Transcription
City of St. Louis- St. Louis LambertInternational Airport Three Year OverallDBE Goal Methodologyfor2023-2025
Table of ContentI.SummaryII.Proposed Overall Goal for FFY 2023-2025III.Overall DBE Goal Setting MethodologyIV.Step 1. Base FigureV.Step 2. Base Figure AdjustmentVI.Projection of Race Neutral (RN) VS. Race Conscious (RC) GoalAttainmentVII. Contract GoalsVIII. Public Notice of Overall DBE Goal2
DISADVANTAGED BUSINESS ENTERPRISE GOAL METHODOLOGYFISCAL YEARS 2023-2025I.SUMMARYThe City of St. Louis-St. Louis Lambert International Airport has prepared this documentto describe the methodology used to establish its’ overall Disadvantaged BusinessEnterprise (DBE) goal for Federal Aviation Administration (FAA) assisted contracts. TheDBE overall goal setting methodology is a requirement set forth in the United StatesDepartment of Transportation (USDOT) DBE regulations-49 CFR Part 26.II.PROPOSED OVERALL GOAL FOR FFY 2023-2025Based on the requirements set forth in 49 CFR Part 26, the City of St. Louis-St. LouisLambert International Airport is submitting a goal for 2023-2025. The recommendedoverall DBE goal for the period of 2023-2025 is 19 percent (19%).III.OVERALL DBE GOAL SETTING METHODOLOGYIn preparation for the 2023-2025 overall DBE goal, the Disadvantaged Business EnterpriseLiaison Officer (DBELO) obtained the Airport’s planned program of projects and thebudget for those projects from the Airport Engineering, Planning & Developmentdepartment. FAA assisted contracting for FFY 2023-2025 is expected to consist of four(4) main projects. Additional projects may be undertaken if revenue becomes available andthe overall DBE goal will be adjusted, if necessary. The four (4) main projects are listed inTable 1. Projects evaluated for contracting opportunities cover several North AmericanIndustry Classification System (NAICS) codes. NAICS involved on the aforementionedprojects are listed in Table 2.TABLE 1. Anticipated Program of Projects for 2023-2025Projects1. Glycol Improvements Reconstruction2. Maintenance Facility Reconstruction3. Kilo Lima Reconstruction4. Air Cargo Ramp reconstruction3
TABLE 2. North American Industry Code System (NAICS)/Work CategoriesNAICS Code2373101)2379902)238110Highway, Street & Bridge ConstructionOther Heavy & Civil Engineering ConstructionPoured Concrete Foundation and Structure Contractors20,000,000.00% of total DOT .0904Electrical Contractors and Other Wiring InstallationContractorsSite Preparation Contractors 6,000,000.000.06785,000,000.000.0565All Other Specialty TradeContractorsReady-Mix ConcreteManufacturingSpecialized Freight Trucking,LocalEngineering Services 1,000,000.000.0113 3,000,000.000.0339 1,500,000.000.0169 3,500,000.000.0395All Other Support Services 1,200,000.000.0136Structural Steel and Precast Concrete ContractorsCommercial and Institutional Building ,100,000.000.06894,500,000.000.0508 200,000.000.0023 88,500,000.001.0000NAICS DescriptionAmount of DOT funds3)2382104)5) 2389102389906)7) 3273208) 4842209) 54133010) 56199023812011)23622012)23822013)237130Plumbing, Heating & Air Conditioning ContractorsPower and Communication Line & Related Construction14)Landscaping Services15) 561730Total DOT-Assisted Contract Funds4
IV.STEP 1. BASE FIGURE CALCULATIONThe initial phase of the Step 1 analysis requires that recipient’s first step is the calculationof a base figure for the relative availability of able, willing and ready DBEs. The City ofSt. Louis-St. Louis Lambert International Airport determined that the St. Louis-IllinoisMetropolitan Statistical Area was the market area based on the area where the majority ofthe contractors and subcontractors who seek to do business with the Airport are located aswell as the area in which the Airport spends the majority of its contracting dollars. The St.Louis Metropolitan Statistical includes counties in Missouri and Illinois as listed in Table3.Table 3. St. Louis Metropolitan Statistical Area-Missouri and Illinois Counties1.2.3.4.5.6.7.8.Missouri CountiesCity of St. LouisCity of SullivanFranklin CountySt. Charles CountySt. Louis CountyJefferson CountyLincoln CountyWarren County9.10.11.12.13.14.15.16.Illinois roeSt. ClairThe number of ready, willing and able DBE firms within the market area totaled 440 (seeTable 4). The Airport examined the total number of establishments, including DBEs,available to perform within the same NAICS. The total number of establishments based offdata reviewed in the County Business Patters database totaled 4,766 (see Table 4). USDOTtips requires the calculation of the relative base figure by dividing the total number ofavailable, willing and able DBEs in the market are by the total number of all businessesmultiplied by 100. The base figure estimate of DBE availability equals 9.23 percent (9.23%)as shown in Table 4.5
Table 4. DBE Availability AnalysisNAICS Code2373101)2379902)2381103)4) 2382105) 2389102389906)3273207)4842208)9) 54133010) 56199023812011)236220NAICS DescriptionNumber of DBEsavailable to performthis work28Number of all firmsavailable 210.1131Electrical Contractors andOther Wiring InstallationContractorsSite Preparation Contractors65500602730.13000.2198All Other Specialty TradeContractorsReady-Mix ConcreteManufacturingSpecialized Freight Trucking,LocalEngineering All Other Support Services91550.0581Structural Steel and PrecastConcrete ContractorsCommercial and InstitutionalBuilding Construction861.3333303570.0840Plumbing, Heating & AirConditioning ContractorsPower and CommunicationLine & Related Construction358080.04332560.0357Landscaping Services311071Highway, Street & BridgeConstructionOther Heavy & CivilEngineering ConstructionPoured Concrete Foundationand Structure Contractors0.304312)23822013)23713014)15) 5617300.02890.0923Combined Totals4404766Overallavailability ofDBEsIn the application of the overall DBE goal, not all DBEs have equal opportunity for participationas opportunity depends on the dollar spend in each NAICS code. Weighting is recommended toensure the overall goal accurately reflects the scopes of work. The Airport examined other lists ofDBEs in Illinois department of Transportation DBE Directory and MBEs/WBEs from othersources to ensure the list of DBEs and potential DBEs is accurate. The Airport weighted theavailability of firms based on the dollar spend in each NAICS which resulted in a weighted stepone base figure of 19 percent (19%) as outlined in Table 5.6
Table 5. DBE Goal AnalysisNAICS Code1) 2373102) 237990NAICS DescriptionHighway, Street & BridgeConstructionOther Heavy & CivilEngineering ConstructionPoured Concrete Foundationand Structure Contractors3) 2381104) 2382105) 2389106) 2389907) 3273208) 4842209) 54133010) 56199011) 238120Electrical Contractors andOther Wiring Base 09040x0.113120.01020.06780x0.130000.0088Site Preparation ContractorsAll Other Specialty TradeContractorsReady-Mix ConcreteManufacturingSpecialized Freight Trucking,LocalEngineering 0.065360.0026All Other Support ServicesStructural Steel and PrecastConcrete 5270.22599x0.084030.01900.06893x0.043320.003013) 238220Commercial and InstitutionalBuilding ConstructionPlumbing, Heating & AirConditioning Contractors14) 237130Power and CommunicationLine & Related Construction0.05085x0.035710.001815) 561730Landscaping Services0.00226x0.028940.0001TotalExpressed as a% (*100)0.193819.38%Rounded,WeightedBase Figure:19%12) 2362207
V.STEP 2. CONSIDERATION OF ADJUSTMENT TO THE BASE FIGUREThe Airport examined all evidence in its jurisdiction to determine what adjustment, if any,is needed to the base figure to arrive at the overall goal. Included among the types ofevidence that must be considered are the current capacity of DBEs to perform work on theAirport’s federally assisted contracts, as measured by the volume of work DBEs haveperformed on in recent years and input from interested parties. The Airport examined thepast five years of DBE participation in order to make a determination.The Airport determined that an adjustment to the Step-One base figure was not necessary.The methodology includes past participation in 2017, 2018, 2019, 2020 and 2021. Themedian number from 2017-2021 was determined to be 16.0 percent (16.0%). Review ofpast participation and review of specific projects indicates that adjustment at this time isnot warranted. Therefore, the overall three year DBE goal will be 19 percent (19%).Table 6. Adjustment to Base mitments 0 10,533,495 10,337,362 14,115,496 11,889,516DBEAwards/Commitments 0 1,981,848 1,984,844 2,263,357 N OF RACE NEUTRAL (RN) VS. RACE CONSIOUS (RC) GOALATTAINMENTThe final requirement of the goal setting process is to determine the portion of the overallgoal that will be achieved by race and gender-neutral means. As outlined in 49 CFR Part26.51, the maximum feasible portion of the overall DBE goal should be achieved usingrace and gender-neutral means.The Airport examined the achievement of its goals for 2017-2021 since contractingopportunities as similar. The race neutral and race conscious components were determinedby analyzing the DBE achievements against the actual goals set forth for federally-fundedprojects. Race-neutral means includes, but are not limited to, the following:(1) Arranging solicitations, times for the presentation of bids, quantities, specifications,and delivery schedules in ways that facilitate participation by DBEs and other small8
businesses and by making contracts more accessible to small businesses, by means such asthose provided under § 26.39.(2) Providing assistance in overcoming limitations such as inability to obtain bonding orfinancing (e.g., by such means as simplifying the bonding process, reducing bondingrequirements, eliminating the impact of surety costs from bids, and providing services tohelp DBEs, and other small businesses, obtain bonding and financing);(3) Providing technical assistance and other services;(4) Carrying out information and communications programs on contracting procedures andspecific contract opportunities (e.g., ensuring the inclusion of DBEs, and other smallbusinesses, on recipient mailing lists for bidders; ensuring the dissemination to bidders onprime contracts of lists of potential subcontractors; provision of information in languagesother than English, where appropriate);(5) Implementing a supportive services program to develop and improve immediate andlong-term business management, record keeping, and financial and accounting capabilityfor DBEs and other small businesses;(6) Providing services to help DBEs, and other small businesses, improve long-termdevelopment, increase opportunities to participate in a variety of kinds of work, handleincreasingly significant projects, and achieve eventual self-sufficiency;(7) Establishing a program to assist new, start-up firms, particularly in fields in which DBEparticipation has historically been low;(8) Ensuring distribution of your DBE directory, through print and electronic means, to thewidest feasible universe of potential prime contractors; and(9) Assisting DBEs, and other small businesses, to develop their capability to utilizeemerging technology and conduct business through electronic media.Based off the upcoming program of projects the City of St. Louis-St. Louis LambertInternational Airport estimates that in meeting the established overall goal of 19%. Basedoff upcoming projects the Airport determined that the race neutral and race-conscious splitwould utilize the base figure of 19%. The Airport estimates that approximately 1,500,000.00 worth of its contracting opportunities can be bid to small business.Examining larger opportunities the Airport considered if prime bidders would solicit andafford viable opportunities to DBE firms, as well as, small businesses to perform on largeropportunities. The Airport estimates that approximately 5,400,000.00 worth of DBEparticipation exists within the remaining opportunities. The Airport calculated the total tobe approximately 6,900,000.00 of contracts awarded to DBE firms through race neutral9
means which equates to approximately 7.7 percent (7.7%). The Airport subtracted the raceneutral percentage from the overall goal of 19% and determined the race conscious portionof the overall goal to be 11.3 percent (11.3%). Therefore, the Airport will obtain 7.7% fromrace-neutral participation and 11.3% through race-conscious measures.The Airport will adjust the estimated breakout of RN and RC DBE participation as neededto reflect actual DBE participation (see Section 26.51(f)) and track and report RN and RCparticipation separately. For reporting purposes, RN DBE participation includes, but is notnecessarily limited to, the following: DBE participation through a prime contract obtainedthrough customary competitive procurement procedures; DBE participation through asubcontract on a prime contract that does not carry a DBE goal, DBE participation on aprime contract exceeding a contract goal and DBE participation through a subcontract froma prime contractor that did not consider a firm’s DBE status in making the award.VII.CONTRACT GOALSContract goals are established so that, over the period to which the overall goal applies,they will cumulatively result in meeting any portion of our overall goal that is not projectedto be met through the use of race-neutral means. We will establish contract goals only onthose FAA-assisted contracts that have subcontracting possibilities. We need to establish acontract goal on every such contract, and the size of contract goals will be adapted to thecircumstances of each such contract (e.g., type and location of work, availability of DBEsto perform the particular type of work). We will express our contract goals as a percentageof the total amount of DOT-assisted contracts.VIII. PUBLIC NOTICEIn establishing an overall goal, you recipients must provide for consultation and publication.This includes: Consultation with minority, women's and general contractor groups,community organizations, and other officials or organizations which could be expected tohave information concerning the availability of disadvantaged and non-disadvantagedbusinesses, the effects of discrimination on opportunities for DBEs, and The Airport’sefforts to establish a level playing field for the participation of DBEs. The consultationmust include a scheduled, direct, interactive exchange (e.g., a face-to-face meeting, videoconference, and tele-conference) with as many interested stakeholders as possible focusedon obtaining information relevant to the goal setting process. Attached is the Public Noticeposted to the Airport’s website at www.flystl.com on 6/17/2022 and sent to stakeholders,DBEs, MBEs, WBEs, and additional advocacy groups. The Airport will host a virtualmeeting on Friday, July 18, 2022 from 10:00 a.m.-11:45 a.m.10
Based on the requirements set forth in 49 CFR Part 26, the City of St. Louis-St. Louis Lambert International Airport is submitting a goal for 2023-2025. The recommended overall DBE goal for the period of 2023-2025 is 19 percent (19%). III. OVERALL DBE GOAL SETTING METHODOLOGY In preparation for the 2023-2025 overall DBE goal, the Disadvantaged .
