In order to calculate the portion of the goal that will be achieved through race neutral means NJDOT calculated the average past percentage of the goal that was achieved through race neutral means from 2004 through 2007. NJDOT’s past race neutral participation from 2004 through 2007 has been 14.55%, 9.9%, 8.6% and 8.67%. The average past participation is 10.43%. Therefore, NJDOT projects that 10.4% of its overall DBE goal can be achieved through race and gender neutral means or methods and 5.3% of the overall DBE goal can be achieved through race and gender conscious means or methods.

Based on the methodology described in this website, NJDOT has determined its annual DBE goal for Federal Fiscal Year 2009 as 15.7% of the total federal financial assistance the NJDOT will expend on Federal Highway Administration (FHWA) contracts.

NJDOT is not aware of any data on employment, self-employment, education and training, union apprenticeship programs that would be relevant to the goal setting process. Therefore, this data was not considered in adjusting the Step one Base Figure.

NJDOT is not aware of any disparity studies that would be relevant to the goal setting process. Therefore, such studies were not considered in adjusting the Step one Base Figure.

We calculated the median past participation percentage and used that figure to adjust the Step One Base Figure by taking the average of the median past participation figure and the Step One Base Figure. This method ensures that past participation is not be given disproportionate weight.

NJDOT’s past participation for 2004 through 2007 has been 15.05%, 10.2%, 8.6% and 15.13%.  The median past participation is 12.63%. 

The Step One analysis resulted in a Step One Base Figure of 18.68%. The average of 18.68% and 12.63% is 15.66%.  Therefore, 15.66% is the Step One Base Figure adjusted for past participation.

Calculating the Step One Base Figure requires us to identify all ready willing and able DBE firms and all firms ready willing and able to do business with NJDOT.

49 CFR 26.45 requires us to begin the goal setting process by determining a base figure for the relative availability of DBEs.  In order to accomplish this we identified: 1) ready, willing, and able DBEs; and 2) all firms ready willing and able to do business with NJDOT.

Step One Base Figure = Ready willing and able DBEs ÷ All firms ready willing and able

Ready willing and able DBEs

“Ready willing and able DBEs” are DBEs in the NJ Unified Certification Program (NJUCP) database with North American Industry Classification System (NAICS) codes in work categories where NJDOT would normally contract.  These are firms that have voluntarily submitted to the NJUCP DBE certification process, thereby demonstrating a readiness, willingness, and the ability to participate as DBEs on NJDOT contracts. 

We organized the NJUCP DBEs into construction firms, and consulting firms. There are 304 DBE construction firms and 277 DBE consulting firms (excluding duplicates).

All firms ready willing and able

“All firms ready willing and able” includes all NJDOT pre-qualified and cost-basis approved firms; ready willing and able DBEs as defined above; Emerging Small Business Enterprises in work categories where NJDOT would normally contract; sub-consultants  and sub-contractors that have done business with NJDOT within the past three years; and haulers and suppliers that have been certified as Small Business Enterprises.

These firms, like the DBEs, were divided into construction firms, and consulting firms. There are 2139 construction firms and 505 consulting firms (excluding duplicates).

DBE construction firms= 304

DBE consulting firms= 277

All construction firms= 2139

All consulting firms= 505

Weighting

In order to ensure that our base figure was as accurate as possible, we weighted the base figure according to the projected capital program expenditures for federally funded construction services and professional services for FFY 09 projects.  The total projected capital expenditures for FFY 09 are $410,601,490.  The projected capital expenditures for construction services for FFY 09 are $363,846,490.  The projected capital expenditures for professional services for FFY 09 are $46,755,000.  Therefore, 89% of NJDOT contract dollars will be spent on construction projects and 11% on consulting.

Step One Base Figure = [% of construction projects for FFY 09 (DBE construction firms ÷All construction firms) + % of consulting projects for FFY 09 (DBE consulting firms ÷All consulting firms)] × 100

Step One Base Figure = [.89 (304 ÷2139) + .11 (277 ÷505)] × 100

Step One Base Figure = [.89 (.1421) + .11 (.5485)] × 100

Step One Base Figure = [.1265 + .0603] × 100

Step One Base Figure = 18.68

PURPOSE

The Disadvantaged and Small Business Programs Unit, within the New Jersey Department of Transportation’s (NJDOT), Division of Civil Rights and Affirmative Action, has initiated its process of setting the Disadvantaged Business Enterprise (DBE) utilization goal for Federal Fiscal Year 2009 (FFY ’09).

The purpose of this website is to facilitate public participation by enabling interested stakeholders to observe and comment on NJDOT’s goal setting process.   Through this site, we will post our progress toward formulating the goal.   We encourage you to share your thoughts on our process.

Federal Fiscal Year 2009 DBE Goal Calculation

49 CFR 26.45 requires NJDOT to measure the actual relative availability of DBEs to perform the types of work that we intend to contract (both prime and sub).   In calculating that measurement, NJDOT must calculate a base figure, make adjustments (if necessary), and calculate the proportion of our goal that will be race/gender-neutral.  

Below is a preliminary outline of the methodology that NJDOT intends to follow:

 1. Calculating the Base Figure

“Ready willing and able DBEs” are DBEs in the NJ Unified Certification Program (NJUCP) database with North American Industry Classification System (NAICS) codes in work categories where NJDOT would normally contract.  If necessary, this number may be supplemented with other sources.

“All firms ready willing and able” will include all NJDOT pre-qualified and cost-basis approved firms; ready willing and able DBEs (as defined above); sub-consultants, and sub-contractors that have done business with NJDOT within the past three years; and truckers and suppliers.

 Weighting

The base figure will be weighted according to the projected expenditures for construction services and professional services for FFY ‘09. 

2. Adjustments

In accordance with 49 CFR 26.45, the factors described in that section will be considered in determining whether or not adjustments are necessary.  It is important to understand that while a recipient must consider making adjustments to the base figure for all of the factors listed in 49 CFR 26.45. These factors include:

• • Past participation (the volume of work DBEs have performed in recent years) or other measure of demonstrated capacity;
• • Evidence from disparity studies conducted in your market area (including relevant studies commissioned by other contracting agencies in your market area);
• • Statistical disparities in the ability of DBEs to get financing, bonding and insurance;
• • Data on employment, self-employment, education and training, union apprenticeship programs; and
• • Any other data that would help to better measure the percentage of work that DBEs would be likely to obtain in the absence of discrimination.

Recipients are not required to make adjustments.  If the evidence does not suggest such an adjustment is necessary, then no adjustment should be made. Moreover, if the evidence suggests that an adjustment is warranted, it is critically important to ensure that there is a rational relationship between the data relied upon to make the adjustment and the actual numerical adjustment made. (This paraphrases “Tips for Goal-Setting in the Disadvantaged Business Enterprise (DBE) Program”).

3. Calculating the Race/Gender-Neutral and Race/Gender-Conscious Split

In its publication, “Tips for Goal-Setting in the Disadvantaged Business Enterprise (DBE) Program”, the USDOT offers a variety of methods for calculating the race/gender-neutral and race/gender-conscious split.  These methods will be carefully considered when calculating the FFY ‘09 race/gender-neutral and race/gender-conscious split.

Helpful Link:
NJDOT Civil Rights/Affirmative Action web site