City of Manteca FTA DBE Goal Methodology Page 1 of 22
FFY 2024 – FFY 2026
City of Manteca, California
Federal Transit Administration (FTA)
Overall Disadvantaged Business Enterprise (DBE)
Goal-Setting Methodology
Federal Fiscal Years (FFY) 2024 – 2026 Goal Period
Submitted in fulfillment of
Title 49 Code of Federal Regulations Part 26
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Section 1 | Introduction
The City of Manteca (City) herein sets forth its Overall Disadvantaged Business Enterprise (DBE) Goal and corresponding federally prescribed goal-setting methodology for the Federal Fiscal Year (FFY) period of 2024-2026 (October 1, 2023 through September 30, 2026), pursuant to Title 49 Code of Federal Regulations (CFR) Part 26 “Participation by Disadvantaged Business Enterprises in U.S. Department of Transportation Programs.” The purpose of the DBE goal-setting process is to level the playing field so that DBEs can compete fairly for U.S. Department of Transportation (USDOT)-assisted contracts, however, the program must be narrowly tailored in accordance with applicable law.
Section 2 | Background
The City is a recipient of USDOT Federal Transit Administration (FTA) funding. As a condition of receiving this assistance, the City signed an assurance that it will comply with FTA’s DBE requirements. In accordance with Title 49 CFR Part 26 provisions: Participation by DBEs in USDOT Programs, the City is required to develop and submit a Triennial Overall DBE Goal for its FTA-assisted projects.
The City herein presents its Overall DBE Goal Methodology for FFY 2024-2026.
Section 3 | FTA-Assisted Contracting Program for FFY 2024-2026 Market Area
The Federal DBE Program requires agencies to implement the DBE Program based on information from the relevant geographic market area—the area in which the agency spends the substantial majority of its contracting dollars. The City previously recognized a market area of the entire state of California. A review of the City’s bidder’s list revealed that the correct market area should be Alameda County, Contra Costa County, Sacramento County, San Joaquin County, and Stanislaus County. This revised market area consists of a geographic area that is:
• Where a large majority of contracting dollars is expended, and • Where a substantial number of contractors and subcontractors are located and available to submit bids, quotes, or proposals.
The exceptions to this market area are in the categories of transit operations contractors and transit planners. For these category (NAICS 4851 – Urban Transit Systems and 541611 – Administrative Management and General Management Services), we included all providers and DBEs throughout the state, as many bidders in these categories are not geographically constrained. DBEs under NAICS 541611 were reviewed for applicability in terms of the services they provide, but statewide businesses in this category could not be so evaluated.
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Anticipated Projects
The City has several FTA-assisted projects it anticipates will be awarded during the upcoming triennial period. The two largest FTA-assisted projects are the development of a Transit Bus Yard and the Transit Operations Contract. The land acquisition cost for the Transit Bus Yard is not included in the DBE goalsetting given it is a real property purchase. Design and construction of the Transit Bus Yard, which may commence during the triennial period, is included in the goal-setting. The Transit Operations Contract was awarded during FFY 2023 and is a three-year contract with the option for extension. As a result, it will not be likely to go out for bid within the triennial period and is not included in the goal-setting. The City has also received federal assistance to purchase two vehicles, which are not factored into the goal-setting per Title 49 CFR Part 26.45(a)(2).
Several smaller operating contracts have also recently been awarded and are unlikely to be put out for bid during the triennial period given the contract durations (base period plus option years). The City does intend to award a contract for a federally assisted Short Range Transit Plan during the triennial period.
FTA-assisted projects are listed in Table 1 below.
• Column A lists the name of the project.
• Column B lists the total estimated cost of the project. • Column C lists the estimated FTA dollar share for the project. • Column D lists the estimated local share for the project. • Column E indicates whether the project is included within the goal-setting.
Table 1
A B C D E
Project Total estimated
project cost
Estimated FTA
Share
Estimated
Local Share
Included in
DBE goal
Transit Bus Yard – land
acquisition $1,000,000 $800,000 $200,000 No
Transit Bus Yard – design and
construction $4,120,000 $3,296,000 $824,000 Yes
Transit Operations Contract
(ongoing contract) $6,919,630 $6,919,630 $0 No
Purchase of 2 CNG buses $800,000 $640,000 $160,000 No
Short Range Transit Plan $65,000 $65,000 $0 Yes
Totals $12,997,630 $11,811,630
The City does not award any funds to subrecipients; therefore, there are no subcontracting opportunities with any subrecipients included in Table 1.
Categories of Work
The City reviewed the projects to be awarded in the triennial period and determined the applicable categories of work applicable for each project using North American Industry Classification System (NAICS) codes. The corresponding dollar values for each NAICS code for the project were summarized for purposes ATTACHMENT 2
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of weighting the categories of work based on the staff estimates. Table 2 provides a summary of the categories of work with estimated dollars for each.
• Column A lists the category of work (NAICS code).
• Column B lists the category of work (NAICS title).
• Column C lists the estimated dollar share for each NAICS code. • Column D lists the estimated percentage of each NAICS code (the estimated FTA dollars for each NAICS code divided by the total of all estimated FTA dollars).
Table 2
A B C D
NAICS
Code Category of Work
Estimated
FTA $ by
NAICS Code
Estimated
FTA % by
NAICS
Code
237990 Construction Management, Mass Transit $800,000 31.2% 23821 Electrical Contractors and Other Wiring Installation Contractors $200,000 7.8%
238910 Site Preparation Contractors $200,000 7.8%
238990 All Other Specialty Trade Contractors $400,000 15.6% 541330 Construction Engineering Services $800,000 31.2% 541620 Environmental Consulting Services $100,000 3.9%
541611 Administrative Management and General Management Consulting Services $65,000 2.5%
Total $2,565,000 100.0%
Section 4 | Goal Methodology
Step 1: Determination of a Base Figure (Title 49 CFR Part 26.45) To establish the City’s Base Figure of the relative availability of DBEs to all comparable firms (DBE and nonDBE) available to bid or propose on the City’s FTA-assisted contracting opportunities projected to be solicited during the triennial goal period, the City followed the prescribed federal methodology to determine relative availability. This was accomplished by accessing the California Unified Certification Program (CUCP) DBE Database of Certified Firms and the 2021 U.S. Census Bureau County Business Patterns Database within the City’s market area for each of the categories of work defined in Table 2.
In accordance with the formula listed below, the Base Figure is derived by:
• Dividing the number of ready, willing and able DBE firms identified for each NAICS work category by the number of all firms identified within the market area for each corresponding work category (relative availability),
• Weighting the relative availability for each work category by the corresponding work category weight from Table 2 (weighted ratio), and
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• Adding the weighted ratio figures together.
Base figure =
(Number of ready, willing, and able DBEs)
x Weighted Ratio (Number of all ready, willing, and able firms) Data sources:
o For the numerator: CUCP DBE Database of Certified Firms o For the denominator: 2021 U.S. Census Bureau County Business Patterns Database A concerted effort was made to ensure that the scope of businesses included in the numerator were as close as possible to the scope included in the denominator. The result of the Base Figure calculation is shown in Table 3.
• Column A lists the category of work (NAICS code).
• Column B lists the category of work (NAICS title).
• Column C lists the estimated percentage of each NAICS code (the estimated FTA dollars for each NAICS code divided by the grand total of all estimated FTA dollars) from Table 2. • Column D lists the number of DBEs in the market area for each NAICS code from the California Unified Certification Program (CUCP) DBE Database of Certified Firms. • Column E lists the number of all firms (DBE and non-DBE) in the market area for each NAICS code from the 2021 U.S. Census Bureau County Business Patterns Database. • Column F lists the DBE availability for each NAICS code (the number of DBEs divided by the number of all firms, multiplied by the estimated NAICS percentage).
The weighted base figure is the sum of the DBE availability for each NAICS code.
Table 3
NAICS
Code Category of Work
Estimated
FTA % by
NAICS
DBEs All
Firms
Weighted
Ratio
237990 Construction Management, Mass Transit 31.2% 0 33 0.00% 23821 Electrical Contractors and Other Wiring
Installation Contractors 7.8% 0 1,204 0.00%
238910 Site Preparation Contractors 7.8% 15 335 0.35%
238990 All Other Specialty Trade Contractors 15.6% 30 455 1.03% 541330 Construction Engineering Services 31.2% 3 1,271 0.07% 541620 Environmental Consulting Services 3.9% 2 298 0.03% 541611 Administrative Management and General
Management Consulting Services 2.5% 0 1,701 0.00%
Weighted Base Figure 1.48%
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Step 2: Adjusting the Base Figure (Title 49 CFR Part 26.45) Upon establishing the Base Figure, the City reviewed and assessed other known evidence potentially impacting the relative availability of DBEs within the market area, in accordance with prescribed narrow tailoring provisions set forth under 49 CFR Part 26.45: Step 2; DBE Goal Adjustment guidelines.
A. Past DBE Goal Attainments
Historical DBE participation attainments provide demonstrable evidence of DBE availability and capacity to perform on the City’s projects. The projects anticipated to be awarded during the triennial period are substantially similar to those awarded in the recent past. The City calculated past DBE participation attainments for the three federal fiscal years, for which DBE attainment data is available. The table below reflects the demonstrated capacity of DBEs (measured by actual historical DBE participation attainments) on FTA-assisted contracts awarded by the City within the last three federal fiscal years.
Table 4
Federal Fiscal Year (FFY) FTA DBE Goal
Attainment %
FFY 2019/2020 6.10%
FFY 2020/2021 0.60%
FFY 2021/2022 0.00%
Median DBE attainment
across the last 3 years 0.60%
The median DBE participation within the last three FFYs is 0.60%. However, given the recent award by the City to a DBE to operate its transit program from July 1, 2023 through June 30, 2026, past participation is not used to reduce the base figure.
B. Disparity Studies
The City has not conducted an Availability and Disparity Study but has reviewed the draft results from the Caltrans 2022 FTA Disparity Study. The City determined that the types of work included in the disparity study along with their respective market area are not representative of the projected FTA-assisted contracts and market area for this upcoming triennial period. The City has elected to not use the Caltrans 2022 FTA Disparity Study data as a basis for adjusting the base figure for this triennial period.
The City is not aware of any other regional DBE disparity studies for similar agencies at this time.
C. Other Available Evidence
In FFY 2022, the City did not meet its DBE goal as a result of planned projects not moving forward during the triennial period. There was no evidence that further adjustment is needed in order to achieve future goals, or that the base figure should be reduced further.
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Section 5 | Proposed Overall DBE Goal
Since the Ninth Circuit Court of Appeals decision regarding Western States Paving v. Washington State Department of Transportation, the City has set race-neutral goals. The City will periodically re-evaluate its DBE Program to determine whether contract goals are necessary to achieve the overall goal. If after reevaluation the City believes a race-conscious program is necessary, as required by Western States, the City will gather evidence to determine if discrimination in the transportation contracting industry is present.
The City will make a determination at that time what type of evidence gathering is appropriate, based on DOT regulations and case law.
The Proposed Overall DBE Goal for FFY 2024-2026 for the City of Manteca’s FTA-assisted contracts is 1.48%.
The DBE goal is based on the federal share is a Race Neutral goal and the City will implement increased race neutral measures in an effort to achieve DBE participation, as generally described in the following section.
As a part of the prescribed goal-setting methodology, the City must project the percentage of its Proposed Overall DBE Goal that can be met utilizing race-neutral and race-conscious measures. The City intends to use race-neutral methods, as shown below in Table 6, to meet the overall DBE goal of 1.48% for FFY 2024- 2026 in accordance with Title 49 CFR Part 26.51.
Table 6
Race-Conscious and Race-Neutral Projections
DBE Adjusted Base Figure 1.48%
Race-Neutral Component 1.48%
Race-Conscious Component 0.0%
Section 6 | Race-Neutral Implementation Measures
The USDOT regulations require that race-neutral methods be used to the maximum extent feasible to reach the DBE overall goal. The City is currently implementing several race- and gender-neutral remedies to outreach and promote the participation of DBEs and small businesses in the City’s FTA-assisted contracting program. The City plans to continue or implement the following race-neutral measures for FFY 2024-2026 and will continue to explore other options for consideration. The City will:
• Arrange solicitations, times for the presentation of bids, quantities, specifications, and delivery schedules in ways that facilitate DBE and other small business participation. The City will also hold conferences, which include a networking component to promote teaming opportunities between prospective prime contractors and the DBE and Small Business contracting community. • Organize large contracts into smaller contracts when feasible, which would make contracts more accessible to small business, and would not impose significant additional cost, delay or risk to the City. Identify components of the work which represent subcontracting opportunities and identify the availability of DBE subcontractors to participate in proportion to total available subcontractors.
Contractors will be encouraged to consider subcontractors for components of the work for which there is a known supply of ready, willing, and able subcontractors, including DBE subcontractors, in preparing their bids.
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• Refer interested parties to SBA resources for technical assistance in orienting small businesses to public contracting procedures; use of the Internet; business development assistance; and assistance in bid preparation.
• Refer interested parties to SBA resources for assistance in overcoming limitations such as inability to obtain bonding or financing (e.g., by such means as simplifying the bonding process, reducing bonding requirements, eliminating the impact of surety costs from bids, and providing services to help DBEs, and other small businesses, obtain bonding and financing). • Solicit DBEs and other small businesses participation by carrying out information and communication programs on contracting procedures and specific contract opportunities (e.g., ensuring the inclusion of DBEs, and other small businesses, on recipient mailing lists of bidders; ensuring the dissemination to bidders on prime contracts of lists of potential subcontractors; provision of information in languages other than English, where appropriate). • Actively promote the Small Business conferences, programs, and support services offered by other agencies that have established DBE and Small Business Programs as a supportive service to help develop and improve immediate and long-term business management, record keeping, and financial and accounting capability for DBEs and other small businesses. • Advise its contracting community of the online directory of certified DBEs at the Caltrans website:
https://dot.ca.gov/programs/civil-rights/dbe-search.
• Advise the contracting community of the available small businesses certified by the California Department of General Services (DGS) and found at:
https://caleprocure.ca.gov/pages/PublicSearch/supplier-search.aspx. • Administrative Services will maintain a list of sources for information on DBEs in. The list will include sources for information on local DBEs that can be obtained from California Department of Transportation, other the City member jurisdictions, and other organizations that maintain DBE information relevant to the City procurement needs.
• The City is responsible for procuring goods or services will identify sources of information identifying DBEs prior to issuing IFBs or RFPs, as applicable. The DBELO will be responsible for maintaining all records for each procurement that indicate the names of all firms who received IFBs or RFPs or informal solicitation requests, the bids or proposals received, the ranking of the bids or proposals received, and the name(s) of the firm(s) awarded the contract. • The City will be responsible for coordinating the procurement to ensure that DBEs have the maximum opportunity to submit bids or proposals.
• The City encourages participation by DBE firms and by joint ventures between DBE and non-DBE firms in the City contracts and subcontracts to the maximum extent practicable. The City will state this policy in its RFPs and IFBs and will state its willingness to help any non-DBE firm identify DBEs for joint venture or subcontract opportunities.
• The City will direct DBEs to state and local government agencies that provide technical assistance and other services to facilitate DBE participation in the City contracts and subcontracts.
Section 7 | Fostering Small Business Participation
The City has incorporated the following non-discriminatory small business element to its DBE program, in order to facilitate competition on DOT-assisted public works projects by small business concerns (both DBEs and non-DBE small businesses). The City will structure contracting requirements to facilitate competition by small businesses by requiring prime contractors to specify elements of work that small ATTACHMENT 2
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businesses can perform and to provide subcontract opportunities for those elements to DBEs and other small businesses.
In addition, the City commits to the following:
• Organize large contracts into smaller contracts when feasible, which would make contracts more accessible to small business, and would not impose significant additional cost, delay or risk to the City;
• Assist in overcoming limitations in bonding and financing by referral to an SBA resource; • Providing business development assistance by referral to an SBA resource that will provide instructions for preparation of bid specifications; procurement policy procedures and general bid requirements; information on specific reasons for unsuccessful bids through debriefing sessions; instruction on job performance requirements; and referrals to firms who offer advice and assistance through mentor-protégé programs;
• Facilitating introductions to the City and other USDOT recipients’ contracting activities; • Providing outreach and communications programs on contract procedures and contract opportunities to ensure the inclusion of small businesses; • Consider setting race-neutral small business goals on DOT-funded contracts; • Consider setting contract set-asides for small business on DOT-funded contracts; and • Encourage current or past City contractors who may qualify for DBE certification to seek and obtain DBE certification.
Section 8 | Public Participation and Facilitation
A Public Notice was issued on the City website on June 26, 2023, publishing the Draft Proposed FTA Overall DBE Goal-Setting Methodology for FFY 2024-2026. The notice informed the public that the proposed goal and goal-setting methodology were available for review at the City’s principal office during business hours for 30 days following the date of the Public Notice, or upon request, and that the City would accept comments on the goal analysis for 30 days from the date of the Public Notice.
In accordance with Public Participation Regulatory Requirements of Title 49 CFR Part 26, minority, women, local business associations, and community organizations within the market area were contacted and provided an opportunity to review the triennial goal analysis and provide input. The City reached out to fourteen (14) local minority, women, and community business organizations to provide them information on the City’s DBE program and specifically the Draft Proposed FTA Overall DBE Goal-Setting Methodology for FFY 2024-2026 and to solicit their comments. Each organization was contacted multiple times by both telephone and email. The summary of all contact made in an attempt to receive input as part of this process can be found in Attachment 3. The City prepared a presentation for the public comment webinar; however, no individuals participated.
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Attachment 1| Notice to the Public
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Attachment 2| Email Blast
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Attachment 3| Consultative Process Summary
Organization Address Email Phone Number Contact Efforts African American Chamber
of Commerce - San Joaquin
42 N. Sutter Street,
Suite 217 Stockton, CA
95202
[email protected] 209-227-5413
First e-blast sent out 7/11/23.
Left voicemail on 7/13/23.
Second e-blast sent out 7/18/23.
7/21/23.
Spoke to secretary; she will pass on
the message to the President and CEO
and respond to the invite.
Third e-blast sent out 7/24/23.
Central Valley Hispanic
Chamber of Commerce
1100 J St Modesto, CA
95354 [email protected] 209-789-5123
First e-blast sent out 7/11/23.
Left voicemail on 7/13/23.
Second e-blast sent out 7/18/23.
Left voicemail on 7/21/23.
Third e-blast sent out 7/24/23.
Central California Hispanic
Chamber of Commerce
5108 E. Clinton Way
Suite #131 Fresno, CA
93727
[email protected] 559-549-4480
First e-blast sent out 7/11/23.
Spoke to Jessica on 7/13/23 and she
asked for the methodology and invite
to the webinar be sent to her email
[email protected].
Sent out methodology on 7/14/23.
Second e-blast sent out 7/18/23.
Spoke to Jessica on 7/21/23 to remind
them of the webinar.
Third e-blast sent out 7/24/23.
Fresno Area Hispanic
Foundation
1444 Fulton St Fresno,
CA 93731 [email protected] 559-222-8705
First e-blast sent out 7/11/23.
No answer, unable to leave voicemail
on 7/13/23.
Second e-blast sent out 7/18/23.
No answer, unable to leave voicemail
on 7/21/23.
Third e-blast sent out 7/24/23.
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Organization Address Email Phone Number Contact Efforts Fresno Metro Black
Chamber of Commerce
1600 Fulton St, Fresno,
CA 93721 [email protected] 559-441-7929
First e-blast sent out 7/11/23.
Left voicemail on 7/13/23.
Second e-blast sent out 7/18/23.
Left voicemail on 7/21/23.
Third e-blast sent out 7/24/23.
Fresno Native American
Business Development
Center
5067 N. Mariposa St,
#105 Fresno, CA 93710 [email protected] 559-908-7128 First e-blast sent out 7/11/23.
Spoke to David on 7/13/23 and he
requested the methodology and
invite to the webinar to be sent to
him so he can send it to the other
tribes that may want to attend.
Methodology sent out on 7/14/23.
Second e-blast sent out 7/18/23.
Spoke to David on 7/21/23 to remind
him of the webinar.
Third e-blast sent out 7/24/23.
Merced County Hispanic
Chamber of Commerce
800 W 20th St, Suite D
Merced, CA 95340 [email protected] 209-384-9537
First e-blast sent out 7/11/23.
Spoke to secretary on 7/13/23 and
she asked for the invite to be sent
again and will look out for the email.
Methodology sent out on 7/14/23.
Second e-blast sent out 7/18/23.
Left voicemail on 7/21/23.
Third e-blast sent out 7/24/23.
San Joaquin County Hispanic
Chamber of Commerce
5637 N Pershing
Avenue, Suite B-8
Stockton, CA 95207
[email protected] 209-943-6117
First e-blast sent out 7/11/23.
Left voicemail on 7/13/23.
Second e-blast sent out 7/18/23.
Left voicemail on 7/21/23.
Third e-blast sent out 7/24/23.
Stanislaus County Hispanic
Chamber of Commerce
400 12th St #2 Modesto,
CA 95354 [email protected]
First e-blast sent out 7/11/23.
Second e-blast sent out 7/18/23.
Third e-blast sent out 7/24/23.
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Organization Address Email Phone Number Contact Efforts Asian Pacific Islander
American Public Affairs
4000 Truxel Road, Suite
3 Sacramento, CA 95834 [email protected] 916-928-9988
First e-blast sent out 7/11/23.
Left voicemail on 7/13/23.
Second e-blast sent out 7/18/23.
Left voicemail on 7/21/23.
Third e-blast sent out 7/24/23.
Fresno County Women's
Chamber of Commerce
P.O. Box 3408 Fresno,
CA 93650 [email protected] 800-798-4809
First e-blast sent out 7/11/23.
Spoke to Summer on 7/13/23, they
have their board meeting same date
and time. Offered to send over the
methodology for future reference and
she said yes.
Methodology sent out on 7/14/23.
Second e-blast sent out 7/18/23.
Third e-blast sent out 7/24/23.
National Association of
Women in Construction -
Fresno Chapter
P.O. Box 418 Clovis, CA
93613 [email protected]
First e-blast sent out 7/11/23.
Second e-blast sent out 7/18/23.
Third e-blast sent out 7/24/23.
Sacramento Area Women's
Chamber of Commerce
P.O.Box 163555
Sacramento, CA 95816 [email protected] 916-426-8366 First e-blast sent out 7/11/23.
On 7/13/23 person on phone said
phone number is not for the chamber
and they get calls for them often.
Second e-blast sent out 7/18/23.
Third e-blast sent out 7/24/23.
Sacramento Asian Pacific
Chamber of Commerce
1610 R Street, Suite 300
Sacramento, CA 95811 [email protected] 916-446-7883
First e-blast sent out 7/11/23.
Left voicemail on 7/13/23.
Second e-blast sent out 7/18/23.
Left voicemail on 7/21/23.
Third e-blast sent out 7/24/23.
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Organization Address Email Phone Number Contact Efforts Sacramento Hispanic
Chamber of Commerce
1111 Exposition Blvd,
Building 100
Sacramento, CA 95815
[email protected] 916-486-7700
First e-blast sent out 7/11/23.
Left voicemail on 7/13/23.
Second e-blast sent out 7/18/23.
Spoke to secretary on 7/21/23, she
asked the methodology and invite be
emailed over.
Methodology and invite sent over on
7/21/23.
Third e-blast sent out 7/24/23.
California Black Chamber of
Commerce
1600 Sacramento Inn
Way, Suite 232
Sacramento, CA 95815
[email protected] 916-467-8878
First e-blast sent out 7/11/23.
Spoke to secretary on 7/13/23 and
she provided the email address to
send the invite to ([email protected]).
Methodology sent out on 7/14/23.
Second e-blast sent out 7/18/23.
Left voicemail on 7/21/23.
Third e-blast sent out 7/24/23.
Sacramento Black Chamber
of Commerce
1810 S Street
Sacramento, CA 95811 [email protected] 916-231-0416 First e-blast sent out 7/11/23.
Spoke to Mayisha on 7/13/23 and
they declined further participation.
California Hispanic
Chambers of Commerce
1510 J Street, Suite 210
Sacramento, CA 95814 [email protected] 916-444-2221
First e-blast sent out 7/11/23.
Spoke to Laura on 7/13/23 and will
send her the e-blast to pass on to her
higher ups at [email protected].
Methodology sent out on 7/14/23.
Second e-blast sent out 7/18/23.
Left voicemail on 7/21/23.
Third e-blast sent out 7/24/23.
Central Valley AsianAmerican Chamber of
Commerce
1178 W Adams St
Stockton, CA 95204 209-405-2630 Left voicemail on 7/13/23. Left voicemail on 7/21/23.
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Attachment 4 | Webinar Presentation
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ATTACHMENT 2