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Deputy Directive DP-22 - Context Sensitive Solutions

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Deputy Directive DP-22 - Context Sensitive Solutions

    Division of Local Assistance AADPL Calculation Including UDBEs

    Office of Procedures Development and Training March 25, 2009

    AADPL Calculations Including UDBEs

Definitions:

     DBE Disadvantaged Business Enterprise. A for-profit small business concern that is at least 51 percent owned and controlled by one or more socially and economically disadvantaged individuals. These individuals must be citizens of the United States (or lawfully admitted permanent residents) and be: (1) an individual whom a recipient finds to be a socially and economically disadvantaged individual on a case-by-case basis, or (2) either Black American, Hispanic American, Native American, Asian-Pacific American, Subcontinent Asian American, female, or any other group found to be socially and economically disadvantaged by the U.S. Small Business Administration. (See 49 CFR Part 26.)

     UDBE Underutilized DBE. DBE classes that have been determined in the 2007 Caltrans Disparity Study to have a statistically significant disparity in their utilization in previously awarded transportation contracts. Underutilized DBEs include: Black Americans, Native Americans, Asian Pacific Americans, and females. Non-UDBE The two DBE classes (Hispanic American and Subcontinent Asian American) that have been determined in the 2007 Caltrans Disparity Study to not have a statistically significant disparity in their

    utilization in previously awarded transportation contracts.

     AADPL Annual Anticipated DBE Participation Level. This is the overall Local Agency goal based on demonstrated evidence of the availability of DBEs relative to all businesses that are ready, willing and able to participate on Federally funded contracts.

     RC AADPL Race-Conscious portion of AADPL.

     RN AADPL Race-Neutral portion of AADPL.

     Market Area Counties in the agency’s geographic area where contractors have historically bid on similar

    contracts.

Introduction:

    Agencies shall use Exhibit 9B from the Local Assistance Procedures Manual (LAPM) to report the Annual Anticipated DBE Percentage Level (AADPL) and methodology to Caltrans. The Race-Conscious portion of the AADPL is the portion the agency believes it will not be able to meet using Race-Neutral means alone. In the

    absence of information relating to an agency’s ability to meet the Race-Neutral portion, the Race-Conscious

    portion should be the same as the entire AADPL, and the Race-Neutral portion should be zero. As always, individual contract goals should be adjusted throughout the year as the agency’s progress in attaining DBE

    participation is assessed.

    There are several ways to calculate an AADPL. A method other than what is shown below may be used, as approved by the District DBE Coordinator. One such alternate method is the use of a current bidders list.

    **Important Note: While the determination of an AADPL utilizes the same calculation as before (during the Race-Neutral mode), the Race-Conscious / Race-Neutral breakdown should always include consideration of not only the availability of UDBEs (Race-Conscious), but also the specific non-UDBEs and the likelihood that they will be used on these contracts. If the likelihood is high that these non-UDBEs would not be used on the contracts, they should be removed from consideration. This would result in a higher RC AADPL and a lower

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    Division of Local Assistance AADPL Calculation Including UDBEs

    Office of Procedures Development and Training March 25, 2009

    RN AADPL. Periodically throughout the contracting year, these methods and assumptions should be revisited to more accurately tailor future contract goals.

AADPL Calculation:

    First, determine the projects that the agency anticipates awarding in the upcoming federal fiscal year (FFY). List these projects, including both construction and consultant contracts. Next, determine the various work types and amounts of work that will be involved, using the work categories and codes that can be found on the California Unified Certification Program (CUCP) website, as explained below. For each Work Category, calculate the percentage (Weight) of the total contract work to be performed.

To determine the number of DBE firms (for the numerator in the calculation):

    1. For each NAICS Work Category, determine total number of DBEs in the agency’s Market Area that can

    perform that type of work. To do this, use the CUCP website, which can be accessed by going to

    http://www.dot.ca.gov/hq/bep/dbe_query.htm

    and clicking on the “Click here to Access the DBE Query Form” link.

    2. On the resulting page, go to the “County” box and highlight all the counties in the agency’s Market Area.

    The control key can be used to highlight more than one county at a time.

    3. Click on the appropriate 2-digit code in the “NAICS Categories” box. This will automatically bring up

    the more detailed 6-digit NAICS Work Category codes in a new box. Highlight the appropriate 6-digit code.

    Scroll down to “License Type” and highlight the appropriate license (e.g., Electrical Contractor). Finally,

    click the “Start Search” button at the bottom of the page. This will give the number of DBE firms available

    to do work in that NAICS Work Category, followed by a list of individual firms.

    4. To narrow it down to the agency’s Market Area, print out the list and cross off any firms that are not

    located within the Market Area counties. This will result in a list of DBE firms that are in the agency’s

    Market Area. The number of firms remaining on the list becomes the numerator for that Work Category.

    5. Repeat this process for each Work Category.

To determine the total number of firms (for the denominator in the calculation):

    1. For each NAICS Work Category, determine the total number of firms in the agency’s Market Area that

    are willing to perform that type of work. To do this, go to the following website:

    http://censtats.census.gov/cbpnaic/cbpnaic.shtml

    2. At the top of the page, select “California” and click on the “Go” button.

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    Division of Local Assistance AADPL Calculation Including UDBEs

    Office of Procedures Development and Training March 25, 2009

    3. On the next page, use the drop-down menu to select one of the counties in the agency’s Market Area, and

    click the “Select” button. The “Industry Codeslisted are the same as the NAICS codes. For each 2-digit

    category that is being used, click on the “Detail” button. This will bring up a list of all of the 6-digit Work

    Category codes contained within that category.

    4. For each 6-digit Work Category to be used, click the “Detail” button to get a county-by-county list of the

    total number of establishments. Add the numbers for each county in the Market Area to get the total

    number of firms for this type of work, which becomes the denominator for that Work Category.

    5. Repeat this process for each Work Category.

    After completing the above tasks, make a table showing the following information for each NAICS Work Category:

    A. Number of DBE Firms (numerator)

    B. Number of Total Firms (denominator)

    C. Percentage of total contract funding in the NAICS Work Category (Weight).

Use this information as shown in the example that follows.

AADPL Calculation Example:

    An agency has $200,000 in Total Project Funding (both Federal and local/state $), broken down into the following Work Categories:

    Contract #1 Main Street Re-paving: ($100,000 contract)

     (NAICS Code) 237310 - Highway and Street Construction = $80,000 = 40% Funding

     238210 - Electrical Work = $20,000 = 10% Funding thContract #2 4 Street Design: ($100,000 contract)

     541330 - Civil Engineering Services = $100,000 = 50% Funding

    In order to determine the AADPL base figure, first compute the AADPL formula for each Work Category:

    (No.ofDBEsinaWorkCategory AADPL (per Work Category) = Weight100No.ofAllFirmsinsameWorkCategory

    Each Work Category AADPL is then multiplied by its percentage (Weight) of the total work to be performed. The resulting numbers are then added up to obtain the overall AADPL Base Figure:

     AADPL (Base Figure) =

    (#ofDBEsin237310#ofDBEsin238210#ofDBEsin5413300.4;0.1;0.5100 #ofallfirmsin237310#ofallfirmsin238210#ofallfirmsin541330

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    Division of Local Assistance AADPL Calculation Including UDBEs

    Office of Procedures Development and Training March 25, 2009

Race-Conscious Portion of AADPL (Using UDBE’s):

To obtain the RC AADPL, use the same method shown above, except substitute UDBEs for DBEs in the

    formula.

    To get the number of UDBE firms (UDBE firms = male-owned UDBE firms + all female-owned firms), eliminate all firms on the DBE lists from the CUCP database that are not designated as either female-owned or

    male-owned with the UDBE-designated ethnicities (see definitions above).

    As before, make a table showing the number of UDBE firms, number of total firms, and Work Category Weights. Insert these as appropriate in the formula below:

    (No.ofUDBEsinaWorkCategoryRC AADPL = Weight100No.ofAllFirmsinsameWorkCategory

Race-Neutral Portion of AADPL:

    The Race-Neutral portion of the AADPL is the overall AADPL minus the Race-Conscious portion.

    RN AADPL = AADPL RC AADPL

Entering Information onto Exhibit 9-B:

    After adjusting the AADPL and RC/RN breakdowns determined above for other factors as needed (see **Important Note on Page 1), enter the adjusted AADPL figure, as well as the adjusted Race-Conscious and Race-Neutral AADPLs, onto Exhibit 9-B.

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