FFY 2009 DBE Goal Calculations

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

Formula for 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

Formula for 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

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