State Department of Transportation Small Business Programs (2013)

Below is the uncorrected machine-read text of this chapter, intended to provide our own search engines and external engines with highly rich, chapter-representative searchable text of each book. Because it is UNCORRECTED material, please consider the following text as a useful but insufficient proxy for the authoritative book pages.

52 APPENDIX F Summary of Survey Responses 1. Agency/Organization Count Response 1 ADOT 1 Alabama DOT 1 Alaska DOT 1 Arkansas State Highway & Transportation Department 1 Caltrans 1 Colorado Dept. of Transportation 1 Connecticut Department of Transportation 1 DelDOT 1 Florida Department of Transportation 1 GA DOT 1 Hawaii DOT 1 INDOT 1 Idaho Transportation Department 1 Iowa DOT 1 Kentucky Transportation Cabinet/Office for Civil Rights & Small Business Development 1 Kansas Department of Transportation 1 LA Department of Transportation & Development 1 Maine Department of Transportation 1 Michigan Dept. of Transportation 1 Minnesota Department of Transportation 1 Mississippi DOT 1 NCDOT/Contractual Services Unit 1 NDDOT 1 NMDOT Office of Equal Opportunity Programs 1 Nebraska Department of Roads 1 Nevada Dept. of Transportation 1 New Hampshire Department of Transportation 1 New Jersey Department of Transportation 1 Office of the Director District Department of Transportation Office of Civil Rights 1 Ohio Department of Transportation 1 Oklahoma Dept. of Transportation 1 Oregon Department of Transportation

53 Count Response 1 PA Department of Transportation 1 Puerto Rico Highway and Transportation Authority 1 Rhode Island DOT 1 South Dakota DOT 1 Tennessee DOT 1 Texas Department of Transportation 1 Vermont Agency of Transportation 1 Virginia Department of Transportation 1 Washington State Department of Transportation/Office of Equal Opportunity 1 West Virginia Department of Transportation 1 Wisconsin Department of Transportation 1 Wyoming Department of Transportations 2. Do you have a Disadvantaged Business Enterprise (DBE) Program Plan? Value Count Percent % Yes 44 100% No 0 0% Don't know 0 0% Statistics Total Responses 44

54 3. When was it approved by the Federal Highway Administration (FHWA)? Value Count Percent % Date (MM/DD/YYYY) 22 50% Still Waiting 15 34.1% Don't Know 7 15.9% Statistics Total Responses 44 Open-Text Response Breakdown for "Date (MM/DD/YYYY)" Count Left Blank 1 01/10/2011 1 03/31/2000 1 04/20/2000 1 06/01/2008 1 06/12/2006 1 08/03/2004 1 09/11/2011 1 09/28/2011 1 11/03/2002 1 1982 1 2004 1 2006 1 2007 1 2010 1 April 15, 2009 1 April 2012 1 Conditional 3/29/2012 1 March 2000 1 October 2007 1 October 2010 1 Pending 1

55 4. Approximately how many firms are currently certified to participate in your DBE Program? Value Count Percent <100 3 6.8% 100 – 200 10 22.7% 200 – 300 2 4.5% 300 – 400 6 13.6% 400 – 500 2 4.5% 500 – 600 1 2.3% 600 – 700 4 9.1% 700 – 800 2 4.5% 800 – 900 2 4.5% 900 – 1,000 2 4.5% 1,250 – 1,500 3 6.8% 1,500 – 1,750 1 2.3% 1,750 – 2,000 1 2.3% 1,000 – 1,200 2 4.5% Greater than 2,000 3 6.8% Don't know 0 0% Statistics Total Responses 44 Sum 9,461.0 Average 249.0 Std. Dev. 287.55 Max. 900.0

56 5. Is your agency DBE Liaison Officer (DBELO) actively involved in implementing the DBE Program Plan? Value Count Percent Yes 42 95.5% No 2 4.5% Don't know 0 0% Statistics Total Responses 44 6. Does your State DOT DBE Program Plan include an element to facilitate participation of all small businesses, including DBEs, on federally-assisted contracts?

57 Value Count Percent Yes (Federal Aid Projects) 41 95.3% No 2 4.7% Don't know 0 0% Statistics Total Responses 43 Skipped 1 7. Does the DBE Program Plan's small business element apply to Local Public Agencies that receive federal funds? Value Count Percent Yes 27 61.4% No 13 29.5% Don't know 4 9.1% Statistics Total Responses 44

58 8. February 28, 2012, was the deadline to submit Small Business Element plans to FHWA. When do you anticipate your agency to implement this new program? Value Count Percent January – March 2012 10 22.7% April – June 2012 3 6.8% July – September 2012 3 6.8% October – December 2012 8 18.2% Don't know (please explain) 20 45.5% Statistics Total Responses 44 Open-Text Response Breakdown for "Don't know (please explain)" Count 6–9 months after approval 1 8 months after approval of the plan 1 9 months after approval per the regulations 2 As soon as we get approval 1 Have not received approval. Will implement within specified timeframe. 1 Ready to implement upon approval from FHWA. 1 Waiting on approval from FHWA 1 Nine months after plan approval by FHWA FAA FTA. 1 Within 9 months of receiving FHWA approval 1 DBE program was modified only to include basic elements of small business participation, but no small business program has been implemented 1 Small Business component has not been approved...implementation will be within 9 months of approval 1 We did not submit a formal plan but we did submit an exception that explained how we meet most of our DBE participation goals using race-neutral means. Most of our construction contracts are under $1M and therefore most of our prime contractors are small businesses. We have race-conscious goals on some projects to meet our overall goal but this combined with our contracting environment facilitates the utilization of all small businesses. 1

59 Open-Text Response Breakdown for "Don't know (please explain)" Count The regulation requires implementation within 9 months of approval. We have submitted to FHWA, FTA, and FAA and we are still waiting on approval. 1 PA DOTs Proposed Small Business Program Submitted to FHWA on 2/28/12 as required. Will implement upon approval from FHWA. 1 Most activities, such as the Small Contracting Program and the state-funded Small Business Supportive Services and Outreach have been implemented since 2007. ODOT has already been engaged in unbundling practices. As part of the SBE, we are now considering encouraging Prime-Contractor Identified Small Business Opportunities and Consortia /Joint Ventures, and if feasible, would implement in the Oct-Dec 2012 timeframes. 1 We have a 3-phase approach to implementation. We plan to start phase 1 as soon as we get approval. 1 We submitted to FHWA what we do and our partnership with the Dept of Commerce when it comes to small business. And, there is language in our DBE programs with encouragement of use of small businesses. However, to have a specific small business element plan exclusive to KDOT we currently do not as we have worked in partnership with the Kansas Department of Commerce when it came to small business. 1 It depends on the feedback we receive and when we receive approval. We anticipate needing the full nine months to implement our program. 1 Due to a retirement, AHTD is in hiring process of a new EEO Section Head who will lead this effort 1 9. Did/Does your state require legislative action to implement your SBE program? Value Count Percent Yes 4 9.3% No 32 74.4% Don't know 7 16.3% Statistics Total Responses 43 Skipped 1

60 10. How long did/will it take for the legislature to approve? Value Count Percent 1 year 3 10.3% More than 2 years 1 3.4% Did not approve 10 34.5% Don't know 15 51.7% 2 years 0 0% Statistics Total Responses 29 Sum 3.0 Average 1.0 Max 1.0 Skipped 15 11. Please let us know if there are any state legislative or legal impediments to implementing an SBE program in your organization. 1 Currently run a Veterans Program on our State Funded Construction Projects 1 Legislative approval not required 5 N/A 1 N/A 1 No 1 None 1 Our state legislators approved our SB program 1 Unknown—None that we foresee 1 N/A Count Response

61 Count Response 1 No 2 None 1 State prequalification requirements provide some limitations 1 Our ESB Program was adopted in 1992. We believe we have developed a USDOT compliant program under the legislation but would need to go through the legislative process for a broader program. 1 Yes, there are impediments with respect to limiting contracting opportunities based on business size, as there is no authority in the state's public contracting code to do so. However, ODOT’s SBE works around this issue by targeting supportive services and outreach to small businesses and providing small contracting opportunities. 1 If we were to implement small business set-asides (which we will not do at this time), it would require legislative action to change state law. 1 We structured our plan to follow State Statute; otherwise we would not be able to implement the plan without legislative approval which would likely not be forthcoming. 1 None...actually the Legislature were the ones who came up with it on the State funding side in 1993. 1 We cannot apply the small business element to state funds because we are legally enjoined from applying the DBE program goal setting to state-only funded projects. 1 TxDOT does have an existing state SBE Program and there were some fundamental issues in terms of designating a separate federal SBE Program. 12. Will your agency DBE Liaison Officer (DBELO) be involved in the implementation of an SBE program? Value Count Percent Yes 41 93.2% Don't know 3 6.8% No 0 0% Statistics Total Responses 44

62 13. Does your organization currently have any type of small business program other than a race- conscious DBE Program? Value Count Percent Yes 14 31.8% No 30 68.2% Don't Know 0 0% Statistics Total Responses 44 14. Following are some common small business race-neutral participation programs that have been implemented by various state DOTs to facilitate participation of federally-assisted contracts for all small businesses, including DBEs. Please select the name of your program.

63 Value Count Percent Emerging Small Business Program 1 6.7% Emerging Small Business Enterprise Program 1 6.7% Small Business Enterprise Program 3 20% Small Business Program 4 26.7% Other (Please provide name of Program) 6 40% Micro-Small Business Program 0 0% Statistics Total Responses 15 Skipped 1 Open-Text Response Breakdown for "Other (Please provide name of Program)" Count Race-neutral practices that promote small business utilization 1 Small Business Development Program 1 Small Business Participation Program 1 We have a race-neutral small business program 1 VDOT’s small business race-neutral program is a state program and is not used on federally-assisted contracts. 1 Small Contracting Program (Note: Oregon also has an Emerging Small Business certification that DBE's may participate in.) 1 15. How long has the program been in place? Value Count Percent <6 Months 4 26.7% 1 year – 5 years 2 13.3% > 5 years 9 60% 6 – 12 months 0 0% Don’t know 0 0%

64 Statistics Total Responses 15 Sum 2.0 Average 1.0 Max 1.0 Skipped 1 16. Does your program's definition of small business mirror the definition set out in 49 CFR Part 26? (Small business concern means, with respect to firms seeking to participate as DBEs in DOT-assisted contracts, a business with gross receipts averaged over a three-year period that do not exceed the size standards set forth in 13 CFR Part 121 associated with the type of business it performs on federally- assisted contracts, but in no case exceeds $22.41 million as specified in §26.65(b)). Value Count Percent Yes 10 66.7% Don't know 1 6.7% No (please provide a definition of your agency's Small Business Program) 4 26.7% No 0 0% Statistics Total Responses 15 Skipped 1

65 Open-Text Response Breakdown for "No (please provide a definition of your agency's Small Business Program)" Count One-half SBA size standard, capped at one-half of DBE size limit. 1 Ours set a limit of $1.5 million gross minus materials and an independent firm to be eligible. 1 ODOT identifies “small business” participation by tracking contracting and subcontracting with Disadvantaged Business Enterprise (DBE), Minority-owned Business Enterprise (MBE), Women-owned Business Enterprise (WBE), and Emerging Small Business (ESB) firms that are certified by Oregon’s Office of Minority, Women and Emerging Small Business (OMWESB). ODOTs CRCT database is updated nightly with current certification data from OMWESB, and these data are used to report on small business participation on ODOT contracts. DBE size is per the 49 CFR 26; M/WBE is per size standards as defined by the Small Business Administration, North American Industry Classification System Codes (NAICS) size standards; and ESB includes two tiers—(1) For Oregon-based firms with 19 or less employees whose average annual gross receipts over the last three years are under $1,699,953 for construction firms and under $679,981 for non-construction- related firms, and (2) For Oregon-based firms with 29 or less employees whose average annual gross receipts over the last three years are under $3,399,907 for construction-related businesses and under $1,133,302 for non-construction businesses. 1 The Small Business Enterprise (SBE) Program offers small businesses another avenue of maximizing their opportunities of doing business with TxDOT. The program applies only to highway construction and maintenance projects that are funded 1 entirely by state and/or local funds. 17. Is there a personal net worth requirement for your Small Business Program? If so, does it conform with the PNW limit of $1.32 million as set forth in the DBE program? Value Count Percent Yes 5 33.3% No 8 53.3% Don't Know 2 13.3% Statistics Total Responses 15 Skipped 1

66 18. What is the personal net worth requirement for your Small Business Program? Value Count Percent $1,320,000 4 44.4% Don't know 5 55.6% $750,000 to $1,319,999 0 0% $500,000 to $749,999 0 0% $250,000 to $499,999 0 0% Less than $250,000 0 0% Statistics Total Responses 9 Skipped 7 19. What is the overall estimated annual cost of the Small Business Program (including staffing requirements)?

67 Value Count Percent Less than $50,000 2 15.4% $50,001 to $100,000 2 15.4% $300,001 to $500,000 1 7.7% Don't know 8 61.5% $100,001 to $200,000 0 0% $200,001 to $300,000 0 0% $500,001 to $750,000 0 0% Greater than $750,000 0 0% Statistics Total Responses 13 Skipped 1 20. Is there a certification process in place for the Small Business Program; e.g., does your staff confirm firm size and/or PNW if applicable? Value Count Percent Yes (please describe this process) 9 69.2% No 4 30.8% Don't know 0 0% Statistics Total Responses 13 Skipped 1

68 Open-Text Response Breakdown for "Yes (please describe this process)" Count Application which requires business, personal and affiliate tax returns. 1 Firm must provide notarized statement of compliance with the size standard 1 Size Standard is reviewed and verified. 1 The firm will undergo the same scrutiny as DBE certification applications. 1 The firm's annual gross does not exceed $4 million in a 3 year period 1 The ESBE program mirrors the DBE program in terms of the certification process and eligibility standards. 1 We have an audit system that audits every firm over a 2 year period to ensure that they are in compliance. 1 Small businesses' PNW and firm size will be verified for participation in the Small Business Enterprise Program. 1 There is a registration process for the Small Contracting Program. The staff does not check the PNW or Business Size of all participants. However, participation by DBE, M/WBE, and ESB is tracked, all of which must be certified and meet small business size standards as already stated. 1 21. Does an online directory exist for the Small Business Program? Value Count Percent Yes 5 38.5% No 8 61.5% Don't know 0 0% Statistics Total Responses 13 Skipped 1

69 22. Approximately how many firms are currently certified to participate in the Small Business Program? Value Count Percent <50 2 18.2% 50 – 100 1 9.1% 101 – 150 2 18.2% 301 – 500 1 9.1% Greater than 500 1 9.1% Don't know 4 36.4% 150 – 200 0 0% 201 – 300 0 0% Statistics Total Responses 11 Sum 553.0 Average 138.3 Std. Dev. 96.24 Max. 301.0 Skipped 3

70 23. Are current certified DBEs automatically qualified to participate in the Small Business Program? Value Count Percent Yes 8 61.5% No (please explain) 5 38.5% Don't know 0 0% Statistics Total Responses 13 Skipped 1 Open-Text Response Breakdown for "No (please explain)" Count DBE must apply to the ESB program 1 N/A 1 They have to show that their gross is less than or equal to $1.5 million minus materials. 1 Under DBE Program they can have a greater size $22–$41 million; SBC only up to $4 million 1 When the Small Contracting Program was first created existing DBE's were automatically signed up for the SCP, but new DBE's must register to participate and are encouraged to do so during outreach events. 1 24. Following are methods for fostering small business participation which are explicitly mentioned in the 49 CFR § 26.39 regulatory guidelines. Please indicate any that are currently used by your agency. (Please check as many as appropriate.)

71 Value Count Percent Structuring contracting requirements to facilitate competition by small business concerns 22 68.8% Unbundling of contract requirements to facilitate small business participation in procurements as prime contractors or subcontractors 19 59.4% Establishing a race-neutral small business set-aside for prime contracts under a stated amount (e.g. $1 million). 12 37.5% In multi-year design-build contracts or other large contracts (e.g. for "megaprojects") requiring bidders on the prime contract to specify elements of the contract or specific subcontracts that are of a size that small businesses, including DBEs, can reasonably perform 7 21.9% On prime contracts not having DBE contract goals, requiring the prime contractor to provide subcontracting opportunities of a size that small businesses, including DBEs, can reasonably perform, rather than self-performing all the work involved 6 18.8% Statistics Total Responses 32 Skipped 11 25. If your agency restricts or sets aside projects for small business participation only, what is the approximate dollar threshold for those projects? Value Count Percent $25,000 1 2.6% $50,000 1 2.6% $100,000 2 5.3% $250,000 1 2.6% $500,000 4 10.5% $500,001 - $1 million 2 5.3% Do not have restricted projects 26 68.4% Don't know 1 2.6% Over $1 million 0 0% Statistics Total Responses 38 Skipped 5

72 26. Please rate on a scale of 1 to 5 the effectiveness of each method that is used by your agency to foster small business participation (1 = Not at all effective, 2 = Somewhat effective, 3 = Effective, 4 = Very effective, 5 = Extremely effective) or click the "Have not used" button. 1 2 3 4 5 Have not used Responses Structuring contracting requirements to facilitate competition by small business concerns. 2.6% 1 7.7% 3 12.8% 5 10.3% 4 17.9% 7 48.7% 19 39 Unbundling of contract requirements to facilitate small business participation in procurements as prime contractors or subcontractors. 5.1% 2 7.7% 3 15.4% 6 12.8% 5 5.1% 2 53.8% 21 39 Establishing a race-neutral small business set-aside for prime contracts under a stated amount (e.g. $1 million). 2.6% 1 2.6% 1 5.1% 2 5.1% 2 7.7% 3 76.9% 30 39 In multi-year design-build contracts or other large contracts (e.g. for "megaprojects") requiring bidders on the prime contract to specify elements of the contract or specific subcontracts that are of a size that small businesses, including DBEs, can reasonably perform. 2.6% 1 7.7% 3 5.1% 2 5.1% 2 5.1% 2 74.4% 29 39 On prime contracts not having DBE contract goals, requiring the prime contractor to provide subcontracting opportunities of a size that small businesses, including DBEs, can reasonably perform, rather than self- performing all the work involved. 7.9% 3 7.9% 3 2.6% 1 2.6% 1 2.6% 1 76.3% 29 38 Identifying alternative acquisition strategies and structuring procurements to facilitate the ability of consortia or joint ventures consisting of small businesses, including DBEs, to compete for and perform prime contracts. 5.6% 2 5.6% 2 8.3% 3 8.3% 3 0.0% 0 72.2% 26 36 Ensuring that a reasonable number of prime contracts are of a size that small businesses, including DBEs, can reasonably perform. 2.6% 1 2.6% 1 13.2% 5 10.5% 4 15.8% 6 55.3% 21 38 27. Over the last five (5) years, please indicate the average size of prime construction contracts awarded:

73 Value Count Percent $500,000 or less 1 2.4% $500,001 to $1,000,000 3 7.1% $1,000,001 to $5,000,000 19 45.2% $5,000,001 to $10,000,000 6 14.3% Over $10,000,000 2 4.8% Don't know 11 26.2% Statistics Total Responses 42 Skipped 1 28. Over the last five (5) years, please indicate the average size of construction subcontracts in place on construction contracts: Value Count Percent $150,000 or less 9 22% $150,001 to $350,000 6 14.6% $350,001 to $750,000 4 9.8% $1,000,001 to $5,000,000 2 4.9% Don't Know 20 48.8% $750,001 to $1,000,000 0 0% Over $5,000,000 0 0% Statistics Total Responses 41 Skipped 2

74 29. Over the last five (5) years, please indicate the average size of prime consultant contracts awarded: Value Count Percent $500,000 or less 9 22% $500,001 to $1,000,000 9 22% $1,000,001 to $5,000,000 6 14.6% Don't know 17 41.5% $5,000,001 to $10,000,000 0 0% Over $10,000,000 0 0% Statistics Total Responses 41 Skipped 2 30. Over the last five (5) years, please indicate the average size of consultant subcontracts in place on consultant contracts:

75 Value Count Percent $150,000 or less 11 27.5% $150,001 to $350,000 7 17.5% $350,001 to $750,000 1 2.5% Don't know 21 52.5% $750,001 to $1,000,000 0 0% $1,000,001 to $5,000,000 0 0% Over $5,000,000 0 0% Statistics Total Responses 40 Skipped 3 31. Who in your agency decides how a construction contract will be structured for letting? Value Count Percent Highway Construction/Engineering Contracting 33 82.5% Procurement/Purchasing 2 5% Other (please describe) 5 12.5% Statistics Total Responses 40 Skipped 3 Open-Text Response Breakdown for "Other (please describe)" Count Capital Program Development & Management 1 Collaborative effort between the Program Development Division and Contract Administration 1 Contract Services Administrator, oversees the Competitively Bid Contracts Coordinator 1 Contracts Division 1 Region field techs, Engineers - most requirements come from the regions 1

76 32. Who in your agency decides how an architectural/engineering (A&E) contract will be structured for letting? Value Count Percent A&E/Professional Services Contracting 28 71.8% Procurement/Purchasing 1 2.6% Other (please describe) 10 25.6% Statistics Total Responses 39 Skipped 4 Open-Text Response Breakdown for "Other (please describe)" Count Left Blank 1 Bureau of Design 1 Collaborative effort between the Program Development Division and Contract Administration 1 Contract Services Administrator, oversees the Consultant Control Coordinator 1 Contracts Division 1 Engineering Division 1 Executive Director/Legal Counselor 1 Most of our design work is done in-house 1 Same as the construction contracts 1 Office responsible for work requests use of consultant and their division director grants approval to perform selection. Office request outlines services needed. 1

77 33. How is the size of a contract determined? Please explain. Count Response 1 Based on scope of services 1 By the scope of work 1 Depends on the location, budget and a host of factors 1 Depends on the project's complexity and location 1 Don't know 1 Don't know 1 Engineer's estimate and available budget 1 Engineer's estimate and low bid. 1 Engineer's estimate or scope of project 1 I do not know 1 Need and available funding 1 Needs, budget, complexity 1 Planning and Contracts Divisions review project needs, timeline and budget. 1 Project based 1 STIP, Public necessity, Budget, Programming, Executive Director 1 Scope of work 1 Scope of work and funding available 1 Various. Location, Type of Work, Scope of Project, etc. 1 Typically based on the scope of the project by our planners 1 Varies based on scope of work desired and available funding 1 Work items in the project 1 Engineer creates an estimate which is approved by committee. DBE committee also reviews and determines goal. 1 For minor agreements (less than $100,000), companies can be chosen informally if they meet qualifications, or off the Term Agreement List. Up to $500,000 dollars, agreements can be awarded from companies on ITD's Term Agreement List (a pre- qualification list). Over $.5 million, projects must be put out as RFPs. 1 The size of the contract depends on the type of work that needs to be completed and the budget available. 1 For A&E Projects, it is based upon the anticipated needs of the project and services not-available with agency staff. For construction projects, it is based upon an Engineers Estimate and priorities of WSDOTs Monitoring Systems. For example, WSDOT has traffic monitoring, pavement cycle monitoring, bridge preservation monitoring, maintenance needs, etc. The higher the priority (e.g. a bridge needing preservation in a high fatality zone would be a higher priority than new cable guardrail in a remote, low altitude location) the more likely the project will be conducted in the current biennium. If there is more than one need in a specific area then two items (e.g. paving and installing guardrail) could be addressed simultaneously which would influence the size of the project. Also, the project is considered for design-build if it is greater than $1M and WSDOT does not have the workforce available to design the project in the necessary timeframe. This is a simplistic explanation of a complicated process. 1 Scoping, engineering estimate, location. We look at a number of factors such as geography, size of the project, safet y, anticipated bidders. Bundling projects is rare and is only done when it is beneficial to our program and to the economy. 1 Based upon need and budget. We have a very small budget and therefore most of our work is done in-house or it is less than $1M. We have only had two projects over $25M and we don't anticipate any large construction contracts in the future. 1 Executive Mgmt reviews all projects prior to including them in the STIP plan which is then reviewed by our stakeholders.

78 34. What dictates the size of a project? Value Count Percent Engineer's estimate of project 22 57.9% Budget 2 5.3% Other (please describe): 14 36.8% Statistics Total Responses 38 Skipped 5 Open-Text Response Breakdown for "Other (please describe)" Count Combination of Engineers Estimate and Scheduling 1 Don't know 1 Engineer's estimate and available budget 1 Estimate and budget 1 STIP (Statewide Transportation Improvement Program) 1 The scope of work 1 Work items 1 Estimate is factor, funding is factor, long range planning and impact 1 Multiple factors, including budget and project needs 1 Varies based on scope of work and available funding 1 Estimate, budget, logical termini, need, environmental factors, project constraints, location, type of work, etc. 1 Not really understanding the question. The size of the project is based on the need, complexity, location, etc. Budget definitely places into it as well as the Engineer's Estimate. 1 Conditions, priorities - most contracts are resurfacing rather than new projects so there is a budget established from past history. Planning happens five years out so we set project sizes at that time. 1 The size of a projects is dictated by the amount of work needed to produce an efficient and effective transportation solution. 1

79 35. Following are some common challenges faced by states in implementing a small business program or facilitating small business participation. Please rate on a scale of 1 to 5 the degree to which each challenge has affected your states small business participation efforts (1 = Not a problem at all, 2 = A minor problem, 3 = A problem, 4 = A significant problem, 5 = A severe problem). 1 2 3 4 5 Don't Know Responses Administrative challenges (budget constraints, lack of staff). 2.6% 1 17.9% 7 20.5% 8 30.8% 12 23.1% 9 5.1% 2 39 Internal agency challenges (lack of support or attention from upper management, bureaucracy, agency reluctance to alter method of procuring contracts or to unbundle contracts planned in advance). 30.8% 12 20.5% 8 17.9% 7 12.8% 5 7.7% 3 10.3% 4 39 36. Please provide information regarding other challenges faced by your agency: Count Response 1 Budget is the big one. 1 Lack of guidance from our operating DOT administration. 1 Listed above in #35 2 N/A 1 Since approval has not been received as of this date, cannot answer at this time. 1 We are in transition mode 1 Coordination with other state and federal programs 1 Another agency is responsible for DBE certification and the state's small business program; it will be a challenge to collaborate with the certifying agency to verify PNW and revenues. 1 The political environment in Arizona is not conducive to adding contracting limitations based on federal objectives. 1 PA DOTs Proposed Small Business Program has not been approved by FHWA for implementation. Awaiting approval. 1 I have only been in this position for 2 months so I am still learning how everything works. We have a very small staff and it is going to be extremely difficult to add SBE outreach and services without increasing staff and funding. Our DBE Liaison is also the Contracts Division Chief so we know there will be cooperation at the contracting level. 1 NH is primarily race neutral with contracts that vary in size from $50 million dollar highway construction to small 100-200K locally administered town projects. We don't have difficulty securing a variety of subcontracting opportunities for small business, including DBEs. 1 Have not encountered challenges to date. Small businesses (based on current SBA size standards) are performing the majority of work on federal-aid projects. 1 In order for us to be able to make a small business program work, we will need to have our construction and consultant contract letting teams work together. Currently, they are separate and this will be a challenge because we will need buy-in from the different groups. 1 We can barely provide effective services to our DBE participants with the employees we currently have. The small business program is certainly a step in the right direction; however we have little resources to commit to it. 1 Capacity of DBE/SBEs to perform even when contracts are unbundled due to financial and bonding issues 1 Public understanding of the new program will be most challenging. DBE's will not understand how the SBE requirements fit in or affect them. DBE is DOT only while SBE will apply across the board. 1 Need to explain the necessity and applicability of the small business effort. All stakeholders want more money and opportunity. Small business is equal to DBE; primes complain that DBE get enough through DBE program. 1 Unstable funding source - every year we do not know how much we will have in our budget. Eroding infrastructure - prioritizing projects. Frequent (future 3 year rule) disparity studies - requires staff to allocate more time to the activities of the study which takes away from how much they can do directly for program initiatives.

80 Count Response 1 We have a limited number of staff dedicated to outreach to DBEs. By adding new outreach to the SBE community and additional industry associations, we will be stretched. We also do not have any additional funding for this effort. We have recommended creating a position for a Small Business Advocate that will manage outreach, monitoring and applications. We also do not have a formal process in place to certify SBEs. Our plan for online certification was rejected because it was considered "self-certifying" even though we intend to review applications. The challenge we have heard in the contracting community is how will the SB program be enforced when there is not a goal. We can encourage usage but there is no accountability. Contractors do not like that the SBE and DBE programs will be separate instead of combined with percentages of the goal set for both. 1 HI has had a race-neutral DBE program for several years. A recent disparity study found underutilization of firms owned by African Americans, Hispanic Americans, Native Americans (including Native Hawaiians) and women in both construction and construction-related professional services. Based on this finding, the Study recommended that HDOT include only those firms identified by the Study as experiencing large and statistically significant disparities in HDOTs race-neutral program for credit toward race-conscious or contract goals. If the waiver is approved, this will mean that participation by firms owned by Asian- Pacific American males (including those of Japanese, Chinese, Filipino and Korean ethnicity) will be limited to fulfilling race- neutral or overall DBE goals set by HDOT. For race-conscious or contract goals on federal-aid projects, prime contractors will be given goal credit for the utilization of Hispanics, African Americans, Native Americans, and women. HDOT will be conducting extensive outreach to certify more DBE firms. It is anticipated that race-conscious or contract goals will not be implemented until federal fiscal year 2013 (October 1, 2012 to September 30, 2013) so that HDOT may increase its pool of DBEs through this outreach. If the waiver is not approved, HI will have to meet a goal of 53.43%. This will place an undue burden on our team because we will need to certify more DBE's and this will be our priority over a general small business program. 1 Staffing continues to be an issue. The DBE program is a one person program so adding requirements that will not necessarily add benefit to the Department or the Contractor is costly. Most of our contracts are less then $5 Million 84%, with 42% being less then $1 Million. We just don't have the budget to support such regulation. 37. Please indicate all applicable supportive services that are provided by your Agency to help only small businesses, including DBEs compete on contracts: Value Count Percent Currently only provide supportive services to DBE certified firms. 26 65% Provide firms with business development assistance, such as marketing and training assistance or help with business management, business plans, or financial statements 26 65% Provide firms with bidding assistance, such as holding mock workshops on the bidding process or providing assistance with plan reading, bidding and estimating, job costing, and writing/designing statements of qualifications (SOQs). 27 67.5% Assist firms in using technology, such as electronic bidding, Web site development, and conducting business over the Internet. 28 70% Provide firms with one-on-one business reviews and/or technical assistance. 25 62.5% Provide training classes and technical education. 27 67.5% Other (please provide additional information below) 14 35%

81 Statistics Total Responses 40 Skipped 1 Open-Text Response Breakdown for "Other (please provide additional information below)" Count Business fair in partnership with SBA and local banks, one-on-one networking 1 No Supportive Services Program 1 Non-DBE small businesses are referred to the State program for supportive services. 1 Organize meet and greet sessions between primes and subs. 1 Working Capital Loan Fund and Mentor Protégé Program 1 Newsletters, statewide training calendars, etc. Leverage services with partnerships with SBA, SBDCs, PTAC, and other small business organizations within the State of Idaho. 1 225 small business events per year, mock contracting workshops, mandatory pre-bid meetings for networking, meet the prime (ad hoc and project specific), 1 ODOT both runs a mentor protégé program for its ESB firms (many of which are also DBE's). ODOT also sponsors Port of Portland's mentor protégé program. ODOT directly offers training and outreach on how to do business with state agencies and indirectly provides other supportive services by sponsoring programs like Turner School of Construction Management. 1 Provide introductions to prime contractors as needed, educate on state and federal bidding procedures, work with firms as requested to overcome individual challenges as they arise ( payment issues, subcontracting issues, bidding advice and education) 1 We do many outreaches within the state to interest folks in doing business with NCDOT. We have notaries at these outreaches so they can submit their completed application at that moment for SBE certification. 1 We have used an outside consultant for 10 years to provide supportive services. This has worked very well for us. The consultant does one-on-one sessions, business development, business assessments, newsletters, etc. We have found this is the most productive and effective way to facilitate DBE and small business participation. 1 Although most of our supportive services are for DBE certified firms, we do offer some assistance in the above checked areas 1 Annual business development conference with other cooperative agencies, reimbursement of association dues, training symposium with curriculum developed over last 2 years including accounting, pre-qualification, etc. 1 We have an outside consultant that provides supportive services. The consultant is required to be in the DOT office 3 days per week for one-on-one consultations. This has worked very well. They also provide statewide training on finance, taxes, business law, bidding, and bonding. We are also focusing on getting small businesses up to speed on computer technology. 99% of our bids are submitted electronically so it is important that subs submit their quotes to primes electronically. We have established 100 free accounts for DBE firms but only 17 originally signed up. We are doing additional outreach to get more DBE firms on board. 1 38. Does your Agency fund a supportive services program for non-DBE firms?

82 Value Count Percent % Yes 8 19.5% No 32 78% Don't Know 1 2.4% Statistics Total Responses 41 39. How are supportive services funded? Value Count Percent State funds 13 38.2% Local funds 1 2.9% Other 24 70.6% Statistics Total Responses 34 Sum 200.0 Average 100.0 Max 100.0 Skipped 7

83 Open-Text Response Breakdown for "Other" Count 100% federally funded through DBE program 2 Both DBE and OJT SS are 100% FHWA funded 1 DBE SS is federally funded. 1 FHWA 3 FHWA DBE supportive services funds 3 Federal funds 3 Federal aid 1 Federal and private funding through public-private partnerships 1 Federal funds only 1 N/A 2 No funds used 1 Not determined yet. 1 State and Federal funds 1 Supportive Services for DBEs are supported by federal dollars 1 Through federal and state funds and industry partnerships 1 We also have an Admin fund that is used for staff salaries and supportive services. 1 40. If you know of any local government, who has a small business program, please identify the agency and a contact if available. Count Response 1 City of Atlanta, Dekalb County 1 City of Hartford and City of New Haven 1 City of Honolulu 1 City of Omaha Human Rights and Relations Department 1 Municipality and Railroad 3 N/A 1 No 1 None known 1 Regional Transportation District (RTD), City and County of Denver 1 SBA 1 Sound Transit, Forrest Gillette (206) 398-5029 & forrest.gillette@soundtransit.org 1 TSB - Mary Montgomery 1 Dept. of General Services and Governor's Office of Diversity Services. We are looking at how to work with them to cooperate on the SBE program. 1 Only full or partially federally-funded organizations, such as SBA, SBDCs, PTAC, SCORE, Women's Business Center, etc. 1 Department of Commerce - Rhonda Harris 785 296-3425; KS Business Development Center - Greg Panic hello 785 296-6514; Office of Native American Affairs - www.sba.gov/naa; Women's Business Center - Terri Taylor 316 269-6273 ext. 223; Wichita SBA - Wayne Bell 316 269-6566 ext. 200;

84 41. If you have any additional comments on any aspect of implementing a small business program that facilitates participation of federally-assisted contracts for all small businesses, including DBEs, please use this space to enter them. Count Response 5 N/A 1 Our small business program is currently under federal review. 1 See supplemental information 1 See www.iowadot.gov/civilrights/index.aspx 1 We have done some other things which assist small businesses such as waiving the GC license and not requiring bonding for jobs in the SBE program. We have also started the same type of program on the consultant side and called it the SPSF (Small Professional Services Firms) where we advertise RFPs for projects under $250,000. 1 We have good internal cooperation and support from management for inclusion of a small business program. We have also started doing outreach to the community to let them know that this is coming. We are following the regulations as outlined and have submitted our plan with a focus on using restricted projects of less than $400,000 as our primary strategy. We do not know how we will fund expanding supportive services to all small businesses and could use guidance on that aspect. We currently only include DBE firms but once the program is expanded to all small businesses we can't exactly exclude them from meetings or services because it would be like cousin who can't come to dinner. 1 We would like more specific guidance from FHWA on what to do with the program and how to make it effective. There were general guidelines and then all states had to figure it out for themselves. 1 Sorry, no additional information. NH's race neutral program and typical contract size and scope of work provide sufficient diverse contracting opportunities for small business, including DBE's. 1 One-on-one networking has been the most effective for us. However, with our current situation regarding race-neutral participation vs. race-conscious goals, we will need to focus on certifying and supporting DBE firms (other than Asian-Pacific American males). 1 Outreach has been our best method. We also post everything on our website and have streamlined bidding with electronic systems. On July 31, the state is going to vote on an $18B 10 year state funded transportation investment act. The Transportation Board just passed a resolution to encourage participation of minority, women, veteran and small businesses on those state funded projects (1500 total over 10 years). The other most important change that we have made to increase small business participation is to eliminate retainage on all projects. This has put money into the pockets of primes and subs in a timely manner allowing them to better manage cash flow. We also encourage primes to waive bonding for subs and we provide assistance to subs for getting bonded. We also enforce prompt payment and pro-rating payments. 1 Funding and staffing are huge issues. Guidance on what exactly is required is severely lacking. Also, FHWA hasn't even released the RFP for DBE/SS funding for this year, although it was supposed to be released in December 2011. How can we plan for FFY13? Also, the new funding formulas are very vague. How do we plan? We have no state or local funding. We have one staff member for DBE Program Administration, DBE Supportive Services and OJT Supportive Services, so resources are very sparse. 1 We could use additional guidance on how to implement the program. We did our own research of other states and talked with CA but they are way too big for us to compare to and Iowa spent a lot of time talking with us but they were still trying to figure out their plan as well. 1 We have attempted to unbundle contracts but this has not significantly increased DBE participation as primes but it has improved subcontracting opportunities and DBE participation on megaprojects. We have an overall DBE goal of 10.18% and typically obtain 3% race-neutral participation on projects without DBE goals. Our training program has been the most beneficial to DBE firms. Having DBE participation goals has helped improve the mindset of primes using small businesses as subcontractors. We also have great relationships with industry associations and have been able to facilitate networking between primes and DBE firms. 1 The timing of this survey is not great. Yes we had to have the plans in by Feb 28th, but we also knew it would take FHWA/FTA/FAA time to review and approve/ask for more details. By doing the survey now, you are not capturing the 'approved' work the state is agreeing to do. States have 9 months after approval to put their final SBE plan together. So redoing this or a similar survey summer 2013 would be an interesting comparison.

Abbreviations used without definitions in TRB publications: A4A Airlines for America AAAE American Association of Airport Executives AASHO American Association of State Highway Officials AASHTO American Association of State Highway and Transportation Officials ACI–NA Airports Council International–North America ACRP Airport Cooperative Research Program ADA Americans with Disabilities Act APTA American Public Transportation Association ASCE American Society of Civil Engineers ASME American Society of Mechanical Engineers ASTM American Society for Testing and Materials ATA American Trucking Associations CTAA Community Transportation Association of America CTBSSP Commercial Truck and Bus Safety Synthesis Program DHS Department of Homeland Security DOE Department of Energy EPA Environmental Protection Agency FAA Federal Aviation Administration FHWA Federal Highway Administration FMCSA Federal Motor Carrier Safety Administration FRA Federal Railroad Administration FTA Federal Transit Administration HMCRP Hazardous Materials Cooperative Research Program IEEE Institute of Electrical and Electronics Engineers ISTEA Intermodal Surface Transportation Efficiency Act of 1991 ITE Institute of Transportation Engineers MAP-21 Moving Ahead for Progress in the 21st Century Act (2012) NASA National Aeronautics and Space Administration NASAO National Association of State Aviation Officials NCFRP National Cooperative Freight Research Program NCHRP National Cooperative Highway Research Program NHTSA National Highway Traffic Safety Administration NTSB National Transportation Safety Board PHMSA Pipeline and Hazardous Materials Safety Administration RITA Research and Innovative Technology Administration SAE Society of Automotive Engineers SAFETEA-LU Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (2005) TCRP Transit Cooperative Research Program TEA-21 Transportation Equity Act for the 21st Century (1998) TRB Transportation Research Board TSA Transportation Security Administration U.S.DOT United States Department of Transportation