The DBE Program: A DBE Perspective, Part 2 · The DBE Program: A DBE Perspective, Part 2 ... NYS...

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Presented by Gregory A. Jenifer, MCA

May 9, 2018

The DBE Program: A DBE Perspective, Part 2

© Copyright 2018 by Armand Resource Group, Inc. All rights reserved.

INTRODUCTION

• Gregory Jenifer, founder, President and CEO of Armand Resource Group, Inc. (ARG).

• ARG is a DBE firm that was founded in 2001 with the vision to assist in the design, innovation and implementation of programs to promote diversity and economic equality through identification, utilization and development of disadvantaged businesses and human resources.

• Provides expertise of nationally recognized leaders in the field of DBE, EEO, Outreach and Workforce Compliance Services.

• Committed to ensuring the successful development and implementation of aggressive compliance and integrity monitoring and reporting processes.

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ARMAND RESOURCE GROUP, INC. WHAT WE DO

ARG has designed and implemented all aspects of Federal, State and Local DBE/SBE/MBE/WBE/Workforce and Civil Rights Programs including:

Comprehensive DBE/SBE/MBE/WBE Program Implementation

Equal Employment Opportunity on Federal-Aid Construction Contracts (Including Supportive Services)

Minority/Female Utilization and Workforce/DOL Participation Compliance, Davis Bacon and Prevailing Wage Audits

Oversight Compliance Monitoring and Reporting Services

Forensic Investigations of Fraud and Program Abuse

Civil Rights Program Audits/Reviews

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ARMAND RESOURCE GROUP, INC. SELECT CLIENTS & PROJECTS

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Denver RTD FasTracks Program MD SHA Inter County Connector Project Metro Washington Airports Authority MD DOT & MTA Purple Line P3 Project North Central Texas Regional Certification Agency Hampton Roads Transit & Tide Project Charlotte Area Transit System (CATS) Charlotte Douglas International Airport NYC DOT Brooklyn & Manhattan Bridges NYC DOT City Island Bridge NYC DOT Battery Park Underpass Project NYC DOT Roosevelt Ave.& Mill Basin Bridges New NY Bridge - Tappan Zee Hudson River Crossing Project NYS MNCR Harmon Yard Phase-III Skanska DART Orange Line & I-3 Extension Projects MBTA - MassDOT Commuter Rail Project Tren Urbano - Puerto Rico Hwy & Trans. Portal Bridge NJ Transit

ARC Tunnel Project NJ Transit St. Louis Metro Cross County Metro Link Projects Southern NJ LRT Project Cleveland RTA Ohio DOT I - 90 Bridge Project NYS MTA Oversight Capital Program NYC HPD Sugar Hill & Common Ground Projects MTA, TBTA - Verrazano Bridge Repair Project Oversight MTA – Vendor Relations IPSIG Services The Port Authority of NY & NJ - Certification & CUF Support LA Metro – Purple Line Phases 1 – 3, Regional Connector, Crenshaw/LAX Line, Southwestern Yard Maintenance Facility MTA/NYCT - Second Avenue Subway Project - Phase 2 DOT – NYC Comprehensive Ferry Transit Resilience Project MdTA Nice Bridge Replacement Project


AGENDA

• Recap of Part 1

• Outreach & Goal Setting

• Alternate Project Delivery Initiatives

• Compliance Monitoring & Reporting Services

• Questions & Answers

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OUTREACH & GOAL SETTING EXERCISE

• BACKGROUND - Example Agency is responsible for a bridge replacement project. As the first step in the DBE outreach and goal-setting process, you have to determine the number and type of trades / companies required to execute the project.

• QUESTION - How many different types of trades / companies would you estimate are required to replace an old bridge with a new bridge?

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RECAP OF OUTREACH & GOAL SETTING EXAMPLE

• On average, a Compliance Officer may estimate 21 trades from the ICE/WBS involved in a bridge replacement project valued at $500 million or more…..

• What would be the impact on the DBE community if the various trades involved in this bridge replacement project identified by Engineering/Contract Administrator/Compliance Officer were expanded?

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RECAP OF THE GOAL SETTING PROCESS • 541320 – Landscape Architecture • 541330 – Civil Engineering (includes geotech and testing) • 541370 – Surveying and Mapping • 541340 – Drafting/CADD • 561990 – Underwater Bridge Inspections • 541690 – Traffic Data Services • 541990 + 541611 – Construction Engineering and Inspection • 541620 – Environmental Consulting Services • 237310 – Highway, Street and Bridge Construction • 238990 – Specialty Trade Contractors (asphalt, concrete, fencing, MOT, etc.) • 238910 - Site Preparation Contractors • 561730 - Landscaping Services • 237990 – Other Heavy and Civil Engineering Construction • 237110 – Utility System Construction • 238320 – Painting and Wall Covering Contractors • 484220 – Specialized Freight Trucking • 423320 – Materials Supply • 236220 – Commercial and Institutional Building Construction (includes Toll & Service Plaza Facilities) • 541611 - Management and Financial Services • 541511 - Computer Systems Design and Related Services • 238910 – Right -of-Way Services

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EXPANDED GOAL SETTING OPPORTUNITIES • 424950 – Paint Distribution/Paint Supplies • 237310 - Asphalt/Paving Services • 561439 – Reprographics/Blueprint Services • Painting Inspection • 238190 - Welding/Welding Inspection Services • 561710 - Rodent Control • 238120 - Rebar and Rebar Bending • 238120 - Rebar Accessories • 523120 - Trailers • 532289 - Small Tools • 238910 - Excavation Services • 561730 – Tree Removal/ Replacement & Warranty • 562119 - Remove and Hauling of Debris • 562910 - Removal of Contaminated soil • 488490 - Trucking Services (Ex. Delivery of Steel

Beams) • 541490 - Lighting Design Services • 423610 - Lighting Suppliers • 238120 - Structural and Miscellaneous Steel

• 541330 / 541340 - Electrical Engineering Services/CADD Support

• 238210 - Electrical Services (including Temporary) • 423610 - Electrical Cable and Supplies • 335932 - Building Electrical & Communication

Boxes/Services • 237310 - Imbedded Concrete Hardware • 221122- Main Span Power • 532490 - Attenuator Truck Rental • 561612 - Security Guard Services • 561621 - Security Systems • 541330 / 541340 - Civil/CADD Support • 236210 - Construction Material Supply • 423440 - Lockers and Benches • 423310 - Lumber Wholesale • 238120 / 541340 - Structural/CADD Support • 483211 - Barge/Marine Towing • 334290 - Barge Location Monitoring Services • 541330 - Quality Engineering Consulting Services

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EXPANDED GOAL SETTING OPPORTUNITIES • 483211 - Marine Towing Services • 541330 - Construction Engineering Services • 423320 - Building Materials/Sheet Rock Supply and

Installation Services • 238220 - Heating, Ventilation and Air Conditioning

Services • 423730 - Heating, Ventilation and Air Conditioning

Supplies • 323312 - Steel Fabrication • 238120 - Installing Reinforcing Steel • 238990 - Sawing & Coring Equipment Rental • 238990 - Crane Services • 541330 - Erosion Control Services • 238990 / 423390 - Fencing Services/Supplies • 424120 - Office Supplies • 561720 - Office Cleaning • 423420 - Computers and Accessories Equipment • 237310 - Signage • 924110 - Air quality and Noise Consulting Services • 238120 - Fabricate and Install Steel

• 423320 - Concrete Supply • 238110 - Concrete Pumping • 237310 - Imbedded Concrete Hardware • 237990 / 238910 - Drainage • 238140 - Masonry • 238220 - Analytical Testing of Water Samples • 561320 - Staff Augmentation Services • 561110 - Administrative Support Services • 238390 - Office Furniture • 541820 - Public Involvement Plan Support • 238160 - Roofing Systems/Services • 561110 - Scheduling • 561410 / 561439 / 493190 - Document Control • 611430 - QA/QC Services • 423520 - Fuel Supply • 561990 / 541330 - Misc. Maintenance of Traffic

Materials/Equipment • 444190 / 423390 - Main Span Miscellaneous Materials • 561439 - Misc. Business Services

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11 © Copyright 2018 by Armand Resource Group, Inc. All rights reserved.

TRADITIONAL VS. NON-TRADITIONAL PROCUREMENTS (ALTERNATIVE PROJECT DELIVERY INITIATIVES)

What do you really know?

Reality vs. Myths


DESIGN-BUILD VS. DESIGN-BID-BUILD

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THE DESIGN-BUILD ENVIRONMENT

Includes the following contracting methods:

Design-Build Projects (DB)

Construction Management General Contractor (CMGC) & CMGC at Risk

Turnkey Projects

Design-Build Operate & Maintain (DBOM)

Design-Build Own Operate & Maintain (DBOOM)

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THE DESIGN-BUILD ENVIRONMENT

Includes the following contracting methods:

Public Private Partnership (3P)

Comprehensive Development Agreements (CDA)

Concessionaire Agreements

Mega/Large/Multi-Year Projects

Alternative Project Delivery System

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Single Point of Responsibility

Provides Long-Term Accountability

Multidisciplinary Influences on Project: Designer, Constructor & Operator

Price Savings – Predictable Cost – Lower Total Cost

Time Savings – Faster Completion/Guaranteed On-time Delivery

Less Owner Management/Oversight

Improved Quality & Innovation

DESIGN-BUILD ADVANTAGES

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Loss of Owner Control Limited Exposure to D/B Process - Challenge to fully participate in every Phase - Challenge to fully consider DBE issues pre-bid - Challenge to modify DBE contract requirements - Failure to obtain technical assistance pre-bid - Failure/uncomfortable partnering with contractor - Failure/uncomfortable partnering internally & perceptions

Failure of D/B Contractor to Fully Implement DBE Program Requirements and Commit to the Objectives

DESIGN-BUILD DISADVANTAGES

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© Copyright 2018 by Armand Resource Group, Inc. All rights reserved. 17

Recipient Responsibilities 1. May establish a goal if awarding a “master

contract”

2. Must maintain “oversight”

3. Ensure Activities conducted consistent with Part 26

“DESIGN-BUILD” OR “TURNKEY” PROJECT 49 CFR Part 26.53(e)


Master (DB) Contractor Responsibilities

Steps into the shoes of the Recipient

May establish subcontract goals

Conduct activities consistent with Part 26

*DBE requirements apply regardless of the number of lower tiers

*Compliance Monitoring/Reporting

*Prime Contractor/Team is responsible!

“DESIGN-BUILD” OR “TURNKEY” PROJECT 49 CFR Part 26.53(e) (con’t)

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“DESIGN-BUILD” OR “TURNKEY” PROJECT 49 CFR Part 26.53(e) (con’t)

What is the

perspective?


1. Re-educate everyone (that it’s not business as usual) especially the DBE community

2. Acknowledge the inherent uncertainty – flexibility versus risk

3. Early DBE involvement is a must – at the Conceptual Stage

4. Think active DBE participation at all phases

5. Get DBE and DBE advocacy feedback on your procurement and contract requirements

CIVIL RIGHTS STAFF BEST PRACTICES


6. Share known pitfalls and risks as you know them so that DBEs can prepare for the worse

7. Encourage DBE participation in all industry presentations - (Advocate for Inclusion)

8. Early and continuing outreach to the DBE community 9. Mandate that Prime Teams host pre-award outreach

initiatives as part of the proposal submission process 10. Perform DBE Needs Assessment(s) and conduct

ongoing Capacity Building 11. Increase communications to obtain project awareness


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12. Project specific dedicated staff

13. Modify the DBE procurement specifications and contract requirements - 49 CFR Part 26.53 (e)

14. Define expectations – relationships, meetings, reports, DBE Plans, procurement plans, plan modifications, pre-approvals, complaints, scope reductions, removals, replacements, substitutions, community involvement, change orders, quality reviews

15. Re-define relationship with Contractor – Trust


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16. Define how you are going to handle “graduated” DBE firms (impact of change orders/extensions) joint check requests, trucking consortiums and NAICS Codes expansions etc...

17. What are your supportive services/technical assistance expectations of the Prime Team

18. Define how you are handling Mentoring

19. Update technology – no pencil/paper compliance

20. Get Technical Support



COMPLIANCE MONITORING & REPORTING

What do DBEs want?


MODIFICATIONS AND SUBSTITUTIONS (TERMINATION AND REPLACEMENT OF DBES)

• You must require that a prime contractor not terminate a DBE subcontractor (or an approved substitute DBE firm) without your prior written consent.

• This includes, but is not limited to, instances in which a prime contractor seeks to perform work originally designated for a DBE subcontractor with its own forces or those of an affiliate, a non-DBE firm, or with another DBE firm.

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PROCEDURAL REQUIREMENTS

• Before transmitting to you its request to terminate and/or substitute a DBE subcontractor, the prime contractor must give notice in writing to the DBE subcontractor, with a copy to you, of its intent to request to terminate and/or substitute, and the reason for the request.

• The prime contractor must give the DBE five days to respond to the prime contractor's notice and advise you and the contractor of the reasons, if any, why it objects to the proposed termination of its subcontract and why you should not approve the prime contractor's action.

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GOOD CAUSES TO TERMINATE A DBE FIRM

• The listed DBE subcontractor fails or

refuses to execute a written contract.

• The listed DBE subcontractor fails or refuses to perform the work of its subcontract in a way consistent with normal industry standards. • Provided, however, that good cause does

not exist if the failure or refusal of the DBE subcontractor to perform its work on the subcontract results from the bad faith or discriminatory action of the prime contractor;

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• The listed DBE subcontractor fails or

refuses to meet the prime contractor's reasonable, nondiscriminatory bond requirements;

• The listed DBE subcontractor becomes bankrupt, insolvent, or exhibits credit unworthiness;

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• The listed DBE subcontractor is ineligible to work on public works projects because of suspension and debarment proceedings or applicable state law;

• You have determined that the listed DBE subcontractor is not a responsible contractor;

• The listed DBE subcontractor voluntarily withdraws from the project and provides to you written notice of its withdrawal;

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• The listed DBE is ineligible to receive DBE credit for the type of work required;

• A DBE owner dies or becomes disabled with the result that the listed DBE contractor is unable to complete its work on the contract;

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• Other documented good cause that you determine compels the termination of the DBE subcontractor.

• Provided, that good cause does not exist if the prime

contractor seeks to terminate a DBE it relied upon to obtain the contract so that the prime contractor can self-perform the work for which the DBE contractor was engaged or so that the prime contractor can substitute another DBE or non-DBE contractor after contract award.

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QUESTIONS & ANSWERS

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Armand Resource Group, Inc.

300 Frank W. Burr Blvd, Ste 35

Teaneck, NJ 07666

Tel: 201-357-8725 Fax: 201-357-8727

www.argdiversity.com

Email: [email protected]

Making the difference every time, on every project…

Offices: California Florida Maryland New Jersey North Carolina Texas

The DBE Program: A DBE Perspective, Part 2 · The DBE Program: A DBE Perspective, Part 2 ... NYS...

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