topnew1x1.gif
topnew2x1.gif topnew2x2.gif topnew2x3.gif topnew2x4.gif topnew2x5.gif
     
 



Public Hearing on Disadvantaged Business Enterprise (DBE) Goal Methodology
MEETING MINUTES
June 12, 2007

PURPOSE

The purpose of the Public Hearing is to comply with the U.S. Department of Transportation (DOT) requirements as outlined in 49 CFR Part 26.47(5)(g)(1). The Greater Hartford Transit District (GHTD) is currently revising its Fiscal Year 2007 DBE utilization goal and is soliciting input from concerned parties regarding the program with a public hearing.

BACKGROUND

The hearing was held on Tuesday, June 12, 2007, beginning at 10:00 AM in the Multipurpose Room at the offices of the Greater Hartford Transit District, One Union Place, Hartford, Connecticut.

Small, Minority and Women-Owned Business Community Groups and Representatives were represented by Alvin Bingham, State of Connecticut Commission on Human Rights and Opportunities. Dr. Fred McKinney, President of the Connecticut Minority Supplier Development Council was consulted via telephone conference on June 11, 2007, as he was unable to attend the Public Hearing.

A number of other parties that would have information concerning the availability of disadvantaged businesses, the effects of discrimination on opportunities for dbe firms, and the agency's efforts to establish a level playing field for the participation of dbe firms had been invited and were not represented, including:

Permanent Commission on the Status of Women
CT Construction Industries Association
City of Hartford Office of Human Relations
State of Connecticut Department of Transportation Office of Contract Compliance
Urban League of Greater Hartford

DISCUSSION TOPICS

The following responses were obtained as a result of the discussion of the above items.

1) If there is a reasonable basis to conclude the Greater Hartford Transit District could achieve its goal of DBE participation using race-neutral means;

Answer: Yes. Race neutral means such as the use of procurement forecasts and outreach efforts should be sufficient to allow the GHTD to reach its DBE goals.

The Connecticut Minority Supplier Development Council (CMSDC) noted major corporations seeking diversity suppliers in Connecticut do not use race-based programs. However, they do perform aggressive vendor outreach programs and also work to carefully match diversity suppliers with the right contract.

2) Conditions in our jurisdiction are appropriate for implementing the proposal

Answer: Yes. A survey of current and potential DBE suppliers revealed 67 individual companies in Connecticut that were represented in the 18 NAICS codes relating to the DOT grants. The pool of current and potential DBEs was even larger when you take into account the neighboring states of Rhode Island and Massachusetts. There remains the issue of persuading potential DBEs to initiate the certification process through the State of Connecticut Department of Transportation Unified Certification Program.

3) The proposed goal is consistent with applicable law and program requirements of the Federal Transit Administration's financial assistance program.

Answer: Yes

4) Expanding the State of Connecticut Department of Transportation DBE Directory through expanded outreach to minority- and women-owned business groups in Connecticut, Massachusetts and Rhode Island.

Answer: Yes.

The GHTD has hired a consultant, Daniel Penn Associates, who has compiled a DBE Directory. This directory lists all current and potential DBE suppliers within the 18 applicable NAICS codes relating to the 2007 DOT grants. The directory provides profile information of DBE firms in Connecticut, Rhode Island and Massachusetts. Again, the issue of potential firms becoming certified through the UCP was discussed. It was also suggested that the State of Connecticut Department of Administrative Services and the Department of Transportation Contract Compliance Office work together to encourage certification under both programs by its vendors.

There is also the fact that at the present time, the State of Connecticut Department of Transportation Unified Certification Program has not secured a reciprocity agreement with any other certifying entity, which limits the agency's pool of fully certified firms.

5) Discuss any experiences you have encountered with discrimination with DOT-related contracts and/or subcontracts.

The CMSDC did not provide any specific cases of discrimination. However, they shared a concern that combining minority- and women-owned businesses together into a DBE classification tended to “crowd out” the MBE firms.

DBE Program Challenges and experiences that may be preventing more DBE participation are:

  • Too many certifications are required by the various government agencies. Current and potential DBE firms have a hard time complying with all the requirements.
  • 90 days process to get certified.
  • State of Connecticut not adequately staffed to conduct field visits.
  • Some of the municipal sub-recipients of FTA funds have indicated conflict with their Charter requirements pertaining to procurement (lowest bidder award) versus award to dbe firms.
  • The Connecticut Department of Administrative Services (DAS) has set a $10 million gross revenue limit which DBEs cannot exceed if they want to be eligible for State programs. This reduces the capacity of DBEs to handle larger contracts since their growth is limited.

6) Your recommendations on how to improve the overall effectiveness of the District's DBE program.

Answer. The following are recommended improvements to the GHTD DBE program

  1. Procurement Forecasts. Publish advance notices of upcoming GHTD DOT-related contracts. This will allow additional time for DBE firms to prepare bids and increase participation.
  2. Outreach. Increase attendance at events such as small business fairs where DBEs are expected to attended.
  3. Pre-Sourcing. Work to determine which DBE firms can be effective suppliers in each of the DOT-related NAICS codes. This form of pre-qualification makes it easier to include DBEs when the actual procurement document (solicitation) is released for bids.

SUMMARY

Meeting the DBE goals is a process. The GHTD has taken the following positive steps to meet the DOT-required goals:

  1. Recalculated the pool of current and potential DBE vendors using CCR-registered vendors
  2. Created a DBE directory that identifies suppliers within the applicable DOT-related NAICS codes
  3. Established a relationship with the Connecticut Minority Supplier Development Council
  4. Establish a network where the GHTD can provide referrals to DBEs who need additional assistance.
  5. Consideration to have the CMSDC in addition to other community groups and trade associations to publicize GHTD procurement opportunities to their members.
  6. Work with the Commission on Human Rights and Opportunities in the Fall of 2007 when it conducts its next disparity study.

Overall, there as a concern the DOT-recommended 10 percent goal may not be realistic for the GHTD, particularly based on the number of dbe firms certified through the UCP program. The agency will obtain additional information to determine an appropriate goal for Fiscal Year 2008.


Respectfully Submitted,

Kimberly A. Dunham
Director of Fiscal and Administrative Services

Attachment: List of Participants

PARTICIPANTS

Kimberly A. Dunham
Director of Fiscal and Administrative Services
Greater Hartford Transit District
One Union Place
Hartford, CT 06103
860-247-5329, Ext. 3009
kdunham@hartfordtransit.org

Vicki L. Shotland
Executive Director
Greater Hartford Transit District
One Union Place
Hartford, CT 06103
860-247-5329, Ext. 3002
vshotland@hartfordtransit.org

DJ Gonzalez
Operations Administrator
Greater Hartford Transit District
One Union Place
Hartford, CT 06103
860-247-5329, Ext. 3002
djgonzalez@hartfordtransit.org

Dr. Fred McKinney
President, CMSDC
4133 Whitney Avenue
Building 4, Box 2
Hamden, CT 06518
203-288-9744
fmckinney@cmsdc.org

Alvin K. Bingham
Affirmative Action / Compliance Officer
Commission on Human Rights and Opportunities
State of Connecticut
21 Grand Street
Hartford, CT 06106
800-477-5737
alvin.bingham@po.state.ct.us

Ken Golden
Daniel Penn Associates
430 New Park Ave, 2nd Floor
West Hartford, CT 06110-1142
860-232-8577
kgolden@danielpenn.com

Richard Hernandez
Daniel Penn Associates
430 New Park Ave, 2nd Floor
West Hartford, CT 06110-1142
312-404-2224
rhernandez@e-mbe