Philadelphia International Airport (PHL) Overview of the DBE Program Update Federal Fiscal Years (FFY) 2017 2019 Presented by Philadelphia Airport Marriott April 27, 2016 Ken Weeden & Associates, Inc. Planning Consultants Raleigh-Wilmington-Atlanta
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 2017-2019 Kevin Weeden, Vice President, Ken Weeden & Associates, Inc. Questions and Answers 2
DBE Program Overview 49 CFR Part 26 - https://www.transportation.gov/civilrights/disadvantaged-business-enterprise 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
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
-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) http://www.census.gov/econ/cbp/index.html Most recent DBE directories and databases Directories that are updated monthly, in real time, etc. 5
-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
-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
-Market Area Determination (cont d) County Expenditures Feb '13 - Jan '16 Percentage in dollars Expended (Feb 13 - Jan 16) Philadelphia County, PA $73,062,324.25 72.65% Montgomery County, PA $27,504,175.00 27.35% TOTAL $100,566,499.25 100.00% 8
-Market Area Determination (cont d) County Number of % of Bidders Bidders Montgomery County, PA 11 39.29% Philadelphia County, PA 11 39.29% SUBTOTAL 22 78.58% Others 6 21.42% TOTAL 28 100.00% 9
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
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
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
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 237130 Structures Construction 237310 Highway, Street, and Bridge Construction Poured Concrete Foundation and Structure 238110 Contractors Electrical Contractors and Other Wiring Installation 238210 Contractors 238910 Site Preparation Contractors 324121 Asphalt Paving Mixture and Block Manufacturing 493110 General Warehousing and Storage 541310 Architectural Services 541320 Landscape Architectural Services 541330 Engineering Services 541340 Drafting Services 541360 Geophysical Surveying and Mapping Services 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 541370 Work Activities Surveying and Mapping (except Geophysical) Services 541380 Testing Laboratories Administrative Management and General 541611 Management Consulting Services 541620 Environmental Consulting Services 541922 Commercial Photography 561410 Document Preparation Services 561612 Security Guards and Patrol Services 561621 Security Systems Services (except Locksmiths) 561730 Landscaping Services 562111 Solid Waste Collection 562112 Hazardous Waste Collection 14
Analyze & Assign PROJECTS (FFY 2018) Taxiway Delta Taxiway Echo Taxiway Kilo 1 Taxiway Kilo 2 Taxiway Kilo 3 Com Apron NAICS CODE WORK ACTIVITY 237130 Power and Communication Line and Related Structures Construction 237310 Highway, Street, and Bridge Construction 238910 Site Preparation Contractors 324121 Asphalt Paving Mixture and Block Manufacturing 541310 Architectural Services 541330 Engineering Services 541340 Drafting Services 541360 Geophysical Surveying and Mapping Services 541370 Surveying and Mapping (except Geophysical) Services 541380 Testing Laboratories 541611 Administrative Management and General Management Consulting Services 541620 Environmental Consulting Services 541922 Commercial Photography 561410 Document Preparation Services 561612 Security Guards and Patrol Services 561621 Security Systems Services (except Locksmiths) 561730 Landscaping Services 15
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 237130 Power and Communication Line and Related Structures Construction 237310 Highway, Street, and Bridge Construction 238110 Poured Concrete Foundation and Structure 238210 Contractors Electrical Contractors and Other Wiring Installation Contractors 238910 Site Preparation Contractors 324121 Asphalt Paving Mixture and Block Manufacturing 541310 Architectural Services 541330 Engineering Services 541340 Drafting Services 541360 Geophysical Surveying and Mapping Services 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 541370 WORK ACTIVITY Surveying and Mapping (except Geophysical) Services 541380 Testing Laboratories 541611 Administrative Management and General Management Consulting Services 541620 Environmental Consulting Services 541922 Commercial Photography 561410 Document Preparation Services 561612 Security Guards and Patrol Services 561621 Security Systems Services (except Locksmiths) 561730 Landscaping Services 541370 Surveying and Mapping (except Geophysical) Services 17
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 - http://www.census.gov/econ/cbp 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
STEP 1 DBE BASE FIGURE FFY 2017 NAICS Code Work activities DBE firms All Firms 237130 Power and Communication Line and 4 29 Related Structures Construction 237310 Highway, Street, and Bridge Construction 18 40 238110 Poured Concrete Foundation and Structure 12 77 Contractors 238210 Electrical Contractors and Other Wiring 18 358 Installation Contractors 238910 Site Preparation Contractors 27 108 324121 Asphalt Paving Mixture and Block 0 9 Manufacturing 493110 General Warehousing and Storage 1 44 541310 Architectural Services 18 218 541320 Landscape Architectural Services 12 46 541330 Engineering Services 27 364 541340 Drafting Services 9 12 541360 Geophysical Surveying and Mapping Services 2 19 3
STEP 1 DBE BASE FIGURE FFY 2017 NAICS Code Work activities DBE firms All Firms 541370 Surveying and Mapping (except 3 11 Geophysical) Services 541380 Testing Laboratories 4 24 541611 Administrative Management and General 35 523 Management Consulting Services 541620 Environmental Consulting Services 14 58 541922 Commercial Photography 1 29 561410 Document Preparation Services 2 37 561612 Security Guards and Patrol Services 4 69 561621 Security Systems Services (except 3 40 Locksmiths) 561730 Landscaping Services 14 548 562111 Solid Waste Collection 10 51 562112 Hazardous Waste Collection 0 4 TOTAL 238 2702 STEP 1 DBE BASE 20 FIGURE = 8.81%
STEP 1 DBE BASE FIGURE FFY 2018 NAICS CODE WORK AREA DBE firms All firms 237130 Power and Communication Line and Related Structures Construction 4 29 237310 Highway, Street, and Bridge Construction 18 40 238910 Site Preparation Contractors 27 108 324121 Asphalt Paving Mixture and Block Manufacturing 0 9 541310 Architectural Services 18 218 541330 Engineering Services 27 364 541340 Drafting Services 9 12 541360 Geophysical Surveying and Mapping Services 2 3 541370 Surveying and Mapping (except Geophysical) Services 3 11 541380 Testing Laboratories 4 24 541611 Administrative Management and General Management Consulting Services 35 523 541620 Environmental Consulting Services 14 58 541922 Commercial Photography 1 29 561410 Document Preparation Services 2 37 561612 Security Guards and Patrol Services 4 69 561621 Security Systems Services (except Locksmiths) 3 40 TOTAL 185 2122 STEP 1 DBE BASE FIGURE = 8.72% 21
STEP 1 DBE BASE FIGURE FFY 2019 NAICS DBE All WORK AREA CODE firms firms 237130 Power and Communication Line and Related Structures Construction 4 29 237310 Highway, Street, and Bridge Construction 18 40 238110 Poured Concrete Foundation and Structure Contractors 12 77 238210 Electrical Contractors and Other Wiring Installation Contractors 18 358 238910 Site Preparation Contractors 27 108 324121 Asphalt Paving Mixture and Block Manufacturing 0 9 541310 Architectural Services 18 218 541330 Engineering Services 27 364 541340 Drafting Services 9 12 541360 Geophysical Surveying and Mapping Services 2 3 541370 Surveying and Mapping (except Geophysical) Services 3 11 541380 Testing Laboratories 4 24 Administrative Management and General Management Consulting 541611 35 523 Services 541620 Environmental Consulting Services 14 58 541922 Commercial Photography 1 29 561410 Document Preparation Services 2 37 561612 Security Guards and Patrol Services 4 69 561621 Security Systems Services (except Locksmiths) 3 40 561730 Landscaping Services 14 548 215 2557 STEP 1 DBE BASE FIGURE = 8.41% 22
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
Current Capacity of DBEs to Work Analyze past participation Fiscal year Goal Accomplishment Over/under FY 2011 14.90% 13.30% -1.60% FY 2012 14.90% 14.80% -0.10% FY 2013 14.90% 16.15% 1.25% FY 2014 14.39% 20.05% 5.66% FY 2015 14.39% 18.20% 3.81% MEDIAN 16.15% 1.25% 24
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
Disparity Study data Philadelphia disparity study - 2014 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
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 2017 8.81% + 16.15% + 22.0% = 46.96% 46.96% / 3 = 15.65% Adjusted DBE Goal FY 2018 8.72% + 16.15% + 22.0% = 46.87% 46.87% / 3 = 15.62% Adjusted DBE Goal FY 2019 8.41% + 16.15% + 22.0% = 46.56% 46.56% / 3 = 15.52% Adjusted DBE Goal 27
Adjustment of DBE Base Figure FISCAL YEAR GRANT AMOUNT DBE goal DBE share FY 2017 $24,872,000 15.65% $3,893,297 FY 2018 $11,283,000 15.62% $1,762,781 FY 2019 $9,607,000 15.52% $1,491,006 $45,762,000 $7,147,084 OVERALL GOAL 15.62% 28
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
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 26.51 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
Race-Conscious/Race-Neutral Participation (continued) Fiscal year Goal Accomplishment Over/under FY 2011 14.90% 13.30% -1.60% FY 2012 14.90% 14.80% -0.10% FY 2013 14.90% 16.15% 1.25% FY 2014 14.39% 20.05% 5.66% FY 2015 14.39% 18.20% 3.81% MEDIAN 16.15% 1.25% 31
Race-Conscious/Race-Neutral Participation (continued) Overall DBE Goal = 15.62% Race-neutral participation = 1.25% Race-conscious participation = 14.37% 32
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
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
QUESTIONS/COMMENTS Ken Weeden & Associates, Inc. www.kwaplanning.com 470-225-8413 kevin-weeden@kwaplanning.com 910-762-6297 kenneth-weeden@kwaplanning.com 35