|This document sets forth our reasons for approving [insert state DOT's
name] DBE goal methodology and the portion of the goal to be attained by race- and
gender-neutral means for FY [insert year], and [if applicable] for approving modifications
to its DBE program.
Setting Methodology Section 26.45
The regulations require recipients to set overall goals based on demonstrative evidence of
the availability of ready, willing and able DBEs relative to all businesses ready, willing
and able to participate on DOT-assisted contracts.
||Step One- Base Figure-Section 26.45(c)
||Under the regulations, the State must begin the process by determining the
base figure for the relative availability of DBEs.
Selected- The regulations set forth several acceptable examples and allows for
alternatives. You must identify which examples the State used or describe the alternative
that was used and explain why it is acceptable.
of Data Used- The regulations allow for a variety of information to be used,
including: DBE Directories and Census Bureau Data, data from a disparity study, a bidders
list, goal of another DOT recipient or any other approved alternative method. Section
26.45 (c)(1)-(5). You must describe the data used, and explain how the data is adequate to
determine availability of ready, willing, and able DBEs and ready, willing, and able
contractors. You should also explain how the data was refined, e.g. which SIC codes were
selected from the Census Bureau and why and, where appropriate, how information was
collected, e.g. how did the state "create" a bidders list?
of Calculation Performed- You must describe how the calculation which established
the relative availability was performed. This should include an explanation of how the
factors in the calculation were established and why the State's calculation is
Baseline Goal- You must describe what the State's resulting baseline goal is.
Step Two Adjustments- Section 26.45(d)
Once a base figure has been calculated, the State must examine
all of the evidence available in its jurisdiction to determine if an adjustment is needed
to the base figure to arrive at the overall goal. In your decision, you must list all of
the evidence considered by the State under Step 2, and explain the State's reasons for
making an adjustment or for deciding that an adjustment was not appropriate:
types of evidence considered when adjusting the base figure- The regulations
state that there are many types of evidence that must be considered when adjusting the
base figure. These include: the current capacity of DBEs to perform work in the state's
DOT-assisted contracting program, as measured by the volume of work DBEs have performed in
recent years; evidence from disparity studies conducted anywhere within the state's
jurisdiction, to the extent it is not already accounted for in the base figure; and, if
the base figure is the goal of another recipient, the State must adjust it for differences
in their local market and contracting program. Section 26.45 (d)(1)(i)-(iii). You must
explain whether and how the state took this information into account, including an
explanation of any adjustment made or why the state thought an adjustment was not
other evidence considered- When adjusting the base figure, the State may consider
available evidence from related fields that affect the opportunities for DBEs to form,
grow and compete. This evidence can include: statistical disparities in the ability of
DBEs to get the financing, bonding and insurance required to participate in your program;
data on employment, self-employment, education, training and union apprenticeship
programs, to the extent it can be related to the opportunities for DBEs to perform in the
state's program; and, if the state attempts to make an adjustment to the base figure to
account for the continuing effects of past discrimination or the effects of an ongoing DBE
program, the adjustment must be based on demonstrable evidence that is logically and
directly related to the effect for which the adjustment is sought. If any such information
is available, the State must consider it, and your decision must include a discussion of
the type of information available and how the State took that information into account.
This includes an explanation of any adjustment made or why the State thought an adjustment
was not necessary.
|Public Participation Section 26.45 g
|The regulation requires that the State must provide for public
participation when establishing its overall goal:
||Consultation- Describe the consultation process the State
used. If possible, list which minority, women's and general contractor groups, community
organization and other officials or organizations took part in the consultation process.
||Published Notice- State the date the notice was published
and the method used by the State to publish the notice.
||Comments- Summarize briefly the comments received through
the public participation process, and explain any adjustments to the goal that the State
made as a result of these comments.
|Race and Gender- Neutral and Conscious Measures Section 26.51
|The regulations require that the State must meet the maximum feasible
portion of its overall goal by using race and gender- neutral means of facilitating DBE
participation. You are required to specifically approve the race and gender- neutral, race
and gender- conscious division in addition to your approval of the goal setting
methodology. (Hereafter, these terms are simply referred to as "race-neutral"
||Race-Neutral and Race-Conscious Division- In the overall
goal, you must describe the projection of the portion of the goal that is expected to be
met through race-neutral means and the basis for that projection. You must also describe
the remaining amount of its goal that the State intends to meet through race- conscious
||Description of Information Relied Upon- You must also
explain the basis for the State's race-neutral/race-conscious division and why it is the
State's best estimate of the maximum amount of participation that can be achieved through
race-neutral means. There are a variety of types of information that can be relied upon
when determining a recipient's race-neutral/race-conscious division. Appropriate
information should give a sound analysis of the recipient's market, the race-neutral
measures it employs and information on contracting in the recipient's contracting area.
Information that could be relied on includes: the extent of participation of DBE's in the
recipient's contracts that do not have contract goals; past prime contractors
achievements; excess DBE achievements over past goals; how many DBE primes have
participated in the state's programs in the past; or information about state, local or
private contracting in similar areas that do not use contracting goals and how many
minority and women's businesses participate in programs without goals.
||Description of the Types of Race-Neutral Measures Implemented by
the State- The regulations provide guidance on what race-neutral means includes.
For example: (1) arranging solicitations, times for the presentations of bid quantities,
specifications and deliver schedules in ways that facilitate DBE, and other small
businesses, participation, (2) providing technical assistance and other services, (3)
providing assistance in overcoming limitations such as inability to obtain bonding or
financing, (4) carrying out information and communications programs on contracting
procedures and specific contract opportunities, (5) implementing a supportive services
program to develop and improve immediate and long-term business management, record
keeping, and financial and accounting capability for DBEs and other small businesses, (6)
providing services to help DBEs and other small businesses, improve long-term development,
increase opportunities to participate in a variety of kinds of work, handle increasingly
significant projects and achieve eventual self-sufficiency, (7) establishing a program to
assist new, start-up firms, particularly in fields in which DBE participation has
historically been low, (8) ensuring distribution of the State's DBE directory, through
print and electronic means, to the widest feasible universe of potential prime
contractors, and (9) assisting DBEs, and other small businesses, to develop their
capability to utilize emerging technology and conduct business through electronic media.
Section 26.51 (b)(1)-(9). You must describe any or all of the race-neutral means that the
State intends to utilize in meeting the race-neutral portion of its goal.
||Description of the Types of Race-Conscious Measures the State
Intends to Use- You must also identify the types of race-conscious means that the
State intends to use if necessary to meet its overall goal. The measure typically used is
|Changes to The Program (Since Prior FHWA Approval)
|When there has been a change to the State's program, you need to provide:
(1) a description of the change, (2) which relevant part of the regulation it corresponds
with, and (3) an explanation of how the change complies with the relevant portions of 49
CFR 26. Note, the detail and scope of this discussion might vary depending on the nature
of the change. For States which were approved previously with a condition attached to
future approvals, you should identify the condition and include the action taken by the
State to address the reasons for any change to address the condition or the conditions or
reasons why no action was necessary.
|You should conclude with a statement to the effect that "For the
above reasons, [State DOT's] goal setting methodology and race-neutral/race-conscious
division for FY [Year] is approved."
copy of goal methodology approved
Civil Rights, FHWA, HQ
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