Airport Authority Meeting AgendaCity of Kalispell
AIRPORT AUTHORITY BOARD
Meeting Agenda
November 17, 1997
1. Approval of Disadvantaged Business Enterprise Plan
As part of the Master Plan, FAA is requiring the City, as an initial
step, to adopt the DBE Plan. We have completed the plan and
enclosed it for your review. We will fill in the appropriate blanks
before sending it to the FAA. The Advisory Board has discussed
it and is submitting it for your review.
A MOTION to approve the DBE is needed before we can submit
it to the FAA in Seattle.
2. Update on FAA Fly -In
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Incorporated 1892
.elephone (406) 758-7700
Douglas Rauthe
FAX (406) 758-7758
Mayor
Post Office Box 1997
Kalispell, Montana
Clarence W. Krepps
Zip 59903-1997
City Manager
City Council
Members:
TO: Clarence Krepps, Ci4Mager
Gary W. Nystul
FROM: Michael Baker, Dire
wardl
Parks & Recreation
Cliff Collins
Ward I
DATE: October 30, 1997
Norbert F. Donahue
Ward II
RE: Airport DBE Grant
Dale Haarr
Ward II
Dear Clarence,
Jim Atkinson
Ward III
Attached is a draft of the Airport DBE Policy, with
John Graves
attached Appendixes, and a copy of the MDT Contractors
Ward III
System Query Results.,.
Pamela B. Kennedy
Ward IV
I am available to discuss the contents at your
M. Duane Larson
convenience.
Ward IV
MB/dlw
Reference:
0-��p e Section 23.45(a)
CITY OF 2 AIRPORT COMMISSID
The City of Kalispell (Sponsor) has established a Disadvantaged
Business Enterprise (DBE) program in accordance with the
requirements of the U.S. Department of Transportation (DOT). As a
recipient of funding from the DOT, the City of Kalispell signed an
assurance to comply with the provisions of 49 CFR Part 23,
"Participation by Disadvantaged Business Enterprise in DOT
Programs."
It is the policy of the City of Kalispell that DBE's, as defined
in 49 CFR Part 23, shall have the maximum opportunity to
participate in the performance of contracts assisted in whole or
in part by funds granted by the DOT.
The City's policies prohibit discrimination against any person
because of race, color, sex, or national origin, in the award or
performance of any contract subject to the requirements of 49 CFR
Part 23.
The City of Kalispell will require its employees, agents, and
contractors to adhere -to= the - provisions -of this= program.
This policy statement is disseminated to the Airport Authority and
all departments of the authority, to organizations of minority and
disadvantaged businesses and to nonminority business and community
organizations of the City of Kalispell.
Doug Rauthe, Chairman, Airport Authority
City of Kalispell
Date:
1
Reference:
Section 23.45(b)
The City Manager for the City of Kalispell Airport Authority is
designated the DBE Liaison Officer. The Liaison Officer has a
staff of one professional employee assigned to the DBE program on
a full-time basis and one support personnel who devote a portion
of their time to the program.
The DBE Liaison Officer is the Airport Manager,
Kalispell City Airport, and has primary responsibility for:
1. Developing, managing, and implementing the DBE program on a
day-to-day basis;
2. Carrying out technical assistance activities for DBEs;
3. Disseminating information on available business opportunities
so that DBE's are provided an equitable opportunity to compete for
FAA -assisted contracts awarded by the City of Kalispell.
Other personnel who have been assigned DBE program responsibilities
include: _
1. The Project Manager -f or -Public. Works'.'---
2. Personnel Specialist, is responsible for:
a. Providing information to the DBE Liaison Officer on
contracting and leasing opportunities, together with a breakdown
of subcontracting possibilities.
b. Consulting with the DBE Liaison Officer on procurement
policies, including bonding, licenses, and other requirements.
C. Explaining the DBE participation requirements at prebid
conferences.
3. The Project Manager, who is responsible for ensuring that
solicitations contain the clauses and goals required by this
program.
4. The General Counsel for the City of Kalispell Airport
Authority, who reviews certification actions and contract clauses
for legal sufficiency.
2
Reference:
Section 23.445 (c)
Were-. - . f - •. is �. .,
The City of Kalispell will develop and use affirmative action
techniques to facilitate DBE participation in FAA -assisted
contracting. These techniques will include:
1. Arranging solicitations or requests for proposals, time for
presenting bids or proposals, quantities, specifications, and
delivery schedules so as to facilitate DBE participation.
2. Providing assistance to DBE's in overcoming barriers in the
procurement process such as the inability to obtain bonding,
financing, or technical assistance.
3. Carrying out information and communication programs on
contracting procedures and specific contracting opportunities in a
timely manner, with such programs being bilingual where
appropriate.
These procedures will be applied to all types of FAA -assisted
contracts, including those for professional, technical,
consultant, or managerial services; construction; and the
procurement of materials;,, supplies,_ personnel, fac il-- ,t es, : and
equipment. Efforts -will be -.made <to _fac Iitate DBE _participation
in prime and subcontract opportunities. -
nth r Affirmative Action
The following are other affirmative actions the sponsor may take
in order to facilitate DBE participation:
1. Provide information to DBE firms about the sponsor's
organization, functions, and full range of contractual needs.
2. Offer instructions and clarification on bid specifications,
the sponsor's procurements policy, procedures, and general bidding
requirements.
3. Maintain a file of successful bid documents from past
procurements and permit DBE's to review and evaluate these
documents.
4. Conduct debriefing sessions to explain why certain bids were
unsuccessful.
3
5. Provide DBE firms with information on future procurements and
contracting schedules.
6. Provide instructions about job performance requirements.
7. Provide information on certification procedures,
subcontracting, and bonding requirements.
8. Place bid notices in the Daily Inter Lake, other major local
newspapers, as well as periodicals of interest to the
disadvantaged community.
9. Develop mailing lists for newsletters that include DBE's and
their associations.
10. Send bid notices to DBE trade associations, technical
assistance agencies, DBE economic development groups, and to DBE's
with capabilities relevant to the bid notice, as identified by the
sponsor's DBE directory.
11. Make bid specifications available to DBE contractor
associations and technical assistance agencies.
12. Provide DBE's and DBE organizations with lists of majority
firms bidding as prime contractors.
13. Use a lead time of ays, if allowable, for
advertisement of all invitations r bid so that all firms have
ample time to develop a complete bid package or proposal and
secure necessary assistance.
14. Hold pre -bid conferences to provide firms with an opportunity
to inquire about the DBE requirements.
The sponsor may distribute the information and data through a
combination of written materials, handbooks, seminars, workshops,
bulletins, advertisements, and other effective means. The sponsor
may request the assistance of DBE trade associations or agencies
who are able to aid in efforts to -provide DBE's an equitable
opportunity to compete.
4
Section 23.45 (d)
The City of Kalispell has investigated the full extent of services
offered by banks owned and controlled by minorities and women in
the community. Based on our search, the City of Kalispell will
utilize the services of:
We found no banks owned and controlled by minorities and
women.
The City will investigate any new banks established in the
community in the future that are owned by minorities and women and
use their services, when feasible.
The City of Kalispell provides the following notification to each
prime contractor who will perform on an FAA -assisted project:
"The City of Kalispell Airport Authority encourages you to
make the greatest feasible use of the services offered by
banks owned and controlled by minorities and women.
Information on these services may be obtained from the Airport
Manager."
5
Reference:
Section 23.45 (e)
The City of Kalispell has compiled and will maintain and update a
DBE Directory, which is located in the Project Manager's Office,
Kalispell City Hall.
The Montana State Department of Transportation Directory will be
used to supplement the City's Directory. Directories of other
agencies may also be used when a project requires a search for
DBE's beyond the normal recruiting areas.
The City's Directory lists firms that are capable of performing
general contracting and particular solicitations. The Directory
is organized by type of work the contractor desires to perform,
i.e., general construction, lighting, marking, engineering, etc.
The Directory indicates those certified by the Small Business
Administration (SBA) under the Section 8(a) program, those
certified by the State Department of Transportation and some firms
that do not have current certification.
The following information is shown for each firm:
1. Company Name
2. Type of Contractor
3. Address
4. Telephone Number
5. Owned by Woman, Minority, or other DBE
6. Contact Person
The City will update the Directory annually. The update will
include any additional DBE's certified during that period.
In the event a bidder names other DBE's it desires to use, these
firms will be included in the Directory if they can be certified.
Other DBE's that desire to be listed will also be included, upon
request.
The Directory is made available to bidders and proposers in their
efforts to meet the DBE goals established by the City of Kalispell
R
and made a part of bid specifications. The Directory is a primary
source for locating potential DBE contractors.
Sources of In ormd inn
Listed below are sources of information the sponsor may use to
compile and update its directory:
1. State and local directories.
2. Organizations funded by the Minority Business Development
Agency (MBDA) of the Department of Commerce.
3. Local and regional offices of the Small Business Administration.
4. National Minority Supplier Development Counsel DBE Data Bank.
7
Reference:
Section 23.45 (f)
%1VoTw_To1FV4WM WeW.15PTET#T=W DOs • • t: �•
The Kalispell Airport Authority will primarily rely upon the DBE
certifications conducted by the Montana DOT. However, for
applications for certification which are submitted with bids for
AIP-assisted contracts, and for which the Montana DOT can not act
upon in a timely manner, the Authority will use the following
procedures. The City may also accept the certifications made by
other DOT recipients.
The City of Kalispell requires prime contractors to make good
faith efforts to replace a DBE subcontractor that is unable to
perform the contract successfully with another DBE. Substitutions
of DBE subcontractors after bid opening and during contract
performance must be approved by the City of Kalispell. In these
instances,.the City of Kalispell verifies the eligibility of the
substitute firm.
j'
Any business that desires to participate as a DBE will be required
.:° to complete and submit Schedule A (Appendix 1) to the City of
Kalispell. Any business that desires to participate as a joint
venture DBE will, in addition, be required to complete Schedule B
(Appendix 2). The -schedules must.be signed and notarized by the
authorized representative of the business.
The required Schedule must accompany the DBE participation
information submitted to the City of Kalispell by competitors.
A firm seeking certification as a DBE will not be required to
submit Schedule A or B if either of the following applies:
1. The potential DBE contractor states in writing that it has
submitted the same information to or has been certified by the
City of Kalispell, any DOT element, or other Federal agency that
uses essentially the same definition and ownership and control
criteria as the DOT. In this case, the potential DBE must obtain
the information and certification (if made) from the other agency
and submit it to the City; or
2. The potential DBE contractor has been determined by the Small
Business Administration to be owned and controlled by socially and
economically disadvantaged individuals under Section 8(a) of the
Small Business Act, as amended.
8
t`
Note 1: In addition to the above circumstances, a Schedule A or B
is not required if the sponsor has established a different
certification process that has been approved by DOT. In these
instances, the firm must submit the information required by that
process.
Section 23.45 (f)
Note 2: The Section 8(a) program provides disadvantaged
businesses with opportunities to participate in Federal Government
contracting. The Part 23 regulations incorporate the definition
of a "small business concern" contained in the Small Business Act,
subject to the statutory $14 million cap. The regulations also
incorporate the definition of "socially and economically
disadvantaged individuals" used in the Small Business Act, except
that women are included in the definition for purposes of Part 23.
The City of Kalispell will take at least the following steps in
determining whether a firm may be certified as a DBE:
1. Reference Montana DOT Directory for DBE Certifications.
Listed Contractors are considered DBE Certified at this point.
2. Perform an on -site visit to the offices of the firm and to any
job sites on which the firm is working at the time of the
eligibility investigation!.*--
3. Obtain the resumes or work histories of the principal owners
of the firm and personally interview these individuals.
4. Analyze the ownership of stock in the firm, if it is a
corporation;
5. Analyze the bonding and financial capacity of the firm.
6. Determine the work history of the firm, including contracts it
has received and work it has completed.
7. Obtain or compile a list of equipment owned or available to
the firm and the licenses of the firm and its key personnel to
perform the work it seeks to do as part of the DBE program;
8. Obtain a statement from the firm of the type of work it
prefers to perform as part of the DBE program.
*Per guidance from the FAA, office and job site visits may be
0
omitted from the investigation in any of these situations:
1. When the City, at its discretion, accepts the certification of
another DOT recipient, which included visits conforming to the
regulations.
2. When the City obtains the report of a site visit completed by
another DOT recipient, which the City relies on. A firm applying
for certification may be required to supply such report or cause
the other recipient to supply it. The City will then draw its own
conclusions regarding eligibility.
3. When the City recertifies a firm that it previously reviewed
on -site, and eligibility issues (e.g., change in ownership) have
not arisen that make a second visit necessary. In the absence of
such issues, an on -site visit need be conducted only once.
Reference:
Appendix A, Subpart D
Whenever the City of Kalispell comes to believe that a firm with a
current certification is no longer eligible, the firm will be
f
afforded the rudiments of due process prior to revoking its
eligibility. The steps to be used are:
1. A letter will be sent to_the_firm, stating that the City is
contemplating decertification. A brief description of the reasons
for the proposed action will be included.
2. The firm will be given an opportunity to respond in person and
in writing to present information and arguments. An informal
meeting or hearing may be part of the process, but a formal
adversary proceeding will not be used.
While these procedures are not a regulatory requirement, the DOT
has recommended them to make the process fair and to prevent
unnecessary procedural litigation.
Note 1: When a sponsor denies certification or completes a
decertification, it may advise the firm that an appeal may be
filed within 180 days of the decision with the office named below.
An appeal must be in writing, dated and signed, and should be made
after all appeal procedures of the airport sponsor have been
exhausted.
Departmental Office of Civil Rights
Department of Transportation
400 7th Street, Southwest
BE
Washington, D.C. 20590
Note 2: The FAA may disseminate to all recipients copies of the
certification decisions rendered by the Departmental Office of
Civil Rights (DOCR). Often, the same firm applies for
certification or is certified by more than one recipient. The
decisions are in response to appeals of certification denials or
so-called "third -party complaints" brought under 49 CFR 23.55.
The DOCR decisions apply only to the actions that were contested
and do not bind other recipients to make the same judgement
concerning a firm's eligibility. Other recipients, who have
granted certification to a firm that is adversely affected by a
DOCK decision, are advised to reexamine their records to determine
if the decision raises a certification issue. Each recipient must
make its own decision based on the record, since firms sometimes
reorganize or otherwise restructure their ownership and control.
At any time that the recipient considers decertifying a firm, the
"Decertification Procedures" outlined in this plan should be
followed.
Reference: Section 23.61
To qualify for certification, a firm must meet the definition of a
disadvantaged business enterprise (DBE). The definition used by
the City of Kalispell. -is- as follows
A small business concern:
I. Which is at least 51 percent owned by one or more socially and
economically disadvantaged individuals, or, in the case of any
publicly owned business, at least 51 percent of the stock of which
is owned by one or more socially and economically disadvantaged
individuals; and
2. Whose management and daily business operations are controlled
by one or more of the socially and economically disadvantaged
individuals who own it.
D rmina Bona of Business Si._ Reference: Appendix B, Subpart D
The first step in the certification process is to make a
determination of business size. If the applicant is not a "small
business concern," as defined below, it will not be certified by
the City of Kalispell, even though it may be owned and controlled
by socially.and economically disadvantaged individuals and
eligible in all other respects. Even a firm certified by the
Small Business Administration (SBA) under the 8(a) program is not
11
l
eligible if it is not small.*
1. The size standards established by the SBA in 13 CFR Part 121,
as revised on May 25, 1988, are used for making size
determinations. (See Appendix 9.) These standards supersede the
ones shown in Appendix B of Subpart D.
*The Department has stated that the fflk6 unit for small
business concerns, which is discussed below, applies to Section
8(a) firms. Sponsors have the authority and obligation to require
a Section 8(a) firm applying for certification or recertification
to submit financial figures indicating its average annual gross
receipts for the three years prior to the date of the application.
ter.:. . ,
If o firm has ne f s in q xcess;. ion
standard, e'"4fi. n t k or decert ie by
the sponsor. A firm that refuses to supply information to enable
the sponsor to make this determination may be either denied
certification or decertified by the sponsor. Neither the DOT nor
a sponsor may require a Section 8(a) firm to submit other
eligibility information, including any pertaining to ownership and
control, or social and economic disadvantage. A sponsor who
believes that the Section 8(a) status of a firm is questionable
should communicate the information to the Small Business
Administration, which is solely empowered to grant or revoke 8(a)
certifications.
2. However, no firm<is considered. -,-small if, including its
affiliates, it averages annual gross receipts in excess of $16.5
million over the previous three fiscal years (Section 505(d)(2),
Airport and Airway Improvement Act of 1982, as Amended). Thus, a
general contractor must "graduate" from the program once its
receipts exceed the $16.5 million ceiling, even though the SBA
standard for general contractors is $17 million.
3. Contractors are still subject to applicable lower limits
established by the SBA. For example, the SBA size limit for
electrical contractors is $7 million (average of annual gross
receipts for three-year period). The $7 million limit, rather
than the $16.5 million ceiling, governs in size determinations of
these contractors.
4. For AIP-funded subcontracts of $10,000 or less, a firm is
small under the SBA regulations if, including its affiliates, it
has no more than 500 employees.
5. For AIP-funded subcontracts over $10,000 and prime contracts,
a firm is small under the SBA regulations if, including its
affiliates, it meets the applicable standard in terms of average
gross receipts, number of employees, or other measure.
12
While for many of the businesses used in AIP
standard is measured in gross receipts, this
For example, a manufacturer of concrete prod
small if it has no more than 500 employees.
businesses earns gross receipts in excess of
cap, it would not qualify as small and hence
DBE, even though it may have less than 500 ei
projects, the SBA
may not always be so.
acts (SIC 3272) is
If one of these
the $16.5 million
for eligibility as a
nployees.
6. All affiliates of a firm, as well as the firm itself, are
considered when determining gross receipts earned or number of
persons employed. Affiliation exists if one firm controls or has
the power to control the other, or a third party or parties
controls or has the power to control both firms.
7. Information on gross receipts earned by an applicant is
obtained from its submission of Schedule A (Appendix 1).
8. If a firm applies for certification in more than one category
(e.g., general construction and special trade subcontractor), the
applicable SBA standard is the one that describes the work the
firm will perform under the AIP-funded contract.
9. Size determinations will be reviewed annually in connection
with the recertification process.
Socially and „conomically Reference: Section 23.89
Disadvantaged Ind-_vidu-als
1. Any person having a current :�.- .,;_ ` from the Small
Business Administration is cons.idere o be socially and
economically disadvantaged.
2. The airport sponsor makes a "rebuttable presumption" that
individuals in the following groups * who are citizens of the
United States (or lawfully permanent residents) are socially and
economically disadvantaged:
b. Black Americans, which includes persons having origins in
any of the Black racial groups of Africa;
c. Hispanic Americans, which includes persons of Mexican,
Puerto Rican, Cuban, Central, or South American, or other Spanish
or Portuguese culture or origin, regardless of race;
d. Native Americans, which includes persons who are American
Indians, Eskimos, Aleuts, or Native Hawaiians;
13
e. Asian -Pacific Amer ranar which includes persons whose
origins are from Burma, Thailand, Malaysia, Indonesia, Singapore,
Brunei„ Japan, China, Taiwan, Laos, Cambodia (Kampuchea),
Vietnam, Korea, the Philippines, Samoa, Guam, the U.S. Trust
Territories of the Pacific islands (Republic of Palua), Republic
of the Marshall Islands, Federated States of Micronesia, or the
Commonwealth of the Northern Marianas Islands, Macao, Hong Kong,
Fiji, Tonga, Kiribati, Tuvalu, or Nauru; and
f. Asian -Indian Americans,which includes persons whose
origins are from India, Pakistan, Bangladesh, Sri LankaBhutan, the
Maldives Islands, or Napal.
g. Members of other groups found to be disadvantaged by the
SBA under Section 8(a) of the Small Business Act.
These groups were changed by an amendment to the SBA's
regulations 13 CFR part 124 published on August 21, 1989 (See
Federal Register at 54 F.R. 34692.)
3. Other individuals may be found to be socially and economically
disadvantaged on a case -by -case basis. For example, a disabled
Vietnam veteran, an Appalachian white male, or another person may
claim to be disadvantaged. If such individual requests that his
or her firm be certified as a DBE, the City of Kalispell, as part
of the certification process, will determine whether the
individual is socially and -economically -disadvantaged under the
criteria in Appendix, C of Subpart-D. Thes-e --.owners- must ---.._
demonstrate that-their.disadvantaged status arose from -individual
circumstances, rather than by virtue of membership in a group.
Reference: Section 23.69
Any third party may present evidence challenging whether a firm's
owners who are presumed to be socially and economically
disadvantaged are truly disadvantaged. Individuals certified as
8(a), however, are not subject to these challenges.*
When the City of Kalispell receives a written challenge to the
disadvantaged status of a business owner that is certified or
seeking certification, the City will make a determination of
social and economic disadvantage. The City itself may also
initiate an inquiry.
The guidelines in 49 CFR 23.69 and Appendix C will be used for
these actions. The procedures are informal; strict rules of
evidence do not apply.
While a challenge is in progress, the presumption of social and
14
economic disadvantage continues, and if the firm has been
certified, it will continue to be eligible as a DBE.
* If a challenge is made to the owners of an 8(a) firm, the
sponsor should refer the information or question to the SBA
for resolution, as indicated on page 16.
Eligibility Standards Reference: Section 23.53
The City of Kalispell will use the following standards to
determine whether a firm is owned and controlled by one or more
socially and economically disadvantaged individuals.
1. Bona fide membership in a group of socially and economically
disadvantaged individuals must be established on the basis of the
applicant's claim that he or she is a member of such group and is
so regarded by that particular disadvantaged community. However,
the City of Kalispell is not required to -accept the claim if it
is determined to be invalid.
Proof of ancestry alone is not conclusive evidence of
membership in a group of socially and economically disadvantaged
individuals. The fact that a person's grandfather or other
relative belonged to one of these groups does not necessarily
qualify the applicant.as_-a member _for purposes of DBE
certification.
If the individual has not held himself or herself out to be a
member of the community of disadvantaged individuals, has not
acted as a member of that community, and would not be identified
by persons in the population at large as a member of the group,
the individual is not considered as belonging to that
disadvantaged group for purposes of DBE certification.
2. An eligible DBE must be an independent business. The
ownership and control by disadvantaged persons must be real,
substantial, and continuing and must go beyond the pro forma
ownership of the firm as reflected in its ownership documents.
The disadvantaged owners must enjoy the customary incidents of
ownership and must share in the risks and profits commensurate
with their ownership interests, as demonstrated by an examination
of the substance rather than form of arrangements. Recognition
of the business as a separate entity for tax or corporate
purposes is not necessarily sufficient for recognition as a DBE.
In determining whether a potential DBE is an independent
business, the City of Kalispell considers all relevant factors,
including the date the business was established, the adequacy of
15
its resources for the work of the contract, and the degree to
which financial, equipment leasing, and other relationships with
non -DBE firms vary from industry practice.
3. The disadvantaged owners must also possess the power to
direct or cause the direction of the management and day-to-day,
as well as major decisions on matters of management, policy, and
operations. The firm must not be subject to any formal or
informal restrictions which limit the customary discretion of the
disadvantaged owners. There must not be restrictions through,
for example, bylaw provisions, partnership agreements, or charter
requirements for cumulative voting rights or otherwise that
prevent the disadvantaged owners, without the cooperation or vote
of any owner who is not socially and economically disadvantaged,
from making a business decision of the firm.
4. If the owners of the firm who are not socially and
economically disadvantaged individuals are disproportionately
responsible for the operation of the firm, then the firm is not
controlled by socially and economically disadvantaged individuals
and is not eligible. Where the actual management of the firm is
contracted out to individuals other than the owner, the persons
having the ultimate power to hire and fire the managers are
considered as controlling the business.
5. All securities which constitute ownership and/or control of a
corporation for purposes -of establishing.it as a DBE must be held
directly by socially and economically disadvantaged -individuals.
No securities held ii -trust or by any, guardian,fot�- a minor_,-tsha-11 =-
be considered as held by socially and economically disadvantaged
individuals in determining the ownership or control of a
corporation.
6. The contributions of capital or expertise by the socially and
economically disadvantaged individuals to acquire their interests
in the firm shall be real and substantial. Examples of
insufficient contributions include a promise to contribute
capital, a note payable to the firm or its owners who are not
socially and economically disadvantaged, or the mere participation
as an employee, rather than as a manager.
7. In addition to the above standards, special consideration is
given to the following circumstances:
a. Newly formed firms and firms whose ownership and/or
control has changed since the date of the advertisement of the
DOT -assisted contract are closely scrutinized to determine the
reasons for the timing of the formation or change in the firm.
b. A previous and/or continuing employer -employee
r
16
relationship between or among present owners is carefully reviewed
to ensure that the employee -owner has management responsibilities
and capabilities, as referenced above.
c. Any relationship between a DBE and a non -DBE which has
an interest in the DBE is carefully reviewed to determine if the
interest of the non -DBE conflicts with the requirements for
ownership and control.
8. A joint venture will be certified if the DBE partner of the
joint venture meets the eligibility standards, is responsible for
a clearly defined portion of the work to be performed, and shares
in the ownership, control, management responsibilities, risks, and
profits of the joint venture.
9. A joint venture is eligible to compete in a DBE set -aside if
the DBE partner of the joint venture meets the eligibility
standards; the DBE partner's share in the ownership, control,
management responsibilities, risks, and profits of the joint
venture is at least 51 percent; and the DBE partner is responsible
for a clearly defined portion of the work to be performed.
10. A business applying for certification as a DBE or as a joint
venture DBE must cooperate with the City of Kalispell in supplying
any additional information which may be requested in order to make
a determination. For example, the applicant may be required to
provide income tax statements.
11. The City of�-Ka7L-ispe1{1.safeguards,:_:from disclosure -to
unauthorized persons information that reasonably may be regarded
as confidential business information, consistent with Federal,
state, and local law.
12. once certified, a DBE will be required to update its
submission annually by submitting a new Schedule A or certifying
that the Schedule A on file is still accurate. Firms are notified
upon certification that a new Schedule A must be submitted
whenever there is a change in the firm's ownership or control.
13. The denial of certification by the City of Kalispell is final
for the particular contract and any other contracts being let at
the time of the denial (except when the Department of
Transportation reverses the denial, following an appeal). Firms
denied certification may correct deficiencies in their ownership
and control and reapply for certification only for future
contracts.
17
Reference: Section 23.45(g
Section 23.64
• i - i • • • - • - • M •
The program must contain a single overall goal for the use of
DBE's in AIP-funded contracting, together with a description of
the methodology employed in establishing it. (Appendix 4 contains
a sample methodology.)
The following guidelines apply when establishing the overall goal:
• . I 1 • a nw. Is 10 - 11 P I K:I.=, • . t — • — 11 t ,
Whenever possible, an engineer's estimate of the costs should be
provided.
The overall goal may cover a one-year period or may be set for a
' particular grant, project, or group of grants and/or projects.
Whichever method is used, the goal must be updated annually.
72
The overall goal ,and ,-the base frc#m which f he _ gQal ie :calculated
must reflect both construction and nonconstruction contracts
funded by the AIP. Eligible nonconstruction includes funding for
architectural, engineering, planning consultants, and other
professional services; purchase of vehicles and equipment (e.g.,
snow plows, crash/fire/rescue vehicles) and supplies.
While contracts to purchase land are excluded from the
goal -setting process, all other contracts let under land
acquisition projects, such as for real estate survey and
appraisal, are included.
Funds received under the AIP for work that is accomplished by the
sponsor's own employees or the employees of another public agency
("force account") are excluded from consideration. Other costs
that are not contracted (e.g., for administration and advertising)
should also be excluded.
• t • • •— •11 • ,—•
Sponsors and their contractors must, as a minimum, seek DBE's in
18
the same geographical area in which they seek contractors or
subcontractors generally for a given solicitation.
The relevant geographical area may vary depending on the contract.
For example, if a sponsor advertises for general contractors in a
5-county area to do a construction project, then the availability
of DBE's for that project must be based on its search in the
5-county area.
If the same sponsor uses a larger area, such as state-wide, to
advertise for professional services, the DBE goal for these
contracts must be based on its search on a state-wide basis.
3. Consult the Directory and other sources to determine the
F-1+FTaF1:T9a47li r : t
Sponsors may consult, in addition to their own DBE directory, the
directories or lists of State and local agencies, other DOT
recipients, the Chamber of Commerce, the Small Business
Administration, the Minority Business Development Agency of the
Department of Commerce, and other listings. These sources should
provide a basis for determining the availability of DBE's in the
relevant areas capable of performing the work of the contracts.
Based on a review of the directories and prior accomplishments,
sponsors should identify potential for DBE's to participate as
prime or subcontractors in the=AIP-funded.projects--during the goal - =
period. The following factors should be considered:
a. The number and types of contracts to be awarded and the
number and types of DBE's likely to be available to compete for
those contracts; and
b. The past results of the sponsor's efforts to contract
with DBE's and the reasons for the high or low level of those
results.
The above approach provides for practical goals that are related
to the known availability of qualified DBEs.
19
rMOWENU90•
The l by dividing the Federal share of
potential "awairs to DBE's (dollar value) by the Federal share of
all prime contract awards (dollar value) forecast for the goal
period. Appendix 6 contains information on the Federal share.
Overall DBE _
Goal
Federal Share of Potential DBE Awards ($)
Federal Share of All Prime Contract Awards ($)
In the example in Appendix 4, the Federal share of all project
costs is 90%, and the calculation becomes:
(90%) x $125,500 = $112,950
Overall DBE = 13.9%
Goal
(90%) x $900,000 = $810,000
If the overall goal does not represent an increase over the
previous year's accomplishments, the sponsor must provide an
explanation why an increase cannot reasonably be achieved.*
Sponsors should submit information for any additional AIP-funded
work to be undertaken during the goal period for which estimates
are not available at the time of program submission. Potential
for DBE participation should also be identified for these
projects. A revised overall DBE goal will need to be submitted to
the FAA for approval. Sponsors must also obtain approval prior to
soliciting bids for these projects.
Note 1: There is no exact formula that can be readily used to
establish overall percentage goals. Sponsors who propose to use a
formula should ensure that the availability of DBE's and the other
factors contained in the regulation have been considered. The
population of the minority community is only a very general guide
to availability. Goals adopted by other DOT recipients or other
state or local agencies in the same geographical area may be a
useful guide when contracting requirements are similar. Also, the
history of FAA Regional data as broken down by state and various
airports can serve as an excellent reference.
401
Note 2: Appendix 7 contains additional examples illustrating the
calculation of overall and contract goals.
*Notice of Policy at 45 F.R. 45285.
Reference:
Sections 23.64, 23.65
Sponsors who submit an overall DBE goal that is less than 10
percent must take the following steps in addition to those
described in the previous pages.
1. The sponsor is required to submit a justification which
provides information on the following points:
a. The sponsor's efforts to locate DBE's;
b. The sponsor's efforts to make DBE's aware of
contracting opportunities;
c. The sponsor's initiatives to -..encourage and develop.
DBE's;
d. Legal or other barriers impeding the participation
of DBE's at a level of at least 10 percent in the sponsor's
FAA -assisted contracts, and the sponsor's efforts to overcome
or mitigate the effects of these barriers;
e. The availability of DBE's to work on the sponsor's
FAA -assisted contracts;
f. The size and other characteristics of the minority
population of the sponsor's jurisdiction, and the relevance of
these factors to the availability or potential availability of the
DBE's to work on the sponsor's FAA -assisted contracts; and
g. A summary of the views and information concerning
the availability of DBE's and the adequacy of the sponsor's
efforts to increase DBE participation, as provided by persons and
organizations consulted by the sponsor (see 3 below).
2. The sponsor must ensure that the request for the overall
goal is signed or concurred in by the elected official, head of
21
the board, or other official responsible for the operation of the
airport sponsor.
3. The sponsor is required to consult with minority and general
contractors' associations, community organizations, and other
officials or organizations that could be expected to have
information concerning the availability of DBE's and the adequacy
of the sponsor's efforts to increase DBE participation.
Appendix D in Subpart D of the regulation provides additional
guidance for justifications.
*Sponsors submitting an overall goal of 10 percent or more should
not include any of this information in their submission.
When the overall goal is submitted to the FAA, the sponsor is
required to publish a notice announcing that the proposed goal and
methodology are available for inspection for a 30-day period at
the sponsor's principal offices. The notice should state that
comments will be accepted by the sponsor or the Department of
Transportation for 45 days following publication. The notice
should include addresses where comments may be sent and should
state that the comments are for informational purposes only.
Sponsors should publish the notice in general circulation media
and in any media of the disadvantaged community and trade
associations.
When counting DBE participation toward the goals, sponsors should
exclude contracts for land, funds for force account, and other
noncontractual work (as these same items are excluded when
establishing the goals). Only the Federal share of AIP-funded
contract awards may be applied toward the overall goal. These
amounts are reported to the FAA on approved forms.
For example, assume that the sponsor depicted in Appendix 4 awards
contracts as shown below:
(Actual Awards)
Professional Services: 50,000
Construction: 610,500
Equipment: 250,000
30,000
84,500
0
M
(Land)* (100��Q01 0
Total 910,500 114,500
Achievement toward the overall goal is determined by dividing the
Federal share of actual awards to DBE's (dollar value) by the
Federal share of all prime contract awards (dollar value) made
during the goal period. Achievements should reflect contract
amendments, as well as awards.
The Federal share of all project costs in this case is 90%.
Overall
DBE Goal =
Achievement
(90%) x 114,500 = 103,050
(90%) x 910,500 = 819,450
*Land is not counted toward the goals.
= 12.6%
Thus, the Federal share of contracts awarded to DBE's is
$103,050, while the Federal share of all prime contracts awarded
is $819,450. Although an overall goal of 13.9% had been
established (Appendix 4), the sponsor achieved 12.6% in actual DBE
participation. Additional information on counting DBE
participation toward the goals is contained on pages 35 and 36.
Undated Goal
The overall goal must be reviewed at least annually. The review
includes an analysis of projected versus actual DBE participation.
An updated overall goal and methodology must be submitted to the
FAA 30 days prior to the end of the goal period or when requested
by the Regional Civil Rights Officer. Appendix 4 contains a
sample format for the update. Unless otherwise requested, only
this information, not the entire DBE program, should be submitted.
An update is required even when the sponsor does not anticipate
awarding any FAA -assisted contracts during the following 12-month
period.
If the sponsor's overall DBE goal expires and a new goal has not
been approved, the sponsor may not issue further solicitations for
AIP-funded contracts, including IFB's or RFP's, unless the FAA has
approved the specific contract goal or a new overall goal.
23
Sponsors who fail to achieve the overall DBE goal are required to
provide an explanation showing why failure to meet the goal was
beyond the sponsor's control.
A contract goal must be established for each prime contract funded
by the AIP that has subcontracting possibilities. The requirement
applies to both construction and nonconstruction (i.e.,
architectural, engineering, other professional services,
equipment, etc.).
A single goal for DBE's is also used for the contract goal. The
appropriate goal should be included in the contract solicitation
(a sample clause is shown on page 26).
Contract goals should be set to achieve the overall goal, as
illustrated in Appendix 4. Individual contract goals may vary
from the overall goal.
The contract goal is determined by dividing the total dollar value
of potential subcontract awards to DBE's by the total estimated
dollar value of the prime contract. Unlike the overall goal,
which is based on the Federal share only, contract goals are based
on the total contract amount - the Federal share plus the
sponsor's matching funds.
Specific Contract .P.otential DBE-- Cbntracts(Dol'lars).
DBE Percentage Goal =
Total Estimated Cost of Prime
Contract (Dollars)
Sponsors are not required to submit contract goals with their DBE
program, but a description of the methodology (Appendix 4) to be
used in establishing them should be included. The FAA Regional
Office may require approval of contract goals prior to
solicitation.
In the example in Appendix 4, the sponsor was able to establish
contract goals of 5.7% and 16.6% for the two construction
projects. DBE potential in professional services was identified,
but a contract goal was not established as more than one contract
may be let.
No DBE participation was projected for purchase of the firetruck,
as none of the manufacturers known to the sponsor are DBE's.
Because no subcontracting opportunities exist, a contract goal
will not be established.
24
Reference:
Section 23.45(h)
Whenever the City of Kalispell issues a solicitation for an
FAA -assisted contract that has subcontracting possibilities, the
solicitation will contain the DBE contract goal. The City will
follow this procedure for nonconstruction as well as construction
projects. Thus, the appropriate goal will be included in
Invitations for Bid (IFB) for construction work and in Requests
for Proposals (RFP) for architectural, engineering, and other
professional services.
The solicitation will include a statement that the apparent
successful competitor will be required to submit DBE participation
information and that as a condition of receiving the contract, the
competitor must meet the DBE goal or demonstrate to the Cit that
it made good faith efforts.
"The bidder/proposer shall make good faith efforts, as
defined in Appendix A of 49 CFR Part 23, Regulations of the
Office of the Secretary of Transportation, to subcontract
percent of the dollar value of the prime contract to
small business concerns owned and controlled by socially and
economically: -disadvantaged individuals;(DBE )..-1Jn ithe event
that the bidder_'.for-=this=solicitation qualifies as a DBE, the
contract goal shall be deemed to have been met. Individuals
who are rebuttably presumed to be socially and economically
disadvantaged include women, Black Americans, Hispanic
Americans, Native Americans, Asian -Pacific Americans, and
Asian -Indian Americans. The apparent successful competitor
will be required to submit information concerning the DBE's
that will participate in the contract. The information will
include: (1) the name and address of each DBE; (2) a
description of the work to be performed by each named firm;
and (3) the dollar value of the work of the contract. If the
bidder fails to achieve the contract goal stated herein, it
will be required to provide documentation demonstrating that
it made good faith efforts in attempting to do so. A bid
that fails to meet these requirements will be considered
nonresponsive."
The DBE participation information will be required prior to
committing the City to award the contract to the apparent
successful competitor.
25
Note 1: If a contract goal has not been established, the clause
shown should not be included in the solicitation.
Note 2: If a contract goal has been established, a bidder may not
meet the requirements of the bid specification by stating that it
will accomplish all work of the contract using its own employees.
It, first, must demonstrate to the sponsor's satisfaction, that it
made good faith efforts to meet the goal, and despite those
efforts, was unable to subcontract any of the work to DBE's.
If the contract goal specified in the solicitation is not met, the
apparent successful competitor will be required to submit
documentation of the efforts it made. The City will then
determine whether these are "good faith efforts." The following
criteria will be used:
1. Whether the contractor attended any pre -solicitation or
pre -bid meetings that were scheduled by the recipient to inform
DBE's of contracting and subcontracting opportunities;
2. Whether the contractor advertised in general circulation,
trade association, and minority -focus media concerning the
subcontracting opportunities;
3. Whether the contractor provided written notice to a reasonable
number of specific DBE's that their interest in the contract was
being -solicited, -n zuffici.ent time to allow the DBE's to
participate effectively;_
4. Whether the contractor followed up initial solicitations of
interest by contracting DBE's to determine with certainty whether
the DBE's were interested;
5. Whether the contractor selected portions of the work to be
performed by DBE's in order to increase the likelihood of meeting
the DBE goals (including, where appropriate, breaking down
contracts into economically feasible units to facilitate DBE
participation);
6. Whether the contractor provided interested DBE's with adequate
information about the plans, specifications, and requirements of
the contract;
7. Whether the contractor negotiated in good faith with
interested DBEs, not rejecting DBE's as unqualified without sound
reasons based on a thorough investigation of their capabilities;
8. Whether the contractor made efforts to assist interested DBE's
in obtaining bonding, lines of credit, or insurance required by
26
the City or contractor; and
9. Whether the contractor effectively used the services of
available minority community organizations; minority contractors
groups; local, state, and Federal minority business assistance
offices, and other organizations that provide assistance in the
recruitment and placement of DBE's.
The following points apply to good faith effort determinations:
1. Good faith efforts are those that could reasonably be expected
to result in goal attainment by a bidder who aggressively and
actively seeks to obtain DBE participation.
2. The above list of nine efforts are recommended by the
Department as ones that bidders/proposers may make to obtain DBE
participation. It does not represent a mandatory checklist of
required actions; no one or combination is required"in all cases.
3. The list above is not intended to be exhaustive; other factors
or efforts may be relevant in appropriate instances.
4. The City will examine the quantity and intensity of the
efforts as well as the type of actions taken. Efforts that are
r merely pro forma are not sufficient, even though they may be
sincerely motivated.
Alternative Ren�irements
A recipient may prescribe other requirements of equal or greater
effectiveness in lieu of good faith efforts. In that case, the
recipient should notify the FAA by letter of the content of those
requirements prior to contract award.
In the event that FAA does not approve of the alternative
requirements, the recipient may be required to use good faith
efforts as described above.
When 49 CFR Part 23 was published by the Department in 1980 (45
Fed. Reg. 21172, March 31, 1980), Section 23.45(h) and (i)
established a conclusive presumption to be used in the award of
DOT -assisted contracts. Under these provisions, the recipient
presumed conclusively that if one bidder met the MBE contract
goals and offered a reasonable price, bidders that did not meet
the goals had not exerted sufficient reasonable efforts, and hence
were ineligible to receive the contract.
For example, if the low bidder failed to meet the goals, the
recipient was required to award the contract to another bidder
that had, provided that its price was reasonable.
An amendment to Part 23 published on April 27, 1481 (46 Fed.
Reg. 23457) replaced the conclusive presumption with the current
provisions that are illustrated above, which allow the low bidder
to receive the contract if it meets the goal or satisfies the
recipient that it made good faith efforts.
When the amendment was published, the Department stated that
recipients may use the mechanism of the original Sections 23.45(h)
and (i) or another system of their choice, provided that it is as
or more effective than the good faith efforts. Thus, sponsors who
wish to use the conclusive presumption approach may do so without
obtaining approval from the FAA. Appendix 8 contains the original
sections 23.45(h) and (i).
M
Reference:
Sections 23.45(j)
The City of Kalispell will use the legal instrument of the
contract clause to enforce Part 23 requirements. The clauses
include those on pages 30 and 37. No other preconditions
concerning the use of DBE's are included in FAA -assisted contracts
let by the City of Kalispell.
The City of Kalispell requires prime contractors to submit
information on the subcontract awards made to DBE's and non -DBEs.
The information must be reported within 10 days of the award and
includes the firm's name, a description of the work to be
performed, and contract amount.
Records of all progress payments made by prime contractors are
required on a monthly basis: Prime contractors must also report
to the City of Kalispell when a DBE is terminated for any reason.
These records are periodically verified by obtaining certified
statements from DBE subcontractors.
Other appropriate actions will be taken to ensure that prime
contractors and subcontractors comply with the DBE provisions.
These actions will include:
1. Desk audits to review all material and information concerning
the contractor's compliance.
2. On -site reviews that include interviews, visits to project
locations, and inspection of documents and/or information not
available at the desk audit that pertains to the contractor's
compliance.
3. Any additional investigation that may be called for by a lack
of proper recordkeeping; failure of the prime contractor to
cooperate; failure of DBE's to cooperate; visible evidence of
unsatisfactory performance; other evidence as may warrant further
investigation.
The City of Kalispell will make prompt compliance determinations
regarding its prime contractors. Documentation of noncompliance
will include the specific areas in which the contractor failed to
comply. In these instances, appropriate legal action consistent
29
with the DBE and other contract provisions will be taken.
Note: The FAA has told a number of airport sponsors to delete
from their DBE programs, provisions for assessing liquidated
damages when prime contractors fail to meet DBE goals or comply
with Part 23 requirements.
*This program element is applicable only to hub airports.
�7
Reference:
Section 23.45(k)
Where not prohibited by state or local law, procedures for
implementing DBE set -asides are required if they have been
determined by the sponsor to be necessary to meet overall DBE
goals.
A set -aside is defined as a procurement technique that limits
consideration of bids or proposals to those submitted by DBEs.
To provide for competition, set -asides may be used only when there
are at least three DBE's having the requisite capabilities to
perform the work under a contract. The selection of contracts to
be set -aside should be based on the known capabilities of DBE's
eligible to compete, in order to ensure that a qualified firm will
be found and to increase the possibility for competition.
For the set -aside to operate, three or more DBE's must actually
submit bids or proposals if this is the type of procurement that
t usually involves the submission of bids or proposals. This
provision is not intended to prohibit sole -source procurements
with DBEs.
The DBE program should specify the type or dollar value of
contracts to be set -aside and state that at least three DBE's must
compete.
* This program element is applicable only to hub airports.
31
Appendix 1
SCHEDULE A
INFORMATION FOR DETERMINING DISADVANTAGED BUSINESS ENTERPRISE ELIGIBILITY
If, at any time, the Department or a recipient has reason to believe that
any person or firm has willfully and knowingly provided incorrect
information or made false statements, or acted in a manner prohibited by 49
CFR Part 29, the responsible official *hail refer the matter to the General
Counsel of the Department. He/she may.initiate procedures for suspension or
debarment as provided in 49 CFR 29.17 and/or refer the matter to the
Department of Justice under 18 U.S.C. 1001, as deemed appropriate.
1. Name of firm
2. Address of firm
3. Phone number of firm ( }
4. Contact Person
S. Nature of Business: Specify major services/products.
6. Geographical Area Served:
States Counties
7. Years firm has been in business
g; Type of o*mership:- (Check one)
Corporation Partnership __�. Sole -_
Proprietorship
Joint Venture Other (Specify)._:,
Appendix 1 1
Schedule A
Page 3 of 6
(2) Marketing and Sales
(3) a::ing anc Tl inj of Management Personnel
(4) Purchase of Major Items or Supplies
c. Supervision of.Field Operations
21. For each- of those listed in number 10, provide a brief summary of the
person's experience and number of years with the firm, indicating the
person's qualifications for the responsibilities given him or her. (Attach
a separate sheet if necessary.)
12. Describe or attach a copy of any stock options or other ownership
options that are outstanding, and any agreements between owners or between
owners and third parties which restrict ownership or control of the
disadvantaged owners. (Attach a separate sheet if necessary.)
Appendix 1 3
Schedule A
Page 5of6
17. Specify the major items of equipment owned and/or leased by the firm.
Name and Address
Equipment Owned Quantity Equipment Leased of Owner
18. Has the .firm ever applied for or been denied DBE/MBE/WBE certification
with the City, Department of Transportation, or elsewhere?
Yes No Application Pending
If yes, name the certifying authority, date, and state circumstances of such
certification or denial.
Appendix 1 5
Appendix 2
SCHEME B
INT'ORMATION FOR DETERMINING JOINT VENTURE ELIGIBILITY
(This form need not be filled in if all joint venture firms are disadvan-
taged business enterprises.)
1. !lame of joint venture
2. Address of joint venture
3. Phone number of joint venture
A. Identify the firms which comprise the joint venture. (The DBE partner
must.complete Schedule A)
a. Describe the role of -the DBE firm .in tbG,,,join . venture
b. Describe very briefly the experience and business qualifications of
each non -DBE joint venture:
S. Mature of join t.genture's,business
6. Provide a copy of the joint venture agreement.
7. What is the claimed percentage of DBE ownership?
8. Ownership of joint venture (This need not be filled in if described in
the joint--venturt agreement, provided by question 6.)
a. Profit and loss sharing.
b. Capital contributions, including equipment.
c._ Other -applicable ownership.interests.
9. .Control of and participation in this contract. Identify.by name., race,
sex,, and "firm" those; individuals (and their titles), who are re* pon_sible
for day-to-day management and policy decision making, including but not
limited to, those with primary responsibility for:
Appendix 2 1
Schedule E
Page 3 of 3
Name of Firm Name of Firm
Signature Signature
same Name
Title Title
Date
Date
Date
State of
County of
on this day of , 19 , before me appeared
name), to me personally known, who, being duly
sworn, did execute the foregoing affidavit, and did state that he or she was
properly authorized by (name of firm)
to execute the affidavit and did so as his or her free act and deed.
Notary Public
Comission Expires
(Seal)
Date
State of
County of
On this day of �. 19 , before me appeared
(name), to me personally known, who, being duly sworn,
did execute the foregoing affidavit, and did state that he or she was
properly authorized by (name of firm)
to execute the affidavit and did so as his or her free act and deed..
Notary Public
Commission Expires
(Seal)
Appendix 2 3
Appendix 3
SAMPLE FORMAT - UPDATED GOAL INFORMATION
Airport Sponsor:
Name of Preparer: Tel. No.:
Goal Period: From: Thru:
Fart Z: Overall DBE Goal for FAA -assisted Projects
Mark one box below:
%7 An overall DBE goal IS FOT required because the airport sponsor does
not plan to award any contracts during the goal period based on an FAA
grant that exceeds the amount which requires the setting of a DBE goal.
(See page 2 and 3 of the Kit for amounts.)
/-7 An overall DBE goal IS required. The DBE goal methodology is attached
(See sample in Appendix 4.)
Part II. Leasing Goals and Methodology (See sample in Appendix 5.)
Estimated Date Date
Description Gross Lease Lease 2 Joint
Lessee of Lease Receipts Be ins Expires MBE WBE Venture
Totals
This Year's Leasing Goals: MBE: 2 KBE: X
Narrative Description of Leasing Goal Methodology:
Explanation for Not Increasing Goal Above Previous Year's Level (if
applicable):
Last Year's Leasing Goals: MBE: KBE:
Explanation for Not Achieving Last Year's Leasing Goals (.if appliable):
Appendix 3 1
APPENDIX
PAMPLE FORMAT OVERALL DBE COALM-ET1100OLOGY
AIRPORT SPONSOR:
NAME OF PREPARER
GOAL PERIOD; From: Thru:— 0 fiscal yr)
OVERALL DBE GOAD %
METHODOLOGY FOR ESTABLIS UNG OVERALL GOAL:
Summary of CQ=Ac—ts to a Awarded by xypg of Contract
Pr'Qj= It �
Professional Service2
Construction?
Equipment'
Land4
Noncontract'
Total
FrOkssigm Service Contracts:
Contract 41
Work Item Deserintion
Plans & Design
Inspection & Supervision
Consultant
Amount
4,000
4,500
40,000
Real Estate Appraisal = 500
Real Estate Survey 500
Audit 5
Total 50,000
Contmet #2 (if applicable)
5,000
85,500
-0-
-0-
90,500
-0-
-0-
500
500
5,000
10%' Contract (coal
`If the goal is leis than 10%, attach required justification (see 1Ylay 1989 DB Kit).
Professional services, construction and equipment contracts are the basis for calculating
the overall goal.
'The Federal share ofall estimated contract costs shown is °fo. (77w Federal share a
usually 90Ya.)
`Land, in-house (force account) work„ and other noncontractual costs (administrative) are
not included in the goal setting or reporting process. (and acqufstttvn reimbursement is
not cakylWed frtto the awrall goal, but the asuxiated professional service contracts are,
such as appraisals, surveys etc.)
Contract goal to be included in bid solicitation.
6 'd 600 t LZZ. SZ7 evI NV SIHS : d 1I ^.I 0 H0Z:!d ''NV t S ° 8 L66 L -6z-0 L
Contract #1 - Improve Access Road
'Work It Descnit'o
S Amt
1 DBE
Remove Curb
11500
1,500
Remove Bituminous Paring
5,000
5,000
Excavation
2,000
2,000
Storm Sewers
2,000
-0-
Catch Basins
4,000
-0-
Manholes
2,000
-0-
Concrete Walk
4,000
-0-
Cornbined Curb & Gutter
8,000
-0-
Paving
1443F500
5,000
Electric
1,000
1,000
Marking
500
500
Total
174,500
15,000
8.6%5 Contract Goal
Contract #2 - Construct Hold Apron - RW I8L
Work ltem Descdt��n
I A mount
,SDBE
Clearing
5,000
5,000
Excavation
40,000
10,000
Paving
3251000
-0-
Trucking
35,000
35,000
Landscaping
15,000
15,000
Lighting
5,000
5,000
Marking
500
500
Total 4_
425500 ` _
. 70,300 -
Contract Goal
Equiom= Contracts;
Contract # - Fire Truck (no subcontracting opportunities)
Nark Itcm Dwdption
$ DBE
Fire Truck
250,000
-0-
Land.
Work Item I scull
$ Amount
S DBE
Easement
100,000
NIA
NoncontracUml:
Mark Item Dngdplign
S Amou
ADDS
Tree Rcmval
(Force Account)
30,000
N/A
Administration
9,900
NIA
Advertising
_ I
NIA
Total
40,000
$To be included in bid solicitation
0 l 'd 600 t L'ZZ SZ7 6VfJV S1HO I b II AIO HOaz-1 WVZS : 8 L661-6Z-0 I
bmnkus Year's Goats: DBE. 1 3'/0
Qus Year's A mn- 1p ibmMs: DBE: 1.3.1%
Not Applicable.
iangjoLi fir Not Increasing Goal Above Prevy Year's AccgM4 shments i
Not Applicable.
For the two construction projects, our recruiting area consists of the county encompassing
the airport and the 4 adjacent counties. Our estimates are based on the availability of
quay DBEs, as listed in our Directory and the State DOT Directory, and the fact that
the. work is similar to work performed last year. We know of a DBE based outside the
metropolitan area who is capable of performing other work under Construction -Contract
# 1, but that firm has been unwilling is the past to travel to our job sites for contracts of
this size.
The estimates for professional services reflect our search state-wide. We utilized a DBE 2
years ago who we expect to compete and be the best qualified for portions of the work.
Once the scope of the work has been determined, a goal will b�e'established fbreach prime _
contract having bca rac i ;,gogstbltit es. =l't e.g4ais Dili reflect :the £aB potential
shown in the b down 'of the, work itetass.
Regarding purchase of the firetruck, we are unaware of any mmnufacturcrs that are DBEs.
Because there are no subcontracting opportunities, a contract goal will not be established.
One additional AIP project is planned for the goal period_ Our engineers have not yet
completed estimates for the expansion of the North Terminal, Whcathese are completed,
we will submit a revised -,overall DBE goal.
t l 'd 6001 LZZ SZV 6 'NV 61HJ I'_; I I h I O H02jd VIVZS' 9 L66 l —6Z--0 t
Appendix 5
SAMPLE FORMAT - LEASING GOALS
AND METHODOLOGY
Goal Period: 1/l/89
through 12/31/89
% Joint
Estimated
Date
Date
denture
Description
Gross
Lease
Lease
or Part -
Lessee
of Lease
Receipts
Begins
Expires SMBE
$WBE nership
Bob Jones
Restaurant
50.0
7/01/88
6/30/93
Town Rental
Car Rental
90.0
4/01/80
3131/90 30.0
332
Square Meal
Snack Bar
25.0
7/01/75
6/30/90
Stop N Shop
Gift Shop
25.0
1101/85
12/31/90
25.0
Don's Repair
FBO
10.0
1/01/86
12/31/91
The'Rose
Flowers
15.0
7/01/84
6/30/86 15.0
Vend tic*
Vending
7.5
10/01/84
9/30/89
Fun Co.** ,
Game Room
15.0
New
15.0
Total&
$237.5-
Note: Gross receipts in thousands (0001s)
This Year's Leasing Goals: MBE: 25.3% WBE: 10.5%
Narrative Description of Leasing Goal Methodology:
60.0 25.0
*Vending Machines - This lease will expire during the goal period. However,
there are no known MBE or WBE firms in the area to provide this service. In
an effort to find qualified MBE/WBE's, we provided notice to the local
Minority Chamber of Commerce, the Women's Business Development Center, the
Hispanic -American Construction Industry Association and the State's Minority
Business Development Council. In addition, we reviewed the State's MBE/WBE
Directory. Two MBE's who previously indicated an interest in providing this
service were contacted, but neither is available to bid. +
** Game Room - Two MBE's have been found which have shown an interest in the
Same room. The airport is negotiating a lease with one of these firms.
Should an MBE be selected, the gross receipts from the game room will
represent about 6.3 percent of the airport's total gross receipts.
Explanation for Not Achieving Last Year's Goals (if applicable):
Not Applicable
Last Year's Leasing Goals:
MBE: 14.5% WBE: 9.5%
Last Year's Accomplishments: MBE: 20.5X WBE: 10.01%
Explanation for Not Increasing Goals Above Previous Year's Level (if
avolicableT
Not Applicable
Appendix 5 1
Appendix 6
FEDERAL S (PERCENTAGE OF PROJECT COSTS)
Airport Improvement Program
1. The Federal share of costs associated with integrated airport system
planning is 90 percent. '
2. The Federal share for s project at or associated With an individual
airport is:
T of Project
'Individual Airport Planning (3)
Airport Development (3)
Noise Compatibility Programs (3)
Terminal Development
Type of Airport
Large Primary
Airports (1)
75
75
80
75
All Other
• Airports (2)
90
90
90
75 (4)
(1) Large Primary airports are primary airports that enplane .25 percent or
more of the total annual U.S. enplanements. Approximately 70 airports
qualify as large primary airports.
(2) This column includes all public —use airports not included in the first
column.
(3) There may be an upward adjustment to these rates in Alaska, Arizona,
California, Nevada, New Mexico, Oregon, Utah and Washington due to the high
percentage of Federally owned lands in them.
(4) This rate is applicable only to commercial service airports. The
remaining airports are not eligible for terminal development.
Appendix 6 1
Appendix 7
EXAMPLES OF DBE GOAL CALCDLATIOAS
E ple 1
Project Items S Amount* S DBE*
Prof. Serv.: 100,000 -0-
Construction: 1.100,000 150,000
Total 1,100,000 150,000 (Overall Goal:
PROFESSIONAL. SERVICES:
$ Amount
$ DBE
Engineering
100,000
-0-
CONSTRUCTION: Site Preparation
Item Description
$ Amount
$ DBE
Hauling
500,000
150,000
Clearing and Grubbing
100,000
-0-
Paviag
200,000
-0-
Grading
100,000
-0-
Drainage
50,000
-0-
Grooving .
501000
-0-
Total
1,000,000
150,000 (Contract Goal:
* The Federal share of
all estimated contract
costs shown is'75%.
Overall
(75%) x 150,000
112,500
13.6%)
15)
DBE Goal a = 13.6X
(75%) x 1,100,000 825,500
Note: In this example, the sponsor expects to award contracts for
engineering and construction during the period covered by the overall goal.
No DB£'s are available to compete for the engineering contract in this case.
Since there are no subcontracting possibilities, a contract goal will not be
set. The prime construction contract does offer subcontracting
possibilities. A contract goal of 15% has been established and will be
included in the invitation for bids.
Appendix 7 1
Family Fly In Scheduled for Kalispell (DRAFT COPY)
The 12th Annual Northwest Mountain Family Fly -In and Aviation Safety
Conference has been scheduled to take place at the Kalispell City Airport,
Kalispell, Montana between July 17th and July 19th, 1998. Kalispell was the
location of the most successful Fly -In to date. In 1991, over 425 pilots registered
as participants. Mark your calendars now, and plan to attend this unique event.
Each year, volunteer flight instructors donate their time to give free dual
instruction in our "Wings" Program. If you are an instructor who would like to
participate, please contact Jim Cooney at 800-457-9917 or John Goostrey at
800-453-0001.
If you need to brush up on your mountain flying techniques, the Family Fly -In
"Wings" Program is the perfect opportunity to do that. At the same time, you
can attend any of the numerous safety seminars, complete the flight
requirements for the "Wings, Program" and be awarded your wings right at the
event. If you are in need of a flight review, remember that completion of the any
phase of the "Wings" program qualifies as a flight review.
Anyone who desires to will also have the -opportunity to participate in the FAA
PACE (Pilot and Aircraft Courtesy Evaluation) Program. The PACE Program is a
two stage program. In the initial stage, you can have an evaluation of the
airworthiness of your airplane done by an FAA Airworthiness Inspector. Once
you have completed stage 1, you can also fly with an FAA Operations Inspector
for an evaluation of your flying skills. Previous participants have stated that this
program has been a very positive learning experience.
Many antique aircraft owners and homebuilders have participated in this event in
past years and we look for a large contingent of these folks again next year. If
you would like to organize a group of antique owners or homebuilders, please
call Jim Cooney at 800 457-9917 or John Goostrey at 800-453-0001.
Other popular events that are planned again this year are the Friday night
Barbecue and the Saturday night Banquet complete with a nationally known
aviation keynote speaker. We hope to see our many friends from previous
events again in 1998 and hopefully, if you the aviation community can generate
the interest, many new faces. Kalispell is a terrific place to take the family for a
vacation. Lets all plan to go, and take a friend or two.
See you all in Kalispell in 1998.
Jim Cooney