Overview of DBE Goal Setting Methodology for FFY 2023/25

PUBLIC FORUM FEDERAL HIGHWAY ADMINISTRATION (FHWA) - OVERALL DBE GOAL SETTING METHODOLOGY FOR FFY 2023/25 GOAL PERIOD July 21, 2022

INTRODUCTIONS AND WELCOME Jennifer Hankins, DBELO/Contract Compliance Division Manager LaTashia Thompson, Assistant Division Manager 2

BACKGROUND As a recipient of U.S. Department of Transportation (U.S. DOT) funds, the Oklahoma Department of Transportation (ODOT) is required to develop a triennial overall goal for Disadvantaged Business Enterprise (DBE) participation. Pursuant Disadvantaged Business Enterprises (DBEs) in US Department of Transportation Financial Assistance Programs the overall goal must: to Section 26.45 of CFR, Part 26 Participation by Reflect the level of DBE participation ODOT would expect absent the effects of discrimination Based on demonstrable evidence of the availability of ready, willing and able DBEs relative to all businesses ready, willing and able to participate on federally-funded contracts ODOT s overall goal triennial period: Federal Fiscal Years 2023 2025 October 1, 2022 September 30, 2025 3

U.S. DOTs FIVE PRESCRIBED GOAL SETTING METHODOLOGIES 1. DBE Directories and Census Bureau Data 2. Bidders List 3. Disparity Study 4. Goal of another DOT Recipient 5. Alternative Methods - Local Market Conditions relative to availability of DBEs in jurisdiction 4

SETTING OVERALL DBE GOAL Step 2 Adjustment Base figure Past DBE Goal Attainments Availability analysis Disparity Studies DBE Work Factor Other relevant factors 5

ODOT ANTICIPATED PROJECTS FISCAL YEARS 2023-2025 (403 PROJECTS) County Description Fed Amount ADAIR US-59: FROM APPROX .35 MILES SOUTH OF SH-51 JCT., EXTEND NORTH 6.70 MILES $11,841,519 ALFALFA SH-8: BEGIN AT THE MAJOR C/L, EXTEND NORTH 4.0 MILES $5,600,000 ATOKA US-69: BEGIN 0.5 MI NORTH OF JCT SH-43E/US-69, EXT. NORTH 4.9 MI (NB ONLY) $2,108,940 BECKHAM SH-34: AT THE NORTH FORK OF THE RED RIVER & O'FLOW APPROX 2.4 & 3.6 MI NORTH OF GREER C/L $7,517,295 BECKHAM I-40: AT THE NORTH FORK OF THE RED RIVER LOCATED 2.0 MI NE OF THE US-283 JCT. (WB ONLY) $872,000 BECKHAM SH-6: BEGIN .03 MILE SOUTH OF 7TH ST AND EXTD NORTH .33 MILE TO I-40B IN ELK CITY $2,845,888 BECKHAM SH-6: BEGIN AT US-283 JCT AND EXT EAST 10.20 MILES $1,159,638 BRYAN SH-78: FROM 4.17 MI NORTH OF ACHILLE NORTH 5.0 MI TO DURANT BYPASS $6,838,684 BRYAN SH-78: OVER BROWN CREEK 3 MILES NORTH OF TEXAS STATE LINE $2,397,840 CADDO SH-152: INTERSECTION MODIFICATION AT JCT SH-58, EAST AND WEST $2,080,000 CADDO US-62: BEGIN 7.10 MI. E. OF JCT SH-9, EXT. N. 0.70 MILES (ANADARKO) $300,000 CADDO SH-152: BEGIN 0.17 MI. W. OF JCT US-281, EXT. E. 0.07 MI. (BINGER) $180,000 CANADIAN SH-152: FROM US-81 IN UNION CITY, EXTEND EAST 5.0 MI. TO BANNER RD. $6,231,500 6

CALCULATING THE BASE FIGURE Base figure is calculated using a dollar-weighted calculation by industry based on contracts projected to be awarded by ODOT during FFYs 2023-25 (October 1, 2022 September 30, 2025). Number of DBEs from DBE Directory available in market area performing work in same NAICS codes = Base Figure 2020 Census Bureau County Business Pattern database number of transportation-businesses available in market area performing work in same NAICS codes (Including DBEs and Non- DBEs) 7

PAST DBE PARTICIPATION: STEP-2 ADJUSTMENT ODOT considered an adjustment to the Base Figure based on the median DBE participation on U.S. DOT-assisted contracts awarded within the past three FFYs (2020/22) As the anticipated projects for fiscal years 2023-2025 are similar to the projects awarded in FFYs 2020-22, adjustment to the base figure was warranted. ODOT determined that an 8

STEP-2: CONSIDERATION OF DISPARITY STUDIES The Oklahoma Department of Transportation (ODOT) has conducted a statewide disparity study for its Disadvantages Business Enterprise (DBE) program for federal-aid contracts to ensure that DBEs have equal access to contracting opportunities and that the program remains narrowly tailored and administratively successful. The Study, with the Department s response, has been posted on ODOT s website at: https://oklahoma.gov/content/dam/ok/en/odot/civil- rights/ODOT%20Disparity%20Study%202021.pdf 9

STEP-2: CONSIDERATION OF OTHER EVIDENCE ODOT did not receive any anecdotal evidence nor is it aware of any other factors or adverse considerations that would have had a material effect on DBEs availability within ODOT s marketplace, or on DBEs ability to participate in ODOT s FHWA-assisted contracting programs at this time. No adjustment to base figure. 10

DBE GOAL RACE NEUTRAL APPLICATION MEASURES Free technical assistance and other services that will assist DBE firms and make them more marketable to Prime Contractors and Prime Consultants; Monthly articles about the DBE program in the Oklahoma s Association of General Contractors magazine to bring more aware about the program to Primes; Advertisement of the DBE program through billboards, benches and shelters in order to increase the number of certified DBE firms; Developing the AASHTOware Civil Rights & Labor software product, which will help the agency track and monitor DBE participation; Work with DBE firms on the development of bids/quotes and securing contracts at ODOT. Overall DBE Goal Continuation of the DBE Advisory Board, which was created in January 2019 but discontinued meeting during the pandemic. The DBE Advisory Board will assist the agency with: Facilitate communication and relationships between DBE firms, ODOT, Primes and FHWA; Identify areas of training to enhance DBE firm capabilities; Facilitate opportunities for DBE firms; Make the program stronger to increase overall DBE utilization goals; Advise the department on suggested changes to the DBE program, policies, specifications and special provisions. 11

DBE GOAL RACE CONSCIOUS APPLICATION MEASURES Race/Gender Conscious Measures Contract-specific DBE goals Overall DBE Goal In accordance with federal regulations and U.S. DOT attempt to meet the goal to the maximum extent feasible utilizing race-neutral measures. Where race-neutral measures are inadequate to meet the overall goal, ODOT will establish contract-specific DBE goals on U.S. DOT-assisted contracts with viable subcontracting availability. guidance, ODOT will opportunities and relative DBE 12

RACE- AND GENDER- NEUTRAL AND RACE- AND GENDER-CONSCIOUS SPLIT Race/Gender Neutral Measures Overall Goal 14% Overall DBE Goal Race/Gender Conscious Measures 13

MONITORING DBE PARTICIPATION ODOT will continue to monitor its DBE participation during the overall goal period to application of ODOT s measures to meet the proposed Overall DBE Goal remains on target. determine race-neutral/race-conscious whether the 41

Public Participation and Facilitation Public Facilitation Community Letter sent to local/ethnic chambers of commerce and other business/community organizations in the market area Public Notice sent to Small and Disadvantaged businesses within market area via constant contact. Additionally, all firms registered with ODOT through Planetbids were sent a Public Notice. On-going Outreach through Industry forums, pre-proposal/pre- bid conferences, and outreach events Website Supportive Services are provided to DBE and SB firms through ODOT s website, inclusive of access to the DBE Program, past Overall Goal and proposed Overall Goal. 42

Public Participation ODOT WANTS YOUR INPUT In an effort to further support the public participation process, ODOT is hosting this public forum. The forum is designed to facilitate receiving input from minority and women business groups, community organizations, trade associations and other officials or organizations that may have information concerning the availability of disadvantaged businesses and comments on ODOT s proposed DBE overall goal and corresponding methodology. 43

QUESTIONS AND COMMENTS In person, by email, mail or fax: Attention: Jennifer Hankins Civil Rights Division Manager/DBE Liaison Officer Oklahoma Department of Transportation 200 N.E. 21st. Rm. 1-C-1 Oklahoma City, Oklahoma 73105 Phone (405) 521-2072 JHANKINS@odot.org DBE Goal Comment period ends July 31th, 2022 17