Rhode Island Department of Transportation DBE Compliance Review Final Report March 2016 Federal Transit Administration U.S. Department of Transportation Federal Transit Administration DBE Compliance Review, RIDOT March 2016 This page has been intentionally left blank to facilitate duplex printing DBE Compliance Review, RIDOT March 2016 Table of Contents Executive Summary ...................................................................................................................................... 1 Objective and Methodology .................................................................................................................. 1 1 General Information ................................................................................................................................. 2 2 Jurisdiction and Authorities ..................................................................................................................... 4 3 Purpose and Objectives ............................................................................................................................ 6 3.1 Purpose ............................................................................................................................................ 6 3.2 Objectives ........................................................................................................................................ 6 4 Introduction to the RIDOT ....................................................................................................................... 8 4.1 Introduction to RIDOT Services and Organizational Structure ....................................................... 8 Organizational Structure ....................................................................................................................... 8 4.2 Budget and FTA-Assisted Projects ................................................................................................ 10 4.3 DBE Program ................................................................................................................................ 10 5 Scope and Methodology ......................................................................................................................... 12 5.1 Scope ............................................................................................................................................. 12 5.2 Methodology .................................................................................................................................. 13 5.3 Stakeholder Interviews .................................................................................................................. 14 6 Findings and Advisory Comments ......................................................................................................... 16 6.1 DBE Program Plan ........................................................................................................................ 16 6.2 DBE Policy Statement ................................................................................................................... 17 6.3 DBE Liaison Officer ...................................................................................................................... 17 6.4 DBE Financial Institutions ............................................................................................................ 18 6.5 DBE Directory ............................................................................................................................... 19 6.6 Overconcentration.......................................................................................................................... 20 6.7 Business Development Programs .................................................................................................. 20 6.8 Determining/Meeting Goals .......................................................................................................... 21 A) Calculation.................................................................................................................................. 21 B) Public Participation ..................................................................................................................... 21 C) Race-Neutral DBE Participation ................................................................................................. 23 D) Race-Conscious DBE Participation ............................................................................................ 25 E) Good Faith Efforts ...................................................................................................................... 26 F) Protecting Against Termination for Convenience ....................................................................... 27 G) Counting DBE Participation ....................................................................................................... 28 H) Quotas ......................................................................................................................................... 29 DBE Compliance Review, RIDOT March 2016 6.9 Shortfall Analysis and Corrective Action Plan .............................................................................. 29 6.10 Transit Vehicle Manufacturers (TVMs) ...................................................................................... 30 6.11 Required Contract Provisions ...................................................................................................... 30 A) Contract Assurance ..................................................................................................................... 30 B) Prompt Payment ......................................................................................................................... 31 C) Legal Remedies .......................................................................................................................... 32 6.12 Certification Standards ................................................................................................................ 34 6.13 Certification Procedures .............................................................................................................. 36 A) Onsite Visits and Document Review ............................................................................................. 36 B) Annual Affidavit ............................................................................................................................ 37 C) Interstate Certification.................................................................................................................... 37 D) Certification Appeals ..................................................................................................................... 38 6.14 Record Keeping and Enforcements ............................................................................................. 38 7 Summary Table of Compliance Review Findings ................................................................................. 41 Attachments A FTA Notification Letter to Rhode Island Department of Transportation (RIDOT) B RIDOT DBE Program Plan C DBE Supportive Services Scope of Work D RIDOT DBE Special Provisions E RIDOT Responses to Draft DBE Compliance Review, RIDOT March 2016 Executive Summary Objective and Methodology This report details the findings of FTA’s compliance review of the Rhode Island Department of Transportation’s (RIDOT’s) Disadvantaged Business Enterprise (DBE) program implementation. It examines RIDOT’s DBE program procedures, management structure, actions, and documentation. On behalf of FTA’s Office of Civil Rights, the Collaborative, Inc. of Boston, Massachusetts conducted the review in three stages: 1. Preparation: compilation of information covering policies, procedures and reported data. 2. Site visit: observation of RIDOT’s DBE program files, contracts, and interviews 3. Analysis and reporting: identification of deficiencies requiring corrective actions and suggestions of effective practices in DBE programs RIDOT’s DBE program includes the following positive program elements: Positive Program Elements • RIDOT’s DBE Program Plan contains all of the required elements. • Rhode Island’s Uniform Certification Program (UCP) is well organized and properly administered. Administrative Deficiencies • The DBE Program Plan contains out-of-date information and does not reflect recent changes within the agency. • The proposed organization chart does not demonstrate clear lines of communication and authority between the DBE Liaison Officer (LO) and the RIDOT Director • Group definitions within the UCP for socially and economically disadvantaged individuals is incorrect • RIDOT does not apply DBE goals to its FTA-funded commuter rail operations • Reporting to FTA’s TrAMS (formerly TEAM) is incomplete and often late. RIDOT must address the following substantive deficiencies to comply with 49 CFR Part 26: Substantive Deficiencies • RIDOT does not have sufficient mechanisms in place to consistently track payments to DBE firms for some of its FTA-funded projects. • RIDOT does not monitor the MBTA, its subrecipient for commuter rail operations in Rhode Island. • RIDOT does not always follow its own procedures requiring written notification of pending DBE subcontractor terminations. • RIDOT does not have proper methods to ensure compliance or to apply necessary remedies. This report highlights several steps to help RIDOT implement its DBE program