Current Practices to Set and Monitor DBE Goals on Design-Build Projects and Other Alternative Project Delivery Methods (2015) / Chapter Skim
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CONTENTS 1 SUMMARY 5 CHAPTER ONE INTRODUCTION Types of Alternative Delivery Method Projects, 5 Federal Regulations, 6 Study Approach, 8 Limitations, 9 Overview of the Report, 9 Chapter Summary, 9 10 CHAPTER TWO USE OF ALTERNATIVE DELIVERY METHODS BY STATE DEPARTMENTS OF TRANSPORTATION Design-Build, 10 Public-Private Partnerships, 10 Construction Manager at Risk and Construction Manager/General Contractor, 11 Chapter Summary, 11 12 CHAPTER THREE APPLICATION OF TRADITIONAL DISADVANTAGED BUSINESS ENTERPRISE CONTRACT GOALS TO ALTERNATIVE DELIVERY METHOD PROJECTS Examples of States Applying Traditional Methods, 12 Applying Disadvantaged Business Enterprise Contract Goals Using Traditional Methods, 14 Chapter Summary, 20 21 CHAPTER FOUR NEW APPROACHES FOR APPLYING DISADVANTAGED BUSINESS ENTERPRISE CONTRACT GOALS Barriers That Emerged with Application of Traditional Approach to Design-Build, 21 Summary of New Approaches, by Stage, 22 Chapter Summary, 33 35 CHAPTER FIVE APPROACHES TO APPLYING DISADVANTAGED BUSINESS ENTERPRISE GOALS TO CONSTRUCTION MANAGER AT RISK AND CONSTRUCTION MANAGER/GENERAL CONTRACTOR METHODS State Departments of Transportation That Use Traditional Application of Disadvantaged Business Enterprise Contract Goals, 35 State Departments of Transportation That Use New Approaches to Disadvantaged Business Enterprise Contract Goals, 36 Other States, 39 Feedback from the Contracting Industry, 39 Feedback from FHWA Staff, 39 Chapter Summary, 39 40 CHAPTER SIX CONCLUSIONS Summary of Results, 40 Barriers to Widespread Implementation of New Methods, 40 Suggestions for Further Research, 40 42 GLOSSARY OF TERMS AND ACRONYMS 44 REFERENCES 46 BIBLIOGRAPHY 50 APPENDIX A STRUCTURED TELEPHONE INTERVIEW GUIDE FOR STATE DEPARTMENTS OF TRANSPORTATION
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SUMMARY CURRENT PRACTICES TO SET AND MONITOR DBE GOALS ON DESIGN-BUILD PROJECTS AND OTHER ALTERNATIVE PROJECT DELIVERY METHODS Use of traditional methods for disadvantaged business enterprise (DBE) contracting goals on design-build projects is challenging for state transportation departments and designbuild teams.
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2 they use for design-bid-build projects. At the time of this report, two state DOTs (Colorado and Connecticut)
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3 • Until 2014, Virginia DOT (VDOT) applied its traditional design-bid-build approach to DBE contract goals, including a requirement that proposers identify commitments to DBEs with their proposals.
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4 has made good faith efforts to meet a DBE contract goal shall be an acceptable way to comply with the goal set for a project. If a state DOT determines that a design-builder has not met the good faith efforts requirement, the firm can ask for reconsideration of that decision.
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5 at risk (CMAR) and construction manager/general contractor (CMGC)
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6 tion, the owner and the construction manager negotiate a guaranteed maximum price for the construction of the project based on the defined scope and schedule. If this price is acceptable to both parties, they execute a contract for construction services, and the construction manager becomes the general contractor.
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7 • As necessary, individual DBE contract goals for all or a subset of contracts funded in whole or part from that operating agency (e.g., FHWA-funded contracts)
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8 • To foster small business participation on multi-year design-build contracts or other large contracts (e.g., for megaprojects) as part of this program element, recipients may include the strategy that bidders on the prime contract are required to specify elements of the contract or specific subcontracts that are of a size that small businesses, including DBEs, can reasonably perform.
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9 Four U.S.DOT staff, five contractors and consultants, two DBE representatives, and two trade organization representatives were also interviewed. LIMITATIONS Many of the methods for applying DBE contract goals on alternative delivery method projects identified in this study were developed very recently, so more will be known about their success once the projects awarded under the new methods are complete.
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