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Disadvantaged Business Enterprise Program

The Central Arkansas Transit Authority has established a Disadvantaged Business Enterprise Program (DBE Program) in accordance with regulations of the U.S. Department of Transportation (DOT), 49 CFR Part 26.

The Central Arkansas Transit Authority proposes that 2 percent of all eligible DOT funds that the Authority will expend in DOT-assisted contracts for FY2008 will let to qualified DBE firms.

The goal is submitted to the Federal Transit Administration on a yearly basis, and is available for public inspection during normal business hours, from 8:00 a.m. to 5:00 p.m., Monday through Friday, at the Central Arkansas Transit Authority offices at 901 Maple Street, North Little Rock, Arkansas 72114. The Authority accepts comments on the goal for 45 days from the date the goal is published. The Authority's goal could be adjusted by the information received during the 45 days after the setting of the goal during which public comment is accepted. The goal is published annually.

Comments should be addressed to:
Central Arkansas Transit Authority
Attn: Sharon Williams, DBE Liason Officer
901 Maple Street
North Little Rock, AR 72114
If you have questions about doing business with CAT, please call CAT's Procurement & Contracts Officer at 375-6717 or e-mail Sharon at swilliams@cat.org.


CENTRAL ARKANSAS TRANSIT AUTHORITY
2008 DBE GOAL SETTING METHODOLOGY


The Central Arkansas Transit Authority has researched the number and types of ready, willing and able DBE firms in the market area as listed in the Arkansas Small and Business Directory and the Arkansas Highway and Transportation Department DBE Directory. There are 982 ready, willing and able firms in the market area and there are a total of 63,132 firms of all nonfarm types in the State of Arkansas.

Base Goal Setting

The numerator portion of the base calculation represents the total number of DBE firms eligible to participate in any procurement activity offered by the Authority. The denominator represents the total number of firms in the State of Arkansas. (982 DBEs divided by 63,132 total nonfarm firms = 1.6%)

This basic goal does not rely on past DBE participation or DBEs which have won contracts in the past. Rather, this figure attempts to identify the total number of DBEs as a percentage of the total number of firms in order to identify a realistic view of potential DBE participation. The CATA Board of Directors has raised the 2008 goal to 2.0% to reflect their desire to continue to make opportunities available to disadvantaged business enterprises.

Relevant Data Sources
Data sources used included U.S Census data, state economic development records, Arkansas Highway and Transportation DBE Certified Directory, the Small and Minority Business Directory, Women’s Business Enterprises Directory, bidder’s and vendor’s lists, and other relevant materials.

Local Market
The Central Arkansas Transit Authority has established the State of Arkansas as its local market area in order to provide the widest opportunity to increase DBE participation.

Race Neutral and Race Conscious Measures
The Central Arkansas Transit Authority’s DBE goal is a race neutral measure.

Initiatives, including attendance at area minority business promotions and conferences, outreach in new and innovative ways, will be developed and implemented during 2008 to provide information to the DBE community that should help make potential bidders more aware and more competitive in the future.

Public Participation and Outreach
A Legal Ad will run in the statewide newspaper, the Arkansas Democrat Gazette soliciting public comment and input on the proposed goal. In addition, the goal and the complete methodology will be posted on the Central Arkansas Transit Authority website (www.cat.org) All comments will be summarized, reviewed and action taken where appropriate. All comments and resulting action taken will be included in the final goal methodology.

Renewed efforts will be undertaken in 2008 to provide awareness of procurement opportunities available to DBEs in the market area. It is anticipated that awareness sessions will include information on FTA Third Party requirements, insurance requirements and identification of resources helpful to potential DBE contractors.

DBE GOAL CALCULATION


The attached worksheet Table I, reflects all planned capital expenditures for 2008 capital grant. Table II reflects only those capital funds which can be calculated as part of the funds expended to meet the DBE goal.

The following costs are NOT included in the DBE calculation because these are costs that are not operational and therefore not allowed to be counted toward the DBE goal, although this is where much of our DBE participation occurs:
  • Total overhead costs, (labor, fringe benefits, security service, moving expenses, rags, soap, total utilities, total insurance, postage and shipping, bank charges, marketing and promotion, dues and subscriptions, travel and meetings, other miscellaneous expenses and leases/rentals).
  • Professional Services (Building and Grounds, Professional and Technical, Temporary Help, Custodial Service, Security Service, Computer Expense, Marketing and Promotion and Dues and Subscriptions).
  • Legal services and Drug Testing. Materials (Gasoline, Diesel Fuel, Oil, Shop Supplies, Other Clerical Supplies)
  • Diesel fuel (There are no DBE vendors able to bid on fuel purchase due to tax on dye and pending ultra low sulfur diesel requirements).
  • Parts that are available only from one vendor (or OEM vendors)
TABLES
Table 1, reflects total FTA capital funds, excluding funds for transit vehicles and funds not previously obligated, that provide contracting opportunities in 2006 in the areas of Construction, Professional, Materials/Supplies/Equipment and Other.

Table 2, reflects projected DBE participation for 2008. The figure used for Construction on Table 2 includes the sole construction contract anticipated to be let in 2007 with work to be performed in FY 2007 and 2008.

CONTRACTING OPPORTUNITIES FOR 2008
WORKSHEET

Table I - FTA Funds by Category
Opportunities by Contract Type Total FTA Funds Capital Total FTA Funds for Contract Opportunities
Construction 400,000* 400,000*
Materials/Equip 369,292 369,292
Bus/Van Purchase 1,131,379 1,131,379**
Preventive Maint. 1,300,000 0
Paratransit 331,000 0
Planning 347,450 0
Other 100,000 100,000
Total 3,979,121 2,000,671
*Construction contract will be awarded to a prime contractor. A DBE goal of 10% will be included in prime’s contract with CATA. DBE subcontractor opportunities shown in Table II.
**DBE opportunities are limited for bus and van purchase. Van purchases are from state contract and there are no DBE bus manufacturing companies.

Table II - Projected DBE Participation for FY-2008
GOAL:                             2%

Projected Contract Opportunities FTA Funds with Contracting Opportunities Projected Total FTA Dollars DBE Projected Percent DBE
Construction 400,000* 40,000 10%
Materials/Equip 369,292 4,310 1.6%
Other 100,000 1,600 1.6%
Total 869,292 45,910 5.2%