Philadelphia International Airport (PHL) Overview of the DBE Program Update Federal Fiscal Years (FFY)
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1 Philadelphia International Airport (PHL) Overview of the DBE Program Update Federal Fiscal Years (FFY) Presented by Philadelphia Airport Marriott April 27, 2016 Ken Weeden & Associates, Inc. Planning Consultants Raleigh-Wilmington-Atlanta
2 DBE Program Consultation Meeting Agenda Welcome and Introductions Rochelle Cameron, CPA CEO, Philadelphia International Airport Folasade Olanipekun-Lewis Chief Administrative Officer, Philadelphia International Airport Kathleen Padilla Director, Office of Business Diversity, Philadelphia International Airport Purpose of DBE Program Public Meeting Kathleen Padilla Director, Office of Business Diversity Explanation of Overall DBE Goal for Federal Fiscal Year Kevin Weeden, Vice President, Ken Weeden & Associates, Inc. Questions and Answers 2
3 DBE Program Overview 49 CFR Part Must meet test of strict scrutiny Emphasis on process-over-product 2-step process: Goal Calculation & Goal Adjustment Breakout of Estimated Race-Neutral/Race-Conscious Participation Public Participation Program Implementation 3
4 Step 1: Calculation of Base Figure Must use most refined and latest data available Analyze project list; assign North American Industry Classification System (NAICS) codes Determine normal market area (NMA) Based on area from where substantial majority of bidders come Based on where substantial majority of dollars expended Determine number of all firms in NMA that are ready, willing and able to participate in Airport-related projects Determine number of certified or certifiable DBE firms in NMA that are ready, willing and able to participate Calculate Step 1 DBE Base Figure 4
5 -Most Refined Data Available Most recent County Business Patterns database County Business Patterns database updated every spring or summer; 2 years behind (2013 database updated in April 2015) Most recent DBE directories and databases Directories that are updated monthly, in real time, etc. 5
6 -Market Area Determination Market area based upon two (2) factors Area from where the substantial majority (70-75%) of bidders (successful and unsuccessful) have come AND Area where the substantial majority (70-75%) of contracting dollars have been spent historically 6
7 -Market Area Determination (cont d) Where substantial majority of bidders come from Bid tabulations from previous projects Bidders lists from pre-bid meetings Where substantial majority of dollars have been expended Look at previous projects, previous prime contractors and subcontractors County or MSA where prime contractors and subcontractors are based 7
8 -Market Area Determination (cont d) County Expenditures Feb '13 - Jan '16 Percentage in dollars Expended (Feb 13 - Jan 16) Philadelphia County, PA $73,062, % Montgomery County, PA $27,504, % TOTAL $100,566, % 8
9 -Market Area Determination (cont d) County Number of % of Bidders Bidders Montgomery County, PA % Philadelphia County, PA % SUBTOTAL % Others % TOTAL % 9
10 Analyze and Assign PHL PROJECTS (FFY 2017) North Apron Taxiway Delta Taxiway Delta 4 Taxiway Kilo R/W 9R Approach Light Pier Replacement Security Hardening Taxiway K/E and K/T Intersection Concrete Airfield Lighting / Vault Improvements Deicing Facility Improvements GRANT AMOUNT $24,872,000 10
11 Analyze and Assign PHL PROJECTS (FFY 2018) Taxiway Delta Taxiway Echo Taxiway Kilo 1 Taxiway Kilo 2 Taxiway Kilo 3 Com Apron GRANT AMOUNT $11,283,000 11
12 Analyze and Assign PHL PROJECTS (FFY 2019) Cargo City Apron Taxiway Juliet Taxiway Kilo 4 Taxiway Kilo 5 Taxiway Kilo 6 Taxiway Quebec Taxiway Romeo Taxiway Tango Taxiway Tango Alpha Taxiway Victor GRANT AMOUNT $9,607,000 12
13 Analyze & Assign Projects (FFY 2017) NAICS Code North Apron Taxiway Delta Taxiway Delta 4 Taxiway Kilo R/W 9R Approach Light Pier Replacement Security Hardening Taxiway K/E and K/T Intersection Concrete Airfield Lighting / Vault Improvements Deicing Facility Improvements Work Activities Power and Communication Line and Related Structures Construction Highway, Street, and Bridge Construction Poured Concrete Foundation and Structure Contractors Electrical Contractors and Other Wiring Installation Contractors Site Preparation Contractors Asphalt Paving Mixture and Block Manufacturing General Warehousing and Storage Architectural Services Landscape Architectural Services Engineering Services Drafting Services Geophysical Surveying and Mapping Services 13
14 Analyze & Assign Projects (FFY 2017) NAICS Code North Apron Taxiway Delta Taxiway Delta 4 Taxiway Kilo R/W 9R Approach Light Pier Replacement Security Hardening Taxiway K/E and K/T Intersection Concrete Airfield Lighting / Vault Improvements Deicing Facility Improvements Work Activities Surveying and Mapping (except Geophysical) Services Testing Laboratories Administrative Management and General Management Consulting Services Environmental Consulting Services Commercial Photography Document Preparation Services Security Guards and Patrol Services Security Systems Services (except Locksmiths) Landscaping Services Solid Waste Collection Hazardous Waste Collection 14
15 Analyze & Assign PROJECTS (FFY 2018) Taxiway Delta Taxiway Echo Taxiway Kilo 1 Taxiway Kilo 2 Taxiway Kilo 3 Com Apron NAICS CODE WORK ACTIVITY Power and Communication Line and Related Structures Construction Highway, Street, and Bridge Construction Site Preparation Contractors Asphalt Paving Mixture and Block Manufacturing Architectural Services Engineering Services Drafting Services Geophysical Surveying and Mapping Services Surveying and Mapping (except Geophysical) Services Testing Laboratories Administrative Management and General Management Consulting Services Environmental Consulting Services Commercial Photography Document Preparation Services Security Guards and Patrol Services Security Systems Services (except Locksmiths) Landscaping Services 15
16 Analyze & Assign PHL PROJECTS (FFY 2019) Cargo City Apron Taxiway Juliet Taxiway Kilo 4 Taxiway Kilo 5 Taxiway Kilo 6 Taxiway Quebec Taxiway Romeo Taxiway Tango Taxiway Tango Alpha Taxiway Victor NAICS CODE WORK ACTIVITY Power and Communication Line and Related Structures Construction Highway, Street, and Bridge Construction Poured Concrete Foundation and Structure Contractors Electrical Contractors and Other Wiring Installation Contractors Site Preparation Contractors Asphalt Paving Mixture and Block Manufacturing Architectural Services Engineering Services Drafting Services Geophysical Surveying and Mapping Services 16
17 Analyze & Assign PHL PROJECTS (FFY 2019) Cargo City Apron Taxiway Juliet Taxiway Kilo 4 Taxiway Kilo 5 Taxiway Kilo 6 Taxiway Quebec Taxiway Romeo Taxiway Tango Taxiway Tango Alpha Taxiway Victor NAICS CODE WORK ACTIVITY Surveying and Mapping (except Geophysical) Services Testing Laboratories Administrative Management and General Management Consulting Services Environmental Consulting Services Commercial Photography Document Preparation Services Security Guards and Patrol Services Security Systems Services (except Locksmiths) Landscaping Services Surveying and Mapping (except Geophysical) Services 17
18 Step 1: Calculation of Base Figure (continued) Determine number of all firms by NAICS code; determine number of DBE firms by NAICS code County Business Patterns database - DBE/MBE directories (PAUCP, SBA, etc.) Bidders lists Data from disparity study (if valid or applicable) Goal of another DOT recipient More information found in 49 CFR Part 26.45(c) 18
19 STEP 1 DBE BASE FIGURE FFY 2017 NAICS Code Work activities DBE firms All Firms Power and Communication Line and 4 29 Related Structures Construction Highway, Street, and Bridge Construction Poured Concrete Foundation and Structure Contractors Electrical Contractors and Other Wiring Installation Contractors Site Preparation Contractors Asphalt Paving Mixture and Block 0 9 Manufacturing General Warehousing and Storage Architectural Services Landscape Architectural Services Engineering Services Drafting Services Geophysical Surveying and Mapping Services
20 STEP 1 DBE BASE FIGURE FFY 2017 NAICS Code Work activities DBE firms All Firms Surveying and Mapping (except 3 11 Geophysical) Services Testing Laboratories Administrative Management and General Management Consulting Services Environmental Consulting Services Commercial Photography Document Preparation Services Security Guards and Patrol Services Security Systems Services (except 3 40 Locksmiths) Landscaping Services Solid Waste Collection Hazardous Waste Collection 0 4 TOTAL STEP 1 DBE BASE 20 FIGURE = 8.81%
21 STEP 1 DBE BASE FIGURE FFY 2018 NAICS CODE WORK AREA DBE firms All firms Power and Communication Line and Related Structures Construction Highway, Street, and Bridge Construction Site Preparation Contractors Asphalt Paving Mixture and Block Manufacturing Architectural Services Engineering Services Drafting Services Geophysical Surveying and Mapping Services Surveying and Mapping (except Geophysical) Services Testing Laboratories Administrative Management and General Management Consulting Services Environmental Consulting Services Commercial Photography Document Preparation Services Security Guards and Patrol Services Security Systems Services (except Locksmiths) 3 40 TOTAL STEP 1 DBE BASE FIGURE = 8.72% 21
22 STEP 1 DBE BASE FIGURE FFY 2019 NAICS DBE All WORK AREA CODE firms firms Power and Communication Line and Related Structures Construction Highway, Street, and Bridge Construction Poured Concrete Foundation and Structure Contractors Electrical Contractors and Other Wiring Installation Contractors Site Preparation Contractors Asphalt Paving Mixture and Block Manufacturing Architectural Services Engineering Services Drafting Services Geophysical Surveying and Mapping Services Surveying and Mapping (except Geophysical) Services Testing Laboratories 4 24 Administrative Management and General Management Consulting Services Environmental Consulting Services Commercial Photography Document Preparation Services Security Guards and Patrol Services Security Systems Services (except Locksmiths) Landscaping Services STEP 1 DBE BASE FIGURE = 8.41% 22
23 Step 2: Adjustment of Base Figure Current Capacity of DBEs to perform work Evidence from disparity studies Statistical disparities in ability of DBEs to secure financing, bonding, and insurance Data on employment, self-employment, education, training programs Any other data that would help to better measure the percentage of work that DBEs would be likely to obtain in the absence of discrimination 23
24 Current Capacity of DBEs to Work Analyze past participation Fiscal year Goal Accomplishment Over/under FY % 13.30% -1.60% FY % 14.80% -0.10% FY % 16.15% 1.25% FY % 20.05% 5.66% FY % 18.20% 3.81% MEDIAN 16.15% 1.25% 24
25 Disparity Study data Evidence from disparity studies To the extent you can make a correlation to the airport Disparity studies vary in content Some are more analytical and statistical in nature Some are more anecdotal in nature If data used, specify what data used, and its relevance If data not used, state in the methodology why the data were not used 25
26 Disparity Study data Philadelphia disparity study Airport projects considered Public Works projects Study recommended 22% DBE goal for public works projects Will average 22% recommendation with DBE base figure and past participation data 26
27 Adjustment of DBE Base Figure Add Step 1 DBE Base Figure to the median of the past achievement (16.15%) and disparity study recommendation (22.0%) FY % % % = 46.96% 46.96% / 3 = 15.65% Adjusted DBE Goal FY % % % = 46.87% 46.87% / 3 = 15.62% Adjusted DBE Goal FY % % % = 46.56% 46.56% / 3 = 15.52% Adjusted DBE Goal 27
28 Adjustment of DBE Base Figure FISCAL YEAR GRANT AMOUNT DBE goal DBE share FY 2017 $24,872, % $3,893,297 FY 2018 $11,283, % $1,762,781 FY 2019 $9,607, % $1,491,006 $45,762,000 $7,147,084 OVERALL GOAL 15.62% 28
29 Race-Conscious/Race-Neutral Participation Must meet maximum feasible portion of goal using race-neutral means Examples of race-neutral means Arranging solicitations, times for presentation of bids, quantities, specifications, and delivery schedules in ways that facilitate DBEs Providing assistance in overcoming limitations such as inability to obtain bonding or financing Providing technical assistance and other services 29
30 Race-Conscious/Race-Neutral Participation (continued) Ensuring distribution of the DBE directory, through print and electronic means, to the widest feasible universe of potential prime contractors Other means found in 49 CFR Part Overachievement of past goals can be used to determine RC/RN breakout Past participation by DBE prime contractors RN goal of similar airport in market area 30
31 Race-Conscious/Race-Neutral Participation (continued) Fiscal year Goal Accomplishment Over/under FY % 13.30% -1.60% FY % 14.80% -0.10% FY % 16.15% 1.25% FY % 20.05% 5.66% FY % 18.20% 3.81% MEDIAN 16.15% 1.25% 31
32 Race-Conscious/Race-Neutral Participation (continued) Overall DBE Goal = 15.62% Race-neutral participation = 1.25% Race-conscious participation = 14.37% 32
33 Public Participation Community Groups Small Business, Women-owned Business, Minority-owned Business organizations Small Business Development Centers Public notice on airport website advertising the goal; 30-day review and comment period 33
34 Program Implementation Responsibilities of DBELO & staff Gathers and reports statistical data and other information as required by DOT. Ensures that bid notices and requests for proposals are available to DBEs in a timely manner. Participates in pre-bid meetings Provides DBEs with information and assistance in preparing bids, obtaining bonding and insurance. Refer to original DBE plan Monitoring and enforcement Critical part of program; only way to measure success of program 34
35 QUESTIONS/COMMENTS Ken Weeden & Associates, Inc
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