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FTA Disadvantaged Business Enterprise (DBE) Goal Methodology Federal Fiscal Years FFY 2024-2026 IniƟally Submited August 1, 2023 City of Salem FTA Disadvantaged Business Enterprise (DBE) Goal Methodology (Revised) Federal Fiscal Years 2024-2026 IniƟally submited to the Federal Transit AdministraƟon on August 1, 2023 I. IntroducƟon The City of Salem herein sets forth its overall Disadvantaged Business Enterprise (DBE) Goal and corresponding federally prescribed goal seƫng methodology for the three-year Federal Fiscal Year (FFY) goal period of 2024-2026, pursuant to 49 CFR Part 26. In seƫng our federal fiscal year 2024-2026 DBE goal, the City of Salem used a methodology that strives to achieve a "level playing field". This level playing field is defined as the amount of DBE parƟcipaƟon we could realisƟcally expect in the absence of discriminaƟon. Our goal is based on demonstrable evidence of the availability of ready, willing, and able DBEs to parƟcipate on our DOT-assisted contracts. To set our overall goal we followed the steps outlined in 49 Code of Federal RegulaƟons (CFR) Part 26, SecƟon 26.45. This is the first three-year DBE Goal developed by the City of Salem. II. Overall Goal The City of Salem’s overall goal for FFY 2024-2026 is 0.34% of the federal financial assistance that will be expended on DOT-assisted contracts funded directly by the Federal Transit AdministraƟon (FTA). The DOT-assistance for the City of Salem ride sharing service, Salem Skipper, and vehicle rental is expected to be $1,079,249.90 over two years during Federal Fiscal Years 2024-2026. The 0.34% goal equates to expending $3,669.45 with DBEs during these fiscal years. III. DOT-ASSISTED CONTRACTS FOR FFY2024-2026 The City will use DOT-assistance to contract ride sharing service and vehicle rental during the three-year period. Table 1 below represents the various associated NAICS codes considered in preparing this goal methodology. The projects are anƟcipated to be awarded during the three years of the triennial period, the total dollars listed are DOT-assistance only. Table 1 - Estimated Expected DOT-Funded Contracts, Associated NAICS Codes Project Year Project Name Project Element NAICS Code Percent DOT Funded Total Estimated DOT-Cost 2024 Ride Sharing Services (Salem Skipper) Fuel dealers 447110, 447190 48% $91,851.06 Automotive repair and maintenance 811111 48% $229,627.64 Software publishers 519190 48% $91,851.06 Telephone answering services 561421 48% $363,329.74 Translation Services 541930 48% $50,000.00 Vehicle Rental 532111, 532112 48% $252,590.40 ---PAGE BREAK--- FTA Disadvantaged Business Enterprise (DBE) Goal Methodology Federal Fiscal Years FFY 2024-2026 IniƟally Submited August 1, 2023 IV. Goal Methodology STEP 1: Determine the Base Figure for the RelaƟve Availability of DBEs (26.45) The first step is to determine a base figure for the relaƟve availability of DBEs available to propose on the City’s DOT-assisted contracƟng opportuniƟes projected to be solicited during the triennial goal period. The City followed the prescribed federal methodology to determine relaƟve availability in our market. The City’s local market area consists of the geographic area in which a substanƟal majority of the City’s contracƟng dollars are expended and/or where the substanƟal majority of contractor and subcontractor bids or proposals are located. Recent Bidder's List data demonstrates that most prime contractors bidding on City’s contracts are from throughout the state of Massachusets which is the City’s established market area. The geographic area is limited to Essex County for fuel, automoƟve repair, and vehicle rental to best support operaƟons. To determine the base figure, the City used a combinaƟon of data sources as permited under Title 49 of the Code of Federal RegulaƟons, SecƟon 26.45, subsecƟon Specifically, the City idenƟfied NAICS codes for anƟcipate work for the period of this goal, including those shown in Table 2: Table 2: NAICS Codes Project Element NAICS Code Fuel dealers 447110, 447190 Automotive repair and maintenance 811111 Software publishers 519190 Telephone answering services 561421 Translation Services 541930 Vehicle Rental 532111, 532112 To determine the total number of firms ready, willing, and able to perform the anƟcipated work (the denominator), the City reviewed the most recent Census Bureau County Business Paterns for each of the above referenced NAICS codes. For fuel dealers, automoƟve repair and maintenance, and vehicle rentals the geographic area was limited to Essex County. For soŌware publishers, translaƟon services, and telephone answering services, the geographic area was set for the state of Massachusets. Once the types of firms that would be performing work on DOT-assisted contracts was idenƟfied, the City then relied upon a database of DBE vendors that are registered with the Commonwealth Supplier Diversity Office (SDO) to determine firms that would be reasonable to assume are ready, willing, and able to perform the anƟcipated work (the numerator). The base figure for the relaƟve availability of DBEs was calculated as follows: Ready, willing, and able DBEs = 4 All firms ready, willing and able= 534 ---PAGE BREAK--- FTA Disadvantaged Business Enterprise (DBE) Goal Methodology Federal Fiscal Years FFY 2024-2026 IniƟally Submited August 1, 2023 When we divided the numerator by the denominator we arrived at the base figure for our overall goal and that number was: 0.63%. The City further applied weighƟng as the next step as FTA guidance suggests, because the availability of DBEs varies by NAICS code, and the anƟcipated amount of funding for each type of work also varies. Table 3: Weighting of DBE by NAICS Code NAICS Code Project Weight Availability Weighted Base Figure 447110, 447190 Fuel dealers 0.0851 0.0048 0.0004 811111 Automotive repair and maintenance 0.2128 0.0099 0.0021 519190 Software publishers 0.0851 0.0000 0.0000 561421 Telephone answering services 0.3830 0.0000 0.0000 541930 Translation Services 0.0463 0.0189 0.0009 532111, 532112 Vehicle rental 0.2340 0.0000 0.0000 Total 0.0034 Total Expressed as Percent 0.34% The difference with weighƟng applied is a goal of 0.34%. Step 2: Adjustments to the Base Figure The City did not have sufficient contract acƟvity to establish a DBE goal for the period of FFY2021-2023 and this is the first set of goals developed by the City on DOT projects. Therefore, there is inadequate data to adjust the base figure based on past parƟcipaƟon. The City reviewed and analyzed two disparity studies to determine the existence of staƟsƟcal dispariƟes in the ability of DBEs to obtain financing, bonding, and insurance and to beter understand potenƟal barriers between availability and uƟlizaƟon. The City acknowledges that the base figure determined in Step 1 reflects the amount of parƟcipaƟon that DBEs would be expected to achieve in the absence of present and past effects of discriminaƟon. Minority- and women-owned businesses experience barriers that place these businesses at a disadvantage for compeƟng for federal contracƟng. Because the City does not have a sufficient staƟsƟcal foundaƟon on which to determine an appropriate adjustment for these factors, the City will not make any adjustment to the base figure to account for the conƟnuing effects of past discriminaƟon at this Ɵme. 49 CFR Part 26 states that there must be a raƟonal relaƟonship between the data used to make the adjustment and the actual numerical adjustment made. Thus, the City has not used this data to further adjust its FFY 2024-2026 base figure for its overall DBE goal. ---PAGE BREAK--- FTA Disadvantaged Business Enterprise (DBE) Goal Methodology Federal Fiscal Years FFY 2024-2026 IniƟally Submited August 1, 2023 V. UƟlizaƟon of Race-Conscious and Race-Neutral ProjecƟons Race conscious goals will be set for the Salem Skipper ride sharing service award only. The City anƟcipates that the prime awardee can subcontract for fuel, automoƟve repairs, soŌware publishing, and customer service. There are three DBEs providing fuel and automoƟve repair services in the Salem- area. Since the Ride Share provider will be procuring goods and subcontracts, it is the expectaƟon that there will be a contract specific race-conscious goal of 0.34%. The City will take affirmaƟve steps to achieve its DBE goal using race neutral measures, which will include: • Making efforts to assure that bidding and contract requirements facilitate parƟcipaƟon by DBEs and other small businesses; • Unbundling large contracts to make them more accessible to small businesses; • Encouraging prime contractors to subcontract porƟons of the work that might otherwise be performed by the prime contractor; • ParƟcipaƟng in or sharing informaƟon about City contracƟng opportuniƟes in transportaƟon planning industry-specific outreach events for small businesses; and • Providing technical assistance and other support services to facilitate consideraƟon of DBEs and other small businesses. ---PAGE BREAK--- FTA Disadvantaged Business Enterprise (DBE) Goal Methodology Federal Fiscal Years FFY 2024-2026 IniƟally Submited August 1, 2023 VI. Public ParƟcipaƟon in Seƫng Overall DBE Goals The City posted the DBE Goal and a public noƟce on the City’s website and will conƟnually post the Goal on the website at: htps://www.salemma.gov/purchasing/pages/proposed-disadvantaged-business- enterprise-dbe-goal. The public noƟce is atached as Atachment 1. The DBE Goal was distributed to ten (10) unique email addresses to the City of Salem Chamber of Commerce, Salem State, PTAC, North Shore Alliance, and applicable DBE businesses listed in the Massachusets UCP. The City also distributed the Goal and public noƟce to 17 unique email addresses listed in the Massachusets SDO database with relevant NAICS codes. Finally, the City held two public hearings on October 6, 2023 and October 26, 2023 via MS Teams. InformaƟon about these webinars was included in the public noƟces including meeƟng links. The City received no writen comments on its proposed overall goal during the public parƟcipaƟon process. There was one parƟcipant in the October 26, 2023 public hearing. A summary of the comments from this hearing are as follows: 1. The North Shore Alliance has a Diversity Directory, would this support the City with this effort? 2. How will the City incorporate various linguisƟc/translaƟon needs? Are these incorporated into the subcontracƟng consideraƟons included in the goal? Recommend expanding the City’s understanding of broader community language needs (not just Salem) 3. What are the hours of operaƟon? 4. Are there age restricƟons on this service? 5. What is the long term funding to be used? Our responses to these comments are: • The City welcomes support in sharing the DBE Goal and the North Shore Alliance Diversity Directory with the primes contractor to idenƟfy potenƟal subcontractors. • The DBE Goal has been adjusted to include potenƟal translaƟon service required for the Salem Skipper services. The City is also finalizing a Title VI Program. This program will inform the languages to be incorporated in the service. • The City is gathering data to further inform State funders of the benefits of the program going forward. • Details related to the Salem Skipper service is available on the City’s website. We encourage all interested parƟes to contact the DBELO with addiƟonal quesƟons related to the service. Specific details discussed through the public hearings include: o The service app is available English and Spanish o Service hours are Monday-Thursday 7am-10pm; Friday 7am-Midnight; Saturday 10am- Midnight; Sunday 10am-8pm o Middle schoolers are able to make reservaƟons • We encourage all interested firms to contact the DBELO with quesƟons about our processes, contracƟng requirements, or any other procurement-related quesƟons. ---PAGE BREAK--- FTA Disadvantaged Business Enterprise (DBE) Goal Methodology Federal Fiscal Years FFY 2024-2026 IniƟally Submited August 1, 2023 Atachment 1 PUBLIC NOTICE PROPOSED DISADVANTAGED BUSINESS ENTERPRISE (DBE) GOAL Proposed DBE Goal This noƟce is to inform interested parƟes that the City of Salem intends to establish a DBE ParƟcipaƟon Goal of 0.25% for Federal Fiscal Years 2024-2026 for projects funded in part by Federal Transit AdministraƟon (FTA) funds. A race conscious goal will be set for the Salem Skipper ride sharing service award only. The City anƟcipates that the prime awardee can subcontract for fuel, automoƟve repairs, soŌware publishing, and customer service. The proposed revised DBE goal and methodology has been developed by the City of Salem in accordance with the requirements set forth in 49 CFR Part 26. The full text of the draŌ DBE goal is available at the City of Salem website: htps://www.salemma.gov/purchasing/pages/proposed-disadvantaged-business-enterprise-dbe-goal Public Comment Sessions A public comment session was held via Teams on October 6, 2023 at 1:00p.m. Eastern Time. No comments were received. An addiƟonal public comment session will be held via Teams on October 26, 2023 at 4:00p.m. Eastern Time. Interested parƟes may parƟcipate online through your computer, mobile app or room device using the informaƟon and link below: Click here to join the meeting Meeting ID: 256 978 969 818 Passcode: ApihMy Writen Comments If you have quesƟons or input on the DBE goal, you may also contact the City of Salem’s Disadvantaged Business Enterprise Liaison Officer by telephone or email at: Mr. Anthony Delaney, Chief Procurement Officer [PHONE REDACTED] [EMAIL REDACTED] Please provide any comments by November 3, 2023 at 5:00p.m. Eastern Time. The City of Salem