they become selected for projects and less able to take on additional work These increased DBE contract values will be passed on to the public agency and taxpayers which translates into fewer dollars available for the sorely needed and promised infrastructure upgrades In addition the instance of bid protests will inevitably increase potentially delaying projects and further diverting agency resources from badly needed infrastructure upgrades to resolving unnecessary disputes or rebidding the projects altogether

Finally faced with such drastic and potentially impossible requirements if adjustments are not made contractors may focus more on demonstrating good faith efforts Both a contractor who meets the required goal and a contractor that demonstrates good faith efforts are eligible for award It is likely that the contractor relying upon good faith effortsmdashwho will have a lower price than the other contractor who sacrificed price to actually meet the goalmdashwill be selected by the public agency This outcome will erode the total percentage participation of eligible firms and would clearly be inapposite of WSDOTrsquos intentions

3 Conclusion and Request

AGCrsquos members have asserted these and multiple other concerns Implementing an increased goal across the state and all contracts without clear evidence of available DBEs capable of performing the work and meeting the project requirements will have significant and far-reaching impacts on the construction industry many of which work against the aim of the Proposed Goal itself AGC requests WSDOT reconsider its Proposed Goal of 19 and make adjustments to account for the capability of DBE firms the lack of a rescission of the non-minority waiver and the lack of available DBE firms in parts of the state This Proposed Goal and its impacts on the construction industry will be irrevocable and will be to the detriment of taxpayers It is prudent to address these adjustments before implementing the Proposed Goal

Very truly yours

David DrsquoHondtCheryl Stewart Executive Vice President AGC of WashingtonExecutive Director Inland Northwest AGC

AGC of Washington bull 410 11th Avenue SE 203 Olympia WA 98501

Inland Northwest AGC bull 4935 E Trent Avenue Spokane WA 99212

image3jpeg

image1png

image2emf

image4png

image5jpeg

From Steve SmithTo WSDOT Disparity StudyCc Bayne JackieSubject 19 DBE RequirementDate Thursday December 14 2017 31947 PMAttachments DBE List and NAICS Listingpdf

Disparity Committee I recently read in The Daily Journal of Commerce that WSDOT plans to adopt a 19 DBEstandard for all FHWA funded projects early next year Our company S amp K Painting Inc is abridge painting company which is based in and works exclusively in Oregon and Washington Ihave been the owner of this firm since 1978 when it was first established My concerns aboutthe proposed 19 DBE requirement is as follows 1 There are very few opportunities for subcontract work on bridge repaint jobs These jobsare usually limited to cleaning and painting the bridge The only other facet of the project istraffic control which is almost always 3 or less of the project total cost The traffic controldoes provide a very good subcontracting opportunity 2 The NAISC code of 238320 includes bridge painting but also includes house painting wallcovering rust proofing etc which have almost no similarities to bridge painting When thiscode is used to determine the number of available firms (DBE or otherwise) that are availablefor bridge painting project this badly skews the numbers I would suggest that bridge paintingcontractors make up less than 5 of all firms in NAISC code 238320 3 If future WSDOT bridge painting projects require a 19 DBE participation A The qualified pool of DBE subcontractors available to submit pricing on any facetother than traffic control will be very limited I reviewed a list of 19 certified DBE firms listedunder painting at the WSDOT website and only recognized one firm from past projects B The number of prime bidders and competition will fall The state will incur highercosts due to this fact C Prime bidders will be forced to subcontract unqualified contractors just to be eligiblefor contract awards This will likely reduce the quality of the finished project Thank you for considering my concerns I may not have verbalized my thoughts as well as Iwould have liked but I have been in this business for almost 40 years and truly believe what Ihave said Sincerely

Steve Smith President

SampK Painting incP O BOx 390clacKamaS OregOn 97015Phone (503) 557-5544Fax (503) 557-5566Cell (503) 260-5280Steveskpaintingcom

From Lei WuTo Bayne JackieSubject comments on WSDOT proposed DBE goalDate Thursday December 14 2017 94925 PM

To Whom It May Concern

Below is my comments

The WSDOT recommended DBE Goal for FHWA contracts of 190 is a small andimportant increase that can further achieve equity in WSDOTFHWA contracting I am insupport of the 19 DBE Goal

I also want to express my appreciation for the thoroughness of the WSDOT Disparity studyand how the study disclosed the disparity in WSDOT contracts that do not have a DBE orWBE goal ndash further reinforcing that all women-owned firms and minority owned firms faceequity issues

I remain concerned with the methodology required by the Code of Federal Regulations andcase law because of the dependence on the availability of firms in the calculation Anunintended consequence of removing either gender or race from the goal is that many of thesefirms would go out of business the availability decreases and the formula then results in asmaller DBE goal

Thanks

Lei

Lei Wu PE AICP

Principal CSL Consulting

LeiWucsl-consultingnet

(425)562-6275

From Stephanie SimpkinsTo WSDOT Disparity StudySubject DBE Contracting goalsDate Wednesday November 29 2017 20259 PM

My name is Stephanie Simpkins and I own North Star Enterprises It is a large womanowned traffic control company located in Spokane Washington My mother founded thecompany in 1984 and I have worked in this family owned business most of my life Ipurchased the business from her in 2013 and have been sole owner since then My company thrived under the Disadvantaged Business Enterprise (DBE) Programimplemented by Washington Department of Transportation and administrated by United StatesDepartment of Transportation What started as a small business with one truck and a fewemployees has grown over the years to be one of the largest traffic control companies in thestate and employee countless people every construction season It has not been an easy roadover the years being a woman in the construction industry never is and it is hard to say wherewe would be now if it werenrsquot for the assistance of the DBE program As you know in June of 2017 majority women were removed from the DBE program basedon a disparity study conducted in 2012 On March 2014 Washington Department ofTransportation requested a wavier to remove majority women from the DBE program Thishas had an immediate and drastic impact on my business and all who work for me From themoment the waiver was approved and my company could no longer be used as a condition ofaward at bid time I began losing work Most recently the 2018 North Central Region ChipSeal which we have worked on for the last 10 years This contract provides work forapproximately 40 employees for the entire construction season I have already been told byseveral contractors that with such a high UDBE goal they wont even be able to consider mefor this project This loss along with several other smaller contracts to date are painting avery dismal future for my business With all of this turmoil surrounding the future of my business I find it frustrating to say theleast that WSDOT has chopped me off at the legs by not allowing my firm to count for theCOA but can use the little participation I may still contribute to help them reach their overallstate goal How is this fair If the contractors canrsquot utilize my business than neither shouldWSDOT As far as setting future state DBE contracting goals it looks as if the bar will beraised once again all while excluding the largest subset of useable DBErdquoS To me raising theoverall state goal at this time (which is already challenging to meet) with women DBErsquosexcluded from the program seems horribly ill timed

From Karen R BannishTo Bayne JackieSubject DBE GoalDate Tuesday December 5 2017 32549 PM

Hello Jackie ndash thank you for the webinar today concerning the proposed Overall DisadvantagedBusiness Enterprise Goal for the Federal Highway Administration I understanding the DisparityStudy much better now and checked the document you mentioned on the WSDOT website Pacific County is located in the Southwest corner of the State of Washington The tip of the LongBeach Peninsula would be 2 frac12 hours from Interstate 5 Our federal work primarily includes strictlyoverlay projects with 12 or fewer items of work included in the contract When bidding a project(our contracts are usually less than $500000) we sometimes received a single bid from the process Due to our proximity and the small cost for the work it is difficult to entice DBE participation Thereare simply no items of work that can be performed Having a mandatory DBE goal placed upon theproject in a rural area simply to meet the disparity guidelines will only increase the cost of theproject We feel the goals should be set in balance with the cost of the project and the items of work and notsimply directed to meet the overall goal

Karen BannishSenior Engineering TechnicianPacific County Department of Public Works211 North Commercial StreetRaymond WA 98577(360) 875-9368

From Dawn EgbertTo Bayne JackieSubject DBE Program Disparity StudyDate Tuesday December 5 2017 23825 PM

Hi JackieThank you for the great information on the call today You talked about the small works rosterbriefly We had a conversation in our office today about small contractors who are signed up on thePort of Vancouverrsquos small works roster Our team has had opportunity to talk to some of thecompanies on our roster who are women owned or minority owned businesses but they arenrsquotsigned up as a DBE firm When asked about that theyrsquove mentioned that they donrsquot want to fill outthe additional paperwork required to obtain the certification as a DBE As for the DBE goal at 19 it doesnrsquot seem to present an issue for the majority of our projects ndashespecially those where we would apply FHWA funds if granted However if we did happen to have aproject that didnrsquot include classifications of work where DBE certified participants are availablewould there still be an exception or a good faith efforts clause Thanks again for your time Dawn EgbertProcurement Services Manager3103 NW Lower River Road Vancouver WA 98660Direct 3609921102 | Cell 360448-9867 | Main 3606933611 | Fax 360735-1565degbertportvanusacom | wwwportvanusacom | available port properties Leadership | Stewardship | Partnership

From Feist MarleneTo WSDOT Disparity StudyCc Simmons Scott M Twohig KyleSubject Disparity Study Comments from City of SpokaneDate Friday December 15 2017 52226 PMAttachments image010png

image011pngimage012png

December 15 2017 Jackie BaynePolicy amp Reporting ManagerOffice of Equal OpportunityWashington State Department of TransportationPO Box 47314Olympia WA 98504-7314 RE Proposed DBE Contracting Goal for Highway Projects Dear Ms Bayne The City of Spokane would like to provide comments related to proposed DisadvantagedBusiness Enterprise Goal for Federal Highway Administration (FHWA) contracts by theWashington State Department of Transportation (WSDOT) Office of Equal Opportunity Manyof our projects receive funding from FHWA and as such the proposed new goals areapplicable to City work The City is supportive of the programrsquos purposemdashldquoto create a level playing field for firmsowned and operated by disadvantaged individuals wanting to participate in federally assistedhighway transit or aviation programsrdquo However the City is concerned about the ability to achieve the proposed utilization rate of upto 19 percent for DBEs in Eastern Washington considering the low number of DBEs in ourregion and the record construction under way in the City and in our region WSDOTrsquos DBE Program Disparity Study notes ldquoContractors in Eastern Washington repeatedlyreported that the goals on projects in their area are too highrdquo The Inland NorthwestAssociated General Contractors group notes that only about 12 DBEs in construction fields areavailable in the greater Spokane area Meanwhile the City has performed record construction in each of the last three years withproject totals hovering around $100 million Our City work has been bolstered by anaggressive program to improve water quality in the Spokane River Our local school districtsand our neighboring jurisdictions also have aggressive construction programs right now

Additionally we expect WSDOTrsquos work in this region to accelerate as North Spokane Corridor(NSC) construction proceeds At times our area is reaching the limits overall of our contractingcommunity the City has worked to release its projects in the first quarter of the year as muchas possible to lock in contractors and receive better pricing The capacity of existing DBEs in our region simply cannot meet that current high demand Some DBE firms are tempted to agree to more work in these times but we have found that insome cases DBEs have stretched themselves too thin On two recent City projects generalcontractors were unable to meet DBE goals as a result of DBE firms that couldnrsquot fulfill theircommitments for providing personnel or equipment It also seems implausible to expect DBEs from the West Side to mobilize teams to work on Cityof Spokane projects in large numbers In fact the Disparity Studyrsquos author responded at arecent meeting on this topic that a DBE from the West Side only very rarely completes workon the East Side of the state We would also be concerned about moving the good-paying jobs that construction providesoutside of our region The Cityrsquos median household income is $44350 considerably lower than theState of Washington MHI of $64129 and the Seattle MHI of $77351 Our leaders are working tocreate good-paying jobs for our citizens not export them to an already wealthier part of the state Additionally these projects are also funded with local dollars and our citizens expect their money toput their neighbors to work With the above considered the City is seeking

middot DBE goals for the 2018-2020 compliance period for Eastern Washington that arereflective of the current availability of DBE firms in our region

middot The re-inclusion of non-minority women owned DBEs in achieving DBE goals InSpokane non-minority women owned DBEs make up the majority of the availableDBEs And current information shows that women in Spokane overall still lag behindmen in opportunities and wages The Cityrsquos own ldquoGender and Racial Equityrdquo reportfrom 2016 noted that overall working women earned 783 percent of the earnings ofworking men in 2014 down from 827 percent in 2009 We need to lift up all women

middot The development of WSDOT programs to encourage the growth of existing andnew DBEs who can be used on street and highway projects We are encouraged by theproposed mentorproteacutegeacute program to increase the number and capacity of DBEs inEastern Washington Programs that address other barriers such as assistance withcompleting documentation or access to bonding capacity also could aid growth ofDBEs

middot The ability for WSDOT to adjust goals on a project if a selected DBE is unable tocomplete its commitments on a project This would help enable our contractors totake a chance on a new or inexperienced DBE to complete work

middot Recognition of local programs that strive to increase diversity in the work force Forexample the City operates a robust apprenticeship program that requires 15 percentof the labor hours on public works jobs greater than $600000 to be performed byapprentices The apprentice programs in our region are stepping up recruitmentefforts and are specifically seeking to recruit more youth women and minorities intoapprentice slots

As we seek to achieve the goal of increasing participation in street and highway constructionby companies owned by disadvantaged individuals we must also acknowledge that businessdevelopment and growth happens over time We must lay the groundwork now to build abase of DBEs that can help us achieve higher utilization goals over time Sincerely Marlene FeistDirector of Strategic DevelopmentPublic Works amp UtilitiesCity of Spokane

Marlene Feist | City of Spokane | Public Works Director of Strategic Development5096256505 | cell 5097109214 | mfeistspokanecityorg | spokanecityorg

From Hall MattTo WSDOT Disparity StudySubject FW WSDOT News - WSDOT seeks comments on proposed DBE contracting goal for highway projectsDate Friday December 15 2017 11956 PMAttachments WSDOT proposed DBE goal through 2020pdf

From Hall Matt Sent Friday December 15 2017 117 PMTo BayneJwsdotwagovCc Keniston Rick (KenistRwsdotwagov) MolyneKwsdotwagov SusanWilsonclarkwagovSubject WSDOT News - WSDOT seeks comments on proposed DBE contracting goal for highwayprojects Hello Jackie Please see our comments attached regarding the WSDOT proposed DBE goals Thanks for the opportunity to provide comments Matt HallClark County Public Works Washington State Department of Transportation ndash NEWSHeadquarters ndash 310 Maple Park Avenue SE ndash Olympia WA 98504-7314 ndash 360 705-7000 FOR IMMEDIATE RELEASEOct 30 2017 Contact Jackie Bayne Office of Equal Opportunity 360 705-7084

WSDOT seeks comments on proposed DBEcontracting goal for highway projectsComments accepted through Dec 15OLYMPIA ndash Contractors trade and labor organizations small and disadvantaged businessesand all others who may be interested in working with the Washington State Department ofTransportation are invited to comment on the agencyrsquos proposed Disadvantaged BusinessEnterprise goal for Federal Highway Administration contractsDBE goals for transportation projects that receive federal funds represent a percentage of thevalue of work in which minority- and women-owned businesses should participate WSDOTis proposing a 19 percent overall DBE participation goal on Federal Highway Administration-funded projects for federal fiscal years 2018 through 2020Once submitted to FHWA early next year the goal will be effective through Sept 30 2020The purpose of the DBE program is to create a level playing field for firms owned andoperated by disadvantaged individuals wanting to participate in federally assisted highwaytransit and aviation programsConnecting with communitiesWSDOT will host a series of public meetings to provide opportunities for individuals tocomment in person

Spokane

2 ndash 4 pm Tuesday Nov 28WSDOT Eastern Region Headquarters2714 N Mayfair St Spokane

Vancouver

2 ndash 4 pm Wednesday Nov 29WSDOT Vancouver Headquarters11018 NE 51st Circle Vancouver

Seattle

2 ndash 4 pm Thursday Dec 7WSDOT Northwest Region Headquarters15700 Dayton Ave N Shoreline

Other ways to provide commentThose who are unable to attend one of the meetings can participate in a no-cost webinar from230 ndash 430 pm Tuesday Dec 5 Registration for the webinar is required Those interested inparticipating should email DisparityStudywsdotwagovWritten comments can also be submitted by mail or emailJackie Bayne Policy amp Reporting ManagerWashington State Department of TransportationOffice of Equal OpportunityPO Box 47314Olympia WA 98504-7314DisparityStudywsdotwagovDocuments detailing the methodology used for determining the FHWA DBE goals areavailable for review at all WSDOT region headquarters offices and at the TransportationBuilding 310 Maple Park Ave SE Olympia They are also available online atwwwwsdotwagovequalopportunityWSDOT will consider all written comments received through Friday Dec 15 2017 Hyperlinks within this release

WSDOT Region offices wwwwsdotwagovContactofficelocationhtmregion

WSDOT keeps people businesses and the economy moving by operating and improving the statestransportation systems To learn more about what were doing go to wwwwsdotwagovnews forpictures videos news and blogs Real time traffic information is available at wwwwsdotcomtraffic or bydialing 511 Americans with Disabilities Act (ADA) InformationAccommodation requests for people with disabilities can be made by contacting the WSDOTDiversityADA Affairs team at wsdotadawsdotwagov or by calling toll-free 855-362-4ADA (4232)Persons who are deaf or hard of hearing may make a request by calling the Washington State Relay at711 Title VI Statement to Public It is WSDOTrsquos policy to assure that no person shall on the grounds ofrace color national origin or sex as provided by Title VI of the Civil Rights Act of 1964 be excluded fromparticipation in be denied the benefits of or be otherwise discriminated against under any of its federallyfunded programs and activities Any person who believes his or her Title VI protection has been violatedmay file a complaint with WSDOTrsquos Office of Equal Opportunity For additional information regarding Title

VI complaint procedures andor information regarding our non-discrimination obligations please contactOEOrsquos Title VI Coordinator at 360-705-7090 To unsubscribe to WSDOT media releases please reply and type REMOVE in the subject line

This e-mail and related attachments and any response may be subject to public disclosure under state law

From Cochrane EmilieTo WSDOT Disparity StudyCc Eugenis Susan Cowlitz Co Public Works - Brad BastinSubject Proposed DBE GoalsDate Thursday December 14 2017 85006 AMAttachments image002png

DBE Goals - Commentspdf

Please see the attached letter with comments regarding the proposed DBE Goals Ahard copy will be sent out today

Thanks

Emilie CochraneCowlitz County Public Works1600 ndash 13th Avenue SKelso WA 98626360-577-3030 ext 6523

From Michelle WolcottTo Bayne JackieCc Robideau Christopher LSubject RE DBE Contracting Goal CommentsDate Tuesday November 7 2017 65448 AMAttachments image001png

Thank you JackieWhat a relief to know that we have been heard and are not the only small business facing thisstruggle Your email is comforting

Yes you can provide us with additional assistanceLet me introduce my boss and Senior Vice President of Red Plains Professional Chris Robideau

Chris will be your contact from here since I will be leaving the company November 17th As a WA DBE we are ldquoeligible for limited DBE Support Services (SS) funding when funds becomeavailablerdquo When will this happen And are we registered or on a list to receive fundingIs the WSDOT ICR Training a prerequisite for the funding Or just helpful knowledge

Thank you for your time Jackie I will follow through with the training

Michelle Wolcott EIT Quality Control Engineer

2103 NE 129th Street Suite 201 Vancouver WA 98686 Office (360) 448-7999 Fax (360) 258-0274

wwwred-plainscom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Monday November 6 2017 332 PMTo Michelle Wolcott ltMichelleWolcottred-plainscomgtSubject RE DBE Contracting Goal Comments

Hi Michelle

Thank you for your interest in doing business with WSDOT I apologize for the lack of informationyou have come up against in your attempts to attain access to WSDOT ICR program

As you may well know WSDOT has recently completed a state wide agency specific diversity studyAnecdotal comments submitted with the study concur with your experience Not only did somerespondents find it difficult to become prequalified they also commented that the required indirectrate of 110 percent is too low to be profitable These requirements are currently under advisementby WSDOT and new DBE program requirements are currently in the process of seeking public input

As you are an OMWBE certified DBE in Washington State you will be eligible for limited DBE SupportServices (SS) funding when these funds become available At that time funds may become availableto assist you in your struggle to attain ICR eligibility Here is a link to WSDOTrsquos Indirect Cost RateTraining httpswwwwsdotwagovAuditICRTraininghtm If you would like me to find additionaltraining or information please let me know

If I can provide additional assistance of information please let me know

Best Regards

Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Michelle Wolcott [mailtoMichelleWolcottred-plainscom] Sent Tuesday October 31 2017 835 AMTo WSDOT Disparity Study ltDisparityStudyWSDOTWAGOVgtSubject DBE Contracting Goal Comments

HelloI have been in contact with WSDOT for 6 months sharing my disparaging story of beinga small DBE unable to submit SOQs for projects requiring a WSDOT Audited IndirectCost Rate Approval We do not have an in-house accountant and our outsideaccountant has explained to get all the paperwork together for WSDOT would take 40hours of work $9000 annually We cannot justify this cost to submit on a project thatwe may not acquire We have been directed to seek financial assistance from WSDOT Federal SBA andWashington State Office for Women and Minority Owned Enterprises all of whichprovided negative responses

As a DBE business in 11 states we are supporting the 19 incentive for federallyfunded contracts but we are frustrated in the fact that we will not be one of the luckyfew to participateWe have been in business 20 years From our Vancouver Washington office our clientsare the Native American tribes across the country with all contracts federally funded This summer alone the WSDOT ICR Approval has squashed our ability to submit on twoprojects that we were perfectly qualified to performI have attached previous emails to show a sample of who I have been dealing with

Thank you

Michelle Wolcott EIT Quality Control Engineer

ltimage001pnggt

2103 NE 129th Street Suite 201 Vancouver WA 98686 Office (360) 448-7999 Fax (360) 258-0274 wwwred-plainscom

From Michelle Wolcott Sent Monday July 10 2017 954 AMTo Harvey Schatzie ltHarveySwsdotwagovgtSubject RE WSDOT Indirect Cost Rate Process

Good Morning Schatzie

This is Michelle Wolcott from Red We spoke Friday June 30th about the ICRprocess and you were very encouraging I relayed the information to my boss who ishere in Vancouver then he shared with the president bookkeeper and our accountantin Oklahoma We had FAR compliance with Oklahoma DOT in 2015 so we are noteligible for the Safe Harbor Program Our account said our timekeeping system doesnot breakdown the hours and pay in the format WSDOT wants to have it presented andto get the documents in order would take the CPA and an assistant $9000 in paidhours of work It turns out this would have to be annually The other option is to hirean outside CPA firm to do the audit for us at $20000 annually

Our president said in the past we received funding assistance from the Stateof Oklahoma to get our ICR approval Does WSDOT offer any financial assistance for small businesses to reach compliance We are also a DBE in WA I have requested the same information from WA PTAC at theVancouver Chamber of Commerce and from WA Office of Minority and Women OwnedBusiness Enterprises and they both said there was nothing but suggested to askWSDOTThank you for your helpMichelle Wolcott EIT

Hello Michelle sorry but I am not aware of any grants But I was looking at this andthere is a POC at the bottom you may try to discuss the audit issuesHollyHolly BoehmeBusiness Opportunity Specialist | 8(a) Business Development ProgramUS Small Business Administration bull Seattle District Office

Hello Michelle -

Thank you for your email Im not aware of any funding available for thispurpose but do agree its quite a bit for a DBE firm to have as an expense Mostof the firms I work with do a lot more work on the Oregon side so perhaps thereare programs available that I just havent heard of Im copying my colleagueHoly Boehme in our Seattle District Office to see if they are aware of any suchassistance

Holly might there be some small business incubators or other resources availablein WA to help a small firm with the expense of getting a WSDOT AuditedIndirect Cost Rate approval Please reply all with anything you may have

Thank you

Yuri Yoshida Dyson Business Opportunity SpecialistUS SMALL BUSINESS ADMINISTRATION Portland District OfficePhone 503-326-6692 Fax 202-292-3872 wwwsbagovor

From Troy HalbergTo Bayne JackieSubject Re DBE Goal CommentsDate Wednesday December 13 2017 35533 PM

JackieToday was another example of why the goals should not be raised There were 2 jobs which Iwas low on and did not get due to the high goals This is exactly what will happen when thegoals get raised The first job was the 9180 Anacortes Ferry Paving Northeast Electric $244924 and UDBE $318000 Second job was the 9172 SR 9 East Junction Job Northeast Electric $68503 and UDBE $76300

Does this seem like a good way to spend the tax payer money I do not see how we are tosurvive if the goals get to 21

Thanks

Troy HalbergOffice360-225-7004Cell360-931-3990Fax360-225-7001

On Thu Nov 30 2017 at 1131 AM Bayne Jackie ltBayneJwsdotwagovgt wrote

Good Morning Troy

Thank you for taking the time to provide us with your experiences with the DBE Program TheWashington State Department of Transportation takes the public involvement process veryseriously and your comments will be taken into consideration prior to a final decision regardingthe overall DBE program goal

If I can be of further assistance please let me know

Best Regards

Jackie Bayne

Policy and Reporting Manager

WSDOT Office of Equal Opportunity

Work (360) 705-7084

Cell (360) 338-5783

BayneJwsdotwagov

From Troy Halberg [mailtotroyhnellcnet] Sent Wednesday November 29 2017 144 PMTo WSDOT Disparity Study ltDisparityStudyWSDOTWAGOVgtSubject DBE Goal Comments

If these goals are to be set that high this would make us as a non DBE small contractor at amajor disadvantage With these high of goals this is like handing all of the DBE electricalcontractors every job These general contractors will have no option but to use thembecause of the goals This should not go into effect We have been low on several jobs in thepast and have not gotten them do to the goals being 18 When this goes on it puts all therest of us contractors at a disadvantage Please consider the smaller non DBE contractorsthat are looking to survive as well

Thanks

Troy Halberg

Office360-225-7004

Cell360-931-3990

Fax360-225-7001

From Daniel Seydel IITo Bayne JackieCc Key Earl daneiwashingtonorg Nadeem Ismail Mussie Tewelde (mteweldehydro2geotechcom)

graceflyrightaolcom Mary Wenner Watkinson LarrySubject Re Seydel Dan - WSDOT Disparity Study Presentation Public TestimonyDate Friday December 8 2017 30323 PM

Jackie

It was my hope that the comments would be put into record I was also hoping that you wouldnot have to be the one having to formulate responses for each clarification If that is the caseI know you are swamped and will then I just ask my comments be only part of the recordHowever if there is dedicated staff that is going to be compiling and responding to theclarification then the below questions would be the priorities of most interest

These were questions unrelated to the disparity study and hopefully should be doable

1) Do you have any reports on your outcomes from the past 5 years on DBE support servicesand specific key performance measures from previous years funding (ie how many firmsutilized what was the objectives were objectives met did outcomes meet total satisfaction ifnot why next steps what was the firms capacity before and after services were performed (iesales employees bonding if applicable insurance equipment line of credit if applicablenumbertype of customers how are they doing now etc))

2) What other changes or improvements other than allowing DBES to select their own serviceproviders and a staff change will be a part of this new program

3) Was consideration to provide the new mentor protege consultant rather than separating theactivities into support services andor technical assistance

Disparity study clarifications

1) Will WSDOT consider sponsoring legislation to support the policy changes and goalincreases to insure manditory goals wont be necessary

a) If not what measures will you grant primes to operate outside the box (ie entertain bestvalue over low bid modify responsiveness by subs to require adherence to meeting voluntarygoals developing standards around federally funded gccm and other low bid procurementsthat give powers to primes to meet objectives including but not limited to mentor protegerelationships joint ventures bond waiving techniques cash flow assistance material andequipment acquisition manufacturer development specifications that have only DBES orinclude equal number of DBES as non DBES as approved installers etc)

2) Will the disparity study consultant be available for implementation or information gatheringfrom other regions

5) Will WSDOT be hiring more diverse staff amp professionaltechnical service providers inother departments outside OEO to insure policies commitments and evaluations areperformed in manner that improves diversity that reflects the communities WSDOT serves bythoughtful and legal efforts increase participation thus creating successful outcomes includingpartnerships and collaborations

Thank you and Merry Christmas

Hi Dan

Thank you for providing such thoughtful public comments questions and testimony

Regarding your public testimony below - I do not believe I am not able to answer questions ifthey are public comments Please let me know what part of this email you would likeclarification on and what part you would like considered public testimony

I appreciate your thoughtful consideration of WSDOTrsquos implementation of our civil rightsprograms

Best Regards

Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

DIDaniel Seydel IIFyi Daniel J Seydel II Platinum Group LLC 2064060844 f) 2062999934wwwplatinumbusinessgroupcom Small Business is the Answer FREE TRAINING FORENTREPRENEURS amp JOB SEEKERS - Polish your skills or make your firm standout thanksto the EntrepreneurialThu 233pDI

Daniel Seydel IIThu 1272017 1123 AMInbox Sent ItemsShow all 7 recipientsTobaynejwsdotwagov ltBayneJwsdotwagovgtJackie

Per your request below are my questions and comments some of which were verbally sharedyesterday

Congratulations on receiving the blessing of additional technical assistance dollars andcompleting the DBE Disparity Study per your report

1) Do you have any reports on your outcomes from the past 5 years on DBE support servicesand specific key performance measures from previous years funding (ie how many firmsutilized what was the objectives were objectives met did outcomes meet total satisfaction ifnot why next steps what was the firms capacity before and after services were performed (ie

sales employees bonding if applicable insurance equipment line of credit if applicablenumbertype of customers how are they doing now etc))

2) What other changes or improvements other than allowing DBES to select their own serviceproviders and a staff change will be a part of this new program

3) Was consideration to provide the new mentor protege consultant rather than separating theactivities into support services andor technical assistance

Disparity study clarifications andor comments

1) Will WSDOT consider sponsoring legislation to support the policy changes and goalincreases to insure manditory goals wont be necessary

a) If not what measures will you grant primes to operate outside the box (ie entertain bestvalue over low bid modify responsiveness by subs to require adherence to meeting voluntarygoals developing standards around federally funded gccm and other low bid procurementsthat give powers to primes to meet objectives including but not limited to mentor protegerelationships joint ventures bond waiving techniques cash flow assistance material andequipment acquisition manufacturer development specifications that have only DBES orinclude equal number of DBES as non DBES as approved installers etc)

2) Will the disparity study consultant be available for implementation or information gatheringfrom other regions

3) What lessons did WSDOT learn that it did not know from the other study(s)

4) What would WSDOT do different (ie scope time line process approach etc)

5) Will WSDOT be hiring more diverse staff amp professionaltechnical service providers inother departments outside OEO to insure policies commitments and evaluations areperformed in manner that improves diversity that reflects the communities WSDOT serves bythoughtful and legal efforts increase participation thus creating successful outcomes includingpartnerships and collaborations

Daniel J Seydel IIPlatinum Group LLC 2064060844f) 2062999934wwwplatinumbusinessgroupcom

Small Business is the Answer

FREE TRAINING FOR ENTREPRENEURS amp JOB SEEKERS - Polish your skills or makeyour firm standout thanks to the Entrepreneurial Institute of Washington

httpswwwyoutubecomchannelUCKL5YeVxL29HnNxqnb6hmXA

LIKE US on FaceBook if an Active Professional Development workshop provided by EIW

Construction University helps your firm or has benefited you

httpswwwfacebookcomEIWashingtonref=hl

From Bayne Jackie ltBayneJwsdotwagovgtSent Friday December 8 2017 10139 PMTo Daniel Seydel IICc Key Earl daneiwashingtonorg Nadeem Ismail Mussie Tewelde(mteweldehydro2geotechcom) graceflyrightaolcom Mary Wenner Watkinson LarrySubject RE Seydel Dan - WSDOT Disparity Study Presentation Public Testimony Hi Dan Thank you for providing such thoughtful public comments questions and testimony Regarding your public testimony below - I do not believe I am not able to answer questions if theyare public comments Please let me know what part of this email you would like clarification on andwhat part you would like considered public testimony I appreciate your thoughtful consideration of WSDOTrsquos implementation of our civil rights programs Best Regards Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov From Daniel Seydel II [mailtodanplatinumbusinessgroupcom] Sent Thursday December 7 2017 1123 AMTo Bayne Jackie ltBayneJwsdotwagovgtCc Key Earl ltKeyEwsdotwagovgt daneiwashingtonorg Nadeem Ismailltnipaintingearthlinknetgt Mussie Tewelde (mteweldehydro2geotechcom)ltmteweldehydro2geotechcomgt graceflyrightaolcom Mary Wennerltmwenn0108yahoocomgtSubject Seydel Dan - WSDOT Disparity Study Presentation Public Testimony Jackie

Per your request below are my questions and comments some of which were verbally sharedyesterday

Congratulations on receiving the blessing of additional technical assistance dollars andcompleting the DBE Disparity Study per your report

1) Do you have any reports on your outcomes from the past 5 years on DBE support servicesand specific key performance measures from previous years funding (ie how many firmsutilized what was the objectives were objectives met did outcomes meet total satisfaction ifnot why next steps what was the firms capacity before and after services were performed (iesales employees bonding if applicable insurance equipment line of credit if applicablenumbertype of customers how are they doing now etc))

2) What other changes or improvements other than allowing DBES to select their own serviceproviders and a staff change will be a part of this new program

3) Was consideration to provide the new mentor protege consultant rather than separating theactivities into support services andor technical assistance

Disparity study clarifications andor comments

1) Will WSDOT consider sponsoring legislation to support the policy changes and goalincreases to insure manditory goals wont be necessary

a) If not what measures will you grant primes to operate outside the box (ie entertain bestvalue over low bid modify responsiveness by subs to require adherence to meeting voluntarygoals developing standards around federally funded gccm and other low bid procurementsthat give powers to primes to meet objectives including but not limited to mentor protegerelationships joint ventures bond waiving techniques cash flow assistance material andequipment acquisition manufacturer development specifications that have only DBES orinclude equal number of DBES as non DBES as approved installers etc)

2) Will the disparity study consultant be available for implementation or information gatheringfrom other regions

3) What lessons did WSDOT learn that it did not know from the other study(s)

4) What would WSDOT do different (ie scope time line process approach etc)

5) Will WSDOT be hiring more diverse staff amp professionaltechnical service providers inother departments outside OEO to insure policies commitments and evaluations areperformed in manner that improves diversity that reflects the communities WSDOT serves bythoughtful and legal efforts increase participation thus creating successful outcomes includingpartnerships and collaborations

Thank you for your hard work

Daniel J Seydel IIPlatinum Group LLC2064060844f) 2062999934wwwplatinumbusinessgroupcom

Small Business is the Answer

FREE TRAINING FOR ENTREPRENEURS amp JOB SEEKERS - Polish your skills or makeyour firm standout thanks to the Entrepreneurial Institute of Washington

httpswwwyoutubecomchannelUCKL5YeVxL29HnNxqnb6hmXA

LIKE US on FaceBook if an Active Professional Development workshop provided by EIWConstruction University helps your firm or has benefited you

httpswwwfacebookcomEIWashingtonref=hl

From Erin EhlingerTo Bayne JackieSubject Support for WSDOTs proposed DBE goalDate Wednesday December 13 2017 115417 AM

I am writing to support the WSDOT recommended DBE Goal for FHWA contracts of 190 I also want to express my appreciation for the thoroughness of the WSDOT Disparity study and howthe study disclosed the disparity in WSDOT contracts that do not have a DBE or WBE goal ndash furtherreinforcing that all women-owned firms and minority owned firms face equity issues I remain concerned with the methodology required by the Code of Federal Regulations and case lawbecause of the dependence on the availability of firms in the calculation An unintendedconsequence of removing either gender or race from the goal is that many of these firms would goout of business the availability decreases and the formula then results in a smaller DBE goal Pleaselet me know how I can help influence a change to the CFR Thank you Erin Ehlinger

Erin Ehlinger PEPresident

24036 SE 47th StSammamish WA 98029erinehlingersmartcitytrafficcom425-221-0320

From Jackie EtterTo WSDOT Disparity StudySubject Why we need mandatory goalsDate Friday December 1 2017 61859 PM

As a DBE participating in bidding process I have found that regardless of the language which claims to insurethat disadvantaged business enterprises shall not be discriminated against the only way to ensure that this does nothappen is by mandating affirmative action goals Having been overlooked time and time again because of my gender when I have submitted bids that are verycompetitive with other bidders is very frustrating I have had many instances of companies using my price to getmy non DBE competitors to lower theirs The voluntary or laudatory DBE goals do nothing to ensure a level playing fieldThe only way to ensure non-discrimination is through mandatory goals

Jackie EtterWest Star Construction of Spokane

Sent from my iPhone

From Claudia HirscheyTo Key Earl Bayne JackieSubject WSDOT DBE Goal - Comment in supportDate Tuesday December 12 2017 61937 PM

Dear Earl and Jackie The WSDOT recommended DBE Goal for FHWA contracts of 190 is a small and important increasethat can further achieve equity in WSDOTFHWA contracting I am in support of the 19 DBE Goal I also want to express my appreciation for the thoroughness of the WSDOT Disparity study and howthe study disclosed the disparity in WSDOT contracts that do not have a DBE or WBE goal ndash furtherreinforcing that all women-owned firms and minority owned firms face equity issues I remain concerned with the methodology required by the Code of Federal Regulations and case lawbecause of the dependence on the availability of firms in the calculation An unintendedconsequence of removing either gender or race from the goal is that many of these firms would goout of business the availability decreases and the formula then results in a smaller DBE goal Sincerely Claudia S Hirschey PETransportation Consulting Servicesclaudiahirscheycomcastnethttphirscheytcscom2068564988 Mobile

From Nate ThomasTo WSDOT Disparity StudySubject WSDOT Proposes DBE goal of 19Date Thursday December 7 2017 42720 PM

The WSDOT should look into similar ways the Federal Gov has handled the equal opportunity forthose that fall under the DBE status and set aside specific projects for the DBErsquos and moreimportantly UDBErsquos so these companies have better chance of landing contracts Maybe a lot 10 ofthe DBE goal to set aside for only DBEs and other 9 goal met as it is done currently with COA onlarger contracts Nate ThomasSenior EstimatorD 5095688085 | C 5099941156331 North Fancher Road | Spokane WA | 99212

The information contained in this email including any attachments is confidential and may beprivileged It is intended only for the person or entity to which it is addressed and no waiver isintended by sending this email If the reader is not the intended recipient you are herebynotified that any review retransmission dissemination or other use of or taking any action inreliance upon this information is strictly prohibited If you have received this email in errorkindly notify the sender by reply email and delete the original message from any computerThank You

From Brian FujiiTo WSDOT Disparity StudySubject WSDOT propsed DBE GoalsDate Thursday December 7 2017 110638 AM

Good morning Jackie

I wanted to comment on WSDOTs proposed DBE goal to 19 I believe WSDOTs plan toincrease the overall DBE goal to 19 will provide greater opportunities for DBE contractorsin different disciplines to participate in federally funded contracts

Without the new DBE requirement and with Proposition 200 there are limited opportunitiesfor DBE contractors in disciplines different than the typical trucking flagging and rebar Inaddition there are no incentives for general contractors to go out beyond the usual truckingflagging and rebar DBE subcontractors

Increasing the DBE goals will provide opportunities for different DBE contractors in differentdisciplines to participate in WSDOT federally funded projects

Thank you for your time

RespectfullyBrian FujiiPresident Subsurface ConstructionP 2063836478F 2069604639MDBE 4M0024998

From Forman StephanieTo Bayne JackieCc Millar Roger christinenhanmailhousegov Claudia Hirschey Sarah Corbin Jiang Yingle

efaulknerenviroissuescom Diana Giraldo Kelly CheesemanSubject WTS - Disparity Study Comment LetterDate Friday December 15 2017 71020 PMAttachments 2017_Dec 15_WTSCommentLetter_WSDOT DBE Goalpdf

Dear Ms Bayne Please find our attached letter which summarizes the WTS Puget Sound Chapterrsquos support foradvancement of women in transportation and our comment letter regarding the recent DisparityStudy Please feel free to contact me if you have any questions or would like to discuss Sincerely Stephanie S Forman PEWTS Puget Sound President Transportation Project Manager

929 108th Avenue NE Suite 1300Bellevue WA 98004D 4254681548 M 2062291745stephanieformanhdrinccom

December 15 2017

Jackie Bayne Policy and Reporting Manager

Office of Equal Opportunity

Washington State Department of Transportation

PO Box 47314

Olympia WA 98504-7314

Dear Ms Bayne

On behalf of the Puget Sound Chapter of Womenrsquos Transportation Seminar (WTS) we would

like to thank the Washington State Department of Transportation for presenting to our

organization the DBE Disparity Study results We very much appreciated the presentation by Earl

Key Director of WSDOTrsquos Office of Equal Opportunity Teresa Berntsen (Director Office of Minority

and Womens Business Enterprises) as well as Leslie Jones (Director Sound Transit Office of Small

Business Development and Labor Compliance)

Following a review of the WSDOT Disparity Study and as a result of consultation with WTS

International we would like to provide WSDOT with our comments for your consideration

As you know WTS is an organization focused exclusively on attracting retaining and advancing

women in transportation By the year 2018 there will be thousands of vacancies in the

transportation industry for qualified professionals and while women account for more than half of

the worldrsquos workforce they are a very small minority in transportation disciplines

We are pleased that the outcome of the 2017 Disparity Study that recognizes the on-going barriers

for DBEs including women-owned businesses in transportation The WSDOT recommended DBE

Goal of 190 is a small and important increase that can further achieve equity in WSDOTFHWA

contracting We are also pleased that the 2017 Disparity Study has documented the disparity in

WSDOT contracts that do not have a DBE or WBE goal ndash further reinforcing that all women-owned

firms and minority owned firms face equity issues We are encouraged that the WSDOT has asked

FHWA to rescind the 2016 waiver

While WTSrsquo mission is specific to the advancement of women we are a race-neutral organization To

this end we are also deeply concerned about the underutilization of minority owned firms There is

no equity or ldquofair playing fieldrdquo without equity for all gender and races We remained concerned with

the methodology required by the Code of Federal Regulations and case law because of the

dependence on the availability of firms in the calculation An unintended consequence of removing

either gender or race from the goal is that many of these firms would go out of business the

availability decreases and the formula then results in a smaller DBE goal This consequence is

contrary to our mission

We look forward to our continued participation in WSDOTrsquos DBE advisory group we are anticipating

notice that the 2016 waiver has been rescinded and how we can work together to continue

advancing minority and women-owned firms in the transportation field

Sincerely

WTS Puget Sound Chapter

Stephanie Forman

President

C Roger Millar Secretary WSDOT

C Representative Adam Smith 9th Congressional District Washington co Christine Nhan

WTS Puget Sound Chapter

PO Box 3461

Bellevue Washington 98009

From Dave Gent - WAPATo Bayne JackieCc Tom GaetzSubject WAPA Public Comments - RE WSDOT FHWA Disadvantaged Business Enterprise Proposed GoalDate Friday December 15 2017 14119 PMAttachments 12152017 DBE Proposed Goal - WAPA Public Comments Letterpdf

Good afternoon Jackie Please find attached WAPArsquos ldquofor the public recordrdquo comments with respect to WSDOTrsquos proposedDBE Goals FHWA funded work I assume that the Master DBE Directory was not sent to you this week so as a result we were notable to review the directory before the close of the public comment period That fact is noted withinour comment letter Thank you for your efforts Have a good weekend

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Friday December 8 2017 1219 PMTo Dave Gent - WAPA ltdavegentasphaltwacomgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hello Dave WSDOT did not take possession of this directory as part of our review process We will provide youwith the records without submitting a formal request However we need to get them from theconsultant first I will hopefully have them to provide next week I will keep you updated on therequest Have a nice weekend Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal Opportunity

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

December 15 2017

Jackie Bayne Policy Manager WSDOT Office of Equal Opportunity Delivered via e-mail to BayneJwsdotwagov RE Public Comment (as requested) to Proposed Overall DBE Goal for the FHWA (2018 ndash 2020) Ms Bayne Thank you for your presentation via webinar on December 5 2017 outlining WSDOTrsquos evaluation process used to determine the proposed overall DBE goal for the FHWA Thank you also for the Colette Holt amp Associates (CHA) DBE Advisory Group presentation made on September 14 2017 Both presentations helped to distill the findings of the 2017 Disparity Study produced by CHA In response to Earl Keyrsquos initial informal request to comment on the proposed overall DBE goal made during the DBE Advisory Committee teleconference held on October 12th we provided a list of reasons that we believe justify a lower DBE goal than is now being proposed Our initial response to Mr Keyrsquos request did not serve to influence WSDOT and the current proposed goal remains at 190 The arguments provided on October 12th against the significant increase in the proposed DBE goal (versus the previous goal and recent historic DBE participation) are repeated and supplemented below and will serve as the Asphalt Pavement Associationrsquos (WAPArsquos) official public comments

In concert with WSDOT and the OWMBE WAPA and the construction firms that WAPA represents have demonstrated a commitment to the principals of equal opportunity for all ldquoready willing and ablerdquo firms for the entire history that our DBE program has been in place WAPA has continuously demonstrated its commitment to the goals of the DBE program and for increasing the representation of disadvantaged groups within our industry as both workers and owners of firms Please recognize that WAPArsquos oversight and critique of the DBE program has always attempted to balance the principals of fair and open competition with the practical aspects of the low bid compressed schedule high performance standards demanded within the WSDOT marketplace Our comments below are meant to enhance WSDOTrsquos and OWMBErsquos understanding of the market and to hopefully have WSDOT fully consider all of the dynamics that are at play when proposing its Triennial DBE goal for FHWA projects Current DBE Capacity vs Historically Robust Market In advocating for a realistic and defensible DBE goal it has always been WAPArsquos position that it is paramount that the realities of the marketplace and true certified DBE subcontracting capacity should be a primary standard While a ldquostretchrdquo goal may appear to be progressive on its face it comes with consequences for all of the parties involved in the WSDOT federal aid contracting arena To balance the dynamics of the WSDOT contracting system the DBE goal should be tempered with the realities of the market and with a true measure of the underlying effectiveness of the DBE support services available to contractors

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 2 of 6 The first point of fact that has not been given any apparent consideration by WSDOT in its evaluation of the current capacity of certified DBErsquos is that there is an historically robust workload scheduled to be performed in the 2017 through 2022 time-frame particularly in the Puget Sound ldquoEverett to Olympiardquo corridor By WSDOTrsquos own estimates (see Attachment A) public works construction project starts in the 2018 to 2022 time-frame in this region will exceed $333 billion (B) counting the work projected from just five public entities WSDOT will be taking a decidedly ldquoback seatrdquo role during this period to Sound Transit which will have construction project starts of $226B vs WSDOTrsquos projected volume of $67B WSDOTrsquos summary publication titled Washington State Department of Transportations Proposed Federal Highway Administration Triennium Disadvantaged Business Enterprise Goal Federal Fiscal Years 2018-2020 states correctly that ldquoIncluded among the types of evidence that must be considered are the current capacity of DBEs to perform work on WSDOTrsquos federally-assisted contracts as measured by the volume of work DBEs have performed in recent yearshelliprdquo (Step Two Adjustment discussion) With the Sound Transit program being over 300 larger than the total WSDOT program in this region a sober assessment of true certified DBE capacity in the next three years needs to be considered by WSDOT If the huge construction boom over the next five years does not prompt a Step Two Adjustment then it becomes obvious that the realities of the market are being ignored by WSDOT for DBE goal setting Put another way if the 2018 through 2022 level of contracting activity does not warrant a goal adjustment what will DBE Access Barriers Not Yet Addressed The CHA 2017 Disparity Study points out multiple recommendations in Section VII that impact DBE participation and access to the market Assessments relating to those impacts and the state of maturity in addressing the CHA recommendations should be considered when assessing the DBE goal Many of the CHA recommendation have not been adequately addressed at this point in time Some of the prime examples are listed below Increase Certification and Expertise ndash The Disparity Study as explained to us includes all minority- (MBE)

and women-owned (WBE) firms that could be readily identified that perform work within Washington State and that perform work within the NAICS code framework CHA developed to cover WSDOT project work During the various presentations relating to the Disparity Study WSDOT representatives said that outreach to currently non-certified MBE amp WBE firms has increased and that WSDOT aspires to bolster its list of certified firms in the future but this effort is just beginning and the success of the effort needs to be means tested against the broader population of MBE amp WBE firms included in the CHA base line evaluation As the Disparity Study uses a much broader population of MBE WBE contractors to arrive at its conclusions (both non-certified firms and firms too large for certification) it follows that the calculated DBE proposed goal is overstated to include capacity that does not currently exist within WSDOTrsquos certified DBE framework Unless OMWBE is experiencing sudden and unprecedented success in recruiting new MBEWBE firms the DBE goal should be adjusted downward to recognize that the ldquoready willing and ablerdquo contractors that WSDOT has certified is only a subset of the total MBEWBE contracting population used in the Disparity Study evaluation

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 3 of 6

Until the promised WSDOT outreach registration efforts result in a substantial increase in available certified DBE firms it is premature to count the entire population of minority- and women-owned contractors as available to participate in WSDOT contracting It is unreasonable for WSDOT to project availability capacity using the entire MBEWBE population when only its currently truncated list of certified firms is acceptable to count toward the DBE goal

A corollary to the Increase Certification and Expertise discussion above is that the calculation of the Base Figure evidently includes the broadest practical population of MBE and WBE firms identifiable (without a review of the CHA Master DBE Directory which has not been supplied prior to the close of the public comment period the scope of the directory cannot be ascertained) If this directory includes a large population of MBEWBE firms that are not certified or are too large to be certified then the Base Figure calculation should be adjusted to reflect that certified DBE firms are a fraction of the total MBEWBE firms used to arrive at the 19 suggested DBE goal With respect to the CHA Master Directory it is our understanding the WSDOT was not given the directory as part of its evaluation of the Disparity Study and it follows that it did not evaluate the proposed DBE goal in the context of the CHA Master DBE Directory In our opinion an informed decision on adjusting the CHA baseline goal calculation can only be done after an extensive evaluation of the CHA Master DBE Directory If this has not been done WSDOT has not exercised due diligence in evaluating the context and underpinnings of the CHA Disparity Study and a certified DBE Triennium goal proposal to the FHWA is premature Increase Contract ldquoUnbundlingrdquo ndash If this proposed strategy (suggested by the CHA Study) is undertaken

certified DBE Subcontractors currently available will be engaged as Prime Contractors and the value of their prime contracts will bolster the overall percentage of certified DBE contracting but a systematic effort and strategy to ldquounbundlerdquo has not been articulated by WSDOT The key question of how this effort can be accomplished without increased cost to the taxpayers and increased inconvenience for the traveling public As noted in the CHA study (page 129 final paragraph) ldquoUnbundling must be conducted however within the constraints of the need to ensure efficiency and limit cost to the taxpayersrdquo As of this writing no overarching strategy for further unbundling with proper accountability has been articulated by WSDOT to the DBE Advisory Group

Review Insurance and Experience Requirements ndash Impediments to certified DBE participation due to

necessary insurance and experience standards cannot be solved by the prime contracting community Unless and until WSDOT puts together programs to address the burden of the substantial risks shouldered by Prime Contractors on WSDOT contracts barriers for streamlined utilization of certified DBE firms will continue to exist These market driven barriers will continue to dampen the availability of certified DBE Subcontractors that are able to perform within WSDOTrsquos strict criteria without unduly transferring risk to the Prime Contractor

Better Partnering to Overcome DBE Failures to Perform ndash Prime Contractors are held fully responsible to maintain the project schedule and are subject to project liquidated damages even when they may be struggling to deal with Subcontractor performance issues It is well-established that replacing a certified ldquocondition of awardrdquo (COA) DBE Subcontractor is very onerous and likely very costly to the Prime Contractor Unfortunately the imposition of strict and often counter-productive commercially useful function (CUF) rules often compound this issue as Prime Contractors cannot help COA DBE Subcontractors work through capacity expertise or time-related issues that impact timely performance

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 4 of 6

WSDOT needs to be a much better partner in the process of dealing with under-performing or non-performing certified DBE Subcontractors The current standard operational procedure places all of the exposure for non-performance onto the Prime WSDOT does not have an equitable system to account for non-performing or under-performing certified DBE Subcontractors hired as a condition of award (COA)

Performance Information and Training ndash Commercially useful function rules (CUF) and the lack of clear benchmark definitions for good faith effort (GFE) standards remain barriers for improving accountability within the DBE system and in turn lead to distorted DBE participation rates These items remain amorphous due to lack of training or lack of historic information Chronic uncertainty exists regarding both of these items Until WSDOT changes and improves its approach to provide transparency and certainty for both the prime bidding amp subcontracting parties true certified DBE capacity will continue to be masked and the resultant higher subcontracting costs associated with a distorted marketplace will continue to be hidden

WAPA respectfully suggests that simply adding an ldquoEstimated DBE Subcontract Premiumrdquo line to the current DBE bid forms would help to establish benchmarks that could begin to be used to ldquomeans testrdquo good faith efforts If this information had been gathered over the last 20 years of the DBE program meaningful GFE standards could have been developed and could be in place today

An in-depth review of CUF standards would also provide clarity For instance it is unclear why force account items performed by certified DBEs are currently counted at only 50 of the value of the work How was this benchmark established Has it been reviewed since imposed Did it ldquosolverdquo whatever inequity WSDOT was trying to address Better clarity may lead to more expanded opportunities for certified DBE Subcontractors

Enhanced Supportive Services and Business Development Programs ndash Unless and until stronger programs of these types are shown to be effective in boosting certified DBE business development increased DBE participation due to stronger business acumen should not be relied upon when setting the new DBE goal

Does OMWBE have a reasonable expectation that future plans for enhanced and expanded programs will be more successful than those employed in the past Assuming that certified DBE Subcontractors will be better prepared to deal with the WSDOT contracting environment than in the past should not be relied upon to boost DBE participation goals Especially troubling were the multiple references within the CHA report highlighting that DBEs believe that the staff at OMWBE lack a deep knowledge about the highway construction industry (eg Study page 129 2nd paragraph) Does OMWBE have a path forward that will address this issue and thus improve supportive services impacts

Develop a Bonding and Financing Program for SBEs ndash This is completely outside of the prime contracting

communityrsquos scope of influence WSDOT must find a way to institute changes that both protect the taxpayer and help increase certified DBE bonding capacity and access to financing ndash very large hurtles To assume that these hurtles can effectively be overcome within the 2018 ndash 2020 time frame when they have been chromic issues for the past 20 plus years of DBE program development is not rational

A helpful innovation would be for WSDOT to underwrite performance and payment bonds for certified DBE firms or to create promote a system that helps certified DBE firms obtain private bonding Bridging the gap to address capital access and performance risks (bonding) must be championed by WSDOT

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 5 of 6

Base Figure Adjustment to Address Available Subcontract Volume and DBE Prime Contracts It is a fact that mid- to large-sized MBEWBE firms that compete both as Prime Contractors and as Subcontractors are not eligible to be OMWBE certified DBEs Further the current amount of contract unbundling for greater DBE access to WSDOT prime contracting (see below) accounts for a very low dollar volume of prime contracts performed by certified DBEs Finally by specification (WSDOT standard specification 1-081) Prime Contractors are obligated to perform 30 of the total volume of the work (less specialty work) or stated another way a maximum of 70 of the dollar volume on WSDOT projects is typically available to award to subcontractors These market dynamics are NOT addressed in the Disparity Study A responsible DBE goal made absent of these facts should not be implemented A reasonable adjustment to the proposed 19 DBE goal is presented below

bull The percent of WSDOT prime contracts awarded to certified DBE firms is likely less than 5 by total WSDOT

contract volume Assuming this approximation is valid (likely very conservative) then the amount of WSDOT contract work available to certified DBE firms via subcontracting should be adjusted to account for the factors outlined above The Base Figure (19) should be adjusted to recognize that a 70 maximum subcontractor participation is available (in the numerator) and to account for the assumed 5 certified DBE prime contracts in the denominator Reasonable Base Figure Adjustment 19 (proposed) x 70 subcontracts available divide 95 of Non-Certified DBEs as Prime Contract Volume = 190 x 0737 = 140 adjusted goal This is an adjustment based on the practical dynamics of the WSDOT contracting system and it represents a more realistic look at the true subcontract volume that is available for Prime Contractors to award to certified DBE firms

Conclusions

Until the items listed above are addressed and in place it is not reasonable to believe that DBE goals can be increased by nearly 163 (from 117 to 190) When the projected robust public works contracting market is appropriately considered the true availability of certified DBE Subcontractors for WSDOT contracts will be truncated due to demand across all public works sectors With multiple strong public works programs competing for a limited population of certified DBEs the ability to meet increased WSDOT DBE goals will be severely challenged Without very clear concise and transparent good faith effort rules the ability to address DBE goals that greatly overestimate true near term certified DBE capacity will result in non-attainment bid day chaos failures to perform andor rapidly increased pricing

The clear conclusion is that at this point in time under the current circumstances without effectively instituted new programs rules procedures that could enhance the certified DBE programrsquos overall effectiveness we believe that the DBE goal should remain at or near 12 As OMWBE documents and demonstrates its future successes in improving access and eliminating capacity barriers only then should the DBE goal be re-evaluated and increased

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 6 of 6

In closing please remember that it is rare that the contracting community is asked our opinion with respect to the WSDOTrsquos DBE policies and so this letter is somewhat a vehicle to highlight collective concerns It is our belief that the majority of the Prime Contractors in Washington state support the objective of creating a level playing field for ready willing and able DBEs

If the level playing field is not yet possible in the absence of the DBE program then the key is to set realistic goals that recognize reflect and address the hard realities and market dynamics imposed by WSDOTrsquos bedrock environment of awarding contracts to the lowest cost responsible and responsive Contractor

Respectfully submitted Washington Asphalt Pavement Association

David Gent Tom Gaetz Executive Director Senior Advisor

Attachment A ndash WSDOT Central Puget Sound Public Works Contracting Projection 2018 - 2022

Con

stru

ctio

n Pr

ojec

t Sta

rts

2018

-202

2S

ound

Tra

nsit

$22

6 B

SD

OT

$08

B

Tran

sit

amp O

ther

s$1

7 B

WS

DO

T$6

7 B

Por

t of

Sea

ttle

$15

B

TOTA

L$3

33

B

Source N

ov 1

9 2

017

pres

enta

tion

to W

APA

Ann

ual M

eetin

g

Attachment A

Work (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Dave Gent - WAPA [mailtodavegentasphaltwacom] Sent Thursday December 7 2017 144 PMTo Bayne Jackie ltBayneJwsdotwagovgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hi again Jackie Irsquom fine thanks and hope you are the same Interesting The Master DBE Directory is the basis for and integral to the conclusions of the DisparityStudy Is it not then part of the information needed to fully review and comment on the DisparityStudy Was it not provided by CHA to WSDOT for review We are trying to fully understand thestudy and if this directory was part of the study why would it need to be obtained by a publicrecords disclosure It should be in the public domain and not restricted from ease of access If you are sure that a public records request is needed Irsquoll start that process but we will need tonote that point of fact when we submit our public comments If you are able to reconsider please let me know Respectfully

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Thursday December 7 2017 126 PMTo Dave Gent - WAPA ltdavegentasphaltwacomgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hello Dave I hope you are doing well

That information would likely be obtained through a public disclosure request Best Regards Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Dave Gent - WAPA [mailtodavegentasphaltwacom] Sent Thursday December 7 2017 113 PMTo Bayne Jackie ltBayneJwsdotwagovgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Jackie Can you please provide an electronic file or provide a weblink for the Master DBE Directory thatColette Holt amp Associates developed for the WSDOT Disparity Study 2017 (first referred to on Page 8of the Disparity Study) I did not see a link to this Master DBE Directory within the study Thanks

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Friday October 27 2017 1118 AMTo Kenyon Wendy ltKenyonWwsdotwagovgt Adams E W ltewadamssystemsclcomgtAdekoyaAndrew ltandrewadekoyabccomgt AlyssaBalllegwagov Anindita Mitraltamitracrea-affiliatescomgt APRISeattlehotmailcom Armstrong CharlotteltCharlieAatgwagovgt Ato Apiafi Architects PLLC ltatoaatoapiaficomgt benzfanwaorgBerntsen Teresa (OMWBE) ltTeresaBomwbewagovgt Billingsley Andrealtbillinawsdotwagovgt Bramlet Erica ltEricaBramletlegwagovgt Brooks Julius

ltBrooksJwsdotwagovgt Brown Jason ltjbrownldccorpcomgt bwallacenwlaborersorgCamden Allison ltCamdenAwsdotwagovgt carlllivingstongmailcom Cerda OscarltCerdaOwsdotwagovgt Christopher Chris ltChristCwsdotwagovgt ckerneycaawagovdanplatinumbusinessgroupcom davegentasphaltwacom David BalltDavidsignsnowmillcreekcomgt Davis Khalia ltDavisKhwsdotwagovgt Davis RaShelle (GOVltrashelledavisgovwagovgt Dayton Jo ltDaytonJwsdotwagovgt ddhondtagcwacomDebbieDriverlegwagov Dennis ltdennisahlkiewitcomgt dmcleodnwlaborersorgdrart6651gmailcom Duncan Enid lthigradeincgmailcomgt EltonltEltonwashingtonstatetruckingcomgt eprincecaawagov flemosldccorpcomfmartineznwmtnmsdcorg geoffshookatkncom glovelady ltgloveladyexcelglovescomgtGrabow Katie ltkgrabowsystemsclcomgt Guilfucci Jackie ltJackieGuilfucciskanskacomgt HealyLinda ltHealyLwsdotwagovgt Higginbotham Breanne ltHigginBwsdotwagovgt HirscheyClaudia ltclaudiahirscheycomcastnetgt Holt Colette ltcoletteholtmwbelawcomgt Huff JohnltHuffJwsdotwagovgt Iniguezchawagov JacksonMaynardlegwagov Jimmy Matta(jmattaalcantarassoccom) ltjmattaalcantarassoccomgt kellywickergovwagov Key EarlltKeyEwsdotwagovgt Kirk Jon ltjkirkwhhnfscomgt Kris Purrier ltkpurrierhwageocomgtleewabuildingtradesorg lesliejonessoundtransitorg Liz Evans ltlevansagcwacomgt LopezErin lterinlopezdeswagovgt Martha Cerna ltMarthaPSLCCORGgt Martin-Arnold EdwinaltMartinEwsdotwagovgt Mary Lerdahl ltmarydbeelectricinccomgt McCarty Hannahlthannahmccartylegwagovgt Melissa L Boyles ltmelissaboylesmwbelawcomgt Metcalf KeithltMetcalKwsdotwagovgt michaelicapaawagov Michelle ltMichelleTTCC26netgt MillarRoger ltMillarRwsdotwagovgt Nakamura Jason ltjasonnakamura1-alliancecomgtNavarroLportseattleorg olliepmt-solutionscom pastorbanksesbctacomacom PatrickHughes ltphugheshughesgroupbizgt Petersen Jodi (FHWA) ltJodiPetersendotgovgtrabbottliunaorg rcarmsteadgmailcom ricemportseattleorg Riley D ltdrileylydigcomgtSeling ltSelingjpfranciscomgt sherryharrisergosynchcom Stell MellodyltStellMwsdotwagovgt terigobintulaliptribes-nsngov timwilliamfactorycom tinaterra-tdicom tkellyldccorpcom tomgaetzmsncom vcollinsacec-waorgverlenejazzmsncom Wang Albert ltWangAatgwagovgt Waugh GregltGregWMaxKuneyComgt Yates Henry ltYatesHWSDOTWAGOVgtCc Tom Gaetz lttomgaetzmsncomgt Dave Gent - WAPA ltdavegentasphaltwacomgt VanCollins ltvcollinsacec-waorggt Daniel Seydel II ltdanplatinumbusinessgroupcomgt MaynardJackson ltJacksonMaynardlegwagovgt Carl Livingston ltcarlllivingstongmailcomgt DonMcLeod ltdmcleodnwlaborersorggt JIMMY MATTA ltjimmymattamsncomgt Prince Ed(CAAA) lteprincecaawagovgt David DHondt ltddhondtagcwacomgt Irene Reyesltgloveladyexcelsupplycompanycomgt McDaniel Craig ltMcDaniCwsdotwagovgtsherryharrisergosynchcomSubject WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Good morning On Monday October 30th WSDOT will be releasing the proposed overall Federal HighwayAdministration Disadvantaged Business Enterprise goal attached for public comment throughDecember 15 2017 This overall DBE goal is based upon the recently completely DBE ProgramDisparity Study WSDOT is proposing a 19 percent overall DBE participation goal on Federal Highway

Administration-funded projects for federal fiscal years 2018 through 2020 DBE goals fortransportation projects that receive federal funds represent a percentage of the value of work inwhich minority- and women-owned businesses should participate Once finalized and submitted toFHWA early next year the goal will be effective through Sept 30 2020

The purpose of the DBE program is to create a level playing field for firms owned and operated bydisadvantaged individuals wanting to participate in federally assisted highway transit and aviationprograms The attached overall DBE goal is for FHWA funded projects WSDOT will be updating theFTA and FAA overall DBE goals in the near future

If you have any questions please contact Earl Key Director of the Office of Equal Opportunity at3607057091 or KeyEwsdotwagov Thank you Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

  • Proof-Of-Publicationpdf
    • Mediapdf
      • AGC
      • Daily Journal
      • Daily Medium
      • DBEGood
      • OMWBE
      • Seattle Medium
      • Tabor 100
      • The Chronicle
      • Tukwila
        • King County
          • Public-Comments-20180111pdf
            • 19 DBE Requirement(1)
            • AGC Comments on Proposed 10 Goad
            • Backstrom Curb amp Sidewalk
            • comments on WSDOT proposed DBE goal
            • Cowlitz County Public Works
            • DBE Contracting goals
            • DBE Goal
            • DBE Program Disparity Study
            • Disparity Study Comments from City of Spokane
            • FW_ WSDOT News - WSDOT seeks comments on propos
            • Proposed DBE Goals
            • RE_ DBE Contracting Goal Comments
            • Re_ DBE Goal Comments
            • Re_ Seydel Dan - WSDOT Disparity Study Present
            • Support for WSDOTs proposed DBE goal
            • Why we need mandatory goals
            • WSDOT DBE Goal - Comment in support
            • WSDOT Proposes DBE goal of 19
            • WSDOT propsed DBE Goals
            • WTS - Disparity Study Comment Letter

13

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)+-01-2345678897ltlt8=gt7=47AB=gtC8ADE7=877F=gt8GHG78=gtGgt=CCI7JKLMNOMNPPPQRSTUVWXYU1-XZ[]_abcdbbefeghbiebcjkh]gchbb_clmn[d opqrsssq otuv$r ow13x(v$r$ampvv(yz|nf|~knnn~dn owow13 ssw$ampvvo[dfzk]ee]ciieb]cf_]bae]_e]]n behgh_]ecbhb_aac] iexclcent poundcurrenyenbrvbarsectcopy-Z+-Z1O-ZordfXcopyordfYZZlaquocopy0not-0copy1O1shycopyordfordf01ordfregcopy-laquoXordfYK10copyX11X1Ocopyordf-XZ1deg ZX0copy-XZX1-Xordf0copyordf0copylaquoYK10copyX11deg0--XW10copylaquo-copyplusmn--Xsup2Xsup3Z-shyXcopy-microZcopy1sup3Z--0copyparaWplusmnsup2middotmicroZX0copyreg0-Xordf-+shyshyXcopy-copy-XlaquoXcopy+Lsup11sup3Zsup31Xordf0copy-XZ0shysup201ordfregcopy-laquoXordf)K10copyX11ordmcopy-XZsup3Z01Xparasup2)ordmlaquo1raquocentfrac14frac12frac34iquestAgraveAacuteAcircAtildeiquestAumlAringAacuteiquestAEligCcedilAEligfrac34AtildeiquestAEligAacuteiquestAumlAcircAacuteAgraveiquestAEligAacuteiquestAringCcedil AringEgraveAacuteEacuteAringcentAEligEcircEumlAcircCcedilIgraveEumlAacuteAacuteAgravecentfrac14frac12IacuteAacuteAgravefrac34AacuteIcircCcediliquestAEligiexclIumlAcircAacuteEumlETHEgraveNtildeOgraveOgraveEcircAacuteAEligIacuteiquestAEligfrac14AacuteAacuteyenAacuteiquestAEligCcedilAumliquestiquestAringiquestAacuteAEligAacuteiquestAEligAringAcircAacuteAtildeAringAtildeEcircAcircCcedilETHAtildeEcircAringiquestiquestAEligCcedilAtildeOacutefrac34Aacutefrac34CcedilAumliquestAEligCcedilAacute EacuteEacuteEacuteOcircOtildeEgraveOumlOcircOumlETHtimesIgravefrac12Agravefrac34AtildeiquestAEligfrac34iquestAtildeAgrave AringIgraveAacuteEgraveAringiquestEcircEumlAcircCcedilEgravefrac12CcediliquestAacute AacuteAgravefrac34AtildeiquestAEligEumliquestiquestAacutefrac34frac34frac34ETHCcedilAacuteAringAacuteiquestAEligCcedilAumlAringOslashCcediliquestAacuteOslashIgraveNtildeNtildeIgraveOgraveETHUgraveOgraveOgravefrac12AgraveAcirc AacuteAgraveCcedilAringiquestAacuteAumlAacuteEcirciquestAEligCcedil iquest 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13

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httpwwwchronlinecomnewswsdot-seeks-public-comment-on-disadvantaged-business-enterprisearticle_f5c753ea-be61-11e7-966c-972f6769d8a6html

WSDOT Seeks Public Comment on Disadvantaged Business Enterprise By The Chronicle Oct 31 2017

The Washington State Department of Transportation will be accepting public comments about the departmentrsquos proposed Disadvantaged Business Enterprise goal for federal contracts

The goal is for transportation projects receiving Federal Highway Administration funds to have 19 percent of the value of work done by minority or women-owned businesses during the 2018 through 2020 fiscal years

ldquoThe purpose of the DBE program is to create a level playing field for firms owned and operated by disadvantaged individuals wanting to participate in federally assisted highway transit and aviation programsrdquo a press release from WSDOT said

A series of public meetings will be held to discuss the goal in Spokane Vancouver and Seattle

For those who are unable to attend the in person meetings a webinar will be hosted from 230 to 430 pm Thursday Dec 5 The webinar is free but registration is required To register email DisparityStudywsdotwagov

Page 1 of 2WSDOT Seeks Public Comment on Disadvantaged Business Enterprise | News | chronlin

1112018httpwwwchronlinecomnewswsdot-seeks-public-comment-on-disadvantaged-business-

Written comments can also be submitted by mail or email to Jackie Bayne policy and reporting manager for the department of transportation at Washington State Department of Transportation Office of Equal Opportunity PO Box 47314 Olympia 98504 or by email at disparitystudywsdotwagov Comments will be considered through Dec 17 2017

More information about the goal is available at all regional offices or at the main office in Olympia located at the Transportation Building 310 Maple Park Ave SE Olympia More information can also be found online at wsdotwagovequalopportunity

Page 2 of 2WSDOT Seeks Public Comment on Disadvantaged Business Enterprise | News | chronlin

1112018httpwwwchronlinecomnewswsdot-seeks-public-comment-on-disadvantaged-business-

larr Halfway there SR 8 fish barrier removal reaches milestone New SR 26 traffic cameras available rarr

WSDOT seeks comments on proposed DBE contracting goal for highway projects

December 1 2017 | No Comments

WSDOT is seeking comments on proposed participation goals for Disadvantaged Business Enterprises on upcoming Federal Highway Administration contracts a Yakima meeting has also been added to the schedule Source WSDOT Permalink WSDOT seeks comments on proposed DBE contracting goal for highway projects

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From Liz EvansTo Bayne JackieSubject AGC Comments on Proposed 10 GoadDate Tuesday December 12 2017 50314 PMAttachments WSDOT Proposed Goal - AGC Comments FINALdocx

Hi there Jackie Attached are AGCrsquos comments on WSDOTs proposed 19 goal We will also be mailing you a copy Thanks for the opportunity to comment and we hope you find it helpful Regards Liz Liz Evans CAE Northern District ManagerAGC OF WASHINGTONTel 3602238757 | wwwagcwacom JOIN US for the 2018 AGC of Washington Annual Convention amp Technology Expo Jan 26

CUsersmwillmsPicturesInland AGCLogo_RGB_Half_5in

December 12 2017

Page 5

December 12 2017

VIA EMAIL amp US MAIL

Ms Jackie Bayne Policy amp Reporting Manager

Washington State Dept of Transportation

210 Maple Park Ave SE

PO Box 47314

Olympia WA 98504

RE WSDOT Proposed FHWA Triennium Disadvantaged Business Enterprise Goal

Dear Ms Bayne

This letter summarizes the views of the Associated General Contractors of Washington and Inland Northwest Associated General Contractorsrsquo (hereafter referred to collectively as AGC) regarding the Washington State Department of Transportationrsquos (WSDOT) recently proposed FHWA Triennium Disadvantaged Business Enterprise (DBE) Goal (the ldquoProposed Goalrdquo) AGC shares WSDOTrsquos commitment to continue the promotion of DBE firms but AGC is concerned the Proposed Goal which is a significant increase from the previous goal and actual utilization may have unintended consequences and could impose significant burdens on both prime contractors and DBE contractors alike AGC requests WSDOT reconsider its Proposed Goal and adjust the Proposed Goal to account for inevitable availability and capability issues including the lack of a formal retraction of the non-minority woman owned business waiver that makes up over half of the Proposed Goal Implementing an unachievable goal will only be to the detriment of the DBE program

1 AGCrsquos Membersrsquo Interest in WSDOTrsquos Proposed Goal

Together AGC of Washington and Inland Northwest AGC represent and serve the commercial industrial and highway construction industry These professional associations of commercial contractors are comprised of more than 900 members who have joined together to enhance the performance of their industry and build a better climate for construction operators many of which are small and closely held businesses

Like WSDOT AGC is firmly committed to the principals of equal opportunity and promoting efforts to ensure minority women and veteran owned businesses are properly represented In both its political advocacy and membership programs AGC has demonstrated its commitment to increasing the representation of disadvantaged groups in the construction industry as both workers and owners of firms For AGC this is both an issue of principles and a practical one The construction industry as a whole is facing a critical shortage of workers and it is imperative that the industry attract new participants Among AGCrsquos activities demonstrating this commitment are the following

middot AGC has an ongoing ldquoContractor Exchangerdquo program through which small minority- and women-owned subcontractors are offered one-on-one networking opportunities with established general contractors

middot The AGC Education Foundation provides financial support to construction-related programs in K-12 schools and conducts outreach specifically targeted at low income disadvantaged and female students

middot More than 2500 students most from inner-city schools participate in annual AGC-sponsored Construction Career Days in King Pierce and Spokane Counties

middot AGC supports the Pre-Apprenticeship Construction Training (PACT) program at Seattle Vocational Institute This program is focused on preparing underrepresented communities to be highly qualified applicants and successful apprentices in the construction trades

middot AGC is a sponsor of the Turner School a training course for minority- and women-business owners in the construction industry

middot AGC supports the National Association of Women in Construction (NAWIC) which provides professional development and other services to its members

middot AGC routinely supports legislative efforts aimed at supporting small businesses and encouraging small business participation

middot AGC recently formed a Diversity and Inclusion Committee comprised of both prime and DBE participants The purposed of the committee is to expand opportunities for DBE members and to help AGC consider diversity in decision-making Recently AGC approved a deeply discounted introductory dues structure for certified DBE members

middot AGC is a WSDOT partner on the new mentorproteacutegeacute program

AGCrsquos experience has been that the most effective approach is to help make emerging businesses successful through outreach training and public policies that will grow their capacitymdashnot by imposing mandates without clear evidence as to the mandates feasibility

2 WSDOTrsquos Proposed Goalrsquos Impacts To The Construction Industry

WSDOTrsquos Proposed Goal is 190 The Proposed Goal is based upon the recent Collete Holt amp Associates (CHA) Disparity Study released in 2017 With respect to availability the Disparity Study reports the following weighted availability for FHWA-Funded projects

Thus the 190 goal factors in Black Hispanic Asian Native American and White Women into its availability As indicated however this 19 goal raises a number of concerns

a WSDOTrsquos 19 Proposed Goal Represents a Significant Increase Without Concrete Evidence of Available And Capable DBE Firms

First WSDOTrsquos Proposal Goal of 190 represents a significant increase as compared to actual DBE participation (141 in 2014 117 in 2015 and 151 in 2016) as well as the last FHWA proposed goal of 116 for 2014-2018 See WSDOTrsquos Proposed Goal and Interim FHWA Overall DBE Goal Methodology FFY 2014-2018 The Proposed Goal is 74 more than the last goal which represents a 638 increase and a 52 increase over the average actual utilization for 2014-2016 While Contractors were exceeding the previous 116 goal this is primarily based on the fact that WSDOT previously requested a waiver to consider non-women-owned businesses and the waiver was not granted and effective until June 2017 (meaning that for 2014-2016 women were counted towards race-conscious goals and inevitably a higher overall percentage of DBE firms were utilized)

Contractors struggle to meet present DBE goals due to the relatively low availability of experienced and certified DBE firms By increasing the goal WSDOT is understandably trying to increase the participation of underrepresented firms Drastically increasing the goals (by over 5 of actual utilization) without concrete evidence that there is sufficient availability andor capability of such firms however will have the opposite effect Notably this lack of availability and capacity of DBE firms was discussed in detail in the Disparity Study For example the CHA Disparity Study notes a number of concerns of DBE firms while technically ldquoavailablerdquo with respect to the goal percentages are unable to meet the requirements necessary to fulfill the contract including purchasing the equipment necessary having available labor and ability to meet insurance and financing requirements Thus while there may be ldquoavailablerdquo firms there is not clear evidence (and if fact evidence to the contrary) that those available firms are capable and available to perform the majority of the FHWA-Funded contracts let by WSDOT

An additional example affecting DBE capability and availability that is not factored into the CHA Disparity Study or WSDOTrsquos Proposed GOAL is DBE ability to enter into Project Labor Agreements (ldquoPLAsrdquo) WSDOT has indicated their interest in pursuing a PLA AGC Members have raised concerns based on repeated experiences that many DBE firms due to the administrative and cost impacts refuse to enter into PLAs precluding those firms from performing certain work or increasing costs Again this lack of ability (or refusal) to perform should also be factored into WSDOTrsquos Proposed Goal which is not currently the case

b The Proposed Goal Does Not Account For The Current Non-Minority Woman Owned Business Waiver Still In Place

Second despite the significant increase WSDOT does not account for the current waiver of non-minority women owned businesses that remains in place As noted in WSDOTrsquos proposal comments WSDOT previously sought and received a waiver of the regulation that White females as a group are presumptively disadvantaged This waiver was heavily criticized by many including AGC and the results of the most recent CHA Disparity Study confirmed that White females are presumptively disadvantaged and do not enjoy a level playing field for USDOT-assisted contracts Therefore the CHA Disparity Study recommends that this group be returned to the status of goal credit eligibility WSDOT has sought a recession of the waiver but has not yet to our knowledge received a rescission of the waiver Nevertheless the 19 Proposed Goal still includes White women In fact of the 19 availability percentage White women represent 103 (over half) Accordingly for WSDOT to proceed with the 19 goal WSDOT must receive the rescission of the waiver for this goal to be even remotely possible to achieve If the rescission is not received the Proposed Goal must be adjusted

C The Proposed Goal Does Not Account For Availability Differences Across The State

Third the Proposed Goal does not account for availability difference across the state Eastern Washington contractors with an even scarcer pool of available and qualified DBE firms in the area as is the case now will be forced to subcontract to Western Washington firms paying transportation and per diem premiums for such work The CHA Disparity Study again provides numerous excerpts of anecdotal evidence demonstrating that the goals in Eastern Washington are too high A few of the contractor comments on the topic are as follows

When you apply those same goals to a different geographic region a different project site for a large firm to meet those goals is difficult because theres not necessarily the expertise in parts of the project that were submitting on

Theres very few DBEs over here [in Eastern Washington] Next year theres going to be even more work over here What are we going to do with all these goals We always meet the goals like I said youve got three four DBEs over here to do all the work and then they cant perform

There are just no [minority-owned] DBEs available in eastern Washington

See CHA Disparity Study at p 54 Again these are factors that should be taken into account in developing the Proposed Goal or at the very least its application WSDOTrsquos Proposed Goal however is silent as to this significant issue

When the lack of available firms with the capacity to perform significant DBE projects is coupled with the increased goals the price of WSDOT contracts will inevitably increase to the significant detriment of Washington taxpayers and the public entities Inevitably with a lack of available qualified firms the lack of competition will become evident and small qualifying contractorsrsquo prices will increase due to supply and demand principles as they become selected for projects and less able to take on additional work These increased DBE contract values will be passed on to the public agency and taxpayers which translates into fewer dollars available for the sorely needed and promised infrastructure upgrades In addition the instance of bid protests will inevitably increase potentially delaying projects and further diverting agency resources from badly needed infrastructure upgrades to resolving unnecessary disputes or rebidding the projects altogether

Finally faced with such drastic and potentially impossible requirements if adjustments are not made contractors may focus more on demonstrating good faith efforts Both a contractor who meets the required goal and a contractor that demonstrates good faith efforts are eligible for award It is likely that the contractor relying upon good faith effortsmdashwho will have a lower price than the other contractor who sacrificed price to actually meet the goalmdashwill be selected by the public agency This outcome will erode the total percentage participation of eligible firms and would clearly be inapposite of WSDOTrsquos intentions

3 Conclusion and Request

AGCrsquos members have asserted these and multiple other concerns Implementing an increased goal across the state and all contracts without clear evidence of available DBEs capable of performing the work and meeting the project requirements will have significant and far-reaching impacts on the construction industry many of which work against the aim of the Proposed Goal itself AGC requests WSDOT reconsider its Proposed Goal of 19 and make adjustments to account for the capability of DBE firms the lack of a rescission of the non-minority waiver and the lack of available DBE firms in parts of the state This Proposed Goal and its impacts on the construction industry will be irrevocable and will be to the detriment of taxpayers It is prudent to address these adjustments before implementing the Proposed Goal

Very truly yours

David DrsquoHondtCheryl Stewart Executive Vice President AGC of WashingtonExecutive Director Inland Northwest AGC

AGC of Washington bull 410 11th Avenue SE 203 Olympia WA 98501

Inland Northwest AGC bull 4935 E Trent Avenue Spokane WA 99212

image3jpeg

image1png

image2emf

image4png

image5jpeg

From Steve SmithTo WSDOT Disparity StudyCc Bayne JackieSubject 19 DBE RequirementDate Thursday December 14 2017 31947 PMAttachments DBE List and NAICS Listingpdf

Disparity Committee I recently read in The Daily Journal of Commerce that WSDOT plans to adopt a 19 DBEstandard for all FHWA funded projects early next year Our company S amp K Painting Inc is abridge painting company which is based in and works exclusively in Oregon and Washington Ihave been the owner of this firm since 1978 when it was first established My concerns aboutthe proposed 19 DBE requirement is as follows 1 There are very few opportunities for subcontract work on bridge repaint jobs These jobsare usually limited to cleaning and painting the bridge The only other facet of the project istraffic control which is almost always 3 or less of the project total cost The traffic controldoes provide a very good subcontracting opportunity 2 The NAISC code of 238320 includes bridge painting but also includes house painting wallcovering rust proofing etc which have almost no similarities to bridge painting When thiscode is used to determine the number of available firms (DBE or otherwise) that are availablefor bridge painting project this badly skews the numbers I would suggest that bridge paintingcontractors make up less than 5 of all firms in NAISC code 238320 3 If future WSDOT bridge painting projects require a 19 DBE participation A The qualified pool of DBE subcontractors available to submit pricing on any facetother than traffic control will be very limited I reviewed a list of 19 certified DBE firms listedunder painting at the WSDOT website and only recognized one firm from past projects B The number of prime bidders and competition will fall The state will incur highercosts due to this fact C Prime bidders will be forced to subcontract unqualified contractors just to be eligiblefor contract awards This will likely reduce the quality of the finished project Thank you for considering my concerns I may not have verbalized my thoughts as well as Iwould have liked but I have been in this business for almost 40 years and truly believe what Ihave said Sincerely

Steve Smith President

SampK Painting incP O BOx 390clacKamaS OregOn 97015Phone (503) 557-5544Fax (503) 557-5566Cell (503) 260-5280Steveskpaintingcom

From Lei WuTo Bayne JackieSubject comments on WSDOT proposed DBE goalDate Thursday December 14 2017 94925 PM

To Whom It May Concern

Below is my comments

The WSDOT recommended DBE Goal for FHWA contracts of 190 is a small andimportant increase that can further achieve equity in WSDOTFHWA contracting I am insupport of the 19 DBE Goal

I also want to express my appreciation for the thoroughness of the WSDOT Disparity studyand how the study disclosed the disparity in WSDOT contracts that do not have a DBE orWBE goal ndash further reinforcing that all women-owned firms and minority owned firms faceequity issues

I remain concerned with the methodology required by the Code of Federal Regulations andcase law because of the dependence on the availability of firms in the calculation Anunintended consequence of removing either gender or race from the goal is that many of thesefirms would go out of business the availability decreases and the formula then results in asmaller DBE goal

Thanks

Lei

Lei Wu PE AICP

Principal CSL Consulting

LeiWucsl-consultingnet

(425)562-6275

From Stephanie SimpkinsTo WSDOT Disparity StudySubject DBE Contracting goalsDate Wednesday November 29 2017 20259 PM

My name is Stephanie Simpkins and I own North Star Enterprises It is a large womanowned traffic control company located in Spokane Washington My mother founded thecompany in 1984 and I have worked in this family owned business most of my life Ipurchased the business from her in 2013 and have been sole owner since then My company thrived under the Disadvantaged Business Enterprise (DBE) Programimplemented by Washington Department of Transportation and administrated by United StatesDepartment of Transportation What started as a small business with one truck and a fewemployees has grown over the years to be one of the largest traffic control companies in thestate and employee countless people every construction season It has not been an easy roadover the years being a woman in the construction industry never is and it is hard to say wherewe would be now if it werenrsquot for the assistance of the DBE program As you know in June of 2017 majority women were removed from the DBE program basedon a disparity study conducted in 2012 On March 2014 Washington Department ofTransportation requested a wavier to remove majority women from the DBE program Thishas had an immediate and drastic impact on my business and all who work for me From themoment the waiver was approved and my company could no longer be used as a condition ofaward at bid time I began losing work Most recently the 2018 North Central Region ChipSeal which we have worked on for the last 10 years This contract provides work forapproximately 40 employees for the entire construction season I have already been told byseveral contractors that with such a high UDBE goal they wont even be able to consider mefor this project This loss along with several other smaller contracts to date are painting avery dismal future for my business With all of this turmoil surrounding the future of my business I find it frustrating to say theleast that WSDOT has chopped me off at the legs by not allowing my firm to count for theCOA but can use the little participation I may still contribute to help them reach their overallstate goal How is this fair If the contractors canrsquot utilize my business than neither shouldWSDOT As far as setting future state DBE contracting goals it looks as if the bar will beraised once again all while excluding the largest subset of useable DBErdquoS To me raising theoverall state goal at this time (which is already challenging to meet) with women DBErsquosexcluded from the program seems horribly ill timed

From Karen R BannishTo Bayne JackieSubject DBE GoalDate Tuesday December 5 2017 32549 PM

Hello Jackie ndash thank you for the webinar today concerning the proposed Overall DisadvantagedBusiness Enterprise Goal for the Federal Highway Administration I understanding the DisparityStudy much better now and checked the document you mentioned on the WSDOT website Pacific County is located in the Southwest corner of the State of Washington The tip of the LongBeach Peninsula would be 2 frac12 hours from Interstate 5 Our federal work primarily includes strictlyoverlay projects with 12 or fewer items of work included in the contract When bidding a project(our contracts are usually less than $500000) we sometimes received a single bid from the process Due to our proximity and the small cost for the work it is difficult to entice DBE participation Thereare simply no items of work that can be performed Having a mandatory DBE goal placed upon theproject in a rural area simply to meet the disparity guidelines will only increase the cost of theproject We feel the goals should be set in balance with the cost of the project and the items of work and notsimply directed to meet the overall goal

Karen BannishSenior Engineering TechnicianPacific County Department of Public Works211 North Commercial StreetRaymond WA 98577(360) 875-9368

From Dawn EgbertTo Bayne JackieSubject DBE Program Disparity StudyDate Tuesday December 5 2017 23825 PM

Hi JackieThank you for the great information on the call today You talked about the small works rosterbriefly We had a conversation in our office today about small contractors who are signed up on thePort of Vancouverrsquos small works roster Our team has had opportunity to talk to some of thecompanies on our roster who are women owned or minority owned businesses but they arenrsquotsigned up as a DBE firm When asked about that theyrsquove mentioned that they donrsquot want to fill outthe additional paperwork required to obtain the certification as a DBE As for the DBE goal at 19 it doesnrsquot seem to present an issue for the majority of our projects ndashespecially those where we would apply FHWA funds if granted However if we did happen to have aproject that didnrsquot include classifications of work where DBE certified participants are availablewould there still be an exception or a good faith efforts clause Thanks again for your time Dawn EgbertProcurement Services Manager3103 NW Lower River Road Vancouver WA 98660Direct 3609921102 | Cell 360448-9867 | Main 3606933611 | Fax 360735-1565degbertportvanusacom | wwwportvanusacom | available port properties Leadership | Stewardship | Partnership

From Feist MarleneTo WSDOT Disparity StudyCc Simmons Scott M Twohig KyleSubject Disparity Study Comments from City of SpokaneDate Friday December 15 2017 52226 PMAttachments image010png

image011pngimage012png

December 15 2017 Jackie BaynePolicy amp Reporting ManagerOffice of Equal OpportunityWashington State Department of TransportationPO Box 47314Olympia WA 98504-7314 RE Proposed DBE Contracting Goal for Highway Projects Dear Ms Bayne The City of Spokane would like to provide comments related to proposed DisadvantagedBusiness Enterprise Goal for Federal Highway Administration (FHWA) contracts by theWashington State Department of Transportation (WSDOT) Office of Equal Opportunity Manyof our projects receive funding from FHWA and as such the proposed new goals areapplicable to City work The City is supportive of the programrsquos purposemdashldquoto create a level playing field for firmsowned and operated by disadvantaged individuals wanting to participate in federally assistedhighway transit or aviation programsrdquo However the City is concerned about the ability to achieve the proposed utilization rate of upto 19 percent for DBEs in Eastern Washington considering the low number of DBEs in ourregion and the record construction under way in the City and in our region WSDOTrsquos DBE Program Disparity Study notes ldquoContractors in Eastern Washington repeatedlyreported that the goals on projects in their area are too highrdquo The Inland NorthwestAssociated General Contractors group notes that only about 12 DBEs in construction fields areavailable in the greater Spokane area Meanwhile the City has performed record construction in each of the last three years withproject totals hovering around $100 million Our City work has been bolstered by anaggressive program to improve water quality in the Spokane River Our local school districtsand our neighboring jurisdictions also have aggressive construction programs right now

Additionally we expect WSDOTrsquos work in this region to accelerate as North Spokane Corridor(NSC) construction proceeds At times our area is reaching the limits overall of our contractingcommunity the City has worked to release its projects in the first quarter of the year as muchas possible to lock in contractors and receive better pricing The capacity of existing DBEs in our region simply cannot meet that current high demand Some DBE firms are tempted to agree to more work in these times but we have found that insome cases DBEs have stretched themselves too thin On two recent City projects generalcontractors were unable to meet DBE goals as a result of DBE firms that couldnrsquot fulfill theircommitments for providing personnel or equipment It also seems implausible to expect DBEs from the West Side to mobilize teams to work on Cityof Spokane projects in large numbers In fact the Disparity Studyrsquos author responded at arecent meeting on this topic that a DBE from the West Side only very rarely completes workon the East Side of the state We would also be concerned about moving the good-paying jobs that construction providesoutside of our region The Cityrsquos median household income is $44350 considerably lower than theState of Washington MHI of $64129 and the Seattle MHI of $77351 Our leaders are working tocreate good-paying jobs for our citizens not export them to an already wealthier part of the state Additionally these projects are also funded with local dollars and our citizens expect their money toput their neighbors to work With the above considered the City is seeking

middot DBE goals for the 2018-2020 compliance period for Eastern Washington that arereflective of the current availability of DBE firms in our region

middot The re-inclusion of non-minority women owned DBEs in achieving DBE goals InSpokane non-minority women owned DBEs make up the majority of the availableDBEs And current information shows that women in Spokane overall still lag behindmen in opportunities and wages The Cityrsquos own ldquoGender and Racial Equityrdquo reportfrom 2016 noted that overall working women earned 783 percent of the earnings ofworking men in 2014 down from 827 percent in 2009 We need to lift up all women

middot The development of WSDOT programs to encourage the growth of existing andnew DBEs who can be used on street and highway projects We are encouraged by theproposed mentorproteacutegeacute program to increase the number and capacity of DBEs inEastern Washington Programs that address other barriers such as assistance withcompleting documentation or access to bonding capacity also could aid growth ofDBEs

middot The ability for WSDOT to adjust goals on a project if a selected DBE is unable tocomplete its commitments on a project This would help enable our contractors totake a chance on a new or inexperienced DBE to complete work

middot Recognition of local programs that strive to increase diversity in the work force Forexample the City operates a robust apprenticeship program that requires 15 percentof the labor hours on public works jobs greater than $600000 to be performed byapprentices The apprentice programs in our region are stepping up recruitmentefforts and are specifically seeking to recruit more youth women and minorities intoapprentice slots

As we seek to achieve the goal of increasing participation in street and highway constructionby companies owned by disadvantaged individuals we must also acknowledge that businessdevelopment and growth happens over time We must lay the groundwork now to build abase of DBEs that can help us achieve higher utilization goals over time Sincerely Marlene FeistDirector of Strategic DevelopmentPublic Works amp UtilitiesCity of Spokane

Marlene Feist | City of Spokane | Public Works Director of Strategic Development5096256505 | cell 5097109214 | mfeistspokanecityorg | spokanecityorg

From Hall MattTo WSDOT Disparity StudySubject FW WSDOT News - WSDOT seeks comments on proposed DBE contracting goal for highway projectsDate Friday December 15 2017 11956 PMAttachments WSDOT proposed DBE goal through 2020pdf

From Hall Matt Sent Friday December 15 2017 117 PMTo BayneJwsdotwagovCc Keniston Rick (KenistRwsdotwagov) MolyneKwsdotwagov SusanWilsonclarkwagovSubject WSDOT News - WSDOT seeks comments on proposed DBE contracting goal for highwayprojects Hello Jackie Please see our comments attached regarding the WSDOT proposed DBE goals Thanks for the opportunity to provide comments Matt HallClark County Public Works Washington State Department of Transportation ndash NEWSHeadquarters ndash 310 Maple Park Avenue SE ndash Olympia WA 98504-7314 ndash 360 705-7000 FOR IMMEDIATE RELEASEOct 30 2017 Contact Jackie Bayne Office of Equal Opportunity 360 705-7084

WSDOT seeks comments on proposed DBEcontracting goal for highway projectsComments accepted through Dec 15OLYMPIA ndash Contractors trade and labor organizations small and disadvantaged businessesand all others who may be interested in working with the Washington State Department ofTransportation are invited to comment on the agencyrsquos proposed Disadvantaged BusinessEnterprise goal for Federal Highway Administration contractsDBE goals for transportation projects that receive federal funds represent a percentage of thevalue of work in which minority- and women-owned businesses should participate WSDOTis proposing a 19 percent overall DBE participation goal on Federal Highway Administration-funded projects for federal fiscal years 2018 through 2020Once submitted to FHWA early next year the goal will be effective through Sept 30 2020The purpose of the DBE program is to create a level playing field for firms owned andoperated by disadvantaged individuals wanting to participate in federally assisted highwaytransit and aviation programsConnecting with communitiesWSDOT will host a series of public meetings to provide opportunities for individuals tocomment in person

Spokane

2 ndash 4 pm Tuesday Nov 28WSDOT Eastern Region Headquarters2714 N Mayfair St Spokane

Vancouver

2 ndash 4 pm Wednesday Nov 29WSDOT Vancouver Headquarters11018 NE 51st Circle Vancouver

Seattle

2 ndash 4 pm Thursday Dec 7WSDOT Northwest Region Headquarters15700 Dayton Ave N Shoreline

Other ways to provide commentThose who are unable to attend one of the meetings can participate in a no-cost webinar from230 ndash 430 pm Tuesday Dec 5 Registration for the webinar is required Those interested inparticipating should email DisparityStudywsdotwagovWritten comments can also be submitted by mail or emailJackie Bayne Policy amp Reporting ManagerWashington State Department of TransportationOffice of Equal OpportunityPO Box 47314Olympia WA 98504-7314DisparityStudywsdotwagovDocuments detailing the methodology used for determining the FHWA DBE goals areavailable for review at all WSDOT region headquarters offices and at the TransportationBuilding 310 Maple Park Ave SE Olympia They are also available online atwwwwsdotwagovequalopportunityWSDOT will consider all written comments received through Friday Dec 15 2017 Hyperlinks within this release

WSDOT Region offices wwwwsdotwagovContactofficelocationhtmregion

WSDOT keeps people businesses and the economy moving by operating and improving the statestransportation systems To learn more about what were doing go to wwwwsdotwagovnews forpictures videos news and blogs Real time traffic information is available at wwwwsdotcomtraffic or bydialing 511 Americans with Disabilities Act (ADA) InformationAccommodation requests for people with disabilities can be made by contacting the WSDOTDiversityADA Affairs team at wsdotadawsdotwagov or by calling toll-free 855-362-4ADA (4232)Persons who are deaf or hard of hearing may make a request by calling the Washington State Relay at711 Title VI Statement to Public It is WSDOTrsquos policy to assure that no person shall on the grounds ofrace color national origin or sex as provided by Title VI of the Civil Rights Act of 1964 be excluded fromparticipation in be denied the benefits of or be otherwise discriminated against under any of its federallyfunded programs and activities Any person who believes his or her Title VI protection has been violatedmay file a complaint with WSDOTrsquos Office of Equal Opportunity For additional information regarding Title

VI complaint procedures andor information regarding our non-discrimination obligations please contactOEOrsquos Title VI Coordinator at 360-705-7090 To unsubscribe to WSDOT media releases please reply and type REMOVE in the subject line

This e-mail and related attachments and any response may be subject to public disclosure under state law

From Cochrane EmilieTo WSDOT Disparity StudyCc Eugenis Susan Cowlitz Co Public Works - Brad BastinSubject Proposed DBE GoalsDate Thursday December 14 2017 85006 AMAttachments image002png

DBE Goals - Commentspdf

Please see the attached letter with comments regarding the proposed DBE Goals Ahard copy will be sent out today

Thanks

Emilie CochraneCowlitz County Public Works1600 ndash 13th Avenue SKelso WA 98626360-577-3030 ext 6523

From Michelle WolcottTo Bayne JackieCc Robideau Christopher LSubject RE DBE Contracting Goal CommentsDate Tuesday November 7 2017 65448 AMAttachments image001png

Thank you JackieWhat a relief to know that we have been heard and are not the only small business facing thisstruggle Your email is comforting

Yes you can provide us with additional assistanceLet me introduce my boss and Senior Vice President of Red Plains Professional Chris Robideau

Chris will be your contact from here since I will be leaving the company November 17th As a WA DBE we are ldquoeligible for limited DBE Support Services (SS) funding when funds becomeavailablerdquo When will this happen And are we registered or on a list to receive fundingIs the WSDOT ICR Training a prerequisite for the funding Or just helpful knowledge

Thank you for your time Jackie I will follow through with the training

Michelle Wolcott EIT Quality Control Engineer

2103 NE 129th Street Suite 201 Vancouver WA 98686 Office (360) 448-7999 Fax (360) 258-0274

wwwred-plainscom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Monday November 6 2017 332 PMTo Michelle Wolcott ltMichelleWolcottred-plainscomgtSubject RE DBE Contracting Goal Comments

Hi Michelle

Thank you for your interest in doing business with WSDOT I apologize for the lack of informationyou have come up against in your attempts to attain access to WSDOT ICR program

As you may well know WSDOT has recently completed a state wide agency specific diversity studyAnecdotal comments submitted with the study concur with your experience Not only did somerespondents find it difficult to become prequalified they also commented that the required indirectrate of 110 percent is too low to be profitable These requirements are currently under advisementby WSDOT and new DBE program requirements are currently in the process of seeking public input

As you are an OMWBE certified DBE in Washington State you will be eligible for limited DBE SupportServices (SS) funding when these funds become available At that time funds may become availableto assist you in your struggle to attain ICR eligibility Here is a link to WSDOTrsquos Indirect Cost RateTraining httpswwwwsdotwagovAuditICRTraininghtm If you would like me to find additionaltraining or information please let me know

If I can provide additional assistance of information please let me know

Best Regards

Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Michelle Wolcott [mailtoMichelleWolcottred-plainscom] Sent Tuesday October 31 2017 835 AMTo WSDOT Disparity Study ltDisparityStudyWSDOTWAGOVgtSubject DBE Contracting Goal Comments

HelloI have been in contact with WSDOT for 6 months sharing my disparaging story of beinga small DBE unable to submit SOQs for projects requiring a WSDOT Audited IndirectCost Rate Approval We do not have an in-house accountant and our outsideaccountant has explained to get all the paperwork together for WSDOT would take 40hours of work $9000 annually We cannot justify this cost to submit on a project thatwe may not acquire We have been directed to seek financial assistance from WSDOT Federal SBA andWashington State Office for Women and Minority Owned Enterprises all of whichprovided negative responses

As a DBE business in 11 states we are supporting the 19 incentive for federallyfunded contracts but we are frustrated in the fact that we will not be one of the luckyfew to participateWe have been in business 20 years From our Vancouver Washington office our clientsare the Native American tribes across the country with all contracts federally funded This summer alone the WSDOT ICR Approval has squashed our ability to submit on twoprojects that we were perfectly qualified to performI have attached previous emails to show a sample of who I have been dealing with

Thank you

Michelle Wolcott EIT Quality Control Engineer

ltimage001pnggt

2103 NE 129th Street Suite 201 Vancouver WA 98686 Office (360) 448-7999 Fax (360) 258-0274 wwwred-plainscom

From Michelle Wolcott Sent Monday July 10 2017 954 AMTo Harvey Schatzie ltHarveySwsdotwagovgtSubject RE WSDOT Indirect Cost Rate Process

Good Morning Schatzie

This is Michelle Wolcott from Red We spoke Friday June 30th about the ICRprocess and you were very encouraging I relayed the information to my boss who ishere in Vancouver then he shared with the president bookkeeper and our accountantin Oklahoma We had FAR compliance with Oklahoma DOT in 2015 so we are noteligible for the Safe Harbor Program Our account said our timekeeping system doesnot breakdown the hours and pay in the format WSDOT wants to have it presented andto get the documents in order would take the CPA and an assistant $9000 in paidhours of work It turns out this would have to be annually The other option is to hirean outside CPA firm to do the audit for us at $20000 annually

Our president said in the past we received funding assistance from the Stateof Oklahoma to get our ICR approval Does WSDOT offer any financial assistance for small businesses to reach compliance We are also a DBE in WA I have requested the same information from WA PTAC at theVancouver Chamber of Commerce and from WA Office of Minority and Women OwnedBusiness Enterprises and they both said there was nothing but suggested to askWSDOTThank you for your helpMichelle Wolcott EIT

Hello Michelle sorry but I am not aware of any grants But I was looking at this andthere is a POC at the bottom you may try to discuss the audit issuesHollyHolly BoehmeBusiness Opportunity Specialist | 8(a) Business Development ProgramUS Small Business Administration bull Seattle District Office

Hello Michelle -

Thank you for your email Im not aware of any funding available for thispurpose but do agree its quite a bit for a DBE firm to have as an expense Mostof the firms I work with do a lot more work on the Oregon side so perhaps thereare programs available that I just havent heard of Im copying my colleagueHoly Boehme in our Seattle District Office to see if they are aware of any suchassistance

Holly might there be some small business incubators or other resources availablein WA to help a small firm with the expense of getting a WSDOT AuditedIndirect Cost Rate approval Please reply all with anything you may have

Thank you

Yuri Yoshida Dyson Business Opportunity SpecialistUS SMALL BUSINESS ADMINISTRATION Portland District OfficePhone 503-326-6692 Fax 202-292-3872 wwwsbagovor

From Troy HalbergTo Bayne JackieSubject Re DBE Goal CommentsDate Wednesday December 13 2017 35533 PM

JackieToday was another example of why the goals should not be raised There were 2 jobs which Iwas low on and did not get due to the high goals This is exactly what will happen when thegoals get raised The first job was the 9180 Anacortes Ferry Paving Northeast Electric $244924 and UDBE $318000 Second job was the 9172 SR 9 East Junction Job Northeast Electric $68503 and UDBE $76300

Does this seem like a good way to spend the tax payer money I do not see how we are tosurvive if the goals get to 21

Thanks

Troy HalbergOffice360-225-7004Cell360-931-3990Fax360-225-7001

On Thu Nov 30 2017 at 1131 AM Bayne Jackie ltBayneJwsdotwagovgt wrote

Good Morning Troy

Thank you for taking the time to provide us with your experiences with the DBE Program TheWashington State Department of Transportation takes the public involvement process veryseriously and your comments will be taken into consideration prior to a final decision regardingthe overall DBE program goal

If I can be of further assistance please let me know

Best Regards

Jackie Bayne

Policy and Reporting Manager

WSDOT Office of Equal Opportunity

Work (360) 705-7084

Cell (360) 338-5783

BayneJwsdotwagov

From Troy Halberg [mailtotroyhnellcnet] Sent Wednesday November 29 2017 144 PMTo WSDOT Disparity Study ltDisparityStudyWSDOTWAGOVgtSubject DBE Goal Comments

If these goals are to be set that high this would make us as a non DBE small contractor at amajor disadvantage With these high of goals this is like handing all of the DBE electricalcontractors every job These general contractors will have no option but to use thembecause of the goals This should not go into effect We have been low on several jobs in thepast and have not gotten them do to the goals being 18 When this goes on it puts all therest of us contractors at a disadvantage Please consider the smaller non DBE contractorsthat are looking to survive as well

Thanks

Troy Halberg

Office360-225-7004

Cell360-931-3990

Fax360-225-7001

From Daniel Seydel IITo Bayne JackieCc Key Earl daneiwashingtonorg Nadeem Ismail Mussie Tewelde (mteweldehydro2geotechcom)

graceflyrightaolcom Mary Wenner Watkinson LarrySubject Re Seydel Dan - WSDOT Disparity Study Presentation Public TestimonyDate Friday December 8 2017 30323 PM

Jackie

It was my hope that the comments would be put into record I was also hoping that you wouldnot have to be the one having to formulate responses for each clarification If that is the caseI know you are swamped and will then I just ask my comments be only part of the recordHowever if there is dedicated staff that is going to be compiling and responding to theclarification then the below questions would be the priorities of most interest

These were questions unrelated to the disparity study and hopefully should be doable

1) Do you have any reports on your outcomes from the past 5 years on DBE support servicesand specific key performance measures from previous years funding (ie how many firmsutilized what was the objectives were objectives met did outcomes meet total satisfaction ifnot why next steps what was the firms capacity before and after services were performed (iesales employees bonding if applicable insurance equipment line of credit if applicablenumbertype of customers how are they doing now etc))

2) What other changes or improvements other than allowing DBES to select their own serviceproviders and a staff change will be a part of this new program

3) Was consideration to provide the new mentor protege consultant rather than separating theactivities into support services andor technical assistance

Disparity study clarifications

1) Will WSDOT consider sponsoring legislation to support the policy changes and goalincreases to insure manditory goals wont be necessary

a) If not what measures will you grant primes to operate outside the box (ie entertain bestvalue over low bid modify responsiveness by subs to require adherence to meeting voluntarygoals developing standards around federally funded gccm and other low bid procurementsthat give powers to primes to meet objectives including but not limited to mentor protegerelationships joint ventures bond waiving techniques cash flow assistance material andequipment acquisition manufacturer development specifications that have only DBES orinclude equal number of DBES as non DBES as approved installers etc)

2) Will the disparity study consultant be available for implementation or information gatheringfrom other regions

5) Will WSDOT be hiring more diverse staff amp professionaltechnical service providers inother departments outside OEO to insure policies commitments and evaluations areperformed in manner that improves diversity that reflects the communities WSDOT serves bythoughtful and legal efforts increase participation thus creating successful outcomes includingpartnerships and collaborations

Thank you and Merry Christmas

Hi Dan

Thank you for providing such thoughtful public comments questions and testimony

Regarding your public testimony below - I do not believe I am not able to answer questions ifthey are public comments Please let me know what part of this email you would likeclarification on and what part you would like considered public testimony

I appreciate your thoughtful consideration of WSDOTrsquos implementation of our civil rightsprograms

Best Regards

Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

DIDaniel Seydel IIFyi Daniel J Seydel II Platinum Group LLC 2064060844 f) 2062999934wwwplatinumbusinessgroupcom Small Business is the Answer FREE TRAINING FORENTREPRENEURS amp JOB SEEKERS - Polish your skills or make your firm standout thanksto the EntrepreneurialThu 233pDI

Daniel Seydel IIThu 1272017 1123 AMInbox Sent ItemsShow all 7 recipientsTobaynejwsdotwagov ltBayneJwsdotwagovgtJackie

Per your request below are my questions and comments some of which were verbally sharedyesterday

Congratulations on receiving the blessing of additional technical assistance dollars andcompleting the DBE Disparity Study per your report

1) Do you have any reports on your outcomes from the past 5 years on DBE support servicesand specific key performance measures from previous years funding (ie how many firmsutilized what was the objectives were objectives met did outcomes meet total satisfaction ifnot why next steps what was the firms capacity before and after services were performed (ie

sales employees bonding if applicable insurance equipment line of credit if applicablenumbertype of customers how are they doing now etc))

2) What other changes or improvements other than allowing DBES to select their own serviceproviders and a staff change will be a part of this new program

3) Was consideration to provide the new mentor protege consultant rather than separating theactivities into support services andor technical assistance

Disparity study clarifications andor comments

1) Will WSDOT consider sponsoring legislation to support the policy changes and goalincreases to insure manditory goals wont be necessary

a) If not what measures will you grant primes to operate outside the box (ie entertain bestvalue over low bid modify responsiveness by subs to require adherence to meeting voluntarygoals developing standards around federally funded gccm and other low bid procurementsthat give powers to primes to meet objectives including but not limited to mentor protegerelationships joint ventures bond waiving techniques cash flow assistance material andequipment acquisition manufacturer development specifications that have only DBES orinclude equal number of DBES as non DBES as approved installers etc)

2) Will the disparity study consultant be available for implementation or information gatheringfrom other regions

3) What lessons did WSDOT learn that it did not know from the other study(s)

4) What would WSDOT do different (ie scope time line process approach etc)

5) Will WSDOT be hiring more diverse staff amp professionaltechnical service providers inother departments outside OEO to insure policies commitments and evaluations areperformed in manner that improves diversity that reflects the communities WSDOT serves bythoughtful and legal efforts increase participation thus creating successful outcomes includingpartnerships and collaborations

Daniel J Seydel IIPlatinum Group LLC 2064060844f) 2062999934wwwplatinumbusinessgroupcom

Small Business is the Answer

FREE TRAINING FOR ENTREPRENEURS amp JOB SEEKERS - Polish your skills or makeyour firm standout thanks to the Entrepreneurial Institute of Washington

httpswwwyoutubecomchannelUCKL5YeVxL29HnNxqnb6hmXA

LIKE US on FaceBook if an Active Professional Development workshop provided by EIW

Construction University helps your firm or has benefited you

httpswwwfacebookcomEIWashingtonref=hl

From Bayne Jackie ltBayneJwsdotwagovgtSent Friday December 8 2017 10139 PMTo Daniel Seydel IICc Key Earl daneiwashingtonorg Nadeem Ismail Mussie Tewelde(mteweldehydro2geotechcom) graceflyrightaolcom Mary Wenner Watkinson LarrySubject RE Seydel Dan - WSDOT Disparity Study Presentation Public Testimony Hi Dan Thank you for providing such thoughtful public comments questions and testimony Regarding your public testimony below - I do not believe I am not able to answer questions if theyare public comments Please let me know what part of this email you would like clarification on andwhat part you would like considered public testimony I appreciate your thoughtful consideration of WSDOTrsquos implementation of our civil rights programs Best Regards Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov From Daniel Seydel II [mailtodanplatinumbusinessgroupcom] Sent Thursday December 7 2017 1123 AMTo Bayne Jackie ltBayneJwsdotwagovgtCc Key Earl ltKeyEwsdotwagovgt daneiwashingtonorg Nadeem Ismailltnipaintingearthlinknetgt Mussie Tewelde (mteweldehydro2geotechcom)ltmteweldehydro2geotechcomgt graceflyrightaolcom Mary Wennerltmwenn0108yahoocomgtSubject Seydel Dan - WSDOT Disparity Study Presentation Public Testimony Jackie

Per your request below are my questions and comments some of which were verbally sharedyesterday

Congratulations on receiving the blessing of additional technical assistance dollars andcompleting the DBE Disparity Study per your report

1) Do you have any reports on your outcomes from the past 5 years on DBE support servicesand specific key performance measures from previous years funding (ie how many firmsutilized what was the objectives were objectives met did outcomes meet total satisfaction ifnot why next steps what was the firms capacity before and after services were performed (iesales employees bonding if applicable insurance equipment line of credit if applicablenumbertype of customers how are they doing now etc))

2) What other changes or improvements other than allowing DBES to select their own serviceproviders and a staff change will be a part of this new program

3) Was consideration to provide the new mentor protege consultant rather than separating theactivities into support services andor technical assistance

Disparity study clarifications andor comments

1) Will WSDOT consider sponsoring legislation to support the policy changes and goalincreases to insure manditory goals wont be necessary

a) If not what measures will you grant primes to operate outside the box (ie entertain bestvalue over low bid modify responsiveness by subs to require adherence to meeting voluntarygoals developing standards around federally funded gccm and other low bid procurementsthat give powers to primes to meet objectives including but not limited to mentor protegerelationships joint ventures bond waiving techniques cash flow assistance material andequipment acquisition manufacturer development specifications that have only DBES orinclude equal number of DBES as non DBES as approved installers etc)

2) Will the disparity study consultant be available for implementation or information gatheringfrom other regions

3) What lessons did WSDOT learn that it did not know from the other study(s)

4) What would WSDOT do different (ie scope time line process approach etc)

5) Will WSDOT be hiring more diverse staff amp professionaltechnical service providers inother departments outside OEO to insure policies commitments and evaluations areperformed in manner that improves diversity that reflects the communities WSDOT serves bythoughtful and legal efforts increase participation thus creating successful outcomes includingpartnerships and collaborations

Thank you for your hard work

Daniel J Seydel IIPlatinum Group LLC2064060844f) 2062999934wwwplatinumbusinessgroupcom

Small Business is the Answer

FREE TRAINING FOR ENTREPRENEURS amp JOB SEEKERS - Polish your skills or makeyour firm standout thanks to the Entrepreneurial Institute of Washington

httpswwwyoutubecomchannelUCKL5YeVxL29HnNxqnb6hmXA

LIKE US on FaceBook if an Active Professional Development workshop provided by EIWConstruction University helps your firm or has benefited you

httpswwwfacebookcomEIWashingtonref=hl

From Erin EhlingerTo Bayne JackieSubject Support for WSDOTs proposed DBE goalDate Wednesday December 13 2017 115417 AM

I am writing to support the WSDOT recommended DBE Goal for FHWA contracts of 190 I also want to express my appreciation for the thoroughness of the WSDOT Disparity study and howthe study disclosed the disparity in WSDOT contracts that do not have a DBE or WBE goal ndash furtherreinforcing that all women-owned firms and minority owned firms face equity issues I remain concerned with the methodology required by the Code of Federal Regulations and case lawbecause of the dependence on the availability of firms in the calculation An unintendedconsequence of removing either gender or race from the goal is that many of these firms would goout of business the availability decreases and the formula then results in a smaller DBE goal Pleaselet me know how I can help influence a change to the CFR Thank you Erin Ehlinger

Erin Ehlinger PEPresident

24036 SE 47th StSammamish WA 98029erinehlingersmartcitytrafficcom425-221-0320

From Jackie EtterTo WSDOT Disparity StudySubject Why we need mandatory goalsDate Friday December 1 2017 61859 PM

As a DBE participating in bidding process I have found that regardless of the language which claims to insurethat disadvantaged business enterprises shall not be discriminated against the only way to ensure that this does nothappen is by mandating affirmative action goals Having been overlooked time and time again because of my gender when I have submitted bids that are verycompetitive with other bidders is very frustrating I have had many instances of companies using my price to getmy non DBE competitors to lower theirs The voluntary or laudatory DBE goals do nothing to ensure a level playing fieldThe only way to ensure non-discrimination is through mandatory goals

Jackie EtterWest Star Construction of Spokane

Sent from my iPhone

From Claudia HirscheyTo Key Earl Bayne JackieSubject WSDOT DBE Goal - Comment in supportDate Tuesday December 12 2017 61937 PM

Dear Earl and Jackie The WSDOT recommended DBE Goal for FHWA contracts of 190 is a small and important increasethat can further achieve equity in WSDOTFHWA contracting I am in support of the 19 DBE Goal I also want to express my appreciation for the thoroughness of the WSDOT Disparity study and howthe study disclosed the disparity in WSDOT contracts that do not have a DBE or WBE goal ndash furtherreinforcing that all women-owned firms and minority owned firms face equity issues I remain concerned with the methodology required by the Code of Federal Regulations and case lawbecause of the dependence on the availability of firms in the calculation An unintendedconsequence of removing either gender or race from the goal is that many of these firms would goout of business the availability decreases and the formula then results in a smaller DBE goal Sincerely Claudia S Hirschey PETransportation Consulting Servicesclaudiahirscheycomcastnethttphirscheytcscom2068564988 Mobile

From Nate ThomasTo WSDOT Disparity StudySubject WSDOT Proposes DBE goal of 19Date Thursday December 7 2017 42720 PM

The WSDOT should look into similar ways the Federal Gov has handled the equal opportunity forthose that fall under the DBE status and set aside specific projects for the DBErsquos and moreimportantly UDBErsquos so these companies have better chance of landing contracts Maybe a lot 10 ofthe DBE goal to set aside for only DBEs and other 9 goal met as it is done currently with COA onlarger contracts Nate ThomasSenior EstimatorD 5095688085 | C 5099941156331 North Fancher Road | Spokane WA | 99212

The information contained in this email including any attachments is confidential and may beprivileged It is intended only for the person or entity to which it is addressed and no waiver isintended by sending this email If the reader is not the intended recipient you are herebynotified that any review retransmission dissemination or other use of or taking any action inreliance upon this information is strictly prohibited If you have received this email in errorkindly notify the sender by reply email and delete the original message from any computerThank You

From Brian FujiiTo WSDOT Disparity StudySubject WSDOT propsed DBE GoalsDate Thursday December 7 2017 110638 AM

Good morning Jackie

I wanted to comment on WSDOTs proposed DBE goal to 19 I believe WSDOTs plan toincrease the overall DBE goal to 19 will provide greater opportunities for DBE contractorsin different disciplines to participate in federally funded contracts

Without the new DBE requirement and with Proposition 200 there are limited opportunitiesfor DBE contractors in disciplines different than the typical trucking flagging and rebar Inaddition there are no incentives for general contractors to go out beyond the usual truckingflagging and rebar DBE subcontractors

Increasing the DBE goals will provide opportunities for different DBE contractors in differentdisciplines to participate in WSDOT federally funded projects

Thank you for your time

RespectfullyBrian FujiiPresident Subsurface ConstructionP 2063836478F 2069604639MDBE 4M0024998

From Forman StephanieTo Bayne JackieCc Millar Roger christinenhanmailhousegov Claudia Hirschey Sarah Corbin Jiang Yingle

efaulknerenviroissuescom Diana Giraldo Kelly CheesemanSubject WTS - Disparity Study Comment LetterDate Friday December 15 2017 71020 PMAttachments 2017_Dec 15_WTSCommentLetter_WSDOT DBE Goalpdf

Dear Ms Bayne Please find our attached letter which summarizes the WTS Puget Sound Chapterrsquos support foradvancement of women in transportation and our comment letter regarding the recent DisparityStudy Please feel free to contact me if you have any questions or would like to discuss Sincerely Stephanie S Forman PEWTS Puget Sound President Transportation Project Manager

929 108th Avenue NE Suite 1300Bellevue WA 98004D 4254681548 M 2062291745stephanieformanhdrinccom

December 15 2017

Jackie Bayne Policy and Reporting Manager

Office of Equal Opportunity

Washington State Department of Transportation

PO Box 47314

Olympia WA 98504-7314

Dear Ms Bayne

On behalf of the Puget Sound Chapter of Womenrsquos Transportation Seminar (WTS) we would

like to thank the Washington State Department of Transportation for presenting to our

organization the DBE Disparity Study results We very much appreciated the presentation by Earl

Key Director of WSDOTrsquos Office of Equal Opportunity Teresa Berntsen (Director Office of Minority

and Womens Business Enterprises) as well as Leslie Jones (Director Sound Transit Office of Small

Business Development and Labor Compliance)

Following a review of the WSDOT Disparity Study and as a result of consultation with WTS

International we would like to provide WSDOT with our comments for your consideration

As you know WTS is an organization focused exclusively on attracting retaining and advancing

women in transportation By the year 2018 there will be thousands of vacancies in the

transportation industry for qualified professionals and while women account for more than half of

the worldrsquos workforce they are a very small minority in transportation disciplines

We are pleased that the outcome of the 2017 Disparity Study that recognizes the on-going barriers

for DBEs including women-owned businesses in transportation The WSDOT recommended DBE

Goal of 190 is a small and important increase that can further achieve equity in WSDOTFHWA

contracting We are also pleased that the 2017 Disparity Study has documented the disparity in

WSDOT contracts that do not have a DBE or WBE goal ndash further reinforcing that all women-owned

firms and minority owned firms face equity issues We are encouraged that the WSDOT has asked

FHWA to rescind the 2016 waiver

While WTSrsquo mission is specific to the advancement of women we are a race-neutral organization To

this end we are also deeply concerned about the underutilization of minority owned firms There is

no equity or ldquofair playing fieldrdquo without equity for all gender and races We remained concerned with

the methodology required by the Code of Federal Regulations and case law because of the

dependence on the availability of firms in the calculation An unintended consequence of removing

either gender or race from the goal is that many of these firms would go out of business the

availability decreases and the formula then results in a smaller DBE goal This consequence is

contrary to our mission

We look forward to our continued participation in WSDOTrsquos DBE advisory group we are anticipating

notice that the 2016 waiver has been rescinded and how we can work together to continue

advancing minority and women-owned firms in the transportation field

Sincerely

WTS Puget Sound Chapter

Stephanie Forman

President

C Roger Millar Secretary WSDOT

C Representative Adam Smith 9th Congressional District Washington co Christine Nhan

WTS Puget Sound Chapter

PO Box 3461

Bellevue Washington 98009

From Dave Gent - WAPATo Bayne JackieCc Tom GaetzSubject WAPA Public Comments - RE WSDOT FHWA Disadvantaged Business Enterprise Proposed GoalDate Friday December 15 2017 14119 PMAttachments 12152017 DBE Proposed Goal - WAPA Public Comments Letterpdf

Good afternoon Jackie Please find attached WAPArsquos ldquofor the public recordrdquo comments with respect to WSDOTrsquos proposedDBE Goals FHWA funded work I assume that the Master DBE Directory was not sent to you this week so as a result we were notable to review the directory before the close of the public comment period That fact is noted withinour comment letter Thank you for your efforts Have a good weekend

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Friday December 8 2017 1219 PMTo Dave Gent - WAPA ltdavegentasphaltwacomgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hello Dave WSDOT did not take possession of this directory as part of our review process We will provide youwith the records without submitting a formal request However we need to get them from theconsultant first I will hopefully have them to provide next week I will keep you updated on therequest Have a nice weekend Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal Opportunity

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

December 15 2017

Jackie Bayne Policy Manager WSDOT Office of Equal Opportunity Delivered via e-mail to BayneJwsdotwagov RE Public Comment (as requested) to Proposed Overall DBE Goal for the FHWA (2018 ndash 2020) Ms Bayne Thank you for your presentation via webinar on December 5 2017 outlining WSDOTrsquos evaluation process used to determine the proposed overall DBE goal for the FHWA Thank you also for the Colette Holt amp Associates (CHA) DBE Advisory Group presentation made on September 14 2017 Both presentations helped to distill the findings of the 2017 Disparity Study produced by CHA In response to Earl Keyrsquos initial informal request to comment on the proposed overall DBE goal made during the DBE Advisory Committee teleconference held on October 12th we provided a list of reasons that we believe justify a lower DBE goal than is now being proposed Our initial response to Mr Keyrsquos request did not serve to influence WSDOT and the current proposed goal remains at 190 The arguments provided on October 12th against the significant increase in the proposed DBE goal (versus the previous goal and recent historic DBE participation) are repeated and supplemented below and will serve as the Asphalt Pavement Associationrsquos (WAPArsquos) official public comments

In concert with WSDOT and the OWMBE WAPA and the construction firms that WAPA represents have demonstrated a commitment to the principals of equal opportunity for all ldquoready willing and ablerdquo firms for the entire history that our DBE program has been in place WAPA has continuously demonstrated its commitment to the goals of the DBE program and for increasing the representation of disadvantaged groups within our industry as both workers and owners of firms Please recognize that WAPArsquos oversight and critique of the DBE program has always attempted to balance the principals of fair and open competition with the practical aspects of the low bid compressed schedule high performance standards demanded within the WSDOT marketplace Our comments below are meant to enhance WSDOTrsquos and OWMBErsquos understanding of the market and to hopefully have WSDOT fully consider all of the dynamics that are at play when proposing its Triennial DBE goal for FHWA projects Current DBE Capacity vs Historically Robust Market In advocating for a realistic and defensible DBE goal it has always been WAPArsquos position that it is paramount that the realities of the marketplace and true certified DBE subcontracting capacity should be a primary standard While a ldquostretchrdquo goal may appear to be progressive on its face it comes with consequences for all of the parties involved in the WSDOT federal aid contracting arena To balance the dynamics of the WSDOT contracting system the DBE goal should be tempered with the realities of the market and with a true measure of the underlying effectiveness of the DBE support services available to contractors

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 2 of 6 The first point of fact that has not been given any apparent consideration by WSDOT in its evaluation of the current capacity of certified DBErsquos is that there is an historically robust workload scheduled to be performed in the 2017 through 2022 time-frame particularly in the Puget Sound ldquoEverett to Olympiardquo corridor By WSDOTrsquos own estimates (see Attachment A) public works construction project starts in the 2018 to 2022 time-frame in this region will exceed $333 billion (B) counting the work projected from just five public entities WSDOT will be taking a decidedly ldquoback seatrdquo role during this period to Sound Transit which will have construction project starts of $226B vs WSDOTrsquos projected volume of $67B WSDOTrsquos summary publication titled Washington State Department of Transportations Proposed Federal Highway Administration Triennium Disadvantaged Business Enterprise Goal Federal Fiscal Years 2018-2020 states correctly that ldquoIncluded among the types of evidence that must be considered are the current capacity of DBEs to perform work on WSDOTrsquos federally-assisted contracts as measured by the volume of work DBEs have performed in recent yearshelliprdquo (Step Two Adjustment discussion) With the Sound Transit program being over 300 larger than the total WSDOT program in this region a sober assessment of true certified DBE capacity in the next three years needs to be considered by WSDOT If the huge construction boom over the next five years does not prompt a Step Two Adjustment then it becomes obvious that the realities of the market are being ignored by WSDOT for DBE goal setting Put another way if the 2018 through 2022 level of contracting activity does not warrant a goal adjustment what will DBE Access Barriers Not Yet Addressed The CHA 2017 Disparity Study points out multiple recommendations in Section VII that impact DBE participation and access to the market Assessments relating to those impacts and the state of maturity in addressing the CHA recommendations should be considered when assessing the DBE goal Many of the CHA recommendation have not been adequately addressed at this point in time Some of the prime examples are listed below Increase Certification and Expertise ndash The Disparity Study as explained to us includes all minority- (MBE)

and women-owned (WBE) firms that could be readily identified that perform work within Washington State and that perform work within the NAICS code framework CHA developed to cover WSDOT project work During the various presentations relating to the Disparity Study WSDOT representatives said that outreach to currently non-certified MBE amp WBE firms has increased and that WSDOT aspires to bolster its list of certified firms in the future but this effort is just beginning and the success of the effort needs to be means tested against the broader population of MBE amp WBE firms included in the CHA base line evaluation As the Disparity Study uses a much broader population of MBE WBE contractors to arrive at its conclusions (both non-certified firms and firms too large for certification) it follows that the calculated DBE proposed goal is overstated to include capacity that does not currently exist within WSDOTrsquos certified DBE framework Unless OMWBE is experiencing sudden and unprecedented success in recruiting new MBEWBE firms the DBE goal should be adjusted downward to recognize that the ldquoready willing and ablerdquo contractors that WSDOT has certified is only a subset of the total MBEWBE contracting population used in the Disparity Study evaluation

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 3 of 6

Until the promised WSDOT outreach registration efforts result in a substantial increase in available certified DBE firms it is premature to count the entire population of minority- and women-owned contractors as available to participate in WSDOT contracting It is unreasonable for WSDOT to project availability capacity using the entire MBEWBE population when only its currently truncated list of certified firms is acceptable to count toward the DBE goal

A corollary to the Increase Certification and Expertise discussion above is that the calculation of the Base Figure evidently includes the broadest practical population of MBE and WBE firms identifiable (without a review of the CHA Master DBE Directory which has not been supplied prior to the close of the public comment period the scope of the directory cannot be ascertained) If this directory includes a large population of MBEWBE firms that are not certified or are too large to be certified then the Base Figure calculation should be adjusted to reflect that certified DBE firms are a fraction of the total MBEWBE firms used to arrive at the 19 suggested DBE goal With respect to the CHA Master Directory it is our understanding the WSDOT was not given the directory as part of its evaluation of the Disparity Study and it follows that it did not evaluate the proposed DBE goal in the context of the CHA Master DBE Directory In our opinion an informed decision on adjusting the CHA baseline goal calculation can only be done after an extensive evaluation of the CHA Master DBE Directory If this has not been done WSDOT has not exercised due diligence in evaluating the context and underpinnings of the CHA Disparity Study and a certified DBE Triennium goal proposal to the FHWA is premature Increase Contract ldquoUnbundlingrdquo ndash If this proposed strategy (suggested by the CHA Study) is undertaken

certified DBE Subcontractors currently available will be engaged as Prime Contractors and the value of their prime contracts will bolster the overall percentage of certified DBE contracting but a systematic effort and strategy to ldquounbundlerdquo has not been articulated by WSDOT The key question of how this effort can be accomplished without increased cost to the taxpayers and increased inconvenience for the traveling public As noted in the CHA study (page 129 final paragraph) ldquoUnbundling must be conducted however within the constraints of the need to ensure efficiency and limit cost to the taxpayersrdquo As of this writing no overarching strategy for further unbundling with proper accountability has been articulated by WSDOT to the DBE Advisory Group

Review Insurance and Experience Requirements ndash Impediments to certified DBE participation due to

necessary insurance and experience standards cannot be solved by the prime contracting community Unless and until WSDOT puts together programs to address the burden of the substantial risks shouldered by Prime Contractors on WSDOT contracts barriers for streamlined utilization of certified DBE firms will continue to exist These market driven barriers will continue to dampen the availability of certified DBE Subcontractors that are able to perform within WSDOTrsquos strict criteria without unduly transferring risk to the Prime Contractor

Better Partnering to Overcome DBE Failures to Perform ndash Prime Contractors are held fully responsible to maintain the project schedule and are subject to project liquidated damages even when they may be struggling to deal with Subcontractor performance issues It is well-established that replacing a certified ldquocondition of awardrdquo (COA) DBE Subcontractor is very onerous and likely very costly to the Prime Contractor Unfortunately the imposition of strict and often counter-productive commercially useful function (CUF) rules often compound this issue as Prime Contractors cannot help COA DBE Subcontractors work through capacity expertise or time-related issues that impact timely performance

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 4 of 6

WSDOT needs to be a much better partner in the process of dealing with under-performing or non-performing certified DBE Subcontractors The current standard operational procedure places all of the exposure for non-performance onto the Prime WSDOT does not have an equitable system to account for non-performing or under-performing certified DBE Subcontractors hired as a condition of award (COA)

Performance Information and Training ndash Commercially useful function rules (CUF) and the lack of clear benchmark definitions for good faith effort (GFE) standards remain barriers for improving accountability within the DBE system and in turn lead to distorted DBE participation rates These items remain amorphous due to lack of training or lack of historic information Chronic uncertainty exists regarding both of these items Until WSDOT changes and improves its approach to provide transparency and certainty for both the prime bidding amp subcontracting parties true certified DBE capacity will continue to be masked and the resultant higher subcontracting costs associated with a distorted marketplace will continue to be hidden

WAPA respectfully suggests that simply adding an ldquoEstimated DBE Subcontract Premiumrdquo line to the current DBE bid forms would help to establish benchmarks that could begin to be used to ldquomeans testrdquo good faith efforts If this information had been gathered over the last 20 years of the DBE program meaningful GFE standards could have been developed and could be in place today

An in-depth review of CUF standards would also provide clarity For instance it is unclear why force account items performed by certified DBEs are currently counted at only 50 of the value of the work How was this benchmark established Has it been reviewed since imposed Did it ldquosolverdquo whatever inequity WSDOT was trying to address Better clarity may lead to more expanded opportunities for certified DBE Subcontractors

Enhanced Supportive Services and Business Development Programs ndash Unless and until stronger programs of these types are shown to be effective in boosting certified DBE business development increased DBE participation due to stronger business acumen should not be relied upon when setting the new DBE goal

Does OMWBE have a reasonable expectation that future plans for enhanced and expanded programs will be more successful than those employed in the past Assuming that certified DBE Subcontractors will be better prepared to deal with the WSDOT contracting environment than in the past should not be relied upon to boost DBE participation goals Especially troubling were the multiple references within the CHA report highlighting that DBEs believe that the staff at OMWBE lack a deep knowledge about the highway construction industry (eg Study page 129 2nd paragraph) Does OMWBE have a path forward that will address this issue and thus improve supportive services impacts

Develop a Bonding and Financing Program for SBEs ndash This is completely outside of the prime contracting

communityrsquos scope of influence WSDOT must find a way to institute changes that both protect the taxpayer and help increase certified DBE bonding capacity and access to financing ndash very large hurtles To assume that these hurtles can effectively be overcome within the 2018 ndash 2020 time frame when they have been chromic issues for the past 20 plus years of DBE program development is not rational

A helpful innovation would be for WSDOT to underwrite performance and payment bonds for certified DBE firms or to create promote a system that helps certified DBE firms obtain private bonding Bridging the gap to address capital access and performance risks (bonding) must be championed by WSDOT

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 5 of 6

Base Figure Adjustment to Address Available Subcontract Volume and DBE Prime Contracts It is a fact that mid- to large-sized MBEWBE firms that compete both as Prime Contractors and as Subcontractors are not eligible to be OMWBE certified DBEs Further the current amount of contract unbundling for greater DBE access to WSDOT prime contracting (see below) accounts for a very low dollar volume of prime contracts performed by certified DBEs Finally by specification (WSDOT standard specification 1-081) Prime Contractors are obligated to perform 30 of the total volume of the work (less specialty work) or stated another way a maximum of 70 of the dollar volume on WSDOT projects is typically available to award to subcontractors These market dynamics are NOT addressed in the Disparity Study A responsible DBE goal made absent of these facts should not be implemented A reasonable adjustment to the proposed 19 DBE goal is presented below

bull The percent of WSDOT prime contracts awarded to certified DBE firms is likely less than 5 by total WSDOT

contract volume Assuming this approximation is valid (likely very conservative) then the amount of WSDOT contract work available to certified DBE firms via subcontracting should be adjusted to account for the factors outlined above The Base Figure (19) should be adjusted to recognize that a 70 maximum subcontractor participation is available (in the numerator) and to account for the assumed 5 certified DBE prime contracts in the denominator Reasonable Base Figure Adjustment 19 (proposed) x 70 subcontracts available divide 95 of Non-Certified DBEs as Prime Contract Volume = 190 x 0737 = 140 adjusted goal This is an adjustment based on the practical dynamics of the WSDOT contracting system and it represents a more realistic look at the true subcontract volume that is available for Prime Contractors to award to certified DBE firms

Conclusions

Until the items listed above are addressed and in place it is not reasonable to believe that DBE goals can be increased by nearly 163 (from 117 to 190) When the projected robust public works contracting market is appropriately considered the true availability of certified DBE Subcontractors for WSDOT contracts will be truncated due to demand across all public works sectors With multiple strong public works programs competing for a limited population of certified DBEs the ability to meet increased WSDOT DBE goals will be severely challenged Without very clear concise and transparent good faith effort rules the ability to address DBE goals that greatly overestimate true near term certified DBE capacity will result in non-attainment bid day chaos failures to perform andor rapidly increased pricing

The clear conclusion is that at this point in time under the current circumstances without effectively instituted new programs rules procedures that could enhance the certified DBE programrsquos overall effectiveness we believe that the DBE goal should remain at or near 12 As OMWBE documents and demonstrates its future successes in improving access and eliminating capacity barriers only then should the DBE goal be re-evaluated and increased

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 6 of 6

In closing please remember that it is rare that the contracting community is asked our opinion with respect to the WSDOTrsquos DBE policies and so this letter is somewhat a vehicle to highlight collective concerns It is our belief that the majority of the Prime Contractors in Washington state support the objective of creating a level playing field for ready willing and able DBEs

If the level playing field is not yet possible in the absence of the DBE program then the key is to set realistic goals that recognize reflect and address the hard realities and market dynamics imposed by WSDOTrsquos bedrock environment of awarding contracts to the lowest cost responsible and responsive Contractor

Respectfully submitted Washington Asphalt Pavement Association

David Gent Tom Gaetz Executive Director Senior Advisor

Attachment A ndash WSDOT Central Puget Sound Public Works Contracting Projection 2018 - 2022

Con

stru

ctio

n Pr

ojec

t Sta

rts

2018

-202

2S

ound

Tra

nsit

$22

6 B

SD

OT

$08

B

Tran

sit

amp O

ther

s$1

7 B

WS

DO

T$6

7 B

Por

t of

Sea

ttle

$15

B

TOTA

L$3

33

B

Source N

ov 1

9 2

017

pres

enta

tion

to W

APA

Ann

ual M

eetin

g

Attachment A

Work (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Dave Gent - WAPA [mailtodavegentasphaltwacom] Sent Thursday December 7 2017 144 PMTo Bayne Jackie ltBayneJwsdotwagovgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hi again Jackie Irsquom fine thanks and hope you are the same Interesting The Master DBE Directory is the basis for and integral to the conclusions of the DisparityStudy Is it not then part of the information needed to fully review and comment on the DisparityStudy Was it not provided by CHA to WSDOT for review We are trying to fully understand thestudy and if this directory was part of the study why would it need to be obtained by a publicrecords disclosure It should be in the public domain and not restricted from ease of access If you are sure that a public records request is needed Irsquoll start that process but we will need tonote that point of fact when we submit our public comments If you are able to reconsider please let me know Respectfully

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Thursday December 7 2017 126 PMTo Dave Gent - WAPA ltdavegentasphaltwacomgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hello Dave I hope you are doing well

That information would likely be obtained through a public disclosure request Best Regards Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Dave Gent - WAPA [mailtodavegentasphaltwacom] Sent Thursday December 7 2017 113 PMTo Bayne Jackie ltBayneJwsdotwagovgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Jackie Can you please provide an electronic file or provide a weblink for the Master DBE Directory thatColette Holt amp Associates developed for the WSDOT Disparity Study 2017 (first referred to on Page 8of the Disparity Study) I did not see a link to this Master DBE Directory within the study Thanks

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Friday October 27 2017 1118 AMTo Kenyon Wendy ltKenyonWwsdotwagovgt Adams E W ltewadamssystemsclcomgtAdekoyaAndrew ltandrewadekoyabccomgt AlyssaBalllegwagov Anindita Mitraltamitracrea-affiliatescomgt APRISeattlehotmailcom Armstrong CharlotteltCharlieAatgwagovgt Ato Apiafi Architects PLLC ltatoaatoapiaficomgt benzfanwaorgBerntsen Teresa (OMWBE) ltTeresaBomwbewagovgt Billingsley Andrealtbillinawsdotwagovgt Bramlet Erica ltEricaBramletlegwagovgt Brooks Julius

ltBrooksJwsdotwagovgt Brown Jason ltjbrownldccorpcomgt bwallacenwlaborersorgCamden Allison ltCamdenAwsdotwagovgt carlllivingstongmailcom Cerda OscarltCerdaOwsdotwagovgt Christopher Chris ltChristCwsdotwagovgt ckerneycaawagovdanplatinumbusinessgroupcom davegentasphaltwacom David BalltDavidsignsnowmillcreekcomgt Davis Khalia ltDavisKhwsdotwagovgt Davis RaShelle (GOVltrashelledavisgovwagovgt Dayton Jo ltDaytonJwsdotwagovgt ddhondtagcwacomDebbieDriverlegwagov Dennis ltdennisahlkiewitcomgt dmcleodnwlaborersorgdrart6651gmailcom Duncan Enid lthigradeincgmailcomgt EltonltEltonwashingtonstatetruckingcomgt eprincecaawagov flemosldccorpcomfmartineznwmtnmsdcorg geoffshookatkncom glovelady ltgloveladyexcelglovescomgtGrabow Katie ltkgrabowsystemsclcomgt Guilfucci Jackie ltJackieGuilfucciskanskacomgt HealyLinda ltHealyLwsdotwagovgt Higginbotham Breanne ltHigginBwsdotwagovgt HirscheyClaudia ltclaudiahirscheycomcastnetgt Holt Colette ltcoletteholtmwbelawcomgt Huff JohnltHuffJwsdotwagovgt Iniguezchawagov JacksonMaynardlegwagov Jimmy Matta(jmattaalcantarassoccom) ltjmattaalcantarassoccomgt kellywickergovwagov Key EarlltKeyEwsdotwagovgt Kirk Jon ltjkirkwhhnfscomgt Kris Purrier ltkpurrierhwageocomgtleewabuildingtradesorg lesliejonessoundtransitorg Liz Evans ltlevansagcwacomgt LopezErin lterinlopezdeswagovgt Martha Cerna ltMarthaPSLCCORGgt Martin-Arnold EdwinaltMartinEwsdotwagovgt Mary Lerdahl ltmarydbeelectricinccomgt McCarty Hannahlthannahmccartylegwagovgt Melissa L Boyles ltmelissaboylesmwbelawcomgt Metcalf KeithltMetcalKwsdotwagovgt michaelicapaawagov Michelle ltMichelleTTCC26netgt MillarRoger ltMillarRwsdotwagovgt Nakamura Jason ltjasonnakamura1-alliancecomgtNavarroLportseattleorg olliepmt-solutionscom pastorbanksesbctacomacom PatrickHughes ltphugheshughesgroupbizgt Petersen Jodi (FHWA) ltJodiPetersendotgovgtrabbottliunaorg rcarmsteadgmailcom ricemportseattleorg Riley D ltdrileylydigcomgtSeling ltSelingjpfranciscomgt sherryharrisergosynchcom Stell MellodyltStellMwsdotwagovgt terigobintulaliptribes-nsngov timwilliamfactorycom tinaterra-tdicom tkellyldccorpcom tomgaetzmsncom vcollinsacec-waorgverlenejazzmsncom Wang Albert ltWangAatgwagovgt Waugh GregltGregWMaxKuneyComgt Yates Henry ltYatesHWSDOTWAGOVgtCc Tom Gaetz lttomgaetzmsncomgt Dave Gent - WAPA ltdavegentasphaltwacomgt VanCollins ltvcollinsacec-waorggt Daniel Seydel II ltdanplatinumbusinessgroupcomgt MaynardJackson ltJacksonMaynardlegwagovgt Carl Livingston ltcarlllivingstongmailcomgt DonMcLeod ltdmcleodnwlaborersorggt JIMMY MATTA ltjimmymattamsncomgt Prince Ed(CAAA) lteprincecaawagovgt David DHondt ltddhondtagcwacomgt Irene Reyesltgloveladyexcelsupplycompanycomgt McDaniel Craig ltMcDaniCwsdotwagovgtsherryharrisergosynchcomSubject WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Good morning On Monday October 30th WSDOT will be releasing the proposed overall Federal HighwayAdministration Disadvantaged Business Enterprise goal attached for public comment throughDecember 15 2017 This overall DBE goal is based upon the recently completely DBE ProgramDisparity Study WSDOT is proposing a 19 percent overall DBE participation goal on Federal Highway

Administration-funded projects for federal fiscal years 2018 through 2020 DBE goals fortransportation projects that receive federal funds represent a percentage of the value of work inwhich minority- and women-owned businesses should participate Once finalized and submitted toFHWA early next year the goal will be effective through Sept 30 2020

The purpose of the DBE program is to create a level playing field for firms owned and operated bydisadvantaged individuals wanting to participate in federally assisted highway transit and aviationprograms The attached overall DBE goal is for FHWA funded projects WSDOT will be updating theFTA and FAA overall DBE goals in the near future

If you have any questions please contact Earl Key Director of the Office of Equal Opportunity at3607057091 or KeyEwsdotwagov Thank you Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

  • Proof-Of-Publicationpdf
    • Mediapdf
      • AGC
      • Daily Journal
      • Daily Medium
      • DBEGood
      • OMWBE
      • Seattle Medium
      • Tabor 100
      • The Chronicle
      • Tukwila
        • King County
          • Public-Comments-20180111pdf
            • 19 DBE Requirement(1)
            • AGC Comments on Proposed 10 Goad
            • Backstrom Curb amp Sidewalk
            • comments on WSDOT proposed DBE goal
            • Cowlitz County Public Works
            • DBE Contracting goals
            • DBE Goal
            • DBE Program Disparity Study
            • Disparity Study Comments from City of Spokane
            • FW_ WSDOT News - WSDOT seeks comments on propos
            • Proposed DBE Goals
            • RE_ DBE Contracting Goal Comments
            • Re_ DBE Goal Comments
            • Re_ Seydel Dan - WSDOT Disparity Study Present
            • Support for WSDOTs proposed DBE goal
            • Why we need mandatory goals
            • WSDOT DBE Goal - Comment in support
            • WSDOT Proposes DBE goal of 19
            • WSDOT propsed DBE Goals
            • WTS - Disparity Study Comment Letter

13

$$amp(amp

)))13 +++ --------- -----+ 01234567894lt486=4gt4428050lt0A7BC3164C7D - + 13EF$ampGHH(HI-+E13 +HJ4gt2KAL62127CMN=gt4513 - OPQ R(amp++ S +TU13 OPI++ OPQF$ampGHH(F(G$ampVWWXYZZ[]

httpwwwchronlinecomnewswsdot-seeks-public-comment-on-disadvantaged-business-enterprisearticle_f5c753ea-be61-11e7-966c-972f6769d8a6html

WSDOT Seeks Public Comment on Disadvantaged Business Enterprise By The Chronicle Oct 31 2017

The Washington State Department of Transportation will be accepting public comments about the departmentrsquos proposed Disadvantaged Business Enterprise goal for federal contracts

The goal is for transportation projects receiving Federal Highway Administration funds to have 19 percent of the value of work done by minority or women-owned businesses during the 2018 through 2020 fiscal years

ldquoThe purpose of the DBE program is to create a level playing field for firms owned and operated by disadvantaged individuals wanting to participate in federally assisted highway transit and aviation programsrdquo a press release from WSDOT said

A series of public meetings will be held to discuss the goal in Spokane Vancouver and Seattle

For those who are unable to attend the in person meetings a webinar will be hosted from 230 to 430 pm Thursday Dec 5 The webinar is free but registration is required To register email DisparityStudywsdotwagov

Page 1 of 2WSDOT Seeks Public Comment on Disadvantaged Business Enterprise | News | chronlin

1112018httpwwwchronlinecomnewswsdot-seeks-public-comment-on-disadvantaged-business-

Written comments can also be submitted by mail or email to Jackie Bayne policy and reporting manager for the department of transportation at Washington State Department of Transportation Office of Equal Opportunity PO Box 47314 Olympia 98504 or by email at disparitystudywsdotwagov Comments will be considered through Dec 17 2017

More information about the goal is available at all regional offices or at the main office in Olympia located at the Transportation Building 310 Maple Park Ave SE Olympia More information can also be found online at wsdotwagovequalopportunity

Page 2 of 2WSDOT Seeks Public Comment on Disadvantaged Business Enterprise | News | chronlin

1112018httpwwwchronlinecomnewswsdot-seeks-public-comment-on-disadvantaged-business-

larr Halfway there SR 8 fish barrier removal reaches milestone New SR 26 traffic cameras available rarr

WSDOT seeks comments on proposed DBE contracting goal for highway projects

December 1 2017 | No Comments

WSDOT is seeking comments on proposed participation goals for Disadvantaged Business Enterprises on upcoming Federal Highway Administration contracts a Yakima meeting has also been added to the schedule Source WSDOT Permalink WSDOT seeks comments on proposed DBE contracting goal for highway projects

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Page 1 of 3WSDOT seeks comments on proposed DBE contracting goal for highway projects | Tukw

1112018httptukwilatowingcom20171201wsdot-seeks-comments-on-proposed-dbe-contracting

From Liz EvansTo Bayne JackieSubject AGC Comments on Proposed 10 GoadDate Tuesday December 12 2017 50314 PMAttachments WSDOT Proposed Goal - AGC Comments FINALdocx

Hi there Jackie Attached are AGCrsquos comments on WSDOTs proposed 19 goal We will also be mailing you a copy Thanks for the opportunity to comment and we hope you find it helpful Regards Liz Liz Evans CAE Northern District ManagerAGC OF WASHINGTONTel 3602238757 | wwwagcwacom JOIN US for the 2018 AGC of Washington Annual Convention amp Technology Expo Jan 26

CUsersmwillmsPicturesInland AGCLogo_RGB_Half_5in

December 12 2017

Page 5

December 12 2017

VIA EMAIL amp US MAIL

Ms Jackie Bayne Policy amp Reporting Manager

Washington State Dept of Transportation

210 Maple Park Ave SE

PO Box 47314

Olympia WA 98504

RE WSDOT Proposed FHWA Triennium Disadvantaged Business Enterprise Goal

Dear Ms Bayne

This letter summarizes the views of the Associated General Contractors of Washington and Inland Northwest Associated General Contractorsrsquo (hereafter referred to collectively as AGC) regarding the Washington State Department of Transportationrsquos (WSDOT) recently proposed FHWA Triennium Disadvantaged Business Enterprise (DBE) Goal (the ldquoProposed Goalrdquo) AGC shares WSDOTrsquos commitment to continue the promotion of DBE firms but AGC is concerned the Proposed Goal which is a significant increase from the previous goal and actual utilization may have unintended consequences and could impose significant burdens on both prime contractors and DBE contractors alike AGC requests WSDOT reconsider its Proposed Goal and adjust the Proposed Goal to account for inevitable availability and capability issues including the lack of a formal retraction of the non-minority woman owned business waiver that makes up over half of the Proposed Goal Implementing an unachievable goal will only be to the detriment of the DBE program

1 AGCrsquos Membersrsquo Interest in WSDOTrsquos Proposed Goal

Together AGC of Washington and Inland Northwest AGC represent and serve the commercial industrial and highway construction industry These professional associations of commercial contractors are comprised of more than 900 members who have joined together to enhance the performance of their industry and build a better climate for construction operators many of which are small and closely held businesses

Like WSDOT AGC is firmly committed to the principals of equal opportunity and promoting efforts to ensure minority women and veteran owned businesses are properly represented In both its political advocacy and membership programs AGC has demonstrated its commitment to increasing the representation of disadvantaged groups in the construction industry as both workers and owners of firms For AGC this is both an issue of principles and a practical one The construction industry as a whole is facing a critical shortage of workers and it is imperative that the industry attract new participants Among AGCrsquos activities demonstrating this commitment are the following

middot AGC has an ongoing ldquoContractor Exchangerdquo program through which small minority- and women-owned subcontractors are offered one-on-one networking opportunities with established general contractors

middot The AGC Education Foundation provides financial support to construction-related programs in K-12 schools and conducts outreach specifically targeted at low income disadvantaged and female students

middot More than 2500 students most from inner-city schools participate in annual AGC-sponsored Construction Career Days in King Pierce and Spokane Counties

middot AGC supports the Pre-Apprenticeship Construction Training (PACT) program at Seattle Vocational Institute This program is focused on preparing underrepresented communities to be highly qualified applicants and successful apprentices in the construction trades

middot AGC is a sponsor of the Turner School a training course for minority- and women-business owners in the construction industry

middot AGC supports the National Association of Women in Construction (NAWIC) which provides professional development and other services to its members

middot AGC routinely supports legislative efforts aimed at supporting small businesses and encouraging small business participation

middot AGC recently formed a Diversity and Inclusion Committee comprised of both prime and DBE participants The purposed of the committee is to expand opportunities for DBE members and to help AGC consider diversity in decision-making Recently AGC approved a deeply discounted introductory dues structure for certified DBE members

middot AGC is a WSDOT partner on the new mentorproteacutegeacute program

AGCrsquos experience has been that the most effective approach is to help make emerging businesses successful through outreach training and public policies that will grow their capacitymdashnot by imposing mandates without clear evidence as to the mandates feasibility

2 WSDOTrsquos Proposed Goalrsquos Impacts To The Construction Industry

WSDOTrsquos Proposed Goal is 190 The Proposed Goal is based upon the recent Collete Holt amp Associates (CHA) Disparity Study released in 2017 With respect to availability the Disparity Study reports the following weighted availability for FHWA-Funded projects

Thus the 190 goal factors in Black Hispanic Asian Native American and White Women into its availability As indicated however this 19 goal raises a number of concerns

a WSDOTrsquos 19 Proposed Goal Represents a Significant Increase Without Concrete Evidence of Available And Capable DBE Firms

First WSDOTrsquos Proposal Goal of 190 represents a significant increase as compared to actual DBE participation (141 in 2014 117 in 2015 and 151 in 2016) as well as the last FHWA proposed goal of 116 for 2014-2018 See WSDOTrsquos Proposed Goal and Interim FHWA Overall DBE Goal Methodology FFY 2014-2018 The Proposed Goal is 74 more than the last goal which represents a 638 increase and a 52 increase over the average actual utilization for 2014-2016 While Contractors were exceeding the previous 116 goal this is primarily based on the fact that WSDOT previously requested a waiver to consider non-women-owned businesses and the waiver was not granted and effective until June 2017 (meaning that for 2014-2016 women were counted towards race-conscious goals and inevitably a higher overall percentage of DBE firms were utilized)

Contractors struggle to meet present DBE goals due to the relatively low availability of experienced and certified DBE firms By increasing the goal WSDOT is understandably trying to increase the participation of underrepresented firms Drastically increasing the goals (by over 5 of actual utilization) without concrete evidence that there is sufficient availability andor capability of such firms however will have the opposite effect Notably this lack of availability and capacity of DBE firms was discussed in detail in the Disparity Study For example the CHA Disparity Study notes a number of concerns of DBE firms while technically ldquoavailablerdquo with respect to the goal percentages are unable to meet the requirements necessary to fulfill the contract including purchasing the equipment necessary having available labor and ability to meet insurance and financing requirements Thus while there may be ldquoavailablerdquo firms there is not clear evidence (and if fact evidence to the contrary) that those available firms are capable and available to perform the majority of the FHWA-Funded contracts let by WSDOT

An additional example affecting DBE capability and availability that is not factored into the CHA Disparity Study or WSDOTrsquos Proposed GOAL is DBE ability to enter into Project Labor Agreements (ldquoPLAsrdquo) WSDOT has indicated their interest in pursuing a PLA AGC Members have raised concerns based on repeated experiences that many DBE firms due to the administrative and cost impacts refuse to enter into PLAs precluding those firms from performing certain work or increasing costs Again this lack of ability (or refusal) to perform should also be factored into WSDOTrsquos Proposed Goal which is not currently the case

b The Proposed Goal Does Not Account For The Current Non-Minority Woman Owned Business Waiver Still In Place

Second despite the significant increase WSDOT does not account for the current waiver of non-minority women owned businesses that remains in place As noted in WSDOTrsquos proposal comments WSDOT previously sought and received a waiver of the regulation that White females as a group are presumptively disadvantaged This waiver was heavily criticized by many including AGC and the results of the most recent CHA Disparity Study confirmed that White females are presumptively disadvantaged and do not enjoy a level playing field for USDOT-assisted contracts Therefore the CHA Disparity Study recommends that this group be returned to the status of goal credit eligibility WSDOT has sought a recession of the waiver but has not yet to our knowledge received a rescission of the waiver Nevertheless the 19 Proposed Goal still includes White women In fact of the 19 availability percentage White women represent 103 (over half) Accordingly for WSDOT to proceed with the 19 goal WSDOT must receive the rescission of the waiver for this goal to be even remotely possible to achieve If the rescission is not received the Proposed Goal must be adjusted

C The Proposed Goal Does Not Account For Availability Differences Across The State

Third the Proposed Goal does not account for availability difference across the state Eastern Washington contractors with an even scarcer pool of available and qualified DBE firms in the area as is the case now will be forced to subcontract to Western Washington firms paying transportation and per diem premiums for such work The CHA Disparity Study again provides numerous excerpts of anecdotal evidence demonstrating that the goals in Eastern Washington are too high A few of the contractor comments on the topic are as follows

When you apply those same goals to a different geographic region a different project site for a large firm to meet those goals is difficult because theres not necessarily the expertise in parts of the project that were submitting on

Theres very few DBEs over here [in Eastern Washington] Next year theres going to be even more work over here What are we going to do with all these goals We always meet the goals like I said youve got three four DBEs over here to do all the work and then they cant perform

There are just no [minority-owned] DBEs available in eastern Washington

See CHA Disparity Study at p 54 Again these are factors that should be taken into account in developing the Proposed Goal or at the very least its application WSDOTrsquos Proposed Goal however is silent as to this significant issue

When the lack of available firms with the capacity to perform significant DBE projects is coupled with the increased goals the price of WSDOT contracts will inevitably increase to the significant detriment of Washington taxpayers and the public entities Inevitably with a lack of available qualified firms the lack of competition will become evident and small qualifying contractorsrsquo prices will increase due to supply and demand principles as they become selected for projects and less able to take on additional work These increased DBE contract values will be passed on to the public agency and taxpayers which translates into fewer dollars available for the sorely needed and promised infrastructure upgrades In addition the instance of bid protests will inevitably increase potentially delaying projects and further diverting agency resources from badly needed infrastructure upgrades to resolving unnecessary disputes or rebidding the projects altogether

Finally faced with such drastic and potentially impossible requirements if adjustments are not made contractors may focus more on demonstrating good faith efforts Both a contractor who meets the required goal and a contractor that demonstrates good faith efforts are eligible for award It is likely that the contractor relying upon good faith effortsmdashwho will have a lower price than the other contractor who sacrificed price to actually meet the goalmdashwill be selected by the public agency This outcome will erode the total percentage participation of eligible firms and would clearly be inapposite of WSDOTrsquos intentions

3 Conclusion and Request

AGCrsquos members have asserted these and multiple other concerns Implementing an increased goal across the state and all contracts without clear evidence of available DBEs capable of performing the work and meeting the project requirements will have significant and far-reaching impacts on the construction industry many of which work against the aim of the Proposed Goal itself AGC requests WSDOT reconsider its Proposed Goal of 19 and make adjustments to account for the capability of DBE firms the lack of a rescission of the non-minority waiver and the lack of available DBE firms in parts of the state This Proposed Goal and its impacts on the construction industry will be irrevocable and will be to the detriment of taxpayers It is prudent to address these adjustments before implementing the Proposed Goal

Very truly yours

David DrsquoHondtCheryl Stewart Executive Vice President AGC of WashingtonExecutive Director Inland Northwest AGC

AGC of Washington bull 410 11th Avenue SE 203 Olympia WA 98501

Inland Northwest AGC bull 4935 E Trent Avenue Spokane WA 99212

image3jpeg

image1png

image2emf

image4png

image5jpeg

From Steve SmithTo WSDOT Disparity StudyCc Bayne JackieSubject 19 DBE RequirementDate Thursday December 14 2017 31947 PMAttachments DBE List and NAICS Listingpdf

Disparity Committee I recently read in The Daily Journal of Commerce that WSDOT plans to adopt a 19 DBEstandard for all FHWA funded projects early next year Our company S amp K Painting Inc is abridge painting company which is based in and works exclusively in Oregon and Washington Ihave been the owner of this firm since 1978 when it was first established My concerns aboutthe proposed 19 DBE requirement is as follows 1 There are very few opportunities for subcontract work on bridge repaint jobs These jobsare usually limited to cleaning and painting the bridge The only other facet of the project istraffic control which is almost always 3 or less of the project total cost The traffic controldoes provide a very good subcontracting opportunity 2 The NAISC code of 238320 includes bridge painting but also includes house painting wallcovering rust proofing etc which have almost no similarities to bridge painting When thiscode is used to determine the number of available firms (DBE or otherwise) that are availablefor bridge painting project this badly skews the numbers I would suggest that bridge paintingcontractors make up less than 5 of all firms in NAISC code 238320 3 If future WSDOT bridge painting projects require a 19 DBE participation A The qualified pool of DBE subcontractors available to submit pricing on any facetother than traffic control will be very limited I reviewed a list of 19 certified DBE firms listedunder painting at the WSDOT website and only recognized one firm from past projects B The number of prime bidders and competition will fall The state will incur highercosts due to this fact C Prime bidders will be forced to subcontract unqualified contractors just to be eligiblefor contract awards This will likely reduce the quality of the finished project Thank you for considering my concerns I may not have verbalized my thoughts as well as Iwould have liked but I have been in this business for almost 40 years and truly believe what Ihave said Sincerely

Steve Smith President

SampK Painting incP O BOx 390clacKamaS OregOn 97015Phone (503) 557-5544Fax (503) 557-5566Cell (503) 260-5280Steveskpaintingcom

From Lei WuTo Bayne JackieSubject comments on WSDOT proposed DBE goalDate Thursday December 14 2017 94925 PM

To Whom It May Concern

Below is my comments

The WSDOT recommended DBE Goal for FHWA contracts of 190 is a small andimportant increase that can further achieve equity in WSDOTFHWA contracting I am insupport of the 19 DBE Goal

I also want to express my appreciation for the thoroughness of the WSDOT Disparity studyand how the study disclosed the disparity in WSDOT contracts that do not have a DBE orWBE goal ndash further reinforcing that all women-owned firms and minority owned firms faceequity issues

I remain concerned with the methodology required by the Code of Federal Regulations andcase law because of the dependence on the availability of firms in the calculation Anunintended consequence of removing either gender or race from the goal is that many of thesefirms would go out of business the availability decreases and the formula then results in asmaller DBE goal

Thanks

Lei

Lei Wu PE AICP

Principal CSL Consulting

LeiWucsl-consultingnet

(425)562-6275

From Stephanie SimpkinsTo WSDOT Disparity StudySubject DBE Contracting goalsDate Wednesday November 29 2017 20259 PM

My name is Stephanie Simpkins and I own North Star Enterprises It is a large womanowned traffic control company located in Spokane Washington My mother founded thecompany in 1984 and I have worked in this family owned business most of my life Ipurchased the business from her in 2013 and have been sole owner since then My company thrived under the Disadvantaged Business Enterprise (DBE) Programimplemented by Washington Department of Transportation and administrated by United StatesDepartment of Transportation What started as a small business with one truck and a fewemployees has grown over the years to be one of the largest traffic control companies in thestate and employee countless people every construction season It has not been an easy roadover the years being a woman in the construction industry never is and it is hard to say wherewe would be now if it werenrsquot for the assistance of the DBE program As you know in June of 2017 majority women were removed from the DBE program basedon a disparity study conducted in 2012 On March 2014 Washington Department ofTransportation requested a wavier to remove majority women from the DBE program Thishas had an immediate and drastic impact on my business and all who work for me From themoment the waiver was approved and my company could no longer be used as a condition ofaward at bid time I began losing work Most recently the 2018 North Central Region ChipSeal which we have worked on for the last 10 years This contract provides work forapproximately 40 employees for the entire construction season I have already been told byseveral contractors that with such a high UDBE goal they wont even be able to consider mefor this project This loss along with several other smaller contracts to date are painting avery dismal future for my business With all of this turmoil surrounding the future of my business I find it frustrating to say theleast that WSDOT has chopped me off at the legs by not allowing my firm to count for theCOA but can use the little participation I may still contribute to help them reach their overallstate goal How is this fair If the contractors canrsquot utilize my business than neither shouldWSDOT As far as setting future state DBE contracting goals it looks as if the bar will beraised once again all while excluding the largest subset of useable DBErdquoS To me raising theoverall state goal at this time (which is already challenging to meet) with women DBErsquosexcluded from the program seems horribly ill timed

From Karen R BannishTo Bayne JackieSubject DBE GoalDate Tuesday December 5 2017 32549 PM

Hello Jackie ndash thank you for the webinar today concerning the proposed Overall DisadvantagedBusiness Enterprise Goal for the Federal Highway Administration I understanding the DisparityStudy much better now and checked the document you mentioned on the WSDOT website Pacific County is located in the Southwest corner of the State of Washington The tip of the LongBeach Peninsula would be 2 frac12 hours from Interstate 5 Our federal work primarily includes strictlyoverlay projects with 12 or fewer items of work included in the contract When bidding a project(our contracts are usually less than $500000) we sometimes received a single bid from the process Due to our proximity and the small cost for the work it is difficult to entice DBE participation Thereare simply no items of work that can be performed Having a mandatory DBE goal placed upon theproject in a rural area simply to meet the disparity guidelines will only increase the cost of theproject We feel the goals should be set in balance with the cost of the project and the items of work and notsimply directed to meet the overall goal

Karen BannishSenior Engineering TechnicianPacific County Department of Public Works211 North Commercial StreetRaymond WA 98577(360) 875-9368

From Dawn EgbertTo Bayne JackieSubject DBE Program Disparity StudyDate Tuesday December 5 2017 23825 PM

Hi JackieThank you for the great information on the call today You talked about the small works rosterbriefly We had a conversation in our office today about small contractors who are signed up on thePort of Vancouverrsquos small works roster Our team has had opportunity to talk to some of thecompanies on our roster who are women owned or minority owned businesses but they arenrsquotsigned up as a DBE firm When asked about that theyrsquove mentioned that they donrsquot want to fill outthe additional paperwork required to obtain the certification as a DBE As for the DBE goal at 19 it doesnrsquot seem to present an issue for the majority of our projects ndashespecially those where we would apply FHWA funds if granted However if we did happen to have aproject that didnrsquot include classifications of work where DBE certified participants are availablewould there still be an exception or a good faith efforts clause Thanks again for your time Dawn EgbertProcurement Services Manager3103 NW Lower River Road Vancouver WA 98660Direct 3609921102 | Cell 360448-9867 | Main 3606933611 | Fax 360735-1565degbertportvanusacom | wwwportvanusacom | available port properties Leadership | Stewardship | Partnership

From Feist MarleneTo WSDOT Disparity StudyCc Simmons Scott M Twohig KyleSubject Disparity Study Comments from City of SpokaneDate Friday December 15 2017 52226 PMAttachments image010png

image011pngimage012png

December 15 2017 Jackie BaynePolicy amp Reporting ManagerOffice of Equal OpportunityWashington State Department of TransportationPO Box 47314Olympia WA 98504-7314 RE Proposed DBE Contracting Goal for Highway Projects Dear Ms Bayne The City of Spokane would like to provide comments related to proposed DisadvantagedBusiness Enterprise Goal for Federal Highway Administration (FHWA) contracts by theWashington State Department of Transportation (WSDOT) Office of Equal Opportunity Manyof our projects receive funding from FHWA and as such the proposed new goals areapplicable to City work The City is supportive of the programrsquos purposemdashldquoto create a level playing field for firmsowned and operated by disadvantaged individuals wanting to participate in federally assistedhighway transit or aviation programsrdquo However the City is concerned about the ability to achieve the proposed utilization rate of upto 19 percent for DBEs in Eastern Washington considering the low number of DBEs in ourregion and the record construction under way in the City and in our region WSDOTrsquos DBE Program Disparity Study notes ldquoContractors in Eastern Washington repeatedlyreported that the goals on projects in their area are too highrdquo The Inland NorthwestAssociated General Contractors group notes that only about 12 DBEs in construction fields areavailable in the greater Spokane area Meanwhile the City has performed record construction in each of the last three years withproject totals hovering around $100 million Our City work has been bolstered by anaggressive program to improve water quality in the Spokane River Our local school districtsand our neighboring jurisdictions also have aggressive construction programs right now

Additionally we expect WSDOTrsquos work in this region to accelerate as North Spokane Corridor(NSC) construction proceeds At times our area is reaching the limits overall of our contractingcommunity the City has worked to release its projects in the first quarter of the year as muchas possible to lock in contractors and receive better pricing The capacity of existing DBEs in our region simply cannot meet that current high demand Some DBE firms are tempted to agree to more work in these times but we have found that insome cases DBEs have stretched themselves too thin On two recent City projects generalcontractors were unable to meet DBE goals as a result of DBE firms that couldnrsquot fulfill theircommitments for providing personnel or equipment It also seems implausible to expect DBEs from the West Side to mobilize teams to work on Cityof Spokane projects in large numbers In fact the Disparity Studyrsquos author responded at arecent meeting on this topic that a DBE from the West Side only very rarely completes workon the East Side of the state We would also be concerned about moving the good-paying jobs that construction providesoutside of our region The Cityrsquos median household income is $44350 considerably lower than theState of Washington MHI of $64129 and the Seattle MHI of $77351 Our leaders are working tocreate good-paying jobs for our citizens not export them to an already wealthier part of the state Additionally these projects are also funded with local dollars and our citizens expect their money toput their neighbors to work With the above considered the City is seeking

middot DBE goals for the 2018-2020 compliance period for Eastern Washington that arereflective of the current availability of DBE firms in our region

middot The re-inclusion of non-minority women owned DBEs in achieving DBE goals InSpokane non-minority women owned DBEs make up the majority of the availableDBEs And current information shows that women in Spokane overall still lag behindmen in opportunities and wages The Cityrsquos own ldquoGender and Racial Equityrdquo reportfrom 2016 noted that overall working women earned 783 percent of the earnings ofworking men in 2014 down from 827 percent in 2009 We need to lift up all women

middot The development of WSDOT programs to encourage the growth of existing andnew DBEs who can be used on street and highway projects We are encouraged by theproposed mentorproteacutegeacute program to increase the number and capacity of DBEs inEastern Washington Programs that address other barriers such as assistance withcompleting documentation or access to bonding capacity also could aid growth ofDBEs

middot The ability for WSDOT to adjust goals on a project if a selected DBE is unable tocomplete its commitments on a project This would help enable our contractors totake a chance on a new or inexperienced DBE to complete work

middot Recognition of local programs that strive to increase diversity in the work force Forexample the City operates a robust apprenticeship program that requires 15 percentof the labor hours on public works jobs greater than $600000 to be performed byapprentices The apprentice programs in our region are stepping up recruitmentefforts and are specifically seeking to recruit more youth women and minorities intoapprentice slots

As we seek to achieve the goal of increasing participation in street and highway constructionby companies owned by disadvantaged individuals we must also acknowledge that businessdevelopment and growth happens over time We must lay the groundwork now to build abase of DBEs that can help us achieve higher utilization goals over time Sincerely Marlene FeistDirector of Strategic DevelopmentPublic Works amp UtilitiesCity of Spokane

Marlene Feist | City of Spokane | Public Works Director of Strategic Development5096256505 | cell 5097109214 | mfeistspokanecityorg | spokanecityorg

From Hall MattTo WSDOT Disparity StudySubject FW WSDOT News - WSDOT seeks comments on proposed DBE contracting goal for highway projectsDate Friday December 15 2017 11956 PMAttachments WSDOT proposed DBE goal through 2020pdf

From Hall Matt Sent Friday December 15 2017 117 PMTo BayneJwsdotwagovCc Keniston Rick (KenistRwsdotwagov) MolyneKwsdotwagov SusanWilsonclarkwagovSubject WSDOT News - WSDOT seeks comments on proposed DBE contracting goal for highwayprojects Hello Jackie Please see our comments attached regarding the WSDOT proposed DBE goals Thanks for the opportunity to provide comments Matt HallClark County Public Works Washington State Department of Transportation ndash NEWSHeadquarters ndash 310 Maple Park Avenue SE ndash Olympia WA 98504-7314 ndash 360 705-7000 FOR IMMEDIATE RELEASEOct 30 2017 Contact Jackie Bayne Office of Equal Opportunity 360 705-7084

WSDOT seeks comments on proposed DBEcontracting goal for highway projectsComments accepted through Dec 15OLYMPIA ndash Contractors trade and labor organizations small and disadvantaged businessesand all others who may be interested in working with the Washington State Department ofTransportation are invited to comment on the agencyrsquos proposed Disadvantaged BusinessEnterprise goal for Federal Highway Administration contractsDBE goals for transportation projects that receive federal funds represent a percentage of thevalue of work in which minority- and women-owned businesses should participate WSDOTis proposing a 19 percent overall DBE participation goal on Federal Highway Administration-funded projects for federal fiscal years 2018 through 2020Once submitted to FHWA early next year the goal will be effective through Sept 30 2020The purpose of the DBE program is to create a level playing field for firms owned andoperated by disadvantaged individuals wanting to participate in federally assisted highwaytransit and aviation programsConnecting with communitiesWSDOT will host a series of public meetings to provide opportunities for individuals tocomment in person

Spokane

2 ndash 4 pm Tuesday Nov 28WSDOT Eastern Region Headquarters2714 N Mayfair St Spokane

Vancouver

2 ndash 4 pm Wednesday Nov 29WSDOT Vancouver Headquarters11018 NE 51st Circle Vancouver

Seattle

2 ndash 4 pm Thursday Dec 7WSDOT Northwest Region Headquarters15700 Dayton Ave N Shoreline

Other ways to provide commentThose who are unable to attend one of the meetings can participate in a no-cost webinar from230 ndash 430 pm Tuesday Dec 5 Registration for the webinar is required Those interested inparticipating should email DisparityStudywsdotwagovWritten comments can also be submitted by mail or emailJackie Bayne Policy amp Reporting ManagerWashington State Department of TransportationOffice of Equal OpportunityPO Box 47314Olympia WA 98504-7314DisparityStudywsdotwagovDocuments detailing the methodology used for determining the FHWA DBE goals areavailable for review at all WSDOT region headquarters offices and at the TransportationBuilding 310 Maple Park Ave SE Olympia They are also available online atwwwwsdotwagovequalopportunityWSDOT will consider all written comments received through Friday Dec 15 2017 Hyperlinks within this release

WSDOT Region offices wwwwsdotwagovContactofficelocationhtmregion

WSDOT keeps people businesses and the economy moving by operating and improving the statestransportation systems To learn more about what were doing go to wwwwsdotwagovnews forpictures videos news and blogs Real time traffic information is available at wwwwsdotcomtraffic or bydialing 511 Americans with Disabilities Act (ADA) InformationAccommodation requests for people with disabilities can be made by contacting the WSDOTDiversityADA Affairs team at wsdotadawsdotwagov or by calling toll-free 855-362-4ADA (4232)Persons who are deaf or hard of hearing may make a request by calling the Washington State Relay at711 Title VI Statement to Public It is WSDOTrsquos policy to assure that no person shall on the grounds ofrace color national origin or sex as provided by Title VI of the Civil Rights Act of 1964 be excluded fromparticipation in be denied the benefits of or be otherwise discriminated against under any of its federallyfunded programs and activities Any person who believes his or her Title VI protection has been violatedmay file a complaint with WSDOTrsquos Office of Equal Opportunity For additional information regarding Title

VI complaint procedures andor information regarding our non-discrimination obligations please contactOEOrsquos Title VI Coordinator at 360-705-7090 To unsubscribe to WSDOT media releases please reply and type REMOVE in the subject line

This e-mail and related attachments and any response may be subject to public disclosure under state law

From Cochrane EmilieTo WSDOT Disparity StudyCc Eugenis Susan Cowlitz Co Public Works - Brad BastinSubject Proposed DBE GoalsDate Thursday December 14 2017 85006 AMAttachments image002png

DBE Goals - Commentspdf

Please see the attached letter with comments regarding the proposed DBE Goals Ahard copy will be sent out today

Thanks

Emilie CochraneCowlitz County Public Works1600 ndash 13th Avenue SKelso WA 98626360-577-3030 ext 6523

From Michelle WolcottTo Bayne JackieCc Robideau Christopher LSubject RE DBE Contracting Goal CommentsDate Tuesday November 7 2017 65448 AMAttachments image001png

Thank you JackieWhat a relief to know that we have been heard and are not the only small business facing thisstruggle Your email is comforting

Yes you can provide us with additional assistanceLet me introduce my boss and Senior Vice President of Red Plains Professional Chris Robideau

Chris will be your contact from here since I will be leaving the company November 17th As a WA DBE we are ldquoeligible for limited DBE Support Services (SS) funding when funds becomeavailablerdquo When will this happen And are we registered or on a list to receive fundingIs the WSDOT ICR Training a prerequisite for the funding Or just helpful knowledge

Thank you for your time Jackie I will follow through with the training

Michelle Wolcott EIT Quality Control Engineer

2103 NE 129th Street Suite 201 Vancouver WA 98686 Office (360) 448-7999 Fax (360) 258-0274

wwwred-plainscom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Monday November 6 2017 332 PMTo Michelle Wolcott ltMichelleWolcottred-plainscomgtSubject RE DBE Contracting Goal Comments

Hi Michelle

Thank you for your interest in doing business with WSDOT I apologize for the lack of informationyou have come up against in your attempts to attain access to WSDOT ICR program

As you may well know WSDOT has recently completed a state wide agency specific diversity studyAnecdotal comments submitted with the study concur with your experience Not only did somerespondents find it difficult to become prequalified they also commented that the required indirectrate of 110 percent is too low to be profitable These requirements are currently under advisementby WSDOT and new DBE program requirements are currently in the process of seeking public input

As you are an OMWBE certified DBE in Washington State you will be eligible for limited DBE SupportServices (SS) funding when these funds become available At that time funds may become availableto assist you in your struggle to attain ICR eligibility Here is a link to WSDOTrsquos Indirect Cost RateTraining httpswwwwsdotwagovAuditICRTraininghtm If you would like me to find additionaltraining or information please let me know

If I can provide additional assistance of information please let me know

Best Regards

Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Michelle Wolcott [mailtoMichelleWolcottred-plainscom] Sent Tuesday October 31 2017 835 AMTo WSDOT Disparity Study ltDisparityStudyWSDOTWAGOVgtSubject DBE Contracting Goal Comments

HelloI have been in contact with WSDOT for 6 months sharing my disparaging story of beinga small DBE unable to submit SOQs for projects requiring a WSDOT Audited IndirectCost Rate Approval We do not have an in-house accountant and our outsideaccountant has explained to get all the paperwork together for WSDOT would take 40hours of work $9000 annually We cannot justify this cost to submit on a project thatwe may not acquire We have been directed to seek financial assistance from WSDOT Federal SBA andWashington State Office for Women and Minority Owned Enterprises all of whichprovided negative responses

As a DBE business in 11 states we are supporting the 19 incentive for federallyfunded contracts but we are frustrated in the fact that we will not be one of the luckyfew to participateWe have been in business 20 years From our Vancouver Washington office our clientsare the Native American tribes across the country with all contracts federally funded This summer alone the WSDOT ICR Approval has squashed our ability to submit on twoprojects that we were perfectly qualified to performI have attached previous emails to show a sample of who I have been dealing with

Thank you

Michelle Wolcott EIT Quality Control Engineer

ltimage001pnggt

2103 NE 129th Street Suite 201 Vancouver WA 98686 Office (360) 448-7999 Fax (360) 258-0274 wwwred-plainscom

From Michelle Wolcott Sent Monday July 10 2017 954 AMTo Harvey Schatzie ltHarveySwsdotwagovgtSubject RE WSDOT Indirect Cost Rate Process

Good Morning Schatzie

This is Michelle Wolcott from Red We spoke Friday June 30th about the ICRprocess and you were very encouraging I relayed the information to my boss who ishere in Vancouver then he shared with the president bookkeeper and our accountantin Oklahoma We had FAR compliance with Oklahoma DOT in 2015 so we are noteligible for the Safe Harbor Program Our account said our timekeeping system doesnot breakdown the hours and pay in the format WSDOT wants to have it presented andto get the documents in order would take the CPA and an assistant $9000 in paidhours of work It turns out this would have to be annually The other option is to hirean outside CPA firm to do the audit for us at $20000 annually

Our president said in the past we received funding assistance from the Stateof Oklahoma to get our ICR approval Does WSDOT offer any financial assistance for small businesses to reach compliance We are also a DBE in WA I have requested the same information from WA PTAC at theVancouver Chamber of Commerce and from WA Office of Minority and Women OwnedBusiness Enterprises and they both said there was nothing but suggested to askWSDOTThank you for your helpMichelle Wolcott EIT

Hello Michelle sorry but I am not aware of any grants But I was looking at this andthere is a POC at the bottom you may try to discuss the audit issuesHollyHolly BoehmeBusiness Opportunity Specialist | 8(a) Business Development ProgramUS Small Business Administration bull Seattle District Office

Hello Michelle -

Thank you for your email Im not aware of any funding available for thispurpose but do agree its quite a bit for a DBE firm to have as an expense Mostof the firms I work with do a lot more work on the Oregon side so perhaps thereare programs available that I just havent heard of Im copying my colleagueHoly Boehme in our Seattle District Office to see if they are aware of any suchassistance

Holly might there be some small business incubators or other resources availablein WA to help a small firm with the expense of getting a WSDOT AuditedIndirect Cost Rate approval Please reply all with anything you may have

Thank you

Yuri Yoshida Dyson Business Opportunity SpecialistUS SMALL BUSINESS ADMINISTRATION Portland District OfficePhone 503-326-6692 Fax 202-292-3872 wwwsbagovor

From Troy HalbergTo Bayne JackieSubject Re DBE Goal CommentsDate Wednesday December 13 2017 35533 PM

JackieToday was another example of why the goals should not be raised There were 2 jobs which Iwas low on and did not get due to the high goals This is exactly what will happen when thegoals get raised The first job was the 9180 Anacortes Ferry Paving Northeast Electric $244924 and UDBE $318000 Second job was the 9172 SR 9 East Junction Job Northeast Electric $68503 and UDBE $76300

Does this seem like a good way to spend the tax payer money I do not see how we are tosurvive if the goals get to 21

Thanks

Troy HalbergOffice360-225-7004Cell360-931-3990Fax360-225-7001

On Thu Nov 30 2017 at 1131 AM Bayne Jackie ltBayneJwsdotwagovgt wrote

Good Morning Troy

Thank you for taking the time to provide us with your experiences with the DBE Program TheWashington State Department of Transportation takes the public involvement process veryseriously and your comments will be taken into consideration prior to a final decision regardingthe overall DBE program goal

If I can be of further assistance please let me know

Best Regards

Jackie Bayne

Policy and Reporting Manager

WSDOT Office of Equal Opportunity

Work (360) 705-7084

Cell (360) 338-5783

BayneJwsdotwagov

From Troy Halberg [mailtotroyhnellcnet] Sent Wednesday November 29 2017 144 PMTo WSDOT Disparity Study ltDisparityStudyWSDOTWAGOVgtSubject DBE Goal Comments

If these goals are to be set that high this would make us as a non DBE small contractor at amajor disadvantage With these high of goals this is like handing all of the DBE electricalcontractors every job These general contractors will have no option but to use thembecause of the goals This should not go into effect We have been low on several jobs in thepast and have not gotten them do to the goals being 18 When this goes on it puts all therest of us contractors at a disadvantage Please consider the smaller non DBE contractorsthat are looking to survive as well

Thanks

Troy Halberg

Office360-225-7004

Cell360-931-3990

Fax360-225-7001

From Daniel Seydel IITo Bayne JackieCc Key Earl daneiwashingtonorg Nadeem Ismail Mussie Tewelde (mteweldehydro2geotechcom)

graceflyrightaolcom Mary Wenner Watkinson LarrySubject Re Seydel Dan - WSDOT Disparity Study Presentation Public TestimonyDate Friday December 8 2017 30323 PM

Jackie

It was my hope that the comments would be put into record I was also hoping that you wouldnot have to be the one having to formulate responses for each clarification If that is the caseI know you are swamped and will then I just ask my comments be only part of the recordHowever if there is dedicated staff that is going to be compiling and responding to theclarification then the below questions would be the priorities of most interest

These were questions unrelated to the disparity study and hopefully should be doable

1) Do you have any reports on your outcomes from the past 5 years on DBE support servicesand specific key performance measures from previous years funding (ie how many firmsutilized what was the objectives were objectives met did outcomes meet total satisfaction ifnot why next steps what was the firms capacity before and after services were performed (iesales employees bonding if applicable insurance equipment line of credit if applicablenumbertype of customers how are they doing now etc))

2) What other changes or improvements other than allowing DBES to select their own serviceproviders and a staff change will be a part of this new program

3) Was consideration to provide the new mentor protege consultant rather than separating theactivities into support services andor technical assistance

Disparity study clarifications

1) Will WSDOT consider sponsoring legislation to support the policy changes and goalincreases to insure manditory goals wont be necessary

a) If not what measures will you grant primes to operate outside the box (ie entertain bestvalue over low bid modify responsiveness by subs to require adherence to meeting voluntarygoals developing standards around federally funded gccm and other low bid procurementsthat give powers to primes to meet objectives including but not limited to mentor protegerelationships joint ventures bond waiving techniques cash flow assistance material andequipment acquisition manufacturer development specifications that have only DBES orinclude equal number of DBES as non DBES as approved installers etc)

2) Will the disparity study consultant be available for implementation or information gatheringfrom other regions

5) Will WSDOT be hiring more diverse staff amp professionaltechnical service providers inother departments outside OEO to insure policies commitments and evaluations areperformed in manner that improves diversity that reflects the communities WSDOT serves bythoughtful and legal efforts increase participation thus creating successful outcomes includingpartnerships and collaborations

Thank you and Merry Christmas

Hi Dan

Thank you for providing such thoughtful public comments questions and testimony

Regarding your public testimony below - I do not believe I am not able to answer questions ifthey are public comments Please let me know what part of this email you would likeclarification on and what part you would like considered public testimony

I appreciate your thoughtful consideration of WSDOTrsquos implementation of our civil rightsprograms

Best Regards

Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

DIDaniel Seydel IIFyi Daniel J Seydel II Platinum Group LLC 2064060844 f) 2062999934wwwplatinumbusinessgroupcom Small Business is the Answer FREE TRAINING FORENTREPRENEURS amp JOB SEEKERS - Polish your skills or make your firm standout thanksto the EntrepreneurialThu 233pDI

Daniel Seydel IIThu 1272017 1123 AMInbox Sent ItemsShow all 7 recipientsTobaynejwsdotwagov ltBayneJwsdotwagovgtJackie

Per your request below are my questions and comments some of which were verbally sharedyesterday

Congratulations on receiving the blessing of additional technical assistance dollars andcompleting the DBE Disparity Study per your report

1) Do you have any reports on your outcomes from the past 5 years on DBE support servicesand specific key performance measures from previous years funding (ie how many firmsutilized what was the objectives were objectives met did outcomes meet total satisfaction ifnot why next steps what was the firms capacity before and after services were performed (ie

sales employees bonding if applicable insurance equipment line of credit if applicablenumbertype of customers how are they doing now etc))

2) What other changes or improvements other than allowing DBES to select their own serviceproviders and a staff change will be a part of this new program

3) Was consideration to provide the new mentor protege consultant rather than separating theactivities into support services andor technical assistance

Disparity study clarifications andor comments

1) Will WSDOT consider sponsoring legislation to support the policy changes and goalincreases to insure manditory goals wont be necessary

a) If not what measures will you grant primes to operate outside the box (ie entertain bestvalue over low bid modify responsiveness by subs to require adherence to meeting voluntarygoals developing standards around federally funded gccm and other low bid procurementsthat give powers to primes to meet objectives including but not limited to mentor protegerelationships joint ventures bond waiving techniques cash flow assistance material andequipment acquisition manufacturer development specifications that have only DBES orinclude equal number of DBES as non DBES as approved installers etc)

2) Will the disparity study consultant be available for implementation or information gatheringfrom other regions

3) What lessons did WSDOT learn that it did not know from the other study(s)

4) What would WSDOT do different (ie scope time line process approach etc)

5) Will WSDOT be hiring more diverse staff amp professionaltechnical service providers inother departments outside OEO to insure policies commitments and evaluations areperformed in manner that improves diversity that reflects the communities WSDOT serves bythoughtful and legal efforts increase participation thus creating successful outcomes includingpartnerships and collaborations

Daniel J Seydel IIPlatinum Group LLC 2064060844f) 2062999934wwwplatinumbusinessgroupcom

Small Business is the Answer

FREE TRAINING FOR ENTREPRENEURS amp JOB SEEKERS - Polish your skills or makeyour firm standout thanks to the Entrepreneurial Institute of Washington

httpswwwyoutubecomchannelUCKL5YeVxL29HnNxqnb6hmXA

LIKE US on FaceBook if an Active Professional Development workshop provided by EIW

Construction University helps your firm or has benefited you

httpswwwfacebookcomEIWashingtonref=hl

From Bayne Jackie ltBayneJwsdotwagovgtSent Friday December 8 2017 10139 PMTo Daniel Seydel IICc Key Earl daneiwashingtonorg Nadeem Ismail Mussie Tewelde(mteweldehydro2geotechcom) graceflyrightaolcom Mary Wenner Watkinson LarrySubject RE Seydel Dan - WSDOT Disparity Study Presentation Public Testimony Hi Dan Thank you for providing such thoughtful public comments questions and testimony Regarding your public testimony below - I do not believe I am not able to answer questions if theyare public comments Please let me know what part of this email you would like clarification on andwhat part you would like considered public testimony I appreciate your thoughtful consideration of WSDOTrsquos implementation of our civil rights programs Best Regards Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov From Daniel Seydel II [mailtodanplatinumbusinessgroupcom] Sent Thursday December 7 2017 1123 AMTo Bayne Jackie ltBayneJwsdotwagovgtCc Key Earl ltKeyEwsdotwagovgt daneiwashingtonorg Nadeem Ismailltnipaintingearthlinknetgt Mussie Tewelde (mteweldehydro2geotechcom)ltmteweldehydro2geotechcomgt graceflyrightaolcom Mary Wennerltmwenn0108yahoocomgtSubject Seydel Dan - WSDOT Disparity Study Presentation Public Testimony Jackie

Per your request below are my questions and comments some of which were verbally sharedyesterday

Congratulations on receiving the blessing of additional technical assistance dollars andcompleting the DBE Disparity Study per your report

1) Do you have any reports on your outcomes from the past 5 years on DBE support servicesand specific key performance measures from previous years funding (ie how many firmsutilized what was the objectives were objectives met did outcomes meet total satisfaction ifnot why next steps what was the firms capacity before and after services were performed (iesales employees bonding if applicable insurance equipment line of credit if applicablenumbertype of customers how are they doing now etc))

2) What other changes or improvements other than allowing DBES to select their own serviceproviders and a staff change will be a part of this new program

3) Was consideration to provide the new mentor protege consultant rather than separating theactivities into support services andor technical assistance

Disparity study clarifications andor comments

1) Will WSDOT consider sponsoring legislation to support the policy changes and goalincreases to insure manditory goals wont be necessary

a) If not what measures will you grant primes to operate outside the box (ie entertain bestvalue over low bid modify responsiveness by subs to require adherence to meeting voluntarygoals developing standards around federally funded gccm and other low bid procurementsthat give powers to primes to meet objectives including but not limited to mentor protegerelationships joint ventures bond waiving techniques cash flow assistance material andequipment acquisition manufacturer development specifications that have only DBES orinclude equal number of DBES as non DBES as approved installers etc)

2) Will the disparity study consultant be available for implementation or information gatheringfrom other regions

3) What lessons did WSDOT learn that it did not know from the other study(s)

4) What would WSDOT do different (ie scope time line process approach etc)

5) Will WSDOT be hiring more diverse staff amp professionaltechnical service providers inother departments outside OEO to insure policies commitments and evaluations areperformed in manner that improves diversity that reflects the communities WSDOT serves bythoughtful and legal efforts increase participation thus creating successful outcomes includingpartnerships and collaborations

Thank you for your hard work

Daniel J Seydel IIPlatinum Group LLC2064060844f) 2062999934wwwplatinumbusinessgroupcom

Small Business is the Answer

FREE TRAINING FOR ENTREPRENEURS amp JOB SEEKERS - Polish your skills or makeyour firm standout thanks to the Entrepreneurial Institute of Washington

httpswwwyoutubecomchannelUCKL5YeVxL29HnNxqnb6hmXA

LIKE US on FaceBook if an Active Professional Development workshop provided by EIWConstruction University helps your firm or has benefited you

httpswwwfacebookcomEIWashingtonref=hl

From Erin EhlingerTo Bayne JackieSubject Support for WSDOTs proposed DBE goalDate Wednesday December 13 2017 115417 AM

I am writing to support the WSDOT recommended DBE Goal for FHWA contracts of 190 I also want to express my appreciation for the thoroughness of the WSDOT Disparity study and howthe study disclosed the disparity in WSDOT contracts that do not have a DBE or WBE goal ndash furtherreinforcing that all women-owned firms and minority owned firms face equity issues I remain concerned with the methodology required by the Code of Federal Regulations and case lawbecause of the dependence on the availability of firms in the calculation An unintendedconsequence of removing either gender or race from the goal is that many of these firms would goout of business the availability decreases and the formula then results in a smaller DBE goal Pleaselet me know how I can help influence a change to the CFR Thank you Erin Ehlinger

Erin Ehlinger PEPresident

24036 SE 47th StSammamish WA 98029erinehlingersmartcitytrafficcom425-221-0320

From Jackie EtterTo WSDOT Disparity StudySubject Why we need mandatory goalsDate Friday December 1 2017 61859 PM

As a DBE participating in bidding process I have found that regardless of the language which claims to insurethat disadvantaged business enterprises shall not be discriminated against the only way to ensure that this does nothappen is by mandating affirmative action goals Having been overlooked time and time again because of my gender when I have submitted bids that are verycompetitive with other bidders is very frustrating I have had many instances of companies using my price to getmy non DBE competitors to lower theirs The voluntary or laudatory DBE goals do nothing to ensure a level playing fieldThe only way to ensure non-discrimination is through mandatory goals

Jackie EtterWest Star Construction of Spokane

Sent from my iPhone

From Claudia HirscheyTo Key Earl Bayne JackieSubject WSDOT DBE Goal - Comment in supportDate Tuesday December 12 2017 61937 PM

Dear Earl and Jackie The WSDOT recommended DBE Goal for FHWA contracts of 190 is a small and important increasethat can further achieve equity in WSDOTFHWA contracting I am in support of the 19 DBE Goal I also want to express my appreciation for the thoroughness of the WSDOT Disparity study and howthe study disclosed the disparity in WSDOT contracts that do not have a DBE or WBE goal ndash furtherreinforcing that all women-owned firms and minority owned firms face equity issues I remain concerned with the methodology required by the Code of Federal Regulations and case lawbecause of the dependence on the availability of firms in the calculation An unintendedconsequence of removing either gender or race from the goal is that many of these firms would goout of business the availability decreases and the formula then results in a smaller DBE goal Sincerely Claudia S Hirschey PETransportation Consulting Servicesclaudiahirscheycomcastnethttphirscheytcscom2068564988 Mobile

From Nate ThomasTo WSDOT Disparity StudySubject WSDOT Proposes DBE goal of 19Date Thursday December 7 2017 42720 PM

The WSDOT should look into similar ways the Federal Gov has handled the equal opportunity forthose that fall under the DBE status and set aside specific projects for the DBErsquos and moreimportantly UDBErsquos so these companies have better chance of landing contracts Maybe a lot 10 ofthe DBE goal to set aside for only DBEs and other 9 goal met as it is done currently with COA onlarger contracts Nate ThomasSenior EstimatorD 5095688085 | C 5099941156331 North Fancher Road | Spokane WA | 99212

The information contained in this email including any attachments is confidential and may beprivileged It is intended only for the person or entity to which it is addressed and no waiver isintended by sending this email If the reader is not the intended recipient you are herebynotified that any review retransmission dissemination or other use of or taking any action inreliance upon this information is strictly prohibited If you have received this email in errorkindly notify the sender by reply email and delete the original message from any computerThank You

From Brian FujiiTo WSDOT Disparity StudySubject WSDOT propsed DBE GoalsDate Thursday December 7 2017 110638 AM

Good morning Jackie

I wanted to comment on WSDOTs proposed DBE goal to 19 I believe WSDOTs plan toincrease the overall DBE goal to 19 will provide greater opportunities for DBE contractorsin different disciplines to participate in federally funded contracts

Without the new DBE requirement and with Proposition 200 there are limited opportunitiesfor DBE contractors in disciplines different than the typical trucking flagging and rebar Inaddition there are no incentives for general contractors to go out beyond the usual truckingflagging and rebar DBE subcontractors

Increasing the DBE goals will provide opportunities for different DBE contractors in differentdisciplines to participate in WSDOT federally funded projects

Thank you for your time

RespectfullyBrian FujiiPresident Subsurface ConstructionP 2063836478F 2069604639MDBE 4M0024998

From Forman StephanieTo Bayne JackieCc Millar Roger christinenhanmailhousegov Claudia Hirschey Sarah Corbin Jiang Yingle

efaulknerenviroissuescom Diana Giraldo Kelly CheesemanSubject WTS - Disparity Study Comment LetterDate Friday December 15 2017 71020 PMAttachments 2017_Dec 15_WTSCommentLetter_WSDOT DBE Goalpdf

Dear Ms Bayne Please find our attached letter which summarizes the WTS Puget Sound Chapterrsquos support foradvancement of women in transportation and our comment letter regarding the recent DisparityStudy Please feel free to contact me if you have any questions or would like to discuss Sincerely Stephanie S Forman PEWTS Puget Sound President Transportation Project Manager

929 108th Avenue NE Suite 1300Bellevue WA 98004D 4254681548 M 2062291745stephanieformanhdrinccom

December 15 2017

Jackie Bayne Policy and Reporting Manager

Office of Equal Opportunity

Washington State Department of Transportation

PO Box 47314

Olympia WA 98504-7314

Dear Ms Bayne

On behalf of the Puget Sound Chapter of Womenrsquos Transportation Seminar (WTS) we would

like to thank the Washington State Department of Transportation for presenting to our

organization the DBE Disparity Study results We very much appreciated the presentation by Earl

Key Director of WSDOTrsquos Office of Equal Opportunity Teresa Berntsen (Director Office of Minority

and Womens Business Enterprises) as well as Leslie Jones (Director Sound Transit Office of Small

Business Development and Labor Compliance)

Following a review of the WSDOT Disparity Study and as a result of consultation with WTS

International we would like to provide WSDOT with our comments for your consideration

As you know WTS is an organization focused exclusively on attracting retaining and advancing

women in transportation By the year 2018 there will be thousands of vacancies in the

transportation industry for qualified professionals and while women account for more than half of

the worldrsquos workforce they are a very small minority in transportation disciplines

We are pleased that the outcome of the 2017 Disparity Study that recognizes the on-going barriers

for DBEs including women-owned businesses in transportation The WSDOT recommended DBE

Goal of 190 is a small and important increase that can further achieve equity in WSDOTFHWA

contracting We are also pleased that the 2017 Disparity Study has documented the disparity in

WSDOT contracts that do not have a DBE or WBE goal ndash further reinforcing that all women-owned

firms and minority owned firms face equity issues We are encouraged that the WSDOT has asked

FHWA to rescind the 2016 waiver

While WTSrsquo mission is specific to the advancement of women we are a race-neutral organization To

this end we are also deeply concerned about the underutilization of minority owned firms There is

no equity or ldquofair playing fieldrdquo without equity for all gender and races We remained concerned with

the methodology required by the Code of Federal Regulations and case law because of the

dependence on the availability of firms in the calculation An unintended consequence of removing

either gender or race from the goal is that many of these firms would go out of business the

availability decreases and the formula then results in a smaller DBE goal This consequence is

contrary to our mission

We look forward to our continued participation in WSDOTrsquos DBE advisory group we are anticipating

notice that the 2016 waiver has been rescinded and how we can work together to continue

advancing minority and women-owned firms in the transportation field

Sincerely

WTS Puget Sound Chapter

Stephanie Forman

President

C Roger Millar Secretary WSDOT

C Representative Adam Smith 9th Congressional District Washington co Christine Nhan

WTS Puget Sound Chapter

PO Box 3461

Bellevue Washington 98009

From Dave Gent - WAPATo Bayne JackieCc Tom GaetzSubject WAPA Public Comments - RE WSDOT FHWA Disadvantaged Business Enterprise Proposed GoalDate Friday December 15 2017 14119 PMAttachments 12152017 DBE Proposed Goal - WAPA Public Comments Letterpdf

Good afternoon Jackie Please find attached WAPArsquos ldquofor the public recordrdquo comments with respect to WSDOTrsquos proposedDBE Goals FHWA funded work I assume that the Master DBE Directory was not sent to you this week so as a result we were notable to review the directory before the close of the public comment period That fact is noted withinour comment letter Thank you for your efforts Have a good weekend

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Friday December 8 2017 1219 PMTo Dave Gent - WAPA ltdavegentasphaltwacomgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hello Dave WSDOT did not take possession of this directory as part of our review process We will provide youwith the records without submitting a formal request However we need to get them from theconsultant first I will hopefully have them to provide next week I will keep you updated on therequest Have a nice weekend Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal Opportunity

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

December 15 2017

Jackie Bayne Policy Manager WSDOT Office of Equal Opportunity Delivered via e-mail to BayneJwsdotwagov RE Public Comment (as requested) to Proposed Overall DBE Goal for the FHWA (2018 ndash 2020) Ms Bayne Thank you for your presentation via webinar on December 5 2017 outlining WSDOTrsquos evaluation process used to determine the proposed overall DBE goal for the FHWA Thank you also for the Colette Holt amp Associates (CHA) DBE Advisory Group presentation made on September 14 2017 Both presentations helped to distill the findings of the 2017 Disparity Study produced by CHA In response to Earl Keyrsquos initial informal request to comment on the proposed overall DBE goal made during the DBE Advisory Committee teleconference held on October 12th we provided a list of reasons that we believe justify a lower DBE goal than is now being proposed Our initial response to Mr Keyrsquos request did not serve to influence WSDOT and the current proposed goal remains at 190 The arguments provided on October 12th against the significant increase in the proposed DBE goal (versus the previous goal and recent historic DBE participation) are repeated and supplemented below and will serve as the Asphalt Pavement Associationrsquos (WAPArsquos) official public comments

In concert with WSDOT and the OWMBE WAPA and the construction firms that WAPA represents have demonstrated a commitment to the principals of equal opportunity for all ldquoready willing and ablerdquo firms for the entire history that our DBE program has been in place WAPA has continuously demonstrated its commitment to the goals of the DBE program and for increasing the representation of disadvantaged groups within our industry as both workers and owners of firms Please recognize that WAPArsquos oversight and critique of the DBE program has always attempted to balance the principals of fair and open competition with the practical aspects of the low bid compressed schedule high performance standards demanded within the WSDOT marketplace Our comments below are meant to enhance WSDOTrsquos and OWMBErsquos understanding of the market and to hopefully have WSDOT fully consider all of the dynamics that are at play when proposing its Triennial DBE goal for FHWA projects Current DBE Capacity vs Historically Robust Market In advocating for a realistic and defensible DBE goal it has always been WAPArsquos position that it is paramount that the realities of the marketplace and true certified DBE subcontracting capacity should be a primary standard While a ldquostretchrdquo goal may appear to be progressive on its face it comes with consequences for all of the parties involved in the WSDOT federal aid contracting arena To balance the dynamics of the WSDOT contracting system the DBE goal should be tempered with the realities of the market and with a true measure of the underlying effectiveness of the DBE support services available to contractors

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 2 of 6 The first point of fact that has not been given any apparent consideration by WSDOT in its evaluation of the current capacity of certified DBErsquos is that there is an historically robust workload scheduled to be performed in the 2017 through 2022 time-frame particularly in the Puget Sound ldquoEverett to Olympiardquo corridor By WSDOTrsquos own estimates (see Attachment A) public works construction project starts in the 2018 to 2022 time-frame in this region will exceed $333 billion (B) counting the work projected from just five public entities WSDOT will be taking a decidedly ldquoback seatrdquo role during this period to Sound Transit which will have construction project starts of $226B vs WSDOTrsquos projected volume of $67B WSDOTrsquos summary publication titled Washington State Department of Transportations Proposed Federal Highway Administration Triennium Disadvantaged Business Enterprise Goal Federal Fiscal Years 2018-2020 states correctly that ldquoIncluded among the types of evidence that must be considered are the current capacity of DBEs to perform work on WSDOTrsquos federally-assisted contracts as measured by the volume of work DBEs have performed in recent yearshelliprdquo (Step Two Adjustment discussion) With the Sound Transit program being over 300 larger than the total WSDOT program in this region a sober assessment of true certified DBE capacity in the next three years needs to be considered by WSDOT If the huge construction boom over the next five years does not prompt a Step Two Adjustment then it becomes obvious that the realities of the market are being ignored by WSDOT for DBE goal setting Put another way if the 2018 through 2022 level of contracting activity does not warrant a goal adjustment what will DBE Access Barriers Not Yet Addressed The CHA 2017 Disparity Study points out multiple recommendations in Section VII that impact DBE participation and access to the market Assessments relating to those impacts and the state of maturity in addressing the CHA recommendations should be considered when assessing the DBE goal Many of the CHA recommendation have not been adequately addressed at this point in time Some of the prime examples are listed below Increase Certification and Expertise ndash The Disparity Study as explained to us includes all minority- (MBE)

and women-owned (WBE) firms that could be readily identified that perform work within Washington State and that perform work within the NAICS code framework CHA developed to cover WSDOT project work During the various presentations relating to the Disparity Study WSDOT representatives said that outreach to currently non-certified MBE amp WBE firms has increased and that WSDOT aspires to bolster its list of certified firms in the future but this effort is just beginning and the success of the effort needs to be means tested against the broader population of MBE amp WBE firms included in the CHA base line evaluation As the Disparity Study uses a much broader population of MBE WBE contractors to arrive at its conclusions (both non-certified firms and firms too large for certification) it follows that the calculated DBE proposed goal is overstated to include capacity that does not currently exist within WSDOTrsquos certified DBE framework Unless OMWBE is experiencing sudden and unprecedented success in recruiting new MBEWBE firms the DBE goal should be adjusted downward to recognize that the ldquoready willing and ablerdquo contractors that WSDOT has certified is only a subset of the total MBEWBE contracting population used in the Disparity Study evaluation

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 3 of 6

Until the promised WSDOT outreach registration efforts result in a substantial increase in available certified DBE firms it is premature to count the entire population of minority- and women-owned contractors as available to participate in WSDOT contracting It is unreasonable for WSDOT to project availability capacity using the entire MBEWBE population when only its currently truncated list of certified firms is acceptable to count toward the DBE goal

A corollary to the Increase Certification and Expertise discussion above is that the calculation of the Base Figure evidently includes the broadest practical population of MBE and WBE firms identifiable (without a review of the CHA Master DBE Directory which has not been supplied prior to the close of the public comment period the scope of the directory cannot be ascertained) If this directory includes a large population of MBEWBE firms that are not certified or are too large to be certified then the Base Figure calculation should be adjusted to reflect that certified DBE firms are a fraction of the total MBEWBE firms used to arrive at the 19 suggested DBE goal With respect to the CHA Master Directory it is our understanding the WSDOT was not given the directory as part of its evaluation of the Disparity Study and it follows that it did not evaluate the proposed DBE goal in the context of the CHA Master DBE Directory In our opinion an informed decision on adjusting the CHA baseline goal calculation can only be done after an extensive evaluation of the CHA Master DBE Directory If this has not been done WSDOT has not exercised due diligence in evaluating the context and underpinnings of the CHA Disparity Study and a certified DBE Triennium goal proposal to the FHWA is premature Increase Contract ldquoUnbundlingrdquo ndash If this proposed strategy (suggested by the CHA Study) is undertaken

certified DBE Subcontractors currently available will be engaged as Prime Contractors and the value of their prime contracts will bolster the overall percentage of certified DBE contracting but a systematic effort and strategy to ldquounbundlerdquo has not been articulated by WSDOT The key question of how this effort can be accomplished without increased cost to the taxpayers and increased inconvenience for the traveling public As noted in the CHA study (page 129 final paragraph) ldquoUnbundling must be conducted however within the constraints of the need to ensure efficiency and limit cost to the taxpayersrdquo As of this writing no overarching strategy for further unbundling with proper accountability has been articulated by WSDOT to the DBE Advisory Group

Review Insurance and Experience Requirements ndash Impediments to certified DBE participation due to

necessary insurance and experience standards cannot be solved by the prime contracting community Unless and until WSDOT puts together programs to address the burden of the substantial risks shouldered by Prime Contractors on WSDOT contracts barriers for streamlined utilization of certified DBE firms will continue to exist These market driven barriers will continue to dampen the availability of certified DBE Subcontractors that are able to perform within WSDOTrsquos strict criteria without unduly transferring risk to the Prime Contractor

Better Partnering to Overcome DBE Failures to Perform ndash Prime Contractors are held fully responsible to maintain the project schedule and are subject to project liquidated damages even when they may be struggling to deal with Subcontractor performance issues It is well-established that replacing a certified ldquocondition of awardrdquo (COA) DBE Subcontractor is very onerous and likely very costly to the Prime Contractor Unfortunately the imposition of strict and often counter-productive commercially useful function (CUF) rules often compound this issue as Prime Contractors cannot help COA DBE Subcontractors work through capacity expertise or time-related issues that impact timely performance

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 4 of 6

WSDOT needs to be a much better partner in the process of dealing with under-performing or non-performing certified DBE Subcontractors The current standard operational procedure places all of the exposure for non-performance onto the Prime WSDOT does not have an equitable system to account for non-performing or under-performing certified DBE Subcontractors hired as a condition of award (COA)

Performance Information and Training ndash Commercially useful function rules (CUF) and the lack of clear benchmark definitions for good faith effort (GFE) standards remain barriers for improving accountability within the DBE system and in turn lead to distorted DBE participation rates These items remain amorphous due to lack of training or lack of historic information Chronic uncertainty exists regarding both of these items Until WSDOT changes and improves its approach to provide transparency and certainty for both the prime bidding amp subcontracting parties true certified DBE capacity will continue to be masked and the resultant higher subcontracting costs associated with a distorted marketplace will continue to be hidden

WAPA respectfully suggests that simply adding an ldquoEstimated DBE Subcontract Premiumrdquo line to the current DBE bid forms would help to establish benchmarks that could begin to be used to ldquomeans testrdquo good faith efforts If this information had been gathered over the last 20 years of the DBE program meaningful GFE standards could have been developed and could be in place today

An in-depth review of CUF standards would also provide clarity For instance it is unclear why force account items performed by certified DBEs are currently counted at only 50 of the value of the work How was this benchmark established Has it been reviewed since imposed Did it ldquosolverdquo whatever inequity WSDOT was trying to address Better clarity may lead to more expanded opportunities for certified DBE Subcontractors

Enhanced Supportive Services and Business Development Programs ndash Unless and until stronger programs of these types are shown to be effective in boosting certified DBE business development increased DBE participation due to stronger business acumen should not be relied upon when setting the new DBE goal

Does OMWBE have a reasonable expectation that future plans for enhanced and expanded programs will be more successful than those employed in the past Assuming that certified DBE Subcontractors will be better prepared to deal with the WSDOT contracting environment than in the past should not be relied upon to boost DBE participation goals Especially troubling were the multiple references within the CHA report highlighting that DBEs believe that the staff at OMWBE lack a deep knowledge about the highway construction industry (eg Study page 129 2nd paragraph) Does OMWBE have a path forward that will address this issue and thus improve supportive services impacts

Develop a Bonding and Financing Program for SBEs ndash This is completely outside of the prime contracting

communityrsquos scope of influence WSDOT must find a way to institute changes that both protect the taxpayer and help increase certified DBE bonding capacity and access to financing ndash very large hurtles To assume that these hurtles can effectively be overcome within the 2018 ndash 2020 time frame when they have been chromic issues for the past 20 plus years of DBE program development is not rational

A helpful innovation would be for WSDOT to underwrite performance and payment bonds for certified DBE firms or to create promote a system that helps certified DBE firms obtain private bonding Bridging the gap to address capital access and performance risks (bonding) must be championed by WSDOT

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 5 of 6

Base Figure Adjustment to Address Available Subcontract Volume and DBE Prime Contracts It is a fact that mid- to large-sized MBEWBE firms that compete both as Prime Contractors and as Subcontractors are not eligible to be OMWBE certified DBEs Further the current amount of contract unbundling for greater DBE access to WSDOT prime contracting (see below) accounts for a very low dollar volume of prime contracts performed by certified DBEs Finally by specification (WSDOT standard specification 1-081) Prime Contractors are obligated to perform 30 of the total volume of the work (less specialty work) or stated another way a maximum of 70 of the dollar volume on WSDOT projects is typically available to award to subcontractors These market dynamics are NOT addressed in the Disparity Study A responsible DBE goal made absent of these facts should not be implemented A reasonable adjustment to the proposed 19 DBE goal is presented below

bull The percent of WSDOT prime contracts awarded to certified DBE firms is likely less than 5 by total WSDOT

contract volume Assuming this approximation is valid (likely very conservative) then the amount of WSDOT contract work available to certified DBE firms via subcontracting should be adjusted to account for the factors outlined above The Base Figure (19) should be adjusted to recognize that a 70 maximum subcontractor participation is available (in the numerator) and to account for the assumed 5 certified DBE prime contracts in the denominator Reasonable Base Figure Adjustment 19 (proposed) x 70 subcontracts available divide 95 of Non-Certified DBEs as Prime Contract Volume = 190 x 0737 = 140 adjusted goal This is an adjustment based on the practical dynamics of the WSDOT contracting system and it represents a more realistic look at the true subcontract volume that is available for Prime Contractors to award to certified DBE firms

Conclusions

Until the items listed above are addressed and in place it is not reasonable to believe that DBE goals can be increased by nearly 163 (from 117 to 190) When the projected robust public works contracting market is appropriately considered the true availability of certified DBE Subcontractors for WSDOT contracts will be truncated due to demand across all public works sectors With multiple strong public works programs competing for a limited population of certified DBEs the ability to meet increased WSDOT DBE goals will be severely challenged Without very clear concise and transparent good faith effort rules the ability to address DBE goals that greatly overestimate true near term certified DBE capacity will result in non-attainment bid day chaos failures to perform andor rapidly increased pricing

The clear conclusion is that at this point in time under the current circumstances without effectively instituted new programs rules procedures that could enhance the certified DBE programrsquos overall effectiveness we believe that the DBE goal should remain at or near 12 As OMWBE documents and demonstrates its future successes in improving access and eliminating capacity barriers only then should the DBE goal be re-evaluated and increased

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 6 of 6

In closing please remember that it is rare that the contracting community is asked our opinion with respect to the WSDOTrsquos DBE policies and so this letter is somewhat a vehicle to highlight collective concerns It is our belief that the majority of the Prime Contractors in Washington state support the objective of creating a level playing field for ready willing and able DBEs

If the level playing field is not yet possible in the absence of the DBE program then the key is to set realistic goals that recognize reflect and address the hard realities and market dynamics imposed by WSDOTrsquos bedrock environment of awarding contracts to the lowest cost responsible and responsive Contractor

Respectfully submitted Washington Asphalt Pavement Association

David Gent Tom Gaetz Executive Director Senior Advisor

Attachment A ndash WSDOT Central Puget Sound Public Works Contracting Projection 2018 - 2022

Con

stru

ctio

n Pr

ojec

t Sta

rts

2018

-202

2S

ound

Tra

nsit

$22

6 B

SD

OT

$08

B

Tran

sit

amp O

ther

s$1

7 B

WS

DO

T$6

7 B

Por

t of

Sea

ttle

$15

B

TOTA

L$3

33

B

Source N

ov 1

9 2

017

pres

enta

tion

to W

APA

Ann

ual M

eetin

g

Attachment A

Work (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Dave Gent - WAPA [mailtodavegentasphaltwacom] Sent Thursday December 7 2017 144 PMTo Bayne Jackie ltBayneJwsdotwagovgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hi again Jackie Irsquom fine thanks and hope you are the same Interesting The Master DBE Directory is the basis for and integral to the conclusions of the DisparityStudy Is it not then part of the information needed to fully review and comment on the DisparityStudy Was it not provided by CHA to WSDOT for review We are trying to fully understand thestudy and if this directory was part of the study why would it need to be obtained by a publicrecords disclosure It should be in the public domain and not restricted from ease of access If you are sure that a public records request is needed Irsquoll start that process but we will need tonote that point of fact when we submit our public comments If you are able to reconsider please let me know Respectfully

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Thursday December 7 2017 126 PMTo Dave Gent - WAPA ltdavegentasphaltwacomgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hello Dave I hope you are doing well

That information would likely be obtained through a public disclosure request Best Regards Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Dave Gent - WAPA [mailtodavegentasphaltwacom] Sent Thursday December 7 2017 113 PMTo Bayne Jackie ltBayneJwsdotwagovgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Jackie Can you please provide an electronic file or provide a weblink for the Master DBE Directory thatColette Holt amp Associates developed for the WSDOT Disparity Study 2017 (first referred to on Page 8of the Disparity Study) I did not see a link to this Master DBE Directory within the study Thanks

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Friday October 27 2017 1118 AMTo Kenyon Wendy ltKenyonWwsdotwagovgt Adams E W ltewadamssystemsclcomgtAdekoyaAndrew ltandrewadekoyabccomgt AlyssaBalllegwagov Anindita Mitraltamitracrea-affiliatescomgt APRISeattlehotmailcom Armstrong CharlotteltCharlieAatgwagovgt Ato Apiafi Architects PLLC ltatoaatoapiaficomgt benzfanwaorgBerntsen Teresa (OMWBE) ltTeresaBomwbewagovgt Billingsley Andrealtbillinawsdotwagovgt Bramlet Erica ltEricaBramletlegwagovgt Brooks Julius

ltBrooksJwsdotwagovgt Brown Jason ltjbrownldccorpcomgt bwallacenwlaborersorgCamden Allison ltCamdenAwsdotwagovgt carlllivingstongmailcom Cerda OscarltCerdaOwsdotwagovgt Christopher Chris ltChristCwsdotwagovgt ckerneycaawagovdanplatinumbusinessgroupcom davegentasphaltwacom David BalltDavidsignsnowmillcreekcomgt Davis Khalia ltDavisKhwsdotwagovgt Davis RaShelle (GOVltrashelledavisgovwagovgt Dayton Jo ltDaytonJwsdotwagovgt ddhondtagcwacomDebbieDriverlegwagov Dennis ltdennisahlkiewitcomgt dmcleodnwlaborersorgdrart6651gmailcom Duncan Enid lthigradeincgmailcomgt EltonltEltonwashingtonstatetruckingcomgt eprincecaawagov flemosldccorpcomfmartineznwmtnmsdcorg geoffshookatkncom glovelady ltgloveladyexcelglovescomgtGrabow Katie ltkgrabowsystemsclcomgt Guilfucci Jackie ltJackieGuilfucciskanskacomgt HealyLinda ltHealyLwsdotwagovgt Higginbotham Breanne ltHigginBwsdotwagovgt HirscheyClaudia ltclaudiahirscheycomcastnetgt Holt Colette ltcoletteholtmwbelawcomgt Huff JohnltHuffJwsdotwagovgt Iniguezchawagov JacksonMaynardlegwagov Jimmy Matta(jmattaalcantarassoccom) ltjmattaalcantarassoccomgt kellywickergovwagov Key EarlltKeyEwsdotwagovgt Kirk Jon ltjkirkwhhnfscomgt Kris Purrier ltkpurrierhwageocomgtleewabuildingtradesorg lesliejonessoundtransitorg Liz Evans ltlevansagcwacomgt LopezErin lterinlopezdeswagovgt Martha Cerna ltMarthaPSLCCORGgt Martin-Arnold EdwinaltMartinEwsdotwagovgt Mary Lerdahl ltmarydbeelectricinccomgt McCarty Hannahlthannahmccartylegwagovgt Melissa L Boyles ltmelissaboylesmwbelawcomgt Metcalf KeithltMetcalKwsdotwagovgt michaelicapaawagov Michelle ltMichelleTTCC26netgt MillarRoger ltMillarRwsdotwagovgt Nakamura Jason ltjasonnakamura1-alliancecomgtNavarroLportseattleorg olliepmt-solutionscom pastorbanksesbctacomacom PatrickHughes ltphugheshughesgroupbizgt Petersen Jodi (FHWA) ltJodiPetersendotgovgtrabbottliunaorg rcarmsteadgmailcom ricemportseattleorg Riley D ltdrileylydigcomgtSeling ltSelingjpfranciscomgt sherryharrisergosynchcom Stell MellodyltStellMwsdotwagovgt terigobintulaliptribes-nsngov timwilliamfactorycom tinaterra-tdicom tkellyldccorpcom tomgaetzmsncom vcollinsacec-waorgverlenejazzmsncom Wang Albert ltWangAatgwagovgt Waugh GregltGregWMaxKuneyComgt Yates Henry ltYatesHWSDOTWAGOVgtCc Tom Gaetz lttomgaetzmsncomgt Dave Gent - WAPA ltdavegentasphaltwacomgt VanCollins ltvcollinsacec-waorggt Daniel Seydel II ltdanplatinumbusinessgroupcomgt MaynardJackson ltJacksonMaynardlegwagovgt Carl Livingston ltcarlllivingstongmailcomgt DonMcLeod ltdmcleodnwlaborersorggt JIMMY MATTA ltjimmymattamsncomgt Prince Ed(CAAA) lteprincecaawagovgt David DHondt ltddhondtagcwacomgt Irene Reyesltgloveladyexcelsupplycompanycomgt McDaniel Craig ltMcDaniCwsdotwagovgtsherryharrisergosynchcomSubject WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Good morning On Monday October 30th WSDOT will be releasing the proposed overall Federal HighwayAdministration Disadvantaged Business Enterprise goal attached for public comment throughDecember 15 2017 This overall DBE goal is based upon the recently completely DBE ProgramDisparity Study WSDOT is proposing a 19 percent overall DBE participation goal on Federal Highway

Administration-funded projects for federal fiscal years 2018 through 2020 DBE goals fortransportation projects that receive federal funds represent a percentage of the value of work inwhich minority- and women-owned businesses should participate Once finalized and submitted toFHWA early next year the goal will be effective through Sept 30 2020

The purpose of the DBE program is to create a level playing field for firms owned and operated bydisadvantaged individuals wanting to participate in federally assisted highway transit and aviationprograms The attached overall DBE goal is for FHWA funded projects WSDOT will be updating theFTA and FAA overall DBE goals in the near future

If you have any questions please contact Earl Key Director of the Office of Equal Opportunity at3607057091 or KeyEwsdotwagov Thank you Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

  • Proof-Of-Publicationpdf
    • Mediapdf
      • AGC
      • Daily Journal
      • Daily Medium
      • DBEGood
      • OMWBE
      • Seattle Medium
      • Tabor 100
      • The Chronicle
      • Tukwila
        • King County
          • Public-Comments-20180111pdf
            • 19 DBE Requirement(1)
            • AGC Comments on Proposed 10 Goad
            • Backstrom Curb amp Sidewalk
            • comments on WSDOT proposed DBE goal
            • Cowlitz County Public Works
            • DBE Contracting goals
            • DBE Goal
            • DBE Program Disparity Study
            • Disparity Study Comments from City of Spokane
            • FW_ WSDOT News - WSDOT seeks comments on propos
            • Proposed DBE Goals
            • RE_ DBE Contracting Goal Comments
            • Re_ DBE Goal Comments
            • Re_ Seydel Dan - WSDOT Disparity Study Present
            • Support for WSDOTs proposed DBE goal
            • Why we need mandatory goals
            • WSDOT DBE Goal - Comment in support
            • WSDOT Proposes DBE goal of 19
            • WSDOT propsed DBE Goals
            • WTS - Disparity Study Comment Letter

httpwwwchronlinecomnewswsdot-seeks-public-comment-on-disadvantaged-business-enterprisearticle_f5c753ea-be61-11e7-966c-972f6769d8a6html

WSDOT Seeks Public Comment on Disadvantaged Business Enterprise By The Chronicle Oct 31 2017

The Washington State Department of Transportation will be accepting public comments about the departmentrsquos proposed Disadvantaged Business Enterprise goal for federal contracts

The goal is for transportation projects receiving Federal Highway Administration funds to have 19 percent of the value of work done by minority or women-owned businesses during the 2018 through 2020 fiscal years

ldquoThe purpose of the DBE program is to create a level playing field for firms owned and operated by disadvantaged individuals wanting to participate in federally assisted highway transit and aviation programsrdquo a press release from WSDOT said

A series of public meetings will be held to discuss the goal in Spokane Vancouver and Seattle

For those who are unable to attend the in person meetings a webinar will be hosted from 230 to 430 pm Thursday Dec 5 The webinar is free but registration is required To register email DisparityStudywsdotwagov

Page 1 of 2WSDOT Seeks Public Comment on Disadvantaged Business Enterprise | News | chronlin

1112018httpwwwchronlinecomnewswsdot-seeks-public-comment-on-disadvantaged-business-

Written comments can also be submitted by mail or email to Jackie Bayne policy and reporting manager for the department of transportation at Washington State Department of Transportation Office of Equal Opportunity PO Box 47314 Olympia 98504 or by email at disparitystudywsdotwagov Comments will be considered through Dec 17 2017

More information about the goal is available at all regional offices or at the main office in Olympia located at the Transportation Building 310 Maple Park Ave SE Olympia More information can also be found online at wsdotwagovequalopportunity

Page 2 of 2WSDOT Seeks Public Comment on Disadvantaged Business Enterprise | News | chronlin

1112018httpwwwchronlinecomnewswsdot-seeks-public-comment-on-disadvantaged-business-

larr Halfway there SR 8 fish barrier removal reaches milestone New SR 26 traffic cameras available rarr

WSDOT seeks comments on proposed DBE contracting goal for highway projects

December 1 2017 | No Comments

WSDOT is seeking comments on proposed participation goals for Disadvantaged Business Enterprises on upcoming Federal Highway Administration contracts a Yakima meeting has also been added to the schedule Source WSDOT Permalink WSDOT seeks comments on proposed DBE contracting goal for highway projects

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Page 1 of 3WSDOT seeks comments on proposed DBE contracting goal for highway projects | Tukw

1112018httptukwilatowingcom20171201wsdot-seeks-comments-on-proposed-dbe-contracting

From Liz EvansTo Bayne JackieSubject AGC Comments on Proposed 10 GoadDate Tuesday December 12 2017 50314 PMAttachments WSDOT Proposed Goal - AGC Comments FINALdocx

Hi there Jackie Attached are AGCrsquos comments on WSDOTs proposed 19 goal We will also be mailing you a copy Thanks for the opportunity to comment and we hope you find it helpful Regards Liz Liz Evans CAE Northern District ManagerAGC OF WASHINGTONTel 3602238757 | wwwagcwacom JOIN US for the 2018 AGC of Washington Annual Convention amp Technology Expo Jan 26

CUsersmwillmsPicturesInland AGCLogo_RGB_Half_5in

December 12 2017

Page 5

December 12 2017

VIA EMAIL amp US MAIL

Ms Jackie Bayne Policy amp Reporting Manager

Washington State Dept of Transportation

210 Maple Park Ave SE

PO Box 47314

Olympia WA 98504

RE WSDOT Proposed FHWA Triennium Disadvantaged Business Enterprise Goal

Dear Ms Bayne

This letter summarizes the views of the Associated General Contractors of Washington and Inland Northwest Associated General Contractorsrsquo (hereafter referred to collectively as AGC) regarding the Washington State Department of Transportationrsquos (WSDOT) recently proposed FHWA Triennium Disadvantaged Business Enterprise (DBE) Goal (the ldquoProposed Goalrdquo) AGC shares WSDOTrsquos commitment to continue the promotion of DBE firms but AGC is concerned the Proposed Goal which is a significant increase from the previous goal and actual utilization may have unintended consequences and could impose significant burdens on both prime contractors and DBE contractors alike AGC requests WSDOT reconsider its Proposed Goal and adjust the Proposed Goal to account for inevitable availability and capability issues including the lack of a formal retraction of the non-minority woman owned business waiver that makes up over half of the Proposed Goal Implementing an unachievable goal will only be to the detriment of the DBE program

1 AGCrsquos Membersrsquo Interest in WSDOTrsquos Proposed Goal

Together AGC of Washington and Inland Northwest AGC represent and serve the commercial industrial and highway construction industry These professional associations of commercial contractors are comprised of more than 900 members who have joined together to enhance the performance of their industry and build a better climate for construction operators many of which are small and closely held businesses

Like WSDOT AGC is firmly committed to the principals of equal opportunity and promoting efforts to ensure minority women and veteran owned businesses are properly represented In both its political advocacy and membership programs AGC has demonstrated its commitment to increasing the representation of disadvantaged groups in the construction industry as both workers and owners of firms For AGC this is both an issue of principles and a practical one The construction industry as a whole is facing a critical shortage of workers and it is imperative that the industry attract new participants Among AGCrsquos activities demonstrating this commitment are the following

middot AGC has an ongoing ldquoContractor Exchangerdquo program through which small minority- and women-owned subcontractors are offered one-on-one networking opportunities with established general contractors

middot The AGC Education Foundation provides financial support to construction-related programs in K-12 schools and conducts outreach specifically targeted at low income disadvantaged and female students

middot More than 2500 students most from inner-city schools participate in annual AGC-sponsored Construction Career Days in King Pierce and Spokane Counties

middot AGC supports the Pre-Apprenticeship Construction Training (PACT) program at Seattle Vocational Institute This program is focused on preparing underrepresented communities to be highly qualified applicants and successful apprentices in the construction trades

middot AGC is a sponsor of the Turner School a training course for minority- and women-business owners in the construction industry

middot AGC supports the National Association of Women in Construction (NAWIC) which provides professional development and other services to its members

middot AGC routinely supports legislative efforts aimed at supporting small businesses and encouraging small business participation

middot AGC recently formed a Diversity and Inclusion Committee comprised of both prime and DBE participants The purposed of the committee is to expand opportunities for DBE members and to help AGC consider diversity in decision-making Recently AGC approved a deeply discounted introductory dues structure for certified DBE members

middot AGC is a WSDOT partner on the new mentorproteacutegeacute program

AGCrsquos experience has been that the most effective approach is to help make emerging businesses successful through outreach training and public policies that will grow their capacitymdashnot by imposing mandates without clear evidence as to the mandates feasibility

2 WSDOTrsquos Proposed Goalrsquos Impacts To The Construction Industry

WSDOTrsquos Proposed Goal is 190 The Proposed Goal is based upon the recent Collete Holt amp Associates (CHA) Disparity Study released in 2017 With respect to availability the Disparity Study reports the following weighted availability for FHWA-Funded projects

Thus the 190 goal factors in Black Hispanic Asian Native American and White Women into its availability As indicated however this 19 goal raises a number of concerns

a WSDOTrsquos 19 Proposed Goal Represents a Significant Increase Without Concrete Evidence of Available And Capable DBE Firms

First WSDOTrsquos Proposal Goal of 190 represents a significant increase as compared to actual DBE participation (141 in 2014 117 in 2015 and 151 in 2016) as well as the last FHWA proposed goal of 116 for 2014-2018 See WSDOTrsquos Proposed Goal and Interim FHWA Overall DBE Goal Methodology FFY 2014-2018 The Proposed Goal is 74 more than the last goal which represents a 638 increase and a 52 increase over the average actual utilization for 2014-2016 While Contractors were exceeding the previous 116 goal this is primarily based on the fact that WSDOT previously requested a waiver to consider non-women-owned businesses and the waiver was not granted and effective until June 2017 (meaning that for 2014-2016 women were counted towards race-conscious goals and inevitably a higher overall percentage of DBE firms were utilized)

Contractors struggle to meet present DBE goals due to the relatively low availability of experienced and certified DBE firms By increasing the goal WSDOT is understandably trying to increase the participation of underrepresented firms Drastically increasing the goals (by over 5 of actual utilization) without concrete evidence that there is sufficient availability andor capability of such firms however will have the opposite effect Notably this lack of availability and capacity of DBE firms was discussed in detail in the Disparity Study For example the CHA Disparity Study notes a number of concerns of DBE firms while technically ldquoavailablerdquo with respect to the goal percentages are unable to meet the requirements necessary to fulfill the contract including purchasing the equipment necessary having available labor and ability to meet insurance and financing requirements Thus while there may be ldquoavailablerdquo firms there is not clear evidence (and if fact evidence to the contrary) that those available firms are capable and available to perform the majority of the FHWA-Funded contracts let by WSDOT

An additional example affecting DBE capability and availability that is not factored into the CHA Disparity Study or WSDOTrsquos Proposed GOAL is DBE ability to enter into Project Labor Agreements (ldquoPLAsrdquo) WSDOT has indicated their interest in pursuing a PLA AGC Members have raised concerns based on repeated experiences that many DBE firms due to the administrative and cost impacts refuse to enter into PLAs precluding those firms from performing certain work or increasing costs Again this lack of ability (or refusal) to perform should also be factored into WSDOTrsquos Proposed Goal which is not currently the case

b The Proposed Goal Does Not Account For The Current Non-Minority Woman Owned Business Waiver Still In Place

Second despite the significant increase WSDOT does not account for the current waiver of non-minority women owned businesses that remains in place As noted in WSDOTrsquos proposal comments WSDOT previously sought and received a waiver of the regulation that White females as a group are presumptively disadvantaged This waiver was heavily criticized by many including AGC and the results of the most recent CHA Disparity Study confirmed that White females are presumptively disadvantaged and do not enjoy a level playing field for USDOT-assisted contracts Therefore the CHA Disparity Study recommends that this group be returned to the status of goal credit eligibility WSDOT has sought a recession of the waiver but has not yet to our knowledge received a rescission of the waiver Nevertheless the 19 Proposed Goal still includes White women In fact of the 19 availability percentage White women represent 103 (over half) Accordingly for WSDOT to proceed with the 19 goal WSDOT must receive the rescission of the waiver for this goal to be even remotely possible to achieve If the rescission is not received the Proposed Goal must be adjusted

C The Proposed Goal Does Not Account For Availability Differences Across The State

Third the Proposed Goal does not account for availability difference across the state Eastern Washington contractors with an even scarcer pool of available and qualified DBE firms in the area as is the case now will be forced to subcontract to Western Washington firms paying transportation and per diem premiums for such work The CHA Disparity Study again provides numerous excerpts of anecdotal evidence demonstrating that the goals in Eastern Washington are too high A few of the contractor comments on the topic are as follows

When you apply those same goals to a different geographic region a different project site for a large firm to meet those goals is difficult because theres not necessarily the expertise in parts of the project that were submitting on

Theres very few DBEs over here [in Eastern Washington] Next year theres going to be even more work over here What are we going to do with all these goals We always meet the goals like I said youve got three four DBEs over here to do all the work and then they cant perform

There are just no [minority-owned] DBEs available in eastern Washington

See CHA Disparity Study at p 54 Again these are factors that should be taken into account in developing the Proposed Goal or at the very least its application WSDOTrsquos Proposed Goal however is silent as to this significant issue

When the lack of available firms with the capacity to perform significant DBE projects is coupled with the increased goals the price of WSDOT contracts will inevitably increase to the significant detriment of Washington taxpayers and the public entities Inevitably with a lack of available qualified firms the lack of competition will become evident and small qualifying contractorsrsquo prices will increase due to supply and demand principles as they become selected for projects and less able to take on additional work These increased DBE contract values will be passed on to the public agency and taxpayers which translates into fewer dollars available for the sorely needed and promised infrastructure upgrades In addition the instance of bid protests will inevitably increase potentially delaying projects and further diverting agency resources from badly needed infrastructure upgrades to resolving unnecessary disputes or rebidding the projects altogether

Finally faced with such drastic and potentially impossible requirements if adjustments are not made contractors may focus more on demonstrating good faith efforts Both a contractor who meets the required goal and a contractor that demonstrates good faith efforts are eligible for award It is likely that the contractor relying upon good faith effortsmdashwho will have a lower price than the other contractor who sacrificed price to actually meet the goalmdashwill be selected by the public agency This outcome will erode the total percentage participation of eligible firms and would clearly be inapposite of WSDOTrsquos intentions

3 Conclusion and Request

AGCrsquos members have asserted these and multiple other concerns Implementing an increased goal across the state and all contracts without clear evidence of available DBEs capable of performing the work and meeting the project requirements will have significant and far-reaching impacts on the construction industry many of which work against the aim of the Proposed Goal itself AGC requests WSDOT reconsider its Proposed Goal of 19 and make adjustments to account for the capability of DBE firms the lack of a rescission of the non-minority waiver and the lack of available DBE firms in parts of the state This Proposed Goal and its impacts on the construction industry will be irrevocable and will be to the detriment of taxpayers It is prudent to address these adjustments before implementing the Proposed Goal

Very truly yours

David DrsquoHondtCheryl Stewart Executive Vice President AGC of WashingtonExecutive Director Inland Northwest AGC

AGC of Washington bull 410 11th Avenue SE 203 Olympia WA 98501

Inland Northwest AGC bull 4935 E Trent Avenue Spokane WA 99212

image3jpeg

image1png

image2emf

image4png

image5jpeg

From Steve SmithTo WSDOT Disparity StudyCc Bayne JackieSubject 19 DBE RequirementDate Thursday December 14 2017 31947 PMAttachments DBE List and NAICS Listingpdf

Disparity Committee I recently read in The Daily Journal of Commerce that WSDOT plans to adopt a 19 DBEstandard for all FHWA funded projects early next year Our company S amp K Painting Inc is abridge painting company which is based in and works exclusively in Oregon and Washington Ihave been the owner of this firm since 1978 when it was first established My concerns aboutthe proposed 19 DBE requirement is as follows 1 There are very few opportunities for subcontract work on bridge repaint jobs These jobsare usually limited to cleaning and painting the bridge The only other facet of the project istraffic control which is almost always 3 or less of the project total cost The traffic controldoes provide a very good subcontracting opportunity 2 The NAISC code of 238320 includes bridge painting but also includes house painting wallcovering rust proofing etc which have almost no similarities to bridge painting When thiscode is used to determine the number of available firms (DBE or otherwise) that are availablefor bridge painting project this badly skews the numbers I would suggest that bridge paintingcontractors make up less than 5 of all firms in NAISC code 238320 3 If future WSDOT bridge painting projects require a 19 DBE participation A The qualified pool of DBE subcontractors available to submit pricing on any facetother than traffic control will be very limited I reviewed a list of 19 certified DBE firms listedunder painting at the WSDOT website and only recognized one firm from past projects B The number of prime bidders and competition will fall The state will incur highercosts due to this fact C Prime bidders will be forced to subcontract unqualified contractors just to be eligiblefor contract awards This will likely reduce the quality of the finished project Thank you for considering my concerns I may not have verbalized my thoughts as well as Iwould have liked but I have been in this business for almost 40 years and truly believe what Ihave said Sincerely

Steve Smith President

SampK Painting incP O BOx 390clacKamaS OregOn 97015Phone (503) 557-5544Fax (503) 557-5566Cell (503) 260-5280Steveskpaintingcom

From Lei WuTo Bayne JackieSubject comments on WSDOT proposed DBE goalDate Thursday December 14 2017 94925 PM

To Whom It May Concern

Below is my comments

The WSDOT recommended DBE Goal for FHWA contracts of 190 is a small andimportant increase that can further achieve equity in WSDOTFHWA contracting I am insupport of the 19 DBE Goal

I also want to express my appreciation for the thoroughness of the WSDOT Disparity studyand how the study disclosed the disparity in WSDOT contracts that do not have a DBE orWBE goal ndash further reinforcing that all women-owned firms and minority owned firms faceequity issues

I remain concerned with the methodology required by the Code of Federal Regulations andcase law because of the dependence on the availability of firms in the calculation Anunintended consequence of removing either gender or race from the goal is that many of thesefirms would go out of business the availability decreases and the formula then results in asmaller DBE goal

Thanks

Lei

Lei Wu PE AICP

Principal CSL Consulting

LeiWucsl-consultingnet

(425)562-6275

From Stephanie SimpkinsTo WSDOT Disparity StudySubject DBE Contracting goalsDate Wednesday November 29 2017 20259 PM

My name is Stephanie Simpkins and I own North Star Enterprises It is a large womanowned traffic control company located in Spokane Washington My mother founded thecompany in 1984 and I have worked in this family owned business most of my life Ipurchased the business from her in 2013 and have been sole owner since then My company thrived under the Disadvantaged Business Enterprise (DBE) Programimplemented by Washington Department of Transportation and administrated by United StatesDepartment of Transportation What started as a small business with one truck and a fewemployees has grown over the years to be one of the largest traffic control companies in thestate and employee countless people every construction season It has not been an easy roadover the years being a woman in the construction industry never is and it is hard to say wherewe would be now if it werenrsquot for the assistance of the DBE program As you know in June of 2017 majority women were removed from the DBE program basedon a disparity study conducted in 2012 On March 2014 Washington Department ofTransportation requested a wavier to remove majority women from the DBE program Thishas had an immediate and drastic impact on my business and all who work for me From themoment the waiver was approved and my company could no longer be used as a condition ofaward at bid time I began losing work Most recently the 2018 North Central Region ChipSeal which we have worked on for the last 10 years This contract provides work forapproximately 40 employees for the entire construction season I have already been told byseveral contractors that with such a high UDBE goal they wont even be able to consider mefor this project This loss along with several other smaller contracts to date are painting avery dismal future for my business With all of this turmoil surrounding the future of my business I find it frustrating to say theleast that WSDOT has chopped me off at the legs by not allowing my firm to count for theCOA but can use the little participation I may still contribute to help them reach their overallstate goal How is this fair If the contractors canrsquot utilize my business than neither shouldWSDOT As far as setting future state DBE contracting goals it looks as if the bar will beraised once again all while excluding the largest subset of useable DBErdquoS To me raising theoverall state goal at this time (which is already challenging to meet) with women DBErsquosexcluded from the program seems horribly ill timed

From Karen R BannishTo Bayne JackieSubject DBE GoalDate Tuesday December 5 2017 32549 PM

Hello Jackie ndash thank you for the webinar today concerning the proposed Overall DisadvantagedBusiness Enterprise Goal for the Federal Highway Administration I understanding the DisparityStudy much better now and checked the document you mentioned on the WSDOT website Pacific County is located in the Southwest corner of the State of Washington The tip of the LongBeach Peninsula would be 2 frac12 hours from Interstate 5 Our federal work primarily includes strictlyoverlay projects with 12 or fewer items of work included in the contract When bidding a project(our contracts are usually less than $500000) we sometimes received a single bid from the process Due to our proximity and the small cost for the work it is difficult to entice DBE participation Thereare simply no items of work that can be performed Having a mandatory DBE goal placed upon theproject in a rural area simply to meet the disparity guidelines will only increase the cost of theproject We feel the goals should be set in balance with the cost of the project and the items of work and notsimply directed to meet the overall goal

Karen BannishSenior Engineering TechnicianPacific County Department of Public Works211 North Commercial StreetRaymond WA 98577(360) 875-9368

From Dawn EgbertTo Bayne JackieSubject DBE Program Disparity StudyDate Tuesday December 5 2017 23825 PM

Hi JackieThank you for the great information on the call today You talked about the small works rosterbriefly We had a conversation in our office today about small contractors who are signed up on thePort of Vancouverrsquos small works roster Our team has had opportunity to talk to some of thecompanies on our roster who are women owned or minority owned businesses but they arenrsquotsigned up as a DBE firm When asked about that theyrsquove mentioned that they donrsquot want to fill outthe additional paperwork required to obtain the certification as a DBE As for the DBE goal at 19 it doesnrsquot seem to present an issue for the majority of our projects ndashespecially those where we would apply FHWA funds if granted However if we did happen to have aproject that didnrsquot include classifications of work where DBE certified participants are availablewould there still be an exception or a good faith efforts clause Thanks again for your time Dawn EgbertProcurement Services Manager3103 NW Lower River Road Vancouver WA 98660Direct 3609921102 | Cell 360448-9867 | Main 3606933611 | Fax 360735-1565degbertportvanusacom | wwwportvanusacom | available port properties Leadership | Stewardship | Partnership

From Feist MarleneTo WSDOT Disparity StudyCc Simmons Scott M Twohig KyleSubject Disparity Study Comments from City of SpokaneDate Friday December 15 2017 52226 PMAttachments image010png

image011pngimage012png

December 15 2017 Jackie BaynePolicy amp Reporting ManagerOffice of Equal OpportunityWashington State Department of TransportationPO Box 47314Olympia WA 98504-7314 RE Proposed DBE Contracting Goal for Highway Projects Dear Ms Bayne The City of Spokane would like to provide comments related to proposed DisadvantagedBusiness Enterprise Goal for Federal Highway Administration (FHWA) contracts by theWashington State Department of Transportation (WSDOT) Office of Equal Opportunity Manyof our projects receive funding from FHWA and as such the proposed new goals areapplicable to City work The City is supportive of the programrsquos purposemdashldquoto create a level playing field for firmsowned and operated by disadvantaged individuals wanting to participate in federally assistedhighway transit or aviation programsrdquo However the City is concerned about the ability to achieve the proposed utilization rate of upto 19 percent for DBEs in Eastern Washington considering the low number of DBEs in ourregion and the record construction under way in the City and in our region WSDOTrsquos DBE Program Disparity Study notes ldquoContractors in Eastern Washington repeatedlyreported that the goals on projects in their area are too highrdquo The Inland NorthwestAssociated General Contractors group notes that only about 12 DBEs in construction fields areavailable in the greater Spokane area Meanwhile the City has performed record construction in each of the last three years withproject totals hovering around $100 million Our City work has been bolstered by anaggressive program to improve water quality in the Spokane River Our local school districtsand our neighboring jurisdictions also have aggressive construction programs right now

Additionally we expect WSDOTrsquos work in this region to accelerate as North Spokane Corridor(NSC) construction proceeds At times our area is reaching the limits overall of our contractingcommunity the City has worked to release its projects in the first quarter of the year as muchas possible to lock in contractors and receive better pricing The capacity of existing DBEs in our region simply cannot meet that current high demand Some DBE firms are tempted to agree to more work in these times but we have found that insome cases DBEs have stretched themselves too thin On two recent City projects generalcontractors were unable to meet DBE goals as a result of DBE firms that couldnrsquot fulfill theircommitments for providing personnel or equipment It also seems implausible to expect DBEs from the West Side to mobilize teams to work on Cityof Spokane projects in large numbers In fact the Disparity Studyrsquos author responded at arecent meeting on this topic that a DBE from the West Side only very rarely completes workon the East Side of the state We would also be concerned about moving the good-paying jobs that construction providesoutside of our region The Cityrsquos median household income is $44350 considerably lower than theState of Washington MHI of $64129 and the Seattle MHI of $77351 Our leaders are working tocreate good-paying jobs for our citizens not export them to an already wealthier part of the state Additionally these projects are also funded with local dollars and our citizens expect their money toput their neighbors to work With the above considered the City is seeking

middot DBE goals for the 2018-2020 compliance period for Eastern Washington that arereflective of the current availability of DBE firms in our region

middot The re-inclusion of non-minority women owned DBEs in achieving DBE goals InSpokane non-minority women owned DBEs make up the majority of the availableDBEs And current information shows that women in Spokane overall still lag behindmen in opportunities and wages The Cityrsquos own ldquoGender and Racial Equityrdquo reportfrom 2016 noted that overall working women earned 783 percent of the earnings ofworking men in 2014 down from 827 percent in 2009 We need to lift up all women

middot The development of WSDOT programs to encourage the growth of existing andnew DBEs who can be used on street and highway projects We are encouraged by theproposed mentorproteacutegeacute program to increase the number and capacity of DBEs inEastern Washington Programs that address other barriers such as assistance withcompleting documentation or access to bonding capacity also could aid growth ofDBEs

middot The ability for WSDOT to adjust goals on a project if a selected DBE is unable tocomplete its commitments on a project This would help enable our contractors totake a chance on a new or inexperienced DBE to complete work

middot Recognition of local programs that strive to increase diversity in the work force Forexample the City operates a robust apprenticeship program that requires 15 percentof the labor hours on public works jobs greater than $600000 to be performed byapprentices The apprentice programs in our region are stepping up recruitmentefforts and are specifically seeking to recruit more youth women and minorities intoapprentice slots

As we seek to achieve the goal of increasing participation in street and highway constructionby companies owned by disadvantaged individuals we must also acknowledge that businessdevelopment and growth happens over time We must lay the groundwork now to build abase of DBEs that can help us achieve higher utilization goals over time Sincerely Marlene FeistDirector of Strategic DevelopmentPublic Works amp UtilitiesCity of Spokane

Marlene Feist | City of Spokane | Public Works Director of Strategic Development5096256505 | cell 5097109214 | mfeistspokanecityorg | spokanecityorg

From Hall MattTo WSDOT Disparity StudySubject FW WSDOT News - WSDOT seeks comments on proposed DBE contracting goal for highway projectsDate Friday December 15 2017 11956 PMAttachments WSDOT proposed DBE goal through 2020pdf

From Hall Matt Sent Friday December 15 2017 117 PMTo BayneJwsdotwagovCc Keniston Rick (KenistRwsdotwagov) MolyneKwsdotwagov SusanWilsonclarkwagovSubject WSDOT News - WSDOT seeks comments on proposed DBE contracting goal for highwayprojects Hello Jackie Please see our comments attached regarding the WSDOT proposed DBE goals Thanks for the opportunity to provide comments Matt HallClark County Public Works Washington State Department of Transportation ndash NEWSHeadquarters ndash 310 Maple Park Avenue SE ndash Olympia WA 98504-7314 ndash 360 705-7000 FOR IMMEDIATE RELEASEOct 30 2017 Contact Jackie Bayne Office of Equal Opportunity 360 705-7084

WSDOT seeks comments on proposed DBEcontracting goal for highway projectsComments accepted through Dec 15OLYMPIA ndash Contractors trade and labor organizations small and disadvantaged businessesand all others who may be interested in working with the Washington State Department ofTransportation are invited to comment on the agencyrsquos proposed Disadvantaged BusinessEnterprise goal for Federal Highway Administration contractsDBE goals for transportation projects that receive federal funds represent a percentage of thevalue of work in which minority- and women-owned businesses should participate WSDOTis proposing a 19 percent overall DBE participation goal on Federal Highway Administration-funded projects for federal fiscal years 2018 through 2020Once submitted to FHWA early next year the goal will be effective through Sept 30 2020The purpose of the DBE program is to create a level playing field for firms owned andoperated by disadvantaged individuals wanting to participate in federally assisted highwaytransit and aviation programsConnecting with communitiesWSDOT will host a series of public meetings to provide opportunities for individuals tocomment in person

Spokane

2 ndash 4 pm Tuesday Nov 28WSDOT Eastern Region Headquarters2714 N Mayfair St Spokane

Vancouver

2 ndash 4 pm Wednesday Nov 29WSDOT Vancouver Headquarters11018 NE 51st Circle Vancouver

Seattle

2 ndash 4 pm Thursday Dec 7WSDOT Northwest Region Headquarters15700 Dayton Ave N Shoreline

Other ways to provide commentThose who are unable to attend one of the meetings can participate in a no-cost webinar from230 ndash 430 pm Tuesday Dec 5 Registration for the webinar is required Those interested inparticipating should email DisparityStudywsdotwagovWritten comments can also be submitted by mail or emailJackie Bayne Policy amp Reporting ManagerWashington State Department of TransportationOffice of Equal OpportunityPO Box 47314Olympia WA 98504-7314DisparityStudywsdotwagovDocuments detailing the methodology used for determining the FHWA DBE goals areavailable for review at all WSDOT region headquarters offices and at the TransportationBuilding 310 Maple Park Ave SE Olympia They are also available online atwwwwsdotwagovequalopportunityWSDOT will consider all written comments received through Friday Dec 15 2017 Hyperlinks within this release

WSDOT Region offices wwwwsdotwagovContactofficelocationhtmregion

WSDOT keeps people businesses and the economy moving by operating and improving the statestransportation systems To learn more about what were doing go to wwwwsdotwagovnews forpictures videos news and blogs Real time traffic information is available at wwwwsdotcomtraffic or bydialing 511 Americans with Disabilities Act (ADA) InformationAccommodation requests for people with disabilities can be made by contacting the WSDOTDiversityADA Affairs team at wsdotadawsdotwagov or by calling toll-free 855-362-4ADA (4232)Persons who are deaf or hard of hearing may make a request by calling the Washington State Relay at711 Title VI Statement to Public It is WSDOTrsquos policy to assure that no person shall on the grounds ofrace color national origin or sex as provided by Title VI of the Civil Rights Act of 1964 be excluded fromparticipation in be denied the benefits of or be otherwise discriminated against under any of its federallyfunded programs and activities Any person who believes his or her Title VI protection has been violatedmay file a complaint with WSDOTrsquos Office of Equal Opportunity For additional information regarding Title

VI complaint procedures andor information regarding our non-discrimination obligations please contactOEOrsquos Title VI Coordinator at 360-705-7090 To unsubscribe to WSDOT media releases please reply and type REMOVE in the subject line

This e-mail and related attachments and any response may be subject to public disclosure under state law

From Cochrane EmilieTo WSDOT Disparity StudyCc Eugenis Susan Cowlitz Co Public Works - Brad BastinSubject Proposed DBE GoalsDate Thursday December 14 2017 85006 AMAttachments image002png

DBE Goals - Commentspdf

Please see the attached letter with comments regarding the proposed DBE Goals Ahard copy will be sent out today

Thanks

Emilie CochraneCowlitz County Public Works1600 ndash 13th Avenue SKelso WA 98626360-577-3030 ext 6523

From Michelle WolcottTo Bayne JackieCc Robideau Christopher LSubject RE DBE Contracting Goal CommentsDate Tuesday November 7 2017 65448 AMAttachments image001png

Thank you JackieWhat a relief to know that we have been heard and are not the only small business facing thisstruggle Your email is comforting

Yes you can provide us with additional assistanceLet me introduce my boss and Senior Vice President of Red Plains Professional Chris Robideau

Chris will be your contact from here since I will be leaving the company November 17th As a WA DBE we are ldquoeligible for limited DBE Support Services (SS) funding when funds becomeavailablerdquo When will this happen And are we registered or on a list to receive fundingIs the WSDOT ICR Training a prerequisite for the funding Or just helpful knowledge

Thank you for your time Jackie I will follow through with the training

Michelle Wolcott EIT Quality Control Engineer

2103 NE 129th Street Suite 201 Vancouver WA 98686 Office (360) 448-7999 Fax (360) 258-0274

wwwred-plainscom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Monday November 6 2017 332 PMTo Michelle Wolcott ltMichelleWolcottred-plainscomgtSubject RE DBE Contracting Goal Comments

Hi Michelle

Thank you for your interest in doing business with WSDOT I apologize for the lack of informationyou have come up against in your attempts to attain access to WSDOT ICR program

As you may well know WSDOT has recently completed a state wide agency specific diversity studyAnecdotal comments submitted with the study concur with your experience Not only did somerespondents find it difficult to become prequalified they also commented that the required indirectrate of 110 percent is too low to be profitable These requirements are currently under advisementby WSDOT and new DBE program requirements are currently in the process of seeking public input

As you are an OMWBE certified DBE in Washington State you will be eligible for limited DBE SupportServices (SS) funding when these funds become available At that time funds may become availableto assist you in your struggle to attain ICR eligibility Here is a link to WSDOTrsquos Indirect Cost RateTraining httpswwwwsdotwagovAuditICRTraininghtm If you would like me to find additionaltraining or information please let me know

If I can provide additional assistance of information please let me know

Best Regards

Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Michelle Wolcott [mailtoMichelleWolcottred-plainscom] Sent Tuesday October 31 2017 835 AMTo WSDOT Disparity Study ltDisparityStudyWSDOTWAGOVgtSubject DBE Contracting Goal Comments

HelloI have been in contact with WSDOT for 6 months sharing my disparaging story of beinga small DBE unable to submit SOQs for projects requiring a WSDOT Audited IndirectCost Rate Approval We do not have an in-house accountant and our outsideaccountant has explained to get all the paperwork together for WSDOT would take 40hours of work $9000 annually We cannot justify this cost to submit on a project thatwe may not acquire We have been directed to seek financial assistance from WSDOT Federal SBA andWashington State Office for Women and Minority Owned Enterprises all of whichprovided negative responses

As a DBE business in 11 states we are supporting the 19 incentive for federallyfunded contracts but we are frustrated in the fact that we will not be one of the luckyfew to participateWe have been in business 20 years From our Vancouver Washington office our clientsare the Native American tribes across the country with all contracts federally funded This summer alone the WSDOT ICR Approval has squashed our ability to submit on twoprojects that we were perfectly qualified to performI have attached previous emails to show a sample of who I have been dealing with

Thank you

Michelle Wolcott EIT Quality Control Engineer

ltimage001pnggt

2103 NE 129th Street Suite 201 Vancouver WA 98686 Office (360) 448-7999 Fax (360) 258-0274 wwwred-plainscom

From Michelle Wolcott Sent Monday July 10 2017 954 AMTo Harvey Schatzie ltHarveySwsdotwagovgtSubject RE WSDOT Indirect Cost Rate Process

Good Morning Schatzie

This is Michelle Wolcott from Red We spoke Friday June 30th about the ICRprocess and you were very encouraging I relayed the information to my boss who ishere in Vancouver then he shared with the president bookkeeper and our accountantin Oklahoma We had FAR compliance with Oklahoma DOT in 2015 so we are noteligible for the Safe Harbor Program Our account said our timekeeping system doesnot breakdown the hours and pay in the format WSDOT wants to have it presented andto get the documents in order would take the CPA and an assistant $9000 in paidhours of work It turns out this would have to be annually The other option is to hirean outside CPA firm to do the audit for us at $20000 annually

Our president said in the past we received funding assistance from the Stateof Oklahoma to get our ICR approval Does WSDOT offer any financial assistance for small businesses to reach compliance We are also a DBE in WA I have requested the same information from WA PTAC at theVancouver Chamber of Commerce and from WA Office of Minority and Women OwnedBusiness Enterprises and they both said there was nothing but suggested to askWSDOTThank you for your helpMichelle Wolcott EIT

Hello Michelle sorry but I am not aware of any grants But I was looking at this andthere is a POC at the bottom you may try to discuss the audit issuesHollyHolly BoehmeBusiness Opportunity Specialist | 8(a) Business Development ProgramUS Small Business Administration bull Seattle District Office

Hello Michelle -

Thank you for your email Im not aware of any funding available for thispurpose but do agree its quite a bit for a DBE firm to have as an expense Mostof the firms I work with do a lot more work on the Oregon side so perhaps thereare programs available that I just havent heard of Im copying my colleagueHoly Boehme in our Seattle District Office to see if they are aware of any suchassistance

Holly might there be some small business incubators or other resources availablein WA to help a small firm with the expense of getting a WSDOT AuditedIndirect Cost Rate approval Please reply all with anything you may have

Thank you

Yuri Yoshida Dyson Business Opportunity SpecialistUS SMALL BUSINESS ADMINISTRATION Portland District OfficePhone 503-326-6692 Fax 202-292-3872 wwwsbagovor

From Troy HalbergTo Bayne JackieSubject Re DBE Goal CommentsDate Wednesday December 13 2017 35533 PM

JackieToday was another example of why the goals should not be raised There were 2 jobs which Iwas low on and did not get due to the high goals This is exactly what will happen when thegoals get raised The first job was the 9180 Anacortes Ferry Paving Northeast Electric $244924 and UDBE $318000 Second job was the 9172 SR 9 East Junction Job Northeast Electric $68503 and UDBE $76300

Does this seem like a good way to spend the tax payer money I do not see how we are tosurvive if the goals get to 21

Thanks

Troy HalbergOffice360-225-7004Cell360-931-3990Fax360-225-7001

On Thu Nov 30 2017 at 1131 AM Bayne Jackie ltBayneJwsdotwagovgt wrote

Good Morning Troy

Thank you for taking the time to provide us with your experiences with the DBE Program TheWashington State Department of Transportation takes the public involvement process veryseriously and your comments will be taken into consideration prior to a final decision regardingthe overall DBE program goal

If I can be of further assistance please let me know

Best Regards

Jackie Bayne

Policy and Reporting Manager

WSDOT Office of Equal Opportunity

Work (360) 705-7084

Cell (360) 338-5783

BayneJwsdotwagov

From Troy Halberg [mailtotroyhnellcnet] Sent Wednesday November 29 2017 144 PMTo WSDOT Disparity Study ltDisparityStudyWSDOTWAGOVgtSubject DBE Goal Comments

If these goals are to be set that high this would make us as a non DBE small contractor at amajor disadvantage With these high of goals this is like handing all of the DBE electricalcontractors every job These general contractors will have no option but to use thembecause of the goals This should not go into effect We have been low on several jobs in thepast and have not gotten them do to the goals being 18 When this goes on it puts all therest of us contractors at a disadvantage Please consider the smaller non DBE contractorsthat are looking to survive as well

Thanks

Troy Halberg

Office360-225-7004

Cell360-931-3990

Fax360-225-7001

From Daniel Seydel IITo Bayne JackieCc Key Earl daneiwashingtonorg Nadeem Ismail Mussie Tewelde (mteweldehydro2geotechcom)

graceflyrightaolcom Mary Wenner Watkinson LarrySubject Re Seydel Dan - WSDOT Disparity Study Presentation Public TestimonyDate Friday December 8 2017 30323 PM

Jackie

It was my hope that the comments would be put into record I was also hoping that you wouldnot have to be the one having to formulate responses for each clarification If that is the caseI know you are swamped and will then I just ask my comments be only part of the recordHowever if there is dedicated staff that is going to be compiling and responding to theclarification then the below questions would be the priorities of most interest

These were questions unrelated to the disparity study and hopefully should be doable

1) Do you have any reports on your outcomes from the past 5 years on DBE support servicesand specific key performance measures from previous years funding (ie how many firmsutilized what was the objectives were objectives met did outcomes meet total satisfaction ifnot why next steps what was the firms capacity before and after services were performed (iesales employees bonding if applicable insurance equipment line of credit if applicablenumbertype of customers how are they doing now etc))

2) What other changes or improvements other than allowing DBES to select their own serviceproviders and a staff change will be a part of this new program

3) Was consideration to provide the new mentor protege consultant rather than separating theactivities into support services andor technical assistance

Disparity study clarifications

1) Will WSDOT consider sponsoring legislation to support the policy changes and goalincreases to insure manditory goals wont be necessary

a) If not what measures will you grant primes to operate outside the box (ie entertain bestvalue over low bid modify responsiveness by subs to require adherence to meeting voluntarygoals developing standards around federally funded gccm and other low bid procurementsthat give powers to primes to meet objectives including but not limited to mentor protegerelationships joint ventures bond waiving techniques cash flow assistance material andequipment acquisition manufacturer development specifications that have only DBES orinclude equal number of DBES as non DBES as approved installers etc)

2) Will the disparity study consultant be available for implementation or information gatheringfrom other regions

5) Will WSDOT be hiring more diverse staff amp professionaltechnical service providers inother departments outside OEO to insure policies commitments and evaluations areperformed in manner that improves diversity that reflects the communities WSDOT serves bythoughtful and legal efforts increase participation thus creating successful outcomes includingpartnerships and collaborations

Thank you and Merry Christmas

Hi Dan

Thank you for providing such thoughtful public comments questions and testimony

Regarding your public testimony below - I do not believe I am not able to answer questions ifthey are public comments Please let me know what part of this email you would likeclarification on and what part you would like considered public testimony

I appreciate your thoughtful consideration of WSDOTrsquos implementation of our civil rightsprograms

Best Regards

Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

DIDaniel Seydel IIFyi Daniel J Seydel II Platinum Group LLC 2064060844 f) 2062999934wwwplatinumbusinessgroupcom Small Business is the Answer FREE TRAINING FORENTREPRENEURS amp JOB SEEKERS - Polish your skills or make your firm standout thanksto the EntrepreneurialThu 233pDI

Daniel Seydel IIThu 1272017 1123 AMInbox Sent ItemsShow all 7 recipientsTobaynejwsdotwagov ltBayneJwsdotwagovgtJackie

Per your request below are my questions and comments some of which were verbally sharedyesterday

Congratulations on receiving the blessing of additional technical assistance dollars andcompleting the DBE Disparity Study per your report

1) Do you have any reports on your outcomes from the past 5 years on DBE support servicesand specific key performance measures from previous years funding (ie how many firmsutilized what was the objectives were objectives met did outcomes meet total satisfaction ifnot why next steps what was the firms capacity before and after services were performed (ie

sales employees bonding if applicable insurance equipment line of credit if applicablenumbertype of customers how are they doing now etc))

2) What other changes or improvements other than allowing DBES to select their own serviceproviders and a staff change will be a part of this new program

3) Was consideration to provide the new mentor protege consultant rather than separating theactivities into support services andor technical assistance

Disparity study clarifications andor comments

1) Will WSDOT consider sponsoring legislation to support the policy changes and goalincreases to insure manditory goals wont be necessary

a) If not what measures will you grant primes to operate outside the box (ie entertain bestvalue over low bid modify responsiveness by subs to require adherence to meeting voluntarygoals developing standards around federally funded gccm and other low bid procurementsthat give powers to primes to meet objectives including but not limited to mentor protegerelationships joint ventures bond waiving techniques cash flow assistance material andequipment acquisition manufacturer development specifications that have only DBES orinclude equal number of DBES as non DBES as approved installers etc)

2) Will the disparity study consultant be available for implementation or information gatheringfrom other regions

3) What lessons did WSDOT learn that it did not know from the other study(s)

4) What would WSDOT do different (ie scope time line process approach etc)

5) Will WSDOT be hiring more diverse staff amp professionaltechnical service providers inother departments outside OEO to insure policies commitments and evaluations areperformed in manner that improves diversity that reflects the communities WSDOT serves bythoughtful and legal efforts increase participation thus creating successful outcomes includingpartnerships and collaborations

Daniel J Seydel IIPlatinum Group LLC 2064060844f) 2062999934wwwplatinumbusinessgroupcom

Small Business is the Answer

FREE TRAINING FOR ENTREPRENEURS amp JOB SEEKERS - Polish your skills or makeyour firm standout thanks to the Entrepreneurial Institute of Washington

httpswwwyoutubecomchannelUCKL5YeVxL29HnNxqnb6hmXA

LIKE US on FaceBook if an Active Professional Development workshop provided by EIW

Construction University helps your firm or has benefited you

httpswwwfacebookcomEIWashingtonref=hl

From Bayne Jackie ltBayneJwsdotwagovgtSent Friday December 8 2017 10139 PMTo Daniel Seydel IICc Key Earl daneiwashingtonorg Nadeem Ismail Mussie Tewelde(mteweldehydro2geotechcom) graceflyrightaolcom Mary Wenner Watkinson LarrySubject RE Seydel Dan - WSDOT Disparity Study Presentation Public Testimony Hi Dan Thank you for providing such thoughtful public comments questions and testimony Regarding your public testimony below - I do not believe I am not able to answer questions if theyare public comments Please let me know what part of this email you would like clarification on andwhat part you would like considered public testimony I appreciate your thoughtful consideration of WSDOTrsquos implementation of our civil rights programs Best Regards Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov From Daniel Seydel II [mailtodanplatinumbusinessgroupcom] Sent Thursday December 7 2017 1123 AMTo Bayne Jackie ltBayneJwsdotwagovgtCc Key Earl ltKeyEwsdotwagovgt daneiwashingtonorg Nadeem Ismailltnipaintingearthlinknetgt Mussie Tewelde (mteweldehydro2geotechcom)ltmteweldehydro2geotechcomgt graceflyrightaolcom Mary Wennerltmwenn0108yahoocomgtSubject Seydel Dan - WSDOT Disparity Study Presentation Public Testimony Jackie

Per your request below are my questions and comments some of which were verbally sharedyesterday

Congratulations on receiving the blessing of additional technical assistance dollars andcompleting the DBE Disparity Study per your report

1) Do you have any reports on your outcomes from the past 5 years on DBE support servicesand specific key performance measures from previous years funding (ie how many firmsutilized what was the objectives were objectives met did outcomes meet total satisfaction ifnot why next steps what was the firms capacity before and after services were performed (iesales employees bonding if applicable insurance equipment line of credit if applicablenumbertype of customers how are they doing now etc))

2) What other changes or improvements other than allowing DBES to select their own serviceproviders and a staff change will be a part of this new program

3) Was consideration to provide the new mentor protege consultant rather than separating theactivities into support services andor technical assistance

Disparity study clarifications andor comments

1) Will WSDOT consider sponsoring legislation to support the policy changes and goalincreases to insure manditory goals wont be necessary

a) If not what measures will you grant primes to operate outside the box (ie entertain bestvalue over low bid modify responsiveness by subs to require adherence to meeting voluntarygoals developing standards around federally funded gccm and other low bid procurementsthat give powers to primes to meet objectives including but not limited to mentor protegerelationships joint ventures bond waiving techniques cash flow assistance material andequipment acquisition manufacturer development specifications that have only DBES orinclude equal number of DBES as non DBES as approved installers etc)

2) Will the disparity study consultant be available for implementation or information gatheringfrom other regions

3) What lessons did WSDOT learn that it did not know from the other study(s)

4) What would WSDOT do different (ie scope time line process approach etc)

5) Will WSDOT be hiring more diverse staff amp professionaltechnical service providers inother departments outside OEO to insure policies commitments and evaluations areperformed in manner that improves diversity that reflects the communities WSDOT serves bythoughtful and legal efforts increase participation thus creating successful outcomes includingpartnerships and collaborations

Thank you for your hard work

Daniel J Seydel IIPlatinum Group LLC2064060844f) 2062999934wwwplatinumbusinessgroupcom

Small Business is the Answer

FREE TRAINING FOR ENTREPRENEURS amp JOB SEEKERS - Polish your skills or makeyour firm standout thanks to the Entrepreneurial Institute of Washington

httpswwwyoutubecomchannelUCKL5YeVxL29HnNxqnb6hmXA

LIKE US on FaceBook if an Active Professional Development workshop provided by EIWConstruction University helps your firm or has benefited you

httpswwwfacebookcomEIWashingtonref=hl

From Erin EhlingerTo Bayne JackieSubject Support for WSDOTs proposed DBE goalDate Wednesday December 13 2017 115417 AM

I am writing to support the WSDOT recommended DBE Goal for FHWA contracts of 190 I also want to express my appreciation for the thoroughness of the WSDOT Disparity study and howthe study disclosed the disparity in WSDOT contracts that do not have a DBE or WBE goal ndash furtherreinforcing that all women-owned firms and minority owned firms face equity issues I remain concerned with the methodology required by the Code of Federal Regulations and case lawbecause of the dependence on the availability of firms in the calculation An unintendedconsequence of removing either gender or race from the goal is that many of these firms would goout of business the availability decreases and the formula then results in a smaller DBE goal Pleaselet me know how I can help influence a change to the CFR Thank you Erin Ehlinger

Erin Ehlinger PEPresident

24036 SE 47th StSammamish WA 98029erinehlingersmartcitytrafficcom425-221-0320

From Jackie EtterTo WSDOT Disparity StudySubject Why we need mandatory goalsDate Friday December 1 2017 61859 PM

As a DBE participating in bidding process I have found that regardless of the language which claims to insurethat disadvantaged business enterprises shall not be discriminated against the only way to ensure that this does nothappen is by mandating affirmative action goals Having been overlooked time and time again because of my gender when I have submitted bids that are verycompetitive with other bidders is very frustrating I have had many instances of companies using my price to getmy non DBE competitors to lower theirs The voluntary or laudatory DBE goals do nothing to ensure a level playing fieldThe only way to ensure non-discrimination is through mandatory goals

Jackie EtterWest Star Construction of Spokane

Sent from my iPhone

From Claudia HirscheyTo Key Earl Bayne JackieSubject WSDOT DBE Goal - Comment in supportDate Tuesday December 12 2017 61937 PM

Dear Earl and Jackie The WSDOT recommended DBE Goal for FHWA contracts of 190 is a small and important increasethat can further achieve equity in WSDOTFHWA contracting I am in support of the 19 DBE Goal I also want to express my appreciation for the thoroughness of the WSDOT Disparity study and howthe study disclosed the disparity in WSDOT contracts that do not have a DBE or WBE goal ndash furtherreinforcing that all women-owned firms and minority owned firms face equity issues I remain concerned with the methodology required by the Code of Federal Regulations and case lawbecause of the dependence on the availability of firms in the calculation An unintendedconsequence of removing either gender or race from the goal is that many of these firms would goout of business the availability decreases and the formula then results in a smaller DBE goal Sincerely Claudia S Hirschey PETransportation Consulting Servicesclaudiahirscheycomcastnethttphirscheytcscom2068564988 Mobile

From Nate ThomasTo WSDOT Disparity StudySubject WSDOT Proposes DBE goal of 19Date Thursday December 7 2017 42720 PM

The WSDOT should look into similar ways the Federal Gov has handled the equal opportunity forthose that fall under the DBE status and set aside specific projects for the DBErsquos and moreimportantly UDBErsquos so these companies have better chance of landing contracts Maybe a lot 10 ofthe DBE goal to set aside for only DBEs and other 9 goal met as it is done currently with COA onlarger contracts Nate ThomasSenior EstimatorD 5095688085 | C 5099941156331 North Fancher Road | Spokane WA | 99212

The information contained in this email including any attachments is confidential and may beprivileged It is intended only for the person or entity to which it is addressed and no waiver isintended by sending this email If the reader is not the intended recipient you are herebynotified that any review retransmission dissemination or other use of or taking any action inreliance upon this information is strictly prohibited If you have received this email in errorkindly notify the sender by reply email and delete the original message from any computerThank You

From Brian FujiiTo WSDOT Disparity StudySubject WSDOT propsed DBE GoalsDate Thursday December 7 2017 110638 AM

Good morning Jackie

I wanted to comment on WSDOTs proposed DBE goal to 19 I believe WSDOTs plan toincrease the overall DBE goal to 19 will provide greater opportunities for DBE contractorsin different disciplines to participate in federally funded contracts

Without the new DBE requirement and with Proposition 200 there are limited opportunitiesfor DBE contractors in disciplines different than the typical trucking flagging and rebar Inaddition there are no incentives for general contractors to go out beyond the usual truckingflagging and rebar DBE subcontractors

Increasing the DBE goals will provide opportunities for different DBE contractors in differentdisciplines to participate in WSDOT federally funded projects

Thank you for your time

RespectfullyBrian FujiiPresident Subsurface ConstructionP 2063836478F 2069604639MDBE 4M0024998

From Forman StephanieTo Bayne JackieCc Millar Roger christinenhanmailhousegov Claudia Hirschey Sarah Corbin Jiang Yingle

efaulknerenviroissuescom Diana Giraldo Kelly CheesemanSubject WTS - Disparity Study Comment LetterDate Friday December 15 2017 71020 PMAttachments 2017_Dec 15_WTSCommentLetter_WSDOT DBE Goalpdf

Dear Ms Bayne Please find our attached letter which summarizes the WTS Puget Sound Chapterrsquos support foradvancement of women in transportation and our comment letter regarding the recent DisparityStudy Please feel free to contact me if you have any questions or would like to discuss Sincerely Stephanie S Forman PEWTS Puget Sound President Transportation Project Manager

929 108th Avenue NE Suite 1300Bellevue WA 98004D 4254681548 M 2062291745stephanieformanhdrinccom

December 15 2017

Jackie Bayne Policy and Reporting Manager

Office of Equal Opportunity

Washington State Department of Transportation

PO Box 47314

Olympia WA 98504-7314

Dear Ms Bayne

On behalf of the Puget Sound Chapter of Womenrsquos Transportation Seminar (WTS) we would

like to thank the Washington State Department of Transportation for presenting to our

organization the DBE Disparity Study results We very much appreciated the presentation by Earl

Key Director of WSDOTrsquos Office of Equal Opportunity Teresa Berntsen (Director Office of Minority

and Womens Business Enterprises) as well as Leslie Jones (Director Sound Transit Office of Small

Business Development and Labor Compliance)

Following a review of the WSDOT Disparity Study and as a result of consultation with WTS

International we would like to provide WSDOT with our comments for your consideration

As you know WTS is an organization focused exclusively on attracting retaining and advancing

women in transportation By the year 2018 there will be thousands of vacancies in the

transportation industry for qualified professionals and while women account for more than half of

the worldrsquos workforce they are a very small minority in transportation disciplines

We are pleased that the outcome of the 2017 Disparity Study that recognizes the on-going barriers

for DBEs including women-owned businesses in transportation The WSDOT recommended DBE

Goal of 190 is a small and important increase that can further achieve equity in WSDOTFHWA

contracting We are also pleased that the 2017 Disparity Study has documented the disparity in

WSDOT contracts that do not have a DBE or WBE goal ndash further reinforcing that all women-owned

firms and minority owned firms face equity issues We are encouraged that the WSDOT has asked

FHWA to rescind the 2016 waiver

While WTSrsquo mission is specific to the advancement of women we are a race-neutral organization To

this end we are also deeply concerned about the underutilization of minority owned firms There is

no equity or ldquofair playing fieldrdquo without equity for all gender and races We remained concerned with

the methodology required by the Code of Federal Regulations and case law because of the

dependence on the availability of firms in the calculation An unintended consequence of removing

either gender or race from the goal is that many of these firms would go out of business the

availability decreases and the formula then results in a smaller DBE goal This consequence is

contrary to our mission

We look forward to our continued participation in WSDOTrsquos DBE advisory group we are anticipating

notice that the 2016 waiver has been rescinded and how we can work together to continue

advancing minority and women-owned firms in the transportation field

Sincerely

WTS Puget Sound Chapter

Stephanie Forman

President

C Roger Millar Secretary WSDOT

C Representative Adam Smith 9th Congressional District Washington co Christine Nhan

WTS Puget Sound Chapter

PO Box 3461

Bellevue Washington 98009

From Dave Gent - WAPATo Bayne JackieCc Tom GaetzSubject WAPA Public Comments - RE WSDOT FHWA Disadvantaged Business Enterprise Proposed GoalDate Friday December 15 2017 14119 PMAttachments 12152017 DBE Proposed Goal - WAPA Public Comments Letterpdf

Good afternoon Jackie Please find attached WAPArsquos ldquofor the public recordrdquo comments with respect to WSDOTrsquos proposedDBE Goals FHWA funded work I assume that the Master DBE Directory was not sent to you this week so as a result we were notable to review the directory before the close of the public comment period That fact is noted withinour comment letter Thank you for your efforts Have a good weekend

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Friday December 8 2017 1219 PMTo Dave Gent - WAPA ltdavegentasphaltwacomgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hello Dave WSDOT did not take possession of this directory as part of our review process We will provide youwith the records without submitting a formal request However we need to get them from theconsultant first I will hopefully have them to provide next week I will keep you updated on therequest Have a nice weekend Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal Opportunity

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

December 15 2017

Jackie Bayne Policy Manager WSDOT Office of Equal Opportunity Delivered via e-mail to BayneJwsdotwagov RE Public Comment (as requested) to Proposed Overall DBE Goal for the FHWA (2018 ndash 2020) Ms Bayne Thank you for your presentation via webinar on December 5 2017 outlining WSDOTrsquos evaluation process used to determine the proposed overall DBE goal for the FHWA Thank you also for the Colette Holt amp Associates (CHA) DBE Advisory Group presentation made on September 14 2017 Both presentations helped to distill the findings of the 2017 Disparity Study produced by CHA In response to Earl Keyrsquos initial informal request to comment on the proposed overall DBE goal made during the DBE Advisory Committee teleconference held on October 12th we provided a list of reasons that we believe justify a lower DBE goal than is now being proposed Our initial response to Mr Keyrsquos request did not serve to influence WSDOT and the current proposed goal remains at 190 The arguments provided on October 12th against the significant increase in the proposed DBE goal (versus the previous goal and recent historic DBE participation) are repeated and supplemented below and will serve as the Asphalt Pavement Associationrsquos (WAPArsquos) official public comments

In concert with WSDOT and the OWMBE WAPA and the construction firms that WAPA represents have demonstrated a commitment to the principals of equal opportunity for all ldquoready willing and ablerdquo firms for the entire history that our DBE program has been in place WAPA has continuously demonstrated its commitment to the goals of the DBE program and for increasing the representation of disadvantaged groups within our industry as both workers and owners of firms Please recognize that WAPArsquos oversight and critique of the DBE program has always attempted to balance the principals of fair and open competition with the practical aspects of the low bid compressed schedule high performance standards demanded within the WSDOT marketplace Our comments below are meant to enhance WSDOTrsquos and OWMBErsquos understanding of the market and to hopefully have WSDOT fully consider all of the dynamics that are at play when proposing its Triennial DBE goal for FHWA projects Current DBE Capacity vs Historically Robust Market In advocating for a realistic and defensible DBE goal it has always been WAPArsquos position that it is paramount that the realities of the marketplace and true certified DBE subcontracting capacity should be a primary standard While a ldquostretchrdquo goal may appear to be progressive on its face it comes with consequences for all of the parties involved in the WSDOT federal aid contracting arena To balance the dynamics of the WSDOT contracting system the DBE goal should be tempered with the realities of the market and with a true measure of the underlying effectiveness of the DBE support services available to contractors

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 2 of 6 The first point of fact that has not been given any apparent consideration by WSDOT in its evaluation of the current capacity of certified DBErsquos is that there is an historically robust workload scheduled to be performed in the 2017 through 2022 time-frame particularly in the Puget Sound ldquoEverett to Olympiardquo corridor By WSDOTrsquos own estimates (see Attachment A) public works construction project starts in the 2018 to 2022 time-frame in this region will exceed $333 billion (B) counting the work projected from just five public entities WSDOT will be taking a decidedly ldquoback seatrdquo role during this period to Sound Transit which will have construction project starts of $226B vs WSDOTrsquos projected volume of $67B WSDOTrsquos summary publication titled Washington State Department of Transportations Proposed Federal Highway Administration Triennium Disadvantaged Business Enterprise Goal Federal Fiscal Years 2018-2020 states correctly that ldquoIncluded among the types of evidence that must be considered are the current capacity of DBEs to perform work on WSDOTrsquos federally-assisted contracts as measured by the volume of work DBEs have performed in recent yearshelliprdquo (Step Two Adjustment discussion) With the Sound Transit program being over 300 larger than the total WSDOT program in this region a sober assessment of true certified DBE capacity in the next three years needs to be considered by WSDOT If the huge construction boom over the next five years does not prompt a Step Two Adjustment then it becomes obvious that the realities of the market are being ignored by WSDOT for DBE goal setting Put another way if the 2018 through 2022 level of contracting activity does not warrant a goal adjustment what will DBE Access Barriers Not Yet Addressed The CHA 2017 Disparity Study points out multiple recommendations in Section VII that impact DBE participation and access to the market Assessments relating to those impacts and the state of maturity in addressing the CHA recommendations should be considered when assessing the DBE goal Many of the CHA recommendation have not been adequately addressed at this point in time Some of the prime examples are listed below Increase Certification and Expertise ndash The Disparity Study as explained to us includes all minority- (MBE)

and women-owned (WBE) firms that could be readily identified that perform work within Washington State and that perform work within the NAICS code framework CHA developed to cover WSDOT project work During the various presentations relating to the Disparity Study WSDOT representatives said that outreach to currently non-certified MBE amp WBE firms has increased and that WSDOT aspires to bolster its list of certified firms in the future but this effort is just beginning and the success of the effort needs to be means tested against the broader population of MBE amp WBE firms included in the CHA base line evaluation As the Disparity Study uses a much broader population of MBE WBE contractors to arrive at its conclusions (both non-certified firms and firms too large for certification) it follows that the calculated DBE proposed goal is overstated to include capacity that does not currently exist within WSDOTrsquos certified DBE framework Unless OMWBE is experiencing sudden and unprecedented success in recruiting new MBEWBE firms the DBE goal should be adjusted downward to recognize that the ldquoready willing and ablerdquo contractors that WSDOT has certified is only a subset of the total MBEWBE contracting population used in the Disparity Study evaluation

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 3 of 6

Until the promised WSDOT outreach registration efforts result in a substantial increase in available certified DBE firms it is premature to count the entire population of minority- and women-owned contractors as available to participate in WSDOT contracting It is unreasonable for WSDOT to project availability capacity using the entire MBEWBE population when only its currently truncated list of certified firms is acceptable to count toward the DBE goal

A corollary to the Increase Certification and Expertise discussion above is that the calculation of the Base Figure evidently includes the broadest practical population of MBE and WBE firms identifiable (without a review of the CHA Master DBE Directory which has not been supplied prior to the close of the public comment period the scope of the directory cannot be ascertained) If this directory includes a large population of MBEWBE firms that are not certified or are too large to be certified then the Base Figure calculation should be adjusted to reflect that certified DBE firms are a fraction of the total MBEWBE firms used to arrive at the 19 suggested DBE goal With respect to the CHA Master Directory it is our understanding the WSDOT was not given the directory as part of its evaluation of the Disparity Study and it follows that it did not evaluate the proposed DBE goal in the context of the CHA Master DBE Directory In our opinion an informed decision on adjusting the CHA baseline goal calculation can only be done after an extensive evaluation of the CHA Master DBE Directory If this has not been done WSDOT has not exercised due diligence in evaluating the context and underpinnings of the CHA Disparity Study and a certified DBE Triennium goal proposal to the FHWA is premature Increase Contract ldquoUnbundlingrdquo ndash If this proposed strategy (suggested by the CHA Study) is undertaken

certified DBE Subcontractors currently available will be engaged as Prime Contractors and the value of their prime contracts will bolster the overall percentage of certified DBE contracting but a systematic effort and strategy to ldquounbundlerdquo has not been articulated by WSDOT The key question of how this effort can be accomplished without increased cost to the taxpayers and increased inconvenience for the traveling public As noted in the CHA study (page 129 final paragraph) ldquoUnbundling must be conducted however within the constraints of the need to ensure efficiency and limit cost to the taxpayersrdquo As of this writing no overarching strategy for further unbundling with proper accountability has been articulated by WSDOT to the DBE Advisory Group

Review Insurance and Experience Requirements ndash Impediments to certified DBE participation due to

necessary insurance and experience standards cannot be solved by the prime contracting community Unless and until WSDOT puts together programs to address the burden of the substantial risks shouldered by Prime Contractors on WSDOT contracts barriers for streamlined utilization of certified DBE firms will continue to exist These market driven barriers will continue to dampen the availability of certified DBE Subcontractors that are able to perform within WSDOTrsquos strict criteria without unduly transferring risk to the Prime Contractor

Better Partnering to Overcome DBE Failures to Perform ndash Prime Contractors are held fully responsible to maintain the project schedule and are subject to project liquidated damages even when they may be struggling to deal with Subcontractor performance issues It is well-established that replacing a certified ldquocondition of awardrdquo (COA) DBE Subcontractor is very onerous and likely very costly to the Prime Contractor Unfortunately the imposition of strict and often counter-productive commercially useful function (CUF) rules often compound this issue as Prime Contractors cannot help COA DBE Subcontractors work through capacity expertise or time-related issues that impact timely performance

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 4 of 6

WSDOT needs to be a much better partner in the process of dealing with under-performing or non-performing certified DBE Subcontractors The current standard operational procedure places all of the exposure for non-performance onto the Prime WSDOT does not have an equitable system to account for non-performing or under-performing certified DBE Subcontractors hired as a condition of award (COA)

Performance Information and Training ndash Commercially useful function rules (CUF) and the lack of clear benchmark definitions for good faith effort (GFE) standards remain barriers for improving accountability within the DBE system and in turn lead to distorted DBE participation rates These items remain amorphous due to lack of training or lack of historic information Chronic uncertainty exists regarding both of these items Until WSDOT changes and improves its approach to provide transparency and certainty for both the prime bidding amp subcontracting parties true certified DBE capacity will continue to be masked and the resultant higher subcontracting costs associated with a distorted marketplace will continue to be hidden

WAPA respectfully suggests that simply adding an ldquoEstimated DBE Subcontract Premiumrdquo line to the current DBE bid forms would help to establish benchmarks that could begin to be used to ldquomeans testrdquo good faith efforts If this information had been gathered over the last 20 years of the DBE program meaningful GFE standards could have been developed and could be in place today

An in-depth review of CUF standards would also provide clarity For instance it is unclear why force account items performed by certified DBEs are currently counted at only 50 of the value of the work How was this benchmark established Has it been reviewed since imposed Did it ldquosolverdquo whatever inequity WSDOT was trying to address Better clarity may lead to more expanded opportunities for certified DBE Subcontractors

Enhanced Supportive Services and Business Development Programs ndash Unless and until stronger programs of these types are shown to be effective in boosting certified DBE business development increased DBE participation due to stronger business acumen should not be relied upon when setting the new DBE goal

Does OMWBE have a reasonable expectation that future plans for enhanced and expanded programs will be more successful than those employed in the past Assuming that certified DBE Subcontractors will be better prepared to deal with the WSDOT contracting environment than in the past should not be relied upon to boost DBE participation goals Especially troubling were the multiple references within the CHA report highlighting that DBEs believe that the staff at OMWBE lack a deep knowledge about the highway construction industry (eg Study page 129 2nd paragraph) Does OMWBE have a path forward that will address this issue and thus improve supportive services impacts

Develop a Bonding and Financing Program for SBEs ndash This is completely outside of the prime contracting

communityrsquos scope of influence WSDOT must find a way to institute changes that both protect the taxpayer and help increase certified DBE bonding capacity and access to financing ndash very large hurtles To assume that these hurtles can effectively be overcome within the 2018 ndash 2020 time frame when they have been chromic issues for the past 20 plus years of DBE program development is not rational

A helpful innovation would be for WSDOT to underwrite performance and payment bonds for certified DBE firms or to create promote a system that helps certified DBE firms obtain private bonding Bridging the gap to address capital access and performance risks (bonding) must be championed by WSDOT

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 5 of 6

Base Figure Adjustment to Address Available Subcontract Volume and DBE Prime Contracts It is a fact that mid- to large-sized MBEWBE firms that compete both as Prime Contractors and as Subcontractors are not eligible to be OMWBE certified DBEs Further the current amount of contract unbundling for greater DBE access to WSDOT prime contracting (see below) accounts for a very low dollar volume of prime contracts performed by certified DBEs Finally by specification (WSDOT standard specification 1-081) Prime Contractors are obligated to perform 30 of the total volume of the work (less specialty work) or stated another way a maximum of 70 of the dollar volume on WSDOT projects is typically available to award to subcontractors These market dynamics are NOT addressed in the Disparity Study A responsible DBE goal made absent of these facts should not be implemented A reasonable adjustment to the proposed 19 DBE goal is presented below

bull The percent of WSDOT prime contracts awarded to certified DBE firms is likely less than 5 by total WSDOT

contract volume Assuming this approximation is valid (likely very conservative) then the amount of WSDOT contract work available to certified DBE firms via subcontracting should be adjusted to account for the factors outlined above The Base Figure (19) should be adjusted to recognize that a 70 maximum subcontractor participation is available (in the numerator) and to account for the assumed 5 certified DBE prime contracts in the denominator Reasonable Base Figure Adjustment 19 (proposed) x 70 subcontracts available divide 95 of Non-Certified DBEs as Prime Contract Volume = 190 x 0737 = 140 adjusted goal This is an adjustment based on the practical dynamics of the WSDOT contracting system and it represents a more realistic look at the true subcontract volume that is available for Prime Contractors to award to certified DBE firms

Conclusions

Until the items listed above are addressed and in place it is not reasonable to believe that DBE goals can be increased by nearly 163 (from 117 to 190) When the projected robust public works contracting market is appropriately considered the true availability of certified DBE Subcontractors for WSDOT contracts will be truncated due to demand across all public works sectors With multiple strong public works programs competing for a limited population of certified DBEs the ability to meet increased WSDOT DBE goals will be severely challenged Without very clear concise and transparent good faith effort rules the ability to address DBE goals that greatly overestimate true near term certified DBE capacity will result in non-attainment bid day chaos failures to perform andor rapidly increased pricing

The clear conclusion is that at this point in time under the current circumstances without effectively instituted new programs rules procedures that could enhance the certified DBE programrsquos overall effectiveness we believe that the DBE goal should remain at or near 12 As OMWBE documents and demonstrates its future successes in improving access and eliminating capacity barriers only then should the DBE goal be re-evaluated and increased

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 6 of 6

In closing please remember that it is rare that the contracting community is asked our opinion with respect to the WSDOTrsquos DBE policies and so this letter is somewhat a vehicle to highlight collective concerns It is our belief that the majority of the Prime Contractors in Washington state support the objective of creating a level playing field for ready willing and able DBEs

If the level playing field is not yet possible in the absence of the DBE program then the key is to set realistic goals that recognize reflect and address the hard realities and market dynamics imposed by WSDOTrsquos bedrock environment of awarding contracts to the lowest cost responsible and responsive Contractor

Respectfully submitted Washington Asphalt Pavement Association

David Gent Tom Gaetz Executive Director Senior Advisor

Attachment A ndash WSDOT Central Puget Sound Public Works Contracting Projection 2018 - 2022

Con

stru

ctio

n Pr

ojec

t Sta

rts

2018

-202

2S

ound

Tra

nsit

$22

6 B

SD

OT

$08

B

Tran

sit

amp O

ther

s$1

7 B

WS

DO

T$6

7 B

Por

t of

Sea

ttle

$15

B

TOTA

L$3

33

B

Source N

ov 1

9 2

017

pres

enta

tion

to W

APA

Ann

ual M

eetin

g

Attachment A

Work (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Dave Gent - WAPA [mailtodavegentasphaltwacom] Sent Thursday December 7 2017 144 PMTo Bayne Jackie ltBayneJwsdotwagovgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hi again Jackie Irsquom fine thanks and hope you are the same Interesting The Master DBE Directory is the basis for and integral to the conclusions of the DisparityStudy Is it not then part of the information needed to fully review and comment on the DisparityStudy Was it not provided by CHA to WSDOT for review We are trying to fully understand thestudy and if this directory was part of the study why would it need to be obtained by a publicrecords disclosure It should be in the public domain and not restricted from ease of access If you are sure that a public records request is needed Irsquoll start that process but we will need tonote that point of fact when we submit our public comments If you are able to reconsider please let me know Respectfully

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Thursday December 7 2017 126 PMTo Dave Gent - WAPA ltdavegentasphaltwacomgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hello Dave I hope you are doing well

That information would likely be obtained through a public disclosure request Best Regards Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Dave Gent - WAPA [mailtodavegentasphaltwacom] Sent Thursday December 7 2017 113 PMTo Bayne Jackie ltBayneJwsdotwagovgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Jackie Can you please provide an electronic file or provide a weblink for the Master DBE Directory thatColette Holt amp Associates developed for the WSDOT Disparity Study 2017 (first referred to on Page 8of the Disparity Study) I did not see a link to this Master DBE Directory within the study Thanks

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Friday October 27 2017 1118 AMTo Kenyon Wendy ltKenyonWwsdotwagovgt Adams E W ltewadamssystemsclcomgtAdekoyaAndrew ltandrewadekoyabccomgt AlyssaBalllegwagov Anindita Mitraltamitracrea-affiliatescomgt APRISeattlehotmailcom Armstrong CharlotteltCharlieAatgwagovgt Ato Apiafi Architects PLLC ltatoaatoapiaficomgt benzfanwaorgBerntsen Teresa (OMWBE) ltTeresaBomwbewagovgt Billingsley Andrealtbillinawsdotwagovgt Bramlet Erica ltEricaBramletlegwagovgt Brooks Julius

ltBrooksJwsdotwagovgt Brown Jason ltjbrownldccorpcomgt bwallacenwlaborersorgCamden Allison ltCamdenAwsdotwagovgt carlllivingstongmailcom Cerda OscarltCerdaOwsdotwagovgt Christopher Chris ltChristCwsdotwagovgt ckerneycaawagovdanplatinumbusinessgroupcom davegentasphaltwacom David BalltDavidsignsnowmillcreekcomgt Davis Khalia ltDavisKhwsdotwagovgt Davis RaShelle (GOVltrashelledavisgovwagovgt Dayton Jo ltDaytonJwsdotwagovgt ddhondtagcwacomDebbieDriverlegwagov Dennis ltdennisahlkiewitcomgt dmcleodnwlaborersorgdrart6651gmailcom Duncan Enid lthigradeincgmailcomgt EltonltEltonwashingtonstatetruckingcomgt eprincecaawagov flemosldccorpcomfmartineznwmtnmsdcorg geoffshookatkncom glovelady ltgloveladyexcelglovescomgtGrabow Katie ltkgrabowsystemsclcomgt Guilfucci Jackie ltJackieGuilfucciskanskacomgt HealyLinda ltHealyLwsdotwagovgt Higginbotham Breanne ltHigginBwsdotwagovgt HirscheyClaudia ltclaudiahirscheycomcastnetgt Holt Colette ltcoletteholtmwbelawcomgt Huff JohnltHuffJwsdotwagovgt Iniguezchawagov JacksonMaynardlegwagov Jimmy Matta(jmattaalcantarassoccom) ltjmattaalcantarassoccomgt kellywickergovwagov Key EarlltKeyEwsdotwagovgt Kirk Jon ltjkirkwhhnfscomgt Kris Purrier ltkpurrierhwageocomgtleewabuildingtradesorg lesliejonessoundtransitorg Liz Evans ltlevansagcwacomgt LopezErin lterinlopezdeswagovgt Martha Cerna ltMarthaPSLCCORGgt Martin-Arnold EdwinaltMartinEwsdotwagovgt Mary Lerdahl ltmarydbeelectricinccomgt McCarty Hannahlthannahmccartylegwagovgt Melissa L Boyles ltmelissaboylesmwbelawcomgt Metcalf KeithltMetcalKwsdotwagovgt michaelicapaawagov Michelle ltMichelleTTCC26netgt MillarRoger ltMillarRwsdotwagovgt Nakamura Jason ltjasonnakamura1-alliancecomgtNavarroLportseattleorg olliepmt-solutionscom pastorbanksesbctacomacom PatrickHughes ltphugheshughesgroupbizgt Petersen Jodi (FHWA) ltJodiPetersendotgovgtrabbottliunaorg rcarmsteadgmailcom ricemportseattleorg Riley D ltdrileylydigcomgtSeling ltSelingjpfranciscomgt sherryharrisergosynchcom Stell MellodyltStellMwsdotwagovgt terigobintulaliptribes-nsngov timwilliamfactorycom tinaterra-tdicom tkellyldccorpcom tomgaetzmsncom vcollinsacec-waorgverlenejazzmsncom Wang Albert ltWangAatgwagovgt Waugh GregltGregWMaxKuneyComgt Yates Henry ltYatesHWSDOTWAGOVgtCc Tom Gaetz lttomgaetzmsncomgt Dave Gent - WAPA ltdavegentasphaltwacomgt VanCollins ltvcollinsacec-waorggt Daniel Seydel II ltdanplatinumbusinessgroupcomgt MaynardJackson ltJacksonMaynardlegwagovgt Carl Livingston ltcarlllivingstongmailcomgt DonMcLeod ltdmcleodnwlaborersorggt JIMMY MATTA ltjimmymattamsncomgt Prince Ed(CAAA) lteprincecaawagovgt David DHondt ltddhondtagcwacomgt Irene Reyesltgloveladyexcelsupplycompanycomgt McDaniel Craig ltMcDaniCwsdotwagovgtsherryharrisergosynchcomSubject WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Good morning On Monday October 30th WSDOT will be releasing the proposed overall Federal HighwayAdministration Disadvantaged Business Enterprise goal attached for public comment throughDecember 15 2017 This overall DBE goal is based upon the recently completely DBE ProgramDisparity Study WSDOT is proposing a 19 percent overall DBE participation goal on Federal Highway

Administration-funded projects for federal fiscal years 2018 through 2020 DBE goals fortransportation projects that receive federal funds represent a percentage of the value of work inwhich minority- and women-owned businesses should participate Once finalized and submitted toFHWA early next year the goal will be effective through Sept 30 2020

The purpose of the DBE program is to create a level playing field for firms owned and operated bydisadvantaged individuals wanting to participate in federally assisted highway transit and aviationprograms The attached overall DBE goal is for FHWA funded projects WSDOT will be updating theFTA and FAA overall DBE goals in the near future

If you have any questions please contact Earl Key Director of the Office of Equal Opportunity at3607057091 or KeyEwsdotwagov Thank you Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

  • Proof-Of-Publicationpdf
    • Mediapdf
      • AGC
      • Daily Journal
      • Daily Medium
      • DBEGood
      • OMWBE
      • Seattle Medium
      • Tabor 100
      • The Chronicle
      • Tukwila
        • King County
          • Public-Comments-20180111pdf
            • 19 DBE Requirement(1)
            • AGC Comments on Proposed 10 Goad
            • Backstrom Curb amp Sidewalk
            • comments on WSDOT proposed DBE goal
            • Cowlitz County Public Works
            • DBE Contracting goals
            • DBE Goal
            • DBE Program Disparity Study
            • Disparity Study Comments from City of Spokane
            • FW_ WSDOT News - WSDOT seeks comments on propos
            • Proposed DBE Goals
            • RE_ DBE Contracting Goal Comments
            • Re_ DBE Goal Comments
            • Re_ Seydel Dan - WSDOT Disparity Study Present
            • Support for WSDOTs proposed DBE goal
            • Why we need mandatory goals
            • WSDOT DBE Goal - Comment in support
            • WSDOT Proposes DBE goal of 19
            • WSDOT propsed DBE Goals
            • WTS - Disparity Study Comment Letter

Written comments can also be submitted by mail or email to Jackie Bayne policy and reporting manager for the department of transportation at Washington State Department of Transportation Office of Equal Opportunity PO Box 47314 Olympia 98504 or by email at disparitystudywsdotwagov Comments will be considered through Dec 17 2017

More information about the goal is available at all regional offices or at the main office in Olympia located at the Transportation Building 310 Maple Park Ave SE Olympia More information can also be found online at wsdotwagovequalopportunity

Page 2 of 2WSDOT Seeks Public Comment on Disadvantaged Business Enterprise | News | chronlin

1112018httpwwwchronlinecomnewswsdot-seeks-public-comment-on-disadvantaged-business-

larr Halfway there SR 8 fish barrier removal reaches milestone New SR 26 traffic cameras available rarr

WSDOT seeks comments on proposed DBE contracting goal for highway projects

December 1 2017 | No Comments

WSDOT is seeking comments on proposed participation goals for Disadvantaged Business Enterprises on upcoming Federal Highway Administration contracts a Yakima meeting has also been added to the schedule Source WSDOT Permalink WSDOT seeks comments on proposed DBE contracting goal for highway projects

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Page 1 of 3WSDOT seeks comments on proposed DBE contracting goal for highway projects | Tukw

1112018httptukwilatowingcom20171201wsdot-seeks-comments-on-proposed-dbe-contracting

From Liz EvansTo Bayne JackieSubject AGC Comments on Proposed 10 GoadDate Tuesday December 12 2017 50314 PMAttachments WSDOT Proposed Goal - AGC Comments FINALdocx

Hi there Jackie Attached are AGCrsquos comments on WSDOTs proposed 19 goal We will also be mailing you a copy Thanks for the opportunity to comment and we hope you find it helpful Regards Liz Liz Evans CAE Northern District ManagerAGC OF WASHINGTONTel 3602238757 | wwwagcwacom JOIN US for the 2018 AGC of Washington Annual Convention amp Technology Expo Jan 26

CUsersmwillmsPicturesInland AGCLogo_RGB_Half_5in

December 12 2017

Page 5

December 12 2017

VIA EMAIL amp US MAIL

Ms Jackie Bayne Policy amp Reporting Manager

Washington State Dept of Transportation

210 Maple Park Ave SE

PO Box 47314

Olympia WA 98504

RE WSDOT Proposed FHWA Triennium Disadvantaged Business Enterprise Goal

Dear Ms Bayne

This letter summarizes the views of the Associated General Contractors of Washington and Inland Northwest Associated General Contractorsrsquo (hereafter referred to collectively as AGC) regarding the Washington State Department of Transportationrsquos (WSDOT) recently proposed FHWA Triennium Disadvantaged Business Enterprise (DBE) Goal (the ldquoProposed Goalrdquo) AGC shares WSDOTrsquos commitment to continue the promotion of DBE firms but AGC is concerned the Proposed Goal which is a significant increase from the previous goal and actual utilization may have unintended consequences and could impose significant burdens on both prime contractors and DBE contractors alike AGC requests WSDOT reconsider its Proposed Goal and adjust the Proposed Goal to account for inevitable availability and capability issues including the lack of a formal retraction of the non-minority woman owned business waiver that makes up over half of the Proposed Goal Implementing an unachievable goal will only be to the detriment of the DBE program

1 AGCrsquos Membersrsquo Interest in WSDOTrsquos Proposed Goal

Together AGC of Washington and Inland Northwest AGC represent and serve the commercial industrial and highway construction industry These professional associations of commercial contractors are comprised of more than 900 members who have joined together to enhance the performance of their industry and build a better climate for construction operators many of which are small and closely held businesses

Like WSDOT AGC is firmly committed to the principals of equal opportunity and promoting efforts to ensure minority women and veteran owned businesses are properly represented In both its political advocacy and membership programs AGC has demonstrated its commitment to increasing the representation of disadvantaged groups in the construction industry as both workers and owners of firms For AGC this is both an issue of principles and a practical one The construction industry as a whole is facing a critical shortage of workers and it is imperative that the industry attract new participants Among AGCrsquos activities demonstrating this commitment are the following

middot AGC has an ongoing ldquoContractor Exchangerdquo program through which small minority- and women-owned subcontractors are offered one-on-one networking opportunities with established general contractors

middot The AGC Education Foundation provides financial support to construction-related programs in K-12 schools and conducts outreach specifically targeted at low income disadvantaged and female students

middot More than 2500 students most from inner-city schools participate in annual AGC-sponsored Construction Career Days in King Pierce and Spokane Counties

middot AGC supports the Pre-Apprenticeship Construction Training (PACT) program at Seattle Vocational Institute This program is focused on preparing underrepresented communities to be highly qualified applicants and successful apprentices in the construction trades

middot AGC is a sponsor of the Turner School a training course for minority- and women-business owners in the construction industry

middot AGC supports the National Association of Women in Construction (NAWIC) which provides professional development and other services to its members

middot AGC routinely supports legislative efforts aimed at supporting small businesses and encouraging small business participation

middot AGC recently formed a Diversity and Inclusion Committee comprised of both prime and DBE participants The purposed of the committee is to expand opportunities for DBE members and to help AGC consider diversity in decision-making Recently AGC approved a deeply discounted introductory dues structure for certified DBE members

middot AGC is a WSDOT partner on the new mentorproteacutegeacute program

AGCrsquos experience has been that the most effective approach is to help make emerging businesses successful through outreach training and public policies that will grow their capacitymdashnot by imposing mandates without clear evidence as to the mandates feasibility

2 WSDOTrsquos Proposed Goalrsquos Impacts To The Construction Industry

WSDOTrsquos Proposed Goal is 190 The Proposed Goal is based upon the recent Collete Holt amp Associates (CHA) Disparity Study released in 2017 With respect to availability the Disparity Study reports the following weighted availability for FHWA-Funded projects

Thus the 190 goal factors in Black Hispanic Asian Native American and White Women into its availability As indicated however this 19 goal raises a number of concerns

a WSDOTrsquos 19 Proposed Goal Represents a Significant Increase Without Concrete Evidence of Available And Capable DBE Firms

First WSDOTrsquos Proposal Goal of 190 represents a significant increase as compared to actual DBE participation (141 in 2014 117 in 2015 and 151 in 2016) as well as the last FHWA proposed goal of 116 for 2014-2018 See WSDOTrsquos Proposed Goal and Interim FHWA Overall DBE Goal Methodology FFY 2014-2018 The Proposed Goal is 74 more than the last goal which represents a 638 increase and a 52 increase over the average actual utilization for 2014-2016 While Contractors were exceeding the previous 116 goal this is primarily based on the fact that WSDOT previously requested a waiver to consider non-women-owned businesses and the waiver was not granted and effective until June 2017 (meaning that for 2014-2016 women were counted towards race-conscious goals and inevitably a higher overall percentage of DBE firms were utilized)

Contractors struggle to meet present DBE goals due to the relatively low availability of experienced and certified DBE firms By increasing the goal WSDOT is understandably trying to increase the participation of underrepresented firms Drastically increasing the goals (by over 5 of actual utilization) without concrete evidence that there is sufficient availability andor capability of such firms however will have the opposite effect Notably this lack of availability and capacity of DBE firms was discussed in detail in the Disparity Study For example the CHA Disparity Study notes a number of concerns of DBE firms while technically ldquoavailablerdquo with respect to the goal percentages are unable to meet the requirements necessary to fulfill the contract including purchasing the equipment necessary having available labor and ability to meet insurance and financing requirements Thus while there may be ldquoavailablerdquo firms there is not clear evidence (and if fact evidence to the contrary) that those available firms are capable and available to perform the majority of the FHWA-Funded contracts let by WSDOT

An additional example affecting DBE capability and availability that is not factored into the CHA Disparity Study or WSDOTrsquos Proposed GOAL is DBE ability to enter into Project Labor Agreements (ldquoPLAsrdquo) WSDOT has indicated their interest in pursuing a PLA AGC Members have raised concerns based on repeated experiences that many DBE firms due to the administrative and cost impacts refuse to enter into PLAs precluding those firms from performing certain work or increasing costs Again this lack of ability (or refusal) to perform should also be factored into WSDOTrsquos Proposed Goal which is not currently the case

b The Proposed Goal Does Not Account For The Current Non-Minority Woman Owned Business Waiver Still In Place

Second despite the significant increase WSDOT does not account for the current waiver of non-minority women owned businesses that remains in place As noted in WSDOTrsquos proposal comments WSDOT previously sought and received a waiver of the regulation that White females as a group are presumptively disadvantaged This waiver was heavily criticized by many including AGC and the results of the most recent CHA Disparity Study confirmed that White females are presumptively disadvantaged and do not enjoy a level playing field for USDOT-assisted contracts Therefore the CHA Disparity Study recommends that this group be returned to the status of goal credit eligibility WSDOT has sought a recession of the waiver but has not yet to our knowledge received a rescission of the waiver Nevertheless the 19 Proposed Goal still includes White women In fact of the 19 availability percentage White women represent 103 (over half) Accordingly for WSDOT to proceed with the 19 goal WSDOT must receive the rescission of the waiver for this goal to be even remotely possible to achieve If the rescission is not received the Proposed Goal must be adjusted

C The Proposed Goal Does Not Account For Availability Differences Across The State

Third the Proposed Goal does not account for availability difference across the state Eastern Washington contractors with an even scarcer pool of available and qualified DBE firms in the area as is the case now will be forced to subcontract to Western Washington firms paying transportation and per diem premiums for such work The CHA Disparity Study again provides numerous excerpts of anecdotal evidence demonstrating that the goals in Eastern Washington are too high A few of the contractor comments on the topic are as follows

When you apply those same goals to a different geographic region a different project site for a large firm to meet those goals is difficult because theres not necessarily the expertise in parts of the project that were submitting on

Theres very few DBEs over here [in Eastern Washington] Next year theres going to be even more work over here What are we going to do with all these goals We always meet the goals like I said youve got three four DBEs over here to do all the work and then they cant perform

There are just no [minority-owned] DBEs available in eastern Washington

See CHA Disparity Study at p 54 Again these are factors that should be taken into account in developing the Proposed Goal or at the very least its application WSDOTrsquos Proposed Goal however is silent as to this significant issue

When the lack of available firms with the capacity to perform significant DBE projects is coupled with the increased goals the price of WSDOT contracts will inevitably increase to the significant detriment of Washington taxpayers and the public entities Inevitably with a lack of available qualified firms the lack of competition will become evident and small qualifying contractorsrsquo prices will increase due to supply and demand principles as they become selected for projects and less able to take on additional work These increased DBE contract values will be passed on to the public agency and taxpayers which translates into fewer dollars available for the sorely needed and promised infrastructure upgrades In addition the instance of bid protests will inevitably increase potentially delaying projects and further diverting agency resources from badly needed infrastructure upgrades to resolving unnecessary disputes or rebidding the projects altogether

Finally faced with such drastic and potentially impossible requirements if adjustments are not made contractors may focus more on demonstrating good faith efforts Both a contractor who meets the required goal and a contractor that demonstrates good faith efforts are eligible for award It is likely that the contractor relying upon good faith effortsmdashwho will have a lower price than the other contractor who sacrificed price to actually meet the goalmdashwill be selected by the public agency This outcome will erode the total percentage participation of eligible firms and would clearly be inapposite of WSDOTrsquos intentions

3 Conclusion and Request

AGCrsquos members have asserted these and multiple other concerns Implementing an increased goal across the state and all contracts without clear evidence of available DBEs capable of performing the work and meeting the project requirements will have significant and far-reaching impacts on the construction industry many of which work against the aim of the Proposed Goal itself AGC requests WSDOT reconsider its Proposed Goal of 19 and make adjustments to account for the capability of DBE firms the lack of a rescission of the non-minority waiver and the lack of available DBE firms in parts of the state This Proposed Goal and its impacts on the construction industry will be irrevocable and will be to the detriment of taxpayers It is prudent to address these adjustments before implementing the Proposed Goal

Very truly yours

David DrsquoHondtCheryl Stewart Executive Vice President AGC of WashingtonExecutive Director Inland Northwest AGC

AGC of Washington bull 410 11th Avenue SE 203 Olympia WA 98501

Inland Northwest AGC bull 4935 E Trent Avenue Spokane WA 99212

image3jpeg

image1png

image2emf

image4png

image5jpeg

From Steve SmithTo WSDOT Disparity StudyCc Bayne JackieSubject 19 DBE RequirementDate Thursday December 14 2017 31947 PMAttachments DBE List and NAICS Listingpdf

Disparity Committee I recently read in The Daily Journal of Commerce that WSDOT plans to adopt a 19 DBEstandard for all FHWA funded projects early next year Our company S amp K Painting Inc is abridge painting company which is based in and works exclusively in Oregon and Washington Ihave been the owner of this firm since 1978 when it was first established My concerns aboutthe proposed 19 DBE requirement is as follows 1 There are very few opportunities for subcontract work on bridge repaint jobs These jobsare usually limited to cleaning and painting the bridge The only other facet of the project istraffic control which is almost always 3 or less of the project total cost The traffic controldoes provide a very good subcontracting opportunity 2 The NAISC code of 238320 includes bridge painting but also includes house painting wallcovering rust proofing etc which have almost no similarities to bridge painting When thiscode is used to determine the number of available firms (DBE or otherwise) that are availablefor bridge painting project this badly skews the numbers I would suggest that bridge paintingcontractors make up less than 5 of all firms in NAISC code 238320 3 If future WSDOT bridge painting projects require a 19 DBE participation A The qualified pool of DBE subcontractors available to submit pricing on any facetother than traffic control will be very limited I reviewed a list of 19 certified DBE firms listedunder painting at the WSDOT website and only recognized one firm from past projects B The number of prime bidders and competition will fall The state will incur highercosts due to this fact C Prime bidders will be forced to subcontract unqualified contractors just to be eligiblefor contract awards This will likely reduce the quality of the finished project Thank you for considering my concerns I may not have verbalized my thoughts as well as Iwould have liked but I have been in this business for almost 40 years and truly believe what Ihave said Sincerely

Steve Smith President

SampK Painting incP O BOx 390clacKamaS OregOn 97015Phone (503) 557-5544Fax (503) 557-5566Cell (503) 260-5280Steveskpaintingcom

From Lei WuTo Bayne JackieSubject comments on WSDOT proposed DBE goalDate Thursday December 14 2017 94925 PM

To Whom It May Concern

Below is my comments

The WSDOT recommended DBE Goal for FHWA contracts of 190 is a small andimportant increase that can further achieve equity in WSDOTFHWA contracting I am insupport of the 19 DBE Goal

I also want to express my appreciation for the thoroughness of the WSDOT Disparity studyand how the study disclosed the disparity in WSDOT contracts that do not have a DBE orWBE goal ndash further reinforcing that all women-owned firms and minority owned firms faceequity issues

I remain concerned with the methodology required by the Code of Federal Regulations andcase law because of the dependence on the availability of firms in the calculation Anunintended consequence of removing either gender or race from the goal is that many of thesefirms would go out of business the availability decreases and the formula then results in asmaller DBE goal

Thanks

Lei

Lei Wu PE AICP

Principal CSL Consulting

LeiWucsl-consultingnet

(425)562-6275

From Stephanie SimpkinsTo WSDOT Disparity StudySubject DBE Contracting goalsDate Wednesday November 29 2017 20259 PM

My name is Stephanie Simpkins and I own North Star Enterprises It is a large womanowned traffic control company located in Spokane Washington My mother founded thecompany in 1984 and I have worked in this family owned business most of my life Ipurchased the business from her in 2013 and have been sole owner since then My company thrived under the Disadvantaged Business Enterprise (DBE) Programimplemented by Washington Department of Transportation and administrated by United StatesDepartment of Transportation What started as a small business with one truck and a fewemployees has grown over the years to be one of the largest traffic control companies in thestate and employee countless people every construction season It has not been an easy roadover the years being a woman in the construction industry never is and it is hard to say wherewe would be now if it werenrsquot for the assistance of the DBE program As you know in June of 2017 majority women were removed from the DBE program basedon a disparity study conducted in 2012 On March 2014 Washington Department ofTransportation requested a wavier to remove majority women from the DBE program Thishas had an immediate and drastic impact on my business and all who work for me From themoment the waiver was approved and my company could no longer be used as a condition ofaward at bid time I began losing work Most recently the 2018 North Central Region ChipSeal which we have worked on for the last 10 years This contract provides work forapproximately 40 employees for the entire construction season I have already been told byseveral contractors that with such a high UDBE goal they wont even be able to consider mefor this project This loss along with several other smaller contracts to date are painting avery dismal future for my business With all of this turmoil surrounding the future of my business I find it frustrating to say theleast that WSDOT has chopped me off at the legs by not allowing my firm to count for theCOA but can use the little participation I may still contribute to help them reach their overallstate goal How is this fair If the contractors canrsquot utilize my business than neither shouldWSDOT As far as setting future state DBE contracting goals it looks as if the bar will beraised once again all while excluding the largest subset of useable DBErdquoS To me raising theoverall state goal at this time (which is already challenging to meet) with women DBErsquosexcluded from the program seems horribly ill timed

From Karen R BannishTo Bayne JackieSubject DBE GoalDate Tuesday December 5 2017 32549 PM

Hello Jackie ndash thank you for the webinar today concerning the proposed Overall DisadvantagedBusiness Enterprise Goal for the Federal Highway Administration I understanding the DisparityStudy much better now and checked the document you mentioned on the WSDOT website Pacific County is located in the Southwest corner of the State of Washington The tip of the LongBeach Peninsula would be 2 frac12 hours from Interstate 5 Our federal work primarily includes strictlyoverlay projects with 12 or fewer items of work included in the contract When bidding a project(our contracts are usually less than $500000) we sometimes received a single bid from the process Due to our proximity and the small cost for the work it is difficult to entice DBE participation Thereare simply no items of work that can be performed Having a mandatory DBE goal placed upon theproject in a rural area simply to meet the disparity guidelines will only increase the cost of theproject We feel the goals should be set in balance with the cost of the project and the items of work and notsimply directed to meet the overall goal

Karen BannishSenior Engineering TechnicianPacific County Department of Public Works211 North Commercial StreetRaymond WA 98577(360) 875-9368

From Dawn EgbertTo Bayne JackieSubject DBE Program Disparity StudyDate Tuesday December 5 2017 23825 PM

Hi JackieThank you for the great information on the call today You talked about the small works rosterbriefly We had a conversation in our office today about small contractors who are signed up on thePort of Vancouverrsquos small works roster Our team has had opportunity to talk to some of thecompanies on our roster who are women owned or minority owned businesses but they arenrsquotsigned up as a DBE firm When asked about that theyrsquove mentioned that they donrsquot want to fill outthe additional paperwork required to obtain the certification as a DBE As for the DBE goal at 19 it doesnrsquot seem to present an issue for the majority of our projects ndashespecially those where we would apply FHWA funds if granted However if we did happen to have aproject that didnrsquot include classifications of work where DBE certified participants are availablewould there still be an exception or a good faith efforts clause Thanks again for your time Dawn EgbertProcurement Services Manager3103 NW Lower River Road Vancouver WA 98660Direct 3609921102 | Cell 360448-9867 | Main 3606933611 | Fax 360735-1565degbertportvanusacom | wwwportvanusacom | available port properties Leadership | Stewardship | Partnership

From Feist MarleneTo WSDOT Disparity StudyCc Simmons Scott M Twohig KyleSubject Disparity Study Comments from City of SpokaneDate Friday December 15 2017 52226 PMAttachments image010png

image011pngimage012png

December 15 2017 Jackie BaynePolicy amp Reporting ManagerOffice of Equal OpportunityWashington State Department of TransportationPO Box 47314Olympia WA 98504-7314 RE Proposed DBE Contracting Goal for Highway Projects Dear Ms Bayne The City of Spokane would like to provide comments related to proposed DisadvantagedBusiness Enterprise Goal for Federal Highway Administration (FHWA) contracts by theWashington State Department of Transportation (WSDOT) Office of Equal Opportunity Manyof our projects receive funding from FHWA and as such the proposed new goals areapplicable to City work The City is supportive of the programrsquos purposemdashldquoto create a level playing field for firmsowned and operated by disadvantaged individuals wanting to participate in federally assistedhighway transit or aviation programsrdquo However the City is concerned about the ability to achieve the proposed utilization rate of upto 19 percent for DBEs in Eastern Washington considering the low number of DBEs in ourregion and the record construction under way in the City and in our region WSDOTrsquos DBE Program Disparity Study notes ldquoContractors in Eastern Washington repeatedlyreported that the goals on projects in their area are too highrdquo The Inland NorthwestAssociated General Contractors group notes that only about 12 DBEs in construction fields areavailable in the greater Spokane area Meanwhile the City has performed record construction in each of the last three years withproject totals hovering around $100 million Our City work has been bolstered by anaggressive program to improve water quality in the Spokane River Our local school districtsand our neighboring jurisdictions also have aggressive construction programs right now

Additionally we expect WSDOTrsquos work in this region to accelerate as North Spokane Corridor(NSC) construction proceeds At times our area is reaching the limits overall of our contractingcommunity the City has worked to release its projects in the first quarter of the year as muchas possible to lock in contractors and receive better pricing The capacity of existing DBEs in our region simply cannot meet that current high demand Some DBE firms are tempted to agree to more work in these times but we have found that insome cases DBEs have stretched themselves too thin On two recent City projects generalcontractors were unable to meet DBE goals as a result of DBE firms that couldnrsquot fulfill theircommitments for providing personnel or equipment It also seems implausible to expect DBEs from the West Side to mobilize teams to work on Cityof Spokane projects in large numbers In fact the Disparity Studyrsquos author responded at arecent meeting on this topic that a DBE from the West Side only very rarely completes workon the East Side of the state We would also be concerned about moving the good-paying jobs that construction providesoutside of our region The Cityrsquos median household income is $44350 considerably lower than theState of Washington MHI of $64129 and the Seattle MHI of $77351 Our leaders are working tocreate good-paying jobs for our citizens not export them to an already wealthier part of the state Additionally these projects are also funded with local dollars and our citizens expect their money toput their neighbors to work With the above considered the City is seeking

middot DBE goals for the 2018-2020 compliance period for Eastern Washington that arereflective of the current availability of DBE firms in our region

middot The re-inclusion of non-minority women owned DBEs in achieving DBE goals InSpokane non-minority women owned DBEs make up the majority of the availableDBEs And current information shows that women in Spokane overall still lag behindmen in opportunities and wages The Cityrsquos own ldquoGender and Racial Equityrdquo reportfrom 2016 noted that overall working women earned 783 percent of the earnings ofworking men in 2014 down from 827 percent in 2009 We need to lift up all women

middot The development of WSDOT programs to encourage the growth of existing andnew DBEs who can be used on street and highway projects We are encouraged by theproposed mentorproteacutegeacute program to increase the number and capacity of DBEs inEastern Washington Programs that address other barriers such as assistance withcompleting documentation or access to bonding capacity also could aid growth ofDBEs

middot The ability for WSDOT to adjust goals on a project if a selected DBE is unable tocomplete its commitments on a project This would help enable our contractors totake a chance on a new or inexperienced DBE to complete work

middot Recognition of local programs that strive to increase diversity in the work force Forexample the City operates a robust apprenticeship program that requires 15 percentof the labor hours on public works jobs greater than $600000 to be performed byapprentices The apprentice programs in our region are stepping up recruitmentefforts and are specifically seeking to recruit more youth women and minorities intoapprentice slots

As we seek to achieve the goal of increasing participation in street and highway constructionby companies owned by disadvantaged individuals we must also acknowledge that businessdevelopment and growth happens over time We must lay the groundwork now to build abase of DBEs that can help us achieve higher utilization goals over time Sincerely Marlene FeistDirector of Strategic DevelopmentPublic Works amp UtilitiesCity of Spokane

Marlene Feist | City of Spokane | Public Works Director of Strategic Development5096256505 | cell 5097109214 | mfeistspokanecityorg | spokanecityorg

From Hall MattTo WSDOT Disparity StudySubject FW WSDOT News - WSDOT seeks comments on proposed DBE contracting goal for highway projectsDate Friday December 15 2017 11956 PMAttachments WSDOT proposed DBE goal through 2020pdf

From Hall Matt Sent Friday December 15 2017 117 PMTo BayneJwsdotwagovCc Keniston Rick (KenistRwsdotwagov) MolyneKwsdotwagov SusanWilsonclarkwagovSubject WSDOT News - WSDOT seeks comments on proposed DBE contracting goal for highwayprojects Hello Jackie Please see our comments attached regarding the WSDOT proposed DBE goals Thanks for the opportunity to provide comments Matt HallClark County Public Works Washington State Department of Transportation ndash NEWSHeadquarters ndash 310 Maple Park Avenue SE ndash Olympia WA 98504-7314 ndash 360 705-7000 FOR IMMEDIATE RELEASEOct 30 2017 Contact Jackie Bayne Office of Equal Opportunity 360 705-7084

WSDOT seeks comments on proposed DBEcontracting goal for highway projectsComments accepted through Dec 15OLYMPIA ndash Contractors trade and labor organizations small and disadvantaged businessesand all others who may be interested in working with the Washington State Department ofTransportation are invited to comment on the agencyrsquos proposed Disadvantaged BusinessEnterprise goal for Federal Highway Administration contractsDBE goals for transportation projects that receive federal funds represent a percentage of thevalue of work in which minority- and women-owned businesses should participate WSDOTis proposing a 19 percent overall DBE participation goal on Federal Highway Administration-funded projects for federal fiscal years 2018 through 2020Once submitted to FHWA early next year the goal will be effective through Sept 30 2020The purpose of the DBE program is to create a level playing field for firms owned andoperated by disadvantaged individuals wanting to participate in federally assisted highwaytransit and aviation programsConnecting with communitiesWSDOT will host a series of public meetings to provide opportunities for individuals tocomment in person

Spokane

2 ndash 4 pm Tuesday Nov 28WSDOT Eastern Region Headquarters2714 N Mayfair St Spokane

Vancouver

2 ndash 4 pm Wednesday Nov 29WSDOT Vancouver Headquarters11018 NE 51st Circle Vancouver

Seattle

2 ndash 4 pm Thursday Dec 7WSDOT Northwest Region Headquarters15700 Dayton Ave N Shoreline

Other ways to provide commentThose who are unable to attend one of the meetings can participate in a no-cost webinar from230 ndash 430 pm Tuesday Dec 5 Registration for the webinar is required Those interested inparticipating should email DisparityStudywsdotwagovWritten comments can also be submitted by mail or emailJackie Bayne Policy amp Reporting ManagerWashington State Department of TransportationOffice of Equal OpportunityPO Box 47314Olympia WA 98504-7314DisparityStudywsdotwagovDocuments detailing the methodology used for determining the FHWA DBE goals areavailable for review at all WSDOT region headquarters offices and at the TransportationBuilding 310 Maple Park Ave SE Olympia They are also available online atwwwwsdotwagovequalopportunityWSDOT will consider all written comments received through Friday Dec 15 2017 Hyperlinks within this release

WSDOT Region offices wwwwsdotwagovContactofficelocationhtmregion

WSDOT keeps people businesses and the economy moving by operating and improving the statestransportation systems To learn more about what were doing go to wwwwsdotwagovnews forpictures videos news and blogs Real time traffic information is available at wwwwsdotcomtraffic or bydialing 511 Americans with Disabilities Act (ADA) InformationAccommodation requests for people with disabilities can be made by contacting the WSDOTDiversityADA Affairs team at wsdotadawsdotwagov or by calling toll-free 855-362-4ADA (4232)Persons who are deaf or hard of hearing may make a request by calling the Washington State Relay at711 Title VI Statement to Public It is WSDOTrsquos policy to assure that no person shall on the grounds ofrace color national origin or sex as provided by Title VI of the Civil Rights Act of 1964 be excluded fromparticipation in be denied the benefits of or be otherwise discriminated against under any of its federallyfunded programs and activities Any person who believes his or her Title VI protection has been violatedmay file a complaint with WSDOTrsquos Office of Equal Opportunity For additional information regarding Title

VI complaint procedures andor information regarding our non-discrimination obligations please contactOEOrsquos Title VI Coordinator at 360-705-7090 To unsubscribe to WSDOT media releases please reply and type REMOVE in the subject line

This e-mail and related attachments and any response may be subject to public disclosure under state law

From Cochrane EmilieTo WSDOT Disparity StudyCc Eugenis Susan Cowlitz Co Public Works - Brad BastinSubject Proposed DBE GoalsDate Thursday December 14 2017 85006 AMAttachments image002png

DBE Goals - Commentspdf

Please see the attached letter with comments regarding the proposed DBE Goals Ahard copy will be sent out today

Thanks

Emilie CochraneCowlitz County Public Works1600 ndash 13th Avenue SKelso WA 98626360-577-3030 ext 6523

From Michelle WolcottTo Bayne JackieCc Robideau Christopher LSubject RE DBE Contracting Goal CommentsDate Tuesday November 7 2017 65448 AMAttachments image001png

Thank you JackieWhat a relief to know that we have been heard and are not the only small business facing thisstruggle Your email is comforting

Yes you can provide us with additional assistanceLet me introduce my boss and Senior Vice President of Red Plains Professional Chris Robideau

Chris will be your contact from here since I will be leaving the company November 17th As a WA DBE we are ldquoeligible for limited DBE Support Services (SS) funding when funds becomeavailablerdquo When will this happen And are we registered or on a list to receive fundingIs the WSDOT ICR Training a prerequisite for the funding Or just helpful knowledge

Thank you for your time Jackie I will follow through with the training

Michelle Wolcott EIT Quality Control Engineer

2103 NE 129th Street Suite 201 Vancouver WA 98686 Office (360) 448-7999 Fax (360) 258-0274

wwwred-plainscom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Monday November 6 2017 332 PMTo Michelle Wolcott ltMichelleWolcottred-plainscomgtSubject RE DBE Contracting Goal Comments

Hi Michelle

Thank you for your interest in doing business with WSDOT I apologize for the lack of informationyou have come up against in your attempts to attain access to WSDOT ICR program

As you may well know WSDOT has recently completed a state wide agency specific diversity studyAnecdotal comments submitted with the study concur with your experience Not only did somerespondents find it difficult to become prequalified they also commented that the required indirectrate of 110 percent is too low to be profitable These requirements are currently under advisementby WSDOT and new DBE program requirements are currently in the process of seeking public input

As you are an OMWBE certified DBE in Washington State you will be eligible for limited DBE SupportServices (SS) funding when these funds become available At that time funds may become availableto assist you in your struggle to attain ICR eligibility Here is a link to WSDOTrsquos Indirect Cost RateTraining httpswwwwsdotwagovAuditICRTraininghtm If you would like me to find additionaltraining or information please let me know

If I can provide additional assistance of information please let me know

Best Regards

Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Michelle Wolcott [mailtoMichelleWolcottred-plainscom] Sent Tuesday October 31 2017 835 AMTo WSDOT Disparity Study ltDisparityStudyWSDOTWAGOVgtSubject DBE Contracting Goal Comments

HelloI have been in contact with WSDOT for 6 months sharing my disparaging story of beinga small DBE unable to submit SOQs for projects requiring a WSDOT Audited IndirectCost Rate Approval We do not have an in-house accountant and our outsideaccountant has explained to get all the paperwork together for WSDOT would take 40hours of work $9000 annually We cannot justify this cost to submit on a project thatwe may not acquire We have been directed to seek financial assistance from WSDOT Federal SBA andWashington State Office for Women and Minority Owned Enterprises all of whichprovided negative responses

As a DBE business in 11 states we are supporting the 19 incentive for federallyfunded contracts but we are frustrated in the fact that we will not be one of the luckyfew to participateWe have been in business 20 years From our Vancouver Washington office our clientsare the Native American tribes across the country with all contracts federally funded This summer alone the WSDOT ICR Approval has squashed our ability to submit on twoprojects that we were perfectly qualified to performI have attached previous emails to show a sample of who I have been dealing with

Thank you

Michelle Wolcott EIT Quality Control Engineer

ltimage001pnggt

2103 NE 129th Street Suite 201 Vancouver WA 98686 Office (360) 448-7999 Fax (360) 258-0274 wwwred-plainscom

From Michelle Wolcott Sent Monday July 10 2017 954 AMTo Harvey Schatzie ltHarveySwsdotwagovgtSubject RE WSDOT Indirect Cost Rate Process

Good Morning Schatzie

This is Michelle Wolcott from Red We spoke Friday June 30th about the ICRprocess and you were very encouraging I relayed the information to my boss who ishere in Vancouver then he shared with the president bookkeeper and our accountantin Oklahoma We had FAR compliance with Oklahoma DOT in 2015 so we are noteligible for the Safe Harbor Program Our account said our timekeeping system doesnot breakdown the hours and pay in the format WSDOT wants to have it presented andto get the documents in order would take the CPA and an assistant $9000 in paidhours of work It turns out this would have to be annually The other option is to hirean outside CPA firm to do the audit for us at $20000 annually

Our president said in the past we received funding assistance from the Stateof Oklahoma to get our ICR approval Does WSDOT offer any financial assistance for small businesses to reach compliance We are also a DBE in WA I have requested the same information from WA PTAC at theVancouver Chamber of Commerce and from WA Office of Minority and Women OwnedBusiness Enterprises and they both said there was nothing but suggested to askWSDOTThank you for your helpMichelle Wolcott EIT

Hello Michelle sorry but I am not aware of any grants But I was looking at this andthere is a POC at the bottom you may try to discuss the audit issuesHollyHolly BoehmeBusiness Opportunity Specialist | 8(a) Business Development ProgramUS Small Business Administration bull Seattle District Office

Hello Michelle -

Thank you for your email Im not aware of any funding available for thispurpose but do agree its quite a bit for a DBE firm to have as an expense Mostof the firms I work with do a lot more work on the Oregon side so perhaps thereare programs available that I just havent heard of Im copying my colleagueHoly Boehme in our Seattle District Office to see if they are aware of any suchassistance

Holly might there be some small business incubators or other resources availablein WA to help a small firm with the expense of getting a WSDOT AuditedIndirect Cost Rate approval Please reply all with anything you may have

Thank you

Yuri Yoshida Dyson Business Opportunity SpecialistUS SMALL BUSINESS ADMINISTRATION Portland District OfficePhone 503-326-6692 Fax 202-292-3872 wwwsbagovor

From Troy HalbergTo Bayne JackieSubject Re DBE Goal CommentsDate Wednesday December 13 2017 35533 PM

JackieToday was another example of why the goals should not be raised There were 2 jobs which Iwas low on and did not get due to the high goals This is exactly what will happen when thegoals get raised The first job was the 9180 Anacortes Ferry Paving Northeast Electric $244924 and UDBE $318000 Second job was the 9172 SR 9 East Junction Job Northeast Electric $68503 and UDBE $76300

Does this seem like a good way to spend the tax payer money I do not see how we are tosurvive if the goals get to 21

Thanks

Troy HalbergOffice360-225-7004Cell360-931-3990Fax360-225-7001

On Thu Nov 30 2017 at 1131 AM Bayne Jackie ltBayneJwsdotwagovgt wrote

Good Morning Troy

Thank you for taking the time to provide us with your experiences with the DBE Program TheWashington State Department of Transportation takes the public involvement process veryseriously and your comments will be taken into consideration prior to a final decision regardingthe overall DBE program goal

If I can be of further assistance please let me know

Best Regards

Jackie Bayne

Policy and Reporting Manager

WSDOT Office of Equal Opportunity

Work (360) 705-7084

Cell (360) 338-5783

BayneJwsdotwagov

From Troy Halberg [mailtotroyhnellcnet] Sent Wednesday November 29 2017 144 PMTo WSDOT Disparity Study ltDisparityStudyWSDOTWAGOVgtSubject DBE Goal Comments

If these goals are to be set that high this would make us as a non DBE small contractor at amajor disadvantage With these high of goals this is like handing all of the DBE electricalcontractors every job These general contractors will have no option but to use thembecause of the goals This should not go into effect We have been low on several jobs in thepast and have not gotten them do to the goals being 18 When this goes on it puts all therest of us contractors at a disadvantage Please consider the smaller non DBE contractorsthat are looking to survive as well

Thanks

Troy Halberg

Office360-225-7004

Cell360-931-3990

Fax360-225-7001

From Daniel Seydel IITo Bayne JackieCc Key Earl daneiwashingtonorg Nadeem Ismail Mussie Tewelde (mteweldehydro2geotechcom)

graceflyrightaolcom Mary Wenner Watkinson LarrySubject Re Seydel Dan - WSDOT Disparity Study Presentation Public TestimonyDate Friday December 8 2017 30323 PM

Jackie

It was my hope that the comments would be put into record I was also hoping that you wouldnot have to be the one having to formulate responses for each clarification If that is the caseI know you are swamped and will then I just ask my comments be only part of the recordHowever if there is dedicated staff that is going to be compiling and responding to theclarification then the below questions would be the priorities of most interest

These were questions unrelated to the disparity study and hopefully should be doable

1) Do you have any reports on your outcomes from the past 5 years on DBE support servicesand specific key performance measures from previous years funding (ie how many firmsutilized what was the objectives were objectives met did outcomes meet total satisfaction ifnot why next steps what was the firms capacity before and after services were performed (iesales employees bonding if applicable insurance equipment line of credit if applicablenumbertype of customers how are they doing now etc))

2) What other changes or improvements other than allowing DBES to select their own serviceproviders and a staff change will be a part of this new program

3) Was consideration to provide the new mentor protege consultant rather than separating theactivities into support services andor technical assistance

Disparity study clarifications

1) Will WSDOT consider sponsoring legislation to support the policy changes and goalincreases to insure manditory goals wont be necessary

a) If not what measures will you grant primes to operate outside the box (ie entertain bestvalue over low bid modify responsiveness by subs to require adherence to meeting voluntarygoals developing standards around federally funded gccm and other low bid procurementsthat give powers to primes to meet objectives including but not limited to mentor protegerelationships joint ventures bond waiving techniques cash flow assistance material andequipment acquisition manufacturer development specifications that have only DBES orinclude equal number of DBES as non DBES as approved installers etc)

2) Will the disparity study consultant be available for implementation or information gatheringfrom other regions

5) Will WSDOT be hiring more diverse staff amp professionaltechnical service providers inother departments outside OEO to insure policies commitments and evaluations areperformed in manner that improves diversity that reflects the communities WSDOT serves bythoughtful and legal efforts increase participation thus creating successful outcomes includingpartnerships and collaborations

Thank you and Merry Christmas

Hi Dan

Thank you for providing such thoughtful public comments questions and testimony

Regarding your public testimony below - I do not believe I am not able to answer questions ifthey are public comments Please let me know what part of this email you would likeclarification on and what part you would like considered public testimony

I appreciate your thoughtful consideration of WSDOTrsquos implementation of our civil rightsprograms

Best Regards

Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

DIDaniel Seydel IIFyi Daniel J Seydel II Platinum Group LLC 2064060844 f) 2062999934wwwplatinumbusinessgroupcom Small Business is the Answer FREE TRAINING FORENTREPRENEURS amp JOB SEEKERS - Polish your skills or make your firm standout thanksto the EntrepreneurialThu 233pDI

Daniel Seydel IIThu 1272017 1123 AMInbox Sent ItemsShow all 7 recipientsTobaynejwsdotwagov ltBayneJwsdotwagovgtJackie

Per your request below are my questions and comments some of which were verbally sharedyesterday

Congratulations on receiving the blessing of additional technical assistance dollars andcompleting the DBE Disparity Study per your report

1) Do you have any reports on your outcomes from the past 5 years on DBE support servicesand specific key performance measures from previous years funding (ie how many firmsutilized what was the objectives were objectives met did outcomes meet total satisfaction ifnot why next steps what was the firms capacity before and after services were performed (ie

sales employees bonding if applicable insurance equipment line of credit if applicablenumbertype of customers how are they doing now etc))

2) What other changes or improvements other than allowing DBES to select their own serviceproviders and a staff change will be a part of this new program

3) Was consideration to provide the new mentor protege consultant rather than separating theactivities into support services andor technical assistance

Disparity study clarifications andor comments

1) Will WSDOT consider sponsoring legislation to support the policy changes and goalincreases to insure manditory goals wont be necessary

a) If not what measures will you grant primes to operate outside the box (ie entertain bestvalue over low bid modify responsiveness by subs to require adherence to meeting voluntarygoals developing standards around federally funded gccm and other low bid procurementsthat give powers to primes to meet objectives including but not limited to mentor protegerelationships joint ventures bond waiving techniques cash flow assistance material andequipment acquisition manufacturer development specifications that have only DBES orinclude equal number of DBES as non DBES as approved installers etc)

2) Will the disparity study consultant be available for implementation or information gatheringfrom other regions

3) What lessons did WSDOT learn that it did not know from the other study(s)

4) What would WSDOT do different (ie scope time line process approach etc)

5) Will WSDOT be hiring more diverse staff amp professionaltechnical service providers inother departments outside OEO to insure policies commitments and evaluations areperformed in manner that improves diversity that reflects the communities WSDOT serves bythoughtful and legal efforts increase participation thus creating successful outcomes includingpartnerships and collaborations

Daniel J Seydel IIPlatinum Group LLC 2064060844f) 2062999934wwwplatinumbusinessgroupcom

Small Business is the Answer

FREE TRAINING FOR ENTREPRENEURS amp JOB SEEKERS - Polish your skills or makeyour firm standout thanks to the Entrepreneurial Institute of Washington

httpswwwyoutubecomchannelUCKL5YeVxL29HnNxqnb6hmXA

LIKE US on FaceBook if an Active Professional Development workshop provided by EIW

Construction University helps your firm or has benefited you

httpswwwfacebookcomEIWashingtonref=hl

From Bayne Jackie ltBayneJwsdotwagovgtSent Friday December 8 2017 10139 PMTo Daniel Seydel IICc Key Earl daneiwashingtonorg Nadeem Ismail Mussie Tewelde(mteweldehydro2geotechcom) graceflyrightaolcom Mary Wenner Watkinson LarrySubject RE Seydel Dan - WSDOT Disparity Study Presentation Public Testimony Hi Dan Thank you for providing such thoughtful public comments questions and testimony Regarding your public testimony below - I do not believe I am not able to answer questions if theyare public comments Please let me know what part of this email you would like clarification on andwhat part you would like considered public testimony I appreciate your thoughtful consideration of WSDOTrsquos implementation of our civil rights programs Best Regards Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov From Daniel Seydel II [mailtodanplatinumbusinessgroupcom] Sent Thursday December 7 2017 1123 AMTo Bayne Jackie ltBayneJwsdotwagovgtCc Key Earl ltKeyEwsdotwagovgt daneiwashingtonorg Nadeem Ismailltnipaintingearthlinknetgt Mussie Tewelde (mteweldehydro2geotechcom)ltmteweldehydro2geotechcomgt graceflyrightaolcom Mary Wennerltmwenn0108yahoocomgtSubject Seydel Dan - WSDOT Disparity Study Presentation Public Testimony Jackie

Per your request below are my questions and comments some of which were verbally sharedyesterday

Congratulations on receiving the blessing of additional technical assistance dollars andcompleting the DBE Disparity Study per your report

1) Do you have any reports on your outcomes from the past 5 years on DBE support servicesand specific key performance measures from previous years funding (ie how many firmsutilized what was the objectives were objectives met did outcomes meet total satisfaction ifnot why next steps what was the firms capacity before and after services were performed (iesales employees bonding if applicable insurance equipment line of credit if applicablenumbertype of customers how are they doing now etc))

2) What other changes or improvements other than allowing DBES to select their own serviceproviders and a staff change will be a part of this new program

3) Was consideration to provide the new mentor protege consultant rather than separating theactivities into support services andor technical assistance

Disparity study clarifications andor comments

1) Will WSDOT consider sponsoring legislation to support the policy changes and goalincreases to insure manditory goals wont be necessary

a) If not what measures will you grant primes to operate outside the box (ie entertain bestvalue over low bid modify responsiveness by subs to require adherence to meeting voluntarygoals developing standards around federally funded gccm and other low bid procurementsthat give powers to primes to meet objectives including but not limited to mentor protegerelationships joint ventures bond waiving techniques cash flow assistance material andequipment acquisition manufacturer development specifications that have only DBES orinclude equal number of DBES as non DBES as approved installers etc)

2) Will the disparity study consultant be available for implementation or information gatheringfrom other regions

3) What lessons did WSDOT learn that it did not know from the other study(s)

4) What would WSDOT do different (ie scope time line process approach etc)

5) Will WSDOT be hiring more diverse staff amp professionaltechnical service providers inother departments outside OEO to insure policies commitments and evaluations areperformed in manner that improves diversity that reflects the communities WSDOT serves bythoughtful and legal efforts increase participation thus creating successful outcomes includingpartnerships and collaborations

Thank you for your hard work

Daniel J Seydel IIPlatinum Group LLC2064060844f) 2062999934wwwplatinumbusinessgroupcom

Small Business is the Answer

FREE TRAINING FOR ENTREPRENEURS amp JOB SEEKERS - Polish your skills or makeyour firm standout thanks to the Entrepreneurial Institute of Washington

httpswwwyoutubecomchannelUCKL5YeVxL29HnNxqnb6hmXA

LIKE US on FaceBook if an Active Professional Development workshop provided by EIWConstruction University helps your firm or has benefited you

httpswwwfacebookcomEIWashingtonref=hl

From Erin EhlingerTo Bayne JackieSubject Support for WSDOTs proposed DBE goalDate Wednesday December 13 2017 115417 AM

I am writing to support the WSDOT recommended DBE Goal for FHWA contracts of 190 I also want to express my appreciation for the thoroughness of the WSDOT Disparity study and howthe study disclosed the disparity in WSDOT contracts that do not have a DBE or WBE goal ndash furtherreinforcing that all women-owned firms and minority owned firms face equity issues I remain concerned with the methodology required by the Code of Federal Regulations and case lawbecause of the dependence on the availability of firms in the calculation An unintendedconsequence of removing either gender or race from the goal is that many of these firms would goout of business the availability decreases and the formula then results in a smaller DBE goal Pleaselet me know how I can help influence a change to the CFR Thank you Erin Ehlinger

Erin Ehlinger PEPresident

24036 SE 47th StSammamish WA 98029erinehlingersmartcitytrafficcom425-221-0320

From Jackie EtterTo WSDOT Disparity StudySubject Why we need mandatory goalsDate Friday December 1 2017 61859 PM

As a DBE participating in bidding process I have found that regardless of the language which claims to insurethat disadvantaged business enterprises shall not be discriminated against the only way to ensure that this does nothappen is by mandating affirmative action goals Having been overlooked time and time again because of my gender when I have submitted bids that are verycompetitive with other bidders is very frustrating I have had many instances of companies using my price to getmy non DBE competitors to lower theirs The voluntary or laudatory DBE goals do nothing to ensure a level playing fieldThe only way to ensure non-discrimination is through mandatory goals

Jackie EtterWest Star Construction of Spokane

Sent from my iPhone

From Claudia HirscheyTo Key Earl Bayne JackieSubject WSDOT DBE Goal - Comment in supportDate Tuesday December 12 2017 61937 PM

Dear Earl and Jackie The WSDOT recommended DBE Goal for FHWA contracts of 190 is a small and important increasethat can further achieve equity in WSDOTFHWA contracting I am in support of the 19 DBE Goal I also want to express my appreciation for the thoroughness of the WSDOT Disparity study and howthe study disclosed the disparity in WSDOT contracts that do not have a DBE or WBE goal ndash furtherreinforcing that all women-owned firms and minority owned firms face equity issues I remain concerned with the methodology required by the Code of Federal Regulations and case lawbecause of the dependence on the availability of firms in the calculation An unintendedconsequence of removing either gender or race from the goal is that many of these firms would goout of business the availability decreases and the formula then results in a smaller DBE goal Sincerely Claudia S Hirschey PETransportation Consulting Servicesclaudiahirscheycomcastnethttphirscheytcscom2068564988 Mobile

From Nate ThomasTo WSDOT Disparity StudySubject WSDOT Proposes DBE goal of 19Date Thursday December 7 2017 42720 PM

The WSDOT should look into similar ways the Federal Gov has handled the equal opportunity forthose that fall under the DBE status and set aside specific projects for the DBErsquos and moreimportantly UDBErsquos so these companies have better chance of landing contracts Maybe a lot 10 ofthe DBE goal to set aside for only DBEs and other 9 goal met as it is done currently with COA onlarger contracts Nate ThomasSenior EstimatorD 5095688085 | C 5099941156331 North Fancher Road | Spokane WA | 99212

The information contained in this email including any attachments is confidential and may beprivileged It is intended only for the person or entity to which it is addressed and no waiver isintended by sending this email If the reader is not the intended recipient you are herebynotified that any review retransmission dissemination or other use of or taking any action inreliance upon this information is strictly prohibited If you have received this email in errorkindly notify the sender by reply email and delete the original message from any computerThank You

From Brian FujiiTo WSDOT Disparity StudySubject WSDOT propsed DBE GoalsDate Thursday December 7 2017 110638 AM

Good morning Jackie

I wanted to comment on WSDOTs proposed DBE goal to 19 I believe WSDOTs plan toincrease the overall DBE goal to 19 will provide greater opportunities for DBE contractorsin different disciplines to participate in federally funded contracts

Without the new DBE requirement and with Proposition 200 there are limited opportunitiesfor DBE contractors in disciplines different than the typical trucking flagging and rebar Inaddition there are no incentives for general contractors to go out beyond the usual truckingflagging and rebar DBE subcontractors

Increasing the DBE goals will provide opportunities for different DBE contractors in differentdisciplines to participate in WSDOT federally funded projects

Thank you for your time

RespectfullyBrian FujiiPresident Subsurface ConstructionP 2063836478F 2069604639MDBE 4M0024998

From Forman StephanieTo Bayne JackieCc Millar Roger christinenhanmailhousegov Claudia Hirschey Sarah Corbin Jiang Yingle

efaulknerenviroissuescom Diana Giraldo Kelly CheesemanSubject WTS - Disparity Study Comment LetterDate Friday December 15 2017 71020 PMAttachments 2017_Dec 15_WTSCommentLetter_WSDOT DBE Goalpdf

Dear Ms Bayne Please find our attached letter which summarizes the WTS Puget Sound Chapterrsquos support foradvancement of women in transportation and our comment letter regarding the recent DisparityStudy Please feel free to contact me if you have any questions or would like to discuss Sincerely Stephanie S Forman PEWTS Puget Sound President Transportation Project Manager

929 108th Avenue NE Suite 1300Bellevue WA 98004D 4254681548 M 2062291745stephanieformanhdrinccom

December 15 2017

Jackie Bayne Policy and Reporting Manager

Office of Equal Opportunity

Washington State Department of Transportation

PO Box 47314

Olympia WA 98504-7314

Dear Ms Bayne

On behalf of the Puget Sound Chapter of Womenrsquos Transportation Seminar (WTS) we would

like to thank the Washington State Department of Transportation for presenting to our

organization the DBE Disparity Study results We very much appreciated the presentation by Earl

Key Director of WSDOTrsquos Office of Equal Opportunity Teresa Berntsen (Director Office of Minority

and Womens Business Enterprises) as well as Leslie Jones (Director Sound Transit Office of Small

Business Development and Labor Compliance)

Following a review of the WSDOT Disparity Study and as a result of consultation with WTS

International we would like to provide WSDOT with our comments for your consideration

As you know WTS is an organization focused exclusively on attracting retaining and advancing

women in transportation By the year 2018 there will be thousands of vacancies in the

transportation industry for qualified professionals and while women account for more than half of

the worldrsquos workforce they are a very small minority in transportation disciplines

We are pleased that the outcome of the 2017 Disparity Study that recognizes the on-going barriers

for DBEs including women-owned businesses in transportation The WSDOT recommended DBE

Goal of 190 is a small and important increase that can further achieve equity in WSDOTFHWA

contracting We are also pleased that the 2017 Disparity Study has documented the disparity in

WSDOT contracts that do not have a DBE or WBE goal ndash further reinforcing that all women-owned

firms and minority owned firms face equity issues We are encouraged that the WSDOT has asked

FHWA to rescind the 2016 waiver

While WTSrsquo mission is specific to the advancement of women we are a race-neutral organization To

this end we are also deeply concerned about the underutilization of minority owned firms There is

no equity or ldquofair playing fieldrdquo without equity for all gender and races We remained concerned with

the methodology required by the Code of Federal Regulations and case law because of the

dependence on the availability of firms in the calculation An unintended consequence of removing

either gender or race from the goal is that many of these firms would go out of business the

availability decreases and the formula then results in a smaller DBE goal This consequence is

contrary to our mission

We look forward to our continued participation in WSDOTrsquos DBE advisory group we are anticipating

notice that the 2016 waiver has been rescinded and how we can work together to continue

advancing minority and women-owned firms in the transportation field

Sincerely

WTS Puget Sound Chapter

Stephanie Forman

President

C Roger Millar Secretary WSDOT

C Representative Adam Smith 9th Congressional District Washington co Christine Nhan

WTS Puget Sound Chapter

PO Box 3461

Bellevue Washington 98009

From Dave Gent - WAPATo Bayne JackieCc Tom GaetzSubject WAPA Public Comments - RE WSDOT FHWA Disadvantaged Business Enterprise Proposed GoalDate Friday December 15 2017 14119 PMAttachments 12152017 DBE Proposed Goal - WAPA Public Comments Letterpdf

Good afternoon Jackie Please find attached WAPArsquos ldquofor the public recordrdquo comments with respect to WSDOTrsquos proposedDBE Goals FHWA funded work I assume that the Master DBE Directory was not sent to you this week so as a result we were notable to review the directory before the close of the public comment period That fact is noted withinour comment letter Thank you for your efforts Have a good weekend

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Friday December 8 2017 1219 PMTo Dave Gent - WAPA ltdavegentasphaltwacomgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hello Dave WSDOT did not take possession of this directory as part of our review process We will provide youwith the records without submitting a formal request However we need to get them from theconsultant first I will hopefully have them to provide next week I will keep you updated on therequest Have a nice weekend Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal Opportunity

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

December 15 2017

Jackie Bayne Policy Manager WSDOT Office of Equal Opportunity Delivered via e-mail to BayneJwsdotwagov RE Public Comment (as requested) to Proposed Overall DBE Goal for the FHWA (2018 ndash 2020) Ms Bayne Thank you for your presentation via webinar on December 5 2017 outlining WSDOTrsquos evaluation process used to determine the proposed overall DBE goal for the FHWA Thank you also for the Colette Holt amp Associates (CHA) DBE Advisory Group presentation made on September 14 2017 Both presentations helped to distill the findings of the 2017 Disparity Study produced by CHA In response to Earl Keyrsquos initial informal request to comment on the proposed overall DBE goal made during the DBE Advisory Committee teleconference held on October 12th we provided a list of reasons that we believe justify a lower DBE goal than is now being proposed Our initial response to Mr Keyrsquos request did not serve to influence WSDOT and the current proposed goal remains at 190 The arguments provided on October 12th against the significant increase in the proposed DBE goal (versus the previous goal and recent historic DBE participation) are repeated and supplemented below and will serve as the Asphalt Pavement Associationrsquos (WAPArsquos) official public comments

In concert with WSDOT and the OWMBE WAPA and the construction firms that WAPA represents have demonstrated a commitment to the principals of equal opportunity for all ldquoready willing and ablerdquo firms for the entire history that our DBE program has been in place WAPA has continuously demonstrated its commitment to the goals of the DBE program and for increasing the representation of disadvantaged groups within our industry as both workers and owners of firms Please recognize that WAPArsquos oversight and critique of the DBE program has always attempted to balance the principals of fair and open competition with the practical aspects of the low bid compressed schedule high performance standards demanded within the WSDOT marketplace Our comments below are meant to enhance WSDOTrsquos and OWMBErsquos understanding of the market and to hopefully have WSDOT fully consider all of the dynamics that are at play when proposing its Triennial DBE goal for FHWA projects Current DBE Capacity vs Historically Robust Market In advocating for a realistic and defensible DBE goal it has always been WAPArsquos position that it is paramount that the realities of the marketplace and true certified DBE subcontracting capacity should be a primary standard While a ldquostretchrdquo goal may appear to be progressive on its face it comes with consequences for all of the parties involved in the WSDOT federal aid contracting arena To balance the dynamics of the WSDOT contracting system the DBE goal should be tempered with the realities of the market and with a true measure of the underlying effectiveness of the DBE support services available to contractors

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 2 of 6 The first point of fact that has not been given any apparent consideration by WSDOT in its evaluation of the current capacity of certified DBErsquos is that there is an historically robust workload scheduled to be performed in the 2017 through 2022 time-frame particularly in the Puget Sound ldquoEverett to Olympiardquo corridor By WSDOTrsquos own estimates (see Attachment A) public works construction project starts in the 2018 to 2022 time-frame in this region will exceed $333 billion (B) counting the work projected from just five public entities WSDOT will be taking a decidedly ldquoback seatrdquo role during this period to Sound Transit which will have construction project starts of $226B vs WSDOTrsquos projected volume of $67B WSDOTrsquos summary publication titled Washington State Department of Transportations Proposed Federal Highway Administration Triennium Disadvantaged Business Enterprise Goal Federal Fiscal Years 2018-2020 states correctly that ldquoIncluded among the types of evidence that must be considered are the current capacity of DBEs to perform work on WSDOTrsquos federally-assisted contracts as measured by the volume of work DBEs have performed in recent yearshelliprdquo (Step Two Adjustment discussion) With the Sound Transit program being over 300 larger than the total WSDOT program in this region a sober assessment of true certified DBE capacity in the next three years needs to be considered by WSDOT If the huge construction boom over the next five years does not prompt a Step Two Adjustment then it becomes obvious that the realities of the market are being ignored by WSDOT for DBE goal setting Put another way if the 2018 through 2022 level of contracting activity does not warrant a goal adjustment what will DBE Access Barriers Not Yet Addressed The CHA 2017 Disparity Study points out multiple recommendations in Section VII that impact DBE participation and access to the market Assessments relating to those impacts and the state of maturity in addressing the CHA recommendations should be considered when assessing the DBE goal Many of the CHA recommendation have not been adequately addressed at this point in time Some of the prime examples are listed below Increase Certification and Expertise ndash The Disparity Study as explained to us includes all minority- (MBE)

and women-owned (WBE) firms that could be readily identified that perform work within Washington State and that perform work within the NAICS code framework CHA developed to cover WSDOT project work During the various presentations relating to the Disparity Study WSDOT representatives said that outreach to currently non-certified MBE amp WBE firms has increased and that WSDOT aspires to bolster its list of certified firms in the future but this effort is just beginning and the success of the effort needs to be means tested against the broader population of MBE amp WBE firms included in the CHA base line evaluation As the Disparity Study uses a much broader population of MBE WBE contractors to arrive at its conclusions (both non-certified firms and firms too large for certification) it follows that the calculated DBE proposed goal is overstated to include capacity that does not currently exist within WSDOTrsquos certified DBE framework Unless OMWBE is experiencing sudden and unprecedented success in recruiting new MBEWBE firms the DBE goal should be adjusted downward to recognize that the ldquoready willing and ablerdquo contractors that WSDOT has certified is only a subset of the total MBEWBE contracting population used in the Disparity Study evaluation

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 3 of 6

Until the promised WSDOT outreach registration efforts result in a substantial increase in available certified DBE firms it is premature to count the entire population of minority- and women-owned contractors as available to participate in WSDOT contracting It is unreasonable for WSDOT to project availability capacity using the entire MBEWBE population when only its currently truncated list of certified firms is acceptable to count toward the DBE goal

A corollary to the Increase Certification and Expertise discussion above is that the calculation of the Base Figure evidently includes the broadest practical population of MBE and WBE firms identifiable (without a review of the CHA Master DBE Directory which has not been supplied prior to the close of the public comment period the scope of the directory cannot be ascertained) If this directory includes a large population of MBEWBE firms that are not certified or are too large to be certified then the Base Figure calculation should be adjusted to reflect that certified DBE firms are a fraction of the total MBEWBE firms used to arrive at the 19 suggested DBE goal With respect to the CHA Master Directory it is our understanding the WSDOT was not given the directory as part of its evaluation of the Disparity Study and it follows that it did not evaluate the proposed DBE goal in the context of the CHA Master DBE Directory In our opinion an informed decision on adjusting the CHA baseline goal calculation can only be done after an extensive evaluation of the CHA Master DBE Directory If this has not been done WSDOT has not exercised due diligence in evaluating the context and underpinnings of the CHA Disparity Study and a certified DBE Triennium goal proposal to the FHWA is premature Increase Contract ldquoUnbundlingrdquo ndash If this proposed strategy (suggested by the CHA Study) is undertaken

certified DBE Subcontractors currently available will be engaged as Prime Contractors and the value of their prime contracts will bolster the overall percentage of certified DBE contracting but a systematic effort and strategy to ldquounbundlerdquo has not been articulated by WSDOT The key question of how this effort can be accomplished without increased cost to the taxpayers and increased inconvenience for the traveling public As noted in the CHA study (page 129 final paragraph) ldquoUnbundling must be conducted however within the constraints of the need to ensure efficiency and limit cost to the taxpayersrdquo As of this writing no overarching strategy for further unbundling with proper accountability has been articulated by WSDOT to the DBE Advisory Group

Review Insurance and Experience Requirements ndash Impediments to certified DBE participation due to

necessary insurance and experience standards cannot be solved by the prime contracting community Unless and until WSDOT puts together programs to address the burden of the substantial risks shouldered by Prime Contractors on WSDOT contracts barriers for streamlined utilization of certified DBE firms will continue to exist These market driven barriers will continue to dampen the availability of certified DBE Subcontractors that are able to perform within WSDOTrsquos strict criteria without unduly transferring risk to the Prime Contractor

Better Partnering to Overcome DBE Failures to Perform ndash Prime Contractors are held fully responsible to maintain the project schedule and are subject to project liquidated damages even when they may be struggling to deal with Subcontractor performance issues It is well-established that replacing a certified ldquocondition of awardrdquo (COA) DBE Subcontractor is very onerous and likely very costly to the Prime Contractor Unfortunately the imposition of strict and often counter-productive commercially useful function (CUF) rules often compound this issue as Prime Contractors cannot help COA DBE Subcontractors work through capacity expertise or time-related issues that impact timely performance

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 4 of 6

WSDOT needs to be a much better partner in the process of dealing with under-performing or non-performing certified DBE Subcontractors The current standard operational procedure places all of the exposure for non-performance onto the Prime WSDOT does not have an equitable system to account for non-performing or under-performing certified DBE Subcontractors hired as a condition of award (COA)

Performance Information and Training ndash Commercially useful function rules (CUF) and the lack of clear benchmark definitions for good faith effort (GFE) standards remain barriers for improving accountability within the DBE system and in turn lead to distorted DBE participation rates These items remain amorphous due to lack of training or lack of historic information Chronic uncertainty exists regarding both of these items Until WSDOT changes and improves its approach to provide transparency and certainty for both the prime bidding amp subcontracting parties true certified DBE capacity will continue to be masked and the resultant higher subcontracting costs associated with a distorted marketplace will continue to be hidden

WAPA respectfully suggests that simply adding an ldquoEstimated DBE Subcontract Premiumrdquo line to the current DBE bid forms would help to establish benchmarks that could begin to be used to ldquomeans testrdquo good faith efforts If this information had been gathered over the last 20 years of the DBE program meaningful GFE standards could have been developed and could be in place today

An in-depth review of CUF standards would also provide clarity For instance it is unclear why force account items performed by certified DBEs are currently counted at only 50 of the value of the work How was this benchmark established Has it been reviewed since imposed Did it ldquosolverdquo whatever inequity WSDOT was trying to address Better clarity may lead to more expanded opportunities for certified DBE Subcontractors

Enhanced Supportive Services and Business Development Programs ndash Unless and until stronger programs of these types are shown to be effective in boosting certified DBE business development increased DBE participation due to stronger business acumen should not be relied upon when setting the new DBE goal

Does OMWBE have a reasonable expectation that future plans for enhanced and expanded programs will be more successful than those employed in the past Assuming that certified DBE Subcontractors will be better prepared to deal with the WSDOT contracting environment than in the past should not be relied upon to boost DBE participation goals Especially troubling were the multiple references within the CHA report highlighting that DBEs believe that the staff at OMWBE lack a deep knowledge about the highway construction industry (eg Study page 129 2nd paragraph) Does OMWBE have a path forward that will address this issue and thus improve supportive services impacts

Develop a Bonding and Financing Program for SBEs ndash This is completely outside of the prime contracting

communityrsquos scope of influence WSDOT must find a way to institute changes that both protect the taxpayer and help increase certified DBE bonding capacity and access to financing ndash very large hurtles To assume that these hurtles can effectively be overcome within the 2018 ndash 2020 time frame when they have been chromic issues for the past 20 plus years of DBE program development is not rational

A helpful innovation would be for WSDOT to underwrite performance and payment bonds for certified DBE firms or to create promote a system that helps certified DBE firms obtain private bonding Bridging the gap to address capital access and performance risks (bonding) must be championed by WSDOT

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 5 of 6

Base Figure Adjustment to Address Available Subcontract Volume and DBE Prime Contracts It is a fact that mid- to large-sized MBEWBE firms that compete both as Prime Contractors and as Subcontractors are not eligible to be OMWBE certified DBEs Further the current amount of contract unbundling for greater DBE access to WSDOT prime contracting (see below) accounts for a very low dollar volume of prime contracts performed by certified DBEs Finally by specification (WSDOT standard specification 1-081) Prime Contractors are obligated to perform 30 of the total volume of the work (less specialty work) or stated another way a maximum of 70 of the dollar volume on WSDOT projects is typically available to award to subcontractors These market dynamics are NOT addressed in the Disparity Study A responsible DBE goal made absent of these facts should not be implemented A reasonable adjustment to the proposed 19 DBE goal is presented below

bull The percent of WSDOT prime contracts awarded to certified DBE firms is likely less than 5 by total WSDOT

contract volume Assuming this approximation is valid (likely very conservative) then the amount of WSDOT contract work available to certified DBE firms via subcontracting should be adjusted to account for the factors outlined above The Base Figure (19) should be adjusted to recognize that a 70 maximum subcontractor participation is available (in the numerator) and to account for the assumed 5 certified DBE prime contracts in the denominator Reasonable Base Figure Adjustment 19 (proposed) x 70 subcontracts available divide 95 of Non-Certified DBEs as Prime Contract Volume = 190 x 0737 = 140 adjusted goal This is an adjustment based on the practical dynamics of the WSDOT contracting system and it represents a more realistic look at the true subcontract volume that is available for Prime Contractors to award to certified DBE firms

Conclusions

Until the items listed above are addressed and in place it is not reasonable to believe that DBE goals can be increased by nearly 163 (from 117 to 190) When the projected robust public works contracting market is appropriately considered the true availability of certified DBE Subcontractors for WSDOT contracts will be truncated due to demand across all public works sectors With multiple strong public works programs competing for a limited population of certified DBEs the ability to meet increased WSDOT DBE goals will be severely challenged Without very clear concise and transparent good faith effort rules the ability to address DBE goals that greatly overestimate true near term certified DBE capacity will result in non-attainment bid day chaos failures to perform andor rapidly increased pricing

The clear conclusion is that at this point in time under the current circumstances without effectively instituted new programs rules procedures that could enhance the certified DBE programrsquos overall effectiveness we believe that the DBE goal should remain at or near 12 As OMWBE documents and demonstrates its future successes in improving access and eliminating capacity barriers only then should the DBE goal be re-evaluated and increased

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 6 of 6

In closing please remember that it is rare that the contracting community is asked our opinion with respect to the WSDOTrsquos DBE policies and so this letter is somewhat a vehicle to highlight collective concerns It is our belief that the majority of the Prime Contractors in Washington state support the objective of creating a level playing field for ready willing and able DBEs

If the level playing field is not yet possible in the absence of the DBE program then the key is to set realistic goals that recognize reflect and address the hard realities and market dynamics imposed by WSDOTrsquos bedrock environment of awarding contracts to the lowest cost responsible and responsive Contractor

Respectfully submitted Washington Asphalt Pavement Association

David Gent Tom Gaetz Executive Director Senior Advisor

Attachment A ndash WSDOT Central Puget Sound Public Works Contracting Projection 2018 - 2022

Con

stru

ctio

n Pr

ojec

t Sta

rts

2018

-202

2S

ound

Tra

nsit

$22

6 B

SD

OT

$08

B

Tran

sit

amp O

ther

s$1

7 B

WS

DO

T$6

7 B

Por

t of

Sea

ttle

$15

B

TOTA

L$3

33

B

Source N

ov 1

9 2

017

pres

enta

tion

to W

APA

Ann

ual M

eetin

g

Attachment A

Work (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Dave Gent - WAPA [mailtodavegentasphaltwacom] Sent Thursday December 7 2017 144 PMTo Bayne Jackie ltBayneJwsdotwagovgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hi again Jackie Irsquom fine thanks and hope you are the same Interesting The Master DBE Directory is the basis for and integral to the conclusions of the DisparityStudy Is it not then part of the information needed to fully review and comment on the DisparityStudy Was it not provided by CHA to WSDOT for review We are trying to fully understand thestudy and if this directory was part of the study why would it need to be obtained by a publicrecords disclosure It should be in the public domain and not restricted from ease of access If you are sure that a public records request is needed Irsquoll start that process but we will need tonote that point of fact when we submit our public comments If you are able to reconsider please let me know Respectfully

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Thursday December 7 2017 126 PMTo Dave Gent - WAPA ltdavegentasphaltwacomgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hello Dave I hope you are doing well

That information would likely be obtained through a public disclosure request Best Regards Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Dave Gent - WAPA [mailtodavegentasphaltwacom] Sent Thursday December 7 2017 113 PMTo Bayne Jackie ltBayneJwsdotwagovgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Jackie Can you please provide an electronic file or provide a weblink for the Master DBE Directory thatColette Holt amp Associates developed for the WSDOT Disparity Study 2017 (first referred to on Page 8of the Disparity Study) I did not see a link to this Master DBE Directory within the study Thanks

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Friday October 27 2017 1118 AMTo Kenyon Wendy ltKenyonWwsdotwagovgt Adams E W ltewadamssystemsclcomgtAdekoyaAndrew ltandrewadekoyabccomgt AlyssaBalllegwagov Anindita Mitraltamitracrea-affiliatescomgt APRISeattlehotmailcom Armstrong CharlotteltCharlieAatgwagovgt Ato Apiafi Architects PLLC ltatoaatoapiaficomgt benzfanwaorgBerntsen Teresa (OMWBE) ltTeresaBomwbewagovgt Billingsley Andrealtbillinawsdotwagovgt Bramlet Erica ltEricaBramletlegwagovgt Brooks Julius

ltBrooksJwsdotwagovgt Brown Jason ltjbrownldccorpcomgt bwallacenwlaborersorgCamden Allison ltCamdenAwsdotwagovgt carlllivingstongmailcom Cerda OscarltCerdaOwsdotwagovgt Christopher Chris ltChristCwsdotwagovgt ckerneycaawagovdanplatinumbusinessgroupcom davegentasphaltwacom David BalltDavidsignsnowmillcreekcomgt Davis Khalia ltDavisKhwsdotwagovgt Davis RaShelle (GOVltrashelledavisgovwagovgt Dayton Jo ltDaytonJwsdotwagovgt ddhondtagcwacomDebbieDriverlegwagov Dennis ltdennisahlkiewitcomgt dmcleodnwlaborersorgdrart6651gmailcom Duncan Enid lthigradeincgmailcomgt EltonltEltonwashingtonstatetruckingcomgt eprincecaawagov flemosldccorpcomfmartineznwmtnmsdcorg geoffshookatkncom glovelady ltgloveladyexcelglovescomgtGrabow Katie ltkgrabowsystemsclcomgt Guilfucci Jackie ltJackieGuilfucciskanskacomgt HealyLinda ltHealyLwsdotwagovgt Higginbotham Breanne ltHigginBwsdotwagovgt HirscheyClaudia ltclaudiahirscheycomcastnetgt Holt Colette ltcoletteholtmwbelawcomgt Huff JohnltHuffJwsdotwagovgt Iniguezchawagov JacksonMaynardlegwagov Jimmy Matta(jmattaalcantarassoccom) ltjmattaalcantarassoccomgt kellywickergovwagov Key EarlltKeyEwsdotwagovgt Kirk Jon ltjkirkwhhnfscomgt Kris Purrier ltkpurrierhwageocomgtleewabuildingtradesorg lesliejonessoundtransitorg Liz Evans ltlevansagcwacomgt LopezErin lterinlopezdeswagovgt Martha Cerna ltMarthaPSLCCORGgt Martin-Arnold EdwinaltMartinEwsdotwagovgt Mary Lerdahl ltmarydbeelectricinccomgt McCarty Hannahlthannahmccartylegwagovgt Melissa L Boyles ltmelissaboylesmwbelawcomgt Metcalf KeithltMetcalKwsdotwagovgt michaelicapaawagov Michelle ltMichelleTTCC26netgt MillarRoger ltMillarRwsdotwagovgt Nakamura Jason ltjasonnakamura1-alliancecomgtNavarroLportseattleorg olliepmt-solutionscom pastorbanksesbctacomacom PatrickHughes ltphugheshughesgroupbizgt Petersen Jodi (FHWA) ltJodiPetersendotgovgtrabbottliunaorg rcarmsteadgmailcom ricemportseattleorg Riley D ltdrileylydigcomgtSeling ltSelingjpfranciscomgt sherryharrisergosynchcom Stell MellodyltStellMwsdotwagovgt terigobintulaliptribes-nsngov timwilliamfactorycom tinaterra-tdicom tkellyldccorpcom tomgaetzmsncom vcollinsacec-waorgverlenejazzmsncom Wang Albert ltWangAatgwagovgt Waugh GregltGregWMaxKuneyComgt Yates Henry ltYatesHWSDOTWAGOVgtCc Tom Gaetz lttomgaetzmsncomgt Dave Gent - WAPA ltdavegentasphaltwacomgt VanCollins ltvcollinsacec-waorggt Daniel Seydel II ltdanplatinumbusinessgroupcomgt MaynardJackson ltJacksonMaynardlegwagovgt Carl Livingston ltcarlllivingstongmailcomgt DonMcLeod ltdmcleodnwlaborersorggt JIMMY MATTA ltjimmymattamsncomgt Prince Ed(CAAA) lteprincecaawagovgt David DHondt ltddhondtagcwacomgt Irene Reyesltgloveladyexcelsupplycompanycomgt McDaniel Craig ltMcDaniCwsdotwagovgtsherryharrisergosynchcomSubject WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Good morning On Monday October 30th WSDOT will be releasing the proposed overall Federal HighwayAdministration Disadvantaged Business Enterprise goal attached for public comment throughDecember 15 2017 This overall DBE goal is based upon the recently completely DBE ProgramDisparity Study WSDOT is proposing a 19 percent overall DBE participation goal on Federal Highway

Administration-funded projects for federal fiscal years 2018 through 2020 DBE goals fortransportation projects that receive federal funds represent a percentage of the value of work inwhich minority- and women-owned businesses should participate Once finalized and submitted toFHWA early next year the goal will be effective through Sept 30 2020

The purpose of the DBE program is to create a level playing field for firms owned and operated bydisadvantaged individuals wanting to participate in federally assisted highway transit and aviationprograms The attached overall DBE goal is for FHWA funded projects WSDOT will be updating theFTA and FAA overall DBE goals in the near future

If you have any questions please contact Earl Key Director of the Office of Equal Opportunity at3607057091 or KeyEwsdotwagov Thank you Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

  • Proof-Of-Publicationpdf
    • Mediapdf
      • AGC
      • Daily Journal
      • Daily Medium
      • DBEGood
      • OMWBE
      • Seattle Medium
      • Tabor 100
      • The Chronicle
      • Tukwila
        • King County
          • Public-Comments-20180111pdf
            • 19 DBE Requirement(1)
            • AGC Comments on Proposed 10 Goad
            • Backstrom Curb amp Sidewalk
            • comments on WSDOT proposed DBE goal
            • Cowlitz County Public Works
            • DBE Contracting goals
            • DBE Goal
            • DBE Program Disparity Study
            • Disparity Study Comments from City of Spokane
            • FW_ WSDOT News - WSDOT seeks comments on propos
            • Proposed DBE Goals
            • RE_ DBE Contracting Goal Comments
            • Re_ DBE Goal Comments
            • Re_ Seydel Dan - WSDOT Disparity Study Present
            • Support for WSDOTs proposed DBE goal
            • Why we need mandatory goals
            • WSDOT DBE Goal - Comment in support
            • WSDOT Proposes DBE goal of 19
            • WSDOT propsed DBE Goals
            • WTS - Disparity Study Comment Letter

larr Halfway there SR 8 fish barrier removal reaches milestone New SR 26 traffic cameras available rarr

WSDOT seeks comments on proposed DBE contracting goal for highway projects

December 1 2017 | No Comments

WSDOT is seeking comments on proposed participation goals for Disadvantaged Business Enterprises on upcoming Federal Highway Administration contracts a Yakima meeting has also been added to the schedule Source WSDOT Permalink WSDOT seeks comments on proposed DBE contracting goal for highway projects

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Page 1 of 3WSDOT seeks comments on proposed DBE contracting goal for highway projects | Tukw

1112018httptukwilatowingcom20171201wsdot-seeks-comments-on-proposed-dbe-contracting

From Liz EvansTo Bayne JackieSubject AGC Comments on Proposed 10 GoadDate Tuesday December 12 2017 50314 PMAttachments WSDOT Proposed Goal - AGC Comments FINALdocx

Hi there Jackie Attached are AGCrsquos comments on WSDOTs proposed 19 goal We will also be mailing you a copy Thanks for the opportunity to comment and we hope you find it helpful Regards Liz Liz Evans CAE Northern District ManagerAGC OF WASHINGTONTel 3602238757 | wwwagcwacom JOIN US for the 2018 AGC of Washington Annual Convention amp Technology Expo Jan 26

CUsersmwillmsPicturesInland AGCLogo_RGB_Half_5in

December 12 2017

Page 5

December 12 2017

VIA EMAIL amp US MAIL

Ms Jackie Bayne Policy amp Reporting Manager

Washington State Dept of Transportation

210 Maple Park Ave SE

PO Box 47314

Olympia WA 98504

RE WSDOT Proposed FHWA Triennium Disadvantaged Business Enterprise Goal

Dear Ms Bayne

This letter summarizes the views of the Associated General Contractors of Washington and Inland Northwest Associated General Contractorsrsquo (hereafter referred to collectively as AGC) regarding the Washington State Department of Transportationrsquos (WSDOT) recently proposed FHWA Triennium Disadvantaged Business Enterprise (DBE) Goal (the ldquoProposed Goalrdquo) AGC shares WSDOTrsquos commitment to continue the promotion of DBE firms but AGC is concerned the Proposed Goal which is a significant increase from the previous goal and actual utilization may have unintended consequences and could impose significant burdens on both prime contractors and DBE contractors alike AGC requests WSDOT reconsider its Proposed Goal and adjust the Proposed Goal to account for inevitable availability and capability issues including the lack of a formal retraction of the non-minority woman owned business waiver that makes up over half of the Proposed Goal Implementing an unachievable goal will only be to the detriment of the DBE program

1 AGCrsquos Membersrsquo Interest in WSDOTrsquos Proposed Goal

Together AGC of Washington and Inland Northwest AGC represent and serve the commercial industrial and highway construction industry These professional associations of commercial contractors are comprised of more than 900 members who have joined together to enhance the performance of their industry and build a better climate for construction operators many of which are small and closely held businesses

Like WSDOT AGC is firmly committed to the principals of equal opportunity and promoting efforts to ensure minority women and veteran owned businesses are properly represented In both its political advocacy and membership programs AGC has demonstrated its commitment to increasing the representation of disadvantaged groups in the construction industry as both workers and owners of firms For AGC this is both an issue of principles and a practical one The construction industry as a whole is facing a critical shortage of workers and it is imperative that the industry attract new participants Among AGCrsquos activities demonstrating this commitment are the following

middot AGC has an ongoing ldquoContractor Exchangerdquo program through which small minority- and women-owned subcontractors are offered one-on-one networking opportunities with established general contractors

middot The AGC Education Foundation provides financial support to construction-related programs in K-12 schools and conducts outreach specifically targeted at low income disadvantaged and female students

middot More than 2500 students most from inner-city schools participate in annual AGC-sponsored Construction Career Days in King Pierce and Spokane Counties

middot AGC supports the Pre-Apprenticeship Construction Training (PACT) program at Seattle Vocational Institute This program is focused on preparing underrepresented communities to be highly qualified applicants and successful apprentices in the construction trades

middot AGC is a sponsor of the Turner School a training course for minority- and women-business owners in the construction industry

middot AGC supports the National Association of Women in Construction (NAWIC) which provides professional development and other services to its members

middot AGC routinely supports legislative efforts aimed at supporting small businesses and encouraging small business participation

middot AGC recently formed a Diversity and Inclusion Committee comprised of both prime and DBE participants The purposed of the committee is to expand opportunities for DBE members and to help AGC consider diversity in decision-making Recently AGC approved a deeply discounted introductory dues structure for certified DBE members

middot AGC is a WSDOT partner on the new mentorproteacutegeacute program

AGCrsquos experience has been that the most effective approach is to help make emerging businesses successful through outreach training and public policies that will grow their capacitymdashnot by imposing mandates without clear evidence as to the mandates feasibility

2 WSDOTrsquos Proposed Goalrsquos Impacts To The Construction Industry

WSDOTrsquos Proposed Goal is 190 The Proposed Goal is based upon the recent Collete Holt amp Associates (CHA) Disparity Study released in 2017 With respect to availability the Disparity Study reports the following weighted availability for FHWA-Funded projects

Thus the 190 goal factors in Black Hispanic Asian Native American and White Women into its availability As indicated however this 19 goal raises a number of concerns

a WSDOTrsquos 19 Proposed Goal Represents a Significant Increase Without Concrete Evidence of Available And Capable DBE Firms

First WSDOTrsquos Proposal Goal of 190 represents a significant increase as compared to actual DBE participation (141 in 2014 117 in 2015 and 151 in 2016) as well as the last FHWA proposed goal of 116 for 2014-2018 See WSDOTrsquos Proposed Goal and Interim FHWA Overall DBE Goal Methodology FFY 2014-2018 The Proposed Goal is 74 more than the last goal which represents a 638 increase and a 52 increase over the average actual utilization for 2014-2016 While Contractors were exceeding the previous 116 goal this is primarily based on the fact that WSDOT previously requested a waiver to consider non-women-owned businesses and the waiver was not granted and effective until June 2017 (meaning that for 2014-2016 women were counted towards race-conscious goals and inevitably a higher overall percentage of DBE firms were utilized)

Contractors struggle to meet present DBE goals due to the relatively low availability of experienced and certified DBE firms By increasing the goal WSDOT is understandably trying to increase the participation of underrepresented firms Drastically increasing the goals (by over 5 of actual utilization) without concrete evidence that there is sufficient availability andor capability of such firms however will have the opposite effect Notably this lack of availability and capacity of DBE firms was discussed in detail in the Disparity Study For example the CHA Disparity Study notes a number of concerns of DBE firms while technically ldquoavailablerdquo with respect to the goal percentages are unable to meet the requirements necessary to fulfill the contract including purchasing the equipment necessary having available labor and ability to meet insurance and financing requirements Thus while there may be ldquoavailablerdquo firms there is not clear evidence (and if fact evidence to the contrary) that those available firms are capable and available to perform the majority of the FHWA-Funded contracts let by WSDOT

An additional example affecting DBE capability and availability that is not factored into the CHA Disparity Study or WSDOTrsquos Proposed GOAL is DBE ability to enter into Project Labor Agreements (ldquoPLAsrdquo) WSDOT has indicated their interest in pursuing a PLA AGC Members have raised concerns based on repeated experiences that many DBE firms due to the administrative and cost impacts refuse to enter into PLAs precluding those firms from performing certain work or increasing costs Again this lack of ability (or refusal) to perform should also be factored into WSDOTrsquos Proposed Goal which is not currently the case

b The Proposed Goal Does Not Account For The Current Non-Minority Woman Owned Business Waiver Still In Place

Second despite the significant increase WSDOT does not account for the current waiver of non-minority women owned businesses that remains in place As noted in WSDOTrsquos proposal comments WSDOT previously sought and received a waiver of the regulation that White females as a group are presumptively disadvantaged This waiver was heavily criticized by many including AGC and the results of the most recent CHA Disparity Study confirmed that White females are presumptively disadvantaged and do not enjoy a level playing field for USDOT-assisted contracts Therefore the CHA Disparity Study recommends that this group be returned to the status of goal credit eligibility WSDOT has sought a recession of the waiver but has not yet to our knowledge received a rescission of the waiver Nevertheless the 19 Proposed Goal still includes White women In fact of the 19 availability percentage White women represent 103 (over half) Accordingly for WSDOT to proceed with the 19 goal WSDOT must receive the rescission of the waiver for this goal to be even remotely possible to achieve If the rescission is not received the Proposed Goal must be adjusted

C The Proposed Goal Does Not Account For Availability Differences Across The State

Third the Proposed Goal does not account for availability difference across the state Eastern Washington contractors with an even scarcer pool of available and qualified DBE firms in the area as is the case now will be forced to subcontract to Western Washington firms paying transportation and per diem premiums for such work The CHA Disparity Study again provides numerous excerpts of anecdotal evidence demonstrating that the goals in Eastern Washington are too high A few of the contractor comments on the topic are as follows

When you apply those same goals to a different geographic region a different project site for a large firm to meet those goals is difficult because theres not necessarily the expertise in parts of the project that were submitting on

Theres very few DBEs over here [in Eastern Washington] Next year theres going to be even more work over here What are we going to do with all these goals We always meet the goals like I said youve got three four DBEs over here to do all the work and then they cant perform

There are just no [minority-owned] DBEs available in eastern Washington

See CHA Disparity Study at p 54 Again these are factors that should be taken into account in developing the Proposed Goal or at the very least its application WSDOTrsquos Proposed Goal however is silent as to this significant issue

When the lack of available firms with the capacity to perform significant DBE projects is coupled with the increased goals the price of WSDOT contracts will inevitably increase to the significant detriment of Washington taxpayers and the public entities Inevitably with a lack of available qualified firms the lack of competition will become evident and small qualifying contractorsrsquo prices will increase due to supply and demand principles as they become selected for projects and less able to take on additional work These increased DBE contract values will be passed on to the public agency and taxpayers which translates into fewer dollars available for the sorely needed and promised infrastructure upgrades In addition the instance of bid protests will inevitably increase potentially delaying projects and further diverting agency resources from badly needed infrastructure upgrades to resolving unnecessary disputes or rebidding the projects altogether

Finally faced with such drastic and potentially impossible requirements if adjustments are not made contractors may focus more on demonstrating good faith efforts Both a contractor who meets the required goal and a contractor that demonstrates good faith efforts are eligible for award It is likely that the contractor relying upon good faith effortsmdashwho will have a lower price than the other contractor who sacrificed price to actually meet the goalmdashwill be selected by the public agency This outcome will erode the total percentage participation of eligible firms and would clearly be inapposite of WSDOTrsquos intentions

3 Conclusion and Request

AGCrsquos members have asserted these and multiple other concerns Implementing an increased goal across the state and all contracts without clear evidence of available DBEs capable of performing the work and meeting the project requirements will have significant and far-reaching impacts on the construction industry many of which work against the aim of the Proposed Goal itself AGC requests WSDOT reconsider its Proposed Goal of 19 and make adjustments to account for the capability of DBE firms the lack of a rescission of the non-minority waiver and the lack of available DBE firms in parts of the state This Proposed Goal and its impacts on the construction industry will be irrevocable and will be to the detriment of taxpayers It is prudent to address these adjustments before implementing the Proposed Goal

Very truly yours

David DrsquoHondtCheryl Stewart Executive Vice President AGC of WashingtonExecutive Director Inland Northwest AGC

AGC of Washington bull 410 11th Avenue SE 203 Olympia WA 98501

Inland Northwest AGC bull 4935 E Trent Avenue Spokane WA 99212

image3jpeg

image1png

image2emf

image4png

image5jpeg

From Steve SmithTo WSDOT Disparity StudyCc Bayne JackieSubject 19 DBE RequirementDate Thursday December 14 2017 31947 PMAttachments DBE List and NAICS Listingpdf

Disparity Committee I recently read in The Daily Journal of Commerce that WSDOT plans to adopt a 19 DBEstandard for all FHWA funded projects early next year Our company S amp K Painting Inc is abridge painting company which is based in and works exclusively in Oregon and Washington Ihave been the owner of this firm since 1978 when it was first established My concerns aboutthe proposed 19 DBE requirement is as follows 1 There are very few opportunities for subcontract work on bridge repaint jobs These jobsare usually limited to cleaning and painting the bridge The only other facet of the project istraffic control which is almost always 3 or less of the project total cost The traffic controldoes provide a very good subcontracting opportunity 2 The NAISC code of 238320 includes bridge painting but also includes house painting wallcovering rust proofing etc which have almost no similarities to bridge painting When thiscode is used to determine the number of available firms (DBE or otherwise) that are availablefor bridge painting project this badly skews the numbers I would suggest that bridge paintingcontractors make up less than 5 of all firms in NAISC code 238320 3 If future WSDOT bridge painting projects require a 19 DBE participation A The qualified pool of DBE subcontractors available to submit pricing on any facetother than traffic control will be very limited I reviewed a list of 19 certified DBE firms listedunder painting at the WSDOT website and only recognized one firm from past projects B The number of prime bidders and competition will fall The state will incur highercosts due to this fact C Prime bidders will be forced to subcontract unqualified contractors just to be eligiblefor contract awards This will likely reduce the quality of the finished project Thank you for considering my concerns I may not have verbalized my thoughts as well as Iwould have liked but I have been in this business for almost 40 years and truly believe what Ihave said Sincerely

Steve Smith President

SampK Painting incP O BOx 390clacKamaS OregOn 97015Phone (503) 557-5544Fax (503) 557-5566Cell (503) 260-5280Steveskpaintingcom

From Lei WuTo Bayne JackieSubject comments on WSDOT proposed DBE goalDate Thursday December 14 2017 94925 PM

To Whom It May Concern

Below is my comments

The WSDOT recommended DBE Goal for FHWA contracts of 190 is a small andimportant increase that can further achieve equity in WSDOTFHWA contracting I am insupport of the 19 DBE Goal

I also want to express my appreciation for the thoroughness of the WSDOT Disparity studyand how the study disclosed the disparity in WSDOT contracts that do not have a DBE orWBE goal ndash further reinforcing that all women-owned firms and minority owned firms faceequity issues

I remain concerned with the methodology required by the Code of Federal Regulations andcase law because of the dependence on the availability of firms in the calculation Anunintended consequence of removing either gender or race from the goal is that many of thesefirms would go out of business the availability decreases and the formula then results in asmaller DBE goal

Thanks

Lei

Lei Wu PE AICP

Principal CSL Consulting

LeiWucsl-consultingnet

(425)562-6275

From Stephanie SimpkinsTo WSDOT Disparity StudySubject DBE Contracting goalsDate Wednesday November 29 2017 20259 PM

My name is Stephanie Simpkins and I own North Star Enterprises It is a large womanowned traffic control company located in Spokane Washington My mother founded thecompany in 1984 and I have worked in this family owned business most of my life Ipurchased the business from her in 2013 and have been sole owner since then My company thrived under the Disadvantaged Business Enterprise (DBE) Programimplemented by Washington Department of Transportation and administrated by United StatesDepartment of Transportation What started as a small business with one truck and a fewemployees has grown over the years to be one of the largest traffic control companies in thestate and employee countless people every construction season It has not been an easy roadover the years being a woman in the construction industry never is and it is hard to say wherewe would be now if it werenrsquot for the assistance of the DBE program As you know in June of 2017 majority women were removed from the DBE program basedon a disparity study conducted in 2012 On March 2014 Washington Department ofTransportation requested a wavier to remove majority women from the DBE program Thishas had an immediate and drastic impact on my business and all who work for me From themoment the waiver was approved and my company could no longer be used as a condition ofaward at bid time I began losing work Most recently the 2018 North Central Region ChipSeal which we have worked on for the last 10 years This contract provides work forapproximately 40 employees for the entire construction season I have already been told byseveral contractors that with such a high UDBE goal they wont even be able to consider mefor this project This loss along with several other smaller contracts to date are painting avery dismal future for my business With all of this turmoil surrounding the future of my business I find it frustrating to say theleast that WSDOT has chopped me off at the legs by not allowing my firm to count for theCOA but can use the little participation I may still contribute to help them reach their overallstate goal How is this fair If the contractors canrsquot utilize my business than neither shouldWSDOT As far as setting future state DBE contracting goals it looks as if the bar will beraised once again all while excluding the largest subset of useable DBErdquoS To me raising theoverall state goal at this time (which is already challenging to meet) with women DBErsquosexcluded from the program seems horribly ill timed

From Karen R BannishTo Bayne JackieSubject DBE GoalDate Tuesday December 5 2017 32549 PM

Hello Jackie ndash thank you for the webinar today concerning the proposed Overall DisadvantagedBusiness Enterprise Goal for the Federal Highway Administration I understanding the DisparityStudy much better now and checked the document you mentioned on the WSDOT website Pacific County is located in the Southwest corner of the State of Washington The tip of the LongBeach Peninsula would be 2 frac12 hours from Interstate 5 Our federal work primarily includes strictlyoverlay projects with 12 or fewer items of work included in the contract When bidding a project(our contracts are usually less than $500000) we sometimes received a single bid from the process Due to our proximity and the small cost for the work it is difficult to entice DBE participation Thereare simply no items of work that can be performed Having a mandatory DBE goal placed upon theproject in a rural area simply to meet the disparity guidelines will only increase the cost of theproject We feel the goals should be set in balance with the cost of the project and the items of work and notsimply directed to meet the overall goal

Karen BannishSenior Engineering TechnicianPacific County Department of Public Works211 North Commercial StreetRaymond WA 98577(360) 875-9368

From Dawn EgbertTo Bayne JackieSubject DBE Program Disparity StudyDate Tuesday December 5 2017 23825 PM

Hi JackieThank you for the great information on the call today You talked about the small works rosterbriefly We had a conversation in our office today about small contractors who are signed up on thePort of Vancouverrsquos small works roster Our team has had opportunity to talk to some of thecompanies on our roster who are women owned or minority owned businesses but they arenrsquotsigned up as a DBE firm When asked about that theyrsquove mentioned that they donrsquot want to fill outthe additional paperwork required to obtain the certification as a DBE As for the DBE goal at 19 it doesnrsquot seem to present an issue for the majority of our projects ndashespecially those where we would apply FHWA funds if granted However if we did happen to have aproject that didnrsquot include classifications of work where DBE certified participants are availablewould there still be an exception or a good faith efforts clause Thanks again for your time Dawn EgbertProcurement Services Manager3103 NW Lower River Road Vancouver WA 98660Direct 3609921102 | Cell 360448-9867 | Main 3606933611 | Fax 360735-1565degbertportvanusacom | wwwportvanusacom | available port properties Leadership | Stewardship | Partnership

From Feist MarleneTo WSDOT Disparity StudyCc Simmons Scott M Twohig KyleSubject Disparity Study Comments from City of SpokaneDate Friday December 15 2017 52226 PMAttachments image010png

image011pngimage012png

December 15 2017 Jackie BaynePolicy amp Reporting ManagerOffice of Equal OpportunityWashington State Department of TransportationPO Box 47314Olympia WA 98504-7314 RE Proposed DBE Contracting Goal for Highway Projects Dear Ms Bayne The City of Spokane would like to provide comments related to proposed DisadvantagedBusiness Enterprise Goal for Federal Highway Administration (FHWA) contracts by theWashington State Department of Transportation (WSDOT) Office of Equal Opportunity Manyof our projects receive funding from FHWA and as such the proposed new goals areapplicable to City work The City is supportive of the programrsquos purposemdashldquoto create a level playing field for firmsowned and operated by disadvantaged individuals wanting to participate in federally assistedhighway transit or aviation programsrdquo However the City is concerned about the ability to achieve the proposed utilization rate of upto 19 percent for DBEs in Eastern Washington considering the low number of DBEs in ourregion and the record construction under way in the City and in our region WSDOTrsquos DBE Program Disparity Study notes ldquoContractors in Eastern Washington repeatedlyreported that the goals on projects in their area are too highrdquo The Inland NorthwestAssociated General Contractors group notes that only about 12 DBEs in construction fields areavailable in the greater Spokane area Meanwhile the City has performed record construction in each of the last three years withproject totals hovering around $100 million Our City work has been bolstered by anaggressive program to improve water quality in the Spokane River Our local school districtsand our neighboring jurisdictions also have aggressive construction programs right now

Additionally we expect WSDOTrsquos work in this region to accelerate as North Spokane Corridor(NSC) construction proceeds At times our area is reaching the limits overall of our contractingcommunity the City has worked to release its projects in the first quarter of the year as muchas possible to lock in contractors and receive better pricing The capacity of existing DBEs in our region simply cannot meet that current high demand Some DBE firms are tempted to agree to more work in these times but we have found that insome cases DBEs have stretched themselves too thin On two recent City projects generalcontractors were unable to meet DBE goals as a result of DBE firms that couldnrsquot fulfill theircommitments for providing personnel or equipment It also seems implausible to expect DBEs from the West Side to mobilize teams to work on Cityof Spokane projects in large numbers In fact the Disparity Studyrsquos author responded at arecent meeting on this topic that a DBE from the West Side only very rarely completes workon the East Side of the state We would also be concerned about moving the good-paying jobs that construction providesoutside of our region The Cityrsquos median household income is $44350 considerably lower than theState of Washington MHI of $64129 and the Seattle MHI of $77351 Our leaders are working tocreate good-paying jobs for our citizens not export them to an already wealthier part of the state Additionally these projects are also funded with local dollars and our citizens expect their money toput their neighbors to work With the above considered the City is seeking

middot DBE goals for the 2018-2020 compliance period for Eastern Washington that arereflective of the current availability of DBE firms in our region

middot The re-inclusion of non-minority women owned DBEs in achieving DBE goals InSpokane non-minority women owned DBEs make up the majority of the availableDBEs And current information shows that women in Spokane overall still lag behindmen in opportunities and wages The Cityrsquos own ldquoGender and Racial Equityrdquo reportfrom 2016 noted that overall working women earned 783 percent of the earnings ofworking men in 2014 down from 827 percent in 2009 We need to lift up all women

middot The development of WSDOT programs to encourage the growth of existing andnew DBEs who can be used on street and highway projects We are encouraged by theproposed mentorproteacutegeacute program to increase the number and capacity of DBEs inEastern Washington Programs that address other barriers such as assistance withcompleting documentation or access to bonding capacity also could aid growth ofDBEs

middot The ability for WSDOT to adjust goals on a project if a selected DBE is unable tocomplete its commitments on a project This would help enable our contractors totake a chance on a new or inexperienced DBE to complete work

middot Recognition of local programs that strive to increase diversity in the work force Forexample the City operates a robust apprenticeship program that requires 15 percentof the labor hours on public works jobs greater than $600000 to be performed byapprentices The apprentice programs in our region are stepping up recruitmentefforts and are specifically seeking to recruit more youth women and minorities intoapprentice slots

As we seek to achieve the goal of increasing participation in street and highway constructionby companies owned by disadvantaged individuals we must also acknowledge that businessdevelopment and growth happens over time We must lay the groundwork now to build abase of DBEs that can help us achieve higher utilization goals over time Sincerely Marlene FeistDirector of Strategic DevelopmentPublic Works amp UtilitiesCity of Spokane

Marlene Feist | City of Spokane | Public Works Director of Strategic Development5096256505 | cell 5097109214 | mfeistspokanecityorg | spokanecityorg

From Hall MattTo WSDOT Disparity StudySubject FW WSDOT News - WSDOT seeks comments on proposed DBE contracting goal for highway projectsDate Friday December 15 2017 11956 PMAttachments WSDOT proposed DBE goal through 2020pdf

From Hall Matt Sent Friday December 15 2017 117 PMTo BayneJwsdotwagovCc Keniston Rick (KenistRwsdotwagov) MolyneKwsdotwagov SusanWilsonclarkwagovSubject WSDOT News - WSDOT seeks comments on proposed DBE contracting goal for highwayprojects Hello Jackie Please see our comments attached regarding the WSDOT proposed DBE goals Thanks for the opportunity to provide comments Matt HallClark County Public Works Washington State Department of Transportation ndash NEWSHeadquarters ndash 310 Maple Park Avenue SE ndash Olympia WA 98504-7314 ndash 360 705-7000 FOR IMMEDIATE RELEASEOct 30 2017 Contact Jackie Bayne Office of Equal Opportunity 360 705-7084

WSDOT seeks comments on proposed DBEcontracting goal for highway projectsComments accepted through Dec 15OLYMPIA ndash Contractors trade and labor organizations small and disadvantaged businessesand all others who may be interested in working with the Washington State Department ofTransportation are invited to comment on the agencyrsquos proposed Disadvantaged BusinessEnterprise goal for Federal Highway Administration contractsDBE goals for transportation projects that receive federal funds represent a percentage of thevalue of work in which minority- and women-owned businesses should participate WSDOTis proposing a 19 percent overall DBE participation goal on Federal Highway Administration-funded projects for federal fiscal years 2018 through 2020Once submitted to FHWA early next year the goal will be effective through Sept 30 2020The purpose of the DBE program is to create a level playing field for firms owned andoperated by disadvantaged individuals wanting to participate in federally assisted highwaytransit and aviation programsConnecting with communitiesWSDOT will host a series of public meetings to provide opportunities for individuals tocomment in person

Spokane

2 ndash 4 pm Tuesday Nov 28WSDOT Eastern Region Headquarters2714 N Mayfair St Spokane

Vancouver

2 ndash 4 pm Wednesday Nov 29WSDOT Vancouver Headquarters11018 NE 51st Circle Vancouver

Seattle

2 ndash 4 pm Thursday Dec 7WSDOT Northwest Region Headquarters15700 Dayton Ave N Shoreline

Other ways to provide commentThose who are unable to attend one of the meetings can participate in a no-cost webinar from230 ndash 430 pm Tuesday Dec 5 Registration for the webinar is required Those interested inparticipating should email DisparityStudywsdotwagovWritten comments can also be submitted by mail or emailJackie Bayne Policy amp Reporting ManagerWashington State Department of TransportationOffice of Equal OpportunityPO Box 47314Olympia WA 98504-7314DisparityStudywsdotwagovDocuments detailing the methodology used for determining the FHWA DBE goals areavailable for review at all WSDOT region headquarters offices and at the TransportationBuilding 310 Maple Park Ave SE Olympia They are also available online atwwwwsdotwagovequalopportunityWSDOT will consider all written comments received through Friday Dec 15 2017 Hyperlinks within this release

WSDOT Region offices wwwwsdotwagovContactofficelocationhtmregion

WSDOT keeps people businesses and the economy moving by operating and improving the statestransportation systems To learn more about what were doing go to wwwwsdotwagovnews forpictures videos news and blogs Real time traffic information is available at wwwwsdotcomtraffic or bydialing 511 Americans with Disabilities Act (ADA) InformationAccommodation requests for people with disabilities can be made by contacting the WSDOTDiversityADA Affairs team at wsdotadawsdotwagov or by calling toll-free 855-362-4ADA (4232)Persons who are deaf or hard of hearing may make a request by calling the Washington State Relay at711 Title VI Statement to Public It is WSDOTrsquos policy to assure that no person shall on the grounds ofrace color national origin or sex as provided by Title VI of the Civil Rights Act of 1964 be excluded fromparticipation in be denied the benefits of or be otherwise discriminated against under any of its federallyfunded programs and activities Any person who believes his or her Title VI protection has been violatedmay file a complaint with WSDOTrsquos Office of Equal Opportunity For additional information regarding Title

VI complaint procedures andor information regarding our non-discrimination obligations please contactOEOrsquos Title VI Coordinator at 360-705-7090 To unsubscribe to WSDOT media releases please reply and type REMOVE in the subject line

This e-mail and related attachments and any response may be subject to public disclosure under state law

From Cochrane EmilieTo WSDOT Disparity StudyCc Eugenis Susan Cowlitz Co Public Works - Brad BastinSubject Proposed DBE GoalsDate Thursday December 14 2017 85006 AMAttachments image002png

DBE Goals - Commentspdf

Please see the attached letter with comments regarding the proposed DBE Goals Ahard copy will be sent out today

Thanks

Emilie CochraneCowlitz County Public Works1600 ndash 13th Avenue SKelso WA 98626360-577-3030 ext 6523

From Michelle WolcottTo Bayne JackieCc Robideau Christopher LSubject RE DBE Contracting Goal CommentsDate Tuesday November 7 2017 65448 AMAttachments image001png

Thank you JackieWhat a relief to know that we have been heard and are not the only small business facing thisstruggle Your email is comforting

Yes you can provide us with additional assistanceLet me introduce my boss and Senior Vice President of Red Plains Professional Chris Robideau

Chris will be your contact from here since I will be leaving the company November 17th As a WA DBE we are ldquoeligible for limited DBE Support Services (SS) funding when funds becomeavailablerdquo When will this happen And are we registered or on a list to receive fundingIs the WSDOT ICR Training a prerequisite for the funding Or just helpful knowledge

Thank you for your time Jackie I will follow through with the training

Michelle Wolcott EIT Quality Control Engineer

2103 NE 129th Street Suite 201 Vancouver WA 98686 Office (360) 448-7999 Fax (360) 258-0274

wwwred-plainscom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Monday November 6 2017 332 PMTo Michelle Wolcott ltMichelleWolcottred-plainscomgtSubject RE DBE Contracting Goal Comments

Hi Michelle

Thank you for your interest in doing business with WSDOT I apologize for the lack of informationyou have come up against in your attempts to attain access to WSDOT ICR program

As you may well know WSDOT has recently completed a state wide agency specific diversity studyAnecdotal comments submitted with the study concur with your experience Not only did somerespondents find it difficult to become prequalified they also commented that the required indirectrate of 110 percent is too low to be profitable These requirements are currently under advisementby WSDOT and new DBE program requirements are currently in the process of seeking public input

As you are an OMWBE certified DBE in Washington State you will be eligible for limited DBE SupportServices (SS) funding when these funds become available At that time funds may become availableto assist you in your struggle to attain ICR eligibility Here is a link to WSDOTrsquos Indirect Cost RateTraining httpswwwwsdotwagovAuditICRTraininghtm If you would like me to find additionaltraining or information please let me know

If I can provide additional assistance of information please let me know

Best Regards

Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Michelle Wolcott [mailtoMichelleWolcottred-plainscom] Sent Tuesday October 31 2017 835 AMTo WSDOT Disparity Study ltDisparityStudyWSDOTWAGOVgtSubject DBE Contracting Goal Comments

HelloI have been in contact with WSDOT for 6 months sharing my disparaging story of beinga small DBE unable to submit SOQs for projects requiring a WSDOT Audited IndirectCost Rate Approval We do not have an in-house accountant and our outsideaccountant has explained to get all the paperwork together for WSDOT would take 40hours of work $9000 annually We cannot justify this cost to submit on a project thatwe may not acquire We have been directed to seek financial assistance from WSDOT Federal SBA andWashington State Office for Women and Minority Owned Enterprises all of whichprovided negative responses

As a DBE business in 11 states we are supporting the 19 incentive for federallyfunded contracts but we are frustrated in the fact that we will not be one of the luckyfew to participateWe have been in business 20 years From our Vancouver Washington office our clientsare the Native American tribes across the country with all contracts federally funded This summer alone the WSDOT ICR Approval has squashed our ability to submit on twoprojects that we were perfectly qualified to performI have attached previous emails to show a sample of who I have been dealing with

Thank you

Michelle Wolcott EIT Quality Control Engineer

ltimage001pnggt

2103 NE 129th Street Suite 201 Vancouver WA 98686 Office (360) 448-7999 Fax (360) 258-0274 wwwred-plainscom

From Michelle Wolcott Sent Monday July 10 2017 954 AMTo Harvey Schatzie ltHarveySwsdotwagovgtSubject RE WSDOT Indirect Cost Rate Process

Good Morning Schatzie

This is Michelle Wolcott from Red We spoke Friday June 30th about the ICRprocess and you were very encouraging I relayed the information to my boss who ishere in Vancouver then he shared with the president bookkeeper and our accountantin Oklahoma We had FAR compliance with Oklahoma DOT in 2015 so we are noteligible for the Safe Harbor Program Our account said our timekeeping system doesnot breakdown the hours and pay in the format WSDOT wants to have it presented andto get the documents in order would take the CPA and an assistant $9000 in paidhours of work It turns out this would have to be annually The other option is to hirean outside CPA firm to do the audit for us at $20000 annually

Our president said in the past we received funding assistance from the Stateof Oklahoma to get our ICR approval Does WSDOT offer any financial assistance for small businesses to reach compliance We are also a DBE in WA I have requested the same information from WA PTAC at theVancouver Chamber of Commerce and from WA Office of Minority and Women OwnedBusiness Enterprises and they both said there was nothing but suggested to askWSDOTThank you for your helpMichelle Wolcott EIT

Hello Michelle sorry but I am not aware of any grants But I was looking at this andthere is a POC at the bottom you may try to discuss the audit issuesHollyHolly BoehmeBusiness Opportunity Specialist | 8(a) Business Development ProgramUS Small Business Administration bull Seattle District Office

Hello Michelle -

Thank you for your email Im not aware of any funding available for thispurpose but do agree its quite a bit for a DBE firm to have as an expense Mostof the firms I work with do a lot more work on the Oregon side so perhaps thereare programs available that I just havent heard of Im copying my colleagueHoly Boehme in our Seattle District Office to see if they are aware of any suchassistance

Holly might there be some small business incubators or other resources availablein WA to help a small firm with the expense of getting a WSDOT AuditedIndirect Cost Rate approval Please reply all with anything you may have

Thank you

Yuri Yoshida Dyson Business Opportunity SpecialistUS SMALL BUSINESS ADMINISTRATION Portland District OfficePhone 503-326-6692 Fax 202-292-3872 wwwsbagovor

From Troy HalbergTo Bayne JackieSubject Re DBE Goal CommentsDate Wednesday December 13 2017 35533 PM

JackieToday was another example of why the goals should not be raised There were 2 jobs which Iwas low on and did not get due to the high goals This is exactly what will happen when thegoals get raised The first job was the 9180 Anacortes Ferry Paving Northeast Electric $244924 and UDBE $318000 Second job was the 9172 SR 9 East Junction Job Northeast Electric $68503 and UDBE $76300

Does this seem like a good way to spend the tax payer money I do not see how we are tosurvive if the goals get to 21

Thanks

Troy HalbergOffice360-225-7004Cell360-931-3990Fax360-225-7001

On Thu Nov 30 2017 at 1131 AM Bayne Jackie ltBayneJwsdotwagovgt wrote

Good Morning Troy

Thank you for taking the time to provide us with your experiences with the DBE Program TheWashington State Department of Transportation takes the public involvement process veryseriously and your comments will be taken into consideration prior to a final decision regardingthe overall DBE program goal

If I can be of further assistance please let me know

Best Regards

Jackie Bayne

Policy and Reporting Manager

WSDOT Office of Equal Opportunity

Work (360) 705-7084

Cell (360) 338-5783

BayneJwsdotwagov

From Troy Halberg [mailtotroyhnellcnet] Sent Wednesday November 29 2017 144 PMTo WSDOT Disparity Study ltDisparityStudyWSDOTWAGOVgtSubject DBE Goal Comments

If these goals are to be set that high this would make us as a non DBE small contractor at amajor disadvantage With these high of goals this is like handing all of the DBE electricalcontractors every job These general contractors will have no option but to use thembecause of the goals This should not go into effect We have been low on several jobs in thepast and have not gotten them do to the goals being 18 When this goes on it puts all therest of us contractors at a disadvantage Please consider the smaller non DBE contractorsthat are looking to survive as well

Thanks

Troy Halberg

Office360-225-7004

Cell360-931-3990

Fax360-225-7001

From Daniel Seydel IITo Bayne JackieCc Key Earl daneiwashingtonorg Nadeem Ismail Mussie Tewelde (mteweldehydro2geotechcom)

graceflyrightaolcom Mary Wenner Watkinson LarrySubject Re Seydel Dan - WSDOT Disparity Study Presentation Public TestimonyDate Friday December 8 2017 30323 PM

Jackie

It was my hope that the comments would be put into record I was also hoping that you wouldnot have to be the one having to formulate responses for each clarification If that is the caseI know you are swamped and will then I just ask my comments be only part of the recordHowever if there is dedicated staff that is going to be compiling and responding to theclarification then the below questions would be the priorities of most interest

These were questions unrelated to the disparity study and hopefully should be doable

1) Do you have any reports on your outcomes from the past 5 years on DBE support servicesand specific key performance measures from previous years funding (ie how many firmsutilized what was the objectives were objectives met did outcomes meet total satisfaction ifnot why next steps what was the firms capacity before and after services were performed (iesales employees bonding if applicable insurance equipment line of credit if applicablenumbertype of customers how are they doing now etc))

2) What other changes or improvements other than allowing DBES to select their own serviceproviders and a staff change will be a part of this new program

3) Was consideration to provide the new mentor protege consultant rather than separating theactivities into support services andor technical assistance

Disparity study clarifications

1) Will WSDOT consider sponsoring legislation to support the policy changes and goalincreases to insure manditory goals wont be necessary

a) If not what measures will you grant primes to operate outside the box (ie entertain bestvalue over low bid modify responsiveness by subs to require adherence to meeting voluntarygoals developing standards around federally funded gccm and other low bid procurementsthat give powers to primes to meet objectives including but not limited to mentor protegerelationships joint ventures bond waiving techniques cash flow assistance material andequipment acquisition manufacturer development specifications that have only DBES orinclude equal number of DBES as non DBES as approved installers etc)

2) Will the disparity study consultant be available for implementation or information gatheringfrom other regions

5) Will WSDOT be hiring more diverse staff amp professionaltechnical service providers inother departments outside OEO to insure policies commitments and evaluations areperformed in manner that improves diversity that reflects the communities WSDOT serves bythoughtful and legal efforts increase participation thus creating successful outcomes includingpartnerships and collaborations

Thank you and Merry Christmas

Hi Dan

Thank you for providing such thoughtful public comments questions and testimony

Regarding your public testimony below - I do not believe I am not able to answer questions ifthey are public comments Please let me know what part of this email you would likeclarification on and what part you would like considered public testimony

I appreciate your thoughtful consideration of WSDOTrsquos implementation of our civil rightsprograms

Best Regards

Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

DIDaniel Seydel IIFyi Daniel J Seydel II Platinum Group LLC 2064060844 f) 2062999934wwwplatinumbusinessgroupcom Small Business is the Answer FREE TRAINING FORENTREPRENEURS amp JOB SEEKERS - Polish your skills or make your firm standout thanksto the EntrepreneurialThu 233pDI

Daniel Seydel IIThu 1272017 1123 AMInbox Sent ItemsShow all 7 recipientsTobaynejwsdotwagov ltBayneJwsdotwagovgtJackie

Per your request below are my questions and comments some of which were verbally sharedyesterday

Congratulations on receiving the blessing of additional technical assistance dollars andcompleting the DBE Disparity Study per your report

1) Do you have any reports on your outcomes from the past 5 years on DBE support servicesand specific key performance measures from previous years funding (ie how many firmsutilized what was the objectives were objectives met did outcomes meet total satisfaction ifnot why next steps what was the firms capacity before and after services were performed (ie

sales employees bonding if applicable insurance equipment line of credit if applicablenumbertype of customers how are they doing now etc))

2) What other changes or improvements other than allowing DBES to select their own serviceproviders and a staff change will be a part of this new program

3) Was consideration to provide the new mentor protege consultant rather than separating theactivities into support services andor technical assistance

Disparity study clarifications andor comments

1) Will WSDOT consider sponsoring legislation to support the policy changes and goalincreases to insure manditory goals wont be necessary

a) If not what measures will you grant primes to operate outside the box (ie entertain bestvalue over low bid modify responsiveness by subs to require adherence to meeting voluntarygoals developing standards around federally funded gccm and other low bid procurementsthat give powers to primes to meet objectives including but not limited to mentor protegerelationships joint ventures bond waiving techniques cash flow assistance material andequipment acquisition manufacturer development specifications that have only DBES orinclude equal number of DBES as non DBES as approved installers etc)

2) Will the disparity study consultant be available for implementation or information gatheringfrom other regions

3) What lessons did WSDOT learn that it did not know from the other study(s)

4) What would WSDOT do different (ie scope time line process approach etc)

5) Will WSDOT be hiring more diverse staff amp professionaltechnical service providers inother departments outside OEO to insure policies commitments and evaluations areperformed in manner that improves diversity that reflects the communities WSDOT serves bythoughtful and legal efforts increase participation thus creating successful outcomes includingpartnerships and collaborations

Daniel J Seydel IIPlatinum Group LLC 2064060844f) 2062999934wwwplatinumbusinessgroupcom

Small Business is the Answer

FREE TRAINING FOR ENTREPRENEURS amp JOB SEEKERS - Polish your skills or makeyour firm standout thanks to the Entrepreneurial Institute of Washington

httpswwwyoutubecomchannelUCKL5YeVxL29HnNxqnb6hmXA

LIKE US on FaceBook if an Active Professional Development workshop provided by EIW

Construction University helps your firm or has benefited you

httpswwwfacebookcomEIWashingtonref=hl

From Bayne Jackie ltBayneJwsdotwagovgtSent Friday December 8 2017 10139 PMTo Daniel Seydel IICc Key Earl daneiwashingtonorg Nadeem Ismail Mussie Tewelde(mteweldehydro2geotechcom) graceflyrightaolcom Mary Wenner Watkinson LarrySubject RE Seydel Dan - WSDOT Disparity Study Presentation Public Testimony Hi Dan Thank you for providing such thoughtful public comments questions and testimony Regarding your public testimony below - I do not believe I am not able to answer questions if theyare public comments Please let me know what part of this email you would like clarification on andwhat part you would like considered public testimony I appreciate your thoughtful consideration of WSDOTrsquos implementation of our civil rights programs Best Regards Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov From Daniel Seydel II [mailtodanplatinumbusinessgroupcom] Sent Thursday December 7 2017 1123 AMTo Bayne Jackie ltBayneJwsdotwagovgtCc Key Earl ltKeyEwsdotwagovgt daneiwashingtonorg Nadeem Ismailltnipaintingearthlinknetgt Mussie Tewelde (mteweldehydro2geotechcom)ltmteweldehydro2geotechcomgt graceflyrightaolcom Mary Wennerltmwenn0108yahoocomgtSubject Seydel Dan - WSDOT Disparity Study Presentation Public Testimony Jackie

Per your request below are my questions and comments some of which were verbally sharedyesterday

Congratulations on receiving the blessing of additional technical assistance dollars andcompleting the DBE Disparity Study per your report

1) Do you have any reports on your outcomes from the past 5 years on DBE support servicesand specific key performance measures from previous years funding (ie how many firmsutilized what was the objectives were objectives met did outcomes meet total satisfaction ifnot why next steps what was the firms capacity before and after services were performed (iesales employees bonding if applicable insurance equipment line of credit if applicablenumbertype of customers how are they doing now etc))

2) What other changes or improvements other than allowing DBES to select their own serviceproviders and a staff change will be a part of this new program

3) Was consideration to provide the new mentor protege consultant rather than separating theactivities into support services andor technical assistance

Disparity study clarifications andor comments

1) Will WSDOT consider sponsoring legislation to support the policy changes and goalincreases to insure manditory goals wont be necessary

a) If not what measures will you grant primes to operate outside the box (ie entertain bestvalue over low bid modify responsiveness by subs to require adherence to meeting voluntarygoals developing standards around federally funded gccm and other low bid procurementsthat give powers to primes to meet objectives including but not limited to mentor protegerelationships joint ventures bond waiving techniques cash flow assistance material andequipment acquisition manufacturer development specifications that have only DBES orinclude equal number of DBES as non DBES as approved installers etc)

2) Will the disparity study consultant be available for implementation or information gatheringfrom other regions

3) What lessons did WSDOT learn that it did not know from the other study(s)

4) What would WSDOT do different (ie scope time line process approach etc)

5) Will WSDOT be hiring more diverse staff amp professionaltechnical service providers inother departments outside OEO to insure policies commitments and evaluations areperformed in manner that improves diversity that reflects the communities WSDOT serves bythoughtful and legal efforts increase participation thus creating successful outcomes includingpartnerships and collaborations

Thank you for your hard work

Daniel J Seydel IIPlatinum Group LLC2064060844f) 2062999934wwwplatinumbusinessgroupcom

Small Business is the Answer

FREE TRAINING FOR ENTREPRENEURS amp JOB SEEKERS - Polish your skills or makeyour firm standout thanks to the Entrepreneurial Institute of Washington

httpswwwyoutubecomchannelUCKL5YeVxL29HnNxqnb6hmXA

LIKE US on FaceBook if an Active Professional Development workshop provided by EIWConstruction University helps your firm or has benefited you

httpswwwfacebookcomEIWashingtonref=hl

From Erin EhlingerTo Bayne JackieSubject Support for WSDOTs proposed DBE goalDate Wednesday December 13 2017 115417 AM

I am writing to support the WSDOT recommended DBE Goal for FHWA contracts of 190 I also want to express my appreciation for the thoroughness of the WSDOT Disparity study and howthe study disclosed the disparity in WSDOT contracts that do not have a DBE or WBE goal ndash furtherreinforcing that all women-owned firms and minority owned firms face equity issues I remain concerned with the methodology required by the Code of Federal Regulations and case lawbecause of the dependence on the availability of firms in the calculation An unintendedconsequence of removing either gender or race from the goal is that many of these firms would goout of business the availability decreases and the formula then results in a smaller DBE goal Pleaselet me know how I can help influence a change to the CFR Thank you Erin Ehlinger

Erin Ehlinger PEPresident

24036 SE 47th StSammamish WA 98029erinehlingersmartcitytrafficcom425-221-0320

From Jackie EtterTo WSDOT Disparity StudySubject Why we need mandatory goalsDate Friday December 1 2017 61859 PM

As a DBE participating in bidding process I have found that regardless of the language which claims to insurethat disadvantaged business enterprises shall not be discriminated against the only way to ensure that this does nothappen is by mandating affirmative action goals Having been overlooked time and time again because of my gender when I have submitted bids that are verycompetitive with other bidders is very frustrating I have had many instances of companies using my price to getmy non DBE competitors to lower theirs The voluntary or laudatory DBE goals do nothing to ensure a level playing fieldThe only way to ensure non-discrimination is through mandatory goals

Jackie EtterWest Star Construction of Spokane

Sent from my iPhone

From Claudia HirscheyTo Key Earl Bayne JackieSubject WSDOT DBE Goal - Comment in supportDate Tuesday December 12 2017 61937 PM

Dear Earl and Jackie The WSDOT recommended DBE Goal for FHWA contracts of 190 is a small and important increasethat can further achieve equity in WSDOTFHWA contracting I am in support of the 19 DBE Goal I also want to express my appreciation for the thoroughness of the WSDOT Disparity study and howthe study disclosed the disparity in WSDOT contracts that do not have a DBE or WBE goal ndash furtherreinforcing that all women-owned firms and minority owned firms face equity issues I remain concerned with the methodology required by the Code of Federal Regulations and case lawbecause of the dependence on the availability of firms in the calculation An unintendedconsequence of removing either gender or race from the goal is that many of these firms would goout of business the availability decreases and the formula then results in a smaller DBE goal Sincerely Claudia S Hirschey PETransportation Consulting Servicesclaudiahirscheycomcastnethttphirscheytcscom2068564988 Mobile

From Nate ThomasTo WSDOT Disparity StudySubject WSDOT Proposes DBE goal of 19Date Thursday December 7 2017 42720 PM

The WSDOT should look into similar ways the Federal Gov has handled the equal opportunity forthose that fall under the DBE status and set aside specific projects for the DBErsquos and moreimportantly UDBErsquos so these companies have better chance of landing contracts Maybe a lot 10 ofthe DBE goal to set aside for only DBEs and other 9 goal met as it is done currently with COA onlarger contracts Nate ThomasSenior EstimatorD 5095688085 | C 5099941156331 North Fancher Road | Spokane WA | 99212

The information contained in this email including any attachments is confidential and may beprivileged It is intended only for the person or entity to which it is addressed and no waiver isintended by sending this email If the reader is not the intended recipient you are herebynotified that any review retransmission dissemination or other use of or taking any action inreliance upon this information is strictly prohibited If you have received this email in errorkindly notify the sender by reply email and delete the original message from any computerThank You

From Brian FujiiTo WSDOT Disparity StudySubject WSDOT propsed DBE GoalsDate Thursday December 7 2017 110638 AM

Good morning Jackie

I wanted to comment on WSDOTs proposed DBE goal to 19 I believe WSDOTs plan toincrease the overall DBE goal to 19 will provide greater opportunities for DBE contractorsin different disciplines to participate in federally funded contracts

Without the new DBE requirement and with Proposition 200 there are limited opportunitiesfor DBE contractors in disciplines different than the typical trucking flagging and rebar Inaddition there are no incentives for general contractors to go out beyond the usual truckingflagging and rebar DBE subcontractors

Increasing the DBE goals will provide opportunities for different DBE contractors in differentdisciplines to participate in WSDOT federally funded projects

Thank you for your time

RespectfullyBrian FujiiPresident Subsurface ConstructionP 2063836478F 2069604639MDBE 4M0024998

From Forman StephanieTo Bayne JackieCc Millar Roger christinenhanmailhousegov Claudia Hirschey Sarah Corbin Jiang Yingle

efaulknerenviroissuescom Diana Giraldo Kelly CheesemanSubject WTS - Disparity Study Comment LetterDate Friday December 15 2017 71020 PMAttachments 2017_Dec 15_WTSCommentLetter_WSDOT DBE Goalpdf

Dear Ms Bayne Please find our attached letter which summarizes the WTS Puget Sound Chapterrsquos support foradvancement of women in transportation and our comment letter regarding the recent DisparityStudy Please feel free to contact me if you have any questions or would like to discuss Sincerely Stephanie S Forman PEWTS Puget Sound President Transportation Project Manager

929 108th Avenue NE Suite 1300Bellevue WA 98004D 4254681548 M 2062291745stephanieformanhdrinccom

December 15 2017

Jackie Bayne Policy and Reporting Manager

Office of Equal Opportunity

Washington State Department of Transportation

PO Box 47314

Olympia WA 98504-7314

Dear Ms Bayne

On behalf of the Puget Sound Chapter of Womenrsquos Transportation Seminar (WTS) we would

like to thank the Washington State Department of Transportation for presenting to our

organization the DBE Disparity Study results We very much appreciated the presentation by Earl

Key Director of WSDOTrsquos Office of Equal Opportunity Teresa Berntsen (Director Office of Minority

and Womens Business Enterprises) as well as Leslie Jones (Director Sound Transit Office of Small

Business Development and Labor Compliance)

Following a review of the WSDOT Disparity Study and as a result of consultation with WTS

International we would like to provide WSDOT with our comments for your consideration

As you know WTS is an organization focused exclusively on attracting retaining and advancing

women in transportation By the year 2018 there will be thousands of vacancies in the

transportation industry for qualified professionals and while women account for more than half of

the worldrsquos workforce they are a very small minority in transportation disciplines

We are pleased that the outcome of the 2017 Disparity Study that recognizes the on-going barriers

for DBEs including women-owned businesses in transportation The WSDOT recommended DBE

Goal of 190 is a small and important increase that can further achieve equity in WSDOTFHWA

contracting We are also pleased that the 2017 Disparity Study has documented the disparity in

WSDOT contracts that do not have a DBE or WBE goal ndash further reinforcing that all women-owned

firms and minority owned firms face equity issues We are encouraged that the WSDOT has asked

FHWA to rescind the 2016 waiver

While WTSrsquo mission is specific to the advancement of women we are a race-neutral organization To

this end we are also deeply concerned about the underutilization of minority owned firms There is

no equity or ldquofair playing fieldrdquo without equity for all gender and races We remained concerned with

the methodology required by the Code of Federal Regulations and case law because of the

dependence on the availability of firms in the calculation An unintended consequence of removing

either gender or race from the goal is that many of these firms would go out of business the

availability decreases and the formula then results in a smaller DBE goal This consequence is

contrary to our mission

We look forward to our continued participation in WSDOTrsquos DBE advisory group we are anticipating

notice that the 2016 waiver has been rescinded and how we can work together to continue

advancing minority and women-owned firms in the transportation field

Sincerely

WTS Puget Sound Chapter

Stephanie Forman

President

C Roger Millar Secretary WSDOT

C Representative Adam Smith 9th Congressional District Washington co Christine Nhan

WTS Puget Sound Chapter

PO Box 3461

Bellevue Washington 98009

From Dave Gent - WAPATo Bayne JackieCc Tom GaetzSubject WAPA Public Comments - RE WSDOT FHWA Disadvantaged Business Enterprise Proposed GoalDate Friday December 15 2017 14119 PMAttachments 12152017 DBE Proposed Goal - WAPA Public Comments Letterpdf

Good afternoon Jackie Please find attached WAPArsquos ldquofor the public recordrdquo comments with respect to WSDOTrsquos proposedDBE Goals FHWA funded work I assume that the Master DBE Directory was not sent to you this week so as a result we were notable to review the directory before the close of the public comment period That fact is noted withinour comment letter Thank you for your efforts Have a good weekend

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Friday December 8 2017 1219 PMTo Dave Gent - WAPA ltdavegentasphaltwacomgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hello Dave WSDOT did not take possession of this directory as part of our review process We will provide youwith the records without submitting a formal request However we need to get them from theconsultant first I will hopefully have them to provide next week I will keep you updated on therequest Have a nice weekend Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal Opportunity

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

December 15 2017

Jackie Bayne Policy Manager WSDOT Office of Equal Opportunity Delivered via e-mail to BayneJwsdotwagov RE Public Comment (as requested) to Proposed Overall DBE Goal for the FHWA (2018 ndash 2020) Ms Bayne Thank you for your presentation via webinar on December 5 2017 outlining WSDOTrsquos evaluation process used to determine the proposed overall DBE goal for the FHWA Thank you also for the Colette Holt amp Associates (CHA) DBE Advisory Group presentation made on September 14 2017 Both presentations helped to distill the findings of the 2017 Disparity Study produced by CHA In response to Earl Keyrsquos initial informal request to comment on the proposed overall DBE goal made during the DBE Advisory Committee teleconference held on October 12th we provided a list of reasons that we believe justify a lower DBE goal than is now being proposed Our initial response to Mr Keyrsquos request did not serve to influence WSDOT and the current proposed goal remains at 190 The arguments provided on October 12th against the significant increase in the proposed DBE goal (versus the previous goal and recent historic DBE participation) are repeated and supplemented below and will serve as the Asphalt Pavement Associationrsquos (WAPArsquos) official public comments

In concert with WSDOT and the OWMBE WAPA and the construction firms that WAPA represents have demonstrated a commitment to the principals of equal opportunity for all ldquoready willing and ablerdquo firms for the entire history that our DBE program has been in place WAPA has continuously demonstrated its commitment to the goals of the DBE program and for increasing the representation of disadvantaged groups within our industry as both workers and owners of firms Please recognize that WAPArsquos oversight and critique of the DBE program has always attempted to balance the principals of fair and open competition with the practical aspects of the low bid compressed schedule high performance standards demanded within the WSDOT marketplace Our comments below are meant to enhance WSDOTrsquos and OWMBErsquos understanding of the market and to hopefully have WSDOT fully consider all of the dynamics that are at play when proposing its Triennial DBE goal for FHWA projects Current DBE Capacity vs Historically Robust Market In advocating for a realistic and defensible DBE goal it has always been WAPArsquos position that it is paramount that the realities of the marketplace and true certified DBE subcontracting capacity should be a primary standard While a ldquostretchrdquo goal may appear to be progressive on its face it comes with consequences for all of the parties involved in the WSDOT federal aid contracting arena To balance the dynamics of the WSDOT contracting system the DBE goal should be tempered with the realities of the market and with a true measure of the underlying effectiveness of the DBE support services available to contractors

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 2 of 6 The first point of fact that has not been given any apparent consideration by WSDOT in its evaluation of the current capacity of certified DBErsquos is that there is an historically robust workload scheduled to be performed in the 2017 through 2022 time-frame particularly in the Puget Sound ldquoEverett to Olympiardquo corridor By WSDOTrsquos own estimates (see Attachment A) public works construction project starts in the 2018 to 2022 time-frame in this region will exceed $333 billion (B) counting the work projected from just five public entities WSDOT will be taking a decidedly ldquoback seatrdquo role during this period to Sound Transit which will have construction project starts of $226B vs WSDOTrsquos projected volume of $67B WSDOTrsquos summary publication titled Washington State Department of Transportations Proposed Federal Highway Administration Triennium Disadvantaged Business Enterprise Goal Federal Fiscal Years 2018-2020 states correctly that ldquoIncluded among the types of evidence that must be considered are the current capacity of DBEs to perform work on WSDOTrsquos federally-assisted contracts as measured by the volume of work DBEs have performed in recent yearshelliprdquo (Step Two Adjustment discussion) With the Sound Transit program being over 300 larger than the total WSDOT program in this region a sober assessment of true certified DBE capacity in the next three years needs to be considered by WSDOT If the huge construction boom over the next five years does not prompt a Step Two Adjustment then it becomes obvious that the realities of the market are being ignored by WSDOT for DBE goal setting Put another way if the 2018 through 2022 level of contracting activity does not warrant a goal adjustment what will DBE Access Barriers Not Yet Addressed The CHA 2017 Disparity Study points out multiple recommendations in Section VII that impact DBE participation and access to the market Assessments relating to those impacts and the state of maturity in addressing the CHA recommendations should be considered when assessing the DBE goal Many of the CHA recommendation have not been adequately addressed at this point in time Some of the prime examples are listed below Increase Certification and Expertise ndash The Disparity Study as explained to us includes all minority- (MBE)

and women-owned (WBE) firms that could be readily identified that perform work within Washington State and that perform work within the NAICS code framework CHA developed to cover WSDOT project work During the various presentations relating to the Disparity Study WSDOT representatives said that outreach to currently non-certified MBE amp WBE firms has increased and that WSDOT aspires to bolster its list of certified firms in the future but this effort is just beginning and the success of the effort needs to be means tested against the broader population of MBE amp WBE firms included in the CHA base line evaluation As the Disparity Study uses a much broader population of MBE WBE contractors to arrive at its conclusions (both non-certified firms and firms too large for certification) it follows that the calculated DBE proposed goal is overstated to include capacity that does not currently exist within WSDOTrsquos certified DBE framework Unless OMWBE is experiencing sudden and unprecedented success in recruiting new MBEWBE firms the DBE goal should be adjusted downward to recognize that the ldquoready willing and ablerdquo contractors that WSDOT has certified is only a subset of the total MBEWBE contracting population used in the Disparity Study evaluation

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 3 of 6

Until the promised WSDOT outreach registration efforts result in a substantial increase in available certified DBE firms it is premature to count the entire population of minority- and women-owned contractors as available to participate in WSDOT contracting It is unreasonable for WSDOT to project availability capacity using the entire MBEWBE population when only its currently truncated list of certified firms is acceptable to count toward the DBE goal

A corollary to the Increase Certification and Expertise discussion above is that the calculation of the Base Figure evidently includes the broadest practical population of MBE and WBE firms identifiable (without a review of the CHA Master DBE Directory which has not been supplied prior to the close of the public comment period the scope of the directory cannot be ascertained) If this directory includes a large population of MBEWBE firms that are not certified or are too large to be certified then the Base Figure calculation should be adjusted to reflect that certified DBE firms are a fraction of the total MBEWBE firms used to arrive at the 19 suggested DBE goal With respect to the CHA Master Directory it is our understanding the WSDOT was not given the directory as part of its evaluation of the Disparity Study and it follows that it did not evaluate the proposed DBE goal in the context of the CHA Master DBE Directory In our opinion an informed decision on adjusting the CHA baseline goal calculation can only be done after an extensive evaluation of the CHA Master DBE Directory If this has not been done WSDOT has not exercised due diligence in evaluating the context and underpinnings of the CHA Disparity Study and a certified DBE Triennium goal proposal to the FHWA is premature Increase Contract ldquoUnbundlingrdquo ndash If this proposed strategy (suggested by the CHA Study) is undertaken

certified DBE Subcontractors currently available will be engaged as Prime Contractors and the value of their prime contracts will bolster the overall percentage of certified DBE contracting but a systematic effort and strategy to ldquounbundlerdquo has not been articulated by WSDOT The key question of how this effort can be accomplished without increased cost to the taxpayers and increased inconvenience for the traveling public As noted in the CHA study (page 129 final paragraph) ldquoUnbundling must be conducted however within the constraints of the need to ensure efficiency and limit cost to the taxpayersrdquo As of this writing no overarching strategy for further unbundling with proper accountability has been articulated by WSDOT to the DBE Advisory Group

Review Insurance and Experience Requirements ndash Impediments to certified DBE participation due to

necessary insurance and experience standards cannot be solved by the prime contracting community Unless and until WSDOT puts together programs to address the burden of the substantial risks shouldered by Prime Contractors on WSDOT contracts barriers for streamlined utilization of certified DBE firms will continue to exist These market driven barriers will continue to dampen the availability of certified DBE Subcontractors that are able to perform within WSDOTrsquos strict criteria without unduly transferring risk to the Prime Contractor

Better Partnering to Overcome DBE Failures to Perform ndash Prime Contractors are held fully responsible to maintain the project schedule and are subject to project liquidated damages even when they may be struggling to deal with Subcontractor performance issues It is well-established that replacing a certified ldquocondition of awardrdquo (COA) DBE Subcontractor is very onerous and likely very costly to the Prime Contractor Unfortunately the imposition of strict and often counter-productive commercially useful function (CUF) rules often compound this issue as Prime Contractors cannot help COA DBE Subcontractors work through capacity expertise or time-related issues that impact timely performance

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 4 of 6

WSDOT needs to be a much better partner in the process of dealing with under-performing or non-performing certified DBE Subcontractors The current standard operational procedure places all of the exposure for non-performance onto the Prime WSDOT does not have an equitable system to account for non-performing or under-performing certified DBE Subcontractors hired as a condition of award (COA)

Performance Information and Training ndash Commercially useful function rules (CUF) and the lack of clear benchmark definitions for good faith effort (GFE) standards remain barriers for improving accountability within the DBE system and in turn lead to distorted DBE participation rates These items remain amorphous due to lack of training or lack of historic information Chronic uncertainty exists regarding both of these items Until WSDOT changes and improves its approach to provide transparency and certainty for both the prime bidding amp subcontracting parties true certified DBE capacity will continue to be masked and the resultant higher subcontracting costs associated with a distorted marketplace will continue to be hidden

WAPA respectfully suggests that simply adding an ldquoEstimated DBE Subcontract Premiumrdquo line to the current DBE bid forms would help to establish benchmarks that could begin to be used to ldquomeans testrdquo good faith efforts If this information had been gathered over the last 20 years of the DBE program meaningful GFE standards could have been developed and could be in place today

An in-depth review of CUF standards would also provide clarity For instance it is unclear why force account items performed by certified DBEs are currently counted at only 50 of the value of the work How was this benchmark established Has it been reviewed since imposed Did it ldquosolverdquo whatever inequity WSDOT was trying to address Better clarity may lead to more expanded opportunities for certified DBE Subcontractors

Enhanced Supportive Services and Business Development Programs ndash Unless and until stronger programs of these types are shown to be effective in boosting certified DBE business development increased DBE participation due to stronger business acumen should not be relied upon when setting the new DBE goal

Does OMWBE have a reasonable expectation that future plans for enhanced and expanded programs will be more successful than those employed in the past Assuming that certified DBE Subcontractors will be better prepared to deal with the WSDOT contracting environment than in the past should not be relied upon to boost DBE participation goals Especially troubling were the multiple references within the CHA report highlighting that DBEs believe that the staff at OMWBE lack a deep knowledge about the highway construction industry (eg Study page 129 2nd paragraph) Does OMWBE have a path forward that will address this issue and thus improve supportive services impacts

Develop a Bonding and Financing Program for SBEs ndash This is completely outside of the prime contracting

communityrsquos scope of influence WSDOT must find a way to institute changes that both protect the taxpayer and help increase certified DBE bonding capacity and access to financing ndash very large hurtles To assume that these hurtles can effectively be overcome within the 2018 ndash 2020 time frame when they have been chromic issues for the past 20 plus years of DBE program development is not rational

A helpful innovation would be for WSDOT to underwrite performance and payment bonds for certified DBE firms or to create promote a system that helps certified DBE firms obtain private bonding Bridging the gap to address capital access and performance risks (bonding) must be championed by WSDOT

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 5 of 6

Base Figure Adjustment to Address Available Subcontract Volume and DBE Prime Contracts It is a fact that mid- to large-sized MBEWBE firms that compete both as Prime Contractors and as Subcontractors are not eligible to be OMWBE certified DBEs Further the current amount of contract unbundling for greater DBE access to WSDOT prime contracting (see below) accounts for a very low dollar volume of prime contracts performed by certified DBEs Finally by specification (WSDOT standard specification 1-081) Prime Contractors are obligated to perform 30 of the total volume of the work (less specialty work) or stated another way a maximum of 70 of the dollar volume on WSDOT projects is typically available to award to subcontractors These market dynamics are NOT addressed in the Disparity Study A responsible DBE goal made absent of these facts should not be implemented A reasonable adjustment to the proposed 19 DBE goal is presented below

bull The percent of WSDOT prime contracts awarded to certified DBE firms is likely less than 5 by total WSDOT

contract volume Assuming this approximation is valid (likely very conservative) then the amount of WSDOT contract work available to certified DBE firms via subcontracting should be adjusted to account for the factors outlined above The Base Figure (19) should be adjusted to recognize that a 70 maximum subcontractor participation is available (in the numerator) and to account for the assumed 5 certified DBE prime contracts in the denominator Reasonable Base Figure Adjustment 19 (proposed) x 70 subcontracts available divide 95 of Non-Certified DBEs as Prime Contract Volume = 190 x 0737 = 140 adjusted goal This is an adjustment based on the practical dynamics of the WSDOT contracting system and it represents a more realistic look at the true subcontract volume that is available for Prime Contractors to award to certified DBE firms

Conclusions

Until the items listed above are addressed and in place it is not reasonable to believe that DBE goals can be increased by nearly 163 (from 117 to 190) When the projected robust public works contracting market is appropriately considered the true availability of certified DBE Subcontractors for WSDOT contracts will be truncated due to demand across all public works sectors With multiple strong public works programs competing for a limited population of certified DBEs the ability to meet increased WSDOT DBE goals will be severely challenged Without very clear concise and transparent good faith effort rules the ability to address DBE goals that greatly overestimate true near term certified DBE capacity will result in non-attainment bid day chaos failures to perform andor rapidly increased pricing

The clear conclusion is that at this point in time under the current circumstances without effectively instituted new programs rules procedures that could enhance the certified DBE programrsquos overall effectiveness we believe that the DBE goal should remain at or near 12 As OMWBE documents and demonstrates its future successes in improving access and eliminating capacity barriers only then should the DBE goal be re-evaluated and increased

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 6 of 6

In closing please remember that it is rare that the contracting community is asked our opinion with respect to the WSDOTrsquos DBE policies and so this letter is somewhat a vehicle to highlight collective concerns It is our belief that the majority of the Prime Contractors in Washington state support the objective of creating a level playing field for ready willing and able DBEs

If the level playing field is not yet possible in the absence of the DBE program then the key is to set realistic goals that recognize reflect and address the hard realities and market dynamics imposed by WSDOTrsquos bedrock environment of awarding contracts to the lowest cost responsible and responsive Contractor

Respectfully submitted Washington Asphalt Pavement Association

David Gent Tom Gaetz Executive Director Senior Advisor

Attachment A ndash WSDOT Central Puget Sound Public Works Contracting Projection 2018 - 2022

Con

stru

ctio

n Pr

ojec

t Sta

rts

2018

-202

2S

ound

Tra

nsit

$22

6 B

SD

OT

$08

B

Tran

sit

amp O

ther

s$1

7 B

WS

DO

T$6

7 B

Por

t of

Sea

ttle

$15

B

TOTA

L$3

33

B

Source N

ov 1

9 2

017

pres

enta

tion

to W

APA

Ann

ual M

eetin

g

Attachment A

Work (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Dave Gent - WAPA [mailtodavegentasphaltwacom] Sent Thursday December 7 2017 144 PMTo Bayne Jackie ltBayneJwsdotwagovgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hi again Jackie Irsquom fine thanks and hope you are the same Interesting The Master DBE Directory is the basis for and integral to the conclusions of the DisparityStudy Is it not then part of the information needed to fully review and comment on the DisparityStudy Was it not provided by CHA to WSDOT for review We are trying to fully understand thestudy and if this directory was part of the study why would it need to be obtained by a publicrecords disclosure It should be in the public domain and not restricted from ease of access If you are sure that a public records request is needed Irsquoll start that process but we will need tonote that point of fact when we submit our public comments If you are able to reconsider please let me know Respectfully

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Thursday December 7 2017 126 PMTo Dave Gent - WAPA ltdavegentasphaltwacomgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hello Dave I hope you are doing well

That information would likely be obtained through a public disclosure request Best Regards Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Dave Gent - WAPA [mailtodavegentasphaltwacom] Sent Thursday December 7 2017 113 PMTo Bayne Jackie ltBayneJwsdotwagovgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Jackie Can you please provide an electronic file or provide a weblink for the Master DBE Directory thatColette Holt amp Associates developed for the WSDOT Disparity Study 2017 (first referred to on Page 8of the Disparity Study) I did not see a link to this Master DBE Directory within the study Thanks

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Friday October 27 2017 1118 AMTo Kenyon Wendy ltKenyonWwsdotwagovgt Adams E W ltewadamssystemsclcomgtAdekoyaAndrew ltandrewadekoyabccomgt AlyssaBalllegwagov Anindita Mitraltamitracrea-affiliatescomgt APRISeattlehotmailcom Armstrong CharlotteltCharlieAatgwagovgt Ato Apiafi Architects PLLC ltatoaatoapiaficomgt benzfanwaorgBerntsen Teresa (OMWBE) ltTeresaBomwbewagovgt Billingsley Andrealtbillinawsdotwagovgt Bramlet Erica ltEricaBramletlegwagovgt Brooks Julius

ltBrooksJwsdotwagovgt Brown Jason ltjbrownldccorpcomgt bwallacenwlaborersorgCamden Allison ltCamdenAwsdotwagovgt carlllivingstongmailcom Cerda OscarltCerdaOwsdotwagovgt Christopher Chris ltChristCwsdotwagovgt ckerneycaawagovdanplatinumbusinessgroupcom davegentasphaltwacom David BalltDavidsignsnowmillcreekcomgt Davis Khalia ltDavisKhwsdotwagovgt Davis RaShelle (GOVltrashelledavisgovwagovgt Dayton Jo ltDaytonJwsdotwagovgt ddhondtagcwacomDebbieDriverlegwagov Dennis ltdennisahlkiewitcomgt dmcleodnwlaborersorgdrart6651gmailcom Duncan Enid lthigradeincgmailcomgt EltonltEltonwashingtonstatetruckingcomgt eprincecaawagov flemosldccorpcomfmartineznwmtnmsdcorg geoffshookatkncom glovelady ltgloveladyexcelglovescomgtGrabow Katie ltkgrabowsystemsclcomgt Guilfucci Jackie ltJackieGuilfucciskanskacomgt HealyLinda ltHealyLwsdotwagovgt Higginbotham Breanne ltHigginBwsdotwagovgt HirscheyClaudia ltclaudiahirscheycomcastnetgt Holt Colette ltcoletteholtmwbelawcomgt Huff JohnltHuffJwsdotwagovgt Iniguezchawagov JacksonMaynardlegwagov Jimmy Matta(jmattaalcantarassoccom) ltjmattaalcantarassoccomgt kellywickergovwagov Key EarlltKeyEwsdotwagovgt Kirk Jon ltjkirkwhhnfscomgt Kris Purrier ltkpurrierhwageocomgtleewabuildingtradesorg lesliejonessoundtransitorg Liz Evans ltlevansagcwacomgt LopezErin lterinlopezdeswagovgt Martha Cerna ltMarthaPSLCCORGgt Martin-Arnold EdwinaltMartinEwsdotwagovgt Mary Lerdahl ltmarydbeelectricinccomgt McCarty Hannahlthannahmccartylegwagovgt Melissa L Boyles ltmelissaboylesmwbelawcomgt Metcalf KeithltMetcalKwsdotwagovgt michaelicapaawagov Michelle ltMichelleTTCC26netgt MillarRoger ltMillarRwsdotwagovgt Nakamura Jason ltjasonnakamura1-alliancecomgtNavarroLportseattleorg olliepmt-solutionscom pastorbanksesbctacomacom PatrickHughes ltphugheshughesgroupbizgt Petersen Jodi (FHWA) ltJodiPetersendotgovgtrabbottliunaorg rcarmsteadgmailcom ricemportseattleorg Riley D ltdrileylydigcomgtSeling ltSelingjpfranciscomgt sherryharrisergosynchcom Stell MellodyltStellMwsdotwagovgt terigobintulaliptribes-nsngov timwilliamfactorycom tinaterra-tdicom tkellyldccorpcom tomgaetzmsncom vcollinsacec-waorgverlenejazzmsncom Wang Albert ltWangAatgwagovgt Waugh GregltGregWMaxKuneyComgt Yates Henry ltYatesHWSDOTWAGOVgtCc Tom Gaetz lttomgaetzmsncomgt Dave Gent - WAPA ltdavegentasphaltwacomgt VanCollins ltvcollinsacec-waorggt Daniel Seydel II ltdanplatinumbusinessgroupcomgt MaynardJackson ltJacksonMaynardlegwagovgt Carl Livingston ltcarlllivingstongmailcomgt DonMcLeod ltdmcleodnwlaborersorggt JIMMY MATTA ltjimmymattamsncomgt Prince Ed(CAAA) lteprincecaawagovgt David DHondt ltddhondtagcwacomgt Irene Reyesltgloveladyexcelsupplycompanycomgt McDaniel Craig ltMcDaniCwsdotwagovgtsherryharrisergosynchcomSubject WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Good morning On Monday October 30th WSDOT will be releasing the proposed overall Federal HighwayAdministration Disadvantaged Business Enterprise goal attached for public comment throughDecember 15 2017 This overall DBE goal is based upon the recently completely DBE ProgramDisparity Study WSDOT is proposing a 19 percent overall DBE participation goal on Federal Highway

Administration-funded projects for federal fiscal years 2018 through 2020 DBE goals fortransportation projects that receive federal funds represent a percentage of the value of work inwhich minority- and women-owned businesses should participate Once finalized and submitted toFHWA early next year the goal will be effective through Sept 30 2020

The purpose of the DBE program is to create a level playing field for firms owned and operated bydisadvantaged individuals wanting to participate in federally assisted highway transit and aviationprograms The attached overall DBE goal is for FHWA funded projects WSDOT will be updating theFTA and FAA overall DBE goals in the near future

If you have any questions please contact Earl Key Director of the Office of Equal Opportunity at3607057091 or KeyEwsdotwagov Thank you Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

  • Proof-Of-Publicationpdf
    • Mediapdf
      • AGC
      • Daily Journal
      • Daily Medium
      • DBEGood
      • OMWBE
      • Seattle Medium
      • Tabor 100
      • The Chronicle
      • Tukwila
        • King County
          • Public-Comments-20180111pdf
            • 19 DBE Requirement(1)
            • AGC Comments on Proposed 10 Goad
            • Backstrom Curb amp Sidewalk
            • comments on WSDOT proposed DBE goal
            • Cowlitz County Public Works
            • DBE Contracting goals
            • DBE Goal
            • DBE Program Disparity Study
            • Disparity Study Comments from City of Spokane
            • FW_ WSDOT News - WSDOT seeks comments on propos
            • Proposed DBE Goals
            • RE_ DBE Contracting Goal Comments
            • Re_ DBE Goal Comments
            • Re_ Seydel Dan - WSDOT Disparity Study Present
            • Support for WSDOTs proposed DBE goal
            • Why we need mandatory goals
            • WSDOT DBE Goal - Comment in support
            • WSDOT Proposes DBE goal of 19
            • WSDOT propsed DBE Goals
            • WTS - Disparity Study Comment Letter

From Liz EvansTo Bayne JackieSubject AGC Comments on Proposed 10 GoadDate Tuesday December 12 2017 50314 PMAttachments WSDOT Proposed Goal - AGC Comments FINALdocx

Hi there Jackie Attached are AGCrsquos comments on WSDOTs proposed 19 goal We will also be mailing you a copy Thanks for the opportunity to comment and we hope you find it helpful Regards Liz Liz Evans CAE Northern District ManagerAGC OF WASHINGTONTel 3602238757 | wwwagcwacom JOIN US for the 2018 AGC of Washington Annual Convention amp Technology Expo Jan 26

CUsersmwillmsPicturesInland AGCLogo_RGB_Half_5in

December 12 2017

Page 5

December 12 2017

VIA EMAIL amp US MAIL

Ms Jackie Bayne Policy amp Reporting Manager

Washington State Dept of Transportation

210 Maple Park Ave SE

PO Box 47314

Olympia WA 98504

RE WSDOT Proposed FHWA Triennium Disadvantaged Business Enterprise Goal

Dear Ms Bayne

This letter summarizes the views of the Associated General Contractors of Washington and Inland Northwest Associated General Contractorsrsquo (hereafter referred to collectively as AGC) regarding the Washington State Department of Transportationrsquos (WSDOT) recently proposed FHWA Triennium Disadvantaged Business Enterprise (DBE) Goal (the ldquoProposed Goalrdquo) AGC shares WSDOTrsquos commitment to continue the promotion of DBE firms but AGC is concerned the Proposed Goal which is a significant increase from the previous goal and actual utilization may have unintended consequences and could impose significant burdens on both prime contractors and DBE contractors alike AGC requests WSDOT reconsider its Proposed Goal and adjust the Proposed Goal to account for inevitable availability and capability issues including the lack of a formal retraction of the non-minority woman owned business waiver that makes up over half of the Proposed Goal Implementing an unachievable goal will only be to the detriment of the DBE program

1 AGCrsquos Membersrsquo Interest in WSDOTrsquos Proposed Goal

Together AGC of Washington and Inland Northwest AGC represent and serve the commercial industrial and highway construction industry These professional associations of commercial contractors are comprised of more than 900 members who have joined together to enhance the performance of their industry and build a better climate for construction operators many of which are small and closely held businesses

Like WSDOT AGC is firmly committed to the principals of equal opportunity and promoting efforts to ensure minority women and veteran owned businesses are properly represented In both its political advocacy and membership programs AGC has demonstrated its commitment to increasing the representation of disadvantaged groups in the construction industry as both workers and owners of firms For AGC this is both an issue of principles and a practical one The construction industry as a whole is facing a critical shortage of workers and it is imperative that the industry attract new participants Among AGCrsquos activities demonstrating this commitment are the following

middot AGC has an ongoing ldquoContractor Exchangerdquo program through which small minority- and women-owned subcontractors are offered one-on-one networking opportunities with established general contractors

middot The AGC Education Foundation provides financial support to construction-related programs in K-12 schools and conducts outreach specifically targeted at low income disadvantaged and female students

middot More than 2500 students most from inner-city schools participate in annual AGC-sponsored Construction Career Days in King Pierce and Spokane Counties

middot AGC supports the Pre-Apprenticeship Construction Training (PACT) program at Seattle Vocational Institute This program is focused on preparing underrepresented communities to be highly qualified applicants and successful apprentices in the construction trades

middot AGC is a sponsor of the Turner School a training course for minority- and women-business owners in the construction industry

middot AGC supports the National Association of Women in Construction (NAWIC) which provides professional development and other services to its members

middot AGC routinely supports legislative efforts aimed at supporting small businesses and encouraging small business participation

middot AGC recently formed a Diversity and Inclusion Committee comprised of both prime and DBE participants The purposed of the committee is to expand opportunities for DBE members and to help AGC consider diversity in decision-making Recently AGC approved a deeply discounted introductory dues structure for certified DBE members

middot AGC is a WSDOT partner on the new mentorproteacutegeacute program

AGCrsquos experience has been that the most effective approach is to help make emerging businesses successful through outreach training and public policies that will grow their capacitymdashnot by imposing mandates without clear evidence as to the mandates feasibility

2 WSDOTrsquos Proposed Goalrsquos Impacts To The Construction Industry

WSDOTrsquos Proposed Goal is 190 The Proposed Goal is based upon the recent Collete Holt amp Associates (CHA) Disparity Study released in 2017 With respect to availability the Disparity Study reports the following weighted availability for FHWA-Funded projects

Thus the 190 goal factors in Black Hispanic Asian Native American and White Women into its availability As indicated however this 19 goal raises a number of concerns

a WSDOTrsquos 19 Proposed Goal Represents a Significant Increase Without Concrete Evidence of Available And Capable DBE Firms

First WSDOTrsquos Proposal Goal of 190 represents a significant increase as compared to actual DBE participation (141 in 2014 117 in 2015 and 151 in 2016) as well as the last FHWA proposed goal of 116 for 2014-2018 See WSDOTrsquos Proposed Goal and Interim FHWA Overall DBE Goal Methodology FFY 2014-2018 The Proposed Goal is 74 more than the last goal which represents a 638 increase and a 52 increase over the average actual utilization for 2014-2016 While Contractors were exceeding the previous 116 goal this is primarily based on the fact that WSDOT previously requested a waiver to consider non-women-owned businesses and the waiver was not granted and effective until June 2017 (meaning that for 2014-2016 women were counted towards race-conscious goals and inevitably a higher overall percentage of DBE firms were utilized)

Contractors struggle to meet present DBE goals due to the relatively low availability of experienced and certified DBE firms By increasing the goal WSDOT is understandably trying to increase the participation of underrepresented firms Drastically increasing the goals (by over 5 of actual utilization) without concrete evidence that there is sufficient availability andor capability of such firms however will have the opposite effect Notably this lack of availability and capacity of DBE firms was discussed in detail in the Disparity Study For example the CHA Disparity Study notes a number of concerns of DBE firms while technically ldquoavailablerdquo with respect to the goal percentages are unable to meet the requirements necessary to fulfill the contract including purchasing the equipment necessary having available labor and ability to meet insurance and financing requirements Thus while there may be ldquoavailablerdquo firms there is not clear evidence (and if fact evidence to the contrary) that those available firms are capable and available to perform the majority of the FHWA-Funded contracts let by WSDOT

An additional example affecting DBE capability and availability that is not factored into the CHA Disparity Study or WSDOTrsquos Proposed GOAL is DBE ability to enter into Project Labor Agreements (ldquoPLAsrdquo) WSDOT has indicated their interest in pursuing a PLA AGC Members have raised concerns based on repeated experiences that many DBE firms due to the administrative and cost impacts refuse to enter into PLAs precluding those firms from performing certain work or increasing costs Again this lack of ability (or refusal) to perform should also be factored into WSDOTrsquos Proposed Goal which is not currently the case

b The Proposed Goal Does Not Account For The Current Non-Minority Woman Owned Business Waiver Still In Place

Second despite the significant increase WSDOT does not account for the current waiver of non-minority women owned businesses that remains in place As noted in WSDOTrsquos proposal comments WSDOT previously sought and received a waiver of the regulation that White females as a group are presumptively disadvantaged This waiver was heavily criticized by many including AGC and the results of the most recent CHA Disparity Study confirmed that White females are presumptively disadvantaged and do not enjoy a level playing field for USDOT-assisted contracts Therefore the CHA Disparity Study recommends that this group be returned to the status of goal credit eligibility WSDOT has sought a recession of the waiver but has not yet to our knowledge received a rescission of the waiver Nevertheless the 19 Proposed Goal still includes White women In fact of the 19 availability percentage White women represent 103 (over half) Accordingly for WSDOT to proceed with the 19 goal WSDOT must receive the rescission of the waiver for this goal to be even remotely possible to achieve If the rescission is not received the Proposed Goal must be adjusted

C The Proposed Goal Does Not Account For Availability Differences Across The State

Third the Proposed Goal does not account for availability difference across the state Eastern Washington contractors with an even scarcer pool of available and qualified DBE firms in the area as is the case now will be forced to subcontract to Western Washington firms paying transportation and per diem premiums for such work The CHA Disparity Study again provides numerous excerpts of anecdotal evidence demonstrating that the goals in Eastern Washington are too high A few of the contractor comments on the topic are as follows

When you apply those same goals to a different geographic region a different project site for a large firm to meet those goals is difficult because theres not necessarily the expertise in parts of the project that were submitting on

Theres very few DBEs over here [in Eastern Washington] Next year theres going to be even more work over here What are we going to do with all these goals We always meet the goals like I said youve got three four DBEs over here to do all the work and then they cant perform

There are just no [minority-owned] DBEs available in eastern Washington

See CHA Disparity Study at p 54 Again these are factors that should be taken into account in developing the Proposed Goal or at the very least its application WSDOTrsquos Proposed Goal however is silent as to this significant issue

When the lack of available firms with the capacity to perform significant DBE projects is coupled with the increased goals the price of WSDOT contracts will inevitably increase to the significant detriment of Washington taxpayers and the public entities Inevitably with a lack of available qualified firms the lack of competition will become evident and small qualifying contractorsrsquo prices will increase due to supply and demand principles as they become selected for projects and less able to take on additional work These increased DBE contract values will be passed on to the public agency and taxpayers which translates into fewer dollars available for the sorely needed and promised infrastructure upgrades In addition the instance of bid protests will inevitably increase potentially delaying projects and further diverting agency resources from badly needed infrastructure upgrades to resolving unnecessary disputes or rebidding the projects altogether

Finally faced with such drastic and potentially impossible requirements if adjustments are not made contractors may focus more on demonstrating good faith efforts Both a contractor who meets the required goal and a contractor that demonstrates good faith efforts are eligible for award It is likely that the contractor relying upon good faith effortsmdashwho will have a lower price than the other contractor who sacrificed price to actually meet the goalmdashwill be selected by the public agency This outcome will erode the total percentage participation of eligible firms and would clearly be inapposite of WSDOTrsquos intentions

3 Conclusion and Request

AGCrsquos members have asserted these and multiple other concerns Implementing an increased goal across the state and all contracts without clear evidence of available DBEs capable of performing the work and meeting the project requirements will have significant and far-reaching impacts on the construction industry many of which work against the aim of the Proposed Goal itself AGC requests WSDOT reconsider its Proposed Goal of 19 and make adjustments to account for the capability of DBE firms the lack of a rescission of the non-minority waiver and the lack of available DBE firms in parts of the state This Proposed Goal and its impacts on the construction industry will be irrevocable and will be to the detriment of taxpayers It is prudent to address these adjustments before implementing the Proposed Goal

Very truly yours

David DrsquoHondtCheryl Stewart Executive Vice President AGC of WashingtonExecutive Director Inland Northwest AGC

AGC of Washington bull 410 11th Avenue SE 203 Olympia WA 98501

Inland Northwest AGC bull 4935 E Trent Avenue Spokane WA 99212

image3jpeg

image1png

image2emf

image4png

image5jpeg

From Steve SmithTo WSDOT Disparity StudyCc Bayne JackieSubject 19 DBE RequirementDate Thursday December 14 2017 31947 PMAttachments DBE List and NAICS Listingpdf

Disparity Committee I recently read in The Daily Journal of Commerce that WSDOT plans to adopt a 19 DBEstandard for all FHWA funded projects early next year Our company S amp K Painting Inc is abridge painting company which is based in and works exclusively in Oregon and Washington Ihave been the owner of this firm since 1978 when it was first established My concerns aboutthe proposed 19 DBE requirement is as follows 1 There are very few opportunities for subcontract work on bridge repaint jobs These jobsare usually limited to cleaning and painting the bridge The only other facet of the project istraffic control which is almost always 3 or less of the project total cost The traffic controldoes provide a very good subcontracting opportunity 2 The NAISC code of 238320 includes bridge painting but also includes house painting wallcovering rust proofing etc which have almost no similarities to bridge painting When thiscode is used to determine the number of available firms (DBE or otherwise) that are availablefor bridge painting project this badly skews the numbers I would suggest that bridge paintingcontractors make up less than 5 of all firms in NAISC code 238320 3 If future WSDOT bridge painting projects require a 19 DBE participation A The qualified pool of DBE subcontractors available to submit pricing on any facetother than traffic control will be very limited I reviewed a list of 19 certified DBE firms listedunder painting at the WSDOT website and only recognized one firm from past projects B The number of prime bidders and competition will fall The state will incur highercosts due to this fact C Prime bidders will be forced to subcontract unqualified contractors just to be eligiblefor contract awards This will likely reduce the quality of the finished project Thank you for considering my concerns I may not have verbalized my thoughts as well as Iwould have liked but I have been in this business for almost 40 years and truly believe what Ihave said Sincerely

Steve Smith President

SampK Painting incP O BOx 390clacKamaS OregOn 97015Phone (503) 557-5544Fax (503) 557-5566Cell (503) 260-5280Steveskpaintingcom

From Lei WuTo Bayne JackieSubject comments on WSDOT proposed DBE goalDate Thursday December 14 2017 94925 PM

To Whom It May Concern

Below is my comments

The WSDOT recommended DBE Goal for FHWA contracts of 190 is a small andimportant increase that can further achieve equity in WSDOTFHWA contracting I am insupport of the 19 DBE Goal

I also want to express my appreciation for the thoroughness of the WSDOT Disparity studyand how the study disclosed the disparity in WSDOT contracts that do not have a DBE orWBE goal ndash further reinforcing that all women-owned firms and minority owned firms faceequity issues

I remain concerned with the methodology required by the Code of Federal Regulations andcase law because of the dependence on the availability of firms in the calculation Anunintended consequence of removing either gender or race from the goal is that many of thesefirms would go out of business the availability decreases and the formula then results in asmaller DBE goal

Thanks

Lei

Lei Wu PE AICP

Principal CSL Consulting

LeiWucsl-consultingnet

(425)562-6275

From Stephanie SimpkinsTo WSDOT Disparity StudySubject DBE Contracting goalsDate Wednesday November 29 2017 20259 PM

My name is Stephanie Simpkins and I own North Star Enterprises It is a large womanowned traffic control company located in Spokane Washington My mother founded thecompany in 1984 and I have worked in this family owned business most of my life Ipurchased the business from her in 2013 and have been sole owner since then My company thrived under the Disadvantaged Business Enterprise (DBE) Programimplemented by Washington Department of Transportation and administrated by United StatesDepartment of Transportation What started as a small business with one truck and a fewemployees has grown over the years to be one of the largest traffic control companies in thestate and employee countless people every construction season It has not been an easy roadover the years being a woman in the construction industry never is and it is hard to say wherewe would be now if it werenrsquot for the assistance of the DBE program As you know in June of 2017 majority women were removed from the DBE program basedon a disparity study conducted in 2012 On March 2014 Washington Department ofTransportation requested a wavier to remove majority women from the DBE program Thishas had an immediate and drastic impact on my business and all who work for me From themoment the waiver was approved and my company could no longer be used as a condition ofaward at bid time I began losing work Most recently the 2018 North Central Region ChipSeal which we have worked on for the last 10 years This contract provides work forapproximately 40 employees for the entire construction season I have already been told byseveral contractors that with such a high UDBE goal they wont even be able to consider mefor this project This loss along with several other smaller contracts to date are painting avery dismal future for my business With all of this turmoil surrounding the future of my business I find it frustrating to say theleast that WSDOT has chopped me off at the legs by not allowing my firm to count for theCOA but can use the little participation I may still contribute to help them reach their overallstate goal How is this fair If the contractors canrsquot utilize my business than neither shouldWSDOT As far as setting future state DBE contracting goals it looks as if the bar will beraised once again all while excluding the largest subset of useable DBErdquoS To me raising theoverall state goal at this time (which is already challenging to meet) with women DBErsquosexcluded from the program seems horribly ill timed

From Karen R BannishTo Bayne JackieSubject DBE GoalDate Tuesday December 5 2017 32549 PM

Hello Jackie ndash thank you for the webinar today concerning the proposed Overall DisadvantagedBusiness Enterprise Goal for the Federal Highway Administration I understanding the DisparityStudy much better now and checked the document you mentioned on the WSDOT website Pacific County is located in the Southwest corner of the State of Washington The tip of the LongBeach Peninsula would be 2 frac12 hours from Interstate 5 Our federal work primarily includes strictlyoverlay projects with 12 or fewer items of work included in the contract When bidding a project(our contracts are usually less than $500000) we sometimes received a single bid from the process Due to our proximity and the small cost for the work it is difficult to entice DBE participation Thereare simply no items of work that can be performed Having a mandatory DBE goal placed upon theproject in a rural area simply to meet the disparity guidelines will only increase the cost of theproject We feel the goals should be set in balance with the cost of the project and the items of work and notsimply directed to meet the overall goal

Karen BannishSenior Engineering TechnicianPacific County Department of Public Works211 North Commercial StreetRaymond WA 98577(360) 875-9368

From Dawn EgbertTo Bayne JackieSubject DBE Program Disparity StudyDate Tuesday December 5 2017 23825 PM

Hi JackieThank you for the great information on the call today You talked about the small works rosterbriefly We had a conversation in our office today about small contractors who are signed up on thePort of Vancouverrsquos small works roster Our team has had opportunity to talk to some of thecompanies on our roster who are women owned or minority owned businesses but they arenrsquotsigned up as a DBE firm When asked about that theyrsquove mentioned that they donrsquot want to fill outthe additional paperwork required to obtain the certification as a DBE As for the DBE goal at 19 it doesnrsquot seem to present an issue for the majority of our projects ndashespecially those where we would apply FHWA funds if granted However if we did happen to have aproject that didnrsquot include classifications of work where DBE certified participants are availablewould there still be an exception or a good faith efforts clause Thanks again for your time Dawn EgbertProcurement Services Manager3103 NW Lower River Road Vancouver WA 98660Direct 3609921102 | Cell 360448-9867 | Main 3606933611 | Fax 360735-1565degbertportvanusacom | wwwportvanusacom | available port properties Leadership | Stewardship | Partnership

From Feist MarleneTo WSDOT Disparity StudyCc Simmons Scott M Twohig KyleSubject Disparity Study Comments from City of SpokaneDate Friday December 15 2017 52226 PMAttachments image010png

image011pngimage012png

December 15 2017 Jackie BaynePolicy amp Reporting ManagerOffice of Equal OpportunityWashington State Department of TransportationPO Box 47314Olympia WA 98504-7314 RE Proposed DBE Contracting Goal for Highway Projects Dear Ms Bayne The City of Spokane would like to provide comments related to proposed DisadvantagedBusiness Enterprise Goal for Federal Highway Administration (FHWA) contracts by theWashington State Department of Transportation (WSDOT) Office of Equal Opportunity Manyof our projects receive funding from FHWA and as such the proposed new goals areapplicable to City work The City is supportive of the programrsquos purposemdashldquoto create a level playing field for firmsowned and operated by disadvantaged individuals wanting to participate in federally assistedhighway transit or aviation programsrdquo However the City is concerned about the ability to achieve the proposed utilization rate of upto 19 percent for DBEs in Eastern Washington considering the low number of DBEs in ourregion and the record construction under way in the City and in our region WSDOTrsquos DBE Program Disparity Study notes ldquoContractors in Eastern Washington repeatedlyreported that the goals on projects in their area are too highrdquo The Inland NorthwestAssociated General Contractors group notes that only about 12 DBEs in construction fields areavailable in the greater Spokane area Meanwhile the City has performed record construction in each of the last three years withproject totals hovering around $100 million Our City work has been bolstered by anaggressive program to improve water quality in the Spokane River Our local school districtsand our neighboring jurisdictions also have aggressive construction programs right now

Additionally we expect WSDOTrsquos work in this region to accelerate as North Spokane Corridor(NSC) construction proceeds At times our area is reaching the limits overall of our contractingcommunity the City has worked to release its projects in the first quarter of the year as muchas possible to lock in contractors and receive better pricing The capacity of existing DBEs in our region simply cannot meet that current high demand Some DBE firms are tempted to agree to more work in these times but we have found that insome cases DBEs have stretched themselves too thin On two recent City projects generalcontractors were unable to meet DBE goals as a result of DBE firms that couldnrsquot fulfill theircommitments for providing personnel or equipment It also seems implausible to expect DBEs from the West Side to mobilize teams to work on Cityof Spokane projects in large numbers In fact the Disparity Studyrsquos author responded at arecent meeting on this topic that a DBE from the West Side only very rarely completes workon the East Side of the state We would also be concerned about moving the good-paying jobs that construction providesoutside of our region The Cityrsquos median household income is $44350 considerably lower than theState of Washington MHI of $64129 and the Seattle MHI of $77351 Our leaders are working tocreate good-paying jobs for our citizens not export them to an already wealthier part of the state Additionally these projects are also funded with local dollars and our citizens expect their money toput their neighbors to work With the above considered the City is seeking

middot DBE goals for the 2018-2020 compliance period for Eastern Washington that arereflective of the current availability of DBE firms in our region

middot The re-inclusion of non-minority women owned DBEs in achieving DBE goals InSpokane non-minority women owned DBEs make up the majority of the availableDBEs And current information shows that women in Spokane overall still lag behindmen in opportunities and wages The Cityrsquos own ldquoGender and Racial Equityrdquo reportfrom 2016 noted that overall working women earned 783 percent of the earnings ofworking men in 2014 down from 827 percent in 2009 We need to lift up all women

middot The development of WSDOT programs to encourage the growth of existing andnew DBEs who can be used on street and highway projects We are encouraged by theproposed mentorproteacutegeacute program to increase the number and capacity of DBEs inEastern Washington Programs that address other barriers such as assistance withcompleting documentation or access to bonding capacity also could aid growth ofDBEs

middot The ability for WSDOT to adjust goals on a project if a selected DBE is unable tocomplete its commitments on a project This would help enable our contractors totake a chance on a new or inexperienced DBE to complete work

middot Recognition of local programs that strive to increase diversity in the work force Forexample the City operates a robust apprenticeship program that requires 15 percentof the labor hours on public works jobs greater than $600000 to be performed byapprentices The apprentice programs in our region are stepping up recruitmentefforts and are specifically seeking to recruit more youth women and minorities intoapprentice slots

As we seek to achieve the goal of increasing participation in street and highway constructionby companies owned by disadvantaged individuals we must also acknowledge that businessdevelopment and growth happens over time We must lay the groundwork now to build abase of DBEs that can help us achieve higher utilization goals over time Sincerely Marlene FeistDirector of Strategic DevelopmentPublic Works amp UtilitiesCity of Spokane

Marlene Feist | City of Spokane | Public Works Director of Strategic Development5096256505 | cell 5097109214 | mfeistspokanecityorg | spokanecityorg

From Hall MattTo WSDOT Disparity StudySubject FW WSDOT News - WSDOT seeks comments on proposed DBE contracting goal for highway projectsDate Friday December 15 2017 11956 PMAttachments WSDOT proposed DBE goal through 2020pdf

From Hall Matt Sent Friday December 15 2017 117 PMTo BayneJwsdotwagovCc Keniston Rick (KenistRwsdotwagov) MolyneKwsdotwagov SusanWilsonclarkwagovSubject WSDOT News - WSDOT seeks comments on proposed DBE contracting goal for highwayprojects Hello Jackie Please see our comments attached regarding the WSDOT proposed DBE goals Thanks for the opportunity to provide comments Matt HallClark County Public Works Washington State Department of Transportation ndash NEWSHeadquarters ndash 310 Maple Park Avenue SE ndash Olympia WA 98504-7314 ndash 360 705-7000 FOR IMMEDIATE RELEASEOct 30 2017 Contact Jackie Bayne Office of Equal Opportunity 360 705-7084

WSDOT seeks comments on proposed DBEcontracting goal for highway projectsComments accepted through Dec 15OLYMPIA ndash Contractors trade and labor organizations small and disadvantaged businessesand all others who may be interested in working with the Washington State Department ofTransportation are invited to comment on the agencyrsquos proposed Disadvantaged BusinessEnterprise goal for Federal Highway Administration contractsDBE goals for transportation projects that receive federal funds represent a percentage of thevalue of work in which minority- and women-owned businesses should participate WSDOTis proposing a 19 percent overall DBE participation goal on Federal Highway Administration-funded projects for federal fiscal years 2018 through 2020Once submitted to FHWA early next year the goal will be effective through Sept 30 2020The purpose of the DBE program is to create a level playing field for firms owned andoperated by disadvantaged individuals wanting to participate in federally assisted highwaytransit and aviation programsConnecting with communitiesWSDOT will host a series of public meetings to provide opportunities for individuals tocomment in person

Spokane

2 ndash 4 pm Tuesday Nov 28WSDOT Eastern Region Headquarters2714 N Mayfair St Spokane

Vancouver

2 ndash 4 pm Wednesday Nov 29WSDOT Vancouver Headquarters11018 NE 51st Circle Vancouver

Seattle

2 ndash 4 pm Thursday Dec 7WSDOT Northwest Region Headquarters15700 Dayton Ave N Shoreline

Other ways to provide commentThose who are unable to attend one of the meetings can participate in a no-cost webinar from230 ndash 430 pm Tuesday Dec 5 Registration for the webinar is required Those interested inparticipating should email DisparityStudywsdotwagovWritten comments can also be submitted by mail or emailJackie Bayne Policy amp Reporting ManagerWashington State Department of TransportationOffice of Equal OpportunityPO Box 47314Olympia WA 98504-7314DisparityStudywsdotwagovDocuments detailing the methodology used for determining the FHWA DBE goals areavailable for review at all WSDOT region headquarters offices and at the TransportationBuilding 310 Maple Park Ave SE Olympia They are also available online atwwwwsdotwagovequalopportunityWSDOT will consider all written comments received through Friday Dec 15 2017 Hyperlinks within this release

WSDOT Region offices wwwwsdotwagovContactofficelocationhtmregion

WSDOT keeps people businesses and the economy moving by operating and improving the statestransportation systems To learn more about what were doing go to wwwwsdotwagovnews forpictures videos news and blogs Real time traffic information is available at wwwwsdotcomtraffic or bydialing 511 Americans with Disabilities Act (ADA) InformationAccommodation requests for people with disabilities can be made by contacting the WSDOTDiversityADA Affairs team at wsdotadawsdotwagov or by calling toll-free 855-362-4ADA (4232)Persons who are deaf or hard of hearing may make a request by calling the Washington State Relay at711 Title VI Statement to Public It is WSDOTrsquos policy to assure that no person shall on the grounds ofrace color national origin or sex as provided by Title VI of the Civil Rights Act of 1964 be excluded fromparticipation in be denied the benefits of or be otherwise discriminated against under any of its federallyfunded programs and activities Any person who believes his or her Title VI protection has been violatedmay file a complaint with WSDOTrsquos Office of Equal Opportunity For additional information regarding Title

VI complaint procedures andor information regarding our non-discrimination obligations please contactOEOrsquos Title VI Coordinator at 360-705-7090 To unsubscribe to WSDOT media releases please reply and type REMOVE in the subject line

This e-mail and related attachments and any response may be subject to public disclosure under state law

From Cochrane EmilieTo WSDOT Disparity StudyCc Eugenis Susan Cowlitz Co Public Works - Brad BastinSubject Proposed DBE GoalsDate Thursday December 14 2017 85006 AMAttachments image002png

DBE Goals - Commentspdf

Please see the attached letter with comments regarding the proposed DBE Goals Ahard copy will be sent out today

Thanks

Emilie CochraneCowlitz County Public Works1600 ndash 13th Avenue SKelso WA 98626360-577-3030 ext 6523

From Michelle WolcottTo Bayne JackieCc Robideau Christopher LSubject RE DBE Contracting Goal CommentsDate Tuesday November 7 2017 65448 AMAttachments image001png

Thank you JackieWhat a relief to know that we have been heard and are not the only small business facing thisstruggle Your email is comforting

Yes you can provide us with additional assistanceLet me introduce my boss and Senior Vice President of Red Plains Professional Chris Robideau

Chris will be your contact from here since I will be leaving the company November 17th As a WA DBE we are ldquoeligible for limited DBE Support Services (SS) funding when funds becomeavailablerdquo When will this happen And are we registered or on a list to receive fundingIs the WSDOT ICR Training a prerequisite for the funding Or just helpful knowledge

Thank you for your time Jackie I will follow through with the training

Michelle Wolcott EIT Quality Control Engineer

2103 NE 129th Street Suite 201 Vancouver WA 98686 Office (360) 448-7999 Fax (360) 258-0274

wwwred-plainscom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Monday November 6 2017 332 PMTo Michelle Wolcott ltMichelleWolcottred-plainscomgtSubject RE DBE Contracting Goal Comments

Hi Michelle

Thank you for your interest in doing business with WSDOT I apologize for the lack of informationyou have come up against in your attempts to attain access to WSDOT ICR program

As you may well know WSDOT has recently completed a state wide agency specific diversity studyAnecdotal comments submitted with the study concur with your experience Not only did somerespondents find it difficult to become prequalified they also commented that the required indirectrate of 110 percent is too low to be profitable These requirements are currently under advisementby WSDOT and new DBE program requirements are currently in the process of seeking public input

As you are an OMWBE certified DBE in Washington State you will be eligible for limited DBE SupportServices (SS) funding when these funds become available At that time funds may become availableto assist you in your struggle to attain ICR eligibility Here is a link to WSDOTrsquos Indirect Cost RateTraining httpswwwwsdotwagovAuditICRTraininghtm If you would like me to find additionaltraining or information please let me know

If I can provide additional assistance of information please let me know

Best Regards

Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Michelle Wolcott [mailtoMichelleWolcottred-plainscom] Sent Tuesday October 31 2017 835 AMTo WSDOT Disparity Study ltDisparityStudyWSDOTWAGOVgtSubject DBE Contracting Goal Comments

HelloI have been in contact with WSDOT for 6 months sharing my disparaging story of beinga small DBE unable to submit SOQs for projects requiring a WSDOT Audited IndirectCost Rate Approval We do not have an in-house accountant and our outsideaccountant has explained to get all the paperwork together for WSDOT would take 40hours of work $9000 annually We cannot justify this cost to submit on a project thatwe may not acquire We have been directed to seek financial assistance from WSDOT Federal SBA andWashington State Office for Women and Minority Owned Enterprises all of whichprovided negative responses

As a DBE business in 11 states we are supporting the 19 incentive for federallyfunded contracts but we are frustrated in the fact that we will not be one of the luckyfew to participateWe have been in business 20 years From our Vancouver Washington office our clientsare the Native American tribes across the country with all contracts federally funded This summer alone the WSDOT ICR Approval has squashed our ability to submit on twoprojects that we were perfectly qualified to performI have attached previous emails to show a sample of who I have been dealing with

Thank you

Michelle Wolcott EIT Quality Control Engineer

ltimage001pnggt

2103 NE 129th Street Suite 201 Vancouver WA 98686 Office (360) 448-7999 Fax (360) 258-0274 wwwred-plainscom

From Michelle Wolcott Sent Monday July 10 2017 954 AMTo Harvey Schatzie ltHarveySwsdotwagovgtSubject RE WSDOT Indirect Cost Rate Process

Good Morning Schatzie

This is Michelle Wolcott from Red We spoke Friday June 30th about the ICRprocess and you were very encouraging I relayed the information to my boss who ishere in Vancouver then he shared with the president bookkeeper and our accountantin Oklahoma We had FAR compliance with Oklahoma DOT in 2015 so we are noteligible for the Safe Harbor Program Our account said our timekeeping system doesnot breakdown the hours and pay in the format WSDOT wants to have it presented andto get the documents in order would take the CPA and an assistant $9000 in paidhours of work It turns out this would have to be annually The other option is to hirean outside CPA firm to do the audit for us at $20000 annually

Our president said in the past we received funding assistance from the Stateof Oklahoma to get our ICR approval Does WSDOT offer any financial assistance for small businesses to reach compliance We are also a DBE in WA I have requested the same information from WA PTAC at theVancouver Chamber of Commerce and from WA Office of Minority and Women OwnedBusiness Enterprises and they both said there was nothing but suggested to askWSDOTThank you for your helpMichelle Wolcott EIT

Hello Michelle sorry but I am not aware of any grants But I was looking at this andthere is a POC at the bottom you may try to discuss the audit issuesHollyHolly BoehmeBusiness Opportunity Specialist | 8(a) Business Development ProgramUS Small Business Administration bull Seattle District Office

Hello Michelle -

Thank you for your email Im not aware of any funding available for thispurpose but do agree its quite a bit for a DBE firm to have as an expense Mostof the firms I work with do a lot more work on the Oregon side so perhaps thereare programs available that I just havent heard of Im copying my colleagueHoly Boehme in our Seattle District Office to see if they are aware of any suchassistance

Holly might there be some small business incubators or other resources availablein WA to help a small firm with the expense of getting a WSDOT AuditedIndirect Cost Rate approval Please reply all with anything you may have

Thank you

Yuri Yoshida Dyson Business Opportunity SpecialistUS SMALL BUSINESS ADMINISTRATION Portland District OfficePhone 503-326-6692 Fax 202-292-3872 wwwsbagovor

From Troy HalbergTo Bayne JackieSubject Re DBE Goal CommentsDate Wednesday December 13 2017 35533 PM

JackieToday was another example of why the goals should not be raised There were 2 jobs which Iwas low on and did not get due to the high goals This is exactly what will happen when thegoals get raised The first job was the 9180 Anacortes Ferry Paving Northeast Electric $244924 and UDBE $318000 Second job was the 9172 SR 9 East Junction Job Northeast Electric $68503 and UDBE $76300

Does this seem like a good way to spend the tax payer money I do not see how we are tosurvive if the goals get to 21

Thanks

Troy HalbergOffice360-225-7004Cell360-931-3990Fax360-225-7001

On Thu Nov 30 2017 at 1131 AM Bayne Jackie ltBayneJwsdotwagovgt wrote

Good Morning Troy

Thank you for taking the time to provide us with your experiences with the DBE Program TheWashington State Department of Transportation takes the public involvement process veryseriously and your comments will be taken into consideration prior to a final decision regardingthe overall DBE program goal

If I can be of further assistance please let me know

Best Regards

Jackie Bayne

Policy and Reporting Manager

WSDOT Office of Equal Opportunity

Work (360) 705-7084

Cell (360) 338-5783

BayneJwsdotwagov

From Troy Halberg [mailtotroyhnellcnet] Sent Wednesday November 29 2017 144 PMTo WSDOT Disparity Study ltDisparityStudyWSDOTWAGOVgtSubject DBE Goal Comments

If these goals are to be set that high this would make us as a non DBE small contractor at amajor disadvantage With these high of goals this is like handing all of the DBE electricalcontractors every job These general contractors will have no option but to use thembecause of the goals This should not go into effect We have been low on several jobs in thepast and have not gotten them do to the goals being 18 When this goes on it puts all therest of us contractors at a disadvantage Please consider the smaller non DBE contractorsthat are looking to survive as well

Thanks

Troy Halberg

Office360-225-7004

Cell360-931-3990

Fax360-225-7001

From Daniel Seydel IITo Bayne JackieCc Key Earl daneiwashingtonorg Nadeem Ismail Mussie Tewelde (mteweldehydro2geotechcom)

graceflyrightaolcom Mary Wenner Watkinson LarrySubject Re Seydel Dan - WSDOT Disparity Study Presentation Public TestimonyDate Friday December 8 2017 30323 PM

Jackie

It was my hope that the comments would be put into record I was also hoping that you wouldnot have to be the one having to formulate responses for each clarification If that is the caseI know you are swamped and will then I just ask my comments be only part of the recordHowever if there is dedicated staff that is going to be compiling and responding to theclarification then the below questions would be the priorities of most interest

These were questions unrelated to the disparity study and hopefully should be doable

1) Do you have any reports on your outcomes from the past 5 years on DBE support servicesand specific key performance measures from previous years funding (ie how many firmsutilized what was the objectives were objectives met did outcomes meet total satisfaction ifnot why next steps what was the firms capacity before and after services were performed (iesales employees bonding if applicable insurance equipment line of credit if applicablenumbertype of customers how are they doing now etc))

2) What other changes or improvements other than allowing DBES to select their own serviceproviders and a staff change will be a part of this new program

3) Was consideration to provide the new mentor protege consultant rather than separating theactivities into support services andor technical assistance

Disparity study clarifications

1) Will WSDOT consider sponsoring legislation to support the policy changes and goalincreases to insure manditory goals wont be necessary

a) If not what measures will you grant primes to operate outside the box (ie entertain bestvalue over low bid modify responsiveness by subs to require adherence to meeting voluntarygoals developing standards around federally funded gccm and other low bid procurementsthat give powers to primes to meet objectives including but not limited to mentor protegerelationships joint ventures bond waiving techniques cash flow assistance material andequipment acquisition manufacturer development specifications that have only DBES orinclude equal number of DBES as non DBES as approved installers etc)

2) Will the disparity study consultant be available for implementation or information gatheringfrom other regions

5) Will WSDOT be hiring more diverse staff amp professionaltechnical service providers inother departments outside OEO to insure policies commitments and evaluations areperformed in manner that improves diversity that reflects the communities WSDOT serves bythoughtful and legal efforts increase participation thus creating successful outcomes includingpartnerships and collaborations

Thank you and Merry Christmas

Hi Dan

Thank you for providing such thoughtful public comments questions and testimony

Regarding your public testimony below - I do not believe I am not able to answer questions ifthey are public comments Please let me know what part of this email you would likeclarification on and what part you would like considered public testimony

I appreciate your thoughtful consideration of WSDOTrsquos implementation of our civil rightsprograms

Best Regards

Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

DIDaniel Seydel IIFyi Daniel J Seydel II Platinum Group LLC 2064060844 f) 2062999934wwwplatinumbusinessgroupcom Small Business is the Answer FREE TRAINING FORENTREPRENEURS amp JOB SEEKERS - Polish your skills or make your firm standout thanksto the EntrepreneurialThu 233pDI

Daniel Seydel IIThu 1272017 1123 AMInbox Sent ItemsShow all 7 recipientsTobaynejwsdotwagov ltBayneJwsdotwagovgtJackie

Per your request below are my questions and comments some of which were verbally sharedyesterday

Congratulations on receiving the blessing of additional technical assistance dollars andcompleting the DBE Disparity Study per your report

1) Do you have any reports on your outcomes from the past 5 years on DBE support servicesand specific key performance measures from previous years funding (ie how many firmsutilized what was the objectives were objectives met did outcomes meet total satisfaction ifnot why next steps what was the firms capacity before and after services were performed (ie

sales employees bonding if applicable insurance equipment line of credit if applicablenumbertype of customers how are they doing now etc))

2) What other changes or improvements other than allowing DBES to select their own serviceproviders and a staff change will be a part of this new program

3) Was consideration to provide the new mentor protege consultant rather than separating theactivities into support services andor technical assistance

Disparity study clarifications andor comments

1) Will WSDOT consider sponsoring legislation to support the policy changes and goalincreases to insure manditory goals wont be necessary

a) If not what measures will you grant primes to operate outside the box (ie entertain bestvalue over low bid modify responsiveness by subs to require adherence to meeting voluntarygoals developing standards around federally funded gccm and other low bid procurementsthat give powers to primes to meet objectives including but not limited to mentor protegerelationships joint ventures bond waiving techniques cash flow assistance material andequipment acquisition manufacturer development specifications that have only DBES orinclude equal number of DBES as non DBES as approved installers etc)

2) Will the disparity study consultant be available for implementation or information gatheringfrom other regions

3) What lessons did WSDOT learn that it did not know from the other study(s)

4) What would WSDOT do different (ie scope time line process approach etc)

5) Will WSDOT be hiring more diverse staff amp professionaltechnical service providers inother departments outside OEO to insure policies commitments and evaluations areperformed in manner that improves diversity that reflects the communities WSDOT serves bythoughtful and legal efforts increase participation thus creating successful outcomes includingpartnerships and collaborations

Daniel J Seydel IIPlatinum Group LLC 2064060844f) 2062999934wwwplatinumbusinessgroupcom

Small Business is the Answer

FREE TRAINING FOR ENTREPRENEURS amp JOB SEEKERS - Polish your skills or makeyour firm standout thanks to the Entrepreneurial Institute of Washington

httpswwwyoutubecomchannelUCKL5YeVxL29HnNxqnb6hmXA

LIKE US on FaceBook if an Active Professional Development workshop provided by EIW

Construction University helps your firm or has benefited you

httpswwwfacebookcomEIWashingtonref=hl

From Bayne Jackie ltBayneJwsdotwagovgtSent Friday December 8 2017 10139 PMTo Daniel Seydel IICc Key Earl daneiwashingtonorg Nadeem Ismail Mussie Tewelde(mteweldehydro2geotechcom) graceflyrightaolcom Mary Wenner Watkinson LarrySubject RE Seydel Dan - WSDOT Disparity Study Presentation Public Testimony Hi Dan Thank you for providing such thoughtful public comments questions and testimony Regarding your public testimony below - I do not believe I am not able to answer questions if theyare public comments Please let me know what part of this email you would like clarification on andwhat part you would like considered public testimony I appreciate your thoughtful consideration of WSDOTrsquos implementation of our civil rights programs Best Regards Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov From Daniel Seydel II [mailtodanplatinumbusinessgroupcom] Sent Thursday December 7 2017 1123 AMTo Bayne Jackie ltBayneJwsdotwagovgtCc Key Earl ltKeyEwsdotwagovgt daneiwashingtonorg Nadeem Ismailltnipaintingearthlinknetgt Mussie Tewelde (mteweldehydro2geotechcom)ltmteweldehydro2geotechcomgt graceflyrightaolcom Mary Wennerltmwenn0108yahoocomgtSubject Seydel Dan - WSDOT Disparity Study Presentation Public Testimony Jackie

Per your request below are my questions and comments some of which were verbally sharedyesterday

Congratulations on receiving the blessing of additional technical assistance dollars andcompleting the DBE Disparity Study per your report

1) Do you have any reports on your outcomes from the past 5 years on DBE support servicesand specific key performance measures from previous years funding (ie how many firmsutilized what was the objectives were objectives met did outcomes meet total satisfaction ifnot why next steps what was the firms capacity before and after services were performed (iesales employees bonding if applicable insurance equipment line of credit if applicablenumbertype of customers how are they doing now etc))

2) What other changes or improvements other than allowing DBES to select their own serviceproviders and a staff change will be a part of this new program

3) Was consideration to provide the new mentor protege consultant rather than separating theactivities into support services andor technical assistance

Disparity study clarifications andor comments

1) Will WSDOT consider sponsoring legislation to support the policy changes and goalincreases to insure manditory goals wont be necessary

a) If not what measures will you grant primes to operate outside the box (ie entertain bestvalue over low bid modify responsiveness by subs to require adherence to meeting voluntarygoals developing standards around federally funded gccm and other low bid procurementsthat give powers to primes to meet objectives including but not limited to mentor protegerelationships joint ventures bond waiving techniques cash flow assistance material andequipment acquisition manufacturer development specifications that have only DBES orinclude equal number of DBES as non DBES as approved installers etc)

2) Will the disparity study consultant be available for implementation or information gatheringfrom other regions

3) What lessons did WSDOT learn that it did not know from the other study(s)

4) What would WSDOT do different (ie scope time line process approach etc)

5) Will WSDOT be hiring more diverse staff amp professionaltechnical service providers inother departments outside OEO to insure policies commitments and evaluations areperformed in manner that improves diversity that reflects the communities WSDOT serves bythoughtful and legal efforts increase participation thus creating successful outcomes includingpartnerships and collaborations

Thank you for your hard work

Daniel J Seydel IIPlatinum Group LLC2064060844f) 2062999934wwwplatinumbusinessgroupcom

Small Business is the Answer

FREE TRAINING FOR ENTREPRENEURS amp JOB SEEKERS - Polish your skills or makeyour firm standout thanks to the Entrepreneurial Institute of Washington

httpswwwyoutubecomchannelUCKL5YeVxL29HnNxqnb6hmXA

LIKE US on FaceBook if an Active Professional Development workshop provided by EIWConstruction University helps your firm or has benefited you

httpswwwfacebookcomEIWashingtonref=hl

From Erin EhlingerTo Bayne JackieSubject Support for WSDOTs proposed DBE goalDate Wednesday December 13 2017 115417 AM

I am writing to support the WSDOT recommended DBE Goal for FHWA contracts of 190 I also want to express my appreciation for the thoroughness of the WSDOT Disparity study and howthe study disclosed the disparity in WSDOT contracts that do not have a DBE or WBE goal ndash furtherreinforcing that all women-owned firms and minority owned firms face equity issues I remain concerned with the methodology required by the Code of Federal Regulations and case lawbecause of the dependence on the availability of firms in the calculation An unintendedconsequence of removing either gender or race from the goal is that many of these firms would goout of business the availability decreases and the formula then results in a smaller DBE goal Pleaselet me know how I can help influence a change to the CFR Thank you Erin Ehlinger

Erin Ehlinger PEPresident

24036 SE 47th StSammamish WA 98029erinehlingersmartcitytrafficcom425-221-0320

From Jackie EtterTo WSDOT Disparity StudySubject Why we need mandatory goalsDate Friday December 1 2017 61859 PM

As a DBE participating in bidding process I have found that regardless of the language which claims to insurethat disadvantaged business enterprises shall not be discriminated against the only way to ensure that this does nothappen is by mandating affirmative action goals Having been overlooked time and time again because of my gender when I have submitted bids that are verycompetitive with other bidders is very frustrating I have had many instances of companies using my price to getmy non DBE competitors to lower theirs The voluntary or laudatory DBE goals do nothing to ensure a level playing fieldThe only way to ensure non-discrimination is through mandatory goals

Jackie EtterWest Star Construction of Spokane

Sent from my iPhone

From Claudia HirscheyTo Key Earl Bayne JackieSubject WSDOT DBE Goal - Comment in supportDate Tuesday December 12 2017 61937 PM

Dear Earl and Jackie The WSDOT recommended DBE Goal for FHWA contracts of 190 is a small and important increasethat can further achieve equity in WSDOTFHWA contracting I am in support of the 19 DBE Goal I also want to express my appreciation for the thoroughness of the WSDOT Disparity study and howthe study disclosed the disparity in WSDOT contracts that do not have a DBE or WBE goal ndash furtherreinforcing that all women-owned firms and minority owned firms face equity issues I remain concerned with the methodology required by the Code of Federal Regulations and case lawbecause of the dependence on the availability of firms in the calculation An unintendedconsequence of removing either gender or race from the goal is that many of these firms would goout of business the availability decreases and the formula then results in a smaller DBE goal Sincerely Claudia S Hirschey PETransportation Consulting Servicesclaudiahirscheycomcastnethttphirscheytcscom2068564988 Mobile

From Nate ThomasTo WSDOT Disparity StudySubject WSDOT Proposes DBE goal of 19Date Thursday December 7 2017 42720 PM

The WSDOT should look into similar ways the Federal Gov has handled the equal opportunity forthose that fall under the DBE status and set aside specific projects for the DBErsquos and moreimportantly UDBErsquos so these companies have better chance of landing contracts Maybe a lot 10 ofthe DBE goal to set aside for only DBEs and other 9 goal met as it is done currently with COA onlarger contracts Nate ThomasSenior EstimatorD 5095688085 | C 5099941156331 North Fancher Road | Spokane WA | 99212

The information contained in this email including any attachments is confidential and may beprivileged It is intended only for the person or entity to which it is addressed and no waiver isintended by sending this email If the reader is not the intended recipient you are herebynotified that any review retransmission dissemination or other use of or taking any action inreliance upon this information is strictly prohibited If you have received this email in errorkindly notify the sender by reply email and delete the original message from any computerThank You

From Brian FujiiTo WSDOT Disparity StudySubject WSDOT propsed DBE GoalsDate Thursday December 7 2017 110638 AM

Good morning Jackie

I wanted to comment on WSDOTs proposed DBE goal to 19 I believe WSDOTs plan toincrease the overall DBE goal to 19 will provide greater opportunities for DBE contractorsin different disciplines to participate in federally funded contracts

Without the new DBE requirement and with Proposition 200 there are limited opportunitiesfor DBE contractors in disciplines different than the typical trucking flagging and rebar Inaddition there are no incentives for general contractors to go out beyond the usual truckingflagging and rebar DBE subcontractors

Increasing the DBE goals will provide opportunities for different DBE contractors in differentdisciplines to participate in WSDOT federally funded projects

Thank you for your time

RespectfullyBrian FujiiPresident Subsurface ConstructionP 2063836478F 2069604639MDBE 4M0024998

From Forman StephanieTo Bayne JackieCc Millar Roger christinenhanmailhousegov Claudia Hirschey Sarah Corbin Jiang Yingle

efaulknerenviroissuescom Diana Giraldo Kelly CheesemanSubject WTS - Disparity Study Comment LetterDate Friday December 15 2017 71020 PMAttachments 2017_Dec 15_WTSCommentLetter_WSDOT DBE Goalpdf

Dear Ms Bayne Please find our attached letter which summarizes the WTS Puget Sound Chapterrsquos support foradvancement of women in transportation and our comment letter regarding the recent DisparityStudy Please feel free to contact me if you have any questions or would like to discuss Sincerely Stephanie S Forman PEWTS Puget Sound President Transportation Project Manager

929 108th Avenue NE Suite 1300Bellevue WA 98004D 4254681548 M 2062291745stephanieformanhdrinccom

December 15 2017

Jackie Bayne Policy and Reporting Manager

Office of Equal Opportunity

Washington State Department of Transportation

PO Box 47314

Olympia WA 98504-7314

Dear Ms Bayne

On behalf of the Puget Sound Chapter of Womenrsquos Transportation Seminar (WTS) we would

like to thank the Washington State Department of Transportation for presenting to our

organization the DBE Disparity Study results We very much appreciated the presentation by Earl

Key Director of WSDOTrsquos Office of Equal Opportunity Teresa Berntsen (Director Office of Minority

and Womens Business Enterprises) as well as Leslie Jones (Director Sound Transit Office of Small

Business Development and Labor Compliance)

Following a review of the WSDOT Disparity Study and as a result of consultation with WTS

International we would like to provide WSDOT with our comments for your consideration

As you know WTS is an organization focused exclusively on attracting retaining and advancing

women in transportation By the year 2018 there will be thousands of vacancies in the

transportation industry for qualified professionals and while women account for more than half of

the worldrsquos workforce they are a very small minority in transportation disciplines

We are pleased that the outcome of the 2017 Disparity Study that recognizes the on-going barriers

for DBEs including women-owned businesses in transportation The WSDOT recommended DBE

Goal of 190 is a small and important increase that can further achieve equity in WSDOTFHWA

contracting We are also pleased that the 2017 Disparity Study has documented the disparity in

WSDOT contracts that do not have a DBE or WBE goal ndash further reinforcing that all women-owned

firms and minority owned firms face equity issues We are encouraged that the WSDOT has asked

FHWA to rescind the 2016 waiver

While WTSrsquo mission is specific to the advancement of women we are a race-neutral organization To

this end we are also deeply concerned about the underutilization of minority owned firms There is

no equity or ldquofair playing fieldrdquo without equity for all gender and races We remained concerned with

the methodology required by the Code of Federal Regulations and case law because of the

dependence on the availability of firms in the calculation An unintended consequence of removing

either gender or race from the goal is that many of these firms would go out of business the

availability decreases and the formula then results in a smaller DBE goal This consequence is

contrary to our mission

We look forward to our continued participation in WSDOTrsquos DBE advisory group we are anticipating

notice that the 2016 waiver has been rescinded and how we can work together to continue

advancing minority and women-owned firms in the transportation field

Sincerely

WTS Puget Sound Chapter

Stephanie Forman

President

C Roger Millar Secretary WSDOT

C Representative Adam Smith 9th Congressional District Washington co Christine Nhan

WTS Puget Sound Chapter

PO Box 3461

Bellevue Washington 98009

From Dave Gent - WAPATo Bayne JackieCc Tom GaetzSubject WAPA Public Comments - RE WSDOT FHWA Disadvantaged Business Enterprise Proposed GoalDate Friday December 15 2017 14119 PMAttachments 12152017 DBE Proposed Goal - WAPA Public Comments Letterpdf

Good afternoon Jackie Please find attached WAPArsquos ldquofor the public recordrdquo comments with respect to WSDOTrsquos proposedDBE Goals FHWA funded work I assume that the Master DBE Directory was not sent to you this week so as a result we were notable to review the directory before the close of the public comment period That fact is noted withinour comment letter Thank you for your efforts Have a good weekend

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Friday December 8 2017 1219 PMTo Dave Gent - WAPA ltdavegentasphaltwacomgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hello Dave WSDOT did not take possession of this directory as part of our review process We will provide youwith the records without submitting a formal request However we need to get them from theconsultant first I will hopefully have them to provide next week I will keep you updated on therequest Have a nice weekend Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal Opportunity

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

December 15 2017

Jackie Bayne Policy Manager WSDOT Office of Equal Opportunity Delivered via e-mail to BayneJwsdotwagov RE Public Comment (as requested) to Proposed Overall DBE Goal for the FHWA (2018 ndash 2020) Ms Bayne Thank you for your presentation via webinar on December 5 2017 outlining WSDOTrsquos evaluation process used to determine the proposed overall DBE goal for the FHWA Thank you also for the Colette Holt amp Associates (CHA) DBE Advisory Group presentation made on September 14 2017 Both presentations helped to distill the findings of the 2017 Disparity Study produced by CHA In response to Earl Keyrsquos initial informal request to comment on the proposed overall DBE goal made during the DBE Advisory Committee teleconference held on October 12th we provided a list of reasons that we believe justify a lower DBE goal than is now being proposed Our initial response to Mr Keyrsquos request did not serve to influence WSDOT and the current proposed goal remains at 190 The arguments provided on October 12th against the significant increase in the proposed DBE goal (versus the previous goal and recent historic DBE participation) are repeated and supplemented below and will serve as the Asphalt Pavement Associationrsquos (WAPArsquos) official public comments

In concert with WSDOT and the OWMBE WAPA and the construction firms that WAPA represents have demonstrated a commitment to the principals of equal opportunity for all ldquoready willing and ablerdquo firms for the entire history that our DBE program has been in place WAPA has continuously demonstrated its commitment to the goals of the DBE program and for increasing the representation of disadvantaged groups within our industry as both workers and owners of firms Please recognize that WAPArsquos oversight and critique of the DBE program has always attempted to balance the principals of fair and open competition with the practical aspects of the low bid compressed schedule high performance standards demanded within the WSDOT marketplace Our comments below are meant to enhance WSDOTrsquos and OWMBErsquos understanding of the market and to hopefully have WSDOT fully consider all of the dynamics that are at play when proposing its Triennial DBE goal for FHWA projects Current DBE Capacity vs Historically Robust Market In advocating for a realistic and defensible DBE goal it has always been WAPArsquos position that it is paramount that the realities of the marketplace and true certified DBE subcontracting capacity should be a primary standard While a ldquostretchrdquo goal may appear to be progressive on its face it comes with consequences for all of the parties involved in the WSDOT federal aid contracting arena To balance the dynamics of the WSDOT contracting system the DBE goal should be tempered with the realities of the market and with a true measure of the underlying effectiveness of the DBE support services available to contractors

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 2 of 6 The first point of fact that has not been given any apparent consideration by WSDOT in its evaluation of the current capacity of certified DBErsquos is that there is an historically robust workload scheduled to be performed in the 2017 through 2022 time-frame particularly in the Puget Sound ldquoEverett to Olympiardquo corridor By WSDOTrsquos own estimates (see Attachment A) public works construction project starts in the 2018 to 2022 time-frame in this region will exceed $333 billion (B) counting the work projected from just five public entities WSDOT will be taking a decidedly ldquoback seatrdquo role during this period to Sound Transit which will have construction project starts of $226B vs WSDOTrsquos projected volume of $67B WSDOTrsquos summary publication titled Washington State Department of Transportations Proposed Federal Highway Administration Triennium Disadvantaged Business Enterprise Goal Federal Fiscal Years 2018-2020 states correctly that ldquoIncluded among the types of evidence that must be considered are the current capacity of DBEs to perform work on WSDOTrsquos federally-assisted contracts as measured by the volume of work DBEs have performed in recent yearshelliprdquo (Step Two Adjustment discussion) With the Sound Transit program being over 300 larger than the total WSDOT program in this region a sober assessment of true certified DBE capacity in the next three years needs to be considered by WSDOT If the huge construction boom over the next five years does not prompt a Step Two Adjustment then it becomes obvious that the realities of the market are being ignored by WSDOT for DBE goal setting Put another way if the 2018 through 2022 level of contracting activity does not warrant a goal adjustment what will DBE Access Barriers Not Yet Addressed The CHA 2017 Disparity Study points out multiple recommendations in Section VII that impact DBE participation and access to the market Assessments relating to those impacts and the state of maturity in addressing the CHA recommendations should be considered when assessing the DBE goal Many of the CHA recommendation have not been adequately addressed at this point in time Some of the prime examples are listed below Increase Certification and Expertise ndash The Disparity Study as explained to us includes all minority- (MBE)

and women-owned (WBE) firms that could be readily identified that perform work within Washington State and that perform work within the NAICS code framework CHA developed to cover WSDOT project work During the various presentations relating to the Disparity Study WSDOT representatives said that outreach to currently non-certified MBE amp WBE firms has increased and that WSDOT aspires to bolster its list of certified firms in the future but this effort is just beginning and the success of the effort needs to be means tested against the broader population of MBE amp WBE firms included in the CHA base line evaluation As the Disparity Study uses a much broader population of MBE WBE contractors to arrive at its conclusions (both non-certified firms and firms too large for certification) it follows that the calculated DBE proposed goal is overstated to include capacity that does not currently exist within WSDOTrsquos certified DBE framework Unless OMWBE is experiencing sudden and unprecedented success in recruiting new MBEWBE firms the DBE goal should be adjusted downward to recognize that the ldquoready willing and ablerdquo contractors that WSDOT has certified is only a subset of the total MBEWBE contracting population used in the Disparity Study evaluation

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 3 of 6

Until the promised WSDOT outreach registration efforts result in a substantial increase in available certified DBE firms it is premature to count the entire population of minority- and women-owned contractors as available to participate in WSDOT contracting It is unreasonable for WSDOT to project availability capacity using the entire MBEWBE population when only its currently truncated list of certified firms is acceptable to count toward the DBE goal

A corollary to the Increase Certification and Expertise discussion above is that the calculation of the Base Figure evidently includes the broadest practical population of MBE and WBE firms identifiable (without a review of the CHA Master DBE Directory which has not been supplied prior to the close of the public comment period the scope of the directory cannot be ascertained) If this directory includes a large population of MBEWBE firms that are not certified or are too large to be certified then the Base Figure calculation should be adjusted to reflect that certified DBE firms are a fraction of the total MBEWBE firms used to arrive at the 19 suggested DBE goal With respect to the CHA Master Directory it is our understanding the WSDOT was not given the directory as part of its evaluation of the Disparity Study and it follows that it did not evaluate the proposed DBE goal in the context of the CHA Master DBE Directory In our opinion an informed decision on adjusting the CHA baseline goal calculation can only be done after an extensive evaluation of the CHA Master DBE Directory If this has not been done WSDOT has not exercised due diligence in evaluating the context and underpinnings of the CHA Disparity Study and a certified DBE Triennium goal proposal to the FHWA is premature Increase Contract ldquoUnbundlingrdquo ndash If this proposed strategy (suggested by the CHA Study) is undertaken

certified DBE Subcontractors currently available will be engaged as Prime Contractors and the value of their prime contracts will bolster the overall percentage of certified DBE contracting but a systematic effort and strategy to ldquounbundlerdquo has not been articulated by WSDOT The key question of how this effort can be accomplished without increased cost to the taxpayers and increased inconvenience for the traveling public As noted in the CHA study (page 129 final paragraph) ldquoUnbundling must be conducted however within the constraints of the need to ensure efficiency and limit cost to the taxpayersrdquo As of this writing no overarching strategy for further unbundling with proper accountability has been articulated by WSDOT to the DBE Advisory Group

Review Insurance and Experience Requirements ndash Impediments to certified DBE participation due to

necessary insurance and experience standards cannot be solved by the prime contracting community Unless and until WSDOT puts together programs to address the burden of the substantial risks shouldered by Prime Contractors on WSDOT contracts barriers for streamlined utilization of certified DBE firms will continue to exist These market driven barriers will continue to dampen the availability of certified DBE Subcontractors that are able to perform within WSDOTrsquos strict criteria without unduly transferring risk to the Prime Contractor

Better Partnering to Overcome DBE Failures to Perform ndash Prime Contractors are held fully responsible to maintain the project schedule and are subject to project liquidated damages even when they may be struggling to deal with Subcontractor performance issues It is well-established that replacing a certified ldquocondition of awardrdquo (COA) DBE Subcontractor is very onerous and likely very costly to the Prime Contractor Unfortunately the imposition of strict and often counter-productive commercially useful function (CUF) rules often compound this issue as Prime Contractors cannot help COA DBE Subcontractors work through capacity expertise or time-related issues that impact timely performance

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 4 of 6

WSDOT needs to be a much better partner in the process of dealing with under-performing or non-performing certified DBE Subcontractors The current standard operational procedure places all of the exposure for non-performance onto the Prime WSDOT does not have an equitable system to account for non-performing or under-performing certified DBE Subcontractors hired as a condition of award (COA)

Performance Information and Training ndash Commercially useful function rules (CUF) and the lack of clear benchmark definitions for good faith effort (GFE) standards remain barriers for improving accountability within the DBE system and in turn lead to distorted DBE participation rates These items remain amorphous due to lack of training or lack of historic information Chronic uncertainty exists regarding both of these items Until WSDOT changes and improves its approach to provide transparency and certainty for both the prime bidding amp subcontracting parties true certified DBE capacity will continue to be masked and the resultant higher subcontracting costs associated with a distorted marketplace will continue to be hidden

WAPA respectfully suggests that simply adding an ldquoEstimated DBE Subcontract Premiumrdquo line to the current DBE bid forms would help to establish benchmarks that could begin to be used to ldquomeans testrdquo good faith efforts If this information had been gathered over the last 20 years of the DBE program meaningful GFE standards could have been developed and could be in place today

An in-depth review of CUF standards would also provide clarity For instance it is unclear why force account items performed by certified DBEs are currently counted at only 50 of the value of the work How was this benchmark established Has it been reviewed since imposed Did it ldquosolverdquo whatever inequity WSDOT was trying to address Better clarity may lead to more expanded opportunities for certified DBE Subcontractors

Enhanced Supportive Services and Business Development Programs ndash Unless and until stronger programs of these types are shown to be effective in boosting certified DBE business development increased DBE participation due to stronger business acumen should not be relied upon when setting the new DBE goal

Does OMWBE have a reasonable expectation that future plans for enhanced and expanded programs will be more successful than those employed in the past Assuming that certified DBE Subcontractors will be better prepared to deal with the WSDOT contracting environment than in the past should not be relied upon to boost DBE participation goals Especially troubling were the multiple references within the CHA report highlighting that DBEs believe that the staff at OMWBE lack a deep knowledge about the highway construction industry (eg Study page 129 2nd paragraph) Does OMWBE have a path forward that will address this issue and thus improve supportive services impacts

Develop a Bonding and Financing Program for SBEs ndash This is completely outside of the prime contracting

communityrsquos scope of influence WSDOT must find a way to institute changes that both protect the taxpayer and help increase certified DBE bonding capacity and access to financing ndash very large hurtles To assume that these hurtles can effectively be overcome within the 2018 ndash 2020 time frame when they have been chromic issues for the past 20 plus years of DBE program development is not rational

A helpful innovation would be for WSDOT to underwrite performance and payment bonds for certified DBE firms or to create promote a system that helps certified DBE firms obtain private bonding Bridging the gap to address capital access and performance risks (bonding) must be championed by WSDOT

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 5 of 6

Base Figure Adjustment to Address Available Subcontract Volume and DBE Prime Contracts It is a fact that mid- to large-sized MBEWBE firms that compete both as Prime Contractors and as Subcontractors are not eligible to be OMWBE certified DBEs Further the current amount of contract unbundling for greater DBE access to WSDOT prime contracting (see below) accounts for a very low dollar volume of prime contracts performed by certified DBEs Finally by specification (WSDOT standard specification 1-081) Prime Contractors are obligated to perform 30 of the total volume of the work (less specialty work) or stated another way a maximum of 70 of the dollar volume on WSDOT projects is typically available to award to subcontractors These market dynamics are NOT addressed in the Disparity Study A responsible DBE goal made absent of these facts should not be implemented A reasonable adjustment to the proposed 19 DBE goal is presented below

bull The percent of WSDOT prime contracts awarded to certified DBE firms is likely less than 5 by total WSDOT

contract volume Assuming this approximation is valid (likely very conservative) then the amount of WSDOT contract work available to certified DBE firms via subcontracting should be adjusted to account for the factors outlined above The Base Figure (19) should be adjusted to recognize that a 70 maximum subcontractor participation is available (in the numerator) and to account for the assumed 5 certified DBE prime contracts in the denominator Reasonable Base Figure Adjustment 19 (proposed) x 70 subcontracts available divide 95 of Non-Certified DBEs as Prime Contract Volume = 190 x 0737 = 140 adjusted goal This is an adjustment based on the practical dynamics of the WSDOT contracting system and it represents a more realistic look at the true subcontract volume that is available for Prime Contractors to award to certified DBE firms

Conclusions

Until the items listed above are addressed and in place it is not reasonable to believe that DBE goals can be increased by nearly 163 (from 117 to 190) When the projected robust public works contracting market is appropriately considered the true availability of certified DBE Subcontractors for WSDOT contracts will be truncated due to demand across all public works sectors With multiple strong public works programs competing for a limited population of certified DBEs the ability to meet increased WSDOT DBE goals will be severely challenged Without very clear concise and transparent good faith effort rules the ability to address DBE goals that greatly overestimate true near term certified DBE capacity will result in non-attainment bid day chaos failures to perform andor rapidly increased pricing

The clear conclusion is that at this point in time under the current circumstances without effectively instituted new programs rules procedures that could enhance the certified DBE programrsquos overall effectiveness we believe that the DBE goal should remain at or near 12 As OMWBE documents and demonstrates its future successes in improving access and eliminating capacity barriers only then should the DBE goal be re-evaluated and increased

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 6 of 6

In closing please remember that it is rare that the contracting community is asked our opinion with respect to the WSDOTrsquos DBE policies and so this letter is somewhat a vehicle to highlight collective concerns It is our belief that the majority of the Prime Contractors in Washington state support the objective of creating a level playing field for ready willing and able DBEs

If the level playing field is not yet possible in the absence of the DBE program then the key is to set realistic goals that recognize reflect and address the hard realities and market dynamics imposed by WSDOTrsquos bedrock environment of awarding contracts to the lowest cost responsible and responsive Contractor

Respectfully submitted Washington Asphalt Pavement Association

David Gent Tom Gaetz Executive Director Senior Advisor

Attachment A ndash WSDOT Central Puget Sound Public Works Contracting Projection 2018 - 2022

Con

stru

ctio

n Pr

ojec

t Sta

rts

2018

-202

2S

ound

Tra

nsit

$22

6 B

SD

OT

$08

B

Tran

sit

amp O

ther

s$1

7 B

WS

DO

T$6

7 B

Por

t of

Sea

ttle

$15

B

TOTA

L$3

33

B

Source N

ov 1

9 2

017

pres

enta

tion

to W

APA

Ann

ual M

eetin

g

Attachment A

Work (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Dave Gent - WAPA [mailtodavegentasphaltwacom] Sent Thursday December 7 2017 144 PMTo Bayne Jackie ltBayneJwsdotwagovgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hi again Jackie Irsquom fine thanks and hope you are the same Interesting The Master DBE Directory is the basis for and integral to the conclusions of the DisparityStudy Is it not then part of the information needed to fully review and comment on the DisparityStudy Was it not provided by CHA to WSDOT for review We are trying to fully understand thestudy and if this directory was part of the study why would it need to be obtained by a publicrecords disclosure It should be in the public domain and not restricted from ease of access If you are sure that a public records request is needed Irsquoll start that process but we will need tonote that point of fact when we submit our public comments If you are able to reconsider please let me know Respectfully

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Thursday December 7 2017 126 PMTo Dave Gent - WAPA ltdavegentasphaltwacomgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hello Dave I hope you are doing well

That information would likely be obtained through a public disclosure request Best Regards Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Dave Gent - WAPA [mailtodavegentasphaltwacom] Sent Thursday December 7 2017 113 PMTo Bayne Jackie ltBayneJwsdotwagovgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Jackie Can you please provide an electronic file or provide a weblink for the Master DBE Directory thatColette Holt amp Associates developed for the WSDOT Disparity Study 2017 (first referred to on Page 8of the Disparity Study) I did not see a link to this Master DBE Directory within the study Thanks

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Friday October 27 2017 1118 AMTo Kenyon Wendy ltKenyonWwsdotwagovgt Adams E W ltewadamssystemsclcomgtAdekoyaAndrew ltandrewadekoyabccomgt AlyssaBalllegwagov Anindita Mitraltamitracrea-affiliatescomgt APRISeattlehotmailcom Armstrong CharlotteltCharlieAatgwagovgt Ato Apiafi Architects PLLC ltatoaatoapiaficomgt benzfanwaorgBerntsen Teresa (OMWBE) ltTeresaBomwbewagovgt Billingsley Andrealtbillinawsdotwagovgt Bramlet Erica ltEricaBramletlegwagovgt Brooks Julius

ltBrooksJwsdotwagovgt Brown Jason ltjbrownldccorpcomgt bwallacenwlaborersorgCamden Allison ltCamdenAwsdotwagovgt carlllivingstongmailcom Cerda OscarltCerdaOwsdotwagovgt Christopher Chris ltChristCwsdotwagovgt ckerneycaawagovdanplatinumbusinessgroupcom davegentasphaltwacom David BalltDavidsignsnowmillcreekcomgt Davis Khalia ltDavisKhwsdotwagovgt Davis RaShelle (GOVltrashelledavisgovwagovgt Dayton Jo ltDaytonJwsdotwagovgt ddhondtagcwacomDebbieDriverlegwagov Dennis ltdennisahlkiewitcomgt dmcleodnwlaborersorgdrart6651gmailcom Duncan Enid lthigradeincgmailcomgt EltonltEltonwashingtonstatetruckingcomgt eprincecaawagov flemosldccorpcomfmartineznwmtnmsdcorg geoffshookatkncom glovelady ltgloveladyexcelglovescomgtGrabow Katie ltkgrabowsystemsclcomgt Guilfucci Jackie ltJackieGuilfucciskanskacomgt HealyLinda ltHealyLwsdotwagovgt Higginbotham Breanne ltHigginBwsdotwagovgt HirscheyClaudia ltclaudiahirscheycomcastnetgt Holt Colette ltcoletteholtmwbelawcomgt Huff JohnltHuffJwsdotwagovgt Iniguezchawagov JacksonMaynardlegwagov Jimmy Matta(jmattaalcantarassoccom) ltjmattaalcantarassoccomgt kellywickergovwagov Key EarlltKeyEwsdotwagovgt Kirk Jon ltjkirkwhhnfscomgt Kris Purrier ltkpurrierhwageocomgtleewabuildingtradesorg lesliejonessoundtransitorg Liz Evans ltlevansagcwacomgt LopezErin lterinlopezdeswagovgt Martha Cerna ltMarthaPSLCCORGgt Martin-Arnold EdwinaltMartinEwsdotwagovgt Mary Lerdahl ltmarydbeelectricinccomgt McCarty Hannahlthannahmccartylegwagovgt Melissa L Boyles ltmelissaboylesmwbelawcomgt Metcalf KeithltMetcalKwsdotwagovgt michaelicapaawagov Michelle ltMichelleTTCC26netgt MillarRoger ltMillarRwsdotwagovgt Nakamura Jason ltjasonnakamura1-alliancecomgtNavarroLportseattleorg olliepmt-solutionscom pastorbanksesbctacomacom PatrickHughes ltphugheshughesgroupbizgt Petersen Jodi (FHWA) ltJodiPetersendotgovgtrabbottliunaorg rcarmsteadgmailcom ricemportseattleorg Riley D ltdrileylydigcomgtSeling ltSelingjpfranciscomgt sherryharrisergosynchcom Stell MellodyltStellMwsdotwagovgt terigobintulaliptribes-nsngov timwilliamfactorycom tinaterra-tdicom tkellyldccorpcom tomgaetzmsncom vcollinsacec-waorgverlenejazzmsncom Wang Albert ltWangAatgwagovgt Waugh GregltGregWMaxKuneyComgt Yates Henry ltYatesHWSDOTWAGOVgtCc Tom Gaetz lttomgaetzmsncomgt Dave Gent - WAPA ltdavegentasphaltwacomgt VanCollins ltvcollinsacec-waorggt Daniel Seydel II ltdanplatinumbusinessgroupcomgt MaynardJackson ltJacksonMaynardlegwagovgt Carl Livingston ltcarlllivingstongmailcomgt DonMcLeod ltdmcleodnwlaborersorggt JIMMY MATTA ltjimmymattamsncomgt Prince Ed(CAAA) lteprincecaawagovgt David DHondt ltddhondtagcwacomgt Irene Reyesltgloveladyexcelsupplycompanycomgt McDaniel Craig ltMcDaniCwsdotwagovgtsherryharrisergosynchcomSubject WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Good morning On Monday October 30th WSDOT will be releasing the proposed overall Federal HighwayAdministration Disadvantaged Business Enterprise goal attached for public comment throughDecember 15 2017 This overall DBE goal is based upon the recently completely DBE ProgramDisparity Study WSDOT is proposing a 19 percent overall DBE participation goal on Federal Highway

Administration-funded projects for federal fiscal years 2018 through 2020 DBE goals fortransportation projects that receive federal funds represent a percentage of the value of work inwhich minority- and women-owned businesses should participate Once finalized and submitted toFHWA early next year the goal will be effective through Sept 30 2020

The purpose of the DBE program is to create a level playing field for firms owned and operated bydisadvantaged individuals wanting to participate in federally assisted highway transit and aviationprograms The attached overall DBE goal is for FHWA funded projects WSDOT will be updating theFTA and FAA overall DBE goals in the near future

If you have any questions please contact Earl Key Director of the Office of Equal Opportunity at3607057091 or KeyEwsdotwagov Thank you Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

  • Proof-Of-Publicationpdf
    • Mediapdf
      • AGC
      • Daily Journal
      • Daily Medium
      • DBEGood
      • OMWBE
      • Seattle Medium
      • Tabor 100
      • The Chronicle
      • Tukwila
        • King County
          • Public-Comments-20180111pdf
            • 19 DBE Requirement(1)
            • AGC Comments on Proposed 10 Goad
            • Backstrom Curb amp Sidewalk
            • comments on WSDOT proposed DBE goal
            • Cowlitz County Public Works
            • DBE Contracting goals
            • DBE Goal
            • DBE Program Disparity Study
            • Disparity Study Comments from City of Spokane
            • FW_ WSDOT News - WSDOT seeks comments on propos
            • Proposed DBE Goals
            • RE_ DBE Contracting Goal Comments
            • Re_ DBE Goal Comments
            • Re_ Seydel Dan - WSDOT Disparity Study Present
            • Support for WSDOTs proposed DBE goal
            • Why we need mandatory goals
            • WSDOT DBE Goal - Comment in support
            • WSDOT Proposes DBE goal of 19
            • WSDOT propsed DBE Goals
            • WTS - Disparity Study Comment Letter

From Steve SmithTo WSDOT Disparity StudyCc Bayne JackieSubject 19 DBE RequirementDate Thursday December 14 2017 31947 PMAttachments DBE List and NAICS Listingpdf

Disparity Committee I recently read in The Daily Journal of Commerce that WSDOT plans to adopt a 19 DBEstandard for all FHWA funded projects early next year Our company S amp K Painting Inc is abridge painting company which is based in and works exclusively in Oregon and Washington Ihave been the owner of this firm since 1978 when it was first established My concerns aboutthe proposed 19 DBE requirement is as follows 1 There are very few opportunities for subcontract work on bridge repaint jobs These jobsare usually limited to cleaning and painting the bridge The only other facet of the project istraffic control which is almost always 3 or less of the project total cost The traffic controldoes provide a very good subcontracting opportunity 2 The NAISC code of 238320 includes bridge painting but also includes house painting wallcovering rust proofing etc which have almost no similarities to bridge painting When thiscode is used to determine the number of available firms (DBE or otherwise) that are availablefor bridge painting project this badly skews the numbers I would suggest that bridge paintingcontractors make up less than 5 of all firms in NAISC code 238320 3 If future WSDOT bridge painting projects require a 19 DBE participation A The qualified pool of DBE subcontractors available to submit pricing on any facetother than traffic control will be very limited I reviewed a list of 19 certified DBE firms listedunder painting at the WSDOT website and only recognized one firm from past projects B The number of prime bidders and competition will fall The state will incur highercosts due to this fact C Prime bidders will be forced to subcontract unqualified contractors just to be eligiblefor contract awards This will likely reduce the quality of the finished project Thank you for considering my concerns I may not have verbalized my thoughts as well as Iwould have liked but I have been in this business for almost 40 years and truly believe what Ihave said Sincerely

Steve Smith President

SampK Painting incP O BOx 390clacKamaS OregOn 97015Phone (503) 557-5544Fax (503) 557-5566Cell (503) 260-5280Steveskpaintingcom

From Lei WuTo Bayne JackieSubject comments on WSDOT proposed DBE goalDate Thursday December 14 2017 94925 PM

To Whom It May Concern

Below is my comments

The WSDOT recommended DBE Goal for FHWA contracts of 190 is a small andimportant increase that can further achieve equity in WSDOTFHWA contracting I am insupport of the 19 DBE Goal

I also want to express my appreciation for the thoroughness of the WSDOT Disparity studyand how the study disclosed the disparity in WSDOT contracts that do not have a DBE orWBE goal ndash further reinforcing that all women-owned firms and minority owned firms faceequity issues

I remain concerned with the methodology required by the Code of Federal Regulations andcase law because of the dependence on the availability of firms in the calculation Anunintended consequence of removing either gender or race from the goal is that many of thesefirms would go out of business the availability decreases and the formula then results in asmaller DBE goal

Thanks

Lei

Lei Wu PE AICP

Principal CSL Consulting

LeiWucsl-consultingnet

(425)562-6275

From Stephanie SimpkinsTo WSDOT Disparity StudySubject DBE Contracting goalsDate Wednesday November 29 2017 20259 PM

My name is Stephanie Simpkins and I own North Star Enterprises It is a large womanowned traffic control company located in Spokane Washington My mother founded thecompany in 1984 and I have worked in this family owned business most of my life Ipurchased the business from her in 2013 and have been sole owner since then My company thrived under the Disadvantaged Business Enterprise (DBE) Programimplemented by Washington Department of Transportation and administrated by United StatesDepartment of Transportation What started as a small business with one truck and a fewemployees has grown over the years to be one of the largest traffic control companies in thestate and employee countless people every construction season It has not been an easy roadover the years being a woman in the construction industry never is and it is hard to say wherewe would be now if it werenrsquot for the assistance of the DBE program As you know in June of 2017 majority women were removed from the DBE program basedon a disparity study conducted in 2012 On March 2014 Washington Department ofTransportation requested a wavier to remove majority women from the DBE program Thishas had an immediate and drastic impact on my business and all who work for me From themoment the waiver was approved and my company could no longer be used as a condition ofaward at bid time I began losing work Most recently the 2018 North Central Region ChipSeal which we have worked on for the last 10 years This contract provides work forapproximately 40 employees for the entire construction season I have already been told byseveral contractors that with such a high UDBE goal they wont even be able to consider mefor this project This loss along with several other smaller contracts to date are painting avery dismal future for my business With all of this turmoil surrounding the future of my business I find it frustrating to say theleast that WSDOT has chopped me off at the legs by not allowing my firm to count for theCOA but can use the little participation I may still contribute to help them reach their overallstate goal How is this fair If the contractors canrsquot utilize my business than neither shouldWSDOT As far as setting future state DBE contracting goals it looks as if the bar will beraised once again all while excluding the largest subset of useable DBErdquoS To me raising theoverall state goal at this time (which is already challenging to meet) with women DBErsquosexcluded from the program seems horribly ill timed

From Karen R BannishTo Bayne JackieSubject DBE GoalDate Tuesday December 5 2017 32549 PM

Hello Jackie ndash thank you for the webinar today concerning the proposed Overall DisadvantagedBusiness Enterprise Goal for the Federal Highway Administration I understanding the DisparityStudy much better now and checked the document you mentioned on the WSDOT website Pacific County is located in the Southwest corner of the State of Washington The tip of the LongBeach Peninsula would be 2 frac12 hours from Interstate 5 Our federal work primarily includes strictlyoverlay projects with 12 or fewer items of work included in the contract When bidding a project(our contracts are usually less than $500000) we sometimes received a single bid from the process Due to our proximity and the small cost for the work it is difficult to entice DBE participation Thereare simply no items of work that can be performed Having a mandatory DBE goal placed upon theproject in a rural area simply to meet the disparity guidelines will only increase the cost of theproject We feel the goals should be set in balance with the cost of the project and the items of work and notsimply directed to meet the overall goal

Karen BannishSenior Engineering TechnicianPacific County Department of Public Works211 North Commercial StreetRaymond WA 98577(360) 875-9368

From Dawn EgbertTo Bayne JackieSubject DBE Program Disparity StudyDate Tuesday December 5 2017 23825 PM

Hi JackieThank you for the great information on the call today You talked about the small works rosterbriefly We had a conversation in our office today about small contractors who are signed up on thePort of Vancouverrsquos small works roster Our team has had opportunity to talk to some of thecompanies on our roster who are women owned or minority owned businesses but they arenrsquotsigned up as a DBE firm When asked about that theyrsquove mentioned that they donrsquot want to fill outthe additional paperwork required to obtain the certification as a DBE As for the DBE goal at 19 it doesnrsquot seem to present an issue for the majority of our projects ndashespecially those where we would apply FHWA funds if granted However if we did happen to have aproject that didnrsquot include classifications of work where DBE certified participants are availablewould there still be an exception or a good faith efforts clause Thanks again for your time Dawn EgbertProcurement Services Manager3103 NW Lower River Road Vancouver WA 98660Direct 3609921102 | Cell 360448-9867 | Main 3606933611 | Fax 360735-1565degbertportvanusacom | wwwportvanusacom | available port properties Leadership | Stewardship | Partnership

From Feist MarleneTo WSDOT Disparity StudyCc Simmons Scott M Twohig KyleSubject Disparity Study Comments from City of SpokaneDate Friday December 15 2017 52226 PMAttachments image010png

image011pngimage012png

December 15 2017 Jackie BaynePolicy amp Reporting ManagerOffice of Equal OpportunityWashington State Department of TransportationPO Box 47314Olympia WA 98504-7314 RE Proposed DBE Contracting Goal for Highway Projects Dear Ms Bayne The City of Spokane would like to provide comments related to proposed DisadvantagedBusiness Enterprise Goal for Federal Highway Administration (FHWA) contracts by theWashington State Department of Transportation (WSDOT) Office of Equal Opportunity Manyof our projects receive funding from FHWA and as such the proposed new goals areapplicable to City work The City is supportive of the programrsquos purposemdashldquoto create a level playing field for firmsowned and operated by disadvantaged individuals wanting to participate in federally assistedhighway transit or aviation programsrdquo However the City is concerned about the ability to achieve the proposed utilization rate of upto 19 percent for DBEs in Eastern Washington considering the low number of DBEs in ourregion and the record construction under way in the City and in our region WSDOTrsquos DBE Program Disparity Study notes ldquoContractors in Eastern Washington repeatedlyreported that the goals on projects in their area are too highrdquo The Inland NorthwestAssociated General Contractors group notes that only about 12 DBEs in construction fields areavailable in the greater Spokane area Meanwhile the City has performed record construction in each of the last three years withproject totals hovering around $100 million Our City work has been bolstered by anaggressive program to improve water quality in the Spokane River Our local school districtsand our neighboring jurisdictions also have aggressive construction programs right now

Additionally we expect WSDOTrsquos work in this region to accelerate as North Spokane Corridor(NSC) construction proceeds At times our area is reaching the limits overall of our contractingcommunity the City has worked to release its projects in the first quarter of the year as muchas possible to lock in contractors and receive better pricing The capacity of existing DBEs in our region simply cannot meet that current high demand Some DBE firms are tempted to agree to more work in these times but we have found that insome cases DBEs have stretched themselves too thin On two recent City projects generalcontractors were unable to meet DBE goals as a result of DBE firms that couldnrsquot fulfill theircommitments for providing personnel or equipment It also seems implausible to expect DBEs from the West Side to mobilize teams to work on Cityof Spokane projects in large numbers In fact the Disparity Studyrsquos author responded at arecent meeting on this topic that a DBE from the West Side only very rarely completes workon the East Side of the state We would also be concerned about moving the good-paying jobs that construction providesoutside of our region The Cityrsquos median household income is $44350 considerably lower than theState of Washington MHI of $64129 and the Seattle MHI of $77351 Our leaders are working tocreate good-paying jobs for our citizens not export them to an already wealthier part of the state Additionally these projects are also funded with local dollars and our citizens expect their money toput their neighbors to work With the above considered the City is seeking

middot DBE goals for the 2018-2020 compliance period for Eastern Washington that arereflective of the current availability of DBE firms in our region

middot The re-inclusion of non-minority women owned DBEs in achieving DBE goals InSpokane non-minority women owned DBEs make up the majority of the availableDBEs And current information shows that women in Spokane overall still lag behindmen in opportunities and wages The Cityrsquos own ldquoGender and Racial Equityrdquo reportfrom 2016 noted that overall working women earned 783 percent of the earnings ofworking men in 2014 down from 827 percent in 2009 We need to lift up all women

middot The development of WSDOT programs to encourage the growth of existing andnew DBEs who can be used on street and highway projects We are encouraged by theproposed mentorproteacutegeacute program to increase the number and capacity of DBEs inEastern Washington Programs that address other barriers such as assistance withcompleting documentation or access to bonding capacity also could aid growth ofDBEs

middot The ability for WSDOT to adjust goals on a project if a selected DBE is unable tocomplete its commitments on a project This would help enable our contractors totake a chance on a new or inexperienced DBE to complete work

middot Recognition of local programs that strive to increase diversity in the work force Forexample the City operates a robust apprenticeship program that requires 15 percentof the labor hours on public works jobs greater than $600000 to be performed byapprentices The apprentice programs in our region are stepping up recruitmentefforts and are specifically seeking to recruit more youth women and minorities intoapprentice slots

As we seek to achieve the goal of increasing participation in street and highway constructionby companies owned by disadvantaged individuals we must also acknowledge that businessdevelopment and growth happens over time We must lay the groundwork now to build abase of DBEs that can help us achieve higher utilization goals over time Sincerely Marlene FeistDirector of Strategic DevelopmentPublic Works amp UtilitiesCity of Spokane

Marlene Feist | City of Spokane | Public Works Director of Strategic Development5096256505 | cell 5097109214 | mfeistspokanecityorg | spokanecityorg

From Hall MattTo WSDOT Disparity StudySubject FW WSDOT News - WSDOT seeks comments on proposed DBE contracting goal for highway projectsDate Friday December 15 2017 11956 PMAttachments WSDOT proposed DBE goal through 2020pdf

From Hall Matt Sent Friday December 15 2017 117 PMTo BayneJwsdotwagovCc Keniston Rick (KenistRwsdotwagov) MolyneKwsdotwagov SusanWilsonclarkwagovSubject WSDOT News - WSDOT seeks comments on proposed DBE contracting goal for highwayprojects Hello Jackie Please see our comments attached regarding the WSDOT proposed DBE goals Thanks for the opportunity to provide comments Matt HallClark County Public Works Washington State Department of Transportation ndash NEWSHeadquarters ndash 310 Maple Park Avenue SE ndash Olympia WA 98504-7314 ndash 360 705-7000 FOR IMMEDIATE RELEASEOct 30 2017 Contact Jackie Bayne Office of Equal Opportunity 360 705-7084

WSDOT seeks comments on proposed DBEcontracting goal for highway projectsComments accepted through Dec 15OLYMPIA ndash Contractors trade and labor organizations small and disadvantaged businessesand all others who may be interested in working with the Washington State Department ofTransportation are invited to comment on the agencyrsquos proposed Disadvantaged BusinessEnterprise goal for Federal Highway Administration contractsDBE goals for transportation projects that receive federal funds represent a percentage of thevalue of work in which minority- and women-owned businesses should participate WSDOTis proposing a 19 percent overall DBE participation goal on Federal Highway Administration-funded projects for federal fiscal years 2018 through 2020Once submitted to FHWA early next year the goal will be effective through Sept 30 2020The purpose of the DBE program is to create a level playing field for firms owned andoperated by disadvantaged individuals wanting to participate in federally assisted highwaytransit and aviation programsConnecting with communitiesWSDOT will host a series of public meetings to provide opportunities for individuals tocomment in person

Spokane

2 ndash 4 pm Tuesday Nov 28WSDOT Eastern Region Headquarters2714 N Mayfair St Spokane

Vancouver

2 ndash 4 pm Wednesday Nov 29WSDOT Vancouver Headquarters11018 NE 51st Circle Vancouver

Seattle

2 ndash 4 pm Thursday Dec 7WSDOT Northwest Region Headquarters15700 Dayton Ave N Shoreline

Other ways to provide commentThose who are unable to attend one of the meetings can participate in a no-cost webinar from230 ndash 430 pm Tuesday Dec 5 Registration for the webinar is required Those interested inparticipating should email DisparityStudywsdotwagovWritten comments can also be submitted by mail or emailJackie Bayne Policy amp Reporting ManagerWashington State Department of TransportationOffice of Equal OpportunityPO Box 47314Olympia WA 98504-7314DisparityStudywsdotwagovDocuments detailing the methodology used for determining the FHWA DBE goals areavailable for review at all WSDOT region headquarters offices and at the TransportationBuilding 310 Maple Park Ave SE Olympia They are also available online atwwwwsdotwagovequalopportunityWSDOT will consider all written comments received through Friday Dec 15 2017 Hyperlinks within this release

WSDOT Region offices wwwwsdotwagovContactofficelocationhtmregion

WSDOT keeps people businesses and the economy moving by operating and improving the statestransportation systems To learn more about what were doing go to wwwwsdotwagovnews forpictures videos news and blogs Real time traffic information is available at wwwwsdotcomtraffic or bydialing 511 Americans with Disabilities Act (ADA) InformationAccommodation requests for people with disabilities can be made by contacting the WSDOTDiversityADA Affairs team at wsdotadawsdotwagov or by calling toll-free 855-362-4ADA (4232)Persons who are deaf or hard of hearing may make a request by calling the Washington State Relay at711 Title VI Statement to Public It is WSDOTrsquos policy to assure that no person shall on the grounds ofrace color national origin or sex as provided by Title VI of the Civil Rights Act of 1964 be excluded fromparticipation in be denied the benefits of or be otherwise discriminated against under any of its federallyfunded programs and activities Any person who believes his or her Title VI protection has been violatedmay file a complaint with WSDOTrsquos Office of Equal Opportunity For additional information regarding Title

VI complaint procedures andor information regarding our non-discrimination obligations please contactOEOrsquos Title VI Coordinator at 360-705-7090 To unsubscribe to WSDOT media releases please reply and type REMOVE in the subject line

This e-mail and related attachments and any response may be subject to public disclosure under state law

From Cochrane EmilieTo WSDOT Disparity StudyCc Eugenis Susan Cowlitz Co Public Works - Brad BastinSubject Proposed DBE GoalsDate Thursday December 14 2017 85006 AMAttachments image002png

DBE Goals - Commentspdf

Please see the attached letter with comments regarding the proposed DBE Goals Ahard copy will be sent out today

Thanks

Emilie CochraneCowlitz County Public Works1600 ndash 13th Avenue SKelso WA 98626360-577-3030 ext 6523

From Michelle WolcottTo Bayne JackieCc Robideau Christopher LSubject RE DBE Contracting Goal CommentsDate Tuesday November 7 2017 65448 AMAttachments image001png

Thank you JackieWhat a relief to know that we have been heard and are not the only small business facing thisstruggle Your email is comforting

Yes you can provide us with additional assistanceLet me introduce my boss and Senior Vice President of Red Plains Professional Chris Robideau

Chris will be your contact from here since I will be leaving the company November 17th As a WA DBE we are ldquoeligible for limited DBE Support Services (SS) funding when funds becomeavailablerdquo When will this happen And are we registered or on a list to receive fundingIs the WSDOT ICR Training a prerequisite for the funding Or just helpful knowledge

Thank you for your time Jackie I will follow through with the training

Michelle Wolcott EIT Quality Control Engineer

2103 NE 129th Street Suite 201 Vancouver WA 98686 Office (360) 448-7999 Fax (360) 258-0274

wwwred-plainscom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Monday November 6 2017 332 PMTo Michelle Wolcott ltMichelleWolcottred-plainscomgtSubject RE DBE Contracting Goal Comments

Hi Michelle

Thank you for your interest in doing business with WSDOT I apologize for the lack of informationyou have come up against in your attempts to attain access to WSDOT ICR program

As you may well know WSDOT has recently completed a state wide agency specific diversity studyAnecdotal comments submitted with the study concur with your experience Not only did somerespondents find it difficult to become prequalified they also commented that the required indirectrate of 110 percent is too low to be profitable These requirements are currently under advisementby WSDOT and new DBE program requirements are currently in the process of seeking public input

As you are an OMWBE certified DBE in Washington State you will be eligible for limited DBE SupportServices (SS) funding when these funds become available At that time funds may become availableto assist you in your struggle to attain ICR eligibility Here is a link to WSDOTrsquos Indirect Cost RateTraining httpswwwwsdotwagovAuditICRTraininghtm If you would like me to find additionaltraining or information please let me know

If I can provide additional assistance of information please let me know

Best Regards

Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Michelle Wolcott [mailtoMichelleWolcottred-plainscom] Sent Tuesday October 31 2017 835 AMTo WSDOT Disparity Study ltDisparityStudyWSDOTWAGOVgtSubject DBE Contracting Goal Comments

HelloI have been in contact with WSDOT for 6 months sharing my disparaging story of beinga small DBE unable to submit SOQs for projects requiring a WSDOT Audited IndirectCost Rate Approval We do not have an in-house accountant and our outsideaccountant has explained to get all the paperwork together for WSDOT would take 40hours of work $9000 annually We cannot justify this cost to submit on a project thatwe may not acquire We have been directed to seek financial assistance from WSDOT Federal SBA andWashington State Office for Women and Minority Owned Enterprises all of whichprovided negative responses

As a DBE business in 11 states we are supporting the 19 incentive for federallyfunded contracts but we are frustrated in the fact that we will not be one of the luckyfew to participateWe have been in business 20 years From our Vancouver Washington office our clientsare the Native American tribes across the country with all contracts federally funded This summer alone the WSDOT ICR Approval has squashed our ability to submit on twoprojects that we were perfectly qualified to performI have attached previous emails to show a sample of who I have been dealing with

Thank you

Michelle Wolcott EIT Quality Control Engineer

ltimage001pnggt

2103 NE 129th Street Suite 201 Vancouver WA 98686 Office (360) 448-7999 Fax (360) 258-0274 wwwred-plainscom

From Michelle Wolcott Sent Monday July 10 2017 954 AMTo Harvey Schatzie ltHarveySwsdotwagovgtSubject RE WSDOT Indirect Cost Rate Process

Good Morning Schatzie

This is Michelle Wolcott from Red We spoke Friday June 30th about the ICRprocess and you were very encouraging I relayed the information to my boss who ishere in Vancouver then he shared with the president bookkeeper and our accountantin Oklahoma We had FAR compliance with Oklahoma DOT in 2015 so we are noteligible for the Safe Harbor Program Our account said our timekeeping system doesnot breakdown the hours and pay in the format WSDOT wants to have it presented andto get the documents in order would take the CPA and an assistant $9000 in paidhours of work It turns out this would have to be annually The other option is to hirean outside CPA firm to do the audit for us at $20000 annually

Our president said in the past we received funding assistance from the Stateof Oklahoma to get our ICR approval Does WSDOT offer any financial assistance for small businesses to reach compliance We are also a DBE in WA I have requested the same information from WA PTAC at theVancouver Chamber of Commerce and from WA Office of Minority and Women OwnedBusiness Enterprises and they both said there was nothing but suggested to askWSDOTThank you for your helpMichelle Wolcott EIT

Hello Michelle sorry but I am not aware of any grants But I was looking at this andthere is a POC at the bottom you may try to discuss the audit issuesHollyHolly BoehmeBusiness Opportunity Specialist | 8(a) Business Development ProgramUS Small Business Administration bull Seattle District Office

Hello Michelle -

Thank you for your email Im not aware of any funding available for thispurpose but do agree its quite a bit for a DBE firm to have as an expense Mostof the firms I work with do a lot more work on the Oregon side so perhaps thereare programs available that I just havent heard of Im copying my colleagueHoly Boehme in our Seattle District Office to see if they are aware of any suchassistance

Holly might there be some small business incubators or other resources availablein WA to help a small firm with the expense of getting a WSDOT AuditedIndirect Cost Rate approval Please reply all with anything you may have

Thank you

Yuri Yoshida Dyson Business Opportunity SpecialistUS SMALL BUSINESS ADMINISTRATION Portland District OfficePhone 503-326-6692 Fax 202-292-3872 wwwsbagovor

From Troy HalbergTo Bayne JackieSubject Re DBE Goal CommentsDate Wednesday December 13 2017 35533 PM

JackieToday was another example of why the goals should not be raised There were 2 jobs which Iwas low on and did not get due to the high goals This is exactly what will happen when thegoals get raised The first job was the 9180 Anacortes Ferry Paving Northeast Electric $244924 and UDBE $318000 Second job was the 9172 SR 9 East Junction Job Northeast Electric $68503 and UDBE $76300

Does this seem like a good way to spend the tax payer money I do not see how we are tosurvive if the goals get to 21

Thanks

Troy HalbergOffice360-225-7004Cell360-931-3990Fax360-225-7001

On Thu Nov 30 2017 at 1131 AM Bayne Jackie ltBayneJwsdotwagovgt wrote

Good Morning Troy

Thank you for taking the time to provide us with your experiences with the DBE Program TheWashington State Department of Transportation takes the public involvement process veryseriously and your comments will be taken into consideration prior to a final decision regardingthe overall DBE program goal

If I can be of further assistance please let me know

Best Regards

Jackie Bayne

Policy and Reporting Manager

WSDOT Office of Equal Opportunity

Work (360) 705-7084

Cell (360) 338-5783

BayneJwsdotwagov

From Troy Halberg [mailtotroyhnellcnet] Sent Wednesday November 29 2017 144 PMTo WSDOT Disparity Study ltDisparityStudyWSDOTWAGOVgtSubject DBE Goal Comments

If these goals are to be set that high this would make us as a non DBE small contractor at amajor disadvantage With these high of goals this is like handing all of the DBE electricalcontractors every job These general contractors will have no option but to use thembecause of the goals This should not go into effect We have been low on several jobs in thepast and have not gotten them do to the goals being 18 When this goes on it puts all therest of us contractors at a disadvantage Please consider the smaller non DBE contractorsthat are looking to survive as well

Thanks

Troy Halberg

Office360-225-7004

Cell360-931-3990

Fax360-225-7001

From Daniel Seydel IITo Bayne JackieCc Key Earl daneiwashingtonorg Nadeem Ismail Mussie Tewelde (mteweldehydro2geotechcom)

graceflyrightaolcom Mary Wenner Watkinson LarrySubject Re Seydel Dan - WSDOT Disparity Study Presentation Public TestimonyDate Friday December 8 2017 30323 PM

Jackie

It was my hope that the comments would be put into record I was also hoping that you wouldnot have to be the one having to formulate responses for each clarification If that is the caseI know you are swamped and will then I just ask my comments be only part of the recordHowever if there is dedicated staff that is going to be compiling and responding to theclarification then the below questions would be the priorities of most interest

These were questions unrelated to the disparity study and hopefully should be doable

1) Do you have any reports on your outcomes from the past 5 years on DBE support servicesand specific key performance measures from previous years funding (ie how many firmsutilized what was the objectives were objectives met did outcomes meet total satisfaction ifnot why next steps what was the firms capacity before and after services were performed (iesales employees bonding if applicable insurance equipment line of credit if applicablenumbertype of customers how are they doing now etc))

2) What other changes or improvements other than allowing DBES to select their own serviceproviders and a staff change will be a part of this new program

3) Was consideration to provide the new mentor protege consultant rather than separating theactivities into support services andor technical assistance

Disparity study clarifications

1) Will WSDOT consider sponsoring legislation to support the policy changes and goalincreases to insure manditory goals wont be necessary

a) If not what measures will you grant primes to operate outside the box (ie entertain bestvalue over low bid modify responsiveness by subs to require adherence to meeting voluntarygoals developing standards around federally funded gccm and other low bid procurementsthat give powers to primes to meet objectives including but not limited to mentor protegerelationships joint ventures bond waiving techniques cash flow assistance material andequipment acquisition manufacturer development specifications that have only DBES orinclude equal number of DBES as non DBES as approved installers etc)

2) Will the disparity study consultant be available for implementation or information gatheringfrom other regions

5) Will WSDOT be hiring more diverse staff amp professionaltechnical service providers inother departments outside OEO to insure policies commitments and evaluations areperformed in manner that improves diversity that reflects the communities WSDOT serves bythoughtful and legal efforts increase participation thus creating successful outcomes includingpartnerships and collaborations

Thank you and Merry Christmas

Hi Dan

Thank you for providing such thoughtful public comments questions and testimony

Regarding your public testimony below - I do not believe I am not able to answer questions ifthey are public comments Please let me know what part of this email you would likeclarification on and what part you would like considered public testimony

I appreciate your thoughtful consideration of WSDOTrsquos implementation of our civil rightsprograms

Best Regards

Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

DIDaniel Seydel IIFyi Daniel J Seydel II Platinum Group LLC 2064060844 f) 2062999934wwwplatinumbusinessgroupcom Small Business is the Answer FREE TRAINING FORENTREPRENEURS amp JOB SEEKERS - Polish your skills or make your firm standout thanksto the EntrepreneurialThu 233pDI

Daniel Seydel IIThu 1272017 1123 AMInbox Sent ItemsShow all 7 recipientsTobaynejwsdotwagov ltBayneJwsdotwagovgtJackie

Per your request below are my questions and comments some of which were verbally sharedyesterday

Congratulations on receiving the blessing of additional technical assistance dollars andcompleting the DBE Disparity Study per your report

1) Do you have any reports on your outcomes from the past 5 years on DBE support servicesand specific key performance measures from previous years funding (ie how many firmsutilized what was the objectives were objectives met did outcomes meet total satisfaction ifnot why next steps what was the firms capacity before and after services were performed (ie

sales employees bonding if applicable insurance equipment line of credit if applicablenumbertype of customers how are they doing now etc))

2) What other changes or improvements other than allowing DBES to select their own serviceproviders and a staff change will be a part of this new program

3) Was consideration to provide the new mentor protege consultant rather than separating theactivities into support services andor technical assistance

Disparity study clarifications andor comments

1) Will WSDOT consider sponsoring legislation to support the policy changes and goalincreases to insure manditory goals wont be necessary

a) If not what measures will you grant primes to operate outside the box (ie entertain bestvalue over low bid modify responsiveness by subs to require adherence to meeting voluntarygoals developing standards around federally funded gccm and other low bid procurementsthat give powers to primes to meet objectives including but not limited to mentor protegerelationships joint ventures bond waiving techniques cash flow assistance material andequipment acquisition manufacturer development specifications that have only DBES orinclude equal number of DBES as non DBES as approved installers etc)

2) Will the disparity study consultant be available for implementation or information gatheringfrom other regions

3) What lessons did WSDOT learn that it did not know from the other study(s)

4) What would WSDOT do different (ie scope time line process approach etc)

5) Will WSDOT be hiring more diverse staff amp professionaltechnical service providers inother departments outside OEO to insure policies commitments and evaluations areperformed in manner that improves diversity that reflects the communities WSDOT serves bythoughtful and legal efforts increase participation thus creating successful outcomes includingpartnerships and collaborations

Daniel J Seydel IIPlatinum Group LLC 2064060844f) 2062999934wwwplatinumbusinessgroupcom

Small Business is the Answer

FREE TRAINING FOR ENTREPRENEURS amp JOB SEEKERS - Polish your skills or makeyour firm standout thanks to the Entrepreneurial Institute of Washington

httpswwwyoutubecomchannelUCKL5YeVxL29HnNxqnb6hmXA

LIKE US on FaceBook if an Active Professional Development workshop provided by EIW

Construction University helps your firm or has benefited you

httpswwwfacebookcomEIWashingtonref=hl

From Bayne Jackie ltBayneJwsdotwagovgtSent Friday December 8 2017 10139 PMTo Daniel Seydel IICc Key Earl daneiwashingtonorg Nadeem Ismail Mussie Tewelde(mteweldehydro2geotechcom) graceflyrightaolcom Mary Wenner Watkinson LarrySubject RE Seydel Dan - WSDOT Disparity Study Presentation Public Testimony Hi Dan Thank you for providing such thoughtful public comments questions and testimony Regarding your public testimony below - I do not believe I am not able to answer questions if theyare public comments Please let me know what part of this email you would like clarification on andwhat part you would like considered public testimony I appreciate your thoughtful consideration of WSDOTrsquos implementation of our civil rights programs Best Regards Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov From Daniel Seydel II [mailtodanplatinumbusinessgroupcom] Sent Thursday December 7 2017 1123 AMTo Bayne Jackie ltBayneJwsdotwagovgtCc Key Earl ltKeyEwsdotwagovgt daneiwashingtonorg Nadeem Ismailltnipaintingearthlinknetgt Mussie Tewelde (mteweldehydro2geotechcom)ltmteweldehydro2geotechcomgt graceflyrightaolcom Mary Wennerltmwenn0108yahoocomgtSubject Seydel Dan - WSDOT Disparity Study Presentation Public Testimony Jackie

Per your request below are my questions and comments some of which were verbally sharedyesterday

Congratulations on receiving the blessing of additional technical assistance dollars andcompleting the DBE Disparity Study per your report

1) Do you have any reports on your outcomes from the past 5 years on DBE support servicesand specific key performance measures from previous years funding (ie how many firmsutilized what was the objectives were objectives met did outcomes meet total satisfaction ifnot why next steps what was the firms capacity before and after services were performed (iesales employees bonding if applicable insurance equipment line of credit if applicablenumbertype of customers how are they doing now etc))

2) What other changes or improvements other than allowing DBES to select their own serviceproviders and a staff change will be a part of this new program

3) Was consideration to provide the new mentor protege consultant rather than separating theactivities into support services andor technical assistance

Disparity study clarifications andor comments

1) Will WSDOT consider sponsoring legislation to support the policy changes and goalincreases to insure manditory goals wont be necessary

a) If not what measures will you grant primes to operate outside the box (ie entertain bestvalue over low bid modify responsiveness by subs to require adherence to meeting voluntarygoals developing standards around federally funded gccm and other low bid procurementsthat give powers to primes to meet objectives including but not limited to mentor protegerelationships joint ventures bond waiving techniques cash flow assistance material andequipment acquisition manufacturer development specifications that have only DBES orinclude equal number of DBES as non DBES as approved installers etc)

2) Will the disparity study consultant be available for implementation or information gatheringfrom other regions

3) What lessons did WSDOT learn that it did not know from the other study(s)

4) What would WSDOT do different (ie scope time line process approach etc)

5) Will WSDOT be hiring more diverse staff amp professionaltechnical service providers inother departments outside OEO to insure policies commitments and evaluations areperformed in manner that improves diversity that reflects the communities WSDOT serves bythoughtful and legal efforts increase participation thus creating successful outcomes includingpartnerships and collaborations

Thank you for your hard work

Daniel J Seydel IIPlatinum Group LLC2064060844f) 2062999934wwwplatinumbusinessgroupcom

Small Business is the Answer

FREE TRAINING FOR ENTREPRENEURS amp JOB SEEKERS - Polish your skills or makeyour firm standout thanks to the Entrepreneurial Institute of Washington

httpswwwyoutubecomchannelUCKL5YeVxL29HnNxqnb6hmXA

LIKE US on FaceBook if an Active Professional Development workshop provided by EIWConstruction University helps your firm or has benefited you

httpswwwfacebookcomEIWashingtonref=hl

From Erin EhlingerTo Bayne JackieSubject Support for WSDOTs proposed DBE goalDate Wednesday December 13 2017 115417 AM

I am writing to support the WSDOT recommended DBE Goal for FHWA contracts of 190 I also want to express my appreciation for the thoroughness of the WSDOT Disparity study and howthe study disclosed the disparity in WSDOT contracts that do not have a DBE or WBE goal ndash furtherreinforcing that all women-owned firms and minority owned firms face equity issues I remain concerned with the methodology required by the Code of Federal Regulations and case lawbecause of the dependence on the availability of firms in the calculation An unintendedconsequence of removing either gender or race from the goal is that many of these firms would goout of business the availability decreases and the formula then results in a smaller DBE goal Pleaselet me know how I can help influence a change to the CFR Thank you Erin Ehlinger

Erin Ehlinger PEPresident

24036 SE 47th StSammamish WA 98029erinehlingersmartcitytrafficcom425-221-0320

From Jackie EtterTo WSDOT Disparity StudySubject Why we need mandatory goalsDate Friday December 1 2017 61859 PM

As a DBE participating in bidding process I have found that regardless of the language which claims to insurethat disadvantaged business enterprises shall not be discriminated against the only way to ensure that this does nothappen is by mandating affirmative action goals Having been overlooked time and time again because of my gender when I have submitted bids that are verycompetitive with other bidders is very frustrating I have had many instances of companies using my price to getmy non DBE competitors to lower theirs The voluntary or laudatory DBE goals do nothing to ensure a level playing fieldThe only way to ensure non-discrimination is through mandatory goals

Jackie EtterWest Star Construction of Spokane

Sent from my iPhone

From Claudia HirscheyTo Key Earl Bayne JackieSubject WSDOT DBE Goal - Comment in supportDate Tuesday December 12 2017 61937 PM

Dear Earl and Jackie The WSDOT recommended DBE Goal for FHWA contracts of 190 is a small and important increasethat can further achieve equity in WSDOTFHWA contracting I am in support of the 19 DBE Goal I also want to express my appreciation for the thoroughness of the WSDOT Disparity study and howthe study disclosed the disparity in WSDOT contracts that do not have a DBE or WBE goal ndash furtherreinforcing that all women-owned firms and minority owned firms face equity issues I remain concerned with the methodology required by the Code of Federal Regulations and case lawbecause of the dependence on the availability of firms in the calculation An unintendedconsequence of removing either gender or race from the goal is that many of these firms would goout of business the availability decreases and the formula then results in a smaller DBE goal Sincerely Claudia S Hirschey PETransportation Consulting Servicesclaudiahirscheycomcastnethttphirscheytcscom2068564988 Mobile

From Nate ThomasTo WSDOT Disparity StudySubject WSDOT Proposes DBE goal of 19Date Thursday December 7 2017 42720 PM

The WSDOT should look into similar ways the Federal Gov has handled the equal opportunity forthose that fall under the DBE status and set aside specific projects for the DBErsquos and moreimportantly UDBErsquos so these companies have better chance of landing contracts Maybe a lot 10 ofthe DBE goal to set aside for only DBEs and other 9 goal met as it is done currently with COA onlarger contracts Nate ThomasSenior EstimatorD 5095688085 | C 5099941156331 North Fancher Road | Spokane WA | 99212

The information contained in this email including any attachments is confidential and may beprivileged It is intended only for the person or entity to which it is addressed and no waiver isintended by sending this email If the reader is not the intended recipient you are herebynotified that any review retransmission dissemination or other use of or taking any action inreliance upon this information is strictly prohibited If you have received this email in errorkindly notify the sender by reply email and delete the original message from any computerThank You

From Brian FujiiTo WSDOT Disparity StudySubject WSDOT propsed DBE GoalsDate Thursday December 7 2017 110638 AM

Good morning Jackie

I wanted to comment on WSDOTs proposed DBE goal to 19 I believe WSDOTs plan toincrease the overall DBE goal to 19 will provide greater opportunities for DBE contractorsin different disciplines to participate in federally funded contracts

Without the new DBE requirement and with Proposition 200 there are limited opportunitiesfor DBE contractors in disciplines different than the typical trucking flagging and rebar Inaddition there are no incentives for general contractors to go out beyond the usual truckingflagging and rebar DBE subcontractors

Increasing the DBE goals will provide opportunities for different DBE contractors in differentdisciplines to participate in WSDOT federally funded projects

Thank you for your time

RespectfullyBrian FujiiPresident Subsurface ConstructionP 2063836478F 2069604639MDBE 4M0024998

From Forman StephanieTo Bayne JackieCc Millar Roger christinenhanmailhousegov Claudia Hirschey Sarah Corbin Jiang Yingle

efaulknerenviroissuescom Diana Giraldo Kelly CheesemanSubject WTS - Disparity Study Comment LetterDate Friday December 15 2017 71020 PMAttachments 2017_Dec 15_WTSCommentLetter_WSDOT DBE Goalpdf

Dear Ms Bayne Please find our attached letter which summarizes the WTS Puget Sound Chapterrsquos support foradvancement of women in transportation and our comment letter regarding the recent DisparityStudy Please feel free to contact me if you have any questions or would like to discuss Sincerely Stephanie S Forman PEWTS Puget Sound President Transportation Project Manager

929 108th Avenue NE Suite 1300Bellevue WA 98004D 4254681548 M 2062291745stephanieformanhdrinccom

December 15 2017

Jackie Bayne Policy and Reporting Manager

Office of Equal Opportunity

Washington State Department of Transportation

PO Box 47314

Olympia WA 98504-7314

Dear Ms Bayne

On behalf of the Puget Sound Chapter of Womenrsquos Transportation Seminar (WTS) we would

like to thank the Washington State Department of Transportation for presenting to our

organization the DBE Disparity Study results We very much appreciated the presentation by Earl

Key Director of WSDOTrsquos Office of Equal Opportunity Teresa Berntsen (Director Office of Minority

and Womens Business Enterprises) as well as Leslie Jones (Director Sound Transit Office of Small

Business Development and Labor Compliance)

Following a review of the WSDOT Disparity Study and as a result of consultation with WTS

International we would like to provide WSDOT with our comments for your consideration

As you know WTS is an organization focused exclusively on attracting retaining and advancing

women in transportation By the year 2018 there will be thousands of vacancies in the

transportation industry for qualified professionals and while women account for more than half of

the worldrsquos workforce they are a very small minority in transportation disciplines

We are pleased that the outcome of the 2017 Disparity Study that recognizes the on-going barriers

for DBEs including women-owned businesses in transportation The WSDOT recommended DBE

Goal of 190 is a small and important increase that can further achieve equity in WSDOTFHWA

contracting We are also pleased that the 2017 Disparity Study has documented the disparity in

WSDOT contracts that do not have a DBE or WBE goal ndash further reinforcing that all women-owned

firms and minority owned firms face equity issues We are encouraged that the WSDOT has asked

FHWA to rescind the 2016 waiver

While WTSrsquo mission is specific to the advancement of women we are a race-neutral organization To

this end we are also deeply concerned about the underutilization of minority owned firms There is

no equity or ldquofair playing fieldrdquo without equity for all gender and races We remained concerned with

the methodology required by the Code of Federal Regulations and case law because of the

dependence on the availability of firms in the calculation An unintended consequence of removing

either gender or race from the goal is that many of these firms would go out of business the

availability decreases and the formula then results in a smaller DBE goal This consequence is

contrary to our mission

We look forward to our continued participation in WSDOTrsquos DBE advisory group we are anticipating

notice that the 2016 waiver has been rescinded and how we can work together to continue

advancing minority and women-owned firms in the transportation field

Sincerely

WTS Puget Sound Chapter

Stephanie Forman

President

C Roger Millar Secretary WSDOT

C Representative Adam Smith 9th Congressional District Washington co Christine Nhan

WTS Puget Sound Chapter

PO Box 3461

Bellevue Washington 98009

From Dave Gent - WAPATo Bayne JackieCc Tom GaetzSubject WAPA Public Comments - RE WSDOT FHWA Disadvantaged Business Enterprise Proposed GoalDate Friday December 15 2017 14119 PMAttachments 12152017 DBE Proposed Goal - WAPA Public Comments Letterpdf

Good afternoon Jackie Please find attached WAPArsquos ldquofor the public recordrdquo comments with respect to WSDOTrsquos proposedDBE Goals FHWA funded work I assume that the Master DBE Directory was not sent to you this week so as a result we were notable to review the directory before the close of the public comment period That fact is noted withinour comment letter Thank you for your efforts Have a good weekend

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Friday December 8 2017 1219 PMTo Dave Gent - WAPA ltdavegentasphaltwacomgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hello Dave WSDOT did not take possession of this directory as part of our review process We will provide youwith the records without submitting a formal request However we need to get them from theconsultant first I will hopefully have them to provide next week I will keep you updated on therequest Have a nice weekend Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal Opportunity

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

December 15 2017

Jackie Bayne Policy Manager WSDOT Office of Equal Opportunity Delivered via e-mail to BayneJwsdotwagov RE Public Comment (as requested) to Proposed Overall DBE Goal for the FHWA (2018 ndash 2020) Ms Bayne Thank you for your presentation via webinar on December 5 2017 outlining WSDOTrsquos evaluation process used to determine the proposed overall DBE goal for the FHWA Thank you also for the Colette Holt amp Associates (CHA) DBE Advisory Group presentation made on September 14 2017 Both presentations helped to distill the findings of the 2017 Disparity Study produced by CHA In response to Earl Keyrsquos initial informal request to comment on the proposed overall DBE goal made during the DBE Advisory Committee teleconference held on October 12th we provided a list of reasons that we believe justify a lower DBE goal than is now being proposed Our initial response to Mr Keyrsquos request did not serve to influence WSDOT and the current proposed goal remains at 190 The arguments provided on October 12th against the significant increase in the proposed DBE goal (versus the previous goal and recent historic DBE participation) are repeated and supplemented below and will serve as the Asphalt Pavement Associationrsquos (WAPArsquos) official public comments

In concert with WSDOT and the OWMBE WAPA and the construction firms that WAPA represents have demonstrated a commitment to the principals of equal opportunity for all ldquoready willing and ablerdquo firms for the entire history that our DBE program has been in place WAPA has continuously demonstrated its commitment to the goals of the DBE program and for increasing the representation of disadvantaged groups within our industry as both workers and owners of firms Please recognize that WAPArsquos oversight and critique of the DBE program has always attempted to balance the principals of fair and open competition with the practical aspects of the low bid compressed schedule high performance standards demanded within the WSDOT marketplace Our comments below are meant to enhance WSDOTrsquos and OWMBErsquos understanding of the market and to hopefully have WSDOT fully consider all of the dynamics that are at play when proposing its Triennial DBE goal for FHWA projects Current DBE Capacity vs Historically Robust Market In advocating for a realistic and defensible DBE goal it has always been WAPArsquos position that it is paramount that the realities of the marketplace and true certified DBE subcontracting capacity should be a primary standard While a ldquostretchrdquo goal may appear to be progressive on its face it comes with consequences for all of the parties involved in the WSDOT federal aid contracting arena To balance the dynamics of the WSDOT contracting system the DBE goal should be tempered with the realities of the market and with a true measure of the underlying effectiveness of the DBE support services available to contractors

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 2 of 6 The first point of fact that has not been given any apparent consideration by WSDOT in its evaluation of the current capacity of certified DBErsquos is that there is an historically robust workload scheduled to be performed in the 2017 through 2022 time-frame particularly in the Puget Sound ldquoEverett to Olympiardquo corridor By WSDOTrsquos own estimates (see Attachment A) public works construction project starts in the 2018 to 2022 time-frame in this region will exceed $333 billion (B) counting the work projected from just five public entities WSDOT will be taking a decidedly ldquoback seatrdquo role during this period to Sound Transit which will have construction project starts of $226B vs WSDOTrsquos projected volume of $67B WSDOTrsquos summary publication titled Washington State Department of Transportations Proposed Federal Highway Administration Triennium Disadvantaged Business Enterprise Goal Federal Fiscal Years 2018-2020 states correctly that ldquoIncluded among the types of evidence that must be considered are the current capacity of DBEs to perform work on WSDOTrsquos federally-assisted contracts as measured by the volume of work DBEs have performed in recent yearshelliprdquo (Step Two Adjustment discussion) With the Sound Transit program being over 300 larger than the total WSDOT program in this region a sober assessment of true certified DBE capacity in the next three years needs to be considered by WSDOT If the huge construction boom over the next five years does not prompt a Step Two Adjustment then it becomes obvious that the realities of the market are being ignored by WSDOT for DBE goal setting Put another way if the 2018 through 2022 level of contracting activity does not warrant a goal adjustment what will DBE Access Barriers Not Yet Addressed The CHA 2017 Disparity Study points out multiple recommendations in Section VII that impact DBE participation and access to the market Assessments relating to those impacts and the state of maturity in addressing the CHA recommendations should be considered when assessing the DBE goal Many of the CHA recommendation have not been adequately addressed at this point in time Some of the prime examples are listed below Increase Certification and Expertise ndash The Disparity Study as explained to us includes all minority- (MBE)

and women-owned (WBE) firms that could be readily identified that perform work within Washington State and that perform work within the NAICS code framework CHA developed to cover WSDOT project work During the various presentations relating to the Disparity Study WSDOT representatives said that outreach to currently non-certified MBE amp WBE firms has increased and that WSDOT aspires to bolster its list of certified firms in the future but this effort is just beginning and the success of the effort needs to be means tested against the broader population of MBE amp WBE firms included in the CHA base line evaluation As the Disparity Study uses a much broader population of MBE WBE contractors to arrive at its conclusions (both non-certified firms and firms too large for certification) it follows that the calculated DBE proposed goal is overstated to include capacity that does not currently exist within WSDOTrsquos certified DBE framework Unless OMWBE is experiencing sudden and unprecedented success in recruiting new MBEWBE firms the DBE goal should be adjusted downward to recognize that the ldquoready willing and ablerdquo contractors that WSDOT has certified is only a subset of the total MBEWBE contracting population used in the Disparity Study evaluation

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 3 of 6

Until the promised WSDOT outreach registration efforts result in a substantial increase in available certified DBE firms it is premature to count the entire population of minority- and women-owned contractors as available to participate in WSDOT contracting It is unreasonable for WSDOT to project availability capacity using the entire MBEWBE population when only its currently truncated list of certified firms is acceptable to count toward the DBE goal

A corollary to the Increase Certification and Expertise discussion above is that the calculation of the Base Figure evidently includes the broadest practical population of MBE and WBE firms identifiable (without a review of the CHA Master DBE Directory which has not been supplied prior to the close of the public comment period the scope of the directory cannot be ascertained) If this directory includes a large population of MBEWBE firms that are not certified or are too large to be certified then the Base Figure calculation should be adjusted to reflect that certified DBE firms are a fraction of the total MBEWBE firms used to arrive at the 19 suggested DBE goal With respect to the CHA Master Directory it is our understanding the WSDOT was not given the directory as part of its evaluation of the Disparity Study and it follows that it did not evaluate the proposed DBE goal in the context of the CHA Master DBE Directory In our opinion an informed decision on adjusting the CHA baseline goal calculation can only be done after an extensive evaluation of the CHA Master DBE Directory If this has not been done WSDOT has not exercised due diligence in evaluating the context and underpinnings of the CHA Disparity Study and a certified DBE Triennium goal proposal to the FHWA is premature Increase Contract ldquoUnbundlingrdquo ndash If this proposed strategy (suggested by the CHA Study) is undertaken

certified DBE Subcontractors currently available will be engaged as Prime Contractors and the value of their prime contracts will bolster the overall percentage of certified DBE contracting but a systematic effort and strategy to ldquounbundlerdquo has not been articulated by WSDOT The key question of how this effort can be accomplished without increased cost to the taxpayers and increased inconvenience for the traveling public As noted in the CHA study (page 129 final paragraph) ldquoUnbundling must be conducted however within the constraints of the need to ensure efficiency and limit cost to the taxpayersrdquo As of this writing no overarching strategy for further unbundling with proper accountability has been articulated by WSDOT to the DBE Advisory Group

Review Insurance and Experience Requirements ndash Impediments to certified DBE participation due to

necessary insurance and experience standards cannot be solved by the prime contracting community Unless and until WSDOT puts together programs to address the burden of the substantial risks shouldered by Prime Contractors on WSDOT contracts barriers for streamlined utilization of certified DBE firms will continue to exist These market driven barriers will continue to dampen the availability of certified DBE Subcontractors that are able to perform within WSDOTrsquos strict criteria without unduly transferring risk to the Prime Contractor

Better Partnering to Overcome DBE Failures to Perform ndash Prime Contractors are held fully responsible to maintain the project schedule and are subject to project liquidated damages even when they may be struggling to deal with Subcontractor performance issues It is well-established that replacing a certified ldquocondition of awardrdquo (COA) DBE Subcontractor is very onerous and likely very costly to the Prime Contractor Unfortunately the imposition of strict and often counter-productive commercially useful function (CUF) rules often compound this issue as Prime Contractors cannot help COA DBE Subcontractors work through capacity expertise or time-related issues that impact timely performance

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 4 of 6

WSDOT needs to be a much better partner in the process of dealing with under-performing or non-performing certified DBE Subcontractors The current standard operational procedure places all of the exposure for non-performance onto the Prime WSDOT does not have an equitable system to account for non-performing or under-performing certified DBE Subcontractors hired as a condition of award (COA)

Performance Information and Training ndash Commercially useful function rules (CUF) and the lack of clear benchmark definitions for good faith effort (GFE) standards remain barriers for improving accountability within the DBE system and in turn lead to distorted DBE participation rates These items remain amorphous due to lack of training or lack of historic information Chronic uncertainty exists regarding both of these items Until WSDOT changes and improves its approach to provide transparency and certainty for both the prime bidding amp subcontracting parties true certified DBE capacity will continue to be masked and the resultant higher subcontracting costs associated with a distorted marketplace will continue to be hidden

WAPA respectfully suggests that simply adding an ldquoEstimated DBE Subcontract Premiumrdquo line to the current DBE bid forms would help to establish benchmarks that could begin to be used to ldquomeans testrdquo good faith efforts If this information had been gathered over the last 20 years of the DBE program meaningful GFE standards could have been developed and could be in place today

An in-depth review of CUF standards would also provide clarity For instance it is unclear why force account items performed by certified DBEs are currently counted at only 50 of the value of the work How was this benchmark established Has it been reviewed since imposed Did it ldquosolverdquo whatever inequity WSDOT was trying to address Better clarity may lead to more expanded opportunities for certified DBE Subcontractors

Enhanced Supportive Services and Business Development Programs ndash Unless and until stronger programs of these types are shown to be effective in boosting certified DBE business development increased DBE participation due to stronger business acumen should not be relied upon when setting the new DBE goal

Does OMWBE have a reasonable expectation that future plans for enhanced and expanded programs will be more successful than those employed in the past Assuming that certified DBE Subcontractors will be better prepared to deal with the WSDOT contracting environment than in the past should not be relied upon to boost DBE participation goals Especially troubling were the multiple references within the CHA report highlighting that DBEs believe that the staff at OMWBE lack a deep knowledge about the highway construction industry (eg Study page 129 2nd paragraph) Does OMWBE have a path forward that will address this issue and thus improve supportive services impacts

Develop a Bonding and Financing Program for SBEs ndash This is completely outside of the prime contracting

communityrsquos scope of influence WSDOT must find a way to institute changes that both protect the taxpayer and help increase certified DBE bonding capacity and access to financing ndash very large hurtles To assume that these hurtles can effectively be overcome within the 2018 ndash 2020 time frame when they have been chromic issues for the past 20 plus years of DBE program development is not rational

A helpful innovation would be for WSDOT to underwrite performance and payment bonds for certified DBE firms or to create promote a system that helps certified DBE firms obtain private bonding Bridging the gap to address capital access and performance risks (bonding) must be championed by WSDOT

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 5 of 6

Base Figure Adjustment to Address Available Subcontract Volume and DBE Prime Contracts It is a fact that mid- to large-sized MBEWBE firms that compete both as Prime Contractors and as Subcontractors are not eligible to be OMWBE certified DBEs Further the current amount of contract unbundling for greater DBE access to WSDOT prime contracting (see below) accounts for a very low dollar volume of prime contracts performed by certified DBEs Finally by specification (WSDOT standard specification 1-081) Prime Contractors are obligated to perform 30 of the total volume of the work (less specialty work) or stated another way a maximum of 70 of the dollar volume on WSDOT projects is typically available to award to subcontractors These market dynamics are NOT addressed in the Disparity Study A responsible DBE goal made absent of these facts should not be implemented A reasonable adjustment to the proposed 19 DBE goal is presented below

bull The percent of WSDOT prime contracts awarded to certified DBE firms is likely less than 5 by total WSDOT

contract volume Assuming this approximation is valid (likely very conservative) then the amount of WSDOT contract work available to certified DBE firms via subcontracting should be adjusted to account for the factors outlined above The Base Figure (19) should be adjusted to recognize that a 70 maximum subcontractor participation is available (in the numerator) and to account for the assumed 5 certified DBE prime contracts in the denominator Reasonable Base Figure Adjustment 19 (proposed) x 70 subcontracts available divide 95 of Non-Certified DBEs as Prime Contract Volume = 190 x 0737 = 140 adjusted goal This is an adjustment based on the practical dynamics of the WSDOT contracting system and it represents a more realistic look at the true subcontract volume that is available for Prime Contractors to award to certified DBE firms

Conclusions

Until the items listed above are addressed and in place it is not reasonable to believe that DBE goals can be increased by nearly 163 (from 117 to 190) When the projected robust public works contracting market is appropriately considered the true availability of certified DBE Subcontractors for WSDOT contracts will be truncated due to demand across all public works sectors With multiple strong public works programs competing for a limited population of certified DBEs the ability to meet increased WSDOT DBE goals will be severely challenged Without very clear concise and transparent good faith effort rules the ability to address DBE goals that greatly overestimate true near term certified DBE capacity will result in non-attainment bid day chaos failures to perform andor rapidly increased pricing

The clear conclusion is that at this point in time under the current circumstances without effectively instituted new programs rules procedures that could enhance the certified DBE programrsquos overall effectiveness we believe that the DBE goal should remain at or near 12 As OMWBE documents and demonstrates its future successes in improving access and eliminating capacity barriers only then should the DBE goal be re-evaluated and increased

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 6 of 6

In closing please remember that it is rare that the contracting community is asked our opinion with respect to the WSDOTrsquos DBE policies and so this letter is somewhat a vehicle to highlight collective concerns It is our belief that the majority of the Prime Contractors in Washington state support the objective of creating a level playing field for ready willing and able DBEs

If the level playing field is not yet possible in the absence of the DBE program then the key is to set realistic goals that recognize reflect and address the hard realities and market dynamics imposed by WSDOTrsquos bedrock environment of awarding contracts to the lowest cost responsible and responsive Contractor

Respectfully submitted Washington Asphalt Pavement Association

David Gent Tom Gaetz Executive Director Senior Advisor

Attachment A ndash WSDOT Central Puget Sound Public Works Contracting Projection 2018 - 2022

Con

stru

ctio

n Pr

ojec

t Sta

rts

2018

-202

2S

ound

Tra

nsit

$22

6 B

SD

OT

$08

B

Tran

sit

amp O

ther

s$1

7 B

WS

DO

T$6

7 B

Por

t of

Sea

ttle

$15

B

TOTA

L$3

33

B

Source N

ov 1

9 2

017

pres

enta

tion

to W

APA

Ann

ual M

eetin

g

Attachment A

Work (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Dave Gent - WAPA [mailtodavegentasphaltwacom] Sent Thursday December 7 2017 144 PMTo Bayne Jackie ltBayneJwsdotwagovgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hi again Jackie Irsquom fine thanks and hope you are the same Interesting The Master DBE Directory is the basis for and integral to the conclusions of the DisparityStudy Is it not then part of the information needed to fully review and comment on the DisparityStudy Was it not provided by CHA to WSDOT for review We are trying to fully understand thestudy and if this directory was part of the study why would it need to be obtained by a publicrecords disclosure It should be in the public domain and not restricted from ease of access If you are sure that a public records request is needed Irsquoll start that process but we will need tonote that point of fact when we submit our public comments If you are able to reconsider please let me know Respectfully

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Thursday December 7 2017 126 PMTo Dave Gent - WAPA ltdavegentasphaltwacomgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hello Dave I hope you are doing well

That information would likely be obtained through a public disclosure request Best Regards Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Dave Gent - WAPA [mailtodavegentasphaltwacom] Sent Thursday December 7 2017 113 PMTo Bayne Jackie ltBayneJwsdotwagovgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Jackie Can you please provide an electronic file or provide a weblink for the Master DBE Directory thatColette Holt amp Associates developed for the WSDOT Disparity Study 2017 (first referred to on Page 8of the Disparity Study) I did not see a link to this Master DBE Directory within the study Thanks

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Friday October 27 2017 1118 AMTo Kenyon Wendy ltKenyonWwsdotwagovgt Adams E W ltewadamssystemsclcomgtAdekoyaAndrew ltandrewadekoyabccomgt AlyssaBalllegwagov Anindita Mitraltamitracrea-affiliatescomgt APRISeattlehotmailcom Armstrong CharlotteltCharlieAatgwagovgt Ato Apiafi Architects PLLC ltatoaatoapiaficomgt benzfanwaorgBerntsen Teresa (OMWBE) ltTeresaBomwbewagovgt Billingsley Andrealtbillinawsdotwagovgt Bramlet Erica ltEricaBramletlegwagovgt Brooks Julius

ltBrooksJwsdotwagovgt Brown Jason ltjbrownldccorpcomgt bwallacenwlaborersorgCamden Allison ltCamdenAwsdotwagovgt carlllivingstongmailcom Cerda OscarltCerdaOwsdotwagovgt Christopher Chris ltChristCwsdotwagovgt ckerneycaawagovdanplatinumbusinessgroupcom davegentasphaltwacom David BalltDavidsignsnowmillcreekcomgt Davis Khalia ltDavisKhwsdotwagovgt Davis RaShelle (GOVltrashelledavisgovwagovgt Dayton Jo ltDaytonJwsdotwagovgt ddhondtagcwacomDebbieDriverlegwagov Dennis ltdennisahlkiewitcomgt dmcleodnwlaborersorgdrart6651gmailcom Duncan Enid lthigradeincgmailcomgt EltonltEltonwashingtonstatetruckingcomgt eprincecaawagov flemosldccorpcomfmartineznwmtnmsdcorg geoffshookatkncom glovelady ltgloveladyexcelglovescomgtGrabow Katie ltkgrabowsystemsclcomgt Guilfucci Jackie ltJackieGuilfucciskanskacomgt HealyLinda ltHealyLwsdotwagovgt Higginbotham Breanne ltHigginBwsdotwagovgt HirscheyClaudia ltclaudiahirscheycomcastnetgt Holt Colette ltcoletteholtmwbelawcomgt Huff JohnltHuffJwsdotwagovgt Iniguezchawagov JacksonMaynardlegwagov Jimmy Matta(jmattaalcantarassoccom) ltjmattaalcantarassoccomgt kellywickergovwagov Key EarlltKeyEwsdotwagovgt Kirk Jon ltjkirkwhhnfscomgt Kris Purrier ltkpurrierhwageocomgtleewabuildingtradesorg lesliejonessoundtransitorg Liz Evans ltlevansagcwacomgt LopezErin lterinlopezdeswagovgt Martha Cerna ltMarthaPSLCCORGgt Martin-Arnold EdwinaltMartinEwsdotwagovgt Mary Lerdahl ltmarydbeelectricinccomgt McCarty Hannahlthannahmccartylegwagovgt Melissa L Boyles ltmelissaboylesmwbelawcomgt Metcalf KeithltMetcalKwsdotwagovgt michaelicapaawagov Michelle ltMichelleTTCC26netgt MillarRoger ltMillarRwsdotwagovgt Nakamura Jason ltjasonnakamura1-alliancecomgtNavarroLportseattleorg olliepmt-solutionscom pastorbanksesbctacomacom PatrickHughes ltphugheshughesgroupbizgt Petersen Jodi (FHWA) ltJodiPetersendotgovgtrabbottliunaorg rcarmsteadgmailcom ricemportseattleorg Riley D ltdrileylydigcomgtSeling ltSelingjpfranciscomgt sherryharrisergosynchcom Stell MellodyltStellMwsdotwagovgt terigobintulaliptribes-nsngov timwilliamfactorycom tinaterra-tdicom tkellyldccorpcom tomgaetzmsncom vcollinsacec-waorgverlenejazzmsncom Wang Albert ltWangAatgwagovgt Waugh GregltGregWMaxKuneyComgt Yates Henry ltYatesHWSDOTWAGOVgtCc Tom Gaetz lttomgaetzmsncomgt Dave Gent - WAPA ltdavegentasphaltwacomgt VanCollins ltvcollinsacec-waorggt Daniel Seydel II ltdanplatinumbusinessgroupcomgt MaynardJackson ltJacksonMaynardlegwagovgt Carl Livingston ltcarlllivingstongmailcomgt DonMcLeod ltdmcleodnwlaborersorggt JIMMY MATTA ltjimmymattamsncomgt Prince Ed(CAAA) lteprincecaawagovgt David DHondt ltddhondtagcwacomgt Irene Reyesltgloveladyexcelsupplycompanycomgt McDaniel Craig ltMcDaniCwsdotwagovgtsherryharrisergosynchcomSubject WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Good morning On Monday October 30th WSDOT will be releasing the proposed overall Federal HighwayAdministration Disadvantaged Business Enterprise goal attached for public comment throughDecember 15 2017 This overall DBE goal is based upon the recently completely DBE ProgramDisparity Study WSDOT is proposing a 19 percent overall DBE participation goal on Federal Highway

Administration-funded projects for federal fiscal years 2018 through 2020 DBE goals fortransportation projects that receive federal funds represent a percentage of the value of work inwhich minority- and women-owned businesses should participate Once finalized and submitted toFHWA early next year the goal will be effective through Sept 30 2020

The purpose of the DBE program is to create a level playing field for firms owned and operated bydisadvantaged individuals wanting to participate in federally assisted highway transit and aviationprograms The attached overall DBE goal is for FHWA funded projects WSDOT will be updating theFTA and FAA overall DBE goals in the near future

If you have any questions please contact Earl Key Director of the Office of Equal Opportunity at3607057091 or KeyEwsdotwagov Thank you Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

  • Proof-Of-Publicationpdf
    • Mediapdf
      • AGC
      • Daily Journal
      • Daily Medium
      • DBEGood
      • OMWBE
      • Seattle Medium
      • Tabor 100
      • The Chronicle
      • Tukwila
        • King County
          • Public-Comments-20180111pdf
            • 19 DBE Requirement(1)
            • AGC Comments on Proposed 10 Goad
            • Backstrom Curb amp Sidewalk
            • comments on WSDOT proposed DBE goal
            • Cowlitz County Public Works
            • DBE Contracting goals
            • DBE Goal
            • DBE Program Disparity Study
            • Disparity Study Comments from City of Spokane
            • FW_ WSDOT News - WSDOT seeks comments on propos
            • Proposed DBE Goals
            • RE_ DBE Contracting Goal Comments
            • Re_ DBE Goal Comments
            • Re_ Seydel Dan - WSDOT Disparity Study Present
            • Support for WSDOTs proposed DBE goal
            • Why we need mandatory goals
            • WSDOT DBE Goal - Comment in support
            • WSDOT Proposes DBE goal of 19
            • WSDOT propsed DBE Goals
            • WTS - Disparity Study Comment Letter

Steve Smith President

SampK Painting incP O BOx 390clacKamaS OregOn 97015Phone (503) 557-5544Fax (503) 557-5566Cell (503) 260-5280Steveskpaintingcom

From Lei WuTo Bayne JackieSubject comments on WSDOT proposed DBE goalDate Thursday December 14 2017 94925 PM

To Whom It May Concern

Below is my comments

The WSDOT recommended DBE Goal for FHWA contracts of 190 is a small andimportant increase that can further achieve equity in WSDOTFHWA contracting I am insupport of the 19 DBE Goal

I also want to express my appreciation for the thoroughness of the WSDOT Disparity studyand how the study disclosed the disparity in WSDOT contracts that do not have a DBE orWBE goal ndash further reinforcing that all women-owned firms and minority owned firms faceequity issues

I remain concerned with the methodology required by the Code of Federal Regulations andcase law because of the dependence on the availability of firms in the calculation Anunintended consequence of removing either gender or race from the goal is that many of thesefirms would go out of business the availability decreases and the formula then results in asmaller DBE goal

Thanks

Lei

Lei Wu PE AICP

Principal CSL Consulting

LeiWucsl-consultingnet

(425)562-6275

From Stephanie SimpkinsTo WSDOT Disparity StudySubject DBE Contracting goalsDate Wednesday November 29 2017 20259 PM

My name is Stephanie Simpkins and I own North Star Enterprises It is a large womanowned traffic control company located in Spokane Washington My mother founded thecompany in 1984 and I have worked in this family owned business most of my life Ipurchased the business from her in 2013 and have been sole owner since then My company thrived under the Disadvantaged Business Enterprise (DBE) Programimplemented by Washington Department of Transportation and administrated by United StatesDepartment of Transportation What started as a small business with one truck and a fewemployees has grown over the years to be one of the largest traffic control companies in thestate and employee countless people every construction season It has not been an easy roadover the years being a woman in the construction industry never is and it is hard to say wherewe would be now if it werenrsquot for the assistance of the DBE program As you know in June of 2017 majority women were removed from the DBE program basedon a disparity study conducted in 2012 On March 2014 Washington Department ofTransportation requested a wavier to remove majority women from the DBE program Thishas had an immediate and drastic impact on my business and all who work for me From themoment the waiver was approved and my company could no longer be used as a condition ofaward at bid time I began losing work Most recently the 2018 North Central Region ChipSeal which we have worked on for the last 10 years This contract provides work forapproximately 40 employees for the entire construction season I have already been told byseveral contractors that with such a high UDBE goal they wont even be able to consider mefor this project This loss along with several other smaller contracts to date are painting avery dismal future for my business With all of this turmoil surrounding the future of my business I find it frustrating to say theleast that WSDOT has chopped me off at the legs by not allowing my firm to count for theCOA but can use the little participation I may still contribute to help them reach their overallstate goal How is this fair If the contractors canrsquot utilize my business than neither shouldWSDOT As far as setting future state DBE contracting goals it looks as if the bar will beraised once again all while excluding the largest subset of useable DBErdquoS To me raising theoverall state goal at this time (which is already challenging to meet) with women DBErsquosexcluded from the program seems horribly ill timed

From Karen R BannishTo Bayne JackieSubject DBE GoalDate Tuesday December 5 2017 32549 PM

Hello Jackie ndash thank you for the webinar today concerning the proposed Overall DisadvantagedBusiness Enterprise Goal for the Federal Highway Administration I understanding the DisparityStudy much better now and checked the document you mentioned on the WSDOT website Pacific County is located in the Southwest corner of the State of Washington The tip of the LongBeach Peninsula would be 2 frac12 hours from Interstate 5 Our federal work primarily includes strictlyoverlay projects with 12 or fewer items of work included in the contract When bidding a project(our contracts are usually less than $500000) we sometimes received a single bid from the process Due to our proximity and the small cost for the work it is difficult to entice DBE participation Thereare simply no items of work that can be performed Having a mandatory DBE goal placed upon theproject in a rural area simply to meet the disparity guidelines will only increase the cost of theproject We feel the goals should be set in balance with the cost of the project and the items of work and notsimply directed to meet the overall goal

Karen BannishSenior Engineering TechnicianPacific County Department of Public Works211 North Commercial StreetRaymond WA 98577(360) 875-9368

From Dawn EgbertTo Bayne JackieSubject DBE Program Disparity StudyDate Tuesday December 5 2017 23825 PM

Hi JackieThank you for the great information on the call today You talked about the small works rosterbriefly We had a conversation in our office today about small contractors who are signed up on thePort of Vancouverrsquos small works roster Our team has had opportunity to talk to some of thecompanies on our roster who are women owned or minority owned businesses but they arenrsquotsigned up as a DBE firm When asked about that theyrsquove mentioned that they donrsquot want to fill outthe additional paperwork required to obtain the certification as a DBE As for the DBE goal at 19 it doesnrsquot seem to present an issue for the majority of our projects ndashespecially those where we would apply FHWA funds if granted However if we did happen to have aproject that didnrsquot include classifications of work where DBE certified participants are availablewould there still be an exception or a good faith efforts clause Thanks again for your time Dawn EgbertProcurement Services Manager3103 NW Lower River Road Vancouver WA 98660Direct 3609921102 | Cell 360448-9867 | Main 3606933611 | Fax 360735-1565degbertportvanusacom | wwwportvanusacom | available port properties Leadership | Stewardship | Partnership

From Feist MarleneTo WSDOT Disparity StudyCc Simmons Scott M Twohig KyleSubject Disparity Study Comments from City of SpokaneDate Friday December 15 2017 52226 PMAttachments image010png

image011pngimage012png

December 15 2017 Jackie BaynePolicy amp Reporting ManagerOffice of Equal OpportunityWashington State Department of TransportationPO Box 47314Olympia WA 98504-7314 RE Proposed DBE Contracting Goal for Highway Projects Dear Ms Bayne The City of Spokane would like to provide comments related to proposed DisadvantagedBusiness Enterprise Goal for Federal Highway Administration (FHWA) contracts by theWashington State Department of Transportation (WSDOT) Office of Equal Opportunity Manyof our projects receive funding from FHWA and as such the proposed new goals areapplicable to City work The City is supportive of the programrsquos purposemdashldquoto create a level playing field for firmsowned and operated by disadvantaged individuals wanting to participate in federally assistedhighway transit or aviation programsrdquo However the City is concerned about the ability to achieve the proposed utilization rate of upto 19 percent for DBEs in Eastern Washington considering the low number of DBEs in ourregion and the record construction under way in the City and in our region WSDOTrsquos DBE Program Disparity Study notes ldquoContractors in Eastern Washington repeatedlyreported that the goals on projects in their area are too highrdquo The Inland NorthwestAssociated General Contractors group notes that only about 12 DBEs in construction fields areavailable in the greater Spokane area Meanwhile the City has performed record construction in each of the last three years withproject totals hovering around $100 million Our City work has been bolstered by anaggressive program to improve water quality in the Spokane River Our local school districtsand our neighboring jurisdictions also have aggressive construction programs right now

Additionally we expect WSDOTrsquos work in this region to accelerate as North Spokane Corridor(NSC) construction proceeds At times our area is reaching the limits overall of our contractingcommunity the City has worked to release its projects in the first quarter of the year as muchas possible to lock in contractors and receive better pricing The capacity of existing DBEs in our region simply cannot meet that current high demand Some DBE firms are tempted to agree to more work in these times but we have found that insome cases DBEs have stretched themselves too thin On two recent City projects generalcontractors were unable to meet DBE goals as a result of DBE firms that couldnrsquot fulfill theircommitments for providing personnel or equipment It also seems implausible to expect DBEs from the West Side to mobilize teams to work on Cityof Spokane projects in large numbers In fact the Disparity Studyrsquos author responded at arecent meeting on this topic that a DBE from the West Side only very rarely completes workon the East Side of the state We would also be concerned about moving the good-paying jobs that construction providesoutside of our region The Cityrsquos median household income is $44350 considerably lower than theState of Washington MHI of $64129 and the Seattle MHI of $77351 Our leaders are working tocreate good-paying jobs for our citizens not export them to an already wealthier part of the state Additionally these projects are also funded with local dollars and our citizens expect their money toput their neighbors to work With the above considered the City is seeking

middot DBE goals for the 2018-2020 compliance period for Eastern Washington that arereflective of the current availability of DBE firms in our region

middot The re-inclusion of non-minority women owned DBEs in achieving DBE goals InSpokane non-minority women owned DBEs make up the majority of the availableDBEs And current information shows that women in Spokane overall still lag behindmen in opportunities and wages The Cityrsquos own ldquoGender and Racial Equityrdquo reportfrom 2016 noted that overall working women earned 783 percent of the earnings ofworking men in 2014 down from 827 percent in 2009 We need to lift up all women

middot The development of WSDOT programs to encourage the growth of existing andnew DBEs who can be used on street and highway projects We are encouraged by theproposed mentorproteacutegeacute program to increase the number and capacity of DBEs inEastern Washington Programs that address other barriers such as assistance withcompleting documentation or access to bonding capacity also could aid growth ofDBEs

middot The ability for WSDOT to adjust goals on a project if a selected DBE is unable tocomplete its commitments on a project This would help enable our contractors totake a chance on a new or inexperienced DBE to complete work

middot Recognition of local programs that strive to increase diversity in the work force Forexample the City operates a robust apprenticeship program that requires 15 percentof the labor hours on public works jobs greater than $600000 to be performed byapprentices The apprentice programs in our region are stepping up recruitmentefforts and are specifically seeking to recruit more youth women and minorities intoapprentice slots

As we seek to achieve the goal of increasing participation in street and highway constructionby companies owned by disadvantaged individuals we must also acknowledge that businessdevelopment and growth happens over time We must lay the groundwork now to build abase of DBEs that can help us achieve higher utilization goals over time Sincerely Marlene FeistDirector of Strategic DevelopmentPublic Works amp UtilitiesCity of Spokane

Marlene Feist | City of Spokane | Public Works Director of Strategic Development5096256505 | cell 5097109214 | mfeistspokanecityorg | spokanecityorg

From Hall MattTo WSDOT Disparity StudySubject FW WSDOT News - WSDOT seeks comments on proposed DBE contracting goal for highway projectsDate Friday December 15 2017 11956 PMAttachments WSDOT proposed DBE goal through 2020pdf

From Hall Matt Sent Friday December 15 2017 117 PMTo BayneJwsdotwagovCc Keniston Rick (KenistRwsdotwagov) MolyneKwsdotwagov SusanWilsonclarkwagovSubject WSDOT News - WSDOT seeks comments on proposed DBE contracting goal for highwayprojects Hello Jackie Please see our comments attached regarding the WSDOT proposed DBE goals Thanks for the opportunity to provide comments Matt HallClark County Public Works Washington State Department of Transportation ndash NEWSHeadquarters ndash 310 Maple Park Avenue SE ndash Olympia WA 98504-7314 ndash 360 705-7000 FOR IMMEDIATE RELEASEOct 30 2017 Contact Jackie Bayne Office of Equal Opportunity 360 705-7084

WSDOT seeks comments on proposed DBEcontracting goal for highway projectsComments accepted through Dec 15OLYMPIA ndash Contractors trade and labor organizations small and disadvantaged businessesand all others who may be interested in working with the Washington State Department ofTransportation are invited to comment on the agencyrsquos proposed Disadvantaged BusinessEnterprise goal for Federal Highway Administration contractsDBE goals for transportation projects that receive federal funds represent a percentage of thevalue of work in which minority- and women-owned businesses should participate WSDOTis proposing a 19 percent overall DBE participation goal on Federal Highway Administration-funded projects for federal fiscal years 2018 through 2020Once submitted to FHWA early next year the goal will be effective through Sept 30 2020The purpose of the DBE program is to create a level playing field for firms owned andoperated by disadvantaged individuals wanting to participate in federally assisted highwaytransit and aviation programsConnecting with communitiesWSDOT will host a series of public meetings to provide opportunities for individuals tocomment in person

Spokane

2 ndash 4 pm Tuesday Nov 28WSDOT Eastern Region Headquarters2714 N Mayfair St Spokane

Vancouver

2 ndash 4 pm Wednesday Nov 29WSDOT Vancouver Headquarters11018 NE 51st Circle Vancouver

Seattle

2 ndash 4 pm Thursday Dec 7WSDOT Northwest Region Headquarters15700 Dayton Ave N Shoreline

Other ways to provide commentThose who are unable to attend one of the meetings can participate in a no-cost webinar from230 ndash 430 pm Tuesday Dec 5 Registration for the webinar is required Those interested inparticipating should email DisparityStudywsdotwagovWritten comments can also be submitted by mail or emailJackie Bayne Policy amp Reporting ManagerWashington State Department of TransportationOffice of Equal OpportunityPO Box 47314Olympia WA 98504-7314DisparityStudywsdotwagovDocuments detailing the methodology used for determining the FHWA DBE goals areavailable for review at all WSDOT region headquarters offices and at the TransportationBuilding 310 Maple Park Ave SE Olympia They are also available online atwwwwsdotwagovequalopportunityWSDOT will consider all written comments received through Friday Dec 15 2017 Hyperlinks within this release

WSDOT Region offices wwwwsdotwagovContactofficelocationhtmregion

WSDOT keeps people businesses and the economy moving by operating and improving the statestransportation systems To learn more about what were doing go to wwwwsdotwagovnews forpictures videos news and blogs Real time traffic information is available at wwwwsdotcomtraffic or bydialing 511 Americans with Disabilities Act (ADA) InformationAccommodation requests for people with disabilities can be made by contacting the WSDOTDiversityADA Affairs team at wsdotadawsdotwagov or by calling toll-free 855-362-4ADA (4232)Persons who are deaf or hard of hearing may make a request by calling the Washington State Relay at711 Title VI Statement to Public It is WSDOTrsquos policy to assure that no person shall on the grounds ofrace color national origin or sex as provided by Title VI of the Civil Rights Act of 1964 be excluded fromparticipation in be denied the benefits of or be otherwise discriminated against under any of its federallyfunded programs and activities Any person who believes his or her Title VI protection has been violatedmay file a complaint with WSDOTrsquos Office of Equal Opportunity For additional information regarding Title

VI complaint procedures andor information regarding our non-discrimination obligations please contactOEOrsquos Title VI Coordinator at 360-705-7090 To unsubscribe to WSDOT media releases please reply and type REMOVE in the subject line

This e-mail and related attachments and any response may be subject to public disclosure under state law

From Cochrane EmilieTo WSDOT Disparity StudyCc Eugenis Susan Cowlitz Co Public Works - Brad BastinSubject Proposed DBE GoalsDate Thursday December 14 2017 85006 AMAttachments image002png

DBE Goals - Commentspdf

Please see the attached letter with comments regarding the proposed DBE Goals Ahard copy will be sent out today

Thanks

Emilie CochraneCowlitz County Public Works1600 ndash 13th Avenue SKelso WA 98626360-577-3030 ext 6523

From Michelle WolcottTo Bayne JackieCc Robideau Christopher LSubject RE DBE Contracting Goal CommentsDate Tuesday November 7 2017 65448 AMAttachments image001png

Thank you JackieWhat a relief to know that we have been heard and are not the only small business facing thisstruggle Your email is comforting

Yes you can provide us with additional assistanceLet me introduce my boss and Senior Vice President of Red Plains Professional Chris Robideau

Chris will be your contact from here since I will be leaving the company November 17th As a WA DBE we are ldquoeligible for limited DBE Support Services (SS) funding when funds becomeavailablerdquo When will this happen And are we registered or on a list to receive fundingIs the WSDOT ICR Training a prerequisite for the funding Or just helpful knowledge

Thank you for your time Jackie I will follow through with the training

Michelle Wolcott EIT Quality Control Engineer

2103 NE 129th Street Suite 201 Vancouver WA 98686 Office (360) 448-7999 Fax (360) 258-0274

wwwred-plainscom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Monday November 6 2017 332 PMTo Michelle Wolcott ltMichelleWolcottred-plainscomgtSubject RE DBE Contracting Goal Comments

Hi Michelle

Thank you for your interest in doing business with WSDOT I apologize for the lack of informationyou have come up against in your attempts to attain access to WSDOT ICR program

As you may well know WSDOT has recently completed a state wide agency specific diversity studyAnecdotal comments submitted with the study concur with your experience Not only did somerespondents find it difficult to become prequalified they also commented that the required indirectrate of 110 percent is too low to be profitable These requirements are currently under advisementby WSDOT and new DBE program requirements are currently in the process of seeking public input

As you are an OMWBE certified DBE in Washington State you will be eligible for limited DBE SupportServices (SS) funding when these funds become available At that time funds may become availableto assist you in your struggle to attain ICR eligibility Here is a link to WSDOTrsquos Indirect Cost RateTraining httpswwwwsdotwagovAuditICRTraininghtm If you would like me to find additionaltraining or information please let me know

If I can provide additional assistance of information please let me know

Best Regards

Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Michelle Wolcott [mailtoMichelleWolcottred-plainscom] Sent Tuesday October 31 2017 835 AMTo WSDOT Disparity Study ltDisparityStudyWSDOTWAGOVgtSubject DBE Contracting Goal Comments

HelloI have been in contact with WSDOT for 6 months sharing my disparaging story of beinga small DBE unable to submit SOQs for projects requiring a WSDOT Audited IndirectCost Rate Approval We do not have an in-house accountant and our outsideaccountant has explained to get all the paperwork together for WSDOT would take 40hours of work $9000 annually We cannot justify this cost to submit on a project thatwe may not acquire We have been directed to seek financial assistance from WSDOT Federal SBA andWashington State Office for Women and Minority Owned Enterprises all of whichprovided negative responses

As a DBE business in 11 states we are supporting the 19 incentive for federallyfunded contracts but we are frustrated in the fact that we will not be one of the luckyfew to participateWe have been in business 20 years From our Vancouver Washington office our clientsare the Native American tribes across the country with all contracts federally funded This summer alone the WSDOT ICR Approval has squashed our ability to submit on twoprojects that we were perfectly qualified to performI have attached previous emails to show a sample of who I have been dealing with

Thank you

Michelle Wolcott EIT Quality Control Engineer

ltimage001pnggt

2103 NE 129th Street Suite 201 Vancouver WA 98686 Office (360) 448-7999 Fax (360) 258-0274 wwwred-plainscom

From Michelle Wolcott Sent Monday July 10 2017 954 AMTo Harvey Schatzie ltHarveySwsdotwagovgtSubject RE WSDOT Indirect Cost Rate Process

Good Morning Schatzie

This is Michelle Wolcott from Red We spoke Friday June 30th about the ICRprocess and you were very encouraging I relayed the information to my boss who ishere in Vancouver then he shared with the president bookkeeper and our accountantin Oklahoma We had FAR compliance with Oklahoma DOT in 2015 so we are noteligible for the Safe Harbor Program Our account said our timekeeping system doesnot breakdown the hours and pay in the format WSDOT wants to have it presented andto get the documents in order would take the CPA and an assistant $9000 in paidhours of work It turns out this would have to be annually The other option is to hirean outside CPA firm to do the audit for us at $20000 annually

Our president said in the past we received funding assistance from the Stateof Oklahoma to get our ICR approval Does WSDOT offer any financial assistance for small businesses to reach compliance We are also a DBE in WA I have requested the same information from WA PTAC at theVancouver Chamber of Commerce and from WA Office of Minority and Women OwnedBusiness Enterprises and they both said there was nothing but suggested to askWSDOTThank you for your helpMichelle Wolcott EIT

Hello Michelle sorry but I am not aware of any grants But I was looking at this andthere is a POC at the bottom you may try to discuss the audit issuesHollyHolly BoehmeBusiness Opportunity Specialist | 8(a) Business Development ProgramUS Small Business Administration bull Seattle District Office

Hello Michelle -

Thank you for your email Im not aware of any funding available for thispurpose but do agree its quite a bit for a DBE firm to have as an expense Mostof the firms I work with do a lot more work on the Oregon side so perhaps thereare programs available that I just havent heard of Im copying my colleagueHoly Boehme in our Seattle District Office to see if they are aware of any suchassistance

Holly might there be some small business incubators or other resources availablein WA to help a small firm with the expense of getting a WSDOT AuditedIndirect Cost Rate approval Please reply all with anything you may have

Thank you

Yuri Yoshida Dyson Business Opportunity SpecialistUS SMALL BUSINESS ADMINISTRATION Portland District OfficePhone 503-326-6692 Fax 202-292-3872 wwwsbagovor

From Troy HalbergTo Bayne JackieSubject Re DBE Goal CommentsDate Wednesday December 13 2017 35533 PM

JackieToday was another example of why the goals should not be raised There were 2 jobs which Iwas low on and did not get due to the high goals This is exactly what will happen when thegoals get raised The first job was the 9180 Anacortes Ferry Paving Northeast Electric $244924 and UDBE $318000 Second job was the 9172 SR 9 East Junction Job Northeast Electric $68503 and UDBE $76300

Does this seem like a good way to spend the tax payer money I do not see how we are tosurvive if the goals get to 21

Thanks

Troy HalbergOffice360-225-7004Cell360-931-3990Fax360-225-7001

On Thu Nov 30 2017 at 1131 AM Bayne Jackie ltBayneJwsdotwagovgt wrote

Good Morning Troy

Thank you for taking the time to provide us with your experiences with the DBE Program TheWashington State Department of Transportation takes the public involvement process veryseriously and your comments will be taken into consideration prior to a final decision regardingthe overall DBE program goal

If I can be of further assistance please let me know

Best Regards

Jackie Bayne

Policy and Reporting Manager

WSDOT Office of Equal Opportunity

Work (360) 705-7084

Cell (360) 338-5783

BayneJwsdotwagov

From Troy Halberg [mailtotroyhnellcnet] Sent Wednesday November 29 2017 144 PMTo WSDOT Disparity Study ltDisparityStudyWSDOTWAGOVgtSubject DBE Goal Comments

If these goals are to be set that high this would make us as a non DBE small contractor at amajor disadvantage With these high of goals this is like handing all of the DBE electricalcontractors every job These general contractors will have no option but to use thembecause of the goals This should not go into effect We have been low on several jobs in thepast and have not gotten them do to the goals being 18 When this goes on it puts all therest of us contractors at a disadvantage Please consider the smaller non DBE contractorsthat are looking to survive as well

Thanks

Troy Halberg

Office360-225-7004

Cell360-931-3990

Fax360-225-7001

From Daniel Seydel IITo Bayne JackieCc Key Earl daneiwashingtonorg Nadeem Ismail Mussie Tewelde (mteweldehydro2geotechcom)

graceflyrightaolcom Mary Wenner Watkinson LarrySubject Re Seydel Dan - WSDOT Disparity Study Presentation Public TestimonyDate Friday December 8 2017 30323 PM

Jackie

It was my hope that the comments would be put into record I was also hoping that you wouldnot have to be the one having to formulate responses for each clarification If that is the caseI know you are swamped and will then I just ask my comments be only part of the recordHowever if there is dedicated staff that is going to be compiling and responding to theclarification then the below questions would be the priorities of most interest

These were questions unrelated to the disparity study and hopefully should be doable

1) Do you have any reports on your outcomes from the past 5 years on DBE support servicesand specific key performance measures from previous years funding (ie how many firmsutilized what was the objectives were objectives met did outcomes meet total satisfaction ifnot why next steps what was the firms capacity before and after services were performed (iesales employees bonding if applicable insurance equipment line of credit if applicablenumbertype of customers how are they doing now etc))

2) What other changes or improvements other than allowing DBES to select their own serviceproviders and a staff change will be a part of this new program

3) Was consideration to provide the new mentor protege consultant rather than separating theactivities into support services andor technical assistance

Disparity study clarifications

1) Will WSDOT consider sponsoring legislation to support the policy changes and goalincreases to insure manditory goals wont be necessary

a) If not what measures will you grant primes to operate outside the box (ie entertain bestvalue over low bid modify responsiveness by subs to require adherence to meeting voluntarygoals developing standards around federally funded gccm and other low bid procurementsthat give powers to primes to meet objectives including but not limited to mentor protegerelationships joint ventures bond waiving techniques cash flow assistance material andequipment acquisition manufacturer development specifications that have only DBES orinclude equal number of DBES as non DBES as approved installers etc)

2) Will the disparity study consultant be available for implementation or information gatheringfrom other regions

5) Will WSDOT be hiring more diverse staff amp professionaltechnical service providers inother departments outside OEO to insure policies commitments and evaluations areperformed in manner that improves diversity that reflects the communities WSDOT serves bythoughtful and legal efforts increase participation thus creating successful outcomes includingpartnerships and collaborations

Thank you and Merry Christmas

Hi Dan

Thank you for providing such thoughtful public comments questions and testimony

Regarding your public testimony below - I do not believe I am not able to answer questions ifthey are public comments Please let me know what part of this email you would likeclarification on and what part you would like considered public testimony

I appreciate your thoughtful consideration of WSDOTrsquos implementation of our civil rightsprograms

Best Regards

Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

DIDaniel Seydel IIFyi Daniel J Seydel II Platinum Group LLC 2064060844 f) 2062999934wwwplatinumbusinessgroupcom Small Business is the Answer FREE TRAINING FORENTREPRENEURS amp JOB SEEKERS - Polish your skills or make your firm standout thanksto the EntrepreneurialThu 233pDI

Daniel Seydel IIThu 1272017 1123 AMInbox Sent ItemsShow all 7 recipientsTobaynejwsdotwagov ltBayneJwsdotwagovgtJackie

Per your request below are my questions and comments some of which were verbally sharedyesterday

Congratulations on receiving the blessing of additional technical assistance dollars andcompleting the DBE Disparity Study per your report

1) Do you have any reports on your outcomes from the past 5 years on DBE support servicesand specific key performance measures from previous years funding (ie how many firmsutilized what was the objectives were objectives met did outcomes meet total satisfaction ifnot why next steps what was the firms capacity before and after services were performed (ie

sales employees bonding if applicable insurance equipment line of credit if applicablenumbertype of customers how are they doing now etc))

2) What other changes or improvements other than allowing DBES to select their own serviceproviders and a staff change will be a part of this new program

3) Was consideration to provide the new mentor protege consultant rather than separating theactivities into support services andor technical assistance

Disparity study clarifications andor comments

1) Will WSDOT consider sponsoring legislation to support the policy changes and goalincreases to insure manditory goals wont be necessary

a) If not what measures will you grant primes to operate outside the box (ie entertain bestvalue over low bid modify responsiveness by subs to require adherence to meeting voluntarygoals developing standards around federally funded gccm and other low bid procurementsthat give powers to primes to meet objectives including but not limited to mentor protegerelationships joint ventures bond waiving techniques cash flow assistance material andequipment acquisition manufacturer development specifications that have only DBES orinclude equal number of DBES as non DBES as approved installers etc)

2) Will the disparity study consultant be available for implementation or information gatheringfrom other regions

3) What lessons did WSDOT learn that it did not know from the other study(s)

4) What would WSDOT do different (ie scope time line process approach etc)

5) Will WSDOT be hiring more diverse staff amp professionaltechnical service providers inother departments outside OEO to insure policies commitments and evaluations areperformed in manner that improves diversity that reflects the communities WSDOT serves bythoughtful and legal efforts increase participation thus creating successful outcomes includingpartnerships and collaborations

Daniel J Seydel IIPlatinum Group LLC 2064060844f) 2062999934wwwplatinumbusinessgroupcom

Small Business is the Answer

FREE TRAINING FOR ENTREPRENEURS amp JOB SEEKERS - Polish your skills or makeyour firm standout thanks to the Entrepreneurial Institute of Washington

httpswwwyoutubecomchannelUCKL5YeVxL29HnNxqnb6hmXA

LIKE US on FaceBook if an Active Professional Development workshop provided by EIW

Construction University helps your firm or has benefited you

httpswwwfacebookcomEIWashingtonref=hl

From Bayne Jackie ltBayneJwsdotwagovgtSent Friday December 8 2017 10139 PMTo Daniel Seydel IICc Key Earl daneiwashingtonorg Nadeem Ismail Mussie Tewelde(mteweldehydro2geotechcom) graceflyrightaolcom Mary Wenner Watkinson LarrySubject RE Seydel Dan - WSDOT Disparity Study Presentation Public Testimony Hi Dan Thank you for providing such thoughtful public comments questions and testimony Regarding your public testimony below - I do not believe I am not able to answer questions if theyare public comments Please let me know what part of this email you would like clarification on andwhat part you would like considered public testimony I appreciate your thoughtful consideration of WSDOTrsquos implementation of our civil rights programs Best Regards Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov From Daniel Seydel II [mailtodanplatinumbusinessgroupcom] Sent Thursday December 7 2017 1123 AMTo Bayne Jackie ltBayneJwsdotwagovgtCc Key Earl ltKeyEwsdotwagovgt daneiwashingtonorg Nadeem Ismailltnipaintingearthlinknetgt Mussie Tewelde (mteweldehydro2geotechcom)ltmteweldehydro2geotechcomgt graceflyrightaolcom Mary Wennerltmwenn0108yahoocomgtSubject Seydel Dan - WSDOT Disparity Study Presentation Public Testimony Jackie

Per your request below are my questions and comments some of which were verbally sharedyesterday

Congratulations on receiving the blessing of additional technical assistance dollars andcompleting the DBE Disparity Study per your report

1) Do you have any reports on your outcomes from the past 5 years on DBE support servicesand specific key performance measures from previous years funding (ie how many firmsutilized what was the objectives were objectives met did outcomes meet total satisfaction ifnot why next steps what was the firms capacity before and after services were performed (iesales employees bonding if applicable insurance equipment line of credit if applicablenumbertype of customers how are they doing now etc))

2) What other changes or improvements other than allowing DBES to select their own serviceproviders and a staff change will be a part of this new program

3) Was consideration to provide the new mentor protege consultant rather than separating theactivities into support services andor technical assistance

Disparity study clarifications andor comments

1) Will WSDOT consider sponsoring legislation to support the policy changes and goalincreases to insure manditory goals wont be necessary

a) If not what measures will you grant primes to operate outside the box (ie entertain bestvalue over low bid modify responsiveness by subs to require adherence to meeting voluntarygoals developing standards around federally funded gccm and other low bid procurementsthat give powers to primes to meet objectives including but not limited to mentor protegerelationships joint ventures bond waiving techniques cash flow assistance material andequipment acquisition manufacturer development specifications that have only DBES orinclude equal number of DBES as non DBES as approved installers etc)

2) Will the disparity study consultant be available for implementation or information gatheringfrom other regions

3) What lessons did WSDOT learn that it did not know from the other study(s)

4) What would WSDOT do different (ie scope time line process approach etc)

5) Will WSDOT be hiring more diverse staff amp professionaltechnical service providers inother departments outside OEO to insure policies commitments and evaluations areperformed in manner that improves diversity that reflects the communities WSDOT serves bythoughtful and legal efforts increase participation thus creating successful outcomes includingpartnerships and collaborations

Thank you for your hard work

Daniel J Seydel IIPlatinum Group LLC2064060844f) 2062999934wwwplatinumbusinessgroupcom

Small Business is the Answer

FREE TRAINING FOR ENTREPRENEURS amp JOB SEEKERS - Polish your skills or makeyour firm standout thanks to the Entrepreneurial Institute of Washington

httpswwwyoutubecomchannelUCKL5YeVxL29HnNxqnb6hmXA

LIKE US on FaceBook if an Active Professional Development workshop provided by EIWConstruction University helps your firm or has benefited you

httpswwwfacebookcomEIWashingtonref=hl

From Erin EhlingerTo Bayne JackieSubject Support for WSDOTs proposed DBE goalDate Wednesday December 13 2017 115417 AM

I am writing to support the WSDOT recommended DBE Goal for FHWA contracts of 190 I also want to express my appreciation for the thoroughness of the WSDOT Disparity study and howthe study disclosed the disparity in WSDOT contracts that do not have a DBE or WBE goal ndash furtherreinforcing that all women-owned firms and minority owned firms face equity issues I remain concerned with the methodology required by the Code of Federal Regulations and case lawbecause of the dependence on the availability of firms in the calculation An unintendedconsequence of removing either gender or race from the goal is that many of these firms would goout of business the availability decreases and the formula then results in a smaller DBE goal Pleaselet me know how I can help influence a change to the CFR Thank you Erin Ehlinger

Erin Ehlinger PEPresident

24036 SE 47th StSammamish WA 98029erinehlingersmartcitytrafficcom425-221-0320

From Jackie EtterTo WSDOT Disparity StudySubject Why we need mandatory goalsDate Friday December 1 2017 61859 PM

As a DBE participating in bidding process I have found that regardless of the language which claims to insurethat disadvantaged business enterprises shall not be discriminated against the only way to ensure that this does nothappen is by mandating affirmative action goals Having been overlooked time and time again because of my gender when I have submitted bids that are verycompetitive with other bidders is very frustrating I have had many instances of companies using my price to getmy non DBE competitors to lower theirs The voluntary or laudatory DBE goals do nothing to ensure a level playing fieldThe only way to ensure non-discrimination is through mandatory goals

Jackie EtterWest Star Construction of Spokane

Sent from my iPhone

From Claudia HirscheyTo Key Earl Bayne JackieSubject WSDOT DBE Goal - Comment in supportDate Tuesday December 12 2017 61937 PM

Dear Earl and Jackie The WSDOT recommended DBE Goal for FHWA contracts of 190 is a small and important increasethat can further achieve equity in WSDOTFHWA contracting I am in support of the 19 DBE Goal I also want to express my appreciation for the thoroughness of the WSDOT Disparity study and howthe study disclosed the disparity in WSDOT contracts that do not have a DBE or WBE goal ndash furtherreinforcing that all women-owned firms and minority owned firms face equity issues I remain concerned with the methodology required by the Code of Federal Regulations and case lawbecause of the dependence on the availability of firms in the calculation An unintendedconsequence of removing either gender or race from the goal is that many of these firms would goout of business the availability decreases and the formula then results in a smaller DBE goal Sincerely Claudia S Hirschey PETransportation Consulting Servicesclaudiahirscheycomcastnethttphirscheytcscom2068564988 Mobile

From Nate ThomasTo WSDOT Disparity StudySubject WSDOT Proposes DBE goal of 19Date Thursday December 7 2017 42720 PM

The WSDOT should look into similar ways the Federal Gov has handled the equal opportunity forthose that fall under the DBE status and set aside specific projects for the DBErsquos and moreimportantly UDBErsquos so these companies have better chance of landing contracts Maybe a lot 10 ofthe DBE goal to set aside for only DBEs and other 9 goal met as it is done currently with COA onlarger contracts Nate ThomasSenior EstimatorD 5095688085 | C 5099941156331 North Fancher Road | Spokane WA | 99212

The information contained in this email including any attachments is confidential and may beprivileged It is intended only for the person or entity to which it is addressed and no waiver isintended by sending this email If the reader is not the intended recipient you are herebynotified that any review retransmission dissemination or other use of or taking any action inreliance upon this information is strictly prohibited If you have received this email in errorkindly notify the sender by reply email and delete the original message from any computerThank You

From Brian FujiiTo WSDOT Disparity StudySubject WSDOT propsed DBE GoalsDate Thursday December 7 2017 110638 AM

Good morning Jackie

I wanted to comment on WSDOTs proposed DBE goal to 19 I believe WSDOTs plan toincrease the overall DBE goal to 19 will provide greater opportunities for DBE contractorsin different disciplines to participate in federally funded contracts

Without the new DBE requirement and with Proposition 200 there are limited opportunitiesfor DBE contractors in disciplines different than the typical trucking flagging and rebar Inaddition there are no incentives for general contractors to go out beyond the usual truckingflagging and rebar DBE subcontractors

Increasing the DBE goals will provide opportunities for different DBE contractors in differentdisciplines to participate in WSDOT federally funded projects

Thank you for your time

RespectfullyBrian FujiiPresident Subsurface ConstructionP 2063836478F 2069604639MDBE 4M0024998

From Forman StephanieTo Bayne JackieCc Millar Roger christinenhanmailhousegov Claudia Hirschey Sarah Corbin Jiang Yingle

efaulknerenviroissuescom Diana Giraldo Kelly CheesemanSubject WTS - Disparity Study Comment LetterDate Friday December 15 2017 71020 PMAttachments 2017_Dec 15_WTSCommentLetter_WSDOT DBE Goalpdf

Dear Ms Bayne Please find our attached letter which summarizes the WTS Puget Sound Chapterrsquos support foradvancement of women in transportation and our comment letter regarding the recent DisparityStudy Please feel free to contact me if you have any questions or would like to discuss Sincerely Stephanie S Forman PEWTS Puget Sound President Transportation Project Manager

929 108th Avenue NE Suite 1300Bellevue WA 98004D 4254681548 M 2062291745stephanieformanhdrinccom

December 15 2017

Jackie Bayne Policy and Reporting Manager

Office of Equal Opportunity

Washington State Department of Transportation

PO Box 47314

Olympia WA 98504-7314

Dear Ms Bayne

On behalf of the Puget Sound Chapter of Womenrsquos Transportation Seminar (WTS) we would

like to thank the Washington State Department of Transportation for presenting to our

organization the DBE Disparity Study results We very much appreciated the presentation by Earl

Key Director of WSDOTrsquos Office of Equal Opportunity Teresa Berntsen (Director Office of Minority

and Womens Business Enterprises) as well as Leslie Jones (Director Sound Transit Office of Small

Business Development and Labor Compliance)

Following a review of the WSDOT Disparity Study and as a result of consultation with WTS

International we would like to provide WSDOT with our comments for your consideration

As you know WTS is an organization focused exclusively on attracting retaining and advancing

women in transportation By the year 2018 there will be thousands of vacancies in the

transportation industry for qualified professionals and while women account for more than half of

the worldrsquos workforce they are a very small minority in transportation disciplines

We are pleased that the outcome of the 2017 Disparity Study that recognizes the on-going barriers

for DBEs including women-owned businesses in transportation The WSDOT recommended DBE

Goal of 190 is a small and important increase that can further achieve equity in WSDOTFHWA

contracting We are also pleased that the 2017 Disparity Study has documented the disparity in

WSDOT contracts that do not have a DBE or WBE goal ndash further reinforcing that all women-owned

firms and minority owned firms face equity issues We are encouraged that the WSDOT has asked

FHWA to rescind the 2016 waiver

While WTSrsquo mission is specific to the advancement of women we are a race-neutral organization To

this end we are also deeply concerned about the underutilization of minority owned firms There is

no equity or ldquofair playing fieldrdquo without equity for all gender and races We remained concerned with

the methodology required by the Code of Federal Regulations and case law because of the

dependence on the availability of firms in the calculation An unintended consequence of removing

either gender or race from the goal is that many of these firms would go out of business the

availability decreases and the formula then results in a smaller DBE goal This consequence is

contrary to our mission

We look forward to our continued participation in WSDOTrsquos DBE advisory group we are anticipating

notice that the 2016 waiver has been rescinded and how we can work together to continue

advancing minority and women-owned firms in the transportation field

Sincerely

WTS Puget Sound Chapter

Stephanie Forman

President

C Roger Millar Secretary WSDOT

C Representative Adam Smith 9th Congressional District Washington co Christine Nhan

WTS Puget Sound Chapter

PO Box 3461

Bellevue Washington 98009

From Dave Gent - WAPATo Bayne JackieCc Tom GaetzSubject WAPA Public Comments - RE WSDOT FHWA Disadvantaged Business Enterprise Proposed GoalDate Friday December 15 2017 14119 PMAttachments 12152017 DBE Proposed Goal - WAPA Public Comments Letterpdf

Good afternoon Jackie Please find attached WAPArsquos ldquofor the public recordrdquo comments with respect to WSDOTrsquos proposedDBE Goals FHWA funded work I assume that the Master DBE Directory was not sent to you this week so as a result we were notable to review the directory before the close of the public comment period That fact is noted withinour comment letter Thank you for your efforts Have a good weekend

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Friday December 8 2017 1219 PMTo Dave Gent - WAPA ltdavegentasphaltwacomgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hello Dave WSDOT did not take possession of this directory as part of our review process We will provide youwith the records without submitting a formal request However we need to get them from theconsultant first I will hopefully have them to provide next week I will keep you updated on therequest Have a nice weekend Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal Opportunity

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

December 15 2017

Jackie Bayne Policy Manager WSDOT Office of Equal Opportunity Delivered via e-mail to BayneJwsdotwagov RE Public Comment (as requested) to Proposed Overall DBE Goal for the FHWA (2018 ndash 2020) Ms Bayne Thank you for your presentation via webinar on December 5 2017 outlining WSDOTrsquos evaluation process used to determine the proposed overall DBE goal for the FHWA Thank you also for the Colette Holt amp Associates (CHA) DBE Advisory Group presentation made on September 14 2017 Both presentations helped to distill the findings of the 2017 Disparity Study produced by CHA In response to Earl Keyrsquos initial informal request to comment on the proposed overall DBE goal made during the DBE Advisory Committee teleconference held on October 12th we provided a list of reasons that we believe justify a lower DBE goal than is now being proposed Our initial response to Mr Keyrsquos request did not serve to influence WSDOT and the current proposed goal remains at 190 The arguments provided on October 12th against the significant increase in the proposed DBE goal (versus the previous goal and recent historic DBE participation) are repeated and supplemented below and will serve as the Asphalt Pavement Associationrsquos (WAPArsquos) official public comments

In concert with WSDOT and the OWMBE WAPA and the construction firms that WAPA represents have demonstrated a commitment to the principals of equal opportunity for all ldquoready willing and ablerdquo firms for the entire history that our DBE program has been in place WAPA has continuously demonstrated its commitment to the goals of the DBE program and for increasing the representation of disadvantaged groups within our industry as both workers and owners of firms Please recognize that WAPArsquos oversight and critique of the DBE program has always attempted to balance the principals of fair and open competition with the practical aspects of the low bid compressed schedule high performance standards demanded within the WSDOT marketplace Our comments below are meant to enhance WSDOTrsquos and OWMBErsquos understanding of the market and to hopefully have WSDOT fully consider all of the dynamics that are at play when proposing its Triennial DBE goal for FHWA projects Current DBE Capacity vs Historically Robust Market In advocating for a realistic and defensible DBE goal it has always been WAPArsquos position that it is paramount that the realities of the marketplace and true certified DBE subcontracting capacity should be a primary standard While a ldquostretchrdquo goal may appear to be progressive on its face it comes with consequences for all of the parties involved in the WSDOT federal aid contracting arena To balance the dynamics of the WSDOT contracting system the DBE goal should be tempered with the realities of the market and with a true measure of the underlying effectiveness of the DBE support services available to contractors

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 2 of 6 The first point of fact that has not been given any apparent consideration by WSDOT in its evaluation of the current capacity of certified DBErsquos is that there is an historically robust workload scheduled to be performed in the 2017 through 2022 time-frame particularly in the Puget Sound ldquoEverett to Olympiardquo corridor By WSDOTrsquos own estimates (see Attachment A) public works construction project starts in the 2018 to 2022 time-frame in this region will exceed $333 billion (B) counting the work projected from just five public entities WSDOT will be taking a decidedly ldquoback seatrdquo role during this period to Sound Transit which will have construction project starts of $226B vs WSDOTrsquos projected volume of $67B WSDOTrsquos summary publication titled Washington State Department of Transportations Proposed Federal Highway Administration Triennium Disadvantaged Business Enterprise Goal Federal Fiscal Years 2018-2020 states correctly that ldquoIncluded among the types of evidence that must be considered are the current capacity of DBEs to perform work on WSDOTrsquos federally-assisted contracts as measured by the volume of work DBEs have performed in recent yearshelliprdquo (Step Two Adjustment discussion) With the Sound Transit program being over 300 larger than the total WSDOT program in this region a sober assessment of true certified DBE capacity in the next three years needs to be considered by WSDOT If the huge construction boom over the next five years does not prompt a Step Two Adjustment then it becomes obvious that the realities of the market are being ignored by WSDOT for DBE goal setting Put another way if the 2018 through 2022 level of contracting activity does not warrant a goal adjustment what will DBE Access Barriers Not Yet Addressed The CHA 2017 Disparity Study points out multiple recommendations in Section VII that impact DBE participation and access to the market Assessments relating to those impacts and the state of maturity in addressing the CHA recommendations should be considered when assessing the DBE goal Many of the CHA recommendation have not been adequately addressed at this point in time Some of the prime examples are listed below Increase Certification and Expertise ndash The Disparity Study as explained to us includes all minority- (MBE)

and women-owned (WBE) firms that could be readily identified that perform work within Washington State and that perform work within the NAICS code framework CHA developed to cover WSDOT project work During the various presentations relating to the Disparity Study WSDOT representatives said that outreach to currently non-certified MBE amp WBE firms has increased and that WSDOT aspires to bolster its list of certified firms in the future but this effort is just beginning and the success of the effort needs to be means tested against the broader population of MBE amp WBE firms included in the CHA base line evaluation As the Disparity Study uses a much broader population of MBE WBE contractors to arrive at its conclusions (both non-certified firms and firms too large for certification) it follows that the calculated DBE proposed goal is overstated to include capacity that does not currently exist within WSDOTrsquos certified DBE framework Unless OMWBE is experiencing sudden and unprecedented success in recruiting new MBEWBE firms the DBE goal should be adjusted downward to recognize that the ldquoready willing and ablerdquo contractors that WSDOT has certified is only a subset of the total MBEWBE contracting population used in the Disparity Study evaluation

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 3 of 6

Until the promised WSDOT outreach registration efforts result in a substantial increase in available certified DBE firms it is premature to count the entire population of minority- and women-owned contractors as available to participate in WSDOT contracting It is unreasonable for WSDOT to project availability capacity using the entire MBEWBE population when only its currently truncated list of certified firms is acceptable to count toward the DBE goal

A corollary to the Increase Certification and Expertise discussion above is that the calculation of the Base Figure evidently includes the broadest practical population of MBE and WBE firms identifiable (without a review of the CHA Master DBE Directory which has not been supplied prior to the close of the public comment period the scope of the directory cannot be ascertained) If this directory includes a large population of MBEWBE firms that are not certified or are too large to be certified then the Base Figure calculation should be adjusted to reflect that certified DBE firms are a fraction of the total MBEWBE firms used to arrive at the 19 suggested DBE goal With respect to the CHA Master Directory it is our understanding the WSDOT was not given the directory as part of its evaluation of the Disparity Study and it follows that it did not evaluate the proposed DBE goal in the context of the CHA Master DBE Directory In our opinion an informed decision on adjusting the CHA baseline goal calculation can only be done after an extensive evaluation of the CHA Master DBE Directory If this has not been done WSDOT has not exercised due diligence in evaluating the context and underpinnings of the CHA Disparity Study and a certified DBE Triennium goal proposal to the FHWA is premature Increase Contract ldquoUnbundlingrdquo ndash If this proposed strategy (suggested by the CHA Study) is undertaken

certified DBE Subcontractors currently available will be engaged as Prime Contractors and the value of their prime contracts will bolster the overall percentage of certified DBE contracting but a systematic effort and strategy to ldquounbundlerdquo has not been articulated by WSDOT The key question of how this effort can be accomplished without increased cost to the taxpayers and increased inconvenience for the traveling public As noted in the CHA study (page 129 final paragraph) ldquoUnbundling must be conducted however within the constraints of the need to ensure efficiency and limit cost to the taxpayersrdquo As of this writing no overarching strategy for further unbundling with proper accountability has been articulated by WSDOT to the DBE Advisory Group

Review Insurance and Experience Requirements ndash Impediments to certified DBE participation due to

necessary insurance and experience standards cannot be solved by the prime contracting community Unless and until WSDOT puts together programs to address the burden of the substantial risks shouldered by Prime Contractors on WSDOT contracts barriers for streamlined utilization of certified DBE firms will continue to exist These market driven barriers will continue to dampen the availability of certified DBE Subcontractors that are able to perform within WSDOTrsquos strict criteria without unduly transferring risk to the Prime Contractor

Better Partnering to Overcome DBE Failures to Perform ndash Prime Contractors are held fully responsible to maintain the project schedule and are subject to project liquidated damages even when they may be struggling to deal with Subcontractor performance issues It is well-established that replacing a certified ldquocondition of awardrdquo (COA) DBE Subcontractor is very onerous and likely very costly to the Prime Contractor Unfortunately the imposition of strict and often counter-productive commercially useful function (CUF) rules often compound this issue as Prime Contractors cannot help COA DBE Subcontractors work through capacity expertise or time-related issues that impact timely performance

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 4 of 6

WSDOT needs to be a much better partner in the process of dealing with under-performing or non-performing certified DBE Subcontractors The current standard operational procedure places all of the exposure for non-performance onto the Prime WSDOT does not have an equitable system to account for non-performing or under-performing certified DBE Subcontractors hired as a condition of award (COA)

Performance Information and Training ndash Commercially useful function rules (CUF) and the lack of clear benchmark definitions for good faith effort (GFE) standards remain barriers for improving accountability within the DBE system and in turn lead to distorted DBE participation rates These items remain amorphous due to lack of training or lack of historic information Chronic uncertainty exists regarding both of these items Until WSDOT changes and improves its approach to provide transparency and certainty for both the prime bidding amp subcontracting parties true certified DBE capacity will continue to be masked and the resultant higher subcontracting costs associated with a distorted marketplace will continue to be hidden

WAPA respectfully suggests that simply adding an ldquoEstimated DBE Subcontract Premiumrdquo line to the current DBE bid forms would help to establish benchmarks that could begin to be used to ldquomeans testrdquo good faith efforts If this information had been gathered over the last 20 years of the DBE program meaningful GFE standards could have been developed and could be in place today

An in-depth review of CUF standards would also provide clarity For instance it is unclear why force account items performed by certified DBEs are currently counted at only 50 of the value of the work How was this benchmark established Has it been reviewed since imposed Did it ldquosolverdquo whatever inequity WSDOT was trying to address Better clarity may lead to more expanded opportunities for certified DBE Subcontractors

Enhanced Supportive Services and Business Development Programs ndash Unless and until stronger programs of these types are shown to be effective in boosting certified DBE business development increased DBE participation due to stronger business acumen should not be relied upon when setting the new DBE goal

Does OMWBE have a reasonable expectation that future plans for enhanced and expanded programs will be more successful than those employed in the past Assuming that certified DBE Subcontractors will be better prepared to deal with the WSDOT contracting environment than in the past should not be relied upon to boost DBE participation goals Especially troubling were the multiple references within the CHA report highlighting that DBEs believe that the staff at OMWBE lack a deep knowledge about the highway construction industry (eg Study page 129 2nd paragraph) Does OMWBE have a path forward that will address this issue and thus improve supportive services impacts

Develop a Bonding and Financing Program for SBEs ndash This is completely outside of the prime contracting

communityrsquos scope of influence WSDOT must find a way to institute changes that both protect the taxpayer and help increase certified DBE bonding capacity and access to financing ndash very large hurtles To assume that these hurtles can effectively be overcome within the 2018 ndash 2020 time frame when they have been chromic issues for the past 20 plus years of DBE program development is not rational

A helpful innovation would be for WSDOT to underwrite performance and payment bonds for certified DBE firms or to create promote a system that helps certified DBE firms obtain private bonding Bridging the gap to address capital access and performance risks (bonding) must be championed by WSDOT

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 5 of 6

Base Figure Adjustment to Address Available Subcontract Volume and DBE Prime Contracts It is a fact that mid- to large-sized MBEWBE firms that compete both as Prime Contractors and as Subcontractors are not eligible to be OMWBE certified DBEs Further the current amount of contract unbundling for greater DBE access to WSDOT prime contracting (see below) accounts for a very low dollar volume of prime contracts performed by certified DBEs Finally by specification (WSDOT standard specification 1-081) Prime Contractors are obligated to perform 30 of the total volume of the work (less specialty work) or stated another way a maximum of 70 of the dollar volume on WSDOT projects is typically available to award to subcontractors These market dynamics are NOT addressed in the Disparity Study A responsible DBE goal made absent of these facts should not be implemented A reasonable adjustment to the proposed 19 DBE goal is presented below

bull The percent of WSDOT prime contracts awarded to certified DBE firms is likely less than 5 by total WSDOT

contract volume Assuming this approximation is valid (likely very conservative) then the amount of WSDOT contract work available to certified DBE firms via subcontracting should be adjusted to account for the factors outlined above The Base Figure (19) should be adjusted to recognize that a 70 maximum subcontractor participation is available (in the numerator) and to account for the assumed 5 certified DBE prime contracts in the denominator Reasonable Base Figure Adjustment 19 (proposed) x 70 subcontracts available divide 95 of Non-Certified DBEs as Prime Contract Volume = 190 x 0737 = 140 adjusted goal This is an adjustment based on the practical dynamics of the WSDOT contracting system and it represents a more realistic look at the true subcontract volume that is available for Prime Contractors to award to certified DBE firms

Conclusions

Until the items listed above are addressed and in place it is not reasonable to believe that DBE goals can be increased by nearly 163 (from 117 to 190) When the projected robust public works contracting market is appropriately considered the true availability of certified DBE Subcontractors for WSDOT contracts will be truncated due to demand across all public works sectors With multiple strong public works programs competing for a limited population of certified DBEs the ability to meet increased WSDOT DBE goals will be severely challenged Without very clear concise and transparent good faith effort rules the ability to address DBE goals that greatly overestimate true near term certified DBE capacity will result in non-attainment bid day chaos failures to perform andor rapidly increased pricing

The clear conclusion is that at this point in time under the current circumstances without effectively instituted new programs rules procedures that could enhance the certified DBE programrsquos overall effectiveness we believe that the DBE goal should remain at or near 12 As OMWBE documents and demonstrates its future successes in improving access and eliminating capacity barriers only then should the DBE goal be re-evaluated and increased

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 6 of 6

In closing please remember that it is rare that the contracting community is asked our opinion with respect to the WSDOTrsquos DBE policies and so this letter is somewhat a vehicle to highlight collective concerns It is our belief that the majority of the Prime Contractors in Washington state support the objective of creating a level playing field for ready willing and able DBEs

If the level playing field is not yet possible in the absence of the DBE program then the key is to set realistic goals that recognize reflect and address the hard realities and market dynamics imposed by WSDOTrsquos bedrock environment of awarding contracts to the lowest cost responsible and responsive Contractor

Respectfully submitted Washington Asphalt Pavement Association

David Gent Tom Gaetz Executive Director Senior Advisor

Attachment A ndash WSDOT Central Puget Sound Public Works Contracting Projection 2018 - 2022

Con

stru

ctio

n Pr

ojec

t Sta

rts

2018

-202

2S

ound

Tra

nsit

$22

6 B

SD

OT

$08

B

Tran

sit

amp O

ther

s$1

7 B

WS

DO

T$6

7 B

Por

t of

Sea

ttle

$15

B

TOTA

L$3

33

B

Source N

ov 1

9 2

017

pres

enta

tion

to W

APA

Ann

ual M

eetin

g

Attachment A

Work (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Dave Gent - WAPA [mailtodavegentasphaltwacom] Sent Thursday December 7 2017 144 PMTo Bayne Jackie ltBayneJwsdotwagovgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hi again Jackie Irsquom fine thanks and hope you are the same Interesting The Master DBE Directory is the basis for and integral to the conclusions of the DisparityStudy Is it not then part of the information needed to fully review and comment on the DisparityStudy Was it not provided by CHA to WSDOT for review We are trying to fully understand thestudy and if this directory was part of the study why would it need to be obtained by a publicrecords disclosure It should be in the public domain and not restricted from ease of access If you are sure that a public records request is needed Irsquoll start that process but we will need tonote that point of fact when we submit our public comments If you are able to reconsider please let me know Respectfully

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Thursday December 7 2017 126 PMTo Dave Gent - WAPA ltdavegentasphaltwacomgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hello Dave I hope you are doing well

That information would likely be obtained through a public disclosure request Best Regards Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Dave Gent - WAPA [mailtodavegentasphaltwacom] Sent Thursday December 7 2017 113 PMTo Bayne Jackie ltBayneJwsdotwagovgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Jackie Can you please provide an electronic file or provide a weblink for the Master DBE Directory thatColette Holt amp Associates developed for the WSDOT Disparity Study 2017 (first referred to on Page 8of the Disparity Study) I did not see a link to this Master DBE Directory within the study Thanks

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Friday October 27 2017 1118 AMTo Kenyon Wendy ltKenyonWwsdotwagovgt Adams E W ltewadamssystemsclcomgtAdekoyaAndrew ltandrewadekoyabccomgt AlyssaBalllegwagov Anindita Mitraltamitracrea-affiliatescomgt APRISeattlehotmailcom Armstrong CharlotteltCharlieAatgwagovgt Ato Apiafi Architects PLLC ltatoaatoapiaficomgt benzfanwaorgBerntsen Teresa (OMWBE) ltTeresaBomwbewagovgt Billingsley Andrealtbillinawsdotwagovgt Bramlet Erica ltEricaBramletlegwagovgt Brooks Julius

ltBrooksJwsdotwagovgt Brown Jason ltjbrownldccorpcomgt bwallacenwlaborersorgCamden Allison ltCamdenAwsdotwagovgt carlllivingstongmailcom Cerda OscarltCerdaOwsdotwagovgt Christopher Chris ltChristCwsdotwagovgt ckerneycaawagovdanplatinumbusinessgroupcom davegentasphaltwacom David BalltDavidsignsnowmillcreekcomgt Davis Khalia ltDavisKhwsdotwagovgt Davis RaShelle (GOVltrashelledavisgovwagovgt Dayton Jo ltDaytonJwsdotwagovgt ddhondtagcwacomDebbieDriverlegwagov Dennis ltdennisahlkiewitcomgt dmcleodnwlaborersorgdrart6651gmailcom Duncan Enid lthigradeincgmailcomgt EltonltEltonwashingtonstatetruckingcomgt eprincecaawagov flemosldccorpcomfmartineznwmtnmsdcorg geoffshookatkncom glovelady ltgloveladyexcelglovescomgtGrabow Katie ltkgrabowsystemsclcomgt Guilfucci Jackie ltJackieGuilfucciskanskacomgt HealyLinda ltHealyLwsdotwagovgt Higginbotham Breanne ltHigginBwsdotwagovgt HirscheyClaudia ltclaudiahirscheycomcastnetgt Holt Colette ltcoletteholtmwbelawcomgt Huff JohnltHuffJwsdotwagovgt Iniguezchawagov JacksonMaynardlegwagov Jimmy Matta(jmattaalcantarassoccom) ltjmattaalcantarassoccomgt kellywickergovwagov Key EarlltKeyEwsdotwagovgt Kirk Jon ltjkirkwhhnfscomgt Kris Purrier ltkpurrierhwageocomgtleewabuildingtradesorg lesliejonessoundtransitorg Liz Evans ltlevansagcwacomgt LopezErin lterinlopezdeswagovgt Martha Cerna ltMarthaPSLCCORGgt Martin-Arnold EdwinaltMartinEwsdotwagovgt Mary Lerdahl ltmarydbeelectricinccomgt McCarty Hannahlthannahmccartylegwagovgt Melissa L Boyles ltmelissaboylesmwbelawcomgt Metcalf KeithltMetcalKwsdotwagovgt michaelicapaawagov Michelle ltMichelleTTCC26netgt MillarRoger ltMillarRwsdotwagovgt Nakamura Jason ltjasonnakamura1-alliancecomgtNavarroLportseattleorg olliepmt-solutionscom pastorbanksesbctacomacom PatrickHughes ltphugheshughesgroupbizgt Petersen Jodi (FHWA) ltJodiPetersendotgovgtrabbottliunaorg rcarmsteadgmailcom ricemportseattleorg Riley D ltdrileylydigcomgtSeling ltSelingjpfranciscomgt sherryharrisergosynchcom Stell MellodyltStellMwsdotwagovgt terigobintulaliptribes-nsngov timwilliamfactorycom tinaterra-tdicom tkellyldccorpcom tomgaetzmsncom vcollinsacec-waorgverlenejazzmsncom Wang Albert ltWangAatgwagovgt Waugh GregltGregWMaxKuneyComgt Yates Henry ltYatesHWSDOTWAGOVgtCc Tom Gaetz lttomgaetzmsncomgt Dave Gent - WAPA ltdavegentasphaltwacomgt VanCollins ltvcollinsacec-waorggt Daniel Seydel II ltdanplatinumbusinessgroupcomgt MaynardJackson ltJacksonMaynardlegwagovgt Carl Livingston ltcarlllivingstongmailcomgt DonMcLeod ltdmcleodnwlaborersorggt JIMMY MATTA ltjimmymattamsncomgt Prince Ed(CAAA) lteprincecaawagovgt David DHondt ltddhondtagcwacomgt Irene Reyesltgloveladyexcelsupplycompanycomgt McDaniel Craig ltMcDaniCwsdotwagovgtsherryharrisergosynchcomSubject WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Good morning On Monday October 30th WSDOT will be releasing the proposed overall Federal HighwayAdministration Disadvantaged Business Enterprise goal attached for public comment throughDecember 15 2017 This overall DBE goal is based upon the recently completely DBE ProgramDisparity Study WSDOT is proposing a 19 percent overall DBE participation goal on Federal Highway

Administration-funded projects for federal fiscal years 2018 through 2020 DBE goals fortransportation projects that receive federal funds represent a percentage of the value of work inwhich minority- and women-owned businesses should participate Once finalized and submitted toFHWA early next year the goal will be effective through Sept 30 2020

The purpose of the DBE program is to create a level playing field for firms owned and operated bydisadvantaged individuals wanting to participate in federally assisted highway transit and aviationprograms The attached overall DBE goal is for FHWA funded projects WSDOT will be updating theFTA and FAA overall DBE goals in the near future

If you have any questions please contact Earl Key Director of the Office of Equal Opportunity at3607057091 or KeyEwsdotwagov Thank you Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

  • Proof-Of-Publicationpdf
    • Mediapdf
      • AGC
      • Daily Journal
      • Daily Medium
      • DBEGood
      • OMWBE
      • Seattle Medium
      • Tabor 100
      • The Chronicle
      • Tukwila
        • King County
          • Public-Comments-20180111pdf
            • 19 DBE Requirement(1)
            • AGC Comments on Proposed 10 Goad
            • Backstrom Curb amp Sidewalk
            • comments on WSDOT proposed DBE goal
            • Cowlitz County Public Works
            • DBE Contracting goals
            • DBE Goal
            • DBE Program Disparity Study
            • Disparity Study Comments from City of Spokane
            • FW_ WSDOT News - WSDOT seeks comments on propos
            • Proposed DBE Goals
            • RE_ DBE Contracting Goal Comments
            • Re_ DBE Goal Comments
            • Re_ Seydel Dan - WSDOT Disparity Study Present
            • Support for WSDOTs proposed DBE goal
            • Why we need mandatory goals
            • WSDOT DBE Goal - Comment in support
            • WSDOT Proposes DBE goal of 19
            • WSDOT propsed DBE Goals
            • WTS - Disparity Study Comment Letter

From Lei WuTo Bayne JackieSubject comments on WSDOT proposed DBE goalDate Thursday December 14 2017 94925 PM

To Whom It May Concern

Below is my comments

The WSDOT recommended DBE Goal for FHWA contracts of 190 is a small andimportant increase that can further achieve equity in WSDOTFHWA contracting I am insupport of the 19 DBE Goal

I also want to express my appreciation for the thoroughness of the WSDOT Disparity studyand how the study disclosed the disparity in WSDOT contracts that do not have a DBE orWBE goal ndash further reinforcing that all women-owned firms and minority owned firms faceequity issues

I remain concerned with the methodology required by the Code of Federal Regulations andcase law because of the dependence on the availability of firms in the calculation Anunintended consequence of removing either gender or race from the goal is that many of thesefirms would go out of business the availability decreases and the formula then results in asmaller DBE goal

Thanks

Lei

Lei Wu PE AICP

Principal CSL Consulting

LeiWucsl-consultingnet

(425)562-6275

From Stephanie SimpkinsTo WSDOT Disparity StudySubject DBE Contracting goalsDate Wednesday November 29 2017 20259 PM

My name is Stephanie Simpkins and I own North Star Enterprises It is a large womanowned traffic control company located in Spokane Washington My mother founded thecompany in 1984 and I have worked in this family owned business most of my life Ipurchased the business from her in 2013 and have been sole owner since then My company thrived under the Disadvantaged Business Enterprise (DBE) Programimplemented by Washington Department of Transportation and administrated by United StatesDepartment of Transportation What started as a small business with one truck and a fewemployees has grown over the years to be one of the largest traffic control companies in thestate and employee countless people every construction season It has not been an easy roadover the years being a woman in the construction industry never is and it is hard to say wherewe would be now if it werenrsquot for the assistance of the DBE program As you know in June of 2017 majority women were removed from the DBE program basedon a disparity study conducted in 2012 On March 2014 Washington Department ofTransportation requested a wavier to remove majority women from the DBE program Thishas had an immediate and drastic impact on my business and all who work for me From themoment the waiver was approved and my company could no longer be used as a condition ofaward at bid time I began losing work Most recently the 2018 North Central Region ChipSeal which we have worked on for the last 10 years This contract provides work forapproximately 40 employees for the entire construction season I have already been told byseveral contractors that with such a high UDBE goal they wont even be able to consider mefor this project This loss along with several other smaller contracts to date are painting avery dismal future for my business With all of this turmoil surrounding the future of my business I find it frustrating to say theleast that WSDOT has chopped me off at the legs by not allowing my firm to count for theCOA but can use the little participation I may still contribute to help them reach their overallstate goal How is this fair If the contractors canrsquot utilize my business than neither shouldWSDOT As far as setting future state DBE contracting goals it looks as if the bar will beraised once again all while excluding the largest subset of useable DBErdquoS To me raising theoverall state goal at this time (which is already challenging to meet) with women DBErsquosexcluded from the program seems horribly ill timed

From Karen R BannishTo Bayne JackieSubject DBE GoalDate Tuesday December 5 2017 32549 PM

Hello Jackie ndash thank you for the webinar today concerning the proposed Overall DisadvantagedBusiness Enterprise Goal for the Federal Highway Administration I understanding the DisparityStudy much better now and checked the document you mentioned on the WSDOT website Pacific County is located in the Southwest corner of the State of Washington The tip of the LongBeach Peninsula would be 2 frac12 hours from Interstate 5 Our federal work primarily includes strictlyoverlay projects with 12 or fewer items of work included in the contract When bidding a project(our contracts are usually less than $500000) we sometimes received a single bid from the process Due to our proximity and the small cost for the work it is difficult to entice DBE participation Thereare simply no items of work that can be performed Having a mandatory DBE goal placed upon theproject in a rural area simply to meet the disparity guidelines will only increase the cost of theproject We feel the goals should be set in balance with the cost of the project and the items of work and notsimply directed to meet the overall goal

Karen BannishSenior Engineering TechnicianPacific County Department of Public Works211 North Commercial StreetRaymond WA 98577(360) 875-9368

From Dawn EgbertTo Bayne JackieSubject DBE Program Disparity StudyDate Tuesday December 5 2017 23825 PM

Hi JackieThank you for the great information on the call today You talked about the small works rosterbriefly We had a conversation in our office today about small contractors who are signed up on thePort of Vancouverrsquos small works roster Our team has had opportunity to talk to some of thecompanies on our roster who are women owned or minority owned businesses but they arenrsquotsigned up as a DBE firm When asked about that theyrsquove mentioned that they donrsquot want to fill outthe additional paperwork required to obtain the certification as a DBE As for the DBE goal at 19 it doesnrsquot seem to present an issue for the majority of our projects ndashespecially those where we would apply FHWA funds if granted However if we did happen to have aproject that didnrsquot include classifications of work where DBE certified participants are availablewould there still be an exception or a good faith efforts clause Thanks again for your time Dawn EgbertProcurement Services Manager3103 NW Lower River Road Vancouver WA 98660Direct 3609921102 | Cell 360448-9867 | Main 3606933611 | Fax 360735-1565degbertportvanusacom | wwwportvanusacom | available port properties Leadership | Stewardship | Partnership

From Feist MarleneTo WSDOT Disparity StudyCc Simmons Scott M Twohig KyleSubject Disparity Study Comments from City of SpokaneDate Friday December 15 2017 52226 PMAttachments image010png

image011pngimage012png

December 15 2017 Jackie BaynePolicy amp Reporting ManagerOffice of Equal OpportunityWashington State Department of TransportationPO Box 47314Olympia WA 98504-7314 RE Proposed DBE Contracting Goal for Highway Projects Dear Ms Bayne The City of Spokane would like to provide comments related to proposed DisadvantagedBusiness Enterprise Goal for Federal Highway Administration (FHWA) contracts by theWashington State Department of Transportation (WSDOT) Office of Equal Opportunity Manyof our projects receive funding from FHWA and as such the proposed new goals areapplicable to City work The City is supportive of the programrsquos purposemdashldquoto create a level playing field for firmsowned and operated by disadvantaged individuals wanting to participate in federally assistedhighway transit or aviation programsrdquo However the City is concerned about the ability to achieve the proposed utilization rate of upto 19 percent for DBEs in Eastern Washington considering the low number of DBEs in ourregion and the record construction under way in the City and in our region WSDOTrsquos DBE Program Disparity Study notes ldquoContractors in Eastern Washington repeatedlyreported that the goals on projects in their area are too highrdquo The Inland NorthwestAssociated General Contractors group notes that only about 12 DBEs in construction fields areavailable in the greater Spokane area Meanwhile the City has performed record construction in each of the last three years withproject totals hovering around $100 million Our City work has been bolstered by anaggressive program to improve water quality in the Spokane River Our local school districtsand our neighboring jurisdictions also have aggressive construction programs right now

Additionally we expect WSDOTrsquos work in this region to accelerate as North Spokane Corridor(NSC) construction proceeds At times our area is reaching the limits overall of our contractingcommunity the City has worked to release its projects in the first quarter of the year as muchas possible to lock in contractors and receive better pricing The capacity of existing DBEs in our region simply cannot meet that current high demand Some DBE firms are tempted to agree to more work in these times but we have found that insome cases DBEs have stretched themselves too thin On two recent City projects generalcontractors were unable to meet DBE goals as a result of DBE firms that couldnrsquot fulfill theircommitments for providing personnel or equipment It also seems implausible to expect DBEs from the West Side to mobilize teams to work on Cityof Spokane projects in large numbers In fact the Disparity Studyrsquos author responded at arecent meeting on this topic that a DBE from the West Side only very rarely completes workon the East Side of the state We would also be concerned about moving the good-paying jobs that construction providesoutside of our region The Cityrsquos median household income is $44350 considerably lower than theState of Washington MHI of $64129 and the Seattle MHI of $77351 Our leaders are working tocreate good-paying jobs for our citizens not export them to an already wealthier part of the state Additionally these projects are also funded with local dollars and our citizens expect their money toput their neighbors to work With the above considered the City is seeking

middot DBE goals for the 2018-2020 compliance period for Eastern Washington that arereflective of the current availability of DBE firms in our region

middot The re-inclusion of non-minority women owned DBEs in achieving DBE goals InSpokane non-minority women owned DBEs make up the majority of the availableDBEs And current information shows that women in Spokane overall still lag behindmen in opportunities and wages The Cityrsquos own ldquoGender and Racial Equityrdquo reportfrom 2016 noted that overall working women earned 783 percent of the earnings ofworking men in 2014 down from 827 percent in 2009 We need to lift up all women

middot The development of WSDOT programs to encourage the growth of existing andnew DBEs who can be used on street and highway projects We are encouraged by theproposed mentorproteacutegeacute program to increase the number and capacity of DBEs inEastern Washington Programs that address other barriers such as assistance withcompleting documentation or access to bonding capacity also could aid growth ofDBEs

middot The ability for WSDOT to adjust goals on a project if a selected DBE is unable tocomplete its commitments on a project This would help enable our contractors totake a chance on a new or inexperienced DBE to complete work

middot Recognition of local programs that strive to increase diversity in the work force Forexample the City operates a robust apprenticeship program that requires 15 percentof the labor hours on public works jobs greater than $600000 to be performed byapprentices The apprentice programs in our region are stepping up recruitmentefforts and are specifically seeking to recruit more youth women and minorities intoapprentice slots

As we seek to achieve the goal of increasing participation in street and highway constructionby companies owned by disadvantaged individuals we must also acknowledge that businessdevelopment and growth happens over time We must lay the groundwork now to build abase of DBEs that can help us achieve higher utilization goals over time Sincerely Marlene FeistDirector of Strategic DevelopmentPublic Works amp UtilitiesCity of Spokane

Marlene Feist | City of Spokane | Public Works Director of Strategic Development5096256505 | cell 5097109214 | mfeistspokanecityorg | spokanecityorg

From Hall MattTo WSDOT Disparity StudySubject FW WSDOT News - WSDOT seeks comments on proposed DBE contracting goal for highway projectsDate Friday December 15 2017 11956 PMAttachments WSDOT proposed DBE goal through 2020pdf

From Hall Matt Sent Friday December 15 2017 117 PMTo BayneJwsdotwagovCc Keniston Rick (KenistRwsdotwagov) MolyneKwsdotwagov SusanWilsonclarkwagovSubject WSDOT News - WSDOT seeks comments on proposed DBE contracting goal for highwayprojects Hello Jackie Please see our comments attached regarding the WSDOT proposed DBE goals Thanks for the opportunity to provide comments Matt HallClark County Public Works Washington State Department of Transportation ndash NEWSHeadquarters ndash 310 Maple Park Avenue SE ndash Olympia WA 98504-7314 ndash 360 705-7000 FOR IMMEDIATE RELEASEOct 30 2017 Contact Jackie Bayne Office of Equal Opportunity 360 705-7084

WSDOT seeks comments on proposed DBEcontracting goal for highway projectsComments accepted through Dec 15OLYMPIA ndash Contractors trade and labor organizations small and disadvantaged businessesand all others who may be interested in working with the Washington State Department ofTransportation are invited to comment on the agencyrsquos proposed Disadvantaged BusinessEnterprise goal for Federal Highway Administration contractsDBE goals for transportation projects that receive federal funds represent a percentage of thevalue of work in which minority- and women-owned businesses should participate WSDOTis proposing a 19 percent overall DBE participation goal on Federal Highway Administration-funded projects for federal fiscal years 2018 through 2020Once submitted to FHWA early next year the goal will be effective through Sept 30 2020The purpose of the DBE program is to create a level playing field for firms owned andoperated by disadvantaged individuals wanting to participate in federally assisted highwaytransit and aviation programsConnecting with communitiesWSDOT will host a series of public meetings to provide opportunities for individuals tocomment in person

Spokane

2 ndash 4 pm Tuesday Nov 28WSDOT Eastern Region Headquarters2714 N Mayfair St Spokane

Vancouver

2 ndash 4 pm Wednesday Nov 29WSDOT Vancouver Headquarters11018 NE 51st Circle Vancouver

Seattle

2 ndash 4 pm Thursday Dec 7WSDOT Northwest Region Headquarters15700 Dayton Ave N Shoreline

Other ways to provide commentThose who are unable to attend one of the meetings can participate in a no-cost webinar from230 ndash 430 pm Tuesday Dec 5 Registration for the webinar is required Those interested inparticipating should email DisparityStudywsdotwagovWritten comments can also be submitted by mail or emailJackie Bayne Policy amp Reporting ManagerWashington State Department of TransportationOffice of Equal OpportunityPO Box 47314Olympia WA 98504-7314DisparityStudywsdotwagovDocuments detailing the methodology used for determining the FHWA DBE goals areavailable for review at all WSDOT region headquarters offices and at the TransportationBuilding 310 Maple Park Ave SE Olympia They are also available online atwwwwsdotwagovequalopportunityWSDOT will consider all written comments received through Friday Dec 15 2017 Hyperlinks within this release

WSDOT Region offices wwwwsdotwagovContactofficelocationhtmregion

WSDOT keeps people businesses and the economy moving by operating and improving the statestransportation systems To learn more about what were doing go to wwwwsdotwagovnews forpictures videos news and blogs Real time traffic information is available at wwwwsdotcomtraffic or bydialing 511 Americans with Disabilities Act (ADA) InformationAccommodation requests for people with disabilities can be made by contacting the WSDOTDiversityADA Affairs team at wsdotadawsdotwagov or by calling toll-free 855-362-4ADA (4232)Persons who are deaf or hard of hearing may make a request by calling the Washington State Relay at711 Title VI Statement to Public It is WSDOTrsquos policy to assure that no person shall on the grounds ofrace color national origin or sex as provided by Title VI of the Civil Rights Act of 1964 be excluded fromparticipation in be denied the benefits of or be otherwise discriminated against under any of its federallyfunded programs and activities Any person who believes his or her Title VI protection has been violatedmay file a complaint with WSDOTrsquos Office of Equal Opportunity For additional information regarding Title

VI complaint procedures andor information regarding our non-discrimination obligations please contactOEOrsquos Title VI Coordinator at 360-705-7090 To unsubscribe to WSDOT media releases please reply and type REMOVE in the subject line

This e-mail and related attachments and any response may be subject to public disclosure under state law

From Cochrane EmilieTo WSDOT Disparity StudyCc Eugenis Susan Cowlitz Co Public Works - Brad BastinSubject Proposed DBE GoalsDate Thursday December 14 2017 85006 AMAttachments image002png

DBE Goals - Commentspdf

Please see the attached letter with comments regarding the proposed DBE Goals Ahard copy will be sent out today

Thanks

Emilie CochraneCowlitz County Public Works1600 ndash 13th Avenue SKelso WA 98626360-577-3030 ext 6523

From Michelle WolcottTo Bayne JackieCc Robideau Christopher LSubject RE DBE Contracting Goal CommentsDate Tuesday November 7 2017 65448 AMAttachments image001png

Thank you JackieWhat a relief to know that we have been heard and are not the only small business facing thisstruggle Your email is comforting

Yes you can provide us with additional assistanceLet me introduce my boss and Senior Vice President of Red Plains Professional Chris Robideau

Chris will be your contact from here since I will be leaving the company November 17th As a WA DBE we are ldquoeligible for limited DBE Support Services (SS) funding when funds becomeavailablerdquo When will this happen And are we registered or on a list to receive fundingIs the WSDOT ICR Training a prerequisite for the funding Or just helpful knowledge

Thank you for your time Jackie I will follow through with the training

Michelle Wolcott EIT Quality Control Engineer

2103 NE 129th Street Suite 201 Vancouver WA 98686 Office (360) 448-7999 Fax (360) 258-0274

wwwred-plainscom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Monday November 6 2017 332 PMTo Michelle Wolcott ltMichelleWolcottred-plainscomgtSubject RE DBE Contracting Goal Comments

Hi Michelle

Thank you for your interest in doing business with WSDOT I apologize for the lack of informationyou have come up against in your attempts to attain access to WSDOT ICR program

As you may well know WSDOT has recently completed a state wide agency specific diversity studyAnecdotal comments submitted with the study concur with your experience Not only did somerespondents find it difficult to become prequalified they also commented that the required indirectrate of 110 percent is too low to be profitable These requirements are currently under advisementby WSDOT and new DBE program requirements are currently in the process of seeking public input

As you are an OMWBE certified DBE in Washington State you will be eligible for limited DBE SupportServices (SS) funding when these funds become available At that time funds may become availableto assist you in your struggle to attain ICR eligibility Here is a link to WSDOTrsquos Indirect Cost RateTraining httpswwwwsdotwagovAuditICRTraininghtm If you would like me to find additionaltraining or information please let me know

If I can provide additional assistance of information please let me know

Best Regards

Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Michelle Wolcott [mailtoMichelleWolcottred-plainscom] Sent Tuesday October 31 2017 835 AMTo WSDOT Disparity Study ltDisparityStudyWSDOTWAGOVgtSubject DBE Contracting Goal Comments

HelloI have been in contact with WSDOT for 6 months sharing my disparaging story of beinga small DBE unable to submit SOQs for projects requiring a WSDOT Audited IndirectCost Rate Approval We do not have an in-house accountant and our outsideaccountant has explained to get all the paperwork together for WSDOT would take 40hours of work $9000 annually We cannot justify this cost to submit on a project thatwe may not acquire We have been directed to seek financial assistance from WSDOT Federal SBA andWashington State Office for Women and Minority Owned Enterprises all of whichprovided negative responses

As a DBE business in 11 states we are supporting the 19 incentive for federallyfunded contracts but we are frustrated in the fact that we will not be one of the luckyfew to participateWe have been in business 20 years From our Vancouver Washington office our clientsare the Native American tribes across the country with all contracts federally funded This summer alone the WSDOT ICR Approval has squashed our ability to submit on twoprojects that we were perfectly qualified to performI have attached previous emails to show a sample of who I have been dealing with

Thank you

Michelle Wolcott EIT Quality Control Engineer

ltimage001pnggt

2103 NE 129th Street Suite 201 Vancouver WA 98686 Office (360) 448-7999 Fax (360) 258-0274 wwwred-plainscom

From Michelle Wolcott Sent Monday July 10 2017 954 AMTo Harvey Schatzie ltHarveySwsdotwagovgtSubject RE WSDOT Indirect Cost Rate Process

Good Morning Schatzie

This is Michelle Wolcott from Red We spoke Friday June 30th about the ICRprocess and you were very encouraging I relayed the information to my boss who ishere in Vancouver then he shared with the president bookkeeper and our accountantin Oklahoma We had FAR compliance with Oklahoma DOT in 2015 so we are noteligible for the Safe Harbor Program Our account said our timekeeping system doesnot breakdown the hours and pay in the format WSDOT wants to have it presented andto get the documents in order would take the CPA and an assistant $9000 in paidhours of work It turns out this would have to be annually The other option is to hirean outside CPA firm to do the audit for us at $20000 annually

Our president said in the past we received funding assistance from the Stateof Oklahoma to get our ICR approval Does WSDOT offer any financial assistance for small businesses to reach compliance We are also a DBE in WA I have requested the same information from WA PTAC at theVancouver Chamber of Commerce and from WA Office of Minority and Women OwnedBusiness Enterprises and they both said there was nothing but suggested to askWSDOTThank you for your helpMichelle Wolcott EIT

Hello Michelle sorry but I am not aware of any grants But I was looking at this andthere is a POC at the bottom you may try to discuss the audit issuesHollyHolly BoehmeBusiness Opportunity Specialist | 8(a) Business Development ProgramUS Small Business Administration bull Seattle District Office

Hello Michelle -

Thank you for your email Im not aware of any funding available for thispurpose but do agree its quite a bit for a DBE firm to have as an expense Mostof the firms I work with do a lot more work on the Oregon side so perhaps thereare programs available that I just havent heard of Im copying my colleagueHoly Boehme in our Seattle District Office to see if they are aware of any suchassistance

Holly might there be some small business incubators or other resources availablein WA to help a small firm with the expense of getting a WSDOT AuditedIndirect Cost Rate approval Please reply all with anything you may have

Thank you

Yuri Yoshida Dyson Business Opportunity SpecialistUS SMALL BUSINESS ADMINISTRATION Portland District OfficePhone 503-326-6692 Fax 202-292-3872 wwwsbagovor

From Troy HalbergTo Bayne JackieSubject Re DBE Goal CommentsDate Wednesday December 13 2017 35533 PM

JackieToday was another example of why the goals should not be raised There were 2 jobs which Iwas low on and did not get due to the high goals This is exactly what will happen when thegoals get raised The first job was the 9180 Anacortes Ferry Paving Northeast Electric $244924 and UDBE $318000 Second job was the 9172 SR 9 East Junction Job Northeast Electric $68503 and UDBE $76300

Does this seem like a good way to spend the tax payer money I do not see how we are tosurvive if the goals get to 21

Thanks

Troy HalbergOffice360-225-7004Cell360-931-3990Fax360-225-7001

On Thu Nov 30 2017 at 1131 AM Bayne Jackie ltBayneJwsdotwagovgt wrote

Good Morning Troy

Thank you for taking the time to provide us with your experiences with the DBE Program TheWashington State Department of Transportation takes the public involvement process veryseriously and your comments will be taken into consideration prior to a final decision regardingthe overall DBE program goal

If I can be of further assistance please let me know

Best Regards

Jackie Bayne

Policy and Reporting Manager

WSDOT Office of Equal Opportunity

Work (360) 705-7084

Cell (360) 338-5783

BayneJwsdotwagov

From Troy Halberg [mailtotroyhnellcnet] Sent Wednesday November 29 2017 144 PMTo WSDOT Disparity Study ltDisparityStudyWSDOTWAGOVgtSubject DBE Goal Comments

If these goals are to be set that high this would make us as a non DBE small contractor at amajor disadvantage With these high of goals this is like handing all of the DBE electricalcontractors every job These general contractors will have no option but to use thembecause of the goals This should not go into effect We have been low on several jobs in thepast and have not gotten them do to the goals being 18 When this goes on it puts all therest of us contractors at a disadvantage Please consider the smaller non DBE contractorsthat are looking to survive as well

Thanks

Troy Halberg

Office360-225-7004

Cell360-931-3990

Fax360-225-7001

From Daniel Seydel IITo Bayne JackieCc Key Earl daneiwashingtonorg Nadeem Ismail Mussie Tewelde (mteweldehydro2geotechcom)

graceflyrightaolcom Mary Wenner Watkinson LarrySubject Re Seydel Dan - WSDOT Disparity Study Presentation Public TestimonyDate Friday December 8 2017 30323 PM

Jackie

It was my hope that the comments would be put into record I was also hoping that you wouldnot have to be the one having to formulate responses for each clarification If that is the caseI know you are swamped and will then I just ask my comments be only part of the recordHowever if there is dedicated staff that is going to be compiling and responding to theclarification then the below questions would be the priorities of most interest

These were questions unrelated to the disparity study and hopefully should be doable

1) Do you have any reports on your outcomes from the past 5 years on DBE support servicesand specific key performance measures from previous years funding (ie how many firmsutilized what was the objectives were objectives met did outcomes meet total satisfaction ifnot why next steps what was the firms capacity before and after services were performed (iesales employees bonding if applicable insurance equipment line of credit if applicablenumbertype of customers how are they doing now etc))

2) What other changes or improvements other than allowing DBES to select their own serviceproviders and a staff change will be a part of this new program

3) Was consideration to provide the new mentor protege consultant rather than separating theactivities into support services andor technical assistance

Disparity study clarifications

1) Will WSDOT consider sponsoring legislation to support the policy changes and goalincreases to insure manditory goals wont be necessary

a) If not what measures will you grant primes to operate outside the box (ie entertain bestvalue over low bid modify responsiveness by subs to require adherence to meeting voluntarygoals developing standards around federally funded gccm and other low bid procurementsthat give powers to primes to meet objectives including but not limited to mentor protegerelationships joint ventures bond waiving techniques cash flow assistance material andequipment acquisition manufacturer development specifications that have only DBES orinclude equal number of DBES as non DBES as approved installers etc)

2) Will the disparity study consultant be available for implementation or information gatheringfrom other regions

5) Will WSDOT be hiring more diverse staff amp professionaltechnical service providers inother departments outside OEO to insure policies commitments and evaluations areperformed in manner that improves diversity that reflects the communities WSDOT serves bythoughtful and legal efforts increase participation thus creating successful outcomes includingpartnerships and collaborations

Thank you and Merry Christmas

Hi Dan

Thank you for providing such thoughtful public comments questions and testimony

Regarding your public testimony below - I do not believe I am not able to answer questions ifthey are public comments Please let me know what part of this email you would likeclarification on and what part you would like considered public testimony

I appreciate your thoughtful consideration of WSDOTrsquos implementation of our civil rightsprograms

Best Regards

Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

DIDaniel Seydel IIFyi Daniel J Seydel II Platinum Group LLC 2064060844 f) 2062999934wwwplatinumbusinessgroupcom Small Business is the Answer FREE TRAINING FORENTREPRENEURS amp JOB SEEKERS - Polish your skills or make your firm standout thanksto the EntrepreneurialThu 233pDI

Daniel Seydel IIThu 1272017 1123 AMInbox Sent ItemsShow all 7 recipientsTobaynejwsdotwagov ltBayneJwsdotwagovgtJackie

Per your request below are my questions and comments some of which were verbally sharedyesterday

Congratulations on receiving the blessing of additional technical assistance dollars andcompleting the DBE Disparity Study per your report

1) Do you have any reports on your outcomes from the past 5 years on DBE support servicesand specific key performance measures from previous years funding (ie how many firmsutilized what was the objectives were objectives met did outcomes meet total satisfaction ifnot why next steps what was the firms capacity before and after services were performed (ie

sales employees bonding if applicable insurance equipment line of credit if applicablenumbertype of customers how are they doing now etc))

2) What other changes or improvements other than allowing DBES to select their own serviceproviders and a staff change will be a part of this new program

3) Was consideration to provide the new mentor protege consultant rather than separating theactivities into support services andor technical assistance

Disparity study clarifications andor comments

1) Will WSDOT consider sponsoring legislation to support the policy changes and goalincreases to insure manditory goals wont be necessary

a) If not what measures will you grant primes to operate outside the box (ie entertain bestvalue over low bid modify responsiveness by subs to require adherence to meeting voluntarygoals developing standards around federally funded gccm and other low bid procurementsthat give powers to primes to meet objectives including but not limited to mentor protegerelationships joint ventures bond waiving techniques cash flow assistance material andequipment acquisition manufacturer development specifications that have only DBES orinclude equal number of DBES as non DBES as approved installers etc)

2) Will the disparity study consultant be available for implementation or information gatheringfrom other regions

3) What lessons did WSDOT learn that it did not know from the other study(s)

4) What would WSDOT do different (ie scope time line process approach etc)

5) Will WSDOT be hiring more diverse staff amp professionaltechnical service providers inother departments outside OEO to insure policies commitments and evaluations areperformed in manner that improves diversity that reflects the communities WSDOT serves bythoughtful and legal efforts increase participation thus creating successful outcomes includingpartnerships and collaborations

Daniel J Seydel IIPlatinum Group LLC 2064060844f) 2062999934wwwplatinumbusinessgroupcom

Small Business is the Answer

FREE TRAINING FOR ENTREPRENEURS amp JOB SEEKERS - Polish your skills or makeyour firm standout thanks to the Entrepreneurial Institute of Washington

httpswwwyoutubecomchannelUCKL5YeVxL29HnNxqnb6hmXA

LIKE US on FaceBook if an Active Professional Development workshop provided by EIW

Construction University helps your firm or has benefited you

httpswwwfacebookcomEIWashingtonref=hl

From Bayne Jackie ltBayneJwsdotwagovgtSent Friday December 8 2017 10139 PMTo Daniel Seydel IICc Key Earl daneiwashingtonorg Nadeem Ismail Mussie Tewelde(mteweldehydro2geotechcom) graceflyrightaolcom Mary Wenner Watkinson LarrySubject RE Seydel Dan - WSDOT Disparity Study Presentation Public Testimony Hi Dan Thank you for providing such thoughtful public comments questions and testimony Regarding your public testimony below - I do not believe I am not able to answer questions if theyare public comments Please let me know what part of this email you would like clarification on andwhat part you would like considered public testimony I appreciate your thoughtful consideration of WSDOTrsquos implementation of our civil rights programs Best Regards Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov From Daniel Seydel II [mailtodanplatinumbusinessgroupcom] Sent Thursday December 7 2017 1123 AMTo Bayne Jackie ltBayneJwsdotwagovgtCc Key Earl ltKeyEwsdotwagovgt daneiwashingtonorg Nadeem Ismailltnipaintingearthlinknetgt Mussie Tewelde (mteweldehydro2geotechcom)ltmteweldehydro2geotechcomgt graceflyrightaolcom Mary Wennerltmwenn0108yahoocomgtSubject Seydel Dan - WSDOT Disparity Study Presentation Public Testimony Jackie

Per your request below are my questions and comments some of which were verbally sharedyesterday

Congratulations on receiving the blessing of additional technical assistance dollars andcompleting the DBE Disparity Study per your report

1) Do you have any reports on your outcomes from the past 5 years on DBE support servicesand specific key performance measures from previous years funding (ie how many firmsutilized what was the objectives were objectives met did outcomes meet total satisfaction ifnot why next steps what was the firms capacity before and after services were performed (iesales employees bonding if applicable insurance equipment line of credit if applicablenumbertype of customers how are they doing now etc))

2) What other changes or improvements other than allowing DBES to select their own serviceproviders and a staff change will be a part of this new program

3) Was consideration to provide the new mentor protege consultant rather than separating theactivities into support services andor technical assistance

Disparity study clarifications andor comments

1) Will WSDOT consider sponsoring legislation to support the policy changes and goalincreases to insure manditory goals wont be necessary

a) If not what measures will you grant primes to operate outside the box (ie entertain bestvalue over low bid modify responsiveness by subs to require adherence to meeting voluntarygoals developing standards around federally funded gccm and other low bid procurementsthat give powers to primes to meet objectives including but not limited to mentor protegerelationships joint ventures bond waiving techniques cash flow assistance material andequipment acquisition manufacturer development specifications that have only DBES orinclude equal number of DBES as non DBES as approved installers etc)

2) Will the disparity study consultant be available for implementation or information gatheringfrom other regions

3) What lessons did WSDOT learn that it did not know from the other study(s)

4) What would WSDOT do different (ie scope time line process approach etc)

5) Will WSDOT be hiring more diverse staff amp professionaltechnical service providers inother departments outside OEO to insure policies commitments and evaluations areperformed in manner that improves diversity that reflects the communities WSDOT serves bythoughtful and legal efforts increase participation thus creating successful outcomes includingpartnerships and collaborations

Thank you for your hard work

Daniel J Seydel IIPlatinum Group LLC2064060844f) 2062999934wwwplatinumbusinessgroupcom

Small Business is the Answer

FREE TRAINING FOR ENTREPRENEURS amp JOB SEEKERS - Polish your skills or makeyour firm standout thanks to the Entrepreneurial Institute of Washington

httpswwwyoutubecomchannelUCKL5YeVxL29HnNxqnb6hmXA

LIKE US on FaceBook if an Active Professional Development workshop provided by EIWConstruction University helps your firm or has benefited you

httpswwwfacebookcomEIWashingtonref=hl

From Erin EhlingerTo Bayne JackieSubject Support for WSDOTs proposed DBE goalDate Wednesday December 13 2017 115417 AM

I am writing to support the WSDOT recommended DBE Goal for FHWA contracts of 190 I also want to express my appreciation for the thoroughness of the WSDOT Disparity study and howthe study disclosed the disparity in WSDOT contracts that do not have a DBE or WBE goal ndash furtherreinforcing that all women-owned firms and minority owned firms face equity issues I remain concerned with the methodology required by the Code of Federal Regulations and case lawbecause of the dependence on the availability of firms in the calculation An unintendedconsequence of removing either gender or race from the goal is that many of these firms would goout of business the availability decreases and the formula then results in a smaller DBE goal Pleaselet me know how I can help influence a change to the CFR Thank you Erin Ehlinger

Erin Ehlinger PEPresident

24036 SE 47th StSammamish WA 98029erinehlingersmartcitytrafficcom425-221-0320

From Jackie EtterTo WSDOT Disparity StudySubject Why we need mandatory goalsDate Friday December 1 2017 61859 PM

As a DBE participating in bidding process I have found that regardless of the language which claims to insurethat disadvantaged business enterprises shall not be discriminated against the only way to ensure that this does nothappen is by mandating affirmative action goals Having been overlooked time and time again because of my gender when I have submitted bids that are verycompetitive with other bidders is very frustrating I have had many instances of companies using my price to getmy non DBE competitors to lower theirs The voluntary or laudatory DBE goals do nothing to ensure a level playing fieldThe only way to ensure non-discrimination is through mandatory goals

Jackie EtterWest Star Construction of Spokane

Sent from my iPhone

From Claudia HirscheyTo Key Earl Bayne JackieSubject WSDOT DBE Goal - Comment in supportDate Tuesday December 12 2017 61937 PM

Dear Earl and Jackie The WSDOT recommended DBE Goal for FHWA contracts of 190 is a small and important increasethat can further achieve equity in WSDOTFHWA contracting I am in support of the 19 DBE Goal I also want to express my appreciation for the thoroughness of the WSDOT Disparity study and howthe study disclosed the disparity in WSDOT contracts that do not have a DBE or WBE goal ndash furtherreinforcing that all women-owned firms and minority owned firms face equity issues I remain concerned with the methodology required by the Code of Federal Regulations and case lawbecause of the dependence on the availability of firms in the calculation An unintendedconsequence of removing either gender or race from the goal is that many of these firms would goout of business the availability decreases and the formula then results in a smaller DBE goal Sincerely Claudia S Hirschey PETransportation Consulting Servicesclaudiahirscheycomcastnethttphirscheytcscom2068564988 Mobile

From Nate ThomasTo WSDOT Disparity StudySubject WSDOT Proposes DBE goal of 19Date Thursday December 7 2017 42720 PM

The WSDOT should look into similar ways the Federal Gov has handled the equal opportunity forthose that fall under the DBE status and set aside specific projects for the DBErsquos and moreimportantly UDBErsquos so these companies have better chance of landing contracts Maybe a lot 10 ofthe DBE goal to set aside for only DBEs and other 9 goal met as it is done currently with COA onlarger contracts Nate ThomasSenior EstimatorD 5095688085 | C 5099941156331 North Fancher Road | Spokane WA | 99212

The information contained in this email including any attachments is confidential and may beprivileged It is intended only for the person or entity to which it is addressed and no waiver isintended by sending this email If the reader is not the intended recipient you are herebynotified that any review retransmission dissemination or other use of or taking any action inreliance upon this information is strictly prohibited If you have received this email in errorkindly notify the sender by reply email and delete the original message from any computerThank You

From Brian FujiiTo WSDOT Disparity StudySubject WSDOT propsed DBE GoalsDate Thursday December 7 2017 110638 AM

Good morning Jackie

I wanted to comment on WSDOTs proposed DBE goal to 19 I believe WSDOTs plan toincrease the overall DBE goal to 19 will provide greater opportunities for DBE contractorsin different disciplines to participate in federally funded contracts

Without the new DBE requirement and with Proposition 200 there are limited opportunitiesfor DBE contractors in disciplines different than the typical trucking flagging and rebar Inaddition there are no incentives for general contractors to go out beyond the usual truckingflagging and rebar DBE subcontractors

Increasing the DBE goals will provide opportunities for different DBE contractors in differentdisciplines to participate in WSDOT federally funded projects

Thank you for your time

RespectfullyBrian FujiiPresident Subsurface ConstructionP 2063836478F 2069604639MDBE 4M0024998

From Forman StephanieTo Bayne JackieCc Millar Roger christinenhanmailhousegov Claudia Hirschey Sarah Corbin Jiang Yingle

efaulknerenviroissuescom Diana Giraldo Kelly CheesemanSubject WTS - Disparity Study Comment LetterDate Friday December 15 2017 71020 PMAttachments 2017_Dec 15_WTSCommentLetter_WSDOT DBE Goalpdf

Dear Ms Bayne Please find our attached letter which summarizes the WTS Puget Sound Chapterrsquos support foradvancement of women in transportation and our comment letter regarding the recent DisparityStudy Please feel free to contact me if you have any questions or would like to discuss Sincerely Stephanie S Forman PEWTS Puget Sound President Transportation Project Manager

929 108th Avenue NE Suite 1300Bellevue WA 98004D 4254681548 M 2062291745stephanieformanhdrinccom

December 15 2017

Jackie Bayne Policy and Reporting Manager

Office of Equal Opportunity

Washington State Department of Transportation

PO Box 47314

Olympia WA 98504-7314

Dear Ms Bayne

On behalf of the Puget Sound Chapter of Womenrsquos Transportation Seminar (WTS) we would

like to thank the Washington State Department of Transportation for presenting to our

organization the DBE Disparity Study results We very much appreciated the presentation by Earl

Key Director of WSDOTrsquos Office of Equal Opportunity Teresa Berntsen (Director Office of Minority

and Womens Business Enterprises) as well as Leslie Jones (Director Sound Transit Office of Small

Business Development and Labor Compliance)

Following a review of the WSDOT Disparity Study and as a result of consultation with WTS

International we would like to provide WSDOT with our comments for your consideration

As you know WTS is an organization focused exclusively on attracting retaining and advancing

women in transportation By the year 2018 there will be thousands of vacancies in the

transportation industry for qualified professionals and while women account for more than half of

the worldrsquos workforce they are a very small minority in transportation disciplines

We are pleased that the outcome of the 2017 Disparity Study that recognizes the on-going barriers

for DBEs including women-owned businesses in transportation The WSDOT recommended DBE

Goal of 190 is a small and important increase that can further achieve equity in WSDOTFHWA

contracting We are also pleased that the 2017 Disparity Study has documented the disparity in

WSDOT contracts that do not have a DBE or WBE goal ndash further reinforcing that all women-owned

firms and minority owned firms face equity issues We are encouraged that the WSDOT has asked

FHWA to rescind the 2016 waiver

While WTSrsquo mission is specific to the advancement of women we are a race-neutral organization To

this end we are also deeply concerned about the underutilization of minority owned firms There is

no equity or ldquofair playing fieldrdquo without equity for all gender and races We remained concerned with

the methodology required by the Code of Federal Regulations and case law because of the

dependence on the availability of firms in the calculation An unintended consequence of removing

either gender or race from the goal is that many of these firms would go out of business the

availability decreases and the formula then results in a smaller DBE goal This consequence is

contrary to our mission

We look forward to our continued participation in WSDOTrsquos DBE advisory group we are anticipating

notice that the 2016 waiver has been rescinded and how we can work together to continue

advancing minority and women-owned firms in the transportation field

Sincerely

WTS Puget Sound Chapter

Stephanie Forman

President

C Roger Millar Secretary WSDOT

C Representative Adam Smith 9th Congressional District Washington co Christine Nhan

WTS Puget Sound Chapter

PO Box 3461

Bellevue Washington 98009

From Dave Gent - WAPATo Bayne JackieCc Tom GaetzSubject WAPA Public Comments - RE WSDOT FHWA Disadvantaged Business Enterprise Proposed GoalDate Friday December 15 2017 14119 PMAttachments 12152017 DBE Proposed Goal - WAPA Public Comments Letterpdf

Good afternoon Jackie Please find attached WAPArsquos ldquofor the public recordrdquo comments with respect to WSDOTrsquos proposedDBE Goals FHWA funded work I assume that the Master DBE Directory was not sent to you this week so as a result we were notable to review the directory before the close of the public comment period That fact is noted withinour comment letter Thank you for your efforts Have a good weekend

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Friday December 8 2017 1219 PMTo Dave Gent - WAPA ltdavegentasphaltwacomgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hello Dave WSDOT did not take possession of this directory as part of our review process We will provide youwith the records without submitting a formal request However we need to get them from theconsultant first I will hopefully have them to provide next week I will keep you updated on therequest Have a nice weekend Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal Opportunity

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

December 15 2017

Jackie Bayne Policy Manager WSDOT Office of Equal Opportunity Delivered via e-mail to BayneJwsdotwagov RE Public Comment (as requested) to Proposed Overall DBE Goal for the FHWA (2018 ndash 2020) Ms Bayne Thank you for your presentation via webinar on December 5 2017 outlining WSDOTrsquos evaluation process used to determine the proposed overall DBE goal for the FHWA Thank you also for the Colette Holt amp Associates (CHA) DBE Advisory Group presentation made on September 14 2017 Both presentations helped to distill the findings of the 2017 Disparity Study produced by CHA In response to Earl Keyrsquos initial informal request to comment on the proposed overall DBE goal made during the DBE Advisory Committee teleconference held on October 12th we provided a list of reasons that we believe justify a lower DBE goal than is now being proposed Our initial response to Mr Keyrsquos request did not serve to influence WSDOT and the current proposed goal remains at 190 The arguments provided on October 12th against the significant increase in the proposed DBE goal (versus the previous goal and recent historic DBE participation) are repeated and supplemented below and will serve as the Asphalt Pavement Associationrsquos (WAPArsquos) official public comments

In concert with WSDOT and the OWMBE WAPA and the construction firms that WAPA represents have demonstrated a commitment to the principals of equal opportunity for all ldquoready willing and ablerdquo firms for the entire history that our DBE program has been in place WAPA has continuously demonstrated its commitment to the goals of the DBE program and for increasing the representation of disadvantaged groups within our industry as both workers and owners of firms Please recognize that WAPArsquos oversight and critique of the DBE program has always attempted to balance the principals of fair and open competition with the practical aspects of the low bid compressed schedule high performance standards demanded within the WSDOT marketplace Our comments below are meant to enhance WSDOTrsquos and OWMBErsquos understanding of the market and to hopefully have WSDOT fully consider all of the dynamics that are at play when proposing its Triennial DBE goal for FHWA projects Current DBE Capacity vs Historically Robust Market In advocating for a realistic and defensible DBE goal it has always been WAPArsquos position that it is paramount that the realities of the marketplace and true certified DBE subcontracting capacity should be a primary standard While a ldquostretchrdquo goal may appear to be progressive on its face it comes with consequences for all of the parties involved in the WSDOT federal aid contracting arena To balance the dynamics of the WSDOT contracting system the DBE goal should be tempered with the realities of the market and with a true measure of the underlying effectiveness of the DBE support services available to contractors

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 2 of 6 The first point of fact that has not been given any apparent consideration by WSDOT in its evaluation of the current capacity of certified DBErsquos is that there is an historically robust workload scheduled to be performed in the 2017 through 2022 time-frame particularly in the Puget Sound ldquoEverett to Olympiardquo corridor By WSDOTrsquos own estimates (see Attachment A) public works construction project starts in the 2018 to 2022 time-frame in this region will exceed $333 billion (B) counting the work projected from just five public entities WSDOT will be taking a decidedly ldquoback seatrdquo role during this period to Sound Transit which will have construction project starts of $226B vs WSDOTrsquos projected volume of $67B WSDOTrsquos summary publication titled Washington State Department of Transportations Proposed Federal Highway Administration Triennium Disadvantaged Business Enterprise Goal Federal Fiscal Years 2018-2020 states correctly that ldquoIncluded among the types of evidence that must be considered are the current capacity of DBEs to perform work on WSDOTrsquos federally-assisted contracts as measured by the volume of work DBEs have performed in recent yearshelliprdquo (Step Two Adjustment discussion) With the Sound Transit program being over 300 larger than the total WSDOT program in this region a sober assessment of true certified DBE capacity in the next three years needs to be considered by WSDOT If the huge construction boom over the next five years does not prompt a Step Two Adjustment then it becomes obvious that the realities of the market are being ignored by WSDOT for DBE goal setting Put another way if the 2018 through 2022 level of contracting activity does not warrant a goal adjustment what will DBE Access Barriers Not Yet Addressed The CHA 2017 Disparity Study points out multiple recommendations in Section VII that impact DBE participation and access to the market Assessments relating to those impacts and the state of maturity in addressing the CHA recommendations should be considered when assessing the DBE goal Many of the CHA recommendation have not been adequately addressed at this point in time Some of the prime examples are listed below Increase Certification and Expertise ndash The Disparity Study as explained to us includes all minority- (MBE)

and women-owned (WBE) firms that could be readily identified that perform work within Washington State and that perform work within the NAICS code framework CHA developed to cover WSDOT project work During the various presentations relating to the Disparity Study WSDOT representatives said that outreach to currently non-certified MBE amp WBE firms has increased and that WSDOT aspires to bolster its list of certified firms in the future but this effort is just beginning and the success of the effort needs to be means tested against the broader population of MBE amp WBE firms included in the CHA base line evaluation As the Disparity Study uses a much broader population of MBE WBE contractors to arrive at its conclusions (both non-certified firms and firms too large for certification) it follows that the calculated DBE proposed goal is overstated to include capacity that does not currently exist within WSDOTrsquos certified DBE framework Unless OMWBE is experiencing sudden and unprecedented success in recruiting new MBEWBE firms the DBE goal should be adjusted downward to recognize that the ldquoready willing and ablerdquo contractors that WSDOT has certified is only a subset of the total MBEWBE contracting population used in the Disparity Study evaluation

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 3 of 6

Until the promised WSDOT outreach registration efforts result in a substantial increase in available certified DBE firms it is premature to count the entire population of minority- and women-owned contractors as available to participate in WSDOT contracting It is unreasonable for WSDOT to project availability capacity using the entire MBEWBE population when only its currently truncated list of certified firms is acceptable to count toward the DBE goal

A corollary to the Increase Certification and Expertise discussion above is that the calculation of the Base Figure evidently includes the broadest practical population of MBE and WBE firms identifiable (without a review of the CHA Master DBE Directory which has not been supplied prior to the close of the public comment period the scope of the directory cannot be ascertained) If this directory includes a large population of MBEWBE firms that are not certified or are too large to be certified then the Base Figure calculation should be adjusted to reflect that certified DBE firms are a fraction of the total MBEWBE firms used to arrive at the 19 suggested DBE goal With respect to the CHA Master Directory it is our understanding the WSDOT was not given the directory as part of its evaluation of the Disparity Study and it follows that it did not evaluate the proposed DBE goal in the context of the CHA Master DBE Directory In our opinion an informed decision on adjusting the CHA baseline goal calculation can only be done after an extensive evaluation of the CHA Master DBE Directory If this has not been done WSDOT has not exercised due diligence in evaluating the context and underpinnings of the CHA Disparity Study and a certified DBE Triennium goal proposal to the FHWA is premature Increase Contract ldquoUnbundlingrdquo ndash If this proposed strategy (suggested by the CHA Study) is undertaken

certified DBE Subcontractors currently available will be engaged as Prime Contractors and the value of their prime contracts will bolster the overall percentage of certified DBE contracting but a systematic effort and strategy to ldquounbundlerdquo has not been articulated by WSDOT The key question of how this effort can be accomplished without increased cost to the taxpayers and increased inconvenience for the traveling public As noted in the CHA study (page 129 final paragraph) ldquoUnbundling must be conducted however within the constraints of the need to ensure efficiency and limit cost to the taxpayersrdquo As of this writing no overarching strategy for further unbundling with proper accountability has been articulated by WSDOT to the DBE Advisory Group

Review Insurance and Experience Requirements ndash Impediments to certified DBE participation due to

necessary insurance and experience standards cannot be solved by the prime contracting community Unless and until WSDOT puts together programs to address the burden of the substantial risks shouldered by Prime Contractors on WSDOT contracts barriers for streamlined utilization of certified DBE firms will continue to exist These market driven barriers will continue to dampen the availability of certified DBE Subcontractors that are able to perform within WSDOTrsquos strict criteria without unduly transferring risk to the Prime Contractor

Better Partnering to Overcome DBE Failures to Perform ndash Prime Contractors are held fully responsible to maintain the project schedule and are subject to project liquidated damages even when they may be struggling to deal with Subcontractor performance issues It is well-established that replacing a certified ldquocondition of awardrdquo (COA) DBE Subcontractor is very onerous and likely very costly to the Prime Contractor Unfortunately the imposition of strict and often counter-productive commercially useful function (CUF) rules often compound this issue as Prime Contractors cannot help COA DBE Subcontractors work through capacity expertise or time-related issues that impact timely performance

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 4 of 6

WSDOT needs to be a much better partner in the process of dealing with under-performing or non-performing certified DBE Subcontractors The current standard operational procedure places all of the exposure for non-performance onto the Prime WSDOT does not have an equitable system to account for non-performing or under-performing certified DBE Subcontractors hired as a condition of award (COA)

Performance Information and Training ndash Commercially useful function rules (CUF) and the lack of clear benchmark definitions for good faith effort (GFE) standards remain barriers for improving accountability within the DBE system and in turn lead to distorted DBE participation rates These items remain amorphous due to lack of training or lack of historic information Chronic uncertainty exists regarding both of these items Until WSDOT changes and improves its approach to provide transparency and certainty for both the prime bidding amp subcontracting parties true certified DBE capacity will continue to be masked and the resultant higher subcontracting costs associated with a distorted marketplace will continue to be hidden

WAPA respectfully suggests that simply adding an ldquoEstimated DBE Subcontract Premiumrdquo line to the current DBE bid forms would help to establish benchmarks that could begin to be used to ldquomeans testrdquo good faith efforts If this information had been gathered over the last 20 years of the DBE program meaningful GFE standards could have been developed and could be in place today

An in-depth review of CUF standards would also provide clarity For instance it is unclear why force account items performed by certified DBEs are currently counted at only 50 of the value of the work How was this benchmark established Has it been reviewed since imposed Did it ldquosolverdquo whatever inequity WSDOT was trying to address Better clarity may lead to more expanded opportunities for certified DBE Subcontractors

Enhanced Supportive Services and Business Development Programs ndash Unless and until stronger programs of these types are shown to be effective in boosting certified DBE business development increased DBE participation due to stronger business acumen should not be relied upon when setting the new DBE goal

Does OMWBE have a reasonable expectation that future plans for enhanced and expanded programs will be more successful than those employed in the past Assuming that certified DBE Subcontractors will be better prepared to deal with the WSDOT contracting environment than in the past should not be relied upon to boost DBE participation goals Especially troubling were the multiple references within the CHA report highlighting that DBEs believe that the staff at OMWBE lack a deep knowledge about the highway construction industry (eg Study page 129 2nd paragraph) Does OMWBE have a path forward that will address this issue and thus improve supportive services impacts

Develop a Bonding and Financing Program for SBEs ndash This is completely outside of the prime contracting

communityrsquos scope of influence WSDOT must find a way to institute changes that both protect the taxpayer and help increase certified DBE bonding capacity and access to financing ndash very large hurtles To assume that these hurtles can effectively be overcome within the 2018 ndash 2020 time frame when they have been chromic issues for the past 20 plus years of DBE program development is not rational

A helpful innovation would be for WSDOT to underwrite performance and payment bonds for certified DBE firms or to create promote a system that helps certified DBE firms obtain private bonding Bridging the gap to address capital access and performance risks (bonding) must be championed by WSDOT

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 5 of 6

Base Figure Adjustment to Address Available Subcontract Volume and DBE Prime Contracts It is a fact that mid- to large-sized MBEWBE firms that compete both as Prime Contractors and as Subcontractors are not eligible to be OMWBE certified DBEs Further the current amount of contract unbundling for greater DBE access to WSDOT prime contracting (see below) accounts for a very low dollar volume of prime contracts performed by certified DBEs Finally by specification (WSDOT standard specification 1-081) Prime Contractors are obligated to perform 30 of the total volume of the work (less specialty work) or stated another way a maximum of 70 of the dollar volume on WSDOT projects is typically available to award to subcontractors These market dynamics are NOT addressed in the Disparity Study A responsible DBE goal made absent of these facts should not be implemented A reasonable adjustment to the proposed 19 DBE goal is presented below

bull The percent of WSDOT prime contracts awarded to certified DBE firms is likely less than 5 by total WSDOT

contract volume Assuming this approximation is valid (likely very conservative) then the amount of WSDOT contract work available to certified DBE firms via subcontracting should be adjusted to account for the factors outlined above The Base Figure (19) should be adjusted to recognize that a 70 maximum subcontractor participation is available (in the numerator) and to account for the assumed 5 certified DBE prime contracts in the denominator Reasonable Base Figure Adjustment 19 (proposed) x 70 subcontracts available divide 95 of Non-Certified DBEs as Prime Contract Volume = 190 x 0737 = 140 adjusted goal This is an adjustment based on the practical dynamics of the WSDOT contracting system and it represents a more realistic look at the true subcontract volume that is available for Prime Contractors to award to certified DBE firms

Conclusions

Until the items listed above are addressed and in place it is not reasonable to believe that DBE goals can be increased by nearly 163 (from 117 to 190) When the projected robust public works contracting market is appropriately considered the true availability of certified DBE Subcontractors for WSDOT contracts will be truncated due to demand across all public works sectors With multiple strong public works programs competing for a limited population of certified DBEs the ability to meet increased WSDOT DBE goals will be severely challenged Without very clear concise and transparent good faith effort rules the ability to address DBE goals that greatly overestimate true near term certified DBE capacity will result in non-attainment bid day chaos failures to perform andor rapidly increased pricing

The clear conclusion is that at this point in time under the current circumstances without effectively instituted new programs rules procedures that could enhance the certified DBE programrsquos overall effectiveness we believe that the DBE goal should remain at or near 12 As OMWBE documents and demonstrates its future successes in improving access and eliminating capacity barriers only then should the DBE goal be re-evaluated and increased

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 6 of 6

In closing please remember that it is rare that the contracting community is asked our opinion with respect to the WSDOTrsquos DBE policies and so this letter is somewhat a vehicle to highlight collective concerns It is our belief that the majority of the Prime Contractors in Washington state support the objective of creating a level playing field for ready willing and able DBEs

If the level playing field is not yet possible in the absence of the DBE program then the key is to set realistic goals that recognize reflect and address the hard realities and market dynamics imposed by WSDOTrsquos bedrock environment of awarding contracts to the lowest cost responsible and responsive Contractor

Respectfully submitted Washington Asphalt Pavement Association

David Gent Tom Gaetz Executive Director Senior Advisor

Attachment A ndash WSDOT Central Puget Sound Public Works Contracting Projection 2018 - 2022

Con

stru

ctio

n Pr

ojec

t Sta

rts

2018

-202

2S

ound

Tra

nsit

$22

6 B

SD

OT

$08

B

Tran

sit

amp O

ther

s$1

7 B

WS

DO

T$6

7 B

Por

t of

Sea

ttle

$15

B

TOTA

L$3

33

B

Source N

ov 1

9 2

017

pres

enta

tion

to W

APA

Ann

ual M

eetin

g

Attachment A

Work (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Dave Gent - WAPA [mailtodavegentasphaltwacom] Sent Thursday December 7 2017 144 PMTo Bayne Jackie ltBayneJwsdotwagovgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hi again Jackie Irsquom fine thanks and hope you are the same Interesting The Master DBE Directory is the basis for and integral to the conclusions of the DisparityStudy Is it not then part of the information needed to fully review and comment on the DisparityStudy Was it not provided by CHA to WSDOT for review We are trying to fully understand thestudy and if this directory was part of the study why would it need to be obtained by a publicrecords disclosure It should be in the public domain and not restricted from ease of access If you are sure that a public records request is needed Irsquoll start that process but we will need tonote that point of fact when we submit our public comments If you are able to reconsider please let me know Respectfully

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Thursday December 7 2017 126 PMTo Dave Gent - WAPA ltdavegentasphaltwacomgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hello Dave I hope you are doing well

That information would likely be obtained through a public disclosure request Best Regards Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Dave Gent - WAPA [mailtodavegentasphaltwacom] Sent Thursday December 7 2017 113 PMTo Bayne Jackie ltBayneJwsdotwagovgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Jackie Can you please provide an electronic file or provide a weblink for the Master DBE Directory thatColette Holt amp Associates developed for the WSDOT Disparity Study 2017 (first referred to on Page 8of the Disparity Study) I did not see a link to this Master DBE Directory within the study Thanks

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Friday October 27 2017 1118 AMTo Kenyon Wendy ltKenyonWwsdotwagovgt Adams E W ltewadamssystemsclcomgtAdekoyaAndrew ltandrewadekoyabccomgt AlyssaBalllegwagov Anindita Mitraltamitracrea-affiliatescomgt APRISeattlehotmailcom Armstrong CharlotteltCharlieAatgwagovgt Ato Apiafi Architects PLLC ltatoaatoapiaficomgt benzfanwaorgBerntsen Teresa (OMWBE) ltTeresaBomwbewagovgt Billingsley Andrealtbillinawsdotwagovgt Bramlet Erica ltEricaBramletlegwagovgt Brooks Julius

ltBrooksJwsdotwagovgt Brown Jason ltjbrownldccorpcomgt bwallacenwlaborersorgCamden Allison ltCamdenAwsdotwagovgt carlllivingstongmailcom Cerda OscarltCerdaOwsdotwagovgt Christopher Chris ltChristCwsdotwagovgt ckerneycaawagovdanplatinumbusinessgroupcom davegentasphaltwacom David BalltDavidsignsnowmillcreekcomgt Davis Khalia ltDavisKhwsdotwagovgt Davis RaShelle (GOVltrashelledavisgovwagovgt Dayton Jo ltDaytonJwsdotwagovgt ddhondtagcwacomDebbieDriverlegwagov Dennis ltdennisahlkiewitcomgt dmcleodnwlaborersorgdrart6651gmailcom Duncan Enid lthigradeincgmailcomgt EltonltEltonwashingtonstatetruckingcomgt eprincecaawagov flemosldccorpcomfmartineznwmtnmsdcorg geoffshookatkncom glovelady ltgloveladyexcelglovescomgtGrabow Katie ltkgrabowsystemsclcomgt Guilfucci Jackie ltJackieGuilfucciskanskacomgt HealyLinda ltHealyLwsdotwagovgt Higginbotham Breanne ltHigginBwsdotwagovgt HirscheyClaudia ltclaudiahirscheycomcastnetgt Holt Colette ltcoletteholtmwbelawcomgt Huff JohnltHuffJwsdotwagovgt Iniguezchawagov JacksonMaynardlegwagov Jimmy Matta(jmattaalcantarassoccom) ltjmattaalcantarassoccomgt kellywickergovwagov Key EarlltKeyEwsdotwagovgt Kirk Jon ltjkirkwhhnfscomgt Kris Purrier ltkpurrierhwageocomgtleewabuildingtradesorg lesliejonessoundtransitorg Liz Evans ltlevansagcwacomgt LopezErin lterinlopezdeswagovgt Martha Cerna ltMarthaPSLCCORGgt Martin-Arnold EdwinaltMartinEwsdotwagovgt Mary Lerdahl ltmarydbeelectricinccomgt McCarty Hannahlthannahmccartylegwagovgt Melissa L Boyles ltmelissaboylesmwbelawcomgt Metcalf KeithltMetcalKwsdotwagovgt michaelicapaawagov Michelle ltMichelleTTCC26netgt MillarRoger ltMillarRwsdotwagovgt Nakamura Jason ltjasonnakamura1-alliancecomgtNavarroLportseattleorg olliepmt-solutionscom pastorbanksesbctacomacom PatrickHughes ltphugheshughesgroupbizgt Petersen Jodi (FHWA) ltJodiPetersendotgovgtrabbottliunaorg rcarmsteadgmailcom ricemportseattleorg Riley D ltdrileylydigcomgtSeling ltSelingjpfranciscomgt sherryharrisergosynchcom Stell MellodyltStellMwsdotwagovgt terigobintulaliptribes-nsngov timwilliamfactorycom tinaterra-tdicom tkellyldccorpcom tomgaetzmsncom vcollinsacec-waorgverlenejazzmsncom Wang Albert ltWangAatgwagovgt Waugh GregltGregWMaxKuneyComgt Yates Henry ltYatesHWSDOTWAGOVgtCc Tom Gaetz lttomgaetzmsncomgt Dave Gent - WAPA ltdavegentasphaltwacomgt VanCollins ltvcollinsacec-waorggt Daniel Seydel II ltdanplatinumbusinessgroupcomgt MaynardJackson ltJacksonMaynardlegwagovgt Carl Livingston ltcarlllivingstongmailcomgt DonMcLeod ltdmcleodnwlaborersorggt JIMMY MATTA ltjimmymattamsncomgt Prince Ed(CAAA) lteprincecaawagovgt David DHondt ltddhondtagcwacomgt Irene Reyesltgloveladyexcelsupplycompanycomgt McDaniel Craig ltMcDaniCwsdotwagovgtsherryharrisergosynchcomSubject WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Good morning On Monday October 30th WSDOT will be releasing the proposed overall Federal HighwayAdministration Disadvantaged Business Enterprise goal attached for public comment throughDecember 15 2017 This overall DBE goal is based upon the recently completely DBE ProgramDisparity Study WSDOT is proposing a 19 percent overall DBE participation goal on Federal Highway

Administration-funded projects for federal fiscal years 2018 through 2020 DBE goals fortransportation projects that receive federal funds represent a percentage of the value of work inwhich minority- and women-owned businesses should participate Once finalized and submitted toFHWA early next year the goal will be effective through Sept 30 2020

The purpose of the DBE program is to create a level playing field for firms owned and operated bydisadvantaged individuals wanting to participate in federally assisted highway transit and aviationprograms The attached overall DBE goal is for FHWA funded projects WSDOT will be updating theFTA and FAA overall DBE goals in the near future

If you have any questions please contact Earl Key Director of the Office of Equal Opportunity at3607057091 or KeyEwsdotwagov Thank you Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

  • Proof-Of-Publicationpdf
    • Mediapdf
      • AGC
      • Daily Journal
      • Daily Medium
      • DBEGood
      • OMWBE
      • Seattle Medium
      • Tabor 100
      • The Chronicle
      • Tukwila
        • King County
          • Public-Comments-20180111pdf
            • 19 DBE Requirement(1)
            • AGC Comments on Proposed 10 Goad
            • Backstrom Curb amp Sidewalk
            • comments on WSDOT proposed DBE goal
            • Cowlitz County Public Works
            • DBE Contracting goals
            • DBE Goal
            • DBE Program Disparity Study
            • Disparity Study Comments from City of Spokane
            • FW_ WSDOT News - WSDOT seeks comments on propos
            • Proposed DBE Goals
            • RE_ DBE Contracting Goal Comments
            • Re_ DBE Goal Comments
            • Re_ Seydel Dan - WSDOT Disparity Study Present
            • Support for WSDOTs proposed DBE goal
            • Why we need mandatory goals
            • WSDOT DBE Goal - Comment in support
            • WSDOT Proposes DBE goal of 19
            • WSDOT propsed DBE Goals
            • WTS - Disparity Study Comment Letter

From Stephanie SimpkinsTo WSDOT Disparity StudySubject DBE Contracting goalsDate Wednesday November 29 2017 20259 PM

My name is Stephanie Simpkins and I own North Star Enterprises It is a large womanowned traffic control company located in Spokane Washington My mother founded thecompany in 1984 and I have worked in this family owned business most of my life Ipurchased the business from her in 2013 and have been sole owner since then My company thrived under the Disadvantaged Business Enterprise (DBE) Programimplemented by Washington Department of Transportation and administrated by United StatesDepartment of Transportation What started as a small business with one truck and a fewemployees has grown over the years to be one of the largest traffic control companies in thestate and employee countless people every construction season It has not been an easy roadover the years being a woman in the construction industry never is and it is hard to say wherewe would be now if it werenrsquot for the assistance of the DBE program As you know in June of 2017 majority women were removed from the DBE program basedon a disparity study conducted in 2012 On March 2014 Washington Department ofTransportation requested a wavier to remove majority women from the DBE program Thishas had an immediate and drastic impact on my business and all who work for me From themoment the waiver was approved and my company could no longer be used as a condition ofaward at bid time I began losing work Most recently the 2018 North Central Region ChipSeal which we have worked on for the last 10 years This contract provides work forapproximately 40 employees for the entire construction season I have already been told byseveral contractors that with such a high UDBE goal they wont even be able to consider mefor this project This loss along with several other smaller contracts to date are painting avery dismal future for my business With all of this turmoil surrounding the future of my business I find it frustrating to say theleast that WSDOT has chopped me off at the legs by not allowing my firm to count for theCOA but can use the little participation I may still contribute to help them reach their overallstate goal How is this fair If the contractors canrsquot utilize my business than neither shouldWSDOT As far as setting future state DBE contracting goals it looks as if the bar will beraised once again all while excluding the largest subset of useable DBErdquoS To me raising theoverall state goal at this time (which is already challenging to meet) with women DBErsquosexcluded from the program seems horribly ill timed

From Karen R BannishTo Bayne JackieSubject DBE GoalDate Tuesday December 5 2017 32549 PM

Hello Jackie ndash thank you for the webinar today concerning the proposed Overall DisadvantagedBusiness Enterprise Goal for the Federal Highway Administration I understanding the DisparityStudy much better now and checked the document you mentioned on the WSDOT website Pacific County is located in the Southwest corner of the State of Washington The tip of the LongBeach Peninsula would be 2 frac12 hours from Interstate 5 Our federal work primarily includes strictlyoverlay projects with 12 or fewer items of work included in the contract When bidding a project(our contracts are usually less than $500000) we sometimes received a single bid from the process Due to our proximity and the small cost for the work it is difficult to entice DBE participation Thereare simply no items of work that can be performed Having a mandatory DBE goal placed upon theproject in a rural area simply to meet the disparity guidelines will only increase the cost of theproject We feel the goals should be set in balance with the cost of the project and the items of work and notsimply directed to meet the overall goal

Karen BannishSenior Engineering TechnicianPacific County Department of Public Works211 North Commercial StreetRaymond WA 98577(360) 875-9368

From Dawn EgbertTo Bayne JackieSubject DBE Program Disparity StudyDate Tuesday December 5 2017 23825 PM

Hi JackieThank you for the great information on the call today You talked about the small works rosterbriefly We had a conversation in our office today about small contractors who are signed up on thePort of Vancouverrsquos small works roster Our team has had opportunity to talk to some of thecompanies on our roster who are women owned or minority owned businesses but they arenrsquotsigned up as a DBE firm When asked about that theyrsquove mentioned that they donrsquot want to fill outthe additional paperwork required to obtain the certification as a DBE As for the DBE goal at 19 it doesnrsquot seem to present an issue for the majority of our projects ndashespecially those where we would apply FHWA funds if granted However if we did happen to have aproject that didnrsquot include classifications of work where DBE certified participants are availablewould there still be an exception or a good faith efforts clause Thanks again for your time Dawn EgbertProcurement Services Manager3103 NW Lower River Road Vancouver WA 98660Direct 3609921102 | Cell 360448-9867 | Main 3606933611 | Fax 360735-1565degbertportvanusacom | wwwportvanusacom | available port properties Leadership | Stewardship | Partnership

From Feist MarleneTo WSDOT Disparity StudyCc Simmons Scott M Twohig KyleSubject Disparity Study Comments from City of SpokaneDate Friday December 15 2017 52226 PMAttachments image010png

image011pngimage012png

December 15 2017 Jackie BaynePolicy amp Reporting ManagerOffice of Equal OpportunityWashington State Department of TransportationPO Box 47314Olympia WA 98504-7314 RE Proposed DBE Contracting Goal for Highway Projects Dear Ms Bayne The City of Spokane would like to provide comments related to proposed DisadvantagedBusiness Enterprise Goal for Federal Highway Administration (FHWA) contracts by theWashington State Department of Transportation (WSDOT) Office of Equal Opportunity Manyof our projects receive funding from FHWA and as such the proposed new goals areapplicable to City work The City is supportive of the programrsquos purposemdashldquoto create a level playing field for firmsowned and operated by disadvantaged individuals wanting to participate in federally assistedhighway transit or aviation programsrdquo However the City is concerned about the ability to achieve the proposed utilization rate of upto 19 percent for DBEs in Eastern Washington considering the low number of DBEs in ourregion and the record construction under way in the City and in our region WSDOTrsquos DBE Program Disparity Study notes ldquoContractors in Eastern Washington repeatedlyreported that the goals on projects in their area are too highrdquo The Inland NorthwestAssociated General Contractors group notes that only about 12 DBEs in construction fields areavailable in the greater Spokane area Meanwhile the City has performed record construction in each of the last three years withproject totals hovering around $100 million Our City work has been bolstered by anaggressive program to improve water quality in the Spokane River Our local school districtsand our neighboring jurisdictions also have aggressive construction programs right now

Additionally we expect WSDOTrsquos work in this region to accelerate as North Spokane Corridor(NSC) construction proceeds At times our area is reaching the limits overall of our contractingcommunity the City has worked to release its projects in the first quarter of the year as muchas possible to lock in contractors and receive better pricing The capacity of existing DBEs in our region simply cannot meet that current high demand Some DBE firms are tempted to agree to more work in these times but we have found that insome cases DBEs have stretched themselves too thin On two recent City projects generalcontractors were unable to meet DBE goals as a result of DBE firms that couldnrsquot fulfill theircommitments for providing personnel or equipment It also seems implausible to expect DBEs from the West Side to mobilize teams to work on Cityof Spokane projects in large numbers In fact the Disparity Studyrsquos author responded at arecent meeting on this topic that a DBE from the West Side only very rarely completes workon the East Side of the state We would also be concerned about moving the good-paying jobs that construction providesoutside of our region The Cityrsquos median household income is $44350 considerably lower than theState of Washington MHI of $64129 and the Seattle MHI of $77351 Our leaders are working tocreate good-paying jobs for our citizens not export them to an already wealthier part of the state Additionally these projects are also funded with local dollars and our citizens expect their money toput their neighbors to work With the above considered the City is seeking

middot DBE goals for the 2018-2020 compliance period for Eastern Washington that arereflective of the current availability of DBE firms in our region

middot The re-inclusion of non-minority women owned DBEs in achieving DBE goals InSpokane non-minority women owned DBEs make up the majority of the availableDBEs And current information shows that women in Spokane overall still lag behindmen in opportunities and wages The Cityrsquos own ldquoGender and Racial Equityrdquo reportfrom 2016 noted that overall working women earned 783 percent of the earnings ofworking men in 2014 down from 827 percent in 2009 We need to lift up all women

middot The development of WSDOT programs to encourage the growth of existing andnew DBEs who can be used on street and highway projects We are encouraged by theproposed mentorproteacutegeacute program to increase the number and capacity of DBEs inEastern Washington Programs that address other barriers such as assistance withcompleting documentation or access to bonding capacity also could aid growth ofDBEs

middot The ability for WSDOT to adjust goals on a project if a selected DBE is unable tocomplete its commitments on a project This would help enable our contractors totake a chance on a new or inexperienced DBE to complete work

middot Recognition of local programs that strive to increase diversity in the work force Forexample the City operates a robust apprenticeship program that requires 15 percentof the labor hours on public works jobs greater than $600000 to be performed byapprentices The apprentice programs in our region are stepping up recruitmentefforts and are specifically seeking to recruit more youth women and minorities intoapprentice slots

As we seek to achieve the goal of increasing participation in street and highway constructionby companies owned by disadvantaged individuals we must also acknowledge that businessdevelopment and growth happens over time We must lay the groundwork now to build abase of DBEs that can help us achieve higher utilization goals over time Sincerely Marlene FeistDirector of Strategic DevelopmentPublic Works amp UtilitiesCity of Spokane

Marlene Feist | City of Spokane | Public Works Director of Strategic Development5096256505 | cell 5097109214 | mfeistspokanecityorg | spokanecityorg

From Hall MattTo WSDOT Disparity StudySubject FW WSDOT News - WSDOT seeks comments on proposed DBE contracting goal for highway projectsDate Friday December 15 2017 11956 PMAttachments WSDOT proposed DBE goal through 2020pdf

From Hall Matt Sent Friday December 15 2017 117 PMTo BayneJwsdotwagovCc Keniston Rick (KenistRwsdotwagov) MolyneKwsdotwagov SusanWilsonclarkwagovSubject WSDOT News - WSDOT seeks comments on proposed DBE contracting goal for highwayprojects Hello Jackie Please see our comments attached regarding the WSDOT proposed DBE goals Thanks for the opportunity to provide comments Matt HallClark County Public Works Washington State Department of Transportation ndash NEWSHeadquarters ndash 310 Maple Park Avenue SE ndash Olympia WA 98504-7314 ndash 360 705-7000 FOR IMMEDIATE RELEASEOct 30 2017 Contact Jackie Bayne Office of Equal Opportunity 360 705-7084

WSDOT seeks comments on proposed DBEcontracting goal for highway projectsComments accepted through Dec 15OLYMPIA ndash Contractors trade and labor organizations small and disadvantaged businessesand all others who may be interested in working with the Washington State Department ofTransportation are invited to comment on the agencyrsquos proposed Disadvantaged BusinessEnterprise goal for Federal Highway Administration contractsDBE goals for transportation projects that receive federal funds represent a percentage of thevalue of work in which minority- and women-owned businesses should participate WSDOTis proposing a 19 percent overall DBE participation goal on Federal Highway Administration-funded projects for federal fiscal years 2018 through 2020Once submitted to FHWA early next year the goal will be effective through Sept 30 2020The purpose of the DBE program is to create a level playing field for firms owned andoperated by disadvantaged individuals wanting to participate in federally assisted highwaytransit and aviation programsConnecting with communitiesWSDOT will host a series of public meetings to provide opportunities for individuals tocomment in person

Spokane

2 ndash 4 pm Tuesday Nov 28WSDOT Eastern Region Headquarters2714 N Mayfair St Spokane

Vancouver

2 ndash 4 pm Wednesday Nov 29WSDOT Vancouver Headquarters11018 NE 51st Circle Vancouver

Seattle

2 ndash 4 pm Thursday Dec 7WSDOT Northwest Region Headquarters15700 Dayton Ave N Shoreline

Other ways to provide commentThose who are unable to attend one of the meetings can participate in a no-cost webinar from230 ndash 430 pm Tuesday Dec 5 Registration for the webinar is required Those interested inparticipating should email DisparityStudywsdotwagovWritten comments can also be submitted by mail or emailJackie Bayne Policy amp Reporting ManagerWashington State Department of TransportationOffice of Equal OpportunityPO Box 47314Olympia WA 98504-7314DisparityStudywsdotwagovDocuments detailing the methodology used for determining the FHWA DBE goals areavailable for review at all WSDOT region headquarters offices and at the TransportationBuilding 310 Maple Park Ave SE Olympia They are also available online atwwwwsdotwagovequalopportunityWSDOT will consider all written comments received through Friday Dec 15 2017 Hyperlinks within this release

WSDOT Region offices wwwwsdotwagovContactofficelocationhtmregion

WSDOT keeps people businesses and the economy moving by operating and improving the statestransportation systems To learn more about what were doing go to wwwwsdotwagovnews forpictures videos news and blogs Real time traffic information is available at wwwwsdotcomtraffic or bydialing 511 Americans with Disabilities Act (ADA) InformationAccommodation requests for people with disabilities can be made by contacting the WSDOTDiversityADA Affairs team at wsdotadawsdotwagov or by calling toll-free 855-362-4ADA (4232)Persons who are deaf or hard of hearing may make a request by calling the Washington State Relay at711 Title VI Statement to Public It is WSDOTrsquos policy to assure that no person shall on the grounds ofrace color national origin or sex as provided by Title VI of the Civil Rights Act of 1964 be excluded fromparticipation in be denied the benefits of or be otherwise discriminated against under any of its federallyfunded programs and activities Any person who believes his or her Title VI protection has been violatedmay file a complaint with WSDOTrsquos Office of Equal Opportunity For additional information regarding Title

VI complaint procedures andor information regarding our non-discrimination obligations please contactOEOrsquos Title VI Coordinator at 360-705-7090 To unsubscribe to WSDOT media releases please reply and type REMOVE in the subject line

This e-mail and related attachments and any response may be subject to public disclosure under state law

From Cochrane EmilieTo WSDOT Disparity StudyCc Eugenis Susan Cowlitz Co Public Works - Brad BastinSubject Proposed DBE GoalsDate Thursday December 14 2017 85006 AMAttachments image002png

DBE Goals - Commentspdf

Please see the attached letter with comments regarding the proposed DBE Goals Ahard copy will be sent out today

Thanks

Emilie CochraneCowlitz County Public Works1600 ndash 13th Avenue SKelso WA 98626360-577-3030 ext 6523

From Michelle WolcottTo Bayne JackieCc Robideau Christopher LSubject RE DBE Contracting Goal CommentsDate Tuesday November 7 2017 65448 AMAttachments image001png

Thank you JackieWhat a relief to know that we have been heard and are not the only small business facing thisstruggle Your email is comforting

Yes you can provide us with additional assistanceLet me introduce my boss and Senior Vice President of Red Plains Professional Chris Robideau

Chris will be your contact from here since I will be leaving the company November 17th As a WA DBE we are ldquoeligible for limited DBE Support Services (SS) funding when funds becomeavailablerdquo When will this happen And are we registered or on a list to receive fundingIs the WSDOT ICR Training a prerequisite for the funding Or just helpful knowledge

Thank you for your time Jackie I will follow through with the training

Michelle Wolcott EIT Quality Control Engineer

2103 NE 129th Street Suite 201 Vancouver WA 98686 Office (360) 448-7999 Fax (360) 258-0274

wwwred-plainscom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Monday November 6 2017 332 PMTo Michelle Wolcott ltMichelleWolcottred-plainscomgtSubject RE DBE Contracting Goal Comments

Hi Michelle

Thank you for your interest in doing business with WSDOT I apologize for the lack of informationyou have come up against in your attempts to attain access to WSDOT ICR program

As you may well know WSDOT has recently completed a state wide agency specific diversity studyAnecdotal comments submitted with the study concur with your experience Not only did somerespondents find it difficult to become prequalified they also commented that the required indirectrate of 110 percent is too low to be profitable These requirements are currently under advisementby WSDOT and new DBE program requirements are currently in the process of seeking public input

As you are an OMWBE certified DBE in Washington State you will be eligible for limited DBE SupportServices (SS) funding when these funds become available At that time funds may become availableto assist you in your struggle to attain ICR eligibility Here is a link to WSDOTrsquos Indirect Cost RateTraining httpswwwwsdotwagovAuditICRTraininghtm If you would like me to find additionaltraining or information please let me know

If I can provide additional assistance of information please let me know

Best Regards

Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Michelle Wolcott [mailtoMichelleWolcottred-plainscom] Sent Tuesday October 31 2017 835 AMTo WSDOT Disparity Study ltDisparityStudyWSDOTWAGOVgtSubject DBE Contracting Goal Comments

HelloI have been in contact with WSDOT for 6 months sharing my disparaging story of beinga small DBE unable to submit SOQs for projects requiring a WSDOT Audited IndirectCost Rate Approval We do not have an in-house accountant and our outsideaccountant has explained to get all the paperwork together for WSDOT would take 40hours of work $9000 annually We cannot justify this cost to submit on a project thatwe may not acquire We have been directed to seek financial assistance from WSDOT Federal SBA andWashington State Office for Women and Minority Owned Enterprises all of whichprovided negative responses

As a DBE business in 11 states we are supporting the 19 incentive for federallyfunded contracts but we are frustrated in the fact that we will not be one of the luckyfew to participateWe have been in business 20 years From our Vancouver Washington office our clientsare the Native American tribes across the country with all contracts federally funded This summer alone the WSDOT ICR Approval has squashed our ability to submit on twoprojects that we were perfectly qualified to performI have attached previous emails to show a sample of who I have been dealing with

Thank you

Michelle Wolcott EIT Quality Control Engineer

ltimage001pnggt

2103 NE 129th Street Suite 201 Vancouver WA 98686 Office (360) 448-7999 Fax (360) 258-0274 wwwred-plainscom

From Michelle Wolcott Sent Monday July 10 2017 954 AMTo Harvey Schatzie ltHarveySwsdotwagovgtSubject RE WSDOT Indirect Cost Rate Process

Good Morning Schatzie

This is Michelle Wolcott from Red We spoke Friday June 30th about the ICRprocess and you were very encouraging I relayed the information to my boss who ishere in Vancouver then he shared with the president bookkeeper and our accountantin Oklahoma We had FAR compliance with Oklahoma DOT in 2015 so we are noteligible for the Safe Harbor Program Our account said our timekeeping system doesnot breakdown the hours and pay in the format WSDOT wants to have it presented andto get the documents in order would take the CPA and an assistant $9000 in paidhours of work It turns out this would have to be annually The other option is to hirean outside CPA firm to do the audit for us at $20000 annually

Our president said in the past we received funding assistance from the Stateof Oklahoma to get our ICR approval Does WSDOT offer any financial assistance for small businesses to reach compliance We are also a DBE in WA I have requested the same information from WA PTAC at theVancouver Chamber of Commerce and from WA Office of Minority and Women OwnedBusiness Enterprises and they both said there was nothing but suggested to askWSDOTThank you for your helpMichelle Wolcott EIT

Hello Michelle sorry but I am not aware of any grants But I was looking at this andthere is a POC at the bottom you may try to discuss the audit issuesHollyHolly BoehmeBusiness Opportunity Specialist | 8(a) Business Development ProgramUS Small Business Administration bull Seattle District Office

Hello Michelle -

Thank you for your email Im not aware of any funding available for thispurpose but do agree its quite a bit for a DBE firm to have as an expense Mostof the firms I work with do a lot more work on the Oregon side so perhaps thereare programs available that I just havent heard of Im copying my colleagueHoly Boehme in our Seattle District Office to see if they are aware of any suchassistance

Holly might there be some small business incubators or other resources availablein WA to help a small firm with the expense of getting a WSDOT AuditedIndirect Cost Rate approval Please reply all with anything you may have

Thank you

Yuri Yoshida Dyson Business Opportunity SpecialistUS SMALL BUSINESS ADMINISTRATION Portland District OfficePhone 503-326-6692 Fax 202-292-3872 wwwsbagovor

From Troy HalbergTo Bayne JackieSubject Re DBE Goal CommentsDate Wednesday December 13 2017 35533 PM

JackieToday was another example of why the goals should not be raised There were 2 jobs which Iwas low on and did not get due to the high goals This is exactly what will happen when thegoals get raised The first job was the 9180 Anacortes Ferry Paving Northeast Electric $244924 and UDBE $318000 Second job was the 9172 SR 9 East Junction Job Northeast Electric $68503 and UDBE $76300

Does this seem like a good way to spend the tax payer money I do not see how we are tosurvive if the goals get to 21

Thanks

Troy HalbergOffice360-225-7004Cell360-931-3990Fax360-225-7001

On Thu Nov 30 2017 at 1131 AM Bayne Jackie ltBayneJwsdotwagovgt wrote

Good Morning Troy

Thank you for taking the time to provide us with your experiences with the DBE Program TheWashington State Department of Transportation takes the public involvement process veryseriously and your comments will be taken into consideration prior to a final decision regardingthe overall DBE program goal

If I can be of further assistance please let me know

Best Regards

Jackie Bayne

Policy and Reporting Manager

WSDOT Office of Equal Opportunity

Work (360) 705-7084

Cell (360) 338-5783

BayneJwsdotwagov

From Troy Halberg [mailtotroyhnellcnet] Sent Wednesday November 29 2017 144 PMTo WSDOT Disparity Study ltDisparityStudyWSDOTWAGOVgtSubject DBE Goal Comments

If these goals are to be set that high this would make us as a non DBE small contractor at amajor disadvantage With these high of goals this is like handing all of the DBE electricalcontractors every job These general contractors will have no option but to use thembecause of the goals This should not go into effect We have been low on several jobs in thepast and have not gotten them do to the goals being 18 When this goes on it puts all therest of us contractors at a disadvantage Please consider the smaller non DBE contractorsthat are looking to survive as well

Thanks

Troy Halberg

Office360-225-7004

Cell360-931-3990

Fax360-225-7001

From Daniel Seydel IITo Bayne JackieCc Key Earl daneiwashingtonorg Nadeem Ismail Mussie Tewelde (mteweldehydro2geotechcom)

graceflyrightaolcom Mary Wenner Watkinson LarrySubject Re Seydel Dan - WSDOT Disparity Study Presentation Public TestimonyDate Friday December 8 2017 30323 PM

Jackie

It was my hope that the comments would be put into record I was also hoping that you wouldnot have to be the one having to formulate responses for each clarification If that is the caseI know you are swamped and will then I just ask my comments be only part of the recordHowever if there is dedicated staff that is going to be compiling and responding to theclarification then the below questions would be the priorities of most interest

These were questions unrelated to the disparity study and hopefully should be doable

1) Do you have any reports on your outcomes from the past 5 years on DBE support servicesand specific key performance measures from previous years funding (ie how many firmsutilized what was the objectives were objectives met did outcomes meet total satisfaction ifnot why next steps what was the firms capacity before and after services were performed (iesales employees bonding if applicable insurance equipment line of credit if applicablenumbertype of customers how are they doing now etc))

2) What other changes or improvements other than allowing DBES to select their own serviceproviders and a staff change will be a part of this new program

3) Was consideration to provide the new mentor protege consultant rather than separating theactivities into support services andor technical assistance

Disparity study clarifications

1) Will WSDOT consider sponsoring legislation to support the policy changes and goalincreases to insure manditory goals wont be necessary

a) If not what measures will you grant primes to operate outside the box (ie entertain bestvalue over low bid modify responsiveness by subs to require adherence to meeting voluntarygoals developing standards around federally funded gccm and other low bid procurementsthat give powers to primes to meet objectives including but not limited to mentor protegerelationships joint ventures bond waiving techniques cash flow assistance material andequipment acquisition manufacturer development specifications that have only DBES orinclude equal number of DBES as non DBES as approved installers etc)

2) Will the disparity study consultant be available for implementation or information gatheringfrom other regions

5) Will WSDOT be hiring more diverse staff amp professionaltechnical service providers inother departments outside OEO to insure policies commitments and evaluations areperformed in manner that improves diversity that reflects the communities WSDOT serves bythoughtful and legal efforts increase participation thus creating successful outcomes includingpartnerships and collaborations

Thank you and Merry Christmas

Hi Dan

Thank you for providing such thoughtful public comments questions and testimony

Regarding your public testimony below - I do not believe I am not able to answer questions ifthey are public comments Please let me know what part of this email you would likeclarification on and what part you would like considered public testimony

I appreciate your thoughtful consideration of WSDOTrsquos implementation of our civil rightsprograms

Best Regards

Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

DIDaniel Seydel IIFyi Daniel J Seydel II Platinum Group LLC 2064060844 f) 2062999934wwwplatinumbusinessgroupcom Small Business is the Answer FREE TRAINING FORENTREPRENEURS amp JOB SEEKERS - Polish your skills or make your firm standout thanksto the EntrepreneurialThu 233pDI

Daniel Seydel IIThu 1272017 1123 AMInbox Sent ItemsShow all 7 recipientsTobaynejwsdotwagov ltBayneJwsdotwagovgtJackie

Per your request below are my questions and comments some of which were verbally sharedyesterday

Congratulations on receiving the blessing of additional technical assistance dollars andcompleting the DBE Disparity Study per your report

1) Do you have any reports on your outcomes from the past 5 years on DBE support servicesand specific key performance measures from previous years funding (ie how many firmsutilized what was the objectives were objectives met did outcomes meet total satisfaction ifnot why next steps what was the firms capacity before and after services were performed (ie

sales employees bonding if applicable insurance equipment line of credit if applicablenumbertype of customers how are they doing now etc))

2) What other changes or improvements other than allowing DBES to select their own serviceproviders and a staff change will be a part of this new program

3) Was consideration to provide the new mentor protege consultant rather than separating theactivities into support services andor technical assistance

Disparity study clarifications andor comments

1) Will WSDOT consider sponsoring legislation to support the policy changes and goalincreases to insure manditory goals wont be necessary

a) If not what measures will you grant primes to operate outside the box (ie entertain bestvalue over low bid modify responsiveness by subs to require adherence to meeting voluntarygoals developing standards around federally funded gccm and other low bid procurementsthat give powers to primes to meet objectives including but not limited to mentor protegerelationships joint ventures bond waiving techniques cash flow assistance material andequipment acquisition manufacturer development specifications that have only DBES orinclude equal number of DBES as non DBES as approved installers etc)

2) Will the disparity study consultant be available for implementation or information gatheringfrom other regions

3) What lessons did WSDOT learn that it did not know from the other study(s)

4) What would WSDOT do different (ie scope time line process approach etc)

5) Will WSDOT be hiring more diverse staff amp professionaltechnical service providers inother departments outside OEO to insure policies commitments and evaluations areperformed in manner that improves diversity that reflects the communities WSDOT serves bythoughtful and legal efforts increase participation thus creating successful outcomes includingpartnerships and collaborations

Daniel J Seydel IIPlatinum Group LLC 2064060844f) 2062999934wwwplatinumbusinessgroupcom

Small Business is the Answer

FREE TRAINING FOR ENTREPRENEURS amp JOB SEEKERS - Polish your skills or makeyour firm standout thanks to the Entrepreneurial Institute of Washington

httpswwwyoutubecomchannelUCKL5YeVxL29HnNxqnb6hmXA

LIKE US on FaceBook if an Active Professional Development workshop provided by EIW

Construction University helps your firm or has benefited you

httpswwwfacebookcomEIWashingtonref=hl

From Bayne Jackie ltBayneJwsdotwagovgtSent Friday December 8 2017 10139 PMTo Daniel Seydel IICc Key Earl daneiwashingtonorg Nadeem Ismail Mussie Tewelde(mteweldehydro2geotechcom) graceflyrightaolcom Mary Wenner Watkinson LarrySubject RE Seydel Dan - WSDOT Disparity Study Presentation Public Testimony Hi Dan Thank you for providing such thoughtful public comments questions and testimony Regarding your public testimony below - I do not believe I am not able to answer questions if theyare public comments Please let me know what part of this email you would like clarification on andwhat part you would like considered public testimony I appreciate your thoughtful consideration of WSDOTrsquos implementation of our civil rights programs Best Regards Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov From Daniel Seydel II [mailtodanplatinumbusinessgroupcom] Sent Thursday December 7 2017 1123 AMTo Bayne Jackie ltBayneJwsdotwagovgtCc Key Earl ltKeyEwsdotwagovgt daneiwashingtonorg Nadeem Ismailltnipaintingearthlinknetgt Mussie Tewelde (mteweldehydro2geotechcom)ltmteweldehydro2geotechcomgt graceflyrightaolcom Mary Wennerltmwenn0108yahoocomgtSubject Seydel Dan - WSDOT Disparity Study Presentation Public Testimony Jackie

Per your request below are my questions and comments some of which were verbally sharedyesterday

Congratulations on receiving the blessing of additional technical assistance dollars andcompleting the DBE Disparity Study per your report

1) Do you have any reports on your outcomes from the past 5 years on DBE support servicesand specific key performance measures from previous years funding (ie how many firmsutilized what was the objectives were objectives met did outcomes meet total satisfaction ifnot why next steps what was the firms capacity before and after services were performed (iesales employees bonding if applicable insurance equipment line of credit if applicablenumbertype of customers how are they doing now etc))

2) What other changes or improvements other than allowing DBES to select their own serviceproviders and a staff change will be a part of this new program

3) Was consideration to provide the new mentor protege consultant rather than separating theactivities into support services andor technical assistance

Disparity study clarifications andor comments

1) Will WSDOT consider sponsoring legislation to support the policy changes and goalincreases to insure manditory goals wont be necessary

a) If not what measures will you grant primes to operate outside the box (ie entertain bestvalue over low bid modify responsiveness by subs to require adherence to meeting voluntarygoals developing standards around federally funded gccm and other low bid procurementsthat give powers to primes to meet objectives including but not limited to mentor protegerelationships joint ventures bond waiving techniques cash flow assistance material andequipment acquisition manufacturer development specifications that have only DBES orinclude equal number of DBES as non DBES as approved installers etc)

2) Will the disparity study consultant be available for implementation or information gatheringfrom other regions

3) What lessons did WSDOT learn that it did not know from the other study(s)

4) What would WSDOT do different (ie scope time line process approach etc)

5) Will WSDOT be hiring more diverse staff amp professionaltechnical service providers inother departments outside OEO to insure policies commitments and evaluations areperformed in manner that improves diversity that reflects the communities WSDOT serves bythoughtful and legal efforts increase participation thus creating successful outcomes includingpartnerships and collaborations

Thank you for your hard work

Daniel J Seydel IIPlatinum Group LLC2064060844f) 2062999934wwwplatinumbusinessgroupcom

Small Business is the Answer

FREE TRAINING FOR ENTREPRENEURS amp JOB SEEKERS - Polish your skills or makeyour firm standout thanks to the Entrepreneurial Institute of Washington

httpswwwyoutubecomchannelUCKL5YeVxL29HnNxqnb6hmXA

LIKE US on FaceBook if an Active Professional Development workshop provided by EIWConstruction University helps your firm or has benefited you

httpswwwfacebookcomEIWashingtonref=hl

From Erin EhlingerTo Bayne JackieSubject Support for WSDOTs proposed DBE goalDate Wednesday December 13 2017 115417 AM

I am writing to support the WSDOT recommended DBE Goal for FHWA contracts of 190 I also want to express my appreciation for the thoroughness of the WSDOT Disparity study and howthe study disclosed the disparity in WSDOT contracts that do not have a DBE or WBE goal ndash furtherreinforcing that all women-owned firms and minority owned firms face equity issues I remain concerned with the methodology required by the Code of Federal Regulations and case lawbecause of the dependence on the availability of firms in the calculation An unintendedconsequence of removing either gender or race from the goal is that many of these firms would goout of business the availability decreases and the formula then results in a smaller DBE goal Pleaselet me know how I can help influence a change to the CFR Thank you Erin Ehlinger

Erin Ehlinger PEPresident

24036 SE 47th StSammamish WA 98029erinehlingersmartcitytrafficcom425-221-0320

From Jackie EtterTo WSDOT Disparity StudySubject Why we need mandatory goalsDate Friday December 1 2017 61859 PM

As a DBE participating in bidding process I have found that regardless of the language which claims to insurethat disadvantaged business enterprises shall not be discriminated against the only way to ensure that this does nothappen is by mandating affirmative action goals Having been overlooked time and time again because of my gender when I have submitted bids that are verycompetitive with other bidders is very frustrating I have had many instances of companies using my price to getmy non DBE competitors to lower theirs The voluntary or laudatory DBE goals do nothing to ensure a level playing fieldThe only way to ensure non-discrimination is through mandatory goals

Jackie EtterWest Star Construction of Spokane

Sent from my iPhone

From Claudia HirscheyTo Key Earl Bayne JackieSubject WSDOT DBE Goal - Comment in supportDate Tuesday December 12 2017 61937 PM

Dear Earl and Jackie The WSDOT recommended DBE Goal for FHWA contracts of 190 is a small and important increasethat can further achieve equity in WSDOTFHWA contracting I am in support of the 19 DBE Goal I also want to express my appreciation for the thoroughness of the WSDOT Disparity study and howthe study disclosed the disparity in WSDOT contracts that do not have a DBE or WBE goal ndash furtherreinforcing that all women-owned firms and minority owned firms face equity issues I remain concerned with the methodology required by the Code of Federal Regulations and case lawbecause of the dependence on the availability of firms in the calculation An unintendedconsequence of removing either gender or race from the goal is that many of these firms would goout of business the availability decreases and the formula then results in a smaller DBE goal Sincerely Claudia S Hirschey PETransportation Consulting Servicesclaudiahirscheycomcastnethttphirscheytcscom2068564988 Mobile

From Nate ThomasTo WSDOT Disparity StudySubject WSDOT Proposes DBE goal of 19Date Thursday December 7 2017 42720 PM

The WSDOT should look into similar ways the Federal Gov has handled the equal opportunity forthose that fall under the DBE status and set aside specific projects for the DBErsquos and moreimportantly UDBErsquos so these companies have better chance of landing contracts Maybe a lot 10 ofthe DBE goal to set aside for only DBEs and other 9 goal met as it is done currently with COA onlarger contracts Nate ThomasSenior EstimatorD 5095688085 | C 5099941156331 North Fancher Road | Spokane WA | 99212

The information contained in this email including any attachments is confidential and may beprivileged It is intended only for the person or entity to which it is addressed and no waiver isintended by sending this email If the reader is not the intended recipient you are herebynotified that any review retransmission dissemination or other use of or taking any action inreliance upon this information is strictly prohibited If you have received this email in errorkindly notify the sender by reply email and delete the original message from any computerThank You

From Brian FujiiTo WSDOT Disparity StudySubject WSDOT propsed DBE GoalsDate Thursday December 7 2017 110638 AM

Good morning Jackie

I wanted to comment on WSDOTs proposed DBE goal to 19 I believe WSDOTs plan toincrease the overall DBE goal to 19 will provide greater opportunities for DBE contractorsin different disciplines to participate in federally funded contracts

Without the new DBE requirement and with Proposition 200 there are limited opportunitiesfor DBE contractors in disciplines different than the typical trucking flagging and rebar Inaddition there are no incentives for general contractors to go out beyond the usual truckingflagging and rebar DBE subcontractors

Increasing the DBE goals will provide opportunities for different DBE contractors in differentdisciplines to participate in WSDOT federally funded projects

Thank you for your time

RespectfullyBrian FujiiPresident Subsurface ConstructionP 2063836478F 2069604639MDBE 4M0024998

From Forman StephanieTo Bayne JackieCc Millar Roger christinenhanmailhousegov Claudia Hirschey Sarah Corbin Jiang Yingle

efaulknerenviroissuescom Diana Giraldo Kelly CheesemanSubject WTS - Disparity Study Comment LetterDate Friday December 15 2017 71020 PMAttachments 2017_Dec 15_WTSCommentLetter_WSDOT DBE Goalpdf

Dear Ms Bayne Please find our attached letter which summarizes the WTS Puget Sound Chapterrsquos support foradvancement of women in transportation and our comment letter regarding the recent DisparityStudy Please feel free to contact me if you have any questions or would like to discuss Sincerely Stephanie S Forman PEWTS Puget Sound President Transportation Project Manager

929 108th Avenue NE Suite 1300Bellevue WA 98004D 4254681548 M 2062291745stephanieformanhdrinccom

December 15 2017

Jackie Bayne Policy and Reporting Manager

Office of Equal Opportunity

Washington State Department of Transportation

PO Box 47314

Olympia WA 98504-7314

Dear Ms Bayne

On behalf of the Puget Sound Chapter of Womenrsquos Transportation Seminar (WTS) we would

like to thank the Washington State Department of Transportation for presenting to our

organization the DBE Disparity Study results We very much appreciated the presentation by Earl

Key Director of WSDOTrsquos Office of Equal Opportunity Teresa Berntsen (Director Office of Minority

and Womens Business Enterprises) as well as Leslie Jones (Director Sound Transit Office of Small

Business Development and Labor Compliance)

Following a review of the WSDOT Disparity Study and as a result of consultation with WTS

International we would like to provide WSDOT with our comments for your consideration

As you know WTS is an organization focused exclusively on attracting retaining and advancing

women in transportation By the year 2018 there will be thousands of vacancies in the

transportation industry for qualified professionals and while women account for more than half of

the worldrsquos workforce they are a very small minority in transportation disciplines

We are pleased that the outcome of the 2017 Disparity Study that recognizes the on-going barriers

for DBEs including women-owned businesses in transportation The WSDOT recommended DBE

Goal of 190 is a small and important increase that can further achieve equity in WSDOTFHWA

contracting We are also pleased that the 2017 Disparity Study has documented the disparity in

WSDOT contracts that do not have a DBE or WBE goal ndash further reinforcing that all women-owned

firms and minority owned firms face equity issues We are encouraged that the WSDOT has asked

FHWA to rescind the 2016 waiver

While WTSrsquo mission is specific to the advancement of women we are a race-neutral organization To

this end we are also deeply concerned about the underutilization of minority owned firms There is

no equity or ldquofair playing fieldrdquo without equity for all gender and races We remained concerned with

the methodology required by the Code of Federal Regulations and case law because of the

dependence on the availability of firms in the calculation An unintended consequence of removing

either gender or race from the goal is that many of these firms would go out of business the

availability decreases and the formula then results in a smaller DBE goal This consequence is

contrary to our mission

We look forward to our continued participation in WSDOTrsquos DBE advisory group we are anticipating

notice that the 2016 waiver has been rescinded and how we can work together to continue

advancing minority and women-owned firms in the transportation field

Sincerely

WTS Puget Sound Chapter

Stephanie Forman

President

C Roger Millar Secretary WSDOT

C Representative Adam Smith 9th Congressional District Washington co Christine Nhan

WTS Puget Sound Chapter

PO Box 3461

Bellevue Washington 98009

From Dave Gent - WAPATo Bayne JackieCc Tom GaetzSubject WAPA Public Comments - RE WSDOT FHWA Disadvantaged Business Enterprise Proposed GoalDate Friday December 15 2017 14119 PMAttachments 12152017 DBE Proposed Goal - WAPA Public Comments Letterpdf

Good afternoon Jackie Please find attached WAPArsquos ldquofor the public recordrdquo comments with respect to WSDOTrsquos proposedDBE Goals FHWA funded work I assume that the Master DBE Directory was not sent to you this week so as a result we were notable to review the directory before the close of the public comment period That fact is noted withinour comment letter Thank you for your efforts Have a good weekend

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Friday December 8 2017 1219 PMTo Dave Gent - WAPA ltdavegentasphaltwacomgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hello Dave WSDOT did not take possession of this directory as part of our review process We will provide youwith the records without submitting a formal request However we need to get them from theconsultant first I will hopefully have them to provide next week I will keep you updated on therequest Have a nice weekend Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal Opportunity

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

December 15 2017

Jackie Bayne Policy Manager WSDOT Office of Equal Opportunity Delivered via e-mail to BayneJwsdotwagov RE Public Comment (as requested) to Proposed Overall DBE Goal for the FHWA (2018 ndash 2020) Ms Bayne Thank you for your presentation via webinar on December 5 2017 outlining WSDOTrsquos evaluation process used to determine the proposed overall DBE goal for the FHWA Thank you also for the Colette Holt amp Associates (CHA) DBE Advisory Group presentation made on September 14 2017 Both presentations helped to distill the findings of the 2017 Disparity Study produced by CHA In response to Earl Keyrsquos initial informal request to comment on the proposed overall DBE goal made during the DBE Advisory Committee teleconference held on October 12th we provided a list of reasons that we believe justify a lower DBE goal than is now being proposed Our initial response to Mr Keyrsquos request did not serve to influence WSDOT and the current proposed goal remains at 190 The arguments provided on October 12th against the significant increase in the proposed DBE goal (versus the previous goal and recent historic DBE participation) are repeated and supplemented below and will serve as the Asphalt Pavement Associationrsquos (WAPArsquos) official public comments

In concert with WSDOT and the OWMBE WAPA and the construction firms that WAPA represents have demonstrated a commitment to the principals of equal opportunity for all ldquoready willing and ablerdquo firms for the entire history that our DBE program has been in place WAPA has continuously demonstrated its commitment to the goals of the DBE program and for increasing the representation of disadvantaged groups within our industry as both workers and owners of firms Please recognize that WAPArsquos oversight and critique of the DBE program has always attempted to balance the principals of fair and open competition with the practical aspects of the low bid compressed schedule high performance standards demanded within the WSDOT marketplace Our comments below are meant to enhance WSDOTrsquos and OWMBErsquos understanding of the market and to hopefully have WSDOT fully consider all of the dynamics that are at play when proposing its Triennial DBE goal for FHWA projects Current DBE Capacity vs Historically Robust Market In advocating for a realistic and defensible DBE goal it has always been WAPArsquos position that it is paramount that the realities of the marketplace and true certified DBE subcontracting capacity should be a primary standard While a ldquostretchrdquo goal may appear to be progressive on its face it comes with consequences for all of the parties involved in the WSDOT federal aid contracting arena To balance the dynamics of the WSDOT contracting system the DBE goal should be tempered with the realities of the market and with a true measure of the underlying effectiveness of the DBE support services available to contractors

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 2 of 6 The first point of fact that has not been given any apparent consideration by WSDOT in its evaluation of the current capacity of certified DBErsquos is that there is an historically robust workload scheduled to be performed in the 2017 through 2022 time-frame particularly in the Puget Sound ldquoEverett to Olympiardquo corridor By WSDOTrsquos own estimates (see Attachment A) public works construction project starts in the 2018 to 2022 time-frame in this region will exceed $333 billion (B) counting the work projected from just five public entities WSDOT will be taking a decidedly ldquoback seatrdquo role during this period to Sound Transit which will have construction project starts of $226B vs WSDOTrsquos projected volume of $67B WSDOTrsquos summary publication titled Washington State Department of Transportations Proposed Federal Highway Administration Triennium Disadvantaged Business Enterprise Goal Federal Fiscal Years 2018-2020 states correctly that ldquoIncluded among the types of evidence that must be considered are the current capacity of DBEs to perform work on WSDOTrsquos federally-assisted contracts as measured by the volume of work DBEs have performed in recent yearshelliprdquo (Step Two Adjustment discussion) With the Sound Transit program being over 300 larger than the total WSDOT program in this region a sober assessment of true certified DBE capacity in the next three years needs to be considered by WSDOT If the huge construction boom over the next five years does not prompt a Step Two Adjustment then it becomes obvious that the realities of the market are being ignored by WSDOT for DBE goal setting Put another way if the 2018 through 2022 level of contracting activity does not warrant a goal adjustment what will DBE Access Barriers Not Yet Addressed The CHA 2017 Disparity Study points out multiple recommendations in Section VII that impact DBE participation and access to the market Assessments relating to those impacts and the state of maturity in addressing the CHA recommendations should be considered when assessing the DBE goal Many of the CHA recommendation have not been adequately addressed at this point in time Some of the prime examples are listed below Increase Certification and Expertise ndash The Disparity Study as explained to us includes all minority- (MBE)

and women-owned (WBE) firms that could be readily identified that perform work within Washington State and that perform work within the NAICS code framework CHA developed to cover WSDOT project work During the various presentations relating to the Disparity Study WSDOT representatives said that outreach to currently non-certified MBE amp WBE firms has increased and that WSDOT aspires to bolster its list of certified firms in the future but this effort is just beginning and the success of the effort needs to be means tested against the broader population of MBE amp WBE firms included in the CHA base line evaluation As the Disparity Study uses a much broader population of MBE WBE contractors to arrive at its conclusions (both non-certified firms and firms too large for certification) it follows that the calculated DBE proposed goal is overstated to include capacity that does not currently exist within WSDOTrsquos certified DBE framework Unless OMWBE is experiencing sudden and unprecedented success in recruiting new MBEWBE firms the DBE goal should be adjusted downward to recognize that the ldquoready willing and ablerdquo contractors that WSDOT has certified is only a subset of the total MBEWBE contracting population used in the Disparity Study evaluation

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 3 of 6

Until the promised WSDOT outreach registration efforts result in a substantial increase in available certified DBE firms it is premature to count the entire population of minority- and women-owned contractors as available to participate in WSDOT contracting It is unreasonable for WSDOT to project availability capacity using the entire MBEWBE population when only its currently truncated list of certified firms is acceptable to count toward the DBE goal

A corollary to the Increase Certification and Expertise discussion above is that the calculation of the Base Figure evidently includes the broadest practical population of MBE and WBE firms identifiable (without a review of the CHA Master DBE Directory which has not been supplied prior to the close of the public comment period the scope of the directory cannot be ascertained) If this directory includes a large population of MBEWBE firms that are not certified or are too large to be certified then the Base Figure calculation should be adjusted to reflect that certified DBE firms are a fraction of the total MBEWBE firms used to arrive at the 19 suggested DBE goal With respect to the CHA Master Directory it is our understanding the WSDOT was not given the directory as part of its evaluation of the Disparity Study and it follows that it did not evaluate the proposed DBE goal in the context of the CHA Master DBE Directory In our opinion an informed decision on adjusting the CHA baseline goal calculation can only be done after an extensive evaluation of the CHA Master DBE Directory If this has not been done WSDOT has not exercised due diligence in evaluating the context and underpinnings of the CHA Disparity Study and a certified DBE Triennium goal proposal to the FHWA is premature Increase Contract ldquoUnbundlingrdquo ndash If this proposed strategy (suggested by the CHA Study) is undertaken

certified DBE Subcontractors currently available will be engaged as Prime Contractors and the value of their prime contracts will bolster the overall percentage of certified DBE contracting but a systematic effort and strategy to ldquounbundlerdquo has not been articulated by WSDOT The key question of how this effort can be accomplished without increased cost to the taxpayers and increased inconvenience for the traveling public As noted in the CHA study (page 129 final paragraph) ldquoUnbundling must be conducted however within the constraints of the need to ensure efficiency and limit cost to the taxpayersrdquo As of this writing no overarching strategy for further unbundling with proper accountability has been articulated by WSDOT to the DBE Advisory Group

Review Insurance and Experience Requirements ndash Impediments to certified DBE participation due to

necessary insurance and experience standards cannot be solved by the prime contracting community Unless and until WSDOT puts together programs to address the burden of the substantial risks shouldered by Prime Contractors on WSDOT contracts barriers for streamlined utilization of certified DBE firms will continue to exist These market driven barriers will continue to dampen the availability of certified DBE Subcontractors that are able to perform within WSDOTrsquos strict criteria without unduly transferring risk to the Prime Contractor

Better Partnering to Overcome DBE Failures to Perform ndash Prime Contractors are held fully responsible to maintain the project schedule and are subject to project liquidated damages even when they may be struggling to deal with Subcontractor performance issues It is well-established that replacing a certified ldquocondition of awardrdquo (COA) DBE Subcontractor is very onerous and likely very costly to the Prime Contractor Unfortunately the imposition of strict and often counter-productive commercially useful function (CUF) rules often compound this issue as Prime Contractors cannot help COA DBE Subcontractors work through capacity expertise or time-related issues that impact timely performance

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 4 of 6

WSDOT needs to be a much better partner in the process of dealing with under-performing or non-performing certified DBE Subcontractors The current standard operational procedure places all of the exposure for non-performance onto the Prime WSDOT does not have an equitable system to account for non-performing or under-performing certified DBE Subcontractors hired as a condition of award (COA)

Performance Information and Training ndash Commercially useful function rules (CUF) and the lack of clear benchmark definitions for good faith effort (GFE) standards remain barriers for improving accountability within the DBE system and in turn lead to distorted DBE participation rates These items remain amorphous due to lack of training or lack of historic information Chronic uncertainty exists regarding both of these items Until WSDOT changes and improves its approach to provide transparency and certainty for both the prime bidding amp subcontracting parties true certified DBE capacity will continue to be masked and the resultant higher subcontracting costs associated with a distorted marketplace will continue to be hidden

WAPA respectfully suggests that simply adding an ldquoEstimated DBE Subcontract Premiumrdquo line to the current DBE bid forms would help to establish benchmarks that could begin to be used to ldquomeans testrdquo good faith efforts If this information had been gathered over the last 20 years of the DBE program meaningful GFE standards could have been developed and could be in place today

An in-depth review of CUF standards would also provide clarity For instance it is unclear why force account items performed by certified DBEs are currently counted at only 50 of the value of the work How was this benchmark established Has it been reviewed since imposed Did it ldquosolverdquo whatever inequity WSDOT was trying to address Better clarity may lead to more expanded opportunities for certified DBE Subcontractors

Enhanced Supportive Services and Business Development Programs ndash Unless and until stronger programs of these types are shown to be effective in boosting certified DBE business development increased DBE participation due to stronger business acumen should not be relied upon when setting the new DBE goal

Does OMWBE have a reasonable expectation that future plans for enhanced and expanded programs will be more successful than those employed in the past Assuming that certified DBE Subcontractors will be better prepared to deal with the WSDOT contracting environment than in the past should not be relied upon to boost DBE participation goals Especially troubling were the multiple references within the CHA report highlighting that DBEs believe that the staff at OMWBE lack a deep knowledge about the highway construction industry (eg Study page 129 2nd paragraph) Does OMWBE have a path forward that will address this issue and thus improve supportive services impacts

Develop a Bonding and Financing Program for SBEs ndash This is completely outside of the prime contracting

communityrsquos scope of influence WSDOT must find a way to institute changes that both protect the taxpayer and help increase certified DBE bonding capacity and access to financing ndash very large hurtles To assume that these hurtles can effectively be overcome within the 2018 ndash 2020 time frame when they have been chromic issues for the past 20 plus years of DBE program development is not rational

A helpful innovation would be for WSDOT to underwrite performance and payment bonds for certified DBE firms or to create promote a system that helps certified DBE firms obtain private bonding Bridging the gap to address capital access and performance risks (bonding) must be championed by WSDOT

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 5 of 6

Base Figure Adjustment to Address Available Subcontract Volume and DBE Prime Contracts It is a fact that mid- to large-sized MBEWBE firms that compete both as Prime Contractors and as Subcontractors are not eligible to be OMWBE certified DBEs Further the current amount of contract unbundling for greater DBE access to WSDOT prime contracting (see below) accounts for a very low dollar volume of prime contracts performed by certified DBEs Finally by specification (WSDOT standard specification 1-081) Prime Contractors are obligated to perform 30 of the total volume of the work (less specialty work) or stated another way a maximum of 70 of the dollar volume on WSDOT projects is typically available to award to subcontractors These market dynamics are NOT addressed in the Disparity Study A responsible DBE goal made absent of these facts should not be implemented A reasonable adjustment to the proposed 19 DBE goal is presented below

bull The percent of WSDOT prime contracts awarded to certified DBE firms is likely less than 5 by total WSDOT

contract volume Assuming this approximation is valid (likely very conservative) then the amount of WSDOT contract work available to certified DBE firms via subcontracting should be adjusted to account for the factors outlined above The Base Figure (19) should be adjusted to recognize that a 70 maximum subcontractor participation is available (in the numerator) and to account for the assumed 5 certified DBE prime contracts in the denominator Reasonable Base Figure Adjustment 19 (proposed) x 70 subcontracts available divide 95 of Non-Certified DBEs as Prime Contract Volume = 190 x 0737 = 140 adjusted goal This is an adjustment based on the practical dynamics of the WSDOT contracting system and it represents a more realistic look at the true subcontract volume that is available for Prime Contractors to award to certified DBE firms

Conclusions

Until the items listed above are addressed and in place it is not reasonable to believe that DBE goals can be increased by nearly 163 (from 117 to 190) When the projected robust public works contracting market is appropriately considered the true availability of certified DBE Subcontractors for WSDOT contracts will be truncated due to demand across all public works sectors With multiple strong public works programs competing for a limited population of certified DBEs the ability to meet increased WSDOT DBE goals will be severely challenged Without very clear concise and transparent good faith effort rules the ability to address DBE goals that greatly overestimate true near term certified DBE capacity will result in non-attainment bid day chaos failures to perform andor rapidly increased pricing

The clear conclusion is that at this point in time under the current circumstances without effectively instituted new programs rules procedures that could enhance the certified DBE programrsquos overall effectiveness we believe that the DBE goal should remain at or near 12 As OMWBE documents and demonstrates its future successes in improving access and eliminating capacity barriers only then should the DBE goal be re-evaluated and increased

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 6 of 6

In closing please remember that it is rare that the contracting community is asked our opinion with respect to the WSDOTrsquos DBE policies and so this letter is somewhat a vehicle to highlight collective concerns It is our belief that the majority of the Prime Contractors in Washington state support the objective of creating a level playing field for ready willing and able DBEs

If the level playing field is not yet possible in the absence of the DBE program then the key is to set realistic goals that recognize reflect and address the hard realities and market dynamics imposed by WSDOTrsquos bedrock environment of awarding contracts to the lowest cost responsible and responsive Contractor

Respectfully submitted Washington Asphalt Pavement Association

David Gent Tom Gaetz Executive Director Senior Advisor

Attachment A ndash WSDOT Central Puget Sound Public Works Contracting Projection 2018 - 2022

Con

stru

ctio

n Pr

ojec

t Sta

rts

2018

-202

2S

ound

Tra

nsit

$22

6 B

SD

OT

$08

B

Tran

sit

amp O

ther

s$1

7 B

WS

DO

T$6

7 B

Por

t of

Sea

ttle

$15

B

TOTA

L$3

33

B

Source N

ov 1

9 2

017

pres

enta

tion

to W

APA

Ann

ual M

eetin

g

Attachment A

Work (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Dave Gent - WAPA [mailtodavegentasphaltwacom] Sent Thursday December 7 2017 144 PMTo Bayne Jackie ltBayneJwsdotwagovgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hi again Jackie Irsquom fine thanks and hope you are the same Interesting The Master DBE Directory is the basis for and integral to the conclusions of the DisparityStudy Is it not then part of the information needed to fully review and comment on the DisparityStudy Was it not provided by CHA to WSDOT for review We are trying to fully understand thestudy and if this directory was part of the study why would it need to be obtained by a publicrecords disclosure It should be in the public domain and not restricted from ease of access If you are sure that a public records request is needed Irsquoll start that process but we will need tonote that point of fact when we submit our public comments If you are able to reconsider please let me know Respectfully

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Thursday December 7 2017 126 PMTo Dave Gent - WAPA ltdavegentasphaltwacomgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hello Dave I hope you are doing well

That information would likely be obtained through a public disclosure request Best Regards Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Dave Gent - WAPA [mailtodavegentasphaltwacom] Sent Thursday December 7 2017 113 PMTo Bayne Jackie ltBayneJwsdotwagovgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Jackie Can you please provide an electronic file or provide a weblink for the Master DBE Directory thatColette Holt amp Associates developed for the WSDOT Disparity Study 2017 (first referred to on Page 8of the Disparity Study) I did not see a link to this Master DBE Directory within the study Thanks

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Friday October 27 2017 1118 AMTo Kenyon Wendy ltKenyonWwsdotwagovgt Adams E W ltewadamssystemsclcomgtAdekoyaAndrew ltandrewadekoyabccomgt AlyssaBalllegwagov Anindita Mitraltamitracrea-affiliatescomgt APRISeattlehotmailcom Armstrong CharlotteltCharlieAatgwagovgt Ato Apiafi Architects PLLC ltatoaatoapiaficomgt benzfanwaorgBerntsen Teresa (OMWBE) ltTeresaBomwbewagovgt Billingsley Andrealtbillinawsdotwagovgt Bramlet Erica ltEricaBramletlegwagovgt Brooks Julius

ltBrooksJwsdotwagovgt Brown Jason ltjbrownldccorpcomgt bwallacenwlaborersorgCamden Allison ltCamdenAwsdotwagovgt carlllivingstongmailcom Cerda OscarltCerdaOwsdotwagovgt Christopher Chris ltChristCwsdotwagovgt ckerneycaawagovdanplatinumbusinessgroupcom davegentasphaltwacom David BalltDavidsignsnowmillcreekcomgt Davis Khalia ltDavisKhwsdotwagovgt Davis RaShelle (GOVltrashelledavisgovwagovgt Dayton Jo ltDaytonJwsdotwagovgt ddhondtagcwacomDebbieDriverlegwagov Dennis ltdennisahlkiewitcomgt dmcleodnwlaborersorgdrart6651gmailcom Duncan Enid lthigradeincgmailcomgt EltonltEltonwashingtonstatetruckingcomgt eprincecaawagov flemosldccorpcomfmartineznwmtnmsdcorg geoffshookatkncom glovelady ltgloveladyexcelglovescomgtGrabow Katie ltkgrabowsystemsclcomgt Guilfucci Jackie ltJackieGuilfucciskanskacomgt HealyLinda ltHealyLwsdotwagovgt Higginbotham Breanne ltHigginBwsdotwagovgt HirscheyClaudia ltclaudiahirscheycomcastnetgt Holt Colette ltcoletteholtmwbelawcomgt Huff JohnltHuffJwsdotwagovgt Iniguezchawagov JacksonMaynardlegwagov Jimmy Matta(jmattaalcantarassoccom) ltjmattaalcantarassoccomgt kellywickergovwagov Key EarlltKeyEwsdotwagovgt Kirk Jon ltjkirkwhhnfscomgt Kris Purrier ltkpurrierhwageocomgtleewabuildingtradesorg lesliejonessoundtransitorg Liz Evans ltlevansagcwacomgt LopezErin lterinlopezdeswagovgt Martha Cerna ltMarthaPSLCCORGgt Martin-Arnold EdwinaltMartinEwsdotwagovgt Mary Lerdahl ltmarydbeelectricinccomgt McCarty Hannahlthannahmccartylegwagovgt Melissa L Boyles ltmelissaboylesmwbelawcomgt Metcalf KeithltMetcalKwsdotwagovgt michaelicapaawagov Michelle ltMichelleTTCC26netgt MillarRoger ltMillarRwsdotwagovgt Nakamura Jason ltjasonnakamura1-alliancecomgtNavarroLportseattleorg olliepmt-solutionscom pastorbanksesbctacomacom PatrickHughes ltphugheshughesgroupbizgt Petersen Jodi (FHWA) ltJodiPetersendotgovgtrabbottliunaorg rcarmsteadgmailcom ricemportseattleorg Riley D ltdrileylydigcomgtSeling ltSelingjpfranciscomgt sherryharrisergosynchcom Stell MellodyltStellMwsdotwagovgt terigobintulaliptribes-nsngov timwilliamfactorycom tinaterra-tdicom tkellyldccorpcom tomgaetzmsncom vcollinsacec-waorgverlenejazzmsncom Wang Albert ltWangAatgwagovgt Waugh GregltGregWMaxKuneyComgt Yates Henry ltYatesHWSDOTWAGOVgtCc Tom Gaetz lttomgaetzmsncomgt Dave Gent - WAPA ltdavegentasphaltwacomgt VanCollins ltvcollinsacec-waorggt Daniel Seydel II ltdanplatinumbusinessgroupcomgt MaynardJackson ltJacksonMaynardlegwagovgt Carl Livingston ltcarlllivingstongmailcomgt DonMcLeod ltdmcleodnwlaborersorggt JIMMY MATTA ltjimmymattamsncomgt Prince Ed(CAAA) lteprincecaawagovgt David DHondt ltddhondtagcwacomgt Irene Reyesltgloveladyexcelsupplycompanycomgt McDaniel Craig ltMcDaniCwsdotwagovgtsherryharrisergosynchcomSubject WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Good morning On Monday October 30th WSDOT will be releasing the proposed overall Federal HighwayAdministration Disadvantaged Business Enterprise goal attached for public comment throughDecember 15 2017 This overall DBE goal is based upon the recently completely DBE ProgramDisparity Study WSDOT is proposing a 19 percent overall DBE participation goal on Federal Highway

Administration-funded projects for federal fiscal years 2018 through 2020 DBE goals fortransportation projects that receive federal funds represent a percentage of the value of work inwhich minority- and women-owned businesses should participate Once finalized and submitted toFHWA early next year the goal will be effective through Sept 30 2020

The purpose of the DBE program is to create a level playing field for firms owned and operated bydisadvantaged individuals wanting to participate in federally assisted highway transit and aviationprograms The attached overall DBE goal is for FHWA funded projects WSDOT will be updating theFTA and FAA overall DBE goals in the near future

If you have any questions please contact Earl Key Director of the Office of Equal Opportunity at3607057091 or KeyEwsdotwagov Thank you Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

  • Proof-Of-Publicationpdf
    • Mediapdf
      • AGC
      • Daily Journal
      • Daily Medium
      • DBEGood
      • OMWBE
      • Seattle Medium
      • Tabor 100
      • The Chronicle
      • Tukwila
        • King County
          • Public-Comments-20180111pdf
            • 19 DBE Requirement(1)
            • AGC Comments on Proposed 10 Goad
            • Backstrom Curb amp Sidewalk
            • comments on WSDOT proposed DBE goal
            • Cowlitz County Public Works
            • DBE Contracting goals
            • DBE Goal
            • DBE Program Disparity Study
            • Disparity Study Comments from City of Spokane
            • FW_ WSDOT News - WSDOT seeks comments on propos
            • Proposed DBE Goals
            • RE_ DBE Contracting Goal Comments
            • Re_ DBE Goal Comments
            • Re_ Seydel Dan - WSDOT Disparity Study Present
            • Support for WSDOTs proposed DBE goal
            • Why we need mandatory goals
            • WSDOT DBE Goal - Comment in support
            • WSDOT Proposes DBE goal of 19
            • WSDOT propsed DBE Goals
            • WTS - Disparity Study Comment Letter

From Karen R BannishTo Bayne JackieSubject DBE GoalDate Tuesday December 5 2017 32549 PM

Hello Jackie ndash thank you for the webinar today concerning the proposed Overall DisadvantagedBusiness Enterprise Goal for the Federal Highway Administration I understanding the DisparityStudy much better now and checked the document you mentioned on the WSDOT website Pacific County is located in the Southwest corner of the State of Washington The tip of the LongBeach Peninsula would be 2 frac12 hours from Interstate 5 Our federal work primarily includes strictlyoverlay projects with 12 or fewer items of work included in the contract When bidding a project(our contracts are usually less than $500000) we sometimes received a single bid from the process Due to our proximity and the small cost for the work it is difficult to entice DBE participation Thereare simply no items of work that can be performed Having a mandatory DBE goal placed upon theproject in a rural area simply to meet the disparity guidelines will only increase the cost of theproject We feel the goals should be set in balance with the cost of the project and the items of work and notsimply directed to meet the overall goal

Karen BannishSenior Engineering TechnicianPacific County Department of Public Works211 North Commercial StreetRaymond WA 98577(360) 875-9368

From Dawn EgbertTo Bayne JackieSubject DBE Program Disparity StudyDate Tuesday December 5 2017 23825 PM

Hi JackieThank you for the great information on the call today You talked about the small works rosterbriefly We had a conversation in our office today about small contractors who are signed up on thePort of Vancouverrsquos small works roster Our team has had opportunity to talk to some of thecompanies on our roster who are women owned or minority owned businesses but they arenrsquotsigned up as a DBE firm When asked about that theyrsquove mentioned that they donrsquot want to fill outthe additional paperwork required to obtain the certification as a DBE As for the DBE goal at 19 it doesnrsquot seem to present an issue for the majority of our projects ndashespecially those where we would apply FHWA funds if granted However if we did happen to have aproject that didnrsquot include classifications of work where DBE certified participants are availablewould there still be an exception or a good faith efforts clause Thanks again for your time Dawn EgbertProcurement Services Manager3103 NW Lower River Road Vancouver WA 98660Direct 3609921102 | Cell 360448-9867 | Main 3606933611 | Fax 360735-1565degbertportvanusacom | wwwportvanusacom | available port properties Leadership | Stewardship | Partnership

From Feist MarleneTo WSDOT Disparity StudyCc Simmons Scott M Twohig KyleSubject Disparity Study Comments from City of SpokaneDate Friday December 15 2017 52226 PMAttachments image010png

image011pngimage012png

December 15 2017 Jackie BaynePolicy amp Reporting ManagerOffice of Equal OpportunityWashington State Department of TransportationPO Box 47314Olympia WA 98504-7314 RE Proposed DBE Contracting Goal for Highway Projects Dear Ms Bayne The City of Spokane would like to provide comments related to proposed DisadvantagedBusiness Enterprise Goal for Federal Highway Administration (FHWA) contracts by theWashington State Department of Transportation (WSDOT) Office of Equal Opportunity Manyof our projects receive funding from FHWA and as such the proposed new goals areapplicable to City work The City is supportive of the programrsquos purposemdashldquoto create a level playing field for firmsowned and operated by disadvantaged individuals wanting to participate in federally assistedhighway transit or aviation programsrdquo However the City is concerned about the ability to achieve the proposed utilization rate of upto 19 percent for DBEs in Eastern Washington considering the low number of DBEs in ourregion and the record construction under way in the City and in our region WSDOTrsquos DBE Program Disparity Study notes ldquoContractors in Eastern Washington repeatedlyreported that the goals on projects in their area are too highrdquo The Inland NorthwestAssociated General Contractors group notes that only about 12 DBEs in construction fields areavailable in the greater Spokane area Meanwhile the City has performed record construction in each of the last three years withproject totals hovering around $100 million Our City work has been bolstered by anaggressive program to improve water quality in the Spokane River Our local school districtsand our neighboring jurisdictions also have aggressive construction programs right now

Additionally we expect WSDOTrsquos work in this region to accelerate as North Spokane Corridor(NSC) construction proceeds At times our area is reaching the limits overall of our contractingcommunity the City has worked to release its projects in the first quarter of the year as muchas possible to lock in contractors and receive better pricing The capacity of existing DBEs in our region simply cannot meet that current high demand Some DBE firms are tempted to agree to more work in these times but we have found that insome cases DBEs have stretched themselves too thin On two recent City projects generalcontractors were unable to meet DBE goals as a result of DBE firms that couldnrsquot fulfill theircommitments for providing personnel or equipment It also seems implausible to expect DBEs from the West Side to mobilize teams to work on Cityof Spokane projects in large numbers In fact the Disparity Studyrsquos author responded at arecent meeting on this topic that a DBE from the West Side only very rarely completes workon the East Side of the state We would also be concerned about moving the good-paying jobs that construction providesoutside of our region The Cityrsquos median household income is $44350 considerably lower than theState of Washington MHI of $64129 and the Seattle MHI of $77351 Our leaders are working tocreate good-paying jobs for our citizens not export them to an already wealthier part of the state Additionally these projects are also funded with local dollars and our citizens expect their money toput their neighbors to work With the above considered the City is seeking

middot DBE goals for the 2018-2020 compliance period for Eastern Washington that arereflective of the current availability of DBE firms in our region

middot The re-inclusion of non-minority women owned DBEs in achieving DBE goals InSpokane non-minority women owned DBEs make up the majority of the availableDBEs And current information shows that women in Spokane overall still lag behindmen in opportunities and wages The Cityrsquos own ldquoGender and Racial Equityrdquo reportfrom 2016 noted that overall working women earned 783 percent of the earnings ofworking men in 2014 down from 827 percent in 2009 We need to lift up all women

middot The development of WSDOT programs to encourage the growth of existing andnew DBEs who can be used on street and highway projects We are encouraged by theproposed mentorproteacutegeacute program to increase the number and capacity of DBEs inEastern Washington Programs that address other barriers such as assistance withcompleting documentation or access to bonding capacity also could aid growth ofDBEs

middot The ability for WSDOT to adjust goals on a project if a selected DBE is unable tocomplete its commitments on a project This would help enable our contractors totake a chance on a new or inexperienced DBE to complete work

middot Recognition of local programs that strive to increase diversity in the work force Forexample the City operates a robust apprenticeship program that requires 15 percentof the labor hours on public works jobs greater than $600000 to be performed byapprentices The apprentice programs in our region are stepping up recruitmentefforts and are specifically seeking to recruit more youth women and minorities intoapprentice slots

As we seek to achieve the goal of increasing participation in street and highway constructionby companies owned by disadvantaged individuals we must also acknowledge that businessdevelopment and growth happens over time We must lay the groundwork now to build abase of DBEs that can help us achieve higher utilization goals over time Sincerely Marlene FeistDirector of Strategic DevelopmentPublic Works amp UtilitiesCity of Spokane

Marlene Feist | City of Spokane | Public Works Director of Strategic Development5096256505 | cell 5097109214 | mfeistspokanecityorg | spokanecityorg

From Hall MattTo WSDOT Disparity StudySubject FW WSDOT News - WSDOT seeks comments on proposed DBE contracting goal for highway projectsDate Friday December 15 2017 11956 PMAttachments WSDOT proposed DBE goal through 2020pdf

From Hall Matt Sent Friday December 15 2017 117 PMTo BayneJwsdotwagovCc Keniston Rick (KenistRwsdotwagov) MolyneKwsdotwagov SusanWilsonclarkwagovSubject WSDOT News - WSDOT seeks comments on proposed DBE contracting goal for highwayprojects Hello Jackie Please see our comments attached regarding the WSDOT proposed DBE goals Thanks for the opportunity to provide comments Matt HallClark County Public Works Washington State Department of Transportation ndash NEWSHeadquarters ndash 310 Maple Park Avenue SE ndash Olympia WA 98504-7314 ndash 360 705-7000 FOR IMMEDIATE RELEASEOct 30 2017 Contact Jackie Bayne Office of Equal Opportunity 360 705-7084

WSDOT seeks comments on proposed DBEcontracting goal for highway projectsComments accepted through Dec 15OLYMPIA ndash Contractors trade and labor organizations small and disadvantaged businessesand all others who may be interested in working with the Washington State Department ofTransportation are invited to comment on the agencyrsquos proposed Disadvantaged BusinessEnterprise goal for Federal Highway Administration contractsDBE goals for transportation projects that receive federal funds represent a percentage of thevalue of work in which minority- and women-owned businesses should participate WSDOTis proposing a 19 percent overall DBE participation goal on Federal Highway Administration-funded projects for federal fiscal years 2018 through 2020Once submitted to FHWA early next year the goal will be effective through Sept 30 2020The purpose of the DBE program is to create a level playing field for firms owned andoperated by disadvantaged individuals wanting to participate in federally assisted highwaytransit and aviation programsConnecting with communitiesWSDOT will host a series of public meetings to provide opportunities for individuals tocomment in person

Spokane

2 ndash 4 pm Tuesday Nov 28WSDOT Eastern Region Headquarters2714 N Mayfair St Spokane

Vancouver

2 ndash 4 pm Wednesday Nov 29WSDOT Vancouver Headquarters11018 NE 51st Circle Vancouver

Seattle

2 ndash 4 pm Thursday Dec 7WSDOT Northwest Region Headquarters15700 Dayton Ave N Shoreline

Other ways to provide commentThose who are unable to attend one of the meetings can participate in a no-cost webinar from230 ndash 430 pm Tuesday Dec 5 Registration for the webinar is required Those interested inparticipating should email DisparityStudywsdotwagovWritten comments can also be submitted by mail or emailJackie Bayne Policy amp Reporting ManagerWashington State Department of TransportationOffice of Equal OpportunityPO Box 47314Olympia WA 98504-7314DisparityStudywsdotwagovDocuments detailing the methodology used for determining the FHWA DBE goals areavailable for review at all WSDOT region headquarters offices and at the TransportationBuilding 310 Maple Park Ave SE Olympia They are also available online atwwwwsdotwagovequalopportunityWSDOT will consider all written comments received through Friday Dec 15 2017 Hyperlinks within this release

WSDOT Region offices wwwwsdotwagovContactofficelocationhtmregion

WSDOT keeps people businesses and the economy moving by operating and improving the statestransportation systems To learn more about what were doing go to wwwwsdotwagovnews forpictures videos news and blogs Real time traffic information is available at wwwwsdotcomtraffic or bydialing 511 Americans with Disabilities Act (ADA) InformationAccommodation requests for people with disabilities can be made by contacting the WSDOTDiversityADA Affairs team at wsdotadawsdotwagov or by calling toll-free 855-362-4ADA (4232)Persons who are deaf or hard of hearing may make a request by calling the Washington State Relay at711 Title VI Statement to Public It is WSDOTrsquos policy to assure that no person shall on the grounds ofrace color national origin or sex as provided by Title VI of the Civil Rights Act of 1964 be excluded fromparticipation in be denied the benefits of or be otherwise discriminated against under any of its federallyfunded programs and activities Any person who believes his or her Title VI protection has been violatedmay file a complaint with WSDOTrsquos Office of Equal Opportunity For additional information regarding Title

VI complaint procedures andor information regarding our non-discrimination obligations please contactOEOrsquos Title VI Coordinator at 360-705-7090 To unsubscribe to WSDOT media releases please reply and type REMOVE in the subject line

This e-mail and related attachments and any response may be subject to public disclosure under state law

From Cochrane EmilieTo WSDOT Disparity StudyCc Eugenis Susan Cowlitz Co Public Works - Brad BastinSubject Proposed DBE GoalsDate Thursday December 14 2017 85006 AMAttachments image002png

DBE Goals - Commentspdf

Please see the attached letter with comments regarding the proposed DBE Goals Ahard copy will be sent out today

Thanks

Emilie CochraneCowlitz County Public Works1600 ndash 13th Avenue SKelso WA 98626360-577-3030 ext 6523

From Michelle WolcottTo Bayne JackieCc Robideau Christopher LSubject RE DBE Contracting Goal CommentsDate Tuesday November 7 2017 65448 AMAttachments image001png

Thank you JackieWhat a relief to know that we have been heard and are not the only small business facing thisstruggle Your email is comforting

Yes you can provide us with additional assistanceLet me introduce my boss and Senior Vice President of Red Plains Professional Chris Robideau

Chris will be your contact from here since I will be leaving the company November 17th As a WA DBE we are ldquoeligible for limited DBE Support Services (SS) funding when funds becomeavailablerdquo When will this happen And are we registered or on a list to receive fundingIs the WSDOT ICR Training a prerequisite for the funding Or just helpful knowledge

Thank you for your time Jackie I will follow through with the training

Michelle Wolcott EIT Quality Control Engineer

2103 NE 129th Street Suite 201 Vancouver WA 98686 Office (360) 448-7999 Fax (360) 258-0274

wwwred-plainscom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Monday November 6 2017 332 PMTo Michelle Wolcott ltMichelleWolcottred-plainscomgtSubject RE DBE Contracting Goal Comments

Hi Michelle

Thank you for your interest in doing business with WSDOT I apologize for the lack of informationyou have come up against in your attempts to attain access to WSDOT ICR program

As you may well know WSDOT has recently completed a state wide agency specific diversity studyAnecdotal comments submitted with the study concur with your experience Not only did somerespondents find it difficult to become prequalified they also commented that the required indirectrate of 110 percent is too low to be profitable These requirements are currently under advisementby WSDOT and new DBE program requirements are currently in the process of seeking public input

As you are an OMWBE certified DBE in Washington State you will be eligible for limited DBE SupportServices (SS) funding when these funds become available At that time funds may become availableto assist you in your struggle to attain ICR eligibility Here is a link to WSDOTrsquos Indirect Cost RateTraining httpswwwwsdotwagovAuditICRTraininghtm If you would like me to find additionaltraining or information please let me know

If I can provide additional assistance of information please let me know

Best Regards

Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Michelle Wolcott [mailtoMichelleWolcottred-plainscom] Sent Tuesday October 31 2017 835 AMTo WSDOT Disparity Study ltDisparityStudyWSDOTWAGOVgtSubject DBE Contracting Goal Comments

HelloI have been in contact with WSDOT for 6 months sharing my disparaging story of beinga small DBE unable to submit SOQs for projects requiring a WSDOT Audited IndirectCost Rate Approval We do not have an in-house accountant and our outsideaccountant has explained to get all the paperwork together for WSDOT would take 40hours of work $9000 annually We cannot justify this cost to submit on a project thatwe may not acquire We have been directed to seek financial assistance from WSDOT Federal SBA andWashington State Office for Women and Minority Owned Enterprises all of whichprovided negative responses

As a DBE business in 11 states we are supporting the 19 incentive for federallyfunded contracts but we are frustrated in the fact that we will not be one of the luckyfew to participateWe have been in business 20 years From our Vancouver Washington office our clientsare the Native American tribes across the country with all contracts federally funded This summer alone the WSDOT ICR Approval has squashed our ability to submit on twoprojects that we were perfectly qualified to performI have attached previous emails to show a sample of who I have been dealing with

Thank you

Michelle Wolcott EIT Quality Control Engineer

ltimage001pnggt

2103 NE 129th Street Suite 201 Vancouver WA 98686 Office (360) 448-7999 Fax (360) 258-0274 wwwred-plainscom

From Michelle Wolcott Sent Monday July 10 2017 954 AMTo Harvey Schatzie ltHarveySwsdotwagovgtSubject RE WSDOT Indirect Cost Rate Process

Good Morning Schatzie

This is Michelle Wolcott from Red We spoke Friday June 30th about the ICRprocess and you were very encouraging I relayed the information to my boss who ishere in Vancouver then he shared with the president bookkeeper and our accountantin Oklahoma We had FAR compliance with Oklahoma DOT in 2015 so we are noteligible for the Safe Harbor Program Our account said our timekeeping system doesnot breakdown the hours and pay in the format WSDOT wants to have it presented andto get the documents in order would take the CPA and an assistant $9000 in paidhours of work It turns out this would have to be annually The other option is to hirean outside CPA firm to do the audit for us at $20000 annually

Our president said in the past we received funding assistance from the Stateof Oklahoma to get our ICR approval Does WSDOT offer any financial assistance for small businesses to reach compliance We are also a DBE in WA I have requested the same information from WA PTAC at theVancouver Chamber of Commerce and from WA Office of Minority and Women OwnedBusiness Enterprises and they both said there was nothing but suggested to askWSDOTThank you for your helpMichelle Wolcott EIT

Hello Michelle sorry but I am not aware of any grants But I was looking at this andthere is a POC at the bottom you may try to discuss the audit issuesHollyHolly BoehmeBusiness Opportunity Specialist | 8(a) Business Development ProgramUS Small Business Administration bull Seattle District Office

Hello Michelle -

Thank you for your email Im not aware of any funding available for thispurpose but do agree its quite a bit for a DBE firm to have as an expense Mostof the firms I work with do a lot more work on the Oregon side so perhaps thereare programs available that I just havent heard of Im copying my colleagueHoly Boehme in our Seattle District Office to see if they are aware of any suchassistance

Holly might there be some small business incubators or other resources availablein WA to help a small firm with the expense of getting a WSDOT AuditedIndirect Cost Rate approval Please reply all with anything you may have

Thank you

Yuri Yoshida Dyson Business Opportunity SpecialistUS SMALL BUSINESS ADMINISTRATION Portland District OfficePhone 503-326-6692 Fax 202-292-3872 wwwsbagovor

From Troy HalbergTo Bayne JackieSubject Re DBE Goal CommentsDate Wednesday December 13 2017 35533 PM

JackieToday was another example of why the goals should not be raised There were 2 jobs which Iwas low on and did not get due to the high goals This is exactly what will happen when thegoals get raised The first job was the 9180 Anacortes Ferry Paving Northeast Electric $244924 and UDBE $318000 Second job was the 9172 SR 9 East Junction Job Northeast Electric $68503 and UDBE $76300

Does this seem like a good way to spend the tax payer money I do not see how we are tosurvive if the goals get to 21

Thanks

Troy HalbergOffice360-225-7004Cell360-931-3990Fax360-225-7001

On Thu Nov 30 2017 at 1131 AM Bayne Jackie ltBayneJwsdotwagovgt wrote

Good Morning Troy

Thank you for taking the time to provide us with your experiences with the DBE Program TheWashington State Department of Transportation takes the public involvement process veryseriously and your comments will be taken into consideration prior to a final decision regardingthe overall DBE program goal

If I can be of further assistance please let me know

Best Regards

Jackie Bayne

Policy and Reporting Manager

WSDOT Office of Equal Opportunity

Work (360) 705-7084

Cell (360) 338-5783

BayneJwsdotwagov

From Troy Halberg [mailtotroyhnellcnet] Sent Wednesday November 29 2017 144 PMTo WSDOT Disparity Study ltDisparityStudyWSDOTWAGOVgtSubject DBE Goal Comments

If these goals are to be set that high this would make us as a non DBE small contractor at amajor disadvantage With these high of goals this is like handing all of the DBE electricalcontractors every job These general contractors will have no option but to use thembecause of the goals This should not go into effect We have been low on several jobs in thepast and have not gotten them do to the goals being 18 When this goes on it puts all therest of us contractors at a disadvantage Please consider the smaller non DBE contractorsthat are looking to survive as well

Thanks

Troy Halberg

Office360-225-7004

Cell360-931-3990

Fax360-225-7001

From Daniel Seydel IITo Bayne JackieCc Key Earl daneiwashingtonorg Nadeem Ismail Mussie Tewelde (mteweldehydro2geotechcom)

graceflyrightaolcom Mary Wenner Watkinson LarrySubject Re Seydel Dan - WSDOT Disparity Study Presentation Public TestimonyDate Friday December 8 2017 30323 PM

Jackie

It was my hope that the comments would be put into record I was also hoping that you wouldnot have to be the one having to formulate responses for each clarification If that is the caseI know you are swamped and will then I just ask my comments be only part of the recordHowever if there is dedicated staff that is going to be compiling and responding to theclarification then the below questions would be the priorities of most interest

These were questions unrelated to the disparity study and hopefully should be doable

1) Do you have any reports on your outcomes from the past 5 years on DBE support servicesand specific key performance measures from previous years funding (ie how many firmsutilized what was the objectives were objectives met did outcomes meet total satisfaction ifnot why next steps what was the firms capacity before and after services were performed (iesales employees bonding if applicable insurance equipment line of credit if applicablenumbertype of customers how are they doing now etc))

2) What other changes or improvements other than allowing DBES to select their own serviceproviders and a staff change will be a part of this new program

3) Was consideration to provide the new mentor protege consultant rather than separating theactivities into support services andor technical assistance

Disparity study clarifications

1) Will WSDOT consider sponsoring legislation to support the policy changes and goalincreases to insure manditory goals wont be necessary

a) If not what measures will you grant primes to operate outside the box (ie entertain bestvalue over low bid modify responsiveness by subs to require adherence to meeting voluntarygoals developing standards around federally funded gccm and other low bid procurementsthat give powers to primes to meet objectives including but not limited to mentor protegerelationships joint ventures bond waiving techniques cash flow assistance material andequipment acquisition manufacturer development specifications that have only DBES orinclude equal number of DBES as non DBES as approved installers etc)

2) Will the disparity study consultant be available for implementation or information gatheringfrom other regions

5) Will WSDOT be hiring more diverse staff amp professionaltechnical service providers inother departments outside OEO to insure policies commitments and evaluations areperformed in manner that improves diversity that reflects the communities WSDOT serves bythoughtful and legal efforts increase participation thus creating successful outcomes includingpartnerships and collaborations

Thank you and Merry Christmas

Hi Dan

Thank you for providing such thoughtful public comments questions and testimony

Regarding your public testimony below - I do not believe I am not able to answer questions ifthey are public comments Please let me know what part of this email you would likeclarification on and what part you would like considered public testimony

I appreciate your thoughtful consideration of WSDOTrsquos implementation of our civil rightsprograms

Best Regards

Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

DIDaniel Seydel IIFyi Daniel J Seydel II Platinum Group LLC 2064060844 f) 2062999934wwwplatinumbusinessgroupcom Small Business is the Answer FREE TRAINING FORENTREPRENEURS amp JOB SEEKERS - Polish your skills or make your firm standout thanksto the EntrepreneurialThu 233pDI

Daniel Seydel IIThu 1272017 1123 AMInbox Sent ItemsShow all 7 recipientsTobaynejwsdotwagov ltBayneJwsdotwagovgtJackie

Per your request below are my questions and comments some of which were verbally sharedyesterday

Congratulations on receiving the blessing of additional technical assistance dollars andcompleting the DBE Disparity Study per your report

1) Do you have any reports on your outcomes from the past 5 years on DBE support servicesand specific key performance measures from previous years funding (ie how many firmsutilized what was the objectives were objectives met did outcomes meet total satisfaction ifnot why next steps what was the firms capacity before and after services were performed (ie

sales employees bonding if applicable insurance equipment line of credit if applicablenumbertype of customers how are they doing now etc))

2) What other changes or improvements other than allowing DBES to select their own serviceproviders and a staff change will be a part of this new program

3) Was consideration to provide the new mentor protege consultant rather than separating theactivities into support services andor technical assistance

Disparity study clarifications andor comments

1) Will WSDOT consider sponsoring legislation to support the policy changes and goalincreases to insure manditory goals wont be necessary

a) If not what measures will you grant primes to operate outside the box (ie entertain bestvalue over low bid modify responsiveness by subs to require adherence to meeting voluntarygoals developing standards around federally funded gccm and other low bid procurementsthat give powers to primes to meet objectives including but not limited to mentor protegerelationships joint ventures bond waiving techniques cash flow assistance material andequipment acquisition manufacturer development specifications that have only DBES orinclude equal number of DBES as non DBES as approved installers etc)

2) Will the disparity study consultant be available for implementation or information gatheringfrom other regions

3) What lessons did WSDOT learn that it did not know from the other study(s)

4) What would WSDOT do different (ie scope time line process approach etc)

5) Will WSDOT be hiring more diverse staff amp professionaltechnical service providers inother departments outside OEO to insure policies commitments and evaluations areperformed in manner that improves diversity that reflects the communities WSDOT serves bythoughtful and legal efforts increase participation thus creating successful outcomes includingpartnerships and collaborations

Daniel J Seydel IIPlatinum Group LLC 2064060844f) 2062999934wwwplatinumbusinessgroupcom

Small Business is the Answer

FREE TRAINING FOR ENTREPRENEURS amp JOB SEEKERS - Polish your skills or makeyour firm standout thanks to the Entrepreneurial Institute of Washington

httpswwwyoutubecomchannelUCKL5YeVxL29HnNxqnb6hmXA

LIKE US on FaceBook if an Active Professional Development workshop provided by EIW

Construction University helps your firm or has benefited you

httpswwwfacebookcomEIWashingtonref=hl

From Bayne Jackie ltBayneJwsdotwagovgtSent Friday December 8 2017 10139 PMTo Daniel Seydel IICc Key Earl daneiwashingtonorg Nadeem Ismail Mussie Tewelde(mteweldehydro2geotechcom) graceflyrightaolcom Mary Wenner Watkinson LarrySubject RE Seydel Dan - WSDOT Disparity Study Presentation Public Testimony Hi Dan Thank you for providing such thoughtful public comments questions and testimony Regarding your public testimony below - I do not believe I am not able to answer questions if theyare public comments Please let me know what part of this email you would like clarification on andwhat part you would like considered public testimony I appreciate your thoughtful consideration of WSDOTrsquos implementation of our civil rights programs Best Regards Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov From Daniel Seydel II [mailtodanplatinumbusinessgroupcom] Sent Thursday December 7 2017 1123 AMTo Bayne Jackie ltBayneJwsdotwagovgtCc Key Earl ltKeyEwsdotwagovgt daneiwashingtonorg Nadeem Ismailltnipaintingearthlinknetgt Mussie Tewelde (mteweldehydro2geotechcom)ltmteweldehydro2geotechcomgt graceflyrightaolcom Mary Wennerltmwenn0108yahoocomgtSubject Seydel Dan - WSDOT Disparity Study Presentation Public Testimony Jackie

Per your request below are my questions and comments some of which were verbally sharedyesterday

Congratulations on receiving the blessing of additional technical assistance dollars andcompleting the DBE Disparity Study per your report

1) Do you have any reports on your outcomes from the past 5 years on DBE support servicesand specific key performance measures from previous years funding (ie how many firmsutilized what was the objectives were objectives met did outcomes meet total satisfaction ifnot why next steps what was the firms capacity before and after services were performed (iesales employees bonding if applicable insurance equipment line of credit if applicablenumbertype of customers how are they doing now etc))

2) What other changes or improvements other than allowing DBES to select their own serviceproviders and a staff change will be a part of this new program

3) Was consideration to provide the new mentor protege consultant rather than separating theactivities into support services andor technical assistance

Disparity study clarifications andor comments

1) Will WSDOT consider sponsoring legislation to support the policy changes and goalincreases to insure manditory goals wont be necessary

a) If not what measures will you grant primes to operate outside the box (ie entertain bestvalue over low bid modify responsiveness by subs to require adherence to meeting voluntarygoals developing standards around federally funded gccm and other low bid procurementsthat give powers to primes to meet objectives including but not limited to mentor protegerelationships joint ventures bond waiving techniques cash flow assistance material andequipment acquisition manufacturer development specifications that have only DBES orinclude equal number of DBES as non DBES as approved installers etc)

2) Will the disparity study consultant be available for implementation or information gatheringfrom other regions

3) What lessons did WSDOT learn that it did not know from the other study(s)

4) What would WSDOT do different (ie scope time line process approach etc)

5) Will WSDOT be hiring more diverse staff amp professionaltechnical service providers inother departments outside OEO to insure policies commitments and evaluations areperformed in manner that improves diversity that reflects the communities WSDOT serves bythoughtful and legal efforts increase participation thus creating successful outcomes includingpartnerships and collaborations

Thank you for your hard work

Daniel J Seydel IIPlatinum Group LLC2064060844f) 2062999934wwwplatinumbusinessgroupcom

Small Business is the Answer

FREE TRAINING FOR ENTREPRENEURS amp JOB SEEKERS - Polish your skills or makeyour firm standout thanks to the Entrepreneurial Institute of Washington

httpswwwyoutubecomchannelUCKL5YeVxL29HnNxqnb6hmXA

LIKE US on FaceBook if an Active Professional Development workshop provided by EIWConstruction University helps your firm or has benefited you

httpswwwfacebookcomEIWashingtonref=hl

From Erin EhlingerTo Bayne JackieSubject Support for WSDOTs proposed DBE goalDate Wednesday December 13 2017 115417 AM

I am writing to support the WSDOT recommended DBE Goal for FHWA contracts of 190 I also want to express my appreciation for the thoroughness of the WSDOT Disparity study and howthe study disclosed the disparity in WSDOT contracts that do not have a DBE or WBE goal ndash furtherreinforcing that all women-owned firms and minority owned firms face equity issues I remain concerned with the methodology required by the Code of Federal Regulations and case lawbecause of the dependence on the availability of firms in the calculation An unintendedconsequence of removing either gender or race from the goal is that many of these firms would goout of business the availability decreases and the formula then results in a smaller DBE goal Pleaselet me know how I can help influence a change to the CFR Thank you Erin Ehlinger

Erin Ehlinger PEPresident

24036 SE 47th StSammamish WA 98029erinehlingersmartcitytrafficcom425-221-0320

From Jackie EtterTo WSDOT Disparity StudySubject Why we need mandatory goalsDate Friday December 1 2017 61859 PM

As a DBE participating in bidding process I have found that regardless of the language which claims to insurethat disadvantaged business enterprises shall not be discriminated against the only way to ensure that this does nothappen is by mandating affirmative action goals Having been overlooked time and time again because of my gender when I have submitted bids that are verycompetitive with other bidders is very frustrating I have had many instances of companies using my price to getmy non DBE competitors to lower theirs The voluntary or laudatory DBE goals do nothing to ensure a level playing fieldThe only way to ensure non-discrimination is through mandatory goals

Jackie EtterWest Star Construction of Spokane

Sent from my iPhone

From Claudia HirscheyTo Key Earl Bayne JackieSubject WSDOT DBE Goal - Comment in supportDate Tuesday December 12 2017 61937 PM

Dear Earl and Jackie The WSDOT recommended DBE Goal for FHWA contracts of 190 is a small and important increasethat can further achieve equity in WSDOTFHWA contracting I am in support of the 19 DBE Goal I also want to express my appreciation for the thoroughness of the WSDOT Disparity study and howthe study disclosed the disparity in WSDOT contracts that do not have a DBE or WBE goal ndash furtherreinforcing that all women-owned firms and minority owned firms face equity issues I remain concerned with the methodology required by the Code of Federal Regulations and case lawbecause of the dependence on the availability of firms in the calculation An unintendedconsequence of removing either gender or race from the goal is that many of these firms would goout of business the availability decreases and the formula then results in a smaller DBE goal Sincerely Claudia S Hirschey PETransportation Consulting Servicesclaudiahirscheycomcastnethttphirscheytcscom2068564988 Mobile

From Nate ThomasTo WSDOT Disparity StudySubject WSDOT Proposes DBE goal of 19Date Thursday December 7 2017 42720 PM

The WSDOT should look into similar ways the Federal Gov has handled the equal opportunity forthose that fall under the DBE status and set aside specific projects for the DBErsquos and moreimportantly UDBErsquos so these companies have better chance of landing contracts Maybe a lot 10 ofthe DBE goal to set aside for only DBEs and other 9 goal met as it is done currently with COA onlarger contracts Nate ThomasSenior EstimatorD 5095688085 | C 5099941156331 North Fancher Road | Spokane WA | 99212

The information contained in this email including any attachments is confidential and may beprivileged It is intended only for the person or entity to which it is addressed and no waiver isintended by sending this email If the reader is not the intended recipient you are herebynotified that any review retransmission dissemination or other use of or taking any action inreliance upon this information is strictly prohibited If you have received this email in errorkindly notify the sender by reply email and delete the original message from any computerThank You

From Brian FujiiTo WSDOT Disparity StudySubject WSDOT propsed DBE GoalsDate Thursday December 7 2017 110638 AM

Good morning Jackie

I wanted to comment on WSDOTs proposed DBE goal to 19 I believe WSDOTs plan toincrease the overall DBE goal to 19 will provide greater opportunities for DBE contractorsin different disciplines to participate in federally funded contracts

Without the new DBE requirement and with Proposition 200 there are limited opportunitiesfor DBE contractors in disciplines different than the typical trucking flagging and rebar Inaddition there are no incentives for general contractors to go out beyond the usual truckingflagging and rebar DBE subcontractors

Increasing the DBE goals will provide opportunities for different DBE contractors in differentdisciplines to participate in WSDOT federally funded projects

Thank you for your time

RespectfullyBrian FujiiPresident Subsurface ConstructionP 2063836478F 2069604639MDBE 4M0024998

From Forman StephanieTo Bayne JackieCc Millar Roger christinenhanmailhousegov Claudia Hirschey Sarah Corbin Jiang Yingle

efaulknerenviroissuescom Diana Giraldo Kelly CheesemanSubject WTS - Disparity Study Comment LetterDate Friday December 15 2017 71020 PMAttachments 2017_Dec 15_WTSCommentLetter_WSDOT DBE Goalpdf

Dear Ms Bayne Please find our attached letter which summarizes the WTS Puget Sound Chapterrsquos support foradvancement of women in transportation and our comment letter regarding the recent DisparityStudy Please feel free to contact me if you have any questions or would like to discuss Sincerely Stephanie S Forman PEWTS Puget Sound President Transportation Project Manager

929 108th Avenue NE Suite 1300Bellevue WA 98004D 4254681548 M 2062291745stephanieformanhdrinccom

December 15 2017

Jackie Bayne Policy and Reporting Manager

Office of Equal Opportunity

Washington State Department of Transportation

PO Box 47314

Olympia WA 98504-7314

Dear Ms Bayne

On behalf of the Puget Sound Chapter of Womenrsquos Transportation Seminar (WTS) we would

like to thank the Washington State Department of Transportation for presenting to our

organization the DBE Disparity Study results We very much appreciated the presentation by Earl

Key Director of WSDOTrsquos Office of Equal Opportunity Teresa Berntsen (Director Office of Minority

and Womens Business Enterprises) as well as Leslie Jones (Director Sound Transit Office of Small

Business Development and Labor Compliance)

Following a review of the WSDOT Disparity Study and as a result of consultation with WTS

International we would like to provide WSDOT with our comments for your consideration

As you know WTS is an organization focused exclusively on attracting retaining and advancing

women in transportation By the year 2018 there will be thousands of vacancies in the

transportation industry for qualified professionals and while women account for more than half of

the worldrsquos workforce they are a very small minority in transportation disciplines

We are pleased that the outcome of the 2017 Disparity Study that recognizes the on-going barriers

for DBEs including women-owned businesses in transportation The WSDOT recommended DBE

Goal of 190 is a small and important increase that can further achieve equity in WSDOTFHWA

contracting We are also pleased that the 2017 Disparity Study has documented the disparity in

WSDOT contracts that do not have a DBE or WBE goal ndash further reinforcing that all women-owned

firms and minority owned firms face equity issues We are encouraged that the WSDOT has asked

FHWA to rescind the 2016 waiver

While WTSrsquo mission is specific to the advancement of women we are a race-neutral organization To

this end we are also deeply concerned about the underutilization of minority owned firms There is

no equity or ldquofair playing fieldrdquo without equity for all gender and races We remained concerned with

the methodology required by the Code of Federal Regulations and case law because of the

dependence on the availability of firms in the calculation An unintended consequence of removing

either gender or race from the goal is that many of these firms would go out of business the

availability decreases and the formula then results in a smaller DBE goal This consequence is

contrary to our mission

We look forward to our continued participation in WSDOTrsquos DBE advisory group we are anticipating

notice that the 2016 waiver has been rescinded and how we can work together to continue

advancing minority and women-owned firms in the transportation field

Sincerely

WTS Puget Sound Chapter

Stephanie Forman

President

C Roger Millar Secretary WSDOT

C Representative Adam Smith 9th Congressional District Washington co Christine Nhan

WTS Puget Sound Chapter

PO Box 3461

Bellevue Washington 98009

From Dave Gent - WAPATo Bayne JackieCc Tom GaetzSubject WAPA Public Comments - RE WSDOT FHWA Disadvantaged Business Enterprise Proposed GoalDate Friday December 15 2017 14119 PMAttachments 12152017 DBE Proposed Goal - WAPA Public Comments Letterpdf

Good afternoon Jackie Please find attached WAPArsquos ldquofor the public recordrdquo comments with respect to WSDOTrsquos proposedDBE Goals FHWA funded work I assume that the Master DBE Directory was not sent to you this week so as a result we were notable to review the directory before the close of the public comment period That fact is noted withinour comment letter Thank you for your efforts Have a good weekend

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Friday December 8 2017 1219 PMTo Dave Gent - WAPA ltdavegentasphaltwacomgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hello Dave WSDOT did not take possession of this directory as part of our review process We will provide youwith the records without submitting a formal request However we need to get them from theconsultant first I will hopefully have them to provide next week I will keep you updated on therequest Have a nice weekend Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal Opportunity

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

December 15 2017

Jackie Bayne Policy Manager WSDOT Office of Equal Opportunity Delivered via e-mail to BayneJwsdotwagov RE Public Comment (as requested) to Proposed Overall DBE Goal for the FHWA (2018 ndash 2020) Ms Bayne Thank you for your presentation via webinar on December 5 2017 outlining WSDOTrsquos evaluation process used to determine the proposed overall DBE goal for the FHWA Thank you also for the Colette Holt amp Associates (CHA) DBE Advisory Group presentation made on September 14 2017 Both presentations helped to distill the findings of the 2017 Disparity Study produced by CHA In response to Earl Keyrsquos initial informal request to comment on the proposed overall DBE goal made during the DBE Advisory Committee teleconference held on October 12th we provided a list of reasons that we believe justify a lower DBE goal than is now being proposed Our initial response to Mr Keyrsquos request did not serve to influence WSDOT and the current proposed goal remains at 190 The arguments provided on October 12th against the significant increase in the proposed DBE goal (versus the previous goal and recent historic DBE participation) are repeated and supplemented below and will serve as the Asphalt Pavement Associationrsquos (WAPArsquos) official public comments

In concert with WSDOT and the OWMBE WAPA and the construction firms that WAPA represents have demonstrated a commitment to the principals of equal opportunity for all ldquoready willing and ablerdquo firms for the entire history that our DBE program has been in place WAPA has continuously demonstrated its commitment to the goals of the DBE program and for increasing the representation of disadvantaged groups within our industry as both workers and owners of firms Please recognize that WAPArsquos oversight and critique of the DBE program has always attempted to balance the principals of fair and open competition with the practical aspects of the low bid compressed schedule high performance standards demanded within the WSDOT marketplace Our comments below are meant to enhance WSDOTrsquos and OWMBErsquos understanding of the market and to hopefully have WSDOT fully consider all of the dynamics that are at play when proposing its Triennial DBE goal for FHWA projects Current DBE Capacity vs Historically Robust Market In advocating for a realistic and defensible DBE goal it has always been WAPArsquos position that it is paramount that the realities of the marketplace and true certified DBE subcontracting capacity should be a primary standard While a ldquostretchrdquo goal may appear to be progressive on its face it comes with consequences for all of the parties involved in the WSDOT federal aid contracting arena To balance the dynamics of the WSDOT contracting system the DBE goal should be tempered with the realities of the market and with a true measure of the underlying effectiveness of the DBE support services available to contractors

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 2 of 6 The first point of fact that has not been given any apparent consideration by WSDOT in its evaluation of the current capacity of certified DBErsquos is that there is an historically robust workload scheduled to be performed in the 2017 through 2022 time-frame particularly in the Puget Sound ldquoEverett to Olympiardquo corridor By WSDOTrsquos own estimates (see Attachment A) public works construction project starts in the 2018 to 2022 time-frame in this region will exceed $333 billion (B) counting the work projected from just five public entities WSDOT will be taking a decidedly ldquoback seatrdquo role during this period to Sound Transit which will have construction project starts of $226B vs WSDOTrsquos projected volume of $67B WSDOTrsquos summary publication titled Washington State Department of Transportations Proposed Federal Highway Administration Triennium Disadvantaged Business Enterprise Goal Federal Fiscal Years 2018-2020 states correctly that ldquoIncluded among the types of evidence that must be considered are the current capacity of DBEs to perform work on WSDOTrsquos federally-assisted contracts as measured by the volume of work DBEs have performed in recent yearshelliprdquo (Step Two Adjustment discussion) With the Sound Transit program being over 300 larger than the total WSDOT program in this region a sober assessment of true certified DBE capacity in the next three years needs to be considered by WSDOT If the huge construction boom over the next five years does not prompt a Step Two Adjustment then it becomes obvious that the realities of the market are being ignored by WSDOT for DBE goal setting Put another way if the 2018 through 2022 level of contracting activity does not warrant a goal adjustment what will DBE Access Barriers Not Yet Addressed The CHA 2017 Disparity Study points out multiple recommendations in Section VII that impact DBE participation and access to the market Assessments relating to those impacts and the state of maturity in addressing the CHA recommendations should be considered when assessing the DBE goal Many of the CHA recommendation have not been adequately addressed at this point in time Some of the prime examples are listed below Increase Certification and Expertise ndash The Disparity Study as explained to us includes all minority- (MBE)

and women-owned (WBE) firms that could be readily identified that perform work within Washington State and that perform work within the NAICS code framework CHA developed to cover WSDOT project work During the various presentations relating to the Disparity Study WSDOT representatives said that outreach to currently non-certified MBE amp WBE firms has increased and that WSDOT aspires to bolster its list of certified firms in the future but this effort is just beginning and the success of the effort needs to be means tested against the broader population of MBE amp WBE firms included in the CHA base line evaluation As the Disparity Study uses a much broader population of MBE WBE contractors to arrive at its conclusions (both non-certified firms and firms too large for certification) it follows that the calculated DBE proposed goal is overstated to include capacity that does not currently exist within WSDOTrsquos certified DBE framework Unless OMWBE is experiencing sudden and unprecedented success in recruiting new MBEWBE firms the DBE goal should be adjusted downward to recognize that the ldquoready willing and ablerdquo contractors that WSDOT has certified is only a subset of the total MBEWBE contracting population used in the Disparity Study evaluation

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 3 of 6

Until the promised WSDOT outreach registration efforts result in a substantial increase in available certified DBE firms it is premature to count the entire population of minority- and women-owned contractors as available to participate in WSDOT contracting It is unreasonable for WSDOT to project availability capacity using the entire MBEWBE population when only its currently truncated list of certified firms is acceptable to count toward the DBE goal

A corollary to the Increase Certification and Expertise discussion above is that the calculation of the Base Figure evidently includes the broadest practical population of MBE and WBE firms identifiable (without a review of the CHA Master DBE Directory which has not been supplied prior to the close of the public comment period the scope of the directory cannot be ascertained) If this directory includes a large population of MBEWBE firms that are not certified or are too large to be certified then the Base Figure calculation should be adjusted to reflect that certified DBE firms are a fraction of the total MBEWBE firms used to arrive at the 19 suggested DBE goal With respect to the CHA Master Directory it is our understanding the WSDOT was not given the directory as part of its evaluation of the Disparity Study and it follows that it did not evaluate the proposed DBE goal in the context of the CHA Master DBE Directory In our opinion an informed decision on adjusting the CHA baseline goal calculation can only be done after an extensive evaluation of the CHA Master DBE Directory If this has not been done WSDOT has not exercised due diligence in evaluating the context and underpinnings of the CHA Disparity Study and a certified DBE Triennium goal proposal to the FHWA is premature Increase Contract ldquoUnbundlingrdquo ndash If this proposed strategy (suggested by the CHA Study) is undertaken

certified DBE Subcontractors currently available will be engaged as Prime Contractors and the value of their prime contracts will bolster the overall percentage of certified DBE contracting but a systematic effort and strategy to ldquounbundlerdquo has not been articulated by WSDOT The key question of how this effort can be accomplished without increased cost to the taxpayers and increased inconvenience for the traveling public As noted in the CHA study (page 129 final paragraph) ldquoUnbundling must be conducted however within the constraints of the need to ensure efficiency and limit cost to the taxpayersrdquo As of this writing no overarching strategy for further unbundling with proper accountability has been articulated by WSDOT to the DBE Advisory Group

Review Insurance and Experience Requirements ndash Impediments to certified DBE participation due to

necessary insurance and experience standards cannot be solved by the prime contracting community Unless and until WSDOT puts together programs to address the burden of the substantial risks shouldered by Prime Contractors on WSDOT contracts barriers for streamlined utilization of certified DBE firms will continue to exist These market driven barriers will continue to dampen the availability of certified DBE Subcontractors that are able to perform within WSDOTrsquos strict criteria without unduly transferring risk to the Prime Contractor

Better Partnering to Overcome DBE Failures to Perform ndash Prime Contractors are held fully responsible to maintain the project schedule and are subject to project liquidated damages even when they may be struggling to deal with Subcontractor performance issues It is well-established that replacing a certified ldquocondition of awardrdquo (COA) DBE Subcontractor is very onerous and likely very costly to the Prime Contractor Unfortunately the imposition of strict and often counter-productive commercially useful function (CUF) rules often compound this issue as Prime Contractors cannot help COA DBE Subcontractors work through capacity expertise or time-related issues that impact timely performance

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 4 of 6

WSDOT needs to be a much better partner in the process of dealing with under-performing or non-performing certified DBE Subcontractors The current standard operational procedure places all of the exposure for non-performance onto the Prime WSDOT does not have an equitable system to account for non-performing or under-performing certified DBE Subcontractors hired as a condition of award (COA)

Performance Information and Training ndash Commercially useful function rules (CUF) and the lack of clear benchmark definitions for good faith effort (GFE) standards remain barriers for improving accountability within the DBE system and in turn lead to distorted DBE participation rates These items remain amorphous due to lack of training or lack of historic information Chronic uncertainty exists regarding both of these items Until WSDOT changes and improves its approach to provide transparency and certainty for both the prime bidding amp subcontracting parties true certified DBE capacity will continue to be masked and the resultant higher subcontracting costs associated with a distorted marketplace will continue to be hidden

WAPA respectfully suggests that simply adding an ldquoEstimated DBE Subcontract Premiumrdquo line to the current DBE bid forms would help to establish benchmarks that could begin to be used to ldquomeans testrdquo good faith efforts If this information had been gathered over the last 20 years of the DBE program meaningful GFE standards could have been developed and could be in place today

An in-depth review of CUF standards would also provide clarity For instance it is unclear why force account items performed by certified DBEs are currently counted at only 50 of the value of the work How was this benchmark established Has it been reviewed since imposed Did it ldquosolverdquo whatever inequity WSDOT was trying to address Better clarity may lead to more expanded opportunities for certified DBE Subcontractors

Enhanced Supportive Services and Business Development Programs ndash Unless and until stronger programs of these types are shown to be effective in boosting certified DBE business development increased DBE participation due to stronger business acumen should not be relied upon when setting the new DBE goal

Does OMWBE have a reasonable expectation that future plans for enhanced and expanded programs will be more successful than those employed in the past Assuming that certified DBE Subcontractors will be better prepared to deal with the WSDOT contracting environment than in the past should not be relied upon to boost DBE participation goals Especially troubling were the multiple references within the CHA report highlighting that DBEs believe that the staff at OMWBE lack a deep knowledge about the highway construction industry (eg Study page 129 2nd paragraph) Does OMWBE have a path forward that will address this issue and thus improve supportive services impacts

Develop a Bonding and Financing Program for SBEs ndash This is completely outside of the prime contracting

communityrsquos scope of influence WSDOT must find a way to institute changes that both protect the taxpayer and help increase certified DBE bonding capacity and access to financing ndash very large hurtles To assume that these hurtles can effectively be overcome within the 2018 ndash 2020 time frame when they have been chromic issues for the past 20 plus years of DBE program development is not rational

A helpful innovation would be for WSDOT to underwrite performance and payment bonds for certified DBE firms or to create promote a system that helps certified DBE firms obtain private bonding Bridging the gap to address capital access and performance risks (bonding) must be championed by WSDOT

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 5 of 6

Base Figure Adjustment to Address Available Subcontract Volume and DBE Prime Contracts It is a fact that mid- to large-sized MBEWBE firms that compete both as Prime Contractors and as Subcontractors are not eligible to be OMWBE certified DBEs Further the current amount of contract unbundling for greater DBE access to WSDOT prime contracting (see below) accounts for a very low dollar volume of prime contracts performed by certified DBEs Finally by specification (WSDOT standard specification 1-081) Prime Contractors are obligated to perform 30 of the total volume of the work (less specialty work) or stated another way a maximum of 70 of the dollar volume on WSDOT projects is typically available to award to subcontractors These market dynamics are NOT addressed in the Disparity Study A responsible DBE goal made absent of these facts should not be implemented A reasonable adjustment to the proposed 19 DBE goal is presented below

bull The percent of WSDOT prime contracts awarded to certified DBE firms is likely less than 5 by total WSDOT

contract volume Assuming this approximation is valid (likely very conservative) then the amount of WSDOT contract work available to certified DBE firms via subcontracting should be adjusted to account for the factors outlined above The Base Figure (19) should be adjusted to recognize that a 70 maximum subcontractor participation is available (in the numerator) and to account for the assumed 5 certified DBE prime contracts in the denominator Reasonable Base Figure Adjustment 19 (proposed) x 70 subcontracts available divide 95 of Non-Certified DBEs as Prime Contract Volume = 190 x 0737 = 140 adjusted goal This is an adjustment based on the practical dynamics of the WSDOT contracting system and it represents a more realistic look at the true subcontract volume that is available for Prime Contractors to award to certified DBE firms

Conclusions

Until the items listed above are addressed and in place it is not reasonable to believe that DBE goals can be increased by nearly 163 (from 117 to 190) When the projected robust public works contracting market is appropriately considered the true availability of certified DBE Subcontractors for WSDOT contracts will be truncated due to demand across all public works sectors With multiple strong public works programs competing for a limited population of certified DBEs the ability to meet increased WSDOT DBE goals will be severely challenged Without very clear concise and transparent good faith effort rules the ability to address DBE goals that greatly overestimate true near term certified DBE capacity will result in non-attainment bid day chaos failures to perform andor rapidly increased pricing

The clear conclusion is that at this point in time under the current circumstances without effectively instituted new programs rules procedures that could enhance the certified DBE programrsquos overall effectiveness we believe that the DBE goal should remain at or near 12 As OMWBE documents and demonstrates its future successes in improving access and eliminating capacity barriers only then should the DBE goal be re-evaluated and increased

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 6 of 6

In closing please remember that it is rare that the contracting community is asked our opinion with respect to the WSDOTrsquos DBE policies and so this letter is somewhat a vehicle to highlight collective concerns It is our belief that the majority of the Prime Contractors in Washington state support the objective of creating a level playing field for ready willing and able DBEs

If the level playing field is not yet possible in the absence of the DBE program then the key is to set realistic goals that recognize reflect and address the hard realities and market dynamics imposed by WSDOTrsquos bedrock environment of awarding contracts to the lowest cost responsible and responsive Contractor

Respectfully submitted Washington Asphalt Pavement Association

David Gent Tom Gaetz Executive Director Senior Advisor

Attachment A ndash WSDOT Central Puget Sound Public Works Contracting Projection 2018 - 2022

Con

stru

ctio

n Pr

ojec

t Sta

rts

2018

-202

2S

ound

Tra

nsit

$22

6 B

SD

OT

$08

B

Tran

sit

amp O

ther

s$1

7 B

WS

DO

T$6

7 B

Por

t of

Sea

ttle

$15

B

TOTA

L$3

33

B

Source N

ov 1

9 2

017

pres

enta

tion

to W

APA

Ann

ual M

eetin

g

Attachment A

Work (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Dave Gent - WAPA [mailtodavegentasphaltwacom] Sent Thursday December 7 2017 144 PMTo Bayne Jackie ltBayneJwsdotwagovgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hi again Jackie Irsquom fine thanks and hope you are the same Interesting The Master DBE Directory is the basis for and integral to the conclusions of the DisparityStudy Is it not then part of the information needed to fully review and comment on the DisparityStudy Was it not provided by CHA to WSDOT for review We are trying to fully understand thestudy and if this directory was part of the study why would it need to be obtained by a publicrecords disclosure It should be in the public domain and not restricted from ease of access If you are sure that a public records request is needed Irsquoll start that process but we will need tonote that point of fact when we submit our public comments If you are able to reconsider please let me know Respectfully

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Thursday December 7 2017 126 PMTo Dave Gent - WAPA ltdavegentasphaltwacomgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hello Dave I hope you are doing well

That information would likely be obtained through a public disclosure request Best Regards Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Dave Gent - WAPA [mailtodavegentasphaltwacom] Sent Thursday December 7 2017 113 PMTo Bayne Jackie ltBayneJwsdotwagovgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Jackie Can you please provide an electronic file or provide a weblink for the Master DBE Directory thatColette Holt amp Associates developed for the WSDOT Disparity Study 2017 (first referred to on Page 8of the Disparity Study) I did not see a link to this Master DBE Directory within the study Thanks

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Friday October 27 2017 1118 AMTo Kenyon Wendy ltKenyonWwsdotwagovgt Adams E W ltewadamssystemsclcomgtAdekoyaAndrew ltandrewadekoyabccomgt AlyssaBalllegwagov Anindita Mitraltamitracrea-affiliatescomgt APRISeattlehotmailcom Armstrong CharlotteltCharlieAatgwagovgt Ato Apiafi Architects PLLC ltatoaatoapiaficomgt benzfanwaorgBerntsen Teresa (OMWBE) ltTeresaBomwbewagovgt Billingsley Andrealtbillinawsdotwagovgt Bramlet Erica ltEricaBramletlegwagovgt Brooks Julius

ltBrooksJwsdotwagovgt Brown Jason ltjbrownldccorpcomgt bwallacenwlaborersorgCamden Allison ltCamdenAwsdotwagovgt carlllivingstongmailcom Cerda OscarltCerdaOwsdotwagovgt Christopher Chris ltChristCwsdotwagovgt ckerneycaawagovdanplatinumbusinessgroupcom davegentasphaltwacom David BalltDavidsignsnowmillcreekcomgt Davis Khalia ltDavisKhwsdotwagovgt Davis RaShelle (GOVltrashelledavisgovwagovgt Dayton Jo ltDaytonJwsdotwagovgt ddhondtagcwacomDebbieDriverlegwagov Dennis ltdennisahlkiewitcomgt dmcleodnwlaborersorgdrart6651gmailcom Duncan Enid lthigradeincgmailcomgt EltonltEltonwashingtonstatetruckingcomgt eprincecaawagov flemosldccorpcomfmartineznwmtnmsdcorg geoffshookatkncom glovelady ltgloveladyexcelglovescomgtGrabow Katie ltkgrabowsystemsclcomgt Guilfucci Jackie ltJackieGuilfucciskanskacomgt HealyLinda ltHealyLwsdotwagovgt Higginbotham Breanne ltHigginBwsdotwagovgt HirscheyClaudia ltclaudiahirscheycomcastnetgt Holt Colette ltcoletteholtmwbelawcomgt Huff JohnltHuffJwsdotwagovgt Iniguezchawagov JacksonMaynardlegwagov Jimmy Matta(jmattaalcantarassoccom) ltjmattaalcantarassoccomgt kellywickergovwagov Key EarlltKeyEwsdotwagovgt Kirk Jon ltjkirkwhhnfscomgt Kris Purrier ltkpurrierhwageocomgtleewabuildingtradesorg lesliejonessoundtransitorg Liz Evans ltlevansagcwacomgt LopezErin lterinlopezdeswagovgt Martha Cerna ltMarthaPSLCCORGgt Martin-Arnold EdwinaltMartinEwsdotwagovgt Mary Lerdahl ltmarydbeelectricinccomgt McCarty Hannahlthannahmccartylegwagovgt Melissa L Boyles ltmelissaboylesmwbelawcomgt Metcalf KeithltMetcalKwsdotwagovgt michaelicapaawagov Michelle ltMichelleTTCC26netgt MillarRoger ltMillarRwsdotwagovgt Nakamura Jason ltjasonnakamura1-alliancecomgtNavarroLportseattleorg olliepmt-solutionscom pastorbanksesbctacomacom PatrickHughes ltphugheshughesgroupbizgt Petersen Jodi (FHWA) ltJodiPetersendotgovgtrabbottliunaorg rcarmsteadgmailcom ricemportseattleorg Riley D ltdrileylydigcomgtSeling ltSelingjpfranciscomgt sherryharrisergosynchcom Stell MellodyltStellMwsdotwagovgt terigobintulaliptribes-nsngov timwilliamfactorycom tinaterra-tdicom tkellyldccorpcom tomgaetzmsncom vcollinsacec-waorgverlenejazzmsncom Wang Albert ltWangAatgwagovgt Waugh GregltGregWMaxKuneyComgt Yates Henry ltYatesHWSDOTWAGOVgtCc Tom Gaetz lttomgaetzmsncomgt Dave Gent - WAPA ltdavegentasphaltwacomgt VanCollins ltvcollinsacec-waorggt Daniel Seydel II ltdanplatinumbusinessgroupcomgt MaynardJackson ltJacksonMaynardlegwagovgt Carl Livingston ltcarlllivingstongmailcomgt DonMcLeod ltdmcleodnwlaborersorggt JIMMY MATTA ltjimmymattamsncomgt Prince Ed(CAAA) lteprincecaawagovgt David DHondt ltddhondtagcwacomgt Irene Reyesltgloveladyexcelsupplycompanycomgt McDaniel Craig ltMcDaniCwsdotwagovgtsherryharrisergosynchcomSubject WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Good morning On Monday October 30th WSDOT will be releasing the proposed overall Federal HighwayAdministration Disadvantaged Business Enterprise goal attached for public comment throughDecember 15 2017 This overall DBE goal is based upon the recently completely DBE ProgramDisparity Study WSDOT is proposing a 19 percent overall DBE participation goal on Federal Highway

Administration-funded projects for federal fiscal years 2018 through 2020 DBE goals fortransportation projects that receive federal funds represent a percentage of the value of work inwhich minority- and women-owned businesses should participate Once finalized and submitted toFHWA early next year the goal will be effective through Sept 30 2020

The purpose of the DBE program is to create a level playing field for firms owned and operated bydisadvantaged individuals wanting to participate in federally assisted highway transit and aviationprograms The attached overall DBE goal is for FHWA funded projects WSDOT will be updating theFTA and FAA overall DBE goals in the near future

If you have any questions please contact Earl Key Director of the Office of Equal Opportunity at3607057091 or KeyEwsdotwagov Thank you Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

  • Proof-Of-Publicationpdf
    • Mediapdf
      • AGC
      • Daily Journal
      • Daily Medium
      • DBEGood
      • OMWBE
      • Seattle Medium
      • Tabor 100
      • The Chronicle
      • Tukwila
        • King County
          • Public-Comments-20180111pdf
            • 19 DBE Requirement(1)
            • AGC Comments on Proposed 10 Goad
            • Backstrom Curb amp Sidewalk
            • comments on WSDOT proposed DBE goal
            • Cowlitz County Public Works
            • DBE Contracting goals
            • DBE Goal
            • DBE Program Disparity Study
            • Disparity Study Comments from City of Spokane
            • FW_ WSDOT News - WSDOT seeks comments on propos
            • Proposed DBE Goals
            • RE_ DBE Contracting Goal Comments
            • Re_ DBE Goal Comments
            • Re_ Seydel Dan - WSDOT Disparity Study Present
            • Support for WSDOTs proposed DBE goal
            • Why we need mandatory goals
            • WSDOT DBE Goal - Comment in support
            • WSDOT Proposes DBE goal of 19
            • WSDOT propsed DBE Goals
            • WTS - Disparity Study Comment Letter

From Dawn EgbertTo Bayne JackieSubject DBE Program Disparity StudyDate Tuesday December 5 2017 23825 PM

Hi JackieThank you for the great information on the call today You talked about the small works rosterbriefly We had a conversation in our office today about small contractors who are signed up on thePort of Vancouverrsquos small works roster Our team has had opportunity to talk to some of thecompanies on our roster who are women owned or minority owned businesses but they arenrsquotsigned up as a DBE firm When asked about that theyrsquove mentioned that they donrsquot want to fill outthe additional paperwork required to obtain the certification as a DBE As for the DBE goal at 19 it doesnrsquot seem to present an issue for the majority of our projects ndashespecially those where we would apply FHWA funds if granted However if we did happen to have aproject that didnrsquot include classifications of work where DBE certified participants are availablewould there still be an exception or a good faith efforts clause Thanks again for your time Dawn EgbertProcurement Services Manager3103 NW Lower River Road Vancouver WA 98660Direct 3609921102 | Cell 360448-9867 | Main 3606933611 | Fax 360735-1565degbertportvanusacom | wwwportvanusacom | available port properties Leadership | Stewardship | Partnership

From Feist MarleneTo WSDOT Disparity StudyCc Simmons Scott M Twohig KyleSubject Disparity Study Comments from City of SpokaneDate Friday December 15 2017 52226 PMAttachments image010png

image011pngimage012png

December 15 2017 Jackie BaynePolicy amp Reporting ManagerOffice of Equal OpportunityWashington State Department of TransportationPO Box 47314Olympia WA 98504-7314 RE Proposed DBE Contracting Goal for Highway Projects Dear Ms Bayne The City of Spokane would like to provide comments related to proposed DisadvantagedBusiness Enterprise Goal for Federal Highway Administration (FHWA) contracts by theWashington State Department of Transportation (WSDOT) Office of Equal Opportunity Manyof our projects receive funding from FHWA and as such the proposed new goals areapplicable to City work The City is supportive of the programrsquos purposemdashldquoto create a level playing field for firmsowned and operated by disadvantaged individuals wanting to participate in federally assistedhighway transit or aviation programsrdquo However the City is concerned about the ability to achieve the proposed utilization rate of upto 19 percent for DBEs in Eastern Washington considering the low number of DBEs in ourregion and the record construction under way in the City and in our region WSDOTrsquos DBE Program Disparity Study notes ldquoContractors in Eastern Washington repeatedlyreported that the goals on projects in their area are too highrdquo The Inland NorthwestAssociated General Contractors group notes that only about 12 DBEs in construction fields areavailable in the greater Spokane area Meanwhile the City has performed record construction in each of the last three years withproject totals hovering around $100 million Our City work has been bolstered by anaggressive program to improve water quality in the Spokane River Our local school districtsand our neighboring jurisdictions also have aggressive construction programs right now

Additionally we expect WSDOTrsquos work in this region to accelerate as North Spokane Corridor(NSC) construction proceeds At times our area is reaching the limits overall of our contractingcommunity the City has worked to release its projects in the first quarter of the year as muchas possible to lock in contractors and receive better pricing The capacity of existing DBEs in our region simply cannot meet that current high demand Some DBE firms are tempted to agree to more work in these times but we have found that insome cases DBEs have stretched themselves too thin On two recent City projects generalcontractors were unable to meet DBE goals as a result of DBE firms that couldnrsquot fulfill theircommitments for providing personnel or equipment It also seems implausible to expect DBEs from the West Side to mobilize teams to work on Cityof Spokane projects in large numbers In fact the Disparity Studyrsquos author responded at arecent meeting on this topic that a DBE from the West Side only very rarely completes workon the East Side of the state We would also be concerned about moving the good-paying jobs that construction providesoutside of our region The Cityrsquos median household income is $44350 considerably lower than theState of Washington MHI of $64129 and the Seattle MHI of $77351 Our leaders are working tocreate good-paying jobs for our citizens not export them to an already wealthier part of the state Additionally these projects are also funded with local dollars and our citizens expect their money toput their neighbors to work With the above considered the City is seeking

middot DBE goals for the 2018-2020 compliance period for Eastern Washington that arereflective of the current availability of DBE firms in our region

middot The re-inclusion of non-minority women owned DBEs in achieving DBE goals InSpokane non-minority women owned DBEs make up the majority of the availableDBEs And current information shows that women in Spokane overall still lag behindmen in opportunities and wages The Cityrsquos own ldquoGender and Racial Equityrdquo reportfrom 2016 noted that overall working women earned 783 percent of the earnings ofworking men in 2014 down from 827 percent in 2009 We need to lift up all women

middot The development of WSDOT programs to encourage the growth of existing andnew DBEs who can be used on street and highway projects We are encouraged by theproposed mentorproteacutegeacute program to increase the number and capacity of DBEs inEastern Washington Programs that address other barriers such as assistance withcompleting documentation or access to bonding capacity also could aid growth ofDBEs

middot The ability for WSDOT to adjust goals on a project if a selected DBE is unable tocomplete its commitments on a project This would help enable our contractors totake a chance on a new or inexperienced DBE to complete work

middot Recognition of local programs that strive to increase diversity in the work force Forexample the City operates a robust apprenticeship program that requires 15 percentof the labor hours on public works jobs greater than $600000 to be performed byapprentices The apprentice programs in our region are stepping up recruitmentefforts and are specifically seeking to recruit more youth women and minorities intoapprentice slots

As we seek to achieve the goal of increasing participation in street and highway constructionby companies owned by disadvantaged individuals we must also acknowledge that businessdevelopment and growth happens over time We must lay the groundwork now to build abase of DBEs that can help us achieve higher utilization goals over time Sincerely Marlene FeistDirector of Strategic DevelopmentPublic Works amp UtilitiesCity of Spokane

Marlene Feist | City of Spokane | Public Works Director of Strategic Development5096256505 | cell 5097109214 | mfeistspokanecityorg | spokanecityorg

From Hall MattTo WSDOT Disparity StudySubject FW WSDOT News - WSDOT seeks comments on proposed DBE contracting goal for highway projectsDate Friday December 15 2017 11956 PMAttachments WSDOT proposed DBE goal through 2020pdf

From Hall Matt Sent Friday December 15 2017 117 PMTo BayneJwsdotwagovCc Keniston Rick (KenistRwsdotwagov) MolyneKwsdotwagov SusanWilsonclarkwagovSubject WSDOT News - WSDOT seeks comments on proposed DBE contracting goal for highwayprojects Hello Jackie Please see our comments attached regarding the WSDOT proposed DBE goals Thanks for the opportunity to provide comments Matt HallClark County Public Works Washington State Department of Transportation ndash NEWSHeadquarters ndash 310 Maple Park Avenue SE ndash Olympia WA 98504-7314 ndash 360 705-7000 FOR IMMEDIATE RELEASEOct 30 2017 Contact Jackie Bayne Office of Equal Opportunity 360 705-7084

WSDOT seeks comments on proposed DBEcontracting goal for highway projectsComments accepted through Dec 15OLYMPIA ndash Contractors trade and labor organizations small and disadvantaged businessesand all others who may be interested in working with the Washington State Department ofTransportation are invited to comment on the agencyrsquos proposed Disadvantaged BusinessEnterprise goal for Federal Highway Administration contractsDBE goals for transportation projects that receive federal funds represent a percentage of thevalue of work in which minority- and women-owned businesses should participate WSDOTis proposing a 19 percent overall DBE participation goal on Federal Highway Administration-funded projects for federal fiscal years 2018 through 2020Once submitted to FHWA early next year the goal will be effective through Sept 30 2020The purpose of the DBE program is to create a level playing field for firms owned andoperated by disadvantaged individuals wanting to participate in federally assisted highwaytransit and aviation programsConnecting with communitiesWSDOT will host a series of public meetings to provide opportunities for individuals tocomment in person

Spokane

2 ndash 4 pm Tuesday Nov 28WSDOT Eastern Region Headquarters2714 N Mayfair St Spokane

Vancouver

2 ndash 4 pm Wednesday Nov 29WSDOT Vancouver Headquarters11018 NE 51st Circle Vancouver

Seattle

2 ndash 4 pm Thursday Dec 7WSDOT Northwest Region Headquarters15700 Dayton Ave N Shoreline

Other ways to provide commentThose who are unable to attend one of the meetings can participate in a no-cost webinar from230 ndash 430 pm Tuesday Dec 5 Registration for the webinar is required Those interested inparticipating should email DisparityStudywsdotwagovWritten comments can also be submitted by mail or emailJackie Bayne Policy amp Reporting ManagerWashington State Department of TransportationOffice of Equal OpportunityPO Box 47314Olympia WA 98504-7314DisparityStudywsdotwagovDocuments detailing the methodology used for determining the FHWA DBE goals areavailable for review at all WSDOT region headquarters offices and at the TransportationBuilding 310 Maple Park Ave SE Olympia They are also available online atwwwwsdotwagovequalopportunityWSDOT will consider all written comments received through Friday Dec 15 2017 Hyperlinks within this release

WSDOT Region offices wwwwsdotwagovContactofficelocationhtmregion

WSDOT keeps people businesses and the economy moving by operating and improving the statestransportation systems To learn more about what were doing go to wwwwsdotwagovnews forpictures videos news and blogs Real time traffic information is available at wwwwsdotcomtraffic or bydialing 511 Americans with Disabilities Act (ADA) InformationAccommodation requests for people with disabilities can be made by contacting the WSDOTDiversityADA Affairs team at wsdotadawsdotwagov or by calling toll-free 855-362-4ADA (4232)Persons who are deaf or hard of hearing may make a request by calling the Washington State Relay at711 Title VI Statement to Public It is WSDOTrsquos policy to assure that no person shall on the grounds ofrace color national origin or sex as provided by Title VI of the Civil Rights Act of 1964 be excluded fromparticipation in be denied the benefits of or be otherwise discriminated against under any of its federallyfunded programs and activities Any person who believes his or her Title VI protection has been violatedmay file a complaint with WSDOTrsquos Office of Equal Opportunity For additional information regarding Title

VI complaint procedures andor information regarding our non-discrimination obligations please contactOEOrsquos Title VI Coordinator at 360-705-7090 To unsubscribe to WSDOT media releases please reply and type REMOVE in the subject line

This e-mail and related attachments and any response may be subject to public disclosure under state law

From Cochrane EmilieTo WSDOT Disparity StudyCc Eugenis Susan Cowlitz Co Public Works - Brad BastinSubject Proposed DBE GoalsDate Thursday December 14 2017 85006 AMAttachments image002png

DBE Goals - Commentspdf

Please see the attached letter with comments regarding the proposed DBE Goals Ahard copy will be sent out today

Thanks

Emilie CochraneCowlitz County Public Works1600 ndash 13th Avenue SKelso WA 98626360-577-3030 ext 6523

From Michelle WolcottTo Bayne JackieCc Robideau Christopher LSubject RE DBE Contracting Goal CommentsDate Tuesday November 7 2017 65448 AMAttachments image001png

Thank you JackieWhat a relief to know that we have been heard and are not the only small business facing thisstruggle Your email is comforting

Yes you can provide us with additional assistanceLet me introduce my boss and Senior Vice President of Red Plains Professional Chris Robideau

Chris will be your contact from here since I will be leaving the company November 17th As a WA DBE we are ldquoeligible for limited DBE Support Services (SS) funding when funds becomeavailablerdquo When will this happen And are we registered or on a list to receive fundingIs the WSDOT ICR Training a prerequisite for the funding Or just helpful knowledge

Thank you for your time Jackie I will follow through with the training

Michelle Wolcott EIT Quality Control Engineer

2103 NE 129th Street Suite 201 Vancouver WA 98686 Office (360) 448-7999 Fax (360) 258-0274

wwwred-plainscom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Monday November 6 2017 332 PMTo Michelle Wolcott ltMichelleWolcottred-plainscomgtSubject RE DBE Contracting Goal Comments

Hi Michelle

Thank you for your interest in doing business with WSDOT I apologize for the lack of informationyou have come up against in your attempts to attain access to WSDOT ICR program

As you may well know WSDOT has recently completed a state wide agency specific diversity studyAnecdotal comments submitted with the study concur with your experience Not only did somerespondents find it difficult to become prequalified they also commented that the required indirectrate of 110 percent is too low to be profitable These requirements are currently under advisementby WSDOT and new DBE program requirements are currently in the process of seeking public input

As you are an OMWBE certified DBE in Washington State you will be eligible for limited DBE SupportServices (SS) funding when these funds become available At that time funds may become availableto assist you in your struggle to attain ICR eligibility Here is a link to WSDOTrsquos Indirect Cost RateTraining httpswwwwsdotwagovAuditICRTraininghtm If you would like me to find additionaltraining or information please let me know

If I can provide additional assistance of information please let me know

Best Regards

Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Michelle Wolcott [mailtoMichelleWolcottred-plainscom] Sent Tuesday October 31 2017 835 AMTo WSDOT Disparity Study ltDisparityStudyWSDOTWAGOVgtSubject DBE Contracting Goal Comments

HelloI have been in contact with WSDOT for 6 months sharing my disparaging story of beinga small DBE unable to submit SOQs for projects requiring a WSDOT Audited IndirectCost Rate Approval We do not have an in-house accountant and our outsideaccountant has explained to get all the paperwork together for WSDOT would take 40hours of work $9000 annually We cannot justify this cost to submit on a project thatwe may not acquire We have been directed to seek financial assistance from WSDOT Federal SBA andWashington State Office for Women and Minority Owned Enterprises all of whichprovided negative responses

As a DBE business in 11 states we are supporting the 19 incentive for federallyfunded contracts but we are frustrated in the fact that we will not be one of the luckyfew to participateWe have been in business 20 years From our Vancouver Washington office our clientsare the Native American tribes across the country with all contracts federally funded This summer alone the WSDOT ICR Approval has squashed our ability to submit on twoprojects that we were perfectly qualified to performI have attached previous emails to show a sample of who I have been dealing with

Thank you

Michelle Wolcott EIT Quality Control Engineer

ltimage001pnggt

2103 NE 129th Street Suite 201 Vancouver WA 98686 Office (360) 448-7999 Fax (360) 258-0274 wwwred-plainscom

From Michelle Wolcott Sent Monday July 10 2017 954 AMTo Harvey Schatzie ltHarveySwsdotwagovgtSubject RE WSDOT Indirect Cost Rate Process

Good Morning Schatzie

This is Michelle Wolcott from Red We spoke Friday June 30th about the ICRprocess and you were very encouraging I relayed the information to my boss who ishere in Vancouver then he shared with the president bookkeeper and our accountantin Oklahoma We had FAR compliance with Oklahoma DOT in 2015 so we are noteligible for the Safe Harbor Program Our account said our timekeeping system doesnot breakdown the hours and pay in the format WSDOT wants to have it presented andto get the documents in order would take the CPA and an assistant $9000 in paidhours of work It turns out this would have to be annually The other option is to hirean outside CPA firm to do the audit for us at $20000 annually

Our president said in the past we received funding assistance from the Stateof Oklahoma to get our ICR approval Does WSDOT offer any financial assistance for small businesses to reach compliance We are also a DBE in WA I have requested the same information from WA PTAC at theVancouver Chamber of Commerce and from WA Office of Minority and Women OwnedBusiness Enterprises and they both said there was nothing but suggested to askWSDOTThank you for your helpMichelle Wolcott EIT

Hello Michelle sorry but I am not aware of any grants But I was looking at this andthere is a POC at the bottom you may try to discuss the audit issuesHollyHolly BoehmeBusiness Opportunity Specialist | 8(a) Business Development ProgramUS Small Business Administration bull Seattle District Office

Hello Michelle -

Thank you for your email Im not aware of any funding available for thispurpose but do agree its quite a bit for a DBE firm to have as an expense Mostof the firms I work with do a lot more work on the Oregon side so perhaps thereare programs available that I just havent heard of Im copying my colleagueHoly Boehme in our Seattle District Office to see if they are aware of any suchassistance

Holly might there be some small business incubators or other resources availablein WA to help a small firm with the expense of getting a WSDOT AuditedIndirect Cost Rate approval Please reply all with anything you may have

Thank you

Yuri Yoshida Dyson Business Opportunity SpecialistUS SMALL BUSINESS ADMINISTRATION Portland District OfficePhone 503-326-6692 Fax 202-292-3872 wwwsbagovor

From Troy HalbergTo Bayne JackieSubject Re DBE Goal CommentsDate Wednesday December 13 2017 35533 PM

JackieToday was another example of why the goals should not be raised There were 2 jobs which Iwas low on and did not get due to the high goals This is exactly what will happen when thegoals get raised The first job was the 9180 Anacortes Ferry Paving Northeast Electric $244924 and UDBE $318000 Second job was the 9172 SR 9 East Junction Job Northeast Electric $68503 and UDBE $76300

Does this seem like a good way to spend the tax payer money I do not see how we are tosurvive if the goals get to 21

Thanks

Troy HalbergOffice360-225-7004Cell360-931-3990Fax360-225-7001

On Thu Nov 30 2017 at 1131 AM Bayne Jackie ltBayneJwsdotwagovgt wrote

Good Morning Troy

Thank you for taking the time to provide us with your experiences with the DBE Program TheWashington State Department of Transportation takes the public involvement process veryseriously and your comments will be taken into consideration prior to a final decision regardingthe overall DBE program goal

If I can be of further assistance please let me know

Best Regards

Jackie Bayne

Policy and Reporting Manager

WSDOT Office of Equal Opportunity

Work (360) 705-7084

Cell (360) 338-5783

BayneJwsdotwagov

From Troy Halberg [mailtotroyhnellcnet] Sent Wednesday November 29 2017 144 PMTo WSDOT Disparity Study ltDisparityStudyWSDOTWAGOVgtSubject DBE Goal Comments

If these goals are to be set that high this would make us as a non DBE small contractor at amajor disadvantage With these high of goals this is like handing all of the DBE electricalcontractors every job These general contractors will have no option but to use thembecause of the goals This should not go into effect We have been low on several jobs in thepast and have not gotten them do to the goals being 18 When this goes on it puts all therest of us contractors at a disadvantage Please consider the smaller non DBE contractorsthat are looking to survive as well

Thanks

Troy Halberg

Office360-225-7004

Cell360-931-3990

Fax360-225-7001

From Daniel Seydel IITo Bayne JackieCc Key Earl daneiwashingtonorg Nadeem Ismail Mussie Tewelde (mteweldehydro2geotechcom)

graceflyrightaolcom Mary Wenner Watkinson LarrySubject Re Seydel Dan - WSDOT Disparity Study Presentation Public TestimonyDate Friday December 8 2017 30323 PM

Jackie

It was my hope that the comments would be put into record I was also hoping that you wouldnot have to be the one having to formulate responses for each clarification If that is the caseI know you are swamped and will then I just ask my comments be only part of the recordHowever if there is dedicated staff that is going to be compiling and responding to theclarification then the below questions would be the priorities of most interest

These were questions unrelated to the disparity study and hopefully should be doable

1) Do you have any reports on your outcomes from the past 5 years on DBE support servicesand specific key performance measures from previous years funding (ie how many firmsutilized what was the objectives were objectives met did outcomes meet total satisfaction ifnot why next steps what was the firms capacity before and after services were performed (iesales employees bonding if applicable insurance equipment line of credit if applicablenumbertype of customers how are they doing now etc))

2) What other changes or improvements other than allowing DBES to select their own serviceproviders and a staff change will be a part of this new program

3) Was consideration to provide the new mentor protege consultant rather than separating theactivities into support services andor technical assistance

Disparity study clarifications

1) Will WSDOT consider sponsoring legislation to support the policy changes and goalincreases to insure manditory goals wont be necessary

a) If not what measures will you grant primes to operate outside the box (ie entertain bestvalue over low bid modify responsiveness by subs to require adherence to meeting voluntarygoals developing standards around federally funded gccm and other low bid procurementsthat give powers to primes to meet objectives including but not limited to mentor protegerelationships joint ventures bond waiving techniques cash flow assistance material andequipment acquisition manufacturer development specifications that have only DBES orinclude equal number of DBES as non DBES as approved installers etc)

2) Will the disparity study consultant be available for implementation or information gatheringfrom other regions

5) Will WSDOT be hiring more diverse staff amp professionaltechnical service providers inother departments outside OEO to insure policies commitments and evaluations areperformed in manner that improves diversity that reflects the communities WSDOT serves bythoughtful and legal efforts increase participation thus creating successful outcomes includingpartnerships and collaborations

Thank you and Merry Christmas

Hi Dan

Thank you for providing such thoughtful public comments questions and testimony

Regarding your public testimony below - I do not believe I am not able to answer questions ifthey are public comments Please let me know what part of this email you would likeclarification on and what part you would like considered public testimony

I appreciate your thoughtful consideration of WSDOTrsquos implementation of our civil rightsprograms

Best Regards

Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

DIDaniel Seydel IIFyi Daniel J Seydel II Platinum Group LLC 2064060844 f) 2062999934wwwplatinumbusinessgroupcom Small Business is the Answer FREE TRAINING FORENTREPRENEURS amp JOB SEEKERS - Polish your skills or make your firm standout thanksto the EntrepreneurialThu 233pDI

Daniel Seydel IIThu 1272017 1123 AMInbox Sent ItemsShow all 7 recipientsTobaynejwsdotwagov ltBayneJwsdotwagovgtJackie

Per your request below are my questions and comments some of which were verbally sharedyesterday

Congratulations on receiving the blessing of additional technical assistance dollars andcompleting the DBE Disparity Study per your report

1) Do you have any reports on your outcomes from the past 5 years on DBE support servicesand specific key performance measures from previous years funding (ie how many firmsutilized what was the objectives were objectives met did outcomes meet total satisfaction ifnot why next steps what was the firms capacity before and after services were performed (ie

sales employees bonding if applicable insurance equipment line of credit if applicablenumbertype of customers how are they doing now etc))

2) What other changes or improvements other than allowing DBES to select their own serviceproviders and a staff change will be a part of this new program

3) Was consideration to provide the new mentor protege consultant rather than separating theactivities into support services andor technical assistance

Disparity study clarifications andor comments

1) Will WSDOT consider sponsoring legislation to support the policy changes and goalincreases to insure manditory goals wont be necessary

a) If not what measures will you grant primes to operate outside the box (ie entertain bestvalue over low bid modify responsiveness by subs to require adherence to meeting voluntarygoals developing standards around federally funded gccm and other low bid procurementsthat give powers to primes to meet objectives including but not limited to mentor protegerelationships joint ventures bond waiving techniques cash flow assistance material andequipment acquisition manufacturer development specifications that have only DBES orinclude equal number of DBES as non DBES as approved installers etc)

2) Will the disparity study consultant be available for implementation or information gatheringfrom other regions

3) What lessons did WSDOT learn that it did not know from the other study(s)

4) What would WSDOT do different (ie scope time line process approach etc)

5) Will WSDOT be hiring more diverse staff amp professionaltechnical service providers inother departments outside OEO to insure policies commitments and evaluations areperformed in manner that improves diversity that reflects the communities WSDOT serves bythoughtful and legal efforts increase participation thus creating successful outcomes includingpartnerships and collaborations

Daniel J Seydel IIPlatinum Group LLC 2064060844f) 2062999934wwwplatinumbusinessgroupcom

Small Business is the Answer

FREE TRAINING FOR ENTREPRENEURS amp JOB SEEKERS - Polish your skills or makeyour firm standout thanks to the Entrepreneurial Institute of Washington

httpswwwyoutubecomchannelUCKL5YeVxL29HnNxqnb6hmXA

LIKE US on FaceBook if an Active Professional Development workshop provided by EIW

Construction University helps your firm or has benefited you

httpswwwfacebookcomEIWashingtonref=hl

From Bayne Jackie ltBayneJwsdotwagovgtSent Friday December 8 2017 10139 PMTo Daniel Seydel IICc Key Earl daneiwashingtonorg Nadeem Ismail Mussie Tewelde(mteweldehydro2geotechcom) graceflyrightaolcom Mary Wenner Watkinson LarrySubject RE Seydel Dan - WSDOT Disparity Study Presentation Public Testimony Hi Dan Thank you for providing such thoughtful public comments questions and testimony Regarding your public testimony below - I do not believe I am not able to answer questions if theyare public comments Please let me know what part of this email you would like clarification on andwhat part you would like considered public testimony I appreciate your thoughtful consideration of WSDOTrsquos implementation of our civil rights programs Best Regards Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov From Daniel Seydel II [mailtodanplatinumbusinessgroupcom] Sent Thursday December 7 2017 1123 AMTo Bayne Jackie ltBayneJwsdotwagovgtCc Key Earl ltKeyEwsdotwagovgt daneiwashingtonorg Nadeem Ismailltnipaintingearthlinknetgt Mussie Tewelde (mteweldehydro2geotechcom)ltmteweldehydro2geotechcomgt graceflyrightaolcom Mary Wennerltmwenn0108yahoocomgtSubject Seydel Dan - WSDOT Disparity Study Presentation Public Testimony Jackie

Per your request below are my questions and comments some of which were verbally sharedyesterday

Congratulations on receiving the blessing of additional technical assistance dollars andcompleting the DBE Disparity Study per your report

1) Do you have any reports on your outcomes from the past 5 years on DBE support servicesand specific key performance measures from previous years funding (ie how many firmsutilized what was the objectives were objectives met did outcomes meet total satisfaction ifnot why next steps what was the firms capacity before and after services were performed (iesales employees bonding if applicable insurance equipment line of credit if applicablenumbertype of customers how are they doing now etc))

2) What other changes or improvements other than allowing DBES to select their own serviceproviders and a staff change will be a part of this new program

3) Was consideration to provide the new mentor protege consultant rather than separating theactivities into support services andor technical assistance

Disparity study clarifications andor comments

1) Will WSDOT consider sponsoring legislation to support the policy changes and goalincreases to insure manditory goals wont be necessary

a) If not what measures will you grant primes to operate outside the box (ie entertain bestvalue over low bid modify responsiveness by subs to require adherence to meeting voluntarygoals developing standards around federally funded gccm and other low bid procurementsthat give powers to primes to meet objectives including but not limited to mentor protegerelationships joint ventures bond waiving techniques cash flow assistance material andequipment acquisition manufacturer development specifications that have only DBES orinclude equal number of DBES as non DBES as approved installers etc)

2) Will the disparity study consultant be available for implementation or information gatheringfrom other regions

3) What lessons did WSDOT learn that it did not know from the other study(s)

4) What would WSDOT do different (ie scope time line process approach etc)

5) Will WSDOT be hiring more diverse staff amp professionaltechnical service providers inother departments outside OEO to insure policies commitments and evaluations areperformed in manner that improves diversity that reflects the communities WSDOT serves bythoughtful and legal efforts increase participation thus creating successful outcomes includingpartnerships and collaborations

Thank you for your hard work

Daniel J Seydel IIPlatinum Group LLC2064060844f) 2062999934wwwplatinumbusinessgroupcom

Small Business is the Answer

FREE TRAINING FOR ENTREPRENEURS amp JOB SEEKERS - Polish your skills or makeyour firm standout thanks to the Entrepreneurial Institute of Washington

httpswwwyoutubecomchannelUCKL5YeVxL29HnNxqnb6hmXA

LIKE US on FaceBook if an Active Professional Development workshop provided by EIWConstruction University helps your firm or has benefited you

httpswwwfacebookcomEIWashingtonref=hl

From Erin EhlingerTo Bayne JackieSubject Support for WSDOTs proposed DBE goalDate Wednesday December 13 2017 115417 AM

I am writing to support the WSDOT recommended DBE Goal for FHWA contracts of 190 I also want to express my appreciation for the thoroughness of the WSDOT Disparity study and howthe study disclosed the disparity in WSDOT contracts that do not have a DBE or WBE goal ndash furtherreinforcing that all women-owned firms and minority owned firms face equity issues I remain concerned with the methodology required by the Code of Federal Regulations and case lawbecause of the dependence on the availability of firms in the calculation An unintendedconsequence of removing either gender or race from the goal is that many of these firms would goout of business the availability decreases and the formula then results in a smaller DBE goal Pleaselet me know how I can help influence a change to the CFR Thank you Erin Ehlinger

Erin Ehlinger PEPresident

24036 SE 47th StSammamish WA 98029erinehlingersmartcitytrafficcom425-221-0320

From Jackie EtterTo WSDOT Disparity StudySubject Why we need mandatory goalsDate Friday December 1 2017 61859 PM

As a DBE participating in bidding process I have found that regardless of the language which claims to insurethat disadvantaged business enterprises shall not be discriminated against the only way to ensure that this does nothappen is by mandating affirmative action goals Having been overlooked time and time again because of my gender when I have submitted bids that are verycompetitive with other bidders is very frustrating I have had many instances of companies using my price to getmy non DBE competitors to lower theirs The voluntary or laudatory DBE goals do nothing to ensure a level playing fieldThe only way to ensure non-discrimination is through mandatory goals

Jackie EtterWest Star Construction of Spokane

Sent from my iPhone

From Claudia HirscheyTo Key Earl Bayne JackieSubject WSDOT DBE Goal - Comment in supportDate Tuesday December 12 2017 61937 PM

Dear Earl and Jackie The WSDOT recommended DBE Goal for FHWA contracts of 190 is a small and important increasethat can further achieve equity in WSDOTFHWA contracting I am in support of the 19 DBE Goal I also want to express my appreciation for the thoroughness of the WSDOT Disparity study and howthe study disclosed the disparity in WSDOT contracts that do not have a DBE or WBE goal ndash furtherreinforcing that all women-owned firms and minority owned firms face equity issues I remain concerned with the methodology required by the Code of Federal Regulations and case lawbecause of the dependence on the availability of firms in the calculation An unintendedconsequence of removing either gender or race from the goal is that many of these firms would goout of business the availability decreases and the formula then results in a smaller DBE goal Sincerely Claudia S Hirschey PETransportation Consulting Servicesclaudiahirscheycomcastnethttphirscheytcscom2068564988 Mobile

From Nate ThomasTo WSDOT Disparity StudySubject WSDOT Proposes DBE goal of 19Date Thursday December 7 2017 42720 PM

The WSDOT should look into similar ways the Federal Gov has handled the equal opportunity forthose that fall under the DBE status and set aside specific projects for the DBErsquos and moreimportantly UDBErsquos so these companies have better chance of landing contracts Maybe a lot 10 ofthe DBE goal to set aside for only DBEs and other 9 goal met as it is done currently with COA onlarger contracts Nate ThomasSenior EstimatorD 5095688085 | C 5099941156331 North Fancher Road | Spokane WA | 99212

The information contained in this email including any attachments is confidential and may beprivileged It is intended only for the person or entity to which it is addressed and no waiver isintended by sending this email If the reader is not the intended recipient you are herebynotified that any review retransmission dissemination or other use of or taking any action inreliance upon this information is strictly prohibited If you have received this email in errorkindly notify the sender by reply email and delete the original message from any computerThank You

From Brian FujiiTo WSDOT Disparity StudySubject WSDOT propsed DBE GoalsDate Thursday December 7 2017 110638 AM

Good morning Jackie

I wanted to comment on WSDOTs proposed DBE goal to 19 I believe WSDOTs plan toincrease the overall DBE goal to 19 will provide greater opportunities for DBE contractorsin different disciplines to participate in federally funded contracts

Without the new DBE requirement and with Proposition 200 there are limited opportunitiesfor DBE contractors in disciplines different than the typical trucking flagging and rebar Inaddition there are no incentives for general contractors to go out beyond the usual truckingflagging and rebar DBE subcontractors

Increasing the DBE goals will provide opportunities for different DBE contractors in differentdisciplines to participate in WSDOT federally funded projects

Thank you for your time

RespectfullyBrian FujiiPresident Subsurface ConstructionP 2063836478F 2069604639MDBE 4M0024998

From Forman StephanieTo Bayne JackieCc Millar Roger christinenhanmailhousegov Claudia Hirschey Sarah Corbin Jiang Yingle

efaulknerenviroissuescom Diana Giraldo Kelly CheesemanSubject WTS - Disparity Study Comment LetterDate Friday December 15 2017 71020 PMAttachments 2017_Dec 15_WTSCommentLetter_WSDOT DBE Goalpdf

Dear Ms Bayne Please find our attached letter which summarizes the WTS Puget Sound Chapterrsquos support foradvancement of women in transportation and our comment letter regarding the recent DisparityStudy Please feel free to contact me if you have any questions or would like to discuss Sincerely Stephanie S Forman PEWTS Puget Sound President Transportation Project Manager

929 108th Avenue NE Suite 1300Bellevue WA 98004D 4254681548 M 2062291745stephanieformanhdrinccom

December 15 2017

Jackie Bayne Policy and Reporting Manager

Office of Equal Opportunity

Washington State Department of Transportation

PO Box 47314

Olympia WA 98504-7314

Dear Ms Bayne

On behalf of the Puget Sound Chapter of Womenrsquos Transportation Seminar (WTS) we would

like to thank the Washington State Department of Transportation for presenting to our

organization the DBE Disparity Study results We very much appreciated the presentation by Earl

Key Director of WSDOTrsquos Office of Equal Opportunity Teresa Berntsen (Director Office of Minority

and Womens Business Enterprises) as well as Leslie Jones (Director Sound Transit Office of Small

Business Development and Labor Compliance)

Following a review of the WSDOT Disparity Study and as a result of consultation with WTS

International we would like to provide WSDOT with our comments for your consideration

As you know WTS is an organization focused exclusively on attracting retaining and advancing

women in transportation By the year 2018 there will be thousands of vacancies in the

transportation industry for qualified professionals and while women account for more than half of

the worldrsquos workforce they are a very small minority in transportation disciplines

We are pleased that the outcome of the 2017 Disparity Study that recognizes the on-going barriers

for DBEs including women-owned businesses in transportation The WSDOT recommended DBE

Goal of 190 is a small and important increase that can further achieve equity in WSDOTFHWA

contracting We are also pleased that the 2017 Disparity Study has documented the disparity in

WSDOT contracts that do not have a DBE or WBE goal ndash further reinforcing that all women-owned

firms and minority owned firms face equity issues We are encouraged that the WSDOT has asked

FHWA to rescind the 2016 waiver

While WTSrsquo mission is specific to the advancement of women we are a race-neutral organization To

this end we are also deeply concerned about the underutilization of minority owned firms There is

no equity or ldquofair playing fieldrdquo without equity for all gender and races We remained concerned with

the methodology required by the Code of Federal Regulations and case law because of the

dependence on the availability of firms in the calculation An unintended consequence of removing

either gender or race from the goal is that many of these firms would go out of business the

availability decreases and the formula then results in a smaller DBE goal This consequence is

contrary to our mission

We look forward to our continued participation in WSDOTrsquos DBE advisory group we are anticipating

notice that the 2016 waiver has been rescinded and how we can work together to continue

advancing minority and women-owned firms in the transportation field

Sincerely

WTS Puget Sound Chapter

Stephanie Forman

President

C Roger Millar Secretary WSDOT

C Representative Adam Smith 9th Congressional District Washington co Christine Nhan

WTS Puget Sound Chapter

PO Box 3461

Bellevue Washington 98009

From Dave Gent - WAPATo Bayne JackieCc Tom GaetzSubject WAPA Public Comments - RE WSDOT FHWA Disadvantaged Business Enterprise Proposed GoalDate Friday December 15 2017 14119 PMAttachments 12152017 DBE Proposed Goal - WAPA Public Comments Letterpdf

Good afternoon Jackie Please find attached WAPArsquos ldquofor the public recordrdquo comments with respect to WSDOTrsquos proposedDBE Goals FHWA funded work I assume that the Master DBE Directory was not sent to you this week so as a result we were notable to review the directory before the close of the public comment period That fact is noted withinour comment letter Thank you for your efforts Have a good weekend

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Friday December 8 2017 1219 PMTo Dave Gent - WAPA ltdavegentasphaltwacomgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hello Dave WSDOT did not take possession of this directory as part of our review process We will provide youwith the records without submitting a formal request However we need to get them from theconsultant first I will hopefully have them to provide next week I will keep you updated on therequest Have a nice weekend Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal Opportunity

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

December 15 2017

Jackie Bayne Policy Manager WSDOT Office of Equal Opportunity Delivered via e-mail to BayneJwsdotwagov RE Public Comment (as requested) to Proposed Overall DBE Goal for the FHWA (2018 ndash 2020) Ms Bayne Thank you for your presentation via webinar on December 5 2017 outlining WSDOTrsquos evaluation process used to determine the proposed overall DBE goal for the FHWA Thank you also for the Colette Holt amp Associates (CHA) DBE Advisory Group presentation made on September 14 2017 Both presentations helped to distill the findings of the 2017 Disparity Study produced by CHA In response to Earl Keyrsquos initial informal request to comment on the proposed overall DBE goal made during the DBE Advisory Committee teleconference held on October 12th we provided a list of reasons that we believe justify a lower DBE goal than is now being proposed Our initial response to Mr Keyrsquos request did not serve to influence WSDOT and the current proposed goal remains at 190 The arguments provided on October 12th against the significant increase in the proposed DBE goal (versus the previous goal and recent historic DBE participation) are repeated and supplemented below and will serve as the Asphalt Pavement Associationrsquos (WAPArsquos) official public comments

In concert with WSDOT and the OWMBE WAPA and the construction firms that WAPA represents have demonstrated a commitment to the principals of equal opportunity for all ldquoready willing and ablerdquo firms for the entire history that our DBE program has been in place WAPA has continuously demonstrated its commitment to the goals of the DBE program and for increasing the representation of disadvantaged groups within our industry as both workers and owners of firms Please recognize that WAPArsquos oversight and critique of the DBE program has always attempted to balance the principals of fair and open competition with the practical aspects of the low bid compressed schedule high performance standards demanded within the WSDOT marketplace Our comments below are meant to enhance WSDOTrsquos and OWMBErsquos understanding of the market and to hopefully have WSDOT fully consider all of the dynamics that are at play when proposing its Triennial DBE goal for FHWA projects Current DBE Capacity vs Historically Robust Market In advocating for a realistic and defensible DBE goal it has always been WAPArsquos position that it is paramount that the realities of the marketplace and true certified DBE subcontracting capacity should be a primary standard While a ldquostretchrdquo goal may appear to be progressive on its face it comes with consequences for all of the parties involved in the WSDOT federal aid contracting arena To balance the dynamics of the WSDOT contracting system the DBE goal should be tempered with the realities of the market and with a true measure of the underlying effectiveness of the DBE support services available to contractors

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 2 of 6 The first point of fact that has not been given any apparent consideration by WSDOT in its evaluation of the current capacity of certified DBErsquos is that there is an historically robust workload scheduled to be performed in the 2017 through 2022 time-frame particularly in the Puget Sound ldquoEverett to Olympiardquo corridor By WSDOTrsquos own estimates (see Attachment A) public works construction project starts in the 2018 to 2022 time-frame in this region will exceed $333 billion (B) counting the work projected from just five public entities WSDOT will be taking a decidedly ldquoback seatrdquo role during this period to Sound Transit which will have construction project starts of $226B vs WSDOTrsquos projected volume of $67B WSDOTrsquos summary publication titled Washington State Department of Transportations Proposed Federal Highway Administration Triennium Disadvantaged Business Enterprise Goal Federal Fiscal Years 2018-2020 states correctly that ldquoIncluded among the types of evidence that must be considered are the current capacity of DBEs to perform work on WSDOTrsquos federally-assisted contracts as measured by the volume of work DBEs have performed in recent yearshelliprdquo (Step Two Adjustment discussion) With the Sound Transit program being over 300 larger than the total WSDOT program in this region a sober assessment of true certified DBE capacity in the next three years needs to be considered by WSDOT If the huge construction boom over the next five years does not prompt a Step Two Adjustment then it becomes obvious that the realities of the market are being ignored by WSDOT for DBE goal setting Put another way if the 2018 through 2022 level of contracting activity does not warrant a goal adjustment what will DBE Access Barriers Not Yet Addressed The CHA 2017 Disparity Study points out multiple recommendations in Section VII that impact DBE participation and access to the market Assessments relating to those impacts and the state of maturity in addressing the CHA recommendations should be considered when assessing the DBE goal Many of the CHA recommendation have not been adequately addressed at this point in time Some of the prime examples are listed below Increase Certification and Expertise ndash The Disparity Study as explained to us includes all minority- (MBE)

and women-owned (WBE) firms that could be readily identified that perform work within Washington State and that perform work within the NAICS code framework CHA developed to cover WSDOT project work During the various presentations relating to the Disparity Study WSDOT representatives said that outreach to currently non-certified MBE amp WBE firms has increased and that WSDOT aspires to bolster its list of certified firms in the future but this effort is just beginning and the success of the effort needs to be means tested against the broader population of MBE amp WBE firms included in the CHA base line evaluation As the Disparity Study uses a much broader population of MBE WBE contractors to arrive at its conclusions (both non-certified firms and firms too large for certification) it follows that the calculated DBE proposed goal is overstated to include capacity that does not currently exist within WSDOTrsquos certified DBE framework Unless OMWBE is experiencing sudden and unprecedented success in recruiting new MBEWBE firms the DBE goal should be adjusted downward to recognize that the ldquoready willing and ablerdquo contractors that WSDOT has certified is only a subset of the total MBEWBE contracting population used in the Disparity Study evaluation

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 3 of 6

Until the promised WSDOT outreach registration efforts result in a substantial increase in available certified DBE firms it is premature to count the entire population of minority- and women-owned contractors as available to participate in WSDOT contracting It is unreasonable for WSDOT to project availability capacity using the entire MBEWBE population when only its currently truncated list of certified firms is acceptable to count toward the DBE goal

A corollary to the Increase Certification and Expertise discussion above is that the calculation of the Base Figure evidently includes the broadest practical population of MBE and WBE firms identifiable (without a review of the CHA Master DBE Directory which has not been supplied prior to the close of the public comment period the scope of the directory cannot be ascertained) If this directory includes a large population of MBEWBE firms that are not certified or are too large to be certified then the Base Figure calculation should be adjusted to reflect that certified DBE firms are a fraction of the total MBEWBE firms used to arrive at the 19 suggested DBE goal With respect to the CHA Master Directory it is our understanding the WSDOT was not given the directory as part of its evaluation of the Disparity Study and it follows that it did not evaluate the proposed DBE goal in the context of the CHA Master DBE Directory In our opinion an informed decision on adjusting the CHA baseline goal calculation can only be done after an extensive evaluation of the CHA Master DBE Directory If this has not been done WSDOT has not exercised due diligence in evaluating the context and underpinnings of the CHA Disparity Study and a certified DBE Triennium goal proposal to the FHWA is premature Increase Contract ldquoUnbundlingrdquo ndash If this proposed strategy (suggested by the CHA Study) is undertaken

certified DBE Subcontractors currently available will be engaged as Prime Contractors and the value of their prime contracts will bolster the overall percentage of certified DBE contracting but a systematic effort and strategy to ldquounbundlerdquo has not been articulated by WSDOT The key question of how this effort can be accomplished without increased cost to the taxpayers and increased inconvenience for the traveling public As noted in the CHA study (page 129 final paragraph) ldquoUnbundling must be conducted however within the constraints of the need to ensure efficiency and limit cost to the taxpayersrdquo As of this writing no overarching strategy for further unbundling with proper accountability has been articulated by WSDOT to the DBE Advisory Group

Review Insurance and Experience Requirements ndash Impediments to certified DBE participation due to

necessary insurance and experience standards cannot be solved by the prime contracting community Unless and until WSDOT puts together programs to address the burden of the substantial risks shouldered by Prime Contractors on WSDOT contracts barriers for streamlined utilization of certified DBE firms will continue to exist These market driven barriers will continue to dampen the availability of certified DBE Subcontractors that are able to perform within WSDOTrsquos strict criteria without unduly transferring risk to the Prime Contractor

Better Partnering to Overcome DBE Failures to Perform ndash Prime Contractors are held fully responsible to maintain the project schedule and are subject to project liquidated damages even when they may be struggling to deal with Subcontractor performance issues It is well-established that replacing a certified ldquocondition of awardrdquo (COA) DBE Subcontractor is very onerous and likely very costly to the Prime Contractor Unfortunately the imposition of strict and often counter-productive commercially useful function (CUF) rules often compound this issue as Prime Contractors cannot help COA DBE Subcontractors work through capacity expertise or time-related issues that impact timely performance

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 4 of 6

WSDOT needs to be a much better partner in the process of dealing with under-performing or non-performing certified DBE Subcontractors The current standard operational procedure places all of the exposure for non-performance onto the Prime WSDOT does not have an equitable system to account for non-performing or under-performing certified DBE Subcontractors hired as a condition of award (COA)

Performance Information and Training ndash Commercially useful function rules (CUF) and the lack of clear benchmark definitions for good faith effort (GFE) standards remain barriers for improving accountability within the DBE system and in turn lead to distorted DBE participation rates These items remain amorphous due to lack of training or lack of historic information Chronic uncertainty exists regarding both of these items Until WSDOT changes and improves its approach to provide transparency and certainty for both the prime bidding amp subcontracting parties true certified DBE capacity will continue to be masked and the resultant higher subcontracting costs associated with a distorted marketplace will continue to be hidden

WAPA respectfully suggests that simply adding an ldquoEstimated DBE Subcontract Premiumrdquo line to the current DBE bid forms would help to establish benchmarks that could begin to be used to ldquomeans testrdquo good faith efforts If this information had been gathered over the last 20 years of the DBE program meaningful GFE standards could have been developed and could be in place today

An in-depth review of CUF standards would also provide clarity For instance it is unclear why force account items performed by certified DBEs are currently counted at only 50 of the value of the work How was this benchmark established Has it been reviewed since imposed Did it ldquosolverdquo whatever inequity WSDOT was trying to address Better clarity may lead to more expanded opportunities for certified DBE Subcontractors

Enhanced Supportive Services and Business Development Programs ndash Unless and until stronger programs of these types are shown to be effective in boosting certified DBE business development increased DBE participation due to stronger business acumen should not be relied upon when setting the new DBE goal

Does OMWBE have a reasonable expectation that future plans for enhanced and expanded programs will be more successful than those employed in the past Assuming that certified DBE Subcontractors will be better prepared to deal with the WSDOT contracting environment than in the past should not be relied upon to boost DBE participation goals Especially troubling were the multiple references within the CHA report highlighting that DBEs believe that the staff at OMWBE lack a deep knowledge about the highway construction industry (eg Study page 129 2nd paragraph) Does OMWBE have a path forward that will address this issue and thus improve supportive services impacts

Develop a Bonding and Financing Program for SBEs ndash This is completely outside of the prime contracting

communityrsquos scope of influence WSDOT must find a way to institute changes that both protect the taxpayer and help increase certified DBE bonding capacity and access to financing ndash very large hurtles To assume that these hurtles can effectively be overcome within the 2018 ndash 2020 time frame when they have been chromic issues for the past 20 plus years of DBE program development is not rational

A helpful innovation would be for WSDOT to underwrite performance and payment bonds for certified DBE firms or to create promote a system that helps certified DBE firms obtain private bonding Bridging the gap to address capital access and performance risks (bonding) must be championed by WSDOT

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 5 of 6

Base Figure Adjustment to Address Available Subcontract Volume and DBE Prime Contracts It is a fact that mid- to large-sized MBEWBE firms that compete both as Prime Contractors and as Subcontractors are not eligible to be OMWBE certified DBEs Further the current amount of contract unbundling for greater DBE access to WSDOT prime contracting (see below) accounts for a very low dollar volume of prime contracts performed by certified DBEs Finally by specification (WSDOT standard specification 1-081) Prime Contractors are obligated to perform 30 of the total volume of the work (less specialty work) or stated another way a maximum of 70 of the dollar volume on WSDOT projects is typically available to award to subcontractors These market dynamics are NOT addressed in the Disparity Study A responsible DBE goal made absent of these facts should not be implemented A reasonable adjustment to the proposed 19 DBE goal is presented below

bull The percent of WSDOT prime contracts awarded to certified DBE firms is likely less than 5 by total WSDOT

contract volume Assuming this approximation is valid (likely very conservative) then the amount of WSDOT contract work available to certified DBE firms via subcontracting should be adjusted to account for the factors outlined above The Base Figure (19) should be adjusted to recognize that a 70 maximum subcontractor participation is available (in the numerator) and to account for the assumed 5 certified DBE prime contracts in the denominator Reasonable Base Figure Adjustment 19 (proposed) x 70 subcontracts available divide 95 of Non-Certified DBEs as Prime Contract Volume = 190 x 0737 = 140 adjusted goal This is an adjustment based on the practical dynamics of the WSDOT contracting system and it represents a more realistic look at the true subcontract volume that is available for Prime Contractors to award to certified DBE firms

Conclusions

Until the items listed above are addressed and in place it is not reasonable to believe that DBE goals can be increased by nearly 163 (from 117 to 190) When the projected robust public works contracting market is appropriately considered the true availability of certified DBE Subcontractors for WSDOT contracts will be truncated due to demand across all public works sectors With multiple strong public works programs competing for a limited population of certified DBEs the ability to meet increased WSDOT DBE goals will be severely challenged Without very clear concise and transparent good faith effort rules the ability to address DBE goals that greatly overestimate true near term certified DBE capacity will result in non-attainment bid day chaos failures to perform andor rapidly increased pricing

The clear conclusion is that at this point in time under the current circumstances without effectively instituted new programs rules procedures that could enhance the certified DBE programrsquos overall effectiveness we believe that the DBE goal should remain at or near 12 As OMWBE documents and demonstrates its future successes in improving access and eliminating capacity barriers only then should the DBE goal be re-evaluated and increased

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 6 of 6

In closing please remember that it is rare that the contracting community is asked our opinion with respect to the WSDOTrsquos DBE policies and so this letter is somewhat a vehicle to highlight collective concerns It is our belief that the majority of the Prime Contractors in Washington state support the objective of creating a level playing field for ready willing and able DBEs

If the level playing field is not yet possible in the absence of the DBE program then the key is to set realistic goals that recognize reflect and address the hard realities and market dynamics imposed by WSDOTrsquos bedrock environment of awarding contracts to the lowest cost responsible and responsive Contractor

Respectfully submitted Washington Asphalt Pavement Association

David Gent Tom Gaetz Executive Director Senior Advisor

Attachment A ndash WSDOT Central Puget Sound Public Works Contracting Projection 2018 - 2022

Con

stru

ctio

n Pr

ojec

t Sta

rts

2018

-202

2S

ound

Tra

nsit

$22

6 B

SD

OT

$08

B

Tran

sit

amp O

ther

s$1

7 B

WS

DO

T$6

7 B

Por

t of

Sea

ttle

$15

B

TOTA

L$3

33

B

Source N

ov 1

9 2

017

pres

enta

tion

to W

APA

Ann

ual M

eetin

g

Attachment A

Work (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Dave Gent - WAPA [mailtodavegentasphaltwacom] Sent Thursday December 7 2017 144 PMTo Bayne Jackie ltBayneJwsdotwagovgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hi again Jackie Irsquom fine thanks and hope you are the same Interesting The Master DBE Directory is the basis for and integral to the conclusions of the DisparityStudy Is it not then part of the information needed to fully review and comment on the DisparityStudy Was it not provided by CHA to WSDOT for review We are trying to fully understand thestudy and if this directory was part of the study why would it need to be obtained by a publicrecords disclosure It should be in the public domain and not restricted from ease of access If you are sure that a public records request is needed Irsquoll start that process but we will need tonote that point of fact when we submit our public comments If you are able to reconsider please let me know Respectfully

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Thursday December 7 2017 126 PMTo Dave Gent - WAPA ltdavegentasphaltwacomgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hello Dave I hope you are doing well

That information would likely be obtained through a public disclosure request Best Regards Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Dave Gent - WAPA [mailtodavegentasphaltwacom] Sent Thursday December 7 2017 113 PMTo Bayne Jackie ltBayneJwsdotwagovgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Jackie Can you please provide an electronic file or provide a weblink for the Master DBE Directory thatColette Holt amp Associates developed for the WSDOT Disparity Study 2017 (first referred to on Page 8of the Disparity Study) I did not see a link to this Master DBE Directory within the study Thanks

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Friday October 27 2017 1118 AMTo Kenyon Wendy ltKenyonWwsdotwagovgt Adams E W ltewadamssystemsclcomgtAdekoyaAndrew ltandrewadekoyabccomgt AlyssaBalllegwagov Anindita Mitraltamitracrea-affiliatescomgt APRISeattlehotmailcom Armstrong CharlotteltCharlieAatgwagovgt Ato Apiafi Architects PLLC ltatoaatoapiaficomgt benzfanwaorgBerntsen Teresa (OMWBE) ltTeresaBomwbewagovgt Billingsley Andrealtbillinawsdotwagovgt Bramlet Erica ltEricaBramletlegwagovgt Brooks Julius

ltBrooksJwsdotwagovgt Brown Jason ltjbrownldccorpcomgt bwallacenwlaborersorgCamden Allison ltCamdenAwsdotwagovgt carlllivingstongmailcom Cerda OscarltCerdaOwsdotwagovgt Christopher Chris ltChristCwsdotwagovgt ckerneycaawagovdanplatinumbusinessgroupcom davegentasphaltwacom David BalltDavidsignsnowmillcreekcomgt Davis Khalia ltDavisKhwsdotwagovgt Davis RaShelle (GOVltrashelledavisgovwagovgt Dayton Jo ltDaytonJwsdotwagovgt ddhondtagcwacomDebbieDriverlegwagov Dennis ltdennisahlkiewitcomgt dmcleodnwlaborersorgdrart6651gmailcom Duncan Enid lthigradeincgmailcomgt EltonltEltonwashingtonstatetruckingcomgt eprincecaawagov flemosldccorpcomfmartineznwmtnmsdcorg geoffshookatkncom glovelady ltgloveladyexcelglovescomgtGrabow Katie ltkgrabowsystemsclcomgt Guilfucci Jackie ltJackieGuilfucciskanskacomgt HealyLinda ltHealyLwsdotwagovgt Higginbotham Breanne ltHigginBwsdotwagovgt HirscheyClaudia ltclaudiahirscheycomcastnetgt Holt Colette ltcoletteholtmwbelawcomgt Huff JohnltHuffJwsdotwagovgt Iniguezchawagov JacksonMaynardlegwagov Jimmy Matta(jmattaalcantarassoccom) ltjmattaalcantarassoccomgt kellywickergovwagov Key EarlltKeyEwsdotwagovgt Kirk Jon ltjkirkwhhnfscomgt Kris Purrier ltkpurrierhwageocomgtleewabuildingtradesorg lesliejonessoundtransitorg Liz Evans ltlevansagcwacomgt LopezErin lterinlopezdeswagovgt Martha Cerna ltMarthaPSLCCORGgt Martin-Arnold EdwinaltMartinEwsdotwagovgt Mary Lerdahl ltmarydbeelectricinccomgt McCarty Hannahlthannahmccartylegwagovgt Melissa L Boyles ltmelissaboylesmwbelawcomgt Metcalf KeithltMetcalKwsdotwagovgt michaelicapaawagov Michelle ltMichelleTTCC26netgt MillarRoger ltMillarRwsdotwagovgt Nakamura Jason ltjasonnakamura1-alliancecomgtNavarroLportseattleorg olliepmt-solutionscom pastorbanksesbctacomacom PatrickHughes ltphugheshughesgroupbizgt Petersen Jodi (FHWA) ltJodiPetersendotgovgtrabbottliunaorg rcarmsteadgmailcom ricemportseattleorg Riley D ltdrileylydigcomgtSeling ltSelingjpfranciscomgt sherryharrisergosynchcom Stell MellodyltStellMwsdotwagovgt terigobintulaliptribes-nsngov timwilliamfactorycom tinaterra-tdicom tkellyldccorpcom tomgaetzmsncom vcollinsacec-waorgverlenejazzmsncom Wang Albert ltWangAatgwagovgt Waugh GregltGregWMaxKuneyComgt Yates Henry ltYatesHWSDOTWAGOVgtCc Tom Gaetz lttomgaetzmsncomgt Dave Gent - WAPA ltdavegentasphaltwacomgt VanCollins ltvcollinsacec-waorggt Daniel Seydel II ltdanplatinumbusinessgroupcomgt MaynardJackson ltJacksonMaynardlegwagovgt Carl Livingston ltcarlllivingstongmailcomgt DonMcLeod ltdmcleodnwlaborersorggt JIMMY MATTA ltjimmymattamsncomgt Prince Ed(CAAA) lteprincecaawagovgt David DHondt ltddhondtagcwacomgt Irene Reyesltgloveladyexcelsupplycompanycomgt McDaniel Craig ltMcDaniCwsdotwagovgtsherryharrisergosynchcomSubject WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Good morning On Monday October 30th WSDOT will be releasing the proposed overall Federal HighwayAdministration Disadvantaged Business Enterprise goal attached for public comment throughDecember 15 2017 This overall DBE goal is based upon the recently completely DBE ProgramDisparity Study WSDOT is proposing a 19 percent overall DBE participation goal on Federal Highway

Administration-funded projects for federal fiscal years 2018 through 2020 DBE goals fortransportation projects that receive federal funds represent a percentage of the value of work inwhich minority- and women-owned businesses should participate Once finalized and submitted toFHWA early next year the goal will be effective through Sept 30 2020

The purpose of the DBE program is to create a level playing field for firms owned and operated bydisadvantaged individuals wanting to participate in federally assisted highway transit and aviationprograms The attached overall DBE goal is for FHWA funded projects WSDOT will be updating theFTA and FAA overall DBE goals in the near future

If you have any questions please contact Earl Key Director of the Office of Equal Opportunity at3607057091 or KeyEwsdotwagov Thank you Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

  • Proof-Of-Publicationpdf
    • Mediapdf
      • AGC
      • Daily Journal
      • Daily Medium
      • DBEGood
      • OMWBE
      • Seattle Medium
      • Tabor 100
      • The Chronicle
      • Tukwila
        • King County
          • Public-Comments-20180111pdf
            • 19 DBE Requirement(1)
            • AGC Comments on Proposed 10 Goad
            • Backstrom Curb amp Sidewalk
            • comments on WSDOT proposed DBE goal
            • Cowlitz County Public Works
            • DBE Contracting goals
            • DBE Goal
            • DBE Program Disparity Study
            • Disparity Study Comments from City of Spokane
            • FW_ WSDOT News - WSDOT seeks comments on propos
            • Proposed DBE Goals
            • RE_ DBE Contracting Goal Comments
            • Re_ DBE Goal Comments
            • Re_ Seydel Dan - WSDOT Disparity Study Present
            • Support for WSDOTs proposed DBE goal
            • Why we need mandatory goals
            • WSDOT DBE Goal - Comment in support
            • WSDOT Proposes DBE goal of 19
            • WSDOT propsed DBE Goals
            • WTS - Disparity Study Comment Letter

From Feist MarleneTo WSDOT Disparity StudyCc Simmons Scott M Twohig KyleSubject Disparity Study Comments from City of SpokaneDate Friday December 15 2017 52226 PMAttachments image010png

image011pngimage012png

December 15 2017 Jackie BaynePolicy amp Reporting ManagerOffice of Equal OpportunityWashington State Department of TransportationPO Box 47314Olympia WA 98504-7314 RE Proposed DBE Contracting Goal for Highway Projects Dear Ms Bayne The City of Spokane would like to provide comments related to proposed DisadvantagedBusiness Enterprise Goal for Federal Highway Administration (FHWA) contracts by theWashington State Department of Transportation (WSDOT) Office of Equal Opportunity Manyof our projects receive funding from FHWA and as such the proposed new goals areapplicable to City work The City is supportive of the programrsquos purposemdashldquoto create a level playing field for firmsowned and operated by disadvantaged individuals wanting to participate in federally assistedhighway transit or aviation programsrdquo However the City is concerned about the ability to achieve the proposed utilization rate of upto 19 percent for DBEs in Eastern Washington considering the low number of DBEs in ourregion and the record construction under way in the City and in our region WSDOTrsquos DBE Program Disparity Study notes ldquoContractors in Eastern Washington repeatedlyreported that the goals on projects in their area are too highrdquo The Inland NorthwestAssociated General Contractors group notes that only about 12 DBEs in construction fields areavailable in the greater Spokane area Meanwhile the City has performed record construction in each of the last three years withproject totals hovering around $100 million Our City work has been bolstered by anaggressive program to improve water quality in the Spokane River Our local school districtsand our neighboring jurisdictions also have aggressive construction programs right now

Additionally we expect WSDOTrsquos work in this region to accelerate as North Spokane Corridor(NSC) construction proceeds At times our area is reaching the limits overall of our contractingcommunity the City has worked to release its projects in the first quarter of the year as muchas possible to lock in contractors and receive better pricing The capacity of existing DBEs in our region simply cannot meet that current high demand Some DBE firms are tempted to agree to more work in these times but we have found that insome cases DBEs have stretched themselves too thin On two recent City projects generalcontractors were unable to meet DBE goals as a result of DBE firms that couldnrsquot fulfill theircommitments for providing personnel or equipment It also seems implausible to expect DBEs from the West Side to mobilize teams to work on Cityof Spokane projects in large numbers In fact the Disparity Studyrsquos author responded at arecent meeting on this topic that a DBE from the West Side only very rarely completes workon the East Side of the state We would also be concerned about moving the good-paying jobs that construction providesoutside of our region The Cityrsquos median household income is $44350 considerably lower than theState of Washington MHI of $64129 and the Seattle MHI of $77351 Our leaders are working tocreate good-paying jobs for our citizens not export them to an already wealthier part of the state Additionally these projects are also funded with local dollars and our citizens expect their money toput their neighbors to work With the above considered the City is seeking

middot DBE goals for the 2018-2020 compliance period for Eastern Washington that arereflective of the current availability of DBE firms in our region

middot The re-inclusion of non-minority women owned DBEs in achieving DBE goals InSpokane non-minority women owned DBEs make up the majority of the availableDBEs And current information shows that women in Spokane overall still lag behindmen in opportunities and wages The Cityrsquos own ldquoGender and Racial Equityrdquo reportfrom 2016 noted that overall working women earned 783 percent of the earnings ofworking men in 2014 down from 827 percent in 2009 We need to lift up all women

middot The development of WSDOT programs to encourage the growth of existing andnew DBEs who can be used on street and highway projects We are encouraged by theproposed mentorproteacutegeacute program to increase the number and capacity of DBEs inEastern Washington Programs that address other barriers such as assistance withcompleting documentation or access to bonding capacity also could aid growth ofDBEs

middot The ability for WSDOT to adjust goals on a project if a selected DBE is unable tocomplete its commitments on a project This would help enable our contractors totake a chance on a new or inexperienced DBE to complete work

middot Recognition of local programs that strive to increase diversity in the work force Forexample the City operates a robust apprenticeship program that requires 15 percentof the labor hours on public works jobs greater than $600000 to be performed byapprentices The apprentice programs in our region are stepping up recruitmentefforts and are specifically seeking to recruit more youth women and minorities intoapprentice slots

As we seek to achieve the goal of increasing participation in street and highway constructionby companies owned by disadvantaged individuals we must also acknowledge that businessdevelopment and growth happens over time We must lay the groundwork now to build abase of DBEs that can help us achieve higher utilization goals over time Sincerely Marlene FeistDirector of Strategic DevelopmentPublic Works amp UtilitiesCity of Spokane

Marlene Feist | City of Spokane | Public Works Director of Strategic Development5096256505 | cell 5097109214 | mfeistspokanecityorg | spokanecityorg

From Hall MattTo WSDOT Disparity StudySubject FW WSDOT News - WSDOT seeks comments on proposed DBE contracting goal for highway projectsDate Friday December 15 2017 11956 PMAttachments WSDOT proposed DBE goal through 2020pdf

From Hall Matt Sent Friday December 15 2017 117 PMTo BayneJwsdotwagovCc Keniston Rick (KenistRwsdotwagov) MolyneKwsdotwagov SusanWilsonclarkwagovSubject WSDOT News - WSDOT seeks comments on proposed DBE contracting goal for highwayprojects Hello Jackie Please see our comments attached regarding the WSDOT proposed DBE goals Thanks for the opportunity to provide comments Matt HallClark County Public Works Washington State Department of Transportation ndash NEWSHeadquarters ndash 310 Maple Park Avenue SE ndash Olympia WA 98504-7314 ndash 360 705-7000 FOR IMMEDIATE RELEASEOct 30 2017 Contact Jackie Bayne Office of Equal Opportunity 360 705-7084

WSDOT seeks comments on proposed DBEcontracting goal for highway projectsComments accepted through Dec 15OLYMPIA ndash Contractors trade and labor organizations small and disadvantaged businessesand all others who may be interested in working with the Washington State Department ofTransportation are invited to comment on the agencyrsquos proposed Disadvantaged BusinessEnterprise goal for Federal Highway Administration contractsDBE goals for transportation projects that receive federal funds represent a percentage of thevalue of work in which minority- and women-owned businesses should participate WSDOTis proposing a 19 percent overall DBE participation goal on Federal Highway Administration-funded projects for federal fiscal years 2018 through 2020Once submitted to FHWA early next year the goal will be effective through Sept 30 2020The purpose of the DBE program is to create a level playing field for firms owned andoperated by disadvantaged individuals wanting to participate in federally assisted highwaytransit and aviation programsConnecting with communitiesWSDOT will host a series of public meetings to provide opportunities for individuals tocomment in person

Spokane

2 ndash 4 pm Tuesday Nov 28WSDOT Eastern Region Headquarters2714 N Mayfair St Spokane

Vancouver

2 ndash 4 pm Wednesday Nov 29WSDOT Vancouver Headquarters11018 NE 51st Circle Vancouver

Seattle

2 ndash 4 pm Thursday Dec 7WSDOT Northwest Region Headquarters15700 Dayton Ave N Shoreline

Other ways to provide commentThose who are unable to attend one of the meetings can participate in a no-cost webinar from230 ndash 430 pm Tuesday Dec 5 Registration for the webinar is required Those interested inparticipating should email DisparityStudywsdotwagovWritten comments can also be submitted by mail or emailJackie Bayne Policy amp Reporting ManagerWashington State Department of TransportationOffice of Equal OpportunityPO Box 47314Olympia WA 98504-7314DisparityStudywsdotwagovDocuments detailing the methodology used for determining the FHWA DBE goals areavailable for review at all WSDOT region headquarters offices and at the TransportationBuilding 310 Maple Park Ave SE Olympia They are also available online atwwwwsdotwagovequalopportunityWSDOT will consider all written comments received through Friday Dec 15 2017 Hyperlinks within this release

WSDOT Region offices wwwwsdotwagovContactofficelocationhtmregion

WSDOT keeps people businesses and the economy moving by operating and improving the statestransportation systems To learn more about what were doing go to wwwwsdotwagovnews forpictures videos news and blogs Real time traffic information is available at wwwwsdotcomtraffic or bydialing 511 Americans with Disabilities Act (ADA) InformationAccommodation requests for people with disabilities can be made by contacting the WSDOTDiversityADA Affairs team at wsdotadawsdotwagov or by calling toll-free 855-362-4ADA (4232)Persons who are deaf or hard of hearing may make a request by calling the Washington State Relay at711 Title VI Statement to Public It is WSDOTrsquos policy to assure that no person shall on the grounds ofrace color national origin or sex as provided by Title VI of the Civil Rights Act of 1964 be excluded fromparticipation in be denied the benefits of or be otherwise discriminated against under any of its federallyfunded programs and activities Any person who believes his or her Title VI protection has been violatedmay file a complaint with WSDOTrsquos Office of Equal Opportunity For additional information regarding Title

VI complaint procedures andor information regarding our non-discrimination obligations please contactOEOrsquos Title VI Coordinator at 360-705-7090 To unsubscribe to WSDOT media releases please reply and type REMOVE in the subject line

This e-mail and related attachments and any response may be subject to public disclosure under state law

From Cochrane EmilieTo WSDOT Disparity StudyCc Eugenis Susan Cowlitz Co Public Works - Brad BastinSubject Proposed DBE GoalsDate Thursday December 14 2017 85006 AMAttachments image002png

DBE Goals - Commentspdf

Please see the attached letter with comments regarding the proposed DBE Goals Ahard copy will be sent out today

Thanks

Emilie CochraneCowlitz County Public Works1600 ndash 13th Avenue SKelso WA 98626360-577-3030 ext 6523

From Michelle WolcottTo Bayne JackieCc Robideau Christopher LSubject RE DBE Contracting Goal CommentsDate Tuesday November 7 2017 65448 AMAttachments image001png

Thank you JackieWhat a relief to know that we have been heard and are not the only small business facing thisstruggle Your email is comforting

Yes you can provide us with additional assistanceLet me introduce my boss and Senior Vice President of Red Plains Professional Chris Robideau

Chris will be your contact from here since I will be leaving the company November 17th As a WA DBE we are ldquoeligible for limited DBE Support Services (SS) funding when funds becomeavailablerdquo When will this happen And are we registered or on a list to receive fundingIs the WSDOT ICR Training a prerequisite for the funding Or just helpful knowledge

Thank you for your time Jackie I will follow through with the training

Michelle Wolcott EIT Quality Control Engineer

2103 NE 129th Street Suite 201 Vancouver WA 98686 Office (360) 448-7999 Fax (360) 258-0274

wwwred-plainscom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Monday November 6 2017 332 PMTo Michelle Wolcott ltMichelleWolcottred-plainscomgtSubject RE DBE Contracting Goal Comments

Hi Michelle

Thank you for your interest in doing business with WSDOT I apologize for the lack of informationyou have come up against in your attempts to attain access to WSDOT ICR program

As you may well know WSDOT has recently completed a state wide agency specific diversity studyAnecdotal comments submitted with the study concur with your experience Not only did somerespondents find it difficult to become prequalified they also commented that the required indirectrate of 110 percent is too low to be profitable These requirements are currently under advisementby WSDOT and new DBE program requirements are currently in the process of seeking public input

As you are an OMWBE certified DBE in Washington State you will be eligible for limited DBE SupportServices (SS) funding when these funds become available At that time funds may become availableto assist you in your struggle to attain ICR eligibility Here is a link to WSDOTrsquos Indirect Cost RateTraining httpswwwwsdotwagovAuditICRTraininghtm If you would like me to find additionaltraining or information please let me know

If I can provide additional assistance of information please let me know

Best Regards

Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Michelle Wolcott [mailtoMichelleWolcottred-plainscom] Sent Tuesday October 31 2017 835 AMTo WSDOT Disparity Study ltDisparityStudyWSDOTWAGOVgtSubject DBE Contracting Goal Comments

HelloI have been in contact with WSDOT for 6 months sharing my disparaging story of beinga small DBE unable to submit SOQs for projects requiring a WSDOT Audited IndirectCost Rate Approval We do not have an in-house accountant and our outsideaccountant has explained to get all the paperwork together for WSDOT would take 40hours of work $9000 annually We cannot justify this cost to submit on a project thatwe may not acquire We have been directed to seek financial assistance from WSDOT Federal SBA andWashington State Office for Women and Minority Owned Enterprises all of whichprovided negative responses

As a DBE business in 11 states we are supporting the 19 incentive for federallyfunded contracts but we are frustrated in the fact that we will not be one of the luckyfew to participateWe have been in business 20 years From our Vancouver Washington office our clientsare the Native American tribes across the country with all contracts federally funded This summer alone the WSDOT ICR Approval has squashed our ability to submit on twoprojects that we were perfectly qualified to performI have attached previous emails to show a sample of who I have been dealing with

Thank you

Michelle Wolcott EIT Quality Control Engineer

ltimage001pnggt

2103 NE 129th Street Suite 201 Vancouver WA 98686 Office (360) 448-7999 Fax (360) 258-0274 wwwred-plainscom

From Michelle Wolcott Sent Monday July 10 2017 954 AMTo Harvey Schatzie ltHarveySwsdotwagovgtSubject RE WSDOT Indirect Cost Rate Process

Good Morning Schatzie

This is Michelle Wolcott from Red We spoke Friday June 30th about the ICRprocess and you were very encouraging I relayed the information to my boss who ishere in Vancouver then he shared with the president bookkeeper and our accountantin Oklahoma We had FAR compliance with Oklahoma DOT in 2015 so we are noteligible for the Safe Harbor Program Our account said our timekeeping system doesnot breakdown the hours and pay in the format WSDOT wants to have it presented andto get the documents in order would take the CPA and an assistant $9000 in paidhours of work It turns out this would have to be annually The other option is to hirean outside CPA firm to do the audit for us at $20000 annually

Our president said in the past we received funding assistance from the Stateof Oklahoma to get our ICR approval Does WSDOT offer any financial assistance for small businesses to reach compliance We are also a DBE in WA I have requested the same information from WA PTAC at theVancouver Chamber of Commerce and from WA Office of Minority and Women OwnedBusiness Enterprises and they both said there was nothing but suggested to askWSDOTThank you for your helpMichelle Wolcott EIT

Hello Michelle sorry but I am not aware of any grants But I was looking at this andthere is a POC at the bottom you may try to discuss the audit issuesHollyHolly BoehmeBusiness Opportunity Specialist | 8(a) Business Development ProgramUS Small Business Administration bull Seattle District Office

Hello Michelle -

Thank you for your email Im not aware of any funding available for thispurpose but do agree its quite a bit for a DBE firm to have as an expense Mostof the firms I work with do a lot more work on the Oregon side so perhaps thereare programs available that I just havent heard of Im copying my colleagueHoly Boehme in our Seattle District Office to see if they are aware of any suchassistance

Holly might there be some small business incubators or other resources availablein WA to help a small firm with the expense of getting a WSDOT AuditedIndirect Cost Rate approval Please reply all with anything you may have

Thank you

Yuri Yoshida Dyson Business Opportunity SpecialistUS SMALL BUSINESS ADMINISTRATION Portland District OfficePhone 503-326-6692 Fax 202-292-3872 wwwsbagovor

From Troy HalbergTo Bayne JackieSubject Re DBE Goal CommentsDate Wednesday December 13 2017 35533 PM

JackieToday was another example of why the goals should not be raised There were 2 jobs which Iwas low on and did not get due to the high goals This is exactly what will happen when thegoals get raised The first job was the 9180 Anacortes Ferry Paving Northeast Electric $244924 and UDBE $318000 Second job was the 9172 SR 9 East Junction Job Northeast Electric $68503 and UDBE $76300

Does this seem like a good way to spend the tax payer money I do not see how we are tosurvive if the goals get to 21

Thanks

Troy HalbergOffice360-225-7004Cell360-931-3990Fax360-225-7001

On Thu Nov 30 2017 at 1131 AM Bayne Jackie ltBayneJwsdotwagovgt wrote

Good Morning Troy

Thank you for taking the time to provide us with your experiences with the DBE Program TheWashington State Department of Transportation takes the public involvement process veryseriously and your comments will be taken into consideration prior to a final decision regardingthe overall DBE program goal

If I can be of further assistance please let me know

Best Regards

Jackie Bayne

Policy and Reporting Manager

WSDOT Office of Equal Opportunity

Work (360) 705-7084

Cell (360) 338-5783

BayneJwsdotwagov

From Troy Halberg [mailtotroyhnellcnet] Sent Wednesday November 29 2017 144 PMTo WSDOT Disparity Study ltDisparityStudyWSDOTWAGOVgtSubject DBE Goal Comments

If these goals are to be set that high this would make us as a non DBE small contractor at amajor disadvantage With these high of goals this is like handing all of the DBE electricalcontractors every job These general contractors will have no option but to use thembecause of the goals This should not go into effect We have been low on several jobs in thepast and have not gotten them do to the goals being 18 When this goes on it puts all therest of us contractors at a disadvantage Please consider the smaller non DBE contractorsthat are looking to survive as well

Thanks

Troy Halberg

Office360-225-7004

Cell360-931-3990

Fax360-225-7001

From Daniel Seydel IITo Bayne JackieCc Key Earl daneiwashingtonorg Nadeem Ismail Mussie Tewelde (mteweldehydro2geotechcom)

graceflyrightaolcom Mary Wenner Watkinson LarrySubject Re Seydel Dan - WSDOT Disparity Study Presentation Public TestimonyDate Friday December 8 2017 30323 PM

Jackie

It was my hope that the comments would be put into record I was also hoping that you wouldnot have to be the one having to formulate responses for each clarification If that is the caseI know you are swamped and will then I just ask my comments be only part of the recordHowever if there is dedicated staff that is going to be compiling and responding to theclarification then the below questions would be the priorities of most interest

These were questions unrelated to the disparity study and hopefully should be doable

1) Do you have any reports on your outcomes from the past 5 years on DBE support servicesand specific key performance measures from previous years funding (ie how many firmsutilized what was the objectives were objectives met did outcomes meet total satisfaction ifnot why next steps what was the firms capacity before and after services were performed (iesales employees bonding if applicable insurance equipment line of credit if applicablenumbertype of customers how are they doing now etc))

2) What other changes or improvements other than allowing DBES to select their own serviceproviders and a staff change will be a part of this new program

3) Was consideration to provide the new mentor protege consultant rather than separating theactivities into support services andor technical assistance

Disparity study clarifications

1) Will WSDOT consider sponsoring legislation to support the policy changes and goalincreases to insure manditory goals wont be necessary

a) If not what measures will you grant primes to operate outside the box (ie entertain bestvalue over low bid modify responsiveness by subs to require adherence to meeting voluntarygoals developing standards around federally funded gccm and other low bid procurementsthat give powers to primes to meet objectives including but not limited to mentor protegerelationships joint ventures bond waiving techniques cash flow assistance material andequipment acquisition manufacturer development specifications that have only DBES orinclude equal number of DBES as non DBES as approved installers etc)

2) Will the disparity study consultant be available for implementation or information gatheringfrom other regions

5) Will WSDOT be hiring more diverse staff amp professionaltechnical service providers inother departments outside OEO to insure policies commitments and evaluations areperformed in manner that improves diversity that reflects the communities WSDOT serves bythoughtful and legal efforts increase participation thus creating successful outcomes includingpartnerships and collaborations

Thank you and Merry Christmas

Hi Dan

Thank you for providing such thoughtful public comments questions and testimony

Regarding your public testimony below - I do not believe I am not able to answer questions ifthey are public comments Please let me know what part of this email you would likeclarification on and what part you would like considered public testimony

I appreciate your thoughtful consideration of WSDOTrsquos implementation of our civil rightsprograms

Best Regards

Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

DIDaniel Seydel IIFyi Daniel J Seydel II Platinum Group LLC 2064060844 f) 2062999934wwwplatinumbusinessgroupcom Small Business is the Answer FREE TRAINING FORENTREPRENEURS amp JOB SEEKERS - Polish your skills or make your firm standout thanksto the EntrepreneurialThu 233pDI

Daniel Seydel IIThu 1272017 1123 AMInbox Sent ItemsShow all 7 recipientsTobaynejwsdotwagov ltBayneJwsdotwagovgtJackie

Per your request below are my questions and comments some of which were verbally sharedyesterday

Congratulations on receiving the blessing of additional technical assistance dollars andcompleting the DBE Disparity Study per your report

1) Do you have any reports on your outcomes from the past 5 years on DBE support servicesand specific key performance measures from previous years funding (ie how many firmsutilized what was the objectives were objectives met did outcomes meet total satisfaction ifnot why next steps what was the firms capacity before and after services were performed (ie

sales employees bonding if applicable insurance equipment line of credit if applicablenumbertype of customers how are they doing now etc))

2) What other changes or improvements other than allowing DBES to select their own serviceproviders and a staff change will be a part of this new program

3) Was consideration to provide the new mentor protege consultant rather than separating theactivities into support services andor technical assistance

Disparity study clarifications andor comments

1) Will WSDOT consider sponsoring legislation to support the policy changes and goalincreases to insure manditory goals wont be necessary

a) If not what measures will you grant primes to operate outside the box (ie entertain bestvalue over low bid modify responsiveness by subs to require adherence to meeting voluntarygoals developing standards around federally funded gccm and other low bid procurementsthat give powers to primes to meet objectives including but not limited to mentor protegerelationships joint ventures bond waiving techniques cash flow assistance material andequipment acquisition manufacturer development specifications that have only DBES orinclude equal number of DBES as non DBES as approved installers etc)

2) Will the disparity study consultant be available for implementation or information gatheringfrom other regions

3) What lessons did WSDOT learn that it did not know from the other study(s)

4) What would WSDOT do different (ie scope time line process approach etc)

5) Will WSDOT be hiring more diverse staff amp professionaltechnical service providers inother departments outside OEO to insure policies commitments and evaluations areperformed in manner that improves diversity that reflects the communities WSDOT serves bythoughtful and legal efforts increase participation thus creating successful outcomes includingpartnerships and collaborations

Daniel J Seydel IIPlatinum Group LLC 2064060844f) 2062999934wwwplatinumbusinessgroupcom

Small Business is the Answer

FREE TRAINING FOR ENTREPRENEURS amp JOB SEEKERS - Polish your skills or makeyour firm standout thanks to the Entrepreneurial Institute of Washington

httpswwwyoutubecomchannelUCKL5YeVxL29HnNxqnb6hmXA

LIKE US on FaceBook if an Active Professional Development workshop provided by EIW

Construction University helps your firm or has benefited you

httpswwwfacebookcomEIWashingtonref=hl

From Bayne Jackie ltBayneJwsdotwagovgtSent Friday December 8 2017 10139 PMTo Daniel Seydel IICc Key Earl daneiwashingtonorg Nadeem Ismail Mussie Tewelde(mteweldehydro2geotechcom) graceflyrightaolcom Mary Wenner Watkinson LarrySubject RE Seydel Dan - WSDOT Disparity Study Presentation Public Testimony Hi Dan Thank you for providing such thoughtful public comments questions and testimony Regarding your public testimony below - I do not believe I am not able to answer questions if theyare public comments Please let me know what part of this email you would like clarification on andwhat part you would like considered public testimony I appreciate your thoughtful consideration of WSDOTrsquos implementation of our civil rights programs Best Regards Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov From Daniel Seydel II [mailtodanplatinumbusinessgroupcom] Sent Thursday December 7 2017 1123 AMTo Bayne Jackie ltBayneJwsdotwagovgtCc Key Earl ltKeyEwsdotwagovgt daneiwashingtonorg Nadeem Ismailltnipaintingearthlinknetgt Mussie Tewelde (mteweldehydro2geotechcom)ltmteweldehydro2geotechcomgt graceflyrightaolcom Mary Wennerltmwenn0108yahoocomgtSubject Seydel Dan - WSDOT Disparity Study Presentation Public Testimony Jackie

Per your request below are my questions and comments some of which were verbally sharedyesterday

Congratulations on receiving the blessing of additional technical assistance dollars andcompleting the DBE Disparity Study per your report

1) Do you have any reports on your outcomes from the past 5 years on DBE support servicesand specific key performance measures from previous years funding (ie how many firmsutilized what was the objectives were objectives met did outcomes meet total satisfaction ifnot why next steps what was the firms capacity before and after services were performed (iesales employees bonding if applicable insurance equipment line of credit if applicablenumbertype of customers how are they doing now etc))

2) What other changes or improvements other than allowing DBES to select their own serviceproviders and a staff change will be a part of this new program

3) Was consideration to provide the new mentor protege consultant rather than separating theactivities into support services andor technical assistance

Disparity study clarifications andor comments

1) Will WSDOT consider sponsoring legislation to support the policy changes and goalincreases to insure manditory goals wont be necessary

a) If not what measures will you grant primes to operate outside the box (ie entertain bestvalue over low bid modify responsiveness by subs to require adherence to meeting voluntarygoals developing standards around federally funded gccm and other low bid procurementsthat give powers to primes to meet objectives including but not limited to mentor protegerelationships joint ventures bond waiving techniques cash flow assistance material andequipment acquisition manufacturer development specifications that have only DBES orinclude equal number of DBES as non DBES as approved installers etc)

2) Will the disparity study consultant be available for implementation or information gatheringfrom other regions

3) What lessons did WSDOT learn that it did not know from the other study(s)

4) What would WSDOT do different (ie scope time line process approach etc)

5) Will WSDOT be hiring more diverse staff amp professionaltechnical service providers inother departments outside OEO to insure policies commitments and evaluations areperformed in manner that improves diversity that reflects the communities WSDOT serves bythoughtful and legal efforts increase participation thus creating successful outcomes includingpartnerships and collaborations

Thank you for your hard work

Daniel J Seydel IIPlatinum Group LLC2064060844f) 2062999934wwwplatinumbusinessgroupcom

Small Business is the Answer

FREE TRAINING FOR ENTREPRENEURS amp JOB SEEKERS - Polish your skills or makeyour firm standout thanks to the Entrepreneurial Institute of Washington

httpswwwyoutubecomchannelUCKL5YeVxL29HnNxqnb6hmXA

LIKE US on FaceBook if an Active Professional Development workshop provided by EIWConstruction University helps your firm or has benefited you

httpswwwfacebookcomEIWashingtonref=hl

From Erin EhlingerTo Bayne JackieSubject Support for WSDOTs proposed DBE goalDate Wednesday December 13 2017 115417 AM

I am writing to support the WSDOT recommended DBE Goal for FHWA contracts of 190 I also want to express my appreciation for the thoroughness of the WSDOT Disparity study and howthe study disclosed the disparity in WSDOT contracts that do not have a DBE or WBE goal ndash furtherreinforcing that all women-owned firms and minority owned firms face equity issues I remain concerned with the methodology required by the Code of Federal Regulations and case lawbecause of the dependence on the availability of firms in the calculation An unintendedconsequence of removing either gender or race from the goal is that many of these firms would goout of business the availability decreases and the formula then results in a smaller DBE goal Pleaselet me know how I can help influence a change to the CFR Thank you Erin Ehlinger

Erin Ehlinger PEPresident

24036 SE 47th StSammamish WA 98029erinehlingersmartcitytrafficcom425-221-0320

From Jackie EtterTo WSDOT Disparity StudySubject Why we need mandatory goalsDate Friday December 1 2017 61859 PM

As a DBE participating in bidding process I have found that regardless of the language which claims to insurethat disadvantaged business enterprises shall not be discriminated against the only way to ensure that this does nothappen is by mandating affirmative action goals Having been overlooked time and time again because of my gender when I have submitted bids that are verycompetitive with other bidders is very frustrating I have had many instances of companies using my price to getmy non DBE competitors to lower theirs The voluntary or laudatory DBE goals do nothing to ensure a level playing fieldThe only way to ensure non-discrimination is through mandatory goals

Jackie EtterWest Star Construction of Spokane

Sent from my iPhone

From Claudia HirscheyTo Key Earl Bayne JackieSubject WSDOT DBE Goal - Comment in supportDate Tuesday December 12 2017 61937 PM

Dear Earl and Jackie The WSDOT recommended DBE Goal for FHWA contracts of 190 is a small and important increasethat can further achieve equity in WSDOTFHWA contracting I am in support of the 19 DBE Goal I also want to express my appreciation for the thoroughness of the WSDOT Disparity study and howthe study disclosed the disparity in WSDOT contracts that do not have a DBE or WBE goal ndash furtherreinforcing that all women-owned firms and minority owned firms face equity issues I remain concerned with the methodology required by the Code of Federal Regulations and case lawbecause of the dependence on the availability of firms in the calculation An unintendedconsequence of removing either gender or race from the goal is that many of these firms would goout of business the availability decreases and the formula then results in a smaller DBE goal Sincerely Claudia S Hirschey PETransportation Consulting Servicesclaudiahirscheycomcastnethttphirscheytcscom2068564988 Mobile

From Nate ThomasTo WSDOT Disparity StudySubject WSDOT Proposes DBE goal of 19Date Thursday December 7 2017 42720 PM

The WSDOT should look into similar ways the Federal Gov has handled the equal opportunity forthose that fall under the DBE status and set aside specific projects for the DBErsquos and moreimportantly UDBErsquos so these companies have better chance of landing contracts Maybe a lot 10 ofthe DBE goal to set aside for only DBEs and other 9 goal met as it is done currently with COA onlarger contracts Nate ThomasSenior EstimatorD 5095688085 | C 5099941156331 North Fancher Road | Spokane WA | 99212

The information contained in this email including any attachments is confidential and may beprivileged It is intended only for the person or entity to which it is addressed and no waiver isintended by sending this email If the reader is not the intended recipient you are herebynotified that any review retransmission dissemination or other use of or taking any action inreliance upon this information is strictly prohibited If you have received this email in errorkindly notify the sender by reply email and delete the original message from any computerThank You

From Brian FujiiTo WSDOT Disparity StudySubject WSDOT propsed DBE GoalsDate Thursday December 7 2017 110638 AM

Good morning Jackie

I wanted to comment on WSDOTs proposed DBE goal to 19 I believe WSDOTs plan toincrease the overall DBE goal to 19 will provide greater opportunities for DBE contractorsin different disciplines to participate in federally funded contracts

Without the new DBE requirement and with Proposition 200 there are limited opportunitiesfor DBE contractors in disciplines different than the typical trucking flagging and rebar Inaddition there are no incentives for general contractors to go out beyond the usual truckingflagging and rebar DBE subcontractors

Increasing the DBE goals will provide opportunities for different DBE contractors in differentdisciplines to participate in WSDOT federally funded projects

Thank you for your time

RespectfullyBrian FujiiPresident Subsurface ConstructionP 2063836478F 2069604639MDBE 4M0024998

From Forman StephanieTo Bayne JackieCc Millar Roger christinenhanmailhousegov Claudia Hirschey Sarah Corbin Jiang Yingle

efaulknerenviroissuescom Diana Giraldo Kelly CheesemanSubject WTS - Disparity Study Comment LetterDate Friday December 15 2017 71020 PMAttachments 2017_Dec 15_WTSCommentLetter_WSDOT DBE Goalpdf

Dear Ms Bayne Please find our attached letter which summarizes the WTS Puget Sound Chapterrsquos support foradvancement of women in transportation and our comment letter regarding the recent DisparityStudy Please feel free to contact me if you have any questions or would like to discuss Sincerely Stephanie S Forman PEWTS Puget Sound President Transportation Project Manager

929 108th Avenue NE Suite 1300Bellevue WA 98004D 4254681548 M 2062291745stephanieformanhdrinccom

December 15 2017

Jackie Bayne Policy and Reporting Manager

Office of Equal Opportunity

Washington State Department of Transportation

PO Box 47314

Olympia WA 98504-7314

Dear Ms Bayne

On behalf of the Puget Sound Chapter of Womenrsquos Transportation Seminar (WTS) we would

like to thank the Washington State Department of Transportation for presenting to our

organization the DBE Disparity Study results We very much appreciated the presentation by Earl

Key Director of WSDOTrsquos Office of Equal Opportunity Teresa Berntsen (Director Office of Minority

and Womens Business Enterprises) as well as Leslie Jones (Director Sound Transit Office of Small

Business Development and Labor Compliance)

Following a review of the WSDOT Disparity Study and as a result of consultation with WTS

International we would like to provide WSDOT with our comments for your consideration

As you know WTS is an organization focused exclusively on attracting retaining and advancing

women in transportation By the year 2018 there will be thousands of vacancies in the

transportation industry for qualified professionals and while women account for more than half of

the worldrsquos workforce they are a very small minority in transportation disciplines

We are pleased that the outcome of the 2017 Disparity Study that recognizes the on-going barriers

for DBEs including women-owned businesses in transportation The WSDOT recommended DBE

Goal of 190 is a small and important increase that can further achieve equity in WSDOTFHWA

contracting We are also pleased that the 2017 Disparity Study has documented the disparity in

WSDOT contracts that do not have a DBE or WBE goal ndash further reinforcing that all women-owned

firms and minority owned firms face equity issues We are encouraged that the WSDOT has asked

FHWA to rescind the 2016 waiver

While WTSrsquo mission is specific to the advancement of women we are a race-neutral organization To

this end we are also deeply concerned about the underutilization of minority owned firms There is

no equity or ldquofair playing fieldrdquo without equity for all gender and races We remained concerned with

the methodology required by the Code of Federal Regulations and case law because of the

dependence on the availability of firms in the calculation An unintended consequence of removing

either gender or race from the goal is that many of these firms would go out of business the

availability decreases and the formula then results in a smaller DBE goal This consequence is

contrary to our mission

We look forward to our continued participation in WSDOTrsquos DBE advisory group we are anticipating

notice that the 2016 waiver has been rescinded and how we can work together to continue

advancing minority and women-owned firms in the transportation field

Sincerely

WTS Puget Sound Chapter

Stephanie Forman

President

C Roger Millar Secretary WSDOT

C Representative Adam Smith 9th Congressional District Washington co Christine Nhan

WTS Puget Sound Chapter

PO Box 3461

Bellevue Washington 98009

From Dave Gent - WAPATo Bayne JackieCc Tom GaetzSubject WAPA Public Comments - RE WSDOT FHWA Disadvantaged Business Enterprise Proposed GoalDate Friday December 15 2017 14119 PMAttachments 12152017 DBE Proposed Goal - WAPA Public Comments Letterpdf

Good afternoon Jackie Please find attached WAPArsquos ldquofor the public recordrdquo comments with respect to WSDOTrsquos proposedDBE Goals FHWA funded work I assume that the Master DBE Directory was not sent to you this week so as a result we were notable to review the directory before the close of the public comment period That fact is noted withinour comment letter Thank you for your efforts Have a good weekend

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Friday December 8 2017 1219 PMTo Dave Gent - WAPA ltdavegentasphaltwacomgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hello Dave WSDOT did not take possession of this directory as part of our review process We will provide youwith the records without submitting a formal request However we need to get them from theconsultant first I will hopefully have them to provide next week I will keep you updated on therequest Have a nice weekend Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal Opportunity

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

December 15 2017

Jackie Bayne Policy Manager WSDOT Office of Equal Opportunity Delivered via e-mail to BayneJwsdotwagov RE Public Comment (as requested) to Proposed Overall DBE Goal for the FHWA (2018 ndash 2020) Ms Bayne Thank you for your presentation via webinar on December 5 2017 outlining WSDOTrsquos evaluation process used to determine the proposed overall DBE goal for the FHWA Thank you also for the Colette Holt amp Associates (CHA) DBE Advisory Group presentation made on September 14 2017 Both presentations helped to distill the findings of the 2017 Disparity Study produced by CHA In response to Earl Keyrsquos initial informal request to comment on the proposed overall DBE goal made during the DBE Advisory Committee teleconference held on October 12th we provided a list of reasons that we believe justify a lower DBE goal than is now being proposed Our initial response to Mr Keyrsquos request did not serve to influence WSDOT and the current proposed goal remains at 190 The arguments provided on October 12th against the significant increase in the proposed DBE goal (versus the previous goal and recent historic DBE participation) are repeated and supplemented below and will serve as the Asphalt Pavement Associationrsquos (WAPArsquos) official public comments

In concert with WSDOT and the OWMBE WAPA and the construction firms that WAPA represents have demonstrated a commitment to the principals of equal opportunity for all ldquoready willing and ablerdquo firms for the entire history that our DBE program has been in place WAPA has continuously demonstrated its commitment to the goals of the DBE program and for increasing the representation of disadvantaged groups within our industry as both workers and owners of firms Please recognize that WAPArsquos oversight and critique of the DBE program has always attempted to balance the principals of fair and open competition with the practical aspects of the low bid compressed schedule high performance standards demanded within the WSDOT marketplace Our comments below are meant to enhance WSDOTrsquos and OWMBErsquos understanding of the market and to hopefully have WSDOT fully consider all of the dynamics that are at play when proposing its Triennial DBE goal for FHWA projects Current DBE Capacity vs Historically Robust Market In advocating for a realistic and defensible DBE goal it has always been WAPArsquos position that it is paramount that the realities of the marketplace and true certified DBE subcontracting capacity should be a primary standard While a ldquostretchrdquo goal may appear to be progressive on its face it comes with consequences for all of the parties involved in the WSDOT federal aid contracting arena To balance the dynamics of the WSDOT contracting system the DBE goal should be tempered with the realities of the market and with a true measure of the underlying effectiveness of the DBE support services available to contractors

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 2 of 6 The first point of fact that has not been given any apparent consideration by WSDOT in its evaluation of the current capacity of certified DBErsquos is that there is an historically robust workload scheduled to be performed in the 2017 through 2022 time-frame particularly in the Puget Sound ldquoEverett to Olympiardquo corridor By WSDOTrsquos own estimates (see Attachment A) public works construction project starts in the 2018 to 2022 time-frame in this region will exceed $333 billion (B) counting the work projected from just five public entities WSDOT will be taking a decidedly ldquoback seatrdquo role during this period to Sound Transit which will have construction project starts of $226B vs WSDOTrsquos projected volume of $67B WSDOTrsquos summary publication titled Washington State Department of Transportations Proposed Federal Highway Administration Triennium Disadvantaged Business Enterprise Goal Federal Fiscal Years 2018-2020 states correctly that ldquoIncluded among the types of evidence that must be considered are the current capacity of DBEs to perform work on WSDOTrsquos federally-assisted contracts as measured by the volume of work DBEs have performed in recent yearshelliprdquo (Step Two Adjustment discussion) With the Sound Transit program being over 300 larger than the total WSDOT program in this region a sober assessment of true certified DBE capacity in the next three years needs to be considered by WSDOT If the huge construction boom over the next five years does not prompt a Step Two Adjustment then it becomes obvious that the realities of the market are being ignored by WSDOT for DBE goal setting Put another way if the 2018 through 2022 level of contracting activity does not warrant a goal adjustment what will DBE Access Barriers Not Yet Addressed The CHA 2017 Disparity Study points out multiple recommendations in Section VII that impact DBE participation and access to the market Assessments relating to those impacts and the state of maturity in addressing the CHA recommendations should be considered when assessing the DBE goal Many of the CHA recommendation have not been adequately addressed at this point in time Some of the prime examples are listed below Increase Certification and Expertise ndash The Disparity Study as explained to us includes all minority- (MBE)

and women-owned (WBE) firms that could be readily identified that perform work within Washington State and that perform work within the NAICS code framework CHA developed to cover WSDOT project work During the various presentations relating to the Disparity Study WSDOT representatives said that outreach to currently non-certified MBE amp WBE firms has increased and that WSDOT aspires to bolster its list of certified firms in the future but this effort is just beginning and the success of the effort needs to be means tested against the broader population of MBE amp WBE firms included in the CHA base line evaluation As the Disparity Study uses a much broader population of MBE WBE contractors to arrive at its conclusions (both non-certified firms and firms too large for certification) it follows that the calculated DBE proposed goal is overstated to include capacity that does not currently exist within WSDOTrsquos certified DBE framework Unless OMWBE is experiencing sudden and unprecedented success in recruiting new MBEWBE firms the DBE goal should be adjusted downward to recognize that the ldquoready willing and ablerdquo contractors that WSDOT has certified is only a subset of the total MBEWBE contracting population used in the Disparity Study evaluation

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 3 of 6

Until the promised WSDOT outreach registration efforts result in a substantial increase in available certified DBE firms it is premature to count the entire population of minority- and women-owned contractors as available to participate in WSDOT contracting It is unreasonable for WSDOT to project availability capacity using the entire MBEWBE population when only its currently truncated list of certified firms is acceptable to count toward the DBE goal

A corollary to the Increase Certification and Expertise discussion above is that the calculation of the Base Figure evidently includes the broadest practical population of MBE and WBE firms identifiable (without a review of the CHA Master DBE Directory which has not been supplied prior to the close of the public comment period the scope of the directory cannot be ascertained) If this directory includes a large population of MBEWBE firms that are not certified or are too large to be certified then the Base Figure calculation should be adjusted to reflect that certified DBE firms are a fraction of the total MBEWBE firms used to arrive at the 19 suggested DBE goal With respect to the CHA Master Directory it is our understanding the WSDOT was not given the directory as part of its evaluation of the Disparity Study and it follows that it did not evaluate the proposed DBE goal in the context of the CHA Master DBE Directory In our opinion an informed decision on adjusting the CHA baseline goal calculation can only be done after an extensive evaluation of the CHA Master DBE Directory If this has not been done WSDOT has not exercised due diligence in evaluating the context and underpinnings of the CHA Disparity Study and a certified DBE Triennium goal proposal to the FHWA is premature Increase Contract ldquoUnbundlingrdquo ndash If this proposed strategy (suggested by the CHA Study) is undertaken

certified DBE Subcontractors currently available will be engaged as Prime Contractors and the value of their prime contracts will bolster the overall percentage of certified DBE contracting but a systematic effort and strategy to ldquounbundlerdquo has not been articulated by WSDOT The key question of how this effort can be accomplished without increased cost to the taxpayers and increased inconvenience for the traveling public As noted in the CHA study (page 129 final paragraph) ldquoUnbundling must be conducted however within the constraints of the need to ensure efficiency and limit cost to the taxpayersrdquo As of this writing no overarching strategy for further unbundling with proper accountability has been articulated by WSDOT to the DBE Advisory Group

Review Insurance and Experience Requirements ndash Impediments to certified DBE participation due to

necessary insurance and experience standards cannot be solved by the prime contracting community Unless and until WSDOT puts together programs to address the burden of the substantial risks shouldered by Prime Contractors on WSDOT contracts barriers for streamlined utilization of certified DBE firms will continue to exist These market driven barriers will continue to dampen the availability of certified DBE Subcontractors that are able to perform within WSDOTrsquos strict criteria without unduly transferring risk to the Prime Contractor

Better Partnering to Overcome DBE Failures to Perform ndash Prime Contractors are held fully responsible to maintain the project schedule and are subject to project liquidated damages even when they may be struggling to deal with Subcontractor performance issues It is well-established that replacing a certified ldquocondition of awardrdquo (COA) DBE Subcontractor is very onerous and likely very costly to the Prime Contractor Unfortunately the imposition of strict and often counter-productive commercially useful function (CUF) rules often compound this issue as Prime Contractors cannot help COA DBE Subcontractors work through capacity expertise or time-related issues that impact timely performance

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 4 of 6

WSDOT needs to be a much better partner in the process of dealing with under-performing or non-performing certified DBE Subcontractors The current standard operational procedure places all of the exposure for non-performance onto the Prime WSDOT does not have an equitable system to account for non-performing or under-performing certified DBE Subcontractors hired as a condition of award (COA)

Performance Information and Training ndash Commercially useful function rules (CUF) and the lack of clear benchmark definitions for good faith effort (GFE) standards remain barriers for improving accountability within the DBE system and in turn lead to distorted DBE participation rates These items remain amorphous due to lack of training or lack of historic information Chronic uncertainty exists regarding both of these items Until WSDOT changes and improves its approach to provide transparency and certainty for both the prime bidding amp subcontracting parties true certified DBE capacity will continue to be masked and the resultant higher subcontracting costs associated with a distorted marketplace will continue to be hidden

WAPA respectfully suggests that simply adding an ldquoEstimated DBE Subcontract Premiumrdquo line to the current DBE bid forms would help to establish benchmarks that could begin to be used to ldquomeans testrdquo good faith efforts If this information had been gathered over the last 20 years of the DBE program meaningful GFE standards could have been developed and could be in place today

An in-depth review of CUF standards would also provide clarity For instance it is unclear why force account items performed by certified DBEs are currently counted at only 50 of the value of the work How was this benchmark established Has it been reviewed since imposed Did it ldquosolverdquo whatever inequity WSDOT was trying to address Better clarity may lead to more expanded opportunities for certified DBE Subcontractors

Enhanced Supportive Services and Business Development Programs ndash Unless and until stronger programs of these types are shown to be effective in boosting certified DBE business development increased DBE participation due to stronger business acumen should not be relied upon when setting the new DBE goal

Does OMWBE have a reasonable expectation that future plans for enhanced and expanded programs will be more successful than those employed in the past Assuming that certified DBE Subcontractors will be better prepared to deal with the WSDOT contracting environment than in the past should not be relied upon to boost DBE participation goals Especially troubling were the multiple references within the CHA report highlighting that DBEs believe that the staff at OMWBE lack a deep knowledge about the highway construction industry (eg Study page 129 2nd paragraph) Does OMWBE have a path forward that will address this issue and thus improve supportive services impacts

Develop a Bonding and Financing Program for SBEs ndash This is completely outside of the prime contracting

communityrsquos scope of influence WSDOT must find a way to institute changes that both protect the taxpayer and help increase certified DBE bonding capacity and access to financing ndash very large hurtles To assume that these hurtles can effectively be overcome within the 2018 ndash 2020 time frame when they have been chromic issues for the past 20 plus years of DBE program development is not rational

A helpful innovation would be for WSDOT to underwrite performance and payment bonds for certified DBE firms or to create promote a system that helps certified DBE firms obtain private bonding Bridging the gap to address capital access and performance risks (bonding) must be championed by WSDOT

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 5 of 6

Base Figure Adjustment to Address Available Subcontract Volume and DBE Prime Contracts It is a fact that mid- to large-sized MBEWBE firms that compete both as Prime Contractors and as Subcontractors are not eligible to be OMWBE certified DBEs Further the current amount of contract unbundling for greater DBE access to WSDOT prime contracting (see below) accounts for a very low dollar volume of prime contracts performed by certified DBEs Finally by specification (WSDOT standard specification 1-081) Prime Contractors are obligated to perform 30 of the total volume of the work (less specialty work) or stated another way a maximum of 70 of the dollar volume on WSDOT projects is typically available to award to subcontractors These market dynamics are NOT addressed in the Disparity Study A responsible DBE goal made absent of these facts should not be implemented A reasonable adjustment to the proposed 19 DBE goal is presented below

bull The percent of WSDOT prime contracts awarded to certified DBE firms is likely less than 5 by total WSDOT

contract volume Assuming this approximation is valid (likely very conservative) then the amount of WSDOT contract work available to certified DBE firms via subcontracting should be adjusted to account for the factors outlined above The Base Figure (19) should be adjusted to recognize that a 70 maximum subcontractor participation is available (in the numerator) and to account for the assumed 5 certified DBE prime contracts in the denominator Reasonable Base Figure Adjustment 19 (proposed) x 70 subcontracts available divide 95 of Non-Certified DBEs as Prime Contract Volume = 190 x 0737 = 140 adjusted goal This is an adjustment based on the practical dynamics of the WSDOT contracting system and it represents a more realistic look at the true subcontract volume that is available for Prime Contractors to award to certified DBE firms

Conclusions

Until the items listed above are addressed and in place it is not reasonable to believe that DBE goals can be increased by nearly 163 (from 117 to 190) When the projected robust public works contracting market is appropriately considered the true availability of certified DBE Subcontractors for WSDOT contracts will be truncated due to demand across all public works sectors With multiple strong public works programs competing for a limited population of certified DBEs the ability to meet increased WSDOT DBE goals will be severely challenged Without very clear concise and transparent good faith effort rules the ability to address DBE goals that greatly overestimate true near term certified DBE capacity will result in non-attainment bid day chaos failures to perform andor rapidly increased pricing

The clear conclusion is that at this point in time under the current circumstances without effectively instituted new programs rules procedures that could enhance the certified DBE programrsquos overall effectiveness we believe that the DBE goal should remain at or near 12 As OMWBE documents and demonstrates its future successes in improving access and eliminating capacity barriers only then should the DBE goal be re-evaluated and increased

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 6 of 6

In closing please remember that it is rare that the contracting community is asked our opinion with respect to the WSDOTrsquos DBE policies and so this letter is somewhat a vehicle to highlight collective concerns It is our belief that the majority of the Prime Contractors in Washington state support the objective of creating a level playing field for ready willing and able DBEs

If the level playing field is not yet possible in the absence of the DBE program then the key is to set realistic goals that recognize reflect and address the hard realities and market dynamics imposed by WSDOTrsquos bedrock environment of awarding contracts to the lowest cost responsible and responsive Contractor

Respectfully submitted Washington Asphalt Pavement Association

David Gent Tom Gaetz Executive Director Senior Advisor

Attachment A ndash WSDOT Central Puget Sound Public Works Contracting Projection 2018 - 2022

Con

stru

ctio

n Pr

ojec

t Sta

rts

2018

-202

2S

ound

Tra

nsit

$22

6 B

SD

OT

$08

B

Tran

sit

amp O

ther

s$1

7 B

WS

DO

T$6

7 B

Por

t of

Sea

ttle

$15

B

TOTA

L$3

33

B

Source N

ov 1

9 2

017

pres

enta

tion

to W

APA

Ann

ual M

eetin

g

Attachment A

Work (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Dave Gent - WAPA [mailtodavegentasphaltwacom] Sent Thursday December 7 2017 144 PMTo Bayne Jackie ltBayneJwsdotwagovgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hi again Jackie Irsquom fine thanks and hope you are the same Interesting The Master DBE Directory is the basis for and integral to the conclusions of the DisparityStudy Is it not then part of the information needed to fully review and comment on the DisparityStudy Was it not provided by CHA to WSDOT for review We are trying to fully understand thestudy and if this directory was part of the study why would it need to be obtained by a publicrecords disclosure It should be in the public domain and not restricted from ease of access If you are sure that a public records request is needed Irsquoll start that process but we will need tonote that point of fact when we submit our public comments If you are able to reconsider please let me know Respectfully

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Thursday December 7 2017 126 PMTo Dave Gent - WAPA ltdavegentasphaltwacomgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hello Dave I hope you are doing well

That information would likely be obtained through a public disclosure request Best Regards Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Dave Gent - WAPA [mailtodavegentasphaltwacom] Sent Thursday December 7 2017 113 PMTo Bayne Jackie ltBayneJwsdotwagovgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Jackie Can you please provide an electronic file or provide a weblink for the Master DBE Directory thatColette Holt amp Associates developed for the WSDOT Disparity Study 2017 (first referred to on Page 8of the Disparity Study) I did not see a link to this Master DBE Directory within the study Thanks

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Friday October 27 2017 1118 AMTo Kenyon Wendy ltKenyonWwsdotwagovgt Adams E W ltewadamssystemsclcomgtAdekoyaAndrew ltandrewadekoyabccomgt AlyssaBalllegwagov Anindita Mitraltamitracrea-affiliatescomgt APRISeattlehotmailcom Armstrong CharlotteltCharlieAatgwagovgt Ato Apiafi Architects PLLC ltatoaatoapiaficomgt benzfanwaorgBerntsen Teresa (OMWBE) ltTeresaBomwbewagovgt Billingsley Andrealtbillinawsdotwagovgt Bramlet Erica ltEricaBramletlegwagovgt Brooks Julius

ltBrooksJwsdotwagovgt Brown Jason ltjbrownldccorpcomgt bwallacenwlaborersorgCamden Allison ltCamdenAwsdotwagovgt carlllivingstongmailcom Cerda OscarltCerdaOwsdotwagovgt Christopher Chris ltChristCwsdotwagovgt ckerneycaawagovdanplatinumbusinessgroupcom davegentasphaltwacom David BalltDavidsignsnowmillcreekcomgt Davis Khalia ltDavisKhwsdotwagovgt Davis RaShelle (GOVltrashelledavisgovwagovgt Dayton Jo ltDaytonJwsdotwagovgt ddhondtagcwacomDebbieDriverlegwagov Dennis ltdennisahlkiewitcomgt dmcleodnwlaborersorgdrart6651gmailcom Duncan Enid lthigradeincgmailcomgt EltonltEltonwashingtonstatetruckingcomgt eprincecaawagov flemosldccorpcomfmartineznwmtnmsdcorg geoffshookatkncom glovelady ltgloveladyexcelglovescomgtGrabow Katie ltkgrabowsystemsclcomgt Guilfucci Jackie ltJackieGuilfucciskanskacomgt HealyLinda ltHealyLwsdotwagovgt Higginbotham Breanne ltHigginBwsdotwagovgt HirscheyClaudia ltclaudiahirscheycomcastnetgt Holt Colette ltcoletteholtmwbelawcomgt Huff JohnltHuffJwsdotwagovgt Iniguezchawagov JacksonMaynardlegwagov Jimmy Matta(jmattaalcantarassoccom) ltjmattaalcantarassoccomgt kellywickergovwagov Key EarlltKeyEwsdotwagovgt Kirk Jon ltjkirkwhhnfscomgt Kris Purrier ltkpurrierhwageocomgtleewabuildingtradesorg lesliejonessoundtransitorg Liz Evans ltlevansagcwacomgt LopezErin lterinlopezdeswagovgt Martha Cerna ltMarthaPSLCCORGgt Martin-Arnold EdwinaltMartinEwsdotwagovgt Mary Lerdahl ltmarydbeelectricinccomgt McCarty Hannahlthannahmccartylegwagovgt Melissa L Boyles ltmelissaboylesmwbelawcomgt Metcalf KeithltMetcalKwsdotwagovgt michaelicapaawagov Michelle ltMichelleTTCC26netgt MillarRoger ltMillarRwsdotwagovgt Nakamura Jason ltjasonnakamura1-alliancecomgtNavarroLportseattleorg olliepmt-solutionscom pastorbanksesbctacomacom PatrickHughes ltphugheshughesgroupbizgt Petersen Jodi (FHWA) ltJodiPetersendotgovgtrabbottliunaorg rcarmsteadgmailcom ricemportseattleorg Riley D ltdrileylydigcomgtSeling ltSelingjpfranciscomgt sherryharrisergosynchcom Stell MellodyltStellMwsdotwagovgt terigobintulaliptribes-nsngov timwilliamfactorycom tinaterra-tdicom tkellyldccorpcom tomgaetzmsncom vcollinsacec-waorgverlenejazzmsncom Wang Albert ltWangAatgwagovgt Waugh GregltGregWMaxKuneyComgt Yates Henry ltYatesHWSDOTWAGOVgtCc Tom Gaetz lttomgaetzmsncomgt Dave Gent - WAPA ltdavegentasphaltwacomgt VanCollins ltvcollinsacec-waorggt Daniel Seydel II ltdanplatinumbusinessgroupcomgt MaynardJackson ltJacksonMaynardlegwagovgt Carl Livingston ltcarlllivingstongmailcomgt DonMcLeod ltdmcleodnwlaborersorggt JIMMY MATTA ltjimmymattamsncomgt Prince Ed(CAAA) lteprincecaawagovgt David DHondt ltddhondtagcwacomgt Irene Reyesltgloveladyexcelsupplycompanycomgt McDaniel Craig ltMcDaniCwsdotwagovgtsherryharrisergosynchcomSubject WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Good morning On Monday October 30th WSDOT will be releasing the proposed overall Federal HighwayAdministration Disadvantaged Business Enterprise goal attached for public comment throughDecember 15 2017 This overall DBE goal is based upon the recently completely DBE ProgramDisparity Study WSDOT is proposing a 19 percent overall DBE participation goal on Federal Highway

Administration-funded projects for federal fiscal years 2018 through 2020 DBE goals fortransportation projects that receive federal funds represent a percentage of the value of work inwhich minority- and women-owned businesses should participate Once finalized and submitted toFHWA early next year the goal will be effective through Sept 30 2020

The purpose of the DBE program is to create a level playing field for firms owned and operated bydisadvantaged individuals wanting to participate in federally assisted highway transit and aviationprograms The attached overall DBE goal is for FHWA funded projects WSDOT will be updating theFTA and FAA overall DBE goals in the near future

If you have any questions please contact Earl Key Director of the Office of Equal Opportunity at3607057091 or KeyEwsdotwagov Thank you Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

  • Proof-Of-Publicationpdf
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            • WSDOT propsed DBE Goals
            • WTS - Disparity Study Comment Letter

Additionally we expect WSDOTrsquos work in this region to accelerate as North Spokane Corridor(NSC) construction proceeds At times our area is reaching the limits overall of our contractingcommunity the City has worked to release its projects in the first quarter of the year as muchas possible to lock in contractors and receive better pricing The capacity of existing DBEs in our region simply cannot meet that current high demand Some DBE firms are tempted to agree to more work in these times but we have found that insome cases DBEs have stretched themselves too thin On two recent City projects generalcontractors were unable to meet DBE goals as a result of DBE firms that couldnrsquot fulfill theircommitments for providing personnel or equipment It also seems implausible to expect DBEs from the West Side to mobilize teams to work on Cityof Spokane projects in large numbers In fact the Disparity Studyrsquos author responded at arecent meeting on this topic that a DBE from the West Side only very rarely completes workon the East Side of the state We would also be concerned about moving the good-paying jobs that construction providesoutside of our region The Cityrsquos median household income is $44350 considerably lower than theState of Washington MHI of $64129 and the Seattle MHI of $77351 Our leaders are working tocreate good-paying jobs for our citizens not export them to an already wealthier part of the state Additionally these projects are also funded with local dollars and our citizens expect their money toput their neighbors to work With the above considered the City is seeking

middot DBE goals for the 2018-2020 compliance period for Eastern Washington that arereflective of the current availability of DBE firms in our region

middot The re-inclusion of non-minority women owned DBEs in achieving DBE goals InSpokane non-minority women owned DBEs make up the majority of the availableDBEs And current information shows that women in Spokane overall still lag behindmen in opportunities and wages The Cityrsquos own ldquoGender and Racial Equityrdquo reportfrom 2016 noted that overall working women earned 783 percent of the earnings ofworking men in 2014 down from 827 percent in 2009 We need to lift up all women

middot The development of WSDOT programs to encourage the growth of existing andnew DBEs who can be used on street and highway projects We are encouraged by theproposed mentorproteacutegeacute program to increase the number and capacity of DBEs inEastern Washington Programs that address other barriers such as assistance withcompleting documentation or access to bonding capacity also could aid growth ofDBEs

middot The ability for WSDOT to adjust goals on a project if a selected DBE is unable tocomplete its commitments on a project This would help enable our contractors totake a chance on a new or inexperienced DBE to complete work

middot Recognition of local programs that strive to increase diversity in the work force Forexample the City operates a robust apprenticeship program that requires 15 percentof the labor hours on public works jobs greater than $600000 to be performed byapprentices The apprentice programs in our region are stepping up recruitmentefforts and are specifically seeking to recruit more youth women and minorities intoapprentice slots

As we seek to achieve the goal of increasing participation in street and highway constructionby companies owned by disadvantaged individuals we must also acknowledge that businessdevelopment and growth happens over time We must lay the groundwork now to build abase of DBEs that can help us achieve higher utilization goals over time Sincerely Marlene FeistDirector of Strategic DevelopmentPublic Works amp UtilitiesCity of Spokane

Marlene Feist | City of Spokane | Public Works Director of Strategic Development5096256505 | cell 5097109214 | mfeistspokanecityorg | spokanecityorg

From Hall MattTo WSDOT Disparity StudySubject FW WSDOT News - WSDOT seeks comments on proposed DBE contracting goal for highway projectsDate Friday December 15 2017 11956 PMAttachments WSDOT proposed DBE goal through 2020pdf

From Hall Matt Sent Friday December 15 2017 117 PMTo BayneJwsdotwagovCc Keniston Rick (KenistRwsdotwagov) MolyneKwsdotwagov SusanWilsonclarkwagovSubject WSDOT News - WSDOT seeks comments on proposed DBE contracting goal for highwayprojects Hello Jackie Please see our comments attached regarding the WSDOT proposed DBE goals Thanks for the opportunity to provide comments Matt HallClark County Public Works Washington State Department of Transportation ndash NEWSHeadquarters ndash 310 Maple Park Avenue SE ndash Olympia WA 98504-7314 ndash 360 705-7000 FOR IMMEDIATE RELEASEOct 30 2017 Contact Jackie Bayne Office of Equal Opportunity 360 705-7084

WSDOT seeks comments on proposed DBEcontracting goal for highway projectsComments accepted through Dec 15OLYMPIA ndash Contractors trade and labor organizations small and disadvantaged businessesand all others who may be interested in working with the Washington State Department ofTransportation are invited to comment on the agencyrsquos proposed Disadvantaged BusinessEnterprise goal for Federal Highway Administration contractsDBE goals for transportation projects that receive federal funds represent a percentage of thevalue of work in which minority- and women-owned businesses should participate WSDOTis proposing a 19 percent overall DBE participation goal on Federal Highway Administration-funded projects for federal fiscal years 2018 through 2020Once submitted to FHWA early next year the goal will be effective through Sept 30 2020The purpose of the DBE program is to create a level playing field for firms owned andoperated by disadvantaged individuals wanting to participate in federally assisted highwaytransit and aviation programsConnecting with communitiesWSDOT will host a series of public meetings to provide opportunities for individuals tocomment in person

Spokane

2 ndash 4 pm Tuesday Nov 28WSDOT Eastern Region Headquarters2714 N Mayfair St Spokane

Vancouver

2 ndash 4 pm Wednesday Nov 29WSDOT Vancouver Headquarters11018 NE 51st Circle Vancouver

Seattle

2 ndash 4 pm Thursday Dec 7WSDOT Northwest Region Headquarters15700 Dayton Ave N Shoreline

Other ways to provide commentThose who are unable to attend one of the meetings can participate in a no-cost webinar from230 ndash 430 pm Tuesday Dec 5 Registration for the webinar is required Those interested inparticipating should email DisparityStudywsdotwagovWritten comments can also be submitted by mail or emailJackie Bayne Policy amp Reporting ManagerWashington State Department of TransportationOffice of Equal OpportunityPO Box 47314Olympia WA 98504-7314DisparityStudywsdotwagovDocuments detailing the methodology used for determining the FHWA DBE goals areavailable for review at all WSDOT region headquarters offices and at the TransportationBuilding 310 Maple Park Ave SE Olympia They are also available online atwwwwsdotwagovequalopportunityWSDOT will consider all written comments received through Friday Dec 15 2017 Hyperlinks within this release

WSDOT Region offices wwwwsdotwagovContactofficelocationhtmregion

WSDOT keeps people businesses and the economy moving by operating and improving the statestransportation systems To learn more about what were doing go to wwwwsdotwagovnews forpictures videos news and blogs Real time traffic information is available at wwwwsdotcomtraffic or bydialing 511 Americans with Disabilities Act (ADA) InformationAccommodation requests for people with disabilities can be made by contacting the WSDOTDiversityADA Affairs team at wsdotadawsdotwagov or by calling toll-free 855-362-4ADA (4232)Persons who are deaf or hard of hearing may make a request by calling the Washington State Relay at711 Title VI Statement to Public It is WSDOTrsquos policy to assure that no person shall on the grounds ofrace color national origin or sex as provided by Title VI of the Civil Rights Act of 1964 be excluded fromparticipation in be denied the benefits of or be otherwise discriminated against under any of its federallyfunded programs and activities Any person who believes his or her Title VI protection has been violatedmay file a complaint with WSDOTrsquos Office of Equal Opportunity For additional information regarding Title

VI complaint procedures andor information regarding our non-discrimination obligations please contactOEOrsquos Title VI Coordinator at 360-705-7090 To unsubscribe to WSDOT media releases please reply and type REMOVE in the subject line

This e-mail and related attachments and any response may be subject to public disclosure under state law

From Cochrane EmilieTo WSDOT Disparity StudyCc Eugenis Susan Cowlitz Co Public Works - Brad BastinSubject Proposed DBE GoalsDate Thursday December 14 2017 85006 AMAttachments image002png

DBE Goals - Commentspdf

Please see the attached letter with comments regarding the proposed DBE Goals Ahard copy will be sent out today

Thanks

Emilie CochraneCowlitz County Public Works1600 ndash 13th Avenue SKelso WA 98626360-577-3030 ext 6523

From Michelle WolcottTo Bayne JackieCc Robideau Christopher LSubject RE DBE Contracting Goal CommentsDate Tuesday November 7 2017 65448 AMAttachments image001png

Thank you JackieWhat a relief to know that we have been heard and are not the only small business facing thisstruggle Your email is comforting

Yes you can provide us with additional assistanceLet me introduce my boss and Senior Vice President of Red Plains Professional Chris Robideau

Chris will be your contact from here since I will be leaving the company November 17th As a WA DBE we are ldquoeligible for limited DBE Support Services (SS) funding when funds becomeavailablerdquo When will this happen And are we registered or on a list to receive fundingIs the WSDOT ICR Training a prerequisite for the funding Or just helpful knowledge

Thank you for your time Jackie I will follow through with the training

Michelle Wolcott EIT Quality Control Engineer

2103 NE 129th Street Suite 201 Vancouver WA 98686 Office (360) 448-7999 Fax (360) 258-0274

wwwred-plainscom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Monday November 6 2017 332 PMTo Michelle Wolcott ltMichelleWolcottred-plainscomgtSubject RE DBE Contracting Goal Comments

Hi Michelle

Thank you for your interest in doing business with WSDOT I apologize for the lack of informationyou have come up against in your attempts to attain access to WSDOT ICR program

As you may well know WSDOT has recently completed a state wide agency specific diversity studyAnecdotal comments submitted with the study concur with your experience Not only did somerespondents find it difficult to become prequalified they also commented that the required indirectrate of 110 percent is too low to be profitable These requirements are currently under advisementby WSDOT and new DBE program requirements are currently in the process of seeking public input

As you are an OMWBE certified DBE in Washington State you will be eligible for limited DBE SupportServices (SS) funding when these funds become available At that time funds may become availableto assist you in your struggle to attain ICR eligibility Here is a link to WSDOTrsquos Indirect Cost RateTraining httpswwwwsdotwagovAuditICRTraininghtm If you would like me to find additionaltraining or information please let me know

If I can provide additional assistance of information please let me know

Best Regards

Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Michelle Wolcott [mailtoMichelleWolcottred-plainscom] Sent Tuesday October 31 2017 835 AMTo WSDOT Disparity Study ltDisparityStudyWSDOTWAGOVgtSubject DBE Contracting Goal Comments

HelloI have been in contact with WSDOT for 6 months sharing my disparaging story of beinga small DBE unable to submit SOQs for projects requiring a WSDOT Audited IndirectCost Rate Approval We do not have an in-house accountant and our outsideaccountant has explained to get all the paperwork together for WSDOT would take 40hours of work $9000 annually We cannot justify this cost to submit on a project thatwe may not acquire We have been directed to seek financial assistance from WSDOT Federal SBA andWashington State Office for Women and Minority Owned Enterprises all of whichprovided negative responses

As a DBE business in 11 states we are supporting the 19 incentive for federallyfunded contracts but we are frustrated in the fact that we will not be one of the luckyfew to participateWe have been in business 20 years From our Vancouver Washington office our clientsare the Native American tribes across the country with all contracts federally funded This summer alone the WSDOT ICR Approval has squashed our ability to submit on twoprojects that we were perfectly qualified to performI have attached previous emails to show a sample of who I have been dealing with

Thank you

Michelle Wolcott EIT Quality Control Engineer

ltimage001pnggt

2103 NE 129th Street Suite 201 Vancouver WA 98686 Office (360) 448-7999 Fax (360) 258-0274 wwwred-plainscom

From Michelle Wolcott Sent Monday July 10 2017 954 AMTo Harvey Schatzie ltHarveySwsdotwagovgtSubject RE WSDOT Indirect Cost Rate Process

Good Morning Schatzie

This is Michelle Wolcott from Red We spoke Friday June 30th about the ICRprocess and you were very encouraging I relayed the information to my boss who ishere in Vancouver then he shared with the president bookkeeper and our accountantin Oklahoma We had FAR compliance with Oklahoma DOT in 2015 so we are noteligible for the Safe Harbor Program Our account said our timekeeping system doesnot breakdown the hours and pay in the format WSDOT wants to have it presented andto get the documents in order would take the CPA and an assistant $9000 in paidhours of work It turns out this would have to be annually The other option is to hirean outside CPA firm to do the audit for us at $20000 annually

Our president said in the past we received funding assistance from the Stateof Oklahoma to get our ICR approval Does WSDOT offer any financial assistance for small businesses to reach compliance We are also a DBE in WA I have requested the same information from WA PTAC at theVancouver Chamber of Commerce and from WA Office of Minority and Women OwnedBusiness Enterprises and they both said there was nothing but suggested to askWSDOTThank you for your helpMichelle Wolcott EIT

Hello Michelle sorry but I am not aware of any grants But I was looking at this andthere is a POC at the bottom you may try to discuss the audit issuesHollyHolly BoehmeBusiness Opportunity Specialist | 8(a) Business Development ProgramUS Small Business Administration bull Seattle District Office

Hello Michelle -

Thank you for your email Im not aware of any funding available for thispurpose but do agree its quite a bit for a DBE firm to have as an expense Mostof the firms I work with do a lot more work on the Oregon side so perhaps thereare programs available that I just havent heard of Im copying my colleagueHoly Boehme in our Seattle District Office to see if they are aware of any suchassistance

Holly might there be some small business incubators or other resources availablein WA to help a small firm with the expense of getting a WSDOT AuditedIndirect Cost Rate approval Please reply all with anything you may have

Thank you

Yuri Yoshida Dyson Business Opportunity SpecialistUS SMALL BUSINESS ADMINISTRATION Portland District OfficePhone 503-326-6692 Fax 202-292-3872 wwwsbagovor

From Troy HalbergTo Bayne JackieSubject Re DBE Goal CommentsDate Wednesday December 13 2017 35533 PM

JackieToday was another example of why the goals should not be raised There were 2 jobs which Iwas low on and did not get due to the high goals This is exactly what will happen when thegoals get raised The first job was the 9180 Anacortes Ferry Paving Northeast Electric $244924 and UDBE $318000 Second job was the 9172 SR 9 East Junction Job Northeast Electric $68503 and UDBE $76300

Does this seem like a good way to spend the tax payer money I do not see how we are tosurvive if the goals get to 21

Thanks

Troy HalbergOffice360-225-7004Cell360-931-3990Fax360-225-7001

On Thu Nov 30 2017 at 1131 AM Bayne Jackie ltBayneJwsdotwagovgt wrote

Good Morning Troy

Thank you for taking the time to provide us with your experiences with the DBE Program TheWashington State Department of Transportation takes the public involvement process veryseriously and your comments will be taken into consideration prior to a final decision regardingthe overall DBE program goal

If I can be of further assistance please let me know

Best Regards

Jackie Bayne

Policy and Reporting Manager

WSDOT Office of Equal Opportunity

Work (360) 705-7084

Cell (360) 338-5783

BayneJwsdotwagov

From Troy Halberg [mailtotroyhnellcnet] Sent Wednesday November 29 2017 144 PMTo WSDOT Disparity Study ltDisparityStudyWSDOTWAGOVgtSubject DBE Goal Comments

If these goals are to be set that high this would make us as a non DBE small contractor at amajor disadvantage With these high of goals this is like handing all of the DBE electricalcontractors every job These general contractors will have no option but to use thembecause of the goals This should not go into effect We have been low on several jobs in thepast and have not gotten them do to the goals being 18 When this goes on it puts all therest of us contractors at a disadvantage Please consider the smaller non DBE contractorsthat are looking to survive as well

Thanks

Troy Halberg

Office360-225-7004

Cell360-931-3990

Fax360-225-7001

From Daniel Seydel IITo Bayne JackieCc Key Earl daneiwashingtonorg Nadeem Ismail Mussie Tewelde (mteweldehydro2geotechcom)

graceflyrightaolcom Mary Wenner Watkinson LarrySubject Re Seydel Dan - WSDOT Disparity Study Presentation Public TestimonyDate Friday December 8 2017 30323 PM

Jackie

It was my hope that the comments would be put into record I was also hoping that you wouldnot have to be the one having to formulate responses for each clarification If that is the caseI know you are swamped and will then I just ask my comments be only part of the recordHowever if there is dedicated staff that is going to be compiling and responding to theclarification then the below questions would be the priorities of most interest

These were questions unrelated to the disparity study and hopefully should be doable

1) Do you have any reports on your outcomes from the past 5 years on DBE support servicesand specific key performance measures from previous years funding (ie how many firmsutilized what was the objectives were objectives met did outcomes meet total satisfaction ifnot why next steps what was the firms capacity before and after services were performed (iesales employees bonding if applicable insurance equipment line of credit if applicablenumbertype of customers how are they doing now etc))

2) What other changes or improvements other than allowing DBES to select their own serviceproviders and a staff change will be a part of this new program

3) Was consideration to provide the new mentor protege consultant rather than separating theactivities into support services andor technical assistance

Disparity study clarifications

1) Will WSDOT consider sponsoring legislation to support the policy changes and goalincreases to insure manditory goals wont be necessary

a) If not what measures will you grant primes to operate outside the box (ie entertain bestvalue over low bid modify responsiveness by subs to require adherence to meeting voluntarygoals developing standards around federally funded gccm and other low bid procurementsthat give powers to primes to meet objectives including but not limited to mentor protegerelationships joint ventures bond waiving techniques cash flow assistance material andequipment acquisition manufacturer development specifications that have only DBES orinclude equal number of DBES as non DBES as approved installers etc)

2) Will the disparity study consultant be available for implementation or information gatheringfrom other regions

5) Will WSDOT be hiring more diverse staff amp professionaltechnical service providers inother departments outside OEO to insure policies commitments and evaluations areperformed in manner that improves diversity that reflects the communities WSDOT serves bythoughtful and legal efforts increase participation thus creating successful outcomes includingpartnerships and collaborations

Thank you and Merry Christmas

Hi Dan

Thank you for providing such thoughtful public comments questions and testimony

Regarding your public testimony below - I do not believe I am not able to answer questions ifthey are public comments Please let me know what part of this email you would likeclarification on and what part you would like considered public testimony

I appreciate your thoughtful consideration of WSDOTrsquos implementation of our civil rightsprograms

Best Regards

Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

DIDaniel Seydel IIFyi Daniel J Seydel II Platinum Group LLC 2064060844 f) 2062999934wwwplatinumbusinessgroupcom Small Business is the Answer FREE TRAINING FORENTREPRENEURS amp JOB SEEKERS - Polish your skills or make your firm standout thanksto the EntrepreneurialThu 233pDI

Daniel Seydel IIThu 1272017 1123 AMInbox Sent ItemsShow all 7 recipientsTobaynejwsdotwagov ltBayneJwsdotwagovgtJackie

Per your request below are my questions and comments some of which were verbally sharedyesterday

Congratulations on receiving the blessing of additional technical assistance dollars andcompleting the DBE Disparity Study per your report

1) Do you have any reports on your outcomes from the past 5 years on DBE support servicesand specific key performance measures from previous years funding (ie how many firmsutilized what was the objectives were objectives met did outcomes meet total satisfaction ifnot why next steps what was the firms capacity before and after services were performed (ie

sales employees bonding if applicable insurance equipment line of credit if applicablenumbertype of customers how are they doing now etc))

2) What other changes or improvements other than allowing DBES to select their own serviceproviders and a staff change will be a part of this new program

3) Was consideration to provide the new mentor protege consultant rather than separating theactivities into support services andor technical assistance

Disparity study clarifications andor comments

1) Will WSDOT consider sponsoring legislation to support the policy changes and goalincreases to insure manditory goals wont be necessary

a) If not what measures will you grant primes to operate outside the box (ie entertain bestvalue over low bid modify responsiveness by subs to require adherence to meeting voluntarygoals developing standards around federally funded gccm and other low bid procurementsthat give powers to primes to meet objectives including but not limited to mentor protegerelationships joint ventures bond waiving techniques cash flow assistance material andequipment acquisition manufacturer development specifications that have only DBES orinclude equal number of DBES as non DBES as approved installers etc)

2) Will the disparity study consultant be available for implementation or information gatheringfrom other regions

3) What lessons did WSDOT learn that it did not know from the other study(s)

4) What would WSDOT do different (ie scope time line process approach etc)

5) Will WSDOT be hiring more diverse staff amp professionaltechnical service providers inother departments outside OEO to insure policies commitments and evaluations areperformed in manner that improves diversity that reflects the communities WSDOT serves bythoughtful and legal efforts increase participation thus creating successful outcomes includingpartnerships and collaborations

Daniel J Seydel IIPlatinum Group LLC 2064060844f) 2062999934wwwplatinumbusinessgroupcom

Small Business is the Answer

FREE TRAINING FOR ENTREPRENEURS amp JOB SEEKERS - Polish your skills or makeyour firm standout thanks to the Entrepreneurial Institute of Washington

httpswwwyoutubecomchannelUCKL5YeVxL29HnNxqnb6hmXA

LIKE US on FaceBook if an Active Professional Development workshop provided by EIW

Construction University helps your firm or has benefited you

httpswwwfacebookcomEIWashingtonref=hl

From Bayne Jackie ltBayneJwsdotwagovgtSent Friday December 8 2017 10139 PMTo Daniel Seydel IICc Key Earl daneiwashingtonorg Nadeem Ismail Mussie Tewelde(mteweldehydro2geotechcom) graceflyrightaolcom Mary Wenner Watkinson LarrySubject RE Seydel Dan - WSDOT Disparity Study Presentation Public Testimony Hi Dan Thank you for providing such thoughtful public comments questions and testimony Regarding your public testimony below - I do not believe I am not able to answer questions if theyare public comments Please let me know what part of this email you would like clarification on andwhat part you would like considered public testimony I appreciate your thoughtful consideration of WSDOTrsquos implementation of our civil rights programs Best Regards Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov From Daniel Seydel II [mailtodanplatinumbusinessgroupcom] Sent Thursday December 7 2017 1123 AMTo Bayne Jackie ltBayneJwsdotwagovgtCc Key Earl ltKeyEwsdotwagovgt daneiwashingtonorg Nadeem Ismailltnipaintingearthlinknetgt Mussie Tewelde (mteweldehydro2geotechcom)ltmteweldehydro2geotechcomgt graceflyrightaolcom Mary Wennerltmwenn0108yahoocomgtSubject Seydel Dan - WSDOT Disparity Study Presentation Public Testimony Jackie

Per your request below are my questions and comments some of which were verbally sharedyesterday

Congratulations on receiving the blessing of additional technical assistance dollars andcompleting the DBE Disparity Study per your report

1) Do you have any reports on your outcomes from the past 5 years on DBE support servicesand specific key performance measures from previous years funding (ie how many firmsutilized what was the objectives were objectives met did outcomes meet total satisfaction ifnot why next steps what was the firms capacity before and after services were performed (iesales employees bonding if applicable insurance equipment line of credit if applicablenumbertype of customers how are they doing now etc))

2) What other changes or improvements other than allowing DBES to select their own serviceproviders and a staff change will be a part of this new program

3) Was consideration to provide the new mentor protege consultant rather than separating theactivities into support services andor technical assistance

Disparity study clarifications andor comments

1) Will WSDOT consider sponsoring legislation to support the policy changes and goalincreases to insure manditory goals wont be necessary

a) If not what measures will you grant primes to operate outside the box (ie entertain bestvalue over low bid modify responsiveness by subs to require adherence to meeting voluntarygoals developing standards around federally funded gccm and other low bid procurementsthat give powers to primes to meet objectives including but not limited to mentor protegerelationships joint ventures bond waiving techniques cash flow assistance material andequipment acquisition manufacturer development specifications that have only DBES orinclude equal number of DBES as non DBES as approved installers etc)

2) Will the disparity study consultant be available for implementation or information gatheringfrom other regions

3) What lessons did WSDOT learn that it did not know from the other study(s)

4) What would WSDOT do different (ie scope time line process approach etc)

5) Will WSDOT be hiring more diverse staff amp professionaltechnical service providers inother departments outside OEO to insure policies commitments and evaluations areperformed in manner that improves diversity that reflects the communities WSDOT serves bythoughtful and legal efforts increase participation thus creating successful outcomes includingpartnerships and collaborations

Thank you for your hard work

Daniel J Seydel IIPlatinum Group LLC2064060844f) 2062999934wwwplatinumbusinessgroupcom

Small Business is the Answer

FREE TRAINING FOR ENTREPRENEURS amp JOB SEEKERS - Polish your skills or makeyour firm standout thanks to the Entrepreneurial Institute of Washington

httpswwwyoutubecomchannelUCKL5YeVxL29HnNxqnb6hmXA

LIKE US on FaceBook if an Active Professional Development workshop provided by EIWConstruction University helps your firm or has benefited you

httpswwwfacebookcomEIWashingtonref=hl

From Erin EhlingerTo Bayne JackieSubject Support for WSDOTs proposed DBE goalDate Wednesday December 13 2017 115417 AM

I am writing to support the WSDOT recommended DBE Goal for FHWA contracts of 190 I also want to express my appreciation for the thoroughness of the WSDOT Disparity study and howthe study disclosed the disparity in WSDOT contracts that do not have a DBE or WBE goal ndash furtherreinforcing that all women-owned firms and minority owned firms face equity issues I remain concerned with the methodology required by the Code of Federal Regulations and case lawbecause of the dependence on the availability of firms in the calculation An unintendedconsequence of removing either gender or race from the goal is that many of these firms would goout of business the availability decreases and the formula then results in a smaller DBE goal Pleaselet me know how I can help influence a change to the CFR Thank you Erin Ehlinger

Erin Ehlinger PEPresident

24036 SE 47th StSammamish WA 98029erinehlingersmartcitytrafficcom425-221-0320

From Jackie EtterTo WSDOT Disparity StudySubject Why we need mandatory goalsDate Friday December 1 2017 61859 PM

As a DBE participating in bidding process I have found that regardless of the language which claims to insurethat disadvantaged business enterprises shall not be discriminated against the only way to ensure that this does nothappen is by mandating affirmative action goals Having been overlooked time and time again because of my gender when I have submitted bids that are verycompetitive with other bidders is very frustrating I have had many instances of companies using my price to getmy non DBE competitors to lower theirs The voluntary or laudatory DBE goals do nothing to ensure a level playing fieldThe only way to ensure non-discrimination is through mandatory goals

Jackie EtterWest Star Construction of Spokane

Sent from my iPhone

From Claudia HirscheyTo Key Earl Bayne JackieSubject WSDOT DBE Goal - Comment in supportDate Tuesday December 12 2017 61937 PM

Dear Earl and Jackie The WSDOT recommended DBE Goal for FHWA contracts of 190 is a small and important increasethat can further achieve equity in WSDOTFHWA contracting I am in support of the 19 DBE Goal I also want to express my appreciation for the thoroughness of the WSDOT Disparity study and howthe study disclosed the disparity in WSDOT contracts that do not have a DBE or WBE goal ndash furtherreinforcing that all women-owned firms and minority owned firms face equity issues I remain concerned with the methodology required by the Code of Federal Regulations and case lawbecause of the dependence on the availability of firms in the calculation An unintendedconsequence of removing either gender or race from the goal is that many of these firms would goout of business the availability decreases and the formula then results in a smaller DBE goal Sincerely Claudia S Hirschey PETransportation Consulting Servicesclaudiahirscheycomcastnethttphirscheytcscom2068564988 Mobile

From Nate ThomasTo WSDOT Disparity StudySubject WSDOT Proposes DBE goal of 19Date Thursday December 7 2017 42720 PM

The WSDOT should look into similar ways the Federal Gov has handled the equal opportunity forthose that fall under the DBE status and set aside specific projects for the DBErsquos and moreimportantly UDBErsquos so these companies have better chance of landing contracts Maybe a lot 10 ofthe DBE goal to set aside for only DBEs and other 9 goal met as it is done currently with COA onlarger contracts Nate ThomasSenior EstimatorD 5095688085 | C 5099941156331 North Fancher Road | Spokane WA | 99212

The information contained in this email including any attachments is confidential and may beprivileged It is intended only for the person or entity to which it is addressed and no waiver isintended by sending this email If the reader is not the intended recipient you are herebynotified that any review retransmission dissemination or other use of or taking any action inreliance upon this information is strictly prohibited If you have received this email in errorkindly notify the sender by reply email and delete the original message from any computerThank You

From Brian FujiiTo WSDOT Disparity StudySubject WSDOT propsed DBE GoalsDate Thursday December 7 2017 110638 AM

Good morning Jackie

I wanted to comment on WSDOTs proposed DBE goal to 19 I believe WSDOTs plan toincrease the overall DBE goal to 19 will provide greater opportunities for DBE contractorsin different disciplines to participate in federally funded contracts

Without the new DBE requirement and with Proposition 200 there are limited opportunitiesfor DBE contractors in disciplines different than the typical trucking flagging and rebar Inaddition there are no incentives for general contractors to go out beyond the usual truckingflagging and rebar DBE subcontractors

Increasing the DBE goals will provide opportunities for different DBE contractors in differentdisciplines to participate in WSDOT federally funded projects

Thank you for your time

RespectfullyBrian FujiiPresident Subsurface ConstructionP 2063836478F 2069604639MDBE 4M0024998

From Forman StephanieTo Bayne JackieCc Millar Roger christinenhanmailhousegov Claudia Hirschey Sarah Corbin Jiang Yingle

efaulknerenviroissuescom Diana Giraldo Kelly CheesemanSubject WTS - Disparity Study Comment LetterDate Friday December 15 2017 71020 PMAttachments 2017_Dec 15_WTSCommentLetter_WSDOT DBE Goalpdf

Dear Ms Bayne Please find our attached letter which summarizes the WTS Puget Sound Chapterrsquos support foradvancement of women in transportation and our comment letter regarding the recent DisparityStudy Please feel free to contact me if you have any questions or would like to discuss Sincerely Stephanie S Forman PEWTS Puget Sound President Transportation Project Manager

929 108th Avenue NE Suite 1300Bellevue WA 98004D 4254681548 M 2062291745stephanieformanhdrinccom

December 15 2017

Jackie Bayne Policy and Reporting Manager

Office of Equal Opportunity

Washington State Department of Transportation

PO Box 47314

Olympia WA 98504-7314

Dear Ms Bayne

On behalf of the Puget Sound Chapter of Womenrsquos Transportation Seminar (WTS) we would

like to thank the Washington State Department of Transportation for presenting to our

organization the DBE Disparity Study results We very much appreciated the presentation by Earl

Key Director of WSDOTrsquos Office of Equal Opportunity Teresa Berntsen (Director Office of Minority

and Womens Business Enterprises) as well as Leslie Jones (Director Sound Transit Office of Small

Business Development and Labor Compliance)

Following a review of the WSDOT Disparity Study and as a result of consultation with WTS

International we would like to provide WSDOT with our comments for your consideration

As you know WTS is an organization focused exclusively on attracting retaining and advancing

women in transportation By the year 2018 there will be thousands of vacancies in the

transportation industry for qualified professionals and while women account for more than half of

the worldrsquos workforce they are a very small minority in transportation disciplines

We are pleased that the outcome of the 2017 Disparity Study that recognizes the on-going barriers

for DBEs including women-owned businesses in transportation The WSDOT recommended DBE

Goal of 190 is a small and important increase that can further achieve equity in WSDOTFHWA

contracting We are also pleased that the 2017 Disparity Study has documented the disparity in

WSDOT contracts that do not have a DBE or WBE goal ndash further reinforcing that all women-owned

firms and minority owned firms face equity issues We are encouraged that the WSDOT has asked

FHWA to rescind the 2016 waiver

While WTSrsquo mission is specific to the advancement of women we are a race-neutral organization To

this end we are also deeply concerned about the underutilization of minority owned firms There is

no equity or ldquofair playing fieldrdquo without equity for all gender and races We remained concerned with

the methodology required by the Code of Federal Regulations and case law because of the

dependence on the availability of firms in the calculation An unintended consequence of removing

either gender or race from the goal is that many of these firms would go out of business the

availability decreases and the formula then results in a smaller DBE goal This consequence is

contrary to our mission

We look forward to our continued participation in WSDOTrsquos DBE advisory group we are anticipating

notice that the 2016 waiver has been rescinded and how we can work together to continue

advancing minority and women-owned firms in the transportation field

Sincerely

WTS Puget Sound Chapter

Stephanie Forman

President

C Roger Millar Secretary WSDOT

C Representative Adam Smith 9th Congressional District Washington co Christine Nhan

WTS Puget Sound Chapter

PO Box 3461

Bellevue Washington 98009

From Dave Gent - WAPATo Bayne JackieCc Tom GaetzSubject WAPA Public Comments - RE WSDOT FHWA Disadvantaged Business Enterprise Proposed GoalDate Friday December 15 2017 14119 PMAttachments 12152017 DBE Proposed Goal - WAPA Public Comments Letterpdf

Good afternoon Jackie Please find attached WAPArsquos ldquofor the public recordrdquo comments with respect to WSDOTrsquos proposedDBE Goals FHWA funded work I assume that the Master DBE Directory was not sent to you this week so as a result we were notable to review the directory before the close of the public comment period That fact is noted withinour comment letter Thank you for your efforts Have a good weekend

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Friday December 8 2017 1219 PMTo Dave Gent - WAPA ltdavegentasphaltwacomgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hello Dave WSDOT did not take possession of this directory as part of our review process We will provide youwith the records without submitting a formal request However we need to get them from theconsultant first I will hopefully have them to provide next week I will keep you updated on therequest Have a nice weekend Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal Opportunity

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

December 15 2017

Jackie Bayne Policy Manager WSDOT Office of Equal Opportunity Delivered via e-mail to BayneJwsdotwagov RE Public Comment (as requested) to Proposed Overall DBE Goal for the FHWA (2018 ndash 2020) Ms Bayne Thank you for your presentation via webinar on December 5 2017 outlining WSDOTrsquos evaluation process used to determine the proposed overall DBE goal for the FHWA Thank you also for the Colette Holt amp Associates (CHA) DBE Advisory Group presentation made on September 14 2017 Both presentations helped to distill the findings of the 2017 Disparity Study produced by CHA In response to Earl Keyrsquos initial informal request to comment on the proposed overall DBE goal made during the DBE Advisory Committee teleconference held on October 12th we provided a list of reasons that we believe justify a lower DBE goal than is now being proposed Our initial response to Mr Keyrsquos request did not serve to influence WSDOT and the current proposed goal remains at 190 The arguments provided on October 12th against the significant increase in the proposed DBE goal (versus the previous goal and recent historic DBE participation) are repeated and supplemented below and will serve as the Asphalt Pavement Associationrsquos (WAPArsquos) official public comments

In concert with WSDOT and the OWMBE WAPA and the construction firms that WAPA represents have demonstrated a commitment to the principals of equal opportunity for all ldquoready willing and ablerdquo firms for the entire history that our DBE program has been in place WAPA has continuously demonstrated its commitment to the goals of the DBE program and for increasing the representation of disadvantaged groups within our industry as both workers and owners of firms Please recognize that WAPArsquos oversight and critique of the DBE program has always attempted to balance the principals of fair and open competition with the practical aspects of the low bid compressed schedule high performance standards demanded within the WSDOT marketplace Our comments below are meant to enhance WSDOTrsquos and OWMBErsquos understanding of the market and to hopefully have WSDOT fully consider all of the dynamics that are at play when proposing its Triennial DBE goal for FHWA projects Current DBE Capacity vs Historically Robust Market In advocating for a realistic and defensible DBE goal it has always been WAPArsquos position that it is paramount that the realities of the marketplace and true certified DBE subcontracting capacity should be a primary standard While a ldquostretchrdquo goal may appear to be progressive on its face it comes with consequences for all of the parties involved in the WSDOT federal aid contracting arena To balance the dynamics of the WSDOT contracting system the DBE goal should be tempered with the realities of the market and with a true measure of the underlying effectiveness of the DBE support services available to contractors

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 2 of 6 The first point of fact that has not been given any apparent consideration by WSDOT in its evaluation of the current capacity of certified DBErsquos is that there is an historically robust workload scheduled to be performed in the 2017 through 2022 time-frame particularly in the Puget Sound ldquoEverett to Olympiardquo corridor By WSDOTrsquos own estimates (see Attachment A) public works construction project starts in the 2018 to 2022 time-frame in this region will exceed $333 billion (B) counting the work projected from just five public entities WSDOT will be taking a decidedly ldquoback seatrdquo role during this period to Sound Transit which will have construction project starts of $226B vs WSDOTrsquos projected volume of $67B WSDOTrsquos summary publication titled Washington State Department of Transportations Proposed Federal Highway Administration Triennium Disadvantaged Business Enterprise Goal Federal Fiscal Years 2018-2020 states correctly that ldquoIncluded among the types of evidence that must be considered are the current capacity of DBEs to perform work on WSDOTrsquos federally-assisted contracts as measured by the volume of work DBEs have performed in recent yearshelliprdquo (Step Two Adjustment discussion) With the Sound Transit program being over 300 larger than the total WSDOT program in this region a sober assessment of true certified DBE capacity in the next three years needs to be considered by WSDOT If the huge construction boom over the next five years does not prompt a Step Two Adjustment then it becomes obvious that the realities of the market are being ignored by WSDOT for DBE goal setting Put another way if the 2018 through 2022 level of contracting activity does not warrant a goal adjustment what will DBE Access Barriers Not Yet Addressed The CHA 2017 Disparity Study points out multiple recommendations in Section VII that impact DBE participation and access to the market Assessments relating to those impacts and the state of maturity in addressing the CHA recommendations should be considered when assessing the DBE goal Many of the CHA recommendation have not been adequately addressed at this point in time Some of the prime examples are listed below Increase Certification and Expertise ndash The Disparity Study as explained to us includes all minority- (MBE)

and women-owned (WBE) firms that could be readily identified that perform work within Washington State and that perform work within the NAICS code framework CHA developed to cover WSDOT project work During the various presentations relating to the Disparity Study WSDOT representatives said that outreach to currently non-certified MBE amp WBE firms has increased and that WSDOT aspires to bolster its list of certified firms in the future but this effort is just beginning and the success of the effort needs to be means tested against the broader population of MBE amp WBE firms included in the CHA base line evaluation As the Disparity Study uses a much broader population of MBE WBE contractors to arrive at its conclusions (both non-certified firms and firms too large for certification) it follows that the calculated DBE proposed goal is overstated to include capacity that does not currently exist within WSDOTrsquos certified DBE framework Unless OMWBE is experiencing sudden and unprecedented success in recruiting new MBEWBE firms the DBE goal should be adjusted downward to recognize that the ldquoready willing and ablerdquo contractors that WSDOT has certified is only a subset of the total MBEWBE contracting population used in the Disparity Study evaluation

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 3 of 6

Until the promised WSDOT outreach registration efforts result in a substantial increase in available certified DBE firms it is premature to count the entire population of minority- and women-owned contractors as available to participate in WSDOT contracting It is unreasonable for WSDOT to project availability capacity using the entire MBEWBE population when only its currently truncated list of certified firms is acceptable to count toward the DBE goal

A corollary to the Increase Certification and Expertise discussion above is that the calculation of the Base Figure evidently includes the broadest practical population of MBE and WBE firms identifiable (without a review of the CHA Master DBE Directory which has not been supplied prior to the close of the public comment period the scope of the directory cannot be ascertained) If this directory includes a large population of MBEWBE firms that are not certified or are too large to be certified then the Base Figure calculation should be adjusted to reflect that certified DBE firms are a fraction of the total MBEWBE firms used to arrive at the 19 suggested DBE goal With respect to the CHA Master Directory it is our understanding the WSDOT was not given the directory as part of its evaluation of the Disparity Study and it follows that it did not evaluate the proposed DBE goal in the context of the CHA Master DBE Directory In our opinion an informed decision on adjusting the CHA baseline goal calculation can only be done after an extensive evaluation of the CHA Master DBE Directory If this has not been done WSDOT has not exercised due diligence in evaluating the context and underpinnings of the CHA Disparity Study and a certified DBE Triennium goal proposal to the FHWA is premature Increase Contract ldquoUnbundlingrdquo ndash If this proposed strategy (suggested by the CHA Study) is undertaken

certified DBE Subcontractors currently available will be engaged as Prime Contractors and the value of their prime contracts will bolster the overall percentage of certified DBE contracting but a systematic effort and strategy to ldquounbundlerdquo has not been articulated by WSDOT The key question of how this effort can be accomplished without increased cost to the taxpayers and increased inconvenience for the traveling public As noted in the CHA study (page 129 final paragraph) ldquoUnbundling must be conducted however within the constraints of the need to ensure efficiency and limit cost to the taxpayersrdquo As of this writing no overarching strategy for further unbundling with proper accountability has been articulated by WSDOT to the DBE Advisory Group

Review Insurance and Experience Requirements ndash Impediments to certified DBE participation due to

necessary insurance and experience standards cannot be solved by the prime contracting community Unless and until WSDOT puts together programs to address the burden of the substantial risks shouldered by Prime Contractors on WSDOT contracts barriers for streamlined utilization of certified DBE firms will continue to exist These market driven barriers will continue to dampen the availability of certified DBE Subcontractors that are able to perform within WSDOTrsquos strict criteria without unduly transferring risk to the Prime Contractor

Better Partnering to Overcome DBE Failures to Perform ndash Prime Contractors are held fully responsible to maintain the project schedule and are subject to project liquidated damages even when they may be struggling to deal with Subcontractor performance issues It is well-established that replacing a certified ldquocondition of awardrdquo (COA) DBE Subcontractor is very onerous and likely very costly to the Prime Contractor Unfortunately the imposition of strict and often counter-productive commercially useful function (CUF) rules often compound this issue as Prime Contractors cannot help COA DBE Subcontractors work through capacity expertise or time-related issues that impact timely performance

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 4 of 6

WSDOT needs to be a much better partner in the process of dealing with under-performing or non-performing certified DBE Subcontractors The current standard operational procedure places all of the exposure for non-performance onto the Prime WSDOT does not have an equitable system to account for non-performing or under-performing certified DBE Subcontractors hired as a condition of award (COA)

Performance Information and Training ndash Commercially useful function rules (CUF) and the lack of clear benchmark definitions for good faith effort (GFE) standards remain barriers for improving accountability within the DBE system and in turn lead to distorted DBE participation rates These items remain amorphous due to lack of training or lack of historic information Chronic uncertainty exists regarding both of these items Until WSDOT changes and improves its approach to provide transparency and certainty for both the prime bidding amp subcontracting parties true certified DBE capacity will continue to be masked and the resultant higher subcontracting costs associated with a distorted marketplace will continue to be hidden

WAPA respectfully suggests that simply adding an ldquoEstimated DBE Subcontract Premiumrdquo line to the current DBE bid forms would help to establish benchmarks that could begin to be used to ldquomeans testrdquo good faith efforts If this information had been gathered over the last 20 years of the DBE program meaningful GFE standards could have been developed and could be in place today

An in-depth review of CUF standards would also provide clarity For instance it is unclear why force account items performed by certified DBEs are currently counted at only 50 of the value of the work How was this benchmark established Has it been reviewed since imposed Did it ldquosolverdquo whatever inequity WSDOT was trying to address Better clarity may lead to more expanded opportunities for certified DBE Subcontractors

Enhanced Supportive Services and Business Development Programs ndash Unless and until stronger programs of these types are shown to be effective in boosting certified DBE business development increased DBE participation due to stronger business acumen should not be relied upon when setting the new DBE goal

Does OMWBE have a reasonable expectation that future plans for enhanced and expanded programs will be more successful than those employed in the past Assuming that certified DBE Subcontractors will be better prepared to deal with the WSDOT contracting environment than in the past should not be relied upon to boost DBE participation goals Especially troubling were the multiple references within the CHA report highlighting that DBEs believe that the staff at OMWBE lack a deep knowledge about the highway construction industry (eg Study page 129 2nd paragraph) Does OMWBE have a path forward that will address this issue and thus improve supportive services impacts

Develop a Bonding and Financing Program for SBEs ndash This is completely outside of the prime contracting

communityrsquos scope of influence WSDOT must find a way to institute changes that both protect the taxpayer and help increase certified DBE bonding capacity and access to financing ndash very large hurtles To assume that these hurtles can effectively be overcome within the 2018 ndash 2020 time frame when they have been chromic issues for the past 20 plus years of DBE program development is not rational

A helpful innovation would be for WSDOT to underwrite performance and payment bonds for certified DBE firms or to create promote a system that helps certified DBE firms obtain private bonding Bridging the gap to address capital access and performance risks (bonding) must be championed by WSDOT

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 5 of 6

Base Figure Adjustment to Address Available Subcontract Volume and DBE Prime Contracts It is a fact that mid- to large-sized MBEWBE firms that compete both as Prime Contractors and as Subcontractors are not eligible to be OMWBE certified DBEs Further the current amount of contract unbundling for greater DBE access to WSDOT prime contracting (see below) accounts for a very low dollar volume of prime contracts performed by certified DBEs Finally by specification (WSDOT standard specification 1-081) Prime Contractors are obligated to perform 30 of the total volume of the work (less specialty work) or stated another way a maximum of 70 of the dollar volume on WSDOT projects is typically available to award to subcontractors These market dynamics are NOT addressed in the Disparity Study A responsible DBE goal made absent of these facts should not be implemented A reasonable adjustment to the proposed 19 DBE goal is presented below

bull The percent of WSDOT prime contracts awarded to certified DBE firms is likely less than 5 by total WSDOT

contract volume Assuming this approximation is valid (likely very conservative) then the amount of WSDOT contract work available to certified DBE firms via subcontracting should be adjusted to account for the factors outlined above The Base Figure (19) should be adjusted to recognize that a 70 maximum subcontractor participation is available (in the numerator) and to account for the assumed 5 certified DBE prime contracts in the denominator Reasonable Base Figure Adjustment 19 (proposed) x 70 subcontracts available divide 95 of Non-Certified DBEs as Prime Contract Volume = 190 x 0737 = 140 adjusted goal This is an adjustment based on the practical dynamics of the WSDOT contracting system and it represents a more realistic look at the true subcontract volume that is available for Prime Contractors to award to certified DBE firms

Conclusions

Until the items listed above are addressed and in place it is not reasonable to believe that DBE goals can be increased by nearly 163 (from 117 to 190) When the projected robust public works contracting market is appropriately considered the true availability of certified DBE Subcontractors for WSDOT contracts will be truncated due to demand across all public works sectors With multiple strong public works programs competing for a limited population of certified DBEs the ability to meet increased WSDOT DBE goals will be severely challenged Without very clear concise and transparent good faith effort rules the ability to address DBE goals that greatly overestimate true near term certified DBE capacity will result in non-attainment bid day chaos failures to perform andor rapidly increased pricing

The clear conclusion is that at this point in time under the current circumstances without effectively instituted new programs rules procedures that could enhance the certified DBE programrsquos overall effectiveness we believe that the DBE goal should remain at or near 12 As OMWBE documents and demonstrates its future successes in improving access and eliminating capacity barriers only then should the DBE goal be re-evaluated and increased

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 6 of 6

In closing please remember that it is rare that the contracting community is asked our opinion with respect to the WSDOTrsquos DBE policies and so this letter is somewhat a vehicle to highlight collective concerns It is our belief that the majority of the Prime Contractors in Washington state support the objective of creating a level playing field for ready willing and able DBEs

If the level playing field is not yet possible in the absence of the DBE program then the key is to set realistic goals that recognize reflect and address the hard realities and market dynamics imposed by WSDOTrsquos bedrock environment of awarding contracts to the lowest cost responsible and responsive Contractor

Respectfully submitted Washington Asphalt Pavement Association

David Gent Tom Gaetz Executive Director Senior Advisor

Attachment A ndash WSDOT Central Puget Sound Public Works Contracting Projection 2018 - 2022

Con

stru

ctio

n Pr

ojec

t Sta

rts

2018

-202

2S

ound

Tra

nsit

$22

6 B

SD

OT

$08

B

Tran

sit

amp O

ther

s$1

7 B

WS

DO

T$6

7 B

Por

t of

Sea

ttle

$15

B

TOTA

L$3

33

B

Source N

ov 1

9 2

017

pres

enta

tion

to W

APA

Ann

ual M

eetin

g

Attachment A

Work (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Dave Gent - WAPA [mailtodavegentasphaltwacom] Sent Thursday December 7 2017 144 PMTo Bayne Jackie ltBayneJwsdotwagovgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hi again Jackie Irsquom fine thanks and hope you are the same Interesting The Master DBE Directory is the basis for and integral to the conclusions of the DisparityStudy Is it not then part of the information needed to fully review and comment on the DisparityStudy Was it not provided by CHA to WSDOT for review We are trying to fully understand thestudy and if this directory was part of the study why would it need to be obtained by a publicrecords disclosure It should be in the public domain and not restricted from ease of access If you are sure that a public records request is needed Irsquoll start that process but we will need tonote that point of fact when we submit our public comments If you are able to reconsider please let me know Respectfully

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Thursday December 7 2017 126 PMTo Dave Gent - WAPA ltdavegentasphaltwacomgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hello Dave I hope you are doing well

That information would likely be obtained through a public disclosure request Best Regards Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Dave Gent - WAPA [mailtodavegentasphaltwacom] Sent Thursday December 7 2017 113 PMTo Bayne Jackie ltBayneJwsdotwagovgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Jackie Can you please provide an electronic file or provide a weblink for the Master DBE Directory thatColette Holt amp Associates developed for the WSDOT Disparity Study 2017 (first referred to on Page 8of the Disparity Study) I did not see a link to this Master DBE Directory within the study Thanks

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Friday October 27 2017 1118 AMTo Kenyon Wendy ltKenyonWwsdotwagovgt Adams E W ltewadamssystemsclcomgtAdekoyaAndrew ltandrewadekoyabccomgt AlyssaBalllegwagov Anindita Mitraltamitracrea-affiliatescomgt APRISeattlehotmailcom Armstrong CharlotteltCharlieAatgwagovgt Ato Apiafi Architects PLLC ltatoaatoapiaficomgt benzfanwaorgBerntsen Teresa (OMWBE) ltTeresaBomwbewagovgt Billingsley Andrealtbillinawsdotwagovgt Bramlet Erica ltEricaBramletlegwagovgt Brooks Julius

ltBrooksJwsdotwagovgt Brown Jason ltjbrownldccorpcomgt bwallacenwlaborersorgCamden Allison ltCamdenAwsdotwagovgt carlllivingstongmailcom Cerda OscarltCerdaOwsdotwagovgt Christopher Chris ltChristCwsdotwagovgt ckerneycaawagovdanplatinumbusinessgroupcom davegentasphaltwacom David BalltDavidsignsnowmillcreekcomgt Davis Khalia ltDavisKhwsdotwagovgt Davis RaShelle (GOVltrashelledavisgovwagovgt Dayton Jo ltDaytonJwsdotwagovgt ddhondtagcwacomDebbieDriverlegwagov Dennis ltdennisahlkiewitcomgt dmcleodnwlaborersorgdrart6651gmailcom Duncan Enid lthigradeincgmailcomgt EltonltEltonwashingtonstatetruckingcomgt eprincecaawagov flemosldccorpcomfmartineznwmtnmsdcorg geoffshookatkncom glovelady ltgloveladyexcelglovescomgtGrabow Katie ltkgrabowsystemsclcomgt Guilfucci Jackie ltJackieGuilfucciskanskacomgt HealyLinda ltHealyLwsdotwagovgt Higginbotham Breanne ltHigginBwsdotwagovgt HirscheyClaudia ltclaudiahirscheycomcastnetgt Holt Colette ltcoletteholtmwbelawcomgt Huff JohnltHuffJwsdotwagovgt Iniguezchawagov JacksonMaynardlegwagov Jimmy Matta(jmattaalcantarassoccom) ltjmattaalcantarassoccomgt kellywickergovwagov Key EarlltKeyEwsdotwagovgt Kirk Jon ltjkirkwhhnfscomgt Kris Purrier ltkpurrierhwageocomgtleewabuildingtradesorg lesliejonessoundtransitorg Liz Evans ltlevansagcwacomgt LopezErin lterinlopezdeswagovgt Martha Cerna ltMarthaPSLCCORGgt Martin-Arnold EdwinaltMartinEwsdotwagovgt Mary Lerdahl ltmarydbeelectricinccomgt McCarty Hannahlthannahmccartylegwagovgt Melissa L Boyles ltmelissaboylesmwbelawcomgt Metcalf KeithltMetcalKwsdotwagovgt michaelicapaawagov Michelle ltMichelleTTCC26netgt MillarRoger ltMillarRwsdotwagovgt Nakamura Jason ltjasonnakamura1-alliancecomgtNavarroLportseattleorg olliepmt-solutionscom pastorbanksesbctacomacom PatrickHughes ltphugheshughesgroupbizgt Petersen Jodi (FHWA) ltJodiPetersendotgovgtrabbottliunaorg rcarmsteadgmailcom ricemportseattleorg Riley D ltdrileylydigcomgtSeling ltSelingjpfranciscomgt sherryharrisergosynchcom Stell MellodyltStellMwsdotwagovgt terigobintulaliptribes-nsngov timwilliamfactorycom tinaterra-tdicom tkellyldccorpcom tomgaetzmsncom vcollinsacec-waorgverlenejazzmsncom Wang Albert ltWangAatgwagovgt Waugh GregltGregWMaxKuneyComgt Yates Henry ltYatesHWSDOTWAGOVgtCc Tom Gaetz lttomgaetzmsncomgt Dave Gent - WAPA ltdavegentasphaltwacomgt VanCollins ltvcollinsacec-waorggt Daniel Seydel II ltdanplatinumbusinessgroupcomgt MaynardJackson ltJacksonMaynardlegwagovgt Carl Livingston ltcarlllivingstongmailcomgt DonMcLeod ltdmcleodnwlaborersorggt JIMMY MATTA ltjimmymattamsncomgt Prince Ed(CAAA) lteprincecaawagovgt David DHondt ltddhondtagcwacomgt Irene Reyesltgloveladyexcelsupplycompanycomgt McDaniel Craig ltMcDaniCwsdotwagovgtsherryharrisergosynchcomSubject WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Good morning On Monday October 30th WSDOT will be releasing the proposed overall Federal HighwayAdministration Disadvantaged Business Enterprise goal attached for public comment throughDecember 15 2017 This overall DBE goal is based upon the recently completely DBE ProgramDisparity Study WSDOT is proposing a 19 percent overall DBE participation goal on Federal Highway

Administration-funded projects for federal fiscal years 2018 through 2020 DBE goals fortransportation projects that receive federal funds represent a percentage of the value of work inwhich minority- and women-owned businesses should participate Once finalized and submitted toFHWA early next year the goal will be effective through Sept 30 2020

The purpose of the DBE program is to create a level playing field for firms owned and operated bydisadvantaged individuals wanting to participate in federally assisted highway transit and aviationprograms The attached overall DBE goal is for FHWA funded projects WSDOT will be updating theFTA and FAA overall DBE goals in the near future

If you have any questions please contact Earl Key Director of the Office of Equal Opportunity at3607057091 or KeyEwsdotwagov Thank you Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

  • Proof-Of-Publicationpdf
    • Mediapdf
      • AGC
      • Daily Journal
      • Daily Medium
      • DBEGood
      • OMWBE
      • Seattle Medium
      • Tabor 100
      • The Chronicle
      • Tukwila
        • King County
          • Public-Comments-20180111pdf
            • 19 DBE Requirement(1)
            • AGC Comments on Proposed 10 Goad
            • Backstrom Curb amp Sidewalk
            • comments on WSDOT proposed DBE goal
            • Cowlitz County Public Works
            • DBE Contracting goals
            • DBE Goal
            • DBE Program Disparity Study
            • Disparity Study Comments from City of Spokane
            • FW_ WSDOT News - WSDOT seeks comments on propos
            • Proposed DBE Goals
            • RE_ DBE Contracting Goal Comments
            • Re_ DBE Goal Comments
            • Re_ Seydel Dan - WSDOT Disparity Study Present
            • Support for WSDOTs proposed DBE goal
            • Why we need mandatory goals
            • WSDOT DBE Goal - Comment in support
            • WSDOT Proposes DBE goal of 19
            • WSDOT propsed DBE Goals
            • WTS - Disparity Study Comment Letter

As we seek to achieve the goal of increasing participation in street and highway constructionby companies owned by disadvantaged individuals we must also acknowledge that businessdevelopment and growth happens over time We must lay the groundwork now to build abase of DBEs that can help us achieve higher utilization goals over time Sincerely Marlene FeistDirector of Strategic DevelopmentPublic Works amp UtilitiesCity of Spokane

Marlene Feist | City of Spokane | Public Works Director of Strategic Development5096256505 | cell 5097109214 | mfeistspokanecityorg | spokanecityorg

From Hall MattTo WSDOT Disparity StudySubject FW WSDOT News - WSDOT seeks comments on proposed DBE contracting goal for highway projectsDate Friday December 15 2017 11956 PMAttachments WSDOT proposed DBE goal through 2020pdf

From Hall Matt Sent Friday December 15 2017 117 PMTo BayneJwsdotwagovCc Keniston Rick (KenistRwsdotwagov) MolyneKwsdotwagov SusanWilsonclarkwagovSubject WSDOT News - WSDOT seeks comments on proposed DBE contracting goal for highwayprojects Hello Jackie Please see our comments attached regarding the WSDOT proposed DBE goals Thanks for the opportunity to provide comments Matt HallClark County Public Works Washington State Department of Transportation ndash NEWSHeadquarters ndash 310 Maple Park Avenue SE ndash Olympia WA 98504-7314 ndash 360 705-7000 FOR IMMEDIATE RELEASEOct 30 2017 Contact Jackie Bayne Office of Equal Opportunity 360 705-7084

WSDOT seeks comments on proposed DBEcontracting goal for highway projectsComments accepted through Dec 15OLYMPIA ndash Contractors trade and labor organizations small and disadvantaged businessesand all others who may be interested in working with the Washington State Department ofTransportation are invited to comment on the agencyrsquos proposed Disadvantaged BusinessEnterprise goal for Federal Highway Administration contractsDBE goals for transportation projects that receive federal funds represent a percentage of thevalue of work in which minority- and women-owned businesses should participate WSDOTis proposing a 19 percent overall DBE participation goal on Federal Highway Administration-funded projects for federal fiscal years 2018 through 2020Once submitted to FHWA early next year the goal will be effective through Sept 30 2020The purpose of the DBE program is to create a level playing field for firms owned andoperated by disadvantaged individuals wanting to participate in federally assisted highwaytransit and aviation programsConnecting with communitiesWSDOT will host a series of public meetings to provide opportunities for individuals tocomment in person

Spokane

2 ndash 4 pm Tuesday Nov 28WSDOT Eastern Region Headquarters2714 N Mayfair St Spokane

Vancouver

2 ndash 4 pm Wednesday Nov 29WSDOT Vancouver Headquarters11018 NE 51st Circle Vancouver

Seattle

2 ndash 4 pm Thursday Dec 7WSDOT Northwest Region Headquarters15700 Dayton Ave N Shoreline

Other ways to provide commentThose who are unable to attend one of the meetings can participate in a no-cost webinar from230 ndash 430 pm Tuesday Dec 5 Registration for the webinar is required Those interested inparticipating should email DisparityStudywsdotwagovWritten comments can also be submitted by mail or emailJackie Bayne Policy amp Reporting ManagerWashington State Department of TransportationOffice of Equal OpportunityPO Box 47314Olympia WA 98504-7314DisparityStudywsdotwagovDocuments detailing the methodology used for determining the FHWA DBE goals areavailable for review at all WSDOT region headquarters offices and at the TransportationBuilding 310 Maple Park Ave SE Olympia They are also available online atwwwwsdotwagovequalopportunityWSDOT will consider all written comments received through Friday Dec 15 2017 Hyperlinks within this release

WSDOT Region offices wwwwsdotwagovContactofficelocationhtmregion

WSDOT keeps people businesses and the economy moving by operating and improving the statestransportation systems To learn more about what were doing go to wwwwsdotwagovnews forpictures videos news and blogs Real time traffic information is available at wwwwsdotcomtraffic or bydialing 511 Americans with Disabilities Act (ADA) InformationAccommodation requests for people with disabilities can be made by contacting the WSDOTDiversityADA Affairs team at wsdotadawsdotwagov or by calling toll-free 855-362-4ADA (4232)Persons who are deaf or hard of hearing may make a request by calling the Washington State Relay at711 Title VI Statement to Public It is WSDOTrsquos policy to assure that no person shall on the grounds ofrace color national origin or sex as provided by Title VI of the Civil Rights Act of 1964 be excluded fromparticipation in be denied the benefits of or be otherwise discriminated against under any of its federallyfunded programs and activities Any person who believes his or her Title VI protection has been violatedmay file a complaint with WSDOTrsquos Office of Equal Opportunity For additional information regarding Title

VI complaint procedures andor information regarding our non-discrimination obligations please contactOEOrsquos Title VI Coordinator at 360-705-7090 To unsubscribe to WSDOT media releases please reply and type REMOVE in the subject line

This e-mail and related attachments and any response may be subject to public disclosure under state law

From Cochrane EmilieTo WSDOT Disparity StudyCc Eugenis Susan Cowlitz Co Public Works - Brad BastinSubject Proposed DBE GoalsDate Thursday December 14 2017 85006 AMAttachments image002png

DBE Goals - Commentspdf

Please see the attached letter with comments regarding the proposed DBE Goals Ahard copy will be sent out today

Thanks

Emilie CochraneCowlitz County Public Works1600 ndash 13th Avenue SKelso WA 98626360-577-3030 ext 6523

From Michelle WolcottTo Bayne JackieCc Robideau Christopher LSubject RE DBE Contracting Goal CommentsDate Tuesday November 7 2017 65448 AMAttachments image001png

Thank you JackieWhat a relief to know that we have been heard and are not the only small business facing thisstruggle Your email is comforting

Yes you can provide us with additional assistanceLet me introduce my boss and Senior Vice President of Red Plains Professional Chris Robideau

Chris will be your contact from here since I will be leaving the company November 17th As a WA DBE we are ldquoeligible for limited DBE Support Services (SS) funding when funds becomeavailablerdquo When will this happen And are we registered or on a list to receive fundingIs the WSDOT ICR Training a prerequisite for the funding Or just helpful knowledge

Thank you for your time Jackie I will follow through with the training

Michelle Wolcott EIT Quality Control Engineer

2103 NE 129th Street Suite 201 Vancouver WA 98686 Office (360) 448-7999 Fax (360) 258-0274

wwwred-plainscom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Monday November 6 2017 332 PMTo Michelle Wolcott ltMichelleWolcottred-plainscomgtSubject RE DBE Contracting Goal Comments

Hi Michelle

Thank you for your interest in doing business with WSDOT I apologize for the lack of informationyou have come up against in your attempts to attain access to WSDOT ICR program

As you may well know WSDOT has recently completed a state wide agency specific diversity studyAnecdotal comments submitted with the study concur with your experience Not only did somerespondents find it difficult to become prequalified they also commented that the required indirectrate of 110 percent is too low to be profitable These requirements are currently under advisementby WSDOT and new DBE program requirements are currently in the process of seeking public input

As you are an OMWBE certified DBE in Washington State you will be eligible for limited DBE SupportServices (SS) funding when these funds become available At that time funds may become availableto assist you in your struggle to attain ICR eligibility Here is a link to WSDOTrsquos Indirect Cost RateTraining httpswwwwsdotwagovAuditICRTraininghtm If you would like me to find additionaltraining or information please let me know

If I can provide additional assistance of information please let me know

Best Regards

Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Michelle Wolcott [mailtoMichelleWolcottred-plainscom] Sent Tuesday October 31 2017 835 AMTo WSDOT Disparity Study ltDisparityStudyWSDOTWAGOVgtSubject DBE Contracting Goal Comments

HelloI have been in contact with WSDOT for 6 months sharing my disparaging story of beinga small DBE unable to submit SOQs for projects requiring a WSDOT Audited IndirectCost Rate Approval We do not have an in-house accountant and our outsideaccountant has explained to get all the paperwork together for WSDOT would take 40hours of work $9000 annually We cannot justify this cost to submit on a project thatwe may not acquire We have been directed to seek financial assistance from WSDOT Federal SBA andWashington State Office for Women and Minority Owned Enterprises all of whichprovided negative responses

As a DBE business in 11 states we are supporting the 19 incentive for federallyfunded contracts but we are frustrated in the fact that we will not be one of the luckyfew to participateWe have been in business 20 years From our Vancouver Washington office our clientsare the Native American tribes across the country with all contracts federally funded This summer alone the WSDOT ICR Approval has squashed our ability to submit on twoprojects that we were perfectly qualified to performI have attached previous emails to show a sample of who I have been dealing with

Thank you

Michelle Wolcott EIT Quality Control Engineer

ltimage001pnggt

2103 NE 129th Street Suite 201 Vancouver WA 98686 Office (360) 448-7999 Fax (360) 258-0274 wwwred-plainscom

From Michelle Wolcott Sent Monday July 10 2017 954 AMTo Harvey Schatzie ltHarveySwsdotwagovgtSubject RE WSDOT Indirect Cost Rate Process

Good Morning Schatzie

This is Michelle Wolcott from Red We spoke Friday June 30th about the ICRprocess and you were very encouraging I relayed the information to my boss who ishere in Vancouver then he shared with the president bookkeeper and our accountantin Oklahoma We had FAR compliance with Oklahoma DOT in 2015 so we are noteligible for the Safe Harbor Program Our account said our timekeeping system doesnot breakdown the hours and pay in the format WSDOT wants to have it presented andto get the documents in order would take the CPA and an assistant $9000 in paidhours of work It turns out this would have to be annually The other option is to hirean outside CPA firm to do the audit for us at $20000 annually

Our president said in the past we received funding assistance from the Stateof Oklahoma to get our ICR approval Does WSDOT offer any financial assistance for small businesses to reach compliance We are also a DBE in WA I have requested the same information from WA PTAC at theVancouver Chamber of Commerce and from WA Office of Minority and Women OwnedBusiness Enterprises and they both said there was nothing but suggested to askWSDOTThank you for your helpMichelle Wolcott EIT

Hello Michelle sorry but I am not aware of any grants But I was looking at this andthere is a POC at the bottom you may try to discuss the audit issuesHollyHolly BoehmeBusiness Opportunity Specialist | 8(a) Business Development ProgramUS Small Business Administration bull Seattle District Office

Hello Michelle -

Thank you for your email Im not aware of any funding available for thispurpose but do agree its quite a bit for a DBE firm to have as an expense Mostof the firms I work with do a lot more work on the Oregon side so perhaps thereare programs available that I just havent heard of Im copying my colleagueHoly Boehme in our Seattle District Office to see if they are aware of any suchassistance

Holly might there be some small business incubators or other resources availablein WA to help a small firm with the expense of getting a WSDOT AuditedIndirect Cost Rate approval Please reply all with anything you may have

Thank you

Yuri Yoshida Dyson Business Opportunity SpecialistUS SMALL BUSINESS ADMINISTRATION Portland District OfficePhone 503-326-6692 Fax 202-292-3872 wwwsbagovor

From Troy HalbergTo Bayne JackieSubject Re DBE Goal CommentsDate Wednesday December 13 2017 35533 PM

JackieToday was another example of why the goals should not be raised There were 2 jobs which Iwas low on and did not get due to the high goals This is exactly what will happen when thegoals get raised The first job was the 9180 Anacortes Ferry Paving Northeast Electric $244924 and UDBE $318000 Second job was the 9172 SR 9 East Junction Job Northeast Electric $68503 and UDBE $76300

Does this seem like a good way to spend the tax payer money I do not see how we are tosurvive if the goals get to 21

Thanks

Troy HalbergOffice360-225-7004Cell360-931-3990Fax360-225-7001

On Thu Nov 30 2017 at 1131 AM Bayne Jackie ltBayneJwsdotwagovgt wrote

Good Morning Troy

Thank you for taking the time to provide us with your experiences with the DBE Program TheWashington State Department of Transportation takes the public involvement process veryseriously and your comments will be taken into consideration prior to a final decision regardingthe overall DBE program goal

If I can be of further assistance please let me know

Best Regards

Jackie Bayne

Policy and Reporting Manager

WSDOT Office of Equal Opportunity

Work (360) 705-7084

Cell (360) 338-5783

BayneJwsdotwagov

From Troy Halberg [mailtotroyhnellcnet] Sent Wednesday November 29 2017 144 PMTo WSDOT Disparity Study ltDisparityStudyWSDOTWAGOVgtSubject DBE Goal Comments

If these goals are to be set that high this would make us as a non DBE small contractor at amajor disadvantage With these high of goals this is like handing all of the DBE electricalcontractors every job These general contractors will have no option but to use thembecause of the goals This should not go into effect We have been low on several jobs in thepast and have not gotten them do to the goals being 18 When this goes on it puts all therest of us contractors at a disadvantage Please consider the smaller non DBE contractorsthat are looking to survive as well

Thanks

Troy Halberg

Office360-225-7004

Cell360-931-3990

Fax360-225-7001

From Daniel Seydel IITo Bayne JackieCc Key Earl daneiwashingtonorg Nadeem Ismail Mussie Tewelde (mteweldehydro2geotechcom)

graceflyrightaolcom Mary Wenner Watkinson LarrySubject Re Seydel Dan - WSDOT Disparity Study Presentation Public TestimonyDate Friday December 8 2017 30323 PM

Jackie

It was my hope that the comments would be put into record I was also hoping that you wouldnot have to be the one having to formulate responses for each clarification If that is the caseI know you are swamped and will then I just ask my comments be only part of the recordHowever if there is dedicated staff that is going to be compiling and responding to theclarification then the below questions would be the priorities of most interest

These were questions unrelated to the disparity study and hopefully should be doable

1) Do you have any reports on your outcomes from the past 5 years on DBE support servicesand specific key performance measures from previous years funding (ie how many firmsutilized what was the objectives were objectives met did outcomes meet total satisfaction ifnot why next steps what was the firms capacity before and after services were performed (iesales employees bonding if applicable insurance equipment line of credit if applicablenumbertype of customers how are they doing now etc))

2) What other changes or improvements other than allowing DBES to select their own serviceproviders and a staff change will be a part of this new program

3) Was consideration to provide the new mentor protege consultant rather than separating theactivities into support services andor technical assistance

Disparity study clarifications

1) Will WSDOT consider sponsoring legislation to support the policy changes and goalincreases to insure manditory goals wont be necessary

a) If not what measures will you grant primes to operate outside the box (ie entertain bestvalue over low bid modify responsiveness by subs to require adherence to meeting voluntarygoals developing standards around federally funded gccm and other low bid procurementsthat give powers to primes to meet objectives including but not limited to mentor protegerelationships joint ventures bond waiving techniques cash flow assistance material andequipment acquisition manufacturer development specifications that have only DBES orinclude equal number of DBES as non DBES as approved installers etc)

2) Will the disparity study consultant be available for implementation or information gatheringfrom other regions

5) Will WSDOT be hiring more diverse staff amp professionaltechnical service providers inother departments outside OEO to insure policies commitments and evaluations areperformed in manner that improves diversity that reflects the communities WSDOT serves bythoughtful and legal efforts increase participation thus creating successful outcomes includingpartnerships and collaborations

Thank you and Merry Christmas

Hi Dan

Thank you for providing such thoughtful public comments questions and testimony

Regarding your public testimony below - I do not believe I am not able to answer questions ifthey are public comments Please let me know what part of this email you would likeclarification on and what part you would like considered public testimony

I appreciate your thoughtful consideration of WSDOTrsquos implementation of our civil rightsprograms

Best Regards

Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

DIDaniel Seydel IIFyi Daniel J Seydel II Platinum Group LLC 2064060844 f) 2062999934wwwplatinumbusinessgroupcom Small Business is the Answer FREE TRAINING FORENTREPRENEURS amp JOB SEEKERS - Polish your skills or make your firm standout thanksto the EntrepreneurialThu 233pDI

Daniel Seydel IIThu 1272017 1123 AMInbox Sent ItemsShow all 7 recipientsTobaynejwsdotwagov ltBayneJwsdotwagovgtJackie

Per your request below are my questions and comments some of which were verbally sharedyesterday

Congratulations on receiving the blessing of additional technical assistance dollars andcompleting the DBE Disparity Study per your report

1) Do you have any reports on your outcomes from the past 5 years on DBE support servicesand specific key performance measures from previous years funding (ie how many firmsutilized what was the objectives were objectives met did outcomes meet total satisfaction ifnot why next steps what was the firms capacity before and after services were performed (ie

sales employees bonding if applicable insurance equipment line of credit if applicablenumbertype of customers how are they doing now etc))

2) What other changes or improvements other than allowing DBES to select their own serviceproviders and a staff change will be a part of this new program

3) Was consideration to provide the new mentor protege consultant rather than separating theactivities into support services andor technical assistance

Disparity study clarifications andor comments

1) Will WSDOT consider sponsoring legislation to support the policy changes and goalincreases to insure manditory goals wont be necessary

a) If not what measures will you grant primes to operate outside the box (ie entertain bestvalue over low bid modify responsiveness by subs to require adherence to meeting voluntarygoals developing standards around federally funded gccm and other low bid procurementsthat give powers to primes to meet objectives including but not limited to mentor protegerelationships joint ventures bond waiving techniques cash flow assistance material andequipment acquisition manufacturer development specifications that have only DBES orinclude equal number of DBES as non DBES as approved installers etc)

2) Will the disparity study consultant be available for implementation or information gatheringfrom other regions

3) What lessons did WSDOT learn that it did not know from the other study(s)

4) What would WSDOT do different (ie scope time line process approach etc)

5) Will WSDOT be hiring more diverse staff amp professionaltechnical service providers inother departments outside OEO to insure policies commitments and evaluations areperformed in manner that improves diversity that reflects the communities WSDOT serves bythoughtful and legal efforts increase participation thus creating successful outcomes includingpartnerships and collaborations

Daniel J Seydel IIPlatinum Group LLC 2064060844f) 2062999934wwwplatinumbusinessgroupcom

Small Business is the Answer

FREE TRAINING FOR ENTREPRENEURS amp JOB SEEKERS - Polish your skills or makeyour firm standout thanks to the Entrepreneurial Institute of Washington

httpswwwyoutubecomchannelUCKL5YeVxL29HnNxqnb6hmXA

LIKE US on FaceBook if an Active Professional Development workshop provided by EIW

Construction University helps your firm or has benefited you

httpswwwfacebookcomEIWashingtonref=hl

From Bayne Jackie ltBayneJwsdotwagovgtSent Friday December 8 2017 10139 PMTo Daniel Seydel IICc Key Earl daneiwashingtonorg Nadeem Ismail Mussie Tewelde(mteweldehydro2geotechcom) graceflyrightaolcom Mary Wenner Watkinson LarrySubject RE Seydel Dan - WSDOT Disparity Study Presentation Public Testimony Hi Dan Thank you for providing such thoughtful public comments questions and testimony Regarding your public testimony below - I do not believe I am not able to answer questions if theyare public comments Please let me know what part of this email you would like clarification on andwhat part you would like considered public testimony I appreciate your thoughtful consideration of WSDOTrsquos implementation of our civil rights programs Best Regards Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov From Daniel Seydel II [mailtodanplatinumbusinessgroupcom] Sent Thursday December 7 2017 1123 AMTo Bayne Jackie ltBayneJwsdotwagovgtCc Key Earl ltKeyEwsdotwagovgt daneiwashingtonorg Nadeem Ismailltnipaintingearthlinknetgt Mussie Tewelde (mteweldehydro2geotechcom)ltmteweldehydro2geotechcomgt graceflyrightaolcom Mary Wennerltmwenn0108yahoocomgtSubject Seydel Dan - WSDOT Disparity Study Presentation Public Testimony Jackie

Per your request below are my questions and comments some of which were verbally sharedyesterday

Congratulations on receiving the blessing of additional technical assistance dollars andcompleting the DBE Disparity Study per your report

1) Do you have any reports on your outcomes from the past 5 years on DBE support servicesand specific key performance measures from previous years funding (ie how many firmsutilized what was the objectives were objectives met did outcomes meet total satisfaction ifnot why next steps what was the firms capacity before and after services were performed (iesales employees bonding if applicable insurance equipment line of credit if applicablenumbertype of customers how are they doing now etc))

2) What other changes or improvements other than allowing DBES to select their own serviceproviders and a staff change will be a part of this new program

3) Was consideration to provide the new mentor protege consultant rather than separating theactivities into support services andor technical assistance

Disparity study clarifications andor comments

1) Will WSDOT consider sponsoring legislation to support the policy changes and goalincreases to insure manditory goals wont be necessary

a) If not what measures will you grant primes to operate outside the box (ie entertain bestvalue over low bid modify responsiveness by subs to require adherence to meeting voluntarygoals developing standards around federally funded gccm and other low bid procurementsthat give powers to primes to meet objectives including but not limited to mentor protegerelationships joint ventures bond waiving techniques cash flow assistance material andequipment acquisition manufacturer development specifications that have only DBES orinclude equal number of DBES as non DBES as approved installers etc)

2) Will the disparity study consultant be available for implementation or information gatheringfrom other regions

3) What lessons did WSDOT learn that it did not know from the other study(s)

4) What would WSDOT do different (ie scope time line process approach etc)

5) Will WSDOT be hiring more diverse staff amp professionaltechnical service providers inother departments outside OEO to insure policies commitments and evaluations areperformed in manner that improves diversity that reflects the communities WSDOT serves bythoughtful and legal efforts increase participation thus creating successful outcomes includingpartnerships and collaborations

Thank you for your hard work

Daniel J Seydel IIPlatinum Group LLC2064060844f) 2062999934wwwplatinumbusinessgroupcom

Small Business is the Answer

FREE TRAINING FOR ENTREPRENEURS amp JOB SEEKERS - Polish your skills or makeyour firm standout thanks to the Entrepreneurial Institute of Washington

httpswwwyoutubecomchannelUCKL5YeVxL29HnNxqnb6hmXA

LIKE US on FaceBook if an Active Professional Development workshop provided by EIWConstruction University helps your firm or has benefited you

httpswwwfacebookcomEIWashingtonref=hl

From Erin EhlingerTo Bayne JackieSubject Support for WSDOTs proposed DBE goalDate Wednesday December 13 2017 115417 AM

I am writing to support the WSDOT recommended DBE Goal for FHWA contracts of 190 I also want to express my appreciation for the thoroughness of the WSDOT Disparity study and howthe study disclosed the disparity in WSDOT contracts that do not have a DBE or WBE goal ndash furtherreinforcing that all women-owned firms and minority owned firms face equity issues I remain concerned with the methodology required by the Code of Federal Regulations and case lawbecause of the dependence on the availability of firms in the calculation An unintendedconsequence of removing either gender or race from the goal is that many of these firms would goout of business the availability decreases and the formula then results in a smaller DBE goal Pleaselet me know how I can help influence a change to the CFR Thank you Erin Ehlinger

Erin Ehlinger PEPresident

24036 SE 47th StSammamish WA 98029erinehlingersmartcitytrafficcom425-221-0320

From Jackie EtterTo WSDOT Disparity StudySubject Why we need mandatory goalsDate Friday December 1 2017 61859 PM

As a DBE participating in bidding process I have found that regardless of the language which claims to insurethat disadvantaged business enterprises shall not be discriminated against the only way to ensure that this does nothappen is by mandating affirmative action goals Having been overlooked time and time again because of my gender when I have submitted bids that are verycompetitive with other bidders is very frustrating I have had many instances of companies using my price to getmy non DBE competitors to lower theirs The voluntary or laudatory DBE goals do nothing to ensure a level playing fieldThe only way to ensure non-discrimination is through mandatory goals

Jackie EtterWest Star Construction of Spokane

Sent from my iPhone

From Claudia HirscheyTo Key Earl Bayne JackieSubject WSDOT DBE Goal - Comment in supportDate Tuesday December 12 2017 61937 PM

Dear Earl and Jackie The WSDOT recommended DBE Goal for FHWA contracts of 190 is a small and important increasethat can further achieve equity in WSDOTFHWA contracting I am in support of the 19 DBE Goal I also want to express my appreciation for the thoroughness of the WSDOT Disparity study and howthe study disclosed the disparity in WSDOT contracts that do not have a DBE or WBE goal ndash furtherreinforcing that all women-owned firms and minority owned firms face equity issues I remain concerned with the methodology required by the Code of Federal Regulations and case lawbecause of the dependence on the availability of firms in the calculation An unintendedconsequence of removing either gender or race from the goal is that many of these firms would goout of business the availability decreases and the formula then results in a smaller DBE goal Sincerely Claudia S Hirschey PETransportation Consulting Servicesclaudiahirscheycomcastnethttphirscheytcscom2068564988 Mobile

From Nate ThomasTo WSDOT Disparity StudySubject WSDOT Proposes DBE goal of 19Date Thursday December 7 2017 42720 PM

The WSDOT should look into similar ways the Federal Gov has handled the equal opportunity forthose that fall under the DBE status and set aside specific projects for the DBErsquos and moreimportantly UDBErsquos so these companies have better chance of landing contracts Maybe a lot 10 ofthe DBE goal to set aside for only DBEs and other 9 goal met as it is done currently with COA onlarger contracts Nate ThomasSenior EstimatorD 5095688085 | C 5099941156331 North Fancher Road | Spokane WA | 99212

The information contained in this email including any attachments is confidential and may beprivileged It is intended only for the person or entity to which it is addressed and no waiver isintended by sending this email If the reader is not the intended recipient you are herebynotified that any review retransmission dissemination or other use of or taking any action inreliance upon this information is strictly prohibited If you have received this email in errorkindly notify the sender by reply email and delete the original message from any computerThank You

From Brian FujiiTo WSDOT Disparity StudySubject WSDOT propsed DBE GoalsDate Thursday December 7 2017 110638 AM

Good morning Jackie

I wanted to comment on WSDOTs proposed DBE goal to 19 I believe WSDOTs plan toincrease the overall DBE goal to 19 will provide greater opportunities for DBE contractorsin different disciplines to participate in federally funded contracts

Without the new DBE requirement and with Proposition 200 there are limited opportunitiesfor DBE contractors in disciplines different than the typical trucking flagging and rebar Inaddition there are no incentives for general contractors to go out beyond the usual truckingflagging and rebar DBE subcontractors

Increasing the DBE goals will provide opportunities for different DBE contractors in differentdisciplines to participate in WSDOT federally funded projects

Thank you for your time

RespectfullyBrian FujiiPresident Subsurface ConstructionP 2063836478F 2069604639MDBE 4M0024998

From Forman StephanieTo Bayne JackieCc Millar Roger christinenhanmailhousegov Claudia Hirschey Sarah Corbin Jiang Yingle

efaulknerenviroissuescom Diana Giraldo Kelly CheesemanSubject WTS - Disparity Study Comment LetterDate Friday December 15 2017 71020 PMAttachments 2017_Dec 15_WTSCommentLetter_WSDOT DBE Goalpdf

Dear Ms Bayne Please find our attached letter which summarizes the WTS Puget Sound Chapterrsquos support foradvancement of women in transportation and our comment letter regarding the recent DisparityStudy Please feel free to contact me if you have any questions or would like to discuss Sincerely Stephanie S Forman PEWTS Puget Sound President Transportation Project Manager

929 108th Avenue NE Suite 1300Bellevue WA 98004D 4254681548 M 2062291745stephanieformanhdrinccom

December 15 2017

Jackie Bayne Policy and Reporting Manager

Office of Equal Opportunity

Washington State Department of Transportation

PO Box 47314

Olympia WA 98504-7314

Dear Ms Bayne

On behalf of the Puget Sound Chapter of Womenrsquos Transportation Seminar (WTS) we would

like to thank the Washington State Department of Transportation for presenting to our

organization the DBE Disparity Study results We very much appreciated the presentation by Earl

Key Director of WSDOTrsquos Office of Equal Opportunity Teresa Berntsen (Director Office of Minority

and Womens Business Enterprises) as well as Leslie Jones (Director Sound Transit Office of Small

Business Development and Labor Compliance)

Following a review of the WSDOT Disparity Study and as a result of consultation with WTS

International we would like to provide WSDOT with our comments for your consideration

As you know WTS is an organization focused exclusively on attracting retaining and advancing

women in transportation By the year 2018 there will be thousands of vacancies in the

transportation industry for qualified professionals and while women account for more than half of

the worldrsquos workforce they are a very small minority in transportation disciplines

We are pleased that the outcome of the 2017 Disparity Study that recognizes the on-going barriers

for DBEs including women-owned businesses in transportation The WSDOT recommended DBE

Goal of 190 is a small and important increase that can further achieve equity in WSDOTFHWA

contracting We are also pleased that the 2017 Disparity Study has documented the disparity in

WSDOT contracts that do not have a DBE or WBE goal ndash further reinforcing that all women-owned

firms and minority owned firms face equity issues We are encouraged that the WSDOT has asked

FHWA to rescind the 2016 waiver

While WTSrsquo mission is specific to the advancement of women we are a race-neutral organization To

this end we are also deeply concerned about the underutilization of minority owned firms There is

no equity or ldquofair playing fieldrdquo without equity for all gender and races We remained concerned with

the methodology required by the Code of Federal Regulations and case law because of the

dependence on the availability of firms in the calculation An unintended consequence of removing

either gender or race from the goal is that many of these firms would go out of business the

availability decreases and the formula then results in a smaller DBE goal This consequence is

contrary to our mission

We look forward to our continued participation in WSDOTrsquos DBE advisory group we are anticipating

notice that the 2016 waiver has been rescinded and how we can work together to continue

advancing minority and women-owned firms in the transportation field

Sincerely

WTS Puget Sound Chapter

Stephanie Forman

President

C Roger Millar Secretary WSDOT

C Representative Adam Smith 9th Congressional District Washington co Christine Nhan

WTS Puget Sound Chapter

PO Box 3461

Bellevue Washington 98009

From Dave Gent - WAPATo Bayne JackieCc Tom GaetzSubject WAPA Public Comments - RE WSDOT FHWA Disadvantaged Business Enterprise Proposed GoalDate Friday December 15 2017 14119 PMAttachments 12152017 DBE Proposed Goal - WAPA Public Comments Letterpdf

Good afternoon Jackie Please find attached WAPArsquos ldquofor the public recordrdquo comments with respect to WSDOTrsquos proposedDBE Goals FHWA funded work I assume that the Master DBE Directory was not sent to you this week so as a result we were notable to review the directory before the close of the public comment period That fact is noted withinour comment letter Thank you for your efforts Have a good weekend

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Friday December 8 2017 1219 PMTo Dave Gent - WAPA ltdavegentasphaltwacomgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hello Dave WSDOT did not take possession of this directory as part of our review process We will provide youwith the records without submitting a formal request However we need to get them from theconsultant first I will hopefully have them to provide next week I will keep you updated on therequest Have a nice weekend Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal Opportunity

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

December 15 2017

Jackie Bayne Policy Manager WSDOT Office of Equal Opportunity Delivered via e-mail to BayneJwsdotwagov RE Public Comment (as requested) to Proposed Overall DBE Goal for the FHWA (2018 ndash 2020) Ms Bayne Thank you for your presentation via webinar on December 5 2017 outlining WSDOTrsquos evaluation process used to determine the proposed overall DBE goal for the FHWA Thank you also for the Colette Holt amp Associates (CHA) DBE Advisory Group presentation made on September 14 2017 Both presentations helped to distill the findings of the 2017 Disparity Study produced by CHA In response to Earl Keyrsquos initial informal request to comment on the proposed overall DBE goal made during the DBE Advisory Committee teleconference held on October 12th we provided a list of reasons that we believe justify a lower DBE goal than is now being proposed Our initial response to Mr Keyrsquos request did not serve to influence WSDOT and the current proposed goal remains at 190 The arguments provided on October 12th against the significant increase in the proposed DBE goal (versus the previous goal and recent historic DBE participation) are repeated and supplemented below and will serve as the Asphalt Pavement Associationrsquos (WAPArsquos) official public comments

In concert with WSDOT and the OWMBE WAPA and the construction firms that WAPA represents have demonstrated a commitment to the principals of equal opportunity for all ldquoready willing and ablerdquo firms for the entire history that our DBE program has been in place WAPA has continuously demonstrated its commitment to the goals of the DBE program and for increasing the representation of disadvantaged groups within our industry as both workers and owners of firms Please recognize that WAPArsquos oversight and critique of the DBE program has always attempted to balance the principals of fair and open competition with the practical aspects of the low bid compressed schedule high performance standards demanded within the WSDOT marketplace Our comments below are meant to enhance WSDOTrsquos and OWMBErsquos understanding of the market and to hopefully have WSDOT fully consider all of the dynamics that are at play when proposing its Triennial DBE goal for FHWA projects Current DBE Capacity vs Historically Robust Market In advocating for a realistic and defensible DBE goal it has always been WAPArsquos position that it is paramount that the realities of the marketplace and true certified DBE subcontracting capacity should be a primary standard While a ldquostretchrdquo goal may appear to be progressive on its face it comes with consequences for all of the parties involved in the WSDOT federal aid contracting arena To balance the dynamics of the WSDOT contracting system the DBE goal should be tempered with the realities of the market and with a true measure of the underlying effectiveness of the DBE support services available to contractors

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 2 of 6 The first point of fact that has not been given any apparent consideration by WSDOT in its evaluation of the current capacity of certified DBErsquos is that there is an historically robust workload scheduled to be performed in the 2017 through 2022 time-frame particularly in the Puget Sound ldquoEverett to Olympiardquo corridor By WSDOTrsquos own estimates (see Attachment A) public works construction project starts in the 2018 to 2022 time-frame in this region will exceed $333 billion (B) counting the work projected from just five public entities WSDOT will be taking a decidedly ldquoback seatrdquo role during this period to Sound Transit which will have construction project starts of $226B vs WSDOTrsquos projected volume of $67B WSDOTrsquos summary publication titled Washington State Department of Transportations Proposed Federal Highway Administration Triennium Disadvantaged Business Enterprise Goal Federal Fiscal Years 2018-2020 states correctly that ldquoIncluded among the types of evidence that must be considered are the current capacity of DBEs to perform work on WSDOTrsquos federally-assisted contracts as measured by the volume of work DBEs have performed in recent yearshelliprdquo (Step Two Adjustment discussion) With the Sound Transit program being over 300 larger than the total WSDOT program in this region a sober assessment of true certified DBE capacity in the next three years needs to be considered by WSDOT If the huge construction boom over the next five years does not prompt a Step Two Adjustment then it becomes obvious that the realities of the market are being ignored by WSDOT for DBE goal setting Put another way if the 2018 through 2022 level of contracting activity does not warrant a goal adjustment what will DBE Access Barriers Not Yet Addressed The CHA 2017 Disparity Study points out multiple recommendations in Section VII that impact DBE participation and access to the market Assessments relating to those impacts and the state of maturity in addressing the CHA recommendations should be considered when assessing the DBE goal Many of the CHA recommendation have not been adequately addressed at this point in time Some of the prime examples are listed below Increase Certification and Expertise ndash The Disparity Study as explained to us includes all minority- (MBE)

and women-owned (WBE) firms that could be readily identified that perform work within Washington State and that perform work within the NAICS code framework CHA developed to cover WSDOT project work During the various presentations relating to the Disparity Study WSDOT representatives said that outreach to currently non-certified MBE amp WBE firms has increased and that WSDOT aspires to bolster its list of certified firms in the future but this effort is just beginning and the success of the effort needs to be means tested against the broader population of MBE amp WBE firms included in the CHA base line evaluation As the Disparity Study uses a much broader population of MBE WBE contractors to arrive at its conclusions (both non-certified firms and firms too large for certification) it follows that the calculated DBE proposed goal is overstated to include capacity that does not currently exist within WSDOTrsquos certified DBE framework Unless OMWBE is experiencing sudden and unprecedented success in recruiting new MBEWBE firms the DBE goal should be adjusted downward to recognize that the ldquoready willing and ablerdquo contractors that WSDOT has certified is only a subset of the total MBEWBE contracting population used in the Disparity Study evaluation

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 3 of 6

Until the promised WSDOT outreach registration efforts result in a substantial increase in available certified DBE firms it is premature to count the entire population of minority- and women-owned contractors as available to participate in WSDOT contracting It is unreasonable for WSDOT to project availability capacity using the entire MBEWBE population when only its currently truncated list of certified firms is acceptable to count toward the DBE goal

A corollary to the Increase Certification and Expertise discussion above is that the calculation of the Base Figure evidently includes the broadest practical population of MBE and WBE firms identifiable (without a review of the CHA Master DBE Directory which has not been supplied prior to the close of the public comment period the scope of the directory cannot be ascertained) If this directory includes a large population of MBEWBE firms that are not certified or are too large to be certified then the Base Figure calculation should be adjusted to reflect that certified DBE firms are a fraction of the total MBEWBE firms used to arrive at the 19 suggested DBE goal With respect to the CHA Master Directory it is our understanding the WSDOT was not given the directory as part of its evaluation of the Disparity Study and it follows that it did not evaluate the proposed DBE goal in the context of the CHA Master DBE Directory In our opinion an informed decision on adjusting the CHA baseline goal calculation can only be done after an extensive evaluation of the CHA Master DBE Directory If this has not been done WSDOT has not exercised due diligence in evaluating the context and underpinnings of the CHA Disparity Study and a certified DBE Triennium goal proposal to the FHWA is premature Increase Contract ldquoUnbundlingrdquo ndash If this proposed strategy (suggested by the CHA Study) is undertaken

certified DBE Subcontractors currently available will be engaged as Prime Contractors and the value of their prime contracts will bolster the overall percentage of certified DBE contracting but a systematic effort and strategy to ldquounbundlerdquo has not been articulated by WSDOT The key question of how this effort can be accomplished without increased cost to the taxpayers and increased inconvenience for the traveling public As noted in the CHA study (page 129 final paragraph) ldquoUnbundling must be conducted however within the constraints of the need to ensure efficiency and limit cost to the taxpayersrdquo As of this writing no overarching strategy for further unbundling with proper accountability has been articulated by WSDOT to the DBE Advisory Group

Review Insurance and Experience Requirements ndash Impediments to certified DBE participation due to

necessary insurance and experience standards cannot be solved by the prime contracting community Unless and until WSDOT puts together programs to address the burden of the substantial risks shouldered by Prime Contractors on WSDOT contracts barriers for streamlined utilization of certified DBE firms will continue to exist These market driven barriers will continue to dampen the availability of certified DBE Subcontractors that are able to perform within WSDOTrsquos strict criteria without unduly transferring risk to the Prime Contractor

Better Partnering to Overcome DBE Failures to Perform ndash Prime Contractors are held fully responsible to maintain the project schedule and are subject to project liquidated damages even when they may be struggling to deal with Subcontractor performance issues It is well-established that replacing a certified ldquocondition of awardrdquo (COA) DBE Subcontractor is very onerous and likely very costly to the Prime Contractor Unfortunately the imposition of strict and often counter-productive commercially useful function (CUF) rules often compound this issue as Prime Contractors cannot help COA DBE Subcontractors work through capacity expertise or time-related issues that impact timely performance

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 4 of 6

WSDOT needs to be a much better partner in the process of dealing with under-performing or non-performing certified DBE Subcontractors The current standard operational procedure places all of the exposure for non-performance onto the Prime WSDOT does not have an equitable system to account for non-performing or under-performing certified DBE Subcontractors hired as a condition of award (COA)

Performance Information and Training ndash Commercially useful function rules (CUF) and the lack of clear benchmark definitions for good faith effort (GFE) standards remain barriers for improving accountability within the DBE system and in turn lead to distorted DBE participation rates These items remain amorphous due to lack of training or lack of historic information Chronic uncertainty exists regarding both of these items Until WSDOT changes and improves its approach to provide transparency and certainty for both the prime bidding amp subcontracting parties true certified DBE capacity will continue to be masked and the resultant higher subcontracting costs associated with a distorted marketplace will continue to be hidden

WAPA respectfully suggests that simply adding an ldquoEstimated DBE Subcontract Premiumrdquo line to the current DBE bid forms would help to establish benchmarks that could begin to be used to ldquomeans testrdquo good faith efforts If this information had been gathered over the last 20 years of the DBE program meaningful GFE standards could have been developed and could be in place today

An in-depth review of CUF standards would also provide clarity For instance it is unclear why force account items performed by certified DBEs are currently counted at only 50 of the value of the work How was this benchmark established Has it been reviewed since imposed Did it ldquosolverdquo whatever inequity WSDOT was trying to address Better clarity may lead to more expanded opportunities for certified DBE Subcontractors

Enhanced Supportive Services and Business Development Programs ndash Unless and until stronger programs of these types are shown to be effective in boosting certified DBE business development increased DBE participation due to stronger business acumen should not be relied upon when setting the new DBE goal

Does OMWBE have a reasonable expectation that future plans for enhanced and expanded programs will be more successful than those employed in the past Assuming that certified DBE Subcontractors will be better prepared to deal with the WSDOT contracting environment than in the past should not be relied upon to boost DBE participation goals Especially troubling were the multiple references within the CHA report highlighting that DBEs believe that the staff at OMWBE lack a deep knowledge about the highway construction industry (eg Study page 129 2nd paragraph) Does OMWBE have a path forward that will address this issue and thus improve supportive services impacts

Develop a Bonding and Financing Program for SBEs ndash This is completely outside of the prime contracting

communityrsquos scope of influence WSDOT must find a way to institute changes that both protect the taxpayer and help increase certified DBE bonding capacity and access to financing ndash very large hurtles To assume that these hurtles can effectively be overcome within the 2018 ndash 2020 time frame when they have been chromic issues for the past 20 plus years of DBE program development is not rational

A helpful innovation would be for WSDOT to underwrite performance and payment bonds for certified DBE firms or to create promote a system that helps certified DBE firms obtain private bonding Bridging the gap to address capital access and performance risks (bonding) must be championed by WSDOT

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 5 of 6

Base Figure Adjustment to Address Available Subcontract Volume and DBE Prime Contracts It is a fact that mid- to large-sized MBEWBE firms that compete both as Prime Contractors and as Subcontractors are not eligible to be OMWBE certified DBEs Further the current amount of contract unbundling for greater DBE access to WSDOT prime contracting (see below) accounts for a very low dollar volume of prime contracts performed by certified DBEs Finally by specification (WSDOT standard specification 1-081) Prime Contractors are obligated to perform 30 of the total volume of the work (less specialty work) or stated another way a maximum of 70 of the dollar volume on WSDOT projects is typically available to award to subcontractors These market dynamics are NOT addressed in the Disparity Study A responsible DBE goal made absent of these facts should not be implemented A reasonable adjustment to the proposed 19 DBE goal is presented below

bull The percent of WSDOT prime contracts awarded to certified DBE firms is likely less than 5 by total WSDOT

contract volume Assuming this approximation is valid (likely very conservative) then the amount of WSDOT contract work available to certified DBE firms via subcontracting should be adjusted to account for the factors outlined above The Base Figure (19) should be adjusted to recognize that a 70 maximum subcontractor participation is available (in the numerator) and to account for the assumed 5 certified DBE prime contracts in the denominator Reasonable Base Figure Adjustment 19 (proposed) x 70 subcontracts available divide 95 of Non-Certified DBEs as Prime Contract Volume = 190 x 0737 = 140 adjusted goal This is an adjustment based on the practical dynamics of the WSDOT contracting system and it represents a more realistic look at the true subcontract volume that is available for Prime Contractors to award to certified DBE firms

Conclusions

Until the items listed above are addressed and in place it is not reasonable to believe that DBE goals can be increased by nearly 163 (from 117 to 190) When the projected robust public works contracting market is appropriately considered the true availability of certified DBE Subcontractors for WSDOT contracts will be truncated due to demand across all public works sectors With multiple strong public works programs competing for a limited population of certified DBEs the ability to meet increased WSDOT DBE goals will be severely challenged Without very clear concise and transparent good faith effort rules the ability to address DBE goals that greatly overestimate true near term certified DBE capacity will result in non-attainment bid day chaos failures to perform andor rapidly increased pricing

The clear conclusion is that at this point in time under the current circumstances without effectively instituted new programs rules procedures that could enhance the certified DBE programrsquos overall effectiveness we believe that the DBE goal should remain at or near 12 As OMWBE documents and demonstrates its future successes in improving access and eliminating capacity barriers only then should the DBE goal be re-evaluated and increased

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 6 of 6

In closing please remember that it is rare that the contracting community is asked our opinion with respect to the WSDOTrsquos DBE policies and so this letter is somewhat a vehicle to highlight collective concerns It is our belief that the majority of the Prime Contractors in Washington state support the objective of creating a level playing field for ready willing and able DBEs

If the level playing field is not yet possible in the absence of the DBE program then the key is to set realistic goals that recognize reflect and address the hard realities and market dynamics imposed by WSDOTrsquos bedrock environment of awarding contracts to the lowest cost responsible and responsive Contractor

Respectfully submitted Washington Asphalt Pavement Association

David Gent Tom Gaetz Executive Director Senior Advisor

Attachment A ndash WSDOT Central Puget Sound Public Works Contracting Projection 2018 - 2022

Con

stru

ctio

n Pr

ojec

t Sta

rts

2018

-202

2S

ound

Tra

nsit

$22

6 B

SD

OT

$08

B

Tran

sit

amp O

ther

s$1

7 B

WS

DO

T$6

7 B

Por

t of

Sea

ttle

$15

B

TOTA

L$3

33

B

Source N

ov 1

9 2

017

pres

enta

tion

to W

APA

Ann

ual M

eetin

g

Attachment A

Work (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Dave Gent - WAPA [mailtodavegentasphaltwacom] Sent Thursday December 7 2017 144 PMTo Bayne Jackie ltBayneJwsdotwagovgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hi again Jackie Irsquom fine thanks and hope you are the same Interesting The Master DBE Directory is the basis for and integral to the conclusions of the DisparityStudy Is it not then part of the information needed to fully review and comment on the DisparityStudy Was it not provided by CHA to WSDOT for review We are trying to fully understand thestudy and if this directory was part of the study why would it need to be obtained by a publicrecords disclosure It should be in the public domain and not restricted from ease of access If you are sure that a public records request is needed Irsquoll start that process but we will need tonote that point of fact when we submit our public comments If you are able to reconsider please let me know Respectfully

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Thursday December 7 2017 126 PMTo Dave Gent - WAPA ltdavegentasphaltwacomgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hello Dave I hope you are doing well

That information would likely be obtained through a public disclosure request Best Regards Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Dave Gent - WAPA [mailtodavegentasphaltwacom] Sent Thursday December 7 2017 113 PMTo Bayne Jackie ltBayneJwsdotwagovgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Jackie Can you please provide an electronic file or provide a weblink for the Master DBE Directory thatColette Holt amp Associates developed for the WSDOT Disparity Study 2017 (first referred to on Page 8of the Disparity Study) I did not see a link to this Master DBE Directory within the study Thanks

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Friday October 27 2017 1118 AMTo Kenyon Wendy ltKenyonWwsdotwagovgt Adams E W ltewadamssystemsclcomgtAdekoyaAndrew ltandrewadekoyabccomgt AlyssaBalllegwagov Anindita Mitraltamitracrea-affiliatescomgt APRISeattlehotmailcom Armstrong CharlotteltCharlieAatgwagovgt Ato Apiafi Architects PLLC ltatoaatoapiaficomgt benzfanwaorgBerntsen Teresa (OMWBE) ltTeresaBomwbewagovgt Billingsley Andrealtbillinawsdotwagovgt Bramlet Erica ltEricaBramletlegwagovgt Brooks Julius

ltBrooksJwsdotwagovgt Brown Jason ltjbrownldccorpcomgt bwallacenwlaborersorgCamden Allison ltCamdenAwsdotwagovgt carlllivingstongmailcom Cerda OscarltCerdaOwsdotwagovgt Christopher Chris ltChristCwsdotwagovgt ckerneycaawagovdanplatinumbusinessgroupcom davegentasphaltwacom David BalltDavidsignsnowmillcreekcomgt Davis Khalia ltDavisKhwsdotwagovgt Davis RaShelle (GOVltrashelledavisgovwagovgt Dayton Jo ltDaytonJwsdotwagovgt ddhondtagcwacomDebbieDriverlegwagov Dennis ltdennisahlkiewitcomgt dmcleodnwlaborersorgdrart6651gmailcom Duncan Enid lthigradeincgmailcomgt EltonltEltonwashingtonstatetruckingcomgt eprincecaawagov flemosldccorpcomfmartineznwmtnmsdcorg geoffshookatkncom glovelady ltgloveladyexcelglovescomgtGrabow Katie ltkgrabowsystemsclcomgt Guilfucci Jackie ltJackieGuilfucciskanskacomgt HealyLinda ltHealyLwsdotwagovgt Higginbotham Breanne ltHigginBwsdotwagovgt HirscheyClaudia ltclaudiahirscheycomcastnetgt Holt Colette ltcoletteholtmwbelawcomgt Huff JohnltHuffJwsdotwagovgt Iniguezchawagov JacksonMaynardlegwagov Jimmy Matta(jmattaalcantarassoccom) ltjmattaalcantarassoccomgt kellywickergovwagov Key EarlltKeyEwsdotwagovgt Kirk Jon ltjkirkwhhnfscomgt Kris Purrier ltkpurrierhwageocomgtleewabuildingtradesorg lesliejonessoundtransitorg Liz Evans ltlevansagcwacomgt LopezErin lterinlopezdeswagovgt Martha Cerna ltMarthaPSLCCORGgt Martin-Arnold EdwinaltMartinEwsdotwagovgt Mary Lerdahl ltmarydbeelectricinccomgt McCarty Hannahlthannahmccartylegwagovgt Melissa L Boyles ltmelissaboylesmwbelawcomgt Metcalf KeithltMetcalKwsdotwagovgt michaelicapaawagov Michelle ltMichelleTTCC26netgt MillarRoger ltMillarRwsdotwagovgt Nakamura Jason ltjasonnakamura1-alliancecomgtNavarroLportseattleorg olliepmt-solutionscom pastorbanksesbctacomacom PatrickHughes ltphugheshughesgroupbizgt Petersen Jodi (FHWA) ltJodiPetersendotgovgtrabbottliunaorg rcarmsteadgmailcom ricemportseattleorg Riley D ltdrileylydigcomgtSeling ltSelingjpfranciscomgt sherryharrisergosynchcom Stell MellodyltStellMwsdotwagovgt terigobintulaliptribes-nsngov timwilliamfactorycom tinaterra-tdicom tkellyldccorpcom tomgaetzmsncom vcollinsacec-waorgverlenejazzmsncom Wang Albert ltWangAatgwagovgt Waugh GregltGregWMaxKuneyComgt Yates Henry ltYatesHWSDOTWAGOVgtCc Tom Gaetz lttomgaetzmsncomgt Dave Gent - WAPA ltdavegentasphaltwacomgt VanCollins ltvcollinsacec-waorggt Daniel Seydel II ltdanplatinumbusinessgroupcomgt MaynardJackson ltJacksonMaynardlegwagovgt Carl Livingston ltcarlllivingstongmailcomgt DonMcLeod ltdmcleodnwlaborersorggt JIMMY MATTA ltjimmymattamsncomgt Prince Ed(CAAA) lteprincecaawagovgt David DHondt ltddhondtagcwacomgt Irene Reyesltgloveladyexcelsupplycompanycomgt McDaniel Craig ltMcDaniCwsdotwagovgtsherryharrisergosynchcomSubject WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Good morning On Monday October 30th WSDOT will be releasing the proposed overall Federal HighwayAdministration Disadvantaged Business Enterprise goal attached for public comment throughDecember 15 2017 This overall DBE goal is based upon the recently completely DBE ProgramDisparity Study WSDOT is proposing a 19 percent overall DBE participation goal on Federal Highway

Administration-funded projects for federal fiscal years 2018 through 2020 DBE goals fortransportation projects that receive federal funds represent a percentage of the value of work inwhich minority- and women-owned businesses should participate Once finalized and submitted toFHWA early next year the goal will be effective through Sept 30 2020

The purpose of the DBE program is to create a level playing field for firms owned and operated bydisadvantaged individuals wanting to participate in federally assisted highway transit and aviationprograms The attached overall DBE goal is for FHWA funded projects WSDOT will be updating theFTA and FAA overall DBE goals in the near future

If you have any questions please contact Earl Key Director of the Office of Equal Opportunity at3607057091 or KeyEwsdotwagov Thank you Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

  • Proof-Of-Publicationpdf
    • Mediapdf
      • AGC
      • Daily Journal
      • Daily Medium
      • DBEGood
      • OMWBE
      • Seattle Medium
      • Tabor 100
      • The Chronicle
      • Tukwila
        • King County
          • Public-Comments-20180111pdf
            • 19 DBE Requirement(1)
            • AGC Comments on Proposed 10 Goad
            • Backstrom Curb amp Sidewalk
            • comments on WSDOT proposed DBE goal
            • Cowlitz County Public Works
            • DBE Contracting goals
            • DBE Goal
            • DBE Program Disparity Study
            • Disparity Study Comments from City of Spokane
            • FW_ WSDOT News - WSDOT seeks comments on propos
            • Proposed DBE Goals
            • RE_ DBE Contracting Goal Comments
            • Re_ DBE Goal Comments
            • Re_ Seydel Dan - WSDOT Disparity Study Present
            • Support for WSDOTs proposed DBE goal
            • Why we need mandatory goals
            • WSDOT DBE Goal - Comment in support
            • WSDOT Proposes DBE goal of 19
            • WSDOT propsed DBE Goals
            • WTS - Disparity Study Comment Letter

From Hall MattTo WSDOT Disparity StudySubject FW WSDOT News - WSDOT seeks comments on proposed DBE contracting goal for highway projectsDate Friday December 15 2017 11956 PMAttachments WSDOT proposed DBE goal through 2020pdf

From Hall Matt Sent Friday December 15 2017 117 PMTo BayneJwsdotwagovCc Keniston Rick (KenistRwsdotwagov) MolyneKwsdotwagov SusanWilsonclarkwagovSubject WSDOT News - WSDOT seeks comments on proposed DBE contracting goal for highwayprojects Hello Jackie Please see our comments attached regarding the WSDOT proposed DBE goals Thanks for the opportunity to provide comments Matt HallClark County Public Works Washington State Department of Transportation ndash NEWSHeadquarters ndash 310 Maple Park Avenue SE ndash Olympia WA 98504-7314 ndash 360 705-7000 FOR IMMEDIATE RELEASEOct 30 2017 Contact Jackie Bayne Office of Equal Opportunity 360 705-7084

WSDOT seeks comments on proposed DBEcontracting goal for highway projectsComments accepted through Dec 15OLYMPIA ndash Contractors trade and labor organizations small and disadvantaged businessesand all others who may be interested in working with the Washington State Department ofTransportation are invited to comment on the agencyrsquos proposed Disadvantaged BusinessEnterprise goal for Federal Highway Administration contractsDBE goals for transportation projects that receive federal funds represent a percentage of thevalue of work in which minority- and women-owned businesses should participate WSDOTis proposing a 19 percent overall DBE participation goal on Federal Highway Administration-funded projects for federal fiscal years 2018 through 2020Once submitted to FHWA early next year the goal will be effective through Sept 30 2020The purpose of the DBE program is to create a level playing field for firms owned andoperated by disadvantaged individuals wanting to participate in federally assisted highwaytransit and aviation programsConnecting with communitiesWSDOT will host a series of public meetings to provide opportunities for individuals tocomment in person

Spokane

2 ndash 4 pm Tuesday Nov 28WSDOT Eastern Region Headquarters2714 N Mayfair St Spokane

Vancouver

2 ndash 4 pm Wednesday Nov 29WSDOT Vancouver Headquarters11018 NE 51st Circle Vancouver

Seattle

2 ndash 4 pm Thursday Dec 7WSDOT Northwest Region Headquarters15700 Dayton Ave N Shoreline

Other ways to provide commentThose who are unable to attend one of the meetings can participate in a no-cost webinar from230 ndash 430 pm Tuesday Dec 5 Registration for the webinar is required Those interested inparticipating should email DisparityStudywsdotwagovWritten comments can also be submitted by mail or emailJackie Bayne Policy amp Reporting ManagerWashington State Department of TransportationOffice of Equal OpportunityPO Box 47314Olympia WA 98504-7314DisparityStudywsdotwagovDocuments detailing the methodology used for determining the FHWA DBE goals areavailable for review at all WSDOT region headquarters offices and at the TransportationBuilding 310 Maple Park Ave SE Olympia They are also available online atwwwwsdotwagovequalopportunityWSDOT will consider all written comments received through Friday Dec 15 2017 Hyperlinks within this release

WSDOT Region offices wwwwsdotwagovContactofficelocationhtmregion

WSDOT keeps people businesses and the economy moving by operating and improving the statestransportation systems To learn more about what were doing go to wwwwsdotwagovnews forpictures videos news and blogs Real time traffic information is available at wwwwsdotcomtraffic or bydialing 511 Americans with Disabilities Act (ADA) InformationAccommodation requests for people with disabilities can be made by contacting the WSDOTDiversityADA Affairs team at wsdotadawsdotwagov or by calling toll-free 855-362-4ADA (4232)Persons who are deaf or hard of hearing may make a request by calling the Washington State Relay at711 Title VI Statement to Public It is WSDOTrsquos policy to assure that no person shall on the grounds ofrace color national origin or sex as provided by Title VI of the Civil Rights Act of 1964 be excluded fromparticipation in be denied the benefits of or be otherwise discriminated against under any of its federallyfunded programs and activities Any person who believes his or her Title VI protection has been violatedmay file a complaint with WSDOTrsquos Office of Equal Opportunity For additional information regarding Title

VI complaint procedures andor information regarding our non-discrimination obligations please contactOEOrsquos Title VI Coordinator at 360-705-7090 To unsubscribe to WSDOT media releases please reply and type REMOVE in the subject line

This e-mail and related attachments and any response may be subject to public disclosure under state law

From Cochrane EmilieTo WSDOT Disparity StudyCc Eugenis Susan Cowlitz Co Public Works - Brad BastinSubject Proposed DBE GoalsDate Thursday December 14 2017 85006 AMAttachments image002png

DBE Goals - Commentspdf

Please see the attached letter with comments regarding the proposed DBE Goals Ahard copy will be sent out today

Thanks

Emilie CochraneCowlitz County Public Works1600 ndash 13th Avenue SKelso WA 98626360-577-3030 ext 6523

From Michelle WolcottTo Bayne JackieCc Robideau Christopher LSubject RE DBE Contracting Goal CommentsDate Tuesday November 7 2017 65448 AMAttachments image001png

Thank you JackieWhat a relief to know that we have been heard and are not the only small business facing thisstruggle Your email is comforting

Yes you can provide us with additional assistanceLet me introduce my boss and Senior Vice President of Red Plains Professional Chris Robideau

Chris will be your contact from here since I will be leaving the company November 17th As a WA DBE we are ldquoeligible for limited DBE Support Services (SS) funding when funds becomeavailablerdquo When will this happen And are we registered or on a list to receive fundingIs the WSDOT ICR Training a prerequisite for the funding Or just helpful knowledge

Thank you for your time Jackie I will follow through with the training

Michelle Wolcott EIT Quality Control Engineer

2103 NE 129th Street Suite 201 Vancouver WA 98686 Office (360) 448-7999 Fax (360) 258-0274

wwwred-plainscom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Monday November 6 2017 332 PMTo Michelle Wolcott ltMichelleWolcottred-plainscomgtSubject RE DBE Contracting Goal Comments

Hi Michelle

Thank you for your interest in doing business with WSDOT I apologize for the lack of informationyou have come up against in your attempts to attain access to WSDOT ICR program

As you may well know WSDOT has recently completed a state wide agency specific diversity studyAnecdotal comments submitted with the study concur with your experience Not only did somerespondents find it difficult to become prequalified they also commented that the required indirectrate of 110 percent is too low to be profitable These requirements are currently under advisementby WSDOT and new DBE program requirements are currently in the process of seeking public input

As you are an OMWBE certified DBE in Washington State you will be eligible for limited DBE SupportServices (SS) funding when these funds become available At that time funds may become availableto assist you in your struggle to attain ICR eligibility Here is a link to WSDOTrsquos Indirect Cost RateTraining httpswwwwsdotwagovAuditICRTraininghtm If you would like me to find additionaltraining or information please let me know

If I can provide additional assistance of information please let me know

Best Regards

Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Michelle Wolcott [mailtoMichelleWolcottred-plainscom] Sent Tuesday October 31 2017 835 AMTo WSDOT Disparity Study ltDisparityStudyWSDOTWAGOVgtSubject DBE Contracting Goal Comments

HelloI have been in contact with WSDOT for 6 months sharing my disparaging story of beinga small DBE unable to submit SOQs for projects requiring a WSDOT Audited IndirectCost Rate Approval We do not have an in-house accountant and our outsideaccountant has explained to get all the paperwork together for WSDOT would take 40hours of work $9000 annually We cannot justify this cost to submit on a project thatwe may not acquire We have been directed to seek financial assistance from WSDOT Federal SBA andWashington State Office for Women and Minority Owned Enterprises all of whichprovided negative responses

As a DBE business in 11 states we are supporting the 19 incentive for federallyfunded contracts but we are frustrated in the fact that we will not be one of the luckyfew to participateWe have been in business 20 years From our Vancouver Washington office our clientsare the Native American tribes across the country with all contracts federally funded This summer alone the WSDOT ICR Approval has squashed our ability to submit on twoprojects that we were perfectly qualified to performI have attached previous emails to show a sample of who I have been dealing with

Thank you

Michelle Wolcott EIT Quality Control Engineer

ltimage001pnggt

2103 NE 129th Street Suite 201 Vancouver WA 98686 Office (360) 448-7999 Fax (360) 258-0274 wwwred-plainscom

From Michelle Wolcott Sent Monday July 10 2017 954 AMTo Harvey Schatzie ltHarveySwsdotwagovgtSubject RE WSDOT Indirect Cost Rate Process

Good Morning Schatzie

This is Michelle Wolcott from Red We spoke Friday June 30th about the ICRprocess and you were very encouraging I relayed the information to my boss who ishere in Vancouver then he shared with the president bookkeeper and our accountantin Oklahoma We had FAR compliance with Oklahoma DOT in 2015 so we are noteligible for the Safe Harbor Program Our account said our timekeeping system doesnot breakdown the hours and pay in the format WSDOT wants to have it presented andto get the documents in order would take the CPA and an assistant $9000 in paidhours of work It turns out this would have to be annually The other option is to hirean outside CPA firm to do the audit for us at $20000 annually

Our president said in the past we received funding assistance from the Stateof Oklahoma to get our ICR approval Does WSDOT offer any financial assistance for small businesses to reach compliance We are also a DBE in WA I have requested the same information from WA PTAC at theVancouver Chamber of Commerce and from WA Office of Minority and Women OwnedBusiness Enterprises and they both said there was nothing but suggested to askWSDOTThank you for your helpMichelle Wolcott EIT

Hello Michelle sorry but I am not aware of any grants But I was looking at this andthere is a POC at the bottom you may try to discuss the audit issuesHollyHolly BoehmeBusiness Opportunity Specialist | 8(a) Business Development ProgramUS Small Business Administration bull Seattle District Office

Hello Michelle -

Thank you for your email Im not aware of any funding available for thispurpose but do agree its quite a bit for a DBE firm to have as an expense Mostof the firms I work with do a lot more work on the Oregon side so perhaps thereare programs available that I just havent heard of Im copying my colleagueHoly Boehme in our Seattle District Office to see if they are aware of any suchassistance

Holly might there be some small business incubators or other resources availablein WA to help a small firm with the expense of getting a WSDOT AuditedIndirect Cost Rate approval Please reply all with anything you may have

Thank you

Yuri Yoshida Dyson Business Opportunity SpecialistUS SMALL BUSINESS ADMINISTRATION Portland District OfficePhone 503-326-6692 Fax 202-292-3872 wwwsbagovor

From Troy HalbergTo Bayne JackieSubject Re DBE Goal CommentsDate Wednesday December 13 2017 35533 PM

JackieToday was another example of why the goals should not be raised There were 2 jobs which Iwas low on and did not get due to the high goals This is exactly what will happen when thegoals get raised The first job was the 9180 Anacortes Ferry Paving Northeast Electric $244924 and UDBE $318000 Second job was the 9172 SR 9 East Junction Job Northeast Electric $68503 and UDBE $76300

Does this seem like a good way to spend the tax payer money I do not see how we are tosurvive if the goals get to 21

Thanks

Troy HalbergOffice360-225-7004Cell360-931-3990Fax360-225-7001

On Thu Nov 30 2017 at 1131 AM Bayne Jackie ltBayneJwsdotwagovgt wrote

Good Morning Troy

Thank you for taking the time to provide us with your experiences with the DBE Program TheWashington State Department of Transportation takes the public involvement process veryseriously and your comments will be taken into consideration prior to a final decision regardingthe overall DBE program goal

If I can be of further assistance please let me know

Best Regards

Jackie Bayne

Policy and Reporting Manager

WSDOT Office of Equal Opportunity

Work (360) 705-7084

Cell (360) 338-5783

BayneJwsdotwagov

From Troy Halberg [mailtotroyhnellcnet] Sent Wednesday November 29 2017 144 PMTo WSDOT Disparity Study ltDisparityStudyWSDOTWAGOVgtSubject DBE Goal Comments

If these goals are to be set that high this would make us as a non DBE small contractor at amajor disadvantage With these high of goals this is like handing all of the DBE electricalcontractors every job These general contractors will have no option but to use thembecause of the goals This should not go into effect We have been low on several jobs in thepast and have not gotten them do to the goals being 18 When this goes on it puts all therest of us contractors at a disadvantage Please consider the smaller non DBE contractorsthat are looking to survive as well

Thanks

Troy Halberg

Office360-225-7004

Cell360-931-3990

Fax360-225-7001

From Daniel Seydel IITo Bayne JackieCc Key Earl daneiwashingtonorg Nadeem Ismail Mussie Tewelde (mteweldehydro2geotechcom)

graceflyrightaolcom Mary Wenner Watkinson LarrySubject Re Seydel Dan - WSDOT Disparity Study Presentation Public TestimonyDate Friday December 8 2017 30323 PM

Jackie

It was my hope that the comments would be put into record I was also hoping that you wouldnot have to be the one having to formulate responses for each clarification If that is the caseI know you are swamped and will then I just ask my comments be only part of the recordHowever if there is dedicated staff that is going to be compiling and responding to theclarification then the below questions would be the priorities of most interest

These were questions unrelated to the disparity study and hopefully should be doable

1) Do you have any reports on your outcomes from the past 5 years on DBE support servicesand specific key performance measures from previous years funding (ie how many firmsutilized what was the objectives were objectives met did outcomes meet total satisfaction ifnot why next steps what was the firms capacity before and after services were performed (iesales employees bonding if applicable insurance equipment line of credit if applicablenumbertype of customers how are they doing now etc))

2) What other changes or improvements other than allowing DBES to select their own serviceproviders and a staff change will be a part of this new program

3) Was consideration to provide the new mentor protege consultant rather than separating theactivities into support services andor technical assistance

Disparity study clarifications

1) Will WSDOT consider sponsoring legislation to support the policy changes and goalincreases to insure manditory goals wont be necessary

a) If not what measures will you grant primes to operate outside the box (ie entertain bestvalue over low bid modify responsiveness by subs to require adherence to meeting voluntarygoals developing standards around federally funded gccm and other low bid procurementsthat give powers to primes to meet objectives including but not limited to mentor protegerelationships joint ventures bond waiving techniques cash flow assistance material andequipment acquisition manufacturer development specifications that have only DBES orinclude equal number of DBES as non DBES as approved installers etc)

2) Will the disparity study consultant be available for implementation or information gatheringfrom other regions

5) Will WSDOT be hiring more diverse staff amp professionaltechnical service providers inother departments outside OEO to insure policies commitments and evaluations areperformed in manner that improves diversity that reflects the communities WSDOT serves bythoughtful and legal efforts increase participation thus creating successful outcomes includingpartnerships and collaborations

Thank you and Merry Christmas

Hi Dan

Thank you for providing such thoughtful public comments questions and testimony

Regarding your public testimony below - I do not believe I am not able to answer questions ifthey are public comments Please let me know what part of this email you would likeclarification on and what part you would like considered public testimony

I appreciate your thoughtful consideration of WSDOTrsquos implementation of our civil rightsprograms

Best Regards

Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

DIDaniel Seydel IIFyi Daniel J Seydel II Platinum Group LLC 2064060844 f) 2062999934wwwplatinumbusinessgroupcom Small Business is the Answer FREE TRAINING FORENTREPRENEURS amp JOB SEEKERS - Polish your skills or make your firm standout thanksto the EntrepreneurialThu 233pDI

Daniel Seydel IIThu 1272017 1123 AMInbox Sent ItemsShow all 7 recipientsTobaynejwsdotwagov ltBayneJwsdotwagovgtJackie

Per your request below are my questions and comments some of which were verbally sharedyesterday

Congratulations on receiving the blessing of additional technical assistance dollars andcompleting the DBE Disparity Study per your report

1) Do you have any reports on your outcomes from the past 5 years on DBE support servicesand specific key performance measures from previous years funding (ie how many firmsutilized what was the objectives were objectives met did outcomes meet total satisfaction ifnot why next steps what was the firms capacity before and after services were performed (ie

sales employees bonding if applicable insurance equipment line of credit if applicablenumbertype of customers how are they doing now etc))

2) What other changes or improvements other than allowing DBES to select their own serviceproviders and a staff change will be a part of this new program

3) Was consideration to provide the new mentor protege consultant rather than separating theactivities into support services andor technical assistance

Disparity study clarifications andor comments

1) Will WSDOT consider sponsoring legislation to support the policy changes and goalincreases to insure manditory goals wont be necessary

a) If not what measures will you grant primes to operate outside the box (ie entertain bestvalue over low bid modify responsiveness by subs to require adherence to meeting voluntarygoals developing standards around federally funded gccm and other low bid procurementsthat give powers to primes to meet objectives including but not limited to mentor protegerelationships joint ventures bond waiving techniques cash flow assistance material andequipment acquisition manufacturer development specifications that have only DBES orinclude equal number of DBES as non DBES as approved installers etc)

2) Will the disparity study consultant be available for implementation or information gatheringfrom other regions

3) What lessons did WSDOT learn that it did not know from the other study(s)

4) What would WSDOT do different (ie scope time line process approach etc)

5) Will WSDOT be hiring more diverse staff amp professionaltechnical service providers inother departments outside OEO to insure policies commitments and evaluations areperformed in manner that improves diversity that reflects the communities WSDOT serves bythoughtful and legal efforts increase participation thus creating successful outcomes includingpartnerships and collaborations

Daniel J Seydel IIPlatinum Group LLC 2064060844f) 2062999934wwwplatinumbusinessgroupcom

Small Business is the Answer

FREE TRAINING FOR ENTREPRENEURS amp JOB SEEKERS - Polish your skills or makeyour firm standout thanks to the Entrepreneurial Institute of Washington

httpswwwyoutubecomchannelUCKL5YeVxL29HnNxqnb6hmXA

LIKE US on FaceBook if an Active Professional Development workshop provided by EIW

Construction University helps your firm or has benefited you

httpswwwfacebookcomEIWashingtonref=hl

From Bayne Jackie ltBayneJwsdotwagovgtSent Friday December 8 2017 10139 PMTo Daniel Seydel IICc Key Earl daneiwashingtonorg Nadeem Ismail Mussie Tewelde(mteweldehydro2geotechcom) graceflyrightaolcom Mary Wenner Watkinson LarrySubject RE Seydel Dan - WSDOT Disparity Study Presentation Public Testimony Hi Dan Thank you for providing such thoughtful public comments questions and testimony Regarding your public testimony below - I do not believe I am not able to answer questions if theyare public comments Please let me know what part of this email you would like clarification on andwhat part you would like considered public testimony I appreciate your thoughtful consideration of WSDOTrsquos implementation of our civil rights programs Best Regards Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov From Daniel Seydel II [mailtodanplatinumbusinessgroupcom] Sent Thursday December 7 2017 1123 AMTo Bayne Jackie ltBayneJwsdotwagovgtCc Key Earl ltKeyEwsdotwagovgt daneiwashingtonorg Nadeem Ismailltnipaintingearthlinknetgt Mussie Tewelde (mteweldehydro2geotechcom)ltmteweldehydro2geotechcomgt graceflyrightaolcom Mary Wennerltmwenn0108yahoocomgtSubject Seydel Dan - WSDOT Disparity Study Presentation Public Testimony Jackie

Per your request below are my questions and comments some of which were verbally sharedyesterday

Congratulations on receiving the blessing of additional technical assistance dollars andcompleting the DBE Disparity Study per your report

1) Do you have any reports on your outcomes from the past 5 years on DBE support servicesand specific key performance measures from previous years funding (ie how many firmsutilized what was the objectives were objectives met did outcomes meet total satisfaction ifnot why next steps what was the firms capacity before and after services were performed (iesales employees bonding if applicable insurance equipment line of credit if applicablenumbertype of customers how are they doing now etc))

2) What other changes or improvements other than allowing DBES to select their own serviceproviders and a staff change will be a part of this new program

3) Was consideration to provide the new mentor protege consultant rather than separating theactivities into support services andor technical assistance

Disparity study clarifications andor comments

1) Will WSDOT consider sponsoring legislation to support the policy changes and goalincreases to insure manditory goals wont be necessary

a) If not what measures will you grant primes to operate outside the box (ie entertain bestvalue over low bid modify responsiveness by subs to require adherence to meeting voluntarygoals developing standards around federally funded gccm and other low bid procurementsthat give powers to primes to meet objectives including but not limited to mentor protegerelationships joint ventures bond waiving techniques cash flow assistance material andequipment acquisition manufacturer development specifications that have only DBES orinclude equal number of DBES as non DBES as approved installers etc)

2) Will the disparity study consultant be available for implementation or information gatheringfrom other regions

3) What lessons did WSDOT learn that it did not know from the other study(s)

4) What would WSDOT do different (ie scope time line process approach etc)

5) Will WSDOT be hiring more diverse staff amp professionaltechnical service providers inother departments outside OEO to insure policies commitments and evaluations areperformed in manner that improves diversity that reflects the communities WSDOT serves bythoughtful and legal efforts increase participation thus creating successful outcomes includingpartnerships and collaborations

Thank you for your hard work

Daniel J Seydel IIPlatinum Group LLC2064060844f) 2062999934wwwplatinumbusinessgroupcom

Small Business is the Answer

FREE TRAINING FOR ENTREPRENEURS amp JOB SEEKERS - Polish your skills or makeyour firm standout thanks to the Entrepreneurial Institute of Washington

httpswwwyoutubecomchannelUCKL5YeVxL29HnNxqnb6hmXA

LIKE US on FaceBook if an Active Professional Development workshop provided by EIWConstruction University helps your firm or has benefited you

httpswwwfacebookcomEIWashingtonref=hl

From Erin EhlingerTo Bayne JackieSubject Support for WSDOTs proposed DBE goalDate Wednesday December 13 2017 115417 AM

I am writing to support the WSDOT recommended DBE Goal for FHWA contracts of 190 I also want to express my appreciation for the thoroughness of the WSDOT Disparity study and howthe study disclosed the disparity in WSDOT contracts that do not have a DBE or WBE goal ndash furtherreinforcing that all women-owned firms and minority owned firms face equity issues I remain concerned with the methodology required by the Code of Federal Regulations and case lawbecause of the dependence on the availability of firms in the calculation An unintendedconsequence of removing either gender or race from the goal is that many of these firms would goout of business the availability decreases and the formula then results in a smaller DBE goal Pleaselet me know how I can help influence a change to the CFR Thank you Erin Ehlinger

Erin Ehlinger PEPresident

24036 SE 47th StSammamish WA 98029erinehlingersmartcitytrafficcom425-221-0320

From Jackie EtterTo WSDOT Disparity StudySubject Why we need mandatory goalsDate Friday December 1 2017 61859 PM

As a DBE participating in bidding process I have found that regardless of the language which claims to insurethat disadvantaged business enterprises shall not be discriminated against the only way to ensure that this does nothappen is by mandating affirmative action goals Having been overlooked time and time again because of my gender when I have submitted bids that are verycompetitive with other bidders is very frustrating I have had many instances of companies using my price to getmy non DBE competitors to lower theirs The voluntary or laudatory DBE goals do nothing to ensure a level playing fieldThe only way to ensure non-discrimination is through mandatory goals

Jackie EtterWest Star Construction of Spokane

Sent from my iPhone

From Claudia HirscheyTo Key Earl Bayne JackieSubject WSDOT DBE Goal - Comment in supportDate Tuesday December 12 2017 61937 PM

Dear Earl and Jackie The WSDOT recommended DBE Goal for FHWA contracts of 190 is a small and important increasethat can further achieve equity in WSDOTFHWA contracting I am in support of the 19 DBE Goal I also want to express my appreciation for the thoroughness of the WSDOT Disparity study and howthe study disclosed the disparity in WSDOT contracts that do not have a DBE or WBE goal ndash furtherreinforcing that all women-owned firms and minority owned firms face equity issues I remain concerned with the methodology required by the Code of Federal Regulations and case lawbecause of the dependence on the availability of firms in the calculation An unintendedconsequence of removing either gender or race from the goal is that many of these firms would goout of business the availability decreases and the formula then results in a smaller DBE goal Sincerely Claudia S Hirschey PETransportation Consulting Servicesclaudiahirscheycomcastnethttphirscheytcscom2068564988 Mobile

From Nate ThomasTo WSDOT Disparity StudySubject WSDOT Proposes DBE goal of 19Date Thursday December 7 2017 42720 PM

The WSDOT should look into similar ways the Federal Gov has handled the equal opportunity forthose that fall under the DBE status and set aside specific projects for the DBErsquos and moreimportantly UDBErsquos so these companies have better chance of landing contracts Maybe a lot 10 ofthe DBE goal to set aside for only DBEs and other 9 goal met as it is done currently with COA onlarger contracts Nate ThomasSenior EstimatorD 5095688085 | C 5099941156331 North Fancher Road | Spokane WA | 99212

The information contained in this email including any attachments is confidential and may beprivileged It is intended only for the person or entity to which it is addressed and no waiver isintended by sending this email If the reader is not the intended recipient you are herebynotified that any review retransmission dissemination or other use of or taking any action inreliance upon this information is strictly prohibited If you have received this email in errorkindly notify the sender by reply email and delete the original message from any computerThank You

From Brian FujiiTo WSDOT Disparity StudySubject WSDOT propsed DBE GoalsDate Thursday December 7 2017 110638 AM

Good morning Jackie

I wanted to comment on WSDOTs proposed DBE goal to 19 I believe WSDOTs plan toincrease the overall DBE goal to 19 will provide greater opportunities for DBE contractorsin different disciplines to participate in federally funded contracts

Without the new DBE requirement and with Proposition 200 there are limited opportunitiesfor DBE contractors in disciplines different than the typical trucking flagging and rebar Inaddition there are no incentives for general contractors to go out beyond the usual truckingflagging and rebar DBE subcontractors

Increasing the DBE goals will provide opportunities for different DBE contractors in differentdisciplines to participate in WSDOT federally funded projects

Thank you for your time

RespectfullyBrian FujiiPresident Subsurface ConstructionP 2063836478F 2069604639MDBE 4M0024998

From Forman StephanieTo Bayne JackieCc Millar Roger christinenhanmailhousegov Claudia Hirschey Sarah Corbin Jiang Yingle

efaulknerenviroissuescom Diana Giraldo Kelly CheesemanSubject WTS - Disparity Study Comment LetterDate Friday December 15 2017 71020 PMAttachments 2017_Dec 15_WTSCommentLetter_WSDOT DBE Goalpdf

Dear Ms Bayne Please find our attached letter which summarizes the WTS Puget Sound Chapterrsquos support foradvancement of women in transportation and our comment letter regarding the recent DisparityStudy Please feel free to contact me if you have any questions or would like to discuss Sincerely Stephanie S Forman PEWTS Puget Sound President Transportation Project Manager

929 108th Avenue NE Suite 1300Bellevue WA 98004D 4254681548 M 2062291745stephanieformanhdrinccom

December 15 2017

Jackie Bayne Policy and Reporting Manager

Office of Equal Opportunity

Washington State Department of Transportation

PO Box 47314

Olympia WA 98504-7314

Dear Ms Bayne

On behalf of the Puget Sound Chapter of Womenrsquos Transportation Seminar (WTS) we would

like to thank the Washington State Department of Transportation for presenting to our

organization the DBE Disparity Study results We very much appreciated the presentation by Earl

Key Director of WSDOTrsquos Office of Equal Opportunity Teresa Berntsen (Director Office of Minority

and Womens Business Enterprises) as well as Leslie Jones (Director Sound Transit Office of Small

Business Development and Labor Compliance)

Following a review of the WSDOT Disparity Study and as a result of consultation with WTS

International we would like to provide WSDOT with our comments for your consideration

As you know WTS is an organization focused exclusively on attracting retaining and advancing

women in transportation By the year 2018 there will be thousands of vacancies in the

transportation industry for qualified professionals and while women account for more than half of

the worldrsquos workforce they are a very small minority in transportation disciplines

We are pleased that the outcome of the 2017 Disparity Study that recognizes the on-going barriers

for DBEs including women-owned businesses in transportation The WSDOT recommended DBE

Goal of 190 is a small and important increase that can further achieve equity in WSDOTFHWA

contracting We are also pleased that the 2017 Disparity Study has documented the disparity in

WSDOT contracts that do not have a DBE or WBE goal ndash further reinforcing that all women-owned

firms and minority owned firms face equity issues We are encouraged that the WSDOT has asked

FHWA to rescind the 2016 waiver

While WTSrsquo mission is specific to the advancement of women we are a race-neutral organization To

this end we are also deeply concerned about the underutilization of minority owned firms There is

no equity or ldquofair playing fieldrdquo without equity for all gender and races We remained concerned with

the methodology required by the Code of Federal Regulations and case law because of the

dependence on the availability of firms in the calculation An unintended consequence of removing

either gender or race from the goal is that many of these firms would go out of business the

availability decreases and the formula then results in a smaller DBE goal This consequence is

contrary to our mission

We look forward to our continued participation in WSDOTrsquos DBE advisory group we are anticipating

notice that the 2016 waiver has been rescinded and how we can work together to continue

advancing minority and women-owned firms in the transportation field

Sincerely

WTS Puget Sound Chapter

Stephanie Forman

President

C Roger Millar Secretary WSDOT

C Representative Adam Smith 9th Congressional District Washington co Christine Nhan

WTS Puget Sound Chapter

PO Box 3461

Bellevue Washington 98009

From Dave Gent - WAPATo Bayne JackieCc Tom GaetzSubject WAPA Public Comments - RE WSDOT FHWA Disadvantaged Business Enterprise Proposed GoalDate Friday December 15 2017 14119 PMAttachments 12152017 DBE Proposed Goal - WAPA Public Comments Letterpdf

Good afternoon Jackie Please find attached WAPArsquos ldquofor the public recordrdquo comments with respect to WSDOTrsquos proposedDBE Goals FHWA funded work I assume that the Master DBE Directory was not sent to you this week so as a result we were notable to review the directory before the close of the public comment period That fact is noted withinour comment letter Thank you for your efforts Have a good weekend

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Friday December 8 2017 1219 PMTo Dave Gent - WAPA ltdavegentasphaltwacomgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hello Dave WSDOT did not take possession of this directory as part of our review process We will provide youwith the records without submitting a formal request However we need to get them from theconsultant first I will hopefully have them to provide next week I will keep you updated on therequest Have a nice weekend Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal Opportunity

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

December 15 2017

Jackie Bayne Policy Manager WSDOT Office of Equal Opportunity Delivered via e-mail to BayneJwsdotwagov RE Public Comment (as requested) to Proposed Overall DBE Goal for the FHWA (2018 ndash 2020) Ms Bayne Thank you for your presentation via webinar on December 5 2017 outlining WSDOTrsquos evaluation process used to determine the proposed overall DBE goal for the FHWA Thank you also for the Colette Holt amp Associates (CHA) DBE Advisory Group presentation made on September 14 2017 Both presentations helped to distill the findings of the 2017 Disparity Study produced by CHA In response to Earl Keyrsquos initial informal request to comment on the proposed overall DBE goal made during the DBE Advisory Committee teleconference held on October 12th we provided a list of reasons that we believe justify a lower DBE goal than is now being proposed Our initial response to Mr Keyrsquos request did not serve to influence WSDOT and the current proposed goal remains at 190 The arguments provided on October 12th against the significant increase in the proposed DBE goal (versus the previous goal and recent historic DBE participation) are repeated and supplemented below and will serve as the Asphalt Pavement Associationrsquos (WAPArsquos) official public comments

In concert with WSDOT and the OWMBE WAPA and the construction firms that WAPA represents have demonstrated a commitment to the principals of equal opportunity for all ldquoready willing and ablerdquo firms for the entire history that our DBE program has been in place WAPA has continuously demonstrated its commitment to the goals of the DBE program and for increasing the representation of disadvantaged groups within our industry as both workers and owners of firms Please recognize that WAPArsquos oversight and critique of the DBE program has always attempted to balance the principals of fair and open competition with the practical aspects of the low bid compressed schedule high performance standards demanded within the WSDOT marketplace Our comments below are meant to enhance WSDOTrsquos and OWMBErsquos understanding of the market and to hopefully have WSDOT fully consider all of the dynamics that are at play when proposing its Triennial DBE goal for FHWA projects Current DBE Capacity vs Historically Robust Market In advocating for a realistic and defensible DBE goal it has always been WAPArsquos position that it is paramount that the realities of the marketplace and true certified DBE subcontracting capacity should be a primary standard While a ldquostretchrdquo goal may appear to be progressive on its face it comes with consequences for all of the parties involved in the WSDOT federal aid contracting arena To balance the dynamics of the WSDOT contracting system the DBE goal should be tempered with the realities of the market and with a true measure of the underlying effectiveness of the DBE support services available to contractors

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 2 of 6 The first point of fact that has not been given any apparent consideration by WSDOT in its evaluation of the current capacity of certified DBErsquos is that there is an historically robust workload scheduled to be performed in the 2017 through 2022 time-frame particularly in the Puget Sound ldquoEverett to Olympiardquo corridor By WSDOTrsquos own estimates (see Attachment A) public works construction project starts in the 2018 to 2022 time-frame in this region will exceed $333 billion (B) counting the work projected from just five public entities WSDOT will be taking a decidedly ldquoback seatrdquo role during this period to Sound Transit which will have construction project starts of $226B vs WSDOTrsquos projected volume of $67B WSDOTrsquos summary publication titled Washington State Department of Transportations Proposed Federal Highway Administration Triennium Disadvantaged Business Enterprise Goal Federal Fiscal Years 2018-2020 states correctly that ldquoIncluded among the types of evidence that must be considered are the current capacity of DBEs to perform work on WSDOTrsquos federally-assisted contracts as measured by the volume of work DBEs have performed in recent yearshelliprdquo (Step Two Adjustment discussion) With the Sound Transit program being over 300 larger than the total WSDOT program in this region a sober assessment of true certified DBE capacity in the next three years needs to be considered by WSDOT If the huge construction boom over the next five years does not prompt a Step Two Adjustment then it becomes obvious that the realities of the market are being ignored by WSDOT for DBE goal setting Put another way if the 2018 through 2022 level of contracting activity does not warrant a goal adjustment what will DBE Access Barriers Not Yet Addressed The CHA 2017 Disparity Study points out multiple recommendations in Section VII that impact DBE participation and access to the market Assessments relating to those impacts and the state of maturity in addressing the CHA recommendations should be considered when assessing the DBE goal Many of the CHA recommendation have not been adequately addressed at this point in time Some of the prime examples are listed below Increase Certification and Expertise ndash The Disparity Study as explained to us includes all minority- (MBE)

and women-owned (WBE) firms that could be readily identified that perform work within Washington State and that perform work within the NAICS code framework CHA developed to cover WSDOT project work During the various presentations relating to the Disparity Study WSDOT representatives said that outreach to currently non-certified MBE amp WBE firms has increased and that WSDOT aspires to bolster its list of certified firms in the future but this effort is just beginning and the success of the effort needs to be means tested against the broader population of MBE amp WBE firms included in the CHA base line evaluation As the Disparity Study uses a much broader population of MBE WBE contractors to arrive at its conclusions (both non-certified firms and firms too large for certification) it follows that the calculated DBE proposed goal is overstated to include capacity that does not currently exist within WSDOTrsquos certified DBE framework Unless OMWBE is experiencing sudden and unprecedented success in recruiting new MBEWBE firms the DBE goal should be adjusted downward to recognize that the ldquoready willing and ablerdquo contractors that WSDOT has certified is only a subset of the total MBEWBE contracting population used in the Disparity Study evaluation

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 3 of 6

Until the promised WSDOT outreach registration efforts result in a substantial increase in available certified DBE firms it is premature to count the entire population of minority- and women-owned contractors as available to participate in WSDOT contracting It is unreasonable for WSDOT to project availability capacity using the entire MBEWBE population when only its currently truncated list of certified firms is acceptable to count toward the DBE goal

A corollary to the Increase Certification and Expertise discussion above is that the calculation of the Base Figure evidently includes the broadest practical population of MBE and WBE firms identifiable (without a review of the CHA Master DBE Directory which has not been supplied prior to the close of the public comment period the scope of the directory cannot be ascertained) If this directory includes a large population of MBEWBE firms that are not certified or are too large to be certified then the Base Figure calculation should be adjusted to reflect that certified DBE firms are a fraction of the total MBEWBE firms used to arrive at the 19 suggested DBE goal With respect to the CHA Master Directory it is our understanding the WSDOT was not given the directory as part of its evaluation of the Disparity Study and it follows that it did not evaluate the proposed DBE goal in the context of the CHA Master DBE Directory In our opinion an informed decision on adjusting the CHA baseline goal calculation can only be done after an extensive evaluation of the CHA Master DBE Directory If this has not been done WSDOT has not exercised due diligence in evaluating the context and underpinnings of the CHA Disparity Study and a certified DBE Triennium goal proposal to the FHWA is premature Increase Contract ldquoUnbundlingrdquo ndash If this proposed strategy (suggested by the CHA Study) is undertaken

certified DBE Subcontractors currently available will be engaged as Prime Contractors and the value of their prime contracts will bolster the overall percentage of certified DBE contracting but a systematic effort and strategy to ldquounbundlerdquo has not been articulated by WSDOT The key question of how this effort can be accomplished without increased cost to the taxpayers and increased inconvenience for the traveling public As noted in the CHA study (page 129 final paragraph) ldquoUnbundling must be conducted however within the constraints of the need to ensure efficiency and limit cost to the taxpayersrdquo As of this writing no overarching strategy for further unbundling with proper accountability has been articulated by WSDOT to the DBE Advisory Group

Review Insurance and Experience Requirements ndash Impediments to certified DBE participation due to

necessary insurance and experience standards cannot be solved by the prime contracting community Unless and until WSDOT puts together programs to address the burden of the substantial risks shouldered by Prime Contractors on WSDOT contracts barriers for streamlined utilization of certified DBE firms will continue to exist These market driven barriers will continue to dampen the availability of certified DBE Subcontractors that are able to perform within WSDOTrsquos strict criteria without unduly transferring risk to the Prime Contractor

Better Partnering to Overcome DBE Failures to Perform ndash Prime Contractors are held fully responsible to maintain the project schedule and are subject to project liquidated damages even when they may be struggling to deal with Subcontractor performance issues It is well-established that replacing a certified ldquocondition of awardrdquo (COA) DBE Subcontractor is very onerous and likely very costly to the Prime Contractor Unfortunately the imposition of strict and often counter-productive commercially useful function (CUF) rules often compound this issue as Prime Contractors cannot help COA DBE Subcontractors work through capacity expertise or time-related issues that impact timely performance

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 4 of 6

WSDOT needs to be a much better partner in the process of dealing with under-performing or non-performing certified DBE Subcontractors The current standard operational procedure places all of the exposure for non-performance onto the Prime WSDOT does not have an equitable system to account for non-performing or under-performing certified DBE Subcontractors hired as a condition of award (COA)

Performance Information and Training ndash Commercially useful function rules (CUF) and the lack of clear benchmark definitions for good faith effort (GFE) standards remain barriers for improving accountability within the DBE system and in turn lead to distorted DBE participation rates These items remain amorphous due to lack of training or lack of historic information Chronic uncertainty exists regarding both of these items Until WSDOT changes and improves its approach to provide transparency and certainty for both the prime bidding amp subcontracting parties true certified DBE capacity will continue to be masked and the resultant higher subcontracting costs associated with a distorted marketplace will continue to be hidden

WAPA respectfully suggests that simply adding an ldquoEstimated DBE Subcontract Premiumrdquo line to the current DBE bid forms would help to establish benchmarks that could begin to be used to ldquomeans testrdquo good faith efforts If this information had been gathered over the last 20 years of the DBE program meaningful GFE standards could have been developed and could be in place today

An in-depth review of CUF standards would also provide clarity For instance it is unclear why force account items performed by certified DBEs are currently counted at only 50 of the value of the work How was this benchmark established Has it been reviewed since imposed Did it ldquosolverdquo whatever inequity WSDOT was trying to address Better clarity may lead to more expanded opportunities for certified DBE Subcontractors

Enhanced Supportive Services and Business Development Programs ndash Unless and until stronger programs of these types are shown to be effective in boosting certified DBE business development increased DBE participation due to stronger business acumen should not be relied upon when setting the new DBE goal

Does OMWBE have a reasonable expectation that future plans for enhanced and expanded programs will be more successful than those employed in the past Assuming that certified DBE Subcontractors will be better prepared to deal with the WSDOT contracting environment than in the past should not be relied upon to boost DBE participation goals Especially troubling were the multiple references within the CHA report highlighting that DBEs believe that the staff at OMWBE lack a deep knowledge about the highway construction industry (eg Study page 129 2nd paragraph) Does OMWBE have a path forward that will address this issue and thus improve supportive services impacts

Develop a Bonding and Financing Program for SBEs ndash This is completely outside of the prime contracting

communityrsquos scope of influence WSDOT must find a way to institute changes that both protect the taxpayer and help increase certified DBE bonding capacity and access to financing ndash very large hurtles To assume that these hurtles can effectively be overcome within the 2018 ndash 2020 time frame when they have been chromic issues for the past 20 plus years of DBE program development is not rational

A helpful innovation would be for WSDOT to underwrite performance and payment bonds for certified DBE firms or to create promote a system that helps certified DBE firms obtain private bonding Bridging the gap to address capital access and performance risks (bonding) must be championed by WSDOT

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 5 of 6

Base Figure Adjustment to Address Available Subcontract Volume and DBE Prime Contracts It is a fact that mid- to large-sized MBEWBE firms that compete both as Prime Contractors and as Subcontractors are not eligible to be OMWBE certified DBEs Further the current amount of contract unbundling for greater DBE access to WSDOT prime contracting (see below) accounts for a very low dollar volume of prime contracts performed by certified DBEs Finally by specification (WSDOT standard specification 1-081) Prime Contractors are obligated to perform 30 of the total volume of the work (less specialty work) or stated another way a maximum of 70 of the dollar volume on WSDOT projects is typically available to award to subcontractors These market dynamics are NOT addressed in the Disparity Study A responsible DBE goal made absent of these facts should not be implemented A reasonable adjustment to the proposed 19 DBE goal is presented below

bull The percent of WSDOT prime contracts awarded to certified DBE firms is likely less than 5 by total WSDOT

contract volume Assuming this approximation is valid (likely very conservative) then the amount of WSDOT contract work available to certified DBE firms via subcontracting should be adjusted to account for the factors outlined above The Base Figure (19) should be adjusted to recognize that a 70 maximum subcontractor participation is available (in the numerator) and to account for the assumed 5 certified DBE prime contracts in the denominator Reasonable Base Figure Adjustment 19 (proposed) x 70 subcontracts available divide 95 of Non-Certified DBEs as Prime Contract Volume = 190 x 0737 = 140 adjusted goal This is an adjustment based on the practical dynamics of the WSDOT contracting system and it represents a more realistic look at the true subcontract volume that is available for Prime Contractors to award to certified DBE firms

Conclusions

Until the items listed above are addressed and in place it is not reasonable to believe that DBE goals can be increased by nearly 163 (from 117 to 190) When the projected robust public works contracting market is appropriately considered the true availability of certified DBE Subcontractors for WSDOT contracts will be truncated due to demand across all public works sectors With multiple strong public works programs competing for a limited population of certified DBEs the ability to meet increased WSDOT DBE goals will be severely challenged Without very clear concise and transparent good faith effort rules the ability to address DBE goals that greatly overestimate true near term certified DBE capacity will result in non-attainment bid day chaos failures to perform andor rapidly increased pricing

The clear conclusion is that at this point in time under the current circumstances without effectively instituted new programs rules procedures that could enhance the certified DBE programrsquos overall effectiveness we believe that the DBE goal should remain at or near 12 As OMWBE documents and demonstrates its future successes in improving access and eliminating capacity barriers only then should the DBE goal be re-evaluated and increased

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 6 of 6

In closing please remember that it is rare that the contracting community is asked our opinion with respect to the WSDOTrsquos DBE policies and so this letter is somewhat a vehicle to highlight collective concerns It is our belief that the majority of the Prime Contractors in Washington state support the objective of creating a level playing field for ready willing and able DBEs

If the level playing field is not yet possible in the absence of the DBE program then the key is to set realistic goals that recognize reflect and address the hard realities and market dynamics imposed by WSDOTrsquos bedrock environment of awarding contracts to the lowest cost responsible and responsive Contractor

Respectfully submitted Washington Asphalt Pavement Association

David Gent Tom Gaetz Executive Director Senior Advisor

Attachment A ndash WSDOT Central Puget Sound Public Works Contracting Projection 2018 - 2022

Con

stru

ctio

n Pr

ojec

t Sta

rts

2018

-202

2S

ound

Tra

nsit

$22

6 B

SD

OT

$08

B

Tran

sit

amp O

ther

s$1

7 B

WS

DO

T$6

7 B

Por

t of

Sea

ttle

$15

B

TOTA

L$3

33

B

Source N

ov 1

9 2

017

pres

enta

tion

to W

APA

Ann

ual M

eetin

g

Attachment A

Work (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Dave Gent - WAPA [mailtodavegentasphaltwacom] Sent Thursday December 7 2017 144 PMTo Bayne Jackie ltBayneJwsdotwagovgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hi again Jackie Irsquom fine thanks and hope you are the same Interesting The Master DBE Directory is the basis for and integral to the conclusions of the DisparityStudy Is it not then part of the information needed to fully review and comment on the DisparityStudy Was it not provided by CHA to WSDOT for review We are trying to fully understand thestudy and if this directory was part of the study why would it need to be obtained by a publicrecords disclosure It should be in the public domain and not restricted from ease of access If you are sure that a public records request is needed Irsquoll start that process but we will need tonote that point of fact when we submit our public comments If you are able to reconsider please let me know Respectfully

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Thursday December 7 2017 126 PMTo Dave Gent - WAPA ltdavegentasphaltwacomgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hello Dave I hope you are doing well

That information would likely be obtained through a public disclosure request Best Regards Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Dave Gent - WAPA [mailtodavegentasphaltwacom] Sent Thursday December 7 2017 113 PMTo Bayne Jackie ltBayneJwsdotwagovgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Jackie Can you please provide an electronic file or provide a weblink for the Master DBE Directory thatColette Holt amp Associates developed for the WSDOT Disparity Study 2017 (first referred to on Page 8of the Disparity Study) I did not see a link to this Master DBE Directory within the study Thanks

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Friday October 27 2017 1118 AMTo Kenyon Wendy ltKenyonWwsdotwagovgt Adams E W ltewadamssystemsclcomgtAdekoyaAndrew ltandrewadekoyabccomgt AlyssaBalllegwagov Anindita Mitraltamitracrea-affiliatescomgt APRISeattlehotmailcom Armstrong CharlotteltCharlieAatgwagovgt Ato Apiafi Architects PLLC ltatoaatoapiaficomgt benzfanwaorgBerntsen Teresa (OMWBE) ltTeresaBomwbewagovgt Billingsley Andrealtbillinawsdotwagovgt Bramlet Erica ltEricaBramletlegwagovgt Brooks Julius

ltBrooksJwsdotwagovgt Brown Jason ltjbrownldccorpcomgt bwallacenwlaborersorgCamden Allison ltCamdenAwsdotwagovgt carlllivingstongmailcom Cerda OscarltCerdaOwsdotwagovgt Christopher Chris ltChristCwsdotwagovgt ckerneycaawagovdanplatinumbusinessgroupcom davegentasphaltwacom David BalltDavidsignsnowmillcreekcomgt Davis Khalia ltDavisKhwsdotwagovgt Davis RaShelle (GOVltrashelledavisgovwagovgt Dayton Jo ltDaytonJwsdotwagovgt ddhondtagcwacomDebbieDriverlegwagov Dennis ltdennisahlkiewitcomgt dmcleodnwlaborersorgdrart6651gmailcom Duncan Enid lthigradeincgmailcomgt EltonltEltonwashingtonstatetruckingcomgt eprincecaawagov flemosldccorpcomfmartineznwmtnmsdcorg geoffshookatkncom glovelady ltgloveladyexcelglovescomgtGrabow Katie ltkgrabowsystemsclcomgt Guilfucci Jackie ltJackieGuilfucciskanskacomgt HealyLinda ltHealyLwsdotwagovgt Higginbotham Breanne ltHigginBwsdotwagovgt HirscheyClaudia ltclaudiahirscheycomcastnetgt Holt Colette ltcoletteholtmwbelawcomgt Huff JohnltHuffJwsdotwagovgt Iniguezchawagov JacksonMaynardlegwagov Jimmy Matta(jmattaalcantarassoccom) ltjmattaalcantarassoccomgt kellywickergovwagov Key EarlltKeyEwsdotwagovgt Kirk Jon ltjkirkwhhnfscomgt Kris Purrier ltkpurrierhwageocomgtleewabuildingtradesorg lesliejonessoundtransitorg Liz Evans ltlevansagcwacomgt LopezErin lterinlopezdeswagovgt Martha Cerna ltMarthaPSLCCORGgt Martin-Arnold EdwinaltMartinEwsdotwagovgt Mary Lerdahl ltmarydbeelectricinccomgt McCarty Hannahlthannahmccartylegwagovgt Melissa L Boyles ltmelissaboylesmwbelawcomgt Metcalf KeithltMetcalKwsdotwagovgt michaelicapaawagov Michelle ltMichelleTTCC26netgt MillarRoger ltMillarRwsdotwagovgt Nakamura Jason ltjasonnakamura1-alliancecomgtNavarroLportseattleorg olliepmt-solutionscom pastorbanksesbctacomacom PatrickHughes ltphugheshughesgroupbizgt Petersen Jodi (FHWA) ltJodiPetersendotgovgtrabbottliunaorg rcarmsteadgmailcom ricemportseattleorg Riley D ltdrileylydigcomgtSeling ltSelingjpfranciscomgt sherryharrisergosynchcom Stell MellodyltStellMwsdotwagovgt terigobintulaliptribes-nsngov timwilliamfactorycom tinaterra-tdicom tkellyldccorpcom tomgaetzmsncom vcollinsacec-waorgverlenejazzmsncom Wang Albert ltWangAatgwagovgt Waugh GregltGregWMaxKuneyComgt Yates Henry ltYatesHWSDOTWAGOVgtCc Tom Gaetz lttomgaetzmsncomgt Dave Gent - WAPA ltdavegentasphaltwacomgt VanCollins ltvcollinsacec-waorggt Daniel Seydel II ltdanplatinumbusinessgroupcomgt MaynardJackson ltJacksonMaynardlegwagovgt Carl Livingston ltcarlllivingstongmailcomgt DonMcLeod ltdmcleodnwlaborersorggt JIMMY MATTA ltjimmymattamsncomgt Prince Ed(CAAA) lteprincecaawagovgt David DHondt ltddhondtagcwacomgt Irene Reyesltgloveladyexcelsupplycompanycomgt McDaniel Craig ltMcDaniCwsdotwagovgtsherryharrisergosynchcomSubject WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Good morning On Monday October 30th WSDOT will be releasing the proposed overall Federal HighwayAdministration Disadvantaged Business Enterprise goal attached for public comment throughDecember 15 2017 This overall DBE goal is based upon the recently completely DBE ProgramDisparity Study WSDOT is proposing a 19 percent overall DBE participation goal on Federal Highway

Administration-funded projects for federal fiscal years 2018 through 2020 DBE goals fortransportation projects that receive federal funds represent a percentage of the value of work inwhich minority- and women-owned businesses should participate Once finalized and submitted toFHWA early next year the goal will be effective through Sept 30 2020

The purpose of the DBE program is to create a level playing field for firms owned and operated bydisadvantaged individuals wanting to participate in federally assisted highway transit and aviationprograms The attached overall DBE goal is for FHWA funded projects WSDOT will be updating theFTA and FAA overall DBE goals in the near future

If you have any questions please contact Earl Key Director of the Office of Equal Opportunity at3607057091 or KeyEwsdotwagov Thank you Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

  • Proof-Of-Publicationpdf
    • Mediapdf
      • AGC
      • Daily Journal
      • Daily Medium
      • DBEGood
      • OMWBE
      • Seattle Medium
      • Tabor 100
      • The Chronicle
      • Tukwila
        • King County
          • Public-Comments-20180111pdf
            • 19 DBE Requirement(1)
            • AGC Comments on Proposed 10 Goad
            • Backstrom Curb amp Sidewalk
            • comments on WSDOT proposed DBE goal
            • Cowlitz County Public Works
            • DBE Contracting goals
            • DBE Goal
            • DBE Program Disparity Study
            • Disparity Study Comments from City of Spokane
            • FW_ WSDOT News - WSDOT seeks comments on propos
            • Proposed DBE Goals
            • RE_ DBE Contracting Goal Comments
            • Re_ DBE Goal Comments
            • Re_ Seydel Dan - WSDOT Disparity Study Present
            • Support for WSDOTs proposed DBE goal
            • Why we need mandatory goals
            • WSDOT DBE Goal - Comment in support
            • WSDOT Proposes DBE goal of 19
            • WSDOT propsed DBE Goals
            • WTS - Disparity Study Comment Letter

2 ndash 4 pm Tuesday Nov 28WSDOT Eastern Region Headquarters2714 N Mayfair St Spokane

Vancouver

2 ndash 4 pm Wednesday Nov 29WSDOT Vancouver Headquarters11018 NE 51st Circle Vancouver

Seattle

2 ndash 4 pm Thursday Dec 7WSDOT Northwest Region Headquarters15700 Dayton Ave N Shoreline

Other ways to provide commentThose who are unable to attend one of the meetings can participate in a no-cost webinar from230 ndash 430 pm Tuesday Dec 5 Registration for the webinar is required Those interested inparticipating should email DisparityStudywsdotwagovWritten comments can also be submitted by mail or emailJackie Bayne Policy amp Reporting ManagerWashington State Department of TransportationOffice of Equal OpportunityPO Box 47314Olympia WA 98504-7314DisparityStudywsdotwagovDocuments detailing the methodology used for determining the FHWA DBE goals areavailable for review at all WSDOT region headquarters offices and at the TransportationBuilding 310 Maple Park Ave SE Olympia They are also available online atwwwwsdotwagovequalopportunityWSDOT will consider all written comments received through Friday Dec 15 2017 Hyperlinks within this release

WSDOT Region offices wwwwsdotwagovContactofficelocationhtmregion

WSDOT keeps people businesses and the economy moving by operating and improving the statestransportation systems To learn more about what were doing go to wwwwsdotwagovnews forpictures videos news and blogs Real time traffic information is available at wwwwsdotcomtraffic or bydialing 511 Americans with Disabilities Act (ADA) InformationAccommodation requests for people with disabilities can be made by contacting the WSDOTDiversityADA Affairs team at wsdotadawsdotwagov or by calling toll-free 855-362-4ADA (4232)Persons who are deaf or hard of hearing may make a request by calling the Washington State Relay at711 Title VI Statement to Public It is WSDOTrsquos policy to assure that no person shall on the grounds ofrace color national origin or sex as provided by Title VI of the Civil Rights Act of 1964 be excluded fromparticipation in be denied the benefits of or be otherwise discriminated against under any of its federallyfunded programs and activities Any person who believes his or her Title VI protection has been violatedmay file a complaint with WSDOTrsquos Office of Equal Opportunity For additional information regarding Title

VI complaint procedures andor information regarding our non-discrimination obligations please contactOEOrsquos Title VI Coordinator at 360-705-7090 To unsubscribe to WSDOT media releases please reply and type REMOVE in the subject line

This e-mail and related attachments and any response may be subject to public disclosure under state law

From Cochrane EmilieTo WSDOT Disparity StudyCc Eugenis Susan Cowlitz Co Public Works - Brad BastinSubject Proposed DBE GoalsDate Thursday December 14 2017 85006 AMAttachments image002png

DBE Goals - Commentspdf

Please see the attached letter with comments regarding the proposed DBE Goals Ahard copy will be sent out today

Thanks

Emilie CochraneCowlitz County Public Works1600 ndash 13th Avenue SKelso WA 98626360-577-3030 ext 6523

From Michelle WolcottTo Bayne JackieCc Robideau Christopher LSubject RE DBE Contracting Goal CommentsDate Tuesday November 7 2017 65448 AMAttachments image001png

Thank you JackieWhat a relief to know that we have been heard and are not the only small business facing thisstruggle Your email is comforting

Yes you can provide us with additional assistanceLet me introduce my boss and Senior Vice President of Red Plains Professional Chris Robideau

Chris will be your contact from here since I will be leaving the company November 17th As a WA DBE we are ldquoeligible for limited DBE Support Services (SS) funding when funds becomeavailablerdquo When will this happen And are we registered or on a list to receive fundingIs the WSDOT ICR Training a prerequisite for the funding Or just helpful knowledge

Thank you for your time Jackie I will follow through with the training

Michelle Wolcott EIT Quality Control Engineer

2103 NE 129th Street Suite 201 Vancouver WA 98686 Office (360) 448-7999 Fax (360) 258-0274

wwwred-plainscom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Monday November 6 2017 332 PMTo Michelle Wolcott ltMichelleWolcottred-plainscomgtSubject RE DBE Contracting Goal Comments

Hi Michelle

Thank you for your interest in doing business with WSDOT I apologize for the lack of informationyou have come up against in your attempts to attain access to WSDOT ICR program

As you may well know WSDOT has recently completed a state wide agency specific diversity studyAnecdotal comments submitted with the study concur with your experience Not only did somerespondents find it difficult to become prequalified they also commented that the required indirectrate of 110 percent is too low to be profitable These requirements are currently under advisementby WSDOT and new DBE program requirements are currently in the process of seeking public input

As you are an OMWBE certified DBE in Washington State you will be eligible for limited DBE SupportServices (SS) funding when these funds become available At that time funds may become availableto assist you in your struggle to attain ICR eligibility Here is a link to WSDOTrsquos Indirect Cost RateTraining httpswwwwsdotwagovAuditICRTraininghtm If you would like me to find additionaltraining or information please let me know

If I can provide additional assistance of information please let me know

Best Regards

Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Michelle Wolcott [mailtoMichelleWolcottred-plainscom] Sent Tuesday October 31 2017 835 AMTo WSDOT Disparity Study ltDisparityStudyWSDOTWAGOVgtSubject DBE Contracting Goal Comments

HelloI have been in contact with WSDOT for 6 months sharing my disparaging story of beinga small DBE unable to submit SOQs for projects requiring a WSDOT Audited IndirectCost Rate Approval We do not have an in-house accountant and our outsideaccountant has explained to get all the paperwork together for WSDOT would take 40hours of work $9000 annually We cannot justify this cost to submit on a project thatwe may not acquire We have been directed to seek financial assistance from WSDOT Federal SBA andWashington State Office for Women and Minority Owned Enterprises all of whichprovided negative responses

As a DBE business in 11 states we are supporting the 19 incentive for federallyfunded contracts but we are frustrated in the fact that we will not be one of the luckyfew to participateWe have been in business 20 years From our Vancouver Washington office our clientsare the Native American tribes across the country with all contracts federally funded This summer alone the WSDOT ICR Approval has squashed our ability to submit on twoprojects that we were perfectly qualified to performI have attached previous emails to show a sample of who I have been dealing with

Thank you

Michelle Wolcott EIT Quality Control Engineer

ltimage001pnggt

2103 NE 129th Street Suite 201 Vancouver WA 98686 Office (360) 448-7999 Fax (360) 258-0274 wwwred-plainscom

From Michelle Wolcott Sent Monday July 10 2017 954 AMTo Harvey Schatzie ltHarveySwsdotwagovgtSubject RE WSDOT Indirect Cost Rate Process

Good Morning Schatzie

This is Michelle Wolcott from Red We spoke Friday June 30th about the ICRprocess and you were very encouraging I relayed the information to my boss who ishere in Vancouver then he shared with the president bookkeeper and our accountantin Oklahoma We had FAR compliance with Oklahoma DOT in 2015 so we are noteligible for the Safe Harbor Program Our account said our timekeeping system doesnot breakdown the hours and pay in the format WSDOT wants to have it presented andto get the documents in order would take the CPA and an assistant $9000 in paidhours of work It turns out this would have to be annually The other option is to hirean outside CPA firm to do the audit for us at $20000 annually

Our president said in the past we received funding assistance from the Stateof Oklahoma to get our ICR approval Does WSDOT offer any financial assistance for small businesses to reach compliance We are also a DBE in WA I have requested the same information from WA PTAC at theVancouver Chamber of Commerce and from WA Office of Minority and Women OwnedBusiness Enterprises and they both said there was nothing but suggested to askWSDOTThank you for your helpMichelle Wolcott EIT

Hello Michelle sorry but I am not aware of any grants But I was looking at this andthere is a POC at the bottom you may try to discuss the audit issuesHollyHolly BoehmeBusiness Opportunity Specialist | 8(a) Business Development ProgramUS Small Business Administration bull Seattle District Office

Hello Michelle -

Thank you for your email Im not aware of any funding available for thispurpose but do agree its quite a bit for a DBE firm to have as an expense Mostof the firms I work with do a lot more work on the Oregon side so perhaps thereare programs available that I just havent heard of Im copying my colleagueHoly Boehme in our Seattle District Office to see if they are aware of any suchassistance

Holly might there be some small business incubators or other resources availablein WA to help a small firm with the expense of getting a WSDOT AuditedIndirect Cost Rate approval Please reply all with anything you may have

Thank you

Yuri Yoshida Dyson Business Opportunity SpecialistUS SMALL BUSINESS ADMINISTRATION Portland District OfficePhone 503-326-6692 Fax 202-292-3872 wwwsbagovor

From Troy HalbergTo Bayne JackieSubject Re DBE Goal CommentsDate Wednesday December 13 2017 35533 PM

JackieToday was another example of why the goals should not be raised There were 2 jobs which Iwas low on and did not get due to the high goals This is exactly what will happen when thegoals get raised The first job was the 9180 Anacortes Ferry Paving Northeast Electric $244924 and UDBE $318000 Second job was the 9172 SR 9 East Junction Job Northeast Electric $68503 and UDBE $76300

Does this seem like a good way to spend the tax payer money I do not see how we are tosurvive if the goals get to 21

Thanks

Troy HalbergOffice360-225-7004Cell360-931-3990Fax360-225-7001

On Thu Nov 30 2017 at 1131 AM Bayne Jackie ltBayneJwsdotwagovgt wrote

Good Morning Troy

Thank you for taking the time to provide us with your experiences with the DBE Program TheWashington State Department of Transportation takes the public involvement process veryseriously and your comments will be taken into consideration prior to a final decision regardingthe overall DBE program goal

If I can be of further assistance please let me know

Best Regards

Jackie Bayne

Policy and Reporting Manager

WSDOT Office of Equal Opportunity

Work (360) 705-7084

Cell (360) 338-5783

BayneJwsdotwagov

From Troy Halberg [mailtotroyhnellcnet] Sent Wednesday November 29 2017 144 PMTo WSDOT Disparity Study ltDisparityStudyWSDOTWAGOVgtSubject DBE Goal Comments

If these goals are to be set that high this would make us as a non DBE small contractor at amajor disadvantage With these high of goals this is like handing all of the DBE electricalcontractors every job These general contractors will have no option but to use thembecause of the goals This should not go into effect We have been low on several jobs in thepast and have not gotten them do to the goals being 18 When this goes on it puts all therest of us contractors at a disadvantage Please consider the smaller non DBE contractorsthat are looking to survive as well

Thanks

Troy Halberg

Office360-225-7004

Cell360-931-3990

Fax360-225-7001

From Daniel Seydel IITo Bayne JackieCc Key Earl daneiwashingtonorg Nadeem Ismail Mussie Tewelde (mteweldehydro2geotechcom)

graceflyrightaolcom Mary Wenner Watkinson LarrySubject Re Seydel Dan - WSDOT Disparity Study Presentation Public TestimonyDate Friday December 8 2017 30323 PM

Jackie

It was my hope that the comments would be put into record I was also hoping that you wouldnot have to be the one having to formulate responses for each clarification If that is the caseI know you are swamped and will then I just ask my comments be only part of the recordHowever if there is dedicated staff that is going to be compiling and responding to theclarification then the below questions would be the priorities of most interest

These were questions unrelated to the disparity study and hopefully should be doable

1) Do you have any reports on your outcomes from the past 5 years on DBE support servicesand specific key performance measures from previous years funding (ie how many firmsutilized what was the objectives were objectives met did outcomes meet total satisfaction ifnot why next steps what was the firms capacity before and after services were performed (iesales employees bonding if applicable insurance equipment line of credit if applicablenumbertype of customers how are they doing now etc))

2) What other changes or improvements other than allowing DBES to select their own serviceproviders and a staff change will be a part of this new program

3) Was consideration to provide the new mentor protege consultant rather than separating theactivities into support services andor technical assistance

Disparity study clarifications

1) Will WSDOT consider sponsoring legislation to support the policy changes and goalincreases to insure manditory goals wont be necessary

a) If not what measures will you grant primes to operate outside the box (ie entertain bestvalue over low bid modify responsiveness by subs to require adherence to meeting voluntarygoals developing standards around federally funded gccm and other low bid procurementsthat give powers to primes to meet objectives including but not limited to mentor protegerelationships joint ventures bond waiving techniques cash flow assistance material andequipment acquisition manufacturer development specifications that have only DBES orinclude equal number of DBES as non DBES as approved installers etc)

2) Will the disparity study consultant be available for implementation or information gatheringfrom other regions

5) Will WSDOT be hiring more diverse staff amp professionaltechnical service providers inother departments outside OEO to insure policies commitments and evaluations areperformed in manner that improves diversity that reflects the communities WSDOT serves bythoughtful and legal efforts increase participation thus creating successful outcomes includingpartnerships and collaborations

Thank you and Merry Christmas

Hi Dan

Thank you for providing such thoughtful public comments questions and testimony

Regarding your public testimony below - I do not believe I am not able to answer questions ifthey are public comments Please let me know what part of this email you would likeclarification on and what part you would like considered public testimony

I appreciate your thoughtful consideration of WSDOTrsquos implementation of our civil rightsprograms

Best Regards

Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

DIDaniel Seydel IIFyi Daniel J Seydel II Platinum Group LLC 2064060844 f) 2062999934wwwplatinumbusinessgroupcom Small Business is the Answer FREE TRAINING FORENTREPRENEURS amp JOB SEEKERS - Polish your skills or make your firm standout thanksto the EntrepreneurialThu 233pDI

Daniel Seydel IIThu 1272017 1123 AMInbox Sent ItemsShow all 7 recipientsTobaynejwsdotwagov ltBayneJwsdotwagovgtJackie

Per your request below are my questions and comments some of which were verbally sharedyesterday

Congratulations on receiving the blessing of additional technical assistance dollars andcompleting the DBE Disparity Study per your report

1) Do you have any reports on your outcomes from the past 5 years on DBE support servicesand specific key performance measures from previous years funding (ie how many firmsutilized what was the objectives were objectives met did outcomes meet total satisfaction ifnot why next steps what was the firms capacity before and after services were performed (ie

sales employees bonding if applicable insurance equipment line of credit if applicablenumbertype of customers how are they doing now etc))

2) What other changes or improvements other than allowing DBES to select their own serviceproviders and a staff change will be a part of this new program

3) Was consideration to provide the new mentor protege consultant rather than separating theactivities into support services andor technical assistance

Disparity study clarifications andor comments

1) Will WSDOT consider sponsoring legislation to support the policy changes and goalincreases to insure manditory goals wont be necessary

a) If not what measures will you grant primes to operate outside the box (ie entertain bestvalue over low bid modify responsiveness by subs to require adherence to meeting voluntarygoals developing standards around federally funded gccm and other low bid procurementsthat give powers to primes to meet objectives including but not limited to mentor protegerelationships joint ventures bond waiving techniques cash flow assistance material andequipment acquisition manufacturer development specifications that have only DBES orinclude equal number of DBES as non DBES as approved installers etc)

2) Will the disparity study consultant be available for implementation or information gatheringfrom other regions

3) What lessons did WSDOT learn that it did not know from the other study(s)

4) What would WSDOT do different (ie scope time line process approach etc)

5) Will WSDOT be hiring more diverse staff amp professionaltechnical service providers inother departments outside OEO to insure policies commitments and evaluations areperformed in manner that improves diversity that reflects the communities WSDOT serves bythoughtful and legal efforts increase participation thus creating successful outcomes includingpartnerships and collaborations

Daniel J Seydel IIPlatinum Group LLC 2064060844f) 2062999934wwwplatinumbusinessgroupcom

Small Business is the Answer

FREE TRAINING FOR ENTREPRENEURS amp JOB SEEKERS - Polish your skills or makeyour firm standout thanks to the Entrepreneurial Institute of Washington

httpswwwyoutubecomchannelUCKL5YeVxL29HnNxqnb6hmXA

LIKE US on FaceBook if an Active Professional Development workshop provided by EIW

Construction University helps your firm or has benefited you

httpswwwfacebookcomEIWashingtonref=hl

From Bayne Jackie ltBayneJwsdotwagovgtSent Friday December 8 2017 10139 PMTo Daniel Seydel IICc Key Earl daneiwashingtonorg Nadeem Ismail Mussie Tewelde(mteweldehydro2geotechcom) graceflyrightaolcom Mary Wenner Watkinson LarrySubject RE Seydel Dan - WSDOT Disparity Study Presentation Public Testimony Hi Dan Thank you for providing such thoughtful public comments questions and testimony Regarding your public testimony below - I do not believe I am not able to answer questions if theyare public comments Please let me know what part of this email you would like clarification on andwhat part you would like considered public testimony I appreciate your thoughtful consideration of WSDOTrsquos implementation of our civil rights programs Best Regards Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov From Daniel Seydel II [mailtodanplatinumbusinessgroupcom] Sent Thursday December 7 2017 1123 AMTo Bayne Jackie ltBayneJwsdotwagovgtCc Key Earl ltKeyEwsdotwagovgt daneiwashingtonorg Nadeem Ismailltnipaintingearthlinknetgt Mussie Tewelde (mteweldehydro2geotechcom)ltmteweldehydro2geotechcomgt graceflyrightaolcom Mary Wennerltmwenn0108yahoocomgtSubject Seydel Dan - WSDOT Disparity Study Presentation Public Testimony Jackie

Per your request below are my questions and comments some of which were verbally sharedyesterday

Congratulations on receiving the blessing of additional technical assistance dollars andcompleting the DBE Disparity Study per your report

1) Do you have any reports on your outcomes from the past 5 years on DBE support servicesand specific key performance measures from previous years funding (ie how many firmsutilized what was the objectives were objectives met did outcomes meet total satisfaction ifnot why next steps what was the firms capacity before and after services were performed (iesales employees bonding if applicable insurance equipment line of credit if applicablenumbertype of customers how are they doing now etc))

2) What other changes or improvements other than allowing DBES to select their own serviceproviders and a staff change will be a part of this new program

3) Was consideration to provide the new mentor protege consultant rather than separating theactivities into support services andor technical assistance

Disparity study clarifications andor comments

1) Will WSDOT consider sponsoring legislation to support the policy changes and goalincreases to insure manditory goals wont be necessary

a) If not what measures will you grant primes to operate outside the box (ie entertain bestvalue over low bid modify responsiveness by subs to require adherence to meeting voluntarygoals developing standards around federally funded gccm and other low bid procurementsthat give powers to primes to meet objectives including but not limited to mentor protegerelationships joint ventures bond waiving techniques cash flow assistance material andequipment acquisition manufacturer development specifications that have only DBES orinclude equal number of DBES as non DBES as approved installers etc)

2) Will the disparity study consultant be available for implementation or information gatheringfrom other regions

3) What lessons did WSDOT learn that it did not know from the other study(s)

4) What would WSDOT do different (ie scope time line process approach etc)

5) Will WSDOT be hiring more diverse staff amp professionaltechnical service providers inother departments outside OEO to insure policies commitments and evaluations areperformed in manner that improves diversity that reflects the communities WSDOT serves bythoughtful and legal efforts increase participation thus creating successful outcomes includingpartnerships and collaborations

Thank you for your hard work

Daniel J Seydel IIPlatinum Group LLC2064060844f) 2062999934wwwplatinumbusinessgroupcom

Small Business is the Answer

FREE TRAINING FOR ENTREPRENEURS amp JOB SEEKERS - Polish your skills or makeyour firm standout thanks to the Entrepreneurial Institute of Washington

httpswwwyoutubecomchannelUCKL5YeVxL29HnNxqnb6hmXA

LIKE US on FaceBook if an Active Professional Development workshop provided by EIWConstruction University helps your firm or has benefited you

httpswwwfacebookcomEIWashingtonref=hl

From Erin EhlingerTo Bayne JackieSubject Support for WSDOTs proposed DBE goalDate Wednesday December 13 2017 115417 AM

I am writing to support the WSDOT recommended DBE Goal for FHWA contracts of 190 I also want to express my appreciation for the thoroughness of the WSDOT Disparity study and howthe study disclosed the disparity in WSDOT contracts that do not have a DBE or WBE goal ndash furtherreinforcing that all women-owned firms and minority owned firms face equity issues I remain concerned with the methodology required by the Code of Federal Regulations and case lawbecause of the dependence on the availability of firms in the calculation An unintendedconsequence of removing either gender or race from the goal is that many of these firms would goout of business the availability decreases and the formula then results in a smaller DBE goal Pleaselet me know how I can help influence a change to the CFR Thank you Erin Ehlinger

Erin Ehlinger PEPresident

24036 SE 47th StSammamish WA 98029erinehlingersmartcitytrafficcom425-221-0320

From Jackie EtterTo WSDOT Disparity StudySubject Why we need mandatory goalsDate Friday December 1 2017 61859 PM

As a DBE participating in bidding process I have found that regardless of the language which claims to insurethat disadvantaged business enterprises shall not be discriminated against the only way to ensure that this does nothappen is by mandating affirmative action goals Having been overlooked time and time again because of my gender when I have submitted bids that are verycompetitive with other bidders is very frustrating I have had many instances of companies using my price to getmy non DBE competitors to lower theirs The voluntary or laudatory DBE goals do nothing to ensure a level playing fieldThe only way to ensure non-discrimination is through mandatory goals

Jackie EtterWest Star Construction of Spokane

Sent from my iPhone

From Claudia HirscheyTo Key Earl Bayne JackieSubject WSDOT DBE Goal - Comment in supportDate Tuesday December 12 2017 61937 PM

Dear Earl and Jackie The WSDOT recommended DBE Goal for FHWA contracts of 190 is a small and important increasethat can further achieve equity in WSDOTFHWA contracting I am in support of the 19 DBE Goal I also want to express my appreciation for the thoroughness of the WSDOT Disparity study and howthe study disclosed the disparity in WSDOT contracts that do not have a DBE or WBE goal ndash furtherreinforcing that all women-owned firms and minority owned firms face equity issues I remain concerned with the methodology required by the Code of Federal Regulations and case lawbecause of the dependence on the availability of firms in the calculation An unintendedconsequence of removing either gender or race from the goal is that many of these firms would goout of business the availability decreases and the formula then results in a smaller DBE goal Sincerely Claudia S Hirschey PETransportation Consulting Servicesclaudiahirscheycomcastnethttphirscheytcscom2068564988 Mobile

From Nate ThomasTo WSDOT Disparity StudySubject WSDOT Proposes DBE goal of 19Date Thursday December 7 2017 42720 PM

The WSDOT should look into similar ways the Federal Gov has handled the equal opportunity forthose that fall under the DBE status and set aside specific projects for the DBErsquos and moreimportantly UDBErsquos so these companies have better chance of landing contracts Maybe a lot 10 ofthe DBE goal to set aside for only DBEs and other 9 goal met as it is done currently with COA onlarger contracts Nate ThomasSenior EstimatorD 5095688085 | C 5099941156331 North Fancher Road | Spokane WA | 99212

The information contained in this email including any attachments is confidential and may beprivileged It is intended only for the person or entity to which it is addressed and no waiver isintended by sending this email If the reader is not the intended recipient you are herebynotified that any review retransmission dissemination or other use of or taking any action inreliance upon this information is strictly prohibited If you have received this email in errorkindly notify the sender by reply email and delete the original message from any computerThank You

From Brian FujiiTo WSDOT Disparity StudySubject WSDOT propsed DBE GoalsDate Thursday December 7 2017 110638 AM

Good morning Jackie

I wanted to comment on WSDOTs proposed DBE goal to 19 I believe WSDOTs plan toincrease the overall DBE goal to 19 will provide greater opportunities for DBE contractorsin different disciplines to participate in federally funded contracts

Without the new DBE requirement and with Proposition 200 there are limited opportunitiesfor DBE contractors in disciplines different than the typical trucking flagging and rebar Inaddition there are no incentives for general contractors to go out beyond the usual truckingflagging and rebar DBE subcontractors

Increasing the DBE goals will provide opportunities for different DBE contractors in differentdisciplines to participate in WSDOT federally funded projects

Thank you for your time

RespectfullyBrian FujiiPresident Subsurface ConstructionP 2063836478F 2069604639MDBE 4M0024998

From Forman StephanieTo Bayne JackieCc Millar Roger christinenhanmailhousegov Claudia Hirschey Sarah Corbin Jiang Yingle

efaulknerenviroissuescom Diana Giraldo Kelly CheesemanSubject WTS - Disparity Study Comment LetterDate Friday December 15 2017 71020 PMAttachments 2017_Dec 15_WTSCommentLetter_WSDOT DBE Goalpdf

Dear Ms Bayne Please find our attached letter which summarizes the WTS Puget Sound Chapterrsquos support foradvancement of women in transportation and our comment letter regarding the recent DisparityStudy Please feel free to contact me if you have any questions or would like to discuss Sincerely Stephanie S Forman PEWTS Puget Sound President Transportation Project Manager

929 108th Avenue NE Suite 1300Bellevue WA 98004D 4254681548 M 2062291745stephanieformanhdrinccom

December 15 2017

Jackie Bayne Policy and Reporting Manager

Office of Equal Opportunity

Washington State Department of Transportation

PO Box 47314

Olympia WA 98504-7314

Dear Ms Bayne

On behalf of the Puget Sound Chapter of Womenrsquos Transportation Seminar (WTS) we would

like to thank the Washington State Department of Transportation for presenting to our

organization the DBE Disparity Study results We very much appreciated the presentation by Earl

Key Director of WSDOTrsquos Office of Equal Opportunity Teresa Berntsen (Director Office of Minority

and Womens Business Enterprises) as well as Leslie Jones (Director Sound Transit Office of Small

Business Development and Labor Compliance)

Following a review of the WSDOT Disparity Study and as a result of consultation with WTS

International we would like to provide WSDOT with our comments for your consideration

As you know WTS is an organization focused exclusively on attracting retaining and advancing

women in transportation By the year 2018 there will be thousands of vacancies in the

transportation industry for qualified professionals and while women account for more than half of

the worldrsquos workforce they are a very small minority in transportation disciplines

We are pleased that the outcome of the 2017 Disparity Study that recognizes the on-going barriers

for DBEs including women-owned businesses in transportation The WSDOT recommended DBE

Goal of 190 is a small and important increase that can further achieve equity in WSDOTFHWA

contracting We are also pleased that the 2017 Disparity Study has documented the disparity in

WSDOT contracts that do not have a DBE or WBE goal ndash further reinforcing that all women-owned

firms and minority owned firms face equity issues We are encouraged that the WSDOT has asked

FHWA to rescind the 2016 waiver

While WTSrsquo mission is specific to the advancement of women we are a race-neutral organization To

this end we are also deeply concerned about the underutilization of minority owned firms There is

no equity or ldquofair playing fieldrdquo without equity for all gender and races We remained concerned with

the methodology required by the Code of Federal Regulations and case law because of the

dependence on the availability of firms in the calculation An unintended consequence of removing

either gender or race from the goal is that many of these firms would go out of business the

availability decreases and the formula then results in a smaller DBE goal This consequence is

contrary to our mission

We look forward to our continued participation in WSDOTrsquos DBE advisory group we are anticipating

notice that the 2016 waiver has been rescinded and how we can work together to continue

advancing minority and women-owned firms in the transportation field

Sincerely

WTS Puget Sound Chapter

Stephanie Forman

President

C Roger Millar Secretary WSDOT

C Representative Adam Smith 9th Congressional District Washington co Christine Nhan

WTS Puget Sound Chapter

PO Box 3461

Bellevue Washington 98009

From Dave Gent - WAPATo Bayne JackieCc Tom GaetzSubject WAPA Public Comments - RE WSDOT FHWA Disadvantaged Business Enterprise Proposed GoalDate Friday December 15 2017 14119 PMAttachments 12152017 DBE Proposed Goal - WAPA Public Comments Letterpdf

Good afternoon Jackie Please find attached WAPArsquos ldquofor the public recordrdquo comments with respect to WSDOTrsquos proposedDBE Goals FHWA funded work I assume that the Master DBE Directory was not sent to you this week so as a result we were notable to review the directory before the close of the public comment period That fact is noted withinour comment letter Thank you for your efforts Have a good weekend

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Friday December 8 2017 1219 PMTo Dave Gent - WAPA ltdavegentasphaltwacomgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hello Dave WSDOT did not take possession of this directory as part of our review process We will provide youwith the records without submitting a formal request However we need to get them from theconsultant first I will hopefully have them to provide next week I will keep you updated on therequest Have a nice weekend Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal Opportunity

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

December 15 2017

Jackie Bayne Policy Manager WSDOT Office of Equal Opportunity Delivered via e-mail to BayneJwsdotwagov RE Public Comment (as requested) to Proposed Overall DBE Goal for the FHWA (2018 ndash 2020) Ms Bayne Thank you for your presentation via webinar on December 5 2017 outlining WSDOTrsquos evaluation process used to determine the proposed overall DBE goal for the FHWA Thank you also for the Colette Holt amp Associates (CHA) DBE Advisory Group presentation made on September 14 2017 Both presentations helped to distill the findings of the 2017 Disparity Study produced by CHA In response to Earl Keyrsquos initial informal request to comment on the proposed overall DBE goal made during the DBE Advisory Committee teleconference held on October 12th we provided a list of reasons that we believe justify a lower DBE goal than is now being proposed Our initial response to Mr Keyrsquos request did not serve to influence WSDOT and the current proposed goal remains at 190 The arguments provided on October 12th against the significant increase in the proposed DBE goal (versus the previous goal and recent historic DBE participation) are repeated and supplemented below and will serve as the Asphalt Pavement Associationrsquos (WAPArsquos) official public comments

In concert with WSDOT and the OWMBE WAPA and the construction firms that WAPA represents have demonstrated a commitment to the principals of equal opportunity for all ldquoready willing and ablerdquo firms for the entire history that our DBE program has been in place WAPA has continuously demonstrated its commitment to the goals of the DBE program and for increasing the representation of disadvantaged groups within our industry as both workers and owners of firms Please recognize that WAPArsquos oversight and critique of the DBE program has always attempted to balance the principals of fair and open competition with the practical aspects of the low bid compressed schedule high performance standards demanded within the WSDOT marketplace Our comments below are meant to enhance WSDOTrsquos and OWMBErsquos understanding of the market and to hopefully have WSDOT fully consider all of the dynamics that are at play when proposing its Triennial DBE goal for FHWA projects Current DBE Capacity vs Historically Robust Market In advocating for a realistic and defensible DBE goal it has always been WAPArsquos position that it is paramount that the realities of the marketplace and true certified DBE subcontracting capacity should be a primary standard While a ldquostretchrdquo goal may appear to be progressive on its face it comes with consequences for all of the parties involved in the WSDOT federal aid contracting arena To balance the dynamics of the WSDOT contracting system the DBE goal should be tempered with the realities of the market and with a true measure of the underlying effectiveness of the DBE support services available to contractors

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 2 of 6 The first point of fact that has not been given any apparent consideration by WSDOT in its evaluation of the current capacity of certified DBErsquos is that there is an historically robust workload scheduled to be performed in the 2017 through 2022 time-frame particularly in the Puget Sound ldquoEverett to Olympiardquo corridor By WSDOTrsquos own estimates (see Attachment A) public works construction project starts in the 2018 to 2022 time-frame in this region will exceed $333 billion (B) counting the work projected from just five public entities WSDOT will be taking a decidedly ldquoback seatrdquo role during this period to Sound Transit which will have construction project starts of $226B vs WSDOTrsquos projected volume of $67B WSDOTrsquos summary publication titled Washington State Department of Transportations Proposed Federal Highway Administration Triennium Disadvantaged Business Enterprise Goal Federal Fiscal Years 2018-2020 states correctly that ldquoIncluded among the types of evidence that must be considered are the current capacity of DBEs to perform work on WSDOTrsquos federally-assisted contracts as measured by the volume of work DBEs have performed in recent yearshelliprdquo (Step Two Adjustment discussion) With the Sound Transit program being over 300 larger than the total WSDOT program in this region a sober assessment of true certified DBE capacity in the next three years needs to be considered by WSDOT If the huge construction boom over the next five years does not prompt a Step Two Adjustment then it becomes obvious that the realities of the market are being ignored by WSDOT for DBE goal setting Put another way if the 2018 through 2022 level of contracting activity does not warrant a goal adjustment what will DBE Access Barriers Not Yet Addressed The CHA 2017 Disparity Study points out multiple recommendations in Section VII that impact DBE participation and access to the market Assessments relating to those impacts and the state of maturity in addressing the CHA recommendations should be considered when assessing the DBE goal Many of the CHA recommendation have not been adequately addressed at this point in time Some of the prime examples are listed below Increase Certification and Expertise ndash The Disparity Study as explained to us includes all minority- (MBE)

and women-owned (WBE) firms that could be readily identified that perform work within Washington State and that perform work within the NAICS code framework CHA developed to cover WSDOT project work During the various presentations relating to the Disparity Study WSDOT representatives said that outreach to currently non-certified MBE amp WBE firms has increased and that WSDOT aspires to bolster its list of certified firms in the future but this effort is just beginning and the success of the effort needs to be means tested against the broader population of MBE amp WBE firms included in the CHA base line evaluation As the Disparity Study uses a much broader population of MBE WBE contractors to arrive at its conclusions (both non-certified firms and firms too large for certification) it follows that the calculated DBE proposed goal is overstated to include capacity that does not currently exist within WSDOTrsquos certified DBE framework Unless OMWBE is experiencing sudden and unprecedented success in recruiting new MBEWBE firms the DBE goal should be adjusted downward to recognize that the ldquoready willing and ablerdquo contractors that WSDOT has certified is only a subset of the total MBEWBE contracting population used in the Disparity Study evaluation

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 3 of 6

Until the promised WSDOT outreach registration efforts result in a substantial increase in available certified DBE firms it is premature to count the entire population of minority- and women-owned contractors as available to participate in WSDOT contracting It is unreasonable for WSDOT to project availability capacity using the entire MBEWBE population when only its currently truncated list of certified firms is acceptable to count toward the DBE goal

A corollary to the Increase Certification and Expertise discussion above is that the calculation of the Base Figure evidently includes the broadest practical population of MBE and WBE firms identifiable (without a review of the CHA Master DBE Directory which has not been supplied prior to the close of the public comment period the scope of the directory cannot be ascertained) If this directory includes a large population of MBEWBE firms that are not certified or are too large to be certified then the Base Figure calculation should be adjusted to reflect that certified DBE firms are a fraction of the total MBEWBE firms used to arrive at the 19 suggested DBE goal With respect to the CHA Master Directory it is our understanding the WSDOT was not given the directory as part of its evaluation of the Disparity Study and it follows that it did not evaluate the proposed DBE goal in the context of the CHA Master DBE Directory In our opinion an informed decision on adjusting the CHA baseline goal calculation can only be done after an extensive evaluation of the CHA Master DBE Directory If this has not been done WSDOT has not exercised due diligence in evaluating the context and underpinnings of the CHA Disparity Study and a certified DBE Triennium goal proposal to the FHWA is premature Increase Contract ldquoUnbundlingrdquo ndash If this proposed strategy (suggested by the CHA Study) is undertaken

certified DBE Subcontractors currently available will be engaged as Prime Contractors and the value of their prime contracts will bolster the overall percentage of certified DBE contracting but a systematic effort and strategy to ldquounbundlerdquo has not been articulated by WSDOT The key question of how this effort can be accomplished without increased cost to the taxpayers and increased inconvenience for the traveling public As noted in the CHA study (page 129 final paragraph) ldquoUnbundling must be conducted however within the constraints of the need to ensure efficiency and limit cost to the taxpayersrdquo As of this writing no overarching strategy for further unbundling with proper accountability has been articulated by WSDOT to the DBE Advisory Group

Review Insurance and Experience Requirements ndash Impediments to certified DBE participation due to

necessary insurance and experience standards cannot be solved by the prime contracting community Unless and until WSDOT puts together programs to address the burden of the substantial risks shouldered by Prime Contractors on WSDOT contracts barriers for streamlined utilization of certified DBE firms will continue to exist These market driven barriers will continue to dampen the availability of certified DBE Subcontractors that are able to perform within WSDOTrsquos strict criteria without unduly transferring risk to the Prime Contractor

Better Partnering to Overcome DBE Failures to Perform ndash Prime Contractors are held fully responsible to maintain the project schedule and are subject to project liquidated damages even when they may be struggling to deal with Subcontractor performance issues It is well-established that replacing a certified ldquocondition of awardrdquo (COA) DBE Subcontractor is very onerous and likely very costly to the Prime Contractor Unfortunately the imposition of strict and often counter-productive commercially useful function (CUF) rules often compound this issue as Prime Contractors cannot help COA DBE Subcontractors work through capacity expertise or time-related issues that impact timely performance

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 4 of 6

WSDOT needs to be a much better partner in the process of dealing with under-performing or non-performing certified DBE Subcontractors The current standard operational procedure places all of the exposure for non-performance onto the Prime WSDOT does not have an equitable system to account for non-performing or under-performing certified DBE Subcontractors hired as a condition of award (COA)

Performance Information and Training ndash Commercially useful function rules (CUF) and the lack of clear benchmark definitions for good faith effort (GFE) standards remain barriers for improving accountability within the DBE system and in turn lead to distorted DBE participation rates These items remain amorphous due to lack of training or lack of historic information Chronic uncertainty exists regarding both of these items Until WSDOT changes and improves its approach to provide transparency and certainty for both the prime bidding amp subcontracting parties true certified DBE capacity will continue to be masked and the resultant higher subcontracting costs associated with a distorted marketplace will continue to be hidden

WAPA respectfully suggests that simply adding an ldquoEstimated DBE Subcontract Premiumrdquo line to the current DBE bid forms would help to establish benchmarks that could begin to be used to ldquomeans testrdquo good faith efforts If this information had been gathered over the last 20 years of the DBE program meaningful GFE standards could have been developed and could be in place today

An in-depth review of CUF standards would also provide clarity For instance it is unclear why force account items performed by certified DBEs are currently counted at only 50 of the value of the work How was this benchmark established Has it been reviewed since imposed Did it ldquosolverdquo whatever inequity WSDOT was trying to address Better clarity may lead to more expanded opportunities for certified DBE Subcontractors

Enhanced Supportive Services and Business Development Programs ndash Unless and until stronger programs of these types are shown to be effective in boosting certified DBE business development increased DBE participation due to stronger business acumen should not be relied upon when setting the new DBE goal

Does OMWBE have a reasonable expectation that future plans for enhanced and expanded programs will be more successful than those employed in the past Assuming that certified DBE Subcontractors will be better prepared to deal with the WSDOT contracting environment than in the past should not be relied upon to boost DBE participation goals Especially troubling were the multiple references within the CHA report highlighting that DBEs believe that the staff at OMWBE lack a deep knowledge about the highway construction industry (eg Study page 129 2nd paragraph) Does OMWBE have a path forward that will address this issue and thus improve supportive services impacts

Develop a Bonding and Financing Program for SBEs ndash This is completely outside of the prime contracting

communityrsquos scope of influence WSDOT must find a way to institute changes that both protect the taxpayer and help increase certified DBE bonding capacity and access to financing ndash very large hurtles To assume that these hurtles can effectively be overcome within the 2018 ndash 2020 time frame when they have been chromic issues for the past 20 plus years of DBE program development is not rational

A helpful innovation would be for WSDOT to underwrite performance and payment bonds for certified DBE firms or to create promote a system that helps certified DBE firms obtain private bonding Bridging the gap to address capital access and performance risks (bonding) must be championed by WSDOT

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 5 of 6

Base Figure Adjustment to Address Available Subcontract Volume and DBE Prime Contracts It is a fact that mid- to large-sized MBEWBE firms that compete both as Prime Contractors and as Subcontractors are not eligible to be OMWBE certified DBEs Further the current amount of contract unbundling for greater DBE access to WSDOT prime contracting (see below) accounts for a very low dollar volume of prime contracts performed by certified DBEs Finally by specification (WSDOT standard specification 1-081) Prime Contractors are obligated to perform 30 of the total volume of the work (less specialty work) or stated another way a maximum of 70 of the dollar volume on WSDOT projects is typically available to award to subcontractors These market dynamics are NOT addressed in the Disparity Study A responsible DBE goal made absent of these facts should not be implemented A reasonable adjustment to the proposed 19 DBE goal is presented below

bull The percent of WSDOT prime contracts awarded to certified DBE firms is likely less than 5 by total WSDOT

contract volume Assuming this approximation is valid (likely very conservative) then the amount of WSDOT contract work available to certified DBE firms via subcontracting should be adjusted to account for the factors outlined above The Base Figure (19) should be adjusted to recognize that a 70 maximum subcontractor participation is available (in the numerator) and to account for the assumed 5 certified DBE prime contracts in the denominator Reasonable Base Figure Adjustment 19 (proposed) x 70 subcontracts available divide 95 of Non-Certified DBEs as Prime Contract Volume = 190 x 0737 = 140 adjusted goal This is an adjustment based on the practical dynamics of the WSDOT contracting system and it represents a more realistic look at the true subcontract volume that is available for Prime Contractors to award to certified DBE firms

Conclusions

Until the items listed above are addressed and in place it is not reasonable to believe that DBE goals can be increased by nearly 163 (from 117 to 190) When the projected robust public works contracting market is appropriately considered the true availability of certified DBE Subcontractors for WSDOT contracts will be truncated due to demand across all public works sectors With multiple strong public works programs competing for a limited population of certified DBEs the ability to meet increased WSDOT DBE goals will be severely challenged Without very clear concise and transparent good faith effort rules the ability to address DBE goals that greatly overestimate true near term certified DBE capacity will result in non-attainment bid day chaos failures to perform andor rapidly increased pricing

The clear conclusion is that at this point in time under the current circumstances without effectively instituted new programs rules procedures that could enhance the certified DBE programrsquos overall effectiveness we believe that the DBE goal should remain at or near 12 As OMWBE documents and demonstrates its future successes in improving access and eliminating capacity barriers only then should the DBE goal be re-evaluated and increased

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 6 of 6

In closing please remember that it is rare that the contracting community is asked our opinion with respect to the WSDOTrsquos DBE policies and so this letter is somewhat a vehicle to highlight collective concerns It is our belief that the majority of the Prime Contractors in Washington state support the objective of creating a level playing field for ready willing and able DBEs

If the level playing field is not yet possible in the absence of the DBE program then the key is to set realistic goals that recognize reflect and address the hard realities and market dynamics imposed by WSDOTrsquos bedrock environment of awarding contracts to the lowest cost responsible and responsive Contractor

Respectfully submitted Washington Asphalt Pavement Association

David Gent Tom Gaetz Executive Director Senior Advisor

Attachment A ndash WSDOT Central Puget Sound Public Works Contracting Projection 2018 - 2022

Con

stru

ctio

n Pr

ojec

t Sta

rts

2018

-202

2S

ound

Tra

nsit

$22

6 B

SD

OT

$08

B

Tran

sit

amp O

ther

s$1

7 B

WS

DO

T$6

7 B

Por

t of

Sea

ttle

$15

B

TOTA

L$3

33

B

Source N

ov 1

9 2

017

pres

enta

tion

to W

APA

Ann

ual M

eetin

g

Attachment A

Work (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Dave Gent - WAPA [mailtodavegentasphaltwacom] Sent Thursday December 7 2017 144 PMTo Bayne Jackie ltBayneJwsdotwagovgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hi again Jackie Irsquom fine thanks and hope you are the same Interesting The Master DBE Directory is the basis for and integral to the conclusions of the DisparityStudy Is it not then part of the information needed to fully review and comment on the DisparityStudy Was it not provided by CHA to WSDOT for review We are trying to fully understand thestudy and if this directory was part of the study why would it need to be obtained by a publicrecords disclosure It should be in the public domain and not restricted from ease of access If you are sure that a public records request is needed Irsquoll start that process but we will need tonote that point of fact when we submit our public comments If you are able to reconsider please let me know Respectfully

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Thursday December 7 2017 126 PMTo Dave Gent - WAPA ltdavegentasphaltwacomgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hello Dave I hope you are doing well

That information would likely be obtained through a public disclosure request Best Regards Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Dave Gent - WAPA [mailtodavegentasphaltwacom] Sent Thursday December 7 2017 113 PMTo Bayne Jackie ltBayneJwsdotwagovgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Jackie Can you please provide an electronic file or provide a weblink for the Master DBE Directory thatColette Holt amp Associates developed for the WSDOT Disparity Study 2017 (first referred to on Page 8of the Disparity Study) I did not see a link to this Master DBE Directory within the study Thanks

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Friday October 27 2017 1118 AMTo Kenyon Wendy ltKenyonWwsdotwagovgt Adams E W ltewadamssystemsclcomgtAdekoyaAndrew ltandrewadekoyabccomgt AlyssaBalllegwagov Anindita Mitraltamitracrea-affiliatescomgt APRISeattlehotmailcom Armstrong CharlotteltCharlieAatgwagovgt Ato Apiafi Architects PLLC ltatoaatoapiaficomgt benzfanwaorgBerntsen Teresa (OMWBE) ltTeresaBomwbewagovgt Billingsley Andrealtbillinawsdotwagovgt Bramlet Erica ltEricaBramletlegwagovgt Brooks Julius

ltBrooksJwsdotwagovgt Brown Jason ltjbrownldccorpcomgt bwallacenwlaborersorgCamden Allison ltCamdenAwsdotwagovgt carlllivingstongmailcom Cerda OscarltCerdaOwsdotwagovgt Christopher Chris ltChristCwsdotwagovgt ckerneycaawagovdanplatinumbusinessgroupcom davegentasphaltwacom David BalltDavidsignsnowmillcreekcomgt Davis Khalia ltDavisKhwsdotwagovgt Davis RaShelle (GOVltrashelledavisgovwagovgt Dayton Jo ltDaytonJwsdotwagovgt ddhondtagcwacomDebbieDriverlegwagov Dennis ltdennisahlkiewitcomgt dmcleodnwlaborersorgdrart6651gmailcom Duncan Enid lthigradeincgmailcomgt EltonltEltonwashingtonstatetruckingcomgt eprincecaawagov flemosldccorpcomfmartineznwmtnmsdcorg geoffshookatkncom glovelady ltgloveladyexcelglovescomgtGrabow Katie ltkgrabowsystemsclcomgt Guilfucci Jackie ltJackieGuilfucciskanskacomgt HealyLinda ltHealyLwsdotwagovgt Higginbotham Breanne ltHigginBwsdotwagovgt HirscheyClaudia ltclaudiahirscheycomcastnetgt Holt Colette ltcoletteholtmwbelawcomgt Huff JohnltHuffJwsdotwagovgt Iniguezchawagov JacksonMaynardlegwagov Jimmy Matta(jmattaalcantarassoccom) ltjmattaalcantarassoccomgt kellywickergovwagov Key EarlltKeyEwsdotwagovgt Kirk Jon ltjkirkwhhnfscomgt Kris Purrier ltkpurrierhwageocomgtleewabuildingtradesorg lesliejonessoundtransitorg Liz Evans ltlevansagcwacomgt LopezErin lterinlopezdeswagovgt Martha Cerna ltMarthaPSLCCORGgt Martin-Arnold EdwinaltMartinEwsdotwagovgt Mary Lerdahl ltmarydbeelectricinccomgt McCarty Hannahlthannahmccartylegwagovgt Melissa L Boyles ltmelissaboylesmwbelawcomgt Metcalf KeithltMetcalKwsdotwagovgt michaelicapaawagov Michelle ltMichelleTTCC26netgt MillarRoger ltMillarRwsdotwagovgt Nakamura Jason ltjasonnakamura1-alliancecomgtNavarroLportseattleorg olliepmt-solutionscom pastorbanksesbctacomacom PatrickHughes ltphugheshughesgroupbizgt Petersen Jodi (FHWA) ltJodiPetersendotgovgtrabbottliunaorg rcarmsteadgmailcom ricemportseattleorg Riley D ltdrileylydigcomgtSeling ltSelingjpfranciscomgt sherryharrisergosynchcom Stell MellodyltStellMwsdotwagovgt terigobintulaliptribes-nsngov timwilliamfactorycom tinaterra-tdicom tkellyldccorpcom tomgaetzmsncom vcollinsacec-waorgverlenejazzmsncom Wang Albert ltWangAatgwagovgt Waugh GregltGregWMaxKuneyComgt Yates Henry ltYatesHWSDOTWAGOVgtCc Tom Gaetz lttomgaetzmsncomgt Dave Gent - WAPA ltdavegentasphaltwacomgt VanCollins ltvcollinsacec-waorggt Daniel Seydel II ltdanplatinumbusinessgroupcomgt MaynardJackson ltJacksonMaynardlegwagovgt Carl Livingston ltcarlllivingstongmailcomgt DonMcLeod ltdmcleodnwlaborersorggt JIMMY MATTA ltjimmymattamsncomgt Prince Ed(CAAA) lteprincecaawagovgt David DHondt ltddhondtagcwacomgt Irene Reyesltgloveladyexcelsupplycompanycomgt McDaniel Craig ltMcDaniCwsdotwagovgtsherryharrisergosynchcomSubject WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Good morning On Monday October 30th WSDOT will be releasing the proposed overall Federal HighwayAdministration Disadvantaged Business Enterprise goal attached for public comment throughDecember 15 2017 This overall DBE goal is based upon the recently completely DBE ProgramDisparity Study WSDOT is proposing a 19 percent overall DBE participation goal on Federal Highway

Administration-funded projects for federal fiscal years 2018 through 2020 DBE goals fortransportation projects that receive federal funds represent a percentage of the value of work inwhich minority- and women-owned businesses should participate Once finalized and submitted toFHWA early next year the goal will be effective through Sept 30 2020

The purpose of the DBE program is to create a level playing field for firms owned and operated bydisadvantaged individuals wanting to participate in federally assisted highway transit and aviationprograms The attached overall DBE goal is for FHWA funded projects WSDOT will be updating theFTA and FAA overall DBE goals in the near future

If you have any questions please contact Earl Key Director of the Office of Equal Opportunity at3607057091 or KeyEwsdotwagov Thank you Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

  • Proof-Of-Publicationpdf
    • Mediapdf
      • AGC
      • Daily Journal
      • Daily Medium
      • DBEGood
      • OMWBE
      • Seattle Medium
      • Tabor 100
      • The Chronicle
      • Tukwila
        • King County
          • Public-Comments-20180111pdf
            • 19 DBE Requirement(1)
            • AGC Comments on Proposed 10 Goad
            • Backstrom Curb amp Sidewalk
            • comments on WSDOT proposed DBE goal
            • Cowlitz County Public Works
            • DBE Contracting goals
            • DBE Goal
            • DBE Program Disparity Study
            • Disparity Study Comments from City of Spokane
            • FW_ WSDOT News - WSDOT seeks comments on propos
            • Proposed DBE Goals
            • RE_ DBE Contracting Goal Comments
            • Re_ DBE Goal Comments
            • Re_ Seydel Dan - WSDOT Disparity Study Present
            • Support for WSDOTs proposed DBE goal
            • Why we need mandatory goals
            • WSDOT DBE Goal - Comment in support
            • WSDOT Proposes DBE goal of 19
            • WSDOT propsed DBE Goals
            • WTS - Disparity Study Comment Letter

VI complaint procedures andor information regarding our non-discrimination obligations please contactOEOrsquos Title VI Coordinator at 360-705-7090 To unsubscribe to WSDOT media releases please reply and type REMOVE in the subject line

This e-mail and related attachments and any response may be subject to public disclosure under state law

From Cochrane EmilieTo WSDOT Disparity StudyCc Eugenis Susan Cowlitz Co Public Works - Brad BastinSubject Proposed DBE GoalsDate Thursday December 14 2017 85006 AMAttachments image002png

DBE Goals - Commentspdf

Please see the attached letter with comments regarding the proposed DBE Goals Ahard copy will be sent out today

Thanks

Emilie CochraneCowlitz County Public Works1600 ndash 13th Avenue SKelso WA 98626360-577-3030 ext 6523

From Michelle WolcottTo Bayne JackieCc Robideau Christopher LSubject RE DBE Contracting Goal CommentsDate Tuesday November 7 2017 65448 AMAttachments image001png

Thank you JackieWhat a relief to know that we have been heard and are not the only small business facing thisstruggle Your email is comforting

Yes you can provide us with additional assistanceLet me introduce my boss and Senior Vice President of Red Plains Professional Chris Robideau

Chris will be your contact from here since I will be leaving the company November 17th As a WA DBE we are ldquoeligible for limited DBE Support Services (SS) funding when funds becomeavailablerdquo When will this happen And are we registered or on a list to receive fundingIs the WSDOT ICR Training a prerequisite for the funding Or just helpful knowledge

Thank you for your time Jackie I will follow through with the training

Michelle Wolcott EIT Quality Control Engineer

2103 NE 129th Street Suite 201 Vancouver WA 98686 Office (360) 448-7999 Fax (360) 258-0274

wwwred-plainscom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Monday November 6 2017 332 PMTo Michelle Wolcott ltMichelleWolcottred-plainscomgtSubject RE DBE Contracting Goal Comments

Hi Michelle

Thank you for your interest in doing business with WSDOT I apologize for the lack of informationyou have come up against in your attempts to attain access to WSDOT ICR program

As you may well know WSDOT has recently completed a state wide agency specific diversity studyAnecdotal comments submitted with the study concur with your experience Not only did somerespondents find it difficult to become prequalified they also commented that the required indirectrate of 110 percent is too low to be profitable These requirements are currently under advisementby WSDOT and new DBE program requirements are currently in the process of seeking public input

As you are an OMWBE certified DBE in Washington State you will be eligible for limited DBE SupportServices (SS) funding when these funds become available At that time funds may become availableto assist you in your struggle to attain ICR eligibility Here is a link to WSDOTrsquos Indirect Cost RateTraining httpswwwwsdotwagovAuditICRTraininghtm If you would like me to find additionaltraining or information please let me know

If I can provide additional assistance of information please let me know

Best Regards

Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Michelle Wolcott [mailtoMichelleWolcottred-plainscom] Sent Tuesday October 31 2017 835 AMTo WSDOT Disparity Study ltDisparityStudyWSDOTWAGOVgtSubject DBE Contracting Goal Comments

HelloI have been in contact with WSDOT for 6 months sharing my disparaging story of beinga small DBE unable to submit SOQs for projects requiring a WSDOT Audited IndirectCost Rate Approval We do not have an in-house accountant and our outsideaccountant has explained to get all the paperwork together for WSDOT would take 40hours of work $9000 annually We cannot justify this cost to submit on a project thatwe may not acquire We have been directed to seek financial assistance from WSDOT Federal SBA andWashington State Office for Women and Minority Owned Enterprises all of whichprovided negative responses

As a DBE business in 11 states we are supporting the 19 incentive for federallyfunded contracts but we are frustrated in the fact that we will not be one of the luckyfew to participateWe have been in business 20 years From our Vancouver Washington office our clientsare the Native American tribes across the country with all contracts federally funded This summer alone the WSDOT ICR Approval has squashed our ability to submit on twoprojects that we were perfectly qualified to performI have attached previous emails to show a sample of who I have been dealing with

Thank you

Michelle Wolcott EIT Quality Control Engineer

ltimage001pnggt

2103 NE 129th Street Suite 201 Vancouver WA 98686 Office (360) 448-7999 Fax (360) 258-0274 wwwred-plainscom

From Michelle Wolcott Sent Monday July 10 2017 954 AMTo Harvey Schatzie ltHarveySwsdotwagovgtSubject RE WSDOT Indirect Cost Rate Process

Good Morning Schatzie

This is Michelle Wolcott from Red We spoke Friday June 30th about the ICRprocess and you were very encouraging I relayed the information to my boss who ishere in Vancouver then he shared with the president bookkeeper and our accountantin Oklahoma We had FAR compliance with Oklahoma DOT in 2015 so we are noteligible for the Safe Harbor Program Our account said our timekeeping system doesnot breakdown the hours and pay in the format WSDOT wants to have it presented andto get the documents in order would take the CPA and an assistant $9000 in paidhours of work It turns out this would have to be annually The other option is to hirean outside CPA firm to do the audit for us at $20000 annually

Our president said in the past we received funding assistance from the Stateof Oklahoma to get our ICR approval Does WSDOT offer any financial assistance for small businesses to reach compliance We are also a DBE in WA I have requested the same information from WA PTAC at theVancouver Chamber of Commerce and from WA Office of Minority and Women OwnedBusiness Enterprises and they both said there was nothing but suggested to askWSDOTThank you for your helpMichelle Wolcott EIT

Hello Michelle sorry but I am not aware of any grants But I was looking at this andthere is a POC at the bottom you may try to discuss the audit issuesHollyHolly BoehmeBusiness Opportunity Specialist | 8(a) Business Development ProgramUS Small Business Administration bull Seattle District Office

Hello Michelle -

Thank you for your email Im not aware of any funding available for thispurpose but do agree its quite a bit for a DBE firm to have as an expense Mostof the firms I work with do a lot more work on the Oregon side so perhaps thereare programs available that I just havent heard of Im copying my colleagueHoly Boehme in our Seattle District Office to see if they are aware of any suchassistance

Holly might there be some small business incubators or other resources availablein WA to help a small firm with the expense of getting a WSDOT AuditedIndirect Cost Rate approval Please reply all with anything you may have

Thank you

Yuri Yoshida Dyson Business Opportunity SpecialistUS SMALL BUSINESS ADMINISTRATION Portland District OfficePhone 503-326-6692 Fax 202-292-3872 wwwsbagovor

From Troy HalbergTo Bayne JackieSubject Re DBE Goal CommentsDate Wednesday December 13 2017 35533 PM

JackieToday was another example of why the goals should not be raised There were 2 jobs which Iwas low on and did not get due to the high goals This is exactly what will happen when thegoals get raised The first job was the 9180 Anacortes Ferry Paving Northeast Electric $244924 and UDBE $318000 Second job was the 9172 SR 9 East Junction Job Northeast Electric $68503 and UDBE $76300

Does this seem like a good way to spend the tax payer money I do not see how we are tosurvive if the goals get to 21

Thanks

Troy HalbergOffice360-225-7004Cell360-931-3990Fax360-225-7001

On Thu Nov 30 2017 at 1131 AM Bayne Jackie ltBayneJwsdotwagovgt wrote

Good Morning Troy

Thank you for taking the time to provide us with your experiences with the DBE Program TheWashington State Department of Transportation takes the public involvement process veryseriously and your comments will be taken into consideration prior to a final decision regardingthe overall DBE program goal

If I can be of further assistance please let me know

Best Regards

Jackie Bayne

Policy and Reporting Manager

WSDOT Office of Equal Opportunity

Work (360) 705-7084

Cell (360) 338-5783

BayneJwsdotwagov

From Troy Halberg [mailtotroyhnellcnet] Sent Wednesday November 29 2017 144 PMTo WSDOT Disparity Study ltDisparityStudyWSDOTWAGOVgtSubject DBE Goal Comments

If these goals are to be set that high this would make us as a non DBE small contractor at amajor disadvantage With these high of goals this is like handing all of the DBE electricalcontractors every job These general contractors will have no option but to use thembecause of the goals This should not go into effect We have been low on several jobs in thepast and have not gotten them do to the goals being 18 When this goes on it puts all therest of us contractors at a disadvantage Please consider the smaller non DBE contractorsthat are looking to survive as well

Thanks

Troy Halberg

Office360-225-7004

Cell360-931-3990

Fax360-225-7001

From Daniel Seydel IITo Bayne JackieCc Key Earl daneiwashingtonorg Nadeem Ismail Mussie Tewelde (mteweldehydro2geotechcom)

graceflyrightaolcom Mary Wenner Watkinson LarrySubject Re Seydel Dan - WSDOT Disparity Study Presentation Public TestimonyDate Friday December 8 2017 30323 PM

Jackie

It was my hope that the comments would be put into record I was also hoping that you wouldnot have to be the one having to formulate responses for each clarification If that is the caseI know you are swamped and will then I just ask my comments be only part of the recordHowever if there is dedicated staff that is going to be compiling and responding to theclarification then the below questions would be the priorities of most interest

These were questions unrelated to the disparity study and hopefully should be doable

1) Do you have any reports on your outcomes from the past 5 years on DBE support servicesand specific key performance measures from previous years funding (ie how many firmsutilized what was the objectives were objectives met did outcomes meet total satisfaction ifnot why next steps what was the firms capacity before and after services were performed (iesales employees bonding if applicable insurance equipment line of credit if applicablenumbertype of customers how are they doing now etc))

2) What other changes or improvements other than allowing DBES to select their own serviceproviders and a staff change will be a part of this new program

3) Was consideration to provide the new mentor protege consultant rather than separating theactivities into support services andor technical assistance

Disparity study clarifications

1) Will WSDOT consider sponsoring legislation to support the policy changes and goalincreases to insure manditory goals wont be necessary

a) If not what measures will you grant primes to operate outside the box (ie entertain bestvalue over low bid modify responsiveness by subs to require adherence to meeting voluntarygoals developing standards around federally funded gccm and other low bid procurementsthat give powers to primes to meet objectives including but not limited to mentor protegerelationships joint ventures bond waiving techniques cash flow assistance material andequipment acquisition manufacturer development specifications that have only DBES orinclude equal number of DBES as non DBES as approved installers etc)

2) Will the disparity study consultant be available for implementation or information gatheringfrom other regions

5) Will WSDOT be hiring more diverse staff amp professionaltechnical service providers inother departments outside OEO to insure policies commitments and evaluations areperformed in manner that improves diversity that reflects the communities WSDOT serves bythoughtful and legal efforts increase participation thus creating successful outcomes includingpartnerships and collaborations

Thank you and Merry Christmas

Hi Dan

Thank you for providing such thoughtful public comments questions and testimony

Regarding your public testimony below - I do not believe I am not able to answer questions ifthey are public comments Please let me know what part of this email you would likeclarification on and what part you would like considered public testimony

I appreciate your thoughtful consideration of WSDOTrsquos implementation of our civil rightsprograms

Best Regards

Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

DIDaniel Seydel IIFyi Daniel J Seydel II Platinum Group LLC 2064060844 f) 2062999934wwwplatinumbusinessgroupcom Small Business is the Answer FREE TRAINING FORENTREPRENEURS amp JOB SEEKERS - Polish your skills or make your firm standout thanksto the EntrepreneurialThu 233pDI

Daniel Seydel IIThu 1272017 1123 AMInbox Sent ItemsShow all 7 recipientsTobaynejwsdotwagov ltBayneJwsdotwagovgtJackie

Per your request below are my questions and comments some of which were verbally sharedyesterday

Congratulations on receiving the blessing of additional technical assistance dollars andcompleting the DBE Disparity Study per your report

1) Do you have any reports on your outcomes from the past 5 years on DBE support servicesand specific key performance measures from previous years funding (ie how many firmsutilized what was the objectives were objectives met did outcomes meet total satisfaction ifnot why next steps what was the firms capacity before and after services were performed (ie

sales employees bonding if applicable insurance equipment line of credit if applicablenumbertype of customers how are they doing now etc))

2) What other changes or improvements other than allowing DBES to select their own serviceproviders and a staff change will be a part of this new program

3) Was consideration to provide the new mentor protege consultant rather than separating theactivities into support services andor technical assistance

Disparity study clarifications andor comments

1) Will WSDOT consider sponsoring legislation to support the policy changes and goalincreases to insure manditory goals wont be necessary

a) If not what measures will you grant primes to operate outside the box (ie entertain bestvalue over low bid modify responsiveness by subs to require adherence to meeting voluntarygoals developing standards around federally funded gccm and other low bid procurementsthat give powers to primes to meet objectives including but not limited to mentor protegerelationships joint ventures bond waiving techniques cash flow assistance material andequipment acquisition manufacturer development specifications that have only DBES orinclude equal number of DBES as non DBES as approved installers etc)

2) Will the disparity study consultant be available for implementation or information gatheringfrom other regions

3) What lessons did WSDOT learn that it did not know from the other study(s)

4) What would WSDOT do different (ie scope time line process approach etc)

5) Will WSDOT be hiring more diverse staff amp professionaltechnical service providers inother departments outside OEO to insure policies commitments and evaluations areperformed in manner that improves diversity that reflects the communities WSDOT serves bythoughtful and legal efforts increase participation thus creating successful outcomes includingpartnerships and collaborations

Daniel J Seydel IIPlatinum Group LLC 2064060844f) 2062999934wwwplatinumbusinessgroupcom

Small Business is the Answer

FREE TRAINING FOR ENTREPRENEURS amp JOB SEEKERS - Polish your skills or makeyour firm standout thanks to the Entrepreneurial Institute of Washington

httpswwwyoutubecomchannelUCKL5YeVxL29HnNxqnb6hmXA

LIKE US on FaceBook if an Active Professional Development workshop provided by EIW

Construction University helps your firm or has benefited you

httpswwwfacebookcomEIWashingtonref=hl

From Bayne Jackie ltBayneJwsdotwagovgtSent Friday December 8 2017 10139 PMTo Daniel Seydel IICc Key Earl daneiwashingtonorg Nadeem Ismail Mussie Tewelde(mteweldehydro2geotechcom) graceflyrightaolcom Mary Wenner Watkinson LarrySubject RE Seydel Dan - WSDOT Disparity Study Presentation Public Testimony Hi Dan Thank you for providing such thoughtful public comments questions and testimony Regarding your public testimony below - I do not believe I am not able to answer questions if theyare public comments Please let me know what part of this email you would like clarification on andwhat part you would like considered public testimony I appreciate your thoughtful consideration of WSDOTrsquos implementation of our civil rights programs Best Regards Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov From Daniel Seydel II [mailtodanplatinumbusinessgroupcom] Sent Thursday December 7 2017 1123 AMTo Bayne Jackie ltBayneJwsdotwagovgtCc Key Earl ltKeyEwsdotwagovgt daneiwashingtonorg Nadeem Ismailltnipaintingearthlinknetgt Mussie Tewelde (mteweldehydro2geotechcom)ltmteweldehydro2geotechcomgt graceflyrightaolcom Mary Wennerltmwenn0108yahoocomgtSubject Seydel Dan - WSDOT Disparity Study Presentation Public Testimony Jackie

Per your request below are my questions and comments some of which were verbally sharedyesterday

Congratulations on receiving the blessing of additional technical assistance dollars andcompleting the DBE Disparity Study per your report

1) Do you have any reports on your outcomes from the past 5 years on DBE support servicesand specific key performance measures from previous years funding (ie how many firmsutilized what was the objectives were objectives met did outcomes meet total satisfaction ifnot why next steps what was the firms capacity before and after services were performed (iesales employees bonding if applicable insurance equipment line of credit if applicablenumbertype of customers how are they doing now etc))

2) What other changes or improvements other than allowing DBES to select their own serviceproviders and a staff change will be a part of this new program

3) Was consideration to provide the new mentor protege consultant rather than separating theactivities into support services andor technical assistance

Disparity study clarifications andor comments

1) Will WSDOT consider sponsoring legislation to support the policy changes and goalincreases to insure manditory goals wont be necessary

a) If not what measures will you grant primes to operate outside the box (ie entertain bestvalue over low bid modify responsiveness by subs to require adherence to meeting voluntarygoals developing standards around federally funded gccm and other low bid procurementsthat give powers to primes to meet objectives including but not limited to mentor protegerelationships joint ventures bond waiving techniques cash flow assistance material andequipment acquisition manufacturer development specifications that have only DBES orinclude equal number of DBES as non DBES as approved installers etc)

2) Will the disparity study consultant be available for implementation or information gatheringfrom other regions

3) What lessons did WSDOT learn that it did not know from the other study(s)

4) What would WSDOT do different (ie scope time line process approach etc)

5) Will WSDOT be hiring more diverse staff amp professionaltechnical service providers inother departments outside OEO to insure policies commitments and evaluations areperformed in manner that improves diversity that reflects the communities WSDOT serves bythoughtful and legal efforts increase participation thus creating successful outcomes includingpartnerships and collaborations

Thank you for your hard work

Daniel J Seydel IIPlatinum Group LLC2064060844f) 2062999934wwwplatinumbusinessgroupcom

Small Business is the Answer

FREE TRAINING FOR ENTREPRENEURS amp JOB SEEKERS - Polish your skills or makeyour firm standout thanks to the Entrepreneurial Institute of Washington

httpswwwyoutubecomchannelUCKL5YeVxL29HnNxqnb6hmXA

LIKE US on FaceBook if an Active Professional Development workshop provided by EIWConstruction University helps your firm or has benefited you

httpswwwfacebookcomEIWashingtonref=hl

From Erin EhlingerTo Bayne JackieSubject Support for WSDOTs proposed DBE goalDate Wednesday December 13 2017 115417 AM

I am writing to support the WSDOT recommended DBE Goal for FHWA contracts of 190 I also want to express my appreciation for the thoroughness of the WSDOT Disparity study and howthe study disclosed the disparity in WSDOT contracts that do not have a DBE or WBE goal ndash furtherreinforcing that all women-owned firms and minority owned firms face equity issues I remain concerned with the methodology required by the Code of Federal Regulations and case lawbecause of the dependence on the availability of firms in the calculation An unintendedconsequence of removing either gender or race from the goal is that many of these firms would goout of business the availability decreases and the formula then results in a smaller DBE goal Pleaselet me know how I can help influence a change to the CFR Thank you Erin Ehlinger

Erin Ehlinger PEPresident

24036 SE 47th StSammamish WA 98029erinehlingersmartcitytrafficcom425-221-0320

From Jackie EtterTo WSDOT Disparity StudySubject Why we need mandatory goalsDate Friday December 1 2017 61859 PM

As a DBE participating in bidding process I have found that regardless of the language which claims to insurethat disadvantaged business enterprises shall not be discriminated against the only way to ensure that this does nothappen is by mandating affirmative action goals Having been overlooked time and time again because of my gender when I have submitted bids that are verycompetitive with other bidders is very frustrating I have had many instances of companies using my price to getmy non DBE competitors to lower theirs The voluntary or laudatory DBE goals do nothing to ensure a level playing fieldThe only way to ensure non-discrimination is through mandatory goals

Jackie EtterWest Star Construction of Spokane

Sent from my iPhone

From Claudia HirscheyTo Key Earl Bayne JackieSubject WSDOT DBE Goal - Comment in supportDate Tuesday December 12 2017 61937 PM

Dear Earl and Jackie The WSDOT recommended DBE Goal for FHWA contracts of 190 is a small and important increasethat can further achieve equity in WSDOTFHWA contracting I am in support of the 19 DBE Goal I also want to express my appreciation for the thoroughness of the WSDOT Disparity study and howthe study disclosed the disparity in WSDOT contracts that do not have a DBE or WBE goal ndash furtherreinforcing that all women-owned firms and minority owned firms face equity issues I remain concerned with the methodology required by the Code of Federal Regulations and case lawbecause of the dependence on the availability of firms in the calculation An unintendedconsequence of removing either gender or race from the goal is that many of these firms would goout of business the availability decreases and the formula then results in a smaller DBE goal Sincerely Claudia S Hirschey PETransportation Consulting Servicesclaudiahirscheycomcastnethttphirscheytcscom2068564988 Mobile

From Nate ThomasTo WSDOT Disparity StudySubject WSDOT Proposes DBE goal of 19Date Thursday December 7 2017 42720 PM

The WSDOT should look into similar ways the Federal Gov has handled the equal opportunity forthose that fall under the DBE status and set aside specific projects for the DBErsquos and moreimportantly UDBErsquos so these companies have better chance of landing contracts Maybe a lot 10 ofthe DBE goal to set aside for only DBEs and other 9 goal met as it is done currently with COA onlarger contracts Nate ThomasSenior EstimatorD 5095688085 | C 5099941156331 North Fancher Road | Spokane WA | 99212

The information contained in this email including any attachments is confidential and may beprivileged It is intended only for the person or entity to which it is addressed and no waiver isintended by sending this email If the reader is not the intended recipient you are herebynotified that any review retransmission dissemination or other use of or taking any action inreliance upon this information is strictly prohibited If you have received this email in errorkindly notify the sender by reply email and delete the original message from any computerThank You

From Brian FujiiTo WSDOT Disparity StudySubject WSDOT propsed DBE GoalsDate Thursday December 7 2017 110638 AM

Good morning Jackie

I wanted to comment on WSDOTs proposed DBE goal to 19 I believe WSDOTs plan toincrease the overall DBE goal to 19 will provide greater opportunities for DBE contractorsin different disciplines to participate in federally funded contracts

Without the new DBE requirement and with Proposition 200 there are limited opportunitiesfor DBE contractors in disciplines different than the typical trucking flagging and rebar Inaddition there are no incentives for general contractors to go out beyond the usual truckingflagging and rebar DBE subcontractors

Increasing the DBE goals will provide opportunities for different DBE contractors in differentdisciplines to participate in WSDOT federally funded projects

Thank you for your time

RespectfullyBrian FujiiPresident Subsurface ConstructionP 2063836478F 2069604639MDBE 4M0024998

From Forman StephanieTo Bayne JackieCc Millar Roger christinenhanmailhousegov Claudia Hirschey Sarah Corbin Jiang Yingle

efaulknerenviroissuescom Diana Giraldo Kelly CheesemanSubject WTS - Disparity Study Comment LetterDate Friday December 15 2017 71020 PMAttachments 2017_Dec 15_WTSCommentLetter_WSDOT DBE Goalpdf

Dear Ms Bayne Please find our attached letter which summarizes the WTS Puget Sound Chapterrsquos support foradvancement of women in transportation and our comment letter regarding the recent DisparityStudy Please feel free to contact me if you have any questions or would like to discuss Sincerely Stephanie S Forman PEWTS Puget Sound President Transportation Project Manager

929 108th Avenue NE Suite 1300Bellevue WA 98004D 4254681548 M 2062291745stephanieformanhdrinccom

December 15 2017

Jackie Bayne Policy and Reporting Manager

Office of Equal Opportunity

Washington State Department of Transportation

PO Box 47314

Olympia WA 98504-7314

Dear Ms Bayne

On behalf of the Puget Sound Chapter of Womenrsquos Transportation Seminar (WTS) we would

like to thank the Washington State Department of Transportation for presenting to our

organization the DBE Disparity Study results We very much appreciated the presentation by Earl

Key Director of WSDOTrsquos Office of Equal Opportunity Teresa Berntsen (Director Office of Minority

and Womens Business Enterprises) as well as Leslie Jones (Director Sound Transit Office of Small

Business Development and Labor Compliance)

Following a review of the WSDOT Disparity Study and as a result of consultation with WTS

International we would like to provide WSDOT with our comments for your consideration

As you know WTS is an organization focused exclusively on attracting retaining and advancing

women in transportation By the year 2018 there will be thousands of vacancies in the

transportation industry for qualified professionals and while women account for more than half of

the worldrsquos workforce they are a very small minority in transportation disciplines

We are pleased that the outcome of the 2017 Disparity Study that recognizes the on-going barriers

for DBEs including women-owned businesses in transportation The WSDOT recommended DBE

Goal of 190 is a small and important increase that can further achieve equity in WSDOTFHWA

contracting We are also pleased that the 2017 Disparity Study has documented the disparity in

WSDOT contracts that do not have a DBE or WBE goal ndash further reinforcing that all women-owned

firms and minority owned firms face equity issues We are encouraged that the WSDOT has asked

FHWA to rescind the 2016 waiver

While WTSrsquo mission is specific to the advancement of women we are a race-neutral organization To

this end we are also deeply concerned about the underutilization of minority owned firms There is

no equity or ldquofair playing fieldrdquo without equity for all gender and races We remained concerned with

the methodology required by the Code of Federal Regulations and case law because of the

dependence on the availability of firms in the calculation An unintended consequence of removing

either gender or race from the goal is that many of these firms would go out of business the

availability decreases and the formula then results in a smaller DBE goal This consequence is

contrary to our mission

We look forward to our continued participation in WSDOTrsquos DBE advisory group we are anticipating

notice that the 2016 waiver has been rescinded and how we can work together to continue

advancing minority and women-owned firms in the transportation field

Sincerely

WTS Puget Sound Chapter

Stephanie Forman

President

C Roger Millar Secretary WSDOT

C Representative Adam Smith 9th Congressional District Washington co Christine Nhan

WTS Puget Sound Chapter

PO Box 3461

Bellevue Washington 98009

From Dave Gent - WAPATo Bayne JackieCc Tom GaetzSubject WAPA Public Comments - RE WSDOT FHWA Disadvantaged Business Enterprise Proposed GoalDate Friday December 15 2017 14119 PMAttachments 12152017 DBE Proposed Goal - WAPA Public Comments Letterpdf

Good afternoon Jackie Please find attached WAPArsquos ldquofor the public recordrdquo comments with respect to WSDOTrsquos proposedDBE Goals FHWA funded work I assume that the Master DBE Directory was not sent to you this week so as a result we were notable to review the directory before the close of the public comment period That fact is noted withinour comment letter Thank you for your efforts Have a good weekend

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Friday December 8 2017 1219 PMTo Dave Gent - WAPA ltdavegentasphaltwacomgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hello Dave WSDOT did not take possession of this directory as part of our review process We will provide youwith the records without submitting a formal request However we need to get them from theconsultant first I will hopefully have them to provide next week I will keep you updated on therequest Have a nice weekend Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal Opportunity

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

December 15 2017

Jackie Bayne Policy Manager WSDOT Office of Equal Opportunity Delivered via e-mail to BayneJwsdotwagov RE Public Comment (as requested) to Proposed Overall DBE Goal for the FHWA (2018 ndash 2020) Ms Bayne Thank you for your presentation via webinar on December 5 2017 outlining WSDOTrsquos evaluation process used to determine the proposed overall DBE goal for the FHWA Thank you also for the Colette Holt amp Associates (CHA) DBE Advisory Group presentation made on September 14 2017 Both presentations helped to distill the findings of the 2017 Disparity Study produced by CHA In response to Earl Keyrsquos initial informal request to comment on the proposed overall DBE goal made during the DBE Advisory Committee teleconference held on October 12th we provided a list of reasons that we believe justify a lower DBE goal than is now being proposed Our initial response to Mr Keyrsquos request did not serve to influence WSDOT and the current proposed goal remains at 190 The arguments provided on October 12th against the significant increase in the proposed DBE goal (versus the previous goal and recent historic DBE participation) are repeated and supplemented below and will serve as the Asphalt Pavement Associationrsquos (WAPArsquos) official public comments

In concert with WSDOT and the OWMBE WAPA and the construction firms that WAPA represents have demonstrated a commitment to the principals of equal opportunity for all ldquoready willing and ablerdquo firms for the entire history that our DBE program has been in place WAPA has continuously demonstrated its commitment to the goals of the DBE program and for increasing the representation of disadvantaged groups within our industry as both workers and owners of firms Please recognize that WAPArsquos oversight and critique of the DBE program has always attempted to balance the principals of fair and open competition with the practical aspects of the low bid compressed schedule high performance standards demanded within the WSDOT marketplace Our comments below are meant to enhance WSDOTrsquos and OWMBErsquos understanding of the market and to hopefully have WSDOT fully consider all of the dynamics that are at play when proposing its Triennial DBE goal for FHWA projects Current DBE Capacity vs Historically Robust Market In advocating for a realistic and defensible DBE goal it has always been WAPArsquos position that it is paramount that the realities of the marketplace and true certified DBE subcontracting capacity should be a primary standard While a ldquostretchrdquo goal may appear to be progressive on its face it comes with consequences for all of the parties involved in the WSDOT federal aid contracting arena To balance the dynamics of the WSDOT contracting system the DBE goal should be tempered with the realities of the market and with a true measure of the underlying effectiveness of the DBE support services available to contractors

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 2 of 6 The first point of fact that has not been given any apparent consideration by WSDOT in its evaluation of the current capacity of certified DBErsquos is that there is an historically robust workload scheduled to be performed in the 2017 through 2022 time-frame particularly in the Puget Sound ldquoEverett to Olympiardquo corridor By WSDOTrsquos own estimates (see Attachment A) public works construction project starts in the 2018 to 2022 time-frame in this region will exceed $333 billion (B) counting the work projected from just five public entities WSDOT will be taking a decidedly ldquoback seatrdquo role during this period to Sound Transit which will have construction project starts of $226B vs WSDOTrsquos projected volume of $67B WSDOTrsquos summary publication titled Washington State Department of Transportations Proposed Federal Highway Administration Triennium Disadvantaged Business Enterprise Goal Federal Fiscal Years 2018-2020 states correctly that ldquoIncluded among the types of evidence that must be considered are the current capacity of DBEs to perform work on WSDOTrsquos federally-assisted contracts as measured by the volume of work DBEs have performed in recent yearshelliprdquo (Step Two Adjustment discussion) With the Sound Transit program being over 300 larger than the total WSDOT program in this region a sober assessment of true certified DBE capacity in the next three years needs to be considered by WSDOT If the huge construction boom over the next five years does not prompt a Step Two Adjustment then it becomes obvious that the realities of the market are being ignored by WSDOT for DBE goal setting Put another way if the 2018 through 2022 level of contracting activity does not warrant a goal adjustment what will DBE Access Barriers Not Yet Addressed The CHA 2017 Disparity Study points out multiple recommendations in Section VII that impact DBE participation and access to the market Assessments relating to those impacts and the state of maturity in addressing the CHA recommendations should be considered when assessing the DBE goal Many of the CHA recommendation have not been adequately addressed at this point in time Some of the prime examples are listed below Increase Certification and Expertise ndash The Disparity Study as explained to us includes all minority- (MBE)

and women-owned (WBE) firms that could be readily identified that perform work within Washington State and that perform work within the NAICS code framework CHA developed to cover WSDOT project work During the various presentations relating to the Disparity Study WSDOT representatives said that outreach to currently non-certified MBE amp WBE firms has increased and that WSDOT aspires to bolster its list of certified firms in the future but this effort is just beginning and the success of the effort needs to be means tested against the broader population of MBE amp WBE firms included in the CHA base line evaluation As the Disparity Study uses a much broader population of MBE WBE contractors to arrive at its conclusions (both non-certified firms and firms too large for certification) it follows that the calculated DBE proposed goal is overstated to include capacity that does not currently exist within WSDOTrsquos certified DBE framework Unless OMWBE is experiencing sudden and unprecedented success in recruiting new MBEWBE firms the DBE goal should be adjusted downward to recognize that the ldquoready willing and ablerdquo contractors that WSDOT has certified is only a subset of the total MBEWBE contracting population used in the Disparity Study evaluation

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 3 of 6

Until the promised WSDOT outreach registration efforts result in a substantial increase in available certified DBE firms it is premature to count the entire population of minority- and women-owned contractors as available to participate in WSDOT contracting It is unreasonable for WSDOT to project availability capacity using the entire MBEWBE population when only its currently truncated list of certified firms is acceptable to count toward the DBE goal

A corollary to the Increase Certification and Expertise discussion above is that the calculation of the Base Figure evidently includes the broadest practical population of MBE and WBE firms identifiable (without a review of the CHA Master DBE Directory which has not been supplied prior to the close of the public comment period the scope of the directory cannot be ascertained) If this directory includes a large population of MBEWBE firms that are not certified or are too large to be certified then the Base Figure calculation should be adjusted to reflect that certified DBE firms are a fraction of the total MBEWBE firms used to arrive at the 19 suggested DBE goal With respect to the CHA Master Directory it is our understanding the WSDOT was not given the directory as part of its evaluation of the Disparity Study and it follows that it did not evaluate the proposed DBE goal in the context of the CHA Master DBE Directory In our opinion an informed decision on adjusting the CHA baseline goal calculation can only be done after an extensive evaluation of the CHA Master DBE Directory If this has not been done WSDOT has not exercised due diligence in evaluating the context and underpinnings of the CHA Disparity Study and a certified DBE Triennium goal proposal to the FHWA is premature Increase Contract ldquoUnbundlingrdquo ndash If this proposed strategy (suggested by the CHA Study) is undertaken

certified DBE Subcontractors currently available will be engaged as Prime Contractors and the value of their prime contracts will bolster the overall percentage of certified DBE contracting but a systematic effort and strategy to ldquounbundlerdquo has not been articulated by WSDOT The key question of how this effort can be accomplished without increased cost to the taxpayers and increased inconvenience for the traveling public As noted in the CHA study (page 129 final paragraph) ldquoUnbundling must be conducted however within the constraints of the need to ensure efficiency and limit cost to the taxpayersrdquo As of this writing no overarching strategy for further unbundling with proper accountability has been articulated by WSDOT to the DBE Advisory Group

Review Insurance and Experience Requirements ndash Impediments to certified DBE participation due to

necessary insurance and experience standards cannot be solved by the prime contracting community Unless and until WSDOT puts together programs to address the burden of the substantial risks shouldered by Prime Contractors on WSDOT contracts barriers for streamlined utilization of certified DBE firms will continue to exist These market driven barriers will continue to dampen the availability of certified DBE Subcontractors that are able to perform within WSDOTrsquos strict criteria without unduly transferring risk to the Prime Contractor

Better Partnering to Overcome DBE Failures to Perform ndash Prime Contractors are held fully responsible to maintain the project schedule and are subject to project liquidated damages even when they may be struggling to deal with Subcontractor performance issues It is well-established that replacing a certified ldquocondition of awardrdquo (COA) DBE Subcontractor is very onerous and likely very costly to the Prime Contractor Unfortunately the imposition of strict and often counter-productive commercially useful function (CUF) rules often compound this issue as Prime Contractors cannot help COA DBE Subcontractors work through capacity expertise or time-related issues that impact timely performance

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 4 of 6

WSDOT needs to be a much better partner in the process of dealing with under-performing or non-performing certified DBE Subcontractors The current standard operational procedure places all of the exposure for non-performance onto the Prime WSDOT does not have an equitable system to account for non-performing or under-performing certified DBE Subcontractors hired as a condition of award (COA)

Performance Information and Training ndash Commercially useful function rules (CUF) and the lack of clear benchmark definitions for good faith effort (GFE) standards remain barriers for improving accountability within the DBE system and in turn lead to distorted DBE participation rates These items remain amorphous due to lack of training or lack of historic information Chronic uncertainty exists regarding both of these items Until WSDOT changes and improves its approach to provide transparency and certainty for both the prime bidding amp subcontracting parties true certified DBE capacity will continue to be masked and the resultant higher subcontracting costs associated with a distorted marketplace will continue to be hidden

WAPA respectfully suggests that simply adding an ldquoEstimated DBE Subcontract Premiumrdquo line to the current DBE bid forms would help to establish benchmarks that could begin to be used to ldquomeans testrdquo good faith efforts If this information had been gathered over the last 20 years of the DBE program meaningful GFE standards could have been developed and could be in place today

An in-depth review of CUF standards would also provide clarity For instance it is unclear why force account items performed by certified DBEs are currently counted at only 50 of the value of the work How was this benchmark established Has it been reviewed since imposed Did it ldquosolverdquo whatever inequity WSDOT was trying to address Better clarity may lead to more expanded opportunities for certified DBE Subcontractors

Enhanced Supportive Services and Business Development Programs ndash Unless and until stronger programs of these types are shown to be effective in boosting certified DBE business development increased DBE participation due to stronger business acumen should not be relied upon when setting the new DBE goal

Does OMWBE have a reasonable expectation that future plans for enhanced and expanded programs will be more successful than those employed in the past Assuming that certified DBE Subcontractors will be better prepared to deal with the WSDOT contracting environment than in the past should not be relied upon to boost DBE participation goals Especially troubling were the multiple references within the CHA report highlighting that DBEs believe that the staff at OMWBE lack a deep knowledge about the highway construction industry (eg Study page 129 2nd paragraph) Does OMWBE have a path forward that will address this issue and thus improve supportive services impacts

Develop a Bonding and Financing Program for SBEs ndash This is completely outside of the prime contracting

communityrsquos scope of influence WSDOT must find a way to institute changes that both protect the taxpayer and help increase certified DBE bonding capacity and access to financing ndash very large hurtles To assume that these hurtles can effectively be overcome within the 2018 ndash 2020 time frame when they have been chromic issues for the past 20 plus years of DBE program development is not rational

A helpful innovation would be for WSDOT to underwrite performance and payment bonds for certified DBE firms or to create promote a system that helps certified DBE firms obtain private bonding Bridging the gap to address capital access and performance risks (bonding) must be championed by WSDOT

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 5 of 6

Base Figure Adjustment to Address Available Subcontract Volume and DBE Prime Contracts It is a fact that mid- to large-sized MBEWBE firms that compete both as Prime Contractors and as Subcontractors are not eligible to be OMWBE certified DBEs Further the current amount of contract unbundling for greater DBE access to WSDOT prime contracting (see below) accounts for a very low dollar volume of prime contracts performed by certified DBEs Finally by specification (WSDOT standard specification 1-081) Prime Contractors are obligated to perform 30 of the total volume of the work (less specialty work) or stated another way a maximum of 70 of the dollar volume on WSDOT projects is typically available to award to subcontractors These market dynamics are NOT addressed in the Disparity Study A responsible DBE goal made absent of these facts should not be implemented A reasonable adjustment to the proposed 19 DBE goal is presented below

bull The percent of WSDOT prime contracts awarded to certified DBE firms is likely less than 5 by total WSDOT

contract volume Assuming this approximation is valid (likely very conservative) then the amount of WSDOT contract work available to certified DBE firms via subcontracting should be adjusted to account for the factors outlined above The Base Figure (19) should be adjusted to recognize that a 70 maximum subcontractor participation is available (in the numerator) and to account for the assumed 5 certified DBE prime contracts in the denominator Reasonable Base Figure Adjustment 19 (proposed) x 70 subcontracts available divide 95 of Non-Certified DBEs as Prime Contract Volume = 190 x 0737 = 140 adjusted goal This is an adjustment based on the practical dynamics of the WSDOT contracting system and it represents a more realistic look at the true subcontract volume that is available for Prime Contractors to award to certified DBE firms

Conclusions

Until the items listed above are addressed and in place it is not reasonable to believe that DBE goals can be increased by nearly 163 (from 117 to 190) When the projected robust public works contracting market is appropriately considered the true availability of certified DBE Subcontractors for WSDOT contracts will be truncated due to demand across all public works sectors With multiple strong public works programs competing for a limited population of certified DBEs the ability to meet increased WSDOT DBE goals will be severely challenged Without very clear concise and transparent good faith effort rules the ability to address DBE goals that greatly overestimate true near term certified DBE capacity will result in non-attainment bid day chaos failures to perform andor rapidly increased pricing

The clear conclusion is that at this point in time under the current circumstances without effectively instituted new programs rules procedures that could enhance the certified DBE programrsquos overall effectiveness we believe that the DBE goal should remain at or near 12 As OMWBE documents and demonstrates its future successes in improving access and eliminating capacity barriers only then should the DBE goal be re-evaluated and increased

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 6 of 6

In closing please remember that it is rare that the contracting community is asked our opinion with respect to the WSDOTrsquos DBE policies and so this letter is somewhat a vehicle to highlight collective concerns It is our belief that the majority of the Prime Contractors in Washington state support the objective of creating a level playing field for ready willing and able DBEs

If the level playing field is not yet possible in the absence of the DBE program then the key is to set realistic goals that recognize reflect and address the hard realities and market dynamics imposed by WSDOTrsquos bedrock environment of awarding contracts to the lowest cost responsible and responsive Contractor

Respectfully submitted Washington Asphalt Pavement Association

David Gent Tom Gaetz Executive Director Senior Advisor

Attachment A ndash WSDOT Central Puget Sound Public Works Contracting Projection 2018 - 2022

Con

stru

ctio

n Pr

ojec

t Sta

rts

2018

-202

2S

ound

Tra

nsit

$22

6 B

SD

OT

$08

B

Tran

sit

amp O

ther

s$1

7 B

WS

DO

T$6

7 B

Por

t of

Sea

ttle

$15

B

TOTA

L$3

33

B

Source N

ov 1

9 2

017

pres

enta

tion

to W

APA

Ann

ual M

eetin

g

Attachment A

Work (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Dave Gent - WAPA [mailtodavegentasphaltwacom] Sent Thursday December 7 2017 144 PMTo Bayne Jackie ltBayneJwsdotwagovgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hi again Jackie Irsquom fine thanks and hope you are the same Interesting The Master DBE Directory is the basis for and integral to the conclusions of the DisparityStudy Is it not then part of the information needed to fully review and comment on the DisparityStudy Was it not provided by CHA to WSDOT for review We are trying to fully understand thestudy and if this directory was part of the study why would it need to be obtained by a publicrecords disclosure It should be in the public domain and not restricted from ease of access If you are sure that a public records request is needed Irsquoll start that process but we will need tonote that point of fact when we submit our public comments If you are able to reconsider please let me know Respectfully

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Thursday December 7 2017 126 PMTo Dave Gent - WAPA ltdavegentasphaltwacomgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hello Dave I hope you are doing well

That information would likely be obtained through a public disclosure request Best Regards Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Dave Gent - WAPA [mailtodavegentasphaltwacom] Sent Thursday December 7 2017 113 PMTo Bayne Jackie ltBayneJwsdotwagovgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Jackie Can you please provide an electronic file or provide a weblink for the Master DBE Directory thatColette Holt amp Associates developed for the WSDOT Disparity Study 2017 (first referred to on Page 8of the Disparity Study) I did not see a link to this Master DBE Directory within the study Thanks

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Friday October 27 2017 1118 AMTo Kenyon Wendy ltKenyonWwsdotwagovgt Adams E W ltewadamssystemsclcomgtAdekoyaAndrew ltandrewadekoyabccomgt AlyssaBalllegwagov Anindita Mitraltamitracrea-affiliatescomgt APRISeattlehotmailcom Armstrong CharlotteltCharlieAatgwagovgt Ato Apiafi Architects PLLC ltatoaatoapiaficomgt benzfanwaorgBerntsen Teresa (OMWBE) ltTeresaBomwbewagovgt Billingsley Andrealtbillinawsdotwagovgt Bramlet Erica ltEricaBramletlegwagovgt Brooks Julius

ltBrooksJwsdotwagovgt Brown Jason ltjbrownldccorpcomgt bwallacenwlaborersorgCamden Allison ltCamdenAwsdotwagovgt carlllivingstongmailcom Cerda OscarltCerdaOwsdotwagovgt Christopher Chris ltChristCwsdotwagovgt ckerneycaawagovdanplatinumbusinessgroupcom davegentasphaltwacom David BalltDavidsignsnowmillcreekcomgt Davis Khalia ltDavisKhwsdotwagovgt Davis RaShelle (GOVltrashelledavisgovwagovgt Dayton Jo ltDaytonJwsdotwagovgt ddhondtagcwacomDebbieDriverlegwagov Dennis ltdennisahlkiewitcomgt dmcleodnwlaborersorgdrart6651gmailcom Duncan Enid lthigradeincgmailcomgt EltonltEltonwashingtonstatetruckingcomgt eprincecaawagov flemosldccorpcomfmartineznwmtnmsdcorg geoffshookatkncom glovelady ltgloveladyexcelglovescomgtGrabow Katie ltkgrabowsystemsclcomgt Guilfucci Jackie ltJackieGuilfucciskanskacomgt HealyLinda ltHealyLwsdotwagovgt Higginbotham Breanne ltHigginBwsdotwagovgt HirscheyClaudia ltclaudiahirscheycomcastnetgt Holt Colette ltcoletteholtmwbelawcomgt Huff JohnltHuffJwsdotwagovgt Iniguezchawagov JacksonMaynardlegwagov Jimmy Matta(jmattaalcantarassoccom) ltjmattaalcantarassoccomgt kellywickergovwagov Key EarlltKeyEwsdotwagovgt Kirk Jon ltjkirkwhhnfscomgt Kris Purrier ltkpurrierhwageocomgtleewabuildingtradesorg lesliejonessoundtransitorg Liz Evans ltlevansagcwacomgt LopezErin lterinlopezdeswagovgt Martha Cerna ltMarthaPSLCCORGgt Martin-Arnold EdwinaltMartinEwsdotwagovgt Mary Lerdahl ltmarydbeelectricinccomgt McCarty Hannahlthannahmccartylegwagovgt Melissa L Boyles ltmelissaboylesmwbelawcomgt Metcalf KeithltMetcalKwsdotwagovgt michaelicapaawagov Michelle ltMichelleTTCC26netgt MillarRoger ltMillarRwsdotwagovgt Nakamura Jason ltjasonnakamura1-alliancecomgtNavarroLportseattleorg olliepmt-solutionscom pastorbanksesbctacomacom PatrickHughes ltphugheshughesgroupbizgt Petersen Jodi (FHWA) ltJodiPetersendotgovgtrabbottliunaorg rcarmsteadgmailcom ricemportseattleorg Riley D ltdrileylydigcomgtSeling ltSelingjpfranciscomgt sherryharrisergosynchcom Stell MellodyltStellMwsdotwagovgt terigobintulaliptribes-nsngov timwilliamfactorycom tinaterra-tdicom tkellyldccorpcom tomgaetzmsncom vcollinsacec-waorgverlenejazzmsncom Wang Albert ltWangAatgwagovgt Waugh GregltGregWMaxKuneyComgt Yates Henry ltYatesHWSDOTWAGOVgtCc Tom Gaetz lttomgaetzmsncomgt Dave Gent - WAPA ltdavegentasphaltwacomgt VanCollins ltvcollinsacec-waorggt Daniel Seydel II ltdanplatinumbusinessgroupcomgt MaynardJackson ltJacksonMaynardlegwagovgt Carl Livingston ltcarlllivingstongmailcomgt DonMcLeod ltdmcleodnwlaborersorggt JIMMY MATTA ltjimmymattamsncomgt Prince Ed(CAAA) lteprincecaawagovgt David DHondt ltddhondtagcwacomgt Irene Reyesltgloveladyexcelsupplycompanycomgt McDaniel Craig ltMcDaniCwsdotwagovgtsherryharrisergosynchcomSubject WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Good morning On Monday October 30th WSDOT will be releasing the proposed overall Federal HighwayAdministration Disadvantaged Business Enterprise goal attached for public comment throughDecember 15 2017 This overall DBE goal is based upon the recently completely DBE ProgramDisparity Study WSDOT is proposing a 19 percent overall DBE participation goal on Federal Highway

Administration-funded projects for federal fiscal years 2018 through 2020 DBE goals fortransportation projects that receive federal funds represent a percentage of the value of work inwhich minority- and women-owned businesses should participate Once finalized and submitted toFHWA early next year the goal will be effective through Sept 30 2020

The purpose of the DBE program is to create a level playing field for firms owned and operated bydisadvantaged individuals wanting to participate in federally assisted highway transit and aviationprograms The attached overall DBE goal is for FHWA funded projects WSDOT will be updating theFTA and FAA overall DBE goals in the near future

If you have any questions please contact Earl Key Director of the Office of Equal Opportunity at3607057091 or KeyEwsdotwagov Thank you Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

  • Proof-Of-Publicationpdf
    • Mediapdf
      • AGC
      • Daily Journal
      • Daily Medium
      • DBEGood
      • OMWBE
      • Seattle Medium
      • Tabor 100
      • The Chronicle
      • Tukwila
        • King County
          • Public-Comments-20180111pdf
            • 19 DBE Requirement(1)
            • AGC Comments on Proposed 10 Goad
            • Backstrom Curb amp Sidewalk
            • comments on WSDOT proposed DBE goal
            • Cowlitz County Public Works
            • DBE Contracting goals
            • DBE Goal
            • DBE Program Disparity Study
            • Disparity Study Comments from City of Spokane
            • FW_ WSDOT News - WSDOT seeks comments on propos
            • Proposed DBE Goals
            • RE_ DBE Contracting Goal Comments
            • Re_ DBE Goal Comments
            • Re_ Seydel Dan - WSDOT Disparity Study Present
            • Support for WSDOTs proposed DBE goal
            • Why we need mandatory goals
            • WSDOT DBE Goal - Comment in support
            • WSDOT Proposes DBE goal of 19
            • WSDOT propsed DBE Goals
            • WTS - Disparity Study Comment Letter

From Cochrane EmilieTo WSDOT Disparity StudyCc Eugenis Susan Cowlitz Co Public Works - Brad BastinSubject Proposed DBE GoalsDate Thursday December 14 2017 85006 AMAttachments image002png

DBE Goals - Commentspdf

Please see the attached letter with comments regarding the proposed DBE Goals Ahard copy will be sent out today

Thanks

Emilie CochraneCowlitz County Public Works1600 ndash 13th Avenue SKelso WA 98626360-577-3030 ext 6523

From Michelle WolcottTo Bayne JackieCc Robideau Christopher LSubject RE DBE Contracting Goal CommentsDate Tuesday November 7 2017 65448 AMAttachments image001png

Thank you JackieWhat a relief to know that we have been heard and are not the only small business facing thisstruggle Your email is comforting

Yes you can provide us with additional assistanceLet me introduce my boss and Senior Vice President of Red Plains Professional Chris Robideau

Chris will be your contact from here since I will be leaving the company November 17th As a WA DBE we are ldquoeligible for limited DBE Support Services (SS) funding when funds becomeavailablerdquo When will this happen And are we registered or on a list to receive fundingIs the WSDOT ICR Training a prerequisite for the funding Or just helpful knowledge

Thank you for your time Jackie I will follow through with the training

Michelle Wolcott EIT Quality Control Engineer

2103 NE 129th Street Suite 201 Vancouver WA 98686 Office (360) 448-7999 Fax (360) 258-0274

wwwred-plainscom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Monday November 6 2017 332 PMTo Michelle Wolcott ltMichelleWolcottred-plainscomgtSubject RE DBE Contracting Goal Comments

Hi Michelle

Thank you for your interest in doing business with WSDOT I apologize for the lack of informationyou have come up against in your attempts to attain access to WSDOT ICR program

As you may well know WSDOT has recently completed a state wide agency specific diversity studyAnecdotal comments submitted with the study concur with your experience Not only did somerespondents find it difficult to become prequalified they also commented that the required indirectrate of 110 percent is too low to be profitable These requirements are currently under advisementby WSDOT and new DBE program requirements are currently in the process of seeking public input

As you are an OMWBE certified DBE in Washington State you will be eligible for limited DBE SupportServices (SS) funding when these funds become available At that time funds may become availableto assist you in your struggle to attain ICR eligibility Here is a link to WSDOTrsquos Indirect Cost RateTraining httpswwwwsdotwagovAuditICRTraininghtm If you would like me to find additionaltraining or information please let me know

If I can provide additional assistance of information please let me know

Best Regards

Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Michelle Wolcott [mailtoMichelleWolcottred-plainscom] Sent Tuesday October 31 2017 835 AMTo WSDOT Disparity Study ltDisparityStudyWSDOTWAGOVgtSubject DBE Contracting Goal Comments

HelloI have been in contact with WSDOT for 6 months sharing my disparaging story of beinga small DBE unable to submit SOQs for projects requiring a WSDOT Audited IndirectCost Rate Approval We do not have an in-house accountant and our outsideaccountant has explained to get all the paperwork together for WSDOT would take 40hours of work $9000 annually We cannot justify this cost to submit on a project thatwe may not acquire We have been directed to seek financial assistance from WSDOT Federal SBA andWashington State Office for Women and Minority Owned Enterprises all of whichprovided negative responses

As a DBE business in 11 states we are supporting the 19 incentive for federallyfunded contracts but we are frustrated in the fact that we will not be one of the luckyfew to participateWe have been in business 20 years From our Vancouver Washington office our clientsare the Native American tribes across the country with all contracts federally funded This summer alone the WSDOT ICR Approval has squashed our ability to submit on twoprojects that we were perfectly qualified to performI have attached previous emails to show a sample of who I have been dealing with

Thank you

Michelle Wolcott EIT Quality Control Engineer

ltimage001pnggt

2103 NE 129th Street Suite 201 Vancouver WA 98686 Office (360) 448-7999 Fax (360) 258-0274 wwwred-plainscom

From Michelle Wolcott Sent Monday July 10 2017 954 AMTo Harvey Schatzie ltHarveySwsdotwagovgtSubject RE WSDOT Indirect Cost Rate Process

Good Morning Schatzie

This is Michelle Wolcott from Red We spoke Friday June 30th about the ICRprocess and you were very encouraging I relayed the information to my boss who ishere in Vancouver then he shared with the president bookkeeper and our accountantin Oklahoma We had FAR compliance with Oklahoma DOT in 2015 so we are noteligible for the Safe Harbor Program Our account said our timekeeping system doesnot breakdown the hours and pay in the format WSDOT wants to have it presented andto get the documents in order would take the CPA and an assistant $9000 in paidhours of work It turns out this would have to be annually The other option is to hirean outside CPA firm to do the audit for us at $20000 annually

Our president said in the past we received funding assistance from the Stateof Oklahoma to get our ICR approval Does WSDOT offer any financial assistance for small businesses to reach compliance We are also a DBE in WA I have requested the same information from WA PTAC at theVancouver Chamber of Commerce and from WA Office of Minority and Women OwnedBusiness Enterprises and they both said there was nothing but suggested to askWSDOTThank you for your helpMichelle Wolcott EIT

Hello Michelle sorry but I am not aware of any grants But I was looking at this andthere is a POC at the bottom you may try to discuss the audit issuesHollyHolly BoehmeBusiness Opportunity Specialist | 8(a) Business Development ProgramUS Small Business Administration bull Seattle District Office

Hello Michelle -

Thank you for your email Im not aware of any funding available for thispurpose but do agree its quite a bit for a DBE firm to have as an expense Mostof the firms I work with do a lot more work on the Oregon side so perhaps thereare programs available that I just havent heard of Im copying my colleagueHoly Boehme in our Seattle District Office to see if they are aware of any suchassistance

Holly might there be some small business incubators or other resources availablein WA to help a small firm with the expense of getting a WSDOT AuditedIndirect Cost Rate approval Please reply all with anything you may have

Thank you

Yuri Yoshida Dyson Business Opportunity SpecialistUS SMALL BUSINESS ADMINISTRATION Portland District OfficePhone 503-326-6692 Fax 202-292-3872 wwwsbagovor

From Troy HalbergTo Bayne JackieSubject Re DBE Goal CommentsDate Wednesday December 13 2017 35533 PM

JackieToday was another example of why the goals should not be raised There were 2 jobs which Iwas low on and did not get due to the high goals This is exactly what will happen when thegoals get raised The first job was the 9180 Anacortes Ferry Paving Northeast Electric $244924 and UDBE $318000 Second job was the 9172 SR 9 East Junction Job Northeast Electric $68503 and UDBE $76300

Does this seem like a good way to spend the tax payer money I do not see how we are tosurvive if the goals get to 21

Thanks

Troy HalbergOffice360-225-7004Cell360-931-3990Fax360-225-7001

On Thu Nov 30 2017 at 1131 AM Bayne Jackie ltBayneJwsdotwagovgt wrote

Good Morning Troy

Thank you for taking the time to provide us with your experiences with the DBE Program TheWashington State Department of Transportation takes the public involvement process veryseriously and your comments will be taken into consideration prior to a final decision regardingthe overall DBE program goal

If I can be of further assistance please let me know

Best Regards

Jackie Bayne

Policy and Reporting Manager

WSDOT Office of Equal Opportunity

Work (360) 705-7084

Cell (360) 338-5783

BayneJwsdotwagov

From Troy Halberg [mailtotroyhnellcnet] Sent Wednesday November 29 2017 144 PMTo WSDOT Disparity Study ltDisparityStudyWSDOTWAGOVgtSubject DBE Goal Comments

If these goals are to be set that high this would make us as a non DBE small contractor at amajor disadvantage With these high of goals this is like handing all of the DBE electricalcontractors every job These general contractors will have no option but to use thembecause of the goals This should not go into effect We have been low on several jobs in thepast and have not gotten them do to the goals being 18 When this goes on it puts all therest of us contractors at a disadvantage Please consider the smaller non DBE contractorsthat are looking to survive as well

Thanks

Troy Halberg

Office360-225-7004

Cell360-931-3990

Fax360-225-7001

From Daniel Seydel IITo Bayne JackieCc Key Earl daneiwashingtonorg Nadeem Ismail Mussie Tewelde (mteweldehydro2geotechcom)

graceflyrightaolcom Mary Wenner Watkinson LarrySubject Re Seydel Dan - WSDOT Disparity Study Presentation Public TestimonyDate Friday December 8 2017 30323 PM

Jackie

It was my hope that the comments would be put into record I was also hoping that you wouldnot have to be the one having to formulate responses for each clarification If that is the caseI know you are swamped and will then I just ask my comments be only part of the recordHowever if there is dedicated staff that is going to be compiling and responding to theclarification then the below questions would be the priorities of most interest

These were questions unrelated to the disparity study and hopefully should be doable

1) Do you have any reports on your outcomes from the past 5 years on DBE support servicesand specific key performance measures from previous years funding (ie how many firmsutilized what was the objectives were objectives met did outcomes meet total satisfaction ifnot why next steps what was the firms capacity before and after services were performed (iesales employees bonding if applicable insurance equipment line of credit if applicablenumbertype of customers how are they doing now etc))

2) What other changes or improvements other than allowing DBES to select their own serviceproviders and a staff change will be a part of this new program

3) Was consideration to provide the new mentor protege consultant rather than separating theactivities into support services andor technical assistance

Disparity study clarifications

1) Will WSDOT consider sponsoring legislation to support the policy changes and goalincreases to insure manditory goals wont be necessary

a) If not what measures will you grant primes to operate outside the box (ie entertain bestvalue over low bid modify responsiveness by subs to require adherence to meeting voluntarygoals developing standards around federally funded gccm and other low bid procurementsthat give powers to primes to meet objectives including but not limited to mentor protegerelationships joint ventures bond waiving techniques cash flow assistance material andequipment acquisition manufacturer development specifications that have only DBES orinclude equal number of DBES as non DBES as approved installers etc)

2) Will the disparity study consultant be available for implementation or information gatheringfrom other regions

5) Will WSDOT be hiring more diverse staff amp professionaltechnical service providers inother departments outside OEO to insure policies commitments and evaluations areperformed in manner that improves diversity that reflects the communities WSDOT serves bythoughtful and legal efforts increase participation thus creating successful outcomes includingpartnerships and collaborations

Thank you and Merry Christmas

Hi Dan

Thank you for providing such thoughtful public comments questions and testimony

Regarding your public testimony below - I do not believe I am not able to answer questions ifthey are public comments Please let me know what part of this email you would likeclarification on and what part you would like considered public testimony

I appreciate your thoughtful consideration of WSDOTrsquos implementation of our civil rightsprograms

Best Regards

Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

DIDaniel Seydel IIFyi Daniel J Seydel II Platinum Group LLC 2064060844 f) 2062999934wwwplatinumbusinessgroupcom Small Business is the Answer FREE TRAINING FORENTREPRENEURS amp JOB SEEKERS - Polish your skills or make your firm standout thanksto the EntrepreneurialThu 233pDI

Daniel Seydel IIThu 1272017 1123 AMInbox Sent ItemsShow all 7 recipientsTobaynejwsdotwagov ltBayneJwsdotwagovgtJackie

Per your request below are my questions and comments some of which were verbally sharedyesterday

Congratulations on receiving the blessing of additional technical assistance dollars andcompleting the DBE Disparity Study per your report

1) Do you have any reports on your outcomes from the past 5 years on DBE support servicesand specific key performance measures from previous years funding (ie how many firmsutilized what was the objectives were objectives met did outcomes meet total satisfaction ifnot why next steps what was the firms capacity before and after services were performed (ie

sales employees bonding if applicable insurance equipment line of credit if applicablenumbertype of customers how are they doing now etc))

2) What other changes or improvements other than allowing DBES to select their own serviceproviders and a staff change will be a part of this new program

3) Was consideration to provide the new mentor protege consultant rather than separating theactivities into support services andor technical assistance

Disparity study clarifications andor comments

1) Will WSDOT consider sponsoring legislation to support the policy changes and goalincreases to insure manditory goals wont be necessary

a) If not what measures will you grant primes to operate outside the box (ie entertain bestvalue over low bid modify responsiveness by subs to require adherence to meeting voluntarygoals developing standards around federally funded gccm and other low bid procurementsthat give powers to primes to meet objectives including but not limited to mentor protegerelationships joint ventures bond waiving techniques cash flow assistance material andequipment acquisition manufacturer development specifications that have only DBES orinclude equal number of DBES as non DBES as approved installers etc)

2) Will the disparity study consultant be available for implementation or information gatheringfrom other regions

3) What lessons did WSDOT learn that it did not know from the other study(s)

4) What would WSDOT do different (ie scope time line process approach etc)

5) Will WSDOT be hiring more diverse staff amp professionaltechnical service providers inother departments outside OEO to insure policies commitments and evaluations areperformed in manner that improves diversity that reflects the communities WSDOT serves bythoughtful and legal efforts increase participation thus creating successful outcomes includingpartnerships and collaborations

Daniel J Seydel IIPlatinum Group LLC 2064060844f) 2062999934wwwplatinumbusinessgroupcom

Small Business is the Answer

FREE TRAINING FOR ENTREPRENEURS amp JOB SEEKERS - Polish your skills or makeyour firm standout thanks to the Entrepreneurial Institute of Washington

httpswwwyoutubecomchannelUCKL5YeVxL29HnNxqnb6hmXA

LIKE US on FaceBook if an Active Professional Development workshop provided by EIW

Construction University helps your firm or has benefited you

httpswwwfacebookcomEIWashingtonref=hl

From Bayne Jackie ltBayneJwsdotwagovgtSent Friday December 8 2017 10139 PMTo Daniel Seydel IICc Key Earl daneiwashingtonorg Nadeem Ismail Mussie Tewelde(mteweldehydro2geotechcom) graceflyrightaolcom Mary Wenner Watkinson LarrySubject RE Seydel Dan - WSDOT Disparity Study Presentation Public Testimony Hi Dan Thank you for providing such thoughtful public comments questions and testimony Regarding your public testimony below - I do not believe I am not able to answer questions if theyare public comments Please let me know what part of this email you would like clarification on andwhat part you would like considered public testimony I appreciate your thoughtful consideration of WSDOTrsquos implementation of our civil rights programs Best Regards Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov From Daniel Seydel II [mailtodanplatinumbusinessgroupcom] Sent Thursday December 7 2017 1123 AMTo Bayne Jackie ltBayneJwsdotwagovgtCc Key Earl ltKeyEwsdotwagovgt daneiwashingtonorg Nadeem Ismailltnipaintingearthlinknetgt Mussie Tewelde (mteweldehydro2geotechcom)ltmteweldehydro2geotechcomgt graceflyrightaolcom Mary Wennerltmwenn0108yahoocomgtSubject Seydel Dan - WSDOT Disparity Study Presentation Public Testimony Jackie

Per your request below are my questions and comments some of which were verbally sharedyesterday

Congratulations on receiving the blessing of additional technical assistance dollars andcompleting the DBE Disparity Study per your report

1) Do you have any reports on your outcomes from the past 5 years on DBE support servicesand specific key performance measures from previous years funding (ie how many firmsutilized what was the objectives were objectives met did outcomes meet total satisfaction ifnot why next steps what was the firms capacity before and after services were performed (iesales employees bonding if applicable insurance equipment line of credit if applicablenumbertype of customers how are they doing now etc))

2) What other changes or improvements other than allowing DBES to select their own serviceproviders and a staff change will be a part of this new program

3) Was consideration to provide the new mentor protege consultant rather than separating theactivities into support services andor technical assistance

Disparity study clarifications andor comments

1) Will WSDOT consider sponsoring legislation to support the policy changes and goalincreases to insure manditory goals wont be necessary

a) If not what measures will you grant primes to operate outside the box (ie entertain bestvalue over low bid modify responsiveness by subs to require adherence to meeting voluntarygoals developing standards around federally funded gccm and other low bid procurementsthat give powers to primes to meet objectives including but not limited to mentor protegerelationships joint ventures bond waiving techniques cash flow assistance material andequipment acquisition manufacturer development specifications that have only DBES orinclude equal number of DBES as non DBES as approved installers etc)

2) Will the disparity study consultant be available for implementation or information gatheringfrom other regions

3) What lessons did WSDOT learn that it did not know from the other study(s)

4) What would WSDOT do different (ie scope time line process approach etc)

5) Will WSDOT be hiring more diverse staff amp professionaltechnical service providers inother departments outside OEO to insure policies commitments and evaluations areperformed in manner that improves diversity that reflects the communities WSDOT serves bythoughtful and legal efforts increase participation thus creating successful outcomes includingpartnerships and collaborations

Thank you for your hard work

Daniel J Seydel IIPlatinum Group LLC2064060844f) 2062999934wwwplatinumbusinessgroupcom

Small Business is the Answer

FREE TRAINING FOR ENTREPRENEURS amp JOB SEEKERS - Polish your skills or makeyour firm standout thanks to the Entrepreneurial Institute of Washington

httpswwwyoutubecomchannelUCKL5YeVxL29HnNxqnb6hmXA

LIKE US on FaceBook if an Active Professional Development workshop provided by EIWConstruction University helps your firm or has benefited you

httpswwwfacebookcomEIWashingtonref=hl

From Erin EhlingerTo Bayne JackieSubject Support for WSDOTs proposed DBE goalDate Wednesday December 13 2017 115417 AM

I am writing to support the WSDOT recommended DBE Goal for FHWA contracts of 190 I also want to express my appreciation for the thoroughness of the WSDOT Disparity study and howthe study disclosed the disparity in WSDOT contracts that do not have a DBE or WBE goal ndash furtherreinforcing that all women-owned firms and minority owned firms face equity issues I remain concerned with the methodology required by the Code of Federal Regulations and case lawbecause of the dependence on the availability of firms in the calculation An unintendedconsequence of removing either gender or race from the goal is that many of these firms would goout of business the availability decreases and the formula then results in a smaller DBE goal Pleaselet me know how I can help influence a change to the CFR Thank you Erin Ehlinger

Erin Ehlinger PEPresident

24036 SE 47th StSammamish WA 98029erinehlingersmartcitytrafficcom425-221-0320

From Jackie EtterTo WSDOT Disparity StudySubject Why we need mandatory goalsDate Friday December 1 2017 61859 PM

As a DBE participating in bidding process I have found that regardless of the language which claims to insurethat disadvantaged business enterprises shall not be discriminated against the only way to ensure that this does nothappen is by mandating affirmative action goals Having been overlooked time and time again because of my gender when I have submitted bids that are verycompetitive with other bidders is very frustrating I have had many instances of companies using my price to getmy non DBE competitors to lower theirs The voluntary or laudatory DBE goals do nothing to ensure a level playing fieldThe only way to ensure non-discrimination is through mandatory goals

Jackie EtterWest Star Construction of Spokane

Sent from my iPhone

From Claudia HirscheyTo Key Earl Bayne JackieSubject WSDOT DBE Goal - Comment in supportDate Tuesday December 12 2017 61937 PM

Dear Earl and Jackie The WSDOT recommended DBE Goal for FHWA contracts of 190 is a small and important increasethat can further achieve equity in WSDOTFHWA contracting I am in support of the 19 DBE Goal I also want to express my appreciation for the thoroughness of the WSDOT Disparity study and howthe study disclosed the disparity in WSDOT contracts that do not have a DBE or WBE goal ndash furtherreinforcing that all women-owned firms and minority owned firms face equity issues I remain concerned with the methodology required by the Code of Federal Regulations and case lawbecause of the dependence on the availability of firms in the calculation An unintendedconsequence of removing either gender or race from the goal is that many of these firms would goout of business the availability decreases and the formula then results in a smaller DBE goal Sincerely Claudia S Hirschey PETransportation Consulting Servicesclaudiahirscheycomcastnethttphirscheytcscom2068564988 Mobile

From Nate ThomasTo WSDOT Disparity StudySubject WSDOT Proposes DBE goal of 19Date Thursday December 7 2017 42720 PM

The WSDOT should look into similar ways the Federal Gov has handled the equal opportunity forthose that fall under the DBE status and set aside specific projects for the DBErsquos and moreimportantly UDBErsquos so these companies have better chance of landing contracts Maybe a lot 10 ofthe DBE goal to set aside for only DBEs and other 9 goal met as it is done currently with COA onlarger contracts Nate ThomasSenior EstimatorD 5095688085 | C 5099941156331 North Fancher Road | Spokane WA | 99212

The information contained in this email including any attachments is confidential and may beprivileged It is intended only for the person or entity to which it is addressed and no waiver isintended by sending this email If the reader is not the intended recipient you are herebynotified that any review retransmission dissemination or other use of or taking any action inreliance upon this information is strictly prohibited If you have received this email in errorkindly notify the sender by reply email and delete the original message from any computerThank You

From Brian FujiiTo WSDOT Disparity StudySubject WSDOT propsed DBE GoalsDate Thursday December 7 2017 110638 AM

Good morning Jackie

I wanted to comment on WSDOTs proposed DBE goal to 19 I believe WSDOTs plan toincrease the overall DBE goal to 19 will provide greater opportunities for DBE contractorsin different disciplines to participate in federally funded contracts

Without the new DBE requirement and with Proposition 200 there are limited opportunitiesfor DBE contractors in disciplines different than the typical trucking flagging and rebar Inaddition there are no incentives for general contractors to go out beyond the usual truckingflagging and rebar DBE subcontractors

Increasing the DBE goals will provide opportunities for different DBE contractors in differentdisciplines to participate in WSDOT federally funded projects

Thank you for your time

RespectfullyBrian FujiiPresident Subsurface ConstructionP 2063836478F 2069604639MDBE 4M0024998

From Forman StephanieTo Bayne JackieCc Millar Roger christinenhanmailhousegov Claudia Hirschey Sarah Corbin Jiang Yingle

efaulknerenviroissuescom Diana Giraldo Kelly CheesemanSubject WTS - Disparity Study Comment LetterDate Friday December 15 2017 71020 PMAttachments 2017_Dec 15_WTSCommentLetter_WSDOT DBE Goalpdf

Dear Ms Bayne Please find our attached letter which summarizes the WTS Puget Sound Chapterrsquos support foradvancement of women in transportation and our comment letter regarding the recent DisparityStudy Please feel free to contact me if you have any questions or would like to discuss Sincerely Stephanie S Forman PEWTS Puget Sound President Transportation Project Manager

929 108th Avenue NE Suite 1300Bellevue WA 98004D 4254681548 M 2062291745stephanieformanhdrinccom

December 15 2017

Jackie Bayne Policy and Reporting Manager

Office of Equal Opportunity

Washington State Department of Transportation

PO Box 47314

Olympia WA 98504-7314

Dear Ms Bayne

On behalf of the Puget Sound Chapter of Womenrsquos Transportation Seminar (WTS) we would

like to thank the Washington State Department of Transportation for presenting to our

organization the DBE Disparity Study results We very much appreciated the presentation by Earl

Key Director of WSDOTrsquos Office of Equal Opportunity Teresa Berntsen (Director Office of Minority

and Womens Business Enterprises) as well as Leslie Jones (Director Sound Transit Office of Small

Business Development and Labor Compliance)

Following a review of the WSDOT Disparity Study and as a result of consultation with WTS

International we would like to provide WSDOT with our comments for your consideration

As you know WTS is an organization focused exclusively on attracting retaining and advancing

women in transportation By the year 2018 there will be thousands of vacancies in the

transportation industry for qualified professionals and while women account for more than half of

the worldrsquos workforce they are a very small minority in transportation disciplines

We are pleased that the outcome of the 2017 Disparity Study that recognizes the on-going barriers

for DBEs including women-owned businesses in transportation The WSDOT recommended DBE

Goal of 190 is a small and important increase that can further achieve equity in WSDOTFHWA

contracting We are also pleased that the 2017 Disparity Study has documented the disparity in

WSDOT contracts that do not have a DBE or WBE goal ndash further reinforcing that all women-owned

firms and minority owned firms face equity issues We are encouraged that the WSDOT has asked

FHWA to rescind the 2016 waiver

While WTSrsquo mission is specific to the advancement of women we are a race-neutral organization To

this end we are also deeply concerned about the underutilization of minority owned firms There is

no equity or ldquofair playing fieldrdquo without equity for all gender and races We remained concerned with

the methodology required by the Code of Federal Regulations and case law because of the

dependence on the availability of firms in the calculation An unintended consequence of removing

either gender or race from the goal is that many of these firms would go out of business the

availability decreases and the formula then results in a smaller DBE goal This consequence is

contrary to our mission

We look forward to our continued participation in WSDOTrsquos DBE advisory group we are anticipating

notice that the 2016 waiver has been rescinded and how we can work together to continue

advancing minority and women-owned firms in the transportation field

Sincerely

WTS Puget Sound Chapter

Stephanie Forman

President

C Roger Millar Secretary WSDOT

C Representative Adam Smith 9th Congressional District Washington co Christine Nhan

WTS Puget Sound Chapter

PO Box 3461

Bellevue Washington 98009

From Dave Gent - WAPATo Bayne JackieCc Tom GaetzSubject WAPA Public Comments - RE WSDOT FHWA Disadvantaged Business Enterprise Proposed GoalDate Friday December 15 2017 14119 PMAttachments 12152017 DBE Proposed Goal - WAPA Public Comments Letterpdf

Good afternoon Jackie Please find attached WAPArsquos ldquofor the public recordrdquo comments with respect to WSDOTrsquos proposedDBE Goals FHWA funded work I assume that the Master DBE Directory was not sent to you this week so as a result we were notable to review the directory before the close of the public comment period That fact is noted withinour comment letter Thank you for your efforts Have a good weekend

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Friday December 8 2017 1219 PMTo Dave Gent - WAPA ltdavegentasphaltwacomgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hello Dave WSDOT did not take possession of this directory as part of our review process We will provide youwith the records without submitting a formal request However we need to get them from theconsultant first I will hopefully have them to provide next week I will keep you updated on therequest Have a nice weekend Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal Opportunity

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

December 15 2017

Jackie Bayne Policy Manager WSDOT Office of Equal Opportunity Delivered via e-mail to BayneJwsdotwagov RE Public Comment (as requested) to Proposed Overall DBE Goal for the FHWA (2018 ndash 2020) Ms Bayne Thank you for your presentation via webinar on December 5 2017 outlining WSDOTrsquos evaluation process used to determine the proposed overall DBE goal for the FHWA Thank you also for the Colette Holt amp Associates (CHA) DBE Advisory Group presentation made on September 14 2017 Both presentations helped to distill the findings of the 2017 Disparity Study produced by CHA In response to Earl Keyrsquos initial informal request to comment on the proposed overall DBE goal made during the DBE Advisory Committee teleconference held on October 12th we provided a list of reasons that we believe justify a lower DBE goal than is now being proposed Our initial response to Mr Keyrsquos request did not serve to influence WSDOT and the current proposed goal remains at 190 The arguments provided on October 12th against the significant increase in the proposed DBE goal (versus the previous goal and recent historic DBE participation) are repeated and supplemented below and will serve as the Asphalt Pavement Associationrsquos (WAPArsquos) official public comments

In concert with WSDOT and the OWMBE WAPA and the construction firms that WAPA represents have demonstrated a commitment to the principals of equal opportunity for all ldquoready willing and ablerdquo firms for the entire history that our DBE program has been in place WAPA has continuously demonstrated its commitment to the goals of the DBE program and for increasing the representation of disadvantaged groups within our industry as both workers and owners of firms Please recognize that WAPArsquos oversight and critique of the DBE program has always attempted to balance the principals of fair and open competition with the practical aspects of the low bid compressed schedule high performance standards demanded within the WSDOT marketplace Our comments below are meant to enhance WSDOTrsquos and OWMBErsquos understanding of the market and to hopefully have WSDOT fully consider all of the dynamics that are at play when proposing its Triennial DBE goal for FHWA projects Current DBE Capacity vs Historically Robust Market In advocating for a realistic and defensible DBE goal it has always been WAPArsquos position that it is paramount that the realities of the marketplace and true certified DBE subcontracting capacity should be a primary standard While a ldquostretchrdquo goal may appear to be progressive on its face it comes with consequences for all of the parties involved in the WSDOT federal aid contracting arena To balance the dynamics of the WSDOT contracting system the DBE goal should be tempered with the realities of the market and with a true measure of the underlying effectiveness of the DBE support services available to contractors

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 2 of 6 The first point of fact that has not been given any apparent consideration by WSDOT in its evaluation of the current capacity of certified DBErsquos is that there is an historically robust workload scheduled to be performed in the 2017 through 2022 time-frame particularly in the Puget Sound ldquoEverett to Olympiardquo corridor By WSDOTrsquos own estimates (see Attachment A) public works construction project starts in the 2018 to 2022 time-frame in this region will exceed $333 billion (B) counting the work projected from just five public entities WSDOT will be taking a decidedly ldquoback seatrdquo role during this period to Sound Transit which will have construction project starts of $226B vs WSDOTrsquos projected volume of $67B WSDOTrsquos summary publication titled Washington State Department of Transportations Proposed Federal Highway Administration Triennium Disadvantaged Business Enterprise Goal Federal Fiscal Years 2018-2020 states correctly that ldquoIncluded among the types of evidence that must be considered are the current capacity of DBEs to perform work on WSDOTrsquos federally-assisted contracts as measured by the volume of work DBEs have performed in recent yearshelliprdquo (Step Two Adjustment discussion) With the Sound Transit program being over 300 larger than the total WSDOT program in this region a sober assessment of true certified DBE capacity in the next three years needs to be considered by WSDOT If the huge construction boom over the next five years does not prompt a Step Two Adjustment then it becomes obvious that the realities of the market are being ignored by WSDOT for DBE goal setting Put another way if the 2018 through 2022 level of contracting activity does not warrant a goal adjustment what will DBE Access Barriers Not Yet Addressed The CHA 2017 Disparity Study points out multiple recommendations in Section VII that impact DBE participation and access to the market Assessments relating to those impacts and the state of maturity in addressing the CHA recommendations should be considered when assessing the DBE goal Many of the CHA recommendation have not been adequately addressed at this point in time Some of the prime examples are listed below Increase Certification and Expertise ndash The Disparity Study as explained to us includes all minority- (MBE)

and women-owned (WBE) firms that could be readily identified that perform work within Washington State and that perform work within the NAICS code framework CHA developed to cover WSDOT project work During the various presentations relating to the Disparity Study WSDOT representatives said that outreach to currently non-certified MBE amp WBE firms has increased and that WSDOT aspires to bolster its list of certified firms in the future but this effort is just beginning and the success of the effort needs to be means tested against the broader population of MBE amp WBE firms included in the CHA base line evaluation As the Disparity Study uses a much broader population of MBE WBE contractors to arrive at its conclusions (both non-certified firms and firms too large for certification) it follows that the calculated DBE proposed goal is overstated to include capacity that does not currently exist within WSDOTrsquos certified DBE framework Unless OMWBE is experiencing sudden and unprecedented success in recruiting new MBEWBE firms the DBE goal should be adjusted downward to recognize that the ldquoready willing and ablerdquo contractors that WSDOT has certified is only a subset of the total MBEWBE contracting population used in the Disparity Study evaluation

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 3 of 6

Until the promised WSDOT outreach registration efforts result in a substantial increase in available certified DBE firms it is premature to count the entire population of minority- and women-owned contractors as available to participate in WSDOT contracting It is unreasonable for WSDOT to project availability capacity using the entire MBEWBE population when only its currently truncated list of certified firms is acceptable to count toward the DBE goal

A corollary to the Increase Certification and Expertise discussion above is that the calculation of the Base Figure evidently includes the broadest practical population of MBE and WBE firms identifiable (without a review of the CHA Master DBE Directory which has not been supplied prior to the close of the public comment period the scope of the directory cannot be ascertained) If this directory includes a large population of MBEWBE firms that are not certified or are too large to be certified then the Base Figure calculation should be adjusted to reflect that certified DBE firms are a fraction of the total MBEWBE firms used to arrive at the 19 suggested DBE goal With respect to the CHA Master Directory it is our understanding the WSDOT was not given the directory as part of its evaluation of the Disparity Study and it follows that it did not evaluate the proposed DBE goal in the context of the CHA Master DBE Directory In our opinion an informed decision on adjusting the CHA baseline goal calculation can only be done after an extensive evaluation of the CHA Master DBE Directory If this has not been done WSDOT has not exercised due diligence in evaluating the context and underpinnings of the CHA Disparity Study and a certified DBE Triennium goal proposal to the FHWA is premature Increase Contract ldquoUnbundlingrdquo ndash If this proposed strategy (suggested by the CHA Study) is undertaken

certified DBE Subcontractors currently available will be engaged as Prime Contractors and the value of their prime contracts will bolster the overall percentage of certified DBE contracting but a systematic effort and strategy to ldquounbundlerdquo has not been articulated by WSDOT The key question of how this effort can be accomplished without increased cost to the taxpayers and increased inconvenience for the traveling public As noted in the CHA study (page 129 final paragraph) ldquoUnbundling must be conducted however within the constraints of the need to ensure efficiency and limit cost to the taxpayersrdquo As of this writing no overarching strategy for further unbundling with proper accountability has been articulated by WSDOT to the DBE Advisory Group

Review Insurance and Experience Requirements ndash Impediments to certified DBE participation due to

necessary insurance and experience standards cannot be solved by the prime contracting community Unless and until WSDOT puts together programs to address the burden of the substantial risks shouldered by Prime Contractors on WSDOT contracts barriers for streamlined utilization of certified DBE firms will continue to exist These market driven barriers will continue to dampen the availability of certified DBE Subcontractors that are able to perform within WSDOTrsquos strict criteria without unduly transferring risk to the Prime Contractor

Better Partnering to Overcome DBE Failures to Perform ndash Prime Contractors are held fully responsible to maintain the project schedule and are subject to project liquidated damages even when they may be struggling to deal with Subcontractor performance issues It is well-established that replacing a certified ldquocondition of awardrdquo (COA) DBE Subcontractor is very onerous and likely very costly to the Prime Contractor Unfortunately the imposition of strict and often counter-productive commercially useful function (CUF) rules often compound this issue as Prime Contractors cannot help COA DBE Subcontractors work through capacity expertise or time-related issues that impact timely performance

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 4 of 6

WSDOT needs to be a much better partner in the process of dealing with under-performing or non-performing certified DBE Subcontractors The current standard operational procedure places all of the exposure for non-performance onto the Prime WSDOT does not have an equitable system to account for non-performing or under-performing certified DBE Subcontractors hired as a condition of award (COA)

Performance Information and Training ndash Commercially useful function rules (CUF) and the lack of clear benchmark definitions for good faith effort (GFE) standards remain barriers for improving accountability within the DBE system and in turn lead to distorted DBE participation rates These items remain amorphous due to lack of training or lack of historic information Chronic uncertainty exists regarding both of these items Until WSDOT changes and improves its approach to provide transparency and certainty for both the prime bidding amp subcontracting parties true certified DBE capacity will continue to be masked and the resultant higher subcontracting costs associated with a distorted marketplace will continue to be hidden

WAPA respectfully suggests that simply adding an ldquoEstimated DBE Subcontract Premiumrdquo line to the current DBE bid forms would help to establish benchmarks that could begin to be used to ldquomeans testrdquo good faith efforts If this information had been gathered over the last 20 years of the DBE program meaningful GFE standards could have been developed and could be in place today

An in-depth review of CUF standards would also provide clarity For instance it is unclear why force account items performed by certified DBEs are currently counted at only 50 of the value of the work How was this benchmark established Has it been reviewed since imposed Did it ldquosolverdquo whatever inequity WSDOT was trying to address Better clarity may lead to more expanded opportunities for certified DBE Subcontractors

Enhanced Supportive Services and Business Development Programs ndash Unless and until stronger programs of these types are shown to be effective in boosting certified DBE business development increased DBE participation due to stronger business acumen should not be relied upon when setting the new DBE goal

Does OMWBE have a reasonable expectation that future plans for enhanced and expanded programs will be more successful than those employed in the past Assuming that certified DBE Subcontractors will be better prepared to deal with the WSDOT contracting environment than in the past should not be relied upon to boost DBE participation goals Especially troubling were the multiple references within the CHA report highlighting that DBEs believe that the staff at OMWBE lack a deep knowledge about the highway construction industry (eg Study page 129 2nd paragraph) Does OMWBE have a path forward that will address this issue and thus improve supportive services impacts

Develop a Bonding and Financing Program for SBEs ndash This is completely outside of the prime contracting

communityrsquos scope of influence WSDOT must find a way to institute changes that both protect the taxpayer and help increase certified DBE bonding capacity and access to financing ndash very large hurtles To assume that these hurtles can effectively be overcome within the 2018 ndash 2020 time frame when they have been chromic issues for the past 20 plus years of DBE program development is not rational

A helpful innovation would be for WSDOT to underwrite performance and payment bonds for certified DBE firms or to create promote a system that helps certified DBE firms obtain private bonding Bridging the gap to address capital access and performance risks (bonding) must be championed by WSDOT

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 5 of 6

Base Figure Adjustment to Address Available Subcontract Volume and DBE Prime Contracts It is a fact that mid- to large-sized MBEWBE firms that compete both as Prime Contractors and as Subcontractors are not eligible to be OMWBE certified DBEs Further the current amount of contract unbundling for greater DBE access to WSDOT prime contracting (see below) accounts for a very low dollar volume of prime contracts performed by certified DBEs Finally by specification (WSDOT standard specification 1-081) Prime Contractors are obligated to perform 30 of the total volume of the work (less specialty work) or stated another way a maximum of 70 of the dollar volume on WSDOT projects is typically available to award to subcontractors These market dynamics are NOT addressed in the Disparity Study A responsible DBE goal made absent of these facts should not be implemented A reasonable adjustment to the proposed 19 DBE goal is presented below

bull The percent of WSDOT prime contracts awarded to certified DBE firms is likely less than 5 by total WSDOT

contract volume Assuming this approximation is valid (likely very conservative) then the amount of WSDOT contract work available to certified DBE firms via subcontracting should be adjusted to account for the factors outlined above The Base Figure (19) should be adjusted to recognize that a 70 maximum subcontractor participation is available (in the numerator) and to account for the assumed 5 certified DBE prime contracts in the denominator Reasonable Base Figure Adjustment 19 (proposed) x 70 subcontracts available divide 95 of Non-Certified DBEs as Prime Contract Volume = 190 x 0737 = 140 adjusted goal This is an adjustment based on the practical dynamics of the WSDOT contracting system and it represents a more realistic look at the true subcontract volume that is available for Prime Contractors to award to certified DBE firms

Conclusions

Until the items listed above are addressed and in place it is not reasonable to believe that DBE goals can be increased by nearly 163 (from 117 to 190) When the projected robust public works contracting market is appropriately considered the true availability of certified DBE Subcontractors for WSDOT contracts will be truncated due to demand across all public works sectors With multiple strong public works programs competing for a limited population of certified DBEs the ability to meet increased WSDOT DBE goals will be severely challenged Without very clear concise and transparent good faith effort rules the ability to address DBE goals that greatly overestimate true near term certified DBE capacity will result in non-attainment bid day chaos failures to perform andor rapidly increased pricing

The clear conclusion is that at this point in time under the current circumstances without effectively instituted new programs rules procedures that could enhance the certified DBE programrsquos overall effectiveness we believe that the DBE goal should remain at or near 12 As OMWBE documents and demonstrates its future successes in improving access and eliminating capacity barriers only then should the DBE goal be re-evaluated and increased

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 6 of 6

In closing please remember that it is rare that the contracting community is asked our opinion with respect to the WSDOTrsquos DBE policies and so this letter is somewhat a vehicle to highlight collective concerns It is our belief that the majority of the Prime Contractors in Washington state support the objective of creating a level playing field for ready willing and able DBEs

If the level playing field is not yet possible in the absence of the DBE program then the key is to set realistic goals that recognize reflect and address the hard realities and market dynamics imposed by WSDOTrsquos bedrock environment of awarding contracts to the lowest cost responsible and responsive Contractor

Respectfully submitted Washington Asphalt Pavement Association

David Gent Tom Gaetz Executive Director Senior Advisor

Attachment A ndash WSDOT Central Puget Sound Public Works Contracting Projection 2018 - 2022

Con

stru

ctio

n Pr

ojec

t Sta

rts

2018

-202

2S

ound

Tra

nsit

$22

6 B

SD

OT

$08

B

Tran

sit

amp O

ther

s$1

7 B

WS

DO

T$6

7 B

Por

t of

Sea

ttle

$15

B

TOTA

L$3

33

B

Source N

ov 1

9 2

017

pres

enta

tion

to W

APA

Ann

ual M

eetin

g

Attachment A

Work (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Dave Gent - WAPA [mailtodavegentasphaltwacom] Sent Thursday December 7 2017 144 PMTo Bayne Jackie ltBayneJwsdotwagovgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hi again Jackie Irsquom fine thanks and hope you are the same Interesting The Master DBE Directory is the basis for and integral to the conclusions of the DisparityStudy Is it not then part of the information needed to fully review and comment on the DisparityStudy Was it not provided by CHA to WSDOT for review We are trying to fully understand thestudy and if this directory was part of the study why would it need to be obtained by a publicrecords disclosure It should be in the public domain and not restricted from ease of access If you are sure that a public records request is needed Irsquoll start that process but we will need tonote that point of fact when we submit our public comments If you are able to reconsider please let me know Respectfully

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Thursday December 7 2017 126 PMTo Dave Gent - WAPA ltdavegentasphaltwacomgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hello Dave I hope you are doing well

That information would likely be obtained through a public disclosure request Best Regards Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Dave Gent - WAPA [mailtodavegentasphaltwacom] Sent Thursday December 7 2017 113 PMTo Bayne Jackie ltBayneJwsdotwagovgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Jackie Can you please provide an electronic file or provide a weblink for the Master DBE Directory thatColette Holt amp Associates developed for the WSDOT Disparity Study 2017 (first referred to on Page 8of the Disparity Study) I did not see a link to this Master DBE Directory within the study Thanks

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Friday October 27 2017 1118 AMTo Kenyon Wendy ltKenyonWwsdotwagovgt Adams E W ltewadamssystemsclcomgtAdekoyaAndrew ltandrewadekoyabccomgt AlyssaBalllegwagov Anindita Mitraltamitracrea-affiliatescomgt APRISeattlehotmailcom Armstrong CharlotteltCharlieAatgwagovgt Ato Apiafi Architects PLLC ltatoaatoapiaficomgt benzfanwaorgBerntsen Teresa (OMWBE) ltTeresaBomwbewagovgt Billingsley Andrealtbillinawsdotwagovgt Bramlet Erica ltEricaBramletlegwagovgt Brooks Julius

ltBrooksJwsdotwagovgt Brown Jason ltjbrownldccorpcomgt bwallacenwlaborersorgCamden Allison ltCamdenAwsdotwagovgt carlllivingstongmailcom Cerda OscarltCerdaOwsdotwagovgt Christopher Chris ltChristCwsdotwagovgt ckerneycaawagovdanplatinumbusinessgroupcom davegentasphaltwacom David BalltDavidsignsnowmillcreekcomgt Davis Khalia ltDavisKhwsdotwagovgt Davis RaShelle (GOVltrashelledavisgovwagovgt Dayton Jo ltDaytonJwsdotwagovgt ddhondtagcwacomDebbieDriverlegwagov Dennis ltdennisahlkiewitcomgt dmcleodnwlaborersorgdrart6651gmailcom Duncan Enid lthigradeincgmailcomgt EltonltEltonwashingtonstatetruckingcomgt eprincecaawagov flemosldccorpcomfmartineznwmtnmsdcorg geoffshookatkncom glovelady ltgloveladyexcelglovescomgtGrabow Katie ltkgrabowsystemsclcomgt Guilfucci Jackie ltJackieGuilfucciskanskacomgt HealyLinda ltHealyLwsdotwagovgt Higginbotham Breanne ltHigginBwsdotwagovgt HirscheyClaudia ltclaudiahirscheycomcastnetgt Holt Colette ltcoletteholtmwbelawcomgt Huff JohnltHuffJwsdotwagovgt Iniguezchawagov JacksonMaynardlegwagov Jimmy Matta(jmattaalcantarassoccom) ltjmattaalcantarassoccomgt kellywickergovwagov Key EarlltKeyEwsdotwagovgt Kirk Jon ltjkirkwhhnfscomgt Kris Purrier ltkpurrierhwageocomgtleewabuildingtradesorg lesliejonessoundtransitorg Liz Evans ltlevansagcwacomgt LopezErin lterinlopezdeswagovgt Martha Cerna ltMarthaPSLCCORGgt Martin-Arnold EdwinaltMartinEwsdotwagovgt Mary Lerdahl ltmarydbeelectricinccomgt McCarty Hannahlthannahmccartylegwagovgt Melissa L Boyles ltmelissaboylesmwbelawcomgt Metcalf KeithltMetcalKwsdotwagovgt michaelicapaawagov Michelle ltMichelleTTCC26netgt MillarRoger ltMillarRwsdotwagovgt Nakamura Jason ltjasonnakamura1-alliancecomgtNavarroLportseattleorg olliepmt-solutionscom pastorbanksesbctacomacom PatrickHughes ltphugheshughesgroupbizgt Petersen Jodi (FHWA) ltJodiPetersendotgovgtrabbottliunaorg rcarmsteadgmailcom ricemportseattleorg Riley D ltdrileylydigcomgtSeling ltSelingjpfranciscomgt sherryharrisergosynchcom Stell MellodyltStellMwsdotwagovgt terigobintulaliptribes-nsngov timwilliamfactorycom tinaterra-tdicom tkellyldccorpcom tomgaetzmsncom vcollinsacec-waorgverlenejazzmsncom Wang Albert ltWangAatgwagovgt Waugh GregltGregWMaxKuneyComgt Yates Henry ltYatesHWSDOTWAGOVgtCc Tom Gaetz lttomgaetzmsncomgt Dave Gent - WAPA ltdavegentasphaltwacomgt VanCollins ltvcollinsacec-waorggt Daniel Seydel II ltdanplatinumbusinessgroupcomgt MaynardJackson ltJacksonMaynardlegwagovgt Carl Livingston ltcarlllivingstongmailcomgt DonMcLeod ltdmcleodnwlaborersorggt JIMMY MATTA ltjimmymattamsncomgt Prince Ed(CAAA) lteprincecaawagovgt David DHondt ltddhondtagcwacomgt Irene Reyesltgloveladyexcelsupplycompanycomgt McDaniel Craig ltMcDaniCwsdotwagovgtsherryharrisergosynchcomSubject WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Good morning On Monday October 30th WSDOT will be releasing the proposed overall Federal HighwayAdministration Disadvantaged Business Enterprise goal attached for public comment throughDecember 15 2017 This overall DBE goal is based upon the recently completely DBE ProgramDisparity Study WSDOT is proposing a 19 percent overall DBE participation goal on Federal Highway

Administration-funded projects for federal fiscal years 2018 through 2020 DBE goals fortransportation projects that receive federal funds represent a percentage of the value of work inwhich minority- and women-owned businesses should participate Once finalized and submitted toFHWA early next year the goal will be effective through Sept 30 2020

The purpose of the DBE program is to create a level playing field for firms owned and operated bydisadvantaged individuals wanting to participate in federally assisted highway transit and aviationprograms The attached overall DBE goal is for FHWA funded projects WSDOT will be updating theFTA and FAA overall DBE goals in the near future

If you have any questions please contact Earl Key Director of the Office of Equal Opportunity at3607057091 or KeyEwsdotwagov Thank you Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

  • Proof-Of-Publicationpdf
    • Mediapdf
      • AGC
      • Daily Journal
      • Daily Medium
      • DBEGood
      • OMWBE
      • Seattle Medium
      • Tabor 100
      • The Chronicle
      • Tukwila
        • King County
          • Public-Comments-20180111pdf
            • 19 DBE Requirement(1)
            • AGC Comments on Proposed 10 Goad
            • Backstrom Curb amp Sidewalk
            • comments on WSDOT proposed DBE goal
            • Cowlitz County Public Works
            • DBE Contracting goals
            • DBE Goal
            • DBE Program Disparity Study
            • Disparity Study Comments from City of Spokane
            • FW_ WSDOT News - WSDOT seeks comments on propos
            • Proposed DBE Goals
            • RE_ DBE Contracting Goal Comments
            • Re_ DBE Goal Comments
            • Re_ Seydel Dan - WSDOT Disparity Study Present
            • Support for WSDOTs proposed DBE goal
            • Why we need mandatory goals
            • WSDOT DBE Goal - Comment in support
            • WSDOT Proposes DBE goal of 19
            • WSDOT propsed DBE Goals
            • WTS - Disparity Study Comment Letter

From Michelle WolcottTo Bayne JackieCc Robideau Christopher LSubject RE DBE Contracting Goal CommentsDate Tuesday November 7 2017 65448 AMAttachments image001png

Thank you JackieWhat a relief to know that we have been heard and are not the only small business facing thisstruggle Your email is comforting

Yes you can provide us with additional assistanceLet me introduce my boss and Senior Vice President of Red Plains Professional Chris Robideau

Chris will be your contact from here since I will be leaving the company November 17th As a WA DBE we are ldquoeligible for limited DBE Support Services (SS) funding when funds becomeavailablerdquo When will this happen And are we registered or on a list to receive fundingIs the WSDOT ICR Training a prerequisite for the funding Or just helpful knowledge

Thank you for your time Jackie I will follow through with the training

Michelle Wolcott EIT Quality Control Engineer

2103 NE 129th Street Suite 201 Vancouver WA 98686 Office (360) 448-7999 Fax (360) 258-0274

wwwred-plainscom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Monday November 6 2017 332 PMTo Michelle Wolcott ltMichelleWolcottred-plainscomgtSubject RE DBE Contracting Goal Comments

Hi Michelle

Thank you for your interest in doing business with WSDOT I apologize for the lack of informationyou have come up against in your attempts to attain access to WSDOT ICR program

As you may well know WSDOT has recently completed a state wide agency specific diversity studyAnecdotal comments submitted with the study concur with your experience Not only did somerespondents find it difficult to become prequalified they also commented that the required indirectrate of 110 percent is too low to be profitable These requirements are currently under advisementby WSDOT and new DBE program requirements are currently in the process of seeking public input

As you are an OMWBE certified DBE in Washington State you will be eligible for limited DBE SupportServices (SS) funding when these funds become available At that time funds may become availableto assist you in your struggle to attain ICR eligibility Here is a link to WSDOTrsquos Indirect Cost RateTraining httpswwwwsdotwagovAuditICRTraininghtm If you would like me to find additionaltraining or information please let me know

If I can provide additional assistance of information please let me know

Best Regards

Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Michelle Wolcott [mailtoMichelleWolcottred-plainscom] Sent Tuesday October 31 2017 835 AMTo WSDOT Disparity Study ltDisparityStudyWSDOTWAGOVgtSubject DBE Contracting Goal Comments

HelloI have been in contact with WSDOT for 6 months sharing my disparaging story of beinga small DBE unable to submit SOQs for projects requiring a WSDOT Audited IndirectCost Rate Approval We do not have an in-house accountant and our outsideaccountant has explained to get all the paperwork together for WSDOT would take 40hours of work $9000 annually We cannot justify this cost to submit on a project thatwe may not acquire We have been directed to seek financial assistance from WSDOT Federal SBA andWashington State Office for Women and Minority Owned Enterprises all of whichprovided negative responses

As a DBE business in 11 states we are supporting the 19 incentive for federallyfunded contracts but we are frustrated in the fact that we will not be one of the luckyfew to participateWe have been in business 20 years From our Vancouver Washington office our clientsare the Native American tribes across the country with all contracts federally funded This summer alone the WSDOT ICR Approval has squashed our ability to submit on twoprojects that we were perfectly qualified to performI have attached previous emails to show a sample of who I have been dealing with

Thank you

Michelle Wolcott EIT Quality Control Engineer

ltimage001pnggt

2103 NE 129th Street Suite 201 Vancouver WA 98686 Office (360) 448-7999 Fax (360) 258-0274 wwwred-plainscom

From Michelle Wolcott Sent Monday July 10 2017 954 AMTo Harvey Schatzie ltHarveySwsdotwagovgtSubject RE WSDOT Indirect Cost Rate Process

Good Morning Schatzie

This is Michelle Wolcott from Red We spoke Friday June 30th about the ICRprocess and you were very encouraging I relayed the information to my boss who ishere in Vancouver then he shared with the president bookkeeper and our accountantin Oklahoma We had FAR compliance with Oklahoma DOT in 2015 so we are noteligible for the Safe Harbor Program Our account said our timekeeping system doesnot breakdown the hours and pay in the format WSDOT wants to have it presented andto get the documents in order would take the CPA and an assistant $9000 in paidhours of work It turns out this would have to be annually The other option is to hirean outside CPA firm to do the audit for us at $20000 annually

Our president said in the past we received funding assistance from the Stateof Oklahoma to get our ICR approval Does WSDOT offer any financial assistance for small businesses to reach compliance We are also a DBE in WA I have requested the same information from WA PTAC at theVancouver Chamber of Commerce and from WA Office of Minority and Women OwnedBusiness Enterprises and they both said there was nothing but suggested to askWSDOTThank you for your helpMichelle Wolcott EIT

Hello Michelle sorry but I am not aware of any grants But I was looking at this andthere is a POC at the bottom you may try to discuss the audit issuesHollyHolly BoehmeBusiness Opportunity Specialist | 8(a) Business Development ProgramUS Small Business Administration bull Seattle District Office

Hello Michelle -

Thank you for your email Im not aware of any funding available for thispurpose but do agree its quite a bit for a DBE firm to have as an expense Mostof the firms I work with do a lot more work on the Oregon side so perhaps thereare programs available that I just havent heard of Im copying my colleagueHoly Boehme in our Seattle District Office to see if they are aware of any suchassistance

Holly might there be some small business incubators or other resources availablein WA to help a small firm with the expense of getting a WSDOT AuditedIndirect Cost Rate approval Please reply all with anything you may have

Thank you

Yuri Yoshida Dyson Business Opportunity SpecialistUS SMALL BUSINESS ADMINISTRATION Portland District OfficePhone 503-326-6692 Fax 202-292-3872 wwwsbagovor

From Troy HalbergTo Bayne JackieSubject Re DBE Goal CommentsDate Wednesday December 13 2017 35533 PM

JackieToday was another example of why the goals should not be raised There were 2 jobs which Iwas low on and did not get due to the high goals This is exactly what will happen when thegoals get raised The first job was the 9180 Anacortes Ferry Paving Northeast Electric $244924 and UDBE $318000 Second job was the 9172 SR 9 East Junction Job Northeast Electric $68503 and UDBE $76300

Does this seem like a good way to spend the tax payer money I do not see how we are tosurvive if the goals get to 21

Thanks

Troy HalbergOffice360-225-7004Cell360-931-3990Fax360-225-7001

On Thu Nov 30 2017 at 1131 AM Bayne Jackie ltBayneJwsdotwagovgt wrote

Good Morning Troy

Thank you for taking the time to provide us with your experiences with the DBE Program TheWashington State Department of Transportation takes the public involvement process veryseriously and your comments will be taken into consideration prior to a final decision regardingthe overall DBE program goal

If I can be of further assistance please let me know

Best Regards

Jackie Bayne

Policy and Reporting Manager

WSDOT Office of Equal Opportunity

Work (360) 705-7084

Cell (360) 338-5783

BayneJwsdotwagov

From Troy Halberg [mailtotroyhnellcnet] Sent Wednesday November 29 2017 144 PMTo WSDOT Disparity Study ltDisparityStudyWSDOTWAGOVgtSubject DBE Goal Comments

If these goals are to be set that high this would make us as a non DBE small contractor at amajor disadvantage With these high of goals this is like handing all of the DBE electricalcontractors every job These general contractors will have no option but to use thembecause of the goals This should not go into effect We have been low on several jobs in thepast and have not gotten them do to the goals being 18 When this goes on it puts all therest of us contractors at a disadvantage Please consider the smaller non DBE contractorsthat are looking to survive as well

Thanks

Troy Halberg

Office360-225-7004

Cell360-931-3990

Fax360-225-7001

From Daniel Seydel IITo Bayne JackieCc Key Earl daneiwashingtonorg Nadeem Ismail Mussie Tewelde (mteweldehydro2geotechcom)

graceflyrightaolcom Mary Wenner Watkinson LarrySubject Re Seydel Dan - WSDOT Disparity Study Presentation Public TestimonyDate Friday December 8 2017 30323 PM

Jackie

It was my hope that the comments would be put into record I was also hoping that you wouldnot have to be the one having to formulate responses for each clarification If that is the caseI know you are swamped and will then I just ask my comments be only part of the recordHowever if there is dedicated staff that is going to be compiling and responding to theclarification then the below questions would be the priorities of most interest

These were questions unrelated to the disparity study and hopefully should be doable

1) Do you have any reports on your outcomes from the past 5 years on DBE support servicesand specific key performance measures from previous years funding (ie how many firmsutilized what was the objectives were objectives met did outcomes meet total satisfaction ifnot why next steps what was the firms capacity before and after services were performed (iesales employees bonding if applicable insurance equipment line of credit if applicablenumbertype of customers how are they doing now etc))

2) What other changes or improvements other than allowing DBES to select their own serviceproviders and a staff change will be a part of this new program

3) Was consideration to provide the new mentor protege consultant rather than separating theactivities into support services andor technical assistance

Disparity study clarifications

1) Will WSDOT consider sponsoring legislation to support the policy changes and goalincreases to insure manditory goals wont be necessary

a) If not what measures will you grant primes to operate outside the box (ie entertain bestvalue over low bid modify responsiveness by subs to require adherence to meeting voluntarygoals developing standards around federally funded gccm and other low bid procurementsthat give powers to primes to meet objectives including but not limited to mentor protegerelationships joint ventures bond waiving techniques cash flow assistance material andequipment acquisition manufacturer development specifications that have only DBES orinclude equal number of DBES as non DBES as approved installers etc)

2) Will the disparity study consultant be available for implementation or information gatheringfrom other regions

5) Will WSDOT be hiring more diverse staff amp professionaltechnical service providers inother departments outside OEO to insure policies commitments and evaluations areperformed in manner that improves diversity that reflects the communities WSDOT serves bythoughtful and legal efforts increase participation thus creating successful outcomes includingpartnerships and collaborations

Thank you and Merry Christmas

Hi Dan

Thank you for providing such thoughtful public comments questions and testimony

Regarding your public testimony below - I do not believe I am not able to answer questions ifthey are public comments Please let me know what part of this email you would likeclarification on and what part you would like considered public testimony

I appreciate your thoughtful consideration of WSDOTrsquos implementation of our civil rightsprograms

Best Regards

Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

DIDaniel Seydel IIFyi Daniel J Seydel II Platinum Group LLC 2064060844 f) 2062999934wwwplatinumbusinessgroupcom Small Business is the Answer FREE TRAINING FORENTREPRENEURS amp JOB SEEKERS - Polish your skills or make your firm standout thanksto the EntrepreneurialThu 233pDI

Daniel Seydel IIThu 1272017 1123 AMInbox Sent ItemsShow all 7 recipientsTobaynejwsdotwagov ltBayneJwsdotwagovgtJackie

Per your request below are my questions and comments some of which were verbally sharedyesterday

Congratulations on receiving the blessing of additional technical assistance dollars andcompleting the DBE Disparity Study per your report

1) Do you have any reports on your outcomes from the past 5 years on DBE support servicesand specific key performance measures from previous years funding (ie how many firmsutilized what was the objectives were objectives met did outcomes meet total satisfaction ifnot why next steps what was the firms capacity before and after services were performed (ie

sales employees bonding if applicable insurance equipment line of credit if applicablenumbertype of customers how are they doing now etc))

2) What other changes or improvements other than allowing DBES to select their own serviceproviders and a staff change will be a part of this new program

3) Was consideration to provide the new mentor protege consultant rather than separating theactivities into support services andor technical assistance

Disparity study clarifications andor comments

1) Will WSDOT consider sponsoring legislation to support the policy changes and goalincreases to insure manditory goals wont be necessary

a) If not what measures will you grant primes to operate outside the box (ie entertain bestvalue over low bid modify responsiveness by subs to require adherence to meeting voluntarygoals developing standards around federally funded gccm and other low bid procurementsthat give powers to primes to meet objectives including but not limited to mentor protegerelationships joint ventures bond waiving techniques cash flow assistance material andequipment acquisition manufacturer development specifications that have only DBES orinclude equal number of DBES as non DBES as approved installers etc)

2) Will the disparity study consultant be available for implementation or information gatheringfrom other regions

3) What lessons did WSDOT learn that it did not know from the other study(s)

4) What would WSDOT do different (ie scope time line process approach etc)

5) Will WSDOT be hiring more diverse staff amp professionaltechnical service providers inother departments outside OEO to insure policies commitments and evaluations areperformed in manner that improves diversity that reflects the communities WSDOT serves bythoughtful and legal efforts increase participation thus creating successful outcomes includingpartnerships and collaborations

Daniel J Seydel IIPlatinum Group LLC 2064060844f) 2062999934wwwplatinumbusinessgroupcom

Small Business is the Answer

FREE TRAINING FOR ENTREPRENEURS amp JOB SEEKERS - Polish your skills or makeyour firm standout thanks to the Entrepreneurial Institute of Washington

httpswwwyoutubecomchannelUCKL5YeVxL29HnNxqnb6hmXA

LIKE US on FaceBook if an Active Professional Development workshop provided by EIW

Construction University helps your firm or has benefited you

httpswwwfacebookcomEIWashingtonref=hl

From Bayne Jackie ltBayneJwsdotwagovgtSent Friday December 8 2017 10139 PMTo Daniel Seydel IICc Key Earl daneiwashingtonorg Nadeem Ismail Mussie Tewelde(mteweldehydro2geotechcom) graceflyrightaolcom Mary Wenner Watkinson LarrySubject RE Seydel Dan - WSDOT Disparity Study Presentation Public Testimony Hi Dan Thank you for providing such thoughtful public comments questions and testimony Regarding your public testimony below - I do not believe I am not able to answer questions if theyare public comments Please let me know what part of this email you would like clarification on andwhat part you would like considered public testimony I appreciate your thoughtful consideration of WSDOTrsquos implementation of our civil rights programs Best Regards Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov From Daniel Seydel II [mailtodanplatinumbusinessgroupcom] Sent Thursday December 7 2017 1123 AMTo Bayne Jackie ltBayneJwsdotwagovgtCc Key Earl ltKeyEwsdotwagovgt daneiwashingtonorg Nadeem Ismailltnipaintingearthlinknetgt Mussie Tewelde (mteweldehydro2geotechcom)ltmteweldehydro2geotechcomgt graceflyrightaolcom Mary Wennerltmwenn0108yahoocomgtSubject Seydel Dan - WSDOT Disparity Study Presentation Public Testimony Jackie

Per your request below are my questions and comments some of which were verbally sharedyesterday

Congratulations on receiving the blessing of additional technical assistance dollars andcompleting the DBE Disparity Study per your report

1) Do you have any reports on your outcomes from the past 5 years on DBE support servicesand specific key performance measures from previous years funding (ie how many firmsutilized what was the objectives were objectives met did outcomes meet total satisfaction ifnot why next steps what was the firms capacity before and after services were performed (iesales employees bonding if applicable insurance equipment line of credit if applicablenumbertype of customers how are they doing now etc))

2) What other changes or improvements other than allowing DBES to select their own serviceproviders and a staff change will be a part of this new program

3) Was consideration to provide the new mentor protege consultant rather than separating theactivities into support services andor technical assistance

Disparity study clarifications andor comments

1) Will WSDOT consider sponsoring legislation to support the policy changes and goalincreases to insure manditory goals wont be necessary

a) If not what measures will you grant primes to operate outside the box (ie entertain bestvalue over low bid modify responsiveness by subs to require adherence to meeting voluntarygoals developing standards around federally funded gccm and other low bid procurementsthat give powers to primes to meet objectives including but not limited to mentor protegerelationships joint ventures bond waiving techniques cash flow assistance material andequipment acquisition manufacturer development specifications that have only DBES orinclude equal number of DBES as non DBES as approved installers etc)

2) Will the disparity study consultant be available for implementation or information gatheringfrom other regions

3) What lessons did WSDOT learn that it did not know from the other study(s)

4) What would WSDOT do different (ie scope time line process approach etc)

5) Will WSDOT be hiring more diverse staff amp professionaltechnical service providers inother departments outside OEO to insure policies commitments and evaluations areperformed in manner that improves diversity that reflects the communities WSDOT serves bythoughtful and legal efforts increase participation thus creating successful outcomes includingpartnerships and collaborations

Thank you for your hard work

Daniel J Seydel IIPlatinum Group LLC2064060844f) 2062999934wwwplatinumbusinessgroupcom

Small Business is the Answer

FREE TRAINING FOR ENTREPRENEURS amp JOB SEEKERS - Polish your skills or makeyour firm standout thanks to the Entrepreneurial Institute of Washington

httpswwwyoutubecomchannelUCKL5YeVxL29HnNxqnb6hmXA

LIKE US on FaceBook if an Active Professional Development workshop provided by EIWConstruction University helps your firm or has benefited you

httpswwwfacebookcomEIWashingtonref=hl

From Erin EhlingerTo Bayne JackieSubject Support for WSDOTs proposed DBE goalDate Wednesday December 13 2017 115417 AM

I am writing to support the WSDOT recommended DBE Goal for FHWA contracts of 190 I also want to express my appreciation for the thoroughness of the WSDOT Disparity study and howthe study disclosed the disparity in WSDOT contracts that do not have a DBE or WBE goal ndash furtherreinforcing that all women-owned firms and minority owned firms face equity issues I remain concerned with the methodology required by the Code of Federal Regulations and case lawbecause of the dependence on the availability of firms in the calculation An unintendedconsequence of removing either gender or race from the goal is that many of these firms would goout of business the availability decreases and the formula then results in a smaller DBE goal Pleaselet me know how I can help influence a change to the CFR Thank you Erin Ehlinger

Erin Ehlinger PEPresident

24036 SE 47th StSammamish WA 98029erinehlingersmartcitytrafficcom425-221-0320

From Jackie EtterTo WSDOT Disparity StudySubject Why we need mandatory goalsDate Friday December 1 2017 61859 PM

As a DBE participating in bidding process I have found that regardless of the language which claims to insurethat disadvantaged business enterprises shall not be discriminated against the only way to ensure that this does nothappen is by mandating affirmative action goals Having been overlooked time and time again because of my gender when I have submitted bids that are verycompetitive with other bidders is very frustrating I have had many instances of companies using my price to getmy non DBE competitors to lower theirs The voluntary or laudatory DBE goals do nothing to ensure a level playing fieldThe only way to ensure non-discrimination is through mandatory goals

Jackie EtterWest Star Construction of Spokane

Sent from my iPhone

From Claudia HirscheyTo Key Earl Bayne JackieSubject WSDOT DBE Goal - Comment in supportDate Tuesday December 12 2017 61937 PM

Dear Earl and Jackie The WSDOT recommended DBE Goal for FHWA contracts of 190 is a small and important increasethat can further achieve equity in WSDOTFHWA contracting I am in support of the 19 DBE Goal I also want to express my appreciation for the thoroughness of the WSDOT Disparity study and howthe study disclosed the disparity in WSDOT contracts that do not have a DBE or WBE goal ndash furtherreinforcing that all women-owned firms and minority owned firms face equity issues I remain concerned with the methodology required by the Code of Federal Regulations and case lawbecause of the dependence on the availability of firms in the calculation An unintendedconsequence of removing either gender or race from the goal is that many of these firms would goout of business the availability decreases and the formula then results in a smaller DBE goal Sincerely Claudia S Hirschey PETransportation Consulting Servicesclaudiahirscheycomcastnethttphirscheytcscom2068564988 Mobile

From Nate ThomasTo WSDOT Disparity StudySubject WSDOT Proposes DBE goal of 19Date Thursday December 7 2017 42720 PM

The WSDOT should look into similar ways the Federal Gov has handled the equal opportunity forthose that fall under the DBE status and set aside specific projects for the DBErsquos and moreimportantly UDBErsquos so these companies have better chance of landing contracts Maybe a lot 10 ofthe DBE goal to set aside for only DBEs and other 9 goal met as it is done currently with COA onlarger contracts Nate ThomasSenior EstimatorD 5095688085 | C 5099941156331 North Fancher Road | Spokane WA | 99212

The information contained in this email including any attachments is confidential and may beprivileged It is intended only for the person or entity to which it is addressed and no waiver isintended by sending this email If the reader is not the intended recipient you are herebynotified that any review retransmission dissemination or other use of or taking any action inreliance upon this information is strictly prohibited If you have received this email in errorkindly notify the sender by reply email and delete the original message from any computerThank You

From Brian FujiiTo WSDOT Disparity StudySubject WSDOT propsed DBE GoalsDate Thursday December 7 2017 110638 AM

Good morning Jackie

I wanted to comment on WSDOTs proposed DBE goal to 19 I believe WSDOTs plan toincrease the overall DBE goal to 19 will provide greater opportunities for DBE contractorsin different disciplines to participate in federally funded contracts

Without the new DBE requirement and with Proposition 200 there are limited opportunitiesfor DBE contractors in disciplines different than the typical trucking flagging and rebar Inaddition there are no incentives for general contractors to go out beyond the usual truckingflagging and rebar DBE subcontractors

Increasing the DBE goals will provide opportunities for different DBE contractors in differentdisciplines to participate in WSDOT federally funded projects

Thank you for your time

RespectfullyBrian FujiiPresident Subsurface ConstructionP 2063836478F 2069604639MDBE 4M0024998

From Forman StephanieTo Bayne JackieCc Millar Roger christinenhanmailhousegov Claudia Hirschey Sarah Corbin Jiang Yingle

efaulknerenviroissuescom Diana Giraldo Kelly CheesemanSubject WTS - Disparity Study Comment LetterDate Friday December 15 2017 71020 PMAttachments 2017_Dec 15_WTSCommentLetter_WSDOT DBE Goalpdf

Dear Ms Bayne Please find our attached letter which summarizes the WTS Puget Sound Chapterrsquos support foradvancement of women in transportation and our comment letter regarding the recent DisparityStudy Please feel free to contact me if you have any questions or would like to discuss Sincerely Stephanie S Forman PEWTS Puget Sound President Transportation Project Manager

929 108th Avenue NE Suite 1300Bellevue WA 98004D 4254681548 M 2062291745stephanieformanhdrinccom

December 15 2017

Jackie Bayne Policy and Reporting Manager

Office of Equal Opportunity

Washington State Department of Transportation

PO Box 47314

Olympia WA 98504-7314

Dear Ms Bayne

On behalf of the Puget Sound Chapter of Womenrsquos Transportation Seminar (WTS) we would

like to thank the Washington State Department of Transportation for presenting to our

organization the DBE Disparity Study results We very much appreciated the presentation by Earl

Key Director of WSDOTrsquos Office of Equal Opportunity Teresa Berntsen (Director Office of Minority

and Womens Business Enterprises) as well as Leslie Jones (Director Sound Transit Office of Small

Business Development and Labor Compliance)

Following a review of the WSDOT Disparity Study and as a result of consultation with WTS

International we would like to provide WSDOT with our comments for your consideration

As you know WTS is an organization focused exclusively on attracting retaining and advancing

women in transportation By the year 2018 there will be thousands of vacancies in the

transportation industry for qualified professionals and while women account for more than half of

the worldrsquos workforce they are a very small minority in transportation disciplines

We are pleased that the outcome of the 2017 Disparity Study that recognizes the on-going barriers

for DBEs including women-owned businesses in transportation The WSDOT recommended DBE

Goal of 190 is a small and important increase that can further achieve equity in WSDOTFHWA

contracting We are also pleased that the 2017 Disparity Study has documented the disparity in

WSDOT contracts that do not have a DBE or WBE goal ndash further reinforcing that all women-owned

firms and minority owned firms face equity issues We are encouraged that the WSDOT has asked

FHWA to rescind the 2016 waiver

While WTSrsquo mission is specific to the advancement of women we are a race-neutral organization To

this end we are also deeply concerned about the underutilization of minority owned firms There is

no equity or ldquofair playing fieldrdquo without equity for all gender and races We remained concerned with

the methodology required by the Code of Federal Regulations and case law because of the

dependence on the availability of firms in the calculation An unintended consequence of removing

either gender or race from the goal is that many of these firms would go out of business the

availability decreases and the formula then results in a smaller DBE goal This consequence is

contrary to our mission

We look forward to our continued participation in WSDOTrsquos DBE advisory group we are anticipating

notice that the 2016 waiver has been rescinded and how we can work together to continue

advancing minority and women-owned firms in the transportation field

Sincerely

WTS Puget Sound Chapter

Stephanie Forman

President

C Roger Millar Secretary WSDOT

C Representative Adam Smith 9th Congressional District Washington co Christine Nhan

WTS Puget Sound Chapter

PO Box 3461

Bellevue Washington 98009

From Dave Gent - WAPATo Bayne JackieCc Tom GaetzSubject WAPA Public Comments - RE WSDOT FHWA Disadvantaged Business Enterprise Proposed GoalDate Friday December 15 2017 14119 PMAttachments 12152017 DBE Proposed Goal - WAPA Public Comments Letterpdf

Good afternoon Jackie Please find attached WAPArsquos ldquofor the public recordrdquo comments with respect to WSDOTrsquos proposedDBE Goals FHWA funded work I assume that the Master DBE Directory was not sent to you this week so as a result we were notable to review the directory before the close of the public comment period That fact is noted withinour comment letter Thank you for your efforts Have a good weekend

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Friday December 8 2017 1219 PMTo Dave Gent - WAPA ltdavegentasphaltwacomgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hello Dave WSDOT did not take possession of this directory as part of our review process We will provide youwith the records without submitting a formal request However we need to get them from theconsultant first I will hopefully have them to provide next week I will keep you updated on therequest Have a nice weekend Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal Opportunity

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

December 15 2017

Jackie Bayne Policy Manager WSDOT Office of Equal Opportunity Delivered via e-mail to BayneJwsdotwagov RE Public Comment (as requested) to Proposed Overall DBE Goal for the FHWA (2018 ndash 2020) Ms Bayne Thank you for your presentation via webinar on December 5 2017 outlining WSDOTrsquos evaluation process used to determine the proposed overall DBE goal for the FHWA Thank you also for the Colette Holt amp Associates (CHA) DBE Advisory Group presentation made on September 14 2017 Both presentations helped to distill the findings of the 2017 Disparity Study produced by CHA In response to Earl Keyrsquos initial informal request to comment on the proposed overall DBE goal made during the DBE Advisory Committee teleconference held on October 12th we provided a list of reasons that we believe justify a lower DBE goal than is now being proposed Our initial response to Mr Keyrsquos request did not serve to influence WSDOT and the current proposed goal remains at 190 The arguments provided on October 12th against the significant increase in the proposed DBE goal (versus the previous goal and recent historic DBE participation) are repeated and supplemented below and will serve as the Asphalt Pavement Associationrsquos (WAPArsquos) official public comments

In concert with WSDOT and the OWMBE WAPA and the construction firms that WAPA represents have demonstrated a commitment to the principals of equal opportunity for all ldquoready willing and ablerdquo firms for the entire history that our DBE program has been in place WAPA has continuously demonstrated its commitment to the goals of the DBE program and for increasing the representation of disadvantaged groups within our industry as both workers and owners of firms Please recognize that WAPArsquos oversight and critique of the DBE program has always attempted to balance the principals of fair and open competition with the practical aspects of the low bid compressed schedule high performance standards demanded within the WSDOT marketplace Our comments below are meant to enhance WSDOTrsquos and OWMBErsquos understanding of the market and to hopefully have WSDOT fully consider all of the dynamics that are at play when proposing its Triennial DBE goal for FHWA projects Current DBE Capacity vs Historically Robust Market In advocating for a realistic and defensible DBE goal it has always been WAPArsquos position that it is paramount that the realities of the marketplace and true certified DBE subcontracting capacity should be a primary standard While a ldquostretchrdquo goal may appear to be progressive on its face it comes with consequences for all of the parties involved in the WSDOT federal aid contracting arena To balance the dynamics of the WSDOT contracting system the DBE goal should be tempered with the realities of the market and with a true measure of the underlying effectiveness of the DBE support services available to contractors

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 2 of 6 The first point of fact that has not been given any apparent consideration by WSDOT in its evaluation of the current capacity of certified DBErsquos is that there is an historically robust workload scheduled to be performed in the 2017 through 2022 time-frame particularly in the Puget Sound ldquoEverett to Olympiardquo corridor By WSDOTrsquos own estimates (see Attachment A) public works construction project starts in the 2018 to 2022 time-frame in this region will exceed $333 billion (B) counting the work projected from just five public entities WSDOT will be taking a decidedly ldquoback seatrdquo role during this period to Sound Transit which will have construction project starts of $226B vs WSDOTrsquos projected volume of $67B WSDOTrsquos summary publication titled Washington State Department of Transportations Proposed Federal Highway Administration Triennium Disadvantaged Business Enterprise Goal Federal Fiscal Years 2018-2020 states correctly that ldquoIncluded among the types of evidence that must be considered are the current capacity of DBEs to perform work on WSDOTrsquos federally-assisted contracts as measured by the volume of work DBEs have performed in recent yearshelliprdquo (Step Two Adjustment discussion) With the Sound Transit program being over 300 larger than the total WSDOT program in this region a sober assessment of true certified DBE capacity in the next three years needs to be considered by WSDOT If the huge construction boom over the next five years does not prompt a Step Two Adjustment then it becomes obvious that the realities of the market are being ignored by WSDOT for DBE goal setting Put another way if the 2018 through 2022 level of contracting activity does not warrant a goal adjustment what will DBE Access Barriers Not Yet Addressed The CHA 2017 Disparity Study points out multiple recommendations in Section VII that impact DBE participation and access to the market Assessments relating to those impacts and the state of maturity in addressing the CHA recommendations should be considered when assessing the DBE goal Many of the CHA recommendation have not been adequately addressed at this point in time Some of the prime examples are listed below Increase Certification and Expertise ndash The Disparity Study as explained to us includes all minority- (MBE)

and women-owned (WBE) firms that could be readily identified that perform work within Washington State and that perform work within the NAICS code framework CHA developed to cover WSDOT project work During the various presentations relating to the Disparity Study WSDOT representatives said that outreach to currently non-certified MBE amp WBE firms has increased and that WSDOT aspires to bolster its list of certified firms in the future but this effort is just beginning and the success of the effort needs to be means tested against the broader population of MBE amp WBE firms included in the CHA base line evaluation As the Disparity Study uses a much broader population of MBE WBE contractors to arrive at its conclusions (both non-certified firms and firms too large for certification) it follows that the calculated DBE proposed goal is overstated to include capacity that does not currently exist within WSDOTrsquos certified DBE framework Unless OMWBE is experiencing sudden and unprecedented success in recruiting new MBEWBE firms the DBE goal should be adjusted downward to recognize that the ldquoready willing and ablerdquo contractors that WSDOT has certified is only a subset of the total MBEWBE contracting population used in the Disparity Study evaluation

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 3 of 6

Until the promised WSDOT outreach registration efforts result in a substantial increase in available certified DBE firms it is premature to count the entire population of minority- and women-owned contractors as available to participate in WSDOT contracting It is unreasonable for WSDOT to project availability capacity using the entire MBEWBE population when only its currently truncated list of certified firms is acceptable to count toward the DBE goal

A corollary to the Increase Certification and Expertise discussion above is that the calculation of the Base Figure evidently includes the broadest practical population of MBE and WBE firms identifiable (without a review of the CHA Master DBE Directory which has not been supplied prior to the close of the public comment period the scope of the directory cannot be ascertained) If this directory includes a large population of MBEWBE firms that are not certified or are too large to be certified then the Base Figure calculation should be adjusted to reflect that certified DBE firms are a fraction of the total MBEWBE firms used to arrive at the 19 suggested DBE goal With respect to the CHA Master Directory it is our understanding the WSDOT was not given the directory as part of its evaluation of the Disparity Study and it follows that it did not evaluate the proposed DBE goal in the context of the CHA Master DBE Directory In our opinion an informed decision on adjusting the CHA baseline goal calculation can only be done after an extensive evaluation of the CHA Master DBE Directory If this has not been done WSDOT has not exercised due diligence in evaluating the context and underpinnings of the CHA Disparity Study and a certified DBE Triennium goal proposal to the FHWA is premature Increase Contract ldquoUnbundlingrdquo ndash If this proposed strategy (suggested by the CHA Study) is undertaken

certified DBE Subcontractors currently available will be engaged as Prime Contractors and the value of their prime contracts will bolster the overall percentage of certified DBE contracting but a systematic effort and strategy to ldquounbundlerdquo has not been articulated by WSDOT The key question of how this effort can be accomplished without increased cost to the taxpayers and increased inconvenience for the traveling public As noted in the CHA study (page 129 final paragraph) ldquoUnbundling must be conducted however within the constraints of the need to ensure efficiency and limit cost to the taxpayersrdquo As of this writing no overarching strategy for further unbundling with proper accountability has been articulated by WSDOT to the DBE Advisory Group

Review Insurance and Experience Requirements ndash Impediments to certified DBE participation due to

necessary insurance and experience standards cannot be solved by the prime contracting community Unless and until WSDOT puts together programs to address the burden of the substantial risks shouldered by Prime Contractors on WSDOT contracts barriers for streamlined utilization of certified DBE firms will continue to exist These market driven barriers will continue to dampen the availability of certified DBE Subcontractors that are able to perform within WSDOTrsquos strict criteria without unduly transferring risk to the Prime Contractor

Better Partnering to Overcome DBE Failures to Perform ndash Prime Contractors are held fully responsible to maintain the project schedule and are subject to project liquidated damages even when they may be struggling to deal with Subcontractor performance issues It is well-established that replacing a certified ldquocondition of awardrdquo (COA) DBE Subcontractor is very onerous and likely very costly to the Prime Contractor Unfortunately the imposition of strict and often counter-productive commercially useful function (CUF) rules often compound this issue as Prime Contractors cannot help COA DBE Subcontractors work through capacity expertise or time-related issues that impact timely performance

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 4 of 6

WSDOT needs to be a much better partner in the process of dealing with under-performing or non-performing certified DBE Subcontractors The current standard operational procedure places all of the exposure for non-performance onto the Prime WSDOT does not have an equitable system to account for non-performing or under-performing certified DBE Subcontractors hired as a condition of award (COA)

Performance Information and Training ndash Commercially useful function rules (CUF) and the lack of clear benchmark definitions for good faith effort (GFE) standards remain barriers for improving accountability within the DBE system and in turn lead to distorted DBE participation rates These items remain amorphous due to lack of training or lack of historic information Chronic uncertainty exists regarding both of these items Until WSDOT changes and improves its approach to provide transparency and certainty for both the prime bidding amp subcontracting parties true certified DBE capacity will continue to be masked and the resultant higher subcontracting costs associated with a distorted marketplace will continue to be hidden

WAPA respectfully suggests that simply adding an ldquoEstimated DBE Subcontract Premiumrdquo line to the current DBE bid forms would help to establish benchmarks that could begin to be used to ldquomeans testrdquo good faith efforts If this information had been gathered over the last 20 years of the DBE program meaningful GFE standards could have been developed and could be in place today

An in-depth review of CUF standards would also provide clarity For instance it is unclear why force account items performed by certified DBEs are currently counted at only 50 of the value of the work How was this benchmark established Has it been reviewed since imposed Did it ldquosolverdquo whatever inequity WSDOT was trying to address Better clarity may lead to more expanded opportunities for certified DBE Subcontractors

Enhanced Supportive Services and Business Development Programs ndash Unless and until stronger programs of these types are shown to be effective in boosting certified DBE business development increased DBE participation due to stronger business acumen should not be relied upon when setting the new DBE goal

Does OMWBE have a reasonable expectation that future plans for enhanced and expanded programs will be more successful than those employed in the past Assuming that certified DBE Subcontractors will be better prepared to deal with the WSDOT contracting environment than in the past should not be relied upon to boost DBE participation goals Especially troubling were the multiple references within the CHA report highlighting that DBEs believe that the staff at OMWBE lack a deep knowledge about the highway construction industry (eg Study page 129 2nd paragraph) Does OMWBE have a path forward that will address this issue and thus improve supportive services impacts

Develop a Bonding and Financing Program for SBEs ndash This is completely outside of the prime contracting

communityrsquos scope of influence WSDOT must find a way to institute changes that both protect the taxpayer and help increase certified DBE bonding capacity and access to financing ndash very large hurtles To assume that these hurtles can effectively be overcome within the 2018 ndash 2020 time frame when they have been chromic issues for the past 20 plus years of DBE program development is not rational

A helpful innovation would be for WSDOT to underwrite performance and payment bonds for certified DBE firms or to create promote a system that helps certified DBE firms obtain private bonding Bridging the gap to address capital access and performance risks (bonding) must be championed by WSDOT

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 5 of 6

Base Figure Adjustment to Address Available Subcontract Volume and DBE Prime Contracts It is a fact that mid- to large-sized MBEWBE firms that compete both as Prime Contractors and as Subcontractors are not eligible to be OMWBE certified DBEs Further the current amount of contract unbundling for greater DBE access to WSDOT prime contracting (see below) accounts for a very low dollar volume of prime contracts performed by certified DBEs Finally by specification (WSDOT standard specification 1-081) Prime Contractors are obligated to perform 30 of the total volume of the work (less specialty work) or stated another way a maximum of 70 of the dollar volume on WSDOT projects is typically available to award to subcontractors These market dynamics are NOT addressed in the Disparity Study A responsible DBE goal made absent of these facts should not be implemented A reasonable adjustment to the proposed 19 DBE goal is presented below

bull The percent of WSDOT prime contracts awarded to certified DBE firms is likely less than 5 by total WSDOT

contract volume Assuming this approximation is valid (likely very conservative) then the amount of WSDOT contract work available to certified DBE firms via subcontracting should be adjusted to account for the factors outlined above The Base Figure (19) should be adjusted to recognize that a 70 maximum subcontractor participation is available (in the numerator) and to account for the assumed 5 certified DBE prime contracts in the denominator Reasonable Base Figure Adjustment 19 (proposed) x 70 subcontracts available divide 95 of Non-Certified DBEs as Prime Contract Volume = 190 x 0737 = 140 adjusted goal This is an adjustment based on the practical dynamics of the WSDOT contracting system and it represents a more realistic look at the true subcontract volume that is available for Prime Contractors to award to certified DBE firms

Conclusions

Until the items listed above are addressed and in place it is not reasonable to believe that DBE goals can be increased by nearly 163 (from 117 to 190) When the projected robust public works contracting market is appropriately considered the true availability of certified DBE Subcontractors for WSDOT contracts will be truncated due to demand across all public works sectors With multiple strong public works programs competing for a limited population of certified DBEs the ability to meet increased WSDOT DBE goals will be severely challenged Without very clear concise and transparent good faith effort rules the ability to address DBE goals that greatly overestimate true near term certified DBE capacity will result in non-attainment bid day chaos failures to perform andor rapidly increased pricing

The clear conclusion is that at this point in time under the current circumstances without effectively instituted new programs rules procedures that could enhance the certified DBE programrsquos overall effectiveness we believe that the DBE goal should remain at or near 12 As OMWBE documents and demonstrates its future successes in improving access and eliminating capacity barriers only then should the DBE goal be re-evaluated and increased

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 6 of 6

In closing please remember that it is rare that the contracting community is asked our opinion with respect to the WSDOTrsquos DBE policies and so this letter is somewhat a vehicle to highlight collective concerns It is our belief that the majority of the Prime Contractors in Washington state support the objective of creating a level playing field for ready willing and able DBEs

If the level playing field is not yet possible in the absence of the DBE program then the key is to set realistic goals that recognize reflect and address the hard realities and market dynamics imposed by WSDOTrsquos bedrock environment of awarding contracts to the lowest cost responsible and responsive Contractor

Respectfully submitted Washington Asphalt Pavement Association

David Gent Tom Gaetz Executive Director Senior Advisor

Attachment A ndash WSDOT Central Puget Sound Public Works Contracting Projection 2018 - 2022

Con

stru

ctio

n Pr

ojec

t Sta

rts

2018

-202

2S

ound

Tra

nsit

$22

6 B

SD

OT

$08

B

Tran

sit

amp O

ther

s$1

7 B

WS

DO

T$6

7 B

Por

t of

Sea

ttle

$15

B

TOTA

L$3

33

B

Source N

ov 1

9 2

017

pres

enta

tion

to W

APA

Ann

ual M

eetin

g

Attachment A

Work (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Dave Gent - WAPA [mailtodavegentasphaltwacom] Sent Thursday December 7 2017 144 PMTo Bayne Jackie ltBayneJwsdotwagovgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hi again Jackie Irsquom fine thanks and hope you are the same Interesting The Master DBE Directory is the basis for and integral to the conclusions of the DisparityStudy Is it not then part of the information needed to fully review and comment on the DisparityStudy Was it not provided by CHA to WSDOT for review We are trying to fully understand thestudy and if this directory was part of the study why would it need to be obtained by a publicrecords disclosure It should be in the public domain and not restricted from ease of access If you are sure that a public records request is needed Irsquoll start that process but we will need tonote that point of fact when we submit our public comments If you are able to reconsider please let me know Respectfully

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Thursday December 7 2017 126 PMTo Dave Gent - WAPA ltdavegentasphaltwacomgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hello Dave I hope you are doing well

That information would likely be obtained through a public disclosure request Best Regards Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Dave Gent - WAPA [mailtodavegentasphaltwacom] Sent Thursday December 7 2017 113 PMTo Bayne Jackie ltBayneJwsdotwagovgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Jackie Can you please provide an electronic file or provide a weblink for the Master DBE Directory thatColette Holt amp Associates developed for the WSDOT Disparity Study 2017 (first referred to on Page 8of the Disparity Study) I did not see a link to this Master DBE Directory within the study Thanks

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Friday October 27 2017 1118 AMTo Kenyon Wendy ltKenyonWwsdotwagovgt Adams E W ltewadamssystemsclcomgtAdekoyaAndrew ltandrewadekoyabccomgt AlyssaBalllegwagov Anindita Mitraltamitracrea-affiliatescomgt APRISeattlehotmailcom Armstrong CharlotteltCharlieAatgwagovgt Ato Apiafi Architects PLLC ltatoaatoapiaficomgt benzfanwaorgBerntsen Teresa (OMWBE) ltTeresaBomwbewagovgt Billingsley Andrealtbillinawsdotwagovgt Bramlet Erica ltEricaBramletlegwagovgt Brooks Julius

ltBrooksJwsdotwagovgt Brown Jason ltjbrownldccorpcomgt bwallacenwlaborersorgCamden Allison ltCamdenAwsdotwagovgt carlllivingstongmailcom Cerda OscarltCerdaOwsdotwagovgt Christopher Chris ltChristCwsdotwagovgt ckerneycaawagovdanplatinumbusinessgroupcom davegentasphaltwacom David BalltDavidsignsnowmillcreekcomgt Davis Khalia ltDavisKhwsdotwagovgt Davis RaShelle (GOVltrashelledavisgovwagovgt Dayton Jo ltDaytonJwsdotwagovgt ddhondtagcwacomDebbieDriverlegwagov Dennis ltdennisahlkiewitcomgt dmcleodnwlaborersorgdrart6651gmailcom Duncan Enid lthigradeincgmailcomgt EltonltEltonwashingtonstatetruckingcomgt eprincecaawagov flemosldccorpcomfmartineznwmtnmsdcorg geoffshookatkncom glovelady ltgloveladyexcelglovescomgtGrabow Katie ltkgrabowsystemsclcomgt Guilfucci Jackie ltJackieGuilfucciskanskacomgt HealyLinda ltHealyLwsdotwagovgt Higginbotham Breanne ltHigginBwsdotwagovgt HirscheyClaudia ltclaudiahirscheycomcastnetgt Holt Colette ltcoletteholtmwbelawcomgt Huff JohnltHuffJwsdotwagovgt Iniguezchawagov JacksonMaynardlegwagov Jimmy Matta(jmattaalcantarassoccom) ltjmattaalcantarassoccomgt kellywickergovwagov Key EarlltKeyEwsdotwagovgt Kirk Jon ltjkirkwhhnfscomgt Kris Purrier ltkpurrierhwageocomgtleewabuildingtradesorg lesliejonessoundtransitorg Liz Evans ltlevansagcwacomgt LopezErin lterinlopezdeswagovgt Martha Cerna ltMarthaPSLCCORGgt Martin-Arnold EdwinaltMartinEwsdotwagovgt Mary Lerdahl ltmarydbeelectricinccomgt McCarty Hannahlthannahmccartylegwagovgt Melissa L Boyles ltmelissaboylesmwbelawcomgt Metcalf KeithltMetcalKwsdotwagovgt michaelicapaawagov Michelle ltMichelleTTCC26netgt MillarRoger ltMillarRwsdotwagovgt Nakamura Jason ltjasonnakamura1-alliancecomgtNavarroLportseattleorg olliepmt-solutionscom pastorbanksesbctacomacom PatrickHughes ltphugheshughesgroupbizgt Petersen Jodi (FHWA) ltJodiPetersendotgovgtrabbottliunaorg rcarmsteadgmailcom ricemportseattleorg Riley D ltdrileylydigcomgtSeling ltSelingjpfranciscomgt sherryharrisergosynchcom Stell MellodyltStellMwsdotwagovgt terigobintulaliptribes-nsngov timwilliamfactorycom tinaterra-tdicom tkellyldccorpcom tomgaetzmsncom vcollinsacec-waorgverlenejazzmsncom Wang Albert ltWangAatgwagovgt Waugh GregltGregWMaxKuneyComgt Yates Henry ltYatesHWSDOTWAGOVgtCc Tom Gaetz lttomgaetzmsncomgt Dave Gent - WAPA ltdavegentasphaltwacomgt VanCollins ltvcollinsacec-waorggt Daniel Seydel II ltdanplatinumbusinessgroupcomgt MaynardJackson ltJacksonMaynardlegwagovgt Carl Livingston ltcarlllivingstongmailcomgt DonMcLeod ltdmcleodnwlaborersorggt JIMMY MATTA ltjimmymattamsncomgt Prince Ed(CAAA) lteprincecaawagovgt David DHondt ltddhondtagcwacomgt Irene Reyesltgloveladyexcelsupplycompanycomgt McDaniel Craig ltMcDaniCwsdotwagovgtsherryharrisergosynchcomSubject WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Good morning On Monday October 30th WSDOT will be releasing the proposed overall Federal HighwayAdministration Disadvantaged Business Enterprise goal attached for public comment throughDecember 15 2017 This overall DBE goal is based upon the recently completely DBE ProgramDisparity Study WSDOT is proposing a 19 percent overall DBE participation goal on Federal Highway

Administration-funded projects for federal fiscal years 2018 through 2020 DBE goals fortransportation projects that receive federal funds represent a percentage of the value of work inwhich minority- and women-owned businesses should participate Once finalized and submitted toFHWA early next year the goal will be effective through Sept 30 2020

The purpose of the DBE program is to create a level playing field for firms owned and operated bydisadvantaged individuals wanting to participate in federally assisted highway transit and aviationprograms The attached overall DBE goal is for FHWA funded projects WSDOT will be updating theFTA and FAA overall DBE goals in the near future

If you have any questions please contact Earl Key Director of the Office of Equal Opportunity at3607057091 or KeyEwsdotwagov Thank you Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

  • Proof-Of-Publicationpdf
    • Mediapdf
      • AGC
      • Daily Journal
      • Daily Medium
      • DBEGood
      • OMWBE
      • Seattle Medium
      • Tabor 100
      • The Chronicle
      • Tukwila
        • King County
          • Public-Comments-20180111pdf
            • 19 DBE Requirement(1)
            • AGC Comments on Proposed 10 Goad
            • Backstrom Curb amp Sidewalk
            • comments on WSDOT proposed DBE goal
            • Cowlitz County Public Works
            • DBE Contracting goals
            • DBE Goal
            • DBE Program Disparity Study
            • Disparity Study Comments from City of Spokane
            • FW_ WSDOT News - WSDOT seeks comments on propos
            • Proposed DBE Goals
            • RE_ DBE Contracting Goal Comments
            • Re_ DBE Goal Comments
            • Re_ Seydel Dan - WSDOT Disparity Study Present
            • Support for WSDOTs proposed DBE goal
            • Why we need mandatory goals
            • WSDOT DBE Goal - Comment in support
            • WSDOT Proposes DBE goal of 19
            • WSDOT propsed DBE Goals
            • WTS - Disparity Study Comment Letter

Hi Michelle

Thank you for your interest in doing business with WSDOT I apologize for the lack of informationyou have come up against in your attempts to attain access to WSDOT ICR program

As you may well know WSDOT has recently completed a state wide agency specific diversity studyAnecdotal comments submitted with the study concur with your experience Not only did somerespondents find it difficult to become prequalified they also commented that the required indirectrate of 110 percent is too low to be profitable These requirements are currently under advisementby WSDOT and new DBE program requirements are currently in the process of seeking public input

As you are an OMWBE certified DBE in Washington State you will be eligible for limited DBE SupportServices (SS) funding when these funds become available At that time funds may become availableto assist you in your struggle to attain ICR eligibility Here is a link to WSDOTrsquos Indirect Cost RateTraining httpswwwwsdotwagovAuditICRTraininghtm If you would like me to find additionaltraining or information please let me know

If I can provide additional assistance of information please let me know

Best Regards

Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Michelle Wolcott [mailtoMichelleWolcottred-plainscom] Sent Tuesday October 31 2017 835 AMTo WSDOT Disparity Study ltDisparityStudyWSDOTWAGOVgtSubject DBE Contracting Goal Comments

HelloI have been in contact with WSDOT for 6 months sharing my disparaging story of beinga small DBE unable to submit SOQs for projects requiring a WSDOT Audited IndirectCost Rate Approval We do not have an in-house accountant and our outsideaccountant has explained to get all the paperwork together for WSDOT would take 40hours of work $9000 annually We cannot justify this cost to submit on a project thatwe may not acquire We have been directed to seek financial assistance from WSDOT Federal SBA andWashington State Office for Women and Minority Owned Enterprises all of whichprovided negative responses

As a DBE business in 11 states we are supporting the 19 incentive for federallyfunded contracts but we are frustrated in the fact that we will not be one of the luckyfew to participateWe have been in business 20 years From our Vancouver Washington office our clientsare the Native American tribes across the country with all contracts federally funded This summer alone the WSDOT ICR Approval has squashed our ability to submit on twoprojects that we were perfectly qualified to performI have attached previous emails to show a sample of who I have been dealing with

Thank you

Michelle Wolcott EIT Quality Control Engineer

ltimage001pnggt

2103 NE 129th Street Suite 201 Vancouver WA 98686 Office (360) 448-7999 Fax (360) 258-0274 wwwred-plainscom

From Michelle Wolcott Sent Monday July 10 2017 954 AMTo Harvey Schatzie ltHarveySwsdotwagovgtSubject RE WSDOT Indirect Cost Rate Process

Good Morning Schatzie

This is Michelle Wolcott from Red We spoke Friday June 30th about the ICRprocess and you were very encouraging I relayed the information to my boss who ishere in Vancouver then he shared with the president bookkeeper and our accountantin Oklahoma We had FAR compliance with Oklahoma DOT in 2015 so we are noteligible for the Safe Harbor Program Our account said our timekeeping system doesnot breakdown the hours and pay in the format WSDOT wants to have it presented andto get the documents in order would take the CPA and an assistant $9000 in paidhours of work It turns out this would have to be annually The other option is to hirean outside CPA firm to do the audit for us at $20000 annually

Our president said in the past we received funding assistance from the Stateof Oklahoma to get our ICR approval Does WSDOT offer any financial assistance for small businesses to reach compliance We are also a DBE in WA I have requested the same information from WA PTAC at theVancouver Chamber of Commerce and from WA Office of Minority and Women OwnedBusiness Enterprises and they both said there was nothing but suggested to askWSDOTThank you for your helpMichelle Wolcott EIT

Hello Michelle sorry but I am not aware of any grants But I was looking at this andthere is a POC at the bottom you may try to discuss the audit issuesHollyHolly BoehmeBusiness Opportunity Specialist | 8(a) Business Development ProgramUS Small Business Administration bull Seattle District Office

Hello Michelle -

Thank you for your email Im not aware of any funding available for thispurpose but do agree its quite a bit for a DBE firm to have as an expense Mostof the firms I work with do a lot more work on the Oregon side so perhaps thereare programs available that I just havent heard of Im copying my colleagueHoly Boehme in our Seattle District Office to see if they are aware of any suchassistance

Holly might there be some small business incubators or other resources availablein WA to help a small firm with the expense of getting a WSDOT AuditedIndirect Cost Rate approval Please reply all with anything you may have

Thank you

Yuri Yoshida Dyson Business Opportunity SpecialistUS SMALL BUSINESS ADMINISTRATION Portland District OfficePhone 503-326-6692 Fax 202-292-3872 wwwsbagovor

From Troy HalbergTo Bayne JackieSubject Re DBE Goal CommentsDate Wednesday December 13 2017 35533 PM

JackieToday was another example of why the goals should not be raised There were 2 jobs which Iwas low on and did not get due to the high goals This is exactly what will happen when thegoals get raised The first job was the 9180 Anacortes Ferry Paving Northeast Electric $244924 and UDBE $318000 Second job was the 9172 SR 9 East Junction Job Northeast Electric $68503 and UDBE $76300

Does this seem like a good way to spend the tax payer money I do not see how we are tosurvive if the goals get to 21

Thanks

Troy HalbergOffice360-225-7004Cell360-931-3990Fax360-225-7001

On Thu Nov 30 2017 at 1131 AM Bayne Jackie ltBayneJwsdotwagovgt wrote

Good Morning Troy

Thank you for taking the time to provide us with your experiences with the DBE Program TheWashington State Department of Transportation takes the public involvement process veryseriously and your comments will be taken into consideration prior to a final decision regardingthe overall DBE program goal

If I can be of further assistance please let me know

Best Regards

Jackie Bayne

Policy and Reporting Manager

WSDOT Office of Equal Opportunity

Work (360) 705-7084

Cell (360) 338-5783

BayneJwsdotwagov

From Troy Halberg [mailtotroyhnellcnet] Sent Wednesday November 29 2017 144 PMTo WSDOT Disparity Study ltDisparityStudyWSDOTWAGOVgtSubject DBE Goal Comments

If these goals are to be set that high this would make us as a non DBE small contractor at amajor disadvantage With these high of goals this is like handing all of the DBE electricalcontractors every job These general contractors will have no option but to use thembecause of the goals This should not go into effect We have been low on several jobs in thepast and have not gotten them do to the goals being 18 When this goes on it puts all therest of us contractors at a disadvantage Please consider the smaller non DBE contractorsthat are looking to survive as well

Thanks

Troy Halberg

Office360-225-7004

Cell360-931-3990

Fax360-225-7001

From Daniel Seydel IITo Bayne JackieCc Key Earl daneiwashingtonorg Nadeem Ismail Mussie Tewelde (mteweldehydro2geotechcom)

graceflyrightaolcom Mary Wenner Watkinson LarrySubject Re Seydel Dan - WSDOT Disparity Study Presentation Public TestimonyDate Friday December 8 2017 30323 PM

Jackie

It was my hope that the comments would be put into record I was also hoping that you wouldnot have to be the one having to formulate responses for each clarification If that is the caseI know you are swamped and will then I just ask my comments be only part of the recordHowever if there is dedicated staff that is going to be compiling and responding to theclarification then the below questions would be the priorities of most interest

These were questions unrelated to the disparity study and hopefully should be doable

1) Do you have any reports on your outcomes from the past 5 years on DBE support servicesand specific key performance measures from previous years funding (ie how many firmsutilized what was the objectives were objectives met did outcomes meet total satisfaction ifnot why next steps what was the firms capacity before and after services were performed (iesales employees bonding if applicable insurance equipment line of credit if applicablenumbertype of customers how are they doing now etc))

2) What other changes or improvements other than allowing DBES to select their own serviceproviders and a staff change will be a part of this new program

3) Was consideration to provide the new mentor protege consultant rather than separating theactivities into support services andor technical assistance

Disparity study clarifications

1) Will WSDOT consider sponsoring legislation to support the policy changes and goalincreases to insure manditory goals wont be necessary

a) If not what measures will you grant primes to operate outside the box (ie entertain bestvalue over low bid modify responsiveness by subs to require adherence to meeting voluntarygoals developing standards around federally funded gccm and other low bid procurementsthat give powers to primes to meet objectives including but not limited to mentor protegerelationships joint ventures bond waiving techniques cash flow assistance material andequipment acquisition manufacturer development specifications that have only DBES orinclude equal number of DBES as non DBES as approved installers etc)

2) Will the disparity study consultant be available for implementation or information gatheringfrom other regions

5) Will WSDOT be hiring more diverse staff amp professionaltechnical service providers inother departments outside OEO to insure policies commitments and evaluations areperformed in manner that improves diversity that reflects the communities WSDOT serves bythoughtful and legal efforts increase participation thus creating successful outcomes includingpartnerships and collaborations

Thank you and Merry Christmas

Hi Dan

Thank you for providing such thoughtful public comments questions and testimony

Regarding your public testimony below - I do not believe I am not able to answer questions ifthey are public comments Please let me know what part of this email you would likeclarification on and what part you would like considered public testimony

I appreciate your thoughtful consideration of WSDOTrsquos implementation of our civil rightsprograms

Best Regards

Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

DIDaniel Seydel IIFyi Daniel J Seydel II Platinum Group LLC 2064060844 f) 2062999934wwwplatinumbusinessgroupcom Small Business is the Answer FREE TRAINING FORENTREPRENEURS amp JOB SEEKERS - Polish your skills or make your firm standout thanksto the EntrepreneurialThu 233pDI

Daniel Seydel IIThu 1272017 1123 AMInbox Sent ItemsShow all 7 recipientsTobaynejwsdotwagov ltBayneJwsdotwagovgtJackie

Per your request below are my questions and comments some of which were verbally sharedyesterday

Congratulations on receiving the blessing of additional technical assistance dollars andcompleting the DBE Disparity Study per your report

1) Do you have any reports on your outcomes from the past 5 years on DBE support servicesand specific key performance measures from previous years funding (ie how many firmsutilized what was the objectives were objectives met did outcomes meet total satisfaction ifnot why next steps what was the firms capacity before and after services were performed (ie

sales employees bonding if applicable insurance equipment line of credit if applicablenumbertype of customers how are they doing now etc))

2) What other changes or improvements other than allowing DBES to select their own serviceproviders and a staff change will be a part of this new program

3) Was consideration to provide the new mentor protege consultant rather than separating theactivities into support services andor technical assistance

Disparity study clarifications andor comments

1) Will WSDOT consider sponsoring legislation to support the policy changes and goalincreases to insure manditory goals wont be necessary

a) If not what measures will you grant primes to operate outside the box (ie entertain bestvalue over low bid modify responsiveness by subs to require adherence to meeting voluntarygoals developing standards around federally funded gccm and other low bid procurementsthat give powers to primes to meet objectives including but not limited to mentor protegerelationships joint ventures bond waiving techniques cash flow assistance material andequipment acquisition manufacturer development specifications that have only DBES orinclude equal number of DBES as non DBES as approved installers etc)

2) Will the disparity study consultant be available for implementation or information gatheringfrom other regions

3) What lessons did WSDOT learn that it did not know from the other study(s)

4) What would WSDOT do different (ie scope time line process approach etc)

5) Will WSDOT be hiring more diverse staff amp professionaltechnical service providers inother departments outside OEO to insure policies commitments and evaluations areperformed in manner that improves diversity that reflects the communities WSDOT serves bythoughtful and legal efforts increase participation thus creating successful outcomes includingpartnerships and collaborations

Daniel J Seydel IIPlatinum Group LLC 2064060844f) 2062999934wwwplatinumbusinessgroupcom

Small Business is the Answer

FREE TRAINING FOR ENTREPRENEURS amp JOB SEEKERS - Polish your skills or makeyour firm standout thanks to the Entrepreneurial Institute of Washington

httpswwwyoutubecomchannelUCKL5YeVxL29HnNxqnb6hmXA

LIKE US on FaceBook if an Active Professional Development workshop provided by EIW

Construction University helps your firm or has benefited you

httpswwwfacebookcomEIWashingtonref=hl

From Bayne Jackie ltBayneJwsdotwagovgtSent Friday December 8 2017 10139 PMTo Daniel Seydel IICc Key Earl daneiwashingtonorg Nadeem Ismail Mussie Tewelde(mteweldehydro2geotechcom) graceflyrightaolcom Mary Wenner Watkinson LarrySubject RE Seydel Dan - WSDOT Disparity Study Presentation Public Testimony Hi Dan Thank you for providing such thoughtful public comments questions and testimony Regarding your public testimony below - I do not believe I am not able to answer questions if theyare public comments Please let me know what part of this email you would like clarification on andwhat part you would like considered public testimony I appreciate your thoughtful consideration of WSDOTrsquos implementation of our civil rights programs Best Regards Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov From Daniel Seydel II [mailtodanplatinumbusinessgroupcom] Sent Thursday December 7 2017 1123 AMTo Bayne Jackie ltBayneJwsdotwagovgtCc Key Earl ltKeyEwsdotwagovgt daneiwashingtonorg Nadeem Ismailltnipaintingearthlinknetgt Mussie Tewelde (mteweldehydro2geotechcom)ltmteweldehydro2geotechcomgt graceflyrightaolcom Mary Wennerltmwenn0108yahoocomgtSubject Seydel Dan - WSDOT Disparity Study Presentation Public Testimony Jackie

Per your request below are my questions and comments some of which were verbally sharedyesterday

Congratulations on receiving the blessing of additional technical assistance dollars andcompleting the DBE Disparity Study per your report

1) Do you have any reports on your outcomes from the past 5 years on DBE support servicesand specific key performance measures from previous years funding (ie how many firmsutilized what was the objectives were objectives met did outcomes meet total satisfaction ifnot why next steps what was the firms capacity before and after services were performed (iesales employees bonding if applicable insurance equipment line of credit if applicablenumbertype of customers how are they doing now etc))

2) What other changes or improvements other than allowing DBES to select their own serviceproviders and a staff change will be a part of this new program

3) Was consideration to provide the new mentor protege consultant rather than separating theactivities into support services andor technical assistance

Disparity study clarifications andor comments

1) Will WSDOT consider sponsoring legislation to support the policy changes and goalincreases to insure manditory goals wont be necessary

a) If not what measures will you grant primes to operate outside the box (ie entertain bestvalue over low bid modify responsiveness by subs to require adherence to meeting voluntarygoals developing standards around federally funded gccm and other low bid procurementsthat give powers to primes to meet objectives including but not limited to mentor protegerelationships joint ventures bond waiving techniques cash flow assistance material andequipment acquisition manufacturer development specifications that have only DBES orinclude equal number of DBES as non DBES as approved installers etc)

2) Will the disparity study consultant be available for implementation or information gatheringfrom other regions

3) What lessons did WSDOT learn that it did not know from the other study(s)

4) What would WSDOT do different (ie scope time line process approach etc)

5) Will WSDOT be hiring more diverse staff amp professionaltechnical service providers inother departments outside OEO to insure policies commitments and evaluations areperformed in manner that improves diversity that reflects the communities WSDOT serves bythoughtful and legal efforts increase participation thus creating successful outcomes includingpartnerships and collaborations

Thank you for your hard work

Daniel J Seydel IIPlatinum Group LLC2064060844f) 2062999934wwwplatinumbusinessgroupcom

Small Business is the Answer

FREE TRAINING FOR ENTREPRENEURS amp JOB SEEKERS - Polish your skills or makeyour firm standout thanks to the Entrepreneurial Institute of Washington

httpswwwyoutubecomchannelUCKL5YeVxL29HnNxqnb6hmXA

LIKE US on FaceBook if an Active Professional Development workshop provided by EIWConstruction University helps your firm or has benefited you

httpswwwfacebookcomEIWashingtonref=hl

From Erin EhlingerTo Bayne JackieSubject Support for WSDOTs proposed DBE goalDate Wednesday December 13 2017 115417 AM

I am writing to support the WSDOT recommended DBE Goal for FHWA contracts of 190 I also want to express my appreciation for the thoroughness of the WSDOT Disparity study and howthe study disclosed the disparity in WSDOT contracts that do not have a DBE or WBE goal ndash furtherreinforcing that all women-owned firms and minority owned firms face equity issues I remain concerned with the methodology required by the Code of Federal Regulations and case lawbecause of the dependence on the availability of firms in the calculation An unintendedconsequence of removing either gender or race from the goal is that many of these firms would goout of business the availability decreases and the formula then results in a smaller DBE goal Pleaselet me know how I can help influence a change to the CFR Thank you Erin Ehlinger

Erin Ehlinger PEPresident

24036 SE 47th StSammamish WA 98029erinehlingersmartcitytrafficcom425-221-0320

From Jackie EtterTo WSDOT Disparity StudySubject Why we need mandatory goalsDate Friday December 1 2017 61859 PM

As a DBE participating in bidding process I have found that regardless of the language which claims to insurethat disadvantaged business enterprises shall not be discriminated against the only way to ensure that this does nothappen is by mandating affirmative action goals Having been overlooked time and time again because of my gender when I have submitted bids that are verycompetitive with other bidders is very frustrating I have had many instances of companies using my price to getmy non DBE competitors to lower theirs The voluntary or laudatory DBE goals do nothing to ensure a level playing fieldThe only way to ensure non-discrimination is through mandatory goals

Jackie EtterWest Star Construction of Spokane

Sent from my iPhone

From Claudia HirscheyTo Key Earl Bayne JackieSubject WSDOT DBE Goal - Comment in supportDate Tuesday December 12 2017 61937 PM

Dear Earl and Jackie The WSDOT recommended DBE Goal for FHWA contracts of 190 is a small and important increasethat can further achieve equity in WSDOTFHWA contracting I am in support of the 19 DBE Goal I also want to express my appreciation for the thoroughness of the WSDOT Disparity study and howthe study disclosed the disparity in WSDOT contracts that do not have a DBE or WBE goal ndash furtherreinforcing that all women-owned firms and minority owned firms face equity issues I remain concerned with the methodology required by the Code of Federal Regulations and case lawbecause of the dependence on the availability of firms in the calculation An unintendedconsequence of removing either gender or race from the goal is that many of these firms would goout of business the availability decreases and the formula then results in a smaller DBE goal Sincerely Claudia S Hirschey PETransportation Consulting Servicesclaudiahirscheycomcastnethttphirscheytcscom2068564988 Mobile

From Nate ThomasTo WSDOT Disparity StudySubject WSDOT Proposes DBE goal of 19Date Thursday December 7 2017 42720 PM

The WSDOT should look into similar ways the Federal Gov has handled the equal opportunity forthose that fall under the DBE status and set aside specific projects for the DBErsquos and moreimportantly UDBErsquos so these companies have better chance of landing contracts Maybe a lot 10 ofthe DBE goal to set aside for only DBEs and other 9 goal met as it is done currently with COA onlarger contracts Nate ThomasSenior EstimatorD 5095688085 | C 5099941156331 North Fancher Road | Spokane WA | 99212

The information contained in this email including any attachments is confidential and may beprivileged It is intended only for the person or entity to which it is addressed and no waiver isintended by sending this email If the reader is not the intended recipient you are herebynotified that any review retransmission dissemination or other use of or taking any action inreliance upon this information is strictly prohibited If you have received this email in errorkindly notify the sender by reply email and delete the original message from any computerThank You

From Brian FujiiTo WSDOT Disparity StudySubject WSDOT propsed DBE GoalsDate Thursday December 7 2017 110638 AM

Good morning Jackie

I wanted to comment on WSDOTs proposed DBE goal to 19 I believe WSDOTs plan toincrease the overall DBE goal to 19 will provide greater opportunities for DBE contractorsin different disciplines to participate in federally funded contracts

Without the new DBE requirement and with Proposition 200 there are limited opportunitiesfor DBE contractors in disciplines different than the typical trucking flagging and rebar Inaddition there are no incentives for general contractors to go out beyond the usual truckingflagging and rebar DBE subcontractors

Increasing the DBE goals will provide opportunities for different DBE contractors in differentdisciplines to participate in WSDOT federally funded projects

Thank you for your time

RespectfullyBrian FujiiPresident Subsurface ConstructionP 2063836478F 2069604639MDBE 4M0024998

From Forman StephanieTo Bayne JackieCc Millar Roger christinenhanmailhousegov Claudia Hirschey Sarah Corbin Jiang Yingle

efaulknerenviroissuescom Diana Giraldo Kelly CheesemanSubject WTS - Disparity Study Comment LetterDate Friday December 15 2017 71020 PMAttachments 2017_Dec 15_WTSCommentLetter_WSDOT DBE Goalpdf

Dear Ms Bayne Please find our attached letter which summarizes the WTS Puget Sound Chapterrsquos support foradvancement of women in transportation and our comment letter regarding the recent DisparityStudy Please feel free to contact me if you have any questions or would like to discuss Sincerely Stephanie S Forman PEWTS Puget Sound President Transportation Project Manager

929 108th Avenue NE Suite 1300Bellevue WA 98004D 4254681548 M 2062291745stephanieformanhdrinccom

December 15 2017

Jackie Bayne Policy and Reporting Manager

Office of Equal Opportunity

Washington State Department of Transportation

PO Box 47314

Olympia WA 98504-7314

Dear Ms Bayne

On behalf of the Puget Sound Chapter of Womenrsquos Transportation Seminar (WTS) we would

like to thank the Washington State Department of Transportation for presenting to our

organization the DBE Disparity Study results We very much appreciated the presentation by Earl

Key Director of WSDOTrsquos Office of Equal Opportunity Teresa Berntsen (Director Office of Minority

and Womens Business Enterprises) as well as Leslie Jones (Director Sound Transit Office of Small

Business Development and Labor Compliance)

Following a review of the WSDOT Disparity Study and as a result of consultation with WTS

International we would like to provide WSDOT with our comments for your consideration

As you know WTS is an organization focused exclusively on attracting retaining and advancing

women in transportation By the year 2018 there will be thousands of vacancies in the

transportation industry for qualified professionals and while women account for more than half of

the worldrsquos workforce they are a very small minority in transportation disciplines

We are pleased that the outcome of the 2017 Disparity Study that recognizes the on-going barriers

for DBEs including women-owned businesses in transportation The WSDOT recommended DBE

Goal of 190 is a small and important increase that can further achieve equity in WSDOTFHWA

contracting We are also pleased that the 2017 Disparity Study has documented the disparity in

WSDOT contracts that do not have a DBE or WBE goal ndash further reinforcing that all women-owned

firms and minority owned firms face equity issues We are encouraged that the WSDOT has asked

FHWA to rescind the 2016 waiver

While WTSrsquo mission is specific to the advancement of women we are a race-neutral organization To

this end we are also deeply concerned about the underutilization of minority owned firms There is

no equity or ldquofair playing fieldrdquo without equity for all gender and races We remained concerned with

the methodology required by the Code of Federal Regulations and case law because of the

dependence on the availability of firms in the calculation An unintended consequence of removing

either gender or race from the goal is that many of these firms would go out of business the

availability decreases and the formula then results in a smaller DBE goal This consequence is

contrary to our mission

We look forward to our continued participation in WSDOTrsquos DBE advisory group we are anticipating

notice that the 2016 waiver has been rescinded and how we can work together to continue

advancing minority and women-owned firms in the transportation field

Sincerely

WTS Puget Sound Chapter

Stephanie Forman

President

C Roger Millar Secretary WSDOT

C Representative Adam Smith 9th Congressional District Washington co Christine Nhan

WTS Puget Sound Chapter

PO Box 3461

Bellevue Washington 98009

From Dave Gent - WAPATo Bayne JackieCc Tom GaetzSubject WAPA Public Comments - RE WSDOT FHWA Disadvantaged Business Enterprise Proposed GoalDate Friday December 15 2017 14119 PMAttachments 12152017 DBE Proposed Goal - WAPA Public Comments Letterpdf

Good afternoon Jackie Please find attached WAPArsquos ldquofor the public recordrdquo comments with respect to WSDOTrsquos proposedDBE Goals FHWA funded work I assume that the Master DBE Directory was not sent to you this week so as a result we were notable to review the directory before the close of the public comment period That fact is noted withinour comment letter Thank you for your efforts Have a good weekend

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Friday December 8 2017 1219 PMTo Dave Gent - WAPA ltdavegentasphaltwacomgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hello Dave WSDOT did not take possession of this directory as part of our review process We will provide youwith the records without submitting a formal request However we need to get them from theconsultant first I will hopefully have them to provide next week I will keep you updated on therequest Have a nice weekend Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal Opportunity

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

December 15 2017

Jackie Bayne Policy Manager WSDOT Office of Equal Opportunity Delivered via e-mail to BayneJwsdotwagov RE Public Comment (as requested) to Proposed Overall DBE Goal for the FHWA (2018 ndash 2020) Ms Bayne Thank you for your presentation via webinar on December 5 2017 outlining WSDOTrsquos evaluation process used to determine the proposed overall DBE goal for the FHWA Thank you also for the Colette Holt amp Associates (CHA) DBE Advisory Group presentation made on September 14 2017 Both presentations helped to distill the findings of the 2017 Disparity Study produced by CHA In response to Earl Keyrsquos initial informal request to comment on the proposed overall DBE goal made during the DBE Advisory Committee teleconference held on October 12th we provided a list of reasons that we believe justify a lower DBE goal than is now being proposed Our initial response to Mr Keyrsquos request did not serve to influence WSDOT and the current proposed goal remains at 190 The arguments provided on October 12th against the significant increase in the proposed DBE goal (versus the previous goal and recent historic DBE participation) are repeated and supplemented below and will serve as the Asphalt Pavement Associationrsquos (WAPArsquos) official public comments

In concert with WSDOT and the OWMBE WAPA and the construction firms that WAPA represents have demonstrated a commitment to the principals of equal opportunity for all ldquoready willing and ablerdquo firms for the entire history that our DBE program has been in place WAPA has continuously demonstrated its commitment to the goals of the DBE program and for increasing the representation of disadvantaged groups within our industry as both workers and owners of firms Please recognize that WAPArsquos oversight and critique of the DBE program has always attempted to balance the principals of fair and open competition with the practical aspects of the low bid compressed schedule high performance standards demanded within the WSDOT marketplace Our comments below are meant to enhance WSDOTrsquos and OWMBErsquos understanding of the market and to hopefully have WSDOT fully consider all of the dynamics that are at play when proposing its Triennial DBE goal for FHWA projects Current DBE Capacity vs Historically Robust Market In advocating for a realistic and defensible DBE goal it has always been WAPArsquos position that it is paramount that the realities of the marketplace and true certified DBE subcontracting capacity should be a primary standard While a ldquostretchrdquo goal may appear to be progressive on its face it comes with consequences for all of the parties involved in the WSDOT federal aid contracting arena To balance the dynamics of the WSDOT contracting system the DBE goal should be tempered with the realities of the market and with a true measure of the underlying effectiveness of the DBE support services available to contractors

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 2 of 6 The first point of fact that has not been given any apparent consideration by WSDOT in its evaluation of the current capacity of certified DBErsquos is that there is an historically robust workload scheduled to be performed in the 2017 through 2022 time-frame particularly in the Puget Sound ldquoEverett to Olympiardquo corridor By WSDOTrsquos own estimates (see Attachment A) public works construction project starts in the 2018 to 2022 time-frame in this region will exceed $333 billion (B) counting the work projected from just five public entities WSDOT will be taking a decidedly ldquoback seatrdquo role during this period to Sound Transit which will have construction project starts of $226B vs WSDOTrsquos projected volume of $67B WSDOTrsquos summary publication titled Washington State Department of Transportations Proposed Federal Highway Administration Triennium Disadvantaged Business Enterprise Goal Federal Fiscal Years 2018-2020 states correctly that ldquoIncluded among the types of evidence that must be considered are the current capacity of DBEs to perform work on WSDOTrsquos federally-assisted contracts as measured by the volume of work DBEs have performed in recent yearshelliprdquo (Step Two Adjustment discussion) With the Sound Transit program being over 300 larger than the total WSDOT program in this region a sober assessment of true certified DBE capacity in the next three years needs to be considered by WSDOT If the huge construction boom over the next five years does not prompt a Step Two Adjustment then it becomes obvious that the realities of the market are being ignored by WSDOT for DBE goal setting Put another way if the 2018 through 2022 level of contracting activity does not warrant a goal adjustment what will DBE Access Barriers Not Yet Addressed The CHA 2017 Disparity Study points out multiple recommendations in Section VII that impact DBE participation and access to the market Assessments relating to those impacts and the state of maturity in addressing the CHA recommendations should be considered when assessing the DBE goal Many of the CHA recommendation have not been adequately addressed at this point in time Some of the prime examples are listed below Increase Certification and Expertise ndash The Disparity Study as explained to us includes all minority- (MBE)

and women-owned (WBE) firms that could be readily identified that perform work within Washington State and that perform work within the NAICS code framework CHA developed to cover WSDOT project work During the various presentations relating to the Disparity Study WSDOT representatives said that outreach to currently non-certified MBE amp WBE firms has increased and that WSDOT aspires to bolster its list of certified firms in the future but this effort is just beginning and the success of the effort needs to be means tested against the broader population of MBE amp WBE firms included in the CHA base line evaluation As the Disparity Study uses a much broader population of MBE WBE contractors to arrive at its conclusions (both non-certified firms and firms too large for certification) it follows that the calculated DBE proposed goal is overstated to include capacity that does not currently exist within WSDOTrsquos certified DBE framework Unless OMWBE is experiencing sudden and unprecedented success in recruiting new MBEWBE firms the DBE goal should be adjusted downward to recognize that the ldquoready willing and ablerdquo contractors that WSDOT has certified is only a subset of the total MBEWBE contracting population used in the Disparity Study evaluation

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 3 of 6

Until the promised WSDOT outreach registration efforts result in a substantial increase in available certified DBE firms it is premature to count the entire population of minority- and women-owned contractors as available to participate in WSDOT contracting It is unreasonable for WSDOT to project availability capacity using the entire MBEWBE population when only its currently truncated list of certified firms is acceptable to count toward the DBE goal

A corollary to the Increase Certification and Expertise discussion above is that the calculation of the Base Figure evidently includes the broadest practical population of MBE and WBE firms identifiable (without a review of the CHA Master DBE Directory which has not been supplied prior to the close of the public comment period the scope of the directory cannot be ascertained) If this directory includes a large population of MBEWBE firms that are not certified or are too large to be certified then the Base Figure calculation should be adjusted to reflect that certified DBE firms are a fraction of the total MBEWBE firms used to arrive at the 19 suggested DBE goal With respect to the CHA Master Directory it is our understanding the WSDOT was not given the directory as part of its evaluation of the Disparity Study and it follows that it did not evaluate the proposed DBE goal in the context of the CHA Master DBE Directory In our opinion an informed decision on adjusting the CHA baseline goal calculation can only be done after an extensive evaluation of the CHA Master DBE Directory If this has not been done WSDOT has not exercised due diligence in evaluating the context and underpinnings of the CHA Disparity Study and a certified DBE Triennium goal proposal to the FHWA is premature Increase Contract ldquoUnbundlingrdquo ndash If this proposed strategy (suggested by the CHA Study) is undertaken

certified DBE Subcontractors currently available will be engaged as Prime Contractors and the value of their prime contracts will bolster the overall percentage of certified DBE contracting but a systematic effort and strategy to ldquounbundlerdquo has not been articulated by WSDOT The key question of how this effort can be accomplished without increased cost to the taxpayers and increased inconvenience for the traveling public As noted in the CHA study (page 129 final paragraph) ldquoUnbundling must be conducted however within the constraints of the need to ensure efficiency and limit cost to the taxpayersrdquo As of this writing no overarching strategy for further unbundling with proper accountability has been articulated by WSDOT to the DBE Advisory Group

Review Insurance and Experience Requirements ndash Impediments to certified DBE participation due to

necessary insurance and experience standards cannot be solved by the prime contracting community Unless and until WSDOT puts together programs to address the burden of the substantial risks shouldered by Prime Contractors on WSDOT contracts barriers for streamlined utilization of certified DBE firms will continue to exist These market driven barriers will continue to dampen the availability of certified DBE Subcontractors that are able to perform within WSDOTrsquos strict criteria without unduly transferring risk to the Prime Contractor

Better Partnering to Overcome DBE Failures to Perform ndash Prime Contractors are held fully responsible to maintain the project schedule and are subject to project liquidated damages even when they may be struggling to deal with Subcontractor performance issues It is well-established that replacing a certified ldquocondition of awardrdquo (COA) DBE Subcontractor is very onerous and likely very costly to the Prime Contractor Unfortunately the imposition of strict and often counter-productive commercially useful function (CUF) rules often compound this issue as Prime Contractors cannot help COA DBE Subcontractors work through capacity expertise or time-related issues that impact timely performance

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 4 of 6

WSDOT needs to be a much better partner in the process of dealing with under-performing or non-performing certified DBE Subcontractors The current standard operational procedure places all of the exposure for non-performance onto the Prime WSDOT does not have an equitable system to account for non-performing or under-performing certified DBE Subcontractors hired as a condition of award (COA)

Performance Information and Training ndash Commercially useful function rules (CUF) and the lack of clear benchmark definitions for good faith effort (GFE) standards remain barriers for improving accountability within the DBE system and in turn lead to distorted DBE participation rates These items remain amorphous due to lack of training or lack of historic information Chronic uncertainty exists regarding both of these items Until WSDOT changes and improves its approach to provide transparency and certainty for both the prime bidding amp subcontracting parties true certified DBE capacity will continue to be masked and the resultant higher subcontracting costs associated with a distorted marketplace will continue to be hidden

WAPA respectfully suggests that simply adding an ldquoEstimated DBE Subcontract Premiumrdquo line to the current DBE bid forms would help to establish benchmarks that could begin to be used to ldquomeans testrdquo good faith efforts If this information had been gathered over the last 20 years of the DBE program meaningful GFE standards could have been developed and could be in place today

An in-depth review of CUF standards would also provide clarity For instance it is unclear why force account items performed by certified DBEs are currently counted at only 50 of the value of the work How was this benchmark established Has it been reviewed since imposed Did it ldquosolverdquo whatever inequity WSDOT was trying to address Better clarity may lead to more expanded opportunities for certified DBE Subcontractors

Enhanced Supportive Services and Business Development Programs ndash Unless and until stronger programs of these types are shown to be effective in boosting certified DBE business development increased DBE participation due to stronger business acumen should not be relied upon when setting the new DBE goal

Does OMWBE have a reasonable expectation that future plans for enhanced and expanded programs will be more successful than those employed in the past Assuming that certified DBE Subcontractors will be better prepared to deal with the WSDOT contracting environment than in the past should not be relied upon to boost DBE participation goals Especially troubling were the multiple references within the CHA report highlighting that DBEs believe that the staff at OMWBE lack a deep knowledge about the highway construction industry (eg Study page 129 2nd paragraph) Does OMWBE have a path forward that will address this issue and thus improve supportive services impacts

Develop a Bonding and Financing Program for SBEs ndash This is completely outside of the prime contracting

communityrsquos scope of influence WSDOT must find a way to institute changes that both protect the taxpayer and help increase certified DBE bonding capacity and access to financing ndash very large hurtles To assume that these hurtles can effectively be overcome within the 2018 ndash 2020 time frame when they have been chromic issues for the past 20 plus years of DBE program development is not rational

A helpful innovation would be for WSDOT to underwrite performance and payment bonds for certified DBE firms or to create promote a system that helps certified DBE firms obtain private bonding Bridging the gap to address capital access and performance risks (bonding) must be championed by WSDOT

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 5 of 6

Base Figure Adjustment to Address Available Subcontract Volume and DBE Prime Contracts It is a fact that mid- to large-sized MBEWBE firms that compete both as Prime Contractors and as Subcontractors are not eligible to be OMWBE certified DBEs Further the current amount of contract unbundling for greater DBE access to WSDOT prime contracting (see below) accounts for a very low dollar volume of prime contracts performed by certified DBEs Finally by specification (WSDOT standard specification 1-081) Prime Contractors are obligated to perform 30 of the total volume of the work (less specialty work) or stated another way a maximum of 70 of the dollar volume on WSDOT projects is typically available to award to subcontractors These market dynamics are NOT addressed in the Disparity Study A responsible DBE goal made absent of these facts should not be implemented A reasonable adjustment to the proposed 19 DBE goal is presented below

bull The percent of WSDOT prime contracts awarded to certified DBE firms is likely less than 5 by total WSDOT

contract volume Assuming this approximation is valid (likely very conservative) then the amount of WSDOT contract work available to certified DBE firms via subcontracting should be adjusted to account for the factors outlined above The Base Figure (19) should be adjusted to recognize that a 70 maximum subcontractor participation is available (in the numerator) and to account for the assumed 5 certified DBE prime contracts in the denominator Reasonable Base Figure Adjustment 19 (proposed) x 70 subcontracts available divide 95 of Non-Certified DBEs as Prime Contract Volume = 190 x 0737 = 140 adjusted goal This is an adjustment based on the practical dynamics of the WSDOT contracting system and it represents a more realistic look at the true subcontract volume that is available for Prime Contractors to award to certified DBE firms

Conclusions

Until the items listed above are addressed and in place it is not reasonable to believe that DBE goals can be increased by nearly 163 (from 117 to 190) When the projected robust public works contracting market is appropriately considered the true availability of certified DBE Subcontractors for WSDOT contracts will be truncated due to demand across all public works sectors With multiple strong public works programs competing for a limited population of certified DBEs the ability to meet increased WSDOT DBE goals will be severely challenged Without very clear concise and transparent good faith effort rules the ability to address DBE goals that greatly overestimate true near term certified DBE capacity will result in non-attainment bid day chaos failures to perform andor rapidly increased pricing

The clear conclusion is that at this point in time under the current circumstances without effectively instituted new programs rules procedures that could enhance the certified DBE programrsquos overall effectiveness we believe that the DBE goal should remain at or near 12 As OMWBE documents and demonstrates its future successes in improving access and eliminating capacity barriers only then should the DBE goal be re-evaluated and increased

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 6 of 6

In closing please remember that it is rare that the contracting community is asked our opinion with respect to the WSDOTrsquos DBE policies and so this letter is somewhat a vehicle to highlight collective concerns It is our belief that the majority of the Prime Contractors in Washington state support the objective of creating a level playing field for ready willing and able DBEs

If the level playing field is not yet possible in the absence of the DBE program then the key is to set realistic goals that recognize reflect and address the hard realities and market dynamics imposed by WSDOTrsquos bedrock environment of awarding contracts to the lowest cost responsible and responsive Contractor

Respectfully submitted Washington Asphalt Pavement Association

David Gent Tom Gaetz Executive Director Senior Advisor

Attachment A ndash WSDOT Central Puget Sound Public Works Contracting Projection 2018 - 2022

Con

stru

ctio

n Pr

ojec

t Sta

rts

2018

-202

2S

ound

Tra

nsit

$22

6 B

SD

OT

$08

B

Tran

sit

amp O

ther

s$1

7 B

WS

DO

T$6

7 B

Por

t of

Sea

ttle

$15

B

TOTA

L$3

33

B

Source N

ov 1

9 2

017

pres

enta

tion

to W

APA

Ann

ual M

eetin

g

Attachment A

Work (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Dave Gent - WAPA [mailtodavegentasphaltwacom] Sent Thursday December 7 2017 144 PMTo Bayne Jackie ltBayneJwsdotwagovgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hi again Jackie Irsquom fine thanks and hope you are the same Interesting The Master DBE Directory is the basis for and integral to the conclusions of the DisparityStudy Is it not then part of the information needed to fully review and comment on the DisparityStudy Was it not provided by CHA to WSDOT for review We are trying to fully understand thestudy and if this directory was part of the study why would it need to be obtained by a publicrecords disclosure It should be in the public domain and not restricted from ease of access If you are sure that a public records request is needed Irsquoll start that process but we will need tonote that point of fact when we submit our public comments If you are able to reconsider please let me know Respectfully

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Thursday December 7 2017 126 PMTo Dave Gent - WAPA ltdavegentasphaltwacomgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hello Dave I hope you are doing well

That information would likely be obtained through a public disclosure request Best Regards Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Dave Gent - WAPA [mailtodavegentasphaltwacom] Sent Thursday December 7 2017 113 PMTo Bayne Jackie ltBayneJwsdotwagovgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Jackie Can you please provide an electronic file or provide a weblink for the Master DBE Directory thatColette Holt amp Associates developed for the WSDOT Disparity Study 2017 (first referred to on Page 8of the Disparity Study) I did not see a link to this Master DBE Directory within the study Thanks

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Friday October 27 2017 1118 AMTo Kenyon Wendy ltKenyonWwsdotwagovgt Adams E W ltewadamssystemsclcomgtAdekoyaAndrew ltandrewadekoyabccomgt AlyssaBalllegwagov Anindita Mitraltamitracrea-affiliatescomgt APRISeattlehotmailcom Armstrong CharlotteltCharlieAatgwagovgt Ato Apiafi Architects PLLC ltatoaatoapiaficomgt benzfanwaorgBerntsen Teresa (OMWBE) ltTeresaBomwbewagovgt Billingsley Andrealtbillinawsdotwagovgt Bramlet Erica ltEricaBramletlegwagovgt Brooks Julius

ltBrooksJwsdotwagovgt Brown Jason ltjbrownldccorpcomgt bwallacenwlaborersorgCamden Allison ltCamdenAwsdotwagovgt carlllivingstongmailcom Cerda OscarltCerdaOwsdotwagovgt Christopher Chris ltChristCwsdotwagovgt ckerneycaawagovdanplatinumbusinessgroupcom davegentasphaltwacom David BalltDavidsignsnowmillcreekcomgt Davis Khalia ltDavisKhwsdotwagovgt Davis RaShelle (GOVltrashelledavisgovwagovgt Dayton Jo ltDaytonJwsdotwagovgt ddhondtagcwacomDebbieDriverlegwagov Dennis ltdennisahlkiewitcomgt dmcleodnwlaborersorgdrart6651gmailcom Duncan Enid lthigradeincgmailcomgt EltonltEltonwashingtonstatetruckingcomgt eprincecaawagov flemosldccorpcomfmartineznwmtnmsdcorg geoffshookatkncom glovelady ltgloveladyexcelglovescomgtGrabow Katie ltkgrabowsystemsclcomgt Guilfucci Jackie ltJackieGuilfucciskanskacomgt HealyLinda ltHealyLwsdotwagovgt Higginbotham Breanne ltHigginBwsdotwagovgt HirscheyClaudia ltclaudiahirscheycomcastnetgt Holt Colette ltcoletteholtmwbelawcomgt Huff JohnltHuffJwsdotwagovgt Iniguezchawagov JacksonMaynardlegwagov Jimmy Matta(jmattaalcantarassoccom) ltjmattaalcantarassoccomgt kellywickergovwagov Key EarlltKeyEwsdotwagovgt Kirk Jon ltjkirkwhhnfscomgt Kris Purrier ltkpurrierhwageocomgtleewabuildingtradesorg lesliejonessoundtransitorg Liz Evans ltlevansagcwacomgt LopezErin lterinlopezdeswagovgt Martha Cerna ltMarthaPSLCCORGgt Martin-Arnold EdwinaltMartinEwsdotwagovgt Mary Lerdahl ltmarydbeelectricinccomgt McCarty Hannahlthannahmccartylegwagovgt Melissa L Boyles ltmelissaboylesmwbelawcomgt Metcalf KeithltMetcalKwsdotwagovgt michaelicapaawagov Michelle ltMichelleTTCC26netgt MillarRoger ltMillarRwsdotwagovgt Nakamura Jason ltjasonnakamura1-alliancecomgtNavarroLportseattleorg olliepmt-solutionscom pastorbanksesbctacomacom PatrickHughes ltphugheshughesgroupbizgt Petersen Jodi (FHWA) ltJodiPetersendotgovgtrabbottliunaorg rcarmsteadgmailcom ricemportseattleorg Riley D ltdrileylydigcomgtSeling ltSelingjpfranciscomgt sherryharrisergosynchcom Stell MellodyltStellMwsdotwagovgt terigobintulaliptribes-nsngov timwilliamfactorycom tinaterra-tdicom tkellyldccorpcom tomgaetzmsncom vcollinsacec-waorgverlenejazzmsncom Wang Albert ltWangAatgwagovgt Waugh GregltGregWMaxKuneyComgt Yates Henry ltYatesHWSDOTWAGOVgtCc Tom Gaetz lttomgaetzmsncomgt Dave Gent - WAPA ltdavegentasphaltwacomgt VanCollins ltvcollinsacec-waorggt Daniel Seydel II ltdanplatinumbusinessgroupcomgt MaynardJackson ltJacksonMaynardlegwagovgt Carl Livingston ltcarlllivingstongmailcomgt DonMcLeod ltdmcleodnwlaborersorggt JIMMY MATTA ltjimmymattamsncomgt Prince Ed(CAAA) lteprincecaawagovgt David DHondt ltddhondtagcwacomgt Irene Reyesltgloveladyexcelsupplycompanycomgt McDaniel Craig ltMcDaniCwsdotwagovgtsherryharrisergosynchcomSubject WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Good morning On Monday October 30th WSDOT will be releasing the proposed overall Federal HighwayAdministration Disadvantaged Business Enterprise goal attached for public comment throughDecember 15 2017 This overall DBE goal is based upon the recently completely DBE ProgramDisparity Study WSDOT is proposing a 19 percent overall DBE participation goal on Federal Highway

Administration-funded projects for federal fiscal years 2018 through 2020 DBE goals fortransportation projects that receive federal funds represent a percentage of the value of work inwhich minority- and women-owned businesses should participate Once finalized and submitted toFHWA early next year the goal will be effective through Sept 30 2020

The purpose of the DBE program is to create a level playing field for firms owned and operated bydisadvantaged individuals wanting to participate in federally assisted highway transit and aviationprograms The attached overall DBE goal is for FHWA funded projects WSDOT will be updating theFTA and FAA overall DBE goals in the near future

If you have any questions please contact Earl Key Director of the Office of Equal Opportunity at3607057091 or KeyEwsdotwagov Thank you Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

  • Proof-Of-Publicationpdf
    • Mediapdf
      • AGC
      • Daily Journal
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      • DBEGood
      • OMWBE
      • Seattle Medium
      • Tabor 100
      • The Chronicle
      • Tukwila
        • King County
          • Public-Comments-20180111pdf
            • 19 DBE Requirement(1)
            • AGC Comments on Proposed 10 Goad
            • Backstrom Curb amp Sidewalk
            • comments on WSDOT proposed DBE goal
            • Cowlitz County Public Works
            • DBE Contracting goals
            • DBE Goal
            • DBE Program Disparity Study
            • Disparity Study Comments from City of Spokane
            • FW_ WSDOT News - WSDOT seeks comments on propos
            • Proposed DBE Goals
            • RE_ DBE Contracting Goal Comments
            • Re_ DBE Goal Comments
            • Re_ Seydel Dan - WSDOT Disparity Study Present
            • Support for WSDOTs proposed DBE goal
            • Why we need mandatory goals
            • WSDOT DBE Goal - Comment in support
            • WSDOT Proposes DBE goal of 19
            • WSDOT propsed DBE Goals
            • WTS - Disparity Study Comment Letter

As a DBE business in 11 states we are supporting the 19 incentive for federallyfunded contracts but we are frustrated in the fact that we will not be one of the luckyfew to participateWe have been in business 20 years From our Vancouver Washington office our clientsare the Native American tribes across the country with all contracts federally funded This summer alone the WSDOT ICR Approval has squashed our ability to submit on twoprojects that we were perfectly qualified to performI have attached previous emails to show a sample of who I have been dealing with

Thank you

Michelle Wolcott EIT Quality Control Engineer

ltimage001pnggt

2103 NE 129th Street Suite 201 Vancouver WA 98686 Office (360) 448-7999 Fax (360) 258-0274 wwwred-plainscom

From Michelle Wolcott Sent Monday July 10 2017 954 AMTo Harvey Schatzie ltHarveySwsdotwagovgtSubject RE WSDOT Indirect Cost Rate Process

Good Morning Schatzie

This is Michelle Wolcott from Red We spoke Friday June 30th about the ICRprocess and you were very encouraging I relayed the information to my boss who ishere in Vancouver then he shared with the president bookkeeper and our accountantin Oklahoma We had FAR compliance with Oklahoma DOT in 2015 so we are noteligible for the Safe Harbor Program Our account said our timekeeping system doesnot breakdown the hours and pay in the format WSDOT wants to have it presented andto get the documents in order would take the CPA and an assistant $9000 in paidhours of work It turns out this would have to be annually The other option is to hirean outside CPA firm to do the audit for us at $20000 annually

Our president said in the past we received funding assistance from the Stateof Oklahoma to get our ICR approval Does WSDOT offer any financial assistance for small businesses to reach compliance We are also a DBE in WA I have requested the same information from WA PTAC at theVancouver Chamber of Commerce and from WA Office of Minority and Women OwnedBusiness Enterprises and they both said there was nothing but suggested to askWSDOTThank you for your helpMichelle Wolcott EIT

Hello Michelle sorry but I am not aware of any grants But I was looking at this andthere is a POC at the bottom you may try to discuss the audit issuesHollyHolly BoehmeBusiness Opportunity Specialist | 8(a) Business Development ProgramUS Small Business Administration bull Seattle District Office

Hello Michelle -

Thank you for your email Im not aware of any funding available for thispurpose but do agree its quite a bit for a DBE firm to have as an expense Mostof the firms I work with do a lot more work on the Oregon side so perhaps thereare programs available that I just havent heard of Im copying my colleagueHoly Boehme in our Seattle District Office to see if they are aware of any suchassistance

Holly might there be some small business incubators or other resources availablein WA to help a small firm with the expense of getting a WSDOT AuditedIndirect Cost Rate approval Please reply all with anything you may have

Thank you

Yuri Yoshida Dyson Business Opportunity SpecialistUS SMALL BUSINESS ADMINISTRATION Portland District OfficePhone 503-326-6692 Fax 202-292-3872 wwwsbagovor

From Troy HalbergTo Bayne JackieSubject Re DBE Goal CommentsDate Wednesday December 13 2017 35533 PM

JackieToday was another example of why the goals should not be raised There were 2 jobs which Iwas low on and did not get due to the high goals This is exactly what will happen when thegoals get raised The first job was the 9180 Anacortes Ferry Paving Northeast Electric $244924 and UDBE $318000 Second job was the 9172 SR 9 East Junction Job Northeast Electric $68503 and UDBE $76300

Does this seem like a good way to spend the tax payer money I do not see how we are tosurvive if the goals get to 21

Thanks

Troy HalbergOffice360-225-7004Cell360-931-3990Fax360-225-7001

On Thu Nov 30 2017 at 1131 AM Bayne Jackie ltBayneJwsdotwagovgt wrote

Good Morning Troy

Thank you for taking the time to provide us with your experiences with the DBE Program TheWashington State Department of Transportation takes the public involvement process veryseriously and your comments will be taken into consideration prior to a final decision regardingthe overall DBE program goal

If I can be of further assistance please let me know

Best Regards

Jackie Bayne

Policy and Reporting Manager

WSDOT Office of Equal Opportunity

Work (360) 705-7084

Cell (360) 338-5783

BayneJwsdotwagov

From Troy Halberg [mailtotroyhnellcnet] Sent Wednesday November 29 2017 144 PMTo WSDOT Disparity Study ltDisparityStudyWSDOTWAGOVgtSubject DBE Goal Comments

If these goals are to be set that high this would make us as a non DBE small contractor at amajor disadvantage With these high of goals this is like handing all of the DBE electricalcontractors every job These general contractors will have no option but to use thembecause of the goals This should not go into effect We have been low on several jobs in thepast and have not gotten them do to the goals being 18 When this goes on it puts all therest of us contractors at a disadvantage Please consider the smaller non DBE contractorsthat are looking to survive as well

Thanks

Troy Halberg

Office360-225-7004

Cell360-931-3990

Fax360-225-7001

From Daniel Seydel IITo Bayne JackieCc Key Earl daneiwashingtonorg Nadeem Ismail Mussie Tewelde (mteweldehydro2geotechcom)

graceflyrightaolcom Mary Wenner Watkinson LarrySubject Re Seydel Dan - WSDOT Disparity Study Presentation Public TestimonyDate Friday December 8 2017 30323 PM

Jackie

It was my hope that the comments would be put into record I was also hoping that you wouldnot have to be the one having to formulate responses for each clarification If that is the caseI know you are swamped and will then I just ask my comments be only part of the recordHowever if there is dedicated staff that is going to be compiling and responding to theclarification then the below questions would be the priorities of most interest

These were questions unrelated to the disparity study and hopefully should be doable

1) Do you have any reports on your outcomes from the past 5 years on DBE support servicesand specific key performance measures from previous years funding (ie how many firmsutilized what was the objectives were objectives met did outcomes meet total satisfaction ifnot why next steps what was the firms capacity before and after services were performed (iesales employees bonding if applicable insurance equipment line of credit if applicablenumbertype of customers how are they doing now etc))

2) What other changes or improvements other than allowing DBES to select their own serviceproviders and a staff change will be a part of this new program

3) Was consideration to provide the new mentor protege consultant rather than separating theactivities into support services andor technical assistance

Disparity study clarifications

1) Will WSDOT consider sponsoring legislation to support the policy changes and goalincreases to insure manditory goals wont be necessary

a) If not what measures will you grant primes to operate outside the box (ie entertain bestvalue over low bid modify responsiveness by subs to require adherence to meeting voluntarygoals developing standards around federally funded gccm and other low bid procurementsthat give powers to primes to meet objectives including but not limited to mentor protegerelationships joint ventures bond waiving techniques cash flow assistance material andequipment acquisition manufacturer development specifications that have only DBES orinclude equal number of DBES as non DBES as approved installers etc)

2) Will the disparity study consultant be available for implementation or information gatheringfrom other regions

5) Will WSDOT be hiring more diverse staff amp professionaltechnical service providers inother departments outside OEO to insure policies commitments and evaluations areperformed in manner that improves diversity that reflects the communities WSDOT serves bythoughtful and legal efforts increase participation thus creating successful outcomes includingpartnerships and collaborations

Thank you and Merry Christmas

Hi Dan

Thank you for providing such thoughtful public comments questions and testimony

Regarding your public testimony below - I do not believe I am not able to answer questions ifthey are public comments Please let me know what part of this email you would likeclarification on and what part you would like considered public testimony

I appreciate your thoughtful consideration of WSDOTrsquos implementation of our civil rightsprograms

Best Regards

Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

DIDaniel Seydel IIFyi Daniel J Seydel II Platinum Group LLC 2064060844 f) 2062999934wwwplatinumbusinessgroupcom Small Business is the Answer FREE TRAINING FORENTREPRENEURS amp JOB SEEKERS - Polish your skills or make your firm standout thanksto the EntrepreneurialThu 233pDI

Daniel Seydel IIThu 1272017 1123 AMInbox Sent ItemsShow all 7 recipientsTobaynejwsdotwagov ltBayneJwsdotwagovgtJackie

Per your request below are my questions and comments some of which were verbally sharedyesterday

Congratulations on receiving the blessing of additional technical assistance dollars andcompleting the DBE Disparity Study per your report

1) Do you have any reports on your outcomes from the past 5 years on DBE support servicesand specific key performance measures from previous years funding (ie how many firmsutilized what was the objectives were objectives met did outcomes meet total satisfaction ifnot why next steps what was the firms capacity before and after services were performed (ie

sales employees bonding if applicable insurance equipment line of credit if applicablenumbertype of customers how are they doing now etc))

2) What other changes or improvements other than allowing DBES to select their own serviceproviders and a staff change will be a part of this new program

3) Was consideration to provide the new mentor protege consultant rather than separating theactivities into support services andor technical assistance

Disparity study clarifications andor comments

1) Will WSDOT consider sponsoring legislation to support the policy changes and goalincreases to insure manditory goals wont be necessary

a) If not what measures will you grant primes to operate outside the box (ie entertain bestvalue over low bid modify responsiveness by subs to require adherence to meeting voluntarygoals developing standards around federally funded gccm and other low bid procurementsthat give powers to primes to meet objectives including but not limited to mentor protegerelationships joint ventures bond waiving techniques cash flow assistance material andequipment acquisition manufacturer development specifications that have only DBES orinclude equal number of DBES as non DBES as approved installers etc)

2) Will the disparity study consultant be available for implementation or information gatheringfrom other regions

3) What lessons did WSDOT learn that it did not know from the other study(s)

4) What would WSDOT do different (ie scope time line process approach etc)

5) Will WSDOT be hiring more diverse staff amp professionaltechnical service providers inother departments outside OEO to insure policies commitments and evaluations areperformed in manner that improves diversity that reflects the communities WSDOT serves bythoughtful and legal efforts increase participation thus creating successful outcomes includingpartnerships and collaborations

Daniel J Seydel IIPlatinum Group LLC 2064060844f) 2062999934wwwplatinumbusinessgroupcom

Small Business is the Answer

FREE TRAINING FOR ENTREPRENEURS amp JOB SEEKERS - Polish your skills or makeyour firm standout thanks to the Entrepreneurial Institute of Washington

httpswwwyoutubecomchannelUCKL5YeVxL29HnNxqnb6hmXA

LIKE US on FaceBook if an Active Professional Development workshop provided by EIW

Construction University helps your firm or has benefited you

httpswwwfacebookcomEIWashingtonref=hl

From Bayne Jackie ltBayneJwsdotwagovgtSent Friday December 8 2017 10139 PMTo Daniel Seydel IICc Key Earl daneiwashingtonorg Nadeem Ismail Mussie Tewelde(mteweldehydro2geotechcom) graceflyrightaolcom Mary Wenner Watkinson LarrySubject RE Seydel Dan - WSDOT Disparity Study Presentation Public Testimony Hi Dan Thank you for providing such thoughtful public comments questions and testimony Regarding your public testimony below - I do not believe I am not able to answer questions if theyare public comments Please let me know what part of this email you would like clarification on andwhat part you would like considered public testimony I appreciate your thoughtful consideration of WSDOTrsquos implementation of our civil rights programs Best Regards Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov From Daniel Seydel II [mailtodanplatinumbusinessgroupcom] Sent Thursday December 7 2017 1123 AMTo Bayne Jackie ltBayneJwsdotwagovgtCc Key Earl ltKeyEwsdotwagovgt daneiwashingtonorg Nadeem Ismailltnipaintingearthlinknetgt Mussie Tewelde (mteweldehydro2geotechcom)ltmteweldehydro2geotechcomgt graceflyrightaolcom Mary Wennerltmwenn0108yahoocomgtSubject Seydel Dan - WSDOT Disparity Study Presentation Public Testimony Jackie

Per your request below are my questions and comments some of which were verbally sharedyesterday

Congratulations on receiving the blessing of additional technical assistance dollars andcompleting the DBE Disparity Study per your report

1) Do you have any reports on your outcomes from the past 5 years on DBE support servicesand specific key performance measures from previous years funding (ie how many firmsutilized what was the objectives were objectives met did outcomes meet total satisfaction ifnot why next steps what was the firms capacity before and after services were performed (iesales employees bonding if applicable insurance equipment line of credit if applicablenumbertype of customers how are they doing now etc))

2) What other changes or improvements other than allowing DBES to select their own serviceproviders and a staff change will be a part of this new program

3) Was consideration to provide the new mentor protege consultant rather than separating theactivities into support services andor technical assistance

Disparity study clarifications andor comments

1) Will WSDOT consider sponsoring legislation to support the policy changes and goalincreases to insure manditory goals wont be necessary

a) If not what measures will you grant primes to operate outside the box (ie entertain bestvalue over low bid modify responsiveness by subs to require adherence to meeting voluntarygoals developing standards around federally funded gccm and other low bid procurementsthat give powers to primes to meet objectives including but not limited to mentor protegerelationships joint ventures bond waiving techniques cash flow assistance material andequipment acquisition manufacturer development specifications that have only DBES orinclude equal number of DBES as non DBES as approved installers etc)

2) Will the disparity study consultant be available for implementation or information gatheringfrom other regions

3) What lessons did WSDOT learn that it did not know from the other study(s)

4) What would WSDOT do different (ie scope time line process approach etc)

5) Will WSDOT be hiring more diverse staff amp professionaltechnical service providers inother departments outside OEO to insure policies commitments and evaluations areperformed in manner that improves diversity that reflects the communities WSDOT serves bythoughtful and legal efforts increase participation thus creating successful outcomes includingpartnerships and collaborations

Thank you for your hard work

Daniel J Seydel IIPlatinum Group LLC2064060844f) 2062999934wwwplatinumbusinessgroupcom

Small Business is the Answer

FREE TRAINING FOR ENTREPRENEURS amp JOB SEEKERS - Polish your skills or makeyour firm standout thanks to the Entrepreneurial Institute of Washington

httpswwwyoutubecomchannelUCKL5YeVxL29HnNxqnb6hmXA

LIKE US on FaceBook if an Active Professional Development workshop provided by EIWConstruction University helps your firm or has benefited you

httpswwwfacebookcomEIWashingtonref=hl

From Erin EhlingerTo Bayne JackieSubject Support for WSDOTs proposed DBE goalDate Wednesday December 13 2017 115417 AM

I am writing to support the WSDOT recommended DBE Goal for FHWA contracts of 190 I also want to express my appreciation for the thoroughness of the WSDOT Disparity study and howthe study disclosed the disparity in WSDOT contracts that do not have a DBE or WBE goal ndash furtherreinforcing that all women-owned firms and minority owned firms face equity issues I remain concerned with the methodology required by the Code of Federal Regulations and case lawbecause of the dependence on the availability of firms in the calculation An unintendedconsequence of removing either gender or race from the goal is that many of these firms would goout of business the availability decreases and the formula then results in a smaller DBE goal Pleaselet me know how I can help influence a change to the CFR Thank you Erin Ehlinger

Erin Ehlinger PEPresident

24036 SE 47th StSammamish WA 98029erinehlingersmartcitytrafficcom425-221-0320

From Jackie EtterTo WSDOT Disparity StudySubject Why we need mandatory goalsDate Friday December 1 2017 61859 PM

As a DBE participating in bidding process I have found that regardless of the language which claims to insurethat disadvantaged business enterprises shall not be discriminated against the only way to ensure that this does nothappen is by mandating affirmative action goals Having been overlooked time and time again because of my gender when I have submitted bids that are verycompetitive with other bidders is very frustrating I have had many instances of companies using my price to getmy non DBE competitors to lower theirs The voluntary or laudatory DBE goals do nothing to ensure a level playing fieldThe only way to ensure non-discrimination is through mandatory goals

Jackie EtterWest Star Construction of Spokane

Sent from my iPhone

From Claudia HirscheyTo Key Earl Bayne JackieSubject WSDOT DBE Goal - Comment in supportDate Tuesday December 12 2017 61937 PM

Dear Earl and Jackie The WSDOT recommended DBE Goal for FHWA contracts of 190 is a small and important increasethat can further achieve equity in WSDOTFHWA contracting I am in support of the 19 DBE Goal I also want to express my appreciation for the thoroughness of the WSDOT Disparity study and howthe study disclosed the disparity in WSDOT contracts that do not have a DBE or WBE goal ndash furtherreinforcing that all women-owned firms and minority owned firms face equity issues I remain concerned with the methodology required by the Code of Federal Regulations and case lawbecause of the dependence on the availability of firms in the calculation An unintendedconsequence of removing either gender or race from the goal is that many of these firms would goout of business the availability decreases and the formula then results in a smaller DBE goal Sincerely Claudia S Hirschey PETransportation Consulting Servicesclaudiahirscheycomcastnethttphirscheytcscom2068564988 Mobile

From Nate ThomasTo WSDOT Disparity StudySubject WSDOT Proposes DBE goal of 19Date Thursday December 7 2017 42720 PM

The WSDOT should look into similar ways the Federal Gov has handled the equal opportunity forthose that fall under the DBE status and set aside specific projects for the DBErsquos and moreimportantly UDBErsquos so these companies have better chance of landing contracts Maybe a lot 10 ofthe DBE goal to set aside for only DBEs and other 9 goal met as it is done currently with COA onlarger contracts Nate ThomasSenior EstimatorD 5095688085 | C 5099941156331 North Fancher Road | Spokane WA | 99212

The information contained in this email including any attachments is confidential and may beprivileged It is intended only for the person or entity to which it is addressed and no waiver isintended by sending this email If the reader is not the intended recipient you are herebynotified that any review retransmission dissemination or other use of or taking any action inreliance upon this information is strictly prohibited If you have received this email in errorkindly notify the sender by reply email and delete the original message from any computerThank You

From Brian FujiiTo WSDOT Disparity StudySubject WSDOT propsed DBE GoalsDate Thursday December 7 2017 110638 AM

Good morning Jackie

I wanted to comment on WSDOTs proposed DBE goal to 19 I believe WSDOTs plan toincrease the overall DBE goal to 19 will provide greater opportunities for DBE contractorsin different disciplines to participate in federally funded contracts

Without the new DBE requirement and with Proposition 200 there are limited opportunitiesfor DBE contractors in disciplines different than the typical trucking flagging and rebar Inaddition there are no incentives for general contractors to go out beyond the usual truckingflagging and rebar DBE subcontractors

Increasing the DBE goals will provide opportunities for different DBE contractors in differentdisciplines to participate in WSDOT federally funded projects

Thank you for your time

RespectfullyBrian FujiiPresident Subsurface ConstructionP 2063836478F 2069604639MDBE 4M0024998

From Forman StephanieTo Bayne JackieCc Millar Roger christinenhanmailhousegov Claudia Hirschey Sarah Corbin Jiang Yingle

efaulknerenviroissuescom Diana Giraldo Kelly CheesemanSubject WTS - Disparity Study Comment LetterDate Friday December 15 2017 71020 PMAttachments 2017_Dec 15_WTSCommentLetter_WSDOT DBE Goalpdf

Dear Ms Bayne Please find our attached letter which summarizes the WTS Puget Sound Chapterrsquos support foradvancement of women in transportation and our comment letter regarding the recent DisparityStudy Please feel free to contact me if you have any questions or would like to discuss Sincerely Stephanie S Forman PEWTS Puget Sound President Transportation Project Manager

929 108th Avenue NE Suite 1300Bellevue WA 98004D 4254681548 M 2062291745stephanieformanhdrinccom

December 15 2017

Jackie Bayne Policy and Reporting Manager

Office of Equal Opportunity

Washington State Department of Transportation

PO Box 47314

Olympia WA 98504-7314

Dear Ms Bayne

On behalf of the Puget Sound Chapter of Womenrsquos Transportation Seminar (WTS) we would

like to thank the Washington State Department of Transportation for presenting to our

organization the DBE Disparity Study results We very much appreciated the presentation by Earl

Key Director of WSDOTrsquos Office of Equal Opportunity Teresa Berntsen (Director Office of Minority

and Womens Business Enterprises) as well as Leslie Jones (Director Sound Transit Office of Small

Business Development and Labor Compliance)

Following a review of the WSDOT Disparity Study and as a result of consultation with WTS

International we would like to provide WSDOT with our comments for your consideration

As you know WTS is an organization focused exclusively on attracting retaining and advancing

women in transportation By the year 2018 there will be thousands of vacancies in the

transportation industry for qualified professionals and while women account for more than half of

the worldrsquos workforce they are a very small minority in transportation disciplines

We are pleased that the outcome of the 2017 Disparity Study that recognizes the on-going barriers

for DBEs including women-owned businesses in transportation The WSDOT recommended DBE

Goal of 190 is a small and important increase that can further achieve equity in WSDOTFHWA

contracting We are also pleased that the 2017 Disparity Study has documented the disparity in

WSDOT contracts that do not have a DBE or WBE goal ndash further reinforcing that all women-owned

firms and minority owned firms face equity issues We are encouraged that the WSDOT has asked

FHWA to rescind the 2016 waiver

While WTSrsquo mission is specific to the advancement of women we are a race-neutral organization To

this end we are also deeply concerned about the underutilization of minority owned firms There is

no equity or ldquofair playing fieldrdquo without equity for all gender and races We remained concerned with

the methodology required by the Code of Federal Regulations and case law because of the

dependence on the availability of firms in the calculation An unintended consequence of removing

either gender or race from the goal is that many of these firms would go out of business the

availability decreases and the formula then results in a smaller DBE goal This consequence is

contrary to our mission

We look forward to our continued participation in WSDOTrsquos DBE advisory group we are anticipating

notice that the 2016 waiver has been rescinded and how we can work together to continue

advancing minority and women-owned firms in the transportation field

Sincerely

WTS Puget Sound Chapter

Stephanie Forman

President

C Roger Millar Secretary WSDOT

C Representative Adam Smith 9th Congressional District Washington co Christine Nhan

WTS Puget Sound Chapter

PO Box 3461

Bellevue Washington 98009

From Dave Gent - WAPATo Bayne JackieCc Tom GaetzSubject WAPA Public Comments - RE WSDOT FHWA Disadvantaged Business Enterprise Proposed GoalDate Friday December 15 2017 14119 PMAttachments 12152017 DBE Proposed Goal - WAPA Public Comments Letterpdf

Good afternoon Jackie Please find attached WAPArsquos ldquofor the public recordrdquo comments with respect to WSDOTrsquos proposedDBE Goals FHWA funded work I assume that the Master DBE Directory was not sent to you this week so as a result we were notable to review the directory before the close of the public comment period That fact is noted withinour comment letter Thank you for your efforts Have a good weekend

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Friday December 8 2017 1219 PMTo Dave Gent - WAPA ltdavegentasphaltwacomgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hello Dave WSDOT did not take possession of this directory as part of our review process We will provide youwith the records without submitting a formal request However we need to get them from theconsultant first I will hopefully have them to provide next week I will keep you updated on therequest Have a nice weekend Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal Opportunity

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

December 15 2017

Jackie Bayne Policy Manager WSDOT Office of Equal Opportunity Delivered via e-mail to BayneJwsdotwagov RE Public Comment (as requested) to Proposed Overall DBE Goal for the FHWA (2018 ndash 2020) Ms Bayne Thank you for your presentation via webinar on December 5 2017 outlining WSDOTrsquos evaluation process used to determine the proposed overall DBE goal for the FHWA Thank you also for the Colette Holt amp Associates (CHA) DBE Advisory Group presentation made on September 14 2017 Both presentations helped to distill the findings of the 2017 Disparity Study produced by CHA In response to Earl Keyrsquos initial informal request to comment on the proposed overall DBE goal made during the DBE Advisory Committee teleconference held on October 12th we provided a list of reasons that we believe justify a lower DBE goal than is now being proposed Our initial response to Mr Keyrsquos request did not serve to influence WSDOT and the current proposed goal remains at 190 The arguments provided on October 12th against the significant increase in the proposed DBE goal (versus the previous goal and recent historic DBE participation) are repeated and supplemented below and will serve as the Asphalt Pavement Associationrsquos (WAPArsquos) official public comments

In concert with WSDOT and the OWMBE WAPA and the construction firms that WAPA represents have demonstrated a commitment to the principals of equal opportunity for all ldquoready willing and ablerdquo firms for the entire history that our DBE program has been in place WAPA has continuously demonstrated its commitment to the goals of the DBE program and for increasing the representation of disadvantaged groups within our industry as both workers and owners of firms Please recognize that WAPArsquos oversight and critique of the DBE program has always attempted to balance the principals of fair and open competition with the practical aspects of the low bid compressed schedule high performance standards demanded within the WSDOT marketplace Our comments below are meant to enhance WSDOTrsquos and OWMBErsquos understanding of the market and to hopefully have WSDOT fully consider all of the dynamics that are at play when proposing its Triennial DBE goal for FHWA projects Current DBE Capacity vs Historically Robust Market In advocating for a realistic and defensible DBE goal it has always been WAPArsquos position that it is paramount that the realities of the marketplace and true certified DBE subcontracting capacity should be a primary standard While a ldquostretchrdquo goal may appear to be progressive on its face it comes with consequences for all of the parties involved in the WSDOT federal aid contracting arena To balance the dynamics of the WSDOT contracting system the DBE goal should be tempered with the realities of the market and with a true measure of the underlying effectiveness of the DBE support services available to contractors

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 2 of 6 The first point of fact that has not been given any apparent consideration by WSDOT in its evaluation of the current capacity of certified DBErsquos is that there is an historically robust workload scheduled to be performed in the 2017 through 2022 time-frame particularly in the Puget Sound ldquoEverett to Olympiardquo corridor By WSDOTrsquos own estimates (see Attachment A) public works construction project starts in the 2018 to 2022 time-frame in this region will exceed $333 billion (B) counting the work projected from just five public entities WSDOT will be taking a decidedly ldquoback seatrdquo role during this period to Sound Transit which will have construction project starts of $226B vs WSDOTrsquos projected volume of $67B WSDOTrsquos summary publication titled Washington State Department of Transportations Proposed Federal Highway Administration Triennium Disadvantaged Business Enterprise Goal Federal Fiscal Years 2018-2020 states correctly that ldquoIncluded among the types of evidence that must be considered are the current capacity of DBEs to perform work on WSDOTrsquos federally-assisted contracts as measured by the volume of work DBEs have performed in recent yearshelliprdquo (Step Two Adjustment discussion) With the Sound Transit program being over 300 larger than the total WSDOT program in this region a sober assessment of true certified DBE capacity in the next three years needs to be considered by WSDOT If the huge construction boom over the next five years does not prompt a Step Two Adjustment then it becomes obvious that the realities of the market are being ignored by WSDOT for DBE goal setting Put another way if the 2018 through 2022 level of contracting activity does not warrant a goal adjustment what will DBE Access Barriers Not Yet Addressed The CHA 2017 Disparity Study points out multiple recommendations in Section VII that impact DBE participation and access to the market Assessments relating to those impacts and the state of maturity in addressing the CHA recommendations should be considered when assessing the DBE goal Many of the CHA recommendation have not been adequately addressed at this point in time Some of the prime examples are listed below Increase Certification and Expertise ndash The Disparity Study as explained to us includes all minority- (MBE)

and women-owned (WBE) firms that could be readily identified that perform work within Washington State and that perform work within the NAICS code framework CHA developed to cover WSDOT project work During the various presentations relating to the Disparity Study WSDOT representatives said that outreach to currently non-certified MBE amp WBE firms has increased and that WSDOT aspires to bolster its list of certified firms in the future but this effort is just beginning and the success of the effort needs to be means tested against the broader population of MBE amp WBE firms included in the CHA base line evaluation As the Disparity Study uses a much broader population of MBE WBE contractors to arrive at its conclusions (both non-certified firms and firms too large for certification) it follows that the calculated DBE proposed goal is overstated to include capacity that does not currently exist within WSDOTrsquos certified DBE framework Unless OMWBE is experiencing sudden and unprecedented success in recruiting new MBEWBE firms the DBE goal should be adjusted downward to recognize that the ldquoready willing and ablerdquo contractors that WSDOT has certified is only a subset of the total MBEWBE contracting population used in the Disparity Study evaluation

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 3 of 6

Until the promised WSDOT outreach registration efforts result in a substantial increase in available certified DBE firms it is premature to count the entire population of minority- and women-owned contractors as available to participate in WSDOT contracting It is unreasonable for WSDOT to project availability capacity using the entire MBEWBE population when only its currently truncated list of certified firms is acceptable to count toward the DBE goal

A corollary to the Increase Certification and Expertise discussion above is that the calculation of the Base Figure evidently includes the broadest practical population of MBE and WBE firms identifiable (without a review of the CHA Master DBE Directory which has not been supplied prior to the close of the public comment period the scope of the directory cannot be ascertained) If this directory includes a large population of MBEWBE firms that are not certified or are too large to be certified then the Base Figure calculation should be adjusted to reflect that certified DBE firms are a fraction of the total MBEWBE firms used to arrive at the 19 suggested DBE goal With respect to the CHA Master Directory it is our understanding the WSDOT was not given the directory as part of its evaluation of the Disparity Study and it follows that it did not evaluate the proposed DBE goal in the context of the CHA Master DBE Directory In our opinion an informed decision on adjusting the CHA baseline goal calculation can only be done after an extensive evaluation of the CHA Master DBE Directory If this has not been done WSDOT has not exercised due diligence in evaluating the context and underpinnings of the CHA Disparity Study and a certified DBE Triennium goal proposal to the FHWA is premature Increase Contract ldquoUnbundlingrdquo ndash If this proposed strategy (suggested by the CHA Study) is undertaken

certified DBE Subcontractors currently available will be engaged as Prime Contractors and the value of their prime contracts will bolster the overall percentage of certified DBE contracting but a systematic effort and strategy to ldquounbundlerdquo has not been articulated by WSDOT The key question of how this effort can be accomplished without increased cost to the taxpayers and increased inconvenience for the traveling public As noted in the CHA study (page 129 final paragraph) ldquoUnbundling must be conducted however within the constraints of the need to ensure efficiency and limit cost to the taxpayersrdquo As of this writing no overarching strategy for further unbundling with proper accountability has been articulated by WSDOT to the DBE Advisory Group

Review Insurance and Experience Requirements ndash Impediments to certified DBE participation due to

necessary insurance and experience standards cannot be solved by the prime contracting community Unless and until WSDOT puts together programs to address the burden of the substantial risks shouldered by Prime Contractors on WSDOT contracts barriers for streamlined utilization of certified DBE firms will continue to exist These market driven barriers will continue to dampen the availability of certified DBE Subcontractors that are able to perform within WSDOTrsquos strict criteria without unduly transferring risk to the Prime Contractor

Better Partnering to Overcome DBE Failures to Perform ndash Prime Contractors are held fully responsible to maintain the project schedule and are subject to project liquidated damages even when they may be struggling to deal with Subcontractor performance issues It is well-established that replacing a certified ldquocondition of awardrdquo (COA) DBE Subcontractor is very onerous and likely very costly to the Prime Contractor Unfortunately the imposition of strict and often counter-productive commercially useful function (CUF) rules often compound this issue as Prime Contractors cannot help COA DBE Subcontractors work through capacity expertise or time-related issues that impact timely performance

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 4 of 6

WSDOT needs to be a much better partner in the process of dealing with under-performing or non-performing certified DBE Subcontractors The current standard operational procedure places all of the exposure for non-performance onto the Prime WSDOT does not have an equitable system to account for non-performing or under-performing certified DBE Subcontractors hired as a condition of award (COA)

Performance Information and Training ndash Commercially useful function rules (CUF) and the lack of clear benchmark definitions for good faith effort (GFE) standards remain barriers for improving accountability within the DBE system and in turn lead to distorted DBE participation rates These items remain amorphous due to lack of training or lack of historic information Chronic uncertainty exists regarding both of these items Until WSDOT changes and improves its approach to provide transparency and certainty for both the prime bidding amp subcontracting parties true certified DBE capacity will continue to be masked and the resultant higher subcontracting costs associated with a distorted marketplace will continue to be hidden

WAPA respectfully suggests that simply adding an ldquoEstimated DBE Subcontract Premiumrdquo line to the current DBE bid forms would help to establish benchmarks that could begin to be used to ldquomeans testrdquo good faith efforts If this information had been gathered over the last 20 years of the DBE program meaningful GFE standards could have been developed and could be in place today

An in-depth review of CUF standards would also provide clarity For instance it is unclear why force account items performed by certified DBEs are currently counted at only 50 of the value of the work How was this benchmark established Has it been reviewed since imposed Did it ldquosolverdquo whatever inequity WSDOT was trying to address Better clarity may lead to more expanded opportunities for certified DBE Subcontractors

Enhanced Supportive Services and Business Development Programs ndash Unless and until stronger programs of these types are shown to be effective in boosting certified DBE business development increased DBE participation due to stronger business acumen should not be relied upon when setting the new DBE goal

Does OMWBE have a reasonable expectation that future plans for enhanced and expanded programs will be more successful than those employed in the past Assuming that certified DBE Subcontractors will be better prepared to deal with the WSDOT contracting environment than in the past should not be relied upon to boost DBE participation goals Especially troubling were the multiple references within the CHA report highlighting that DBEs believe that the staff at OMWBE lack a deep knowledge about the highway construction industry (eg Study page 129 2nd paragraph) Does OMWBE have a path forward that will address this issue and thus improve supportive services impacts

Develop a Bonding and Financing Program for SBEs ndash This is completely outside of the prime contracting

communityrsquos scope of influence WSDOT must find a way to institute changes that both protect the taxpayer and help increase certified DBE bonding capacity and access to financing ndash very large hurtles To assume that these hurtles can effectively be overcome within the 2018 ndash 2020 time frame when they have been chromic issues for the past 20 plus years of DBE program development is not rational

A helpful innovation would be for WSDOT to underwrite performance and payment bonds for certified DBE firms or to create promote a system that helps certified DBE firms obtain private bonding Bridging the gap to address capital access and performance risks (bonding) must be championed by WSDOT

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 5 of 6

Base Figure Adjustment to Address Available Subcontract Volume and DBE Prime Contracts It is a fact that mid- to large-sized MBEWBE firms that compete both as Prime Contractors and as Subcontractors are not eligible to be OMWBE certified DBEs Further the current amount of contract unbundling for greater DBE access to WSDOT prime contracting (see below) accounts for a very low dollar volume of prime contracts performed by certified DBEs Finally by specification (WSDOT standard specification 1-081) Prime Contractors are obligated to perform 30 of the total volume of the work (less specialty work) or stated another way a maximum of 70 of the dollar volume on WSDOT projects is typically available to award to subcontractors These market dynamics are NOT addressed in the Disparity Study A responsible DBE goal made absent of these facts should not be implemented A reasonable adjustment to the proposed 19 DBE goal is presented below

bull The percent of WSDOT prime contracts awarded to certified DBE firms is likely less than 5 by total WSDOT

contract volume Assuming this approximation is valid (likely very conservative) then the amount of WSDOT contract work available to certified DBE firms via subcontracting should be adjusted to account for the factors outlined above The Base Figure (19) should be adjusted to recognize that a 70 maximum subcontractor participation is available (in the numerator) and to account for the assumed 5 certified DBE prime contracts in the denominator Reasonable Base Figure Adjustment 19 (proposed) x 70 subcontracts available divide 95 of Non-Certified DBEs as Prime Contract Volume = 190 x 0737 = 140 adjusted goal This is an adjustment based on the practical dynamics of the WSDOT contracting system and it represents a more realistic look at the true subcontract volume that is available for Prime Contractors to award to certified DBE firms

Conclusions

Until the items listed above are addressed and in place it is not reasonable to believe that DBE goals can be increased by nearly 163 (from 117 to 190) When the projected robust public works contracting market is appropriately considered the true availability of certified DBE Subcontractors for WSDOT contracts will be truncated due to demand across all public works sectors With multiple strong public works programs competing for a limited population of certified DBEs the ability to meet increased WSDOT DBE goals will be severely challenged Without very clear concise and transparent good faith effort rules the ability to address DBE goals that greatly overestimate true near term certified DBE capacity will result in non-attainment bid day chaos failures to perform andor rapidly increased pricing

The clear conclusion is that at this point in time under the current circumstances without effectively instituted new programs rules procedures that could enhance the certified DBE programrsquos overall effectiveness we believe that the DBE goal should remain at or near 12 As OMWBE documents and demonstrates its future successes in improving access and eliminating capacity barriers only then should the DBE goal be re-evaluated and increased

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 6 of 6

In closing please remember that it is rare that the contracting community is asked our opinion with respect to the WSDOTrsquos DBE policies and so this letter is somewhat a vehicle to highlight collective concerns It is our belief that the majority of the Prime Contractors in Washington state support the objective of creating a level playing field for ready willing and able DBEs

If the level playing field is not yet possible in the absence of the DBE program then the key is to set realistic goals that recognize reflect and address the hard realities and market dynamics imposed by WSDOTrsquos bedrock environment of awarding contracts to the lowest cost responsible and responsive Contractor

Respectfully submitted Washington Asphalt Pavement Association

David Gent Tom Gaetz Executive Director Senior Advisor

Attachment A ndash WSDOT Central Puget Sound Public Works Contracting Projection 2018 - 2022

Con

stru

ctio

n Pr

ojec

t Sta

rts

2018

-202

2S

ound

Tra

nsit

$22

6 B

SD

OT

$08

B

Tran

sit

amp O

ther

s$1

7 B

WS

DO

T$6

7 B

Por

t of

Sea

ttle

$15

B

TOTA

L$3

33

B

Source N

ov 1

9 2

017

pres

enta

tion

to W

APA

Ann

ual M

eetin

g

Attachment A

Work (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Dave Gent - WAPA [mailtodavegentasphaltwacom] Sent Thursday December 7 2017 144 PMTo Bayne Jackie ltBayneJwsdotwagovgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hi again Jackie Irsquom fine thanks and hope you are the same Interesting The Master DBE Directory is the basis for and integral to the conclusions of the DisparityStudy Is it not then part of the information needed to fully review and comment on the DisparityStudy Was it not provided by CHA to WSDOT for review We are trying to fully understand thestudy and if this directory was part of the study why would it need to be obtained by a publicrecords disclosure It should be in the public domain and not restricted from ease of access If you are sure that a public records request is needed Irsquoll start that process but we will need tonote that point of fact when we submit our public comments If you are able to reconsider please let me know Respectfully

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Thursday December 7 2017 126 PMTo Dave Gent - WAPA ltdavegentasphaltwacomgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hello Dave I hope you are doing well

That information would likely be obtained through a public disclosure request Best Regards Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Dave Gent - WAPA [mailtodavegentasphaltwacom] Sent Thursday December 7 2017 113 PMTo Bayne Jackie ltBayneJwsdotwagovgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Jackie Can you please provide an electronic file or provide a weblink for the Master DBE Directory thatColette Holt amp Associates developed for the WSDOT Disparity Study 2017 (first referred to on Page 8of the Disparity Study) I did not see a link to this Master DBE Directory within the study Thanks

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Friday October 27 2017 1118 AMTo Kenyon Wendy ltKenyonWwsdotwagovgt Adams E W ltewadamssystemsclcomgtAdekoyaAndrew ltandrewadekoyabccomgt AlyssaBalllegwagov Anindita Mitraltamitracrea-affiliatescomgt APRISeattlehotmailcom Armstrong CharlotteltCharlieAatgwagovgt Ato Apiafi Architects PLLC ltatoaatoapiaficomgt benzfanwaorgBerntsen Teresa (OMWBE) ltTeresaBomwbewagovgt Billingsley Andrealtbillinawsdotwagovgt Bramlet Erica ltEricaBramletlegwagovgt Brooks Julius

ltBrooksJwsdotwagovgt Brown Jason ltjbrownldccorpcomgt bwallacenwlaborersorgCamden Allison ltCamdenAwsdotwagovgt carlllivingstongmailcom Cerda OscarltCerdaOwsdotwagovgt Christopher Chris ltChristCwsdotwagovgt ckerneycaawagovdanplatinumbusinessgroupcom davegentasphaltwacom David BalltDavidsignsnowmillcreekcomgt Davis Khalia ltDavisKhwsdotwagovgt Davis RaShelle (GOVltrashelledavisgovwagovgt Dayton Jo ltDaytonJwsdotwagovgt ddhondtagcwacomDebbieDriverlegwagov Dennis ltdennisahlkiewitcomgt dmcleodnwlaborersorgdrart6651gmailcom Duncan Enid lthigradeincgmailcomgt EltonltEltonwashingtonstatetruckingcomgt eprincecaawagov flemosldccorpcomfmartineznwmtnmsdcorg geoffshookatkncom glovelady ltgloveladyexcelglovescomgtGrabow Katie ltkgrabowsystemsclcomgt Guilfucci Jackie ltJackieGuilfucciskanskacomgt HealyLinda ltHealyLwsdotwagovgt Higginbotham Breanne ltHigginBwsdotwagovgt HirscheyClaudia ltclaudiahirscheycomcastnetgt Holt Colette ltcoletteholtmwbelawcomgt Huff JohnltHuffJwsdotwagovgt Iniguezchawagov JacksonMaynardlegwagov Jimmy Matta(jmattaalcantarassoccom) ltjmattaalcantarassoccomgt kellywickergovwagov Key EarlltKeyEwsdotwagovgt Kirk Jon ltjkirkwhhnfscomgt Kris Purrier ltkpurrierhwageocomgtleewabuildingtradesorg lesliejonessoundtransitorg Liz Evans ltlevansagcwacomgt LopezErin lterinlopezdeswagovgt Martha Cerna ltMarthaPSLCCORGgt Martin-Arnold EdwinaltMartinEwsdotwagovgt Mary Lerdahl ltmarydbeelectricinccomgt McCarty Hannahlthannahmccartylegwagovgt Melissa L Boyles ltmelissaboylesmwbelawcomgt Metcalf KeithltMetcalKwsdotwagovgt michaelicapaawagov Michelle ltMichelleTTCC26netgt MillarRoger ltMillarRwsdotwagovgt Nakamura Jason ltjasonnakamura1-alliancecomgtNavarroLportseattleorg olliepmt-solutionscom pastorbanksesbctacomacom PatrickHughes ltphugheshughesgroupbizgt Petersen Jodi (FHWA) ltJodiPetersendotgovgtrabbottliunaorg rcarmsteadgmailcom ricemportseattleorg Riley D ltdrileylydigcomgtSeling ltSelingjpfranciscomgt sherryharrisergosynchcom Stell MellodyltStellMwsdotwagovgt terigobintulaliptribes-nsngov timwilliamfactorycom tinaterra-tdicom tkellyldccorpcom tomgaetzmsncom vcollinsacec-waorgverlenejazzmsncom Wang Albert ltWangAatgwagovgt Waugh GregltGregWMaxKuneyComgt Yates Henry ltYatesHWSDOTWAGOVgtCc Tom Gaetz lttomgaetzmsncomgt Dave Gent - WAPA ltdavegentasphaltwacomgt VanCollins ltvcollinsacec-waorggt Daniel Seydel II ltdanplatinumbusinessgroupcomgt MaynardJackson ltJacksonMaynardlegwagovgt Carl Livingston ltcarlllivingstongmailcomgt DonMcLeod ltdmcleodnwlaborersorggt JIMMY MATTA ltjimmymattamsncomgt Prince Ed(CAAA) lteprincecaawagovgt David DHondt ltddhondtagcwacomgt Irene Reyesltgloveladyexcelsupplycompanycomgt McDaniel Craig ltMcDaniCwsdotwagovgtsherryharrisergosynchcomSubject WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Good morning On Monday October 30th WSDOT will be releasing the proposed overall Federal HighwayAdministration Disadvantaged Business Enterprise goal attached for public comment throughDecember 15 2017 This overall DBE goal is based upon the recently completely DBE ProgramDisparity Study WSDOT is proposing a 19 percent overall DBE participation goal on Federal Highway

Administration-funded projects for federal fiscal years 2018 through 2020 DBE goals fortransportation projects that receive federal funds represent a percentage of the value of work inwhich minority- and women-owned businesses should participate Once finalized and submitted toFHWA early next year the goal will be effective through Sept 30 2020

The purpose of the DBE program is to create a level playing field for firms owned and operated bydisadvantaged individuals wanting to participate in federally assisted highway transit and aviationprograms The attached overall DBE goal is for FHWA funded projects WSDOT will be updating theFTA and FAA overall DBE goals in the near future

If you have any questions please contact Earl Key Director of the Office of Equal Opportunity at3607057091 or KeyEwsdotwagov Thank you Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

  • Proof-Of-Publicationpdf
    • Mediapdf
      • AGC
      • Daily Journal
      • Daily Medium
      • DBEGood
      • OMWBE
      • Seattle Medium
      • Tabor 100
      • The Chronicle
      • Tukwila
        • King County
          • Public-Comments-20180111pdf
            • 19 DBE Requirement(1)
            • AGC Comments on Proposed 10 Goad
            • Backstrom Curb amp Sidewalk
            • comments on WSDOT proposed DBE goal
            • Cowlitz County Public Works
            • DBE Contracting goals
            • DBE Goal
            • DBE Program Disparity Study
            • Disparity Study Comments from City of Spokane
            • FW_ WSDOT News - WSDOT seeks comments on propos
            • Proposed DBE Goals
            • RE_ DBE Contracting Goal Comments
            • Re_ DBE Goal Comments
            • Re_ Seydel Dan - WSDOT Disparity Study Present
            • Support for WSDOTs proposed DBE goal
            • Why we need mandatory goals
            • WSDOT DBE Goal - Comment in support
            • WSDOT Proposes DBE goal of 19
            • WSDOT propsed DBE Goals
            • WTS - Disparity Study Comment Letter

Hello Michelle sorry but I am not aware of any grants But I was looking at this andthere is a POC at the bottom you may try to discuss the audit issuesHollyHolly BoehmeBusiness Opportunity Specialist | 8(a) Business Development ProgramUS Small Business Administration bull Seattle District Office

Hello Michelle -

Thank you for your email Im not aware of any funding available for thispurpose but do agree its quite a bit for a DBE firm to have as an expense Mostof the firms I work with do a lot more work on the Oregon side so perhaps thereare programs available that I just havent heard of Im copying my colleagueHoly Boehme in our Seattle District Office to see if they are aware of any suchassistance

Holly might there be some small business incubators or other resources availablein WA to help a small firm with the expense of getting a WSDOT AuditedIndirect Cost Rate approval Please reply all with anything you may have

Thank you

Yuri Yoshida Dyson Business Opportunity SpecialistUS SMALL BUSINESS ADMINISTRATION Portland District OfficePhone 503-326-6692 Fax 202-292-3872 wwwsbagovor

From Troy HalbergTo Bayne JackieSubject Re DBE Goal CommentsDate Wednesday December 13 2017 35533 PM

JackieToday was another example of why the goals should not be raised There were 2 jobs which Iwas low on and did not get due to the high goals This is exactly what will happen when thegoals get raised The first job was the 9180 Anacortes Ferry Paving Northeast Electric $244924 and UDBE $318000 Second job was the 9172 SR 9 East Junction Job Northeast Electric $68503 and UDBE $76300

Does this seem like a good way to spend the tax payer money I do not see how we are tosurvive if the goals get to 21

Thanks

Troy HalbergOffice360-225-7004Cell360-931-3990Fax360-225-7001

On Thu Nov 30 2017 at 1131 AM Bayne Jackie ltBayneJwsdotwagovgt wrote

Good Morning Troy

Thank you for taking the time to provide us with your experiences with the DBE Program TheWashington State Department of Transportation takes the public involvement process veryseriously and your comments will be taken into consideration prior to a final decision regardingthe overall DBE program goal

If I can be of further assistance please let me know

Best Regards

Jackie Bayne

Policy and Reporting Manager

WSDOT Office of Equal Opportunity

Work (360) 705-7084

Cell (360) 338-5783

BayneJwsdotwagov

From Troy Halberg [mailtotroyhnellcnet] Sent Wednesday November 29 2017 144 PMTo WSDOT Disparity Study ltDisparityStudyWSDOTWAGOVgtSubject DBE Goal Comments

If these goals are to be set that high this would make us as a non DBE small contractor at amajor disadvantage With these high of goals this is like handing all of the DBE electricalcontractors every job These general contractors will have no option but to use thembecause of the goals This should not go into effect We have been low on several jobs in thepast and have not gotten them do to the goals being 18 When this goes on it puts all therest of us contractors at a disadvantage Please consider the smaller non DBE contractorsthat are looking to survive as well

Thanks

Troy Halberg

Office360-225-7004

Cell360-931-3990

Fax360-225-7001

From Daniel Seydel IITo Bayne JackieCc Key Earl daneiwashingtonorg Nadeem Ismail Mussie Tewelde (mteweldehydro2geotechcom)

graceflyrightaolcom Mary Wenner Watkinson LarrySubject Re Seydel Dan - WSDOT Disparity Study Presentation Public TestimonyDate Friday December 8 2017 30323 PM

Jackie

It was my hope that the comments would be put into record I was also hoping that you wouldnot have to be the one having to formulate responses for each clarification If that is the caseI know you are swamped and will then I just ask my comments be only part of the recordHowever if there is dedicated staff that is going to be compiling and responding to theclarification then the below questions would be the priorities of most interest

These were questions unrelated to the disparity study and hopefully should be doable

1) Do you have any reports on your outcomes from the past 5 years on DBE support servicesand specific key performance measures from previous years funding (ie how many firmsutilized what was the objectives were objectives met did outcomes meet total satisfaction ifnot why next steps what was the firms capacity before and after services were performed (iesales employees bonding if applicable insurance equipment line of credit if applicablenumbertype of customers how are they doing now etc))

2) What other changes or improvements other than allowing DBES to select their own serviceproviders and a staff change will be a part of this new program

3) Was consideration to provide the new mentor protege consultant rather than separating theactivities into support services andor technical assistance

Disparity study clarifications

1) Will WSDOT consider sponsoring legislation to support the policy changes and goalincreases to insure manditory goals wont be necessary

a) If not what measures will you grant primes to operate outside the box (ie entertain bestvalue over low bid modify responsiveness by subs to require adherence to meeting voluntarygoals developing standards around federally funded gccm and other low bid procurementsthat give powers to primes to meet objectives including but not limited to mentor protegerelationships joint ventures bond waiving techniques cash flow assistance material andequipment acquisition manufacturer development specifications that have only DBES orinclude equal number of DBES as non DBES as approved installers etc)

2) Will the disparity study consultant be available for implementation or information gatheringfrom other regions

5) Will WSDOT be hiring more diverse staff amp professionaltechnical service providers inother departments outside OEO to insure policies commitments and evaluations areperformed in manner that improves diversity that reflects the communities WSDOT serves bythoughtful and legal efforts increase participation thus creating successful outcomes includingpartnerships and collaborations

Thank you and Merry Christmas

Hi Dan

Thank you for providing such thoughtful public comments questions and testimony

Regarding your public testimony below - I do not believe I am not able to answer questions ifthey are public comments Please let me know what part of this email you would likeclarification on and what part you would like considered public testimony

I appreciate your thoughtful consideration of WSDOTrsquos implementation of our civil rightsprograms

Best Regards

Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

DIDaniel Seydel IIFyi Daniel J Seydel II Platinum Group LLC 2064060844 f) 2062999934wwwplatinumbusinessgroupcom Small Business is the Answer FREE TRAINING FORENTREPRENEURS amp JOB SEEKERS - Polish your skills or make your firm standout thanksto the EntrepreneurialThu 233pDI

Daniel Seydel IIThu 1272017 1123 AMInbox Sent ItemsShow all 7 recipientsTobaynejwsdotwagov ltBayneJwsdotwagovgtJackie

Per your request below are my questions and comments some of which were verbally sharedyesterday

Congratulations on receiving the blessing of additional technical assistance dollars andcompleting the DBE Disparity Study per your report

1) Do you have any reports on your outcomes from the past 5 years on DBE support servicesand specific key performance measures from previous years funding (ie how many firmsutilized what was the objectives were objectives met did outcomes meet total satisfaction ifnot why next steps what was the firms capacity before and after services were performed (ie

sales employees bonding if applicable insurance equipment line of credit if applicablenumbertype of customers how are they doing now etc))

2) What other changes or improvements other than allowing DBES to select their own serviceproviders and a staff change will be a part of this new program

3) Was consideration to provide the new mentor protege consultant rather than separating theactivities into support services andor technical assistance

Disparity study clarifications andor comments

1) Will WSDOT consider sponsoring legislation to support the policy changes and goalincreases to insure manditory goals wont be necessary

a) If not what measures will you grant primes to operate outside the box (ie entertain bestvalue over low bid modify responsiveness by subs to require adherence to meeting voluntarygoals developing standards around federally funded gccm and other low bid procurementsthat give powers to primes to meet objectives including but not limited to mentor protegerelationships joint ventures bond waiving techniques cash flow assistance material andequipment acquisition manufacturer development specifications that have only DBES orinclude equal number of DBES as non DBES as approved installers etc)

2) Will the disparity study consultant be available for implementation or information gatheringfrom other regions

3) What lessons did WSDOT learn that it did not know from the other study(s)

4) What would WSDOT do different (ie scope time line process approach etc)

5) Will WSDOT be hiring more diverse staff amp professionaltechnical service providers inother departments outside OEO to insure policies commitments and evaluations areperformed in manner that improves diversity that reflects the communities WSDOT serves bythoughtful and legal efforts increase participation thus creating successful outcomes includingpartnerships and collaborations

Daniel J Seydel IIPlatinum Group LLC 2064060844f) 2062999934wwwplatinumbusinessgroupcom

Small Business is the Answer

FREE TRAINING FOR ENTREPRENEURS amp JOB SEEKERS - Polish your skills or makeyour firm standout thanks to the Entrepreneurial Institute of Washington

httpswwwyoutubecomchannelUCKL5YeVxL29HnNxqnb6hmXA

LIKE US on FaceBook if an Active Professional Development workshop provided by EIW

Construction University helps your firm or has benefited you

httpswwwfacebookcomEIWashingtonref=hl

From Bayne Jackie ltBayneJwsdotwagovgtSent Friday December 8 2017 10139 PMTo Daniel Seydel IICc Key Earl daneiwashingtonorg Nadeem Ismail Mussie Tewelde(mteweldehydro2geotechcom) graceflyrightaolcom Mary Wenner Watkinson LarrySubject RE Seydel Dan - WSDOT Disparity Study Presentation Public Testimony Hi Dan Thank you for providing such thoughtful public comments questions and testimony Regarding your public testimony below - I do not believe I am not able to answer questions if theyare public comments Please let me know what part of this email you would like clarification on andwhat part you would like considered public testimony I appreciate your thoughtful consideration of WSDOTrsquos implementation of our civil rights programs Best Regards Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov From Daniel Seydel II [mailtodanplatinumbusinessgroupcom] Sent Thursday December 7 2017 1123 AMTo Bayne Jackie ltBayneJwsdotwagovgtCc Key Earl ltKeyEwsdotwagovgt daneiwashingtonorg Nadeem Ismailltnipaintingearthlinknetgt Mussie Tewelde (mteweldehydro2geotechcom)ltmteweldehydro2geotechcomgt graceflyrightaolcom Mary Wennerltmwenn0108yahoocomgtSubject Seydel Dan - WSDOT Disparity Study Presentation Public Testimony Jackie

Per your request below are my questions and comments some of which were verbally sharedyesterday

Congratulations on receiving the blessing of additional technical assistance dollars andcompleting the DBE Disparity Study per your report

1) Do you have any reports on your outcomes from the past 5 years on DBE support servicesand specific key performance measures from previous years funding (ie how many firmsutilized what was the objectives were objectives met did outcomes meet total satisfaction ifnot why next steps what was the firms capacity before and after services were performed (iesales employees bonding if applicable insurance equipment line of credit if applicablenumbertype of customers how are they doing now etc))

2) What other changes or improvements other than allowing DBES to select their own serviceproviders and a staff change will be a part of this new program

3) Was consideration to provide the new mentor protege consultant rather than separating theactivities into support services andor technical assistance

Disparity study clarifications andor comments

1) Will WSDOT consider sponsoring legislation to support the policy changes and goalincreases to insure manditory goals wont be necessary

a) If not what measures will you grant primes to operate outside the box (ie entertain bestvalue over low bid modify responsiveness by subs to require adherence to meeting voluntarygoals developing standards around federally funded gccm and other low bid procurementsthat give powers to primes to meet objectives including but not limited to mentor protegerelationships joint ventures bond waiving techniques cash flow assistance material andequipment acquisition manufacturer development specifications that have only DBES orinclude equal number of DBES as non DBES as approved installers etc)

2) Will the disparity study consultant be available for implementation or information gatheringfrom other regions

3) What lessons did WSDOT learn that it did not know from the other study(s)

4) What would WSDOT do different (ie scope time line process approach etc)

5) Will WSDOT be hiring more diverse staff amp professionaltechnical service providers inother departments outside OEO to insure policies commitments and evaluations areperformed in manner that improves diversity that reflects the communities WSDOT serves bythoughtful and legal efforts increase participation thus creating successful outcomes includingpartnerships and collaborations

Thank you for your hard work

Daniel J Seydel IIPlatinum Group LLC2064060844f) 2062999934wwwplatinumbusinessgroupcom

Small Business is the Answer

FREE TRAINING FOR ENTREPRENEURS amp JOB SEEKERS - Polish your skills or makeyour firm standout thanks to the Entrepreneurial Institute of Washington

httpswwwyoutubecomchannelUCKL5YeVxL29HnNxqnb6hmXA

LIKE US on FaceBook if an Active Professional Development workshop provided by EIWConstruction University helps your firm or has benefited you

httpswwwfacebookcomEIWashingtonref=hl

From Erin EhlingerTo Bayne JackieSubject Support for WSDOTs proposed DBE goalDate Wednesday December 13 2017 115417 AM

I am writing to support the WSDOT recommended DBE Goal for FHWA contracts of 190 I also want to express my appreciation for the thoroughness of the WSDOT Disparity study and howthe study disclosed the disparity in WSDOT contracts that do not have a DBE or WBE goal ndash furtherreinforcing that all women-owned firms and minority owned firms face equity issues I remain concerned with the methodology required by the Code of Federal Regulations and case lawbecause of the dependence on the availability of firms in the calculation An unintendedconsequence of removing either gender or race from the goal is that many of these firms would goout of business the availability decreases and the formula then results in a smaller DBE goal Pleaselet me know how I can help influence a change to the CFR Thank you Erin Ehlinger

Erin Ehlinger PEPresident

24036 SE 47th StSammamish WA 98029erinehlingersmartcitytrafficcom425-221-0320

From Jackie EtterTo WSDOT Disparity StudySubject Why we need mandatory goalsDate Friday December 1 2017 61859 PM

As a DBE participating in bidding process I have found that regardless of the language which claims to insurethat disadvantaged business enterprises shall not be discriminated against the only way to ensure that this does nothappen is by mandating affirmative action goals Having been overlooked time and time again because of my gender when I have submitted bids that are verycompetitive with other bidders is very frustrating I have had many instances of companies using my price to getmy non DBE competitors to lower theirs The voluntary or laudatory DBE goals do nothing to ensure a level playing fieldThe only way to ensure non-discrimination is through mandatory goals

Jackie EtterWest Star Construction of Spokane

Sent from my iPhone

From Claudia HirscheyTo Key Earl Bayne JackieSubject WSDOT DBE Goal - Comment in supportDate Tuesday December 12 2017 61937 PM

Dear Earl and Jackie The WSDOT recommended DBE Goal for FHWA contracts of 190 is a small and important increasethat can further achieve equity in WSDOTFHWA contracting I am in support of the 19 DBE Goal I also want to express my appreciation for the thoroughness of the WSDOT Disparity study and howthe study disclosed the disparity in WSDOT contracts that do not have a DBE or WBE goal ndash furtherreinforcing that all women-owned firms and minority owned firms face equity issues I remain concerned with the methodology required by the Code of Federal Regulations and case lawbecause of the dependence on the availability of firms in the calculation An unintendedconsequence of removing either gender or race from the goal is that many of these firms would goout of business the availability decreases and the formula then results in a smaller DBE goal Sincerely Claudia S Hirschey PETransportation Consulting Servicesclaudiahirscheycomcastnethttphirscheytcscom2068564988 Mobile

From Nate ThomasTo WSDOT Disparity StudySubject WSDOT Proposes DBE goal of 19Date Thursday December 7 2017 42720 PM

The WSDOT should look into similar ways the Federal Gov has handled the equal opportunity forthose that fall under the DBE status and set aside specific projects for the DBErsquos and moreimportantly UDBErsquos so these companies have better chance of landing contracts Maybe a lot 10 ofthe DBE goal to set aside for only DBEs and other 9 goal met as it is done currently with COA onlarger contracts Nate ThomasSenior EstimatorD 5095688085 | C 5099941156331 North Fancher Road | Spokane WA | 99212

The information contained in this email including any attachments is confidential and may beprivileged It is intended only for the person or entity to which it is addressed and no waiver isintended by sending this email If the reader is not the intended recipient you are herebynotified that any review retransmission dissemination or other use of or taking any action inreliance upon this information is strictly prohibited If you have received this email in errorkindly notify the sender by reply email and delete the original message from any computerThank You

From Brian FujiiTo WSDOT Disparity StudySubject WSDOT propsed DBE GoalsDate Thursday December 7 2017 110638 AM

Good morning Jackie

I wanted to comment on WSDOTs proposed DBE goal to 19 I believe WSDOTs plan toincrease the overall DBE goal to 19 will provide greater opportunities for DBE contractorsin different disciplines to participate in federally funded contracts

Without the new DBE requirement and with Proposition 200 there are limited opportunitiesfor DBE contractors in disciplines different than the typical trucking flagging and rebar Inaddition there are no incentives for general contractors to go out beyond the usual truckingflagging and rebar DBE subcontractors

Increasing the DBE goals will provide opportunities for different DBE contractors in differentdisciplines to participate in WSDOT federally funded projects

Thank you for your time

RespectfullyBrian FujiiPresident Subsurface ConstructionP 2063836478F 2069604639MDBE 4M0024998

From Forman StephanieTo Bayne JackieCc Millar Roger christinenhanmailhousegov Claudia Hirschey Sarah Corbin Jiang Yingle

efaulknerenviroissuescom Diana Giraldo Kelly CheesemanSubject WTS - Disparity Study Comment LetterDate Friday December 15 2017 71020 PMAttachments 2017_Dec 15_WTSCommentLetter_WSDOT DBE Goalpdf

Dear Ms Bayne Please find our attached letter which summarizes the WTS Puget Sound Chapterrsquos support foradvancement of women in transportation and our comment letter regarding the recent DisparityStudy Please feel free to contact me if you have any questions or would like to discuss Sincerely Stephanie S Forman PEWTS Puget Sound President Transportation Project Manager

929 108th Avenue NE Suite 1300Bellevue WA 98004D 4254681548 M 2062291745stephanieformanhdrinccom

December 15 2017

Jackie Bayne Policy and Reporting Manager

Office of Equal Opportunity

Washington State Department of Transportation

PO Box 47314

Olympia WA 98504-7314

Dear Ms Bayne

On behalf of the Puget Sound Chapter of Womenrsquos Transportation Seminar (WTS) we would

like to thank the Washington State Department of Transportation for presenting to our

organization the DBE Disparity Study results We very much appreciated the presentation by Earl

Key Director of WSDOTrsquos Office of Equal Opportunity Teresa Berntsen (Director Office of Minority

and Womens Business Enterprises) as well as Leslie Jones (Director Sound Transit Office of Small

Business Development and Labor Compliance)

Following a review of the WSDOT Disparity Study and as a result of consultation with WTS

International we would like to provide WSDOT with our comments for your consideration

As you know WTS is an organization focused exclusively on attracting retaining and advancing

women in transportation By the year 2018 there will be thousands of vacancies in the

transportation industry for qualified professionals and while women account for more than half of

the worldrsquos workforce they are a very small minority in transportation disciplines

We are pleased that the outcome of the 2017 Disparity Study that recognizes the on-going barriers

for DBEs including women-owned businesses in transportation The WSDOT recommended DBE

Goal of 190 is a small and important increase that can further achieve equity in WSDOTFHWA

contracting We are also pleased that the 2017 Disparity Study has documented the disparity in

WSDOT contracts that do not have a DBE or WBE goal ndash further reinforcing that all women-owned

firms and minority owned firms face equity issues We are encouraged that the WSDOT has asked

FHWA to rescind the 2016 waiver

While WTSrsquo mission is specific to the advancement of women we are a race-neutral organization To

this end we are also deeply concerned about the underutilization of minority owned firms There is

no equity or ldquofair playing fieldrdquo without equity for all gender and races We remained concerned with

the methodology required by the Code of Federal Regulations and case law because of the

dependence on the availability of firms in the calculation An unintended consequence of removing

either gender or race from the goal is that many of these firms would go out of business the

availability decreases and the formula then results in a smaller DBE goal This consequence is

contrary to our mission

We look forward to our continued participation in WSDOTrsquos DBE advisory group we are anticipating

notice that the 2016 waiver has been rescinded and how we can work together to continue

advancing minority and women-owned firms in the transportation field

Sincerely

WTS Puget Sound Chapter

Stephanie Forman

President

C Roger Millar Secretary WSDOT

C Representative Adam Smith 9th Congressional District Washington co Christine Nhan

WTS Puget Sound Chapter

PO Box 3461

Bellevue Washington 98009

From Dave Gent - WAPATo Bayne JackieCc Tom GaetzSubject WAPA Public Comments - RE WSDOT FHWA Disadvantaged Business Enterprise Proposed GoalDate Friday December 15 2017 14119 PMAttachments 12152017 DBE Proposed Goal - WAPA Public Comments Letterpdf

Good afternoon Jackie Please find attached WAPArsquos ldquofor the public recordrdquo comments with respect to WSDOTrsquos proposedDBE Goals FHWA funded work I assume that the Master DBE Directory was not sent to you this week so as a result we were notable to review the directory before the close of the public comment period That fact is noted withinour comment letter Thank you for your efforts Have a good weekend

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Friday December 8 2017 1219 PMTo Dave Gent - WAPA ltdavegentasphaltwacomgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hello Dave WSDOT did not take possession of this directory as part of our review process We will provide youwith the records without submitting a formal request However we need to get them from theconsultant first I will hopefully have them to provide next week I will keep you updated on therequest Have a nice weekend Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal Opportunity

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

December 15 2017

Jackie Bayne Policy Manager WSDOT Office of Equal Opportunity Delivered via e-mail to BayneJwsdotwagov RE Public Comment (as requested) to Proposed Overall DBE Goal for the FHWA (2018 ndash 2020) Ms Bayne Thank you for your presentation via webinar on December 5 2017 outlining WSDOTrsquos evaluation process used to determine the proposed overall DBE goal for the FHWA Thank you also for the Colette Holt amp Associates (CHA) DBE Advisory Group presentation made on September 14 2017 Both presentations helped to distill the findings of the 2017 Disparity Study produced by CHA In response to Earl Keyrsquos initial informal request to comment on the proposed overall DBE goal made during the DBE Advisory Committee teleconference held on October 12th we provided a list of reasons that we believe justify a lower DBE goal than is now being proposed Our initial response to Mr Keyrsquos request did not serve to influence WSDOT and the current proposed goal remains at 190 The arguments provided on October 12th against the significant increase in the proposed DBE goal (versus the previous goal and recent historic DBE participation) are repeated and supplemented below and will serve as the Asphalt Pavement Associationrsquos (WAPArsquos) official public comments

In concert with WSDOT and the OWMBE WAPA and the construction firms that WAPA represents have demonstrated a commitment to the principals of equal opportunity for all ldquoready willing and ablerdquo firms for the entire history that our DBE program has been in place WAPA has continuously demonstrated its commitment to the goals of the DBE program and for increasing the representation of disadvantaged groups within our industry as both workers and owners of firms Please recognize that WAPArsquos oversight and critique of the DBE program has always attempted to balance the principals of fair and open competition with the practical aspects of the low bid compressed schedule high performance standards demanded within the WSDOT marketplace Our comments below are meant to enhance WSDOTrsquos and OWMBErsquos understanding of the market and to hopefully have WSDOT fully consider all of the dynamics that are at play when proposing its Triennial DBE goal for FHWA projects Current DBE Capacity vs Historically Robust Market In advocating for a realistic and defensible DBE goal it has always been WAPArsquos position that it is paramount that the realities of the marketplace and true certified DBE subcontracting capacity should be a primary standard While a ldquostretchrdquo goal may appear to be progressive on its face it comes with consequences for all of the parties involved in the WSDOT federal aid contracting arena To balance the dynamics of the WSDOT contracting system the DBE goal should be tempered with the realities of the market and with a true measure of the underlying effectiveness of the DBE support services available to contractors

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 2 of 6 The first point of fact that has not been given any apparent consideration by WSDOT in its evaluation of the current capacity of certified DBErsquos is that there is an historically robust workload scheduled to be performed in the 2017 through 2022 time-frame particularly in the Puget Sound ldquoEverett to Olympiardquo corridor By WSDOTrsquos own estimates (see Attachment A) public works construction project starts in the 2018 to 2022 time-frame in this region will exceed $333 billion (B) counting the work projected from just five public entities WSDOT will be taking a decidedly ldquoback seatrdquo role during this period to Sound Transit which will have construction project starts of $226B vs WSDOTrsquos projected volume of $67B WSDOTrsquos summary publication titled Washington State Department of Transportations Proposed Federal Highway Administration Triennium Disadvantaged Business Enterprise Goal Federal Fiscal Years 2018-2020 states correctly that ldquoIncluded among the types of evidence that must be considered are the current capacity of DBEs to perform work on WSDOTrsquos federally-assisted contracts as measured by the volume of work DBEs have performed in recent yearshelliprdquo (Step Two Adjustment discussion) With the Sound Transit program being over 300 larger than the total WSDOT program in this region a sober assessment of true certified DBE capacity in the next three years needs to be considered by WSDOT If the huge construction boom over the next five years does not prompt a Step Two Adjustment then it becomes obvious that the realities of the market are being ignored by WSDOT for DBE goal setting Put another way if the 2018 through 2022 level of contracting activity does not warrant a goal adjustment what will DBE Access Barriers Not Yet Addressed The CHA 2017 Disparity Study points out multiple recommendations in Section VII that impact DBE participation and access to the market Assessments relating to those impacts and the state of maturity in addressing the CHA recommendations should be considered when assessing the DBE goal Many of the CHA recommendation have not been adequately addressed at this point in time Some of the prime examples are listed below Increase Certification and Expertise ndash The Disparity Study as explained to us includes all minority- (MBE)

and women-owned (WBE) firms that could be readily identified that perform work within Washington State and that perform work within the NAICS code framework CHA developed to cover WSDOT project work During the various presentations relating to the Disparity Study WSDOT representatives said that outreach to currently non-certified MBE amp WBE firms has increased and that WSDOT aspires to bolster its list of certified firms in the future but this effort is just beginning and the success of the effort needs to be means tested against the broader population of MBE amp WBE firms included in the CHA base line evaluation As the Disparity Study uses a much broader population of MBE WBE contractors to arrive at its conclusions (both non-certified firms and firms too large for certification) it follows that the calculated DBE proposed goal is overstated to include capacity that does not currently exist within WSDOTrsquos certified DBE framework Unless OMWBE is experiencing sudden and unprecedented success in recruiting new MBEWBE firms the DBE goal should be adjusted downward to recognize that the ldquoready willing and ablerdquo contractors that WSDOT has certified is only a subset of the total MBEWBE contracting population used in the Disparity Study evaluation

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 3 of 6

Until the promised WSDOT outreach registration efforts result in a substantial increase in available certified DBE firms it is premature to count the entire population of minority- and women-owned contractors as available to participate in WSDOT contracting It is unreasonable for WSDOT to project availability capacity using the entire MBEWBE population when only its currently truncated list of certified firms is acceptable to count toward the DBE goal

A corollary to the Increase Certification and Expertise discussion above is that the calculation of the Base Figure evidently includes the broadest practical population of MBE and WBE firms identifiable (without a review of the CHA Master DBE Directory which has not been supplied prior to the close of the public comment period the scope of the directory cannot be ascertained) If this directory includes a large population of MBEWBE firms that are not certified or are too large to be certified then the Base Figure calculation should be adjusted to reflect that certified DBE firms are a fraction of the total MBEWBE firms used to arrive at the 19 suggested DBE goal With respect to the CHA Master Directory it is our understanding the WSDOT was not given the directory as part of its evaluation of the Disparity Study and it follows that it did not evaluate the proposed DBE goal in the context of the CHA Master DBE Directory In our opinion an informed decision on adjusting the CHA baseline goal calculation can only be done after an extensive evaluation of the CHA Master DBE Directory If this has not been done WSDOT has not exercised due diligence in evaluating the context and underpinnings of the CHA Disparity Study and a certified DBE Triennium goal proposal to the FHWA is premature Increase Contract ldquoUnbundlingrdquo ndash If this proposed strategy (suggested by the CHA Study) is undertaken

certified DBE Subcontractors currently available will be engaged as Prime Contractors and the value of their prime contracts will bolster the overall percentage of certified DBE contracting but a systematic effort and strategy to ldquounbundlerdquo has not been articulated by WSDOT The key question of how this effort can be accomplished without increased cost to the taxpayers and increased inconvenience for the traveling public As noted in the CHA study (page 129 final paragraph) ldquoUnbundling must be conducted however within the constraints of the need to ensure efficiency and limit cost to the taxpayersrdquo As of this writing no overarching strategy for further unbundling with proper accountability has been articulated by WSDOT to the DBE Advisory Group

Review Insurance and Experience Requirements ndash Impediments to certified DBE participation due to

necessary insurance and experience standards cannot be solved by the prime contracting community Unless and until WSDOT puts together programs to address the burden of the substantial risks shouldered by Prime Contractors on WSDOT contracts barriers for streamlined utilization of certified DBE firms will continue to exist These market driven barriers will continue to dampen the availability of certified DBE Subcontractors that are able to perform within WSDOTrsquos strict criteria without unduly transferring risk to the Prime Contractor

Better Partnering to Overcome DBE Failures to Perform ndash Prime Contractors are held fully responsible to maintain the project schedule and are subject to project liquidated damages even when they may be struggling to deal with Subcontractor performance issues It is well-established that replacing a certified ldquocondition of awardrdquo (COA) DBE Subcontractor is very onerous and likely very costly to the Prime Contractor Unfortunately the imposition of strict and often counter-productive commercially useful function (CUF) rules often compound this issue as Prime Contractors cannot help COA DBE Subcontractors work through capacity expertise or time-related issues that impact timely performance

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 4 of 6

WSDOT needs to be a much better partner in the process of dealing with under-performing or non-performing certified DBE Subcontractors The current standard operational procedure places all of the exposure for non-performance onto the Prime WSDOT does not have an equitable system to account for non-performing or under-performing certified DBE Subcontractors hired as a condition of award (COA)

Performance Information and Training ndash Commercially useful function rules (CUF) and the lack of clear benchmark definitions for good faith effort (GFE) standards remain barriers for improving accountability within the DBE system and in turn lead to distorted DBE participation rates These items remain amorphous due to lack of training or lack of historic information Chronic uncertainty exists regarding both of these items Until WSDOT changes and improves its approach to provide transparency and certainty for both the prime bidding amp subcontracting parties true certified DBE capacity will continue to be masked and the resultant higher subcontracting costs associated with a distorted marketplace will continue to be hidden

WAPA respectfully suggests that simply adding an ldquoEstimated DBE Subcontract Premiumrdquo line to the current DBE bid forms would help to establish benchmarks that could begin to be used to ldquomeans testrdquo good faith efforts If this information had been gathered over the last 20 years of the DBE program meaningful GFE standards could have been developed and could be in place today

An in-depth review of CUF standards would also provide clarity For instance it is unclear why force account items performed by certified DBEs are currently counted at only 50 of the value of the work How was this benchmark established Has it been reviewed since imposed Did it ldquosolverdquo whatever inequity WSDOT was trying to address Better clarity may lead to more expanded opportunities for certified DBE Subcontractors

Enhanced Supportive Services and Business Development Programs ndash Unless and until stronger programs of these types are shown to be effective in boosting certified DBE business development increased DBE participation due to stronger business acumen should not be relied upon when setting the new DBE goal

Does OMWBE have a reasonable expectation that future plans for enhanced and expanded programs will be more successful than those employed in the past Assuming that certified DBE Subcontractors will be better prepared to deal with the WSDOT contracting environment than in the past should not be relied upon to boost DBE participation goals Especially troubling were the multiple references within the CHA report highlighting that DBEs believe that the staff at OMWBE lack a deep knowledge about the highway construction industry (eg Study page 129 2nd paragraph) Does OMWBE have a path forward that will address this issue and thus improve supportive services impacts

Develop a Bonding and Financing Program for SBEs ndash This is completely outside of the prime contracting

communityrsquos scope of influence WSDOT must find a way to institute changes that both protect the taxpayer and help increase certified DBE bonding capacity and access to financing ndash very large hurtles To assume that these hurtles can effectively be overcome within the 2018 ndash 2020 time frame when they have been chromic issues for the past 20 plus years of DBE program development is not rational

A helpful innovation would be for WSDOT to underwrite performance and payment bonds for certified DBE firms or to create promote a system that helps certified DBE firms obtain private bonding Bridging the gap to address capital access and performance risks (bonding) must be championed by WSDOT

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 5 of 6

Base Figure Adjustment to Address Available Subcontract Volume and DBE Prime Contracts It is a fact that mid- to large-sized MBEWBE firms that compete both as Prime Contractors and as Subcontractors are not eligible to be OMWBE certified DBEs Further the current amount of contract unbundling for greater DBE access to WSDOT prime contracting (see below) accounts for a very low dollar volume of prime contracts performed by certified DBEs Finally by specification (WSDOT standard specification 1-081) Prime Contractors are obligated to perform 30 of the total volume of the work (less specialty work) or stated another way a maximum of 70 of the dollar volume on WSDOT projects is typically available to award to subcontractors These market dynamics are NOT addressed in the Disparity Study A responsible DBE goal made absent of these facts should not be implemented A reasonable adjustment to the proposed 19 DBE goal is presented below

bull The percent of WSDOT prime contracts awarded to certified DBE firms is likely less than 5 by total WSDOT

contract volume Assuming this approximation is valid (likely very conservative) then the amount of WSDOT contract work available to certified DBE firms via subcontracting should be adjusted to account for the factors outlined above The Base Figure (19) should be adjusted to recognize that a 70 maximum subcontractor participation is available (in the numerator) and to account for the assumed 5 certified DBE prime contracts in the denominator Reasonable Base Figure Adjustment 19 (proposed) x 70 subcontracts available divide 95 of Non-Certified DBEs as Prime Contract Volume = 190 x 0737 = 140 adjusted goal This is an adjustment based on the practical dynamics of the WSDOT contracting system and it represents a more realistic look at the true subcontract volume that is available for Prime Contractors to award to certified DBE firms

Conclusions

Until the items listed above are addressed and in place it is not reasonable to believe that DBE goals can be increased by nearly 163 (from 117 to 190) When the projected robust public works contracting market is appropriately considered the true availability of certified DBE Subcontractors for WSDOT contracts will be truncated due to demand across all public works sectors With multiple strong public works programs competing for a limited population of certified DBEs the ability to meet increased WSDOT DBE goals will be severely challenged Without very clear concise and transparent good faith effort rules the ability to address DBE goals that greatly overestimate true near term certified DBE capacity will result in non-attainment bid day chaos failures to perform andor rapidly increased pricing

The clear conclusion is that at this point in time under the current circumstances without effectively instituted new programs rules procedures that could enhance the certified DBE programrsquos overall effectiveness we believe that the DBE goal should remain at or near 12 As OMWBE documents and demonstrates its future successes in improving access and eliminating capacity barriers only then should the DBE goal be re-evaluated and increased

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 6 of 6

In closing please remember that it is rare that the contracting community is asked our opinion with respect to the WSDOTrsquos DBE policies and so this letter is somewhat a vehicle to highlight collective concerns It is our belief that the majority of the Prime Contractors in Washington state support the objective of creating a level playing field for ready willing and able DBEs

If the level playing field is not yet possible in the absence of the DBE program then the key is to set realistic goals that recognize reflect and address the hard realities and market dynamics imposed by WSDOTrsquos bedrock environment of awarding contracts to the lowest cost responsible and responsive Contractor

Respectfully submitted Washington Asphalt Pavement Association

David Gent Tom Gaetz Executive Director Senior Advisor

Attachment A ndash WSDOT Central Puget Sound Public Works Contracting Projection 2018 - 2022

Con

stru

ctio

n Pr

ojec

t Sta

rts

2018

-202

2S

ound

Tra

nsit

$22

6 B

SD

OT

$08

B

Tran

sit

amp O

ther

s$1

7 B

WS

DO

T$6

7 B

Por

t of

Sea

ttle

$15

B

TOTA

L$3

33

B

Source N

ov 1

9 2

017

pres

enta

tion

to W

APA

Ann

ual M

eetin

g

Attachment A

Work (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Dave Gent - WAPA [mailtodavegentasphaltwacom] Sent Thursday December 7 2017 144 PMTo Bayne Jackie ltBayneJwsdotwagovgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hi again Jackie Irsquom fine thanks and hope you are the same Interesting The Master DBE Directory is the basis for and integral to the conclusions of the DisparityStudy Is it not then part of the information needed to fully review and comment on the DisparityStudy Was it not provided by CHA to WSDOT for review We are trying to fully understand thestudy and if this directory was part of the study why would it need to be obtained by a publicrecords disclosure It should be in the public domain and not restricted from ease of access If you are sure that a public records request is needed Irsquoll start that process but we will need tonote that point of fact when we submit our public comments If you are able to reconsider please let me know Respectfully

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Thursday December 7 2017 126 PMTo Dave Gent - WAPA ltdavegentasphaltwacomgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hello Dave I hope you are doing well

That information would likely be obtained through a public disclosure request Best Regards Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Dave Gent - WAPA [mailtodavegentasphaltwacom] Sent Thursday December 7 2017 113 PMTo Bayne Jackie ltBayneJwsdotwagovgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Jackie Can you please provide an electronic file or provide a weblink for the Master DBE Directory thatColette Holt amp Associates developed for the WSDOT Disparity Study 2017 (first referred to on Page 8of the Disparity Study) I did not see a link to this Master DBE Directory within the study Thanks

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Friday October 27 2017 1118 AMTo Kenyon Wendy ltKenyonWwsdotwagovgt Adams E W ltewadamssystemsclcomgtAdekoyaAndrew ltandrewadekoyabccomgt AlyssaBalllegwagov Anindita Mitraltamitracrea-affiliatescomgt APRISeattlehotmailcom Armstrong CharlotteltCharlieAatgwagovgt Ato Apiafi Architects PLLC ltatoaatoapiaficomgt benzfanwaorgBerntsen Teresa (OMWBE) ltTeresaBomwbewagovgt Billingsley Andrealtbillinawsdotwagovgt Bramlet Erica ltEricaBramletlegwagovgt Brooks Julius

ltBrooksJwsdotwagovgt Brown Jason ltjbrownldccorpcomgt bwallacenwlaborersorgCamden Allison ltCamdenAwsdotwagovgt carlllivingstongmailcom Cerda OscarltCerdaOwsdotwagovgt Christopher Chris ltChristCwsdotwagovgt ckerneycaawagovdanplatinumbusinessgroupcom davegentasphaltwacom David BalltDavidsignsnowmillcreekcomgt Davis Khalia ltDavisKhwsdotwagovgt Davis RaShelle (GOVltrashelledavisgovwagovgt Dayton Jo ltDaytonJwsdotwagovgt ddhondtagcwacomDebbieDriverlegwagov Dennis ltdennisahlkiewitcomgt dmcleodnwlaborersorgdrart6651gmailcom Duncan Enid lthigradeincgmailcomgt EltonltEltonwashingtonstatetruckingcomgt eprincecaawagov flemosldccorpcomfmartineznwmtnmsdcorg geoffshookatkncom glovelady ltgloveladyexcelglovescomgtGrabow Katie ltkgrabowsystemsclcomgt Guilfucci Jackie ltJackieGuilfucciskanskacomgt HealyLinda ltHealyLwsdotwagovgt Higginbotham Breanne ltHigginBwsdotwagovgt HirscheyClaudia ltclaudiahirscheycomcastnetgt Holt Colette ltcoletteholtmwbelawcomgt Huff JohnltHuffJwsdotwagovgt Iniguezchawagov JacksonMaynardlegwagov Jimmy Matta(jmattaalcantarassoccom) ltjmattaalcantarassoccomgt kellywickergovwagov Key EarlltKeyEwsdotwagovgt Kirk Jon ltjkirkwhhnfscomgt Kris Purrier ltkpurrierhwageocomgtleewabuildingtradesorg lesliejonessoundtransitorg Liz Evans ltlevansagcwacomgt LopezErin lterinlopezdeswagovgt Martha Cerna ltMarthaPSLCCORGgt Martin-Arnold EdwinaltMartinEwsdotwagovgt Mary Lerdahl ltmarydbeelectricinccomgt McCarty Hannahlthannahmccartylegwagovgt Melissa L Boyles ltmelissaboylesmwbelawcomgt Metcalf KeithltMetcalKwsdotwagovgt michaelicapaawagov Michelle ltMichelleTTCC26netgt MillarRoger ltMillarRwsdotwagovgt Nakamura Jason ltjasonnakamura1-alliancecomgtNavarroLportseattleorg olliepmt-solutionscom pastorbanksesbctacomacom PatrickHughes ltphugheshughesgroupbizgt Petersen Jodi (FHWA) ltJodiPetersendotgovgtrabbottliunaorg rcarmsteadgmailcom ricemportseattleorg Riley D ltdrileylydigcomgtSeling ltSelingjpfranciscomgt sherryharrisergosynchcom Stell MellodyltStellMwsdotwagovgt terigobintulaliptribes-nsngov timwilliamfactorycom tinaterra-tdicom tkellyldccorpcom tomgaetzmsncom vcollinsacec-waorgverlenejazzmsncom Wang Albert ltWangAatgwagovgt Waugh GregltGregWMaxKuneyComgt Yates Henry ltYatesHWSDOTWAGOVgtCc Tom Gaetz lttomgaetzmsncomgt Dave Gent - WAPA ltdavegentasphaltwacomgt VanCollins ltvcollinsacec-waorggt Daniel Seydel II ltdanplatinumbusinessgroupcomgt MaynardJackson ltJacksonMaynardlegwagovgt Carl Livingston ltcarlllivingstongmailcomgt DonMcLeod ltdmcleodnwlaborersorggt JIMMY MATTA ltjimmymattamsncomgt Prince Ed(CAAA) lteprincecaawagovgt David DHondt ltddhondtagcwacomgt Irene Reyesltgloveladyexcelsupplycompanycomgt McDaniel Craig ltMcDaniCwsdotwagovgtsherryharrisergosynchcomSubject WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Good morning On Monday October 30th WSDOT will be releasing the proposed overall Federal HighwayAdministration Disadvantaged Business Enterprise goal attached for public comment throughDecember 15 2017 This overall DBE goal is based upon the recently completely DBE ProgramDisparity Study WSDOT is proposing a 19 percent overall DBE participation goal on Federal Highway

Administration-funded projects for federal fiscal years 2018 through 2020 DBE goals fortransportation projects that receive federal funds represent a percentage of the value of work inwhich minority- and women-owned businesses should participate Once finalized and submitted toFHWA early next year the goal will be effective through Sept 30 2020

The purpose of the DBE program is to create a level playing field for firms owned and operated bydisadvantaged individuals wanting to participate in federally assisted highway transit and aviationprograms The attached overall DBE goal is for FHWA funded projects WSDOT will be updating theFTA and FAA overall DBE goals in the near future

If you have any questions please contact Earl Key Director of the Office of Equal Opportunity at3607057091 or KeyEwsdotwagov Thank you Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

  • Proof-Of-Publicationpdf
    • Mediapdf
      • AGC
      • Daily Journal
      • Daily Medium
      • DBEGood
      • OMWBE
      • Seattle Medium
      • Tabor 100
      • The Chronicle
      • Tukwila
        • King County
          • Public-Comments-20180111pdf
            • 19 DBE Requirement(1)
            • AGC Comments on Proposed 10 Goad
            • Backstrom Curb amp Sidewalk
            • comments on WSDOT proposed DBE goal
            • Cowlitz County Public Works
            • DBE Contracting goals
            • DBE Goal
            • DBE Program Disparity Study
            • Disparity Study Comments from City of Spokane
            • FW_ WSDOT News - WSDOT seeks comments on propos
            • Proposed DBE Goals
            • RE_ DBE Contracting Goal Comments
            • Re_ DBE Goal Comments
            • Re_ Seydel Dan - WSDOT Disparity Study Present
            • Support for WSDOTs proposed DBE goal
            • Why we need mandatory goals
            • WSDOT DBE Goal - Comment in support
            • WSDOT Proposes DBE goal of 19
            • WSDOT propsed DBE Goals
            • WTS - Disparity Study Comment Letter

From Troy HalbergTo Bayne JackieSubject Re DBE Goal CommentsDate Wednesday December 13 2017 35533 PM

JackieToday was another example of why the goals should not be raised There were 2 jobs which Iwas low on and did not get due to the high goals This is exactly what will happen when thegoals get raised The first job was the 9180 Anacortes Ferry Paving Northeast Electric $244924 and UDBE $318000 Second job was the 9172 SR 9 East Junction Job Northeast Electric $68503 and UDBE $76300

Does this seem like a good way to spend the tax payer money I do not see how we are tosurvive if the goals get to 21

Thanks

Troy HalbergOffice360-225-7004Cell360-931-3990Fax360-225-7001

On Thu Nov 30 2017 at 1131 AM Bayne Jackie ltBayneJwsdotwagovgt wrote

Good Morning Troy

Thank you for taking the time to provide us with your experiences with the DBE Program TheWashington State Department of Transportation takes the public involvement process veryseriously and your comments will be taken into consideration prior to a final decision regardingthe overall DBE program goal

If I can be of further assistance please let me know

Best Regards

Jackie Bayne

Policy and Reporting Manager

WSDOT Office of Equal Opportunity

Work (360) 705-7084

Cell (360) 338-5783

BayneJwsdotwagov

From Troy Halberg [mailtotroyhnellcnet] Sent Wednesday November 29 2017 144 PMTo WSDOT Disparity Study ltDisparityStudyWSDOTWAGOVgtSubject DBE Goal Comments

If these goals are to be set that high this would make us as a non DBE small contractor at amajor disadvantage With these high of goals this is like handing all of the DBE electricalcontractors every job These general contractors will have no option but to use thembecause of the goals This should not go into effect We have been low on several jobs in thepast and have not gotten them do to the goals being 18 When this goes on it puts all therest of us contractors at a disadvantage Please consider the smaller non DBE contractorsthat are looking to survive as well

Thanks

Troy Halberg

Office360-225-7004

Cell360-931-3990

Fax360-225-7001

From Daniel Seydel IITo Bayne JackieCc Key Earl daneiwashingtonorg Nadeem Ismail Mussie Tewelde (mteweldehydro2geotechcom)

graceflyrightaolcom Mary Wenner Watkinson LarrySubject Re Seydel Dan - WSDOT Disparity Study Presentation Public TestimonyDate Friday December 8 2017 30323 PM

Jackie

It was my hope that the comments would be put into record I was also hoping that you wouldnot have to be the one having to formulate responses for each clarification If that is the caseI know you are swamped and will then I just ask my comments be only part of the recordHowever if there is dedicated staff that is going to be compiling and responding to theclarification then the below questions would be the priorities of most interest

These were questions unrelated to the disparity study and hopefully should be doable

1) Do you have any reports on your outcomes from the past 5 years on DBE support servicesand specific key performance measures from previous years funding (ie how many firmsutilized what was the objectives were objectives met did outcomes meet total satisfaction ifnot why next steps what was the firms capacity before and after services were performed (iesales employees bonding if applicable insurance equipment line of credit if applicablenumbertype of customers how are they doing now etc))

2) What other changes or improvements other than allowing DBES to select their own serviceproviders and a staff change will be a part of this new program

3) Was consideration to provide the new mentor protege consultant rather than separating theactivities into support services andor technical assistance

Disparity study clarifications

1) Will WSDOT consider sponsoring legislation to support the policy changes and goalincreases to insure manditory goals wont be necessary

a) If not what measures will you grant primes to operate outside the box (ie entertain bestvalue over low bid modify responsiveness by subs to require adherence to meeting voluntarygoals developing standards around federally funded gccm and other low bid procurementsthat give powers to primes to meet objectives including but not limited to mentor protegerelationships joint ventures bond waiving techniques cash flow assistance material andequipment acquisition manufacturer development specifications that have only DBES orinclude equal number of DBES as non DBES as approved installers etc)

2) Will the disparity study consultant be available for implementation or information gatheringfrom other regions

5) Will WSDOT be hiring more diverse staff amp professionaltechnical service providers inother departments outside OEO to insure policies commitments and evaluations areperformed in manner that improves diversity that reflects the communities WSDOT serves bythoughtful and legal efforts increase participation thus creating successful outcomes includingpartnerships and collaborations

Thank you and Merry Christmas

Hi Dan

Thank you for providing such thoughtful public comments questions and testimony

Regarding your public testimony below - I do not believe I am not able to answer questions ifthey are public comments Please let me know what part of this email you would likeclarification on and what part you would like considered public testimony

I appreciate your thoughtful consideration of WSDOTrsquos implementation of our civil rightsprograms

Best Regards

Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

DIDaniel Seydel IIFyi Daniel J Seydel II Platinum Group LLC 2064060844 f) 2062999934wwwplatinumbusinessgroupcom Small Business is the Answer FREE TRAINING FORENTREPRENEURS amp JOB SEEKERS - Polish your skills or make your firm standout thanksto the EntrepreneurialThu 233pDI

Daniel Seydel IIThu 1272017 1123 AMInbox Sent ItemsShow all 7 recipientsTobaynejwsdotwagov ltBayneJwsdotwagovgtJackie

Per your request below are my questions and comments some of which were verbally sharedyesterday

Congratulations on receiving the blessing of additional technical assistance dollars andcompleting the DBE Disparity Study per your report

1) Do you have any reports on your outcomes from the past 5 years on DBE support servicesand specific key performance measures from previous years funding (ie how many firmsutilized what was the objectives were objectives met did outcomes meet total satisfaction ifnot why next steps what was the firms capacity before and after services were performed (ie

sales employees bonding if applicable insurance equipment line of credit if applicablenumbertype of customers how are they doing now etc))

2) What other changes or improvements other than allowing DBES to select their own serviceproviders and a staff change will be a part of this new program

3) Was consideration to provide the new mentor protege consultant rather than separating theactivities into support services andor technical assistance

Disparity study clarifications andor comments

1) Will WSDOT consider sponsoring legislation to support the policy changes and goalincreases to insure manditory goals wont be necessary

a) If not what measures will you grant primes to operate outside the box (ie entertain bestvalue over low bid modify responsiveness by subs to require adherence to meeting voluntarygoals developing standards around federally funded gccm and other low bid procurementsthat give powers to primes to meet objectives including but not limited to mentor protegerelationships joint ventures bond waiving techniques cash flow assistance material andequipment acquisition manufacturer development specifications that have only DBES orinclude equal number of DBES as non DBES as approved installers etc)

2) Will the disparity study consultant be available for implementation or information gatheringfrom other regions

3) What lessons did WSDOT learn that it did not know from the other study(s)

4) What would WSDOT do different (ie scope time line process approach etc)

5) Will WSDOT be hiring more diverse staff amp professionaltechnical service providers inother departments outside OEO to insure policies commitments and evaluations areperformed in manner that improves diversity that reflects the communities WSDOT serves bythoughtful and legal efforts increase participation thus creating successful outcomes includingpartnerships and collaborations

Daniel J Seydel IIPlatinum Group LLC 2064060844f) 2062999934wwwplatinumbusinessgroupcom

Small Business is the Answer

FREE TRAINING FOR ENTREPRENEURS amp JOB SEEKERS - Polish your skills or makeyour firm standout thanks to the Entrepreneurial Institute of Washington

httpswwwyoutubecomchannelUCKL5YeVxL29HnNxqnb6hmXA

LIKE US on FaceBook if an Active Professional Development workshop provided by EIW

Construction University helps your firm or has benefited you

httpswwwfacebookcomEIWashingtonref=hl

From Bayne Jackie ltBayneJwsdotwagovgtSent Friday December 8 2017 10139 PMTo Daniel Seydel IICc Key Earl daneiwashingtonorg Nadeem Ismail Mussie Tewelde(mteweldehydro2geotechcom) graceflyrightaolcom Mary Wenner Watkinson LarrySubject RE Seydel Dan - WSDOT Disparity Study Presentation Public Testimony Hi Dan Thank you for providing such thoughtful public comments questions and testimony Regarding your public testimony below - I do not believe I am not able to answer questions if theyare public comments Please let me know what part of this email you would like clarification on andwhat part you would like considered public testimony I appreciate your thoughtful consideration of WSDOTrsquos implementation of our civil rights programs Best Regards Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov From Daniel Seydel II [mailtodanplatinumbusinessgroupcom] Sent Thursday December 7 2017 1123 AMTo Bayne Jackie ltBayneJwsdotwagovgtCc Key Earl ltKeyEwsdotwagovgt daneiwashingtonorg Nadeem Ismailltnipaintingearthlinknetgt Mussie Tewelde (mteweldehydro2geotechcom)ltmteweldehydro2geotechcomgt graceflyrightaolcom Mary Wennerltmwenn0108yahoocomgtSubject Seydel Dan - WSDOT Disparity Study Presentation Public Testimony Jackie

Per your request below are my questions and comments some of which were verbally sharedyesterday

Congratulations on receiving the blessing of additional technical assistance dollars andcompleting the DBE Disparity Study per your report

1) Do you have any reports on your outcomes from the past 5 years on DBE support servicesand specific key performance measures from previous years funding (ie how many firmsutilized what was the objectives were objectives met did outcomes meet total satisfaction ifnot why next steps what was the firms capacity before and after services were performed (iesales employees bonding if applicable insurance equipment line of credit if applicablenumbertype of customers how are they doing now etc))

2) What other changes or improvements other than allowing DBES to select their own serviceproviders and a staff change will be a part of this new program

3) Was consideration to provide the new mentor protege consultant rather than separating theactivities into support services andor technical assistance

Disparity study clarifications andor comments

1) Will WSDOT consider sponsoring legislation to support the policy changes and goalincreases to insure manditory goals wont be necessary

a) If not what measures will you grant primes to operate outside the box (ie entertain bestvalue over low bid modify responsiveness by subs to require adherence to meeting voluntarygoals developing standards around federally funded gccm and other low bid procurementsthat give powers to primes to meet objectives including but not limited to mentor protegerelationships joint ventures bond waiving techniques cash flow assistance material andequipment acquisition manufacturer development specifications that have only DBES orinclude equal number of DBES as non DBES as approved installers etc)

2) Will the disparity study consultant be available for implementation or information gatheringfrom other regions

3) What lessons did WSDOT learn that it did not know from the other study(s)

4) What would WSDOT do different (ie scope time line process approach etc)

5) Will WSDOT be hiring more diverse staff amp professionaltechnical service providers inother departments outside OEO to insure policies commitments and evaluations areperformed in manner that improves diversity that reflects the communities WSDOT serves bythoughtful and legal efforts increase participation thus creating successful outcomes includingpartnerships and collaborations

Thank you for your hard work

Daniel J Seydel IIPlatinum Group LLC2064060844f) 2062999934wwwplatinumbusinessgroupcom

Small Business is the Answer

FREE TRAINING FOR ENTREPRENEURS amp JOB SEEKERS - Polish your skills or makeyour firm standout thanks to the Entrepreneurial Institute of Washington

httpswwwyoutubecomchannelUCKL5YeVxL29HnNxqnb6hmXA

LIKE US on FaceBook if an Active Professional Development workshop provided by EIWConstruction University helps your firm or has benefited you

httpswwwfacebookcomEIWashingtonref=hl

From Erin EhlingerTo Bayne JackieSubject Support for WSDOTs proposed DBE goalDate Wednesday December 13 2017 115417 AM

I am writing to support the WSDOT recommended DBE Goal for FHWA contracts of 190 I also want to express my appreciation for the thoroughness of the WSDOT Disparity study and howthe study disclosed the disparity in WSDOT contracts that do not have a DBE or WBE goal ndash furtherreinforcing that all women-owned firms and minority owned firms face equity issues I remain concerned with the methodology required by the Code of Federal Regulations and case lawbecause of the dependence on the availability of firms in the calculation An unintendedconsequence of removing either gender or race from the goal is that many of these firms would goout of business the availability decreases and the formula then results in a smaller DBE goal Pleaselet me know how I can help influence a change to the CFR Thank you Erin Ehlinger

Erin Ehlinger PEPresident

24036 SE 47th StSammamish WA 98029erinehlingersmartcitytrafficcom425-221-0320

From Jackie EtterTo WSDOT Disparity StudySubject Why we need mandatory goalsDate Friday December 1 2017 61859 PM

As a DBE participating in bidding process I have found that regardless of the language which claims to insurethat disadvantaged business enterprises shall not be discriminated against the only way to ensure that this does nothappen is by mandating affirmative action goals Having been overlooked time and time again because of my gender when I have submitted bids that are verycompetitive with other bidders is very frustrating I have had many instances of companies using my price to getmy non DBE competitors to lower theirs The voluntary or laudatory DBE goals do nothing to ensure a level playing fieldThe only way to ensure non-discrimination is through mandatory goals

Jackie EtterWest Star Construction of Spokane

Sent from my iPhone

From Claudia HirscheyTo Key Earl Bayne JackieSubject WSDOT DBE Goal - Comment in supportDate Tuesday December 12 2017 61937 PM

Dear Earl and Jackie The WSDOT recommended DBE Goal for FHWA contracts of 190 is a small and important increasethat can further achieve equity in WSDOTFHWA contracting I am in support of the 19 DBE Goal I also want to express my appreciation for the thoroughness of the WSDOT Disparity study and howthe study disclosed the disparity in WSDOT contracts that do not have a DBE or WBE goal ndash furtherreinforcing that all women-owned firms and minority owned firms face equity issues I remain concerned with the methodology required by the Code of Federal Regulations and case lawbecause of the dependence on the availability of firms in the calculation An unintendedconsequence of removing either gender or race from the goal is that many of these firms would goout of business the availability decreases and the formula then results in a smaller DBE goal Sincerely Claudia S Hirschey PETransportation Consulting Servicesclaudiahirscheycomcastnethttphirscheytcscom2068564988 Mobile

From Nate ThomasTo WSDOT Disparity StudySubject WSDOT Proposes DBE goal of 19Date Thursday December 7 2017 42720 PM

The WSDOT should look into similar ways the Federal Gov has handled the equal opportunity forthose that fall under the DBE status and set aside specific projects for the DBErsquos and moreimportantly UDBErsquos so these companies have better chance of landing contracts Maybe a lot 10 ofthe DBE goal to set aside for only DBEs and other 9 goal met as it is done currently with COA onlarger contracts Nate ThomasSenior EstimatorD 5095688085 | C 5099941156331 North Fancher Road | Spokane WA | 99212

The information contained in this email including any attachments is confidential and may beprivileged It is intended only for the person or entity to which it is addressed and no waiver isintended by sending this email If the reader is not the intended recipient you are herebynotified that any review retransmission dissemination or other use of or taking any action inreliance upon this information is strictly prohibited If you have received this email in errorkindly notify the sender by reply email and delete the original message from any computerThank You

From Brian FujiiTo WSDOT Disparity StudySubject WSDOT propsed DBE GoalsDate Thursday December 7 2017 110638 AM

Good morning Jackie

I wanted to comment on WSDOTs proposed DBE goal to 19 I believe WSDOTs plan toincrease the overall DBE goal to 19 will provide greater opportunities for DBE contractorsin different disciplines to participate in federally funded contracts

Without the new DBE requirement and with Proposition 200 there are limited opportunitiesfor DBE contractors in disciplines different than the typical trucking flagging and rebar Inaddition there are no incentives for general contractors to go out beyond the usual truckingflagging and rebar DBE subcontractors

Increasing the DBE goals will provide opportunities for different DBE contractors in differentdisciplines to participate in WSDOT federally funded projects

Thank you for your time

RespectfullyBrian FujiiPresident Subsurface ConstructionP 2063836478F 2069604639MDBE 4M0024998

From Forman StephanieTo Bayne JackieCc Millar Roger christinenhanmailhousegov Claudia Hirschey Sarah Corbin Jiang Yingle

efaulknerenviroissuescom Diana Giraldo Kelly CheesemanSubject WTS - Disparity Study Comment LetterDate Friday December 15 2017 71020 PMAttachments 2017_Dec 15_WTSCommentLetter_WSDOT DBE Goalpdf

Dear Ms Bayne Please find our attached letter which summarizes the WTS Puget Sound Chapterrsquos support foradvancement of women in transportation and our comment letter regarding the recent DisparityStudy Please feel free to contact me if you have any questions or would like to discuss Sincerely Stephanie S Forman PEWTS Puget Sound President Transportation Project Manager

929 108th Avenue NE Suite 1300Bellevue WA 98004D 4254681548 M 2062291745stephanieformanhdrinccom

December 15 2017

Jackie Bayne Policy and Reporting Manager

Office of Equal Opportunity

Washington State Department of Transportation

PO Box 47314

Olympia WA 98504-7314

Dear Ms Bayne

On behalf of the Puget Sound Chapter of Womenrsquos Transportation Seminar (WTS) we would

like to thank the Washington State Department of Transportation for presenting to our

organization the DBE Disparity Study results We very much appreciated the presentation by Earl

Key Director of WSDOTrsquos Office of Equal Opportunity Teresa Berntsen (Director Office of Minority

and Womens Business Enterprises) as well as Leslie Jones (Director Sound Transit Office of Small

Business Development and Labor Compliance)

Following a review of the WSDOT Disparity Study and as a result of consultation with WTS

International we would like to provide WSDOT with our comments for your consideration

As you know WTS is an organization focused exclusively on attracting retaining and advancing

women in transportation By the year 2018 there will be thousands of vacancies in the

transportation industry for qualified professionals and while women account for more than half of

the worldrsquos workforce they are a very small minority in transportation disciplines

We are pleased that the outcome of the 2017 Disparity Study that recognizes the on-going barriers

for DBEs including women-owned businesses in transportation The WSDOT recommended DBE

Goal of 190 is a small and important increase that can further achieve equity in WSDOTFHWA

contracting We are also pleased that the 2017 Disparity Study has documented the disparity in

WSDOT contracts that do not have a DBE or WBE goal ndash further reinforcing that all women-owned

firms and minority owned firms face equity issues We are encouraged that the WSDOT has asked

FHWA to rescind the 2016 waiver

While WTSrsquo mission is specific to the advancement of women we are a race-neutral organization To

this end we are also deeply concerned about the underutilization of minority owned firms There is

no equity or ldquofair playing fieldrdquo without equity for all gender and races We remained concerned with

the methodology required by the Code of Federal Regulations and case law because of the

dependence on the availability of firms in the calculation An unintended consequence of removing

either gender or race from the goal is that many of these firms would go out of business the

availability decreases and the formula then results in a smaller DBE goal This consequence is

contrary to our mission

We look forward to our continued participation in WSDOTrsquos DBE advisory group we are anticipating

notice that the 2016 waiver has been rescinded and how we can work together to continue

advancing minority and women-owned firms in the transportation field

Sincerely

WTS Puget Sound Chapter

Stephanie Forman

President

C Roger Millar Secretary WSDOT

C Representative Adam Smith 9th Congressional District Washington co Christine Nhan

WTS Puget Sound Chapter

PO Box 3461

Bellevue Washington 98009

From Dave Gent - WAPATo Bayne JackieCc Tom GaetzSubject WAPA Public Comments - RE WSDOT FHWA Disadvantaged Business Enterprise Proposed GoalDate Friday December 15 2017 14119 PMAttachments 12152017 DBE Proposed Goal - WAPA Public Comments Letterpdf

Good afternoon Jackie Please find attached WAPArsquos ldquofor the public recordrdquo comments with respect to WSDOTrsquos proposedDBE Goals FHWA funded work I assume that the Master DBE Directory was not sent to you this week so as a result we were notable to review the directory before the close of the public comment period That fact is noted withinour comment letter Thank you for your efforts Have a good weekend

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Friday December 8 2017 1219 PMTo Dave Gent - WAPA ltdavegentasphaltwacomgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hello Dave WSDOT did not take possession of this directory as part of our review process We will provide youwith the records without submitting a formal request However we need to get them from theconsultant first I will hopefully have them to provide next week I will keep you updated on therequest Have a nice weekend Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal Opportunity

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

December 15 2017

Jackie Bayne Policy Manager WSDOT Office of Equal Opportunity Delivered via e-mail to BayneJwsdotwagov RE Public Comment (as requested) to Proposed Overall DBE Goal for the FHWA (2018 ndash 2020) Ms Bayne Thank you for your presentation via webinar on December 5 2017 outlining WSDOTrsquos evaluation process used to determine the proposed overall DBE goal for the FHWA Thank you also for the Colette Holt amp Associates (CHA) DBE Advisory Group presentation made on September 14 2017 Both presentations helped to distill the findings of the 2017 Disparity Study produced by CHA In response to Earl Keyrsquos initial informal request to comment on the proposed overall DBE goal made during the DBE Advisory Committee teleconference held on October 12th we provided a list of reasons that we believe justify a lower DBE goal than is now being proposed Our initial response to Mr Keyrsquos request did not serve to influence WSDOT and the current proposed goal remains at 190 The arguments provided on October 12th against the significant increase in the proposed DBE goal (versus the previous goal and recent historic DBE participation) are repeated and supplemented below and will serve as the Asphalt Pavement Associationrsquos (WAPArsquos) official public comments

In concert with WSDOT and the OWMBE WAPA and the construction firms that WAPA represents have demonstrated a commitment to the principals of equal opportunity for all ldquoready willing and ablerdquo firms for the entire history that our DBE program has been in place WAPA has continuously demonstrated its commitment to the goals of the DBE program and for increasing the representation of disadvantaged groups within our industry as both workers and owners of firms Please recognize that WAPArsquos oversight and critique of the DBE program has always attempted to balance the principals of fair and open competition with the practical aspects of the low bid compressed schedule high performance standards demanded within the WSDOT marketplace Our comments below are meant to enhance WSDOTrsquos and OWMBErsquos understanding of the market and to hopefully have WSDOT fully consider all of the dynamics that are at play when proposing its Triennial DBE goal for FHWA projects Current DBE Capacity vs Historically Robust Market In advocating for a realistic and defensible DBE goal it has always been WAPArsquos position that it is paramount that the realities of the marketplace and true certified DBE subcontracting capacity should be a primary standard While a ldquostretchrdquo goal may appear to be progressive on its face it comes with consequences for all of the parties involved in the WSDOT federal aid contracting arena To balance the dynamics of the WSDOT contracting system the DBE goal should be tempered with the realities of the market and with a true measure of the underlying effectiveness of the DBE support services available to contractors

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 2 of 6 The first point of fact that has not been given any apparent consideration by WSDOT in its evaluation of the current capacity of certified DBErsquos is that there is an historically robust workload scheduled to be performed in the 2017 through 2022 time-frame particularly in the Puget Sound ldquoEverett to Olympiardquo corridor By WSDOTrsquos own estimates (see Attachment A) public works construction project starts in the 2018 to 2022 time-frame in this region will exceed $333 billion (B) counting the work projected from just five public entities WSDOT will be taking a decidedly ldquoback seatrdquo role during this period to Sound Transit which will have construction project starts of $226B vs WSDOTrsquos projected volume of $67B WSDOTrsquos summary publication titled Washington State Department of Transportations Proposed Federal Highway Administration Triennium Disadvantaged Business Enterprise Goal Federal Fiscal Years 2018-2020 states correctly that ldquoIncluded among the types of evidence that must be considered are the current capacity of DBEs to perform work on WSDOTrsquos federally-assisted contracts as measured by the volume of work DBEs have performed in recent yearshelliprdquo (Step Two Adjustment discussion) With the Sound Transit program being over 300 larger than the total WSDOT program in this region a sober assessment of true certified DBE capacity in the next three years needs to be considered by WSDOT If the huge construction boom over the next five years does not prompt a Step Two Adjustment then it becomes obvious that the realities of the market are being ignored by WSDOT for DBE goal setting Put another way if the 2018 through 2022 level of contracting activity does not warrant a goal adjustment what will DBE Access Barriers Not Yet Addressed The CHA 2017 Disparity Study points out multiple recommendations in Section VII that impact DBE participation and access to the market Assessments relating to those impacts and the state of maturity in addressing the CHA recommendations should be considered when assessing the DBE goal Many of the CHA recommendation have not been adequately addressed at this point in time Some of the prime examples are listed below Increase Certification and Expertise ndash The Disparity Study as explained to us includes all minority- (MBE)

and women-owned (WBE) firms that could be readily identified that perform work within Washington State and that perform work within the NAICS code framework CHA developed to cover WSDOT project work During the various presentations relating to the Disparity Study WSDOT representatives said that outreach to currently non-certified MBE amp WBE firms has increased and that WSDOT aspires to bolster its list of certified firms in the future but this effort is just beginning and the success of the effort needs to be means tested against the broader population of MBE amp WBE firms included in the CHA base line evaluation As the Disparity Study uses a much broader population of MBE WBE contractors to arrive at its conclusions (both non-certified firms and firms too large for certification) it follows that the calculated DBE proposed goal is overstated to include capacity that does not currently exist within WSDOTrsquos certified DBE framework Unless OMWBE is experiencing sudden and unprecedented success in recruiting new MBEWBE firms the DBE goal should be adjusted downward to recognize that the ldquoready willing and ablerdquo contractors that WSDOT has certified is only a subset of the total MBEWBE contracting population used in the Disparity Study evaluation

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 3 of 6

Until the promised WSDOT outreach registration efforts result in a substantial increase in available certified DBE firms it is premature to count the entire population of minority- and women-owned contractors as available to participate in WSDOT contracting It is unreasonable for WSDOT to project availability capacity using the entire MBEWBE population when only its currently truncated list of certified firms is acceptable to count toward the DBE goal

A corollary to the Increase Certification and Expertise discussion above is that the calculation of the Base Figure evidently includes the broadest practical population of MBE and WBE firms identifiable (without a review of the CHA Master DBE Directory which has not been supplied prior to the close of the public comment period the scope of the directory cannot be ascertained) If this directory includes a large population of MBEWBE firms that are not certified or are too large to be certified then the Base Figure calculation should be adjusted to reflect that certified DBE firms are a fraction of the total MBEWBE firms used to arrive at the 19 suggested DBE goal With respect to the CHA Master Directory it is our understanding the WSDOT was not given the directory as part of its evaluation of the Disparity Study and it follows that it did not evaluate the proposed DBE goal in the context of the CHA Master DBE Directory In our opinion an informed decision on adjusting the CHA baseline goal calculation can only be done after an extensive evaluation of the CHA Master DBE Directory If this has not been done WSDOT has not exercised due diligence in evaluating the context and underpinnings of the CHA Disparity Study and a certified DBE Triennium goal proposal to the FHWA is premature Increase Contract ldquoUnbundlingrdquo ndash If this proposed strategy (suggested by the CHA Study) is undertaken

certified DBE Subcontractors currently available will be engaged as Prime Contractors and the value of their prime contracts will bolster the overall percentage of certified DBE contracting but a systematic effort and strategy to ldquounbundlerdquo has not been articulated by WSDOT The key question of how this effort can be accomplished without increased cost to the taxpayers and increased inconvenience for the traveling public As noted in the CHA study (page 129 final paragraph) ldquoUnbundling must be conducted however within the constraints of the need to ensure efficiency and limit cost to the taxpayersrdquo As of this writing no overarching strategy for further unbundling with proper accountability has been articulated by WSDOT to the DBE Advisory Group

Review Insurance and Experience Requirements ndash Impediments to certified DBE participation due to

necessary insurance and experience standards cannot be solved by the prime contracting community Unless and until WSDOT puts together programs to address the burden of the substantial risks shouldered by Prime Contractors on WSDOT contracts barriers for streamlined utilization of certified DBE firms will continue to exist These market driven barriers will continue to dampen the availability of certified DBE Subcontractors that are able to perform within WSDOTrsquos strict criteria without unduly transferring risk to the Prime Contractor

Better Partnering to Overcome DBE Failures to Perform ndash Prime Contractors are held fully responsible to maintain the project schedule and are subject to project liquidated damages even when they may be struggling to deal with Subcontractor performance issues It is well-established that replacing a certified ldquocondition of awardrdquo (COA) DBE Subcontractor is very onerous and likely very costly to the Prime Contractor Unfortunately the imposition of strict and often counter-productive commercially useful function (CUF) rules often compound this issue as Prime Contractors cannot help COA DBE Subcontractors work through capacity expertise or time-related issues that impact timely performance

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 4 of 6

WSDOT needs to be a much better partner in the process of dealing with under-performing or non-performing certified DBE Subcontractors The current standard operational procedure places all of the exposure for non-performance onto the Prime WSDOT does not have an equitable system to account for non-performing or under-performing certified DBE Subcontractors hired as a condition of award (COA)

Performance Information and Training ndash Commercially useful function rules (CUF) and the lack of clear benchmark definitions for good faith effort (GFE) standards remain barriers for improving accountability within the DBE system and in turn lead to distorted DBE participation rates These items remain amorphous due to lack of training or lack of historic information Chronic uncertainty exists regarding both of these items Until WSDOT changes and improves its approach to provide transparency and certainty for both the prime bidding amp subcontracting parties true certified DBE capacity will continue to be masked and the resultant higher subcontracting costs associated with a distorted marketplace will continue to be hidden

WAPA respectfully suggests that simply adding an ldquoEstimated DBE Subcontract Premiumrdquo line to the current DBE bid forms would help to establish benchmarks that could begin to be used to ldquomeans testrdquo good faith efforts If this information had been gathered over the last 20 years of the DBE program meaningful GFE standards could have been developed and could be in place today

An in-depth review of CUF standards would also provide clarity For instance it is unclear why force account items performed by certified DBEs are currently counted at only 50 of the value of the work How was this benchmark established Has it been reviewed since imposed Did it ldquosolverdquo whatever inequity WSDOT was trying to address Better clarity may lead to more expanded opportunities for certified DBE Subcontractors

Enhanced Supportive Services and Business Development Programs ndash Unless and until stronger programs of these types are shown to be effective in boosting certified DBE business development increased DBE participation due to stronger business acumen should not be relied upon when setting the new DBE goal

Does OMWBE have a reasonable expectation that future plans for enhanced and expanded programs will be more successful than those employed in the past Assuming that certified DBE Subcontractors will be better prepared to deal with the WSDOT contracting environment than in the past should not be relied upon to boost DBE participation goals Especially troubling were the multiple references within the CHA report highlighting that DBEs believe that the staff at OMWBE lack a deep knowledge about the highway construction industry (eg Study page 129 2nd paragraph) Does OMWBE have a path forward that will address this issue and thus improve supportive services impacts

Develop a Bonding and Financing Program for SBEs ndash This is completely outside of the prime contracting

communityrsquos scope of influence WSDOT must find a way to institute changes that both protect the taxpayer and help increase certified DBE bonding capacity and access to financing ndash very large hurtles To assume that these hurtles can effectively be overcome within the 2018 ndash 2020 time frame when they have been chromic issues for the past 20 plus years of DBE program development is not rational

A helpful innovation would be for WSDOT to underwrite performance and payment bonds for certified DBE firms or to create promote a system that helps certified DBE firms obtain private bonding Bridging the gap to address capital access and performance risks (bonding) must be championed by WSDOT

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 5 of 6

Base Figure Adjustment to Address Available Subcontract Volume and DBE Prime Contracts It is a fact that mid- to large-sized MBEWBE firms that compete both as Prime Contractors and as Subcontractors are not eligible to be OMWBE certified DBEs Further the current amount of contract unbundling for greater DBE access to WSDOT prime contracting (see below) accounts for a very low dollar volume of prime contracts performed by certified DBEs Finally by specification (WSDOT standard specification 1-081) Prime Contractors are obligated to perform 30 of the total volume of the work (less specialty work) or stated another way a maximum of 70 of the dollar volume on WSDOT projects is typically available to award to subcontractors These market dynamics are NOT addressed in the Disparity Study A responsible DBE goal made absent of these facts should not be implemented A reasonable adjustment to the proposed 19 DBE goal is presented below

bull The percent of WSDOT prime contracts awarded to certified DBE firms is likely less than 5 by total WSDOT

contract volume Assuming this approximation is valid (likely very conservative) then the amount of WSDOT contract work available to certified DBE firms via subcontracting should be adjusted to account for the factors outlined above The Base Figure (19) should be adjusted to recognize that a 70 maximum subcontractor participation is available (in the numerator) and to account for the assumed 5 certified DBE prime contracts in the denominator Reasonable Base Figure Adjustment 19 (proposed) x 70 subcontracts available divide 95 of Non-Certified DBEs as Prime Contract Volume = 190 x 0737 = 140 adjusted goal This is an adjustment based on the practical dynamics of the WSDOT contracting system and it represents a more realistic look at the true subcontract volume that is available for Prime Contractors to award to certified DBE firms

Conclusions

Until the items listed above are addressed and in place it is not reasonable to believe that DBE goals can be increased by nearly 163 (from 117 to 190) When the projected robust public works contracting market is appropriately considered the true availability of certified DBE Subcontractors for WSDOT contracts will be truncated due to demand across all public works sectors With multiple strong public works programs competing for a limited population of certified DBEs the ability to meet increased WSDOT DBE goals will be severely challenged Without very clear concise and transparent good faith effort rules the ability to address DBE goals that greatly overestimate true near term certified DBE capacity will result in non-attainment bid day chaos failures to perform andor rapidly increased pricing

The clear conclusion is that at this point in time under the current circumstances without effectively instituted new programs rules procedures that could enhance the certified DBE programrsquos overall effectiveness we believe that the DBE goal should remain at or near 12 As OMWBE documents and demonstrates its future successes in improving access and eliminating capacity barriers only then should the DBE goal be re-evaluated and increased

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 6 of 6

In closing please remember that it is rare that the contracting community is asked our opinion with respect to the WSDOTrsquos DBE policies and so this letter is somewhat a vehicle to highlight collective concerns It is our belief that the majority of the Prime Contractors in Washington state support the objective of creating a level playing field for ready willing and able DBEs

If the level playing field is not yet possible in the absence of the DBE program then the key is to set realistic goals that recognize reflect and address the hard realities and market dynamics imposed by WSDOTrsquos bedrock environment of awarding contracts to the lowest cost responsible and responsive Contractor

Respectfully submitted Washington Asphalt Pavement Association

David Gent Tom Gaetz Executive Director Senior Advisor

Attachment A ndash WSDOT Central Puget Sound Public Works Contracting Projection 2018 - 2022

Con

stru

ctio

n Pr

ojec

t Sta

rts

2018

-202

2S

ound

Tra

nsit

$22

6 B

SD

OT

$08

B

Tran

sit

amp O

ther

s$1

7 B

WS

DO

T$6

7 B

Por

t of

Sea

ttle

$15

B

TOTA

L$3

33

B

Source N

ov 1

9 2

017

pres

enta

tion

to W

APA

Ann

ual M

eetin

g

Attachment A

Work (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Dave Gent - WAPA [mailtodavegentasphaltwacom] Sent Thursday December 7 2017 144 PMTo Bayne Jackie ltBayneJwsdotwagovgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hi again Jackie Irsquom fine thanks and hope you are the same Interesting The Master DBE Directory is the basis for and integral to the conclusions of the DisparityStudy Is it not then part of the information needed to fully review and comment on the DisparityStudy Was it not provided by CHA to WSDOT for review We are trying to fully understand thestudy and if this directory was part of the study why would it need to be obtained by a publicrecords disclosure It should be in the public domain and not restricted from ease of access If you are sure that a public records request is needed Irsquoll start that process but we will need tonote that point of fact when we submit our public comments If you are able to reconsider please let me know Respectfully

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Thursday December 7 2017 126 PMTo Dave Gent - WAPA ltdavegentasphaltwacomgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hello Dave I hope you are doing well

That information would likely be obtained through a public disclosure request Best Regards Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Dave Gent - WAPA [mailtodavegentasphaltwacom] Sent Thursday December 7 2017 113 PMTo Bayne Jackie ltBayneJwsdotwagovgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Jackie Can you please provide an electronic file or provide a weblink for the Master DBE Directory thatColette Holt amp Associates developed for the WSDOT Disparity Study 2017 (first referred to on Page 8of the Disparity Study) I did not see a link to this Master DBE Directory within the study Thanks

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Friday October 27 2017 1118 AMTo Kenyon Wendy ltKenyonWwsdotwagovgt Adams E W ltewadamssystemsclcomgtAdekoyaAndrew ltandrewadekoyabccomgt AlyssaBalllegwagov Anindita Mitraltamitracrea-affiliatescomgt APRISeattlehotmailcom Armstrong CharlotteltCharlieAatgwagovgt Ato Apiafi Architects PLLC ltatoaatoapiaficomgt benzfanwaorgBerntsen Teresa (OMWBE) ltTeresaBomwbewagovgt Billingsley Andrealtbillinawsdotwagovgt Bramlet Erica ltEricaBramletlegwagovgt Brooks Julius

ltBrooksJwsdotwagovgt Brown Jason ltjbrownldccorpcomgt bwallacenwlaborersorgCamden Allison ltCamdenAwsdotwagovgt carlllivingstongmailcom Cerda OscarltCerdaOwsdotwagovgt Christopher Chris ltChristCwsdotwagovgt ckerneycaawagovdanplatinumbusinessgroupcom davegentasphaltwacom David BalltDavidsignsnowmillcreekcomgt Davis Khalia ltDavisKhwsdotwagovgt Davis RaShelle (GOVltrashelledavisgovwagovgt Dayton Jo ltDaytonJwsdotwagovgt ddhondtagcwacomDebbieDriverlegwagov Dennis ltdennisahlkiewitcomgt dmcleodnwlaborersorgdrart6651gmailcom Duncan Enid lthigradeincgmailcomgt EltonltEltonwashingtonstatetruckingcomgt eprincecaawagov flemosldccorpcomfmartineznwmtnmsdcorg geoffshookatkncom glovelady ltgloveladyexcelglovescomgtGrabow Katie ltkgrabowsystemsclcomgt Guilfucci Jackie ltJackieGuilfucciskanskacomgt HealyLinda ltHealyLwsdotwagovgt Higginbotham Breanne ltHigginBwsdotwagovgt HirscheyClaudia ltclaudiahirscheycomcastnetgt Holt Colette ltcoletteholtmwbelawcomgt Huff JohnltHuffJwsdotwagovgt Iniguezchawagov JacksonMaynardlegwagov Jimmy Matta(jmattaalcantarassoccom) ltjmattaalcantarassoccomgt kellywickergovwagov Key EarlltKeyEwsdotwagovgt Kirk Jon ltjkirkwhhnfscomgt Kris Purrier ltkpurrierhwageocomgtleewabuildingtradesorg lesliejonessoundtransitorg Liz Evans ltlevansagcwacomgt LopezErin lterinlopezdeswagovgt Martha Cerna ltMarthaPSLCCORGgt Martin-Arnold EdwinaltMartinEwsdotwagovgt Mary Lerdahl ltmarydbeelectricinccomgt McCarty Hannahlthannahmccartylegwagovgt Melissa L Boyles ltmelissaboylesmwbelawcomgt Metcalf KeithltMetcalKwsdotwagovgt michaelicapaawagov Michelle ltMichelleTTCC26netgt MillarRoger ltMillarRwsdotwagovgt Nakamura Jason ltjasonnakamura1-alliancecomgtNavarroLportseattleorg olliepmt-solutionscom pastorbanksesbctacomacom PatrickHughes ltphugheshughesgroupbizgt Petersen Jodi (FHWA) ltJodiPetersendotgovgtrabbottliunaorg rcarmsteadgmailcom ricemportseattleorg Riley D ltdrileylydigcomgtSeling ltSelingjpfranciscomgt sherryharrisergosynchcom Stell MellodyltStellMwsdotwagovgt terigobintulaliptribes-nsngov timwilliamfactorycom tinaterra-tdicom tkellyldccorpcom tomgaetzmsncom vcollinsacec-waorgverlenejazzmsncom Wang Albert ltWangAatgwagovgt Waugh GregltGregWMaxKuneyComgt Yates Henry ltYatesHWSDOTWAGOVgtCc Tom Gaetz lttomgaetzmsncomgt Dave Gent - WAPA ltdavegentasphaltwacomgt VanCollins ltvcollinsacec-waorggt Daniel Seydel II ltdanplatinumbusinessgroupcomgt MaynardJackson ltJacksonMaynardlegwagovgt Carl Livingston ltcarlllivingstongmailcomgt DonMcLeod ltdmcleodnwlaborersorggt JIMMY MATTA ltjimmymattamsncomgt Prince Ed(CAAA) lteprincecaawagovgt David DHondt ltddhondtagcwacomgt Irene Reyesltgloveladyexcelsupplycompanycomgt McDaniel Craig ltMcDaniCwsdotwagovgtsherryharrisergosynchcomSubject WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Good morning On Monday October 30th WSDOT will be releasing the proposed overall Federal HighwayAdministration Disadvantaged Business Enterprise goal attached for public comment throughDecember 15 2017 This overall DBE goal is based upon the recently completely DBE ProgramDisparity Study WSDOT is proposing a 19 percent overall DBE participation goal on Federal Highway

Administration-funded projects for federal fiscal years 2018 through 2020 DBE goals fortransportation projects that receive federal funds represent a percentage of the value of work inwhich minority- and women-owned businesses should participate Once finalized and submitted toFHWA early next year the goal will be effective through Sept 30 2020

The purpose of the DBE program is to create a level playing field for firms owned and operated bydisadvantaged individuals wanting to participate in federally assisted highway transit and aviationprograms The attached overall DBE goal is for FHWA funded projects WSDOT will be updating theFTA and FAA overall DBE goals in the near future

If you have any questions please contact Earl Key Director of the Office of Equal Opportunity at3607057091 or KeyEwsdotwagov Thank you Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

  • Proof-Of-Publicationpdf
    • Mediapdf
      • AGC
      • Daily Journal
      • Daily Medium
      • DBEGood
      • OMWBE
      • Seattle Medium
      • Tabor 100
      • The Chronicle
      • Tukwila
        • King County
          • Public-Comments-20180111pdf
            • 19 DBE Requirement(1)
            • AGC Comments on Proposed 10 Goad
            • Backstrom Curb amp Sidewalk
            • comments on WSDOT proposed DBE goal
            • Cowlitz County Public Works
            • DBE Contracting goals
            • DBE Goal
            • DBE Program Disparity Study
            • Disparity Study Comments from City of Spokane
            • FW_ WSDOT News - WSDOT seeks comments on propos
            • Proposed DBE Goals
            • RE_ DBE Contracting Goal Comments
            • Re_ DBE Goal Comments
            • Re_ Seydel Dan - WSDOT Disparity Study Present
            • Support for WSDOTs proposed DBE goal
            • Why we need mandatory goals
            • WSDOT DBE Goal - Comment in support
            • WSDOT Proposes DBE goal of 19
            • WSDOT propsed DBE Goals
            • WTS - Disparity Study Comment Letter

Jackie Bayne

Policy and Reporting Manager

WSDOT Office of Equal Opportunity

Work (360) 705-7084

Cell (360) 338-5783

BayneJwsdotwagov

From Troy Halberg [mailtotroyhnellcnet] Sent Wednesday November 29 2017 144 PMTo WSDOT Disparity Study ltDisparityStudyWSDOTWAGOVgtSubject DBE Goal Comments

If these goals are to be set that high this would make us as a non DBE small contractor at amajor disadvantage With these high of goals this is like handing all of the DBE electricalcontractors every job These general contractors will have no option but to use thembecause of the goals This should not go into effect We have been low on several jobs in thepast and have not gotten them do to the goals being 18 When this goes on it puts all therest of us contractors at a disadvantage Please consider the smaller non DBE contractorsthat are looking to survive as well

Thanks

Troy Halberg

Office360-225-7004

Cell360-931-3990

Fax360-225-7001

From Daniel Seydel IITo Bayne JackieCc Key Earl daneiwashingtonorg Nadeem Ismail Mussie Tewelde (mteweldehydro2geotechcom)

graceflyrightaolcom Mary Wenner Watkinson LarrySubject Re Seydel Dan - WSDOT Disparity Study Presentation Public TestimonyDate Friday December 8 2017 30323 PM

Jackie

It was my hope that the comments would be put into record I was also hoping that you wouldnot have to be the one having to formulate responses for each clarification If that is the caseI know you are swamped and will then I just ask my comments be only part of the recordHowever if there is dedicated staff that is going to be compiling and responding to theclarification then the below questions would be the priorities of most interest

These were questions unrelated to the disparity study and hopefully should be doable

1) Do you have any reports on your outcomes from the past 5 years on DBE support servicesand specific key performance measures from previous years funding (ie how many firmsutilized what was the objectives were objectives met did outcomes meet total satisfaction ifnot why next steps what was the firms capacity before and after services were performed (iesales employees bonding if applicable insurance equipment line of credit if applicablenumbertype of customers how are they doing now etc))

2) What other changes or improvements other than allowing DBES to select their own serviceproviders and a staff change will be a part of this new program

3) Was consideration to provide the new mentor protege consultant rather than separating theactivities into support services andor technical assistance

Disparity study clarifications

1) Will WSDOT consider sponsoring legislation to support the policy changes and goalincreases to insure manditory goals wont be necessary

a) If not what measures will you grant primes to operate outside the box (ie entertain bestvalue over low bid modify responsiveness by subs to require adherence to meeting voluntarygoals developing standards around federally funded gccm and other low bid procurementsthat give powers to primes to meet objectives including but not limited to mentor protegerelationships joint ventures bond waiving techniques cash flow assistance material andequipment acquisition manufacturer development specifications that have only DBES orinclude equal number of DBES as non DBES as approved installers etc)

2) Will the disparity study consultant be available for implementation or information gatheringfrom other regions

5) Will WSDOT be hiring more diverse staff amp professionaltechnical service providers inother departments outside OEO to insure policies commitments and evaluations areperformed in manner that improves diversity that reflects the communities WSDOT serves bythoughtful and legal efforts increase participation thus creating successful outcomes includingpartnerships and collaborations

Thank you and Merry Christmas

Hi Dan

Thank you for providing such thoughtful public comments questions and testimony

Regarding your public testimony below - I do not believe I am not able to answer questions ifthey are public comments Please let me know what part of this email you would likeclarification on and what part you would like considered public testimony

I appreciate your thoughtful consideration of WSDOTrsquos implementation of our civil rightsprograms

Best Regards

Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

DIDaniel Seydel IIFyi Daniel J Seydel II Platinum Group LLC 2064060844 f) 2062999934wwwplatinumbusinessgroupcom Small Business is the Answer FREE TRAINING FORENTREPRENEURS amp JOB SEEKERS - Polish your skills or make your firm standout thanksto the EntrepreneurialThu 233pDI

Daniel Seydel IIThu 1272017 1123 AMInbox Sent ItemsShow all 7 recipientsTobaynejwsdotwagov ltBayneJwsdotwagovgtJackie

Per your request below are my questions and comments some of which were verbally sharedyesterday

Congratulations on receiving the blessing of additional technical assistance dollars andcompleting the DBE Disparity Study per your report

1) Do you have any reports on your outcomes from the past 5 years on DBE support servicesand specific key performance measures from previous years funding (ie how many firmsutilized what was the objectives were objectives met did outcomes meet total satisfaction ifnot why next steps what was the firms capacity before and after services were performed (ie

sales employees bonding if applicable insurance equipment line of credit if applicablenumbertype of customers how are they doing now etc))

2) What other changes or improvements other than allowing DBES to select their own serviceproviders and a staff change will be a part of this new program

3) Was consideration to provide the new mentor protege consultant rather than separating theactivities into support services andor technical assistance

Disparity study clarifications andor comments

1) Will WSDOT consider sponsoring legislation to support the policy changes and goalincreases to insure manditory goals wont be necessary

a) If not what measures will you grant primes to operate outside the box (ie entertain bestvalue over low bid modify responsiveness by subs to require adherence to meeting voluntarygoals developing standards around federally funded gccm and other low bid procurementsthat give powers to primes to meet objectives including but not limited to mentor protegerelationships joint ventures bond waiving techniques cash flow assistance material andequipment acquisition manufacturer development specifications that have only DBES orinclude equal number of DBES as non DBES as approved installers etc)

2) Will the disparity study consultant be available for implementation or information gatheringfrom other regions

3) What lessons did WSDOT learn that it did not know from the other study(s)

4) What would WSDOT do different (ie scope time line process approach etc)

5) Will WSDOT be hiring more diverse staff amp professionaltechnical service providers inother departments outside OEO to insure policies commitments and evaluations areperformed in manner that improves diversity that reflects the communities WSDOT serves bythoughtful and legal efforts increase participation thus creating successful outcomes includingpartnerships and collaborations

Daniel J Seydel IIPlatinum Group LLC 2064060844f) 2062999934wwwplatinumbusinessgroupcom

Small Business is the Answer

FREE TRAINING FOR ENTREPRENEURS amp JOB SEEKERS - Polish your skills or makeyour firm standout thanks to the Entrepreneurial Institute of Washington

httpswwwyoutubecomchannelUCKL5YeVxL29HnNxqnb6hmXA

LIKE US on FaceBook if an Active Professional Development workshop provided by EIW

Construction University helps your firm or has benefited you

httpswwwfacebookcomEIWashingtonref=hl

From Bayne Jackie ltBayneJwsdotwagovgtSent Friday December 8 2017 10139 PMTo Daniel Seydel IICc Key Earl daneiwashingtonorg Nadeem Ismail Mussie Tewelde(mteweldehydro2geotechcom) graceflyrightaolcom Mary Wenner Watkinson LarrySubject RE Seydel Dan - WSDOT Disparity Study Presentation Public Testimony Hi Dan Thank you for providing such thoughtful public comments questions and testimony Regarding your public testimony below - I do not believe I am not able to answer questions if theyare public comments Please let me know what part of this email you would like clarification on andwhat part you would like considered public testimony I appreciate your thoughtful consideration of WSDOTrsquos implementation of our civil rights programs Best Regards Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov From Daniel Seydel II [mailtodanplatinumbusinessgroupcom] Sent Thursday December 7 2017 1123 AMTo Bayne Jackie ltBayneJwsdotwagovgtCc Key Earl ltKeyEwsdotwagovgt daneiwashingtonorg Nadeem Ismailltnipaintingearthlinknetgt Mussie Tewelde (mteweldehydro2geotechcom)ltmteweldehydro2geotechcomgt graceflyrightaolcom Mary Wennerltmwenn0108yahoocomgtSubject Seydel Dan - WSDOT Disparity Study Presentation Public Testimony Jackie

Per your request below are my questions and comments some of which were verbally sharedyesterday

Congratulations on receiving the blessing of additional technical assistance dollars andcompleting the DBE Disparity Study per your report

1) Do you have any reports on your outcomes from the past 5 years on DBE support servicesand specific key performance measures from previous years funding (ie how many firmsutilized what was the objectives were objectives met did outcomes meet total satisfaction ifnot why next steps what was the firms capacity before and after services were performed (iesales employees bonding if applicable insurance equipment line of credit if applicablenumbertype of customers how are they doing now etc))

2) What other changes or improvements other than allowing DBES to select their own serviceproviders and a staff change will be a part of this new program

3) Was consideration to provide the new mentor protege consultant rather than separating theactivities into support services andor technical assistance

Disparity study clarifications andor comments

1) Will WSDOT consider sponsoring legislation to support the policy changes and goalincreases to insure manditory goals wont be necessary

a) If not what measures will you grant primes to operate outside the box (ie entertain bestvalue over low bid modify responsiveness by subs to require adherence to meeting voluntarygoals developing standards around federally funded gccm and other low bid procurementsthat give powers to primes to meet objectives including but not limited to mentor protegerelationships joint ventures bond waiving techniques cash flow assistance material andequipment acquisition manufacturer development specifications that have only DBES orinclude equal number of DBES as non DBES as approved installers etc)

2) Will the disparity study consultant be available for implementation or information gatheringfrom other regions

3) What lessons did WSDOT learn that it did not know from the other study(s)

4) What would WSDOT do different (ie scope time line process approach etc)

5) Will WSDOT be hiring more diverse staff amp professionaltechnical service providers inother departments outside OEO to insure policies commitments and evaluations areperformed in manner that improves diversity that reflects the communities WSDOT serves bythoughtful and legal efforts increase participation thus creating successful outcomes includingpartnerships and collaborations

Thank you for your hard work

Daniel J Seydel IIPlatinum Group LLC2064060844f) 2062999934wwwplatinumbusinessgroupcom

Small Business is the Answer

FREE TRAINING FOR ENTREPRENEURS amp JOB SEEKERS - Polish your skills or makeyour firm standout thanks to the Entrepreneurial Institute of Washington

httpswwwyoutubecomchannelUCKL5YeVxL29HnNxqnb6hmXA

LIKE US on FaceBook if an Active Professional Development workshop provided by EIWConstruction University helps your firm or has benefited you

httpswwwfacebookcomEIWashingtonref=hl

From Erin EhlingerTo Bayne JackieSubject Support for WSDOTs proposed DBE goalDate Wednesday December 13 2017 115417 AM

I am writing to support the WSDOT recommended DBE Goal for FHWA contracts of 190 I also want to express my appreciation for the thoroughness of the WSDOT Disparity study and howthe study disclosed the disparity in WSDOT contracts that do not have a DBE or WBE goal ndash furtherreinforcing that all women-owned firms and minority owned firms face equity issues I remain concerned with the methodology required by the Code of Federal Regulations and case lawbecause of the dependence on the availability of firms in the calculation An unintendedconsequence of removing either gender or race from the goal is that many of these firms would goout of business the availability decreases and the formula then results in a smaller DBE goal Pleaselet me know how I can help influence a change to the CFR Thank you Erin Ehlinger

Erin Ehlinger PEPresident

24036 SE 47th StSammamish WA 98029erinehlingersmartcitytrafficcom425-221-0320

From Jackie EtterTo WSDOT Disparity StudySubject Why we need mandatory goalsDate Friday December 1 2017 61859 PM

As a DBE participating in bidding process I have found that regardless of the language which claims to insurethat disadvantaged business enterprises shall not be discriminated against the only way to ensure that this does nothappen is by mandating affirmative action goals Having been overlooked time and time again because of my gender when I have submitted bids that are verycompetitive with other bidders is very frustrating I have had many instances of companies using my price to getmy non DBE competitors to lower theirs The voluntary or laudatory DBE goals do nothing to ensure a level playing fieldThe only way to ensure non-discrimination is through mandatory goals

Jackie EtterWest Star Construction of Spokane

Sent from my iPhone

From Claudia HirscheyTo Key Earl Bayne JackieSubject WSDOT DBE Goal - Comment in supportDate Tuesday December 12 2017 61937 PM

Dear Earl and Jackie The WSDOT recommended DBE Goal for FHWA contracts of 190 is a small and important increasethat can further achieve equity in WSDOTFHWA contracting I am in support of the 19 DBE Goal I also want to express my appreciation for the thoroughness of the WSDOT Disparity study and howthe study disclosed the disparity in WSDOT contracts that do not have a DBE or WBE goal ndash furtherreinforcing that all women-owned firms and minority owned firms face equity issues I remain concerned with the methodology required by the Code of Federal Regulations and case lawbecause of the dependence on the availability of firms in the calculation An unintendedconsequence of removing either gender or race from the goal is that many of these firms would goout of business the availability decreases and the formula then results in a smaller DBE goal Sincerely Claudia S Hirschey PETransportation Consulting Servicesclaudiahirscheycomcastnethttphirscheytcscom2068564988 Mobile

From Nate ThomasTo WSDOT Disparity StudySubject WSDOT Proposes DBE goal of 19Date Thursday December 7 2017 42720 PM

The WSDOT should look into similar ways the Federal Gov has handled the equal opportunity forthose that fall under the DBE status and set aside specific projects for the DBErsquos and moreimportantly UDBErsquos so these companies have better chance of landing contracts Maybe a lot 10 ofthe DBE goal to set aside for only DBEs and other 9 goal met as it is done currently with COA onlarger contracts Nate ThomasSenior EstimatorD 5095688085 | C 5099941156331 North Fancher Road | Spokane WA | 99212

The information contained in this email including any attachments is confidential and may beprivileged It is intended only for the person or entity to which it is addressed and no waiver isintended by sending this email If the reader is not the intended recipient you are herebynotified that any review retransmission dissemination or other use of or taking any action inreliance upon this information is strictly prohibited If you have received this email in errorkindly notify the sender by reply email and delete the original message from any computerThank You

From Brian FujiiTo WSDOT Disparity StudySubject WSDOT propsed DBE GoalsDate Thursday December 7 2017 110638 AM

Good morning Jackie

I wanted to comment on WSDOTs proposed DBE goal to 19 I believe WSDOTs plan toincrease the overall DBE goal to 19 will provide greater opportunities for DBE contractorsin different disciplines to participate in federally funded contracts

Without the new DBE requirement and with Proposition 200 there are limited opportunitiesfor DBE contractors in disciplines different than the typical trucking flagging and rebar Inaddition there are no incentives for general contractors to go out beyond the usual truckingflagging and rebar DBE subcontractors

Increasing the DBE goals will provide opportunities for different DBE contractors in differentdisciplines to participate in WSDOT federally funded projects

Thank you for your time

RespectfullyBrian FujiiPresident Subsurface ConstructionP 2063836478F 2069604639MDBE 4M0024998

From Forman StephanieTo Bayne JackieCc Millar Roger christinenhanmailhousegov Claudia Hirschey Sarah Corbin Jiang Yingle

efaulknerenviroissuescom Diana Giraldo Kelly CheesemanSubject WTS - Disparity Study Comment LetterDate Friday December 15 2017 71020 PMAttachments 2017_Dec 15_WTSCommentLetter_WSDOT DBE Goalpdf

Dear Ms Bayne Please find our attached letter which summarizes the WTS Puget Sound Chapterrsquos support foradvancement of women in transportation and our comment letter regarding the recent DisparityStudy Please feel free to contact me if you have any questions or would like to discuss Sincerely Stephanie S Forman PEWTS Puget Sound President Transportation Project Manager

929 108th Avenue NE Suite 1300Bellevue WA 98004D 4254681548 M 2062291745stephanieformanhdrinccom

December 15 2017

Jackie Bayne Policy and Reporting Manager

Office of Equal Opportunity

Washington State Department of Transportation

PO Box 47314

Olympia WA 98504-7314

Dear Ms Bayne

On behalf of the Puget Sound Chapter of Womenrsquos Transportation Seminar (WTS) we would

like to thank the Washington State Department of Transportation for presenting to our

organization the DBE Disparity Study results We very much appreciated the presentation by Earl

Key Director of WSDOTrsquos Office of Equal Opportunity Teresa Berntsen (Director Office of Minority

and Womens Business Enterprises) as well as Leslie Jones (Director Sound Transit Office of Small

Business Development and Labor Compliance)

Following a review of the WSDOT Disparity Study and as a result of consultation with WTS

International we would like to provide WSDOT with our comments for your consideration

As you know WTS is an organization focused exclusively on attracting retaining and advancing

women in transportation By the year 2018 there will be thousands of vacancies in the

transportation industry for qualified professionals and while women account for more than half of

the worldrsquos workforce they are a very small minority in transportation disciplines

We are pleased that the outcome of the 2017 Disparity Study that recognizes the on-going barriers

for DBEs including women-owned businesses in transportation The WSDOT recommended DBE

Goal of 190 is a small and important increase that can further achieve equity in WSDOTFHWA

contracting We are also pleased that the 2017 Disparity Study has documented the disparity in

WSDOT contracts that do not have a DBE or WBE goal ndash further reinforcing that all women-owned

firms and minority owned firms face equity issues We are encouraged that the WSDOT has asked

FHWA to rescind the 2016 waiver

While WTSrsquo mission is specific to the advancement of women we are a race-neutral organization To

this end we are also deeply concerned about the underutilization of minority owned firms There is

no equity or ldquofair playing fieldrdquo without equity for all gender and races We remained concerned with

the methodology required by the Code of Federal Regulations and case law because of the

dependence on the availability of firms in the calculation An unintended consequence of removing

either gender or race from the goal is that many of these firms would go out of business the

availability decreases and the formula then results in a smaller DBE goal This consequence is

contrary to our mission

We look forward to our continued participation in WSDOTrsquos DBE advisory group we are anticipating

notice that the 2016 waiver has been rescinded and how we can work together to continue

advancing minority and women-owned firms in the transportation field

Sincerely

WTS Puget Sound Chapter

Stephanie Forman

President

C Roger Millar Secretary WSDOT

C Representative Adam Smith 9th Congressional District Washington co Christine Nhan

WTS Puget Sound Chapter

PO Box 3461

Bellevue Washington 98009

From Dave Gent - WAPATo Bayne JackieCc Tom GaetzSubject WAPA Public Comments - RE WSDOT FHWA Disadvantaged Business Enterprise Proposed GoalDate Friday December 15 2017 14119 PMAttachments 12152017 DBE Proposed Goal - WAPA Public Comments Letterpdf

Good afternoon Jackie Please find attached WAPArsquos ldquofor the public recordrdquo comments with respect to WSDOTrsquos proposedDBE Goals FHWA funded work I assume that the Master DBE Directory was not sent to you this week so as a result we were notable to review the directory before the close of the public comment period That fact is noted withinour comment letter Thank you for your efforts Have a good weekend

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Friday December 8 2017 1219 PMTo Dave Gent - WAPA ltdavegentasphaltwacomgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hello Dave WSDOT did not take possession of this directory as part of our review process We will provide youwith the records without submitting a formal request However we need to get them from theconsultant first I will hopefully have them to provide next week I will keep you updated on therequest Have a nice weekend Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal Opportunity

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

December 15 2017

Jackie Bayne Policy Manager WSDOT Office of Equal Opportunity Delivered via e-mail to BayneJwsdotwagov RE Public Comment (as requested) to Proposed Overall DBE Goal for the FHWA (2018 ndash 2020) Ms Bayne Thank you for your presentation via webinar on December 5 2017 outlining WSDOTrsquos evaluation process used to determine the proposed overall DBE goal for the FHWA Thank you also for the Colette Holt amp Associates (CHA) DBE Advisory Group presentation made on September 14 2017 Both presentations helped to distill the findings of the 2017 Disparity Study produced by CHA In response to Earl Keyrsquos initial informal request to comment on the proposed overall DBE goal made during the DBE Advisory Committee teleconference held on October 12th we provided a list of reasons that we believe justify a lower DBE goal than is now being proposed Our initial response to Mr Keyrsquos request did not serve to influence WSDOT and the current proposed goal remains at 190 The arguments provided on October 12th against the significant increase in the proposed DBE goal (versus the previous goal and recent historic DBE participation) are repeated and supplemented below and will serve as the Asphalt Pavement Associationrsquos (WAPArsquos) official public comments

In concert with WSDOT and the OWMBE WAPA and the construction firms that WAPA represents have demonstrated a commitment to the principals of equal opportunity for all ldquoready willing and ablerdquo firms for the entire history that our DBE program has been in place WAPA has continuously demonstrated its commitment to the goals of the DBE program and for increasing the representation of disadvantaged groups within our industry as both workers and owners of firms Please recognize that WAPArsquos oversight and critique of the DBE program has always attempted to balance the principals of fair and open competition with the practical aspects of the low bid compressed schedule high performance standards demanded within the WSDOT marketplace Our comments below are meant to enhance WSDOTrsquos and OWMBErsquos understanding of the market and to hopefully have WSDOT fully consider all of the dynamics that are at play when proposing its Triennial DBE goal for FHWA projects Current DBE Capacity vs Historically Robust Market In advocating for a realistic and defensible DBE goal it has always been WAPArsquos position that it is paramount that the realities of the marketplace and true certified DBE subcontracting capacity should be a primary standard While a ldquostretchrdquo goal may appear to be progressive on its face it comes with consequences for all of the parties involved in the WSDOT federal aid contracting arena To balance the dynamics of the WSDOT contracting system the DBE goal should be tempered with the realities of the market and with a true measure of the underlying effectiveness of the DBE support services available to contractors

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 2 of 6 The first point of fact that has not been given any apparent consideration by WSDOT in its evaluation of the current capacity of certified DBErsquos is that there is an historically robust workload scheduled to be performed in the 2017 through 2022 time-frame particularly in the Puget Sound ldquoEverett to Olympiardquo corridor By WSDOTrsquos own estimates (see Attachment A) public works construction project starts in the 2018 to 2022 time-frame in this region will exceed $333 billion (B) counting the work projected from just five public entities WSDOT will be taking a decidedly ldquoback seatrdquo role during this period to Sound Transit which will have construction project starts of $226B vs WSDOTrsquos projected volume of $67B WSDOTrsquos summary publication titled Washington State Department of Transportations Proposed Federal Highway Administration Triennium Disadvantaged Business Enterprise Goal Federal Fiscal Years 2018-2020 states correctly that ldquoIncluded among the types of evidence that must be considered are the current capacity of DBEs to perform work on WSDOTrsquos federally-assisted contracts as measured by the volume of work DBEs have performed in recent yearshelliprdquo (Step Two Adjustment discussion) With the Sound Transit program being over 300 larger than the total WSDOT program in this region a sober assessment of true certified DBE capacity in the next three years needs to be considered by WSDOT If the huge construction boom over the next five years does not prompt a Step Two Adjustment then it becomes obvious that the realities of the market are being ignored by WSDOT for DBE goal setting Put another way if the 2018 through 2022 level of contracting activity does not warrant a goal adjustment what will DBE Access Barriers Not Yet Addressed The CHA 2017 Disparity Study points out multiple recommendations in Section VII that impact DBE participation and access to the market Assessments relating to those impacts and the state of maturity in addressing the CHA recommendations should be considered when assessing the DBE goal Many of the CHA recommendation have not been adequately addressed at this point in time Some of the prime examples are listed below Increase Certification and Expertise ndash The Disparity Study as explained to us includes all minority- (MBE)

and women-owned (WBE) firms that could be readily identified that perform work within Washington State and that perform work within the NAICS code framework CHA developed to cover WSDOT project work During the various presentations relating to the Disparity Study WSDOT representatives said that outreach to currently non-certified MBE amp WBE firms has increased and that WSDOT aspires to bolster its list of certified firms in the future but this effort is just beginning and the success of the effort needs to be means tested against the broader population of MBE amp WBE firms included in the CHA base line evaluation As the Disparity Study uses a much broader population of MBE WBE contractors to arrive at its conclusions (both non-certified firms and firms too large for certification) it follows that the calculated DBE proposed goal is overstated to include capacity that does not currently exist within WSDOTrsquos certified DBE framework Unless OMWBE is experiencing sudden and unprecedented success in recruiting new MBEWBE firms the DBE goal should be adjusted downward to recognize that the ldquoready willing and ablerdquo contractors that WSDOT has certified is only a subset of the total MBEWBE contracting population used in the Disparity Study evaluation

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 3 of 6

Until the promised WSDOT outreach registration efforts result in a substantial increase in available certified DBE firms it is premature to count the entire population of minority- and women-owned contractors as available to participate in WSDOT contracting It is unreasonable for WSDOT to project availability capacity using the entire MBEWBE population when only its currently truncated list of certified firms is acceptable to count toward the DBE goal

A corollary to the Increase Certification and Expertise discussion above is that the calculation of the Base Figure evidently includes the broadest practical population of MBE and WBE firms identifiable (without a review of the CHA Master DBE Directory which has not been supplied prior to the close of the public comment period the scope of the directory cannot be ascertained) If this directory includes a large population of MBEWBE firms that are not certified or are too large to be certified then the Base Figure calculation should be adjusted to reflect that certified DBE firms are a fraction of the total MBEWBE firms used to arrive at the 19 suggested DBE goal With respect to the CHA Master Directory it is our understanding the WSDOT was not given the directory as part of its evaluation of the Disparity Study and it follows that it did not evaluate the proposed DBE goal in the context of the CHA Master DBE Directory In our opinion an informed decision on adjusting the CHA baseline goal calculation can only be done after an extensive evaluation of the CHA Master DBE Directory If this has not been done WSDOT has not exercised due diligence in evaluating the context and underpinnings of the CHA Disparity Study and a certified DBE Triennium goal proposal to the FHWA is premature Increase Contract ldquoUnbundlingrdquo ndash If this proposed strategy (suggested by the CHA Study) is undertaken

certified DBE Subcontractors currently available will be engaged as Prime Contractors and the value of their prime contracts will bolster the overall percentage of certified DBE contracting but a systematic effort and strategy to ldquounbundlerdquo has not been articulated by WSDOT The key question of how this effort can be accomplished without increased cost to the taxpayers and increased inconvenience for the traveling public As noted in the CHA study (page 129 final paragraph) ldquoUnbundling must be conducted however within the constraints of the need to ensure efficiency and limit cost to the taxpayersrdquo As of this writing no overarching strategy for further unbundling with proper accountability has been articulated by WSDOT to the DBE Advisory Group

Review Insurance and Experience Requirements ndash Impediments to certified DBE participation due to

necessary insurance and experience standards cannot be solved by the prime contracting community Unless and until WSDOT puts together programs to address the burden of the substantial risks shouldered by Prime Contractors on WSDOT contracts barriers for streamlined utilization of certified DBE firms will continue to exist These market driven barriers will continue to dampen the availability of certified DBE Subcontractors that are able to perform within WSDOTrsquos strict criteria without unduly transferring risk to the Prime Contractor

Better Partnering to Overcome DBE Failures to Perform ndash Prime Contractors are held fully responsible to maintain the project schedule and are subject to project liquidated damages even when they may be struggling to deal with Subcontractor performance issues It is well-established that replacing a certified ldquocondition of awardrdquo (COA) DBE Subcontractor is very onerous and likely very costly to the Prime Contractor Unfortunately the imposition of strict and often counter-productive commercially useful function (CUF) rules often compound this issue as Prime Contractors cannot help COA DBE Subcontractors work through capacity expertise or time-related issues that impact timely performance

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 4 of 6

WSDOT needs to be a much better partner in the process of dealing with under-performing or non-performing certified DBE Subcontractors The current standard operational procedure places all of the exposure for non-performance onto the Prime WSDOT does not have an equitable system to account for non-performing or under-performing certified DBE Subcontractors hired as a condition of award (COA)

Performance Information and Training ndash Commercially useful function rules (CUF) and the lack of clear benchmark definitions for good faith effort (GFE) standards remain barriers for improving accountability within the DBE system and in turn lead to distorted DBE participation rates These items remain amorphous due to lack of training or lack of historic information Chronic uncertainty exists regarding both of these items Until WSDOT changes and improves its approach to provide transparency and certainty for both the prime bidding amp subcontracting parties true certified DBE capacity will continue to be masked and the resultant higher subcontracting costs associated with a distorted marketplace will continue to be hidden

WAPA respectfully suggests that simply adding an ldquoEstimated DBE Subcontract Premiumrdquo line to the current DBE bid forms would help to establish benchmarks that could begin to be used to ldquomeans testrdquo good faith efforts If this information had been gathered over the last 20 years of the DBE program meaningful GFE standards could have been developed and could be in place today

An in-depth review of CUF standards would also provide clarity For instance it is unclear why force account items performed by certified DBEs are currently counted at only 50 of the value of the work How was this benchmark established Has it been reviewed since imposed Did it ldquosolverdquo whatever inequity WSDOT was trying to address Better clarity may lead to more expanded opportunities for certified DBE Subcontractors

Enhanced Supportive Services and Business Development Programs ndash Unless and until stronger programs of these types are shown to be effective in boosting certified DBE business development increased DBE participation due to stronger business acumen should not be relied upon when setting the new DBE goal

Does OMWBE have a reasonable expectation that future plans for enhanced and expanded programs will be more successful than those employed in the past Assuming that certified DBE Subcontractors will be better prepared to deal with the WSDOT contracting environment than in the past should not be relied upon to boost DBE participation goals Especially troubling were the multiple references within the CHA report highlighting that DBEs believe that the staff at OMWBE lack a deep knowledge about the highway construction industry (eg Study page 129 2nd paragraph) Does OMWBE have a path forward that will address this issue and thus improve supportive services impacts

Develop a Bonding and Financing Program for SBEs ndash This is completely outside of the prime contracting

communityrsquos scope of influence WSDOT must find a way to institute changes that both protect the taxpayer and help increase certified DBE bonding capacity and access to financing ndash very large hurtles To assume that these hurtles can effectively be overcome within the 2018 ndash 2020 time frame when they have been chromic issues for the past 20 plus years of DBE program development is not rational

A helpful innovation would be for WSDOT to underwrite performance and payment bonds for certified DBE firms or to create promote a system that helps certified DBE firms obtain private bonding Bridging the gap to address capital access and performance risks (bonding) must be championed by WSDOT

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 5 of 6

Base Figure Adjustment to Address Available Subcontract Volume and DBE Prime Contracts It is a fact that mid- to large-sized MBEWBE firms that compete both as Prime Contractors and as Subcontractors are not eligible to be OMWBE certified DBEs Further the current amount of contract unbundling for greater DBE access to WSDOT prime contracting (see below) accounts for a very low dollar volume of prime contracts performed by certified DBEs Finally by specification (WSDOT standard specification 1-081) Prime Contractors are obligated to perform 30 of the total volume of the work (less specialty work) or stated another way a maximum of 70 of the dollar volume on WSDOT projects is typically available to award to subcontractors These market dynamics are NOT addressed in the Disparity Study A responsible DBE goal made absent of these facts should not be implemented A reasonable adjustment to the proposed 19 DBE goal is presented below

bull The percent of WSDOT prime contracts awarded to certified DBE firms is likely less than 5 by total WSDOT

contract volume Assuming this approximation is valid (likely very conservative) then the amount of WSDOT contract work available to certified DBE firms via subcontracting should be adjusted to account for the factors outlined above The Base Figure (19) should be adjusted to recognize that a 70 maximum subcontractor participation is available (in the numerator) and to account for the assumed 5 certified DBE prime contracts in the denominator Reasonable Base Figure Adjustment 19 (proposed) x 70 subcontracts available divide 95 of Non-Certified DBEs as Prime Contract Volume = 190 x 0737 = 140 adjusted goal This is an adjustment based on the practical dynamics of the WSDOT contracting system and it represents a more realistic look at the true subcontract volume that is available for Prime Contractors to award to certified DBE firms

Conclusions

Until the items listed above are addressed and in place it is not reasonable to believe that DBE goals can be increased by nearly 163 (from 117 to 190) When the projected robust public works contracting market is appropriately considered the true availability of certified DBE Subcontractors for WSDOT contracts will be truncated due to demand across all public works sectors With multiple strong public works programs competing for a limited population of certified DBEs the ability to meet increased WSDOT DBE goals will be severely challenged Without very clear concise and transparent good faith effort rules the ability to address DBE goals that greatly overestimate true near term certified DBE capacity will result in non-attainment bid day chaos failures to perform andor rapidly increased pricing

The clear conclusion is that at this point in time under the current circumstances without effectively instituted new programs rules procedures that could enhance the certified DBE programrsquos overall effectiveness we believe that the DBE goal should remain at or near 12 As OMWBE documents and demonstrates its future successes in improving access and eliminating capacity barriers only then should the DBE goal be re-evaluated and increased

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 6 of 6

In closing please remember that it is rare that the contracting community is asked our opinion with respect to the WSDOTrsquos DBE policies and so this letter is somewhat a vehicle to highlight collective concerns It is our belief that the majority of the Prime Contractors in Washington state support the objective of creating a level playing field for ready willing and able DBEs

If the level playing field is not yet possible in the absence of the DBE program then the key is to set realistic goals that recognize reflect and address the hard realities and market dynamics imposed by WSDOTrsquos bedrock environment of awarding contracts to the lowest cost responsible and responsive Contractor

Respectfully submitted Washington Asphalt Pavement Association

David Gent Tom Gaetz Executive Director Senior Advisor

Attachment A ndash WSDOT Central Puget Sound Public Works Contracting Projection 2018 - 2022

Con

stru

ctio

n Pr

ojec

t Sta

rts

2018

-202

2S

ound

Tra

nsit

$22

6 B

SD

OT

$08

B

Tran

sit

amp O

ther

s$1

7 B

WS

DO

T$6

7 B

Por

t of

Sea

ttle

$15

B

TOTA

L$3

33

B

Source N

ov 1

9 2

017

pres

enta

tion

to W

APA

Ann

ual M

eetin

g

Attachment A

Work (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Dave Gent - WAPA [mailtodavegentasphaltwacom] Sent Thursday December 7 2017 144 PMTo Bayne Jackie ltBayneJwsdotwagovgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hi again Jackie Irsquom fine thanks and hope you are the same Interesting The Master DBE Directory is the basis for and integral to the conclusions of the DisparityStudy Is it not then part of the information needed to fully review and comment on the DisparityStudy Was it not provided by CHA to WSDOT for review We are trying to fully understand thestudy and if this directory was part of the study why would it need to be obtained by a publicrecords disclosure It should be in the public domain and not restricted from ease of access If you are sure that a public records request is needed Irsquoll start that process but we will need tonote that point of fact when we submit our public comments If you are able to reconsider please let me know Respectfully

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Thursday December 7 2017 126 PMTo Dave Gent - WAPA ltdavegentasphaltwacomgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hello Dave I hope you are doing well

That information would likely be obtained through a public disclosure request Best Regards Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Dave Gent - WAPA [mailtodavegentasphaltwacom] Sent Thursday December 7 2017 113 PMTo Bayne Jackie ltBayneJwsdotwagovgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Jackie Can you please provide an electronic file or provide a weblink for the Master DBE Directory thatColette Holt amp Associates developed for the WSDOT Disparity Study 2017 (first referred to on Page 8of the Disparity Study) I did not see a link to this Master DBE Directory within the study Thanks

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Friday October 27 2017 1118 AMTo Kenyon Wendy ltKenyonWwsdotwagovgt Adams E W ltewadamssystemsclcomgtAdekoyaAndrew ltandrewadekoyabccomgt AlyssaBalllegwagov Anindita Mitraltamitracrea-affiliatescomgt APRISeattlehotmailcom Armstrong CharlotteltCharlieAatgwagovgt Ato Apiafi Architects PLLC ltatoaatoapiaficomgt benzfanwaorgBerntsen Teresa (OMWBE) ltTeresaBomwbewagovgt Billingsley Andrealtbillinawsdotwagovgt Bramlet Erica ltEricaBramletlegwagovgt Brooks Julius

ltBrooksJwsdotwagovgt Brown Jason ltjbrownldccorpcomgt bwallacenwlaborersorgCamden Allison ltCamdenAwsdotwagovgt carlllivingstongmailcom Cerda OscarltCerdaOwsdotwagovgt Christopher Chris ltChristCwsdotwagovgt ckerneycaawagovdanplatinumbusinessgroupcom davegentasphaltwacom David BalltDavidsignsnowmillcreekcomgt Davis Khalia ltDavisKhwsdotwagovgt Davis RaShelle (GOVltrashelledavisgovwagovgt Dayton Jo ltDaytonJwsdotwagovgt ddhondtagcwacomDebbieDriverlegwagov Dennis ltdennisahlkiewitcomgt dmcleodnwlaborersorgdrart6651gmailcom Duncan Enid lthigradeincgmailcomgt EltonltEltonwashingtonstatetruckingcomgt eprincecaawagov flemosldccorpcomfmartineznwmtnmsdcorg geoffshookatkncom glovelady ltgloveladyexcelglovescomgtGrabow Katie ltkgrabowsystemsclcomgt Guilfucci Jackie ltJackieGuilfucciskanskacomgt HealyLinda ltHealyLwsdotwagovgt Higginbotham Breanne ltHigginBwsdotwagovgt HirscheyClaudia ltclaudiahirscheycomcastnetgt Holt Colette ltcoletteholtmwbelawcomgt Huff JohnltHuffJwsdotwagovgt Iniguezchawagov JacksonMaynardlegwagov Jimmy Matta(jmattaalcantarassoccom) ltjmattaalcantarassoccomgt kellywickergovwagov Key EarlltKeyEwsdotwagovgt Kirk Jon ltjkirkwhhnfscomgt Kris Purrier ltkpurrierhwageocomgtleewabuildingtradesorg lesliejonessoundtransitorg Liz Evans ltlevansagcwacomgt LopezErin lterinlopezdeswagovgt Martha Cerna ltMarthaPSLCCORGgt Martin-Arnold EdwinaltMartinEwsdotwagovgt Mary Lerdahl ltmarydbeelectricinccomgt McCarty Hannahlthannahmccartylegwagovgt Melissa L Boyles ltmelissaboylesmwbelawcomgt Metcalf KeithltMetcalKwsdotwagovgt michaelicapaawagov Michelle ltMichelleTTCC26netgt MillarRoger ltMillarRwsdotwagovgt Nakamura Jason ltjasonnakamura1-alliancecomgtNavarroLportseattleorg olliepmt-solutionscom pastorbanksesbctacomacom PatrickHughes ltphugheshughesgroupbizgt Petersen Jodi (FHWA) ltJodiPetersendotgovgtrabbottliunaorg rcarmsteadgmailcom ricemportseattleorg Riley D ltdrileylydigcomgtSeling ltSelingjpfranciscomgt sherryharrisergosynchcom Stell MellodyltStellMwsdotwagovgt terigobintulaliptribes-nsngov timwilliamfactorycom tinaterra-tdicom tkellyldccorpcom tomgaetzmsncom vcollinsacec-waorgverlenejazzmsncom Wang Albert ltWangAatgwagovgt Waugh GregltGregWMaxKuneyComgt Yates Henry ltYatesHWSDOTWAGOVgtCc Tom Gaetz lttomgaetzmsncomgt Dave Gent - WAPA ltdavegentasphaltwacomgt VanCollins ltvcollinsacec-waorggt Daniel Seydel II ltdanplatinumbusinessgroupcomgt MaynardJackson ltJacksonMaynardlegwagovgt Carl Livingston ltcarlllivingstongmailcomgt DonMcLeod ltdmcleodnwlaborersorggt JIMMY MATTA ltjimmymattamsncomgt Prince Ed(CAAA) lteprincecaawagovgt David DHondt ltddhondtagcwacomgt Irene Reyesltgloveladyexcelsupplycompanycomgt McDaniel Craig ltMcDaniCwsdotwagovgtsherryharrisergosynchcomSubject WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Good morning On Monday October 30th WSDOT will be releasing the proposed overall Federal HighwayAdministration Disadvantaged Business Enterprise goal attached for public comment throughDecember 15 2017 This overall DBE goal is based upon the recently completely DBE ProgramDisparity Study WSDOT is proposing a 19 percent overall DBE participation goal on Federal Highway

Administration-funded projects for federal fiscal years 2018 through 2020 DBE goals fortransportation projects that receive federal funds represent a percentage of the value of work inwhich minority- and women-owned businesses should participate Once finalized and submitted toFHWA early next year the goal will be effective through Sept 30 2020

The purpose of the DBE program is to create a level playing field for firms owned and operated bydisadvantaged individuals wanting to participate in federally assisted highway transit and aviationprograms The attached overall DBE goal is for FHWA funded projects WSDOT will be updating theFTA and FAA overall DBE goals in the near future

If you have any questions please contact Earl Key Director of the Office of Equal Opportunity at3607057091 or KeyEwsdotwagov Thank you Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

  • Proof-Of-Publicationpdf
    • Mediapdf
      • AGC
      • Daily Journal
      • Daily Medium
      • DBEGood
      • OMWBE
      • Seattle Medium
      • Tabor 100
      • The Chronicle
      • Tukwila
        • King County
          • Public-Comments-20180111pdf
            • 19 DBE Requirement(1)
            • AGC Comments on Proposed 10 Goad
            • Backstrom Curb amp Sidewalk
            • comments on WSDOT proposed DBE goal
            • Cowlitz County Public Works
            • DBE Contracting goals
            • DBE Goal
            • DBE Program Disparity Study
            • Disparity Study Comments from City of Spokane
            • FW_ WSDOT News - WSDOT seeks comments on propos
            • Proposed DBE Goals
            • RE_ DBE Contracting Goal Comments
            • Re_ DBE Goal Comments
            • Re_ Seydel Dan - WSDOT Disparity Study Present
            • Support for WSDOTs proposed DBE goal
            • Why we need mandatory goals
            • WSDOT DBE Goal - Comment in support
            • WSDOT Proposes DBE goal of 19
            • WSDOT propsed DBE Goals
            • WTS - Disparity Study Comment Letter

From Daniel Seydel IITo Bayne JackieCc Key Earl daneiwashingtonorg Nadeem Ismail Mussie Tewelde (mteweldehydro2geotechcom)

graceflyrightaolcom Mary Wenner Watkinson LarrySubject Re Seydel Dan - WSDOT Disparity Study Presentation Public TestimonyDate Friday December 8 2017 30323 PM

Jackie

It was my hope that the comments would be put into record I was also hoping that you wouldnot have to be the one having to formulate responses for each clarification If that is the caseI know you are swamped and will then I just ask my comments be only part of the recordHowever if there is dedicated staff that is going to be compiling and responding to theclarification then the below questions would be the priorities of most interest

These were questions unrelated to the disparity study and hopefully should be doable

1) Do you have any reports on your outcomes from the past 5 years on DBE support servicesand specific key performance measures from previous years funding (ie how many firmsutilized what was the objectives were objectives met did outcomes meet total satisfaction ifnot why next steps what was the firms capacity before and after services were performed (iesales employees bonding if applicable insurance equipment line of credit if applicablenumbertype of customers how are they doing now etc))

2) What other changes or improvements other than allowing DBES to select their own serviceproviders and a staff change will be a part of this new program

3) Was consideration to provide the new mentor protege consultant rather than separating theactivities into support services andor technical assistance

Disparity study clarifications

1) Will WSDOT consider sponsoring legislation to support the policy changes and goalincreases to insure manditory goals wont be necessary

a) If not what measures will you grant primes to operate outside the box (ie entertain bestvalue over low bid modify responsiveness by subs to require adherence to meeting voluntarygoals developing standards around federally funded gccm and other low bid procurementsthat give powers to primes to meet objectives including but not limited to mentor protegerelationships joint ventures bond waiving techniques cash flow assistance material andequipment acquisition manufacturer development specifications that have only DBES orinclude equal number of DBES as non DBES as approved installers etc)

2) Will the disparity study consultant be available for implementation or information gatheringfrom other regions

5) Will WSDOT be hiring more diverse staff amp professionaltechnical service providers inother departments outside OEO to insure policies commitments and evaluations areperformed in manner that improves diversity that reflects the communities WSDOT serves bythoughtful and legal efforts increase participation thus creating successful outcomes includingpartnerships and collaborations

Thank you and Merry Christmas

Hi Dan

Thank you for providing such thoughtful public comments questions and testimony

Regarding your public testimony below - I do not believe I am not able to answer questions ifthey are public comments Please let me know what part of this email you would likeclarification on and what part you would like considered public testimony

I appreciate your thoughtful consideration of WSDOTrsquos implementation of our civil rightsprograms

Best Regards

Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

DIDaniel Seydel IIFyi Daniel J Seydel II Platinum Group LLC 2064060844 f) 2062999934wwwplatinumbusinessgroupcom Small Business is the Answer FREE TRAINING FORENTREPRENEURS amp JOB SEEKERS - Polish your skills or make your firm standout thanksto the EntrepreneurialThu 233pDI

Daniel Seydel IIThu 1272017 1123 AMInbox Sent ItemsShow all 7 recipientsTobaynejwsdotwagov ltBayneJwsdotwagovgtJackie

Per your request below are my questions and comments some of which were verbally sharedyesterday

Congratulations on receiving the blessing of additional technical assistance dollars andcompleting the DBE Disparity Study per your report

1) Do you have any reports on your outcomes from the past 5 years on DBE support servicesand specific key performance measures from previous years funding (ie how many firmsutilized what was the objectives were objectives met did outcomes meet total satisfaction ifnot why next steps what was the firms capacity before and after services were performed (ie

sales employees bonding if applicable insurance equipment line of credit if applicablenumbertype of customers how are they doing now etc))

2) What other changes or improvements other than allowing DBES to select their own serviceproviders and a staff change will be a part of this new program

3) Was consideration to provide the new mentor protege consultant rather than separating theactivities into support services andor technical assistance

Disparity study clarifications andor comments

1) Will WSDOT consider sponsoring legislation to support the policy changes and goalincreases to insure manditory goals wont be necessary

a) If not what measures will you grant primes to operate outside the box (ie entertain bestvalue over low bid modify responsiveness by subs to require adherence to meeting voluntarygoals developing standards around federally funded gccm and other low bid procurementsthat give powers to primes to meet objectives including but not limited to mentor protegerelationships joint ventures bond waiving techniques cash flow assistance material andequipment acquisition manufacturer development specifications that have only DBES orinclude equal number of DBES as non DBES as approved installers etc)

2) Will the disparity study consultant be available for implementation or information gatheringfrom other regions

3) What lessons did WSDOT learn that it did not know from the other study(s)

4) What would WSDOT do different (ie scope time line process approach etc)

5) Will WSDOT be hiring more diverse staff amp professionaltechnical service providers inother departments outside OEO to insure policies commitments and evaluations areperformed in manner that improves diversity that reflects the communities WSDOT serves bythoughtful and legal efforts increase participation thus creating successful outcomes includingpartnerships and collaborations

Daniel J Seydel IIPlatinum Group LLC 2064060844f) 2062999934wwwplatinumbusinessgroupcom

Small Business is the Answer

FREE TRAINING FOR ENTREPRENEURS amp JOB SEEKERS - Polish your skills or makeyour firm standout thanks to the Entrepreneurial Institute of Washington

httpswwwyoutubecomchannelUCKL5YeVxL29HnNxqnb6hmXA

LIKE US on FaceBook if an Active Professional Development workshop provided by EIW

Construction University helps your firm or has benefited you

httpswwwfacebookcomEIWashingtonref=hl

From Bayne Jackie ltBayneJwsdotwagovgtSent Friday December 8 2017 10139 PMTo Daniel Seydel IICc Key Earl daneiwashingtonorg Nadeem Ismail Mussie Tewelde(mteweldehydro2geotechcom) graceflyrightaolcom Mary Wenner Watkinson LarrySubject RE Seydel Dan - WSDOT Disparity Study Presentation Public Testimony Hi Dan Thank you for providing such thoughtful public comments questions and testimony Regarding your public testimony below - I do not believe I am not able to answer questions if theyare public comments Please let me know what part of this email you would like clarification on andwhat part you would like considered public testimony I appreciate your thoughtful consideration of WSDOTrsquos implementation of our civil rights programs Best Regards Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov From Daniel Seydel II [mailtodanplatinumbusinessgroupcom] Sent Thursday December 7 2017 1123 AMTo Bayne Jackie ltBayneJwsdotwagovgtCc Key Earl ltKeyEwsdotwagovgt daneiwashingtonorg Nadeem Ismailltnipaintingearthlinknetgt Mussie Tewelde (mteweldehydro2geotechcom)ltmteweldehydro2geotechcomgt graceflyrightaolcom Mary Wennerltmwenn0108yahoocomgtSubject Seydel Dan - WSDOT Disparity Study Presentation Public Testimony Jackie

Per your request below are my questions and comments some of which were verbally sharedyesterday

Congratulations on receiving the blessing of additional technical assistance dollars andcompleting the DBE Disparity Study per your report

1) Do you have any reports on your outcomes from the past 5 years on DBE support servicesand specific key performance measures from previous years funding (ie how many firmsutilized what was the objectives were objectives met did outcomes meet total satisfaction ifnot why next steps what was the firms capacity before and after services were performed (iesales employees bonding if applicable insurance equipment line of credit if applicablenumbertype of customers how are they doing now etc))

2) What other changes or improvements other than allowing DBES to select their own serviceproviders and a staff change will be a part of this new program

3) Was consideration to provide the new mentor protege consultant rather than separating theactivities into support services andor technical assistance

Disparity study clarifications andor comments

1) Will WSDOT consider sponsoring legislation to support the policy changes and goalincreases to insure manditory goals wont be necessary

a) If not what measures will you grant primes to operate outside the box (ie entertain bestvalue over low bid modify responsiveness by subs to require adherence to meeting voluntarygoals developing standards around federally funded gccm and other low bid procurementsthat give powers to primes to meet objectives including but not limited to mentor protegerelationships joint ventures bond waiving techniques cash flow assistance material andequipment acquisition manufacturer development specifications that have only DBES orinclude equal number of DBES as non DBES as approved installers etc)

2) Will the disparity study consultant be available for implementation or information gatheringfrom other regions

3) What lessons did WSDOT learn that it did not know from the other study(s)

4) What would WSDOT do different (ie scope time line process approach etc)

5) Will WSDOT be hiring more diverse staff amp professionaltechnical service providers inother departments outside OEO to insure policies commitments and evaluations areperformed in manner that improves diversity that reflects the communities WSDOT serves bythoughtful and legal efforts increase participation thus creating successful outcomes includingpartnerships and collaborations

Thank you for your hard work

Daniel J Seydel IIPlatinum Group LLC2064060844f) 2062999934wwwplatinumbusinessgroupcom

Small Business is the Answer

FREE TRAINING FOR ENTREPRENEURS amp JOB SEEKERS - Polish your skills or makeyour firm standout thanks to the Entrepreneurial Institute of Washington

httpswwwyoutubecomchannelUCKL5YeVxL29HnNxqnb6hmXA

LIKE US on FaceBook if an Active Professional Development workshop provided by EIWConstruction University helps your firm or has benefited you

httpswwwfacebookcomEIWashingtonref=hl

From Erin EhlingerTo Bayne JackieSubject Support for WSDOTs proposed DBE goalDate Wednesday December 13 2017 115417 AM

I am writing to support the WSDOT recommended DBE Goal for FHWA contracts of 190 I also want to express my appreciation for the thoroughness of the WSDOT Disparity study and howthe study disclosed the disparity in WSDOT contracts that do not have a DBE or WBE goal ndash furtherreinforcing that all women-owned firms and minority owned firms face equity issues I remain concerned with the methodology required by the Code of Federal Regulations and case lawbecause of the dependence on the availability of firms in the calculation An unintendedconsequence of removing either gender or race from the goal is that many of these firms would goout of business the availability decreases and the formula then results in a smaller DBE goal Pleaselet me know how I can help influence a change to the CFR Thank you Erin Ehlinger

Erin Ehlinger PEPresident

24036 SE 47th StSammamish WA 98029erinehlingersmartcitytrafficcom425-221-0320

From Jackie EtterTo WSDOT Disparity StudySubject Why we need mandatory goalsDate Friday December 1 2017 61859 PM

As a DBE participating in bidding process I have found that regardless of the language which claims to insurethat disadvantaged business enterprises shall not be discriminated against the only way to ensure that this does nothappen is by mandating affirmative action goals Having been overlooked time and time again because of my gender when I have submitted bids that are verycompetitive with other bidders is very frustrating I have had many instances of companies using my price to getmy non DBE competitors to lower theirs The voluntary or laudatory DBE goals do nothing to ensure a level playing fieldThe only way to ensure non-discrimination is through mandatory goals

Jackie EtterWest Star Construction of Spokane

Sent from my iPhone

From Claudia HirscheyTo Key Earl Bayne JackieSubject WSDOT DBE Goal - Comment in supportDate Tuesday December 12 2017 61937 PM

Dear Earl and Jackie The WSDOT recommended DBE Goal for FHWA contracts of 190 is a small and important increasethat can further achieve equity in WSDOTFHWA contracting I am in support of the 19 DBE Goal I also want to express my appreciation for the thoroughness of the WSDOT Disparity study and howthe study disclosed the disparity in WSDOT contracts that do not have a DBE or WBE goal ndash furtherreinforcing that all women-owned firms and minority owned firms face equity issues I remain concerned with the methodology required by the Code of Federal Regulations and case lawbecause of the dependence on the availability of firms in the calculation An unintendedconsequence of removing either gender or race from the goal is that many of these firms would goout of business the availability decreases and the formula then results in a smaller DBE goal Sincerely Claudia S Hirschey PETransportation Consulting Servicesclaudiahirscheycomcastnethttphirscheytcscom2068564988 Mobile

From Nate ThomasTo WSDOT Disparity StudySubject WSDOT Proposes DBE goal of 19Date Thursday December 7 2017 42720 PM

The WSDOT should look into similar ways the Federal Gov has handled the equal opportunity forthose that fall under the DBE status and set aside specific projects for the DBErsquos and moreimportantly UDBErsquos so these companies have better chance of landing contracts Maybe a lot 10 ofthe DBE goal to set aside for only DBEs and other 9 goal met as it is done currently with COA onlarger contracts Nate ThomasSenior EstimatorD 5095688085 | C 5099941156331 North Fancher Road | Spokane WA | 99212

The information contained in this email including any attachments is confidential and may beprivileged It is intended only for the person or entity to which it is addressed and no waiver isintended by sending this email If the reader is not the intended recipient you are herebynotified that any review retransmission dissemination or other use of or taking any action inreliance upon this information is strictly prohibited If you have received this email in errorkindly notify the sender by reply email and delete the original message from any computerThank You

From Brian FujiiTo WSDOT Disparity StudySubject WSDOT propsed DBE GoalsDate Thursday December 7 2017 110638 AM

Good morning Jackie

I wanted to comment on WSDOTs proposed DBE goal to 19 I believe WSDOTs plan toincrease the overall DBE goal to 19 will provide greater opportunities for DBE contractorsin different disciplines to participate in federally funded contracts

Without the new DBE requirement and with Proposition 200 there are limited opportunitiesfor DBE contractors in disciplines different than the typical trucking flagging and rebar Inaddition there are no incentives for general contractors to go out beyond the usual truckingflagging and rebar DBE subcontractors

Increasing the DBE goals will provide opportunities for different DBE contractors in differentdisciplines to participate in WSDOT federally funded projects

Thank you for your time

RespectfullyBrian FujiiPresident Subsurface ConstructionP 2063836478F 2069604639MDBE 4M0024998

From Forman StephanieTo Bayne JackieCc Millar Roger christinenhanmailhousegov Claudia Hirschey Sarah Corbin Jiang Yingle

efaulknerenviroissuescom Diana Giraldo Kelly CheesemanSubject WTS - Disparity Study Comment LetterDate Friday December 15 2017 71020 PMAttachments 2017_Dec 15_WTSCommentLetter_WSDOT DBE Goalpdf

Dear Ms Bayne Please find our attached letter which summarizes the WTS Puget Sound Chapterrsquos support foradvancement of women in transportation and our comment letter regarding the recent DisparityStudy Please feel free to contact me if you have any questions or would like to discuss Sincerely Stephanie S Forman PEWTS Puget Sound President Transportation Project Manager

929 108th Avenue NE Suite 1300Bellevue WA 98004D 4254681548 M 2062291745stephanieformanhdrinccom

December 15 2017

Jackie Bayne Policy and Reporting Manager

Office of Equal Opportunity

Washington State Department of Transportation

PO Box 47314

Olympia WA 98504-7314

Dear Ms Bayne

On behalf of the Puget Sound Chapter of Womenrsquos Transportation Seminar (WTS) we would

like to thank the Washington State Department of Transportation for presenting to our

organization the DBE Disparity Study results We very much appreciated the presentation by Earl

Key Director of WSDOTrsquos Office of Equal Opportunity Teresa Berntsen (Director Office of Minority

and Womens Business Enterprises) as well as Leslie Jones (Director Sound Transit Office of Small

Business Development and Labor Compliance)

Following a review of the WSDOT Disparity Study and as a result of consultation with WTS

International we would like to provide WSDOT with our comments for your consideration

As you know WTS is an organization focused exclusively on attracting retaining and advancing

women in transportation By the year 2018 there will be thousands of vacancies in the

transportation industry for qualified professionals and while women account for more than half of

the worldrsquos workforce they are a very small minority in transportation disciplines

We are pleased that the outcome of the 2017 Disparity Study that recognizes the on-going barriers

for DBEs including women-owned businesses in transportation The WSDOT recommended DBE

Goal of 190 is a small and important increase that can further achieve equity in WSDOTFHWA

contracting We are also pleased that the 2017 Disparity Study has documented the disparity in

WSDOT contracts that do not have a DBE or WBE goal ndash further reinforcing that all women-owned

firms and minority owned firms face equity issues We are encouraged that the WSDOT has asked

FHWA to rescind the 2016 waiver

While WTSrsquo mission is specific to the advancement of women we are a race-neutral organization To

this end we are also deeply concerned about the underutilization of minority owned firms There is

no equity or ldquofair playing fieldrdquo without equity for all gender and races We remained concerned with

the methodology required by the Code of Federal Regulations and case law because of the

dependence on the availability of firms in the calculation An unintended consequence of removing

either gender or race from the goal is that many of these firms would go out of business the

availability decreases and the formula then results in a smaller DBE goal This consequence is

contrary to our mission

We look forward to our continued participation in WSDOTrsquos DBE advisory group we are anticipating

notice that the 2016 waiver has been rescinded and how we can work together to continue

advancing minority and women-owned firms in the transportation field

Sincerely

WTS Puget Sound Chapter

Stephanie Forman

President

C Roger Millar Secretary WSDOT

C Representative Adam Smith 9th Congressional District Washington co Christine Nhan

WTS Puget Sound Chapter

PO Box 3461

Bellevue Washington 98009

From Dave Gent - WAPATo Bayne JackieCc Tom GaetzSubject WAPA Public Comments - RE WSDOT FHWA Disadvantaged Business Enterprise Proposed GoalDate Friday December 15 2017 14119 PMAttachments 12152017 DBE Proposed Goal - WAPA Public Comments Letterpdf

Good afternoon Jackie Please find attached WAPArsquos ldquofor the public recordrdquo comments with respect to WSDOTrsquos proposedDBE Goals FHWA funded work I assume that the Master DBE Directory was not sent to you this week so as a result we were notable to review the directory before the close of the public comment period That fact is noted withinour comment letter Thank you for your efforts Have a good weekend

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Friday December 8 2017 1219 PMTo Dave Gent - WAPA ltdavegentasphaltwacomgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hello Dave WSDOT did not take possession of this directory as part of our review process We will provide youwith the records without submitting a formal request However we need to get them from theconsultant first I will hopefully have them to provide next week I will keep you updated on therequest Have a nice weekend Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal Opportunity

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

December 15 2017

Jackie Bayne Policy Manager WSDOT Office of Equal Opportunity Delivered via e-mail to BayneJwsdotwagov RE Public Comment (as requested) to Proposed Overall DBE Goal for the FHWA (2018 ndash 2020) Ms Bayne Thank you for your presentation via webinar on December 5 2017 outlining WSDOTrsquos evaluation process used to determine the proposed overall DBE goal for the FHWA Thank you also for the Colette Holt amp Associates (CHA) DBE Advisory Group presentation made on September 14 2017 Both presentations helped to distill the findings of the 2017 Disparity Study produced by CHA In response to Earl Keyrsquos initial informal request to comment on the proposed overall DBE goal made during the DBE Advisory Committee teleconference held on October 12th we provided a list of reasons that we believe justify a lower DBE goal than is now being proposed Our initial response to Mr Keyrsquos request did not serve to influence WSDOT and the current proposed goal remains at 190 The arguments provided on October 12th against the significant increase in the proposed DBE goal (versus the previous goal and recent historic DBE participation) are repeated and supplemented below and will serve as the Asphalt Pavement Associationrsquos (WAPArsquos) official public comments

In concert with WSDOT and the OWMBE WAPA and the construction firms that WAPA represents have demonstrated a commitment to the principals of equal opportunity for all ldquoready willing and ablerdquo firms for the entire history that our DBE program has been in place WAPA has continuously demonstrated its commitment to the goals of the DBE program and for increasing the representation of disadvantaged groups within our industry as both workers and owners of firms Please recognize that WAPArsquos oversight and critique of the DBE program has always attempted to balance the principals of fair and open competition with the practical aspects of the low bid compressed schedule high performance standards demanded within the WSDOT marketplace Our comments below are meant to enhance WSDOTrsquos and OWMBErsquos understanding of the market and to hopefully have WSDOT fully consider all of the dynamics that are at play when proposing its Triennial DBE goal for FHWA projects Current DBE Capacity vs Historically Robust Market In advocating for a realistic and defensible DBE goal it has always been WAPArsquos position that it is paramount that the realities of the marketplace and true certified DBE subcontracting capacity should be a primary standard While a ldquostretchrdquo goal may appear to be progressive on its face it comes with consequences for all of the parties involved in the WSDOT federal aid contracting arena To balance the dynamics of the WSDOT contracting system the DBE goal should be tempered with the realities of the market and with a true measure of the underlying effectiveness of the DBE support services available to contractors

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 2 of 6 The first point of fact that has not been given any apparent consideration by WSDOT in its evaluation of the current capacity of certified DBErsquos is that there is an historically robust workload scheduled to be performed in the 2017 through 2022 time-frame particularly in the Puget Sound ldquoEverett to Olympiardquo corridor By WSDOTrsquos own estimates (see Attachment A) public works construction project starts in the 2018 to 2022 time-frame in this region will exceed $333 billion (B) counting the work projected from just five public entities WSDOT will be taking a decidedly ldquoback seatrdquo role during this period to Sound Transit which will have construction project starts of $226B vs WSDOTrsquos projected volume of $67B WSDOTrsquos summary publication titled Washington State Department of Transportations Proposed Federal Highway Administration Triennium Disadvantaged Business Enterprise Goal Federal Fiscal Years 2018-2020 states correctly that ldquoIncluded among the types of evidence that must be considered are the current capacity of DBEs to perform work on WSDOTrsquos federally-assisted contracts as measured by the volume of work DBEs have performed in recent yearshelliprdquo (Step Two Adjustment discussion) With the Sound Transit program being over 300 larger than the total WSDOT program in this region a sober assessment of true certified DBE capacity in the next three years needs to be considered by WSDOT If the huge construction boom over the next five years does not prompt a Step Two Adjustment then it becomes obvious that the realities of the market are being ignored by WSDOT for DBE goal setting Put another way if the 2018 through 2022 level of contracting activity does not warrant a goal adjustment what will DBE Access Barriers Not Yet Addressed The CHA 2017 Disparity Study points out multiple recommendations in Section VII that impact DBE participation and access to the market Assessments relating to those impacts and the state of maturity in addressing the CHA recommendations should be considered when assessing the DBE goal Many of the CHA recommendation have not been adequately addressed at this point in time Some of the prime examples are listed below Increase Certification and Expertise ndash The Disparity Study as explained to us includes all minority- (MBE)

and women-owned (WBE) firms that could be readily identified that perform work within Washington State and that perform work within the NAICS code framework CHA developed to cover WSDOT project work During the various presentations relating to the Disparity Study WSDOT representatives said that outreach to currently non-certified MBE amp WBE firms has increased and that WSDOT aspires to bolster its list of certified firms in the future but this effort is just beginning and the success of the effort needs to be means tested against the broader population of MBE amp WBE firms included in the CHA base line evaluation As the Disparity Study uses a much broader population of MBE WBE contractors to arrive at its conclusions (both non-certified firms and firms too large for certification) it follows that the calculated DBE proposed goal is overstated to include capacity that does not currently exist within WSDOTrsquos certified DBE framework Unless OMWBE is experiencing sudden and unprecedented success in recruiting new MBEWBE firms the DBE goal should be adjusted downward to recognize that the ldquoready willing and ablerdquo contractors that WSDOT has certified is only a subset of the total MBEWBE contracting population used in the Disparity Study evaluation

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 3 of 6

Until the promised WSDOT outreach registration efforts result in a substantial increase in available certified DBE firms it is premature to count the entire population of minority- and women-owned contractors as available to participate in WSDOT contracting It is unreasonable for WSDOT to project availability capacity using the entire MBEWBE population when only its currently truncated list of certified firms is acceptable to count toward the DBE goal

A corollary to the Increase Certification and Expertise discussion above is that the calculation of the Base Figure evidently includes the broadest practical population of MBE and WBE firms identifiable (without a review of the CHA Master DBE Directory which has not been supplied prior to the close of the public comment period the scope of the directory cannot be ascertained) If this directory includes a large population of MBEWBE firms that are not certified or are too large to be certified then the Base Figure calculation should be adjusted to reflect that certified DBE firms are a fraction of the total MBEWBE firms used to arrive at the 19 suggested DBE goal With respect to the CHA Master Directory it is our understanding the WSDOT was not given the directory as part of its evaluation of the Disparity Study and it follows that it did not evaluate the proposed DBE goal in the context of the CHA Master DBE Directory In our opinion an informed decision on adjusting the CHA baseline goal calculation can only be done after an extensive evaluation of the CHA Master DBE Directory If this has not been done WSDOT has not exercised due diligence in evaluating the context and underpinnings of the CHA Disparity Study and a certified DBE Triennium goal proposal to the FHWA is premature Increase Contract ldquoUnbundlingrdquo ndash If this proposed strategy (suggested by the CHA Study) is undertaken

certified DBE Subcontractors currently available will be engaged as Prime Contractors and the value of their prime contracts will bolster the overall percentage of certified DBE contracting but a systematic effort and strategy to ldquounbundlerdquo has not been articulated by WSDOT The key question of how this effort can be accomplished without increased cost to the taxpayers and increased inconvenience for the traveling public As noted in the CHA study (page 129 final paragraph) ldquoUnbundling must be conducted however within the constraints of the need to ensure efficiency and limit cost to the taxpayersrdquo As of this writing no overarching strategy for further unbundling with proper accountability has been articulated by WSDOT to the DBE Advisory Group

Review Insurance and Experience Requirements ndash Impediments to certified DBE participation due to

necessary insurance and experience standards cannot be solved by the prime contracting community Unless and until WSDOT puts together programs to address the burden of the substantial risks shouldered by Prime Contractors on WSDOT contracts barriers for streamlined utilization of certified DBE firms will continue to exist These market driven barriers will continue to dampen the availability of certified DBE Subcontractors that are able to perform within WSDOTrsquos strict criteria without unduly transferring risk to the Prime Contractor

Better Partnering to Overcome DBE Failures to Perform ndash Prime Contractors are held fully responsible to maintain the project schedule and are subject to project liquidated damages even when they may be struggling to deal with Subcontractor performance issues It is well-established that replacing a certified ldquocondition of awardrdquo (COA) DBE Subcontractor is very onerous and likely very costly to the Prime Contractor Unfortunately the imposition of strict and often counter-productive commercially useful function (CUF) rules often compound this issue as Prime Contractors cannot help COA DBE Subcontractors work through capacity expertise or time-related issues that impact timely performance

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 4 of 6

WSDOT needs to be a much better partner in the process of dealing with under-performing or non-performing certified DBE Subcontractors The current standard operational procedure places all of the exposure for non-performance onto the Prime WSDOT does not have an equitable system to account for non-performing or under-performing certified DBE Subcontractors hired as a condition of award (COA)

Performance Information and Training ndash Commercially useful function rules (CUF) and the lack of clear benchmark definitions for good faith effort (GFE) standards remain barriers for improving accountability within the DBE system and in turn lead to distorted DBE participation rates These items remain amorphous due to lack of training or lack of historic information Chronic uncertainty exists regarding both of these items Until WSDOT changes and improves its approach to provide transparency and certainty for both the prime bidding amp subcontracting parties true certified DBE capacity will continue to be masked and the resultant higher subcontracting costs associated with a distorted marketplace will continue to be hidden

WAPA respectfully suggests that simply adding an ldquoEstimated DBE Subcontract Premiumrdquo line to the current DBE bid forms would help to establish benchmarks that could begin to be used to ldquomeans testrdquo good faith efforts If this information had been gathered over the last 20 years of the DBE program meaningful GFE standards could have been developed and could be in place today

An in-depth review of CUF standards would also provide clarity For instance it is unclear why force account items performed by certified DBEs are currently counted at only 50 of the value of the work How was this benchmark established Has it been reviewed since imposed Did it ldquosolverdquo whatever inequity WSDOT was trying to address Better clarity may lead to more expanded opportunities for certified DBE Subcontractors

Enhanced Supportive Services and Business Development Programs ndash Unless and until stronger programs of these types are shown to be effective in boosting certified DBE business development increased DBE participation due to stronger business acumen should not be relied upon when setting the new DBE goal

Does OMWBE have a reasonable expectation that future plans for enhanced and expanded programs will be more successful than those employed in the past Assuming that certified DBE Subcontractors will be better prepared to deal with the WSDOT contracting environment than in the past should not be relied upon to boost DBE participation goals Especially troubling were the multiple references within the CHA report highlighting that DBEs believe that the staff at OMWBE lack a deep knowledge about the highway construction industry (eg Study page 129 2nd paragraph) Does OMWBE have a path forward that will address this issue and thus improve supportive services impacts

Develop a Bonding and Financing Program for SBEs ndash This is completely outside of the prime contracting

communityrsquos scope of influence WSDOT must find a way to institute changes that both protect the taxpayer and help increase certified DBE bonding capacity and access to financing ndash very large hurtles To assume that these hurtles can effectively be overcome within the 2018 ndash 2020 time frame when they have been chromic issues for the past 20 plus years of DBE program development is not rational

A helpful innovation would be for WSDOT to underwrite performance and payment bonds for certified DBE firms or to create promote a system that helps certified DBE firms obtain private bonding Bridging the gap to address capital access and performance risks (bonding) must be championed by WSDOT

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 5 of 6

Base Figure Adjustment to Address Available Subcontract Volume and DBE Prime Contracts It is a fact that mid- to large-sized MBEWBE firms that compete both as Prime Contractors and as Subcontractors are not eligible to be OMWBE certified DBEs Further the current amount of contract unbundling for greater DBE access to WSDOT prime contracting (see below) accounts for a very low dollar volume of prime contracts performed by certified DBEs Finally by specification (WSDOT standard specification 1-081) Prime Contractors are obligated to perform 30 of the total volume of the work (less specialty work) or stated another way a maximum of 70 of the dollar volume on WSDOT projects is typically available to award to subcontractors These market dynamics are NOT addressed in the Disparity Study A responsible DBE goal made absent of these facts should not be implemented A reasonable adjustment to the proposed 19 DBE goal is presented below

bull The percent of WSDOT prime contracts awarded to certified DBE firms is likely less than 5 by total WSDOT

contract volume Assuming this approximation is valid (likely very conservative) then the amount of WSDOT contract work available to certified DBE firms via subcontracting should be adjusted to account for the factors outlined above The Base Figure (19) should be adjusted to recognize that a 70 maximum subcontractor participation is available (in the numerator) and to account for the assumed 5 certified DBE prime contracts in the denominator Reasonable Base Figure Adjustment 19 (proposed) x 70 subcontracts available divide 95 of Non-Certified DBEs as Prime Contract Volume = 190 x 0737 = 140 adjusted goal This is an adjustment based on the practical dynamics of the WSDOT contracting system and it represents a more realistic look at the true subcontract volume that is available for Prime Contractors to award to certified DBE firms

Conclusions

Until the items listed above are addressed and in place it is not reasonable to believe that DBE goals can be increased by nearly 163 (from 117 to 190) When the projected robust public works contracting market is appropriately considered the true availability of certified DBE Subcontractors for WSDOT contracts will be truncated due to demand across all public works sectors With multiple strong public works programs competing for a limited population of certified DBEs the ability to meet increased WSDOT DBE goals will be severely challenged Without very clear concise and transparent good faith effort rules the ability to address DBE goals that greatly overestimate true near term certified DBE capacity will result in non-attainment bid day chaos failures to perform andor rapidly increased pricing

The clear conclusion is that at this point in time under the current circumstances without effectively instituted new programs rules procedures that could enhance the certified DBE programrsquos overall effectiveness we believe that the DBE goal should remain at or near 12 As OMWBE documents and demonstrates its future successes in improving access and eliminating capacity barriers only then should the DBE goal be re-evaluated and increased

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 6 of 6

In closing please remember that it is rare that the contracting community is asked our opinion with respect to the WSDOTrsquos DBE policies and so this letter is somewhat a vehicle to highlight collective concerns It is our belief that the majority of the Prime Contractors in Washington state support the objective of creating a level playing field for ready willing and able DBEs

If the level playing field is not yet possible in the absence of the DBE program then the key is to set realistic goals that recognize reflect and address the hard realities and market dynamics imposed by WSDOTrsquos bedrock environment of awarding contracts to the lowest cost responsible and responsive Contractor

Respectfully submitted Washington Asphalt Pavement Association

David Gent Tom Gaetz Executive Director Senior Advisor

Attachment A ndash WSDOT Central Puget Sound Public Works Contracting Projection 2018 - 2022

Con

stru

ctio

n Pr

ojec

t Sta

rts

2018

-202

2S

ound

Tra

nsit

$22

6 B

SD

OT

$08

B

Tran

sit

amp O

ther

s$1

7 B

WS

DO

T$6

7 B

Por

t of

Sea

ttle

$15

B

TOTA

L$3

33

B

Source N

ov 1

9 2

017

pres

enta

tion

to W

APA

Ann

ual M

eetin

g

Attachment A

Work (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Dave Gent - WAPA [mailtodavegentasphaltwacom] Sent Thursday December 7 2017 144 PMTo Bayne Jackie ltBayneJwsdotwagovgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hi again Jackie Irsquom fine thanks and hope you are the same Interesting The Master DBE Directory is the basis for and integral to the conclusions of the DisparityStudy Is it not then part of the information needed to fully review and comment on the DisparityStudy Was it not provided by CHA to WSDOT for review We are trying to fully understand thestudy and if this directory was part of the study why would it need to be obtained by a publicrecords disclosure It should be in the public domain and not restricted from ease of access If you are sure that a public records request is needed Irsquoll start that process but we will need tonote that point of fact when we submit our public comments If you are able to reconsider please let me know Respectfully

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Thursday December 7 2017 126 PMTo Dave Gent - WAPA ltdavegentasphaltwacomgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hello Dave I hope you are doing well

That information would likely be obtained through a public disclosure request Best Regards Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Dave Gent - WAPA [mailtodavegentasphaltwacom] Sent Thursday December 7 2017 113 PMTo Bayne Jackie ltBayneJwsdotwagovgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Jackie Can you please provide an electronic file or provide a weblink for the Master DBE Directory thatColette Holt amp Associates developed for the WSDOT Disparity Study 2017 (first referred to on Page 8of the Disparity Study) I did not see a link to this Master DBE Directory within the study Thanks

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Friday October 27 2017 1118 AMTo Kenyon Wendy ltKenyonWwsdotwagovgt Adams E W ltewadamssystemsclcomgtAdekoyaAndrew ltandrewadekoyabccomgt AlyssaBalllegwagov Anindita Mitraltamitracrea-affiliatescomgt APRISeattlehotmailcom Armstrong CharlotteltCharlieAatgwagovgt Ato Apiafi Architects PLLC ltatoaatoapiaficomgt benzfanwaorgBerntsen Teresa (OMWBE) ltTeresaBomwbewagovgt Billingsley Andrealtbillinawsdotwagovgt Bramlet Erica ltEricaBramletlegwagovgt Brooks Julius

ltBrooksJwsdotwagovgt Brown Jason ltjbrownldccorpcomgt bwallacenwlaborersorgCamden Allison ltCamdenAwsdotwagovgt carlllivingstongmailcom Cerda OscarltCerdaOwsdotwagovgt Christopher Chris ltChristCwsdotwagovgt ckerneycaawagovdanplatinumbusinessgroupcom davegentasphaltwacom David BalltDavidsignsnowmillcreekcomgt Davis Khalia ltDavisKhwsdotwagovgt Davis RaShelle (GOVltrashelledavisgovwagovgt Dayton Jo ltDaytonJwsdotwagovgt ddhondtagcwacomDebbieDriverlegwagov Dennis ltdennisahlkiewitcomgt dmcleodnwlaborersorgdrart6651gmailcom Duncan Enid lthigradeincgmailcomgt EltonltEltonwashingtonstatetruckingcomgt eprincecaawagov flemosldccorpcomfmartineznwmtnmsdcorg geoffshookatkncom glovelady ltgloveladyexcelglovescomgtGrabow Katie ltkgrabowsystemsclcomgt Guilfucci Jackie ltJackieGuilfucciskanskacomgt HealyLinda ltHealyLwsdotwagovgt Higginbotham Breanne ltHigginBwsdotwagovgt HirscheyClaudia ltclaudiahirscheycomcastnetgt Holt Colette ltcoletteholtmwbelawcomgt Huff JohnltHuffJwsdotwagovgt Iniguezchawagov JacksonMaynardlegwagov Jimmy Matta(jmattaalcantarassoccom) ltjmattaalcantarassoccomgt kellywickergovwagov Key EarlltKeyEwsdotwagovgt Kirk Jon ltjkirkwhhnfscomgt Kris Purrier ltkpurrierhwageocomgtleewabuildingtradesorg lesliejonessoundtransitorg Liz Evans ltlevansagcwacomgt LopezErin lterinlopezdeswagovgt Martha Cerna ltMarthaPSLCCORGgt Martin-Arnold EdwinaltMartinEwsdotwagovgt Mary Lerdahl ltmarydbeelectricinccomgt McCarty Hannahlthannahmccartylegwagovgt Melissa L Boyles ltmelissaboylesmwbelawcomgt Metcalf KeithltMetcalKwsdotwagovgt michaelicapaawagov Michelle ltMichelleTTCC26netgt MillarRoger ltMillarRwsdotwagovgt Nakamura Jason ltjasonnakamura1-alliancecomgtNavarroLportseattleorg olliepmt-solutionscom pastorbanksesbctacomacom PatrickHughes ltphugheshughesgroupbizgt Petersen Jodi (FHWA) ltJodiPetersendotgovgtrabbottliunaorg rcarmsteadgmailcom ricemportseattleorg Riley D ltdrileylydigcomgtSeling ltSelingjpfranciscomgt sherryharrisergosynchcom Stell MellodyltStellMwsdotwagovgt terigobintulaliptribes-nsngov timwilliamfactorycom tinaterra-tdicom tkellyldccorpcom tomgaetzmsncom vcollinsacec-waorgverlenejazzmsncom Wang Albert ltWangAatgwagovgt Waugh GregltGregWMaxKuneyComgt Yates Henry ltYatesHWSDOTWAGOVgtCc Tom Gaetz lttomgaetzmsncomgt Dave Gent - WAPA ltdavegentasphaltwacomgt VanCollins ltvcollinsacec-waorggt Daniel Seydel II ltdanplatinumbusinessgroupcomgt MaynardJackson ltJacksonMaynardlegwagovgt Carl Livingston ltcarlllivingstongmailcomgt DonMcLeod ltdmcleodnwlaborersorggt JIMMY MATTA ltjimmymattamsncomgt Prince Ed(CAAA) lteprincecaawagovgt David DHondt ltddhondtagcwacomgt Irene Reyesltgloveladyexcelsupplycompanycomgt McDaniel Craig ltMcDaniCwsdotwagovgtsherryharrisergosynchcomSubject WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Good morning On Monday October 30th WSDOT will be releasing the proposed overall Federal HighwayAdministration Disadvantaged Business Enterprise goal attached for public comment throughDecember 15 2017 This overall DBE goal is based upon the recently completely DBE ProgramDisparity Study WSDOT is proposing a 19 percent overall DBE participation goal on Federal Highway

Administration-funded projects for federal fiscal years 2018 through 2020 DBE goals fortransportation projects that receive federal funds represent a percentage of the value of work inwhich minority- and women-owned businesses should participate Once finalized and submitted toFHWA early next year the goal will be effective through Sept 30 2020

The purpose of the DBE program is to create a level playing field for firms owned and operated bydisadvantaged individuals wanting to participate in federally assisted highway transit and aviationprograms The attached overall DBE goal is for FHWA funded projects WSDOT will be updating theFTA and FAA overall DBE goals in the near future

If you have any questions please contact Earl Key Director of the Office of Equal Opportunity at3607057091 or KeyEwsdotwagov Thank you Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

  • Proof-Of-Publicationpdf
    • Mediapdf
      • AGC
      • Daily Journal
      • Daily Medium
      • DBEGood
      • OMWBE
      • Seattle Medium
      • Tabor 100
      • The Chronicle
      • Tukwila
        • King County
          • Public-Comments-20180111pdf
            • 19 DBE Requirement(1)
            • AGC Comments on Proposed 10 Goad
            • Backstrom Curb amp Sidewalk
            • comments on WSDOT proposed DBE goal
            • Cowlitz County Public Works
            • DBE Contracting goals
            • DBE Goal
            • DBE Program Disparity Study
            • Disparity Study Comments from City of Spokane
            • FW_ WSDOT News - WSDOT seeks comments on propos
            • Proposed DBE Goals
            • RE_ DBE Contracting Goal Comments
            • Re_ DBE Goal Comments
            • Re_ Seydel Dan - WSDOT Disparity Study Present
            • Support for WSDOTs proposed DBE goal
            • Why we need mandatory goals
            • WSDOT DBE Goal - Comment in support
            • WSDOT Proposes DBE goal of 19
            • WSDOT propsed DBE Goals
            • WTS - Disparity Study Comment Letter

Thank you and Merry Christmas

Hi Dan

Thank you for providing such thoughtful public comments questions and testimony

Regarding your public testimony below - I do not believe I am not able to answer questions ifthey are public comments Please let me know what part of this email you would likeclarification on and what part you would like considered public testimony

I appreciate your thoughtful consideration of WSDOTrsquos implementation of our civil rightsprograms

Best Regards

Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

DIDaniel Seydel IIFyi Daniel J Seydel II Platinum Group LLC 2064060844 f) 2062999934wwwplatinumbusinessgroupcom Small Business is the Answer FREE TRAINING FORENTREPRENEURS amp JOB SEEKERS - Polish your skills or make your firm standout thanksto the EntrepreneurialThu 233pDI

Daniel Seydel IIThu 1272017 1123 AMInbox Sent ItemsShow all 7 recipientsTobaynejwsdotwagov ltBayneJwsdotwagovgtJackie

Per your request below are my questions and comments some of which were verbally sharedyesterday

Congratulations on receiving the blessing of additional technical assistance dollars andcompleting the DBE Disparity Study per your report

1) Do you have any reports on your outcomes from the past 5 years on DBE support servicesand specific key performance measures from previous years funding (ie how many firmsutilized what was the objectives were objectives met did outcomes meet total satisfaction ifnot why next steps what was the firms capacity before and after services were performed (ie

sales employees bonding if applicable insurance equipment line of credit if applicablenumbertype of customers how are they doing now etc))

2) What other changes or improvements other than allowing DBES to select their own serviceproviders and a staff change will be a part of this new program

3) Was consideration to provide the new mentor protege consultant rather than separating theactivities into support services andor technical assistance

Disparity study clarifications andor comments

1) Will WSDOT consider sponsoring legislation to support the policy changes and goalincreases to insure manditory goals wont be necessary

a) If not what measures will you grant primes to operate outside the box (ie entertain bestvalue over low bid modify responsiveness by subs to require adherence to meeting voluntarygoals developing standards around federally funded gccm and other low bid procurementsthat give powers to primes to meet objectives including but not limited to mentor protegerelationships joint ventures bond waiving techniques cash flow assistance material andequipment acquisition manufacturer development specifications that have only DBES orinclude equal number of DBES as non DBES as approved installers etc)

2) Will the disparity study consultant be available for implementation or information gatheringfrom other regions

3) What lessons did WSDOT learn that it did not know from the other study(s)

4) What would WSDOT do different (ie scope time line process approach etc)

5) Will WSDOT be hiring more diverse staff amp professionaltechnical service providers inother departments outside OEO to insure policies commitments and evaluations areperformed in manner that improves diversity that reflects the communities WSDOT serves bythoughtful and legal efforts increase participation thus creating successful outcomes includingpartnerships and collaborations

Daniel J Seydel IIPlatinum Group LLC 2064060844f) 2062999934wwwplatinumbusinessgroupcom

Small Business is the Answer

FREE TRAINING FOR ENTREPRENEURS amp JOB SEEKERS - Polish your skills or makeyour firm standout thanks to the Entrepreneurial Institute of Washington

httpswwwyoutubecomchannelUCKL5YeVxL29HnNxqnb6hmXA

LIKE US on FaceBook if an Active Professional Development workshop provided by EIW

Construction University helps your firm or has benefited you

httpswwwfacebookcomEIWashingtonref=hl

From Bayne Jackie ltBayneJwsdotwagovgtSent Friday December 8 2017 10139 PMTo Daniel Seydel IICc Key Earl daneiwashingtonorg Nadeem Ismail Mussie Tewelde(mteweldehydro2geotechcom) graceflyrightaolcom Mary Wenner Watkinson LarrySubject RE Seydel Dan - WSDOT Disparity Study Presentation Public Testimony Hi Dan Thank you for providing such thoughtful public comments questions and testimony Regarding your public testimony below - I do not believe I am not able to answer questions if theyare public comments Please let me know what part of this email you would like clarification on andwhat part you would like considered public testimony I appreciate your thoughtful consideration of WSDOTrsquos implementation of our civil rights programs Best Regards Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov From Daniel Seydel II [mailtodanplatinumbusinessgroupcom] Sent Thursday December 7 2017 1123 AMTo Bayne Jackie ltBayneJwsdotwagovgtCc Key Earl ltKeyEwsdotwagovgt daneiwashingtonorg Nadeem Ismailltnipaintingearthlinknetgt Mussie Tewelde (mteweldehydro2geotechcom)ltmteweldehydro2geotechcomgt graceflyrightaolcom Mary Wennerltmwenn0108yahoocomgtSubject Seydel Dan - WSDOT Disparity Study Presentation Public Testimony Jackie

Per your request below are my questions and comments some of which were verbally sharedyesterday

Congratulations on receiving the blessing of additional technical assistance dollars andcompleting the DBE Disparity Study per your report

1) Do you have any reports on your outcomes from the past 5 years on DBE support servicesand specific key performance measures from previous years funding (ie how many firmsutilized what was the objectives were objectives met did outcomes meet total satisfaction ifnot why next steps what was the firms capacity before and after services were performed (iesales employees bonding if applicable insurance equipment line of credit if applicablenumbertype of customers how are they doing now etc))

2) What other changes or improvements other than allowing DBES to select their own serviceproviders and a staff change will be a part of this new program

3) Was consideration to provide the new mentor protege consultant rather than separating theactivities into support services andor technical assistance

Disparity study clarifications andor comments

1) Will WSDOT consider sponsoring legislation to support the policy changes and goalincreases to insure manditory goals wont be necessary

a) If not what measures will you grant primes to operate outside the box (ie entertain bestvalue over low bid modify responsiveness by subs to require adherence to meeting voluntarygoals developing standards around federally funded gccm and other low bid procurementsthat give powers to primes to meet objectives including but not limited to mentor protegerelationships joint ventures bond waiving techniques cash flow assistance material andequipment acquisition manufacturer development specifications that have only DBES orinclude equal number of DBES as non DBES as approved installers etc)

2) Will the disparity study consultant be available for implementation or information gatheringfrom other regions

3) What lessons did WSDOT learn that it did not know from the other study(s)

4) What would WSDOT do different (ie scope time line process approach etc)

5) Will WSDOT be hiring more diverse staff amp professionaltechnical service providers inother departments outside OEO to insure policies commitments and evaluations areperformed in manner that improves diversity that reflects the communities WSDOT serves bythoughtful and legal efforts increase participation thus creating successful outcomes includingpartnerships and collaborations

Thank you for your hard work

Daniel J Seydel IIPlatinum Group LLC2064060844f) 2062999934wwwplatinumbusinessgroupcom

Small Business is the Answer

FREE TRAINING FOR ENTREPRENEURS amp JOB SEEKERS - Polish your skills or makeyour firm standout thanks to the Entrepreneurial Institute of Washington

httpswwwyoutubecomchannelUCKL5YeVxL29HnNxqnb6hmXA

LIKE US on FaceBook if an Active Professional Development workshop provided by EIWConstruction University helps your firm or has benefited you

httpswwwfacebookcomEIWashingtonref=hl

From Erin EhlingerTo Bayne JackieSubject Support for WSDOTs proposed DBE goalDate Wednesday December 13 2017 115417 AM

I am writing to support the WSDOT recommended DBE Goal for FHWA contracts of 190 I also want to express my appreciation for the thoroughness of the WSDOT Disparity study and howthe study disclosed the disparity in WSDOT contracts that do not have a DBE or WBE goal ndash furtherreinforcing that all women-owned firms and minority owned firms face equity issues I remain concerned with the methodology required by the Code of Federal Regulations and case lawbecause of the dependence on the availability of firms in the calculation An unintendedconsequence of removing either gender or race from the goal is that many of these firms would goout of business the availability decreases and the formula then results in a smaller DBE goal Pleaselet me know how I can help influence a change to the CFR Thank you Erin Ehlinger

Erin Ehlinger PEPresident

24036 SE 47th StSammamish WA 98029erinehlingersmartcitytrafficcom425-221-0320

From Jackie EtterTo WSDOT Disparity StudySubject Why we need mandatory goalsDate Friday December 1 2017 61859 PM

As a DBE participating in bidding process I have found that regardless of the language which claims to insurethat disadvantaged business enterprises shall not be discriminated against the only way to ensure that this does nothappen is by mandating affirmative action goals Having been overlooked time and time again because of my gender when I have submitted bids that are verycompetitive with other bidders is very frustrating I have had many instances of companies using my price to getmy non DBE competitors to lower theirs The voluntary or laudatory DBE goals do nothing to ensure a level playing fieldThe only way to ensure non-discrimination is through mandatory goals

Jackie EtterWest Star Construction of Spokane

Sent from my iPhone

From Claudia HirscheyTo Key Earl Bayne JackieSubject WSDOT DBE Goal - Comment in supportDate Tuesday December 12 2017 61937 PM

Dear Earl and Jackie The WSDOT recommended DBE Goal for FHWA contracts of 190 is a small and important increasethat can further achieve equity in WSDOTFHWA contracting I am in support of the 19 DBE Goal I also want to express my appreciation for the thoroughness of the WSDOT Disparity study and howthe study disclosed the disparity in WSDOT contracts that do not have a DBE or WBE goal ndash furtherreinforcing that all women-owned firms and minority owned firms face equity issues I remain concerned with the methodology required by the Code of Federal Regulations and case lawbecause of the dependence on the availability of firms in the calculation An unintendedconsequence of removing either gender or race from the goal is that many of these firms would goout of business the availability decreases and the formula then results in a smaller DBE goal Sincerely Claudia S Hirschey PETransportation Consulting Servicesclaudiahirscheycomcastnethttphirscheytcscom2068564988 Mobile

From Nate ThomasTo WSDOT Disparity StudySubject WSDOT Proposes DBE goal of 19Date Thursday December 7 2017 42720 PM

The WSDOT should look into similar ways the Federal Gov has handled the equal opportunity forthose that fall under the DBE status and set aside specific projects for the DBErsquos and moreimportantly UDBErsquos so these companies have better chance of landing contracts Maybe a lot 10 ofthe DBE goal to set aside for only DBEs and other 9 goal met as it is done currently with COA onlarger contracts Nate ThomasSenior EstimatorD 5095688085 | C 5099941156331 North Fancher Road | Spokane WA | 99212

The information contained in this email including any attachments is confidential and may beprivileged It is intended only for the person or entity to which it is addressed and no waiver isintended by sending this email If the reader is not the intended recipient you are herebynotified that any review retransmission dissemination or other use of or taking any action inreliance upon this information is strictly prohibited If you have received this email in errorkindly notify the sender by reply email and delete the original message from any computerThank You

From Brian FujiiTo WSDOT Disparity StudySubject WSDOT propsed DBE GoalsDate Thursday December 7 2017 110638 AM

Good morning Jackie

I wanted to comment on WSDOTs proposed DBE goal to 19 I believe WSDOTs plan toincrease the overall DBE goal to 19 will provide greater opportunities for DBE contractorsin different disciplines to participate in federally funded contracts

Without the new DBE requirement and with Proposition 200 there are limited opportunitiesfor DBE contractors in disciplines different than the typical trucking flagging and rebar Inaddition there are no incentives for general contractors to go out beyond the usual truckingflagging and rebar DBE subcontractors

Increasing the DBE goals will provide opportunities for different DBE contractors in differentdisciplines to participate in WSDOT federally funded projects

Thank you for your time

RespectfullyBrian FujiiPresident Subsurface ConstructionP 2063836478F 2069604639MDBE 4M0024998

From Forman StephanieTo Bayne JackieCc Millar Roger christinenhanmailhousegov Claudia Hirschey Sarah Corbin Jiang Yingle

efaulknerenviroissuescom Diana Giraldo Kelly CheesemanSubject WTS - Disparity Study Comment LetterDate Friday December 15 2017 71020 PMAttachments 2017_Dec 15_WTSCommentLetter_WSDOT DBE Goalpdf

Dear Ms Bayne Please find our attached letter which summarizes the WTS Puget Sound Chapterrsquos support foradvancement of women in transportation and our comment letter regarding the recent DisparityStudy Please feel free to contact me if you have any questions or would like to discuss Sincerely Stephanie S Forman PEWTS Puget Sound President Transportation Project Manager

929 108th Avenue NE Suite 1300Bellevue WA 98004D 4254681548 M 2062291745stephanieformanhdrinccom

December 15 2017

Jackie Bayne Policy and Reporting Manager

Office of Equal Opportunity

Washington State Department of Transportation

PO Box 47314

Olympia WA 98504-7314

Dear Ms Bayne

On behalf of the Puget Sound Chapter of Womenrsquos Transportation Seminar (WTS) we would

like to thank the Washington State Department of Transportation for presenting to our

organization the DBE Disparity Study results We very much appreciated the presentation by Earl

Key Director of WSDOTrsquos Office of Equal Opportunity Teresa Berntsen (Director Office of Minority

and Womens Business Enterprises) as well as Leslie Jones (Director Sound Transit Office of Small

Business Development and Labor Compliance)

Following a review of the WSDOT Disparity Study and as a result of consultation with WTS

International we would like to provide WSDOT with our comments for your consideration

As you know WTS is an organization focused exclusively on attracting retaining and advancing

women in transportation By the year 2018 there will be thousands of vacancies in the

transportation industry for qualified professionals and while women account for more than half of

the worldrsquos workforce they are a very small minority in transportation disciplines

We are pleased that the outcome of the 2017 Disparity Study that recognizes the on-going barriers

for DBEs including women-owned businesses in transportation The WSDOT recommended DBE

Goal of 190 is a small and important increase that can further achieve equity in WSDOTFHWA

contracting We are also pleased that the 2017 Disparity Study has documented the disparity in

WSDOT contracts that do not have a DBE or WBE goal ndash further reinforcing that all women-owned

firms and minority owned firms face equity issues We are encouraged that the WSDOT has asked

FHWA to rescind the 2016 waiver

While WTSrsquo mission is specific to the advancement of women we are a race-neutral organization To

this end we are also deeply concerned about the underutilization of minority owned firms There is

no equity or ldquofair playing fieldrdquo without equity for all gender and races We remained concerned with

the methodology required by the Code of Federal Regulations and case law because of the

dependence on the availability of firms in the calculation An unintended consequence of removing

either gender or race from the goal is that many of these firms would go out of business the

availability decreases and the formula then results in a smaller DBE goal This consequence is

contrary to our mission

We look forward to our continued participation in WSDOTrsquos DBE advisory group we are anticipating

notice that the 2016 waiver has been rescinded and how we can work together to continue

advancing minority and women-owned firms in the transportation field

Sincerely

WTS Puget Sound Chapter

Stephanie Forman

President

C Roger Millar Secretary WSDOT

C Representative Adam Smith 9th Congressional District Washington co Christine Nhan

WTS Puget Sound Chapter

PO Box 3461

Bellevue Washington 98009

From Dave Gent - WAPATo Bayne JackieCc Tom GaetzSubject WAPA Public Comments - RE WSDOT FHWA Disadvantaged Business Enterprise Proposed GoalDate Friday December 15 2017 14119 PMAttachments 12152017 DBE Proposed Goal - WAPA Public Comments Letterpdf

Good afternoon Jackie Please find attached WAPArsquos ldquofor the public recordrdquo comments with respect to WSDOTrsquos proposedDBE Goals FHWA funded work I assume that the Master DBE Directory was not sent to you this week so as a result we were notable to review the directory before the close of the public comment period That fact is noted withinour comment letter Thank you for your efforts Have a good weekend

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Friday December 8 2017 1219 PMTo Dave Gent - WAPA ltdavegentasphaltwacomgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hello Dave WSDOT did not take possession of this directory as part of our review process We will provide youwith the records without submitting a formal request However we need to get them from theconsultant first I will hopefully have them to provide next week I will keep you updated on therequest Have a nice weekend Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal Opportunity

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

December 15 2017

Jackie Bayne Policy Manager WSDOT Office of Equal Opportunity Delivered via e-mail to BayneJwsdotwagov RE Public Comment (as requested) to Proposed Overall DBE Goal for the FHWA (2018 ndash 2020) Ms Bayne Thank you for your presentation via webinar on December 5 2017 outlining WSDOTrsquos evaluation process used to determine the proposed overall DBE goal for the FHWA Thank you also for the Colette Holt amp Associates (CHA) DBE Advisory Group presentation made on September 14 2017 Both presentations helped to distill the findings of the 2017 Disparity Study produced by CHA In response to Earl Keyrsquos initial informal request to comment on the proposed overall DBE goal made during the DBE Advisory Committee teleconference held on October 12th we provided a list of reasons that we believe justify a lower DBE goal than is now being proposed Our initial response to Mr Keyrsquos request did not serve to influence WSDOT and the current proposed goal remains at 190 The arguments provided on October 12th against the significant increase in the proposed DBE goal (versus the previous goal and recent historic DBE participation) are repeated and supplemented below and will serve as the Asphalt Pavement Associationrsquos (WAPArsquos) official public comments

In concert with WSDOT and the OWMBE WAPA and the construction firms that WAPA represents have demonstrated a commitment to the principals of equal opportunity for all ldquoready willing and ablerdquo firms for the entire history that our DBE program has been in place WAPA has continuously demonstrated its commitment to the goals of the DBE program and for increasing the representation of disadvantaged groups within our industry as both workers and owners of firms Please recognize that WAPArsquos oversight and critique of the DBE program has always attempted to balance the principals of fair and open competition with the practical aspects of the low bid compressed schedule high performance standards demanded within the WSDOT marketplace Our comments below are meant to enhance WSDOTrsquos and OWMBErsquos understanding of the market and to hopefully have WSDOT fully consider all of the dynamics that are at play when proposing its Triennial DBE goal for FHWA projects Current DBE Capacity vs Historically Robust Market In advocating for a realistic and defensible DBE goal it has always been WAPArsquos position that it is paramount that the realities of the marketplace and true certified DBE subcontracting capacity should be a primary standard While a ldquostretchrdquo goal may appear to be progressive on its face it comes with consequences for all of the parties involved in the WSDOT federal aid contracting arena To balance the dynamics of the WSDOT contracting system the DBE goal should be tempered with the realities of the market and with a true measure of the underlying effectiveness of the DBE support services available to contractors

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 2 of 6 The first point of fact that has not been given any apparent consideration by WSDOT in its evaluation of the current capacity of certified DBErsquos is that there is an historically robust workload scheduled to be performed in the 2017 through 2022 time-frame particularly in the Puget Sound ldquoEverett to Olympiardquo corridor By WSDOTrsquos own estimates (see Attachment A) public works construction project starts in the 2018 to 2022 time-frame in this region will exceed $333 billion (B) counting the work projected from just five public entities WSDOT will be taking a decidedly ldquoback seatrdquo role during this period to Sound Transit which will have construction project starts of $226B vs WSDOTrsquos projected volume of $67B WSDOTrsquos summary publication titled Washington State Department of Transportations Proposed Federal Highway Administration Triennium Disadvantaged Business Enterprise Goal Federal Fiscal Years 2018-2020 states correctly that ldquoIncluded among the types of evidence that must be considered are the current capacity of DBEs to perform work on WSDOTrsquos federally-assisted contracts as measured by the volume of work DBEs have performed in recent yearshelliprdquo (Step Two Adjustment discussion) With the Sound Transit program being over 300 larger than the total WSDOT program in this region a sober assessment of true certified DBE capacity in the next three years needs to be considered by WSDOT If the huge construction boom over the next five years does not prompt a Step Two Adjustment then it becomes obvious that the realities of the market are being ignored by WSDOT for DBE goal setting Put another way if the 2018 through 2022 level of contracting activity does not warrant a goal adjustment what will DBE Access Barriers Not Yet Addressed The CHA 2017 Disparity Study points out multiple recommendations in Section VII that impact DBE participation and access to the market Assessments relating to those impacts and the state of maturity in addressing the CHA recommendations should be considered when assessing the DBE goal Many of the CHA recommendation have not been adequately addressed at this point in time Some of the prime examples are listed below Increase Certification and Expertise ndash The Disparity Study as explained to us includes all minority- (MBE)

and women-owned (WBE) firms that could be readily identified that perform work within Washington State and that perform work within the NAICS code framework CHA developed to cover WSDOT project work During the various presentations relating to the Disparity Study WSDOT representatives said that outreach to currently non-certified MBE amp WBE firms has increased and that WSDOT aspires to bolster its list of certified firms in the future but this effort is just beginning and the success of the effort needs to be means tested against the broader population of MBE amp WBE firms included in the CHA base line evaluation As the Disparity Study uses a much broader population of MBE WBE contractors to arrive at its conclusions (both non-certified firms and firms too large for certification) it follows that the calculated DBE proposed goal is overstated to include capacity that does not currently exist within WSDOTrsquos certified DBE framework Unless OMWBE is experiencing sudden and unprecedented success in recruiting new MBEWBE firms the DBE goal should be adjusted downward to recognize that the ldquoready willing and ablerdquo contractors that WSDOT has certified is only a subset of the total MBEWBE contracting population used in the Disparity Study evaluation

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 3 of 6

Until the promised WSDOT outreach registration efforts result in a substantial increase in available certified DBE firms it is premature to count the entire population of minority- and women-owned contractors as available to participate in WSDOT contracting It is unreasonable for WSDOT to project availability capacity using the entire MBEWBE population when only its currently truncated list of certified firms is acceptable to count toward the DBE goal

A corollary to the Increase Certification and Expertise discussion above is that the calculation of the Base Figure evidently includes the broadest practical population of MBE and WBE firms identifiable (without a review of the CHA Master DBE Directory which has not been supplied prior to the close of the public comment period the scope of the directory cannot be ascertained) If this directory includes a large population of MBEWBE firms that are not certified or are too large to be certified then the Base Figure calculation should be adjusted to reflect that certified DBE firms are a fraction of the total MBEWBE firms used to arrive at the 19 suggested DBE goal With respect to the CHA Master Directory it is our understanding the WSDOT was not given the directory as part of its evaluation of the Disparity Study and it follows that it did not evaluate the proposed DBE goal in the context of the CHA Master DBE Directory In our opinion an informed decision on adjusting the CHA baseline goal calculation can only be done after an extensive evaluation of the CHA Master DBE Directory If this has not been done WSDOT has not exercised due diligence in evaluating the context and underpinnings of the CHA Disparity Study and a certified DBE Triennium goal proposal to the FHWA is premature Increase Contract ldquoUnbundlingrdquo ndash If this proposed strategy (suggested by the CHA Study) is undertaken

certified DBE Subcontractors currently available will be engaged as Prime Contractors and the value of their prime contracts will bolster the overall percentage of certified DBE contracting but a systematic effort and strategy to ldquounbundlerdquo has not been articulated by WSDOT The key question of how this effort can be accomplished without increased cost to the taxpayers and increased inconvenience for the traveling public As noted in the CHA study (page 129 final paragraph) ldquoUnbundling must be conducted however within the constraints of the need to ensure efficiency and limit cost to the taxpayersrdquo As of this writing no overarching strategy for further unbundling with proper accountability has been articulated by WSDOT to the DBE Advisory Group

Review Insurance and Experience Requirements ndash Impediments to certified DBE participation due to

necessary insurance and experience standards cannot be solved by the prime contracting community Unless and until WSDOT puts together programs to address the burden of the substantial risks shouldered by Prime Contractors on WSDOT contracts barriers for streamlined utilization of certified DBE firms will continue to exist These market driven barriers will continue to dampen the availability of certified DBE Subcontractors that are able to perform within WSDOTrsquos strict criteria without unduly transferring risk to the Prime Contractor

Better Partnering to Overcome DBE Failures to Perform ndash Prime Contractors are held fully responsible to maintain the project schedule and are subject to project liquidated damages even when they may be struggling to deal with Subcontractor performance issues It is well-established that replacing a certified ldquocondition of awardrdquo (COA) DBE Subcontractor is very onerous and likely very costly to the Prime Contractor Unfortunately the imposition of strict and often counter-productive commercially useful function (CUF) rules often compound this issue as Prime Contractors cannot help COA DBE Subcontractors work through capacity expertise or time-related issues that impact timely performance

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 4 of 6

WSDOT needs to be a much better partner in the process of dealing with under-performing or non-performing certified DBE Subcontractors The current standard operational procedure places all of the exposure for non-performance onto the Prime WSDOT does not have an equitable system to account for non-performing or under-performing certified DBE Subcontractors hired as a condition of award (COA)

Performance Information and Training ndash Commercially useful function rules (CUF) and the lack of clear benchmark definitions for good faith effort (GFE) standards remain barriers for improving accountability within the DBE system and in turn lead to distorted DBE participation rates These items remain amorphous due to lack of training or lack of historic information Chronic uncertainty exists regarding both of these items Until WSDOT changes and improves its approach to provide transparency and certainty for both the prime bidding amp subcontracting parties true certified DBE capacity will continue to be masked and the resultant higher subcontracting costs associated with a distorted marketplace will continue to be hidden

WAPA respectfully suggests that simply adding an ldquoEstimated DBE Subcontract Premiumrdquo line to the current DBE bid forms would help to establish benchmarks that could begin to be used to ldquomeans testrdquo good faith efforts If this information had been gathered over the last 20 years of the DBE program meaningful GFE standards could have been developed and could be in place today

An in-depth review of CUF standards would also provide clarity For instance it is unclear why force account items performed by certified DBEs are currently counted at only 50 of the value of the work How was this benchmark established Has it been reviewed since imposed Did it ldquosolverdquo whatever inequity WSDOT was trying to address Better clarity may lead to more expanded opportunities for certified DBE Subcontractors

Enhanced Supportive Services and Business Development Programs ndash Unless and until stronger programs of these types are shown to be effective in boosting certified DBE business development increased DBE participation due to stronger business acumen should not be relied upon when setting the new DBE goal

Does OMWBE have a reasonable expectation that future plans for enhanced and expanded programs will be more successful than those employed in the past Assuming that certified DBE Subcontractors will be better prepared to deal with the WSDOT contracting environment than in the past should not be relied upon to boost DBE participation goals Especially troubling were the multiple references within the CHA report highlighting that DBEs believe that the staff at OMWBE lack a deep knowledge about the highway construction industry (eg Study page 129 2nd paragraph) Does OMWBE have a path forward that will address this issue and thus improve supportive services impacts

Develop a Bonding and Financing Program for SBEs ndash This is completely outside of the prime contracting

communityrsquos scope of influence WSDOT must find a way to institute changes that both protect the taxpayer and help increase certified DBE bonding capacity and access to financing ndash very large hurtles To assume that these hurtles can effectively be overcome within the 2018 ndash 2020 time frame when they have been chromic issues for the past 20 plus years of DBE program development is not rational

A helpful innovation would be for WSDOT to underwrite performance and payment bonds for certified DBE firms or to create promote a system that helps certified DBE firms obtain private bonding Bridging the gap to address capital access and performance risks (bonding) must be championed by WSDOT

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 5 of 6

Base Figure Adjustment to Address Available Subcontract Volume and DBE Prime Contracts It is a fact that mid- to large-sized MBEWBE firms that compete both as Prime Contractors and as Subcontractors are not eligible to be OMWBE certified DBEs Further the current amount of contract unbundling for greater DBE access to WSDOT prime contracting (see below) accounts for a very low dollar volume of prime contracts performed by certified DBEs Finally by specification (WSDOT standard specification 1-081) Prime Contractors are obligated to perform 30 of the total volume of the work (less specialty work) or stated another way a maximum of 70 of the dollar volume on WSDOT projects is typically available to award to subcontractors These market dynamics are NOT addressed in the Disparity Study A responsible DBE goal made absent of these facts should not be implemented A reasonable adjustment to the proposed 19 DBE goal is presented below

bull The percent of WSDOT prime contracts awarded to certified DBE firms is likely less than 5 by total WSDOT

contract volume Assuming this approximation is valid (likely very conservative) then the amount of WSDOT contract work available to certified DBE firms via subcontracting should be adjusted to account for the factors outlined above The Base Figure (19) should be adjusted to recognize that a 70 maximum subcontractor participation is available (in the numerator) and to account for the assumed 5 certified DBE prime contracts in the denominator Reasonable Base Figure Adjustment 19 (proposed) x 70 subcontracts available divide 95 of Non-Certified DBEs as Prime Contract Volume = 190 x 0737 = 140 adjusted goal This is an adjustment based on the practical dynamics of the WSDOT contracting system and it represents a more realistic look at the true subcontract volume that is available for Prime Contractors to award to certified DBE firms

Conclusions

Until the items listed above are addressed and in place it is not reasonable to believe that DBE goals can be increased by nearly 163 (from 117 to 190) When the projected robust public works contracting market is appropriately considered the true availability of certified DBE Subcontractors for WSDOT contracts will be truncated due to demand across all public works sectors With multiple strong public works programs competing for a limited population of certified DBEs the ability to meet increased WSDOT DBE goals will be severely challenged Without very clear concise and transparent good faith effort rules the ability to address DBE goals that greatly overestimate true near term certified DBE capacity will result in non-attainment bid day chaos failures to perform andor rapidly increased pricing

The clear conclusion is that at this point in time under the current circumstances without effectively instituted new programs rules procedures that could enhance the certified DBE programrsquos overall effectiveness we believe that the DBE goal should remain at or near 12 As OMWBE documents and demonstrates its future successes in improving access and eliminating capacity barriers only then should the DBE goal be re-evaluated and increased

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 6 of 6

In closing please remember that it is rare that the contracting community is asked our opinion with respect to the WSDOTrsquos DBE policies and so this letter is somewhat a vehicle to highlight collective concerns It is our belief that the majority of the Prime Contractors in Washington state support the objective of creating a level playing field for ready willing and able DBEs

If the level playing field is not yet possible in the absence of the DBE program then the key is to set realistic goals that recognize reflect and address the hard realities and market dynamics imposed by WSDOTrsquos bedrock environment of awarding contracts to the lowest cost responsible and responsive Contractor

Respectfully submitted Washington Asphalt Pavement Association

David Gent Tom Gaetz Executive Director Senior Advisor

Attachment A ndash WSDOT Central Puget Sound Public Works Contracting Projection 2018 - 2022

Con

stru

ctio

n Pr

ojec

t Sta

rts

2018

-202

2S

ound

Tra

nsit

$22

6 B

SD

OT

$08

B

Tran

sit

amp O

ther

s$1

7 B

WS

DO

T$6

7 B

Por

t of

Sea

ttle

$15

B

TOTA

L$3

33

B

Source N

ov 1

9 2

017

pres

enta

tion

to W

APA

Ann

ual M

eetin

g

Attachment A

Work (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Dave Gent - WAPA [mailtodavegentasphaltwacom] Sent Thursday December 7 2017 144 PMTo Bayne Jackie ltBayneJwsdotwagovgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hi again Jackie Irsquom fine thanks and hope you are the same Interesting The Master DBE Directory is the basis for and integral to the conclusions of the DisparityStudy Is it not then part of the information needed to fully review and comment on the DisparityStudy Was it not provided by CHA to WSDOT for review We are trying to fully understand thestudy and if this directory was part of the study why would it need to be obtained by a publicrecords disclosure It should be in the public domain and not restricted from ease of access If you are sure that a public records request is needed Irsquoll start that process but we will need tonote that point of fact when we submit our public comments If you are able to reconsider please let me know Respectfully

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Thursday December 7 2017 126 PMTo Dave Gent - WAPA ltdavegentasphaltwacomgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hello Dave I hope you are doing well

That information would likely be obtained through a public disclosure request Best Regards Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Dave Gent - WAPA [mailtodavegentasphaltwacom] Sent Thursday December 7 2017 113 PMTo Bayne Jackie ltBayneJwsdotwagovgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Jackie Can you please provide an electronic file or provide a weblink for the Master DBE Directory thatColette Holt amp Associates developed for the WSDOT Disparity Study 2017 (first referred to on Page 8of the Disparity Study) I did not see a link to this Master DBE Directory within the study Thanks

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Friday October 27 2017 1118 AMTo Kenyon Wendy ltKenyonWwsdotwagovgt Adams E W ltewadamssystemsclcomgtAdekoyaAndrew ltandrewadekoyabccomgt AlyssaBalllegwagov Anindita Mitraltamitracrea-affiliatescomgt APRISeattlehotmailcom Armstrong CharlotteltCharlieAatgwagovgt Ato Apiafi Architects PLLC ltatoaatoapiaficomgt benzfanwaorgBerntsen Teresa (OMWBE) ltTeresaBomwbewagovgt Billingsley Andrealtbillinawsdotwagovgt Bramlet Erica ltEricaBramletlegwagovgt Brooks Julius

ltBrooksJwsdotwagovgt Brown Jason ltjbrownldccorpcomgt bwallacenwlaborersorgCamden Allison ltCamdenAwsdotwagovgt carlllivingstongmailcom Cerda OscarltCerdaOwsdotwagovgt Christopher Chris ltChristCwsdotwagovgt ckerneycaawagovdanplatinumbusinessgroupcom davegentasphaltwacom David BalltDavidsignsnowmillcreekcomgt Davis Khalia ltDavisKhwsdotwagovgt Davis RaShelle (GOVltrashelledavisgovwagovgt Dayton Jo ltDaytonJwsdotwagovgt ddhondtagcwacomDebbieDriverlegwagov Dennis ltdennisahlkiewitcomgt dmcleodnwlaborersorgdrart6651gmailcom Duncan Enid lthigradeincgmailcomgt EltonltEltonwashingtonstatetruckingcomgt eprincecaawagov flemosldccorpcomfmartineznwmtnmsdcorg geoffshookatkncom glovelady ltgloveladyexcelglovescomgtGrabow Katie ltkgrabowsystemsclcomgt Guilfucci Jackie ltJackieGuilfucciskanskacomgt HealyLinda ltHealyLwsdotwagovgt Higginbotham Breanne ltHigginBwsdotwagovgt HirscheyClaudia ltclaudiahirscheycomcastnetgt Holt Colette ltcoletteholtmwbelawcomgt Huff JohnltHuffJwsdotwagovgt Iniguezchawagov JacksonMaynardlegwagov Jimmy Matta(jmattaalcantarassoccom) ltjmattaalcantarassoccomgt kellywickergovwagov Key EarlltKeyEwsdotwagovgt Kirk Jon ltjkirkwhhnfscomgt Kris Purrier ltkpurrierhwageocomgtleewabuildingtradesorg lesliejonessoundtransitorg Liz Evans ltlevansagcwacomgt LopezErin lterinlopezdeswagovgt Martha Cerna ltMarthaPSLCCORGgt Martin-Arnold EdwinaltMartinEwsdotwagovgt Mary Lerdahl ltmarydbeelectricinccomgt McCarty Hannahlthannahmccartylegwagovgt Melissa L Boyles ltmelissaboylesmwbelawcomgt Metcalf KeithltMetcalKwsdotwagovgt michaelicapaawagov Michelle ltMichelleTTCC26netgt MillarRoger ltMillarRwsdotwagovgt Nakamura Jason ltjasonnakamura1-alliancecomgtNavarroLportseattleorg olliepmt-solutionscom pastorbanksesbctacomacom PatrickHughes ltphugheshughesgroupbizgt Petersen Jodi (FHWA) ltJodiPetersendotgovgtrabbottliunaorg rcarmsteadgmailcom ricemportseattleorg Riley D ltdrileylydigcomgtSeling ltSelingjpfranciscomgt sherryharrisergosynchcom Stell MellodyltStellMwsdotwagovgt terigobintulaliptribes-nsngov timwilliamfactorycom tinaterra-tdicom tkellyldccorpcom tomgaetzmsncom vcollinsacec-waorgverlenejazzmsncom Wang Albert ltWangAatgwagovgt Waugh GregltGregWMaxKuneyComgt Yates Henry ltYatesHWSDOTWAGOVgtCc Tom Gaetz lttomgaetzmsncomgt Dave Gent - WAPA ltdavegentasphaltwacomgt VanCollins ltvcollinsacec-waorggt Daniel Seydel II ltdanplatinumbusinessgroupcomgt MaynardJackson ltJacksonMaynardlegwagovgt Carl Livingston ltcarlllivingstongmailcomgt DonMcLeod ltdmcleodnwlaborersorggt JIMMY MATTA ltjimmymattamsncomgt Prince Ed(CAAA) lteprincecaawagovgt David DHondt ltddhondtagcwacomgt Irene Reyesltgloveladyexcelsupplycompanycomgt McDaniel Craig ltMcDaniCwsdotwagovgtsherryharrisergosynchcomSubject WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Good morning On Monday October 30th WSDOT will be releasing the proposed overall Federal HighwayAdministration Disadvantaged Business Enterprise goal attached for public comment throughDecember 15 2017 This overall DBE goal is based upon the recently completely DBE ProgramDisparity Study WSDOT is proposing a 19 percent overall DBE participation goal on Federal Highway

Administration-funded projects for federal fiscal years 2018 through 2020 DBE goals fortransportation projects that receive federal funds represent a percentage of the value of work inwhich minority- and women-owned businesses should participate Once finalized and submitted toFHWA early next year the goal will be effective through Sept 30 2020

The purpose of the DBE program is to create a level playing field for firms owned and operated bydisadvantaged individuals wanting to participate in federally assisted highway transit and aviationprograms The attached overall DBE goal is for FHWA funded projects WSDOT will be updating theFTA and FAA overall DBE goals in the near future

If you have any questions please contact Earl Key Director of the Office of Equal Opportunity at3607057091 or KeyEwsdotwagov Thank you Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

  • Proof-Of-Publicationpdf
    • Mediapdf
      • AGC
      • Daily Journal
      • Daily Medium
      • DBEGood
      • OMWBE
      • Seattle Medium
      • Tabor 100
      • The Chronicle
      • Tukwila
        • King County
          • Public-Comments-20180111pdf
            • 19 DBE Requirement(1)
            • AGC Comments on Proposed 10 Goad
            • Backstrom Curb amp Sidewalk
            • comments on WSDOT proposed DBE goal
            • Cowlitz County Public Works
            • DBE Contracting goals
            • DBE Goal
            • DBE Program Disparity Study
            • Disparity Study Comments from City of Spokane
            • FW_ WSDOT News - WSDOT seeks comments on propos
            • Proposed DBE Goals
            • RE_ DBE Contracting Goal Comments
            • Re_ DBE Goal Comments
            • Re_ Seydel Dan - WSDOT Disparity Study Present
            • Support for WSDOTs proposed DBE goal
            • Why we need mandatory goals
            • WSDOT DBE Goal - Comment in support
            • WSDOT Proposes DBE goal of 19
            • WSDOT propsed DBE Goals
            • WTS - Disparity Study Comment Letter

sales employees bonding if applicable insurance equipment line of credit if applicablenumbertype of customers how are they doing now etc))

2) What other changes or improvements other than allowing DBES to select their own serviceproviders and a staff change will be a part of this new program

3) Was consideration to provide the new mentor protege consultant rather than separating theactivities into support services andor technical assistance

Disparity study clarifications andor comments

1) Will WSDOT consider sponsoring legislation to support the policy changes and goalincreases to insure manditory goals wont be necessary

a) If not what measures will you grant primes to operate outside the box (ie entertain bestvalue over low bid modify responsiveness by subs to require adherence to meeting voluntarygoals developing standards around federally funded gccm and other low bid procurementsthat give powers to primes to meet objectives including but not limited to mentor protegerelationships joint ventures bond waiving techniques cash flow assistance material andequipment acquisition manufacturer development specifications that have only DBES orinclude equal number of DBES as non DBES as approved installers etc)

2) Will the disparity study consultant be available for implementation or information gatheringfrom other regions

3) What lessons did WSDOT learn that it did not know from the other study(s)

4) What would WSDOT do different (ie scope time line process approach etc)

5) Will WSDOT be hiring more diverse staff amp professionaltechnical service providers inother departments outside OEO to insure policies commitments and evaluations areperformed in manner that improves diversity that reflects the communities WSDOT serves bythoughtful and legal efforts increase participation thus creating successful outcomes includingpartnerships and collaborations

Daniel J Seydel IIPlatinum Group LLC 2064060844f) 2062999934wwwplatinumbusinessgroupcom

Small Business is the Answer

FREE TRAINING FOR ENTREPRENEURS amp JOB SEEKERS - Polish your skills or makeyour firm standout thanks to the Entrepreneurial Institute of Washington

httpswwwyoutubecomchannelUCKL5YeVxL29HnNxqnb6hmXA

LIKE US on FaceBook if an Active Professional Development workshop provided by EIW

Construction University helps your firm or has benefited you

httpswwwfacebookcomEIWashingtonref=hl

From Bayne Jackie ltBayneJwsdotwagovgtSent Friday December 8 2017 10139 PMTo Daniel Seydel IICc Key Earl daneiwashingtonorg Nadeem Ismail Mussie Tewelde(mteweldehydro2geotechcom) graceflyrightaolcom Mary Wenner Watkinson LarrySubject RE Seydel Dan - WSDOT Disparity Study Presentation Public Testimony Hi Dan Thank you for providing such thoughtful public comments questions and testimony Regarding your public testimony below - I do not believe I am not able to answer questions if theyare public comments Please let me know what part of this email you would like clarification on andwhat part you would like considered public testimony I appreciate your thoughtful consideration of WSDOTrsquos implementation of our civil rights programs Best Regards Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov From Daniel Seydel II [mailtodanplatinumbusinessgroupcom] Sent Thursday December 7 2017 1123 AMTo Bayne Jackie ltBayneJwsdotwagovgtCc Key Earl ltKeyEwsdotwagovgt daneiwashingtonorg Nadeem Ismailltnipaintingearthlinknetgt Mussie Tewelde (mteweldehydro2geotechcom)ltmteweldehydro2geotechcomgt graceflyrightaolcom Mary Wennerltmwenn0108yahoocomgtSubject Seydel Dan - WSDOT Disparity Study Presentation Public Testimony Jackie

Per your request below are my questions and comments some of which were verbally sharedyesterday

Congratulations on receiving the blessing of additional technical assistance dollars andcompleting the DBE Disparity Study per your report

1) Do you have any reports on your outcomes from the past 5 years on DBE support servicesand specific key performance measures from previous years funding (ie how many firmsutilized what was the objectives were objectives met did outcomes meet total satisfaction ifnot why next steps what was the firms capacity before and after services were performed (iesales employees bonding if applicable insurance equipment line of credit if applicablenumbertype of customers how are they doing now etc))

2) What other changes or improvements other than allowing DBES to select their own serviceproviders and a staff change will be a part of this new program

3) Was consideration to provide the new mentor protege consultant rather than separating theactivities into support services andor technical assistance

Disparity study clarifications andor comments

1) Will WSDOT consider sponsoring legislation to support the policy changes and goalincreases to insure manditory goals wont be necessary

a) If not what measures will you grant primes to operate outside the box (ie entertain bestvalue over low bid modify responsiveness by subs to require adherence to meeting voluntarygoals developing standards around federally funded gccm and other low bid procurementsthat give powers to primes to meet objectives including but not limited to mentor protegerelationships joint ventures bond waiving techniques cash flow assistance material andequipment acquisition manufacturer development specifications that have only DBES orinclude equal number of DBES as non DBES as approved installers etc)

2) Will the disparity study consultant be available for implementation or information gatheringfrom other regions

3) What lessons did WSDOT learn that it did not know from the other study(s)

4) What would WSDOT do different (ie scope time line process approach etc)

5) Will WSDOT be hiring more diverse staff amp professionaltechnical service providers inother departments outside OEO to insure policies commitments and evaluations areperformed in manner that improves diversity that reflects the communities WSDOT serves bythoughtful and legal efforts increase participation thus creating successful outcomes includingpartnerships and collaborations

Thank you for your hard work

Daniel J Seydel IIPlatinum Group LLC2064060844f) 2062999934wwwplatinumbusinessgroupcom

Small Business is the Answer

FREE TRAINING FOR ENTREPRENEURS amp JOB SEEKERS - Polish your skills or makeyour firm standout thanks to the Entrepreneurial Institute of Washington

httpswwwyoutubecomchannelUCKL5YeVxL29HnNxqnb6hmXA

LIKE US on FaceBook if an Active Professional Development workshop provided by EIWConstruction University helps your firm or has benefited you

httpswwwfacebookcomEIWashingtonref=hl

From Erin EhlingerTo Bayne JackieSubject Support for WSDOTs proposed DBE goalDate Wednesday December 13 2017 115417 AM

I am writing to support the WSDOT recommended DBE Goal for FHWA contracts of 190 I also want to express my appreciation for the thoroughness of the WSDOT Disparity study and howthe study disclosed the disparity in WSDOT contracts that do not have a DBE or WBE goal ndash furtherreinforcing that all women-owned firms and minority owned firms face equity issues I remain concerned with the methodology required by the Code of Federal Regulations and case lawbecause of the dependence on the availability of firms in the calculation An unintendedconsequence of removing either gender or race from the goal is that many of these firms would goout of business the availability decreases and the formula then results in a smaller DBE goal Pleaselet me know how I can help influence a change to the CFR Thank you Erin Ehlinger

Erin Ehlinger PEPresident

24036 SE 47th StSammamish WA 98029erinehlingersmartcitytrafficcom425-221-0320

From Jackie EtterTo WSDOT Disparity StudySubject Why we need mandatory goalsDate Friday December 1 2017 61859 PM

As a DBE participating in bidding process I have found that regardless of the language which claims to insurethat disadvantaged business enterprises shall not be discriminated against the only way to ensure that this does nothappen is by mandating affirmative action goals Having been overlooked time and time again because of my gender when I have submitted bids that are verycompetitive with other bidders is very frustrating I have had many instances of companies using my price to getmy non DBE competitors to lower theirs The voluntary or laudatory DBE goals do nothing to ensure a level playing fieldThe only way to ensure non-discrimination is through mandatory goals

Jackie EtterWest Star Construction of Spokane

Sent from my iPhone

From Claudia HirscheyTo Key Earl Bayne JackieSubject WSDOT DBE Goal - Comment in supportDate Tuesday December 12 2017 61937 PM

Dear Earl and Jackie The WSDOT recommended DBE Goal for FHWA contracts of 190 is a small and important increasethat can further achieve equity in WSDOTFHWA contracting I am in support of the 19 DBE Goal I also want to express my appreciation for the thoroughness of the WSDOT Disparity study and howthe study disclosed the disparity in WSDOT contracts that do not have a DBE or WBE goal ndash furtherreinforcing that all women-owned firms and minority owned firms face equity issues I remain concerned with the methodology required by the Code of Federal Regulations and case lawbecause of the dependence on the availability of firms in the calculation An unintendedconsequence of removing either gender or race from the goal is that many of these firms would goout of business the availability decreases and the formula then results in a smaller DBE goal Sincerely Claudia S Hirschey PETransportation Consulting Servicesclaudiahirscheycomcastnethttphirscheytcscom2068564988 Mobile

From Nate ThomasTo WSDOT Disparity StudySubject WSDOT Proposes DBE goal of 19Date Thursday December 7 2017 42720 PM

The WSDOT should look into similar ways the Federal Gov has handled the equal opportunity forthose that fall under the DBE status and set aside specific projects for the DBErsquos and moreimportantly UDBErsquos so these companies have better chance of landing contracts Maybe a lot 10 ofthe DBE goal to set aside for only DBEs and other 9 goal met as it is done currently with COA onlarger contracts Nate ThomasSenior EstimatorD 5095688085 | C 5099941156331 North Fancher Road | Spokane WA | 99212

The information contained in this email including any attachments is confidential and may beprivileged It is intended only for the person or entity to which it is addressed and no waiver isintended by sending this email If the reader is not the intended recipient you are herebynotified that any review retransmission dissemination or other use of or taking any action inreliance upon this information is strictly prohibited If you have received this email in errorkindly notify the sender by reply email and delete the original message from any computerThank You

From Brian FujiiTo WSDOT Disparity StudySubject WSDOT propsed DBE GoalsDate Thursday December 7 2017 110638 AM

Good morning Jackie

I wanted to comment on WSDOTs proposed DBE goal to 19 I believe WSDOTs plan toincrease the overall DBE goal to 19 will provide greater opportunities for DBE contractorsin different disciplines to participate in federally funded contracts

Without the new DBE requirement and with Proposition 200 there are limited opportunitiesfor DBE contractors in disciplines different than the typical trucking flagging and rebar Inaddition there are no incentives for general contractors to go out beyond the usual truckingflagging and rebar DBE subcontractors

Increasing the DBE goals will provide opportunities for different DBE contractors in differentdisciplines to participate in WSDOT federally funded projects

Thank you for your time

RespectfullyBrian FujiiPresident Subsurface ConstructionP 2063836478F 2069604639MDBE 4M0024998

From Forman StephanieTo Bayne JackieCc Millar Roger christinenhanmailhousegov Claudia Hirschey Sarah Corbin Jiang Yingle

efaulknerenviroissuescom Diana Giraldo Kelly CheesemanSubject WTS - Disparity Study Comment LetterDate Friday December 15 2017 71020 PMAttachments 2017_Dec 15_WTSCommentLetter_WSDOT DBE Goalpdf

Dear Ms Bayne Please find our attached letter which summarizes the WTS Puget Sound Chapterrsquos support foradvancement of women in transportation and our comment letter regarding the recent DisparityStudy Please feel free to contact me if you have any questions or would like to discuss Sincerely Stephanie S Forman PEWTS Puget Sound President Transportation Project Manager

929 108th Avenue NE Suite 1300Bellevue WA 98004D 4254681548 M 2062291745stephanieformanhdrinccom

December 15 2017

Jackie Bayne Policy and Reporting Manager

Office of Equal Opportunity

Washington State Department of Transportation

PO Box 47314

Olympia WA 98504-7314

Dear Ms Bayne

On behalf of the Puget Sound Chapter of Womenrsquos Transportation Seminar (WTS) we would

like to thank the Washington State Department of Transportation for presenting to our

organization the DBE Disparity Study results We very much appreciated the presentation by Earl

Key Director of WSDOTrsquos Office of Equal Opportunity Teresa Berntsen (Director Office of Minority

and Womens Business Enterprises) as well as Leslie Jones (Director Sound Transit Office of Small

Business Development and Labor Compliance)

Following a review of the WSDOT Disparity Study and as a result of consultation with WTS

International we would like to provide WSDOT with our comments for your consideration

As you know WTS is an organization focused exclusively on attracting retaining and advancing

women in transportation By the year 2018 there will be thousands of vacancies in the

transportation industry for qualified professionals and while women account for more than half of

the worldrsquos workforce they are a very small minority in transportation disciplines

We are pleased that the outcome of the 2017 Disparity Study that recognizes the on-going barriers

for DBEs including women-owned businesses in transportation The WSDOT recommended DBE

Goal of 190 is a small and important increase that can further achieve equity in WSDOTFHWA

contracting We are also pleased that the 2017 Disparity Study has documented the disparity in

WSDOT contracts that do not have a DBE or WBE goal ndash further reinforcing that all women-owned

firms and minority owned firms face equity issues We are encouraged that the WSDOT has asked

FHWA to rescind the 2016 waiver

While WTSrsquo mission is specific to the advancement of women we are a race-neutral organization To

this end we are also deeply concerned about the underutilization of minority owned firms There is

no equity or ldquofair playing fieldrdquo without equity for all gender and races We remained concerned with

the methodology required by the Code of Federal Regulations and case law because of the

dependence on the availability of firms in the calculation An unintended consequence of removing

either gender or race from the goal is that many of these firms would go out of business the

availability decreases and the formula then results in a smaller DBE goal This consequence is

contrary to our mission

We look forward to our continued participation in WSDOTrsquos DBE advisory group we are anticipating

notice that the 2016 waiver has been rescinded and how we can work together to continue

advancing minority and women-owned firms in the transportation field

Sincerely

WTS Puget Sound Chapter

Stephanie Forman

President

C Roger Millar Secretary WSDOT

C Representative Adam Smith 9th Congressional District Washington co Christine Nhan

WTS Puget Sound Chapter

PO Box 3461

Bellevue Washington 98009

From Dave Gent - WAPATo Bayne JackieCc Tom GaetzSubject WAPA Public Comments - RE WSDOT FHWA Disadvantaged Business Enterprise Proposed GoalDate Friday December 15 2017 14119 PMAttachments 12152017 DBE Proposed Goal - WAPA Public Comments Letterpdf

Good afternoon Jackie Please find attached WAPArsquos ldquofor the public recordrdquo comments with respect to WSDOTrsquos proposedDBE Goals FHWA funded work I assume that the Master DBE Directory was not sent to you this week so as a result we were notable to review the directory before the close of the public comment period That fact is noted withinour comment letter Thank you for your efforts Have a good weekend

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Friday December 8 2017 1219 PMTo Dave Gent - WAPA ltdavegentasphaltwacomgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hello Dave WSDOT did not take possession of this directory as part of our review process We will provide youwith the records without submitting a formal request However we need to get them from theconsultant first I will hopefully have them to provide next week I will keep you updated on therequest Have a nice weekend Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal Opportunity

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

December 15 2017

Jackie Bayne Policy Manager WSDOT Office of Equal Opportunity Delivered via e-mail to BayneJwsdotwagov RE Public Comment (as requested) to Proposed Overall DBE Goal for the FHWA (2018 ndash 2020) Ms Bayne Thank you for your presentation via webinar on December 5 2017 outlining WSDOTrsquos evaluation process used to determine the proposed overall DBE goal for the FHWA Thank you also for the Colette Holt amp Associates (CHA) DBE Advisory Group presentation made on September 14 2017 Both presentations helped to distill the findings of the 2017 Disparity Study produced by CHA In response to Earl Keyrsquos initial informal request to comment on the proposed overall DBE goal made during the DBE Advisory Committee teleconference held on October 12th we provided a list of reasons that we believe justify a lower DBE goal than is now being proposed Our initial response to Mr Keyrsquos request did not serve to influence WSDOT and the current proposed goal remains at 190 The arguments provided on October 12th against the significant increase in the proposed DBE goal (versus the previous goal and recent historic DBE participation) are repeated and supplemented below and will serve as the Asphalt Pavement Associationrsquos (WAPArsquos) official public comments

In concert with WSDOT and the OWMBE WAPA and the construction firms that WAPA represents have demonstrated a commitment to the principals of equal opportunity for all ldquoready willing and ablerdquo firms for the entire history that our DBE program has been in place WAPA has continuously demonstrated its commitment to the goals of the DBE program and for increasing the representation of disadvantaged groups within our industry as both workers and owners of firms Please recognize that WAPArsquos oversight and critique of the DBE program has always attempted to balance the principals of fair and open competition with the practical aspects of the low bid compressed schedule high performance standards demanded within the WSDOT marketplace Our comments below are meant to enhance WSDOTrsquos and OWMBErsquos understanding of the market and to hopefully have WSDOT fully consider all of the dynamics that are at play when proposing its Triennial DBE goal for FHWA projects Current DBE Capacity vs Historically Robust Market In advocating for a realistic and defensible DBE goal it has always been WAPArsquos position that it is paramount that the realities of the marketplace and true certified DBE subcontracting capacity should be a primary standard While a ldquostretchrdquo goal may appear to be progressive on its face it comes with consequences for all of the parties involved in the WSDOT federal aid contracting arena To balance the dynamics of the WSDOT contracting system the DBE goal should be tempered with the realities of the market and with a true measure of the underlying effectiveness of the DBE support services available to contractors

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 2 of 6 The first point of fact that has not been given any apparent consideration by WSDOT in its evaluation of the current capacity of certified DBErsquos is that there is an historically robust workload scheduled to be performed in the 2017 through 2022 time-frame particularly in the Puget Sound ldquoEverett to Olympiardquo corridor By WSDOTrsquos own estimates (see Attachment A) public works construction project starts in the 2018 to 2022 time-frame in this region will exceed $333 billion (B) counting the work projected from just five public entities WSDOT will be taking a decidedly ldquoback seatrdquo role during this period to Sound Transit which will have construction project starts of $226B vs WSDOTrsquos projected volume of $67B WSDOTrsquos summary publication titled Washington State Department of Transportations Proposed Federal Highway Administration Triennium Disadvantaged Business Enterprise Goal Federal Fiscal Years 2018-2020 states correctly that ldquoIncluded among the types of evidence that must be considered are the current capacity of DBEs to perform work on WSDOTrsquos federally-assisted contracts as measured by the volume of work DBEs have performed in recent yearshelliprdquo (Step Two Adjustment discussion) With the Sound Transit program being over 300 larger than the total WSDOT program in this region a sober assessment of true certified DBE capacity in the next three years needs to be considered by WSDOT If the huge construction boom over the next five years does not prompt a Step Two Adjustment then it becomes obvious that the realities of the market are being ignored by WSDOT for DBE goal setting Put another way if the 2018 through 2022 level of contracting activity does not warrant a goal adjustment what will DBE Access Barriers Not Yet Addressed The CHA 2017 Disparity Study points out multiple recommendations in Section VII that impact DBE participation and access to the market Assessments relating to those impacts and the state of maturity in addressing the CHA recommendations should be considered when assessing the DBE goal Many of the CHA recommendation have not been adequately addressed at this point in time Some of the prime examples are listed below Increase Certification and Expertise ndash The Disparity Study as explained to us includes all minority- (MBE)

and women-owned (WBE) firms that could be readily identified that perform work within Washington State and that perform work within the NAICS code framework CHA developed to cover WSDOT project work During the various presentations relating to the Disparity Study WSDOT representatives said that outreach to currently non-certified MBE amp WBE firms has increased and that WSDOT aspires to bolster its list of certified firms in the future but this effort is just beginning and the success of the effort needs to be means tested against the broader population of MBE amp WBE firms included in the CHA base line evaluation As the Disparity Study uses a much broader population of MBE WBE contractors to arrive at its conclusions (both non-certified firms and firms too large for certification) it follows that the calculated DBE proposed goal is overstated to include capacity that does not currently exist within WSDOTrsquos certified DBE framework Unless OMWBE is experiencing sudden and unprecedented success in recruiting new MBEWBE firms the DBE goal should be adjusted downward to recognize that the ldquoready willing and ablerdquo contractors that WSDOT has certified is only a subset of the total MBEWBE contracting population used in the Disparity Study evaluation

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 3 of 6

Until the promised WSDOT outreach registration efforts result in a substantial increase in available certified DBE firms it is premature to count the entire population of minority- and women-owned contractors as available to participate in WSDOT contracting It is unreasonable for WSDOT to project availability capacity using the entire MBEWBE population when only its currently truncated list of certified firms is acceptable to count toward the DBE goal

A corollary to the Increase Certification and Expertise discussion above is that the calculation of the Base Figure evidently includes the broadest practical population of MBE and WBE firms identifiable (without a review of the CHA Master DBE Directory which has not been supplied prior to the close of the public comment period the scope of the directory cannot be ascertained) If this directory includes a large population of MBEWBE firms that are not certified or are too large to be certified then the Base Figure calculation should be adjusted to reflect that certified DBE firms are a fraction of the total MBEWBE firms used to arrive at the 19 suggested DBE goal With respect to the CHA Master Directory it is our understanding the WSDOT was not given the directory as part of its evaluation of the Disparity Study and it follows that it did not evaluate the proposed DBE goal in the context of the CHA Master DBE Directory In our opinion an informed decision on adjusting the CHA baseline goal calculation can only be done after an extensive evaluation of the CHA Master DBE Directory If this has not been done WSDOT has not exercised due diligence in evaluating the context and underpinnings of the CHA Disparity Study and a certified DBE Triennium goal proposal to the FHWA is premature Increase Contract ldquoUnbundlingrdquo ndash If this proposed strategy (suggested by the CHA Study) is undertaken

certified DBE Subcontractors currently available will be engaged as Prime Contractors and the value of their prime contracts will bolster the overall percentage of certified DBE contracting but a systematic effort and strategy to ldquounbundlerdquo has not been articulated by WSDOT The key question of how this effort can be accomplished without increased cost to the taxpayers and increased inconvenience for the traveling public As noted in the CHA study (page 129 final paragraph) ldquoUnbundling must be conducted however within the constraints of the need to ensure efficiency and limit cost to the taxpayersrdquo As of this writing no overarching strategy for further unbundling with proper accountability has been articulated by WSDOT to the DBE Advisory Group

Review Insurance and Experience Requirements ndash Impediments to certified DBE participation due to

necessary insurance and experience standards cannot be solved by the prime contracting community Unless and until WSDOT puts together programs to address the burden of the substantial risks shouldered by Prime Contractors on WSDOT contracts barriers for streamlined utilization of certified DBE firms will continue to exist These market driven barriers will continue to dampen the availability of certified DBE Subcontractors that are able to perform within WSDOTrsquos strict criteria without unduly transferring risk to the Prime Contractor

Better Partnering to Overcome DBE Failures to Perform ndash Prime Contractors are held fully responsible to maintain the project schedule and are subject to project liquidated damages even when they may be struggling to deal with Subcontractor performance issues It is well-established that replacing a certified ldquocondition of awardrdquo (COA) DBE Subcontractor is very onerous and likely very costly to the Prime Contractor Unfortunately the imposition of strict and often counter-productive commercially useful function (CUF) rules often compound this issue as Prime Contractors cannot help COA DBE Subcontractors work through capacity expertise or time-related issues that impact timely performance

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 4 of 6

WSDOT needs to be a much better partner in the process of dealing with under-performing or non-performing certified DBE Subcontractors The current standard operational procedure places all of the exposure for non-performance onto the Prime WSDOT does not have an equitable system to account for non-performing or under-performing certified DBE Subcontractors hired as a condition of award (COA)

Performance Information and Training ndash Commercially useful function rules (CUF) and the lack of clear benchmark definitions for good faith effort (GFE) standards remain barriers for improving accountability within the DBE system and in turn lead to distorted DBE participation rates These items remain amorphous due to lack of training or lack of historic information Chronic uncertainty exists regarding both of these items Until WSDOT changes and improves its approach to provide transparency and certainty for both the prime bidding amp subcontracting parties true certified DBE capacity will continue to be masked and the resultant higher subcontracting costs associated with a distorted marketplace will continue to be hidden

WAPA respectfully suggests that simply adding an ldquoEstimated DBE Subcontract Premiumrdquo line to the current DBE bid forms would help to establish benchmarks that could begin to be used to ldquomeans testrdquo good faith efforts If this information had been gathered over the last 20 years of the DBE program meaningful GFE standards could have been developed and could be in place today

An in-depth review of CUF standards would also provide clarity For instance it is unclear why force account items performed by certified DBEs are currently counted at only 50 of the value of the work How was this benchmark established Has it been reviewed since imposed Did it ldquosolverdquo whatever inequity WSDOT was trying to address Better clarity may lead to more expanded opportunities for certified DBE Subcontractors

Enhanced Supportive Services and Business Development Programs ndash Unless and until stronger programs of these types are shown to be effective in boosting certified DBE business development increased DBE participation due to stronger business acumen should not be relied upon when setting the new DBE goal

Does OMWBE have a reasonable expectation that future plans for enhanced and expanded programs will be more successful than those employed in the past Assuming that certified DBE Subcontractors will be better prepared to deal with the WSDOT contracting environment than in the past should not be relied upon to boost DBE participation goals Especially troubling were the multiple references within the CHA report highlighting that DBEs believe that the staff at OMWBE lack a deep knowledge about the highway construction industry (eg Study page 129 2nd paragraph) Does OMWBE have a path forward that will address this issue and thus improve supportive services impacts

Develop a Bonding and Financing Program for SBEs ndash This is completely outside of the prime contracting

communityrsquos scope of influence WSDOT must find a way to institute changes that both protect the taxpayer and help increase certified DBE bonding capacity and access to financing ndash very large hurtles To assume that these hurtles can effectively be overcome within the 2018 ndash 2020 time frame when they have been chromic issues for the past 20 plus years of DBE program development is not rational

A helpful innovation would be for WSDOT to underwrite performance and payment bonds for certified DBE firms or to create promote a system that helps certified DBE firms obtain private bonding Bridging the gap to address capital access and performance risks (bonding) must be championed by WSDOT

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 5 of 6

Base Figure Adjustment to Address Available Subcontract Volume and DBE Prime Contracts It is a fact that mid- to large-sized MBEWBE firms that compete both as Prime Contractors and as Subcontractors are not eligible to be OMWBE certified DBEs Further the current amount of contract unbundling for greater DBE access to WSDOT prime contracting (see below) accounts for a very low dollar volume of prime contracts performed by certified DBEs Finally by specification (WSDOT standard specification 1-081) Prime Contractors are obligated to perform 30 of the total volume of the work (less specialty work) or stated another way a maximum of 70 of the dollar volume on WSDOT projects is typically available to award to subcontractors These market dynamics are NOT addressed in the Disparity Study A responsible DBE goal made absent of these facts should not be implemented A reasonable adjustment to the proposed 19 DBE goal is presented below

bull The percent of WSDOT prime contracts awarded to certified DBE firms is likely less than 5 by total WSDOT

contract volume Assuming this approximation is valid (likely very conservative) then the amount of WSDOT contract work available to certified DBE firms via subcontracting should be adjusted to account for the factors outlined above The Base Figure (19) should be adjusted to recognize that a 70 maximum subcontractor participation is available (in the numerator) and to account for the assumed 5 certified DBE prime contracts in the denominator Reasonable Base Figure Adjustment 19 (proposed) x 70 subcontracts available divide 95 of Non-Certified DBEs as Prime Contract Volume = 190 x 0737 = 140 adjusted goal This is an adjustment based on the practical dynamics of the WSDOT contracting system and it represents a more realistic look at the true subcontract volume that is available for Prime Contractors to award to certified DBE firms

Conclusions

Until the items listed above are addressed and in place it is not reasonable to believe that DBE goals can be increased by nearly 163 (from 117 to 190) When the projected robust public works contracting market is appropriately considered the true availability of certified DBE Subcontractors for WSDOT contracts will be truncated due to demand across all public works sectors With multiple strong public works programs competing for a limited population of certified DBEs the ability to meet increased WSDOT DBE goals will be severely challenged Without very clear concise and transparent good faith effort rules the ability to address DBE goals that greatly overestimate true near term certified DBE capacity will result in non-attainment bid day chaos failures to perform andor rapidly increased pricing

The clear conclusion is that at this point in time under the current circumstances without effectively instituted new programs rules procedures that could enhance the certified DBE programrsquos overall effectiveness we believe that the DBE goal should remain at or near 12 As OMWBE documents and demonstrates its future successes in improving access and eliminating capacity barriers only then should the DBE goal be re-evaluated and increased

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 6 of 6

In closing please remember that it is rare that the contracting community is asked our opinion with respect to the WSDOTrsquos DBE policies and so this letter is somewhat a vehicle to highlight collective concerns It is our belief that the majority of the Prime Contractors in Washington state support the objective of creating a level playing field for ready willing and able DBEs

If the level playing field is not yet possible in the absence of the DBE program then the key is to set realistic goals that recognize reflect and address the hard realities and market dynamics imposed by WSDOTrsquos bedrock environment of awarding contracts to the lowest cost responsible and responsive Contractor

Respectfully submitted Washington Asphalt Pavement Association

David Gent Tom Gaetz Executive Director Senior Advisor

Attachment A ndash WSDOT Central Puget Sound Public Works Contracting Projection 2018 - 2022

Con

stru

ctio

n Pr

ojec

t Sta

rts

2018

-202

2S

ound

Tra

nsit

$22

6 B

SD

OT

$08

B

Tran

sit

amp O

ther

s$1

7 B

WS

DO

T$6

7 B

Por

t of

Sea

ttle

$15

B

TOTA

L$3

33

B

Source N

ov 1

9 2

017

pres

enta

tion

to W

APA

Ann

ual M

eetin

g

Attachment A

Work (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Dave Gent - WAPA [mailtodavegentasphaltwacom] Sent Thursday December 7 2017 144 PMTo Bayne Jackie ltBayneJwsdotwagovgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hi again Jackie Irsquom fine thanks and hope you are the same Interesting The Master DBE Directory is the basis for and integral to the conclusions of the DisparityStudy Is it not then part of the information needed to fully review and comment on the DisparityStudy Was it not provided by CHA to WSDOT for review We are trying to fully understand thestudy and if this directory was part of the study why would it need to be obtained by a publicrecords disclosure It should be in the public domain and not restricted from ease of access If you are sure that a public records request is needed Irsquoll start that process but we will need tonote that point of fact when we submit our public comments If you are able to reconsider please let me know Respectfully

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Thursday December 7 2017 126 PMTo Dave Gent - WAPA ltdavegentasphaltwacomgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hello Dave I hope you are doing well

That information would likely be obtained through a public disclosure request Best Regards Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Dave Gent - WAPA [mailtodavegentasphaltwacom] Sent Thursday December 7 2017 113 PMTo Bayne Jackie ltBayneJwsdotwagovgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Jackie Can you please provide an electronic file or provide a weblink for the Master DBE Directory thatColette Holt amp Associates developed for the WSDOT Disparity Study 2017 (first referred to on Page 8of the Disparity Study) I did not see a link to this Master DBE Directory within the study Thanks

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Friday October 27 2017 1118 AMTo Kenyon Wendy ltKenyonWwsdotwagovgt Adams E W ltewadamssystemsclcomgtAdekoyaAndrew ltandrewadekoyabccomgt AlyssaBalllegwagov Anindita Mitraltamitracrea-affiliatescomgt APRISeattlehotmailcom Armstrong CharlotteltCharlieAatgwagovgt Ato Apiafi Architects PLLC ltatoaatoapiaficomgt benzfanwaorgBerntsen Teresa (OMWBE) ltTeresaBomwbewagovgt Billingsley Andrealtbillinawsdotwagovgt Bramlet Erica ltEricaBramletlegwagovgt Brooks Julius

ltBrooksJwsdotwagovgt Brown Jason ltjbrownldccorpcomgt bwallacenwlaborersorgCamden Allison ltCamdenAwsdotwagovgt carlllivingstongmailcom Cerda OscarltCerdaOwsdotwagovgt Christopher Chris ltChristCwsdotwagovgt ckerneycaawagovdanplatinumbusinessgroupcom davegentasphaltwacom David BalltDavidsignsnowmillcreekcomgt Davis Khalia ltDavisKhwsdotwagovgt Davis RaShelle (GOVltrashelledavisgovwagovgt Dayton Jo ltDaytonJwsdotwagovgt ddhondtagcwacomDebbieDriverlegwagov Dennis ltdennisahlkiewitcomgt dmcleodnwlaborersorgdrart6651gmailcom Duncan Enid lthigradeincgmailcomgt EltonltEltonwashingtonstatetruckingcomgt eprincecaawagov flemosldccorpcomfmartineznwmtnmsdcorg geoffshookatkncom glovelady ltgloveladyexcelglovescomgtGrabow Katie ltkgrabowsystemsclcomgt Guilfucci Jackie ltJackieGuilfucciskanskacomgt HealyLinda ltHealyLwsdotwagovgt Higginbotham Breanne ltHigginBwsdotwagovgt HirscheyClaudia ltclaudiahirscheycomcastnetgt Holt Colette ltcoletteholtmwbelawcomgt Huff JohnltHuffJwsdotwagovgt Iniguezchawagov JacksonMaynardlegwagov Jimmy Matta(jmattaalcantarassoccom) ltjmattaalcantarassoccomgt kellywickergovwagov Key EarlltKeyEwsdotwagovgt Kirk Jon ltjkirkwhhnfscomgt Kris Purrier ltkpurrierhwageocomgtleewabuildingtradesorg lesliejonessoundtransitorg Liz Evans ltlevansagcwacomgt LopezErin lterinlopezdeswagovgt Martha Cerna ltMarthaPSLCCORGgt Martin-Arnold EdwinaltMartinEwsdotwagovgt Mary Lerdahl ltmarydbeelectricinccomgt McCarty Hannahlthannahmccartylegwagovgt Melissa L Boyles ltmelissaboylesmwbelawcomgt Metcalf KeithltMetcalKwsdotwagovgt michaelicapaawagov Michelle ltMichelleTTCC26netgt MillarRoger ltMillarRwsdotwagovgt Nakamura Jason ltjasonnakamura1-alliancecomgtNavarroLportseattleorg olliepmt-solutionscom pastorbanksesbctacomacom PatrickHughes ltphugheshughesgroupbizgt Petersen Jodi (FHWA) ltJodiPetersendotgovgtrabbottliunaorg rcarmsteadgmailcom ricemportseattleorg Riley D ltdrileylydigcomgtSeling ltSelingjpfranciscomgt sherryharrisergosynchcom Stell MellodyltStellMwsdotwagovgt terigobintulaliptribes-nsngov timwilliamfactorycom tinaterra-tdicom tkellyldccorpcom tomgaetzmsncom vcollinsacec-waorgverlenejazzmsncom Wang Albert ltWangAatgwagovgt Waugh GregltGregWMaxKuneyComgt Yates Henry ltYatesHWSDOTWAGOVgtCc Tom Gaetz lttomgaetzmsncomgt Dave Gent - WAPA ltdavegentasphaltwacomgt VanCollins ltvcollinsacec-waorggt Daniel Seydel II ltdanplatinumbusinessgroupcomgt MaynardJackson ltJacksonMaynardlegwagovgt Carl Livingston ltcarlllivingstongmailcomgt DonMcLeod ltdmcleodnwlaborersorggt JIMMY MATTA ltjimmymattamsncomgt Prince Ed(CAAA) lteprincecaawagovgt David DHondt ltddhondtagcwacomgt Irene Reyesltgloveladyexcelsupplycompanycomgt McDaniel Craig ltMcDaniCwsdotwagovgtsherryharrisergosynchcomSubject WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Good morning On Monday October 30th WSDOT will be releasing the proposed overall Federal HighwayAdministration Disadvantaged Business Enterprise goal attached for public comment throughDecember 15 2017 This overall DBE goal is based upon the recently completely DBE ProgramDisparity Study WSDOT is proposing a 19 percent overall DBE participation goal on Federal Highway

Administration-funded projects for federal fiscal years 2018 through 2020 DBE goals fortransportation projects that receive federal funds represent a percentage of the value of work inwhich minority- and women-owned businesses should participate Once finalized and submitted toFHWA early next year the goal will be effective through Sept 30 2020

The purpose of the DBE program is to create a level playing field for firms owned and operated bydisadvantaged individuals wanting to participate in federally assisted highway transit and aviationprograms The attached overall DBE goal is for FHWA funded projects WSDOT will be updating theFTA and FAA overall DBE goals in the near future

If you have any questions please contact Earl Key Director of the Office of Equal Opportunity at3607057091 or KeyEwsdotwagov Thank you Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

  • Proof-Of-Publicationpdf
    • Mediapdf
      • AGC
      • Daily Journal
      • Daily Medium
      • DBEGood
      • OMWBE
      • Seattle Medium
      • Tabor 100
      • The Chronicle
      • Tukwila
        • King County
          • Public-Comments-20180111pdf
            • 19 DBE Requirement(1)
            • AGC Comments on Proposed 10 Goad
            • Backstrom Curb amp Sidewalk
            • comments on WSDOT proposed DBE goal
            • Cowlitz County Public Works
            • DBE Contracting goals
            • DBE Goal
            • DBE Program Disparity Study
            • Disparity Study Comments from City of Spokane
            • FW_ WSDOT News - WSDOT seeks comments on propos
            • Proposed DBE Goals
            • RE_ DBE Contracting Goal Comments
            • Re_ DBE Goal Comments
            • Re_ Seydel Dan - WSDOT Disparity Study Present
            • Support for WSDOTs proposed DBE goal
            • Why we need mandatory goals
            • WSDOT DBE Goal - Comment in support
            • WSDOT Proposes DBE goal of 19
            • WSDOT propsed DBE Goals
            • WTS - Disparity Study Comment Letter

Construction University helps your firm or has benefited you

httpswwwfacebookcomEIWashingtonref=hl

From Bayne Jackie ltBayneJwsdotwagovgtSent Friday December 8 2017 10139 PMTo Daniel Seydel IICc Key Earl daneiwashingtonorg Nadeem Ismail Mussie Tewelde(mteweldehydro2geotechcom) graceflyrightaolcom Mary Wenner Watkinson LarrySubject RE Seydel Dan - WSDOT Disparity Study Presentation Public Testimony Hi Dan Thank you for providing such thoughtful public comments questions and testimony Regarding your public testimony below - I do not believe I am not able to answer questions if theyare public comments Please let me know what part of this email you would like clarification on andwhat part you would like considered public testimony I appreciate your thoughtful consideration of WSDOTrsquos implementation of our civil rights programs Best Regards Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov From Daniel Seydel II [mailtodanplatinumbusinessgroupcom] Sent Thursday December 7 2017 1123 AMTo Bayne Jackie ltBayneJwsdotwagovgtCc Key Earl ltKeyEwsdotwagovgt daneiwashingtonorg Nadeem Ismailltnipaintingearthlinknetgt Mussie Tewelde (mteweldehydro2geotechcom)ltmteweldehydro2geotechcomgt graceflyrightaolcom Mary Wennerltmwenn0108yahoocomgtSubject Seydel Dan - WSDOT Disparity Study Presentation Public Testimony Jackie

Per your request below are my questions and comments some of which were verbally sharedyesterday

Congratulations on receiving the blessing of additional technical assistance dollars andcompleting the DBE Disparity Study per your report

1) Do you have any reports on your outcomes from the past 5 years on DBE support servicesand specific key performance measures from previous years funding (ie how many firmsutilized what was the objectives were objectives met did outcomes meet total satisfaction ifnot why next steps what was the firms capacity before and after services were performed (iesales employees bonding if applicable insurance equipment line of credit if applicablenumbertype of customers how are they doing now etc))

2) What other changes or improvements other than allowing DBES to select their own serviceproviders and a staff change will be a part of this new program

3) Was consideration to provide the new mentor protege consultant rather than separating theactivities into support services andor technical assistance

Disparity study clarifications andor comments

1) Will WSDOT consider sponsoring legislation to support the policy changes and goalincreases to insure manditory goals wont be necessary

a) If not what measures will you grant primes to operate outside the box (ie entertain bestvalue over low bid modify responsiveness by subs to require adherence to meeting voluntarygoals developing standards around federally funded gccm and other low bid procurementsthat give powers to primes to meet objectives including but not limited to mentor protegerelationships joint ventures bond waiving techniques cash flow assistance material andequipment acquisition manufacturer development specifications that have only DBES orinclude equal number of DBES as non DBES as approved installers etc)

2) Will the disparity study consultant be available for implementation or information gatheringfrom other regions

3) What lessons did WSDOT learn that it did not know from the other study(s)

4) What would WSDOT do different (ie scope time line process approach etc)

5) Will WSDOT be hiring more diverse staff amp professionaltechnical service providers inother departments outside OEO to insure policies commitments and evaluations areperformed in manner that improves diversity that reflects the communities WSDOT serves bythoughtful and legal efforts increase participation thus creating successful outcomes includingpartnerships and collaborations

Thank you for your hard work

Daniel J Seydel IIPlatinum Group LLC2064060844f) 2062999934wwwplatinumbusinessgroupcom

Small Business is the Answer

FREE TRAINING FOR ENTREPRENEURS amp JOB SEEKERS - Polish your skills or makeyour firm standout thanks to the Entrepreneurial Institute of Washington

httpswwwyoutubecomchannelUCKL5YeVxL29HnNxqnb6hmXA

LIKE US on FaceBook if an Active Professional Development workshop provided by EIWConstruction University helps your firm or has benefited you

httpswwwfacebookcomEIWashingtonref=hl

From Erin EhlingerTo Bayne JackieSubject Support for WSDOTs proposed DBE goalDate Wednesday December 13 2017 115417 AM

I am writing to support the WSDOT recommended DBE Goal for FHWA contracts of 190 I also want to express my appreciation for the thoroughness of the WSDOT Disparity study and howthe study disclosed the disparity in WSDOT contracts that do not have a DBE or WBE goal ndash furtherreinforcing that all women-owned firms and minority owned firms face equity issues I remain concerned with the methodology required by the Code of Federal Regulations and case lawbecause of the dependence on the availability of firms in the calculation An unintendedconsequence of removing either gender or race from the goal is that many of these firms would goout of business the availability decreases and the formula then results in a smaller DBE goal Pleaselet me know how I can help influence a change to the CFR Thank you Erin Ehlinger

Erin Ehlinger PEPresident

24036 SE 47th StSammamish WA 98029erinehlingersmartcitytrafficcom425-221-0320

From Jackie EtterTo WSDOT Disparity StudySubject Why we need mandatory goalsDate Friday December 1 2017 61859 PM

As a DBE participating in bidding process I have found that regardless of the language which claims to insurethat disadvantaged business enterprises shall not be discriminated against the only way to ensure that this does nothappen is by mandating affirmative action goals Having been overlooked time and time again because of my gender when I have submitted bids that are verycompetitive with other bidders is very frustrating I have had many instances of companies using my price to getmy non DBE competitors to lower theirs The voluntary or laudatory DBE goals do nothing to ensure a level playing fieldThe only way to ensure non-discrimination is through mandatory goals

Jackie EtterWest Star Construction of Spokane

Sent from my iPhone

From Claudia HirscheyTo Key Earl Bayne JackieSubject WSDOT DBE Goal - Comment in supportDate Tuesday December 12 2017 61937 PM

Dear Earl and Jackie The WSDOT recommended DBE Goal for FHWA contracts of 190 is a small and important increasethat can further achieve equity in WSDOTFHWA contracting I am in support of the 19 DBE Goal I also want to express my appreciation for the thoroughness of the WSDOT Disparity study and howthe study disclosed the disparity in WSDOT contracts that do not have a DBE or WBE goal ndash furtherreinforcing that all women-owned firms and minority owned firms face equity issues I remain concerned with the methodology required by the Code of Federal Regulations and case lawbecause of the dependence on the availability of firms in the calculation An unintendedconsequence of removing either gender or race from the goal is that many of these firms would goout of business the availability decreases and the formula then results in a smaller DBE goal Sincerely Claudia S Hirschey PETransportation Consulting Servicesclaudiahirscheycomcastnethttphirscheytcscom2068564988 Mobile

From Nate ThomasTo WSDOT Disparity StudySubject WSDOT Proposes DBE goal of 19Date Thursday December 7 2017 42720 PM

The WSDOT should look into similar ways the Federal Gov has handled the equal opportunity forthose that fall under the DBE status and set aside specific projects for the DBErsquos and moreimportantly UDBErsquos so these companies have better chance of landing contracts Maybe a lot 10 ofthe DBE goal to set aside for only DBEs and other 9 goal met as it is done currently with COA onlarger contracts Nate ThomasSenior EstimatorD 5095688085 | C 5099941156331 North Fancher Road | Spokane WA | 99212

The information contained in this email including any attachments is confidential and may beprivileged It is intended only for the person or entity to which it is addressed and no waiver isintended by sending this email If the reader is not the intended recipient you are herebynotified that any review retransmission dissemination or other use of or taking any action inreliance upon this information is strictly prohibited If you have received this email in errorkindly notify the sender by reply email and delete the original message from any computerThank You

From Brian FujiiTo WSDOT Disparity StudySubject WSDOT propsed DBE GoalsDate Thursday December 7 2017 110638 AM

Good morning Jackie

I wanted to comment on WSDOTs proposed DBE goal to 19 I believe WSDOTs plan toincrease the overall DBE goal to 19 will provide greater opportunities for DBE contractorsin different disciplines to participate in federally funded contracts

Without the new DBE requirement and with Proposition 200 there are limited opportunitiesfor DBE contractors in disciplines different than the typical trucking flagging and rebar Inaddition there are no incentives for general contractors to go out beyond the usual truckingflagging and rebar DBE subcontractors

Increasing the DBE goals will provide opportunities for different DBE contractors in differentdisciplines to participate in WSDOT federally funded projects

Thank you for your time

RespectfullyBrian FujiiPresident Subsurface ConstructionP 2063836478F 2069604639MDBE 4M0024998

From Forman StephanieTo Bayne JackieCc Millar Roger christinenhanmailhousegov Claudia Hirschey Sarah Corbin Jiang Yingle

efaulknerenviroissuescom Diana Giraldo Kelly CheesemanSubject WTS - Disparity Study Comment LetterDate Friday December 15 2017 71020 PMAttachments 2017_Dec 15_WTSCommentLetter_WSDOT DBE Goalpdf

Dear Ms Bayne Please find our attached letter which summarizes the WTS Puget Sound Chapterrsquos support foradvancement of women in transportation and our comment letter regarding the recent DisparityStudy Please feel free to contact me if you have any questions or would like to discuss Sincerely Stephanie S Forman PEWTS Puget Sound President Transportation Project Manager

929 108th Avenue NE Suite 1300Bellevue WA 98004D 4254681548 M 2062291745stephanieformanhdrinccom

December 15 2017

Jackie Bayne Policy and Reporting Manager

Office of Equal Opportunity

Washington State Department of Transportation

PO Box 47314

Olympia WA 98504-7314

Dear Ms Bayne

On behalf of the Puget Sound Chapter of Womenrsquos Transportation Seminar (WTS) we would

like to thank the Washington State Department of Transportation for presenting to our

organization the DBE Disparity Study results We very much appreciated the presentation by Earl

Key Director of WSDOTrsquos Office of Equal Opportunity Teresa Berntsen (Director Office of Minority

and Womens Business Enterprises) as well as Leslie Jones (Director Sound Transit Office of Small

Business Development and Labor Compliance)

Following a review of the WSDOT Disparity Study and as a result of consultation with WTS

International we would like to provide WSDOT with our comments for your consideration

As you know WTS is an organization focused exclusively on attracting retaining and advancing

women in transportation By the year 2018 there will be thousands of vacancies in the

transportation industry for qualified professionals and while women account for more than half of

the worldrsquos workforce they are a very small minority in transportation disciplines

We are pleased that the outcome of the 2017 Disparity Study that recognizes the on-going barriers

for DBEs including women-owned businesses in transportation The WSDOT recommended DBE

Goal of 190 is a small and important increase that can further achieve equity in WSDOTFHWA

contracting We are also pleased that the 2017 Disparity Study has documented the disparity in

WSDOT contracts that do not have a DBE or WBE goal ndash further reinforcing that all women-owned

firms and minority owned firms face equity issues We are encouraged that the WSDOT has asked

FHWA to rescind the 2016 waiver

While WTSrsquo mission is specific to the advancement of women we are a race-neutral organization To

this end we are also deeply concerned about the underutilization of minority owned firms There is

no equity or ldquofair playing fieldrdquo without equity for all gender and races We remained concerned with

the methodology required by the Code of Federal Regulations and case law because of the

dependence on the availability of firms in the calculation An unintended consequence of removing

either gender or race from the goal is that many of these firms would go out of business the

availability decreases and the formula then results in a smaller DBE goal This consequence is

contrary to our mission

We look forward to our continued participation in WSDOTrsquos DBE advisory group we are anticipating

notice that the 2016 waiver has been rescinded and how we can work together to continue

advancing minority and women-owned firms in the transportation field

Sincerely

WTS Puget Sound Chapter

Stephanie Forman

President

C Roger Millar Secretary WSDOT

C Representative Adam Smith 9th Congressional District Washington co Christine Nhan

WTS Puget Sound Chapter

PO Box 3461

Bellevue Washington 98009

From Dave Gent - WAPATo Bayne JackieCc Tom GaetzSubject WAPA Public Comments - RE WSDOT FHWA Disadvantaged Business Enterprise Proposed GoalDate Friday December 15 2017 14119 PMAttachments 12152017 DBE Proposed Goal - WAPA Public Comments Letterpdf

Good afternoon Jackie Please find attached WAPArsquos ldquofor the public recordrdquo comments with respect to WSDOTrsquos proposedDBE Goals FHWA funded work I assume that the Master DBE Directory was not sent to you this week so as a result we were notable to review the directory before the close of the public comment period That fact is noted withinour comment letter Thank you for your efforts Have a good weekend

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Friday December 8 2017 1219 PMTo Dave Gent - WAPA ltdavegentasphaltwacomgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hello Dave WSDOT did not take possession of this directory as part of our review process We will provide youwith the records without submitting a formal request However we need to get them from theconsultant first I will hopefully have them to provide next week I will keep you updated on therequest Have a nice weekend Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal Opportunity

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

December 15 2017

Jackie Bayne Policy Manager WSDOT Office of Equal Opportunity Delivered via e-mail to BayneJwsdotwagov RE Public Comment (as requested) to Proposed Overall DBE Goal for the FHWA (2018 ndash 2020) Ms Bayne Thank you for your presentation via webinar on December 5 2017 outlining WSDOTrsquos evaluation process used to determine the proposed overall DBE goal for the FHWA Thank you also for the Colette Holt amp Associates (CHA) DBE Advisory Group presentation made on September 14 2017 Both presentations helped to distill the findings of the 2017 Disparity Study produced by CHA In response to Earl Keyrsquos initial informal request to comment on the proposed overall DBE goal made during the DBE Advisory Committee teleconference held on October 12th we provided a list of reasons that we believe justify a lower DBE goal than is now being proposed Our initial response to Mr Keyrsquos request did not serve to influence WSDOT and the current proposed goal remains at 190 The arguments provided on October 12th against the significant increase in the proposed DBE goal (versus the previous goal and recent historic DBE participation) are repeated and supplemented below and will serve as the Asphalt Pavement Associationrsquos (WAPArsquos) official public comments

In concert with WSDOT and the OWMBE WAPA and the construction firms that WAPA represents have demonstrated a commitment to the principals of equal opportunity for all ldquoready willing and ablerdquo firms for the entire history that our DBE program has been in place WAPA has continuously demonstrated its commitment to the goals of the DBE program and for increasing the representation of disadvantaged groups within our industry as both workers and owners of firms Please recognize that WAPArsquos oversight and critique of the DBE program has always attempted to balance the principals of fair and open competition with the practical aspects of the low bid compressed schedule high performance standards demanded within the WSDOT marketplace Our comments below are meant to enhance WSDOTrsquos and OWMBErsquos understanding of the market and to hopefully have WSDOT fully consider all of the dynamics that are at play when proposing its Triennial DBE goal for FHWA projects Current DBE Capacity vs Historically Robust Market In advocating for a realistic and defensible DBE goal it has always been WAPArsquos position that it is paramount that the realities of the marketplace and true certified DBE subcontracting capacity should be a primary standard While a ldquostretchrdquo goal may appear to be progressive on its face it comes with consequences for all of the parties involved in the WSDOT federal aid contracting arena To balance the dynamics of the WSDOT contracting system the DBE goal should be tempered with the realities of the market and with a true measure of the underlying effectiveness of the DBE support services available to contractors

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 2 of 6 The first point of fact that has not been given any apparent consideration by WSDOT in its evaluation of the current capacity of certified DBErsquos is that there is an historically robust workload scheduled to be performed in the 2017 through 2022 time-frame particularly in the Puget Sound ldquoEverett to Olympiardquo corridor By WSDOTrsquos own estimates (see Attachment A) public works construction project starts in the 2018 to 2022 time-frame in this region will exceed $333 billion (B) counting the work projected from just five public entities WSDOT will be taking a decidedly ldquoback seatrdquo role during this period to Sound Transit which will have construction project starts of $226B vs WSDOTrsquos projected volume of $67B WSDOTrsquos summary publication titled Washington State Department of Transportations Proposed Federal Highway Administration Triennium Disadvantaged Business Enterprise Goal Federal Fiscal Years 2018-2020 states correctly that ldquoIncluded among the types of evidence that must be considered are the current capacity of DBEs to perform work on WSDOTrsquos federally-assisted contracts as measured by the volume of work DBEs have performed in recent yearshelliprdquo (Step Two Adjustment discussion) With the Sound Transit program being over 300 larger than the total WSDOT program in this region a sober assessment of true certified DBE capacity in the next three years needs to be considered by WSDOT If the huge construction boom over the next five years does not prompt a Step Two Adjustment then it becomes obvious that the realities of the market are being ignored by WSDOT for DBE goal setting Put another way if the 2018 through 2022 level of contracting activity does not warrant a goal adjustment what will DBE Access Barriers Not Yet Addressed The CHA 2017 Disparity Study points out multiple recommendations in Section VII that impact DBE participation and access to the market Assessments relating to those impacts and the state of maturity in addressing the CHA recommendations should be considered when assessing the DBE goal Many of the CHA recommendation have not been adequately addressed at this point in time Some of the prime examples are listed below Increase Certification and Expertise ndash The Disparity Study as explained to us includes all minority- (MBE)

and women-owned (WBE) firms that could be readily identified that perform work within Washington State and that perform work within the NAICS code framework CHA developed to cover WSDOT project work During the various presentations relating to the Disparity Study WSDOT representatives said that outreach to currently non-certified MBE amp WBE firms has increased and that WSDOT aspires to bolster its list of certified firms in the future but this effort is just beginning and the success of the effort needs to be means tested against the broader population of MBE amp WBE firms included in the CHA base line evaluation As the Disparity Study uses a much broader population of MBE WBE contractors to arrive at its conclusions (both non-certified firms and firms too large for certification) it follows that the calculated DBE proposed goal is overstated to include capacity that does not currently exist within WSDOTrsquos certified DBE framework Unless OMWBE is experiencing sudden and unprecedented success in recruiting new MBEWBE firms the DBE goal should be adjusted downward to recognize that the ldquoready willing and ablerdquo contractors that WSDOT has certified is only a subset of the total MBEWBE contracting population used in the Disparity Study evaluation

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 3 of 6

Until the promised WSDOT outreach registration efforts result in a substantial increase in available certified DBE firms it is premature to count the entire population of minority- and women-owned contractors as available to participate in WSDOT contracting It is unreasonable for WSDOT to project availability capacity using the entire MBEWBE population when only its currently truncated list of certified firms is acceptable to count toward the DBE goal

A corollary to the Increase Certification and Expertise discussion above is that the calculation of the Base Figure evidently includes the broadest practical population of MBE and WBE firms identifiable (without a review of the CHA Master DBE Directory which has not been supplied prior to the close of the public comment period the scope of the directory cannot be ascertained) If this directory includes a large population of MBEWBE firms that are not certified or are too large to be certified then the Base Figure calculation should be adjusted to reflect that certified DBE firms are a fraction of the total MBEWBE firms used to arrive at the 19 suggested DBE goal With respect to the CHA Master Directory it is our understanding the WSDOT was not given the directory as part of its evaluation of the Disparity Study and it follows that it did not evaluate the proposed DBE goal in the context of the CHA Master DBE Directory In our opinion an informed decision on adjusting the CHA baseline goal calculation can only be done after an extensive evaluation of the CHA Master DBE Directory If this has not been done WSDOT has not exercised due diligence in evaluating the context and underpinnings of the CHA Disparity Study and a certified DBE Triennium goal proposal to the FHWA is premature Increase Contract ldquoUnbundlingrdquo ndash If this proposed strategy (suggested by the CHA Study) is undertaken

certified DBE Subcontractors currently available will be engaged as Prime Contractors and the value of their prime contracts will bolster the overall percentage of certified DBE contracting but a systematic effort and strategy to ldquounbundlerdquo has not been articulated by WSDOT The key question of how this effort can be accomplished without increased cost to the taxpayers and increased inconvenience for the traveling public As noted in the CHA study (page 129 final paragraph) ldquoUnbundling must be conducted however within the constraints of the need to ensure efficiency and limit cost to the taxpayersrdquo As of this writing no overarching strategy for further unbundling with proper accountability has been articulated by WSDOT to the DBE Advisory Group

Review Insurance and Experience Requirements ndash Impediments to certified DBE participation due to

necessary insurance and experience standards cannot be solved by the prime contracting community Unless and until WSDOT puts together programs to address the burden of the substantial risks shouldered by Prime Contractors on WSDOT contracts barriers for streamlined utilization of certified DBE firms will continue to exist These market driven barriers will continue to dampen the availability of certified DBE Subcontractors that are able to perform within WSDOTrsquos strict criteria without unduly transferring risk to the Prime Contractor

Better Partnering to Overcome DBE Failures to Perform ndash Prime Contractors are held fully responsible to maintain the project schedule and are subject to project liquidated damages even when they may be struggling to deal with Subcontractor performance issues It is well-established that replacing a certified ldquocondition of awardrdquo (COA) DBE Subcontractor is very onerous and likely very costly to the Prime Contractor Unfortunately the imposition of strict and often counter-productive commercially useful function (CUF) rules often compound this issue as Prime Contractors cannot help COA DBE Subcontractors work through capacity expertise or time-related issues that impact timely performance

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 4 of 6

WSDOT needs to be a much better partner in the process of dealing with under-performing or non-performing certified DBE Subcontractors The current standard operational procedure places all of the exposure for non-performance onto the Prime WSDOT does not have an equitable system to account for non-performing or under-performing certified DBE Subcontractors hired as a condition of award (COA)

Performance Information and Training ndash Commercially useful function rules (CUF) and the lack of clear benchmark definitions for good faith effort (GFE) standards remain barriers for improving accountability within the DBE system and in turn lead to distorted DBE participation rates These items remain amorphous due to lack of training or lack of historic information Chronic uncertainty exists regarding both of these items Until WSDOT changes and improves its approach to provide transparency and certainty for both the prime bidding amp subcontracting parties true certified DBE capacity will continue to be masked and the resultant higher subcontracting costs associated with a distorted marketplace will continue to be hidden

WAPA respectfully suggests that simply adding an ldquoEstimated DBE Subcontract Premiumrdquo line to the current DBE bid forms would help to establish benchmarks that could begin to be used to ldquomeans testrdquo good faith efforts If this information had been gathered over the last 20 years of the DBE program meaningful GFE standards could have been developed and could be in place today

An in-depth review of CUF standards would also provide clarity For instance it is unclear why force account items performed by certified DBEs are currently counted at only 50 of the value of the work How was this benchmark established Has it been reviewed since imposed Did it ldquosolverdquo whatever inequity WSDOT was trying to address Better clarity may lead to more expanded opportunities for certified DBE Subcontractors

Enhanced Supportive Services and Business Development Programs ndash Unless and until stronger programs of these types are shown to be effective in boosting certified DBE business development increased DBE participation due to stronger business acumen should not be relied upon when setting the new DBE goal

Does OMWBE have a reasonable expectation that future plans for enhanced and expanded programs will be more successful than those employed in the past Assuming that certified DBE Subcontractors will be better prepared to deal with the WSDOT contracting environment than in the past should not be relied upon to boost DBE participation goals Especially troubling were the multiple references within the CHA report highlighting that DBEs believe that the staff at OMWBE lack a deep knowledge about the highway construction industry (eg Study page 129 2nd paragraph) Does OMWBE have a path forward that will address this issue and thus improve supportive services impacts

Develop a Bonding and Financing Program for SBEs ndash This is completely outside of the prime contracting

communityrsquos scope of influence WSDOT must find a way to institute changes that both protect the taxpayer and help increase certified DBE bonding capacity and access to financing ndash very large hurtles To assume that these hurtles can effectively be overcome within the 2018 ndash 2020 time frame when they have been chromic issues for the past 20 plus years of DBE program development is not rational

A helpful innovation would be for WSDOT to underwrite performance and payment bonds for certified DBE firms or to create promote a system that helps certified DBE firms obtain private bonding Bridging the gap to address capital access and performance risks (bonding) must be championed by WSDOT

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 5 of 6

Base Figure Adjustment to Address Available Subcontract Volume and DBE Prime Contracts It is a fact that mid- to large-sized MBEWBE firms that compete both as Prime Contractors and as Subcontractors are not eligible to be OMWBE certified DBEs Further the current amount of contract unbundling for greater DBE access to WSDOT prime contracting (see below) accounts for a very low dollar volume of prime contracts performed by certified DBEs Finally by specification (WSDOT standard specification 1-081) Prime Contractors are obligated to perform 30 of the total volume of the work (less specialty work) or stated another way a maximum of 70 of the dollar volume on WSDOT projects is typically available to award to subcontractors These market dynamics are NOT addressed in the Disparity Study A responsible DBE goal made absent of these facts should not be implemented A reasonable adjustment to the proposed 19 DBE goal is presented below

bull The percent of WSDOT prime contracts awarded to certified DBE firms is likely less than 5 by total WSDOT

contract volume Assuming this approximation is valid (likely very conservative) then the amount of WSDOT contract work available to certified DBE firms via subcontracting should be adjusted to account for the factors outlined above The Base Figure (19) should be adjusted to recognize that a 70 maximum subcontractor participation is available (in the numerator) and to account for the assumed 5 certified DBE prime contracts in the denominator Reasonable Base Figure Adjustment 19 (proposed) x 70 subcontracts available divide 95 of Non-Certified DBEs as Prime Contract Volume = 190 x 0737 = 140 adjusted goal This is an adjustment based on the practical dynamics of the WSDOT contracting system and it represents a more realistic look at the true subcontract volume that is available for Prime Contractors to award to certified DBE firms

Conclusions

Until the items listed above are addressed and in place it is not reasonable to believe that DBE goals can be increased by nearly 163 (from 117 to 190) When the projected robust public works contracting market is appropriately considered the true availability of certified DBE Subcontractors for WSDOT contracts will be truncated due to demand across all public works sectors With multiple strong public works programs competing for a limited population of certified DBEs the ability to meet increased WSDOT DBE goals will be severely challenged Without very clear concise and transparent good faith effort rules the ability to address DBE goals that greatly overestimate true near term certified DBE capacity will result in non-attainment bid day chaos failures to perform andor rapidly increased pricing

The clear conclusion is that at this point in time under the current circumstances without effectively instituted new programs rules procedures that could enhance the certified DBE programrsquos overall effectiveness we believe that the DBE goal should remain at or near 12 As OMWBE documents and demonstrates its future successes in improving access and eliminating capacity barriers only then should the DBE goal be re-evaluated and increased

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 6 of 6

In closing please remember that it is rare that the contracting community is asked our opinion with respect to the WSDOTrsquos DBE policies and so this letter is somewhat a vehicle to highlight collective concerns It is our belief that the majority of the Prime Contractors in Washington state support the objective of creating a level playing field for ready willing and able DBEs

If the level playing field is not yet possible in the absence of the DBE program then the key is to set realistic goals that recognize reflect and address the hard realities and market dynamics imposed by WSDOTrsquos bedrock environment of awarding contracts to the lowest cost responsible and responsive Contractor

Respectfully submitted Washington Asphalt Pavement Association

David Gent Tom Gaetz Executive Director Senior Advisor

Attachment A ndash WSDOT Central Puget Sound Public Works Contracting Projection 2018 - 2022

Con

stru

ctio

n Pr

ojec

t Sta

rts

2018

-202

2S

ound

Tra

nsit

$22

6 B

SD

OT

$08

B

Tran

sit

amp O

ther

s$1

7 B

WS

DO

T$6

7 B

Por

t of

Sea

ttle

$15

B

TOTA

L$3

33

B

Source N

ov 1

9 2

017

pres

enta

tion

to W

APA

Ann

ual M

eetin

g

Attachment A

Work (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Dave Gent - WAPA [mailtodavegentasphaltwacom] Sent Thursday December 7 2017 144 PMTo Bayne Jackie ltBayneJwsdotwagovgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hi again Jackie Irsquom fine thanks and hope you are the same Interesting The Master DBE Directory is the basis for and integral to the conclusions of the DisparityStudy Is it not then part of the information needed to fully review and comment on the DisparityStudy Was it not provided by CHA to WSDOT for review We are trying to fully understand thestudy and if this directory was part of the study why would it need to be obtained by a publicrecords disclosure It should be in the public domain and not restricted from ease of access If you are sure that a public records request is needed Irsquoll start that process but we will need tonote that point of fact when we submit our public comments If you are able to reconsider please let me know Respectfully

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Thursday December 7 2017 126 PMTo Dave Gent - WAPA ltdavegentasphaltwacomgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hello Dave I hope you are doing well

That information would likely be obtained through a public disclosure request Best Regards Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Dave Gent - WAPA [mailtodavegentasphaltwacom] Sent Thursday December 7 2017 113 PMTo Bayne Jackie ltBayneJwsdotwagovgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Jackie Can you please provide an electronic file or provide a weblink for the Master DBE Directory thatColette Holt amp Associates developed for the WSDOT Disparity Study 2017 (first referred to on Page 8of the Disparity Study) I did not see a link to this Master DBE Directory within the study Thanks

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Friday October 27 2017 1118 AMTo Kenyon Wendy ltKenyonWwsdotwagovgt Adams E W ltewadamssystemsclcomgtAdekoyaAndrew ltandrewadekoyabccomgt AlyssaBalllegwagov Anindita Mitraltamitracrea-affiliatescomgt APRISeattlehotmailcom Armstrong CharlotteltCharlieAatgwagovgt Ato Apiafi Architects PLLC ltatoaatoapiaficomgt benzfanwaorgBerntsen Teresa (OMWBE) ltTeresaBomwbewagovgt Billingsley Andrealtbillinawsdotwagovgt Bramlet Erica ltEricaBramletlegwagovgt Brooks Julius

ltBrooksJwsdotwagovgt Brown Jason ltjbrownldccorpcomgt bwallacenwlaborersorgCamden Allison ltCamdenAwsdotwagovgt carlllivingstongmailcom Cerda OscarltCerdaOwsdotwagovgt Christopher Chris ltChristCwsdotwagovgt ckerneycaawagovdanplatinumbusinessgroupcom davegentasphaltwacom David BalltDavidsignsnowmillcreekcomgt Davis Khalia ltDavisKhwsdotwagovgt Davis RaShelle (GOVltrashelledavisgovwagovgt Dayton Jo ltDaytonJwsdotwagovgt ddhondtagcwacomDebbieDriverlegwagov Dennis ltdennisahlkiewitcomgt dmcleodnwlaborersorgdrart6651gmailcom Duncan Enid lthigradeincgmailcomgt EltonltEltonwashingtonstatetruckingcomgt eprincecaawagov flemosldccorpcomfmartineznwmtnmsdcorg geoffshookatkncom glovelady ltgloveladyexcelglovescomgtGrabow Katie ltkgrabowsystemsclcomgt Guilfucci Jackie ltJackieGuilfucciskanskacomgt HealyLinda ltHealyLwsdotwagovgt Higginbotham Breanne ltHigginBwsdotwagovgt HirscheyClaudia ltclaudiahirscheycomcastnetgt Holt Colette ltcoletteholtmwbelawcomgt Huff JohnltHuffJwsdotwagovgt Iniguezchawagov JacksonMaynardlegwagov Jimmy Matta(jmattaalcantarassoccom) ltjmattaalcantarassoccomgt kellywickergovwagov Key EarlltKeyEwsdotwagovgt Kirk Jon ltjkirkwhhnfscomgt Kris Purrier ltkpurrierhwageocomgtleewabuildingtradesorg lesliejonessoundtransitorg Liz Evans ltlevansagcwacomgt LopezErin lterinlopezdeswagovgt Martha Cerna ltMarthaPSLCCORGgt Martin-Arnold EdwinaltMartinEwsdotwagovgt Mary Lerdahl ltmarydbeelectricinccomgt McCarty Hannahlthannahmccartylegwagovgt Melissa L Boyles ltmelissaboylesmwbelawcomgt Metcalf KeithltMetcalKwsdotwagovgt michaelicapaawagov Michelle ltMichelleTTCC26netgt MillarRoger ltMillarRwsdotwagovgt Nakamura Jason ltjasonnakamura1-alliancecomgtNavarroLportseattleorg olliepmt-solutionscom pastorbanksesbctacomacom PatrickHughes ltphugheshughesgroupbizgt Petersen Jodi (FHWA) ltJodiPetersendotgovgtrabbottliunaorg rcarmsteadgmailcom ricemportseattleorg Riley D ltdrileylydigcomgtSeling ltSelingjpfranciscomgt sherryharrisergosynchcom Stell MellodyltStellMwsdotwagovgt terigobintulaliptribes-nsngov timwilliamfactorycom tinaterra-tdicom tkellyldccorpcom tomgaetzmsncom vcollinsacec-waorgverlenejazzmsncom Wang Albert ltWangAatgwagovgt Waugh GregltGregWMaxKuneyComgt Yates Henry ltYatesHWSDOTWAGOVgtCc Tom Gaetz lttomgaetzmsncomgt Dave Gent - WAPA ltdavegentasphaltwacomgt VanCollins ltvcollinsacec-waorggt Daniel Seydel II ltdanplatinumbusinessgroupcomgt MaynardJackson ltJacksonMaynardlegwagovgt Carl Livingston ltcarlllivingstongmailcomgt DonMcLeod ltdmcleodnwlaborersorggt JIMMY MATTA ltjimmymattamsncomgt Prince Ed(CAAA) lteprincecaawagovgt David DHondt ltddhondtagcwacomgt Irene Reyesltgloveladyexcelsupplycompanycomgt McDaniel Craig ltMcDaniCwsdotwagovgtsherryharrisergosynchcomSubject WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Good morning On Monday October 30th WSDOT will be releasing the proposed overall Federal HighwayAdministration Disadvantaged Business Enterprise goal attached for public comment throughDecember 15 2017 This overall DBE goal is based upon the recently completely DBE ProgramDisparity Study WSDOT is proposing a 19 percent overall DBE participation goal on Federal Highway

Administration-funded projects for federal fiscal years 2018 through 2020 DBE goals fortransportation projects that receive federal funds represent a percentage of the value of work inwhich minority- and women-owned businesses should participate Once finalized and submitted toFHWA early next year the goal will be effective through Sept 30 2020

The purpose of the DBE program is to create a level playing field for firms owned and operated bydisadvantaged individuals wanting to participate in federally assisted highway transit and aviationprograms The attached overall DBE goal is for FHWA funded projects WSDOT will be updating theFTA and FAA overall DBE goals in the near future

If you have any questions please contact Earl Key Director of the Office of Equal Opportunity at3607057091 or KeyEwsdotwagov Thank you Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

  • Proof-Of-Publicationpdf
    • Mediapdf
      • AGC
      • Daily Journal
      • Daily Medium
      • DBEGood
      • OMWBE
      • Seattle Medium
      • Tabor 100
      • The Chronicle
      • Tukwila
        • King County
          • Public-Comments-20180111pdf
            • 19 DBE Requirement(1)
            • AGC Comments on Proposed 10 Goad
            • Backstrom Curb amp Sidewalk
            • comments on WSDOT proposed DBE goal
            • Cowlitz County Public Works
            • DBE Contracting goals
            • DBE Goal
            • DBE Program Disparity Study
            • Disparity Study Comments from City of Spokane
            • FW_ WSDOT News - WSDOT seeks comments on propos
            • Proposed DBE Goals
            • RE_ DBE Contracting Goal Comments
            • Re_ DBE Goal Comments
            • Re_ Seydel Dan - WSDOT Disparity Study Present
            • Support for WSDOTs proposed DBE goal
            • Why we need mandatory goals
            • WSDOT DBE Goal - Comment in support
            • WSDOT Proposes DBE goal of 19
            • WSDOT propsed DBE Goals
            • WTS - Disparity Study Comment Letter

Congratulations on receiving the blessing of additional technical assistance dollars andcompleting the DBE Disparity Study per your report

1) Do you have any reports on your outcomes from the past 5 years on DBE support servicesand specific key performance measures from previous years funding (ie how many firmsutilized what was the objectives were objectives met did outcomes meet total satisfaction ifnot why next steps what was the firms capacity before and after services were performed (iesales employees bonding if applicable insurance equipment line of credit if applicablenumbertype of customers how are they doing now etc))

2) What other changes or improvements other than allowing DBES to select their own serviceproviders and a staff change will be a part of this new program

3) Was consideration to provide the new mentor protege consultant rather than separating theactivities into support services andor technical assistance

Disparity study clarifications andor comments

1) Will WSDOT consider sponsoring legislation to support the policy changes and goalincreases to insure manditory goals wont be necessary

a) If not what measures will you grant primes to operate outside the box (ie entertain bestvalue over low bid modify responsiveness by subs to require adherence to meeting voluntarygoals developing standards around federally funded gccm and other low bid procurementsthat give powers to primes to meet objectives including but not limited to mentor protegerelationships joint ventures bond waiving techniques cash flow assistance material andequipment acquisition manufacturer development specifications that have only DBES orinclude equal number of DBES as non DBES as approved installers etc)

2) Will the disparity study consultant be available for implementation or information gatheringfrom other regions

3) What lessons did WSDOT learn that it did not know from the other study(s)

4) What would WSDOT do different (ie scope time line process approach etc)

5) Will WSDOT be hiring more diverse staff amp professionaltechnical service providers inother departments outside OEO to insure policies commitments and evaluations areperformed in manner that improves diversity that reflects the communities WSDOT serves bythoughtful and legal efforts increase participation thus creating successful outcomes includingpartnerships and collaborations

Thank you for your hard work

Daniel J Seydel IIPlatinum Group LLC2064060844f) 2062999934wwwplatinumbusinessgroupcom

Small Business is the Answer

FREE TRAINING FOR ENTREPRENEURS amp JOB SEEKERS - Polish your skills or makeyour firm standout thanks to the Entrepreneurial Institute of Washington

httpswwwyoutubecomchannelUCKL5YeVxL29HnNxqnb6hmXA

LIKE US on FaceBook if an Active Professional Development workshop provided by EIWConstruction University helps your firm or has benefited you

httpswwwfacebookcomEIWashingtonref=hl

From Erin EhlingerTo Bayne JackieSubject Support for WSDOTs proposed DBE goalDate Wednesday December 13 2017 115417 AM

I am writing to support the WSDOT recommended DBE Goal for FHWA contracts of 190 I also want to express my appreciation for the thoroughness of the WSDOT Disparity study and howthe study disclosed the disparity in WSDOT contracts that do not have a DBE or WBE goal ndash furtherreinforcing that all women-owned firms and minority owned firms face equity issues I remain concerned with the methodology required by the Code of Federal Regulations and case lawbecause of the dependence on the availability of firms in the calculation An unintendedconsequence of removing either gender or race from the goal is that many of these firms would goout of business the availability decreases and the formula then results in a smaller DBE goal Pleaselet me know how I can help influence a change to the CFR Thank you Erin Ehlinger

Erin Ehlinger PEPresident

24036 SE 47th StSammamish WA 98029erinehlingersmartcitytrafficcom425-221-0320

From Jackie EtterTo WSDOT Disparity StudySubject Why we need mandatory goalsDate Friday December 1 2017 61859 PM

As a DBE participating in bidding process I have found that regardless of the language which claims to insurethat disadvantaged business enterprises shall not be discriminated against the only way to ensure that this does nothappen is by mandating affirmative action goals Having been overlooked time and time again because of my gender when I have submitted bids that are verycompetitive with other bidders is very frustrating I have had many instances of companies using my price to getmy non DBE competitors to lower theirs The voluntary or laudatory DBE goals do nothing to ensure a level playing fieldThe only way to ensure non-discrimination is through mandatory goals

Jackie EtterWest Star Construction of Spokane

Sent from my iPhone

From Claudia HirscheyTo Key Earl Bayne JackieSubject WSDOT DBE Goal - Comment in supportDate Tuesday December 12 2017 61937 PM

Dear Earl and Jackie The WSDOT recommended DBE Goal for FHWA contracts of 190 is a small and important increasethat can further achieve equity in WSDOTFHWA contracting I am in support of the 19 DBE Goal I also want to express my appreciation for the thoroughness of the WSDOT Disparity study and howthe study disclosed the disparity in WSDOT contracts that do not have a DBE or WBE goal ndash furtherreinforcing that all women-owned firms and minority owned firms face equity issues I remain concerned with the methodology required by the Code of Federal Regulations and case lawbecause of the dependence on the availability of firms in the calculation An unintendedconsequence of removing either gender or race from the goal is that many of these firms would goout of business the availability decreases and the formula then results in a smaller DBE goal Sincerely Claudia S Hirschey PETransportation Consulting Servicesclaudiahirscheycomcastnethttphirscheytcscom2068564988 Mobile

From Nate ThomasTo WSDOT Disparity StudySubject WSDOT Proposes DBE goal of 19Date Thursday December 7 2017 42720 PM

The WSDOT should look into similar ways the Federal Gov has handled the equal opportunity forthose that fall under the DBE status and set aside specific projects for the DBErsquos and moreimportantly UDBErsquos so these companies have better chance of landing contracts Maybe a lot 10 ofthe DBE goal to set aside for only DBEs and other 9 goal met as it is done currently with COA onlarger contracts Nate ThomasSenior EstimatorD 5095688085 | C 5099941156331 North Fancher Road | Spokane WA | 99212

The information contained in this email including any attachments is confidential and may beprivileged It is intended only for the person or entity to which it is addressed and no waiver isintended by sending this email If the reader is not the intended recipient you are herebynotified that any review retransmission dissemination or other use of or taking any action inreliance upon this information is strictly prohibited If you have received this email in errorkindly notify the sender by reply email and delete the original message from any computerThank You

From Brian FujiiTo WSDOT Disparity StudySubject WSDOT propsed DBE GoalsDate Thursday December 7 2017 110638 AM

Good morning Jackie

I wanted to comment on WSDOTs proposed DBE goal to 19 I believe WSDOTs plan toincrease the overall DBE goal to 19 will provide greater opportunities for DBE contractorsin different disciplines to participate in federally funded contracts

Without the new DBE requirement and with Proposition 200 there are limited opportunitiesfor DBE contractors in disciplines different than the typical trucking flagging and rebar Inaddition there are no incentives for general contractors to go out beyond the usual truckingflagging and rebar DBE subcontractors

Increasing the DBE goals will provide opportunities for different DBE contractors in differentdisciplines to participate in WSDOT federally funded projects

Thank you for your time

RespectfullyBrian FujiiPresident Subsurface ConstructionP 2063836478F 2069604639MDBE 4M0024998

From Forman StephanieTo Bayne JackieCc Millar Roger christinenhanmailhousegov Claudia Hirschey Sarah Corbin Jiang Yingle

efaulknerenviroissuescom Diana Giraldo Kelly CheesemanSubject WTS - Disparity Study Comment LetterDate Friday December 15 2017 71020 PMAttachments 2017_Dec 15_WTSCommentLetter_WSDOT DBE Goalpdf

Dear Ms Bayne Please find our attached letter which summarizes the WTS Puget Sound Chapterrsquos support foradvancement of women in transportation and our comment letter regarding the recent DisparityStudy Please feel free to contact me if you have any questions or would like to discuss Sincerely Stephanie S Forman PEWTS Puget Sound President Transportation Project Manager

929 108th Avenue NE Suite 1300Bellevue WA 98004D 4254681548 M 2062291745stephanieformanhdrinccom

December 15 2017

Jackie Bayne Policy and Reporting Manager

Office of Equal Opportunity

Washington State Department of Transportation

PO Box 47314

Olympia WA 98504-7314

Dear Ms Bayne

On behalf of the Puget Sound Chapter of Womenrsquos Transportation Seminar (WTS) we would

like to thank the Washington State Department of Transportation for presenting to our

organization the DBE Disparity Study results We very much appreciated the presentation by Earl

Key Director of WSDOTrsquos Office of Equal Opportunity Teresa Berntsen (Director Office of Minority

and Womens Business Enterprises) as well as Leslie Jones (Director Sound Transit Office of Small

Business Development and Labor Compliance)

Following a review of the WSDOT Disparity Study and as a result of consultation with WTS

International we would like to provide WSDOT with our comments for your consideration

As you know WTS is an organization focused exclusively on attracting retaining and advancing

women in transportation By the year 2018 there will be thousands of vacancies in the

transportation industry for qualified professionals and while women account for more than half of

the worldrsquos workforce they are a very small minority in transportation disciplines

We are pleased that the outcome of the 2017 Disparity Study that recognizes the on-going barriers

for DBEs including women-owned businesses in transportation The WSDOT recommended DBE

Goal of 190 is a small and important increase that can further achieve equity in WSDOTFHWA

contracting We are also pleased that the 2017 Disparity Study has documented the disparity in

WSDOT contracts that do not have a DBE or WBE goal ndash further reinforcing that all women-owned

firms and minority owned firms face equity issues We are encouraged that the WSDOT has asked

FHWA to rescind the 2016 waiver

While WTSrsquo mission is specific to the advancement of women we are a race-neutral organization To

this end we are also deeply concerned about the underutilization of minority owned firms There is

no equity or ldquofair playing fieldrdquo without equity for all gender and races We remained concerned with

the methodology required by the Code of Federal Regulations and case law because of the

dependence on the availability of firms in the calculation An unintended consequence of removing

either gender or race from the goal is that many of these firms would go out of business the

availability decreases and the formula then results in a smaller DBE goal This consequence is

contrary to our mission

We look forward to our continued participation in WSDOTrsquos DBE advisory group we are anticipating

notice that the 2016 waiver has been rescinded and how we can work together to continue

advancing minority and women-owned firms in the transportation field

Sincerely

WTS Puget Sound Chapter

Stephanie Forman

President

C Roger Millar Secretary WSDOT

C Representative Adam Smith 9th Congressional District Washington co Christine Nhan

WTS Puget Sound Chapter

PO Box 3461

Bellevue Washington 98009

From Dave Gent - WAPATo Bayne JackieCc Tom GaetzSubject WAPA Public Comments - RE WSDOT FHWA Disadvantaged Business Enterprise Proposed GoalDate Friday December 15 2017 14119 PMAttachments 12152017 DBE Proposed Goal - WAPA Public Comments Letterpdf

Good afternoon Jackie Please find attached WAPArsquos ldquofor the public recordrdquo comments with respect to WSDOTrsquos proposedDBE Goals FHWA funded work I assume that the Master DBE Directory was not sent to you this week so as a result we were notable to review the directory before the close of the public comment period That fact is noted withinour comment letter Thank you for your efforts Have a good weekend

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Friday December 8 2017 1219 PMTo Dave Gent - WAPA ltdavegentasphaltwacomgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hello Dave WSDOT did not take possession of this directory as part of our review process We will provide youwith the records without submitting a formal request However we need to get them from theconsultant first I will hopefully have them to provide next week I will keep you updated on therequest Have a nice weekend Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal Opportunity

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

December 15 2017

Jackie Bayne Policy Manager WSDOT Office of Equal Opportunity Delivered via e-mail to BayneJwsdotwagov RE Public Comment (as requested) to Proposed Overall DBE Goal for the FHWA (2018 ndash 2020) Ms Bayne Thank you for your presentation via webinar on December 5 2017 outlining WSDOTrsquos evaluation process used to determine the proposed overall DBE goal for the FHWA Thank you also for the Colette Holt amp Associates (CHA) DBE Advisory Group presentation made on September 14 2017 Both presentations helped to distill the findings of the 2017 Disparity Study produced by CHA In response to Earl Keyrsquos initial informal request to comment on the proposed overall DBE goal made during the DBE Advisory Committee teleconference held on October 12th we provided a list of reasons that we believe justify a lower DBE goal than is now being proposed Our initial response to Mr Keyrsquos request did not serve to influence WSDOT and the current proposed goal remains at 190 The arguments provided on October 12th against the significant increase in the proposed DBE goal (versus the previous goal and recent historic DBE participation) are repeated and supplemented below and will serve as the Asphalt Pavement Associationrsquos (WAPArsquos) official public comments

In concert with WSDOT and the OWMBE WAPA and the construction firms that WAPA represents have demonstrated a commitment to the principals of equal opportunity for all ldquoready willing and ablerdquo firms for the entire history that our DBE program has been in place WAPA has continuously demonstrated its commitment to the goals of the DBE program and for increasing the representation of disadvantaged groups within our industry as both workers and owners of firms Please recognize that WAPArsquos oversight and critique of the DBE program has always attempted to balance the principals of fair and open competition with the practical aspects of the low bid compressed schedule high performance standards demanded within the WSDOT marketplace Our comments below are meant to enhance WSDOTrsquos and OWMBErsquos understanding of the market and to hopefully have WSDOT fully consider all of the dynamics that are at play when proposing its Triennial DBE goal for FHWA projects Current DBE Capacity vs Historically Robust Market In advocating for a realistic and defensible DBE goal it has always been WAPArsquos position that it is paramount that the realities of the marketplace and true certified DBE subcontracting capacity should be a primary standard While a ldquostretchrdquo goal may appear to be progressive on its face it comes with consequences for all of the parties involved in the WSDOT federal aid contracting arena To balance the dynamics of the WSDOT contracting system the DBE goal should be tempered with the realities of the market and with a true measure of the underlying effectiveness of the DBE support services available to contractors

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 2 of 6 The first point of fact that has not been given any apparent consideration by WSDOT in its evaluation of the current capacity of certified DBErsquos is that there is an historically robust workload scheduled to be performed in the 2017 through 2022 time-frame particularly in the Puget Sound ldquoEverett to Olympiardquo corridor By WSDOTrsquos own estimates (see Attachment A) public works construction project starts in the 2018 to 2022 time-frame in this region will exceed $333 billion (B) counting the work projected from just five public entities WSDOT will be taking a decidedly ldquoback seatrdquo role during this period to Sound Transit which will have construction project starts of $226B vs WSDOTrsquos projected volume of $67B WSDOTrsquos summary publication titled Washington State Department of Transportations Proposed Federal Highway Administration Triennium Disadvantaged Business Enterprise Goal Federal Fiscal Years 2018-2020 states correctly that ldquoIncluded among the types of evidence that must be considered are the current capacity of DBEs to perform work on WSDOTrsquos federally-assisted contracts as measured by the volume of work DBEs have performed in recent yearshelliprdquo (Step Two Adjustment discussion) With the Sound Transit program being over 300 larger than the total WSDOT program in this region a sober assessment of true certified DBE capacity in the next three years needs to be considered by WSDOT If the huge construction boom over the next five years does not prompt a Step Two Adjustment then it becomes obvious that the realities of the market are being ignored by WSDOT for DBE goal setting Put another way if the 2018 through 2022 level of contracting activity does not warrant a goal adjustment what will DBE Access Barriers Not Yet Addressed The CHA 2017 Disparity Study points out multiple recommendations in Section VII that impact DBE participation and access to the market Assessments relating to those impacts and the state of maturity in addressing the CHA recommendations should be considered when assessing the DBE goal Many of the CHA recommendation have not been adequately addressed at this point in time Some of the prime examples are listed below Increase Certification and Expertise ndash The Disparity Study as explained to us includes all minority- (MBE)

and women-owned (WBE) firms that could be readily identified that perform work within Washington State and that perform work within the NAICS code framework CHA developed to cover WSDOT project work During the various presentations relating to the Disparity Study WSDOT representatives said that outreach to currently non-certified MBE amp WBE firms has increased and that WSDOT aspires to bolster its list of certified firms in the future but this effort is just beginning and the success of the effort needs to be means tested against the broader population of MBE amp WBE firms included in the CHA base line evaluation As the Disparity Study uses a much broader population of MBE WBE contractors to arrive at its conclusions (both non-certified firms and firms too large for certification) it follows that the calculated DBE proposed goal is overstated to include capacity that does not currently exist within WSDOTrsquos certified DBE framework Unless OMWBE is experiencing sudden and unprecedented success in recruiting new MBEWBE firms the DBE goal should be adjusted downward to recognize that the ldquoready willing and ablerdquo contractors that WSDOT has certified is only a subset of the total MBEWBE contracting population used in the Disparity Study evaluation

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 3 of 6

Until the promised WSDOT outreach registration efforts result in a substantial increase in available certified DBE firms it is premature to count the entire population of minority- and women-owned contractors as available to participate in WSDOT contracting It is unreasonable for WSDOT to project availability capacity using the entire MBEWBE population when only its currently truncated list of certified firms is acceptable to count toward the DBE goal

A corollary to the Increase Certification and Expertise discussion above is that the calculation of the Base Figure evidently includes the broadest practical population of MBE and WBE firms identifiable (without a review of the CHA Master DBE Directory which has not been supplied prior to the close of the public comment period the scope of the directory cannot be ascertained) If this directory includes a large population of MBEWBE firms that are not certified or are too large to be certified then the Base Figure calculation should be adjusted to reflect that certified DBE firms are a fraction of the total MBEWBE firms used to arrive at the 19 suggested DBE goal With respect to the CHA Master Directory it is our understanding the WSDOT was not given the directory as part of its evaluation of the Disparity Study and it follows that it did not evaluate the proposed DBE goal in the context of the CHA Master DBE Directory In our opinion an informed decision on adjusting the CHA baseline goal calculation can only be done after an extensive evaluation of the CHA Master DBE Directory If this has not been done WSDOT has not exercised due diligence in evaluating the context and underpinnings of the CHA Disparity Study and a certified DBE Triennium goal proposal to the FHWA is premature Increase Contract ldquoUnbundlingrdquo ndash If this proposed strategy (suggested by the CHA Study) is undertaken

certified DBE Subcontractors currently available will be engaged as Prime Contractors and the value of their prime contracts will bolster the overall percentage of certified DBE contracting but a systematic effort and strategy to ldquounbundlerdquo has not been articulated by WSDOT The key question of how this effort can be accomplished without increased cost to the taxpayers and increased inconvenience for the traveling public As noted in the CHA study (page 129 final paragraph) ldquoUnbundling must be conducted however within the constraints of the need to ensure efficiency and limit cost to the taxpayersrdquo As of this writing no overarching strategy for further unbundling with proper accountability has been articulated by WSDOT to the DBE Advisory Group

Review Insurance and Experience Requirements ndash Impediments to certified DBE participation due to

necessary insurance and experience standards cannot be solved by the prime contracting community Unless and until WSDOT puts together programs to address the burden of the substantial risks shouldered by Prime Contractors on WSDOT contracts barriers for streamlined utilization of certified DBE firms will continue to exist These market driven barriers will continue to dampen the availability of certified DBE Subcontractors that are able to perform within WSDOTrsquos strict criteria without unduly transferring risk to the Prime Contractor

Better Partnering to Overcome DBE Failures to Perform ndash Prime Contractors are held fully responsible to maintain the project schedule and are subject to project liquidated damages even when they may be struggling to deal with Subcontractor performance issues It is well-established that replacing a certified ldquocondition of awardrdquo (COA) DBE Subcontractor is very onerous and likely very costly to the Prime Contractor Unfortunately the imposition of strict and often counter-productive commercially useful function (CUF) rules often compound this issue as Prime Contractors cannot help COA DBE Subcontractors work through capacity expertise or time-related issues that impact timely performance

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 4 of 6

WSDOT needs to be a much better partner in the process of dealing with under-performing or non-performing certified DBE Subcontractors The current standard operational procedure places all of the exposure for non-performance onto the Prime WSDOT does not have an equitable system to account for non-performing or under-performing certified DBE Subcontractors hired as a condition of award (COA)

Performance Information and Training ndash Commercially useful function rules (CUF) and the lack of clear benchmark definitions for good faith effort (GFE) standards remain barriers for improving accountability within the DBE system and in turn lead to distorted DBE participation rates These items remain amorphous due to lack of training or lack of historic information Chronic uncertainty exists regarding both of these items Until WSDOT changes and improves its approach to provide transparency and certainty for both the prime bidding amp subcontracting parties true certified DBE capacity will continue to be masked and the resultant higher subcontracting costs associated with a distorted marketplace will continue to be hidden

WAPA respectfully suggests that simply adding an ldquoEstimated DBE Subcontract Premiumrdquo line to the current DBE bid forms would help to establish benchmarks that could begin to be used to ldquomeans testrdquo good faith efforts If this information had been gathered over the last 20 years of the DBE program meaningful GFE standards could have been developed and could be in place today

An in-depth review of CUF standards would also provide clarity For instance it is unclear why force account items performed by certified DBEs are currently counted at only 50 of the value of the work How was this benchmark established Has it been reviewed since imposed Did it ldquosolverdquo whatever inequity WSDOT was trying to address Better clarity may lead to more expanded opportunities for certified DBE Subcontractors

Enhanced Supportive Services and Business Development Programs ndash Unless and until stronger programs of these types are shown to be effective in boosting certified DBE business development increased DBE participation due to stronger business acumen should not be relied upon when setting the new DBE goal

Does OMWBE have a reasonable expectation that future plans for enhanced and expanded programs will be more successful than those employed in the past Assuming that certified DBE Subcontractors will be better prepared to deal with the WSDOT contracting environment than in the past should not be relied upon to boost DBE participation goals Especially troubling were the multiple references within the CHA report highlighting that DBEs believe that the staff at OMWBE lack a deep knowledge about the highway construction industry (eg Study page 129 2nd paragraph) Does OMWBE have a path forward that will address this issue and thus improve supportive services impacts

Develop a Bonding and Financing Program for SBEs ndash This is completely outside of the prime contracting

communityrsquos scope of influence WSDOT must find a way to institute changes that both protect the taxpayer and help increase certified DBE bonding capacity and access to financing ndash very large hurtles To assume that these hurtles can effectively be overcome within the 2018 ndash 2020 time frame when they have been chromic issues for the past 20 plus years of DBE program development is not rational

A helpful innovation would be for WSDOT to underwrite performance and payment bonds for certified DBE firms or to create promote a system that helps certified DBE firms obtain private bonding Bridging the gap to address capital access and performance risks (bonding) must be championed by WSDOT

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 5 of 6

Base Figure Adjustment to Address Available Subcontract Volume and DBE Prime Contracts It is a fact that mid- to large-sized MBEWBE firms that compete both as Prime Contractors and as Subcontractors are not eligible to be OMWBE certified DBEs Further the current amount of contract unbundling for greater DBE access to WSDOT prime contracting (see below) accounts for a very low dollar volume of prime contracts performed by certified DBEs Finally by specification (WSDOT standard specification 1-081) Prime Contractors are obligated to perform 30 of the total volume of the work (less specialty work) or stated another way a maximum of 70 of the dollar volume on WSDOT projects is typically available to award to subcontractors These market dynamics are NOT addressed in the Disparity Study A responsible DBE goal made absent of these facts should not be implemented A reasonable adjustment to the proposed 19 DBE goal is presented below

bull The percent of WSDOT prime contracts awarded to certified DBE firms is likely less than 5 by total WSDOT

contract volume Assuming this approximation is valid (likely very conservative) then the amount of WSDOT contract work available to certified DBE firms via subcontracting should be adjusted to account for the factors outlined above The Base Figure (19) should be adjusted to recognize that a 70 maximum subcontractor participation is available (in the numerator) and to account for the assumed 5 certified DBE prime contracts in the denominator Reasonable Base Figure Adjustment 19 (proposed) x 70 subcontracts available divide 95 of Non-Certified DBEs as Prime Contract Volume = 190 x 0737 = 140 adjusted goal This is an adjustment based on the practical dynamics of the WSDOT contracting system and it represents a more realistic look at the true subcontract volume that is available for Prime Contractors to award to certified DBE firms

Conclusions

Until the items listed above are addressed and in place it is not reasonable to believe that DBE goals can be increased by nearly 163 (from 117 to 190) When the projected robust public works contracting market is appropriately considered the true availability of certified DBE Subcontractors for WSDOT contracts will be truncated due to demand across all public works sectors With multiple strong public works programs competing for a limited population of certified DBEs the ability to meet increased WSDOT DBE goals will be severely challenged Without very clear concise and transparent good faith effort rules the ability to address DBE goals that greatly overestimate true near term certified DBE capacity will result in non-attainment bid day chaos failures to perform andor rapidly increased pricing

The clear conclusion is that at this point in time under the current circumstances without effectively instituted new programs rules procedures that could enhance the certified DBE programrsquos overall effectiveness we believe that the DBE goal should remain at or near 12 As OMWBE documents and demonstrates its future successes in improving access and eliminating capacity barriers only then should the DBE goal be re-evaluated and increased

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 6 of 6

In closing please remember that it is rare that the contracting community is asked our opinion with respect to the WSDOTrsquos DBE policies and so this letter is somewhat a vehicle to highlight collective concerns It is our belief that the majority of the Prime Contractors in Washington state support the objective of creating a level playing field for ready willing and able DBEs

If the level playing field is not yet possible in the absence of the DBE program then the key is to set realistic goals that recognize reflect and address the hard realities and market dynamics imposed by WSDOTrsquos bedrock environment of awarding contracts to the lowest cost responsible and responsive Contractor

Respectfully submitted Washington Asphalt Pavement Association

David Gent Tom Gaetz Executive Director Senior Advisor

Attachment A ndash WSDOT Central Puget Sound Public Works Contracting Projection 2018 - 2022

Con

stru

ctio

n Pr

ojec

t Sta

rts

2018

-202

2S

ound

Tra

nsit

$22

6 B

SD

OT

$08

B

Tran

sit

amp O

ther

s$1

7 B

WS

DO

T$6

7 B

Por

t of

Sea

ttle

$15

B

TOTA

L$3

33

B

Source N

ov 1

9 2

017

pres

enta

tion

to W

APA

Ann

ual M

eetin

g

Attachment A

Work (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Dave Gent - WAPA [mailtodavegentasphaltwacom] Sent Thursday December 7 2017 144 PMTo Bayne Jackie ltBayneJwsdotwagovgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hi again Jackie Irsquom fine thanks and hope you are the same Interesting The Master DBE Directory is the basis for and integral to the conclusions of the DisparityStudy Is it not then part of the information needed to fully review and comment on the DisparityStudy Was it not provided by CHA to WSDOT for review We are trying to fully understand thestudy and if this directory was part of the study why would it need to be obtained by a publicrecords disclosure It should be in the public domain and not restricted from ease of access If you are sure that a public records request is needed Irsquoll start that process but we will need tonote that point of fact when we submit our public comments If you are able to reconsider please let me know Respectfully

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Thursday December 7 2017 126 PMTo Dave Gent - WAPA ltdavegentasphaltwacomgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hello Dave I hope you are doing well

That information would likely be obtained through a public disclosure request Best Regards Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Dave Gent - WAPA [mailtodavegentasphaltwacom] Sent Thursday December 7 2017 113 PMTo Bayne Jackie ltBayneJwsdotwagovgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Jackie Can you please provide an electronic file or provide a weblink for the Master DBE Directory thatColette Holt amp Associates developed for the WSDOT Disparity Study 2017 (first referred to on Page 8of the Disparity Study) I did not see a link to this Master DBE Directory within the study Thanks

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Friday October 27 2017 1118 AMTo Kenyon Wendy ltKenyonWwsdotwagovgt Adams E W ltewadamssystemsclcomgtAdekoyaAndrew ltandrewadekoyabccomgt AlyssaBalllegwagov Anindita Mitraltamitracrea-affiliatescomgt APRISeattlehotmailcom Armstrong CharlotteltCharlieAatgwagovgt Ato Apiafi Architects PLLC ltatoaatoapiaficomgt benzfanwaorgBerntsen Teresa (OMWBE) ltTeresaBomwbewagovgt Billingsley Andrealtbillinawsdotwagovgt Bramlet Erica ltEricaBramletlegwagovgt Brooks Julius

ltBrooksJwsdotwagovgt Brown Jason ltjbrownldccorpcomgt bwallacenwlaborersorgCamden Allison ltCamdenAwsdotwagovgt carlllivingstongmailcom Cerda OscarltCerdaOwsdotwagovgt Christopher Chris ltChristCwsdotwagovgt ckerneycaawagovdanplatinumbusinessgroupcom davegentasphaltwacom David BalltDavidsignsnowmillcreekcomgt Davis Khalia ltDavisKhwsdotwagovgt Davis RaShelle (GOVltrashelledavisgovwagovgt Dayton Jo ltDaytonJwsdotwagovgt ddhondtagcwacomDebbieDriverlegwagov Dennis ltdennisahlkiewitcomgt dmcleodnwlaborersorgdrart6651gmailcom Duncan Enid lthigradeincgmailcomgt EltonltEltonwashingtonstatetruckingcomgt eprincecaawagov flemosldccorpcomfmartineznwmtnmsdcorg geoffshookatkncom glovelady ltgloveladyexcelglovescomgtGrabow Katie ltkgrabowsystemsclcomgt Guilfucci Jackie ltJackieGuilfucciskanskacomgt HealyLinda ltHealyLwsdotwagovgt Higginbotham Breanne ltHigginBwsdotwagovgt HirscheyClaudia ltclaudiahirscheycomcastnetgt Holt Colette ltcoletteholtmwbelawcomgt Huff JohnltHuffJwsdotwagovgt Iniguezchawagov JacksonMaynardlegwagov Jimmy Matta(jmattaalcantarassoccom) ltjmattaalcantarassoccomgt kellywickergovwagov Key EarlltKeyEwsdotwagovgt Kirk Jon ltjkirkwhhnfscomgt Kris Purrier ltkpurrierhwageocomgtleewabuildingtradesorg lesliejonessoundtransitorg Liz Evans ltlevansagcwacomgt LopezErin lterinlopezdeswagovgt Martha Cerna ltMarthaPSLCCORGgt Martin-Arnold EdwinaltMartinEwsdotwagovgt Mary Lerdahl ltmarydbeelectricinccomgt McCarty Hannahlthannahmccartylegwagovgt Melissa L Boyles ltmelissaboylesmwbelawcomgt Metcalf KeithltMetcalKwsdotwagovgt michaelicapaawagov Michelle ltMichelleTTCC26netgt MillarRoger ltMillarRwsdotwagovgt Nakamura Jason ltjasonnakamura1-alliancecomgtNavarroLportseattleorg olliepmt-solutionscom pastorbanksesbctacomacom PatrickHughes ltphugheshughesgroupbizgt Petersen Jodi (FHWA) ltJodiPetersendotgovgtrabbottliunaorg rcarmsteadgmailcom ricemportseattleorg Riley D ltdrileylydigcomgtSeling ltSelingjpfranciscomgt sherryharrisergosynchcom Stell MellodyltStellMwsdotwagovgt terigobintulaliptribes-nsngov timwilliamfactorycom tinaterra-tdicom tkellyldccorpcom tomgaetzmsncom vcollinsacec-waorgverlenejazzmsncom Wang Albert ltWangAatgwagovgt Waugh GregltGregWMaxKuneyComgt Yates Henry ltYatesHWSDOTWAGOVgtCc Tom Gaetz lttomgaetzmsncomgt Dave Gent - WAPA ltdavegentasphaltwacomgt VanCollins ltvcollinsacec-waorggt Daniel Seydel II ltdanplatinumbusinessgroupcomgt MaynardJackson ltJacksonMaynardlegwagovgt Carl Livingston ltcarlllivingstongmailcomgt DonMcLeod ltdmcleodnwlaborersorggt JIMMY MATTA ltjimmymattamsncomgt Prince Ed(CAAA) lteprincecaawagovgt David DHondt ltddhondtagcwacomgt Irene Reyesltgloveladyexcelsupplycompanycomgt McDaniel Craig ltMcDaniCwsdotwagovgtsherryharrisergosynchcomSubject WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Good morning On Monday October 30th WSDOT will be releasing the proposed overall Federal HighwayAdministration Disadvantaged Business Enterprise goal attached for public comment throughDecember 15 2017 This overall DBE goal is based upon the recently completely DBE ProgramDisparity Study WSDOT is proposing a 19 percent overall DBE participation goal on Federal Highway

Administration-funded projects for federal fiscal years 2018 through 2020 DBE goals fortransportation projects that receive federal funds represent a percentage of the value of work inwhich minority- and women-owned businesses should participate Once finalized and submitted toFHWA early next year the goal will be effective through Sept 30 2020

The purpose of the DBE program is to create a level playing field for firms owned and operated bydisadvantaged individuals wanting to participate in federally assisted highway transit and aviationprograms The attached overall DBE goal is for FHWA funded projects WSDOT will be updating theFTA and FAA overall DBE goals in the near future

If you have any questions please contact Earl Key Director of the Office of Equal Opportunity at3607057091 or KeyEwsdotwagov Thank you Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

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        • King County
          • Public-Comments-20180111pdf
            • 19 DBE Requirement(1)
            • AGC Comments on Proposed 10 Goad
            • Backstrom Curb amp Sidewalk
            • comments on WSDOT proposed DBE goal
            • Cowlitz County Public Works
            • DBE Contracting goals
            • DBE Goal
            • DBE Program Disparity Study
            • Disparity Study Comments from City of Spokane
            • FW_ WSDOT News - WSDOT seeks comments on propos
            • Proposed DBE Goals
            • RE_ DBE Contracting Goal Comments
            • Re_ DBE Goal Comments
            • Re_ Seydel Dan - WSDOT Disparity Study Present
            • Support for WSDOTs proposed DBE goal
            • Why we need mandatory goals
            • WSDOT DBE Goal - Comment in support
            • WSDOT Proposes DBE goal of 19
            • WSDOT propsed DBE Goals
            • WTS - Disparity Study Comment Letter

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From Erin EhlingerTo Bayne JackieSubject Support for WSDOTs proposed DBE goalDate Wednesday December 13 2017 115417 AM

I am writing to support the WSDOT recommended DBE Goal for FHWA contracts of 190 I also want to express my appreciation for the thoroughness of the WSDOT Disparity study and howthe study disclosed the disparity in WSDOT contracts that do not have a DBE or WBE goal ndash furtherreinforcing that all women-owned firms and minority owned firms face equity issues I remain concerned with the methodology required by the Code of Federal Regulations and case lawbecause of the dependence on the availability of firms in the calculation An unintendedconsequence of removing either gender or race from the goal is that many of these firms would goout of business the availability decreases and the formula then results in a smaller DBE goal Pleaselet me know how I can help influence a change to the CFR Thank you Erin Ehlinger

Erin Ehlinger PEPresident

24036 SE 47th StSammamish WA 98029erinehlingersmartcitytrafficcom425-221-0320

From Jackie EtterTo WSDOT Disparity StudySubject Why we need mandatory goalsDate Friday December 1 2017 61859 PM

As a DBE participating in bidding process I have found that regardless of the language which claims to insurethat disadvantaged business enterprises shall not be discriminated against the only way to ensure that this does nothappen is by mandating affirmative action goals Having been overlooked time and time again because of my gender when I have submitted bids that are verycompetitive with other bidders is very frustrating I have had many instances of companies using my price to getmy non DBE competitors to lower theirs The voluntary or laudatory DBE goals do nothing to ensure a level playing fieldThe only way to ensure non-discrimination is through mandatory goals

Jackie EtterWest Star Construction of Spokane

Sent from my iPhone

From Claudia HirscheyTo Key Earl Bayne JackieSubject WSDOT DBE Goal - Comment in supportDate Tuesday December 12 2017 61937 PM

Dear Earl and Jackie The WSDOT recommended DBE Goal for FHWA contracts of 190 is a small and important increasethat can further achieve equity in WSDOTFHWA contracting I am in support of the 19 DBE Goal I also want to express my appreciation for the thoroughness of the WSDOT Disparity study and howthe study disclosed the disparity in WSDOT contracts that do not have a DBE or WBE goal ndash furtherreinforcing that all women-owned firms and minority owned firms face equity issues I remain concerned with the methodology required by the Code of Federal Regulations and case lawbecause of the dependence on the availability of firms in the calculation An unintendedconsequence of removing either gender or race from the goal is that many of these firms would goout of business the availability decreases and the formula then results in a smaller DBE goal Sincerely Claudia S Hirschey PETransportation Consulting Servicesclaudiahirscheycomcastnethttphirscheytcscom2068564988 Mobile

From Nate ThomasTo WSDOT Disparity StudySubject WSDOT Proposes DBE goal of 19Date Thursday December 7 2017 42720 PM

The WSDOT should look into similar ways the Federal Gov has handled the equal opportunity forthose that fall under the DBE status and set aside specific projects for the DBErsquos and moreimportantly UDBErsquos so these companies have better chance of landing contracts Maybe a lot 10 ofthe DBE goal to set aside for only DBEs and other 9 goal met as it is done currently with COA onlarger contracts Nate ThomasSenior EstimatorD 5095688085 | C 5099941156331 North Fancher Road | Spokane WA | 99212

The information contained in this email including any attachments is confidential and may beprivileged It is intended only for the person or entity to which it is addressed and no waiver isintended by sending this email If the reader is not the intended recipient you are herebynotified that any review retransmission dissemination or other use of or taking any action inreliance upon this information is strictly prohibited If you have received this email in errorkindly notify the sender by reply email and delete the original message from any computerThank You

From Brian FujiiTo WSDOT Disparity StudySubject WSDOT propsed DBE GoalsDate Thursday December 7 2017 110638 AM

Good morning Jackie

I wanted to comment on WSDOTs proposed DBE goal to 19 I believe WSDOTs plan toincrease the overall DBE goal to 19 will provide greater opportunities for DBE contractorsin different disciplines to participate in federally funded contracts

Without the new DBE requirement and with Proposition 200 there are limited opportunitiesfor DBE contractors in disciplines different than the typical trucking flagging and rebar Inaddition there are no incentives for general contractors to go out beyond the usual truckingflagging and rebar DBE subcontractors

Increasing the DBE goals will provide opportunities for different DBE contractors in differentdisciplines to participate in WSDOT federally funded projects

Thank you for your time

RespectfullyBrian FujiiPresident Subsurface ConstructionP 2063836478F 2069604639MDBE 4M0024998

From Forman StephanieTo Bayne JackieCc Millar Roger christinenhanmailhousegov Claudia Hirschey Sarah Corbin Jiang Yingle

efaulknerenviroissuescom Diana Giraldo Kelly CheesemanSubject WTS - Disparity Study Comment LetterDate Friday December 15 2017 71020 PMAttachments 2017_Dec 15_WTSCommentLetter_WSDOT DBE Goalpdf

Dear Ms Bayne Please find our attached letter which summarizes the WTS Puget Sound Chapterrsquos support foradvancement of women in transportation and our comment letter regarding the recent DisparityStudy Please feel free to contact me if you have any questions or would like to discuss Sincerely Stephanie S Forman PEWTS Puget Sound President Transportation Project Manager

929 108th Avenue NE Suite 1300Bellevue WA 98004D 4254681548 M 2062291745stephanieformanhdrinccom

December 15 2017

Jackie Bayne Policy and Reporting Manager

Office of Equal Opportunity

Washington State Department of Transportation

PO Box 47314

Olympia WA 98504-7314

Dear Ms Bayne

On behalf of the Puget Sound Chapter of Womenrsquos Transportation Seminar (WTS) we would

like to thank the Washington State Department of Transportation for presenting to our

organization the DBE Disparity Study results We very much appreciated the presentation by Earl

Key Director of WSDOTrsquos Office of Equal Opportunity Teresa Berntsen (Director Office of Minority

and Womens Business Enterprises) as well as Leslie Jones (Director Sound Transit Office of Small

Business Development and Labor Compliance)

Following a review of the WSDOT Disparity Study and as a result of consultation with WTS

International we would like to provide WSDOT with our comments for your consideration

As you know WTS is an organization focused exclusively on attracting retaining and advancing

women in transportation By the year 2018 there will be thousands of vacancies in the

transportation industry for qualified professionals and while women account for more than half of

the worldrsquos workforce they are a very small minority in transportation disciplines

We are pleased that the outcome of the 2017 Disparity Study that recognizes the on-going barriers

for DBEs including women-owned businesses in transportation The WSDOT recommended DBE

Goal of 190 is a small and important increase that can further achieve equity in WSDOTFHWA

contracting We are also pleased that the 2017 Disparity Study has documented the disparity in

WSDOT contracts that do not have a DBE or WBE goal ndash further reinforcing that all women-owned

firms and minority owned firms face equity issues We are encouraged that the WSDOT has asked

FHWA to rescind the 2016 waiver

While WTSrsquo mission is specific to the advancement of women we are a race-neutral organization To

this end we are also deeply concerned about the underutilization of minority owned firms There is

no equity or ldquofair playing fieldrdquo without equity for all gender and races We remained concerned with

the methodology required by the Code of Federal Regulations and case law because of the

dependence on the availability of firms in the calculation An unintended consequence of removing

either gender or race from the goal is that many of these firms would go out of business the

availability decreases and the formula then results in a smaller DBE goal This consequence is

contrary to our mission

We look forward to our continued participation in WSDOTrsquos DBE advisory group we are anticipating

notice that the 2016 waiver has been rescinded and how we can work together to continue

advancing minority and women-owned firms in the transportation field

Sincerely

WTS Puget Sound Chapter

Stephanie Forman

President

C Roger Millar Secretary WSDOT

C Representative Adam Smith 9th Congressional District Washington co Christine Nhan

WTS Puget Sound Chapter

PO Box 3461

Bellevue Washington 98009

From Dave Gent - WAPATo Bayne JackieCc Tom GaetzSubject WAPA Public Comments - RE WSDOT FHWA Disadvantaged Business Enterprise Proposed GoalDate Friday December 15 2017 14119 PMAttachments 12152017 DBE Proposed Goal - WAPA Public Comments Letterpdf

Good afternoon Jackie Please find attached WAPArsquos ldquofor the public recordrdquo comments with respect to WSDOTrsquos proposedDBE Goals FHWA funded work I assume that the Master DBE Directory was not sent to you this week so as a result we were notable to review the directory before the close of the public comment period That fact is noted withinour comment letter Thank you for your efforts Have a good weekend

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Friday December 8 2017 1219 PMTo Dave Gent - WAPA ltdavegentasphaltwacomgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hello Dave WSDOT did not take possession of this directory as part of our review process We will provide youwith the records without submitting a formal request However we need to get them from theconsultant first I will hopefully have them to provide next week I will keep you updated on therequest Have a nice weekend Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal Opportunity

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

December 15 2017

Jackie Bayne Policy Manager WSDOT Office of Equal Opportunity Delivered via e-mail to BayneJwsdotwagov RE Public Comment (as requested) to Proposed Overall DBE Goal for the FHWA (2018 ndash 2020) Ms Bayne Thank you for your presentation via webinar on December 5 2017 outlining WSDOTrsquos evaluation process used to determine the proposed overall DBE goal for the FHWA Thank you also for the Colette Holt amp Associates (CHA) DBE Advisory Group presentation made on September 14 2017 Both presentations helped to distill the findings of the 2017 Disparity Study produced by CHA In response to Earl Keyrsquos initial informal request to comment on the proposed overall DBE goal made during the DBE Advisory Committee teleconference held on October 12th we provided a list of reasons that we believe justify a lower DBE goal than is now being proposed Our initial response to Mr Keyrsquos request did not serve to influence WSDOT and the current proposed goal remains at 190 The arguments provided on October 12th against the significant increase in the proposed DBE goal (versus the previous goal and recent historic DBE participation) are repeated and supplemented below and will serve as the Asphalt Pavement Associationrsquos (WAPArsquos) official public comments

In concert with WSDOT and the OWMBE WAPA and the construction firms that WAPA represents have demonstrated a commitment to the principals of equal opportunity for all ldquoready willing and ablerdquo firms for the entire history that our DBE program has been in place WAPA has continuously demonstrated its commitment to the goals of the DBE program and for increasing the representation of disadvantaged groups within our industry as both workers and owners of firms Please recognize that WAPArsquos oversight and critique of the DBE program has always attempted to balance the principals of fair and open competition with the practical aspects of the low bid compressed schedule high performance standards demanded within the WSDOT marketplace Our comments below are meant to enhance WSDOTrsquos and OWMBErsquos understanding of the market and to hopefully have WSDOT fully consider all of the dynamics that are at play when proposing its Triennial DBE goal for FHWA projects Current DBE Capacity vs Historically Robust Market In advocating for a realistic and defensible DBE goal it has always been WAPArsquos position that it is paramount that the realities of the marketplace and true certified DBE subcontracting capacity should be a primary standard While a ldquostretchrdquo goal may appear to be progressive on its face it comes with consequences for all of the parties involved in the WSDOT federal aid contracting arena To balance the dynamics of the WSDOT contracting system the DBE goal should be tempered with the realities of the market and with a true measure of the underlying effectiveness of the DBE support services available to contractors

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 2 of 6 The first point of fact that has not been given any apparent consideration by WSDOT in its evaluation of the current capacity of certified DBErsquos is that there is an historically robust workload scheduled to be performed in the 2017 through 2022 time-frame particularly in the Puget Sound ldquoEverett to Olympiardquo corridor By WSDOTrsquos own estimates (see Attachment A) public works construction project starts in the 2018 to 2022 time-frame in this region will exceed $333 billion (B) counting the work projected from just five public entities WSDOT will be taking a decidedly ldquoback seatrdquo role during this period to Sound Transit which will have construction project starts of $226B vs WSDOTrsquos projected volume of $67B WSDOTrsquos summary publication titled Washington State Department of Transportations Proposed Federal Highway Administration Triennium Disadvantaged Business Enterprise Goal Federal Fiscal Years 2018-2020 states correctly that ldquoIncluded among the types of evidence that must be considered are the current capacity of DBEs to perform work on WSDOTrsquos federally-assisted contracts as measured by the volume of work DBEs have performed in recent yearshelliprdquo (Step Two Adjustment discussion) With the Sound Transit program being over 300 larger than the total WSDOT program in this region a sober assessment of true certified DBE capacity in the next three years needs to be considered by WSDOT If the huge construction boom over the next five years does not prompt a Step Two Adjustment then it becomes obvious that the realities of the market are being ignored by WSDOT for DBE goal setting Put another way if the 2018 through 2022 level of contracting activity does not warrant a goal adjustment what will DBE Access Barriers Not Yet Addressed The CHA 2017 Disparity Study points out multiple recommendations in Section VII that impact DBE participation and access to the market Assessments relating to those impacts and the state of maturity in addressing the CHA recommendations should be considered when assessing the DBE goal Many of the CHA recommendation have not been adequately addressed at this point in time Some of the prime examples are listed below Increase Certification and Expertise ndash The Disparity Study as explained to us includes all minority- (MBE)

and women-owned (WBE) firms that could be readily identified that perform work within Washington State and that perform work within the NAICS code framework CHA developed to cover WSDOT project work During the various presentations relating to the Disparity Study WSDOT representatives said that outreach to currently non-certified MBE amp WBE firms has increased and that WSDOT aspires to bolster its list of certified firms in the future but this effort is just beginning and the success of the effort needs to be means tested against the broader population of MBE amp WBE firms included in the CHA base line evaluation As the Disparity Study uses a much broader population of MBE WBE contractors to arrive at its conclusions (both non-certified firms and firms too large for certification) it follows that the calculated DBE proposed goal is overstated to include capacity that does not currently exist within WSDOTrsquos certified DBE framework Unless OMWBE is experiencing sudden and unprecedented success in recruiting new MBEWBE firms the DBE goal should be adjusted downward to recognize that the ldquoready willing and ablerdquo contractors that WSDOT has certified is only a subset of the total MBEWBE contracting population used in the Disparity Study evaluation

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 3 of 6

Until the promised WSDOT outreach registration efforts result in a substantial increase in available certified DBE firms it is premature to count the entire population of minority- and women-owned contractors as available to participate in WSDOT contracting It is unreasonable for WSDOT to project availability capacity using the entire MBEWBE population when only its currently truncated list of certified firms is acceptable to count toward the DBE goal

A corollary to the Increase Certification and Expertise discussion above is that the calculation of the Base Figure evidently includes the broadest practical population of MBE and WBE firms identifiable (without a review of the CHA Master DBE Directory which has not been supplied prior to the close of the public comment period the scope of the directory cannot be ascertained) If this directory includes a large population of MBEWBE firms that are not certified or are too large to be certified then the Base Figure calculation should be adjusted to reflect that certified DBE firms are a fraction of the total MBEWBE firms used to arrive at the 19 suggested DBE goal With respect to the CHA Master Directory it is our understanding the WSDOT was not given the directory as part of its evaluation of the Disparity Study and it follows that it did not evaluate the proposed DBE goal in the context of the CHA Master DBE Directory In our opinion an informed decision on adjusting the CHA baseline goal calculation can only be done after an extensive evaluation of the CHA Master DBE Directory If this has not been done WSDOT has not exercised due diligence in evaluating the context and underpinnings of the CHA Disparity Study and a certified DBE Triennium goal proposal to the FHWA is premature Increase Contract ldquoUnbundlingrdquo ndash If this proposed strategy (suggested by the CHA Study) is undertaken

certified DBE Subcontractors currently available will be engaged as Prime Contractors and the value of their prime contracts will bolster the overall percentage of certified DBE contracting but a systematic effort and strategy to ldquounbundlerdquo has not been articulated by WSDOT The key question of how this effort can be accomplished without increased cost to the taxpayers and increased inconvenience for the traveling public As noted in the CHA study (page 129 final paragraph) ldquoUnbundling must be conducted however within the constraints of the need to ensure efficiency and limit cost to the taxpayersrdquo As of this writing no overarching strategy for further unbundling with proper accountability has been articulated by WSDOT to the DBE Advisory Group

Review Insurance and Experience Requirements ndash Impediments to certified DBE participation due to

necessary insurance and experience standards cannot be solved by the prime contracting community Unless and until WSDOT puts together programs to address the burden of the substantial risks shouldered by Prime Contractors on WSDOT contracts barriers for streamlined utilization of certified DBE firms will continue to exist These market driven barriers will continue to dampen the availability of certified DBE Subcontractors that are able to perform within WSDOTrsquos strict criteria without unduly transferring risk to the Prime Contractor

Better Partnering to Overcome DBE Failures to Perform ndash Prime Contractors are held fully responsible to maintain the project schedule and are subject to project liquidated damages even when they may be struggling to deal with Subcontractor performance issues It is well-established that replacing a certified ldquocondition of awardrdquo (COA) DBE Subcontractor is very onerous and likely very costly to the Prime Contractor Unfortunately the imposition of strict and often counter-productive commercially useful function (CUF) rules often compound this issue as Prime Contractors cannot help COA DBE Subcontractors work through capacity expertise or time-related issues that impact timely performance

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 4 of 6

WSDOT needs to be a much better partner in the process of dealing with under-performing or non-performing certified DBE Subcontractors The current standard operational procedure places all of the exposure for non-performance onto the Prime WSDOT does not have an equitable system to account for non-performing or under-performing certified DBE Subcontractors hired as a condition of award (COA)

Performance Information and Training ndash Commercially useful function rules (CUF) and the lack of clear benchmark definitions for good faith effort (GFE) standards remain barriers for improving accountability within the DBE system and in turn lead to distorted DBE participation rates These items remain amorphous due to lack of training or lack of historic information Chronic uncertainty exists regarding both of these items Until WSDOT changes and improves its approach to provide transparency and certainty for both the prime bidding amp subcontracting parties true certified DBE capacity will continue to be masked and the resultant higher subcontracting costs associated with a distorted marketplace will continue to be hidden

WAPA respectfully suggests that simply adding an ldquoEstimated DBE Subcontract Premiumrdquo line to the current DBE bid forms would help to establish benchmarks that could begin to be used to ldquomeans testrdquo good faith efforts If this information had been gathered over the last 20 years of the DBE program meaningful GFE standards could have been developed and could be in place today

An in-depth review of CUF standards would also provide clarity For instance it is unclear why force account items performed by certified DBEs are currently counted at only 50 of the value of the work How was this benchmark established Has it been reviewed since imposed Did it ldquosolverdquo whatever inequity WSDOT was trying to address Better clarity may lead to more expanded opportunities for certified DBE Subcontractors

Enhanced Supportive Services and Business Development Programs ndash Unless and until stronger programs of these types are shown to be effective in boosting certified DBE business development increased DBE participation due to stronger business acumen should not be relied upon when setting the new DBE goal

Does OMWBE have a reasonable expectation that future plans for enhanced and expanded programs will be more successful than those employed in the past Assuming that certified DBE Subcontractors will be better prepared to deal with the WSDOT contracting environment than in the past should not be relied upon to boost DBE participation goals Especially troubling were the multiple references within the CHA report highlighting that DBEs believe that the staff at OMWBE lack a deep knowledge about the highway construction industry (eg Study page 129 2nd paragraph) Does OMWBE have a path forward that will address this issue and thus improve supportive services impacts

Develop a Bonding and Financing Program for SBEs ndash This is completely outside of the prime contracting

communityrsquos scope of influence WSDOT must find a way to institute changes that both protect the taxpayer and help increase certified DBE bonding capacity and access to financing ndash very large hurtles To assume that these hurtles can effectively be overcome within the 2018 ndash 2020 time frame when they have been chromic issues for the past 20 plus years of DBE program development is not rational

A helpful innovation would be for WSDOT to underwrite performance and payment bonds for certified DBE firms or to create promote a system that helps certified DBE firms obtain private bonding Bridging the gap to address capital access and performance risks (bonding) must be championed by WSDOT

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 5 of 6

Base Figure Adjustment to Address Available Subcontract Volume and DBE Prime Contracts It is a fact that mid- to large-sized MBEWBE firms that compete both as Prime Contractors and as Subcontractors are not eligible to be OMWBE certified DBEs Further the current amount of contract unbundling for greater DBE access to WSDOT prime contracting (see below) accounts for a very low dollar volume of prime contracts performed by certified DBEs Finally by specification (WSDOT standard specification 1-081) Prime Contractors are obligated to perform 30 of the total volume of the work (less specialty work) or stated another way a maximum of 70 of the dollar volume on WSDOT projects is typically available to award to subcontractors These market dynamics are NOT addressed in the Disparity Study A responsible DBE goal made absent of these facts should not be implemented A reasonable adjustment to the proposed 19 DBE goal is presented below

bull The percent of WSDOT prime contracts awarded to certified DBE firms is likely less than 5 by total WSDOT

contract volume Assuming this approximation is valid (likely very conservative) then the amount of WSDOT contract work available to certified DBE firms via subcontracting should be adjusted to account for the factors outlined above The Base Figure (19) should be adjusted to recognize that a 70 maximum subcontractor participation is available (in the numerator) and to account for the assumed 5 certified DBE prime contracts in the denominator Reasonable Base Figure Adjustment 19 (proposed) x 70 subcontracts available divide 95 of Non-Certified DBEs as Prime Contract Volume = 190 x 0737 = 140 adjusted goal This is an adjustment based on the practical dynamics of the WSDOT contracting system and it represents a more realistic look at the true subcontract volume that is available for Prime Contractors to award to certified DBE firms

Conclusions

Until the items listed above are addressed and in place it is not reasonable to believe that DBE goals can be increased by nearly 163 (from 117 to 190) When the projected robust public works contracting market is appropriately considered the true availability of certified DBE Subcontractors for WSDOT contracts will be truncated due to demand across all public works sectors With multiple strong public works programs competing for a limited population of certified DBEs the ability to meet increased WSDOT DBE goals will be severely challenged Without very clear concise and transparent good faith effort rules the ability to address DBE goals that greatly overestimate true near term certified DBE capacity will result in non-attainment bid day chaos failures to perform andor rapidly increased pricing

The clear conclusion is that at this point in time under the current circumstances without effectively instituted new programs rules procedures that could enhance the certified DBE programrsquos overall effectiveness we believe that the DBE goal should remain at or near 12 As OMWBE documents and demonstrates its future successes in improving access and eliminating capacity barriers only then should the DBE goal be re-evaluated and increased

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 6 of 6

In closing please remember that it is rare that the contracting community is asked our opinion with respect to the WSDOTrsquos DBE policies and so this letter is somewhat a vehicle to highlight collective concerns It is our belief that the majority of the Prime Contractors in Washington state support the objective of creating a level playing field for ready willing and able DBEs

If the level playing field is not yet possible in the absence of the DBE program then the key is to set realistic goals that recognize reflect and address the hard realities and market dynamics imposed by WSDOTrsquos bedrock environment of awarding contracts to the lowest cost responsible and responsive Contractor

Respectfully submitted Washington Asphalt Pavement Association

David Gent Tom Gaetz Executive Director Senior Advisor

Attachment A ndash WSDOT Central Puget Sound Public Works Contracting Projection 2018 - 2022

Con

stru

ctio

n Pr

ojec

t Sta

rts

2018

-202

2S

ound

Tra

nsit

$22

6 B

SD

OT

$08

B

Tran

sit

amp O

ther

s$1

7 B

WS

DO

T$6

7 B

Por

t of

Sea

ttle

$15

B

TOTA

L$3

33

B

Source N

ov 1

9 2

017

pres

enta

tion

to W

APA

Ann

ual M

eetin

g

Attachment A

Work (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Dave Gent - WAPA [mailtodavegentasphaltwacom] Sent Thursday December 7 2017 144 PMTo Bayne Jackie ltBayneJwsdotwagovgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hi again Jackie Irsquom fine thanks and hope you are the same Interesting The Master DBE Directory is the basis for and integral to the conclusions of the DisparityStudy Is it not then part of the information needed to fully review and comment on the DisparityStudy Was it not provided by CHA to WSDOT for review We are trying to fully understand thestudy and if this directory was part of the study why would it need to be obtained by a publicrecords disclosure It should be in the public domain and not restricted from ease of access If you are sure that a public records request is needed Irsquoll start that process but we will need tonote that point of fact when we submit our public comments If you are able to reconsider please let me know Respectfully

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Thursday December 7 2017 126 PMTo Dave Gent - WAPA ltdavegentasphaltwacomgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hello Dave I hope you are doing well

That information would likely be obtained through a public disclosure request Best Regards Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Dave Gent - WAPA [mailtodavegentasphaltwacom] Sent Thursday December 7 2017 113 PMTo Bayne Jackie ltBayneJwsdotwagovgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Jackie Can you please provide an electronic file or provide a weblink for the Master DBE Directory thatColette Holt amp Associates developed for the WSDOT Disparity Study 2017 (first referred to on Page 8of the Disparity Study) I did not see a link to this Master DBE Directory within the study Thanks

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Friday October 27 2017 1118 AMTo Kenyon Wendy ltKenyonWwsdotwagovgt Adams E W ltewadamssystemsclcomgtAdekoyaAndrew ltandrewadekoyabccomgt AlyssaBalllegwagov Anindita Mitraltamitracrea-affiliatescomgt APRISeattlehotmailcom Armstrong CharlotteltCharlieAatgwagovgt Ato Apiafi Architects PLLC ltatoaatoapiaficomgt benzfanwaorgBerntsen Teresa (OMWBE) ltTeresaBomwbewagovgt Billingsley Andrealtbillinawsdotwagovgt Bramlet Erica ltEricaBramletlegwagovgt Brooks Julius

ltBrooksJwsdotwagovgt Brown Jason ltjbrownldccorpcomgt bwallacenwlaborersorgCamden Allison ltCamdenAwsdotwagovgt carlllivingstongmailcom Cerda OscarltCerdaOwsdotwagovgt Christopher Chris ltChristCwsdotwagovgt ckerneycaawagovdanplatinumbusinessgroupcom davegentasphaltwacom David BalltDavidsignsnowmillcreekcomgt Davis Khalia ltDavisKhwsdotwagovgt Davis RaShelle (GOVltrashelledavisgovwagovgt Dayton Jo ltDaytonJwsdotwagovgt ddhondtagcwacomDebbieDriverlegwagov Dennis ltdennisahlkiewitcomgt dmcleodnwlaborersorgdrart6651gmailcom Duncan Enid lthigradeincgmailcomgt EltonltEltonwashingtonstatetruckingcomgt eprincecaawagov flemosldccorpcomfmartineznwmtnmsdcorg geoffshookatkncom glovelady ltgloveladyexcelglovescomgtGrabow Katie ltkgrabowsystemsclcomgt Guilfucci Jackie ltJackieGuilfucciskanskacomgt HealyLinda ltHealyLwsdotwagovgt Higginbotham Breanne ltHigginBwsdotwagovgt HirscheyClaudia ltclaudiahirscheycomcastnetgt Holt Colette ltcoletteholtmwbelawcomgt Huff JohnltHuffJwsdotwagovgt Iniguezchawagov JacksonMaynardlegwagov Jimmy Matta(jmattaalcantarassoccom) ltjmattaalcantarassoccomgt kellywickergovwagov Key EarlltKeyEwsdotwagovgt Kirk Jon ltjkirkwhhnfscomgt Kris Purrier ltkpurrierhwageocomgtleewabuildingtradesorg lesliejonessoundtransitorg Liz Evans ltlevansagcwacomgt LopezErin lterinlopezdeswagovgt Martha Cerna ltMarthaPSLCCORGgt Martin-Arnold EdwinaltMartinEwsdotwagovgt Mary Lerdahl ltmarydbeelectricinccomgt McCarty Hannahlthannahmccartylegwagovgt Melissa L Boyles ltmelissaboylesmwbelawcomgt Metcalf KeithltMetcalKwsdotwagovgt michaelicapaawagov Michelle ltMichelleTTCC26netgt MillarRoger ltMillarRwsdotwagovgt Nakamura Jason ltjasonnakamura1-alliancecomgtNavarroLportseattleorg olliepmt-solutionscom pastorbanksesbctacomacom PatrickHughes ltphugheshughesgroupbizgt Petersen Jodi (FHWA) ltJodiPetersendotgovgtrabbottliunaorg rcarmsteadgmailcom ricemportseattleorg Riley D ltdrileylydigcomgtSeling ltSelingjpfranciscomgt sherryharrisergosynchcom Stell MellodyltStellMwsdotwagovgt terigobintulaliptribes-nsngov timwilliamfactorycom tinaterra-tdicom tkellyldccorpcom tomgaetzmsncom vcollinsacec-waorgverlenejazzmsncom Wang Albert ltWangAatgwagovgt Waugh GregltGregWMaxKuneyComgt Yates Henry ltYatesHWSDOTWAGOVgtCc Tom Gaetz lttomgaetzmsncomgt Dave Gent - WAPA ltdavegentasphaltwacomgt VanCollins ltvcollinsacec-waorggt Daniel Seydel II ltdanplatinumbusinessgroupcomgt MaynardJackson ltJacksonMaynardlegwagovgt Carl Livingston ltcarlllivingstongmailcomgt DonMcLeod ltdmcleodnwlaborersorggt JIMMY MATTA ltjimmymattamsncomgt Prince Ed(CAAA) lteprincecaawagovgt David DHondt ltddhondtagcwacomgt Irene Reyesltgloveladyexcelsupplycompanycomgt McDaniel Craig ltMcDaniCwsdotwagovgtsherryharrisergosynchcomSubject WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Good morning On Monday October 30th WSDOT will be releasing the proposed overall Federal HighwayAdministration Disadvantaged Business Enterprise goal attached for public comment throughDecember 15 2017 This overall DBE goal is based upon the recently completely DBE ProgramDisparity Study WSDOT is proposing a 19 percent overall DBE participation goal on Federal Highway

Administration-funded projects for federal fiscal years 2018 through 2020 DBE goals fortransportation projects that receive federal funds represent a percentage of the value of work inwhich minority- and women-owned businesses should participate Once finalized and submitted toFHWA early next year the goal will be effective through Sept 30 2020

The purpose of the DBE program is to create a level playing field for firms owned and operated bydisadvantaged individuals wanting to participate in federally assisted highway transit and aviationprograms The attached overall DBE goal is for FHWA funded projects WSDOT will be updating theFTA and FAA overall DBE goals in the near future

If you have any questions please contact Earl Key Director of the Office of Equal Opportunity at3607057091 or KeyEwsdotwagov Thank you Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

  • Proof-Of-Publicationpdf
    • Mediapdf
      • AGC
      • Daily Journal
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      • DBEGood
      • OMWBE
      • Seattle Medium
      • Tabor 100
      • The Chronicle
      • Tukwila
        • King County
          • Public-Comments-20180111pdf
            • 19 DBE Requirement(1)
            • AGC Comments on Proposed 10 Goad
            • Backstrom Curb amp Sidewalk
            • comments on WSDOT proposed DBE goal
            • Cowlitz County Public Works
            • DBE Contracting goals
            • DBE Goal
            • DBE Program Disparity Study
            • Disparity Study Comments from City of Spokane
            • FW_ WSDOT News - WSDOT seeks comments on propos
            • Proposed DBE Goals
            • RE_ DBE Contracting Goal Comments
            • Re_ DBE Goal Comments
            • Re_ Seydel Dan - WSDOT Disparity Study Present
            • Support for WSDOTs proposed DBE goal
            • Why we need mandatory goals
            • WSDOT DBE Goal - Comment in support
            • WSDOT Proposes DBE goal of 19
            • WSDOT propsed DBE Goals
            • WTS - Disparity Study Comment Letter

From Erin EhlingerTo Bayne JackieSubject Support for WSDOTs proposed DBE goalDate Wednesday December 13 2017 115417 AM

I am writing to support the WSDOT recommended DBE Goal for FHWA contracts of 190 I also want to express my appreciation for the thoroughness of the WSDOT Disparity study and howthe study disclosed the disparity in WSDOT contracts that do not have a DBE or WBE goal ndash furtherreinforcing that all women-owned firms and minority owned firms face equity issues I remain concerned with the methodology required by the Code of Federal Regulations and case lawbecause of the dependence on the availability of firms in the calculation An unintendedconsequence of removing either gender or race from the goal is that many of these firms would goout of business the availability decreases and the formula then results in a smaller DBE goal Pleaselet me know how I can help influence a change to the CFR Thank you Erin Ehlinger

Erin Ehlinger PEPresident

24036 SE 47th StSammamish WA 98029erinehlingersmartcitytrafficcom425-221-0320

From Jackie EtterTo WSDOT Disparity StudySubject Why we need mandatory goalsDate Friday December 1 2017 61859 PM

As a DBE participating in bidding process I have found that regardless of the language which claims to insurethat disadvantaged business enterprises shall not be discriminated against the only way to ensure that this does nothappen is by mandating affirmative action goals Having been overlooked time and time again because of my gender when I have submitted bids that are verycompetitive with other bidders is very frustrating I have had many instances of companies using my price to getmy non DBE competitors to lower theirs The voluntary or laudatory DBE goals do nothing to ensure a level playing fieldThe only way to ensure non-discrimination is through mandatory goals

Jackie EtterWest Star Construction of Spokane

Sent from my iPhone

From Claudia HirscheyTo Key Earl Bayne JackieSubject WSDOT DBE Goal - Comment in supportDate Tuesday December 12 2017 61937 PM

Dear Earl and Jackie The WSDOT recommended DBE Goal for FHWA contracts of 190 is a small and important increasethat can further achieve equity in WSDOTFHWA contracting I am in support of the 19 DBE Goal I also want to express my appreciation for the thoroughness of the WSDOT Disparity study and howthe study disclosed the disparity in WSDOT contracts that do not have a DBE or WBE goal ndash furtherreinforcing that all women-owned firms and minority owned firms face equity issues I remain concerned with the methodology required by the Code of Federal Regulations and case lawbecause of the dependence on the availability of firms in the calculation An unintendedconsequence of removing either gender or race from the goal is that many of these firms would goout of business the availability decreases and the formula then results in a smaller DBE goal Sincerely Claudia S Hirschey PETransportation Consulting Servicesclaudiahirscheycomcastnethttphirscheytcscom2068564988 Mobile

From Nate ThomasTo WSDOT Disparity StudySubject WSDOT Proposes DBE goal of 19Date Thursday December 7 2017 42720 PM

The WSDOT should look into similar ways the Federal Gov has handled the equal opportunity forthose that fall under the DBE status and set aside specific projects for the DBErsquos and moreimportantly UDBErsquos so these companies have better chance of landing contracts Maybe a lot 10 ofthe DBE goal to set aside for only DBEs and other 9 goal met as it is done currently with COA onlarger contracts Nate ThomasSenior EstimatorD 5095688085 | C 5099941156331 North Fancher Road | Spokane WA | 99212

The information contained in this email including any attachments is confidential and may beprivileged It is intended only for the person or entity to which it is addressed and no waiver isintended by sending this email If the reader is not the intended recipient you are herebynotified that any review retransmission dissemination or other use of or taking any action inreliance upon this information is strictly prohibited If you have received this email in errorkindly notify the sender by reply email and delete the original message from any computerThank You

From Brian FujiiTo WSDOT Disparity StudySubject WSDOT propsed DBE GoalsDate Thursday December 7 2017 110638 AM

Good morning Jackie

I wanted to comment on WSDOTs proposed DBE goal to 19 I believe WSDOTs plan toincrease the overall DBE goal to 19 will provide greater opportunities for DBE contractorsin different disciplines to participate in federally funded contracts

Without the new DBE requirement and with Proposition 200 there are limited opportunitiesfor DBE contractors in disciplines different than the typical trucking flagging and rebar Inaddition there are no incentives for general contractors to go out beyond the usual truckingflagging and rebar DBE subcontractors

Increasing the DBE goals will provide opportunities for different DBE contractors in differentdisciplines to participate in WSDOT federally funded projects

Thank you for your time

RespectfullyBrian FujiiPresident Subsurface ConstructionP 2063836478F 2069604639MDBE 4M0024998

From Forman StephanieTo Bayne JackieCc Millar Roger christinenhanmailhousegov Claudia Hirschey Sarah Corbin Jiang Yingle

efaulknerenviroissuescom Diana Giraldo Kelly CheesemanSubject WTS - Disparity Study Comment LetterDate Friday December 15 2017 71020 PMAttachments 2017_Dec 15_WTSCommentLetter_WSDOT DBE Goalpdf

Dear Ms Bayne Please find our attached letter which summarizes the WTS Puget Sound Chapterrsquos support foradvancement of women in transportation and our comment letter regarding the recent DisparityStudy Please feel free to contact me if you have any questions or would like to discuss Sincerely Stephanie S Forman PEWTS Puget Sound President Transportation Project Manager

929 108th Avenue NE Suite 1300Bellevue WA 98004D 4254681548 M 2062291745stephanieformanhdrinccom

December 15 2017

Jackie Bayne Policy and Reporting Manager

Office of Equal Opportunity

Washington State Department of Transportation

PO Box 47314

Olympia WA 98504-7314

Dear Ms Bayne

On behalf of the Puget Sound Chapter of Womenrsquos Transportation Seminar (WTS) we would

like to thank the Washington State Department of Transportation for presenting to our

organization the DBE Disparity Study results We very much appreciated the presentation by Earl

Key Director of WSDOTrsquos Office of Equal Opportunity Teresa Berntsen (Director Office of Minority

and Womens Business Enterprises) as well as Leslie Jones (Director Sound Transit Office of Small

Business Development and Labor Compliance)

Following a review of the WSDOT Disparity Study and as a result of consultation with WTS

International we would like to provide WSDOT with our comments for your consideration

As you know WTS is an organization focused exclusively on attracting retaining and advancing

women in transportation By the year 2018 there will be thousands of vacancies in the

transportation industry for qualified professionals and while women account for more than half of

the worldrsquos workforce they are a very small minority in transportation disciplines

We are pleased that the outcome of the 2017 Disparity Study that recognizes the on-going barriers

for DBEs including women-owned businesses in transportation The WSDOT recommended DBE

Goal of 190 is a small and important increase that can further achieve equity in WSDOTFHWA

contracting We are also pleased that the 2017 Disparity Study has documented the disparity in

WSDOT contracts that do not have a DBE or WBE goal ndash further reinforcing that all women-owned

firms and minority owned firms face equity issues We are encouraged that the WSDOT has asked

FHWA to rescind the 2016 waiver

While WTSrsquo mission is specific to the advancement of women we are a race-neutral organization To

this end we are also deeply concerned about the underutilization of minority owned firms There is

no equity or ldquofair playing fieldrdquo without equity for all gender and races We remained concerned with

the methodology required by the Code of Federal Regulations and case law because of the

dependence on the availability of firms in the calculation An unintended consequence of removing

either gender or race from the goal is that many of these firms would go out of business the

availability decreases and the formula then results in a smaller DBE goal This consequence is

contrary to our mission

We look forward to our continued participation in WSDOTrsquos DBE advisory group we are anticipating

notice that the 2016 waiver has been rescinded and how we can work together to continue

advancing minority and women-owned firms in the transportation field

Sincerely

WTS Puget Sound Chapter

Stephanie Forman

President

C Roger Millar Secretary WSDOT

C Representative Adam Smith 9th Congressional District Washington co Christine Nhan

WTS Puget Sound Chapter

PO Box 3461

Bellevue Washington 98009

From Dave Gent - WAPATo Bayne JackieCc Tom GaetzSubject WAPA Public Comments - RE WSDOT FHWA Disadvantaged Business Enterprise Proposed GoalDate Friday December 15 2017 14119 PMAttachments 12152017 DBE Proposed Goal - WAPA Public Comments Letterpdf

Good afternoon Jackie Please find attached WAPArsquos ldquofor the public recordrdquo comments with respect to WSDOTrsquos proposedDBE Goals FHWA funded work I assume that the Master DBE Directory was not sent to you this week so as a result we were notable to review the directory before the close of the public comment period That fact is noted withinour comment letter Thank you for your efforts Have a good weekend

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Friday December 8 2017 1219 PMTo Dave Gent - WAPA ltdavegentasphaltwacomgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hello Dave WSDOT did not take possession of this directory as part of our review process We will provide youwith the records without submitting a formal request However we need to get them from theconsultant first I will hopefully have them to provide next week I will keep you updated on therequest Have a nice weekend Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal Opportunity

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

December 15 2017

Jackie Bayne Policy Manager WSDOT Office of Equal Opportunity Delivered via e-mail to BayneJwsdotwagov RE Public Comment (as requested) to Proposed Overall DBE Goal for the FHWA (2018 ndash 2020) Ms Bayne Thank you for your presentation via webinar on December 5 2017 outlining WSDOTrsquos evaluation process used to determine the proposed overall DBE goal for the FHWA Thank you also for the Colette Holt amp Associates (CHA) DBE Advisory Group presentation made on September 14 2017 Both presentations helped to distill the findings of the 2017 Disparity Study produced by CHA In response to Earl Keyrsquos initial informal request to comment on the proposed overall DBE goal made during the DBE Advisory Committee teleconference held on October 12th we provided a list of reasons that we believe justify a lower DBE goal than is now being proposed Our initial response to Mr Keyrsquos request did not serve to influence WSDOT and the current proposed goal remains at 190 The arguments provided on October 12th against the significant increase in the proposed DBE goal (versus the previous goal and recent historic DBE participation) are repeated and supplemented below and will serve as the Asphalt Pavement Associationrsquos (WAPArsquos) official public comments

In concert with WSDOT and the OWMBE WAPA and the construction firms that WAPA represents have demonstrated a commitment to the principals of equal opportunity for all ldquoready willing and ablerdquo firms for the entire history that our DBE program has been in place WAPA has continuously demonstrated its commitment to the goals of the DBE program and for increasing the representation of disadvantaged groups within our industry as both workers and owners of firms Please recognize that WAPArsquos oversight and critique of the DBE program has always attempted to balance the principals of fair and open competition with the practical aspects of the low bid compressed schedule high performance standards demanded within the WSDOT marketplace Our comments below are meant to enhance WSDOTrsquos and OWMBErsquos understanding of the market and to hopefully have WSDOT fully consider all of the dynamics that are at play when proposing its Triennial DBE goal for FHWA projects Current DBE Capacity vs Historically Robust Market In advocating for a realistic and defensible DBE goal it has always been WAPArsquos position that it is paramount that the realities of the marketplace and true certified DBE subcontracting capacity should be a primary standard While a ldquostretchrdquo goal may appear to be progressive on its face it comes with consequences for all of the parties involved in the WSDOT federal aid contracting arena To balance the dynamics of the WSDOT contracting system the DBE goal should be tempered with the realities of the market and with a true measure of the underlying effectiveness of the DBE support services available to contractors

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 2 of 6 The first point of fact that has not been given any apparent consideration by WSDOT in its evaluation of the current capacity of certified DBErsquos is that there is an historically robust workload scheduled to be performed in the 2017 through 2022 time-frame particularly in the Puget Sound ldquoEverett to Olympiardquo corridor By WSDOTrsquos own estimates (see Attachment A) public works construction project starts in the 2018 to 2022 time-frame in this region will exceed $333 billion (B) counting the work projected from just five public entities WSDOT will be taking a decidedly ldquoback seatrdquo role during this period to Sound Transit which will have construction project starts of $226B vs WSDOTrsquos projected volume of $67B WSDOTrsquos summary publication titled Washington State Department of Transportations Proposed Federal Highway Administration Triennium Disadvantaged Business Enterprise Goal Federal Fiscal Years 2018-2020 states correctly that ldquoIncluded among the types of evidence that must be considered are the current capacity of DBEs to perform work on WSDOTrsquos federally-assisted contracts as measured by the volume of work DBEs have performed in recent yearshelliprdquo (Step Two Adjustment discussion) With the Sound Transit program being over 300 larger than the total WSDOT program in this region a sober assessment of true certified DBE capacity in the next three years needs to be considered by WSDOT If the huge construction boom over the next five years does not prompt a Step Two Adjustment then it becomes obvious that the realities of the market are being ignored by WSDOT for DBE goal setting Put another way if the 2018 through 2022 level of contracting activity does not warrant a goal adjustment what will DBE Access Barriers Not Yet Addressed The CHA 2017 Disparity Study points out multiple recommendations in Section VII that impact DBE participation and access to the market Assessments relating to those impacts and the state of maturity in addressing the CHA recommendations should be considered when assessing the DBE goal Many of the CHA recommendation have not been adequately addressed at this point in time Some of the prime examples are listed below Increase Certification and Expertise ndash The Disparity Study as explained to us includes all minority- (MBE)

and women-owned (WBE) firms that could be readily identified that perform work within Washington State and that perform work within the NAICS code framework CHA developed to cover WSDOT project work During the various presentations relating to the Disparity Study WSDOT representatives said that outreach to currently non-certified MBE amp WBE firms has increased and that WSDOT aspires to bolster its list of certified firms in the future but this effort is just beginning and the success of the effort needs to be means tested against the broader population of MBE amp WBE firms included in the CHA base line evaluation As the Disparity Study uses a much broader population of MBE WBE contractors to arrive at its conclusions (both non-certified firms and firms too large for certification) it follows that the calculated DBE proposed goal is overstated to include capacity that does not currently exist within WSDOTrsquos certified DBE framework Unless OMWBE is experiencing sudden and unprecedented success in recruiting new MBEWBE firms the DBE goal should be adjusted downward to recognize that the ldquoready willing and ablerdquo contractors that WSDOT has certified is only a subset of the total MBEWBE contracting population used in the Disparity Study evaluation

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 3 of 6

Until the promised WSDOT outreach registration efforts result in a substantial increase in available certified DBE firms it is premature to count the entire population of minority- and women-owned contractors as available to participate in WSDOT contracting It is unreasonable for WSDOT to project availability capacity using the entire MBEWBE population when only its currently truncated list of certified firms is acceptable to count toward the DBE goal

A corollary to the Increase Certification and Expertise discussion above is that the calculation of the Base Figure evidently includes the broadest practical population of MBE and WBE firms identifiable (without a review of the CHA Master DBE Directory which has not been supplied prior to the close of the public comment period the scope of the directory cannot be ascertained) If this directory includes a large population of MBEWBE firms that are not certified or are too large to be certified then the Base Figure calculation should be adjusted to reflect that certified DBE firms are a fraction of the total MBEWBE firms used to arrive at the 19 suggested DBE goal With respect to the CHA Master Directory it is our understanding the WSDOT was not given the directory as part of its evaluation of the Disparity Study and it follows that it did not evaluate the proposed DBE goal in the context of the CHA Master DBE Directory In our opinion an informed decision on adjusting the CHA baseline goal calculation can only be done after an extensive evaluation of the CHA Master DBE Directory If this has not been done WSDOT has not exercised due diligence in evaluating the context and underpinnings of the CHA Disparity Study and a certified DBE Triennium goal proposal to the FHWA is premature Increase Contract ldquoUnbundlingrdquo ndash If this proposed strategy (suggested by the CHA Study) is undertaken

certified DBE Subcontractors currently available will be engaged as Prime Contractors and the value of their prime contracts will bolster the overall percentage of certified DBE contracting but a systematic effort and strategy to ldquounbundlerdquo has not been articulated by WSDOT The key question of how this effort can be accomplished without increased cost to the taxpayers and increased inconvenience for the traveling public As noted in the CHA study (page 129 final paragraph) ldquoUnbundling must be conducted however within the constraints of the need to ensure efficiency and limit cost to the taxpayersrdquo As of this writing no overarching strategy for further unbundling with proper accountability has been articulated by WSDOT to the DBE Advisory Group

Review Insurance and Experience Requirements ndash Impediments to certified DBE participation due to

necessary insurance and experience standards cannot be solved by the prime contracting community Unless and until WSDOT puts together programs to address the burden of the substantial risks shouldered by Prime Contractors on WSDOT contracts barriers for streamlined utilization of certified DBE firms will continue to exist These market driven barriers will continue to dampen the availability of certified DBE Subcontractors that are able to perform within WSDOTrsquos strict criteria without unduly transferring risk to the Prime Contractor

Better Partnering to Overcome DBE Failures to Perform ndash Prime Contractors are held fully responsible to maintain the project schedule and are subject to project liquidated damages even when they may be struggling to deal with Subcontractor performance issues It is well-established that replacing a certified ldquocondition of awardrdquo (COA) DBE Subcontractor is very onerous and likely very costly to the Prime Contractor Unfortunately the imposition of strict and often counter-productive commercially useful function (CUF) rules often compound this issue as Prime Contractors cannot help COA DBE Subcontractors work through capacity expertise or time-related issues that impact timely performance

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 4 of 6

WSDOT needs to be a much better partner in the process of dealing with under-performing or non-performing certified DBE Subcontractors The current standard operational procedure places all of the exposure for non-performance onto the Prime WSDOT does not have an equitable system to account for non-performing or under-performing certified DBE Subcontractors hired as a condition of award (COA)

Performance Information and Training ndash Commercially useful function rules (CUF) and the lack of clear benchmark definitions for good faith effort (GFE) standards remain barriers for improving accountability within the DBE system and in turn lead to distorted DBE participation rates These items remain amorphous due to lack of training or lack of historic information Chronic uncertainty exists regarding both of these items Until WSDOT changes and improves its approach to provide transparency and certainty for both the prime bidding amp subcontracting parties true certified DBE capacity will continue to be masked and the resultant higher subcontracting costs associated with a distorted marketplace will continue to be hidden

WAPA respectfully suggests that simply adding an ldquoEstimated DBE Subcontract Premiumrdquo line to the current DBE bid forms would help to establish benchmarks that could begin to be used to ldquomeans testrdquo good faith efforts If this information had been gathered over the last 20 years of the DBE program meaningful GFE standards could have been developed and could be in place today

An in-depth review of CUF standards would also provide clarity For instance it is unclear why force account items performed by certified DBEs are currently counted at only 50 of the value of the work How was this benchmark established Has it been reviewed since imposed Did it ldquosolverdquo whatever inequity WSDOT was trying to address Better clarity may lead to more expanded opportunities for certified DBE Subcontractors

Enhanced Supportive Services and Business Development Programs ndash Unless and until stronger programs of these types are shown to be effective in boosting certified DBE business development increased DBE participation due to stronger business acumen should not be relied upon when setting the new DBE goal

Does OMWBE have a reasonable expectation that future plans for enhanced and expanded programs will be more successful than those employed in the past Assuming that certified DBE Subcontractors will be better prepared to deal with the WSDOT contracting environment than in the past should not be relied upon to boost DBE participation goals Especially troubling were the multiple references within the CHA report highlighting that DBEs believe that the staff at OMWBE lack a deep knowledge about the highway construction industry (eg Study page 129 2nd paragraph) Does OMWBE have a path forward that will address this issue and thus improve supportive services impacts

Develop a Bonding and Financing Program for SBEs ndash This is completely outside of the prime contracting

communityrsquos scope of influence WSDOT must find a way to institute changes that both protect the taxpayer and help increase certified DBE bonding capacity and access to financing ndash very large hurtles To assume that these hurtles can effectively be overcome within the 2018 ndash 2020 time frame when they have been chromic issues for the past 20 plus years of DBE program development is not rational

A helpful innovation would be for WSDOT to underwrite performance and payment bonds for certified DBE firms or to create promote a system that helps certified DBE firms obtain private bonding Bridging the gap to address capital access and performance risks (bonding) must be championed by WSDOT

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 5 of 6

Base Figure Adjustment to Address Available Subcontract Volume and DBE Prime Contracts It is a fact that mid- to large-sized MBEWBE firms that compete both as Prime Contractors and as Subcontractors are not eligible to be OMWBE certified DBEs Further the current amount of contract unbundling for greater DBE access to WSDOT prime contracting (see below) accounts for a very low dollar volume of prime contracts performed by certified DBEs Finally by specification (WSDOT standard specification 1-081) Prime Contractors are obligated to perform 30 of the total volume of the work (less specialty work) or stated another way a maximum of 70 of the dollar volume on WSDOT projects is typically available to award to subcontractors These market dynamics are NOT addressed in the Disparity Study A responsible DBE goal made absent of these facts should not be implemented A reasonable adjustment to the proposed 19 DBE goal is presented below

bull The percent of WSDOT prime contracts awarded to certified DBE firms is likely less than 5 by total WSDOT

contract volume Assuming this approximation is valid (likely very conservative) then the amount of WSDOT contract work available to certified DBE firms via subcontracting should be adjusted to account for the factors outlined above The Base Figure (19) should be adjusted to recognize that a 70 maximum subcontractor participation is available (in the numerator) and to account for the assumed 5 certified DBE prime contracts in the denominator Reasonable Base Figure Adjustment 19 (proposed) x 70 subcontracts available divide 95 of Non-Certified DBEs as Prime Contract Volume = 190 x 0737 = 140 adjusted goal This is an adjustment based on the practical dynamics of the WSDOT contracting system and it represents a more realistic look at the true subcontract volume that is available for Prime Contractors to award to certified DBE firms

Conclusions

Until the items listed above are addressed and in place it is not reasonable to believe that DBE goals can be increased by nearly 163 (from 117 to 190) When the projected robust public works contracting market is appropriately considered the true availability of certified DBE Subcontractors for WSDOT contracts will be truncated due to demand across all public works sectors With multiple strong public works programs competing for a limited population of certified DBEs the ability to meet increased WSDOT DBE goals will be severely challenged Without very clear concise and transparent good faith effort rules the ability to address DBE goals that greatly overestimate true near term certified DBE capacity will result in non-attainment bid day chaos failures to perform andor rapidly increased pricing

The clear conclusion is that at this point in time under the current circumstances without effectively instituted new programs rules procedures that could enhance the certified DBE programrsquos overall effectiveness we believe that the DBE goal should remain at or near 12 As OMWBE documents and demonstrates its future successes in improving access and eliminating capacity barriers only then should the DBE goal be re-evaluated and increased

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 6 of 6

In closing please remember that it is rare that the contracting community is asked our opinion with respect to the WSDOTrsquos DBE policies and so this letter is somewhat a vehicle to highlight collective concerns It is our belief that the majority of the Prime Contractors in Washington state support the objective of creating a level playing field for ready willing and able DBEs

If the level playing field is not yet possible in the absence of the DBE program then the key is to set realistic goals that recognize reflect and address the hard realities and market dynamics imposed by WSDOTrsquos bedrock environment of awarding contracts to the lowest cost responsible and responsive Contractor

Respectfully submitted Washington Asphalt Pavement Association

David Gent Tom Gaetz Executive Director Senior Advisor

Attachment A ndash WSDOT Central Puget Sound Public Works Contracting Projection 2018 - 2022

Con

stru

ctio

n Pr

ojec

t Sta

rts

2018

-202

2S

ound

Tra

nsit

$22

6 B

SD

OT

$08

B

Tran

sit

amp O

ther

s$1

7 B

WS

DO

T$6

7 B

Por

t of

Sea

ttle

$15

B

TOTA

L$3

33

B

Source N

ov 1

9 2

017

pres

enta

tion

to W

APA

Ann

ual M

eetin

g

Attachment A

Work (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Dave Gent - WAPA [mailtodavegentasphaltwacom] Sent Thursday December 7 2017 144 PMTo Bayne Jackie ltBayneJwsdotwagovgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hi again Jackie Irsquom fine thanks and hope you are the same Interesting The Master DBE Directory is the basis for and integral to the conclusions of the DisparityStudy Is it not then part of the information needed to fully review and comment on the DisparityStudy Was it not provided by CHA to WSDOT for review We are trying to fully understand thestudy and if this directory was part of the study why would it need to be obtained by a publicrecords disclosure It should be in the public domain and not restricted from ease of access If you are sure that a public records request is needed Irsquoll start that process but we will need tonote that point of fact when we submit our public comments If you are able to reconsider please let me know Respectfully

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Thursday December 7 2017 126 PMTo Dave Gent - WAPA ltdavegentasphaltwacomgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hello Dave I hope you are doing well

That information would likely be obtained through a public disclosure request Best Regards Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Dave Gent - WAPA [mailtodavegentasphaltwacom] Sent Thursday December 7 2017 113 PMTo Bayne Jackie ltBayneJwsdotwagovgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Jackie Can you please provide an electronic file or provide a weblink for the Master DBE Directory thatColette Holt amp Associates developed for the WSDOT Disparity Study 2017 (first referred to on Page 8of the Disparity Study) I did not see a link to this Master DBE Directory within the study Thanks

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Friday October 27 2017 1118 AMTo Kenyon Wendy ltKenyonWwsdotwagovgt Adams E W ltewadamssystemsclcomgtAdekoyaAndrew ltandrewadekoyabccomgt AlyssaBalllegwagov Anindita Mitraltamitracrea-affiliatescomgt APRISeattlehotmailcom Armstrong CharlotteltCharlieAatgwagovgt Ato Apiafi Architects PLLC ltatoaatoapiaficomgt benzfanwaorgBerntsen Teresa (OMWBE) ltTeresaBomwbewagovgt Billingsley Andrealtbillinawsdotwagovgt Bramlet Erica ltEricaBramletlegwagovgt Brooks Julius

ltBrooksJwsdotwagovgt Brown Jason ltjbrownldccorpcomgt bwallacenwlaborersorgCamden Allison ltCamdenAwsdotwagovgt carlllivingstongmailcom Cerda OscarltCerdaOwsdotwagovgt Christopher Chris ltChristCwsdotwagovgt ckerneycaawagovdanplatinumbusinessgroupcom davegentasphaltwacom David BalltDavidsignsnowmillcreekcomgt Davis Khalia ltDavisKhwsdotwagovgt Davis RaShelle (GOVltrashelledavisgovwagovgt Dayton Jo ltDaytonJwsdotwagovgt ddhondtagcwacomDebbieDriverlegwagov Dennis ltdennisahlkiewitcomgt dmcleodnwlaborersorgdrart6651gmailcom Duncan Enid lthigradeincgmailcomgt EltonltEltonwashingtonstatetruckingcomgt eprincecaawagov flemosldccorpcomfmartineznwmtnmsdcorg geoffshookatkncom glovelady ltgloveladyexcelglovescomgtGrabow Katie ltkgrabowsystemsclcomgt Guilfucci Jackie ltJackieGuilfucciskanskacomgt HealyLinda ltHealyLwsdotwagovgt Higginbotham Breanne ltHigginBwsdotwagovgt HirscheyClaudia ltclaudiahirscheycomcastnetgt Holt Colette ltcoletteholtmwbelawcomgt Huff JohnltHuffJwsdotwagovgt Iniguezchawagov JacksonMaynardlegwagov Jimmy Matta(jmattaalcantarassoccom) ltjmattaalcantarassoccomgt kellywickergovwagov Key EarlltKeyEwsdotwagovgt Kirk Jon ltjkirkwhhnfscomgt Kris Purrier ltkpurrierhwageocomgtleewabuildingtradesorg lesliejonessoundtransitorg Liz Evans ltlevansagcwacomgt LopezErin lterinlopezdeswagovgt Martha Cerna ltMarthaPSLCCORGgt Martin-Arnold EdwinaltMartinEwsdotwagovgt Mary Lerdahl ltmarydbeelectricinccomgt McCarty Hannahlthannahmccartylegwagovgt Melissa L Boyles ltmelissaboylesmwbelawcomgt Metcalf KeithltMetcalKwsdotwagovgt michaelicapaawagov Michelle ltMichelleTTCC26netgt MillarRoger ltMillarRwsdotwagovgt Nakamura Jason ltjasonnakamura1-alliancecomgtNavarroLportseattleorg olliepmt-solutionscom pastorbanksesbctacomacom PatrickHughes ltphugheshughesgroupbizgt Petersen Jodi (FHWA) ltJodiPetersendotgovgtrabbottliunaorg rcarmsteadgmailcom ricemportseattleorg Riley D ltdrileylydigcomgtSeling ltSelingjpfranciscomgt sherryharrisergosynchcom Stell MellodyltStellMwsdotwagovgt terigobintulaliptribes-nsngov timwilliamfactorycom tinaterra-tdicom tkellyldccorpcom tomgaetzmsncom vcollinsacec-waorgverlenejazzmsncom Wang Albert ltWangAatgwagovgt Waugh GregltGregWMaxKuneyComgt Yates Henry ltYatesHWSDOTWAGOVgtCc Tom Gaetz lttomgaetzmsncomgt Dave Gent - WAPA ltdavegentasphaltwacomgt VanCollins ltvcollinsacec-waorggt Daniel Seydel II ltdanplatinumbusinessgroupcomgt MaynardJackson ltJacksonMaynardlegwagovgt Carl Livingston ltcarlllivingstongmailcomgt DonMcLeod ltdmcleodnwlaborersorggt JIMMY MATTA ltjimmymattamsncomgt Prince Ed(CAAA) lteprincecaawagovgt David DHondt ltddhondtagcwacomgt Irene Reyesltgloveladyexcelsupplycompanycomgt McDaniel Craig ltMcDaniCwsdotwagovgtsherryharrisergosynchcomSubject WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Good morning On Monday October 30th WSDOT will be releasing the proposed overall Federal HighwayAdministration Disadvantaged Business Enterprise goal attached for public comment throughDecember 15 2017 This overall DBE goal is based upon the recently completely DBE ProgramDisparity Study WSDOT is proposing a 19 percent overall DBE participation goal on Federal Highway

Administration-funded projects for federal fiscal years 2018 through 2020 DBE goals fortransportation projects that receive federal funds represent a percentage of the value of work inwhich minority- and women-owned businesses should participate Once finalized and submitted toFHWA early next year the goal will be effective through Sept 30 2020

The purpose of the DBE program is to create a level playing field for firms owned and operated bydisadvantaged individuals wanting to participate in federally assisted highway transit and aviationprograms The attached overall DBE goal is for FHWA funded projects WSDOT will be updating theFTA and FAA overall DBE goals in the near future

If you have any questions please contact Earl Key Director of the Office of Equal Opportunity at3607057091 or KeyEwsdotwagov Thank you Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

  • Proof-Of-Publicationpdf
    • Mediapdf
      • AGC
      • Daily Journal
      • Daily Medium
      • DBEGood
      • OMWBE
      • Seattle Medium
      • Tabor 100
      • The Chronicle
      • Tukwila
        • King County
          • Public-Comments-20180111pdf
            • 19 DBE Requirement(1)
            • AGC Comments on Proposed 10 Goad
            • Backstrom Curb amp Sidewalk
            • comments on WSDOT proposed DBE goal
            • Cowlitz County Public Works
            • DBE Contracting goals
            • DBE Goal
            • DBE Program Disparity Study
            • Disparity Study Comments from City of Spokane
            • FW_ WSDOT News - WSDOT seeks comments on propos
            • Proposed DBE Goals
            • RE_ DBE Contracting Goal Comments
            • Re_ DBE Goal Comments
            • Re_ Seydel Dan - WSDOT Disparity Study Present
            • Support for WSDOTs proposed DBE goal
            • Why we need mandatory goals
            • WSDOT DBE Goal - Comment in support
            • WSDOT Proposes DBE goal of 19
            • WSDOT propsed DBE Goals
            • WTS - Disparity Study Comment Letter

From Jackie EtterTo WSDOT Disparity StudySubject Why we need mandatory goalsDate Friday December 1 2017 61859 PM

As a DBE participating in bidding process I have found that regardless of the language which claims to insurethat disadvantaged business enterprises shall not be discriminated against the only way to ensure that this does nothappen is by mandating affirmative action goals Having been overlooked time and time again because of my gender when I have submitted bids that are verycompetitive with other bidders is very frustrating I have had many instances of companies using my price to getmy non DBE competitors to lower theirs The voluntary or laudatory DBE goals do nothing to ensure a level playing fieldThe only way to ensure non-discrimination is through mandatory goals

Jackie EtterWest Star Construction of Spokane

Sent from my iPhone

From Claudia HirscheyTo Key Earl Bayne JackieSubject WSDOT DBE Goal - Comment in supportDate Tuesday December 12 2017 61937 PM

Dear Earl and Jackie The WSDOT recommended DBE Goal for FHWA contracts of 190 is a small and important increasethat can further achieve equity in WSDOTFHWA contracting I am in support of the 19 DBE Goal I also want to express my appreciation for the thoroughness of the WSDOT Disparity study and howthe study disclosed the disparity in WSDOT contracts that do not have a DBE or WBE goal ndash furtherreinforcing that all women-owned firms and minority owned firms face equity issues I remain concerned with the methodology required by the Code of Federal Regulations and case lawbecause of the dependence on the availability of firms in the calculation An unintendedconsequence of removing either gender or race from the goal is that many of these firms would goout of business the availability decreases and the formula then results in a smaller DBE goal Sincerely Claudia S Hirschey PETransportation Consulting Servicesclaudiahirscheycomcastnethttphirscheytcscom2068564988 Mobile

From Nate ThomasTo WSDOT Disparity StudySubject WSDOT Proposes DBE goal of 19Date Thursday December 7 2017 42720 PM

The WSDOT should look into similar ways the Federal Gov has handled the equal opportunity forthose that fall under the DBE status and set aside specific projects for the DBErsquos and moreimportantly UDBErsquos so these companies have better chance of landing contracts Maybe a lot 10 ofthe DBE goal to set aside for only DBEs and other 9 goal met as it is done currently with COA onlarger contracts Nate ThomasSenior EstimatorD 5095688085 | C 5099941156331 North Fancher Road | Spokane WA | 99212

The information contained in this email including any attachments is confidential and may beprivileged It is intended only for the person or entity to which it is addressed and no waiver isintended by sending this email If the reader is not the intended recipient you are herebynotified that any review retransmission dissemination or other use of or taking any action inreliance upon this information is strictly prohibited If you have received this email in errorkindly notify the sender by reply email and delete the original message from any computerThank You

From Brian FujiiTo WSDOT Disparity StudySubject WSDOT propsed DBE GoalsDate Thursday December 7 2017 110638 AM

Good morning Jackie

I wanted to comment on WSDOTs proposed DBE goal to 19 I believe WSDOTs plan toincrease the overall DBE goal to 19 will provide greater opportunities for DBE contractorsin different disciplines to participate in federally funded contracts

Without the new DBE requirement and with Proposition 200 there are limited opportunitiesfor DBE contractors in disciplines different than the typical trucking flagging and rebar Inaddition there are no incentives for general contractors to go out beyond the usual truckingflagging and rebar DBE subcontractors

Increasing the DBE goals will provide opportunities for different DBE contractors in differentdisciplines to participate in WSDOT federally funded projects

Thank you for your time

RespectfullyBrian FujiiPresident Subsurface ConstructionP 2063836478F 2069604639MDBE 4M0024998

From Forman StephanieTo Bayne JackieCc Millar Roger christinenhanmailhousegov Claudia Hirschey Sarah Corbin Jiang Yingle

efaulknerenviroissuescom Diana Giraldo Kelly CheesemanSubject WTS - Disparity Study Comment LetterDate Friday December 15 2017 71020 PMAttachments 2017_Dec 15_WTSCommentLetter_WSDOT DBE Goalpdf

Dear Ms Bayne Please find our attached letter which summarizes the WTS Puget Sound Chapterrsquos support foradvancement of women in transportation and our comment letter regarding the recent DisparityStudy Please feel free to contact me if you have any questions or would like to discuss Sincerely Stephanie S Forman PEWTS Puget Sound President Transportation Project Manager

929 108th Avenue NE Suite 1300Bellevue WA 98004D 4254681548 M 2062291745stephanieformanhdrinccom

December 15 2017

Jackie Bayne Policy and Reporting Manager

Office of Equal Opportunity

Washington State Department of Transportation

PO Box 47314

Olympia WA 98504-7314

Dear Ms Bayne

On behalf of the Puget Sound Chapter of Womenrsquos Transportation Seminar (WTS) we would

like to thank the Washington State Department of Transportation for presenting to our

organization the DBE Disparity Study results We very much appreciated the presentation by Earl

Key Director of WSDOTrsquos Office of Equal Opportunity Teresa Berntsen (Director Office of Minority

and Womens Business Enterprises) as well as Leslie Jones (Director Sound Transit Office of Small

Business Development and Labor Compliance)

Following a review of the WSDOT Disparity Study and as a result of consultation with WTS

International we would like to provide WSDOT with our comments for your consideration

As you know WTS is an organization focused exclusively on attracting retaining and advancing

women in transportation By the year 2018 there will be thousands of vacancies in the

transportation industry for qualified professionals and while women account for more than half of

the worldrsquos workforce they are a very small minority in transportation disciplines

We are pleased that the outcome of the 2017 Disparity Study that recognizes the on-going barriers

for DBEs including women-owned businesses in transportation The WSDOT recommended DBE

Goal of 190 is a small and important increase that can further achieve equity in WSDOTFHWA

contracting We are also pleased that the 2017 Disparity Study has documented the disparity in

WSDOT contracts that do not have a DBE or WBE goal ndash further reinforcing that all women-owned

firms and minority owned firms face equity issues We are encouraged that the WSDOT has asked

FHWA to rescind the 2016 waiver

While WTSrsquo mission is specific to the advancement of women we are a race-neutral organization To

this end we are also deeply concerned about the underutilization of minority owned firms There is

no equity or ldquofair playing fieldrdquo without equity for all gender and races We remained concerned with

the methodology required by the Code of Federal Regulations and case law because of the

dependence on the availability of firms in the calculation An unintended consequence of removing

either gender or race from the goal is that many of these firms would go out of business the

availability decreases and the formula then results in a smaller DBE goal This consequence is

contrary to our mission

We look forward to our continued participation in WSDOTrsquos DBE advisory group we are anticipating

notice that the 2016 waiver has been rescinded and how we can work together to continue

advancing minority and women-owned firms in the transportation field

Sincerely

WTS Puget Sound Chapter

Stephanie Forman

President

C Roger Millar Secretary WSDOT

C Representative Adam Smith 9th Congressional District Washington co Christine Nhan

WTS Puget Sound Chapter

PO Box 3461

Bellevue Washington 98009

From Dave Gent - WAPATo Bayne JackieCc Tom GaetzSubject WAPA Public Comments - RE WSDOT FHWA Disadvantaged Business Enterprise Proposed GoalDate Friday December 15 2017 14119 PMAttachments 12152017 DBE Proposed Goal - WAPA Public Comments Letterpdf

Good afternoon Jackie Please find attached WAPArsquos ldquofor the public recordrdquo comments with respect to WSDOTrsquos proposedDBE Goals FHWA funded work I assume that the Master DBE Directory was not sent to you this week so as a result we were notable to review the directory before the close of the public comment period That fact is noted withinour comment letter Thank you for your efforts Have a good weekend

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Friday December 8 2017 1219 PMTo Dave Gent - WAPA ltdavegentasphaltwacomgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hello Dave WSDOT did not take possession of this directory as part of our review process We will provide youwith the records without submitting a formal request However we need to get them from theconsultant first I will hopefully have them to provide next week I will keep you updated on therequest Have a nice weekend Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal Opportunity

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

December 15 2017

Jackie Bayne Policy Manager WSDOT Office of Equal Opportunity Delivered via e-mail to BayneJwsdotwagov RE Public Comment (as requested) to Proposed Overall DBE Goal for the FHWA (2018 ndash 2020) Ms Bayne Thank you for your presentation via webinar on December 5 2017 outlining WSDOTrsquos evaluation process used to determine the proposed overall DBE goal for the FHWA Thank you also for the Colette Holt amp Associates (CHA) DBE Advisory Group presentation made on September 14 2017 Both presentations helped to distill the findings of the 2017 Disparity Study produced by CHA In response to Earl Keyrsquos initial informal request to comment on the proposed overall DBE goal made during the DBE Advisory Committee teleconference held on October 12th we provided a list of reasons that we believe justify a lower DBE goal than is now being proposed Our initial response to Mr Keyrsquos request did not serve to influence WSDOT and the current proposed goal remains at 190 The arguments provided on October 12th against the significant increase in the proposed DBE goal (versus the previous goal and recent historic DBE participation) are repeated and supplemented below and will serve as the Asphalt Pavement Associationrsquos (WAPArsquos) official public comments

In concert with WSDOT and the OWMBE WAPA and the construction firms that WAPA represents have demonstrated a commitment to the principals of equal opportunity for all ldquoready willing and ablerdquo firms for the entire history that our DBE program has been in place WAPA has continuously demonstrated its commitment to the goals of the DBE program and for increasing the representation of disadvantaged groups within our industry as both workers and owners of firms Please recognize that WAPArsquos oversight and critique of the DBE program has always attempted to balance the principals of fair and open competition with the practical aspects of the low bid compressed schedule high performance standards demanded within the WSDOT marketplace Our comments below are meant to enhance WSDOTrsquos and OWMBErsquos understanding of the market and to hopefully have WSDOT fully consider all of the dynamics that are at play when proposing its Triennial DBE goal for FHWA projects Current DBE Capacity vs Historically Robust Market In advocating for a realistic and defensible DBE goal it has always been WAPArsquos position that it is paramount that the realities of the marketplace and true certified DBE subcontracting capacity should be a primary standard While a ldquostretchrdquo goal may appear to be progressive on its face it comes with consequences for all of the parties involved in the WSDOT federal aid contracting arena To balance the dynamics of the WSDOT contracting system the DBE goal should be tempered with the realities of the market and with a true measure of the underlying effectiveness of the DBE support services available to contractors

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 2 of 6 The first point of fact that has not been given any apparent consideration by WSDOT in its evaluation of the current capacity of certified DBErsquos is that there is an historically robust workload scheduled to be performed in the 2017 through 2022 time-frame particularly in the Puget Sound ldquoEverett to Olympiardquo corridor By WSDOTrsquos own estimates (see Attachment A) public works construction project starts in the 2018 to 2022 time-frame in this region will exceed $333 billion (B) counting the work projected from just five public entities WSDOT will be taking a decidedly ldquoback seatrdquo role during this period to Sound Transit which will have construction project starts of $226B vs WSDOTrsquos projected volume of $67B WSDOTrsquos summary publication titled Washington State Department of Transportations Proposed Federal Highway Administration Triennium Disadvantaged Business Enterprise Goal Federal Fiscal Years 2018-2020 states correctly that ldquoIncluded among the types of evidence that must be considered are the current capacity of DBEs to perform work on WSDOTrsquos federally-assisted contracts as measured by the volume of work DBEs have performed in recent yearshelliprdquo (Step Two Adjustment discussion) With the Sound Transit program being over 300 larger than the total WSDOT program in this region a sober assessment of true certified DBE capacity in the next three years needs to be considered by WSDOT If the huge construction boom over the next five years does not prompt a Step Two Adjustment then it becomes obvious that the realities of the market are being ignored by WSDOT for DBE goal setting Put another way if the 2018 through 2022 level of contracting activity does not warrant a goal adjustment what will DBE Access Barriers Not Yet Addressed The CHA 2017 Disparity Study points out multiple recommendations in Section VII that impact DBE participation and access to the market Assessments relating to those impacts and the state of maturity in addressing the CHA recommendations should be considered when assessing the DBE goal Many of the CHA recommendation have not been adequately addressed at this point in time Some of the prime examples are listed below Increase Certification and Expertise ndash The Disparity Study as explained to us includes all minority- (MBE)

and women-owned (WBE) firms that could be readily identified that perform work within Washington State and that perform work within the NAICS code framework CHA developed to cover WSDOT project work During the various presentations relating to the Disparity Study WSDOT representatives said that outreach to currently non-certified MBE amp WBE firms has increased and that WSDOT aspires to bolster its list of certified firms in the future but this effort is just beginning and the success of the effort needs to be means tested against the broader population of MBE amp WBE firms included in the CHA base line evaluation As the Disparity Study uses a much broader population of MBE WBE contractors to arrive at its conclusions (both non-certified firms and firms too large for certification) it follows that the calculated DBE proposed goal is overstated to include capacity that does not currently exist within WSDOTrsquos certified DBE framework Unless OMWBE is experiencing sudden and unprecedented success in recruiting new MBEWBE firms the DBE goal should be adjusted downward to recognize that the ldquoready willing and ablerdquo contractors that WSDOT has certified is only a subset of the total MBEWBE contracting population used in the Disparity Study evaluation

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 3 of 6

Until the promised WSDOT outreach registration efforts result in a substantial increase in available certified DBE firms it is premature to count the entire population of minority- and women-owned contractors as available to participate in WSDOT contracting It is unreasonable for WSDOT to project availability capacity using the entire MBEWBE population when only its currently truncated list of certified firms is acceptable to count toward the DBE goal

A corollary to the Increase Certification and Expertise discussion above is that the calculation of the Base Figure evidently includes the broadest practical population of MBE and WBE firms identifiable (without a review of the CHA Master DBE Directory which has not been supplied prior to the close of the public comment period the scope of the directory cannot be ascertained) If this directory includes a large population of MBEWBE firms that are not certified or are too large to be certified then the Base Figure calculation should be adjusted to reflect that certified DBE firms are a fraction of the total MBEWBE firms used to arrive at the 19 suggested DBE goal With respect to the CHA Master Directory it is our understanding the WSDOT was not given the directory as part of its evaluation of the Disparity Study and it follows that it did not evaluate the proposed DBE goal in the context of the CHA Master DBE Directory In our opinion an informed decision on adjusting the CHA baseline goal calculation can only be done after an extensive evaluation of the CHA Master DBE Directory If this has not been done WSDOT has not exercised due diligence in evaluating the context and underpinnings of the CHA Disparity Study and a certified DBE Triennium goal proposal to the FHWA is premature Increase Contract ldquoUnbundlingrdquo ndash If this proposed strategy (suggested by the CHA Study) is undertaken

certified DBE Subcontractors currently available will be engaged as Prime Contractors and the value of their prime contracts will bolster the overall percentage of certified DBE contracting but a systematic effort and strategy to ldquounbundlerdquo has not been articulated by WSDOT The key question of how this effort can be accomplished without increased cost to the taxpayers and increased inconvenience for the traveling public As noted in the CHA study (page 129 final paragraph) ldquoUnbundling must be conducted however within the constraints of the need to ensure efficiency and limit cost to the taxpayersrdquo As of this writing no overarching strategy for further unbundling with proper accountability has been articulated by WSDOT to the DBE Advisory Group

Review Insurance and Experience Requirements ndash Impediments to certified DBE participation due to

necessary insurance and experience standards cannot be solved by the prime contracting community Unless and until WSDOT puts together programs to address the burden of the substantial risks shouldered by Prime Contractors on WSDOT contracts barriers for streamlined utilization of certified DBE firms will continue to exist These market driven barriers will continue to dampen the availability of certified DBE Subcontractors that are able to perform within WSDOTrsquos strict criteria without unduly transferring risk to the Prime Contractor

Better Partnering to Overcome DBE Failures to Perform ndash Prime Contractors are held fully responsible to maintain the project schedule and are subject to project liquidated damages even when they may be struggling to deal with Subcontractor performance issues It is well-established that replacing a certified ldquocondition of awardrdquo (COA) DBE Subcontractor is very onerous and likely very costly to the Prime Contractor Unfortunately the imposition of strict and often counter-productive commercially useful function (CUF) rules often compound this issue as Prime Contractors cannot help COA DBE Subcontractors work through capacity expertise or time-related issues that impact timely performance

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 4 of 6

WSDOT needs to be a much better partner in the process of dealing with under-performing or non-performing certified DBE Subcontractors The current standard operational procedure places all of the exposure for non-performance onto the Prime WSDOT does not have an equitable system to account for non-performing or under-performing certified DBE Subcontractors hired as a condition of award (COA)

Performance Information and Training ndash Commercially useful function rules (CUF) and the lack of clear benchmark definitions for good faith effort (GFE) standards remain barriers for improving accountability within the DBE system and in turn lead to distorted DBE participation rates These items remain amorphous due to lack of training or lack of historic information Chronic uncertainty exists regarding both of these items Until WSDOT changes and improves its approach to provide transparency and certainty for both the prime bidding amp subcontracting parties true certified DBE capacity will continue to be masked and the resultant higher subcontracting costs associated with a distorted marketplace will continue to be hidden

WAPA respectfully suggests that simply adding an ldquoEstimated DBE Subcontract Premiumrdquo line to the current DBE bid forms would help to establish benchmarks that could begin to be used to ldquomeans testrdquo good faith efforts If this information had been gathered over the last 20 years of the DBE program meaningful GFE standards could have been developed and could be in place today

An in-depth review of CUF standards would also provide clarity For instance it is unclear why force account items performed by certified DBEs are currently counted at only 50 of the value of the work How was this benchmark established Has it been reviewed since imposed Did it ldquosolverdquo whatever inequity WSDOT was trying to address Better clarity may lead to more expanded opportunities for certified DBE Subcontractors

Enhanced Supportive Services and Business Development Programs ndash Unless and until stronger programs of these types are shown to be effective in boosting certified DBE business development increased DBE participation due to stronger business acumen should not be relied upon when setting the new DBE goal

Does OMWBE have a reasonable expectation that future plans for enhanced and expanded programs will be more successful than those employed in the past Assuming that certified DBE Subcontractors will be better prepared to deal with the WSDOT contracting environment than in the past should not be relied upon to boost DBE participation goals Especially troubling were the multiple references within the CHA report highlighting that DBEs believe that the staff at OMWBE lack a deep knowledge about the highway construction industry (eg Study page 129 2nd paragraph) Does OMWBE have a path forward that will address this issue and thus improve supportive services impacts

Develop a Bonding and Financing Program for SBEs ndash This is completely outside of the prime contracting

communityrsquos scope of influence WSDOT must find a way to institute changes that both protect the taxpayer and help increase certified DBE bonding capacity and access to financing ndash very large hurtles To assume that these hurtles can effectively be overcome within the 2018 ndash 2020 time frame when they have been chromic issues for the past 20 plus years of DBE program development is not rational

A helpful innovation would be for WSDOT to underwrite performance and payment bonds for certified DBE firms or to create promote a system that helps certified DBE firms obtain private bonding Bridging the gap to address capital access and performance risks (bonding) must be championed by WSDOT

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 5 of 6

Base Figure Adjustment to Address Available Subcontract Volume and DBE Prime Contracts It is a fact that mid- to large-sized MBEWBE firms that compete both as Prime Contractors and as Subcontractors are not eligible to be OMWBE certified DBEs Further the current amount of contract unbundling for greater DBE access to WSDOT prime contracting (see below) accounts for a very low dollar volume of prime contracts performed by certified DBEs Finally by specification (WSDOT standard specification 1-081) Prime Contractors are obligated to perform 30 of the total volume of the work (less specialty work) or stated another way a maximum of 70 of the dollar volume on WSDOT projects is typically available to award to subcontractors These market dynamics are NOT addressed in the Disparity Study A responsible DBE goal made absent of these facts should not be implemented A reasonable adjustment to the proposed 19 DBE goal is presented below

bull The percent of WSDOT prime contracts awarded to certified DBE firms is likely less than 5 by total WSDOT

contract volume Assuming this approximation is valid (likely very conservative) then the amount of WSDOT contract work available to certified DBE firms via subcontracting should be adjusted to account for the factors outlined above The Base Figure (19) should be adjusted to recognize that a 70 maximum subcontractor participation is available (in the numerator) and to account for the assumed 5 certified DBE prime contracts in the denominator Reasonable Base Figure Adjustment 19 (proposed) x 70 subcontracts available divide 95 of Non-Certified DBEs as Prime Contract Volume = 190 x 0737 = 140 adjusted goal This is an adjustment based on the practical dynamics of the WSDOT contracting system and it represents a more realistic look at the true subcontract volume that is available for Prime Contractors to award to certified DBE firms

Conclusions

Until the items listed above are addressed and in place it is not reasonable to believe that DBE goals can be increased by nearly 163 (from 117 to 190) When the projected robust public works contracting market is appropriately considered the true availability of certified DBE Subcontractors for WSDOT contracts will be truncated due to demand across all public works sectors With multiple strong public works programs competing for a limited population of certified DBEs the ability to meet increased WSDOT DBE goals will be severely challenged Without very clear concise and transparent good faith effort rules the ability to address DBE goals that greatly overestimate true near term certified DBE capacity will result in non-attainment bid day chaos failures to perform andor rapidly increased pricing

The clear conclusion is that at this point in time under the current circumstances without effectively instituted new programs rules procedures that could enhance the certified DBE programrsquos overall effectiveness we believe that the DBE goal should remain at or near 12 As OMWBE documents and demonstrates its future successes in improving access and eliminating capacity barriers only then should the DBE goal be re-evaluated and increased

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 6 of 6

In closing please remember that it is rare that the contracting community is asked our opinion with respect to the WSDOTrsquos DBE policies and so this letter is somewhat a vehicle to highlight collective concerns It is our belief that the majority of the Prime Contractors in Washington state support the objective of creating a level playing field for ready willing and able DBEs

If the level playing field is not yet possible in the absence of the DBE program then the key is to set realistic goals that recognize reflect and address the hard realities and market dynamics imposed by WSDOTrsquos bedrock environment of awarding contracts to the lowest cost responsible and responsive Contractor

Respectfully submitted Washington Asphalt Pavement Association

David Gent Tom Gaetz Executive Director Senior Advisor

Attachment A ndash WSDOT Central Puget Sound Public Works Contracting Projection 2018 - 2022

Con

stru

ctio

n Pr

ojec

t Sta

rts

2018

-202

2S

ound

Tra

nsit

$22

6 B

SD

OT

$08

B

Tran

sit

amp O

ther

s$1

7 B

WS

DO

T$6

7 B

Por

t of

Sea

ttle

$15

B

TOTA

L$3

33

B

Source N

ov 1

9 2

017

pres

enta

tion

to W

APA

Ann

ual M

eetin

g

Attachment A

Work (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Dave Gent - WAPA [mailtodavegentasphaltwacom] Sent Thursday December 7 2017 144 PMTo Bayne Jackie ltBayneJwsdotwagovgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hi again Jackie Irsquom fine thanks and hope you are the same Interesting The Master DBE Directory is the basis for and integral to the conclusions of the DisparityStudy Is it not then part of the information needed to fully review and comment on the DisparityStudy Was it not provided by CHA to WSDOT for review We are trying to fully understand thestudy and if this directory was part of the study why would it need to be obtained by a publicrecords disclosure It should be in the public domain and not restricted from ease of access If you are sure that a public records request is needed Irsquoll start that process but we will need tonote that point of fact when we submit our public comments If you are able to reconsider please let me know Respectfully

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Thursday December 7 2017 126 PMTo Dave Gent - WAPA ltdavegentasphaltwacomgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hello Dave I hope you are doing well

That information would likely be obtained through a public disclosure request Best Regards Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Dave Gent - WAPA [mailtodavegentasphaltwacom] Sent Thursday December 7 2017 113 PMTo Bayne Jackie ltBayneJwsdotwagovgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Jackie Can you please provide an electronic file or provide a weblink for the Master DBE Directory thatColette Holt amp Associates developed for the WSDOT Disparity Study 2017 (first referred to on Page 8of the Disparity Study) I did not see a link to this Master DBE Directory within the study Thanks

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Friday October 27 2017 1118 AMTo Kenyon Wendy ltKenyonWwsdotwagovgt Adams E W ltewadamssystemsclcomgtAdekoyaAndrew ltandrewadekoyabccomgt AlyssaBalllegwagov Anindita Mitraltamitracrea-affiliatescomgt APRISeattlehotmailcom Armstrong CharlotteltCharlieAatgwagovgt Ato Apiafi Architects PLLC ltatoaatoapiaficomgt benzfanwaorgBerntsen Teresa (OMWBE) ltTeresaBomwbewagovgt Billingsley Andrealtbillinawsdotwagovgt Bramlet Erica ltEricaBramletlegwagovgt Brooks Julius

ltBrooksJwsdotwagovgt Brown Jason ltjbrownldccorpcomgt bwallacenwlaborersorgCamden Allison ltCamdenAwsdotwagovgt carlllivingstongmailcom Cerda OscarltCerdaOwsdotwagovgt Christopher Chris ltChristCwsdotwagovgt ckerneycaawagovdanplatinumbusinessgroupcom davegentasphaltwacom David BalltDavidsignsnowmillcreekcomgt Davis Khalia ltDavisKhwsdotwagovgt Davis RaShelle (GOVltrashelledavisgovwagovgt Dayton Jo ltDaytonJwsdotwagovgt ddhondtagcwacomDebbieDriverlegwagov Dennis ltdennisahlkiewitcomgt dmcleodnwlaborersorgdrart6651gmailcom Duncan Enid lthigradeincgmailcomgt EltonltEltonwashingtonstatetruckingcomgt eprincecaawagov flemosldccorpcomfmartineznwmtnmsdcorg geoffshookatkncom glovelady ltgloveladyexcelglovescomgtGrabow Katie ltkgrabowsystemsclcomgt Guilfucci Jackie ltJackieGuilfucciskanskacomgt HealyLinda ltHealyLwsdotwagovgt Higginbotham Breanne ltHigginBwsdotwagovgt HirscheyClaudia ltclaudiahirscheycomcastnetgt Holt Colette ltcoletteholtmwbelawcomgt Huff JohnltHuffJwsdotwagovgt Iniguezchawagov JacksonMaynardlegwagov Jimmy Matta(jmattaalcantarassoccom) ltjmattaalcantarassoccomgt kellywickergovwagov Key EarlltKeyEwsdotwagovgt Kirk Jon ltjkirkwhhnfscomgt Kris Purrier ltkpurrierhwageocomgtleewabuildingtradesorg lesliejonessoundtransitorg Liz Evans ltlevansagcwacomgt LopezErin lterinlopezdeswagovgt Martha Cerna ltMarthaPSLCCORGgt Martin-Arnold EdwinaltMartinEwsdotwagovgt Mary Lerdahl ltmarydbeelectricinccomgt McCarty Hannahlthannahmccartylegwagovgt Melissa L Boyles ltmelissaboylesmwbelawcomgt Metcalf KeithltMetcalKwsdotwagovgt michaelicapaawagov Michelle ltMichelleTTCC26netgt MillarRoger ltMillarRwsdotwagovgt Nakamura Jason ltjasonnakamura1-alliancecomgtNavarroLportseattleorg olliepmt-solutionscom pastorbanksesbctacomacom PatrickHughes ltphugheshughesgroupbizgt Petersen Jodi (FHWA) ltJodiPetersendotgovgtrabbottliunaorg rcarmsteadgmailcom ricemportseattleorg Riley D ltdrileylydigcomgtSeling ltSelingjpfranciscomgt sherryharrisergosynchcom Stell MellodyltStellMwsdotwagovgt terigobintulaliptribes-nsngov timwilliamfactorycom tinaterra-tdicom tkellyldccorpcom tomgaetzmsncom vcollinsacec-waorgverlenejazzmsncom Wang Albert ltWangAatgwagovgt Waugh GregltGregWMaxKuneyComgt Yates Henry ltYatesHWSDOTWAGOVgtCc Tom Gaetz lttomgaetzmsncomgt Dave Gent - WAPA ltdavegentasphaltwacomgt VanCollins ltvcollinsacec-waorggt Daniel Seydel II ltdanplatinumbusinessgroupcomgt MaynardJackson ltJacksonMaynardlegwagovgt Carl Livingston ltcarlllivingstongmailcomgt DonMcLeod ltdmcleodnwlaborersorggt JIMMY MATTA ltjimmymattamsncomgt Prince Ed(CAAA) lteprincecaawagovgt David DHondt ltddhondtagcwacomgt Irene Reyesltgloveladyexcelsupplycompanycomgt McDaniel Craig ltMcDaniCwsdotwagovgtsherryharrisergosynchcomSubject WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Good morning On Monday October 30th WSDOT will be releasing the proposed overall Federal HighwayAdministration Disadvantaged Business Enterprise goal attached for public comment throughDecember 15 2017 This overall DBE goal is based upon the recently completely DBE ProgramDisparity Study WSDOT is proposing a 19 percent overall DBE participation goal on Federal Highway

Administration-funded projects for federal fiscal years 2018 through 2020 DBE goals fortransportation projects that receive federal funds represent a percentage of the value of work inwhich minority- and women-owned businesses should participate Once finalized and submitted toFHWA early next year the goal will be effective through Sept 30 2020

The purpose of the DBE program is to create a level playing field for firms owned and operated bydisadvantaged individuals wanting to participate in federally assisted highway transit and aviationprograms The attached overall DBE goal is for FHWA funded projects WSDOT will be updating theFTA and FAA overall DBE goals in the near future

If you have any questions please contact Earl Key Director of the Office of Equal Opportunity at3607057091 or KeyEwsdotwagov Thank you Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

  • Proof-Of-Publicationpdf
    • Mediapdf
      • AGC
      • Daily Journal
      • Daily Medium
      • DBEGood
      • OMWBE
      • Seattle Medium
      • Tabor 100
      • The Chronicle
      • Tukwila
        • King County
          • Public-Comments-20180111pdf
            • 19 DBE Requirement(1)
            • AGC Comments on Proposed 10 Goad
            • Backstrom Curb amp Sidewalk
            • comments on WSDOT proposed DBE goal
            • Cowlitz County Public Works
            • DBE Contracting goals
            • DBE Goal
            • DBE Program Disparity Study
            • Disparity Study Comments from City of Spokane
            • FW_ WSDOT News - WSDOT seeks comments on propos
            • Proposed DBE Goals
            • RE_ DBE Contracting Goal Comments
            • Re_ DBE Goal Comments
            • Re_ Seydel Dan - WSDOT Disparity Study Present
            • Support for WSDOTs proposed DBE goal
            • Why we need mandatory goals
            • WSDOT DBE Goal - Comment in support
            • WSDOT Proposes DBE goal of 19
            • WSDOT propsed DBE Goals
            • WTS - Disparity Study Comment Letter

From Claudia HirscheyTo Key Earl Bayne JackieSubject WSDOT DBE Goal - Comment in supportDate Tuesday December 12 2017 61937 PM

Dear Earl and Jackie The WSDOT recommended DBE Goal for FHWA contracts of 190 is a small and important increasethat can further achieve equity in WSDOTFHWA contracting I am in support of the 19 DBE Goal I also want to express my appreciation for the thoroughness of the WSDOT Disparity study and howthe study disclosed the disparity in WSDOT contracts that do not have a DBE or WBE goal ndash furtherreinforcing that all women-owned firms and minority owned firms face equity issues I remain concerned with the methodology required by the Code of Federal Regulations and case lawbecause of the dependence on the availability of firms in the calculation An unintendedconsequence of removing either gender or race from the goal is that many of these firms would goout of business the availability decreases and the formula then results in a smaller DBE goal Sincerely Claudia S Hirschey PETransportation Consulting Servicesclaudiahirscheycomcastnethttphirscheytcscom2068564988 Mobile

From Nate ThomasTo WSDOT Disparity StudySubject WSDOT Proposes DBE goal of 19Date Thursday December 7 2017 42720 PM

The WSDOT should look into similar ways the Federal Gov has handled the equal opportunity forthose that fall under the DBE status and set aside specific projects for the DBErsquos and moreimportantly UDBErsquos so these companies have better chance of landing contracts Maybe a lot 10 ofthe DBE goal to set aside for only DBEs and other 9 goal met as it is done currently with COA onlarger contracts Nate ThomasSenior EstimatorD 5095688085 | C 5099941156331 North Fancher Road | Spokane WA | 99212

The information contained in this email including any attachments is confidential and may beprivileged It is intended only for the person or entity to which it is addressed and no waiver isintended by sending this email If the reader is not the intended recipient you are herebynotified that any review retransmission dissemination or other use of or taking any action inreliance upon this information is strictly prohibited If you have received this email in errorkindly notify the sender by reply email and delete the original message from any computerThank You

From Brian FujiiTo WSDOT Disparity StudySubject WSDOT propsed DBE GoalsDate Thursday December 7 2017 110638 AM

Good morning Jackie

I wanted to comment on WSDOTs proposed DBE goal to 19 I believe WSDOTs plan toincrease the overall DBE goal to 19 will provide greater opportunities for DBE contractorsin different disciplines to participate in federally funded contracts

Without the new DBE requirement and with Proposition 200 there are limited opportunitiesfor DBE contractors in disciplines different than the typical trucking flagging and rebar Inaddition there are no incentives for general contractors to go out beyond the usual truckingflagging and rebar DBE subcontractors

Increasing the DBE goals will provide opportunities for different DBE contractors in differentdisciplines to participate in WSDOT federally funded projects

Thank you for your time

RespectfullyBrian FujiiPresident Subsurface ConstructionP 2063836478F 2069604639MDBE 4M0024998

From Forman StephanieTo Bayne JackieCc Millar Roger christinenhanmailhousegov Claudia Hirschey Sarah Corbin Jiang Yingle

efaulknerenviroissuescom Diana Giraldo Kelly CheesemanSubject WTS - Disparity Study Comment LetterDate Friday December 15 2017 71020 PMAttachments 2017_Dec 15_WTSCommentLetter_WSDOT DBE Goalpdf

Dear Ms Bayne Please find our attached letter which summarizes the WTS Puget Sound Chapterrsquos support foradvancement of women in transportation and our comment letter regarding the recent DisparityStudy Please feel free to contact me if you have any questions or would like to discuss Sincerely Stephanie S Forman PEWTS Puget Sound President Transportation Project Manager

929 108th Avenue NE Suite 1300Bellevue WA 98004D 4254681548 M 2062291745stephanieformanhdrinccom

December 15 2017

Jackie Bayne Policy and Reporting Manager

Office of Equal Opportunity

Washington State Department of Transportation

PO Box 47314

Olympia WA 98504-7314

Dear Ms Bayne

On behalf of the Puget Sound Chapter of Womenrsquos Transportation Seminar (WTS) we would

like to thank the Washington State Department of Transportation for presenting to our

organization the DBE Disparity Study results We very much appreciated the presentation by Earl

Key Director of WSDOTrsquos Office of Equal Opportunity Teresa Berntsen (Director Office of Minority

and Womens Business Enterprises) as well as Leslie Jones (Director Sound Transit Office of Small

Business Development and Labor Compliance)

Following a review of the WSDOT Disparity Study and as a result of consultation with WTS

International we would like to provide WSDOT with our comments for your consideration

As you know WTS is an organization focused exclusively on attracting retaining and advancing

women in transportation By the year 2018 there will be thousands of vacancies in the

transportation industry for qualified professionals and while women account for more than half of

the worldrsquos workforce they are a very small minority in transportation disciplines

We are pleased that the outcome of the 2017 Disparity Study that recognizes the on-going barriers

for DBEs including women-owned businesses in transportation The WSDOT recommended DBE

Goal of 190 is a small and important increase that can further achieve equity in WSDOTFHWA

contracting We are also pleased that the 2017 Disparity Study has documented the disparity in

WSDOT contracts that do not have a DBE or WBE goal ndash further reinforcing that all women-owned

firms and minority owned firms face equity issues We are encouraged that the WSDOT has asked

FHWA to rescind the 2016 waiver

While WTSrsquo mission is specific to the advancement of women we are a race-neutral organization To

this end we are also deeply concerned about the underutilization of minority owned firms There is

no equity or ldquofair playing fieldrdquo without equity for all gender and races We remained concerned with

the methodology required by the Code of Federal Regulations and case law because of the

dependence on the availability of firms in the calculation An unintended consequence of removing

either gender or race from the goal is that many of these firms would go out of business the

availability decreases and the formula then results in a smaller DBE goal This consequence is

contrary to our mission

We look forward to our continued participation in WSDOTrsquos DBE advisory group we are anticipating

notice that the 2016 waiver has been rescinded and how we can work together to continue

advancing minority and women-owned firms in the transportation field

Sincerely

WTS Puget Sound Chapter

Stephanie Forman

President

C Roger Millar Secretary WSDOT

C Representative Adam Smith 9th Congressional District Washington co Christine Nhan

WTS Puget Sound Chapter

PO Box 3461

Bellevue Washington 98009

From Dave Gent - WAPATo Bayne JackieCc Tom GaetzSubject WAPA Public Comments - RE WSDOT FHWA Disadvantaged Business Enterprise Proposed GoalDate Friday December 15 2017 14119 PMAttachments 12152017 DBE Proposed Goal - WAPA Public Comments Letterpdf

Good afternoon Jackie Please find attached WAPArsquos ldquofor the public recordrdquo comments with respect to WSDOTrsquos proposedDBE Goals FHWA funded work I assume that the Master DBE Directory was not sent to you this week so as a result we were notable to review the directory before the close of the public comment period That fact is noted withinour comment letter Thank you for your efforts Have a good weekend

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Friday December 8 2017 1219 PMTo Dave Gent - WAPA ltdavegentasphaltwacomgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hello Dave WSDOT did not take possession of this directory as part of our review process We will provide youwith the records without submitting a formal request However we need to get them from theconsultant first I will hopefully have them to provide next week I will keep you updated on therequest Have a nice weekend Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal Opportunity

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

December 15 2017

Jackie Bayne Policy Manager WSDOT Office of Equal Opportunity Delivered via e-mail to BayneJwsdotwagov RE Public Comment (as requested) to Proposed Overall DBE Goal for the FHWA (2018 ndash 2020) Ms Bayne Thank you for your presentation via webinar on December 5 2017 outlining WSDOTrsquos evaluation process used to determine the proposed overall DBE goal for the FHWA Thank you also for the Colette Holt amp Associates (CHA) DBE Advisory Group presentation made on September 14 2017 Both presentations helped to distill the findings of the 2017 Disparity Study produced by CHA In response to Earl Keyrsquos initial informal request to comment on the proposed overall DBE goal made during the DBE Advisory Committee teleconference held on October 12th we provided a list of reasons that we believe justify a lower DBE goal than is now being proposed Our initial response to Mr Keyrsquos request did not serve to influence WSDOT and the current proposed goal remains at 190 The arguments provided on October 12th against the significant increase in the proposed DBE goal (versus the previous goal and recent historic DBE participation) are repeated and supplemented below and will serve as the Asphalt Pavement Associationrsquos (WAPArsquos) official public comments

In concert with WSDOT and the OWMBE WAPA and the construction firms that WAPA represents have demonstrated a commitment to the principals of equal opportunity for all ldquoready willing and ablerdquo firms for the entire history that our DBE program has been in place WAPA has continuously demonstrated its commitment to the goals of the DBE program and for increasing the representation of disadvantaged groups within our industry as both workers and owners of firms Please recognize that WAPArsquos oversight and critique of the DBE program has always attempted to balance the principals of fair and open competition with the practical aspects of the low bid compressed schedule high performance standards demanded within the WSDOT marketplace Our comments below are meant to enhance WSDOTrsquos and OWMBErsquos understanding of the market and to hopefully have WSDOT fully consider all of the dynamics that are at play when proposing its Triennial DBE goal for FHWA projects Current DBE Capacity vs Historically Robust Market In advocating for a realistic and defensible DBE goal it has always been WAPArsquos position that it is paramount that the realities of the marketplace and true certified DBE subcontracting capacity should be a primary standard While a ldquostretchrdquo goal may appear to be progressive on its face it comes with consequences for all of the parties involved in the WSDOT federal aid contracting arena To balance the dynamics of the WSDOT contracting system the DBE goal should be tempered with the realities of the market and with a true measure of the underlying effectiveness of the DBE support services available to contractors

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 2 of 6 The first point of fact that has not been given any apparent consideration by WSDOT in its evaluation of the current capacity of certified DBErsquos is that there is an historically robust workload scheduled to be performed in the 2017 through 2022 time-frame particularly in the Puget Sound ldquoEverett to Olympiardquo corridor By WSDOTrsquos own estimates (see Attachment A) public works construction project starts in the 2018 to 2022 time-frame in this region will exceed $333 billion (B) counting the work projected from just five public entities WSDOT will be taking a decidedly ldquoback seatrdquo role during this period to Sound Transit which will have construction project starts of $226B vs WSDOTrsquos projected volume of $67B WSDOTrsquos summary publication titled Washington State Department of Transportations Proposed Federal Highway Administration Triennium Disadvantaged Business Enterprise Goal Federal Fiscal Years 2018-2020 states correctly that ldquoIncluded among the types of evidence that must be considered are the current capacity of DBEs to perform work on WSDOTrsquos federally-assisted contracts as measured by the volume of work DBEs have performed in recent yearshelliprdquo (Step Two Adjustment discussion) With the Sound Transit program being over 300 larger than the total WSDOT program in this region a sober assessment of true certified DBE capacity in the next three years needs to be considered by WSDOT If the huge construction boom over the next five years does not prompt a Step Two Adjustment then it becomes obvious that the realities of the market are being ignored by WSDOT for DBE goal setting Put another way if the 2018 through 2022 level of contracting activity does not warrant a goal adjustment what will DBE Access Barriers Not Yet Addressed The CHA 2017 Disparity Study points out multiple recommendations in Section VII that impact DBE participation and access to the market Assessments relating to those impacts and the state of maturity in addressing the CHA recommendations should be considered when assessing the DBE goal Many of the CHA recommendation have not been adequately addressed at this point in time Some of the prime examples are listed below Increase Certification and Expertise ndash The Disparity Study as explained to us includes all minority- (MBE)

and women-owned (WBE) firms that could be readily identified that perform work within Washington State and that perform work within the NAICS code framework CHA developed to cover WSDOT project work During the various presentations relating to the Disparity Study WSDOT representatives said that outreach to currently non-certified MBE amp WBE firms has increased and that WSDOT aspires to bolster its list of certified firms in the future but this effort is just beginning and the success of the effort needs to be means tested against the broader population of MBE amp WBE firms included in the CHA base line evaluation As the Disparity Study uses a much broader population of MBE WBE contractors to arrive at its conclusions (both non-certified firms and firms too large for certification) it follows that the calculated DBE proposed goal is overstated to include capacity that does not currently exist within WSDOTrsquos certified DBE framework Unless OMWBE is experiencing sudden and unprecedented success in recruiting new MBEWBE firms the DBE goal should be adjusted downward to recognize that the ldquoready willing and ablerdquo contractors that WSDOT has certified is only a subset of the total MBEWBE contracting population used in the Disparity Study evaluation

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 3 of 6

Until the promised WSDOT outreach registration efforts result in a substantial increase in available certified DBE firms it is premature to count the entire population of minority- and women-owned contractors as available to participate in WSDOT contracting It is unreasonable for WSDOT to project availability capacity using the entire MBEWBE population when only its currently truncated list of certified firms is acceptable to count toward the DBE goal

A corollary to the Increase Certification and Expertise discussion above is that the calculation of the Base Figure evidently includes the broadest practical population of MBE and WBE firms identifiable (without a review of the CHA Master DBE Directory which has not been supplied prior to the close of the public comment period the scope of the directory cannot be ascertained) If this directory includes a large population of MBEWBE firms that are not certified or are too large to be certified then the Base Figure calculation should be adjusted to reflect that certified DBE firms are a fraction of the total MBEWBE firms used to arrive at the 19 suggested DBE goal With respect to the CHA Master Directory it is our understanding the WSDOT was not given the directory as part of its evaluation of the Disparity Study and it follows that it did not evaluate the proposed DBE goal in the context of the CHA Master DBE Directory In our opinion an informed decision on adjusting the CHA baseline goal calculation can only be done after an extensive evaluation of the CHA Master DBE Directory If this has not been done WSDOT has not exercised due diligence in evaluating the context and underpinnings of the CHA Disparity Study and a certified DBE Triennium goal proposal to the FHWA is premature Increase Contract ldquoUnbundlingrdquo ndash If this proposed strategy (suggested by the CHA Study) is undertaken

certified DBE Subcontractors currently available will be engaged as Prime Contractors and the value of their prime contracts will bolster the overall percentage of certified DBE contracting but a systematic effort and strategy to ldquounbundlerdquo has not been articulated by WSDOT The key question of how this effort can be accomplished without increased cost to the taxpayers and increased inconvenience for the traveling public As noted in the CHA study (page 129 final paragraph) ldquoUnbundling must be conducted however within the constraints of the need to ensure efficiency and limit cost to the taxpayersrdquo As of this writing no overarching strategy for further unbundling with proper accountability has been articulated by WSDOT to the DBE Advisory Group

Review Insurance and Experience Requirements ndash Impediments to certified DBE participation due to

necessary insurance and experience standards cannot be solved by the prime contracting community Unless and until WSDOT puts together programs to address the burden of the substantial risks shouldered by Prime Contractors on WSDOT contracts barriers for streamlined utilization of certified DBE firms will continue to exist These market driven barriers will continue to dampen the availability of certified DBE Subcontractors that are able to perform within WSDOTrsquos strict criteria without unduly transferring risk to the Prime Contractor

Better Partnering to Overcome DBE Failures to Perform ndash Prime Contractors are held fully responsible to maintain the project schedule and are subject to project liquidated damages even when they may be struggling to deal with Subcontractor performance issues It is well-established that replacing a certified ldquocondition of awardrdquo (COA) DBE Subcontractor is very onerous and likely very costly to the Prime Contractor Unfortunately the imposition of strict and often counter-productive commercially useful function (CUF) rules often compound this issue as Prime Contractors cannot help COA DBE Subcontractors work through capacity expertise or time-related issues that impact timely performance

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 4 of 6

WSDOT needs to be a much better partner in the process of dealing with under-performing or non-performing certified DBE Subcontractors The current standard operational procedure places all of the exposure for non-performance onto the Prime WSDOT does not have an equitable system to account for non-performing or under-performing certified DBE Subcontractors hired as a condition of award (COA)

Performance Information and Training ndash Commercially useful function rules (CUF) and the lack of clear benchmark definitions for good faith effort (GFE) standards remain barriers for improving accountability within the DBE system and in turn lead to distorted DBE participation rates These items remain amorphous due to lack of training or lack of historic information Chronic uncertainty exists regarding both of these items Until WSDOT changes and improves its approach to provide transparency and certainty for both the prime bidding amp subcontracting parties true certified DBE capacity will continue to be masked and the resultant higher subcontracting costs associated with a distorted marketplace will continue to be hidden

WAPA respectfully suggests that simply adding an ldquoEstimated DBE Subcontract Premiumrdquo line to the current DBE bid forms would help to establish benchmarks that could begin to be used to ldquomeans testrdquo good faith efforts If this information had been gathered over the last 20 years of the DBE program meaningful GFE standards could have been developed and could be in place today

An in-depth review of CUF standards would also provide clarity For instance it is unclear why force account items performed by certified DBEs are currently counted at only 50 of the value of the work How was this benchmark established Has it been reviewed since imposed Did it ldquosolverdquo whatever inequity WSDOT was trying to address Better clarity may lead to more expanded opportunities for certified DBE Subcontractors

Enhanced Supportive Services and Business Development Programs ndash Unless and until stronger programs of these types are shown to be effective in boosting certified DBE business development increased DBE participation due to stronger business acumen should not be relied upon when setting the new DBE goal

Does OMWBE have a reasonable expectation that future plans for enhanced and expanded programs will be more successful than those employed in the past Assuming that certified DBE Subcontractors will be better prepared to deal with the WSDOT contracting environment than in the past should not be relied upon to boost DBE participation goals Especially troubling were the multiple references within the CHA report highlighting that DBEs believe that the staff at OMWBE lack a deep knowledge about the highway construction industry (eg Study page 129 2nd paragraph) Does OMWBE have a path forward that will address this issue and thus improve supportive services impacts

Develop a Bonding and Financing Program for SBEs ndash This is completely outside of the prime contracting

communityrsquos scope of influence WSDOT must find a way to institute changes that both protect the taxpayer and help increase certified DBE bonding capacity and access to financing ndash very large hurtles To assume that these hurtles can effectively be overcome within the 2018 ndash 2020 time frame when they have been chromic issues for the past 20 plus years of DBE program development is not rational

A helpful innovation would be for WSDOT to underwrite performance and payment bonds for certified DBE firms or to create promote a system that helps certified DBE firms obtain private bonding Bridging the gap to address capital access and performance risks (bonding) must be championed by WSDOT

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 5 of 6

Base Figure Adjustment to Address Available Subcontract Volume and DBE Prime Contracts It is a fact that mid- to large-sized MBEWBE firms that compete both as Prime Contractors and as Subcontractors are not eligible to be OMWBE certified DBEs Further the current amount of contract unbundling for greater DBE access to WSDOT prime contracting (see below) accounts for a very low dollar volume of prime contracts performed by certified DBEs Finally by specification (WSDOT standard specification 1-081) Prime Contractors are obligated to perform 30 of the total volume of the work (less specialty work) or stated another way a maximum of 70 of the dollar volume on WSDOT projects is typically available to award to subcontractors These market dynamics are NOT addressed in the Disparity Study A responsible DBE goal made absent of these facts should not be implemented A reasonable adjustment to the proposed 19 DBE goal is presented below

bull The percent of WSDOT prime contracts awarded to certified DBE firms is likely less than 5 by total WSDOT

contract volume Assuming this approximation is valid (likely very conservative) then the amount of WSDOT contract work available to certified DBE firms via subcontracting should be adjusted to account for the factors outlined above The Base Figure (19) should be adjusted to recognize that a 70 maximum subcontractor participation is available (in the numerator) and to account for the assumed 5 certified DBE prime contracts in the denominator Reasonable Base Figure Adjustment 19 (proposed) x 70 subcontracts available divide 95 of Non-Certified DBEs as Prime Contract Volume = 190 x 0737 = 140 adjusted goal This is an adjustment based on the practical dynamics of the WSDOT contracting system and it represents a more realistic look at the true subcontract volume that is available for Prime Contractors to award to certified DBE firms

Conclusions

Until the items listed above are addressed and in place it is not reasonable to believe that DBE goals can be increased by nearly 163 (from 117 to 190) When the projected robust public works contracting market is appropriately considered the true availability of certified DBE Subcontractors for WSDOT contracts will be truncated due to demand across all public works sectors With multiple strong public works programs competing for a limited population of certified DBEs the ability to meet increased WSDOT DBE goals will be severely challenged Without very clear concise and transparent good faith effort rules the ability to address DBE goals that greatly overestimate true near term certified DBE capacity will result in non-attainment bid day chaos failures to perform andor rapidly increased pricing

The clear conclusion is that at this point in time under the current circumstances without effectively instituted new programs rules procedures that could enhance the certified DBE programrsquos overall effectiveness we believe that the DBE goal should remain at or near 12 As OMWBE documents and demonstrates its future successes in improving access and eliminating capacity barriers only then should the DBE goal be re-evaluated and increased

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 6 of 6

In closing please remember that it is rare that the contracting community is asked our opinion with respect to the WSDOTrsquos DBE policies and so this letter is somewhat a vehicle to highlight collective concerns It is our belief that the majority of the Prime Contractors in Washington state support the objective of creating a level playing field for ready willing and able DBEs

If the level playing field is not yet possible in the absence of the DBE program then the key is to set realistic goals that recognize reflect and address the hard realities and market dynamics imposed by WSDOTrsquos bedrock environment of awarding contracts to the lowest cost responsible and responsive Contractor

Respectfully submitted Washington Asphalt Pavement Association

David Gent Tom Gaetz Executive Director Senior Advisor

Attachment A ndash WSDOT Central Puget Sound Public Works Contracting Projection 2018 - 2022

Con

stru

ctio

n Pr

ojec

t Sta

rts

2018

-202

2S

ound

Tra

nsit

$22

6 B

SD

OT

$08

B

Tran

sit

amp O

ther

s$1

7 B

WS

DO

T$6

7 B

Por

t of

Sea

ttle

$15

B

TOTA

L$3

33

B

Source N

ov 1

9 2

017

pres

enta

tion

to W

APA

Ann

ual M

eetin

g

Attachment A

Work (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Dave Gent - WAPA [mailtodavegentasphaltwacom] Sent Thursday December 7 2017 144 PMTo Bayne Jackie ltBayneJwsdotwagovgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hi again Jackie Irsquom fine thanks and hope you are the same Interesting The Master DBE Directory is the basis for and integral to the conclusions of the DisparityStudy Is it not then part of the information needed to fully review and comment on the DisparityStudy Was it not provided by CHA to WSDOT for review We are trying to fully understand thestudy and if this directory was part of the study why would it need to be obtained by a publicrecords disclosure It should be in the public domain and not restricted from ease of access If you are sure that a public records request is needed Irsquoll start that process but we will need tonote that point of fact when we submit our public comments If you are able to reconsider please let me know Respectfully

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Thursday December 7 2017 126 PMTo Dave Gent - WAPA ltdavegentasphaltwacomgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hello Dave I hope you are doing well

That information would likely be obtained through a public disclosure request Best Regards Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Dave Gent - WAPA [mailtodavegentasphaltwacom] Sent Thursday December 7 2017 113 PMTo Bayne Jackie ltBayneJwsdotwagovgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Jackie Can you please provide an electronic file or provide a weblink for the Master DBE Directory thatColette Holt amp Associates developed for the WSDOT Disparity Study 2017 (first referred to on Page 8of the Disparity Study) I did not see a link to this Master DBE Directory within the study Thanks

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Friday October 27 2017 1118 AMTo Kenyon Wendy ltKenyonWwsdotwagovgt Adams E W ltewadamssystemsclcomgtAdekoyaAndrew ltandrewadekoyabccomgt AlyssaBalllegwagov Anindita Mitraltamitracrea-affiliatescomgt APRISeattlehotmailcom Armstrong CharlotteltCharlieAatgwagovgt Ato Apiafi Architects PLLC ltatoaatoapiaficomgt benzfanwaorgBerntsen Teresa (OMWBE) ltTeresaBomwbewagovgt Billingsley Andrealtbillinawsdotwagovgt Bramlet Erica ltEricaBramletlegwagovgt Brooks Julius

ltBrooksJwsdotwagovgt Brown Jason ltjbrownldccorpcomgt bwallacenwlaborersorgCamden Allison ltCamdenAwsdotwagovgt carlllivingstongmailcom Cerda OscarltCerdaOwsdotwagovgt Christopher Chris ltChristCwsdotwagovgt ckerneycaawagovdanplatinumbusinessgroupcom davegentasphaltwacom David BalltDavidsignsnowmillcreekcomgt Davis Khalia ltDavisKhwsdotwagovgt Davis RaShelle (GOVltrashelledavisgovwagovgt Dayton Jo ltDaytonJwsdotwagovgt ddhondtagcwacomDebbieDriverlegwagov Dennis ltdennisahlkiewitcomgt dmcleodnwlaborersorgdrart6651gmailcom Duncan Enid lthigradeincgmailcomgt EltonltEltonwashingtonstatetruckingcomgt eprincecaawagov flemosldccorpcomfmartineznwmtnmsdcorg geoffshookatkncom glovelady ltgloveladyexcelglovescomgtGrabow Katie ltkgrabowsystemsclcomgt Guilfucci Jackie ltJackieGuilfucciskanskacomgt HealyLinda ltHealyLwsdotwagovgt Higginbotham Breanne ltHigginBwsdotwagovgt HirscheyClaudia ltclaudiahirscheycomcastnetgt Holt Colette ltcoletteholtmwbelawcomgt Huff JohnltHuffJwsdotwagovgt Iniguezchawagov JacksonMaynardlegwagov Jimmy Matta(jmattaalcantarassoccom) ltjmattaalcantarassoccomgt kellywickergovwagov Key EarlltKeyEwsdotwagovgt Kirk Jon ltjkirkwhhnfscomgt Kris Purrier ltkpurrierhwageocomgtleewabuildingtradesorg lesliejonessoundtransitorg Liz Evans ltlevansagcwacomgt LopezErin lterinlopezdeswagovgt Martha Cerna ltMarthaPSLCCORGgt Martin-Arnold EdwinaltMartinEwsdotwagovgt Mary Lerdahl ltmarydbeelectricinccomgt McCarty Hannahlthannahmccartylegwagovgt Melissa L Boyles ltmelissaboylesmwbelawcomgt Metcalf KeithltMetcalKwsdotwagovgt michaelicapaawagov Michelle ltMichelleTTCC26netgt MillarRoger ltMillarRwsdotwagovgt Nakamura Jason ltjasonnakamura1-alliancecomgtNavarroLportseattleorg olliepmt-solutionscom pastorbanksesbctacomacom PatrickHughes ltphugheshughesgroupbizgt Petersen Jodi (FHWA) ltJodiPetersendotgovgtrabbottliunaorg rcarmsteadgmailcom ricemportseattleorg Riley D ltdrileylydigcomgtSeling ltSelingjpfranciscomgt sherryharrisergosynchcom Stell MellodyltStellMwsdotwagovgt terigobintulaliptribes-nsngov timwilliamfactorycom tinaterra-tdicom tkellyldccorpcom tomgaetzmsncom vcollinsacec-waorgverlenejazzmsncom Wang Albert ltWangAatgwagovgt Waugh GregltGregWMaxKuneyComgt Yates Henry ltYatesHWSDOTWAGOVgtCc Tom Gaetz lttomgaetzmsncomgt Dave Gent - WAPA ltdavegentasphaltwacomgt VanCollins ltvcollinsacec-waorggt Daniel Seydel II ltdanplatinumbusinessgroupcomgt MaynardJackson ltJacksonMaynardlegwagovgt Carl Livingston ltcarlllivingstongmailcomgt DonMcLeod ltdmcleodnwlaborersorggt JIMMY MATTA ltjimmymattamsncomgt Prince Ed(CAAA) lteprincecaawagovgt David DHondt ltddhondtagcwacomgt Irene Reyesltgloveladyexcelsupplycompanycomgt McDaniel Craig ltMcDaniCwsdotwagovgtsherryharrisergosynchcomSubject WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Good morning On Monday October 30th WSDOT will be releasing the proposed overall Federal HighwayAdministration Disadvantaged Business Enterprise goal attached for public comment throughDecember 15 2017 This overall DBE goal is based upon the recently completely DBE ProgramDisparity Study WSDOT is proposing a 19 percent overall DBE participation goal on Federal Highway

Administration-funded projects for federal fiscal years 2018 through 2020 DBE goals fortransportation projects that receive federal funds represent a percentage of the value of work inwhich minority- and women-owned businesses should participate Once finalized and submitted toFHWA early next year the goal will be effective through Sept 30 2020

The purpose of the DBE program is to create a level playing field for firms owned and operated bydisadvantaged individuals wanting to participate in federally assisted highway transit and aviationprograms The attached overall DBE goal is for FHWA funded projects WSDOT will be updating theFTA and FAA overall DBE goals in the near future

If you have any questions please contact Earl Key Director of the Office of Equal Opportunity at3607057091 or KeyEwsdotwagov Thank you Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

  • Proof-Of-Publicationpdf
    • Mediapdf
      • AGC
      • Daily Journal
      • Daily Medium
      • DBEGood
      • OMWBE
      • Seattle Medium
      • Tabor 100
      • The Chronicle
      • Tukwila
        • King County
          • Public-Comments-20180111pdf
            • 19 DBE Requirement(1)
            • AGC Comments on Proposed 10 Goad
            • Backstrom Curb amp Sidewalk
            • comments on WSDOT proposed DBE goal
            • Cowlitz County Public Works
            • DBE Contracting goals
            • DBE Goal
            • DBE Program Disparity Study
            • Disparity Study Comments from City of Spokane
            • FW_ WSDOT News - WSDOT seeks comments on propos
            • Proposed DBE Goals
            • RE_ DBE Contracting Goal Comments
            • Re_ DBE Goal Comments
            • Re_ Seydel Dan - WSDOT Disparity Study Present
            • Support for WSDOTs proposed DBE goal
            • Why we need mandatory goals
            • WSDOT DBE Goal - Comment in support
            • WSDOT Proposes DBE goal of 19
            • WSDOT propsed DBE Goals
            • WTS - Disparity Study Comment Letter

From Nate ThomasTo WSDOT Disparity StudySubject WSDOT Proposes DBE goal of 19Date Thursday December 7 2017 42720 PM

The WSDOT should look into similar ways the Federal Gov has handled the equal opportunity forthose that fall under the DBE status and set aside specific projects for the DBErsquos and moreimportantly UDBErsquos so these companies have better chance of landing contracts Maybe a lot 10 ofthe DBE goal to set aside for only DBEs and other 9 goal met as it is done currently with COA onlarger contracts Nate ThomasSenior EstimatorD 5095688085 | C 5099941156331 North Fancher Road | Spokane WA | 99212

The information contained in this email including any attachments is confidential and may beprivileged It is intended only for the person or entity to which it is addressed and no waiver isintended by sending this email If the reader is not the intended recipient you are herebynotified that any review retransmission dissemination or other use of or taking any action inreliance upon this information is strictly prohibited If you have received this email in errorkindly notify the sender by reply email and delete the original message from any computerThank You

From Brian FujiiTo WSDOT Disparity StudySubject WSDOT propsed DBE GoalsDate Thursday December 7 2017 110638 AM

Good morning Jackie

I wanted to comment on WSDOTs proposed DBE goal to 19 I believe WSDOTs plan toincrease the overall DBE goal to 19 will provide greater opportunities for DBE contractorsin different disciplines to participate in federally funded contracts

Without the new DBE requirement and with Proposition 200 there are limited opportunitiesfor DBE contractors in disciplines different than the typical trucking flagging and rebar Inaddition there are no incentives for general contractors to go out beyond the usual truckingflagging and rebar DBE subcontractors

Increasing the DBE goals will provide opportunities for different DBE contractors in differentdisciplines to participate in WSDOT federally funded projects

Thank you for your time

RespectfullyBrian FujiiPresident Subsurface ConstructionP 2063836478F 2069604639MDBE 4M0024998

From Forman StephanieTo Bayne JackieCc Millar Roger christinenhanmailhousegov Claudia Hirschey Sarah Corbin Jiang Yingle

efaulknerenviroissuescom Diana Giraldo Kelly CheesemanSubject WTS - Disparity Study Comment LetterDate Friday December 15 2017 71020 PMAttachments 2017_Dec 15_WTSCommentLetter_WSDOT DBE Goalpdf

Dear Ms Bayne Please find our attached letter which summarizes the WTS Puget Sound Chapterrsquos support foradvancement of women in transportation and our comment letter regarding the recent DisparityStudy Please feel free to contact me if you have any questions or would like to discuss Sincerely Stephanie S Forman PEWTS Puget Sound President Transportation Project Manager

929 108th Avenue NE Suite 1300Bellevue WA 98004D 4254681548 M 2062291745stephanieformanhdrinccom

December 15 2017

Jackie Bayne Policy and Reporting Manager

Office of Equal Opportunity

Washington State Department of Transportation

PO Box 47314

Olympia WA 98504-7314

Dear Ms Bayne

On behalf of the Puget Sound Chapter of Womenrsquos Transportation Seminar (WTS) we would

like to thank the Washington State Department of Transportation for presenting to our

organization the DBE Disparity Study results We very much appreciated the presentation by Earl

Key Director of WSDOTrsquos Office of Equal Opportunity Teresa Berntsen (Director Office of Minority

and Womens Business Enterprises) as well as Leslie Jones (Director Sound Transit Office of Small

Business Development and Labor Compliance)

Following a review of the WSDOT Disparity Study and as a result of consultation with WTS

International we would like to provide WSDOT with our comments for your consideration

As you know WTS is an organization focused exclusively on attracting retaining and advancing

women in transportation By the year 2018 there will be thousands of vacancies in the

transportation industry for qualified professionals and while women account for more than half of

the worldrsquos workforce they are a very small minority in transportation disciplines

We are pleased that the outcome of the 2017 Disparity Study that recognizes the on-going barriers

for DBEs including women-owned businesses in transportation The WSDOT recommended DBE

Goal of 190 is a small and important increase that can further achieve equity in WSDOTFHWA

contracting We are also pleased that the 2017 Disparity Study has documented the disparity in

WSDOT contracts that do not have a DBE or WBE goal ndash further reinforcing that all women-owned

firms and minority owned firms face equity issues We are encouraged that the WSDOT has asked

FHWA to rescind the 2016 waiver

While WTSrsquo mission is specific to the advancement of women we are a race-neutral organization To

this end we are also deeply concerned about the underutilization of minority owned firms There is

no equity or ldquofair playing fieldrdquo without equity for all gender and races We remained concerned with

the methodology required by the Code of Federal Regulations and case law because of the

dependence on the availability of firms in the calculation An unintended consequence of removing

either gender or race from the goal is that many of these firms would go out of business the

availability decreases and the formula then results in a smaller DBE goal This consequence is

contrary to our mission

We look forward to our continued participation in WSDOTrsquos DBE advisory group we are anticipating

notice that the 2016 waiver has been rescinded and how we can work together to continue

advancing minority and women-owned firms in the transportation field

Sincerely

WTS Puget Sound Chapter

Stephanie Forman

President

C Roger Millar Secretary WSDOT

C Representative Adam Smith 9th Congressional District Washington co Christine Nhan

WTS Puget Sound Chapter

PO Box 3461

Bellevue Washington 98009

From Dave Gent - WAPATo Bayne JackieCc Tom GaetzSubject WAPA Public Comments - RE WSDOT FHWA Disadvantaged Business Enterprise Proposed GoalDate Friday December 15 2017 14119 PMAttachments 12152017 DBE Proposed Goal - WAPA Public Comments Letterpdf

Good afternoon Jackie Please find attached WAPArsquos ldquofor the public recordrdquo comments with respect to WSDOTrsquos proposedDBE Goals FHWA funded work I assume that the Master DBE Directory was not sent to you this week so as a result we were notable to review the directory before the close of the public comment period That fact is noted withinour comment letter Thank you for your efforts Have a good weekend

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Friday December 8 2017 1219 PMTo Dave Gent - WAPA ltdavegentasphaltwacomgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hello Dave WSDOT did not take possession of this directory as part of our review process We will provide youwith the records without submitting a formal request However we need to get them from theconsultant first I will hopefully have them to provide next week I will keep you updated on therequest Have a nice weekend Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal Opportunity

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

December 15 2017

Jackie Bayne Policy Manager WSDOT Office of Equal Opportunity Delivered via e-mail to BayneJwsdotwagov RE Public Comment (as requested) to Proposed Overall DBE Goal for the FHWA (2018 ndash 2020) Ms Bayne Thank you for your presentation via webinar on December 5 2017 outlining WSDOTrsquos evaluation process used to determine the proposed overall DBE goal for the FHWA Thank you also for the Colette Holt amp Associates (CHA) DBE Advisory Group presentation made on September 14 2017 Both presentations helped to distill the findings of the 2017 Disparity Study produced by CHA In response to Earl Keyrsquos initial informal request to comment on the proposed overall DBE goal made during the DBE Advisory Committee teleconference held on October 12th we provided a list of reasons that we believe justify a lower DBE goal than is now being proposed Our initial response to Mr Keyrsquos request did not serve to influence WSDOT and the current proposed goal remains at 190 The arguments provided on October 12th against the significant increase in the proposed DBE goal (versus the previous goal and recent historic DBE participation) are repeated and supplemented below and will serve as the Asphalt Pavement Associationrsquos (WAPArsquos) official public comments

In concert with WSDOT and the OWMBE WAPA and the construction firms that WAPA represents have demonstrated a commitment to the principals of equal opportunity for all ldquoready willing and ablerdquo firms for the entire history that our DBE program has been in place WAPA has continuously demonstrated its commitment to the goals of the DBE program and for increasing the representation of disadvantaged groups within our industry as both workers and owners of firms Please recognize that WAPArsquos oversight and critique of the DBE program has always attempted to balance the principals of fair and open competition with the practical aspects of the low bid compressed schedule high performance standards demanded within the WSDOT marketplace Our comments below are meant to enhance WSDOTrsquos and OWMBErsquos understanding of the market and to hopefully have WSDOT fully consider all of the dynamics that are at play when proposing its Triennial DBE goal for FHWA projects Current DBE Capacity vs Historically Robust Market In advocating for a realistic and defensible DBE goal it has always been WAPArsquos position that it is paramount that the realities of the marketplace and true certified DBE subcontracting capacity should be a primary standard While a ldquostretchrdquo goal may appear to be progressive on its face it comes with consequences for all of the parties involved in the WSDOT federal aid contracting arena To balance the dynamics of the WSDOT contracting system the DBE goal should be tempered with the realities of the market and with a true measure of the underlying effectiveness of the DBE support services available to contractors

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 2 of 6 The first point of fact that has not been given any apparent consideration by WSDOT in its evaluation of the current capacity of certified DBErsquos is that there is an historically robust workload scheduled to be performed in the 2017 through 2022 time-frame particularly in the Puget Sound ldquoEverett to Olympiardquo corridor By WSDOTrsquos own estimates (see Attachment A) public works construction project starts in the 2018 to 2022 time-frame in this region will exceed $333 billion (B) counting the work projected from just five public entities WSDOT will be taking a decidedly ldquoback seatrdquo role during this period to Sound Transit which will have construction project starts of $226B vs WSDOTrsquos projected volume of $67B WSDOTrsquos summary publication titled Washington State Department of Transportations Proposed Federal Highway Administration Triennium Disadvantaged Business Enterprise Goal Federal Fiscal Years 2018-2020 states correctly that ldquoIncluded among the types of evidence that must be considered are the current capacity of DBEs to perform work on WSDOTrsquos federally-assisted contracts as measured by the volume of work DBEs have performed in recent yearshelliprdquo (Step Two Adjustment discussion) With the Sound Transit program being over 300 larger than the total WSDOT program in this region a sober assessment of true certified DBE capacity in the next three years needs to be considered by WSDOT If the huge construction boom over the next five years does not prompt a Step Two Adjustment then it becomes obvious that the realities of the market are being ignored by WSDOT for DBE goal setting Put another way if the 2018 through 2022 level of contracting activity does not warrant a goal adjustment what will DBE Access Barriers Not Yet Addressed The CHA 2017 Disparity Study points out multiple recommendations in Section VII that impact DBE participation and access to the market Assessments relating to those impacts and the state of maturity in addressing the CHA recommendations should be considered when assessing the DBE goal Many of the CHA recommendation have not been adequately addressed at this point in time Some of the prime examples are listed below Increase Certification and Expertise ndash The Disparity Study as explained to us includes all minority- (MBE)

and women-owned (WBE) firms that could be readily identified that perform work within Washington State and that perform work within the NAICS code framework CHA developed to cover WSDOT project work During the various presentations relating to the Disparity Study WSDOT representatives said that outreach to currently non-certified MBE amp WBE firms has increased and that WSDOT aspires to bolster its list of certified firms in the future but this effort is just beginning and the success of the effort needs to be means tested against the broader population of MBE amp WBE firms included in the CHA base line evaluation As the Disparity Study uses a much broader population of MBE WBE contractors to arrive at its conclusions (both non-certified firms and firms too large for certification) it follows that the calculated DBE proposed goal is overstated to include capacity that does not currently exist within WSDOTrsquos certified DBE framework Unless OMWBE is experiencing sudden and unprecedented success in recruiting new MBEWBE firms the DBE goal should be adjusted downward to recognize that the ldquoready willing and ablerdquo contractors that WSDOT has certified is only a subset of the total MBEWBE contracting population used in the Disparity Study evaluation

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 3 of 6

Until the promised WSDOT outreach registration efforts result in a substantial increase in available certified DBE firms it is premature to count the entire population of minority- and women-owned contractors as available to participate in WSDOT contracting It is unreasonable for WSDOT to project availability capacity using the entire MBEWBE population when only its currently truncated list of certified firms is acceptable to count toward the DBE goal

A corollary to the Increase Certification and Expertise discussion above is that the calculation of the Base Figure evidently includes the broadest practical population of MBE and WBE firms identifiable (without a review of the CHA Master DBE Directory which has not been supplied prior to the close of the public comment period the scope of the directory cannot be ascertained) If this directory includes a large population of MBEWBE firms that are not certified or are too large to be certified then the Base Figure calculation should be adjusted to reflect that certified DBE firms are a fraction of the total MBEWBE firms used to arrive at the 19 suggested DBE goal With respect to the CHA Master Directory it is our understanding the WSDOT was not given the directory as part of its evaluation of the Disparity Study and it follows that it did not evaluate the proposed DBE goal in the context of the CHA Master DBE Directory In our opinion an informed decision on adjusting the CHA baseline goal calculation can only be done after an extensive evaluation of the CHA Master DBE Directory If this has not been done WSDOT has not exercised due diligence in evaluating the context and underpinnings of the CHA Disparity Study and a certified DBE Triennium goal proposal to the FHWA is premature Increase Contract ldquoUnbundlingrdquo ndash If this proposed strategy (suggested by the CHA Study) is undertaken

certified DBE Subcontractors currently available will be engaged as Prime Contractors and the value of their prime contracts will bolster the overall percentage of certified DBE contracting but a systematic effort and strategy to ldquounbundlerdquo has not been articulated by WSDOT The key question of how this effort can be accomplished without increased cost to the taxpayers and increased inconvenience for the traveling public As noted in the CHA study (page 129 final paragraph) ldquoUnbundling must be conducted however within the constraints of the need to ensure efficiency and limit cost to the taxpayersrdquo As of this writing no overarching strategy for further unbundling with proper accountability has been articulated by WSDOT to the DBE Advisory Group

Review Insurance and Experience Requirements ndash Impediments to certified DBE participation due to

necessary insurance and experience standards cannot be solved by the prime contracting community Unless and until WSDOT puts together programs to address the burden of the substantial risks shouldered by Prime Contractors on WSDOT contracts barriers for streamlined utilization of certified DBE firms will continue to exist These market driven barriers will continue to dampen the availability of certified DBE Subcontractors that are able to perform within WSDOTrsquos strict criteria without unduly transferring risk to the Prime Contractor

Better Partnering to Overcome DBE Failures to Perform ndash Prime Contractors are held fully responsible to maintain the project schedule and are subject to project liquidated damages even when they may be struggling to deal with Subcontractor performance issues It is well-established that replacing a certified ldquocondition of awardrdquo (COA) DBE Subcontractor is very onerous and likely very costly to the Prime Contractor Unfortunately the imposition of strict and often counter-productive commercially useful function (CUF) rules often compound this issue as Prime Contractors cannot help COA DBE Subcontractors work through capacity expertise or time-related issues that impact timely performance

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 4 of 6

WSDOT needs to be a much better partner in the process of dealing with under-performing or non-performing certified DBE Subcontractors The current standard operational procedure places all of the exposure for non-performance onto the Prime WSDOT does not have an equitable system to account for non-performing or under-performing certified DBE Subcontractors hired as a condition of award (COA)

Performance Information and Training ndash Commercially useful function rules (CUF) and the lack of clear benchmark definitions for good faith effort (GFE) standards remain barriers for improving accountability within the DBE system and in turn lead to distorted DBE participation rates These items remain amorphous due to lack of training or lack of historic information Chronic uncertainty exists regarding both of these items Until WSDOT changes and improves its approach to provide transparency and certainty for both the prime bidding amp subcontracting parties true certified DBE capacity will continue to be masked and the resultant higher subcontracting costs associated with a distorted marketplace will continue to be hidden

WAPA respectfully suggests that simply adding an ldquoEstimated DBE Subcontract Premiumrdquo line to the current DBE bid forms would help to establish benchmarks that could begin to be used to ldquomeans testrdquo good faith efforts If this information had been gathered over the last 20 years of the DBE program meaningful GFE standards could have been developed and could be in place today

An in-depth review of CUF standards would also provide clarity For instance it is unclear why force account items performed by certified DBEs are currently counted at only 50 of the value of the work How was this benchmark established Has it been reviewed since imposed Did it ldquosolverdquo whatever inequity WSDOT was trying to address Better clarity may lead to more expanded opportunities for certified DBE Subcontractors

Enhanced Supportive Services and Business Development Programs ndash Unless and until stronger programs of these types are shown to be effective in boosting certified DBE business development increased DBE participation due to stronger business acumen should not be relied upon when setting the new DBE goal

Does OMWBE have a reasonable expectation that future plans for enhanced and expanded programs will be more successful than those employed in the past Assuming that certified DBE Subcontractors will be better prepared to deal with the WSDOT contracting environment than in the past should not be relied upon to boost DBE participation goals Especially troubling were the multiple references within the CHA report highlighting that DBEs believe that the staff at OMWBE lack a deep knowledge about the highway construction industry (eg Study page 129 2nd paragraph) Does OMWBE have a path forward that will address this issue and thus improve supportive services impacts

Develop a Bonding and Financing Program for SBEs ndash This is completely outside of the prime contracting

communityrsquos scope of influence WSDOT must find a way to institute changes that both protect the taxpayer and help increase certified DBE bonding capacity and access to financing ndash very large hurtles To assume that these hurtles can effectively be overcome within the 2018 ndash 2020 time frame when they have been chromic issues for the past 20 plus years of DBE program development is not rational

A helpful innovation would be for WSDOT to underwrite performance and payment bonds for certified DBE firms or to create promote a system that helps certified DBE firms obtain private bonding Bridging the gap to address capital access and performance risks (bonding) must be championed by WSDOT

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 5 of 6

Base Figure Adjustment to Address Available Subcontract Volume and DBE Prime Contracts It is a fact that mid- to large-sized MBEWBE firms that compete both as Prime Contractors and as Subcontractors are not eligible to be OMWBE certified DBEs Further the current amount of contract unbundling for greater DBE access to WSDOT prime contracting (see below) accounts for a very low dollar volume of prime contracts performed by certified DBEs Finally by specification (WSDOT standard specification 1-081) Prime Contractors are obligated to perform 30 of the total volume of the work (less specialty work) or stated another way a maximum of 70 of the dollar volume on WSDOT projects is typically available to award to subcontractors These market dynamics are NOT addressed in the Disparity Study A responsible DBE goal made absent of these facts should not be implemented A reasonable adjustment to the proposed 19 DBE goal is presented below

bull The percent of WSDOT prime contracts awarded to certified DBE firms is likely less than 5 by total WSDOT

contract volume Assuming this approximation is valid (likely very conservative) then the amount of WSDOT contract work available to certified DBE firms via subcontracting should be adjusted to account for the factors outlined above The Base Figure (19) should be adjusted to recognize that a 70 maximum subcontractor participation is available (in the numerator) and to account for the assumed 5 certified DBE prime contracts in the denominator Reasonable Base Figure Adjustment 19 (proposed) x 70 subcontracts available divide 95 of Non-Certified DBEs as Prime Contract Volume = 190 x 0737 = 140 adjusted goal This is an adjustment based on the practical dynamics of the WSDOT contracting system and it represents a more realistic look at the true subcontract volume that is available for Prime Contractors to award to certified DBE firms

Conclusions

Until the items listed above are addressed and in place it is not reasonable to believe that DBE goals can be increased by nearly 163 (from 117 to 190) When the projected robust public works contracting market is appropriately considered the true availability of certified DBE Subcontractors for WSDOT contracts will be truncated due to demand across all public works sectors With multiple strong public works programs competing for a limited population of certified DBEs the ability to meet increased WSDOT DBE goals will be severely challenged Without very clear concise and transparent good faith effort rules the ability to address DBE goals that greatly overestimate true near term certified DBE capacity will result in non-attainment bid day chaos failures to perform andor rapidly increased pricing

The clear conclusion is that at this point in time under the current circumstances without effectively instituted new programs rules procedures that could enhance the certified DBE programrsquos overall effectiveness we believe that the DBE goal should remain at or near 12 As OMWBE documents and demonstrates its future successes in improving access and eliminating capacity barriers only then should the DBE goal be re-evaluated and increased

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 6 of 6

In closing please remember that it is rare that the contracting community is asked our opinion with respect to the WSDOTrsquos DBE policies and so this letter is somewhat a vehicle to highlight collective concerns It is our belief that the majority of the Prime Contractors in Washington state support the objective of creating a level playing field for ready willing and able DBEs

If the level playing field is not yet possible in the absence of the DBE program then the key is to set realistic goals that recognize reflect and address the hard realities and market dynamics imposed by WSDOTrsquos bedrock environment of awarding contracts to the lowest cost responsible and responsive Contractor

Respectfully submitted Washington Asphalt Pavement Association

David Gent Tom Gaetz Executive Director Senior Advisor

Attachment A ndash WSDOT Central Puget Sound Public Works Contracting Projection 2018 - 2022

Con

stru

ctio

n Pr

ojec

t Sta

rts

2018

-202

2S

ound

Tra

nsit

$22

6 B

SD

OT

$08

B

Tran

sit

amp O

ther

s$1

7 B

WS

DO

T$6

7 B

Por

t of

Sea

ttle

$15

B

TOTA

L$3

33

B

Source N

ov 1

9 2

017

pres

enta

tion

to W

APA

Ann

ual M

eetin

g

Attachment A

Work (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Dave Gent - WAPA [mailtodavegentasphaltwacom] Sent Thursday December 7 2017 144 PMTo Bayne Jackie ltBayneJwsdotwagovgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hi again Jackie Irsquom fine thanks and hope you are the same Interesting The Master DBE Directory is the basis for and integral to the conclusions of the DisparityStudy Is it not then part of the information needed to fully review and comment on the DisparityStudy Was it not provided by CHA to WSDOT for review We are trying to fully understand thestudy and if this directory was part of the study why would it need to be obtained by a publicrecords disclosure It should be in the public domain and not restricted from ease of access If you are sure that a public records request is needed Irsquoll start that process but we will need tonote that point of fact when we submit our public comments If you are able to reconsider please let me know Respectfully

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Thursday December 7 2017 126 PMTo Dave Gent - WAPA ltdavegentasphaltwacomgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hello Dave I hope you are doing well

That information would likely be obtained through a public disclosure request Best Regards Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Dave Gent - WAPA [mailtodavegentasphaltwacom] Sent Thursday December 7 2017 113 PMTo Bayne Jackie ltBayneJwsdotwagovgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Jackie Can you please provide an electronic file or provide a weblink for the Master DBE Directory thatColette Holt amp Associates developed for the WSDOT Disparity Study 2017 (first referred to on Page 8of the Disparity Study) I did not see a link to this Master DBE Directory within the study Thanks

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Friday October 27 2017 1118 AMTo Kenyon Wendy ltKenyonWwsdotwagovgt Adams E W ltewadamssystemsclcomgtAdekoyaAndrew ltandrewadekoyabccomgt AlyssaBalllegwagov Anindita Mitraltamitracrea-affiliatescomgt APRISeattlehotmailcom Armstrong CharlotteltCharlieAatgwagovgt Ato Apiafi Architects PLLC ltatoaatoapiaficomgt benzfanwaorgBerntsen Teresa (OMWBE) ltTeresaBomwbewagovgt Billingsley Andrealtbillinawsdotwagovgt Bramlet Erica ltEricaBramletlegwagovgt Brooks Julius

ltBrooksJwsdotwagovgt Brown Jason ltjbrownldccorpcomgt bwallacenwlaborersorgCamden Allison ltCamdenAwsdotwagovgt carlllivingstongmailcom Cerda OscarltCerdaOwsdotwagovgt Christopher Chris ltChristCwsdotwagovgt ckerneycaawagovdanplatinumbusinessgroupcom davegentasphaltwacom David BalltDavidsignsnowmillcreekcomgt Davis Khalia ltDavisKhwsdotwagovgt Davis RaShelle (GOVltrashelledavisgovwagovgt Dayton Jo ltDaytonJwsdotwagovgt ddhondtagcwacomDebbieDriverlegwagov Dennis ltdennisahlkiewitcomgt dmcleodnwlaborersorgdrart6651gmailcom Duncan Enid lthigradeincgmailcomgt EltonltEltonwashingtonstatetruckingcomgt eprincecaawagov flemosldccorpcomfmartineznwmtnmsdcorg geoffshookatkncom glovelady ltgloveladyexcelglovescomgtGrabow Katie ltkgrabowsystemsclcomgt Guilfucci Jackie ltJackieGuilfucciskanskacomgt HealyLinda ltHealyLwsdotwagovgt Higginbotham Breanne ltHigginBwsdotwagovgt HirscheyClaudia ltclaudiahirscheycomcastnetgt Holt Colette ltcoletteholtmwbelawcomgt Huff JohnltHuffJwsdotwagovgt Iniguezchawagov JacksonMaynardlegwagov Jimmy Matta(jmattaalcantarassoccom) ltjmattaalcantarassoccomgt kellywickergovwagov Key EarlltKeyEwsdotwagovgt Kirk Jon ltjkirkwhhnfscomgt Kris Purrier ltkpurrierhwageocomgtleewabuildingtradesorg lesliejonessoundtransitorg Liz Evans ltlevansagcwacomgt LopezErin lterinlopezdeswagovgt Martha Cerna ltMarthaPSLCCORGgt Martin-Arnold EdwinaltMartinEwsdotwagovgt Mary Lerdahl ltmarydbeelectricinccomgt McCarty Hannahlthannahmccartylegwagovgt Melissa L Boyles ltmelissaboylesmwbelawcomgt Metcalf KeithltMetcalKwsdotwagovgt michaelicapaawagov Michelle ltMichelleTTCC26netgt MillarRoger ltMillarRwsdotwagovgt Nakamura Jason ltjasonnakamura1-alliancecomgtNavarroLportseattleorg olliepmt-solutionscom pastorbanksesbctacomacom PatrickHughes ltphugheshughesgroupbizgt Petersen Jodi (FHWA) ltJodiPetersendotgovgtrabbottliunaorg rcarmsteadgmailcom ricemportseattleorg Riley D ltdrileylydigcomgtSeling ltSelingjpfranciscomgt sherryharrisergosynchcom Stell MellodyltStellMwsdotwagovgt terigobintulaliptribes-nsngov timwilliamfactorycom tinaterra-tdicom tkellyldccorpcom tomgaetzmsncom vcollinsacec-waorgverlenejazzmsncom Wang Albert ltWangAatgwagovgt Waugh GregltGregWMaxKuneyComgt Yates Henry ltYatesHWSDOTWAGOVgtCc Tom Gaetz lttomgaetzmsncomgt Dave Gent - WAPA ltdavegentasphaltwacomgt VanCollins ltvcollinsacec-waorggt Daniel Seydel II ltdanplatinumbusinessgroupcomgt MaynardJackson ltJacksonMaynardlegwagovgt Carl Livingston ltcarlllivingstongmailcomgt DonMcLeod ltdmcleodnwlaborersorggt JIMMY MATTA ltjimmymattamsncomgt Prince Ed(CAAA) lteprincecaawagovgt David DHondt ltddhondtagcwacomgt Irene Reyesltgloveladyexcelsupplycompanycomgt McDaniel Craig ltMcDaniCwsdotwagovgtsherryharrisergosynchcomSubject WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Good morning On Monday October 30th WSDOT will be releasing the proposed overall Federal HighwayAdministration Disadvantaged Business Enterprise goal attached for public comment throughDecember 15 2017 This overall DBE goal is based upon the recently completely DBE ProgramDisparity Study WSDOT is proposing a 19 percent overall DBE participation goal on Federal Highway

Administration-funded projects for federal fiscal years 2018 through 2020 DBE goals fortransportation projects that receive federal funds represent a percentage of the value of work inwhich minority- and women-owned businesses should participate Once finalized and submitted toFHWA early next year the goal will be effective through Sept 30 2020

The purpose of the DBE program is to create a level playing field for firms owned and operated bydisadvantaged individuals wanting to participate in federally assisted highway transit and aviationprograms The attached overall DBE goal is for FHWA funded projects WSDOT will be updating theFTA and FAA overall DBE goals in the near future

If you have any questions please contact Earl Key Director of the Office of Equal Opportunity at3607057091 or KeyEwsdotwagov Thank you Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

  • Proof-Of-Publicationpdf
    • Mediapdf
      • AGC
      • Daily Journal
      • Daily Medium
      • DBEGood
      • OMWBE
      • Seattle Medium
      • Tabor 100
      • The Chronicle
      • Tukwila
        • King County
          • Public-Comments-20180111pdf
            • 19 DBE Requirement(1)
            • AGC Comments on Proposed 10 Goad
            • Backstrom Curb amp Sidewalk
            • comments on WSDOT proposed DBE goal
            • Cowlitz County Public Works
            • DBE Contracting goals
            • DBE Goal
            • DBE Program Disparity Study
            • Disparity Study Comments from City of Spokane
            • FW_ WSDOT News - WSDOT seeks comments on propos
            • Proposed DBE Goals
            • RE_ DBE Contracting Goal Comments
            • Re_ DBE Goal Comments
            • Re_ Seydel Dan - WSDOT Disparity Study Present
            • Support for WSDOTs proposed DBE goal
            • Why we need mandatory goals
            • WSDOT DBE Goal - Comment in support
            • WSDOT Proposes DBE goal of 19
            • WSDOT propsed DBE Goals
            • WTS - Disparity Study Comment Letter

From Brian FujiiTo WSDOT Disparity StudySubject WSDOT propsed DBE GoalsDate Thursday December 7 2017 110638 AM

Good morning Jackie

I wanted to comment on WSDOTs proposed DBE goal to 19 I believe WSDOTs plan toincrease the overall DBE goal to 19 will provide greater opportunities for DBE contractorsin different disciplines to participate in federally funded contracts

Without the new DBE requirement and with Proposition 200 there are limited opportunitiesfor DBE contractors in disciplines different than the typical trucking flagging and rebar Inaddition there are no incentives for general contractors to go out beyond the usual truckingflagging and rebar DBE subcontractors

Increasing the DBE goals will provide opportunities for different DBE contractors in differentdisciplines to participate in WSDOT federally funded projects

Thank you for your time

RespectfullyBrian FujiiPresident Subsurface ConstructionP 2063836478F 2069604639MDBE 4M0024998

From Forman StephanieTo Bayne JackieCc Millar Roger christinenhanmailhousegov Claudia Hirschey Sarah Corbin Jiang Yingle

efaulknerenviroissuescom Diana Giraldo Kelly CheesemanSubject WTS - Disparity Study Comment LetterDate Friday December 15 2017 71020 PMAttachments 2017_Dec 15_WTSCommentLetter_WSDOT DBE Goalpdf

Dear Ms Bayne Please find our attached letter which summarizes the WTS Puget Sound Chapterrsquos support foradvancement of women in transportation and our comment letter regarding the recent DisparityStudy Please feel free to contact me if you have any questions or would like to discuss Sincerely Stephanie S Forman PEWTS Puget Sound President Transportation Project Manager

929 108th Avenue NE Suite 1300Bellevue WA 98004D 4254681548 M 2062291745stephanieformanhdrinccom

December 15 2017

Jackie Bayne Policy and Reporting Manager

Office of Equal Opportunity

Washington State Department of Transportation

PO Box 47314

Olympia WA 98504-7314

Dear Ms Bayne

On behalf of the Puget Sound Chapter of Womenrsquos Transportation Seminar (WTS) we would

like to thank the Washington State Department of Transportation for presenting to our

organization the DBE Disparity Study results We very much appreciated the presentation by Earl

Key Director of WSDOTrsquos Office of Equal Opportunity Teresa Berntsen (Director Office of Minority

and Womens Business Enterprises) as well as Leslie Jones (Director Sound Transit Office of Small

Business Development and Labor Compliance)

Following a review of the WSDOT Disparity Study and as a result of consultation with WTS

International we would like to provide WSDOT with our comments for your consideration

As you know WTS is an organization focused exclusively on attracting retaining and advancing

women in transportation By the year 2018 there will be thousands of vacancies in the

transportation industry for qualified professionals and while women account for more than half of

the worldrsquos workforce they are a very small minority in transportation disciplines

We are pleased that the outcome of the 2017 Disparity Study that recognizes the on-going barriers

for DBEs including women-owned businesses in transportation The WSDOT recommended DBE

Goal of 190 is a small and important increase that can further achieve equity in WSDOTFHWA

contracting We are also pleased that the 2017 Disparity Study has documented the disparity in

WSDOT contracts that do not have a DBE or WBE goal ndash further reinforcing that all women-owned

firms and minority owned firms face equity issues We are encouraged that the WSDOT has asked

FHWA to rescind the 2016 waiver

While WTSrsquo mission is specific to the advancement of women we are a race-neutral organization To

this end we are also deeply concerned about the underutilization of minority owned firms There is

no equity or ldquofair playing fieldrdquo without equity for all gender and races We remained concerned with

the methodology required by the Code of Federal Regulations and case law because of the

dependence on the availability of firms in the calculation An unintended consequence of removing

either gender or race from the goal is that many of these firms would go out of business the

availability decreases and the formula then results in a smaller DBE goal This consequence is

contrary to our mission

We look forward to our continued participation in WSDOTrsquos DBE advisory group we are anticipating

notice that the 2016 waiver has been rescinded and how we can work together to continue

advancing minority and women-owned firms in the transportation field

Sincerely

WTS Puget Sound Chapter

Stephanie Forman

President

C Roger Millar Secretary WSDOT

C Representative Adam Smith 9th Congressional District Washington co Christine Nhan

WTS Puget Sound Chapter

PO Box 3461

Bellevue Washington 98009

From Dave Gent - WAPATo Bayne JackieCc Tom GaetzSubject WAPA Public Comments - RE WSDOT FHWA Disadvantaged Business Enterprise Proposed GoalDate Friday December 15 2017 14119 PMAttachments 12152017 DBE Proposed Goal - WAPA Public Comments Letterpdf

Good afternoon Jackie Please find attached WAPArsquos ldquofor the public recordrdquo comments with respect to WSDOTrsquos proposedDBE Goals FHWA funded work I assume that the Master DBE Directory was not sent to you this week so as a result we were notable to review the directory before the close of the public comment period That fact is noted withinour comment letter Thank you for your efforts Have a good weekend

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Friday December 8 2017 1219 PMTo Dave Gent - WAPA ltdavegentasphaltwacomgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hello Dave WSDOT did not take possession of this directory as part of our review process We will provide youwith the records without submitting a formal request However we need to get them from theconsultant first I will hopefully have them to provide next week I will keep you updated on therequest Have a nice weekend Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal Opportunity

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

December 15 2017

Jackie Bayne Policy Manager WSDOT Office of Equal Opportunity Delivered via e-mail to BayneJwsdotwagov RE Public Comment (as requested) to Proposed Overall DBE Goal for the FHWA (2018 ndash 2020) Ms Bayne Thank you for your presentation via webinar on December 5 2017 outlining WSDOTrsquos evaluation process used to determine the proposed overall DBE goal for the FHWA Thank you also for the Colette Holt amp Associates (CHA) DBE Advisory Group presentation made on September 14 2017 Both presentations helped to distill the findings of the 2017 Disparity Study produced by CHA In response to Earl Keyrsquos initial informal request to comment on the proposed overall DBE goal made during the DBE Advisory Committee teleconference held on October 12th we provided a list of reasons that we believe justify a lower DBE goal than is now being proposed Our initial response to Mr Keyrsquos request did not serve to influence WSDOT and the current proposed goal remains at 190 The arguments provided on October 12th against the significant increase in the proposed DBE goal (versus the previous goal and recent historic DBE participation) are repeated and supplemented below and will serve as the Asphalt Pavement Associationrsquos (WAPArsquos) official public comments

In concert with WSDOT and the OWMBE WAPA and the construction firms that WAPA represents have demonstrated a commitment to the principals of equal opportunity for all ldquoready willing and ablerdquo firms for the entire history that our DBE program has been in place WAPA has continuously demonstrated its commitment to the goals of the DBE program and for increasing the representation of disadvantaged groups within our industry as both workers and owners of firms Please recognize that WAPArsquos oversight and critique of the DBE program has always attempted to balance the principals of fair and open competition with the practical aspects of the low bid compressed schedule high performance standards demanded within the WSDOT marketplace Our comments below are meant to enhance WSDOTrsquos and OWMBErsquos understanding of the market and to hopefully have WSDOT fully consider all of the dynamics that are at play when proposing its Triennial DBE goal for FHWA projects Current DBE Capacity vs Historically Robust Market In advocating for a realistic and defensible DBE goal it has always been WAPArsquos position that it is paramount that the realities of the marketplace and true certified DBE subcontracting capacity should be a primary standard While a ldquostretchrdquo goal may appear to be progressive on its face it comes with consequences for all of the parties involved in the WSDOT federal aid contracting arena To balance the dynamics of the WSDOT contracting system the DBE goal should be tempered with the realities of the market and with a true measure of the underlying effectiveness of the DBE support services available to contractors

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 2 of 6 The first point of fact that has not been given any apparent consideration by WSDOT in its evaluation of the current capacity of certified DBErsquos is that there is an historically robust workload scheduled to be performed in the 2017 through 2022 time-frame particularly in the Puget Sound ldquoEverett to Olympiardquo corridor By WSDOTrsquos own estimates (see Attachment A) public works construction project starts in the 2018 to 2022 time-frame in this region will exceed $333 billion (B) counting the work projected from just five public entities WSDOT will be taking a decidedly ldquoback seatrdquo role during this period to Sound Transit which will have construction project starts of $226B vs WSDOTrsquos projected volume of $67B WSDOTrsquos summary publication titled Washington State Department of Transportations Proposed Federal Highway Administration Triennium Disadvantaged Business Enterprise Goal Federal Fiscal Years 2018-2020 states correctly that ldquoIncluded among the types of evidence that must be considered are the current capacity of DBEs to perform work on WSDOTrsquos federally-assisted contracts as measured by the volume of work DBEs have performed in recent yearshelliprdquo (Step Two Adjustment discussion) With the Sound Transit program being over 300 larger than the total WSDOT program in this region a sober assessment of true certified DBE capacity in the next three years needs to be considered by WSDOT If the huge construction boom over the next five years does not prompt a Step Two Adjustment then it becomes obvious that the realities of the market are being ignored by WSDOT for DBE goal setting Put another way if the 2018 through 2022 level of contracting activity does not warrant a goal adjustment what will DBE Access Barriers Not Yet Addressed The CHA 2017 Disparity Study points out multiple recommendations in Section VII that impact DBE participation and access to the market Assessments relating to those impacts and the state of maturity in addressing the CHA recommendations should be considered when assessing the DBE goal Many of the CHA recommendation have not been adequately addressed at this point in time Some of the prime examples are listed below Increase Certification and Expertise ndash The Disparity Study as explained to us includes all minority- (MBE)

and women-owned (WBE) firms that could be readily identified that perform work within Washington State and that perform work within the NAICS code framework CHA developed to cover WSDOT project work During the various presentations relating to the Disparity Study WSDOT representatives said that outreach to currently non-certified MBE amp WBE firms has increased and that WSDOT aspires to bolster its list of certified firms in the future but this effort is just beginning and the success of the effort needs to be means tested against the broader population of MBE amp WBE firms included in the CHA base line evaluation As the Disparity Study uses a much broader population of MBE WBE contractors to arrive at its conclusions (both non-certified firms and firms too large for certification) it follows that the calculated DBE proposed goal is overstated to include capacity that does not currently exist within WSDOTrsquos certified DBE framework Unless OMWBE is experiencing sudden and unprecedented success in recruiting new MBEWBE firms the DBE goal should be adjusted downward to recognize that the ldquoready willing and ablerdquo contractors that WSDOT has certified is only a subset of the total MBEWBE contracting population used in the Disparity Study evaluation

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 3 of 6

Until the promised WSDOT outreach registration efforts result in a substantial increase in available certified DBE firms it is premature to count the entire population of minority- and women-owned contractors as available to participate in WSDOT contracting It is unreasonable for WSDOT to project availability capacity using the entire MBEWBE population when only its currently truncated list of certified firms is acceptable to count toward the DBE goal

A corollary to the Increase Certification and Expertise discussion above is that the calculation of the Base Figure evidently includes the broadest practical population of MBE and WBE firms identifiable (without a review of the CHA Master DBE Directory which has not been supplied prior to the close of the public comment period the scope of the directory cannot be ascertained) If this directory includes a large population of MBEWBE firms that are not certified or are too large to be certified then the Base Figure calculation should be adjusted to reflect that certified DBE firms are a fraction of the total MBEWBE firms used to arrive at the 19 suggested DBE goal With respect to the CHA Master Directory it is our understanding the WSDOT was not given the directory as part of its evaluation of the Disparity Study and it follows that it did not evaluate the proposed DBE goal in the context of the CHA Master DBE Directory In our opinion an informed decision on adjusting the CHA baseline goal calculation can only be done after an extensive evaluation of the CHA Master DBE Directory If this has not been done WSDOT has not exercised due diligence in evaluating the context and underpinnings of the CHA Disparity Study and a certified DBE Triennium goal proposal to the FHWA is premature Increase Contract ldquoUnbundlingrdquo ndash If this proposed strategy (suggested by the CHA Study) is undertaken

certified DBE Subcontractors currently available will be engaged as Prime Contractors and the value of their prime contracts will bolster the overall percentage of certified DBE contracting but a systematic effort and strategy to ldquounbundlerdquo has not been articulated by WSDOT The key question of how this effort can be accomplished without increased cost to the taxpayers and increased inconvenience for the traveling public As noted in the CHA study (page 129 final paragraph) ldquoUnbundling must be conducted however within the constraints of the need to ensure efficiency and limit cost to the taxpayersrdquo As of this writing no overarching strategy for further unbundling with proper accountability has been articulated by WSDOT to the DBE Advisory Group

Review Insurance and Experience Requirements ndash Impediments to certified DBE participation due to

necessary insurance and experience standards cannot be solved by the prime contracting community Unless and until WSDOT puts together programs to address the burden of the substantial risks shouldered by Prime Contractors on WSDOT contracts barriers for streamlined utilization of certified DBE firms will continue to exist These market driven barriers will continue to dampen the availability of certified DBE Subcontractors that are able to perform within WSDOTrsquos strict criteria without unduly transferring risk to the Prime Contractor

Better Partnering to Overcome DBE Failures to Perform ndash Prime Contractors are held fully responsible to maintain the project schedule and are subject to project liquidated damages even when they may be struggling to deal with Subcontractor performance issues It is well-established that replacing a certified ldquocondition of awardrdquo (COA) DBE Subcontractor is very onerous and likely very costly to the Prime Contractor Unfortunately the imposition of strict and often counter-productive commercially useful function (CUF) rules often compound this issue as Prime Contractors cannot help COA DBE Subcontractors work through capacity expertise or time-related issues that impact timely performance

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 4 of 6

WSDOT needs to be a much better partner in the process of dealing with under-performing or non-performing certified DBE Subcontractors The current standard operational procedure places all of the exposure for non-performance onto the Prime WSDOT does not have an equitable system to account for non-performing or under-performing certified DBE Subcontractors hired as a condition of award (COA)

Performance Information and Training ndash Commercially useful function rules (CUF) and the lack of clear benchmark definitions for good faith effort (GFE) standards remain barriers for improving accountability within the DBE system and in turn lead to distorted DBE participation rates These items remain amorphous due to lack of training or lack of historic information Chronic uncertainty exists regarding both of these items Until WSDOT changes and improves its approach to provide transparency and certainty for both the prime bidding amp subcontracting parties true certified DBE capacity will continue to be masked and the resultant higher subcontracting costs associated with a distorted marketplace will continue to be hidden

WAPA respectfully suggests that simply adding an ldquoEstimated DBE Subcontract Premiumrdquo line to the current DBE bid forms would help to establish benchmarks that could begin to be used to ldquomeans testrdquo good faith efforts If this information had been gathered over the last 20 years of the DBE program meaningful GFE standards could have been developed and could be in place today

An in-depth review of CUF standards would also provide clarity For instance it is unclear why force account items performed by certified DBEs are currently counted at only 50 of the value of the work How was this benchmark established Has it been reviewed since imposed Did it ldquosolverdquo whatever inequity WSDOT was trying to address Better clarity may lead to more expanded opportunities for certified DBE Subcontractors

Enhanced Supportive Services and Business Development Programs ndash Unless and until stronger programs of these types are shown to be effective in boosting certified DBE business development increased DBE participation due to stronger business acumen should not be relied upon when setting the new DBE goal

Does OMWBE have a reasonable expectation that future plans for enhanced and expanded programs will be more successful than those employed in the past Assuming that certified DBE Subcontractors will be better prepared to deal with the WSDOT contracting environment than in the past should not be relied upon to boost DBE participation goals Especially troubling were the multiple references within the CHA report highlighting that DBEs believe that the staff at OMWBE lack a deep knowledge about the highway construction industry (eg Study page 129 2nd paragraph) Does OMWBE have a path forward that will address this issue and thus improve supportive services impacts

Develop a Bonding and Financing Program for SBEs ndash This is completely outside of the prime contracting

communityrsquos scope of influence WSDOT must find a way to institute changes that both protect the taxpayer and help increase certified DBE bonding capacity and access to financing ndash very large hurtles To assume that these hurtles can effectively be overcome within the 2018 ndash 2020 time frame when they have been chromic issues for the past 20 plus years of DBE program development is not rational

A helpful innovation would be for WSDOT to underwrite performance and payment bonds for certified DBE firms or to create promote a system that helps certified DBE firms obtain private bonding Bridging the gap to address capital access and performance risks (bonding) must be championed by WSDOT

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 5 of 6

Base Figure Adjustment to Address Available Subcontract Volume and DBE Prime Contracts It is a fact that mid- to large-sized MBEWBE firms that compete both as Prime Contractors and as Subcontractors are not eligible to be OMWBE certified DBEs Further the current amount of contract unbundling for greater DBE access to WSDOT prime contracting (see below) accounts for a very low dollar volume of prime contracts performed by certified DBEs Finally by specification (WSDOT standard specification 1-081) Prime Contractors are obligated to perform 30 of the total volume of the work (less specialty work) or stated another way a maximum of 70 of the dollar volume on WSDOT projects is typically available to award to subcontractors These market dynamics are NOT addressed in the Disparity Study A responsible DBE goal made absent of these facts should not be implemented A reasonable adjustment to the proposed 19 DBE goal is presented below

bull The percent of WSDOT prime contracts awarded to certified DBE firms is likely less than 5 by total WSDOT

contract volume Assuming this approximation is valid (likely very conservative) then the amount of WSDOT contract work available to certified DBE firms via subcontracting should be adjusted to account for the factors outlined above The Base Figure (19) should be adjusted to recognize that a 70 maximum subcontractor participation is available (in the numerator) and to account for the assumed 5 certified DBE prime contracts in the denominator Reasonable Base Figure Adjustment 19 (proposed) x 70 subcontracts available divide 95 of Non-Certified DBEs as Prime Contract Volume = 190 x 0737 = 140 adjusted goal This is an adjustment based on the practical dynamics of the WSDOT contracting system and it represents a more realistic look at the true subcontract volume that is available for Prime Contractors to award to certified DBE firms

Conclusions

Until the items listed above are addressed and in place it is not reasonable to believe that DBE goals can be increased by nearly 163 (from 117 to 190) When the projected robust public works contracting market is appropriately considered the true availability of certified DBE Subcontractors for WSDOT contracts will be truncated due to demand across all public works sectors With multiple strong public works programs competing for a limited population of certified DBEs the ability to meet increased WSDOT DBE goals will be severely challenged Without very clear concise and transparent good faith effort rules the ability to address DBE goals that greatly overestimate true near term certified DBE capacity will result in non-attainment bid day chaos failures to perform andor rapidly increased pricing

The clear conclusion is that at this point in time under the current circumstances without effectively instituted new programs rules procedures that could enhance the certified DBE programrsquos overall effectiveness we believe that the DBE goal should remain at or near 12 As OMWBE documents and demonstrates its future successes in improving access and eliminating capacity barriers only then should the DBE goal be re-evaluated and increased

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 6 of 6

In closing please remember that it is rare that the contracting community is asked our opinion with respect to the WSDOTrsquos DBE policies and so this letter is somewhat a vehicle to highlight collective concerns It is our belief that the majority of the Prime Contractors in Washington state support the objective of creating a level playing field for ready willing and able DBEs

If the level playing field is not yet possible in the absence of the DBE program then the key is to set realistic goals that recognize reflect and address the hard realities and market dynamics imposed by WSDOTrsquos bedrock environment of awarding contracts to the lowest cost responsible and responsive Contractor

Respectfully submitted Washington Asphalt Pavement Association

David Gent Tom Gaetz Executive Director Senior Advisor

Attachment A ndash WSDOT Central Puget Sound Public Works Contracting Projection 2018 - 2022

Con

stru

ctio

n Pr

ojec

t Sta

rts

2018

-202

2S

ound

Tra

nsit

$22

6 B

SD

OT

$08

B

Tran

sit

amp O

ther

s$1

7 B

WS

DO

T$6

7 B

Por

t of

Sea

ttle

$15

B

TOTA

L$3

33

B

Source N

ov 1

9 2

017

pres

enta

tion

to W

APA

Ann

ual M

eetin

g

Attachment A

Work (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Dave Gent - WAPA [mailtodavegentasphaltwacom] Sent Thursday December 7 2017 144 PMTo Bayne Jackie ltBayneJwsdotwagovgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hi again Jackie Irsquom fine thanks and hope you are the same Interesting The Master DBE Directory is the basis for and integral to the conclusions of the DisparityStudy Is it not then part of the information needed to fully review and comment on the DisparityStudy Was it not provided by CHA to WSDOT for review We are trying to fully understand thestudy and if this directory was part of the study why would it need to be obtained by a publicrecords disclosure It should be in the public domain and not restricted from ease of access If you are sure that a public records request is needed Irsquoll start that process but we will need tonote that point of fact when we submit our public comments If you are able to reconsider please let me know Respectfully

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Thursday December 7 2017 126 PMTo Dave Gent - WAPA ltdavegentasphaltwacomgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hello Dave I hope you are doing well

That information would likely be obtained through a public disclosure request Best Regards Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Dave Gent - WAPA [mailtodavegentasphaltwacom] Sent Thursday December 7 2017 113 PMTo Bayne Jackie ltBayneJwsdotwagovgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Jackie Can you please provide an electronic file or provide a weblink for the Master DBE Directory thatColette Holt amp Associates developed for the WSDOT Disparity Study 2017 (first referred to on Page 8of the Disparity Study) I did not see a link to this Master DBE Directory within the study Thanks

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Friday October 27 2017 1118 AMTo Kenyon Wendy ltKenyonWwsdotwagovgt Adams E W ltewadamssystemsclcomgtAdekoyaAndrew ltandrewadekoyabccomgt AlyssaBalllegwagov Anindita Mitraltamitracrea-affiliatescomgt APRISeattlehotmailcom Armstrong CharlotteltCharlieAatgwagovgt Ato Apiafi Architects PLLC ltatoaatoapiaficomgt benzfanwaorgBerntsen Teresa (OMWBE) ltTeresaBomwbewagovgt Billingsley Andrealtbillinawsdotwagovgt Bramlet Erica ltEricaBramletlegwagovgt Brooks Julius

ltBrooksJwsdotwagovgt Brown Jason ltjbrownldccorpcomgt bwallacenwlaborersorgCamden Allison ltCamdenAwsdotwagovgt carlllivingstongmailcom Cerda OscarltCerdaOwsdotwagovgt Christopher Chris ltChristCwsdotwagovgt ckerneycaawagovdanplatinumbusinessgroupcom davegentasphaltwacom David BalltDavidsignsnowmillcreekcomgt Davis Khalia ltDavisKhwsdotwagovgt Davis RaShelle (GOVltrashelledavisgovwagovgt Dayton Jo ltDaytonJwsdotwagovgt ddhondtagcwacomDebbieDriverlegwagov Dennis ltdennisahlkiewitcomgt dmcleodnwlaborersorgdrart6651gmailcom Duncan Enid lthigradeincgmailcomgt EltonltEltonwashingtonstatetruckingcomgt eprincecaawagov flemosldccorpcomfmartineznwmtnmsdcorg geoffshookatkncom glovelady ltgloveladyexcelglovescomgtGrabow Katie ltkgrabowsystemsclcomgt Guilfucci Jackie ltJackieGuilfucciskanskacomgt HealyLinda ltHealyLwsdotwagovgt Higginbotham Breanne ltHigginBwsdotwagovgt HirscheyClaudia ltclaudiahirscheycomcastnetgt Holt Colette ltcoletteholtmwbelawcomgt Huff JohnltHuffJwsdotwagovgt Iniguezchawagov JacksonMaynardlegwagov Jimmy Matta(jmattaalcantarassoccom) ltjmattaalcantarassoccomgt kellywickergovwagov Key EarlltKeyEwsdotwagovgt Kirk Jon ltjkirkwhhnfscomgt Kris Purrier ltkpurrierhwageocomgtleewabuildingtradesorg lesliejonessoundtransitorg Liz Evans ltlevansagcwacomgt LopezErin lterinlopezdeswagovgt Martha Cerna ltMarthaPSLCCORGgt Martin-Arnold EdwinaltMartinEwsdotwagovgt Mary Lerdahl ltmarydbeelectricinccomgt McCarty Hannahlthannahmccartylegwagovgt Melissa L Boyles ltmelissaboylesmwbelawcomgt Metcalf KeithltMetcalKwsdotwagovgt michaelicapaawagov Michelle ltMichelleTTCC26netgt MillarRoger ltMillarRwsdotwagovgt Nakamura Jason ltjasonnakamura1-alliancecomgtNavarroLportseattleorg olliepmt-solutionscom pastorbanksesbctacomacom PatrickHughes ltphugheshughesgroupbizgt Petersen Jodi (FHWA) ltJodiPetersendotgovgtrabbottliunaorg rcarmsteadgmailcom ricemportseattleorg Riley D ltdrileylydigcomgtSeling ltSelingjpfranciscomgt sherryharrisergosynchcom Stell MellodyltStellMwsdotwagovgt terigobintulaliptribes-nsngov timwilliamfactorycom tinaterra-tdicom tkellyldccorpcom tomgaetzmsncom vcollinsacec-waorgverlenejazzmsncom Wang Albert ltWangAatgwagovgt Waugh GregltGregWMaxKuneyComgt Yates Henry ltYatesHWSDOTWAGOVgtCc Tom Gaetz lttomgaetzmsncomgt Dave Gent - WAPA ltdavegentasphaltwacomgt VanCollins ltvcollinsacec-waorggt Daniel Seydel II ltdanplatinumbusinessgroupcomgt MaynardJackson ltJacksonMaynardlegwagovgt Carl Livingston ltcarlllivingstongmailcomgt DonMcLeod ltdmcleodnwlaborersorggt JIMMY MATTA ltjimmymattamsncomgt Prince Ed(CAAA) lteprincecaawagovgt David DHondt ltddhondtagcwacomgt Irene Reyesltgloveladyexcelsupplycompanycomgt McDaniel Craig ltMcDaniCwsdotwagovgtsherryharrisergosynchcomSubject WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Good morning On Monday October 30th WSDOT will be releasing the proposed overall Federal HighwayAdministration Disadvantaged Business Enterprise goal attached for public comment throughDecember 15 2017 This overall DBE goal is based upon the recently completely DBE ProgramDisparity Study WSDOT is proposing a 19 percent overall DBE participation goal on Federal Highway

Administration-funded projects for federal fiscal years 2018 through 2020 DBE goals fortransportation projects that receive federal funds represent a percentage of the value of work inwhich minority- and women-owned businesses should participate Once finalized and submitted toFHWA early next year the goal will be effective through Sept 30 2020

The purpose of the DBE program is to create a level playing field for firms owned and operated bydisadvantaged individuals wanting to participate in federally assisted highway transit and aviationprograms The attached overall DBE goal is for FHWA funded projects WSDOT will be updating theFTA and FAA overall DBE goals in the near future

If you have any questions please contact Earl Key Director of the Office of Equal Opportunity at3607057091 or KeyEwsdotwagov Thank you Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

  • Proof-Of-Publicationpdf
    • Mediapdf
      • AGC
      • Daily Journal
      • Daily Medium
      • DBEGood
      • OMWBE
      • Seattle Medium
      • Tabor 100
      • The Chronicle
      • Tukwila
        • King County
          • Public-Comments-20180111pdf
            • 19 DBE Requirement(1)
            • AGC Comments on Proposed 10 Goad
            • Backstrom Curb amp Sidewalk
            • comments on WSDOT proposed DBE goal
            • Cowlitz County Public Works
            • DBE Contracting goals
            • DBE Goal
            • DBE Program Disparity Study
            • Disparity Study Comments from City of Spokane
            • FW_ WSDOT News - WSDOT seeks comments on propos
            • Proposed DBE Goals
            • RE_ DBE Contracting Goal Comments
            • Re_ DBE Goal Comments
            • Re_ Seydel Dan - WSDOT Disparity Study Present
            • Support for WSDOTs proposed DBE goal
            • Why we need mandatory goals
            • WSDOT DBE Goal - Comment in support
            • WSDOT Proposes DBE goal of 19
            • WSDOT propsed DBE Goals
            • WTS - Disparity Study Comment Letter

From Forman StephanieTo Bayne JackieCc Millar Roger christinenhanmailhousegov Claudia Hirschey Sarah Corbin Jiang Yingle

efaulknerenviroissuescom Diana Giraldo Kelly CheesemanSubject WTS - Disparity Study Comment LetterDate Friday December 15 2017 71020 PMAttachments 2017_Dec 15_WTSCommentLetter_WSDOT DBE Goalpdf

Dear Ms Bayne Please find our attached letter which summarizes the WTS Puget Sound Chapterrsquos support foradvancement of women in transportation and our comment letter regarding the recent DisparityStudy Please feel free to contact me if you have any questions or would like to discuss Sincerely Stephanie S Forman PEWTS Puget Sound President Transportation Project Manager

929 108th Avenue NE Suite 1300Bellevue WA 98004D 4254681548 M 2062291745stephanieformanhdrinccom

December 15 2017

Jackie Bayne Policy and Reporting Manager

Office of Equal Opportunity

Washington State Department of Transportation

PO Box 47314

Olympia WA 98504-7314

Dear Ms Bayne

On behalf of the Puget Sound Chapter of Womenrsquos Transportation Seminar (WTS) we would

like to thank the Washington State Department of Transportation for presenting to our

organization the DBE Disparity Study results We very much appreciated the presentation by Earl

Key Director of WSDOTrsquos Office of Equal Opportunity Teresa Berntsen (Director Office of Minority

and Womens Business Enterprises) as well as Leslie Jones (Director Sound Transit Office of Small

Business Development and Labor Compliance)

Following a review of the WSDOT Disparity Study and as a result of consultation with WTS

International we would like to provide WSDOT with our comments for your consideration

As you know WTS is an organization focused exclusively on attracting retaining and advancing

women in transportation By the year 2018 there will be thousands of vacancies in the

transportation industry for qualified professionals and while women account for more than half of

the worldrsquos workforce they are a very small minority in transportation disciplines

We are pleased that the outcome of the 2017 Disparity Study that recognizes the on-going barriers

for DBEs including women-owned businesses in transportation The WSDOT recommended DBE

Goal of 190 is a small and important increase that can further achieve equity in WSDOTFHWA

contracting We are also pleased that the 2017 Disparity Study has documented the disparity in

WSDOT contracts that do not have a DBE or WBE goal ndash further reinforcing that all women-owned

firms and minority owned firms face equity issues We are encouraged that the WSDOT has asked

FHWA to rescind the 2016 waiver

While WTSrsquo mission is specific to the advancement of women we are a race-neutral organization To

this end we are also deeply concerned about the underutilization of minority owned firms There is

no equity or ldquofair playing fieldrdquo without equity for all gender and races We remained concerned with

the methodology required by the Code of Federal Regulations and case law because of the

dependence on the availability of firms in the calculation An unintended consequence of removing

either gender or race from the goal is that many of these firms would go out of business the

availability decreases and the formula then results in a smaller DBE goal This consequence is

contrary to our mission

We look forward to our continued participation in WSDOTrsquos DBE advisory group we are anticipating

notice that the 2016 waiver has been rescinded and how we can work together to continue

advancing minority and women-owned firms in the transportation field

Sincerely

WTS Puget Sound Chapter

Stephanie Forman

President

C Roger Millar Secretary WSDOT

C Representative Adam Smith 9th Congressional District Washington co Christine Nhan

WTS Puget Sound Chapter

PO Box 3461

Bellevue Washington 98009

From Dave Gent - WAPATo Bayne JackieCc Tom GaetzSubject WAPA Public Comments - RE WSDOT FHWA Disadvantaged Business Enterprise Proposed GoalDate Friday December 15 2017 14119 PMAttachments 12152017 DBE Proposed Goal - WAPA Public Comments Letterpdf

Good afternoon Jackie Please find attached WAPArsquos ldquofor the public recordrdquo comments with respect to WSDOTrsquos proposedDBE Goals FHWA funded work I assume that the Master DBE Directory was not sent to you this week so as a result we were notable to review the directory before the close of the public comment period That fact is noted withinour comment letter Thank you for your efforts Have a good weekend

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Friday December 8 2017 1219 PMTo Dave Gent - WAPA ltdavegentasphaltwacomgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hello Dave WSDOT did not take possession of this directory as part of our review process We will provide youwith the records without submitting a formal request However we need to get them from theconsultant first I will hopefully have them to provide next week I will keep you updated on therequest Have a nice weekend Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal Opportunity

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

December 15 2017

Jackie Bayne Policy Manager WSDOT Office of Equal Opportunity Delivered via e-mail to BayneJwsdotwagov RE Public Comment (as requested) to Proposed Overall DBE Goal for the FHWA (2018 ndash 2020) Ms Bayne Thank you for your presentation via webinar on December 5 2017 outlining WSDOTrsquos evaluation process used to determine the proposed overall DBE goal for the FHWA Thank you also for the Colette Holt amp Associates (CHA) DBE Advisory Group presentation made on September 14 2017 Both presentations helped to distill the findings of the 2017 Disparity Study produced by CHA In response to Earl Keyrsquos initial informal request to comment on the proposed overall DBE goal made during the DBE Advisory Committee teleconference held on October 12th we provided a list of reasons that we believe justify a lower DBE goal than is now being proposed Our initial response to Mr Keyrsquos request did not serve to influence WSDOT and the current proposed goal remains at 190 The arguments provided on October 12th against the significant increase in the proposed DBE goal (versus the previous goal and recent historic DBE participation) are repeated and supplemented below and will serve as the Asphalt Pavement Associationrsquos (WAPArsquos) official public comments

In concert with WSDOT and the OWMBE WAPA and the construction firms that WAPA represents have demonstrated a commitment to the principals of equal opportunity for all ldquoready willing and ablerdquo firms for the entire history that our DBE program has been in place WAPA has continuously demonstrated its commitment to the goals of the DBE program and for increasing the representation of disadvantaged groups within our industry as both workers and owners of firms Please recognize that WAPArsquos oversight and critique of the DBE program has always attempted to balance the principals of fair and open competition with the practical aspects of the low bid compressed schedule high performance standards demanded within the WSDOT marketplace Our comments below are meant to enhance WSDOTrsquos and OWMBErsquos understanding of the market and to hopefully have WSDOT fully consider all of the dynamics that are at play when proposing its Triennial DBE goal for FHWA projects Current DBE Capacity vs Historically Robust Market In advocating for a realistic and defensible DBE goal it has always been WAPArsquos position that it is paramount that the realities of the marketplace and true certified DBE subcontracting capacity should be a primary standard While a ldquostretchrdquo goal may appear to be progressive on its face it comes with consequences for all of the parties involved in the WSDOT federal aid contracting arena To balance the dynamics of the WSDOT contracting system the DBE goal should be tempered with the realities of the market and with a true measure of the underlying effectiveness of the DBE support services available to contractors

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 2 of 6 The first point of fact that has not been given any apparent consideration by WSDOT in its evaluation of the current capacity of certified DBErsquos is that there is an historically robust workload scheduled to be performed in the 2017 through 2022 time-frame particularly in the Puget Sound ldquoEverett to Olympiardquo corridor By WSDOTrsquos own estimates (see Attachment A) public works construction project starts in the 2018 to 2022 time-frame in this region will exceed $333 billion (B) counting the work projected from just five public entities WSDOT will be taking a decidedly ldquoback seatrdquo role during this period to Sound Transit which will have construction project starts of $226B vs WSDOTrsquos projected volume of $67B WSDOTrsquos summary publication titled Washington State Department of Transportations Proposed Federal Highway Administration Triennium Disadvantaged Business Enterprise Goal Federal Fiscal Years 2018-2020 states correctly that ldquoIncluded among the types of evidence that must be considered are the current capacity of DBEs to perform work on WSDOTrsquos federally-assisted contracts as measured by the volume of work DBEs have performed in recent yearshelliprdquo (Step Two Adjustment discussion) With the Sound Transit program being over 300 larger than the total WSDOT program in this region a sober assessment of true certified DBE capacity in the next three years needs to be considered by WSDOT If the huge construction boom over the next five years does not prompt a Step Two Adjustment then it becomes obvious that the realities of the market are being ignored by WSDOT for DBE goal setting Put another way if the 2018 through 2022 level of contracting activity does not warrant a goal adjustment what will DBE Access Barriers Not Yet Addressed The CHA 2017 Disparity Study points out multiple recommendations in Section VII that impact DBE participation and access to the market Assessments relating to those impacts and the state of maturity in addressing the CHA recommendations should be considered when assessing the DBE goal Many of the CHA recommendation have not been adequately addressed at this point in time Some of the prime examples are listed below Increase Certification and Expertise ndash The Disparity Study as explained to us includes all minority- (MBE)

and women-owned (WBE) firms that could be readily identified that perform work within Washington State and that perform work within the NAICS code framework CHA developed to cover WSDOT project work During the various presentations relating to the Disparity Study WSDOT representatives said that outreach to currently non-certified MBE amp WBE firms has increased and that WSDOT aspires to bolster its list of certified firms in the future but this effort is just beginning and the success of the effort needs to be means tested against the broader population of MBE amp WBE firms included in the CHA base line evaluation As the Disparity Study uses a much broader population of MBE WBE contractors to arrive at its conclusions (both non-certified firms and firms too large for certification) it follows that the calculated DBE proposed goal is overstated to include capacity that does not currently exist within WSDOTrsquos certified DBE framework Unless OMWBE is experiencing sudden and unprecedented success in recruiting new MBEWBE firms the DBE goal should be adjusted downward to recognize that the ldquoready willing and ablerdquo contractors that WSDOT has certified is only a subset of the total MBEWBE contracting population used in the Disparity Study evaluation

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 3 of 6

Until the promised WSDOT outreach registration efforts result in a substantial increase in available certified DBE firms it is premature to count the entire population of minority- and women-owned contractors as available to participate in WSDOT contracting It is unreasonable for WSDOT to project availability capacity using the entire MBEWBE population when only its currently truncated list of certified firms is acceptable to count toward the DBE goal

A corollary to the Increase Certification and Expertise discussion above is that the calculation of the Base Figure evidently includes the broadest practical population of MBE and WBE firms identifiable (without a review of the CHA Master DBE Directory which has not been supplied prior to the close of the public comment period the scope of the directory cannot be ascertained) If this directory includes a large population of MBEWBE firms that are not certified or are too large to be certified then the Base Figure calculation should be adjusted to reflect that certified DBE firms are a fraction of the total MBEWBE firms used to arrive at the 19 suggested DBE goal With respect to the CHA Master Directory it is our understanding the WSDOT was not given the directory as part of its evaluation of the Disparity Study and it follows that it did not evaluate the proposed DBE goal in the context of the CHA Master DBE Directory In our opinion an informed decision on adjusting the CHA baseline goal calculation can only be done after an extensive evaluation of the CHA Master DBE Directory If this has not been done WSDOT has not exercised due diligence in evaluating the context and underpinnings of the CHA Disparity Study and a certified DBE Triennium goal proposal to the FHWA is premature Increase Contract ldquoUnbundlingrdquo ndash If this proposed strategy (suggested by the CHA Study) is undertaken

certified DBE Subcontractors currently available will be engaged as Prime Contractors and the value of their prime contracts will bolster the overall percentage of certified DBE contracting but a systematic effort and strategy to ldquounbundlerdquo has not been articulated by WSDOT The key question of how this effort can be accomplished without increased cost to the taxpayers and increased inconvenience for the traveling public As noted in the CHA study (page 129 final paragraph) ldquoUnbundling must be conducted however within the constraints of the need to ensure efficiency and limit cost to the taxpayersrdquo As of this writing no overarching strategy for further unbundling with proper accountability has been articulated by WSDOT to the DBE Advisory Group

Review Insurance and Experience Requirements ndash Impediments to certified DBE participation due to

necessary insurance and experience standards cannot be solved by the prime contracting community Unless and until WSDOT puts together programs to address the burden of the substantial risks shouldered by Prime Contractors on WSDOT contracts barriers for streamlined utilization of certified DBE firms will continue to exist These market driven barriers will continue to dampen the availability of certified DBE Subcontractors that are able to perform within WSDOTrsquos strict criteria without unduly transferring risk to the Prime Contractor

Better Partnering to Overcome DBE Failures to Perform ndash Prime Contractors are held fully responsible to maintain the project schedule and are subject to project liquidated damages even when they may be struggling to deal with Subcontractor performance issues It is well-established that replacing a certified ldquocondition of awardrdquo (COA) DBE Subcontractor is very onerous and likely very costly to the Prime Contractor Unfortunately the imposition of strict and often counter-productive commercially useful function (CUF) rules often compound this issue as Prime Contractors cannot help COA DBE Subcontractors work through capacity expertise or time-related issues that impact timely performance

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 4 of 6

WSDOT needs to be a much better partner in the process of dealing with under-performing or non-performing certified DBE Subcontractors The current standard operational procedure places all of the exposure for non-performance onto the Prime WSDOT does not have an equitable system to account for non-performing or under-performing certified DBE Subcontractors hired as a condition of award (COA)

Performance Information and Training ndash Commercially useful function rules (CUF) and the lack of clear benchmark definitions for good faith effort (GFE) standards remain barriers for improving accountability within the DBE system and in turn lead to distorted DBE participation rates These items remain amorphous due to lack of training or lack of historic information Chronic uncertainty exists regarding both of these items Until WSDOT changes and improves its approach to provide transparency and certainty for both the prime bidding amp subcontracting parties true certified DBE capacity will continue to be masked and the resultant higher subcontracting costs associated with a distorted marketplace will continue to be hidden

WAPA respectfully suggests that simply adding an ldquoEstimated DBE Subcontract Premiumrdquo line to the current DBE bid forms would help to establish benchmarks that could begin to be used to ldquomeans testrdquo good faith efforts If this information had been gathered over the last 20 years of the DBE program meaningful GFE standards could have been developed and could be in place today

An in-depth review of CUF standards would also provide clarity For instance it is unclear why force account items performed by certified DBEs are currently counted at only 50 of the value of the work How was this benchmark established Has it been reviewed since imposed Did it ldquosolverdquo whatever inequity WSDOT was trying to address Better clarity may lead to more expanded opportunities for certified DBE Subcontractors

Enhanced Supportive Services and Business Development Programs ndash Unless and until stronger programs of these types are shown to be effective in boosting certified DBE business development increased DBE participation due to stronger business acumen should not be relied upon when setting the new DBE goal

Does OMWBE have a reasonable expectation that future plans for enhanced and expanded programs will be more successful than those employed in the past Assuming that certified DBE Subcontractors will be better prepared to deal with the WSDOT contracting environment than in the past should not be relied upon to boost DBE participation goals Especially troubling were the multiple references within the CHA report highlighting that DBEs believe that the staff at OMWBE lack a deep knowledge about the highway construction industry (eg Study page 129 2nd paragraph) Does OMWBE have a path forward that will address this issue and thus improve supportive services impacts

Develop a Bonding and Financing Program for SBEs ndash This is completely outside of the prime contracting

communityrsquos scope of influence WSDOT must find a way to institute changes that both protect the taxpayer and help increase certified DBE bonding capacity and access to financing ndash very large hurtles To assume that these hurtles can effectively be overcome within the 2018 ndash 2020 time frame when they have been chromic issues for the past 20 plus years of DBE program development is not rational

A helpful innovation would be for WSDOT to underwrite performance and payment bonds for certified DBE firms or to create promote a system that helps certified DBE firms obtain private bonding Bridging the gap to address capital access and performance risks (bonding) must be championed by WSDOT

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 5 of 6

Base Figure Adjustment to Address Available Subcontract Volume and DBE Prime Contracts It is a fact that mid- to large-sized MBEWBE firms that compete both as Prime Contractors and as Subcontractors are not eligible to be OMWBE certified DBEs Further the current amount of contract unbundling for greater DBE access to WSDOT prime contracting (see below) accounts for a very low dollar volume of prime contracts performed by certified DBEs Finally by specification (WSDOT standard specification 1-081) Prime Contractors are obligated to perform 30 of the total volume of the work (less specialty work) or stated another way a maximum of 70 of the dollar volume on WSDOT projects is typically available to award to subcontractors These market dynamics are NOT addressed in the Disparity Study A responsible DBE goal made absent of these facts should not be implemented A reasonable adjustment to the proposed 19 DBE goal is presented below

bull The percent of WSDOT prime contracts awarded to certified DBE firms is likely less than 5 by total WSDOT

contract volume Assuming this approximation is valid (likely very conservative) then the amount of WSDOT contract work available to certified DBE firms via subcontracting should be adjusted to account for the factors outlined above The Base Figure (19) should be adjusted to recognize that a 70 maximum subcontractor participation is available (in the numerator) and to account for the assumed 5 certified DBE prime contracts in the denominator Reasonable Base Figure Adjustment 19 (proposed) x 70 subcontracts available divide 95 of Non-Certified DBEs as Prime Contract Volume = 190 x 0737 = 140 adjusted goal This is an adjustment based on the practical dynamics of the WSDOT contracting system and it represents a more realistic look at the true subcontract volume that is available for Prime Contractors to award to certified DBE firms

Conclusions

Until the items listed above are addressed and in place it is not reasonable to believe that DBE goals can be increased by nearly 163 (from 117 to 190) When the projected robust public works contracting market is appropriately considered the true availability of certified DBE Subcontractors for WSDOT contracts will be truncated due to demand across all public works sectors With multiple strong public works programs competing for a limited population of certified DBEs the ability to meet increased WSDOT DBE goals will be severely challenged Without very clear concise and transparent good faith effort rules the ability to address DBE goals that greatly overestimate true near term certified DBE capacity will result in non-attainment bid day chaos failures to perform andor rapidly increased pricing

The clear conclusion is that at this point in time under the current circumstances without effectively instituted new programs rules procedures that could enhance the certified DBE programrsquos overall effectiveness we believe that the DBE goal should remain at or near 12 As OMWBE documents and demonstrates its future successes in improving access and eliminating capacity barriers only then should the DBE goal be re-evaluated and increased

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 6 of 6

In closing please remember that it is rare that the contracting community is asked our opinion with respect to the WSDOTrsquos DBE policies and so this letter is somewhat a vehicle to highlight collective concerns It is our belief that the majority of the Prime Contractors in Washington state support the objective of creating a level playing field for ready willing and able DBEs

If the level playing field is not yet possible in the absence of the DBE program then the key is to set realistic goals that recognize reflect and address the hard realities and market dynamics imposed by WSDOTrsquos bedrock environment of awarding contracts to the lowest cost responsible and responsive Contractor

Respectfully submitted Washington Asphalt Pavement Association

David Gent Tom Gaetz Executive Director Senior Advisor

Attachment A ndash WSDOT Central Puget Sound Public Works Contracting Projection 2018 - 2022

Con

stru

ctio

n Pr

ojec

t Sta

rts

2018

-202

2S

ound

Tra

nsit

$22

6 B

SD

OT

$08

B

Tran

sit

amp O

ther

s$1

7 B

WS

DO

T$6

7 B

Por

t of

Sea

ttle

$15

B

TOTA

L$3

33

B

Source N

ov 1

9 2

017

pres

enta

tion

to W

APA

Ann

ual M

eetin

g

Attachment A

Work (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Dave Gent - WAPA [mailtodavegentasphaltwacom] Sent Thursday December 7 2017 144 PMTo Bayne Jackie ltBayneJwsdotwagovgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hi again Jackie Irsquom fine thanks and hope you are the same Interesting The Master DBE Directory is the basis for and integral to the conclusions of the DisparityStudy Is it not then part of the information needed to fully review and comment on the DisparityStudy Was it not provided by CHA to WSDOT for review We are trying to fully understand thestudy and if this directory was part of the study why would it need to be obtained by a publicrecords disclosure It should be in the public domain and not restricted from ease of access If you are sure that a public records request is needed Irsquoll start that process but we will need tonote that point of fact when we submit our public comments If you are able to reconsider please let me know Respectfully

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Thursday December 7 2017 126 PMTo Dave Gent - WAPA ltdavegentasphaltwacomgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hello Dave I hope you are doing well

That information would likely be obtained through a public disclosure request Best Regards Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Dave Gent - WAPA [mailtodavegentasphaltwacom] Sent Thursday December 7 2017 113 PMTo Bayne Jackie ltBayneJwsdotwagovgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Jackie Can you please provide an electronic file or provide a weblink for the Master DBE Directory thatColette Holt amp Associates developed for the WSDOT Disparity Study 2017 (first referred to on Page 8of the Disparity Study) I did not see a link to this Master DBE Directory within the study Thanks

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Friday October 27 2017 1118 AMTo Kenyon Wendy ltKenyonWwsdotwagovgt Adams E W ltewadamssystemsclcomgtAdekoyaAndrew ltandrewadekoyabccomgt AlyssaBalllegwagov Anindita Mitraltamitracrea-affiliatescomgt APRISeattlehotmailcom Armstrong CharlotteltCharlieAatgwagovgt Ato Apiafi Architects PLLC ltatoaatoapiaficomgt benzfanwaorgBerntsen Teresa (OMWBE) ltTeresaBomwbewagovgt Billingsley Andrealtbillinawsdotwagovgt Bramlet Erica ltEricaBramletlegwagovgt Brooks Julius

ltBrooksJwsdotwagovgt Brown Jason ltjbrownldccorpcomgt bwallacenwlaborersorgCamden Allison ltCamdenAwsdotwagovgt carlllivingstongmailcom Cerda OscarltCerdaOwsdotwagovgt Christopher Chris ltChristCwsdotwagovgt ckerneycaawagovdanplatinumbusinessgroupcom davegentasphaltwacom David BalltDavidsignsnowmillcreekcomgt Davis Khalia ltDavisKhwsdotwagovgt Davis RaShelle (GOVltrashelledavisgovwagovgt Dayton Jo ltDaytonJwsdotwagovgt ddhondtagcwacomDebbieDriverlegwagov Dennis ltdennisahlkiewitcomgt dmcleodnwlaborersorgdrart6651gmailcom Duncan Enid lthigradeincgmailcomgt EltonltEltonwashingtonstatetruckingcomgt eprincecaawagov flemosldccorpcomfmartineznwmtnmsdcorg geoffshookatkncom glovelady ltgloveladyexcelglovescomgtGrabow Katie ltkgrabowsystemsclcomgt Guilfucci Jackie ltJackieGuilfucciskanskacomgt HealyLinda ltHealyLwsdotwagovgt Higginbotham Breanne ltHigginBwsdotwagovgt HirscheyClaudia ltclaudiahirscheycomcastnetgt Holt Colette ltcoletteholtmwbelawcomgt Huff JohnltHuffJwsdotwagovgt Iniguezchawagov JacksonMaynardlegwagov Jimmy Matta(jmattaalcantarassoccom) ltjmattaalcantarassoccomgt kellywickergovwagov Key EarlltKeyEwsdotwagovgt Kirk Jon ltjkirkwhhnfscomgt Kris Purrier ltkpurrierhwageocomgtleewabuildingtradesorg lesliejonessoundtransitorg Liz Evans ltlevansagcwacomgt LopezErin lterinlopezdeswagovgt Martha Cerna ltMarthaPSLCCORGgt Martin-Arnold EdwinaltMartinEwsdotwagovgt Mary Lerdahl ltmarydbeelectricinccomgt McCarty Hannahlthannahmccartylegwagovgt Melissa L Boyles ltmelissaboylesmwbelawcomgt Metcalf KeithltMetcalKwsdotwagovgt michaelicapaawagov Michelle ltMichelleTTCC26netgt MillarRoger ltMillarRwsdotwagovgt Nakamura Jason ltjasonnakamura1-alliancecomgtNavarroLportseattleorg olliepmt-solutionscom pastorbanksesbctacomacom PatrickHughes ltphugheshughesgroupbizgt Petersen Jodi (FHWA) ltJodiPetersendotgovgtrabbottliunaorg rcarmsteadgmailcom ricemportseattleorg Riley D ltdrileylydigcomgtSeling ltSelingjpfranciscomgt sherryharrisergosynchcom Stell MellodyltStellMwsdotwagovgt terigobintulaliptribes-nsngov timwilliamfactorycom tinaterra-tdicom tkellyldccorpcom tomgaetzmsncom vcollinsacec-waorgverlenejazzmsncom Wang Albert ltWangAatgwagovgt Waugh GregltGregWMaxKuneyComgt Yates Henry ltYatesHWSDOTWAGOVgtCc Tom Gaetz lttomgaetzmsncomgt Dave Gent - WAPA ltdavegentasphaltwacomgt VanCollins ltvcollinsacec-waorggt Daniel Seydel II ltdanplatinumbusinessgroupcomgt MaynardJackson ltJacksonMaynardlegwagovgt Carl Livingston ltcarlllivingstongmailcomgt DonMcLeod ltdmcleodnwlaborersorggt JIMMY MATTA ltjimmymattamsncomgt Prince Ed(CAAA) lteprincecaawagovgt David DHondt ltddhondtagcwacomgt Irene Reyesltgloveladyexcelsupplycompanycomgt McDaniel Craig ltMcDaniCwsdotwagovgtsherryharrisergosynchcomSubject WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Good morning On Monday October 30th WSDOT will be releasing the proposed overall Federal HighwayAdministration Disadvantaged Business Enterprise goal attached for public comment throughDecember 15 2017 This overall DBE goal is based upon the recently completely DBE ProgramDisparity Study WSDOT is proposing a 19 percent overall DBE participation goal on Federal Highway

Administration-funded projects for federal fiscal years 2018 through 2020 DBE goals fortransportation projects that receive federal funds represent a percentage of the value of work inwhich minority- and women-owned businesses should participate Once finalized and submitted toFHWA early next year the goal will be effective through Sept 30 2020

The purpose of the DBE program is to create a level playing field for firms owned and operated bydisadvantaged individuals wanting to participate in federally assisted highway transit and aviationprograms The attached overall DBE goal is for FHWA funded projects WSDOT will be updating theFTA and FAA overall DBE goals in the near future

If you have any questions please contact Earl Key Director of the Office of Equal Opportunity at3607057091 or KeyEwsdotwagov Thank you Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

  • Proof-Of-Publicationpdf
    • Mediapdf
      • AGC
      • Daily Journal
      • Daily Medium
      • DBEGood
      • OMWBE
      • Seattle Medium
      • Tabor 100
      • The Chronicle
      • Tukwila
        • King County
          • Public-Comments-20180111pdf
            • 19 DBE Requirement(1)
            • AGC Comments on Proposed 10 Goad
            • Backstrom Curb amp Sidewalk
            • comments on WSDOT proposed DBE goal
            • Cowlitz County Public Works
            • DBE Contracting goals
            • DBE Goal
            • DBE Program Disparity Study
            • Disparity Study Comments from City of Spokane
            • FW_ WSDOT News - WSDOT seeks comments on propos
            • Proposed DBE Goals
            • RE_ DBE Contracting Goal Comments
            • Re_ DBE Goal Comments
            • Re_ Seydel Dan - WSDOT Disparity Study Present
            • Support for WSDOTs proposed DBE goal
            • Why we need mandatory goals
            • WSDOT DBE Goal - Comment in support
            • WSDOT Proposes DBE goal of 19
            • WSDOT propsed DBE Goals
            • WTS - Disparity Study Comment Letter

December 15 2017

Jackie Bayne Policy and Reporting Manager

Office of Equal Opportunity

Washington State Department of Transportation

PO Box 47314

Olympia WA 98504-7314

Dear Ms Bayne

On behalf of the Puget Sound Chapter of Womenrsquos Transportation Seminar (WTS) we would

like to thank the Washington State Department of Transportation for presenting to our

organization the DBE Disparity Study results We very much appreciated the presentation by Earl

Key Director of WSDOTrsquos Office of Equal Opportunity Teresa Berntsen (Director Office of Minority

and Womens Business Enterprises) as well as Leslie Jones (Director Sound Transit Office of Small

Business Development and Labor Compliance)

Following a review of the WSDOT Disparity Study and as a result of consultation with WTS

International we would like to provide WSDOT with our comments for your consideration

As you know WTS is an organization focused exclusively on attracting retaining and advancing

women in transportation By the year 2018 there will be thousands of vacancies in the

transportation industry for qualified professionals and while women account for more than half of

the worldrsquos workforce they are a very small minority in transportation disciplines

We are pleased that the outcome of the 2017 Disparity Study that recognizes the on-going barriers

for DBEs including women-owned businesses in transportation The WSDOT recommended DBE

Goal of 190 is a small and important increase that can further achieve equity in WSDOTFHWA

contracting We are also pleased that the 2017 Disparity Study has documented the disparity in

WSDOT contracts that do not have a DBE or WBE goal ndash further reinforcing that all women-owned

firms and minority owned firms face equity issues We are encouraged that the WSDOT has asked

FHWA to rescind the 2016 waiver

While WTSrsquo mission is specific to the advancement of women we are a race-neutral organization To

this end we are also deeply concerned about the underutilization of minority owned firms There is

no equity or ldquofair playing fieldrdquo without equity for all gender and races We remained concerned with

the methodology required by the Code of Federal Regulations and case law because of the

dependence on the availability of firms in the calculation An unintended consequence of removing

either gender or race from the goal is that many of these firms would go out of business the

availability decreases and the formula then results in a smaller DBE goal This consequence is

contrary to our mission

We look forward to our continued participation in WSDOTrsquos DBE advisory group we are anticipating

notice that the 2016 waiver has been rescinded and how we can work together to continue

advancing minority and women-owned firms in the transportation field

Sincerely

WTS Puget Sound Chapter

Stephanie Forman

President

C Roger Millar Secretary WSDOT

C Representative Adam Smith 9th Congressional District Washington co Christine Nhan

WTS Puget Sound Chapter

PO Box 3461

Bellevue Washington 98009

From Dave Gent - WAPATo Bayne JackieCc Tom GaetzSubject WAPA Public Comments - RE WSDOT FHWA Disadvantaged Business Enterprise Proposed GoalDate Friday December 15 2017 14119 PMAttachments 12152017 DBE Proposed Goal - WAPA Public Comments Letterpdf

Good afternoon Jackie Please find attached WAPArsquos ldquofor the public recordrdquo comments with respect to WSDOTrsquos proposedDBE Goals FHWA funded work I assume that the Master DBE Directory was not sent to you this week so as a result we were notable to review the directory before the close of the public comment period That fact is noted withinour comment letter Thank you for your efforts Have a good weekend

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Friday December 8 2017 1219 PMTo Dave Gent - WAPA ltdavegentasphaltwacomgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hello Dave WSDOT did not take possession of this directory as part of our review process We will provide youwith the records without submitting a formal request However we need to get them from theconsultant first I will hopefully have them to provide next week I will keep you updated on therequest Have a nice weekend Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal Opportunity

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

December 15 2017

Jackie Bayne Policy Manager WSDOT Office of Equal Opportunity Delivered via e-mail to BayneJwsdotwagov RE Public Comment (as requested) to Proposed Overall DBE Goal for the FHWA (2018 ndash 2020) Ms Bayne Thank you for your presentation via webinar on December 5 2017 outlining WSDOTrsquos evaluation process used to determine the proposed overall DBE goal for the FHWA Thank you also for the Colette Holt amp Associates (CHA) DBE Advisory Group presentation made on September 14 2017 Both presentations helped to distill the findings of the 2017 Disparity Study produced by CHA In response to Earl Keyrsquos initial informal request to comment on the proposed overall DBE goal made during the DBE Advisory Committee teleconference held on October 12th we provided a list of reasons that we believe justify a lower DBE goal than is now being proposed Our initial response to Mr Keyrsquos request did not serve to influence WSDOT and the current proposed goal remains at 190 The arguments provided on October 12th against the significant increase in the proposed DBE goal (versus the previous goal and recent historic DBE participation) are repeated and supplemented below and will serve as the Asphalt Pavement Associationrsquos (WAPArsquos) official public comments

In concert with WSDOT and the OWMBE WAPA and the construction firms that WAPA represents have demonstrated a commitment to the principals of equal opportunity for all ldquoready willing and ablerdquo firms for the entire history that our DBE program has been in place WAPA has continuously demonstrated its commitment to the goals of the DBE program and for increasing the representation of disadvantaged groups within our industry as both workers and owners of firms Please recognize that WAPArsquos oversight and critique of the DBE program has always attempted to balance the principals of fair and open competition with the practical aspects of the low bid compressed schedule high performance standards demanded within the WSDOT marketplace Our comments below are meant to enhance WSDOTrsquos and OWMBErsquos understanding of the market and to hopefully have WSDOT fully consider all of the dynamics that are at play when proposing its Triennial DBE goal for FHWA projects Current DBE Capacity vs Historically Robust Market In advocating for a realistic and defensible DBE goal it has always been WAPArsquos position that it is paramount that the realities of the marketplace and true certified DBE subcontracting capacity should be a primary standard While a ldquostretchrdquo goal may appear to be progressive on its face it comes with consequences for all of the parties involved in the WSDOT federal aid contracting arena To balance the dynamics of the WSDOT contracting system the DBE goal should be tempered with the realities of the market and with a true measure of the underlying effectiveness of the DBE support services available to contractors

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 2 of 6 The first point of fact that has not been given any apparent consideration by WSDOT in its evaluation of the current capacity of certified DBErsquos is that there is an historically robust workload scheduled to be performed in the 2017 through 2022 time-frame particularly in the Puget Sound ldquoEverett to Olympiardquo corridor By WSDOTrsquos own estimates (see Attachment A) public works construction project starts in the 2018 to 2022 time-frame in this region will exceed $333 billion (B) counting the work projected from just five public entities WSDOT will be taking a decidedly ldquoback seatrdquo role during this period to Sound Transit which will have construction project starts of $226B vs WSDOTrsquos projected volume of $67B WSDOTrsquos summary publication titled Washington State Department of Transportations Proposed Federal Highway Administration Triennium Disadvantaged Business Enterprise Goal Federal Fiscal Years 2018-2020 states correctly that ldquoIncluded among the types of evidence that must be considered are the current capacity of DBEs to perform work on WSDOTrsquos federally-assisted contracts as measured by the volume of work DBEs have performed in recent yearshelliprdquo (Step Two Adjustment discussion) With the Sound Transit program being over 300 larger than the total WSDOT program in this region a sober assessment of true certified DBE capacity in the next three years needs to be considered by WSDOT If the huge construction boom over the next five years does not prompt a Step Two Adjustment then it becomes obvious that the realities of the market are being ignored by WSDOT for DBE goal setting Put another way if the 2018 through 2022 level of contracting activity does not warrant a goal adjustment what will DBE Access Barriers Not Yet Addressed The CHA 2017 Disparity Study points out multiple recommendations in Section VII that impact DBE participation and access to the market Assessments relating to those impacts and the state of maturity in addressing the CHA recommendations should be considered when assessing the DBE goal Many of the CHA recommendation have not been adequately addressed at this point in time Some of the prime examples are listed below Increase Certification and Expertise ndash The Disparity Study as explained to us includes all minority- (MBE)

and women-owned (WBE) firms that could be readily identified that perform work within Washington State and that perform work within the NAICS code framework CHA developed to cover WSDOT project work During the various presentations relating to the Disparity Study WSDOT representatives said that outreach to currently non-certified MBE amp WBE firms has increased and that WSDOT aspires to bolster its list of certified firms in the future but this effort is just beginning and the success of the effort needs to be means tested against the broader population of MBE amp WBE firms included in the CHA base line evaluation As the Disparity Study uses a much broader population of MBE WBE contractors to arrive at its conclusions (both non-certified firms and firms too large for certification) it follows that the calculated DBE proposed goal is overstated to include capacity that does not currently exist within WSDOTrsquos certified DBE framework Unless OMWBE is experiencing sudden and unprecedented success in recruiting new MBEWBE firms the DBE goal should be adjusted downward to recognize that the ldquoready willing and ablerdquo contractors that WSDOT has certified is only a subset of the total MBEWBE contracting population used in the Disparity Study evaluation

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 3 of 6

Until the promised WSDOT outreach registration efforts result in a substantial increase in available certified DBE firms it is premature to count the entire population of minority- and women-owned contractors as available to participate in WSDOT contracting It is unreasonable for WSDOT to project availability capacity using the entire MBEWBE population when only its currently truncated list of certified firms is acceptable to count toward the DBE goal

A corollary to the Increase Certification and Expertise discussion above is that the calculation of the Base Figure evidently includes the broadest practical population of MBE and WBE firms identifiable (without a review of the CHA Master DBE Directory which has not been supplied prior to the close of the public comment period the scope of the directory cannot be ascertained) If this directory includes a large population of MBEWBE firms that are not certified or are too large to be certified then the Base Figure calculation should be adjusted to reflect that certified DBE firms are a fraction of the total MBEWBE firms used to arrive at the 19 suggested DBE goal With respect to the CHA Master Directory it is our understanding the WSDOT was not given the directory as part of its evaluation of the Disparity Study and it follows that it did not evaluate the proposed DBE goal in the context of the CHA Master DBE Directory In our opinion an informed decision on adjusting the CHA baseline goal calculation can only be done after an extensive evaluation of the CHA Master DBE Directory If this has not been done WSDOT has not exercised due diligence in evaluating the context and underpinnings of the CHA Disparity Study and a certified DBE Triennium goal proposal to the FHWA is premature Increase Contract ldquoUnbundlingrdquo ndash If this proposed strategy (suggested by the CHA Study) is undertaken

certified DBE Subcontractors currently available will be engaged as Prime Contractors and the value of their prime contracts will bolster the overall percentage of certified DBE contracting but a systematic effort and strategy to ldquounbundlerdquo has not been articulated by WSDOT The key question of how this effort can be accomplished without increased cost to the taxpayers and increased inconvenience for the traveling public As noted in the CHA study (page 129 final paragraph) ldquoUnbundling must be conducted however within the constraints of the need to ensure efficiency and limit cost to the taxpayersrdquo As of this writing no overarching strategy for further unbundling with proper accountability has been articulated by WSDOT to the DBE Advisory Group

Review Insurance and Experience Requirements ndash Impediments to certified DBE participation due to

necessary insurance and experience standards cannot be solved by the prime contracting community Unless and until WSDOT puts together programs to address the burden of the substantial risks shouldered by Prime Contractors on WSDOT contracts barriers for streamlined utilization of certified DBE firms will continue to exist These market driven barriers will continue to dampen the availability of certified DBE Subcontractors that are able to perform within WSDOTrsquos strict criteria without unduly transferring risk to the Prime Contractor

Better Partnering to Overcome DBE Failures to Perform ndash Prime Contractors are held fully responsible to maintain the project schedule and are subject to project liquidated damages even when they may be struggling to deal with Subcontractor performance issues It is well-established that replacing a certified ldquocondition of awardrdquo (COA) DBE Subcontractor is very onerous and likely very costly to the Prime Contractor Unfortunately the imposition of strict and often counter-productive commercially useful function (CUF) rules often compound this issue as Prime Contractors cannot help COA DBE Subcontractors work through capacity expertise or time-related issues that impact timely performance

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 4 of 6

WSDOT needs to be a much better partner in the process of dealing with under-performing or non-performing certified DBE Subcontractors The current standard operational procedure places all of the exposure for non-performance onto the Prime WSDOT does not have an equitable system to account for non-performing or under-performing certified DBE Subcontractors hired as a condition of award (COA)

Performance Information and Training ndash Commercially useful function rules (CUF) and the lack of clear benchmark definitions for good faith effort (GFE) standards remain barriers for improving accountability within the DBE system and in turn lead to distorted DBE participation rates These items remain amorphous due to lack of training or lack of historic information Chronic uncertainty exists regarding both of these items Until WSDOT changes and improves its approach to provide transparency and certainty for both the prime bidding amp subcontracting parties true certified DBE capacity will continue to be masked and the resultant higher subcontracting costs associated with a distorted marketplace will continue to be hidden

WAPA respectfully suggests that simply adding an ldquoEstimated DBE Subcontract Premiumrdquo line to the current DBE bid forms would help to establish benchmarks that could begin to be used to ldquomeans testrdquo good faith efforts If this information had been gathered over the last 20 years of the DBE program meaningful GFE standards could have been developed and could be in place today

An in-depth review of CUF standards would also provide clarity For instance it is unclear why force account items performed by certified DBEs are currently counted at only 50 of the value of the work How was this benchmark established Has it been reviewed since imposed Did it ldquosolverdquo whatever inequity WSDOT was trying to address Better clarity may lead to more expanded opportunities for certified DBE Subcontractors

Enhanced Supportive Services and Business Development Programs ndash Unless and until stronger programs of these types are shown to be effective in boosting certified DBE business development increased DBE participation due to stronger business acumen should not be relied upon when setting the new DBE goal

Does OMWBE have a reasonable expectation that future plans for enhanced and expanded programs will be more successful than those employed in the past Assuming that certified DBE Subcontractors will be better prepared to deal with the WSDOT contracting environment than in the past should not be relied upon to boost DBE participation goals Especially troubling were the multiple references within the CHA report highlighting that DBEs believe that the staff at OMWBE lack a deep knowledge about the highway construction industry (eg Study page 129 2nd paragraph) Does OMWBE have a path forward that will address this issue and thus improve supportive services impacts

Develop a Bonding and Financing Program for SBEs ndash This is completely outside of the prime contracting

communityrsquos scope of influence WSDOT must find a way to institute changes that both protect the taxpayer and help increase certified DBE bonding capacity and access to financing ndash very large hurtles To assume that these hurtles can effectively be overcome within the 2018 ndash 2020 time frame when they have been chromic issues for the past 20 plus years of DBE program development is not rational

A helpful innovation would be for WSDOT to underwrite performance and payment bonds for certified DBE firms or to create promote a system that helps certified DBE firms obtain private bonding Bridging the gap to address capital access and performance risks (bonding) must be championed by WSDOT

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 5 of 6

Base Figure Adjustment to Address Available Subcontract Volume and DBE Prime Contracts It is a fact that mid- to large-sized MBEWBE firms that compete both as Prime Contractors and as Subcontractors are not eligible to be OMWBE certified DBEs Further the current amount of contract unbundling for greater DBE access to WSDOT prime contracting (see below) accounts for a very low dollar volume of prime contracts performed by certified DBEs Finally by specification (WSDOT standard specification 1-081) Prime Contractors are obligated to perform 30 of the total volume of the work (less specialty work) or stated another way a maximum of 70 of the dollar volume on WSDOT projects is typically available to award to subcontractors These market dynamics are NOT addressed in the Disparity Study A responsible DBE goal made absent of these facts should not be implemented A reasonable adjustment to the proposed 19 DBE goal is presented below

bull The percent of WSDOT prime contracts awarded to certified DBE firms is likely less than 5 by total WSDOT

contract volume Assuming this approximation is valid (likely very conservative) then the amount of WSDOT contract work available to certified DBE firms via subcontracting should be adjusted to account for the factors outlined above The Base Figure (19) should be adjusted to recognize that a 70 maximum subcontractor participation is available (in the numerator) and to account for the assumed 5 certified DBE prime contracts in the denominator Reasonable Base Figure Adjustment 19 (proposed) x 70 subcontracts available divide 95 of Non-Certified DBEs as Prime Contract Volume = 190 x 0737 = 140 adjusted goal This is an adjustment based on the practical dynamics of the WSDOT contracting system and it represents a more realistic look at the true subcontract volume that is available for Prime Contractors to award to certified DBE firms

Conclusions

Until the items listed above are addressed and in place it is not reasonable to believe that DBE goals can be increased by nearly 163 (from 117 to 190) When the projected robust public works contracting market is appropriately considered the true availability of certified DBE Subcontractors for WSDOT contracts will be truncated due to demand across all public works sectors With multiple strong public works programs competing for a limited population of certified DBEs the ability to meet increased WSDOT DBE goals will be severely challenged Without very clear concise and transparent good faith effort rules the ability to address DBE goals that greatly overestimate true near term certified DBE capacity will result in non-attainment bid day chaos failures to perform andor rapidly increased pricing

The clear conclusion is that at this point in time under the current circumstances without effectively instituted new programs rules procedures that could enhance the certified DBE programrsquos overall effectiveness we believe that the DBE goal should remain at or near 12 As OMWBE documents and demonstrates its future successes in improving access and eliminating capacity barriers only then should the DBE goal be re-evaluated and increased

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 6 of 6

In closing please remember that it is rare that the contracting community is asked our opinion with respect to the WSDOTrsquos DBE policies and so this letter is somewhat a vehicle to highlight collective concerns It is our belief that the majority of the Prime Contractors in Washington state support the objective of creating a level playing field for ready willing and able DBEs

If the level playing field is not yet possible in the absence of the DBE program then the key is to set realistic goals that recognize reflect and address the hard realities and market dynamics imposed by WSDOTrsquos bedrock environment of awarding contracts to the lowest cost responsible and responsive Contractor

Respectfully submitted Washington Asphalt Pavement Association

David Gent Tom Gaetz Executive Director Senior Advisor

Attachment A ndash WSDOT Central Puget Sound Public Works Contracting Projection 2018 - 2022

Con

stru

ctio

n Pr

ojec

t Sta

rts

2018

-202

2S

ound

Tra

nsit

$22

6 B

SD

OT

$08

B

Tran

sit

amp O

ther

s$1

7 B

WS

DO

T$6

7 B

Por

t of

Sea

ttle

$15

B

TOTA

L$3

33

B

Source N

ov 1

9 2

017

pres

enta

tion

to W

APA

Ann

ual M

eetin

g

Attachment A

Work (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Dave Gent - WAPA [mailtodavegentasphaltwacom] Sent Thursday December 7 2017 144 PMTo Bayne Jackie ltBayneJwsdotwagovgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hi again Jackie Irsquom fine thanks and hope you are the same Interesting The Master DBE Directory is the basis for and integral to the conclusions of the DisparityStudy Is it not then part of the information needed to fully review and comment on the DisparityStudy Was it not provided by CHA to WSDOT for review We are trying to fully understand thestudy and if this directory was part of the study why would it need to be obtained by a publicrecords disclosure It should be in the public domain and not restricted from ease of access If you are sure that a public records request is needed Irsquoll start that process but we will need tonote that point of fact when we submit our public comments If you are able to reconsider please let me know Respectfully

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Thursday December 7 2017 126 PMTo Dave Gent - WAPA ltdavegentasphaltwacomgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hello Dave I hope you are doing well

That information would likely be obtained through a public disclosure request Best Regards Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Dave Gent - WAPA [mailtodavegentasphaltwacom] Sent Thursday December 7 2017 113 PMTo Bayne Jackie ltBayneJwsdotwagovgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Jackie Can you please provide an electronic file or provide a weblink for the Master DBE Directory thatColette Holt amp Associates developed for the WSDOT Disparity Study 2017 (first referred to on Page 8of the Disparity Study) I did not see a link to this Master DBE Directory within the study Thanks

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Friday October 27 2017 1118 AMTo Kenyon Wendy ltKenyonWwsdotwagovgt Adams E W ltewadamssystemsclcomgtAdekoyaAndrew ltandrewadekoyabccomgt AlyssaBalllegwagov Anindita Mitraltamitracrea-affiliatescomgt APRISeattlehotmailcom Armstrong CharlotteltCharlieAatgwagovgt Ato Apiafi Architects PLLC ltatoaatoapiaficomgt benzfanwaorgBerntsen Teresa (OMWBE) ltTeresaBomwbewagovgt Billingsley Andrealtbillinawsdotwagovgt Bramlet Erica ltEricaBramletlegwagovgt Brooks Julius

ltBrooksJwsdotwagovgt Brown Jason ltjbrownldccorpcomgt bwallacenwlaborersorgCamden Allison ltCamdenAwsdotwagovgt carlllivingstongmailcom Cerda OscarltCerdaOwsdotwagovgt Christopher Chris ltChristCwsdotwagovgt ckerneycaawagovdanplatinumbusinessgroupcom davegentasphaltwacom David BalltDavidsignsnowmillcreekcomgt Davis Khalia ltDavisKhwsdotwagovgt Davis RaShelle (GOVltrashelledavisgovwagovgt Dayton Jo ltDaytonJwsdotwagovgt ddhondtagcwacomDebbieDriverlegwagov Dennis ltdennisahlkiewitcomgt dmcleodnwlaborersorgdrart6651gmailcom Duncan Enid lthigradeincgmailcomgt EltonltEltonwashingtonstatetruckingcomgt eprincecaawagov flemosldccorpcomfmartineznwmtnmsdcorg geoffshookatkncom glovelady ltgloveladyexcelglovescomgtGrabow Katie ltkgrabowsystemsclcomgt Guilfucci Jackie ltJackieGuilfucciskanskacomgt HealyLinda ltHealyLwsdotwagovgt Higginbotham Breanne ltHigginBwsdotwagovgt HirscheyClaudia ltclaudiahirscheycomcastnetgt Holt Colette ltcoletteholtmwbelawcomgt Huff JohnltHuffJwsdotwagovgt Iniguezchawagov JacksonMaynardlegwagov Jimmy Matta(jmattaalcantarassoccom) ltjmattaalcantarassoccomgt kellywickergovwagov Key EarlltKeyEwsdotwagovgt Kirk Jon ltjkirkwhhnfscomgt Kris Purrier ltkpurrierhwageocomgtleewabuildingtradesorg lesliejonessoundtransitorg Liz Evans ltlevansagcwacomgt LopezErin lterinlopezdeswagovgt Martha Cerna ltMarthaPSLCCORGgt Martin-Arnold EdwinaltMartinEwsdotwagovgt Mary Lerdahl ltmarydbeelectricinccomgt McCarty Hannahlthannahmccartylegwagovgt Melissa L Boyles ltmelissaboylesmwbelawcomgt Metcalf KeithltMetcalKwsdotwagovgt michaelicapaawagov Michelle ltMichelleTTCC26netgt MillarRoger ltMillarRwsdotwagovgt Nakamura Jason ltjasonnakamura1-alliancecomgtNavarroLportseattleorg olliepmt-solutionscom pastorbanksesbctacomacom PatrickHughes ltphugheshughesgroupbizgt Petersen Jodi (FHWA) ltJodiPetersendotgovgtrabbottliunaorg rcarmsteadgmailcom ricemportseattleorg Riley D ltdrileylydigcomgtSeling ltSelingjpfranciscomgt sherryharrisergosynchcom Stell MellodyltStellMwsdotwagovgt terigobintulaliptribes-nsngov timwilliamfactorycom tinaterra-tdicom tkellyldccorpcom tomgaetzmsncom vcollinsacec-waorgverlenejazzmsncom Wang Albert ltWangAatgwagovgt Waugh GregltGregWMaxKuneyComgt Yates Henry ltYatesHWSDOTWAGOVgtCc Tom Gaetz lttomgaetzmsncomgt Dave Gent - WAPA ltdavegentasphaltwacomgt VanCollins ltvcollinsacec-waorggt Daniel Seydel II ltdanplatinumbusinessgroupcomgt MaynardJackson ltJacksonMaynardlegwagovgt Carl Livingston ltcarlllivingstongmailcomgt DonMcLeod ltdmcleodnwlaborersorggt JIMMY MATTA ltjimmymattamsncomgt Prince Ed(CAAA) lteprincecaawagovgt David DHondt ltddhondtagcwacomgt Irene Reyesltgloveladyexcelsupplycompanycomgt McDaniel Craig ltMcDaniCwsdotwagovgtsherryharrisergosynchcomSubject WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Good morning On Monday October 30th WSDOT will be releasing the proposed overall Federal HighwayAdministration Disadvantaged Business Enterprise goal attached for public comment throughDecember 15 2017 This overall DBE goal is based upon the recently completely DBE ProgramDisparity Study WSDOT is proposing a 19 percent overall DBE participation goal on Federal Highway

Administration-funded projects for federal fiscal years 2018 through 2020 DBE goals fortransportation projects that receive federal funds represent a percentage of the value of work inwhich minority- and women-owned businesses should participate Once finalized and submitted toFHWA early next year the goal will be effective through Sept 30 2020

The purpose of the DBE program is to create a level playing field for firms owned and operated bydisadvantaged individuals wanting to participate in federally assisted highway transit and aviationprograms The attached overall DBE goal is for FHWA funded projects WSDOT will be updating theFTA and FAA overall DBE goals in the near future

If you have any questions please contact Earl Key Director of the Office of Equal Opportunity at3607057091 or KeyEwsdotwagov Thank you Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

  • Proof-Of-Publicationpdf
    • Mediapdf
      • AGC
      • Daily Journal
      • Daily Medium
      • DBEGood
      • OMWBE
      • Seattle Medium
      • Tabor 100
      • The Chronicle
      • Tukwila
        • King County
          • Public-Comments-20180111pdf
            • 19 DBE Requirement(1)
            • AGC Comments on Proposed 10 Goad
            • Backstrom Curb amp Sidewalk
            • comments on WSDOT proposed DBE goal
            • Cowlitz County Public Works
            • DBE Contracting goals
            • DBE Goal
            • DBE Program Disparity Study
            • Disparity Study Comments from City of Spokane
            • FW_ WSDOT News - WSDOT seeks comments on propos
            • Proposed DBE Goals
            • RE_ DBE Contracting Goal Comments
            • Re_ DBE Goal Comments
            • Re_ Seydel Dan - WSDOT Disparity Study Present
            • Support for WSDOTs proposed DBE goal
            • Why we need mandatory goals
            • WSDOT DBE Goal - Comment in support
            • WSDOT Proposes DBE goal of 19
            • WSDOT propsed DBE Goals
            • WTS - Disparity Study Comment Letter

From Dave Gent - WAPATo Bayne JackieCc Tom GaetzSubject WAPA Public Comments - RE WSDOT FHWA Disadvantaged Business Enterprise Proposed GoalDate Friday December 15 2017 14119 PMAttachments 12152017 DBE Proposed Goal - WAPA Public Comments Letterpdf

Good afternoon Jackie Please find attached WAPArsquos ldquofor the public recordrdquo comments with respect to WSDOTrsquos proposedDBE Goals FHWA funded work I assume that the Master DBE Directory was not sent to you this week so as a result we were notable to review the directory before the close of the public comment period That fact is noted withinour comment letter Thank you for your efforts Have a good weekend

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Friday December 8 2017 1219 PMTo Dave Gent - WAPA ltdavegentasphaltwacomgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hello Dave WSDOT did not take possession of this directory as part of our review process We will provide youwith the records without submitting a formal request However we need to get them from theconsultant first I will hopefully have them to provide next week I will keep you updated on therequest Have a nice weekend Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal Opportunity

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

December 15 2017

Jackie Bayne Policy Manager WSDOT Office of Equal Opportunity Delivered via e-mail to BayneJwsdotwagov RE Public Comment (as requested) to Proposed Overall DBE Goal for the FHWA (2018 ndash 2020) Ms Bayne Thank you for your presentation via webinar on December 5 2017 outlining WSDOTrsquos evaluation process used to determine the proposed overall DBE goal for the FHWA Thank you also for the Colette Holt amp Associates (CHA) DBE Advisory Group presentation made on September 14 2017 Both presentations helped to distill the findings of the 2017 Disparity Study produced by CHA In response to Earl Keyrsquos initial informal request to comment on the proposed overall DBE goal made during the DBE Advisory Committee teleconference held on October 12th we provided a list of reasons that we believe justify a lower DBE goal than is now being proposed Our initial response to Mr Keyrsquos request did not serve to influence WSDOT and the current proposed goal remains at 190 The arguments provided on October 12th against the significant increase in the proposed DBE goal (versus the previous goal and recent historic DBE participation) are repeated and supplemented below and will serve as the Asphalt Pavement Associationrsquos (WAPArsquos) official public comments

In concert with WSDOT and the OWMBE WAPA and the construction firms that WAPA represents have demonstrated a commitment to the principals of equal opportunity for all ldquoready willing and ablerdquo firms for the entire history that our DBE program has been in place WAPA has continuously demonstrated its commitment to the goals of the DBE program and for increasing the representation of disadvantaged groups within our industry as both workers and owners of firms Please recognize that WAPArsquos oversight and critique of the DBE program has always attempted to balance the principals of fair and open competition with the practical aspects of the low bid compressed schedule high performance standards demanded within the WSDOT marketplace Our comments below are meant to enhance WSDOTrsquos and OWMBErsquos understanding of the market and to hopefully have WSDOT fully consider all of the dynamics that are at play when proposing its Triennial DBE goal for FHWA projects Current DBE Capacity vs Historically Robust Market In advocating for a realistic and defensible DBE goal it has always been WAPArsquos position that it is paramount that the realities of the marketplace and true certified DBE subcontracting capacity should be a primary standard While a ldquostretchrdquo goal may appear to be progressive on its face it comes with consequences for all of the parties involved in the WSDOT federal aid contracting arena To balance the dynamics of the WSDOT contracting system the DBE goal should be tempered with the realities of the market and with a true measure of the underlying effectiveness of the DBE support services available to contractors

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 2 of 6 The first point of fact that has not been given any apparent consideration by WSDOT in its evaluation of the current capacity of certified DBErsquos is that there is an historically robust workload scheduled to be performed in the 2017 through 2022 time-frame particularly in the Puget Sound ldquoEverett to Olympiardquo corridor By WSDOTrsquos own estimates (see Attachment A) public works construction project starts in the 2018 to 2022 time-frame in this region will exceed $333 billion (B) counting the work projected from just five public entities WSDOT will be taking a decidedly ldquoback seatrdquo role during this period to Sound Transit which will have construction project starts of $226B vs WSDOTrsquos projected volume of $67B WSDOTrsquos summary publication titled Washington State Department of Transportations Proposed Federal Highway Administration Triennium Disadvantaged Business Enterprise Goal Federal Fiscal Years 2018-2020 states correctly that ldquoIncluded among the types of evidence that must be considered are the current capacity of DBEs to perform work on WSDOTrsquos federally-assisted contracts as measured by the volume of work DBEs have performed in recent yearshelliprdquo (Step Two Adjustment discussion) With the Sound Transit program being over 300 larger than the total WSDOT program in this region a sober assessment of true certified DBE capacity in the next three years needs to be considered by WSDOT If the huge construction boom over the next five years does not prompt a Step Two Adjustment then it becomes obvious that the realities of the market are being ignored by WSDOT for DBE goal setting Put another way if the 2018 through 2022 level of contracting activity does not warrant a goal adjustment what will DBE Access Barriers Not Yet Addressed The CHA 2017 Disparity Study points out multiple recommendations in Section VII that impact DBE participation and access to the market Assessments relating to those impacts and the state of maturity in addressing the CHA recommendations should be considered when assessing the DBE goal Many of the CHA recommendation have not been adequately addressed at this point in time Some of the prime examples are listed below Increase Certification and Expertise ndash The Disparity Study as explained to us includes all minority- (MBE)

and women-owned (WBE) firms that could be readily identified that perform work within Washington State and that perform work within the NAICS code framework CHA developed to cover WSDOT project work During the various presentations relating to the Disparity Study WSDOT representatives said that outreach to currently non-certified MBE amp WBE firms has increased and that WSDOT aspires to bolster its list of certified firms in the future but this effort is just beginning and the success of the effort needs to be means tested against the broader population of MBE amp WBE firms included in the CHA base line evaluation As the Disparity Study uses a much broader population of MBE WBE contractors to arrive at its conclusions (both non-certified firms and firms too large for certification) it follows that the calculated DBE proposed goal is overstated to include capacity that does not currently exist within WSDOTrsquos certified DBE framework Unless OMWBE is experiencing sudden and unprecedented success in recruiting new MBEWBE firms the DBE goal should be adjusted downward to recognize that the ldquoready willing and ablerdquo contractors that WSDOT has certified is only a subset of the total MBEWBE contracting population used in the Disparity Study evaluation

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 3 of 6

Until the promised WSDOT outreach registration efforts result in a substantial increase in available certified DBE firms it is premature to count the entire population of minority- and women-owned contractors as available to participate in WSDOT contracting It is unreasonable for WSDOT to project availability capacity using the entire MBEWBE population when only its currently truncated list of certified firms is acceptable to count toward the DBE goal

A corollary to the Increase Certification and Expertise discussion above is that the calculation of the Base Figure evidently includes the broadest practical population of MBE and WBE firms identifiable (without a review of the CHA Master DBE Directory which has not been supplied prior to the close of the public comment period the scope of the directory cannot be ascertained) If this directory includes a large population of MBEWBE firms that are not certified or are too large to be certified then the Base Figure calculation should be adjusted to reflect that certified DBE firms are a fraction of the total MBEWBE firms used to arrive at the 19 suggested DBE goal With respect to the CHA Master Directory it is our understanding the WSDOT was not given the directory as part of its evaluation of the Disparity Study and it follows that it did not evaluate the proposed DBE goal in the context of the CHA Master DBE Directory In our opinion an informed decision on adjusting the CHA baseline goal calculation can only be done after an extensive evaluation of the CHA Master DBE Directory If this has not been done WSDOT has not exercised due diligence in evaluating the context and underpinnings of the CHA Disparity Study and a certified DBE Triennium goal proposal to the FHWA is premature Increase Contract ldquoUnbundlingrdquo ndash If this proposed strategy (suggested by the CHA Study) is undertaken

certified DBE Subcontractors currently available will be engaged as Prime Contractors and the value of their prime contracts will bolster the overall percentage of certified DBE contracting but a systematic effort and strategy to ldquounbundlerdquo has not been articulated by WSDOT The key question of how this effort can be accomplished without increased cost to the taxpayers and increased inconvenience for the traveling public As noted in the CHA study (page 129 final paragraph) ldquoUnbundling must be conducted however within the constraints of the need to ensure efficiency and limit cost to the taxpayersrdquo As of this writing no overarching strategy for further unbundling with proper accountability has been articulated by WSDOT to the DBE Advisory Group

Review Insurance and Experience Requirements ndash Impediments to certified DBE participation due to

necessary insurance and experience standards cannot be solved by the prime contracting community Unless and until WSDOT puts together programs to address the burden of the substantial risks shouldered by Prime Contractors on WSDOT contracts barriers for streamlined utilization of certified DBE firms will continue to exist These market driven barriers will continue to dampen the availability of certified DBE Subcontractors that are able to perform within WSDOTrsquos strict criteria without unduly transferring risk to the Prime Contractor

Better Partnering to Overcome DBE Failures to Perform ndash Prime Contractors are held fully responsible to maintain the project schedule and are subject to project liquidated damages even when they may be struggling to deal with Subcontractor performance issues It is well-established that replacing a certified ldquocondition of awardrdquo (COA) DBE Subcontractor is very onerous and likely very costly to the Prime Contractor Unfortunately the imposition of strict and often counter-productive commercially useful function (CUF) rules often compound this issue as Prime Contractors cannot help COA DBE Subcontractors work through capacity expertise or time-related issues that impact timely performance

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 4 of 6

WSDOT needs to be a much better partner in the process of dealing with under-performing or non-performing certified DBE Subcontractors The current standard operational procedure places all of the exposure for non-performance onto the Prime WSDOT does not have an equitable system to account for non-performing or under-performing certified DBE Subcontractors hired as a condition of award (COA)

Performance Information and Training ndash Commercially useful function rules (CUF) and the lack of clear benchmark definitions for good faith effort (GFE) standards remain barriers for improving accountability within the DBE system and in turn lead to distorted DBE participation rates These items remain amorphous due to lack of training or lack of historic information Chronic uncertainty exists regarding both of these items Until WSDOT changes and improves its approach to provide transparency and certainty for both the prime bidding amp subcontracting parties true certified DBE capacity will continue to be masked and the resultant higher subcontracting costs associated with a distorted marketplace will continue to be hidden

WAPA respectfully suggests that simply adding an ldquoEstimated DBE Subcontract Premiumrdquo line to the current DBE bid forms would help to establish benchmarks that could begin to be used to ldquomeans testrdquo good faith efforts If this information had been gathered over the last 20 years of the DBE program meaningful GFE standards could have been developed and could be in place today

An in-depth review of CUF standards would also provide clarity For instance it is unclear why force account items performed by certified DBEs are currently counted at only 50 of the value of the work How was this benchmark established Has it been reviewed since imposed Did it ldquosolverdquo whatever inequity WSDOT was trying to address Better clarity may lead to more expanded opportunities for certified DBE Subcontractors

Enhanced Supportive Services and Business Development Programs ndash Unless and until stronger programs of these types are shown to be effective in boosting certified DBE business development increased DBE participation due to stronger business acumen should not be relied upon when setting the new DBE goal

Does OMWBE have a reasonable expectation that future plans for enhanced and expanded programs will be more successful than those employed in the past Assuming that certified DBE Subcontractors will be better prepared to deal with the WSDOT contracting environment than in the past should not be relied upon to boost DBE participation goals Especially troubling were the multiple references within the CHA report highlighting that DBEs believe that the staff at OMWBE lack a deep knowledge about the highway construction industry (eg Study page 129 2nd paragraph) Does OMWBE have a path forward that will address this issue and thus improve supportive services impacts

Develop a Bonding and Financing Program for SBEs ndash This is completely outside of the prime contracting

communityrsquos scope of influence WSDOT must find a way to institute changes that both protect the taxpayer and help increase certified DBE bonding capacity and access to financing ndash very large hurtles To assume that these hurtles can effectively be overcome within the 2018 ndash 2020 time frame when they have been chromic issues for the past 20 plus years of DBE program development is not rational

A helpful innovation would be for WSDOT to underwrite performance and payment bonds for certified DBE firms or to create promote a system that helps certified DBE firms obtain private bonding Bridging the gap to address capital access and performance risks (bonding) must be championed by WSDOT

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 5 of 6

Base Figure Adjustment to Address Available Subcontract Volume and DBE Prime Contracts It is a fact that mid- to large-sized MBEWBE firms that compete both as Prime Contractors and as Subcontractors are not eligible to be OMWBE certified DBEs Further the current amount of contract unbundling for greater DBE access to WSDOT prime contracting (see below) accounts for a very low dollar volume of prime contracts performed by certified DBEs Finally by specification (WSDOT standard specification 1-081) Prime Contractors are obligated to perform 30 of the total volume of the work (less specialty work) or stated another way a maximum of 70 of the dollar volume on WSDOT projects is typically available to award to subcontractors These market dynamics are NOT addressed in the Disparity Study A responsible DBE goal made absent of these facts should not be implemented A reasonable adjustment to the proposed 19 DBE goal is presented below

bull The percent of WSDOT prime contracts awarded to certified DBE firms is likely less than 5 by total WSDOT

contract volume Assuming this approximation is valid (likely very conservative) then the amount of WSDOT contract work available to certified DBE firms via subcontracting should be adjusted to account for the factors outlined above The Base Figure (19) should be adjusted to recognize that a 70 maximum subcontractor participation is available (in the numerator) and to account for the assumed 5 certified DBE prime contracts in the denominator Reasonable Base Figure Adjustment 19 (proposed) x 70 subcontracts available divide 95 of Non-Certified DBEs as Prime Contract Volume = 190 x 0737 = 140 adjusted goal This is an adjustment based on the practical dynamics of the WSDOT contracting system and it represents a more realistic look at the true subcontract volume that is available for Prime Contractors to award to certified DBE firms

Conclusions

Until the items listed above are addressed and in place it is not reasonable to believe that DBE goals can be increased by nearly 163 (from 117 to 190) When the projected robust public works contracting market is appropriately considered the true availability of certified DBE Subcontractors for WSDOT contracts will be truncated due to demand across all public works sectors With multiple strong public works programs competing for a limited population of certified DBEs the ability to meet increased WSDOT DBE goals will be severely challenged Without very clear concise and transparent good faith effort rules the ability to address DBE goals that greatly overestimate true near term certified DBE capacity will result in non-attainment bid day chaos failures to perform andor rapidly increased pricing

The clear conclusion is that at this point in time under the current circumstances without effectively instituted new programs rules procedures that could enhance the certified DBE programrsquos overall effectiveness we believe that the DBE goal should remain at or near 12 As OMWBE documents and demonstrates its future successes in improving access and eliminating capacity barriers only then should the DBE goal be re-evaluated and increased

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 6 of 6

In closing please remember that it is rare that the contracting community is asked our opinion with respect to the WSDOTrsquos DBE policies and so this letter is somewhat a vehicle to highlight collective concerns It is our belief that the majority of the Prime Contractors in Washington state support the objective of creating a level playing field for ready willing and able DBEs

If the level playing field is not yet possible in the absence of the DBE program then the key is to set realistic goals that recognize reflect and address the hard realities and market dynamics imposed by WSDOTrsquos bedrock environment of awarding contracts to the lowest cost responsible and responsive Contractor

Respectfully submitted Washington Asphalt Pavement Association

David Gent Tom Gaetz Executive Director Senior Advisor

Attachment A ndash WSDOT Central Puget Sound Public Works Contracting Projection 2018 - 2022

Con

stru

ctio

n Pr

ojec

t Sta

rts

2018

-202

2S

ound

Tra

nsit

$22

6 B

SD

OT

$08

B

Tran

sit

amp O

ther

s$1

7 B

WS

DO

T$6

7 B

Por

t of

Sea

ttle

$15

B

TOTA

L$3

33

B

Source N

ov 1

9 2

017

pres

enta

tion

to W

APA

Ann

ual M

eetin

g

Attachment A

Work (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Dave Gent - WAPA [mailtodavegentasphaltwacom] Sent Thursday December 7 2017 144 PMTo Bayne Jackie ltBayneJwsdotwagovgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hi again Jackie Irsquom fine thanks and hope you are the same Interesting The Master DBE Directory is the basis for and integral to the conclusions of the DisparityStudy Is it not then part of the information needed to fully review and comment on the DisparityStudy Was it not provided by CHA to WSDOT for review We are trying to fully understand thestudy and if this directory was part of the study why would it need to be obtained by a publicrecords disclosure It should be in the public domain and not restricted from ease of access If you are sure that a public records request is needed Irsquoll start that process but we will need tonote that point of fact when we submit our public comments If you are able to reconsider please let me know Respectfully

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Thursday December 7 2017 126 PMTo Dave Gent - WAPA ltdavegentasphaltwacomgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hello Dave I hope you are doing well

That information would likely be obtained through a public disclosure request Best Regards Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Dave Gent - WAPA [mailtodavegentasphaltwacom] Sent Thursday December 7 2017 113 PMTo Bayne Jackie ltBayneJwsdotwagovgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Jackie Can you please provide an electronic file or provide a weblink for the Master DBE Directory thatColette Holt amp Associates developed for the WSDOT Disparity Study 2017 (first referred to on Page 8of the Disparity Study) I did not see a link to this Master DBE Directory within the study Thanks

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Friday October 27 2017 1118 AMTo Kenyon Wendy ltKenyonWwsdotwagovgt Adams E W ltewadamssystemsclcomgtAdekoyaAndrew ltandrewadekoyabccomgt AlyssaBalllegwagov Anindita Mitraltamitracrea-affiliatescomgt APRISeattlehotmailcom Armstrong CharlotteltCharlieAatgwagovgt Ato Apiafi Architects PLLC ltatoaatoapiaficomgt benzfanwaorgBerntsen Teresa (OMWBE) ltTeresaBomwbewagovgt Billingsley Andrealtbillinawsdotwagovgt Bramlet Erica ltEricaBramletlegwagovgt Brooks Julius

ltBrooksJwsdotwagovgt Brown Jason ltjbrownldccorpcomgt bwallacenwlaborersorgCamden Allison ltCamdenAwsdotwagovgt carlllivingstongmailcom Cerda OscarltCerdaOwsdotwagovgt Christopher Chris ltChristCwsdotwagovgt ckerneycaawagovdanplatinumbusinessgroupcom davegentasphaltwacom David BalltDavidsignsnowmillcreekcomgt Davis Khalia ltDavisKhwsdotwagovgt Davis RaShelle (GOVltrashelledavisgovwagovgt Dayton Jo ltDaytonJwsdotwagovgt ddhondtagcwacomDebbieDriverlegwagov Dennis ltdennisahlkiewitcomgt dmcleodnwlaborersorgdrart6651gmailcom Duncan Enid lthigradeincgmailcomgt EltonltEltonwashingtonstatetruckingcomgt eprincecaawagov flemosldccorpcomfmartineznwmtnmsdcorg geoffshookatkncom glovelady ltgloveladyexcelglovescomgtGrabow Katie ltkgrabowsystemsclcomgt Guilfucci Jackie ltJackieGuilfucciskanskacomgt HealyLinda ltHealyLwsdotwagovgt Higginbotham Breanne ltHigginBwsdotwagovgt HirscheyClaudia ltclaudiahirscheycomcastnetgt Holt Colette ltcoletteholtmwbelawcomgt Huff JohnltHuffJwsdotwagovgt Iniguezchawagov JacksonMaynardlegwagov Jimmy Matta(jmattaalcantarassoccom) ltjmattaalcantarassoccomgt kellywickergovwagov Key EarlltKeyEwsdotwagovgt Kirk Jon ltjkirkwhhnfscomgt Kris Purrier ltkpurrierhwageocomgtleewabuildingtradesorg lesliejonessoundtransitorg Liz Evans ltlevansagcwacomgt LopezErin lterinlopezdeswagovgt Martha Cerna ltMarthaPSLCCORGgt Martin-Arnold EdwinaltMartinEwsdotwagovgt Mary Lerdahl ltmarydbeelectricinccomgt McCarty Hannahlthannahmccartylegwagovgt Melissa L Boyles ltmelissaboylesmwbelawcomgt Metcalf KeithltMetcalKwsdotwagovgt michaelicapaawagov Michelle ltMichelleTTCC26netgt MillarRoger ltMillarRwsdotwagovgt Nakamura Jason ltjasonnakamura1-alliancecomgtNavarroLportseattleorg olliepmt-solutionscom pastorbanksesbctacomacom PatrickHughes ltphugheshughesgroupbizgt Petersen Jodi (FHWA) ltJodiPetersendotgovgtrabbottliunaorg rcarmsteadgmailcom ricemportseattleorg Riley D ltdrileylydigcomgtSeling ltSelingjpfranciscomgt sherryharrisergosynchcom Stell MellodyltStellMwsdotwagovgt terigobintulaliptribes-nsngov timwilliamfactorycom tinaterra-tdicom tkellyldccorpcom tomgaetzmsncom vcollinsacec-waorgverlenejazzmsncom Wang Albert ltWangAatgwagovgt Waugh GregltGregWMaxKuneyComgt Yates Henry ltYatesHWSDOTWAGOVgtCc Tom Gaetz lttomgaetzmsncomgt Dave Gent - WAPA ltdavegentasphaltwacomgt VanCollins ltvcollinsacec-waorggt Daniel Seydel II ltdanplatinumbusinessgroupcomgt MaynardJackson ltJacksonMaynardlegwagovgt Carl Livingston ltcarlllivingstongmailcomgt DonMcLeod ltdmcleodnwlaborersorggt JIMMY MATTA ltjimmymattamsncomgt Prince Ed(CAAA) lteprincecaawagovgt David DHondt ltddhondtagcwacomgt Irene Reyesltgloveladyexcelsupplycompanycomgt McDaniel Craig ltMcDaniCwsdotwagovgtsherryharrisergosynchcomSubject WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Good morning On Monday October 30th WSDOT will be releasing the proposed overall Federal HighwayAdministration Disadvantaged Business Enterprise goal attached for public comment throughDecember 15 2017 This overall DBE goal is based upon the recently completely DBE ProgramDisparity Study WSDOT is proposing a 19 percent overall DBE participation goal on Federal Highway

Administration-funded projects for federal fiscal years 2018 through 2020 DBE goals fortransportation projects that receive federal funds represent a percentage of the value of work inwhich minority- and women-owned businesses should participate Once finalized and submitted toFHWA early next year the goal will be effective through Sept 30 2020

The purpose of the DBE program is to create a level playing field for firms owned and operated bydisadvantaged individuals wanting to participate in federally assisted highway transit and aviationprograms The attached overall DBE goal is for FHWA funded projects WSDOT will be updating theFTA and FAA overall DBE goals in the near future

If you have any questions please contact Earl Key Director of the Office of Equal Opportunity at3607057091 or KeyEwsdotwagov Thank you Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

  • Proof-Of-Publicationpdf
    • Mediapdf
      • AGC
      • Daily Journal
      • Daily Medium
      • DBEGood
      • OMWBE
      • Seattle Medium
      • Tabor 100
      • The Chronicle
      • Tukwila
        • King County
          • Public-Comments-20180111pdf
            • 19 DBE Requirement(1)
            • AGC Comments on Proposed 10 Goad
            • Backstrom Curb amp Sidewalk
            • comments on WSDOT proposed DBE goal
            • Cowlitz County Public Works
            • DBE Contracting goals
            • DBE Goal
            • DBE Program Disparity Study
            • Disparity Study Comments from City of Spokane
            • FW_ WSDOT News - WSDOT seeks comments on propos
            • Proposed DBE Goals
            • RE_ DBE Contracting Goal Comments
            • Re_ DBE Goal Comments
            • Re_ Seydel Dan - WSDOT Disparity Study Present
            • Support for WSDOTs proposed DBE goal
            • Why we need mandatory goals
            • WSDOT DBE Goal - Comment in support
            • WSDOT Proposes DBE goal of 19
            • WSDOT propsed DBE Goals
            • WTS - Disparity Study Comment Letter

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

December 15 2017

Jackie Bayne Policy Manager WSDOT Office of Equal Opportunity Delivered via e-mail to BayneJwsdotwagov RE Public Comment (as requested) to Proposed Overall DBE Goal for the FHWA (2018 ndash 2020) Ms Bayne Thank you for your presentation via webinar on December 5 2017 outlining WSDOTrsquos evaluation process used to determine the proposed overall DBE goal for the FHWA Thank you also for the Colette Holt amp Associates (CHA) DBE Advisory Group presentation made on September 14 2017 Both presentations helped to distill the findings of the 2017 Disparity Study produced by CHA In response to Earl Keyrsquos initial informal request to comment on the proposed overall DBE goal made during the DBE Advisory Committee teleconference held on October 12th we provided a list of reasons that we believe justify a lower DBE goal than is now being proposed Our initial response to Mr Keyrsquos request did not serve to influence WSDOT and the current proposed goal remains at 190 The arguments provided on October 12th against the significant increase in the proposed DBE goal (versus the previous goal and recent historic DBE participation) are repeated and supplemented below and will serve as the Asphalt Pavement Associationrsquos (WAPArsquos) official public comments

In concert with WSDOT and the OWMBE WAPA and the construction firms that WAPA represents have demonstrated a commitment to the principals of equal opportunity for all ldquoready willing and ablerdquo firms for the entire history that our DBE program has been in place WAPA has continuously demonstrated its commitment to the goals of the DBE program and for increasing the representation of disadvantaged groups within our industry as both workers and owners of firms Please recognize that WAPArsquos oversight and critique of the DBE program has always attempted to balance the principals of fair and open competition with the practical aspects of the low bid compressed schedule high performance standards demanded within the WSDOT marketplace Our comments below are meant to enhance WSDOTrsquos and OWMBErsquos understanding of the market and to hopefully have WSDOT fully consider all of the dynamics that are at play when proposing its Triennial DBE goal for FHWA projects Current DBE Capacity vs Historically Robust Market In advocating for a realistic and defensible DBE goal it has always been WAPArsquos position that it is paramount that the realities of the marketplace and true certified DBE subcontracting capacity should be a primary standard While a ldquostretchrdquo goal may appear to be progressive on its face it comes with consequences for all of the parties involved in the WSDOT federal aid contracting arena To balance the dynamics of the WSDOT contracting system the DBE goal should be tempered with the realities of the market and with a true measure of the underlying effectiveness of the DBE support services available to contractors

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 2 of 6 The first point of fact that has not been given any apparent consideration by WSDOT in its evaluation of the current capacity of certified DBErsquos is that there is an historically robust workload scheduled to be performed in the 2017 through 2022 time-frame particularly in the Puget Sound ldquoEverett to Olympiardquo corridor By WSDOTrsquos own estimates (see Attachment A) public works construction project starts in the 2018 to 2022 time-frame in this region will exceed $333 billion (B) counting the work projected from just five public entities WSDOT will be taking a decidedly ldquoback seatrdquo role during this period to Sound Transit which will have construction project starts of $226B vs WSDOTrsquos projected volume of $67B WSDOTrsquos summary publication titled Washington State Department of Transportations Proposed Federal Highway Administration Triennium Disadvantaged Business Enterprise Goal Federal Fiscal Years 2018-2020 states correctly that ldquoIncluded among the types of evidence that must be considered are the current capacity of DBEs to perform work on WSDOTrsquos federally-assisted contracts as measured by the volume of work DBEs have performed in recent yearshelliprdquo (Step Two Adjustment discussion) With the Sound Transit program being over 300 larger than the total WSDOT program in this region a sober assessment of true certified DBE capacity in the next three years needs to be considered by WSDOT If the huge construction boom over the next five years does not prompt a Step Two Adjustment then it becomes obvious that the realities of the market are being ignored by WSDOT for DBE goal setting Put another way if the 2018 through 2022 level of contracting activity does not warrant a goal adjustment what will DBE Access Barriers Not Yet Addressed The CHA 2017 Disparity Study points out multiple recommendations in Section VII that impact DBE participation and access to the market Assessments relating to those impacts and the state of maturity in addressing the CHA recommendations should be considered when assessing the DBE goal Many of the CHA recommendation have not been adequately addressed at this point in time Some of the prime examples are listed below Increase Certification and Expertise ndash The Disparity Study as explained to us includes all minority- (MBE)

and women-owned (WBE) firms that could be readily identified that perform work within Washington State and that perform work within the NAICS code framework CHA developed to cover WSDOT project work During the various presentations relating to the Disparity Study WSDOT representatives said that outreach to currently non-certified MBE amp WBE firms has increased and that WSDOT aspires to bolster its list of certified firms in the future but this effort is just beginning and the success of the effort needs to be means tested against the broader population of MBE amp WBE firms included in the CHA base line evaluation As the Disparity Study uses a much broader population of MBE WBE contractors to arrive at its conclusions (both non-certified firms and firms too large for certification) it follows that the calculated DBE proposed goal is overstated to include capacity that does not currently exist within WSDOTrsquos certified DBE framework Unless OMWBE is experiencing sudden and unprecedented success in recruiting new MBEWBE firms the DBE goal should be adjusted downward to recognize that the ldquoready willing and ablerdquo contractors that WSDOT has certified is only a subset of the total MBEWBE contracting population used in the Disparity Study evaluation

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 3 of 6

Until the promised WSDOT outreach registration efforts result in a substantial increase in available certified DBE firms it is premature to count the entire population of minority- and women-owned contractors as available to participate in WSDOT contracting It is unreasonable for WSDOT to project availability capacity using the entire MBEWBE population when only its currently truncated list of certified firms is acceptable to count toward the DBE goal

A corollary to the Increase Certification and Expertise discussion above is that the calculation of the Base Figure evidently includes the broadest practical population of MBE and WBE firms identifiable (without a review of the CHA Master DBE Directory which has not been supplied prior to the close of the public comment period the scope of the directory cannot be ascertained) If this directory includes a large population of MBEWBE firms that are not certified or are too large to be certified then the Base Figure calculation should be adjusted to reflect that certified DBE firms are a fraction of the total MBEWBE firms used to arrive at the 19 suggested DBE goal With respect to the CHA Master Directory it is our understanding the WSDOT was not given the directory as part of its evaluation of the Disparity Study and it follows that it did not evaluate the proposed DBE goal in the context of the CHA Master DBE Directory In our opinion an informed decision on adjusting the CHA baseline goal calculation can only be done after an extensive evaluation of the CHA Master DBE Directory If this has not been done WSDOT has not exercised due diligence in evaluating the context and underpinnings of the CHA Disparity Study and a certified DBE Triennium goal proposal to the FHWA is premature Increase Contract ldquoUnbundlingrdquo ndash If this proposed strategy (suggested by the CHA Study) is undertaken

certified DBE Subcontractors currently available will be engaged as Prime Contractors and the value of their prime contracts will bolster the overall percentage of certified DBE contracting but a systematic effort and strategy to ldquounbundlerdquo has not been articulated by WSDOT The key question of how this effort can be accomplished without increased cost to the taxpayers and increased inconvenience for the traveling public As noted in the CHA study (page 129 final paragraph) ldquoUnbundling must be conducted however within the constraints of the need to ensure efficiency and limit cost to the taxpayersrdquo As of this writing no overarching strategy for further unbundling with proper accountability has been articulated by WSDOT to the DBE Advisory Group

Review Insurance and Experience Requirements ndash Impediments to certified DBE participation due to

necessary insurance and experience standards cannot be solved by the prime contracting community Unless and until WSDOT puts together programs to address the burden of the substantial risks shouldered by Prime Contractors on WSDOT contracts barriers for streamlined utilization of certified DBE firms will continue to exist These market driven barriers will continue to dampen the availability of certified DBE Subcontractors that are able to perform within WSDOTrsquos strict criteria without unduly transferring risk to the Prime Contractor

Better Partnering to Overcome DBE Failures to Perform ndash Prime Contractors are held fully responsible to maintain the project schedule and are subject to project liquidated damages even when they may be struggling to deal with Subcontractor performance issues It is well-established that replacing a certified ldquocondition of awardrdquo (COA) DBE Subcontractor is very onerous and likely very costly to the Prime Contractor Unfortunately the imposition of strict and often counter-productive commercially useful function (CUF) rules often compound this issue as Prime Contractors cannot help COA DBE Subcontractors work through capacity expertise or time-related issues that impact timely performance

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 4 of 6

WSDOT needs to be a much better partner in the process of dealing with under-performing or non-performing certified DBE Subcontractors The current standard operational procedure places all of the exposure for non-performance onto the Prime WSDOT does not have an equitable system to account for non-performing or under-performing certified DBE Subcontractors hired as a condition of award (COA)

Performance Information and Training ndash Commercially useful function rules (CUF) and the lack of clear benchmark definitions for good faith effort (GFE) standards remain barriers for improving accountability within the DBE system and in turn lead to distorted DBE participation rates These items remain amorphous due to lack of training or lack of historic information Chronic uncertainty exists regarding both of these items Until WSDOT changes and improves its approach to provide transparency and certainty for both the prime bidding amp subcontracting parties true certified DBE capacity will continue to be masked and the resultant higher subcontracting costs associated with a distorted marketplace will continue to be hidden

WAPA respectfully suggests that simply adding an ldquoEstimated DBE Subcontract Premiumrdquo line to the current DBE bid forms would help to establish benchmarks that could begin to be used to ldquomeans testrdquo good faith efforts If this information had been gathered over the last 20 years of the DBE program meaningful GFE standards could have been developed and could be in place today

An in-depth review of CUF standards would also provide clarity For instance it is unclear why force account items performed by certified DBEs are currently counted at only 50 of the value of the work How was this benchmark established Has it been reviewed since imposed Did it ldquosolverdquo whatever inequity WSDOT was trying to address Better clarity may lead to more expanded opportunities for certified DBE Subcontractors

Enhanced Supportive Services and Business Development Programs ndash Unless and until stronger programs of these types are shown to be effective in boosting certified DBE business development increased DBE participation due to stronger business acumen should not be relied upon when setting the new DBE goal

Does OMWBE have a reasonable expectation that future plans for enhanced and expanded programs will be more successful than those employed in the past Assuming that certified DBE Subcontractors will be better prepared to deal with the WSDOT contracting environment than in the past should not be relied upon to boost DBE participation goals Especially troubling were the multiple references within the CHA report highlighting that DBEs believe that the staff at OMWBE lack a deep knowledge about the highway construction industry (eg Study page 129 2nd paragraph) Does OMWBE have a path forward that will address this issue and thus improve supportive services impacts

Develop a Bonding and Financing Program for SBEs ndash This is completely outside of the prime contracting

communityrsquos scope of influence WSDOT must find a way to institute changes that both protect the taxpayer and help increase certified DBE bonding capacity and access to financing ndash very large hurtles To assume that these hurtles can effectively be overcome within the 2018 ndash 2020 time frame when they have been chromic issues for the past 20 plus years of DBE program development is not rational

A helpful innovation would be for WSDOT to underwrite performance and payment bonds for certified DBE firms or to create promote a system that helps certified DBE firms obtain private bonding Bridging the gap to address capital access and performance risks (bonding) must be championed by WSDOT

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 5 of 6

Base Figure Adjustment to Address Available Subcontract Volume and DBE Prime Contracts It is a fact that mid- to large-sized MBEWBE firms that compete both as Prime Contractors and as Subcontractors are not eligible to be OMWBE certified DBEs Further the current amount of contract unbundling for greater DBE access to WSDOT prime contracting (see below) accounts for a very low dollar volume of prime contracts performed by certified DBEs Finally by specification (WSDOT standard specification 1-081) Prime Contractors are obligated to perform 30 of the total volume of the work (less specialty work) or stated another way a maximum of 70 of the dollar volume on WSDOT projects is typically available to award to subcontractors These market dynamics are NOT addressed in the Disparity Study A responsible DBE goal made absent of these facts should not be implemented A reasonable adjustment to the proposed 19 DBE goal is presented below

bull The percent of WSDOT prime contracts awarded to certified DBE firms is likely less than 5 by total WSDOT

contract volume Assuming this approximation is valid (likely very conservative) then the amount of WSDOT contract work available to certified DBE firms via subcontracting should be adjusted to account for the factors outlined above The Base Figure (19) should be adjusted to recognize that a 70 maximum subcontractor participation is available (in the numerator) and to account for the assumed 5 certified DBE prime contracts in the denominator Reasonable Base Figure Adjustment 19 (proposed) x 70 subcontracts available divide 95 of Non-Certified DBEs as Prime Contract Volume = 190 x 0737 = 140 adjusted goal This is an adjustment based on the practical dynamics of the WSDOT contracting system and it represents a more realistic look at the true subcontract volume that is available for Prime Contractors to award to certified DBE firms

Conclusions

Until the items listed above are addressed and in place it is not reasonable to believe that DBE goals can be increased by nearly 163 (from 117 to 190) When the projected robust public works contracting market is appropriately considered the true availability of certified DBE Subcontractors for WSDOT contracts will be truncated due to demand across all public works sectors With multiple strong public works programs competing for a limited population of certified DBEs the ability to meet increased WSDOT DBE goals will be severely challenged Without very clear concise and transparent good faith effort rules the ability to address DBE goals that greatly overestimate true near term certified DBE capacity will result in non-attainment bid day chaos failures to perform andor rapidly increased pricing

The clear conclusion is that at this point in time under the current circumstances without effectively instituted new programs rules procedures that could enhance the certified DBE programrsquos overall effectiveness we believe that the DBE goal should remain at or near 12 As OMWBE documents and demonstrates its future successes in improving access and eliminating capacity barriers only then should the DBE goal be re-evaluated and increased

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 6 of 6

In closing please remember that it is rare that the contracting community is asked our opinion with respect to the WSDOTrsquos DBE policies and so this letter is somewhat a vehicle to highlight collective concerns It is our belief that the majority of the Prime Contractors in Washington state support the objective of creating a level playing field for ready willing and able DBEs

If the level playing field is not yet possible in the absence of the DBE program then the key is to set realistic goals that recognize reflect and address the hard realities and market dynamics imposed by WSDOTrsquos bedrock environment of awarding contracts to the lowest cost responsible and responsive Contractor

Respectfully submitted Washington Asphalt Pavement Association

David Gent Tom Gaetz Executive Director Senior Advisor

Attachment A ndash WSDOT Central Puget Sound Public Works Contracting Projection 2018 - 2022

Con

stru

ctio

n Pr

ojec

t Sta

rts

2018

-202

2S

ound

Tra

nsit

$22

6 B

SD

OT

$08

B

Tran

sit

amp O

ther

s$1

7 B

WS

DO

T$6

7 B

Por

t of

Sea

ttle

$15

B

TOTA

L$3

33

B

Source N

ov 1

9 2

017

pres

enta

tion

to W

APA

Ann

ual M

eetin

g

Attachment A

Work (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Dave Gent - WAPA [mailtodavegentasphaltwacom] Sent Thursday December 7 2017 144 PMTo Bayne Jackie ltBayneJwsdotwagovgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hi again Jackie Irsquom fine thanks and hope you are the same Interesting The Master DBE Directory is the basis for and integral to the conclusions of the DisparityStudy Is it not then part of the information needed to fully review and comment on the DisparityStudy Was it not provided by CHA to WSDOT for review We are trying to fully understand thestudy and if this directory was part of the study why would it need to be obtained by a publicrecords disclosure It should be in the public domain and not restricted from ease of access If you are sure that a public records request is needed Irsquoll start that process but we will need tonote that point of fact when we submit our public comments If you are able to reconsider please let me know Respectfully

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Thursday December 7 2017 126 PMTo Dave Gent - WAPA ltdavegentasphaltwacomgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hello Dave I hope you are doing well

That information would likely be obtained through a public disclosure request Best Regards Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Dave Gent - WAPA [mailtodavegentasphaltwacom] Sent Thursday December 7 2017 113 PMTo Bayne Jackie ltBayneJwsdotwagovgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Jackie Can you please provide an electronic file or provide a weblink for the Master DBE Directory thatColette Holt amp Associates developed for the WSDOT Disparity Study 2017 (first referred to on Page 8of the Disparity Study) I did not see a link to this Master DBE Directory within the study Thanks

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Friday October 27 2017 1118 AMTo Kenyon Wendy ltKenyonWwsdotwagovgt Adams E W ltewadamssystemsclcomgtAdekoyaAndrew ltandrewadekoyabccomgt AlyssaBalllegwagov Anindita Mitraltamitracrea-affiliatescomgt APRISeattlehotmailcom Armstrong CharlotteltCharlieAatgwagovgt Ato Apiafi Architects PLLC ltatoaatoapiaficomgt benzfanwaorgBerntsen Teresa (OMWBE) ltTeresaBomwbewagovgt Billingsley Andrealtbillinawsdotwagovgt Bramlet Erica ltEricaBramletlegwagovgt Brooks Julius

ltBrooksJwsdotwagovgt Brown Jason ltjbrownldccorpcomgt bwallacenwlaborersorgCamden Allison ltCamdenAwsdotwagovgt carlllivingstongmailcom Cerda OscarltCerdaOwsdotwagovgt Christopher Chris ltChristCwsdotwagovgt ckerneycaawagovdanplatinumbusinessgroupcom davegentasphaltwacom David BalltDavidsignsnowmillcreekcomgt Davis Khalia ltDavisKhwsdotwagovgt Davis RaShelle (GOVltrashelledavisgovwagovgt Dayton Jo ltDaytonJwsdotwagovgt ddhondtagcwacomDebbieDriverlegwagov Dennis ltdennisahlkiewitcomgt dmcleodnwlaborersorgdrart6651gmailcom Duncan Enid lthigradeincgmailcomgt EltonltEltonwashingtonstatetruckingcomgt eprincecaawagov flemosldccorpcomfmartineznwmtnmsdcorg geoffshookatkncom glovelady ltgloveladyexcelglovescomgtGrabow Katie ltkgrabowsystemsclcomgt Guilfucci Jackie ltJackieGuilfucciskanskacomgt HealyLinda ltHealyLwsdotwagovgt Higginbotham Breanne ltHigginBwsdotwagovgt HirscheyClaudia ltclaudiahirscheycomcastnetgt Holt Colette ltcoletteholtmwbelawcomgt Huff JohnltHuffJwsdotwagovgt Iniguezchawagov JacksonMaynardlegwagov Jimmy Matta(jmattaalcantarassoccom) ltjmattaalcantarassoccomgt kellywickergovwagov Key EarlltKeyEwsdotwagovgt Kirk Jon ltjkirkwhhnfscomgt Kris Purrier ltkpurrierhwageocomgtleewabuildingtradesorg lesliejonessoundtransitorg Liz Evans ltlevansagcwacomgt LopezErin lterinlopezdeswagovgt Martha Cerna ltMarthaPSLCCORGgt Martin-Arnold EdwinaltMartinEwsdotwagovgt Mary Lerdahl ltmarydbeelectricinccomgt McCarty Hannahlthannahmccartylegwagovgt Melissa L Boyles ltmelissaboylesmwbelawcomgt Metcalf KeithltMetcalKwsdotwagovgt michaelicapaawagov Michelle ltMichelleTTCC26netgt MillarRoger ltMillarRwsdotwagovgt Nakamura Jason ltjasonnakamura1-alliancecomgtNavarroLportseattleorg olliepmt-solutionscom pastorbanksesbctacomacom PatrickHughes ltphugheshughesgroupbizgt Petersen Jodi (FHWA) ltJodiPetersendotgovgtrabbottliunaorg rcarmsteadgmailcom ricemportseattleorg Riley D ltdrileylydigcomgtSeling ltSelingjpfranciscomgt sherryharrisergosynchcom Stell MellodyltStellMwsdotwagovgt terigobintulaliptribes-nsngov timwilliamfactorycom tinaterra-tdicom tkellyldccorpcom tomgaetzmsncom vcollinsacec-waorgverlenejazzmsncom Wang Albert ltWangAatgwagovgt Waugh GregltGregWMaxKuneyComgt Yates Henry ltYatesHWSDOTWAGOVgtCc Tom Gaetz lttomgaetzmsncomgt Dave Gent - WAPA ltdavegentasphaltwacomgt VanCollins ltvcollinsacec-waorggt Daniel Seydel II ltdanplatinumbusinessgroupcomgt MaynardJackson ltJacksonMaynardlegwagovgt Carl Livingston ltcarlllivingstongmailcomgt DonMcLeod ltdmcleodnwlaborersorggt JIMMY MATTA ltjimmymattamsncomgt Prince Ed(CAAA) lteprincecaawagovgt David DHondt ltddhondtagcwacomgt Irene Reyesltgloveladyexcelsupplycompanycomgt McDaniel Craig ltMcDaniCwsdotwagovgtsherryharrisergosynchcomSubject WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Good morning On Monday October 30th WSDOT will be releasing the proposed overall Federal HighwayAdministration Disadvantaged Business Enterprise goal attached for public comment throughDecember 15 2017 This overall DBE goal is based upon the recently completely DBE ProgramDisparity Study WSDOT is proposing a 19 percent overall DBE participation goal on Federal Highway

Administration-funded projects for federal fiscal years 2018 through 2020 DBE goals fortransportation projects that receive federal funds represent a percentage of the value of work inwhich minority- and women-owned businesses should participate Once finalized and submitted toFHWA early next year the goal will be effective through Sept 30 2020

The purpose of the DBE program is to create a level playing field for firms owned and operated bydisadvantaged individuals wanting to participate in federally assisted highway transit and aviationprograms The attached overall DBE goal is for FHWA funded projects WSDOT will be updating theFTA and FAA overall DBE goals in the near future

If you have any questions please contact Earl Key Director of the Office of Equal Opportunity at3607057091 or KeyEwsdotwagov Thank you Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

  • Proof-Of-Publicationpdf
    • Mediapdf
      • AGC
      • Daily Journal
      • Daily Medium
      • DBEGood
      • OMWBE
      • Seattle Medium
      • Tabor 100
      • The Chronicle
      • Tukwila
        • King County
          • Public-Comments-20180111pdf
            • 19 DBE Requirement(1)
            • AGC Comments on Proposed 10 Goad
            • Backstrom Curb amp Sidewalk
            • comments on WSDOT proposed DBE goal
            • Cowlitz County Public Works
            • DBE Contracting goals
            • DBE Goal
            • DBE Program Disparity Study
            • Disparity Study Comments from City of Spokane
            • FW_ WSDOT News - WSDOT seeks comments on propos
            • Proposed DBE Goals
            • RE_ DBE Contracting Goal Comments
            • Re_ DBE Goal Comments
            • Re_ Seydel Dan - WSDOT Disparity Study Present
            • Support for WSDOTs proposed DBE goal
            • Why we need mandatory goals
            • WSDOT DBE Goal - Comment in support
            • WSDOT Proposes DBE goal of 19
            • WSDOT propsed DBE Goals
            • WTS - Disparity Study Comment Letter

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 2 of 6 The first point of fact that has not been given any apparent consideration by WSDOT in its evaluation of the current capacity of certified DBErsquos is that there is an historically robust workload scheduled to be performed in the 2017 through 2022 time-frame particularly in the Puget Sound ldquoEverett to Olympiardquo corridor By WSDOTrsquos own estimates (see Attachment A) public works construction project starts in the 2018 to 2022 time-frame in this region will exceed $333 billion (B) counting the work projected from just five public entities WSDOT will be taking a decidedly ldquoback seatrdquo role during this period to Sound Transit which will have construction project starts of $226B vs WSDOTrsquos projected volume of $67B WSDOTrsquos summary publication titled Washington State Department of Transportations Proposed Federal Highway Administration Triennium Disadvantaged Business Enterprise Goal Federal Fiscal Years 2018-2020 states correctly that ldquoIncluded among the types of evidence that must be considered are the current capacity of DBEs to perform work on WSDOTrsquos federally-assisted contracts as measured by the volume of work DBEs have performed in recent yearshelliprdquo (Step Two Adjustment discussion) With the Sound Transit program being over 300 larger than the total WSDOT program in this region a sober assessment of true certified DBE capacity in the next three years needs to be considered by WSDOT If the huge construction boom over the next five years does not prompt a Step Two Adjustment then it becomes obvious that the realities of the market are being ignored by WSDOT for DBE goal setting Put another way if the 2018 through 2022 level of contracting activity does not warrant a goal adjustment what will DBE Access Barriers Not Yet Addressed The CHA 2017 Disparity Study points out multiple recommendations in Section VII that impact DBE participation and access to the market Assessments relating to those impacts and the state of maturity in addressing the CHA recommendations should be considered when assessing the DBE goal Many of the CHA recommendation have not been adequately addressed at this point in time Some of the prime examples are listed below Increase Certification and Expertise ndash The Disparity Study as explained to us includes all minority- (MBE)

and women-owned (WBE) firms that could be readily identified that perform work within Washington State and that perform work within the NAICS code framework CHA developed to cover WSDOT project work During the various presentations relating to the Disparity Study WSDOT representatives said that outreach to currently non-certified MBE amp WBE firms has increased and that WSDOT aspires to bolster its list of certified firms in the future but this effort is just beginning and the success of the effort needs to be means tested against the broader population of MBE amp WBE firms included in the CHA base line evaluation As the Disparity Study uses a much broader population of MBE WBE contractors to arrive at its conclusions (both non-certified firms and firms too large for certification) it follows that the calculated DBE proposed goal is overstated to include capacity that does not currently exist within WSDOTrsquos certified DBE framework Unless OMWBE is experiencing sudden and unprecedented success in recruiting new MBEWBE firms the DBE goal should be adjusted downward to recognize that the ldquoready willing and ablerdquo contractors that WSDOT has certified is only a subset of the total MBEWBE contracting population used in the Disparity Study evaluation

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 3 of 6

Until the promised WSDOT outreach registration efforts result in a substantial increase in available certified DBE firms it is premature to count the entire population of minority- and women-owned contractors as available to participate in WSDOT contracting It is unreasonable for WSDOT to project availability capacity using the entire MBEWBE population when only its currently truncated list of certified firms is acceptable to count toward the DBE goal

A corollary to the Increase Certification and Expertise discussion above is that the calculation of the Base Figure evidently includes the broadest practical population of MBE and WBE firms identifiable (without a review of the CHA Master DBE Directory which has not been supplied prior to the close of the public comment period the scope of the directory cannot be ascertained) If this directory includes a large population of MBEWBE firms that are not certified or are too large to be certified then the Base Figure calculation should be adjusted to reflect that certified DBE firms are a fraction of the total MBEWBE firms used to arrive at the 19 suggested DBE goal With respect to the CHA Master Directory it is our understanding the WSDOT was not given the directory as part of its evaluation of the Disparity Study and it follows that it did not evaluate the proposed DBE goal in the context of the CHA Master DBE Directory In our opinion an informed decision on adjusting the CHA baseline goal calculation can only be done after an extensive evaluation of the CHA Master DBE Directory If this has not been done WSDOT has not exercised due diligence in evaluating the context and underpinnings of the CHA Disparity Study and a certified DBE Triennium goal proposal to the FHWA is premature Increase Contract ldquoUnbundlingrdquo ndash If this proposed strategy (suggested by the CHA Study) is undertaken

certified DBE Subcontractors currently available will be engaged as Prime Contractors and the value of their prime contracts will bolster the overall percentage of certified DBE contracting but a systematic effort and strategy to ldquounbundlerdquo has not been articulated by WSDOT The key question of how this effort can be accomplished without increased cost to the taxpayers and increased inconvenience for the traveling public As noted in the CHA study (page 129 final paragraph) ldquoUnbundling must be conducted however within the constraints of the need to ensure efficiency and limit cost to the taxpayersrdquo As of this writing no overarching strategy for further unbundling with proper accountability has been articulated by WSDOT to the DBE Advisory Group

Review Insurance and Experience Requirements ndash Impediments to certified DBE participation due to

necessary insurance and experience standards cannot be solved by the prime contracting community Unless and until WSDOT puts together programs to address the burden of the substantial risks shouldered by Prime Contractors on WSDOT contracts barriers for streamlined utilization of certified DBE firms will continue to exist These market driven barriers will continue to dampen the availability of certified DBE Subcontractors that are able to perform within WSDOTrsquos strict criteria without unduly transferring risk to the Prime Contractor

Better Partnering to Overcome DBE Failures to Perform ndash Prime Contractors are held fully responsible to maintain the project schedule and are subject to project liquidated damages even when they may be struggling to deal with Subcontractor performance issues It is well-established that replacing a certified ldquocondition of awardrdquo (COA) DBE Subcontractor is very onerous and likely very costly to the Prime Contractor Unfortunately the imposition of strict and often counter-productive commercially useful function (CUF) rules often compound this issue as Prime Contractors cannot help COA DBE Subcontractors work through capacity expertise or time-related issues that impact timely performance

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 4 of 6

WSDOT needs to be a much better partner in the process of dealing with under-performing or non-performing certified DBE Subcontractors The current standard operational procedure places all of the exposure for non-performance onto the Prime WSDOT does not have an equitable system to account for non-performing or under-performing certified DBE Subcontractors hired as a condition of award (COA)

Performance Information and Training ndash Commercially useful function rules (CUF) and the lack of clear benchmark definitions for good faith effort (GFE) standards remain barriers for improving accountability within the DBE system and in turn lead to distorted DBE participation rates These items remain amorphous due to lack of training or lack of historic information Chronic uncertainty exists regarding both of these items Until WSDOT changes and improves its approach to provide transparency and certainty for both the prime bidding amp subcontracting parties true certified DBE capacity will continue to be masked and the resultant higher subcontracting costs associated with a distorted marketplace will continue to be hidden

WAPA respectfully suggests that simply adding an ldquoEstimated DBE Subcontract Premiumrdquo line to the current DBE bid forms would help to establish benchmarks that could begin to be used to ldquomeans testrdquo good faith efforts If this information had been gathered over the last 20 years of the DBE program meaningful GFE standards could have been developed and could be in place today

An in-depth review of CUF standards would also provide clarity For instance it is unclear why force account items performed by certified DBEs are currently counted at only 50 of the value of the work How was this benchmark established Has it been reviewed since imposed Did it ldquosolverdquo whatever inequity WSDOT was trying to address Better clarity may lead to more expanded opportunities for certified DBE Subcontractors

Enhanced Supportive Services and Business Development Programs ndash Unless and until stronger programs of these types are shown to be effective in boosting certified DBE business development increased DBE participation due to stronger business acumen should not be relied upon when setting the new DBE goal

Does OMWBE have a reasonable expectation that future plans for enhanced and expanded programs will be more successful than those employed in the past Assuming that certified DBE Subcontractors will be better prepared to deal with the WSDOT contracting environment than in the past should not be relied upon to boost DBE participation goals Especially troubling were the multiple references within the CHA report highlighting that DBEs believe that the staff at OMWBE lack a deep knowledge about the highway construction industry (eg Study page 129 2nd paragraph) Does OMWBE have a path forward that will address this issue and thus improve supportive services impacts

Develop a Bonding and Financing Program for SBEs ndash This is completely outside of the prime contracting

communityrsquos scope of influence WSDOT must find a way to institute changes that both protect the taxpayer and help increase certified DBE bonding capacity and access to financing ndash very large hurtles To assume that these hurtles can effectively be overcome within the 2018 ndash 2020 time frame when they have been chromic issues for the past 20 plus years of DBE program development is not rational

A helpful innovation would be for WSDOT to underwrite performance and payment bonds for certified DBE firms or to create promote a system that helps certified DBE firms obtain private bonding Bridging the gap to address capital access and performance risks (bonding) must be championed by WSDOT

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 5 of 6

Base Figure Adjustment to Address Available Subcontract Volume and DBE Prime Contracts It is a fact that mid- to large-sized MBEWBE firms that compete both as Prime Contractors and as Subcontractors are not eligible to be OMWBE certified DBEs Further the current amount of contract unbundling for greater DBE access to WSDOT prime contracting (see below) accounts for a very low dollar volume of prime contracts performed by certified DBEs Finally by specification (WSDOT standard specification 1-081) Prime Contractors are obligated to perform 30 of the total volume of the work (less specialty work) or stated another way a maximum of 70 of the dollar volume on WSDOT projects is typically available to award to subcontractors These market dynamics are NOT addressed in the Disparity Study A responsible DBE goal made absent of these facts should not be implemented A reasonable adjustment to the proposed 19 DBE goal is presented below

bull The percent of WSDOT prime contracts awarded to certified DBE firms is likely less than 5 by total WSDOT

contract volume Assuming this approximation is valid (likely very conservative) then the amount of WSDOT contract work available to certified DBE firms via subcontracting should be adjusted to account for the factors outlined above The Base Figure (19) should be adjusted to recognize that a 70 maximum subcontractor participation is available (in the numerator) and to account for the assumed 5 certified DBE prime contracts in the denominator Reasonable Base Figure Adjustment 19 (proposed) x 70 subcontracts available divide 95 of Non-Certified DBEs as Prime Contract Volume = 190 x 0737 = 140 adjusted goal This is an adjustment based on the practical dynamics of the WSDOT contracting system and it represents a more realistic look at the true subcontract volume that is available for Prime Contractors to award to certified DBE firms

Conclusions

Until the items listed above are addressed and in place it is not reasonable to believe that DBE goals can be increased by nearly 163 (from 117 to 190) When the projected robust public works contracting market is appropriately considered the true availability of certified DBE Subcontractors for WSDOT contracts will be truncated due to demand across all public works sectors With multiple strong public works programs competing for a limited population of certified DBEs the ability to meet increased WSDOT DBE goals will be severely challenged Without very clear concise and transparent good faith effort rules the ability to address DBE goals that greatly overestimate true near term certified DBE capacity will result in non-attainment bid day chaos failures to perform andor rapidly increased pricing

The clear conclusion is that at this point in time under the current circumstances without effectively instituted new programs rules procedures that could enhance the certified DBE programrsquos overall effectiveness we believe that the DBE goal should remain at or near 12 As OMWBE documents and demonstrates its future successes in improving access and eliminating capacity barriers only then should the DBE goal be re-evaluated and increased

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 6 of 6

In closing please remember that it is rare that the contracting community is asked our opinion with respect to the WSDOTrsquos DBE policies and so this letter is somewhat a vehicle to highlight collective concerns It is our belief that the majority of the Prime Contractors in Washington state support the objective of creating a level playing field for ready willing and able DBEs

If the level playing field is not yet possible in the absence of the DBE program then the key is to set realistic goals that recognize reflect and address the hard realities and market dynamics imposed by WSDOTrsquos bedrock environment of awarding contracts to the lowest cost responsible and responsive Contractor

Respectfully submitted Washington Asphalt Pavement Association

David Gent Tom Gaetz Executive Director Senior Advisor

Attachment A ndash WSDOT Central Puget Sound Public Works Contracting Projection 2018 - 2022

Con

stru

ctio

n Pr

ojec

t Sta

rts

2018

-202

2S

ound

Tra

nsit

$22

6 B

SD

OT

$08

B

Tran

sit

amp O

ther

s$1

7 B

WS

DO

T$6

7 B

Por

t of

Sea

ttle

$15

B

TOTA

L$3

33

B

Source N

ov 1

9 2

017

pres

enta

tion

to W

APA

Ann

ual M

eetin

g

Attachment A

Work (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Dave Gent - WAPA [mailtodavegentasphaltwacom] Sent Thursday December 7 2017 144 PMTo Bayne Jackie ltBayneJwsdotwagovgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hi again Jackie Irsquom fine thanks and hope you are the same Interesting The Master DBE Directory is the basis for and integral to the conclusions of the DisparityStudy Is it not then part of the information needed to fully review and comment on the DisparityStudy Was it not provided by CHA to WSDOT for review We are trying to fully understand thestudy and if this directory was part of the study why would it need to be obtained by a publicrecords disclosure It should be in the public domain and not restricted from ease of access If you are sure that a public records request is needed Irsquoll start that process but we will need tonote that point of fact when we submit our public comments If you are able to reconsider please let me know Respectfully

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Thursday December 7 2017 126 PMTo Dave Gent - WAPA ltdavegentasphaltwacomgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hello Dave I hope you are doing well

That information would likely be obtained through a public disclosure request Best Regards Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Dave Gent - WAPA [mailtodavegentasphaltwacom] Sent Thursday December 7 2017 113 PMTo Bayne Jackie ltBayneJwsdotwagovgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Jackie Can you please provide an electronic file or provide a weblink for the Master DBE Directory thatColette Holt amp Associates developed for the WSDOT Disparity Study 2017 (first referred to on Page 8of the Disparity Study) I did not see a link to this Master DBE Directory within the study Thanks

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Friday October 27 2017 1118 AMTo Kenyon Wendy ltKenyonWwsdotwagovgt Adams E W ltewadamssystemsclcomgtAdekoyaAndrew ltandrewadekoyabccomgt AlyssaBalllegwagov Anindita Mitraltamitracrea-affiliatescomgt APRISeattlehotmailcom Armstrong CharlotteltCharlieAatgwagovgt Ato Apiafi Architects PLLC ltatoaatoapiaficomgt benzfanwaorgBerntsen Teresa (OMWBE) ltTeresaBomwbewagovgt Billingsley Andrealtbillinawsdotwagovgt Bramlet Erica ltEricaBramletlegwagovgt Brooks Julius

ltBrooksJwsdotwagovgt Brown Jason ltjbrownldccorpcomgt bwallacenwlaborersorgCamden Allison ltCamdenAwsdotwagovgt carlllivingstongmailcom Cerda OscarltCerdaOwsdotwagovgt Christopher Chris ltChristCwsdotwagovgt ckerneycaawagovdanplatinumbusinessgroupcom davegentasphaltwacom David BalltDavidsignsnowmillcreekcomgt Davis Khalia ltDavisKhwsdotwagovgt Davis RaShelle (GOVltrashelledavisgovwagovgt Dayton Jo ltDaytonJwsdotwagovgt ddhondtagcwacomDebbieDriverlegwagov Dennis ltdennisahlkiewitcomgt dmcleodnwlaborersorgdrart6651gmailcom Duncan Enid lthigradeincgmailcomgt EltonltEltonwashingtonstatetruckingcomgt eprincecaawagov flemosldccorpcomfmartineznwmtnmsdcorg geoffshookatkncom glovelady ltgloveladyexcelglovescomgtGrabow Katie ltkgrabowsystemsclcomgt Guilfucci Jackie ltJackieGuilfucciskanskacomgt HealyLinda ltHealyLwsdotwagovgt Higginbotham Breanne ltHigginBwsdotwagovgt HirscheyClaudia ltclaudiahirscheycomcastnetgt Holt Colette ltcoletteholtmwbelawcomgt Huff JohnltHuffJwsdotwagovgt Iniguezchawagov JacksonMaynardlegwagov Jimmy Matta(jmattaalcantarassoccom) ltjmattaalcantarassoccomgt kellywickergovwagov Key EarlltKeyEwsdotwagovgt Kirk Jon ltjkirkwhhnfscomgt Kris Purrier ltkpurrierhwageocomgtleewabuildingtradesorg lesliejonessoundtransitorg Liz Evans ltlevansagcwacomgt LopezErin lterinlopezdeswagovgt Martha Cerna ltMarthaPSLCCORGgt Martin-Arnold EdwinaltMartinEwsdotwagovgt Mary Lerdahl ltmarydbeelectricinccomgt McCarty Hannahlthannahmccartylegwagovgt Melissa L Boyles ltmelissaboylesmwbelawcomgt Metcalf KeithltMetcalKwsdotwagovgt michaelicapaawagov Michelle ltMichelleTTCC26netgt MillarRoger ltMillarRwsdotwagovgt Nakamura Jason ltjasonnakamura1-alliancecomgtNavarroLportseattleorg olliepmt-solutionscom pastorbanksesbctacomacom PatrickHughes ltphugheshughesgroupbizgt Petersen Jodi (FHWA) ltJodiPetersendotgovgtrabbottliunaorg rcarmsteadgmailcom ricemportseattleorg Riley D ltdrileylydigcomgtSeling ltSelingjpfranciscomgt sherryharrisergosynchcom Stell MellodyltStellMwsdotwagovgt terigobintulaliptribes-nsngov timwilliamfactorycom tinaterra-tdicom tkellyldccorpcom tomgaetzmsncom vcollinsacec-waorgverlenejazzmsncom Wang Albert ltWangAatgwagovgt Waugh GregltGregWMaxKuneyComgt Yates Henry ltYatesHWSDOTWAGOVgtCc Tom Gaetz lttomgaetzmsncomgt Dave Gent - WAPA ltdavegentasphaltwacomgt VanCollins ltvcollinsacec-waorggt Daniel Seydel II ltdanplatinumbusinessgroupcomgt MaynardJackson ltJacksonMaynardlegwagovgt Carl Livingston ltcarlllivingstongmailcomgt DonMcLeod ltdmcleodnwlaborersorggt JIMMY MATTA ltjimmymattamsncomgt Prince Ed(CAAA) lteprincecaawagovgt David DHondt ltddhondtagcwacomgt Irene Reyesltgloveladyexcelsupplycompanycomgt McDaniel Craig ltMcDaniCwsdotwagovgtsherryharrisergosynchcomSubject WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Good morning On Monday October 30th WSDOT will be releasing the proposed overall Federal HighwayAdministration Disadvantaged Business Enterprise goal attached for public comment throughDecember 15 2017 This overall DBE goal is based upon the recently completely DBE ProgramDisparity Study WSDOT is proposing a 19 percent overall DBE participation goal on Federal Highway

Administration-funded projects for federal fiscal years 2018 through 2020 DBE goals fortransportation projects that receive federal funds represent a percentage of the value of work inwhich minority- and women-owned businesses should participate Once finalized and submitted toFHWA early next year the goal will be effective through Sept 30 2020

The purpose of the DBE program is to create a level playing field for firms owned and operated bydisadvantaged individuals wanting to participate in federally assisted highway transit and aviationprograms The attached overall DBE goal is for FHWA funded projects WSDOT will be updating theFTA and FAA overall DBE goals in the near future

If you have any questions please contact Earl Key Director of the Office of Equal Opportunity at3607057091 or KeyEwsdotwagov Thank you Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

  • Proof-Of-Publicationpdf
    • Mediapdf
      • AGC
      • Daily Journal
      • Daily Medium
      • DBEGood
      • OMWBE
      • Seattle Medium
      • Tabor 100
      • The Chronicle
      • Tukwila
        • King County
          • Public-Comments-20180111pdf
            • 19 DBE Requirement(1)
            • AGC Comments on Proposed 10 Goad
            • Backstrom Curb amp Sidewalk
            • comments on WSDOT proposed DBE goal
            • Cowlitz County Public Works
            • DBE Contracting goals
            • DBE Goal
            • DBE Program Disparity Study
            • Disparity Study Comments from City of Spokane
            • FW_ WSDOT News - WSDOT seeks comments on propos
            • Proposed DBE Goals
            • RE_ DBE Contracting Goal Comments
            • Re_ DBE Goal Comments
            • Re_ Seydel Dan - WSDOT Disparity Study Present
            • Support for WSDOTs proposed DBE goal
            • Why we need mandatory goals
            • WSDOT DBE Goal - Comment in support
            • WSDOT Proposes DBE goal of 19
            • WSDOT propsed DBE Goals
            • WTS - Disparity Study Comment Letter

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 3 of 6

Until the promised WSDOT outreach registration efforts result in a substantial increase in available certified DBE firms it is premature to count the entire population of minority- and women-owned contractors as available to participate in WSDOT contracting It is unreasonable for WSDOT to project availability capacity using the entire MBEWBE population when only its currently truncated list of certified firms is acceptable to count toward the DBE goal

A corollary to the Increase Certification and Expertise discussion above is that the calculation of the Base Figure evidently includes the broadest practical population of MBE and WBE firms identifiable (without a review of the CHA Master DBE Directory which has not been supplied prior to the close of the public comment period the scope of the directory cannot be ascertained) If this directory includes a large population of MBEWBE firms that are not certified or are too large to be certified then the Base Figure calculation should be adjusted to reflect that certified DBE firms are a fraction of the total MBEWBE firms used to arrive at the 19 suggested DBE goal With respect to the CHA Master Directory it is our understanding the WSDOT was not given the directory as part of its evaluation of the Disparity Study and it follows that it did not evaluate the proposed DBE goal in the context of the CHA Master DBE Directory In our opinion an informed decision on adjusting the CHA baseline goal calculation can only be done after an extensive evaluation of the CHA Master DBE Directory If this has not been done WSDOT has not exercised due diligence in evaluating the context and underpinnings of the CHA Disparity Study and a certified DBE Triennium goal proposal to the FHWA is premature Increase Contract ldquoUnbundlingrdquo ndash If this proposed strategy (suggested by the CHA Study) is undertaken

certified DBE Subcontractors currently available will be engaged as Prime Contractors and the value of their prime contracts will bolster the overall percentage of certified DBE contracting but a systematic effort and strategy to ldquounbundlerdquo has not been articulated by WSDOT The key question of how this effort can be accomplished without increased cost to the taxpayers and increased inconvenience for the traveling public As noted in the CHA study (page 129 final paragraph) ldquoUnbundling must be conducted however within the constraints of the need to ensure efficiency and limit cost to the taxpayersrdquo As of this writing no overarching strategy for further unbundling with proper accountability has been articulated by WSDOT to the DBE Advisory Group

Review Insurance and Experience Requirements ndash Impediments to certified DBE participation due to

necessary insurance and experience standards cannot be solved by the prime contracting community Unless and until WSDOT puts together programs to address the burden of the substantial risks shouldered by Prime Contractors on WSDOT contracts barriers for streamlined utilization of certified DBE firms will continue to exist These market driven barriers will continue to dampen the availability of certified DBE Subcontractors that are able to perform within WSDOTrsquos strict criteria without unduly transferring risk to the Prime Contractor

Better Partnering to Overcome DBE Failures to Perform ndash Prime Contractors are held fully responsible to maintain the project schedule and are subject to project liquidated damages even when they may be struggling to deal with Subcontractor performance issues It is well-established that replacing a certified ldquocondition of awardrdquo (COA) DBE Subcontractor is very onerous and likely very costly to the Prime Contractor Unfortunately the imposition of strict and often counter-productive commercially useful function (CUF) rules often compound this issue as Prime Contractors cannot help COA DBE Subcontractors work through capacity expertise or time-related issues that impact timely performance

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 4 of 6

WSDOT needs to be a much better partner in the process of dealing with under-performing or non-performing certified DBE Subcontractors The current standard operational procedure places all of the exposure for non-performance onto the Prime WSDOT does not have an equitable system to account for non-performing or under-performing certified DBE Subcontractors hired as a condition of award (COA)

Performance Information and Training ndash Commercially useful function rules (CUF) and the lack of clear benchmark definitions for good faith effort (GFE) standards remain barriers for improving accountability within the DBE system and in turn lead to distorted DBE participation rates These items remain amorphous due to lack of training or lack of historic information Chronic uncertainty exists regarding both of these items Until WSDOT changes and improves its approach to provide transparency and certainty for both the prime bidding amp subcontracting parties true certified DBE capacity will continue to be masked and the resultant higher subcontracting costs associated with a distorted marketplace will continue to be hidden

WAPA respectfully suggests that simply adding an ldquoEstimated DBE Subcontract Premiumrdquo line to the current DBE bid forms would help to establish benchmarks that could begin to be used to ldquomeans testrdquo good faith efforts If this information had been gathered over the last 20 years of the DBE program meaningful GFE standards could have been developed and could be in place today

An in-depth review of CUF standards would also provide clarity For instance it is unclear why force account items performed by certified DBEs are currently counted at only 50 of the value of the work How was this benchmark established Has it been reviewed since imposed Did it ldquosolverdquo whatever inequity WSDOT was trying to address Better clarity may lead to more expanded opportunities for certified DBE Subcontractors

Enhanced Supportive Services and Business Development Programs ndash Unless and until stronger programs of these types are shown to be effective in boosting certified DBE business development increased DBE participation due to stronger business acumen should not be relied upon when setting the new DBE goal

Does OMWBE have a reasonable expectation that future plans for enhanced and expanded programs will be more successful than those employed in the past Assuming that certified DBE Subcontractors will be better prepared to deal with the WSDOT contracting environment than in the past should not be relied upon to boost DBE participation goals Especially troubling were the multiple references within the CHA report highlighting that DBEs believe that the staff at OMWBE lack a deep knowledge about the highway construction industry (eg Study page 129 2nd paragraph) Does OMWBE have a path forward that will address this issue and thus improve supportive services impacts

Develop a Bonding and Financing Program for SBEs ndash This is completely outside of the prime contracting

communityrsquos scope of influence WSDOT must find a way to institute changes that both protect the taxpayer and help increase certified DBE bonding capacity and access to financing ndash very large hurtles To assume that these hurtles can effectively be overcome within the 2018 ndash 2020 time frame when they have been chromic issues for the past 20 plus years of DBE program development is not rational

A helpful innovation would be for WSDOT to underwrite performance and payment bonds for certified DBE firms or to create promote a system that helps certified DBE firms obtain private bonding Bridging the gap to address capital access and performance risks (bonding) must be championed by WSDOT

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 5 of 6

Base Figure Adjustment to Address Available Subcontract Volume and DBE Prime Contracts It is a fact that mid- to large-sized MBEWBE firms that compete both as Prime Contractors and as Subcontractors are not eligible to be OMWBE certified DBEs Further the current amount of contract unbundling for greater DBE access to WSDOT prime contracting (see below) accounts for a very low dollar volume of prime contracts performed by certified DBEs Finally by specification (WSDOT standard specification 1-081) Prime Contractors are obligated to perform 30 of the total volume of the work (less specialty work) or stated another way a maximum of 70 of the dollar volume on WSDOT projects is typically available to award to subcontractors These market dynamics are NOT addressed in the Disparity Study A responsible DBE goal made absent of these facts should not be implemented A reasonable adjustment to the proposed 19 DBE goal is presented below

bull The percent of WSDOT prime contracts awarded to certified DBE firms is likely less than 5 by total WSDOT

contract volume Assuming this approximation is valid (likely very conservative) then the amount of WSDOT contract work available to certified DBE firms via subcontracting should be adjusted to account for the factors outlined above The Base Figure (19) should be adjusted to recognize that a 70 maximum subcontractor participation is available (in the numerator) and to account for the assumed 5 certified DBE prime contracts in the denominator Reasonable Base Figure Adjustment 19 (proposed) x 70 subcontracts available divide 95 of Non-Certified DBEs as Prime Contract Volume = 190 x 0737 = 140 adjusted goal This is an adjustment based on the practical dynamics of the WSDOT contracting system and it represents a more realistic look at the true subcontract volume that is available for Prime Contractors to award to certified DBE firms

Conclusions

Until the items listed above are addressed and in place it is not reasonable to believe that DBE goals can be increased by nearly 163 (from 117 to 190) When the projected robust public works contracting market is appropriately considered the true availability of certified DBE Subcontractors for WSDOT contracts will be truncated due to demand across all public works sectors With multiple strong public works programs competing for a limited population of certified DBEs the ability to meet increased WSDOT DBE goals will be severely challenged Without very clear concise and transparent good faith effort rules the ability to address DBE goals that greatly overestimate true near term certified DBE capacity will result in non-attainment bid day chaos failures to perform andor rapidly increased pricing

The clear conclusion is that at this point in time under the current circumstances without effectively instituted new programs rules procedures that could enhance the certified DBE programrsquos overall effectiveness we believe that the DBE goal should remain at or near 12 As OMWBE documents and demonstrates its future successes in improving access and eliminating capacity barriers only then should the DBE goal be re-evaluated and increased

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 6 of 6

In closing please remember that it is rare that the contracting community is asked our opinion with respect to the WSDOTrsquos DBE policies and so this letter is somewhat a vehicle to highlight collective concerns It is our belief that the majority of the Prime Contractors in Washington state support the objective of creating a level playing field for ready willing and able DBEs

If the level playing field is not yet possible in the absence of the DBE program then the key is to set realistic goals that recognize reflect and address the hard realities and market dynamics imposed by WSDOTrsquos bedrock environment of awarding contracts to the lowest cost responsible and responsive Contractor

Respectfully submitted Washington Asphalt Pavement Association

David Gent Tom Gaetz Executive Director Senior Advisor

Attachment A ndash WSDOT Central Puget Sound Public Works Contracting Projection 2018 - 2022

Con

stru

ctio

n Pr

ojec

t Sta

rts

2018

-202

2S

ound

Tra

nsit

$22

6 B

SD

OT

$08

B

Tran

sit

amp O

ther

s$1

7 B

WS

DO

T$6

7 B

Por

t of

Sea

ttle

$15

B

TOTA

L$3

33

B

Source N

ov 1

9 2

017

pres

enta

tion

to W

APA

Ann

ual M

eetin

g

Attachment A

Work (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Dave Gent - WAPA [mailtodavegentasphaltwacom] Sent Thursday December 7 2017 144 PMTo Bayne Jackie ltBayneJwsdotwagovgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hi again Jackie Irsquom fine thanks and hope you are the same Interesting The Master DBE Directory is the basis for and integral to the conclusions of the DisparityStudy Is it not then part of the information needed to fully review and comment on the DisparityStudy Was it not provided by CHA to WSDOT for review We are trying to fully understand thestudy and if this directory was part of the study why would it need to be obtained by a publicrecords disclosure It should be in the public domain and not restricted from ease of access If you are sure that a public records request is needed Irsquoll start that process but we will need tonote that point of fact when we submit our public comments If you are able to reconsider please let me know Respectfully

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Thursday December 7 2017 126 PMTo Dave Gent - WAPA ltdavegentasphaltwacomgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hello Dave I hope you are doing well

That information would likely be obtained through a public disclosure request Best Regards Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Dave Gent - WAPA [mailtodavegentasphaltwacom] Sent Thursday December 7 2017 113 PMTo Bayne Jackie ltBayneJwsdotwagovgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Jackie Can you please provide an electronic file or provide a weblink for the Master DBE Directory thatColette Holt amp Associates developed for the WSDOT Disparity Study 2017 (first referred to on Page 8of the Disparity Study) I did not see a link to this Master DBE Directory within the study Thanks

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Friday October 27 2017 1118 AMTo Kenyon Wendy ltKenyonWwsdotwagovgt Adams E W ltewadamssystemsclcomgtAdekoyaAndrew ltandrewadekoyabccomgt AlyssaBalllegwagov Anindita Mitraltamitracrea-affiliatescomgt APRISeattlehotmailcom Armstrong CharlotteltCharlieAatgwagovgt Ato Apiafi Architects PLLC ltatoaatoapiaficomgt benzfanwaorgBerntsen Teresa (OMWBE) ltTeresaBomwbewagovgt Billingsley Andrealtbillinawsdotwagovgt Bramlet Erica ltEricaBramletlegwagovgt Brooks Julius

ltBrooksJwsdotwagovgt Brown Jason ltjbrownldccorpcomgt bwallacenwlaborersorgCamden Allison ltCamdenAwsdotwagovgt carlllivingstongmailcom Cerda OscarltCerdaOwsdotwagovgt Christopher Chris ltChristCwsdotwagovgt ckerneycaawagovdanplatinumbusinessgroupcom davegentasphaltwacom David BalltDavidsignsnowmillcreekcomgt Davis Khalia ltDavisKhwsdotwagovgt Davis RaShelle (GOVltrashelledavisgovwagovgt Dayton Jo ltDaytonJwsdotwagovgt ddhondtagcwacomDebbieDriverlegwagov Dennis ltdennisahlkiewitcomgt dmcleodnwlaborersorgdrart6651gmailcom Duncan Enid lthigradeincgmailcomgt EltonltEltonwashingtonstatetruckingcomgt eprincecaawagov flemosldccorpcomfmartineznwmtnmsdcorg geoffshookatkncom glovelady ltgloveladyexcelglovescomgtGrabow Katie ltkgrabowsystemsclcomgt Guilfucci Jackie ltJackieGuilfucciskanskacomgt HealyLinda ltHealyLwsdotwagovgt Higginbotham Breanne ltHigginBwsdotwagovgt HirscheyClaudia ltclaudiahirscheycomcastnetgt Holt Colette ltcoletteholtmwbelawcomgt Huff JohnltHuffJwsdotwagovgt Iniguezchawagov JacksonMaynardlegwagov Jimmy Matta(jmattaalcantarassoccom) ltjmattaalcantarassoccomgt kellywickergovwagov Key EarlltKeyEwsdotwagovgt Kirk Jon ltjkirkwhhnfscomgt Kris Purrier ltkpurrierhwageocomgtleewabuildingtradesorg lesliejonessoundtransitorg Liz Evans ltlevansagcwacomgt LopezErin lterinlopezdeswagovgt Martha Cerna ltMarthaPSLCCORGgt Martin-Arnold EdwinaltMartinEwsdotwagovgt Mary Lerdahl ltmarydbeelectricinccomgt McCarty Hannahlthannahmccartylegwagovgt Melissa L Boyles ltmelissaboylesmwbelawcomgt Metcalf KeithltMetcalKwsdotwagovgt michaelicapaawagov Michelle ltMichelleTTCC26netgt MillarRoger ltMillarRwsdotwagovgt Nakamura Jason ltjasonnakamura1-alliancecomgtNavarroLportseattleorg olliepmt-solutionscom pastorbanksesbctacomacom PatrickHughes ltphugheshughesgroupbizgt Petersen Jodi (FHWA) ltJodiPetersendotgovgtrabbottliunaorg rcarmsteadgmailcom ricemportseattleorg Riley D ltdrileylydigcomgtSeling ltSelingjpfranciscomgt sherryharrisergosynchcom Stell MellodyltStellMwsdotwagovgt terigobintulaliptribes-nsngov timwilliamfactorycom tinaterra-tdicom tkellyldccorpcom tomgaetzmsncom vcollinsacec-waorgverlenejazzmsncom Wang Albert ltWangAatgwagovgt Waugh GregltGregWMaxKuneyComgt Yates Henry ltYatesHWSDOTWAGOVgtCc Tom Gaetz lttomgaetzmsncomgt Dave Gent - WAPA ltdavegentasphaltwacomgt VanCollins ltvcollinsacec-waorggt Daniel Seydel II ltdanplatinumbusinessgroupcomgt MaynardJackson ltJacksonMaynardlegwagovgt Carl Livingston ltcarlllivingstongmailcomgt DonMcLeod ltdmcleodnwlaborersorggt JIMMY MATTA ltjimmymattamsncomgt Prince Ed(CAAA) lteprincecaawagovgt David DHondt ltddhondtagcwacomgt Irene Reyesltgloveladyexcelsupplycompanycomgt McDaniel Craig ltMcDaniCwsdotwagovgtsherryharrisergosynchcomSubject WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Good morning On Monday October 30th WSDOT will be releasing the proposed overall Federal HighwayAdministration Disadvantaged Business Enterprise goal attached for public comment throughDecember 15 2017 This overall DBE goal is based upon the recently completely DBE ProgramDisparity Study WSDOT is proposing a 19 percent overall DBE participation goal on Federal Highway

Administration-funded projects for federal fiscal years 2018 through 2020 DBE goals fortransportation projects that receive federal funds represent a percentage of the value of work inwhich minority- and women-owned businesses should participate Once finalized and submitted toFHWA early next year the goal will be effective through Sept 30 2020

The purpose of the DBE program is to create a level playing field for firms owned and operated bydisadvantaged individuals wanting to participate in federally assisted highway transit and aviationprograms The attached overall DBE goal is for FHWA funded projects WSDOT will be updating theFTA and FAA overall DBE goals in the near future

If you have any questions please contact Earl Key Director of the Office of Equal Opportunity at3607057091 or KeyEwsdotwagov Thank you Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

  • Proof-Of-Publicationpdf
    • Mediapdf
      • AGC
      • Daily Journal
      • Daily Medium
      • DBEGood
      • OMWBE
      • Seattle Medium
      • Tabor 100
      • The Chronicle
      • Tukwila
        • King County
          • Public-Comments-20180111pdf
            • 19 DBE Requirement(1)
            • AGC Comments on Proposed 10 Goad
            • Backstrom Curb amp Sidewalk
            • comments on WSDOT proposed DBE goal
            • Cowlitz County Public Works
            • DBE Contracting goals
            • DBE Goal
            • DBE Program Disparity Study
            • Disparity Study Comments from City of Spokane
            • FW_ WSDOT News - WSDOT seeks comments on propos
            • Proposed DBE Goals
            • RE_ DBE Contracting Goal Comments
            • Re_ DBE Goal Comments
            • Re_ Seydel Dan - WSDOT Disparity Study Present
            • Support for WSDOTs proposed DBE goal
            • Why we need mandatory goals
            • WSDOT DBE Goal - Comment in support
            • WSDOT Proposes DBE goal of 19
            • WSDOT propsed DBE Goals
            • WTS - Disparity Study Comment Letter

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 4 of 6

WSDOT needs to be a much better partner in the process of dealing with under-performing or non-performing certified DBE Subcontractors The current standard operational procedure places all of the exposure for non-performance onto the Prime WSDOT does not have an equitable system to account for non-performing or under-performing certified DBE Subcontractors hired as a condition of award (COA)

Performance Information and Training ndash Commercially useful function rules (CUF) and the lack of clear benchmark definitions for good faith effort (GFE) standards remain barriers for improving accountability within the DBE system and in turn lead to distorted DBE participation rates These items remain amorphous due to lack of training or lack of historic information Chronic uncertainty exists regarding both of these items Until WSDOT changes and improves its approach to provide transparency and certainty for both the prime bidding amp subcontracting parties true certified DBE capacity will continue to be masked and the resultant higher subcontracting costs associated with a distorted marketplace will continue to be hidden

WAPA respectfully suggests that simply adding an ldquoEstimated DBE Subcontract Premiumrdquo line to the current DBE bid forms would help to establish benchmarks that could begin to be used to ldquomeans testrdquo good faith efforts If this information had been gathered over the last 20 years of the DBE program meaningful GFE standards could have been developed and could be in place today

An in-depth review of CUF standards would also provide clarity For instance it is unclear why force account items performed by certified DBEs are currently counted at only 50 of the value of the work How was this benchmark established Has it been reviewed since imposed Did it ldquosolverdquo whatever inequity WSDOT was trying to address Better clarity may lead to more expanded opportunities for certified DBE Subcontractors

Enhanced Supportive Services and Business Development Programs ndash Unless and until stronger programs of these types are shown to be effective in boosting certified DBE business development increased DBE participation due to stronger business acumen should not be relied upon when setting the new DBE goal

Does OMWBE have a reasonable expectation that future plans for enhanced and expanded programs will be more successful than those employed in the past Assuming that certified DBE Subcontractors will be better prepared to deal with the WSDOT contracting environment than in the past should not be relied upon to boost DBE participation goals Especially troubling were the multiple references within the CHA report highlighting that DBEs believe that the staff at OMWBE lack a deep knowledge about the highway construction industry (eg Study page 129 2nd paragraph) Does OMWBE have a path forward that will address this issue and thus improve supportive services impacts

Develop a Bonding and Financing Program for SBEs ndash This is completely outside of the prime contracting

communityrsquos scope of influence WSDOT must find a way to institute changes that both protect the taxpayer and help increase certified DBE bonding capacity and access to financing ndash very large hurtles To assume that these hurtles can effectively be overcome within the 2018 ndash 2020 time frame when they have been chromic issues for the past 20 plus years of DBE program development is not rational

A helpful innovation would be for WSDOT to underwrite performance and payment bonds for certified DBE firms or to create promote a system that helps certified DBE firms obtain private bonding Bridging the gap to address capital access and performance risks (bonding) must be championed by WSDOT

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 5 of 6

Base Figure Adjustment to Address Available Subcontract Volume and DBE Prime Contracts It is a fact that mid- to large-sized MBEWBE firms that compete both as Prime Contractors and as Subcontractors are not eligible to be OMWBE certified DBEs Further the current amount of contract unbundling for greater DBE access to WSDOT prime contracting (see below) accounts for a very low dollar volume of prime contracts performed by certified DBEs Finally by specification (WSDOT standard specification 1-081) Prime Contractors are obligated to perform 30 of the total volume of the work (less specialty work) or stated another way a maximum of 70 of the dollar volume on WSDOT projects is typically available to award to subcontractors These market dynamics are NOT addressed in the Disparity Study A responsible DBE goal made absent of these facts should not be implemented A reasonable adjustment to the proposed 19 DBE goal is presented below

bull The percent of WSDOT prime contracts awarded to certified DBE firms is likely less than 5 by total WSDOT

contract volume Assuming this approximation is valid (likely very conservative) then the amount of WSDOT contract work available to certified DBE firms via subcontracting should be adjusted to account for the factors outlined above The Base Figure (19) should be adjusted to recognize that a 70 maximum subcontractor participation is available (in the numerator) and to account for the assumed 5 certified DBE prime contracts in the denominator Reasonable Base Figure Adjustment 19 (proposed) x 70 subcontracts available divide 95 of Non-Certified DBEs as Prime Contract Volume = 190 x 0737 = 140 adjusted goal This is an adjustment based on the practical dynamics of the WSDOT contracting system and it represents a more realistic look at the true subcontract volume that is available for Prime Contractors to award to certified DBE firms

Conclusions

Until the items listed above are addressed and in place it is not reasonable to believe that DBE goals can be increased by nearly 163 (from 117 to 190) When the projected robust public works contracting market is appropriately considered the true availability of certified DBE Subcontractors for WSDOT contracts will be truncated due to demand across all public works sectors With multiple strong public works programs competing for a limited population of certified DBEs the ability to meet increased WSDOT DBE goals will be severely challenged Without very clear concise and transparent good faith effort rules the ability to address DBE goals that greatly overestimate true near term certified DBE capacity will result in non-attainment bid day chaos failures to perform andor rapidly increased pricing

The clear conclusion is that at this point in time under the current circumstances without effectively instituted new programs rules procedures that could enhance the certified DBE programrsquos overall effectiveness we believe that the DBE goal should remain at or near 12 As OMWBE documents and demonstrates its future successes in improving access and eliminating capacity barriers only then should the DBE goal be re-evaluated and increased

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 6 of 6

In closing please remember that it is rare that the contracting community is asked our opinion with respect to the WSDOTrsquos DBE policies and so this letter is somewhat a vehicle to highlight collective concerns It is our belief that the majority of the Prime Contractors in Washington state support the objective of creating a level playing field for ready willing and able DBEs

If the level playing field is not yet possible in the absence of the DBE program then the key is to set realistic goals that recognize reflect and address the hard realities and market dynamics imposed by WSDOTrsquos bedrock environment of awarding contracts to the lowest cost responsible and responsive Contractor

Respectfully submitted Washington Asphalt Pavement Association

David Gent Tom Gaetz Executive Director Senior Advisor

Attachment A ndash WSDOT Central Puget Sound Public Works Contracting Projection 2018 - 2022

Con

stru

ctio

n Pr

ojec

t Sta

rts

2018

-202

2S

ound

Tra

nsit

$22

6 B

SD

OT

$08

B

Tran

sit

amp O

ther

s$1

7 B

WS

DO

T$6

7 B

Por

t of

Sea

ttle

$15

B

TOTA

L$3

33

B

Source N

ov 1

9 2

017

pres

enta

tion

to W

APA

Ann

ual M

eetin

g

Attachment A

Work (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Dave Gent - WAPA [mailtodavegentasphaltwacom] Sent Thursday December 7 2017 144 PMTo Bayne Jackie ltBayneJwsdotwagovgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hi again Jackie Irsquom fine thanks and hope you are the same Interesting The Master DBE Directory is the basis for and integral to the conclusions of the DisparityStudy Is it not then part of the information needed to fully review and comment on the DisparityStudy Was it not provided by CHA to WSDOT for review We are trying to fully understand thestudy and if this directory was part of the study why would it need to be obtained by a publicrecords disclosure It should be in the public domain and not restricted from ease of access If you are sure that a public records request is needed Irsquoll start that process but we will need tonote that point of fact when we submit our public comments If you are able to reconsider please let me know Respectfully

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Thursday December 7 2017 126 PMTo Dave Gent - WAPA ltdavegentasphaltwacomgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hello Dave I hope you are doing well

That information would likely be obtained through a public disclosure request Best Regards Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Dave Gent - WAPA [mailtodavegentasphaltwacom] Sent Thursday December 7 2017 113 PMTo Bayne Jackie ltBayneJwsdotwagovgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Jackie Can you please provide an electronic file or provide a weblink for the Master DBE Directory thatColette Holt amp Associates developed for the WSDOT Disparity Study 2017 (first referred to on Page 8of the Disparity Study) I did not see a link to this Master DBE Directory within the study Thanks

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Friday October 27 2017 1118 AMTo Kenyon Wendy ltKenyonWwsdotwagovgt Adams E W ltewadamssystemsclcomgtAdekoyaAndrew ltandrewadekoyabccomgt AlyssaBalllegwagov Anindita Mitraltamitracrea-affiliatescomgt APRISeattlehotmailcom Armstrong CharlotteltCharlieAatgwagovgt Ato Apiafi Architects PLLC ltatoaatoapiaficomgt benzfanwaorgBerntsen Teresa (OMWBE) ltTeresaBomwbewagovgt Billingsley Andrealtbillinawsdotwagovgt Bramlet Erica ltEricaBramletlegwagovgt Brooks Julius

ltBrooksJwsdotwagovgt Brown Jason ltjbrownldccorpcomgt bwallacenwlaborersorgCamden Allison ltCamdenAwsdotwagovgt carlllivingstongmailcom Cerda OscarltCerdaOwsdotwagovgt Christopher Chris ltChristCwsdotwagovgt ckerneycaawagovdanplatinumbusinessgroupcom davegentasphaltwacom David BalltDavidsignsnowmillcreekcomgt Davis Khalia ltDavisKhwsdotwagovgt Davis RaShelle (GOVltrashelledavisgovwagovgt Dayton Jo ltDaytonJwsdotwagovgt ddhondtagcwacomDebbieDriverlegwagov Dennis ltdennisahlkiewitcomgt dmcleodnwlaborersorgdrart6651gmailcom Duncan Enid lthigradeincgmailcomgt EltonltEltonwashingtonstatetruckingcomgt eprincecaawagov flemosldccorpcomfmartineznwmtnmsdcorg geoffshookatkncom glovelady ltgloveladyexcelglovescomgtGrabow Katie ltkgrabowsystemsclcomgt Guilfucci Jackie ltJackieGuilfucciskanskacomgt HealyLinda ltHealyLwsdotwagovgt Higginbotham Breanne ltHigginBwsdotwagovgt HirscheyClaudia ltclaudiahirscheycomcastnetgt Holt Colette ltcoletteholtmwbelawcomgt Huff JohnltHuffJwsdotwagovgt Iniguezchawagov JacksonMaynardlegwagov Jimmy Matta(jmattaalcantarassoccom) ltjmattaalcantarassoccomgt kellywickergovwagov Key EarlltKeyEwsdotwagovgt Kirk Jon ltjkirkwhhnfscomgt Kris Purrier ltkpurrierhwageocomgtleewabuildingtradesorg lesliejonessoundtransitorg Liz Evans ltlevansagcwacomgt LopezErin lterinlopezdeswagovgt Martha Cerna ltMarthaPSLCCORGgt Martin-Arnold EdwinaltMartinEwsdotwagovgt Mary Lerdahl ltmarydbeelectricinccomgt McCarty Hannahlthannahmccartylegwagovgt Melissa L Boyles ltmelissaboylesmwbelawcomgt Metcalf KeithltMetcalKwsdotwagovgt michaelicapaawagov Michelle ltMichelleTTCC26netgt MillarRoger ltMillarRwsdotwagovgt Nakamura Jason ltjasonnakamura1-alliancecomgtNavarroLportseattleorg olliepmt-solutionscom pastorbanksesbctacomacom PatrickHughes ltphugheshughesgroupbizgt Petersen Jodi (FHWA) ltJodiPetersendotgovgtrabbottliunaorg rcarmsteadgmailcom ricemportseattleorg Riley D ltdrileylydigcomgtSeling ltSelingjpfranciscomgt sherryharrisergosynchcom Stell MellodyltStellMwsdotwagovgt terigobintulaliptribes-nsngov timwilliamfactorycom tinaterra-tdicom tkellyldccorpcom tomgaetzmsncom vcollinsacec-waorgverlenejazzmsncom Wang Albert ltWangAatgwagovgt Waugh GregltGregWMaxKuneyComgt Yates Henry ltYatesHWSDOTWAGOVgtCc Tom Gaetz lttomgaetzmsncomgt Dave Gent - WAPA ltdavegentasphaltwacomgt VanCollins ltvcollinsacec-waorggt Daniel Seydel II ltdanplatinumbusinessgroupcomgt MaynardJackson ltJacksonMaynardlegwagovgt Carl Livingston ltcarlllivingstongmailcomgt DonMcLeod ltdmcleodnwlaborersorggt JIMMY MATTA ltjimmymattamsncomgt Prince Ed(CAAA) lteprincecaawagovgt David DHondt ltddhondtagcwacomgt Irene Reyesltgloveladyexcelsupplycompanycomgt McDaniel Craig ltMcDaniCwsdotwagovgtsherryharrisergosynchcomSubject WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Good morning On Monday October 30th WSDOT will be releasing the proposed overall Federal HighwayAdministration Disadvantaged Business Enterprise goal attached for public comment throughDecember 15 2017 This overall DBE goal is based upon the recently completely DBE ProgramDisparity Study WSDOT is proposing a 19 percent overall DBE participation goal on Federal Highway

Administration-funded projects for federal fiscal years 2018 through 2020 DBE goals fortransportation projects that receive federal funds represent a percentage of the value of work inwhich minority- and women-owned businesses should participate Once finalized and submitted toFHWA early next year the goal will be effective through Sept 30 2020

The purpose of the DBE program is to create a level playing field for firms owned and operated bydisadvantaged individuals wanting to participate in federally assisted highway transit and aviationprograms The attached overall DBE goal is for FHWA funded projects WSDOT will be updating theFTA and FAA overall DBE goals in the near future

If you have any questions please contact Earl Key Director of the Office of Equal Opportunity at3607057091 or KeyEwsdotwagov Thank you Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

  • Proof-Of-Publicationpdf
    • Mediapdf
      • AGC
      • Daily Journal
      • Daily Medium
      • DBEGood
      • OMWBE
      • Seattle Medium
      • Tabor 100
      • The Chronicle
      • Tukwila
        • King County
          • Public-Comments-20180111pdf
            • 19 DBE Requirement(1)
            • AGC Comments on Proposed 10 Goad
            • Backstrom Curb amp Sidewalk
            • comments on WSDOT proposed DBE goal
            • Cowlitz County Public Works
            • DBE Contracting goals
            • DBE Goal
            • DBE Program Disparity Study
            • Disparity Study Comments from City of Spokane
            • FW_ WSDOT News - WSDOT seeks comments on propos
            • Proposed DBE Goals
            • RE_ DBE Contracting Goal Comments
            • Re_ DBE Goal Comments
            • Re_ Seydel Dan - WSDOT Disparity Study Present
            • Support for WSDOTs proposed DBE goal
            • Why we need mandatory goals
            • WSDOT DBE Goal - Comment in support
            • WSDOT Proposes DBE goal of 19
            • WSDOT propsed DBE Goals
            • WTS - Disparity Study Comment Letter

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 5 of 6

Base Figure Adjustment to Address Available Subcontract Volume and DBE Prime Contracts It is a fact that mid- to large-sized MBEWBE firms that compete both as Prime Contractors and as Subcontractors are not eligible to be OMWBE certified DBEs Further the current amount of contract unbundling for greater DBE access to WSDOT prime contracting (see below) accounts for a very low dollar volume of prime contracts performed by certified DBEs Finally by specification (WSDOT standard specification 1-081) Prime Contractors are obligated to perform 30 of the total volume of the work (less specialty work) or stated another way a maximum of 70 of the dollar volume on WSDOT projects is typically available to award to subcontractors These market dynamics are NOT addressed in the Disparity Study A responsible DBE goal made absent of these facts should not be implemented A reasonable adjustment to the proposed 19 DBE goal is presented below

bull The percent of WSDOT prime contracts awarded to certified DBE firms is likely less than 5 by total WSDOT

contract volume Assuming this approximation is valid (likely very conservative) then the amount of WSDOT contract work available to certified DBE firms via subcontracting should be adjusted to account for the factors outlined above The Base Figure (19) should be adjusted to recognize that a 70 maximum subcontractor participation is available (in the numerator) and to account for the assumed 5 certified DBE prime contracts in the denominator Reasonable Base Figure Adjustment 19 (proposed) x 70 subcontracts available divide 95 of Non-Certified DBEs as Prime Contract Volume = 190 x 0737 = 140 adjusted goal This is an adjustment based on the practical dynamics of the WSDOT contracting system and it represents a more realistic look at the true subcontract volume that is available for Prime Contractors to award to certified DBE firms

Conclusions

Until the items listed above are addressed and in place it is not reasonable to believe that DBE goals can be increased by nearly 163 (from 117 to 190) When the projected robust public works contracting market is appropriately considered the true availability of certified DBE Subcontractors for WSDOT contracts will be truncated due to demand across all public works sectors With multiple strong public works programs competing for a limited population of certified DBEs the ability to meet increased WSDOT DBE goals will be severely challenged Without very clear concise and transparent good faith effort rules the ability to address DBE goals that greatly overestimate true near term certified DBE capacity will result in non-attainment bid day chaos failures to perform andor rapidly increased pricing

The clear conclusion is that at this point in time under the current circumstances without effectively instituted new programs rules procedures that could enhance the certified DBE programrsquos overall effectiveness we believe that the DBE goal should remain at or near 12 As OMWBE documents and demonstrates its future successes in improving access and eliminating capacity barriers only then should the DBE goal be re-evaluated and increased

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 6 of 6

In closing please remember that it is rare that the contracting community is asked our opinion with respect to the WSDOTrsquos DBE policies and so this letter is somewhat a vehicle to highlight collective concerns It is our belief that the majority of the Prime Contractors in Washington state support the objective of creating a level playing field for ready willing and able DBEs

If the level playing field is not yet possible in the absence of the DBE program then the key is to set realistic goals that recognize reflect and address the hard realities and market dynamics imposed by WSDOTrsquos bedrock environment of awarding contracts to the lowest cost responsible and responsive Contractor

Respectfully submitted Washington Asphalt Pavement Association

David Gent Tom Gaetz Executive Director Senior Advisor

Attachment A ndash WSDOT Central Puget Sound Public Works Contracting Projection 2018 - 2022

Con

stru

ctio

n Pr

ojec

t Sta

rts

2018

-202

2S

ound

Tra

nsit

$22

6 B

SD

OT

$08

B

Tran

sit

amp O

ther

s$1

7 B

WS

DO

T$6

7 B

Por

t of

Sea

ttle

$15

B

TOTA

L$3

33

B

Source N

ov 1

9 2

017

pres

enta

tion

to W

APA

Ann

ual M

eetin

g

Attachment A

Work (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Dave Gent - WAPA [mailtodavegentasphaltwacom] Sent Thursday December 7 2017 144 PMTo Bayne Jackie ltBayneJwsdotwagovgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hi again Jackie Irsquom fine thanks and hope you are the same Interesting The Master DBE Directory is the basis for and integral to the conclusions of the DisparityStudy Is it not then part of the information needed to fully review and comment on the DisparityStudy Was it not provided by CHA to WSDOT for review We are trying to fully understand thestudy and if this directory was part of the study why would it need to be obtained by a publicrecords disclosure It should be in the public domain and not restricted from ease of access If you are sure that a public records request is needed Irsquoll start that process but we will need tonote that point of fact when we submit our public comments If you are able to reconsider please let me know Respectfully

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Thursday December 7 2017 126 PMTo Dave Gent - WAPA ltdavegentasphaltwacomgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hello Dave I hope you are doing well

That information would likely be obtained through a public disclosure request Best Regards Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Dave Gent - WAPA [mailtodavegentasphaltwacom] Sent Thursday December 7 2017 113 PMTo Bayne Jackie ltBayneJwsdotwagovgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Jackie Can you please provide an electronic file or provide a weblink for the Master DBE Directory thatColette Holt amp Associates developed for the WSDOT Disparity Study 2017 (first referred to on Page 8of the Disparity Study) I did not see a link to this Master DBE Directory within the study Thanks

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Friday October 27 2017 1118 AMTo Kenyon Wendy ltKenyonWwsdotwagovgt Adams E W ltewadamssystemsclcomgtAdekoyaAndrew ltandrewadekoyabccomgt AlyssaBalllegwagov Anindita Mitraltamitracrea-affiliatescomgt APRISeattlehotmailcom Armstrong CharlotteltCharlieAatgwagovgt Ato Apiafi Architects PLLC ltatoaatoapiaficomgt benzfanwaorgBerntsen Teresa (OMWBE) ltTeresaBomwbewagovgt Billingsley Andrealtbillinawsdotwagovgt Bramlet Erica ltEricaBramletlegwagovgt Brooks Julius

ltBrooksJwsdotwagovgt Brown Jason ltjbrownldccorpcomgt bwallacenwlaborersorgCamden Allison ltCamdenAwsdotwagovgt carlllivingstongmailcom Cerda OscarltCerdaOwsdotwagovgt Christopher Chris ltChristCwsdotwagovgt ckerneycaawagovdanplatinumbusinessgroupcom davegentasphaltwacom David BalltDavidsignsnowmillcreekcomgt Davis Khalia ltDavisKhwsdotwagovgt Davis RaShelle (GOVltrashelledavisgovwagovgt Dayton Jo ltDaytonJwsdotwagovgt ddhondtagcwacomDebbieDriverlegwagov Dennis ltdennisahlkiewitcomgt dmcleodnwlaborersorgdrart6651gmailcom Duncan Enid lthigradeincgmailcomgt EltonltEltonwashingtonstatetruckingcomgt eprincecaawagov flemosldccorpcomfmartineznwmtnmsdcorg geoffshookatkncom glovelady ltgloveladyexcelglovescomgtGrabow Katie ltkgrabowsystemsclcomgt Guilfucci Jackie ltJackieGuilfucciskanskacomgt HealyLinda ltHealyLwsdotwagovgt Higginbotham Breanne ltHigginBwsdotwagovgt HirscheyClaudia ltclaudiahirscheycomcastnetgt Holt Colette ltcoletteholtmwbelawcomgt Huff JohnltHuffJwsdotwagovgt Iniguezchawagov JacksonMaynardlegwagov Jimmy Matta(jmattaalcantarassoccom) ltjmattaalcantarassoccomgt kellywickergovwagov Key EarlltKeyEwsdotwagovgt Kirk Jon ltjkirkwhhnfscomgt Kris Purrier ltkpurrierhwageocomgtleewabuildingtradesorg lesliejonessoundtransitorg Liz Evans ltlevansagcwacomgt LopezErin lterinlopezdeswagovgt Martha Cerna ltMarthaPSLCCORGgt Martin-Arnold EdwinaltMartinEwsdotwagovgt Mary Lerdahl ltmarydbeelectricinccomgt McCarty Hannahlthannahmccartylegwagovgt Melissa L Boyles ltmelissaboylesmwbelawcomgt Metcalf KeithltMetcalKwsdotwagovgt michaelicapaawagov Michelle ltMichelleTTCC26netgt MillarRoger ltMillarRwsdotwagovgt Nakamura Jason ltjasonnakamura1-alliancecomgtNavarroLportseattleorg olliepmt-solutionscom pastorbanksesbctacomacom PatrickHughes ltphugheshughesgroupbizgt Petersen Jodi (FHWA) ltJodiPetersendotgovgtrabbottliunaorg rcarmsteadgmailcom ricemportseattleorg Riley D ltdrileylydigcomgtSeling ltSelingjpfranciscomgt sherryharrisergosynchcom Stell MellodyltStellMwsdotwagovgt terigobintulaliptribes-nsngov timwilliamfactorycom tinaterra-tdicom tkellyldccorpcom tomgaetzmsncom vcollinsacec-waorgverlenejazzmsncom Wang Albert ltWangAatgwagovgt Waugh GregltGregWMaxKuneyComgt Yates Henry ltYatesHWSDOTWAGOVgtCc Tom Gaetz lttomgaetzmsncomgt Dave Gent - WAPA ltdavegentasphaltwacomgt VanCollins ltvcollinsacec-waorggt Daniel Seydel II ltdanplatinumbusinessgroupcomgt MaynardJackson ltJacksonMaynardlegwagovgt Carl Livingston ltcarlllivingstongmailcomgt DonMcLeod ltdmcleodnwlaborersorggt JIMMY MATTA ltjimmymattamsncomgt Prince Ed(CAAA) lteprincecaawagovgt David DHondt ltddhondtagcwacomgt Irene Reyesltgloveladyexcelsupplycompanycomgt McDaniel Craig ltMcDaniCwsdotwagovgtsherryharrisergosynchcomSubject WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Good morning On Monday October 30th WSDOT will be releasing the proposed overall Federal HighwayAdministration Disadvantaged Business Enterprise goal attached for public comment throughDecember 15 2017 This overall DBE goal is based upon the recently completely DBE ProgramDisparity Study WSDOT is proposing a 19 percent overall DBE participation goal on Federal Highway

Administration-funded projects for federal fiscal years 2018 through 2020 DBE goals fortransportation projects that receive federal funds represent a percentage of the value of work inwhich minority- and women-owned businesses should participate Once finalized and submitted toFHWA early next year the goal will be effective through Sept 30 2020

The purpose of the DBE program is to create a level playing field for firms owned and operated bydisadvantaged individuals wanting to participate in federally assisted highway transit and aviationprograms The attached overall DBE goal is for FHWA funded projects WSDOT will be updating theFTA and FAA overall DBE goals in the near future

If you have any questions please contact Earl Key Director of the Office of Equal Opportunity at3607057091 or KeyEwsdotwagov Thank you Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

  • Proof-Of-Publicationpdf
    • Mediapdf
      • AGC
      • Daily Journal
      • Daily Medium
      • DBEGood
      • OMWBE
      • Seattle Medium
      • Tabor 100
      • The Chronicle
      • Tukwila
        • King County
          • Public-Comments-20180111pdf
            • 19 DBE Requirement(1)
            • AGC Comments on Proposed 10 Goad
            • Backstrom Curb amp Sidewalk
            • comments on WSDOT proposed DBE goal
            • Cowlitz County Public Works
            • DBE Contracting goals
            • DBE Goal
            • DBE Program Disparity Study
            • Disparity Study Comments from City of Spokane
            • FW_ WSDOT News - WSDOT seeks comments on propos
            • Proposed DBE Goals
            • RE_ DBE Contracting Goal Comments
            • Re_ DBE Goal Comments
            • Re_ Seydel Dan - WSDOT Disparity Study Present
            • Support for WSDOTs proposed DBE goal
            • Why we need mandatory goals
            • WSDOT DBE Goal - Comment in support
            • WSDOT Proposes DBE goal of 19
            • WSDOT propsed DBE Goals
            • WTS - Disparity Study Comment Letter

Washington Asphalt Pavement Association 451 SW 10th Street Suite 110A

Renton WA 98057 (425) 207-8814 Fax (425) 970-3178

WSDOT Office of Equal Opportunity WAPA Public Comment RE Proposed December 15 2017 DBE Goal for the FHWA Page 6 of 6

In closing please remember that it is rare that the contracting community is asked our opinion with respect to the WSDOTrsquos DBE policies and so this letter is somewhat a vehicle to highlight collective concerns It is our belief that the majority of the Prime Contractors in Washington state support the objective of creating a level playing field for ready willing and able DBEs

If the level playing field is not yet possible in the absence of the DBE program then the key is to set realistic goals that recognize reflect and address the hard realities and market dynamics imposed by WSDOTrsquos bedrock environment of awarding contracts to the lowest cost responsible and responsive Contractor

Respectfully submitted Washington Asphalt Pavement Association

David Gent Tom Gaetz Executive Director Senior Advisor

Attachment A ndash WSDOT Central Puget Sound Public Works Contracting Projection 2018 - 2022

Con

stru

ctio

n Pr

ojec

t Sta

rts

2018

-202

2S

ound

Tra

nsit

$22

6 B

SD

OT

$08

B

Tran

sit

amp O

ther

s$1

7 B

WS

DO

T$6

7 B

Por

t of

Sea

ttle

$15

B

TOTA

L$3

33

B

Source N

ov 1

9 2

017

pres

enta

tion

to W

APA

Ann

ual M

eetin

g

Attachment A

Work (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Dave Gent - WAPA [mailtodavegentasphaltwacom] Sent Thursday December 7 2017 144 PMTo Bayne Jackie ltBayneJwsdotwagovgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hi again Jackie Irsquom fine thanks and hope you are the same Interesting The Master DBE Directory is the basis for and integral to the conclusions of the DisparityStudy Is it not then part of the information needed to fully review and comment on the DisparityStudy Was it not provided by CHA to WSDOT for review We are trying to fully understand thestudy and if this directory was part of the study why would it need to be obtained by a publicrecords disclosure It should be in the public domain and not restricted from ease of access If you are sure that a public records request is needed Irsquoll start that process but we will need tonote that point of fact when we submit our public comments If you are able to reconsider please let me know Respectfully

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Thursday December 7 2017 126 PMTo Dave Gent - WAPA ltdavegentasphaltwacomgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hello Dave I hope you are doing well

That information would likely be obtained through a public disclosure request Best Regards Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Dave Gent - WAPA [mailtodavegentasphaltwacom] Sent Thursday December 7 2017 113 PMTo Bayne Jackie ltBayneJwsdotwagovgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Jackie Can you please provide an electronic file or provide a weblink for the Master DBE Directory thatColette Holt amp Associates developed for the WSDOT Disparity Study 2017 (first referred to on Page 8of the Disparity Study) I did not see a link to this Master DBE Directory within the study Thanks

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Friday October 27 2017 1118 AMTo Kenyon Wendy ltKenyonWwsdotwagovgt Adams E W ltewadamssystemsclcomgtAdekoyaAndrew ltandrewadekoyabccomgt AlyssaBalllegwagov Anindita Mitraltamitracrea-affiliatescomgt APRISeattlehotmailcom Armstrong CharlotteltCharlieAatgwagovgt Ato Apiafi Architects PLLC ltatoaatoapiaficomgt benzfanwaorgBerntsen Teresa (OMWBE) ltTeresaBomwbewagovgt Billingsley Andrealtbillinawsdotwagovgt Bramlet Erica ltEricaBramletlegwagovgt Brooks Julius

ltBrooksJwsdotwagovgt Brown Jason ltjbrownldccorpcomgt bwallacenwlaborersorgCamden Allison ltCamdenAwsdotwagovgt carlllivingstongmailcom Cerda OscarltCerdaOwsdotwagovgt Christopher Chris ltChristCwsdotwagovgt ckerneycaawagovdanplatinumbusinessgroupcom davegentasphaltwacom David BalltDavidsignsnowmillcreekcomgt Davis Khalia ltDavisKhwsdotwagovgt Davis RaShelle (GOVltrashelledavisgovwagovgt Dayton Jo ltDaytonJwsdotwagovgt ddhondtagcwacomDebbieDriverlegwagov Dennis ltdennisahlkiewitcomgt dmcleodnwlaborersorgdrart6651gmailcom Duncan Enid lthigradeincgmailcomgt EltonltEltonwashingtonstatetruckingcomgt eprincecaawagov flemosldccorpcomfmartineznwmtnmsdcorg geoffshookatkncom glovelady ltgloveladyexcelglovescomgtGrabow Katie ltkgrabowsystemsclcomgt Guilfucci Jackie ltJackieGuilfucciskanskacomgt HealyLinda ltHealyLwsdotwagovgt Higginbotham Breanne ltHigginBwsdotwagovgt HirscheyClaudia ltclaudiahirscheycomcastnetgt Holt Colette ltcoletteholtmwbelawcomgt Huff JohnltHuffJwsdotwagovgt Iniguezchawagov JacksonMaynardlegwagov Jimmy Matta(jmattaalcantarassoccom) ltjmattaalcantarassoccomgt kellywickergovwagov Key EarlltKeyEwsdotwagovgt Kirk Jon ltjkirkwhhnfscomgt Kris Purrier ltkpurrierhwageocomgtleewabuildingtradesorg lesliejonessoundtransitorg Liz Evans ltlevansagcwacomgt LopezErin lterinlopezdeswagovgt Martha Cerna ltMarthaPSLCCORGgt Martin-Arnold EdwinaltMartinEwsdotwagovgt Mary Lerdahl ltmarydbeelectricinccomgt McCarty Hannahlthannahmccartylegwagovgt Melissa L Boyles ltmelissaboylesmwbelawcomgt Metcalf KeithltMetcalKwsdotwagovgt michaelicapaawagov Michelle ltMichelleTTCC26netgt MillarRoger ltMillarRwsdotwagovgt Nakamura Jason ltjasonnakamura1-alliancecomgtNavarroLportseattleorg olliepmt-solutionscom pastorbanksesbctacomacom PatrickHughes ltphugheshughesgroupbizgt Petersen Jodi (FHWA) ltJodiPetersendotgovgtrabbottliunaorg rcarmsteadgmailcom ricemportseattleorg Riley D ltdrileylydigcomgtSeling ltSelingjpfranciscomgt sherryharrisergosynchcom Stell MellodyltStellMwsdotwagovgt terigobintulaliptribes-nsngov timwilliamfactorycom tinaterra-tdicom tkellyldccorpcom tomgaetzmsncom vcollinsacec-waorgverlenejazzmsncom Wang Albert ltWangAatgwagovgt Waugh GregltGregWMaxKuneyComgt Yates Henry ltYatesHWSDOTWAGOVgtCc Tom Gaetz lttomgaetzmsncomgt Dave Gent - WAPA ltdavegentasphaltwacomgt VanCollins ltvcollinsacec-waorggt Daniel Seydel II ltdanplatinumbusinessgroupcomgt MaynardJackson ltJacksonMaynardlegwagovgt Carl Livingston ltcarlllivingstongmailcomgt DonMcLeod ltdmcleodnwlaborersorggt JIMMY MATTA ltjimmymattamsncomgt Prince Ed(CAAA) lteprincecaawagovgt David DHondt ltddhondtagcwacomgt Irene Reyesltgloveladyexcelsupplycompanycomgt McDaniel Craig ltMcDaniCwsdotwagovgtsherryharrisergosynchcomSubject WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Good morning On Monday October 30th WSDOT will be releasing the proposed overall Federal HighwayAdministration Disadvantaged Business Enterprise goal attached for public comment throughDecember 15 2017 This overall DBE goal is based upon the recently completely DBE ProgramDisparity Study WSDOT is proposing a 19 percent overall DBE participation goal on Federal Highway

Administration-funded projects for federal fiscal years 2018 through 2020 DBE goals fortransportation projects that receive federal funds represent a percentage of the value of work inwhich minority- and women-owned businesses should participate Once finalized and submitted toFHWA early next year the goal will be effective through Sept 30 2020

The purpose of the DBE program is to create a level playing field for firms owned and operated bydisadvantaged individuals wanting to participate in federally assisted highway transit and aviationprograms The attached overall DBE goal is for FHWA funded projects WSDOT will be updating theFTA and FAA overall DBE goals in the near future

If you have any questions please contact Earl Key Director of the Office of Equal Opportunity at3607057091 or KeyEwsdotwagov Thank you Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

  • Proof-Of-Publicationpdf
    • Mediapdf
      • AGC
      • Daily Journal
      • Daily Medium
      • DBEGood
      • OMWBE
      • Seattle Medium
      • Tabor 100
      • The Chronicle
      • Tukwila
        • King County
          • Public-Comments-20180111pdf
            • 19 DBE Requirement(1)
            • AGC Comments on Proposed 10 Goad
            • Backstrom Curb amp Sidewalk
            • comments on WSDOT proposed DBE goal
            • Cowlitz County Public Works
            • DBE Contracting goals
            • DBE Goal
            • DBE Program Disparity Study
            • Disparity Study Comments from City of Spokane
            • FW_ WSDOT News - WSDOT seeks comments on propos
            • Proposed DBE Goals
            • RE_ DBE Contracting Goal Comments
            • Re_ DBE Goal Comments
            • Re_ Seydel Dan - WSDOT Disparity Study Present
            • Support for WSDOTs proposed DBE goal
            • Why we need mandatory goals
            • WSDOT DBE Goal - Comment in support
            • WSDOT Proposes DBE goal of 19
            • WSDOT propsed DBE Goals
            • WTS - Disparity Study Comment Letter

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Work (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Dave Gent - WAPA [mailtodavegentasphaltwacom] Sent Thursday December 7 2017 144 PMTo Bayne Jackie ltBayneJwsdotwagovgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hi again Jackie Irsquom fine thanks and hope you are the same Interesting The Master DBE Directory is the basis for and integral to the conclusions of the DisparityStudy Is it not then part of the information needed to fully review and comment on the DisparityStudy Was it not provided by CHA to WSDOT for review We are trying to fully understand thestudy and if this directory was part of the study why would it need to be obtained by a publicrecords disclosure It should be in the public domain and not restricted from ease of access If you are sure that a public records request is needed Irsquoll start that process but we will need tonote that point of fact when we submit our public comments If you are able to reconsider please let me know Respectfully

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Thursday December 7 2017 126 PMTo Dave Gent - WAPA ltdavegentasphaltwacomgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hello Dave I hope you are doing well

That information would likely be obtained through a public disclosure request Best Regards Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Dave Gent - WAPA [mailtodavegentasphaltwacom] Sent Thursday December 7 2017 113 PMTo Bayne Jackie ltBayneJwsdotwagovgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Jackie Can you please provide an electronic file or provide a weblink for the Master DBE Directory thatColette Holt amp Associates developed for the WSDOT Disparity Study 2017 (first referred to on Page 8of the Disparity Study) I did not see a link to this Master DBE Directory within the study Thanks

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Friday October 27 2017 1118 AMTo Kenyon Wendy ltKenyonWwsdotwagovgt Adams E W ltewadamssystemsclcomgtAdekoyaAndrew ltandrewadekoyabccomgt AlyssaBalllegwagov Anindita Mitraltamitracrea-affiliatescomgt APRISeattlehotmailcom Armstrong CharlotteltCharlieAatgwagovgt Ato Apiafi Architects PLLC ltatoaatoapiaficomgt benzfanwaorgBerntsen Teresa (OMWBE) ltTeresaBomwbewagovgt Billingsley Andrealtbillinawsdotwagovgt Bramlet Erica ltEricaBramletlegwagovgt Brooks Julius

ltBrooksJwsdotwagovgt Brown Jason ltjbrownldccorpcomgt bwallacenwlaborersorgCamden Allison ltCamdenAwsdotwagovgt carlllivingstongmailcom Cerda OscarltCerdaOwsdotwagovgt Christopher Chris ltChristCwsdotwagovgt ckerneycaawagovdanplatinumbusinessgroupcom davegentasphaltwacom David BalltDavidsignsnowmillcreekcomgt Davis Khalia ltDavisKhwsdotwagovgt Davis RaShelle (GOVltrashelledavisgovwagovgt Dayton Jo ltDaytonJwsdotwagovgt ddhondtagcwacomDebbieDriverlegwagov Dennis ltdennisahlkiewitcomgt dmcleodnwlaborersorgdrart6651gmailcom Duncan Enid lthigradeincgmailcomgt EltonltEltonwashingtonstatetruckingcomgt eprincecaawagov flemosldccorpcomfmartineznwmtnmsdcorg geoffshookatkncom glovelady ltgloveladyexcelglovescomgtGrabow Katie ltkgrabowsystemsclcomgt Guilfucci Jackie ltJackieGuilfucciskanskacomgt HealyLinda ltHealyLwsdotwagovgt Higginbotham Breanne ltHigginBwsdotwagovgt HirscheyClaudia ltclaudiahirscheycomcastnetgt Holt Colette ltcoletteholtmwbelawcomgt Huff JohnltHuffJwsdotwagovgt Iniguezchawagov JacksonMaynardlegwagov Jimmy Matta(jmattaalcantarassoccom) ltjmattaalcantarassoccomgt kellywickergovwagov Key EarlltKeyEwsdotwagovgt Kirk Jon ltjkirkwhhnfscomgt Kris Purrier ltkpurrierhwageocomgtleewabuildingtradesorg lesliejonessoundtransitorg Liz Evans ltlevansagcwacomgt LopezErin lterinlopezdeswagovgt Martha Cerna ltMarthaPSLCCORGgt Martin-Arnold EdwinaltMartinEwsdotwagovgt Mary Lerdahl ltmarydbeelectricinccomgt McCarty Hannahlthannahmccartylegwagovgt Melissa L Boyles ltmelissaboylesmwbelawcomgt Metcalf KeithltMetcalKwsdotwagovgt michaelicapaawagov Michelle ltMichelleTTCC26netgt MillarRoger ltMillarRwsdotwagovgt Nakamura Jason ltjasonnakamura1-alliancecomgtNavarroLportseattleorg olliepmt-solutionscom pastorbanksesbctacomacom PatrickHughes ltphugheshughesgroupbizgt Petersen Jodi (FHWA) ltJodiPetersendotgovgtrabbottliunaorg rcarmsteadgmailcom ricemportseattleorg Riley D ltdrileylydigcomgtSeling ltSelingjpfranciscomgt sherryharrisergosynchcom Stell MellodyltStellMwsdotwagovgt terigobintulaliptribes-nsngov timwilliamfactorycom tinaterra-tdicom tkellyldccorpcom tomgaetzmsncom vcollinsacec-waorgverlenejazzmsncom Wang Albert ltWangAatgwagovgt Waugh GregltGregWMaxKuneyComgt Yates Henry ltYatesHWSDOTWAGOVgtCc Tom Gaetz lttomgaetzmsncomgt Dave Gent - WAPA ltdavegentasphaltwacomgt VanCollins ltvcollinsacec-waorggt Daniel Seydel II ltdanplatinumbusinessgroupcomgt MaynardJackson ltJacksonMaynardlegwagovgt Carl Livingston ltcarlllivingstongmailcomgt DonMcLeod ltdmcleodnwlaborersorggt JIMMY MATTA ltjimmymattamsncomgt Prince Ed(CAAA) lteprincecaawagovgt David DHondt ltddhondtagcwacomgt Irene Reyesltgloveladyexcelsupplycompanycomgt McDaniel Craig ltMcDaniCwsdotwagovgtsherryharrisergosynchcomSubject WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Good morning On Monday October 30th WSDOT will be releasing the proposed overall Federal HighwayAdministration Disadvantaged Business Enterprise goal attached for public comment throughDecember 15 2017 This overall DBE goal is based upon the recently completely DBE ProgramDisparity Study WSDOT is proposing a 19 percent overall DBE participation goal on Federal Highway

Administration-funded projects for federal fiscal years 2018 through 2020 DBE goals fortransportation projects that receive federal funds represent a percentage of the value of work inwhich minority- and women-owned businesses should participate Once finalized and submitted toFHWA early next year the goal will be effective through Sept 30 2020

The purpose of the DBE program is to create a level playing field for firms owned and operated bydisadvantaged individuals wanting to participate in federally assisted highway transit and aviationprograms The attached overall DBE goal is for FHWA funded projects WSDOT will be updating theFTA and FAA overall DBE goals in the near future

If you have any questions please contact Earl Key Director of the Office of Equal Opportunity at3607057091 or KeyEwsdotwagov Thank you Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

  • Proof-Of-Publicationpdf
    • Mediapdf
      • AGC
      • Daily Journal
      • Daily Medium
      • DBEGood
      • OMWBE
      • Seattle Medium
      • Tabor 100
      • The Chronicle
      • Tukwila
        • King County
          • Public-Comments-20180111pdf
            • 19 DBE Requirement(1)
            • AGC Comments on Proposed 10 Goad
            • Backstrom Curb amp Sidewalk
            • comments on WSDOT proposed DBE goal
            • Cowlitz County Public Works
            • DBE Contracting goals
            • DBE Goal
            • DBE Program Disparity Study
            • Disparity Study Comments from City of Spokane
            • FW_ WSDOT News - WSDOT seeks comments on propos
            • Proposed DBE Goals
            • RE_ DBE Contracting Goal Comments
            • Re_ DBE Goal Comments
            • Re_ Seydel Dan - WSDOT Disparity Study Present
            • Support for WSDOTs proposed DBE goal
            • Why we need mandatory goals
            • WSDOT DBE Goal - Comment in support
            • WSDOT Proposes DBE goal of 19
            • WSDOT propsed DBE Goals
            • WTS - Disparity Study Comment Letter

Work (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Dave Gent - WAPA [mailtodavegentasphaltwacom] Sent Thursday December 7 2017 144 PMTo Bayne Jackie ltBayneJwsdotwagovgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hi again Jackie Irsquom fine thanks and hope you are the same Interesting The Master DBE Directory is the basis for and integral to the conclusions of the DisparityStudy Is it not then part of the information needed to fully review and comment on the DisparityStudy Was it not provided by CHA to WSDOT for review We are trying to fully understand thestudy and if this directory was part of the study why would it need to be obtained by a publicrecords disclosure It should be in the public domain and not restricted from ease of access If you are sure that a public records request is needed Irsquoll start that process but we will need tonote that point of fact when we submit our public comments If you are able to reconsider please let me know Respectfully

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Thursday December 7 2017 126 PMTo Dave Gent - WAPA ltdavegentasphaltwacomgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Hello Dave I hope you are doing well

That information would likely be obtained through a public disclosure request Best Regards Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Dave Gent - WAPA [mailtodavegentasphaltwacom] Sent Thursday December 7 2017 113 PMTo Bayne Jackie ltBayneJwsdotwagovgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Jackie Can you please provide an electronic file or provide a weblink for the Master DBE Directory thatColette Holt amp Associates developed for the WSDOT Disparity Study 2017 (first referred to on Page 8of the Disparity Study) I did not see a link to this Master DBE Directory within the study Thanks

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Friday October 27 2017 1118 AMTo Kenyon Wendy ltKenyonWwsdotwagovgt Adams E W ltewadamssystemsclcomgtAdekoyaAndrew ltandrewadekoyabccomgt AlyssaBalllegwagov Anindita Mitraltamitracrea-affiliatescomgt APRISeattlehotmailcom Armstrong CharlotteltCharlieAatgwagovgt Ato Apiafi Architects PLLC ltatoaatoapiaficomgt benzfanwaorgBerntsen Teresa (OMWBE) ltTeresaBomwbewagovgt Billingsley Andrealtbillinawsdotwagovgt Bramlet Erica ltEricaBramletlegwagovgt Brooks Julius

ltBrooksJwsdotwagovgt Brown Jason ltjbrownldccorpcomgt bwallacenwlaborersorgCamden Allison ltCamdenAwsdotwagovgt carlllivingstongmailcom Cerda OscarltCerdaOwsdotwagovgt Christopher Chris ltChristCwsdotwagovgt ckerneycaawagovdanplatinumbusinessgroupcom davegentasphaltwacom David BalltDavidsignsnowmillcreekcomgt Davis Khalia ltDavisKhwsdotwagovgt Davis RaShelle (GOVltrashelledavisgovwagovgt Dayton Jo ltDaytonJwsdotwagovgt ddhondtagcwacomDebbieDriverlegwagov Dennis ltdennisahlkiewitcomgt dmcleodnwlaborersorgdrart6651gmailcom Duncan Enid lthigradeincgmailcomgt EltonltEltonwashingtonstatetruckingcomgt eprincecaawagov flemosldccorpcomfmartineznwmtnmsdcorg geoffshookatkncom glovelady ltgloveladyexcelglovescomgtGrabow Katie ltkgrabowsystemsclcomgt Guilfucci Jackie ltJackieGuilfucciskanskacomgt HealyLinda ltHealyLwsdotwagovgt Higginbotham Breanne ltHigginBwsdotwagovgt HirscheyClaudia ltclaudiahirscheycomcastnetgt Holt Colette ltcoletteholtmwbelawcomgt Huff JohnltHuffJwsdotwagovgt Iniguezchawagov JacksonMaynardlegwagov Jimmy Matta(jmattaalcantarassoccom) ltjmattaalcantarassoccomgt kellywickergovwagov Key EarlltKeyEwsdotwagovgt Kirk Jon ltjkirkwhhnfscomgt Kris Purrier ltkpurrierhwageocomgtleewabuildingtradesorg lesliejonessoundtransitorg Liz Evans ltlevansagcwacomgt LopezErin lterinlopezdeswagovgt Martha Cerna ltMarthaPSLCCORGgt Martin-Arnold EdwinaltMartinEwsdotwagovgt Mary Lerdahl ltmarydbeelectricinccomgt McCarty Hannahlthannahmccartylegwagovgt Melissa L Boyles ltmelissaboylesmwbelawcomgt Metcalf KeithltMetcalKwsdotwagovgt michaelicapaawagov Michelle ltMichelleTTCC26netgt MillarRoger ltMillarRwsdotwagovgt Nakamura Jason ltjasonnakamura1-alliancecomgtNavarroLportseattleorg olliepmt-solutionscom pastorbanksesbctacomacom PatrickHughes ltphugheshughesgroupbizgt Petersen Jodi (FHWA) ltJodiPetersendotgovgtrabbottliunaorg rcarmsteadgmailcom ricemportseattleorg Riley D ltdrileylydigcomgtSeling ltSelingjpfranciscomgt sherryharrisergosynchcom Stell MellodyltStellMwsdotwagovgt terigobintulaliptribes-nsngov timwilliamfactorycom tinaterra-tdicom tkellyldccorpcom tomgaetzmsncom vcollinsacec-waorgverlenejazzmsncom Wang Albert ltWangAatgwagovgt Waugh GregltGregWMaxKuneyComgt Yates Henry ltYatesHWSDOTWAGOVgtCc Tom Gaetz lttomgaetzmsncomgt Dave Gent - WAPA ltdavegentasphaltwacomgt VanCollins ltvcollinsacec-waorggt Daniel Seydel II ltdanplatinumbusinessgroupcomgt MaynardJackson ltJacksonMaynardlegwagovgt Carl Livingston ltcarlllivingstongmailcomgt DonMcLeod ltdmcleodnwlaborersorggt JIMMY MATTA ltjimmymattamsncomgt Prince Ed(CAAA) lteprincecaawagovgt David DHondt ltddhondtagcwacomgt Irene Reyesltgloveladyexcelsupplycompanycomgt McDaniel Craig ltMcDaniCwsdotwagovgtsherryharrisergosynchcomSubject WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Good morning On Monday October 30th WSDOT will be releasing the proposed overall Federal HighwayAdministration Disadvantaged Business Enterprise goal attached for public comment throughDecember 15 2017 This overall DBE goal is based upon the recently completely DBE ProgramDisparity Study WSDOT is proposing a 19 percent overall DBE participation goal on Federal Highway

Administration-funded projects for federal fiscal years 2018 through 2020 DBE goals fortransportation projects that receive federal funds represent a percentage of the value of work inwhich minority- and women-owned businesses should participate Once finalized and submitted toFHWA early next year the goal will be effective through Sept 30 2020

The purpose of the DBE program is to create a level playing field for firms owned and operated bydisadvantaged individuals wanting to participate in federally assisted highway transit and aviationprograms The attached overall DBE goal is for FHWA funded projects WSDOT will be updating theFTA and FAA overall DBE goals in the near future

If you have any questions please contact Earl Key Director of the Office of Equal Opportunity at3607057091 or KeyEwsdotwagov Thank you Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

  • Proof-Of-Publicationpdf
    • Mediapdf
      • AGC
      • Daily Journal
      • Daily Medium
      • DBEGood
      • OMWBE
      • Seattle Medium
      • Tabor 100
      • The Chronicle
      • Tukwila
        • King County
          • Public-Comments-20180111pdf
            • 19 DBE Requirement(1)
            • AGC Comments on Proposed 10 Goad
            • Backstrom Curb amp Sidewalk
            • comments on WSDOT proposed DBE goal
            • Cowlitz County Public Works
            • DBE Contracting goals
            • DBE Goal
            • DBE Program Disparity Study
            • Disparity Study Comments from City of Spokane
            • FW_ WSDOT News - WSDOT seeks comments on propos
            • Proposed DBE Goals
            • RE_ DBE Contracting Goal Comments
            • Re_ DBE Goal Comments
            • Re_ Seydel Dan - WSDOT Disparity Study Present
            • Support for WSDOTs proposed DBE goal
            • Why we need mandatory goals
            • WSDOT DBE Goal - Comment in support
            • WSDOT Proposes DBE goal of 19
            • WSDOT propsed DBE Goals
            • WTS - Disparity Study Comment Letter

That information would likely be obtained through a public disclosure request Best Regards Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

From Dave Gent - WAPA [mailtodavegentasphaltwacom] Sent Thursday December 7 2017 113 PMTo Bayne Jackie ltBayneJwsdotwagovgtSubject RE WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Jackie Can you please provide an electronic file or provide a weblink for the Master DBE Directory thatColette Holt amp Associates developed for the WSDOT Disparity Study 2017 (first referred to on Page 8of the Disparity Study) I did not see a link to this Master DBE Directory within the study Thanks

Dave GentDavid Gent PEExecutive Director Technical DirectorWashington Asphalt Pavement Assoc (WAPA)

451 SW 10th Street Suite 110A Renton WA 98057(253) 261-4486 Fax (425) 970-3178DaveGentAsphaltWAcom

From Bayne Jackie [mailtoBayneJwsdotwagov] Sent Friday October 27 2017 1118 AMTo Kenyon Wendy ltKenyonWwsdotwagovgt Adams E W ltewadamssystemsclcomgtAdekoyaAndrew ltandrewadekoyabccomgt AlyssaBalllegwagov Anindita Mitraltamitracrea-affiliatescomgt APRISeattlehotmailcom Armstrong CharlotteltCharlieAatgwagovgt Ato Apiafi Architects PLLC ltatoaatoapiaficomgt benzfanwaorgBerntsen Teresa (OMWBE) ltTeresaBomwbewagovgt Billingsley Andrealtbillinawsdotwagovgt Bramlet Erica ltEricaBramletlegwagovgt Brooks Julius

ltBrooksJwsdotwagovgt Brown Jason ltjbrownldccorpcomgt bwallacenwlaborersorgCamden Allison ltCamdenAwsdotwagovgt carlllivingstongmailcom Cerda OscarltCerdaOwsdotwagovgt Christopher Chris ltChristCwsdotwagovgt ckerneycaawagovdanplatinumbusinessgroupcom davegentasphaltwacom David BalltDavidsignsnowmillcreekcomgt Davis Khalia ltDavisKhwsdotwagovgt Davis RaShelle (GOVltrashelledavisgovwagovgt Dayton Jo ltDaytonJwsdotwagovgt ddhondtagcwacomDebbieDriverlegwagov Dennis ltdennisahlkiewitcomgt dmcleodnwlaborersorgdrart6651gmailcom Duncan Enid lthigradeincgmailcomgt EltonltEltonwashingtonstatetruckingcomgt eprincecaawagov flemosldccorpcomfmartineznwmtnmsdcorg geoffshookatkncom glovelady ltgloveladyexcelglovescomgtGrabow Katie ltkgrabowsystemsclcomgt Guilfucci Jackie ltJackieGuilfucciskanskacomgt HealyLinda ltHealyLwsdotwagovgt Higginbotham Breanne ltHigginBwsdotwagovgt HirscheyClaudia ltclaudiahirscheycomcastnetgt Holt Colette ltcoletteholtmwbelawcomgt Huff JohnltHuffJwsdotwagovgt Iniguezchawagov JacksonMaynardlegwagov Jimmy Matta(jmattaalcantarassoccom) ltjmattaalcantarassoccomgt kellywickergovwagov Key EarlltKeyEwsdotwagovgt Kirk Jon ltjkirkwhhnfscomgt Kris Purrier ltkpurrierhwageocomgtleewabuildingtradesorg lesliejonessoundtransitorg Liz Evans ltlevansagcwacomgt LopezErin lterinlopezdeswagovgt Martha Cerna ltMarthaPSLCCORGgt Martin-Arnold EdwinaltMartinEwsdotwagovgt Mary Lerdahl ltmarydbeelectricinccomgt McCarty Hannahlthannahmccartylegwagovgt Melissa L Boyles ltmelissaboylesmwbelawcomgt Metcalf KeithltMetcalKwsdotwagovgt michaelicapaawagov Michelle ltMichelleTTCC26netgt MillarRoger ltMillarRwsdotwagovgt Nakamura Jason ltjasonnakamura1-alliancecomgtNavarroLportseattleorg olliepmt-solutionscom pastorbanksesbctacomacom PatrickHughes ltphugheshughesgroupbizgt Petersen Jodi (FHWA) ltJodiPetersendotgovgtrabbottliunaorg rcarmsteadgmailcom ricemportseattleorg Riley D ltdrileylydigcomgtSeling ltSelingjpfranciscomgt sherryharrisergosynchcom Stell MellodyltStellMwsdotwagovgt terigobintulaliptribes-nsngov timwilliamfactorycom tinaterra-tdicom tkellyldccorpcom tomgaetzmsncom vcollinsacec-waorgverlenejazzmsncom Wang Albert ltWangAatgwagovgt Waugh GregltGregWMaxKuneyComgt Yates Henry ltYatesHWSDOTWAGOVgtCc Tom Gaetz lttomgaetzmsncomgt Dave Gent - WAPA ltdavegentasphaltwacomgt VanCollins ltvcollinsacec-waorggt Daniel Seydel II ltdanplatinumbusinessgroupcomgt MaynardJackson ltJacksonMaynardlegwagovgt Carl Livingston ltcarlllivingstongmailcomgt DonMcLeod ltdmcleodnwlaborersorggt JIMMY MATTA ltjimmymattamsncomgt Prince Ed(CAAA) lteprincecaawagovgt David DHondt ltddhondtagcwacomgt Irene Reyesltgloveladyexcelsupplycompanycomgt McDaniel Craig ltMcDaniCwsdotwagovgtsherryharrisergosynchcomSubject WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Good morning On Monday October 30th WSDOT will be releasing the proposed overall Federal HighwayAdministration Disadvantaged Business Enterprise goal attached for public comment throughDecember 15 2017 This overall DBE goal is based upon the recently completely DBE ProgramDisparity Study WSDOT is proposing a 19 percent overall DBE participation goal on Federal Highway

Administration-funded projects for federal fiscal years 2018 through 2020 DBE goals fortransportation projects that receive federal funds represent a percentage of the value of work inwhich minority- and women-owned businesses should participate Once finalized and submitted toFHWA early next year the goal will be effective through Sept 30 2020

The purpose of the DBE program is to create a level playing field for firms owned and operated bydisadvantaged individuals wanting to participate in federally assisted highway transit and aviationprograms The attached overall DBE goal is for FHWA funded projects WSDOT will be updating theFTA and FAA overall DBE goals in the near future

If you have any questions please contact Earl Key Director of the Office of Equal Opportunity at3607057091 or KeyEwsdotwagov Thank you Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

  • Proof-Of-Publicationpdf
    • Mediapdf
      • AGC
      • Daily Journal
      • Daily Medium
      • DBEGood
      • OMWBE
      • Seattle Medium
      • Tabor 100
      • The Chronicle
      • Tukwila
        • King County
          • Public-Comments-20180111pdf
            • 19 DBE Requirement(1)
            • AGC Comments on Proposed 10 Goad
            • Backstrom Curb amp Sidewalk
            • comments on WSDOT proposed DBE goal
            • Cowlitz County Public Works
            • DBE Contracting goals
            • DBE Goal
            • DBE Program Disparity Study
            • Disparity Study Comments from City of Spokane
            • FW_ WSDOT News - WSDOT seeks comments on propos
            • Proposed DBE Goals
            • RE_ DBE Contracting Goal Comments
            • Re_ DBE Goal Comments
            • Re_ Seydel Dan - WSDOT Disparity Study Present
            • Support for WSDOTs proposed DBE goal
            • Why we need mandatory goals
            • WSDOT DBE Goal - Comment in support
            • WSDOT Proposes DBE goal of 19
            • WSDOT propsed DBE Goals
            • WTS - Disparity Study Comment Letter

ltBrooksJwsdotwagovgt Brown Jason ltjbrownldccorpcomgt bwallacenwlaborersorgCamden Allison ltCamdenAwsdotwagovgt carlllivingstongmailcom Cerda OscarltCerdaOwsdotwagovgt Christopher Chris ltChristCwsdotwagovgt ckerneycaawagovdanplatinumbusinessgroupcom davegentasphaltwacom David BalltDavidsignsnowmillcreekcomgt Davis Khalia ltDavisKhwsdotwagovgt Davis RaShelle (GOVltrashelledavisgovwagovgt Dayton Jo ltDaytonJwsdotwagovgt ddhondtagcwacomDebbieDriverlegwagov Dennis ltdennisahlkiewitcomgt dmcleodnwlaborersorgdrart6651gmailcom Duncan Enid lthigradeincgmailcomgt EltonltEltonwashingtonstatetruckingcomgt eprincecaawagov flemosldccorpcomfmartineznwmtnmsdcorg geoffshookatkncom glovelady ltgloveladyexcelglovescomgtGrabow Katie ltkgrabowsystemsclcomgt Guilfucci Jackie ltJackieGuilfucciskanskacomgt HealyLinda ltHealyLwsdotwagovgt Higginbotham Breanne ltHigginBwsdotwagovgt HirscheyClaudia ltclaudiahirscheycomcastnetgt Holt Colette ltcoletteholtmwbelawcomgt Huff JohnltHuffJwsdotwagovgt Iniguezchawagov JacksonMaynardlegwagov Jimmy Matta(jmattaalcantarassoccom) ltjmattaalcantarassoccomgt kellywickergovwagov Key EarlltKeyEwsdotwagovgt Kirk Jon ltjkirkwhhnfscomgt Kris Purrier ltkpurrierhwageocomgtleewabuildingtradesorg lesliejonessoundtransitorg Liz Evans ltlevansagcwacomgt LopezErin lterinlopezdeswagovgt Martha Cerna ltMarthaPSLCCORGgt Martin-Arnold EdwinaltMartinEwsdotwagovgt Mary Lerdahl ltmarydbeelectricinccomgt McCarty Hannahlthannahmccartylegwagovgt Melissa L Boyles ltmelissaboylesmwbelawcomgt Metcalf KeithltMetcalKwsdotwagovgt michaelicapaawagov Michelle ltMichelleTTCC26netgt MillarRoger ltMillarRwsdotwagovgt Nakamura Jason ltjasonnakamura1-alliancecomgtNavarroLportseattleorg olliepmt-solutionscom pastorbanksesbctacomacom PatrickHughes ltphugheshughesgroupbizgt Petersen Jodi (FHWA) ltJodiPetersendotgovgtrabbottliunaorg rcarmsteadgmailcom ricemportseattleorg Riley D ltdrileylydigcomgtSeling ltSelingjpfranciscomgt sherryharrisergosynchcom Stell MellodyltStellMwsdotwagovgt terigobintulaliptribes-nsngov timwilliamfactorycom tinaterra-tdicom tkellyldccorpcom tomgaetzmsncom vcollinsacec-waorgverlenejazzmsncom Wang Albert ltWangAatgwagovgt Waugh GregltGregWMaxKuneyComgt Yates Henry ltYatesHWSDOTWAGOVgtCc Tom Gaetz lttomgaetzmsncomgt Dave Gent - WAPA ltdavegentasphaltwacomgt VanCollins ltvcollinsacec-waorggt Daniel Seydel II ltdanplatinumbusinessgroupcomgt MaynardJackson ltJacksonMaynardlegwagovgt Carl Livingston ltcarlllivingstongmailcomgt DonMcLeod ltdmcleodnwlaborersorggt JIMMY MATTA ltjimmymattamsncomgt Prince Ed(CAAA) lteprincecaawagovgt David DHondt ltddhondtagcwacomgt Irene Reyesltgloveladyexcelsupplycompanycomgt McDaniel Craig ltMcDaniCwsdotwagovgtsherryharrisergosynchcomSubject WSDOT FHWA Disadvantaged Business Enterprise Proposed Goal Good morning On Monday October 30th WSDOT will be releasing the proposed overall Federal HighwayAdministration Disadvantaged Business Enterprise goal attached for public comment throughDecember 15 2017 This overall DBE goal is based upon the recently completely DBE ProgramDisparity Study WSDOT is proposing a 19 percent overall DBE participation goal on Federal Highway

Administration-funded projects for federal fiscal years 2018 through 2020 DBE goals fortransportation projects that receive federal funds represent a percentage of the value of work inwhich minority- and women-owned businesses should participate Once finalized and submitted toFHWA early next year the goal will be effective through Sept 30 2020

The purpose of the DBE program is to create a level playing field for firms owned and operated bydisadvantaged individuals wanting to participate in federally assisted highway transit and aviationprograms The attached overall DBE goal is for FHWA funded projects WSDOT will be updating theFTA and FAA overall DBE goals in the near future

If you have any questions please contact Earl Key Director of the Office of Equal Opportunity at3607057091 or KeyEwsdotwagov Thank you Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

  • Proof-Of-Publicationpdf
    • Mediapdf
      • AGC
      • Daily Journal
      • Daily Medium
      • DBEGood
      • OMWBE
      • Seattle Medium
      • Tabor 100
      • The Chronicle
      • Tukwila
        • King County
          • Public-Comments-20180111pdf
            • 19 DBE Requirement(1)
            • AGC Comments on Proposed 10 Goad
            • Backstrom Curb amp Sidewalk
            • comments on WSDOT proposed DBE goal
            • Cowlitz County Public Works
            • DBE Contracting goals
            • DBE Goal
            • DBE Program Disparity Study
            • Disparity Study Comments from City of Spokane
            • FW_ WSDOT News - WSDOT seeks comments on propos
            • Proposed DBE Goals
            • RE_ DBE Contracting Goal Comments
            • Re_ DBE Goal Comments
            • Re_ Seydel Dan - WSDOT Disparity Study Present
            • Support for WSDOTs proposed DBE goal
            • Why we need mandatory goals
            • WSDOT DBE Goal - Comment in support
            • WSDOT Proposes DBE goal of 19
            • WSDOT propsed DBE Goals
            • WTS - Disparity Study Comment Letter

Administration-funded projects for federal fiscal years 2018 through 2020 DBE goals fortransportation projects that receive federal funds represent a percentage of the value of work inwhich minority- and women-owned businesses should participate Once finalized and submitted toFHWA early next year the goal will be effective through Sept 30 2020

The purpose of the DBE program is to create a level playing field for firms owned and operated bydisadvantaged individuals wanting to participate in federally assisted highway transit and aviationprograms The attached overall DBE goal is for FHWA funded projects WSDOT will be updating theFTA and FAA overall DBE goals in the near future

If you have any questions please contact Earl Key Director of the Office of Equal Opportunity at3607057091 or KeyEwsdotwagov Thank you Jackie BaynePolicy and Reporting ManagerWSDOT Office of Equal OpportunityWork (360) 705-7084Cell (360) 338-5783BayneJwsdotwagov

  • Proof-Of-Publicationpdf
    • Mediapdf
      • AGC
      • Daily Journal
      • Daily Medium
      • DBEGood
      • OMWBE
      • Seattle Medium
      • Tabor 100
      • The Chronicle
      • Tukwila
        • King County
          • Public-Comments-20180111pdf
            • 19 DBE Requirement(1)
            • AGC Comments on Proposed 10 Goad
            • Backstrom Curb amp Sidewalk
            • comments on WSDOT proposed DBE goal
            • Cowlitz County Public Works
            • DBE Contracting goals
            • DBE Goal
            • DBE Program Disparity Study
            • Disparity Study Comments from City of Spokane
            • FW_ WSDOT News - WSDOT seeks comments on propos
            • Proposed DBE Goals
            • RE_ DBE Contracting Goal Comments
            • Re_ DBE Goal Comments
            • Re_ Seydel Dan - WSDOT Disparity Study Present
            • Support for WSDOTs proposed DBE goal
            • Why we need mandatory goals
            • WSDOT DBE Goal - Comment in support
            • WSDOT Proposes DBE goal of 19
            • WSDOT propsed DBE Goals
            • WTS - Disparity Study Comment Letter