Other Areas of Interest

Business Engagement and Compliance Office (BECO)

BECO Overview

The Business Engagement and Compliance Office (BECO) is responsible for ensuring that the Arizona Department of Transportation (ADOT), its subrecipients, contractors and consultants achieve full compliance with all applicable federal regulations related to disadvantaged and small business inclusion, equal  employment opportunity (EEO)  in contracting and on-the-job training (OJT) for women and minorities in federally assisted contracts.

ADOT has established a Disadvantaged Business Enterprise (DBE) Program in accordance with the regulations of the 49 CFR Part 26 as a condition to receiving federal financial assistance from U.S. Department of Transportation (USDOT).  All ADOT Divisions, Sections/Group and Subrecipients that procure/advertise, utilize or administer contracts with federal aid funding are responsible for ensuring that DBE Program requirements are met in accordance with ADOT Policy SUP-3.05 DISADVANTAGED BUSINESS ENTERPRISE Policy.

DBE Goal Assessment

ADOT’s DBE program must be narrowly tailored by individual DBE goal assessments of all FHWA funded projects.  For ADOT projects the Project Manager (PM) is responsible to requests for a DBE goal assessment (not for subrecipient projects, unless administered by ADOT).   ADOT PMs should allow up to 10 days for a DBE goal to be assessed.  An email notification with the DBE goal for the projects will be sent to the requester.

To request a DBE goal assessment , ADOT PMs will access the DBE Contract Goal Setting Application via BECO’s webpage on ADOTNet.  To request access to the system submit a Help Desk Ticket along with a CARF Form.  The online Goal Request Application requires the requestor to provide general information about the project along with the scope of work.  It also requires the requestor to provide appropriate dollar amounts for all work categories for the project.  A detailed online training manual is available for this process.  The online request must be completed in its entirety and submitted in order for a goal to be assessed.   Once assessed, a DBE goal is valid for 120 days; therefore the submittal of a goal request should allow adequate time for the goal to be assessed prior to the project advertisement date, but not so early that the goal expires before the intended advertisement date.

DBE Contract Compliance

DBE contract compliance is done throughout the administration of the contract to ensure that DBE program requirements are met.  The basic DBE requirements of the project occur in the main phases of the contract, i.e., pre-advertisement, pre-award, post-award and pre-closeout.  The depth of the PM’s involvement depends on the project scope of work.

DBE Contract Compliance Requirements

Construction and Specifications Group - Construction Projects

• PM requests DBE goal assessment for FHWA funded project – Pre-advertisement

Construction and Design/Professional Services Projects for Procurement/Multi Planning Division (MPD)

PM requests DBE goal assessment for FHWA funded project – Pre-advertisement

• DBE Contract Specifications (EPRISE) included in advertisement and executed contract

SOQ Bidder/Proposer’s Assurance with SOQ – Pre-Award

• Bidders/Proposers List with SOQ – Pre-Award
• DBE Affidavits or Good Faith Effort (GFE) Documentation with Cost Proposal – Pre-Award

All contracts monitored in DBE System for prompt pay and payment reporting – Post-Award

Commercially Useful Function (CUF)

• DBE Termination/Substitution Request must be approved by BECO – Post-Award
• Certification of DBE Final Payments Form – Pre-Closeout

DBE Goal Evaluation/Completion Cover Letter – Closeout

Design/Professional Services Projects for ECS

PM requests DBE goal assessment for FHWA funded contract – Pre-advertisement

• DBE Contract Specifications (EPRISE) included in advertisement and executed contract
• SOQ Proposer’s Assurance with SOQ – Pre-Award

Proposers List with SOQ – Pre-Award

• *DBE Affidavits or GFE Documentation with Cost Proposal – Pre-Award
• Commercially Useful Function (CUF)
• DBE Termination/Substitution Request – Post-Award
• Certification of DBE Final Payments Form – Pre-Closeout
• DBE Goal Evaluation/Completion Cover Letter – Closeout

Sanctions for Payment Reporting, Prompt Pay, DBE Termination Substitution, and DBE Goal Non-Compliance

Contracts are monitored for compliance and sanctions are required to be considered when a contractor fails to be compliance with the DBE Contract Specifications.

Note: On-call contracts follow the DBE contract compliance requirements as identified above (*) for each task order

Construction Contracts Field Compliance

Once a construction project is awarded, BECO will monitor DBE compliance as it relates to contract requirements for meeting the DBE Goal.  BECO works with ADOT Field Offices and contractor’ staff to ensure the contract’s DBE requirements are met. Construction Field Office staff is responsible for monitoring contractor’s compliance with reporting payments in the DBE System. BECO also monitors projects to ensure contractors are promptly payment subcontractors, that DBEs are not terminated or substituted wrongfully and that DBEs are performing a Commercially Useful Function (CUF). BECO will conduct on-site reviews and interviews communicating with ADOT field office, prime contractor and DBE staff.  BECO implements, monitors and enforces the ADOT’s On the Job Training (OJT) Program by tracking trainees and hours completed.

CA Administered Contracts

FHWA funded projects only.

Federal Authorization – Construction

The following is a list of items that CA Agencies are required to have in the federal authorization package. 

• DBE Special Provision (EPRISE)
• EEO Compliance Reports
• Prompt Pay and Payment Reporting Provision      
• DBE goal Email notice for the project

Advertisement (Construction and Professional Services)

The CA Agency must send a copy of the “bid/solicitation ready” advertisement to the ADOT PM for FHWA authorization before advertising and notify the ADOT PM when advertised.   The Advertisement must contain the DBE goal percentage for construction or professional services projects.  PM must notify BECO if the agency is not in compliance.

Bid Analysis

The CA Agency must have a bid analysis process to justify the contract award and rejection of bids. The LPA/Subrecipient will evaluate the submittal and make a determination, with BECO concurrence. The CA Agency must notify the ADOT PM when the agency rejects the bid for any reason.  PM must notify BECO immediately if agency rejects bid.

DBE Goal Assurance

The CA Agency must provide to BECO and the ADOT PM written notice immediately following bid opening if the apparent low bidder indicates on the DBE Assurance Form that it cannot meet the DBE goal. 

Award

CA Agency must report contract awards to BECO by the 10th of the month following contract award.

Claims

The CA Agency must provide the ADOT PM written notice immediately of any contract claim or issue under dispute.  For any DBE related dispute, the CA Agency must notify BECO and the ADOT PM within 24 hours of recognizing an issue..

Termination of Contracts

Before terminating a federal-aid contract, the CA Agency must contact the ADOT PM to initiate consultation with and receive concurrence from FHWA.  If the issue is DBE related, the CA Agency must contact BECO and ADOT PM immediately.

Supplemental Agreements

The CA Agency must notify the ADOT PM of all supplemental agreements that affect the project schedule, scope, budget, and/or add or subtract work.  If the agreement impacts the committed DBE, the CA Agency must contact BECO and ADOT PM immediately. Reduction of DBE work and/or termination/substitution of committed DBEs must be monitored and requires the approval of BECO.

Sanctions for Payment Reporting, Prompt Pay, DBE Termination Substitution, and DBE Goal Non-Compliance

Failure to make prompt partial payment, or prompt final payment including any retention, within the time frames established above, will result in remedies, as the LPA/Subrecipient Procurement Office deems appropriate. CA Agencies are required to consider sanctions when a contractor/consultant fails to be in compliance with the DBE, payment reporting and prompt payment specifications and of the contract and inform BECO and ADOT PM of such instances.

Civil Rights Office (CRO)

Civil Rights Overview

The Civil Rights Office works to ensure the agency’s compliance with federal and state laws governing affirmative action, accessibility under the Americans with Disabilities Act of 1990 and Section 504 of the Rehabilitation Act of 1973, equal opportunity in employment, business participation, and services to the public.  The CRO is comprised of four programs:

• Affirmative Action (applicant and employee discrimination prevention)
• Americans with Disabilities Act (ADA) (non-discrimination on the basis of disability in State and Local Government)
• Title VI, Non-discrimination (external/customer focused non-discrimination and compliance program)
• Title VII, Internal Investigations (employee focused non-discrimination)

Programs

Title VI

Title VI of the Civil Rights Act of 1964 is the main legal authority for the Arizona Department of Transportation’s external nondiscrimination program as a recipient of federal-aid. In addition to Title VI, there are other nondiscrimination statutes that afford legal protection under ADOT’s external nondiscrimination program. These statutes include the following: Section 162 (a) of the Federal-Aid Highway Act of 1973 (23 USC 324) (sex), Age Discrimination Act of 1975 (age), and Section 504 of the Rehabilitation Act of 1973/Americans with Disabilities Act of 1990 (disability). Additional related statutes and presidential executive orders under the umbrella of Title VI address environmental justice (EJ) in minority and low-income populations and services to those individuals with limited English proficiency (LEP). These statutes and presidential executive orders apply to all of ADOT’s programs and activities, regardless of their funding source.

The ADOT Project Manager will ensure that the following notification is included in all solicitations for bids, Requests for Proposals for work, or material subject to the Acts and the Regulations made in connection with all Federal Aid Highway Program and, in adapted form, in all proposals for negotiated agreements regardless of funding source:

"The Arizona Department of Transportation, in accordance with the provisions of Title VI of the Civil Rights Act of 1964 (78 Stat. 252.42 U.S.C. §§ 2000d-4) and the Regulations, hereby notifies all bidders that it will affirmatively ensure that any contract entered into pursuant to this advertisement, disadvantaged business enterprises will be afforded full and fair opportunity to submit bids in response to this invitation and will not be discriminated against on the grounds of race, color, or national origin in consideration for an award.”

The ADOT Project Manager will ensure clauses of Appendix A and E of the Title VI Assurances are included in every contract or agreement subject to the Acts and the Regulations.

Equal Employment Opportunity

Equal Employment Opportunity laws prohibit specific types of job discrimination in certain workplaces. The Department of Labor has two agencies which deal with EEO monitoring and enforcement, the Civil Rights Center and the Office of Federal Contract Compliance Programs.

• Civil Rights Center, part of the Office of Assistant Secretary for Administration and Management, oversees EEO in programs and activities receiving federal financial assistance. CRC also assures equal opportunity for all applicants to and employees of DOL.
• The Office of Federal Contract Compliance Programs oversees employers holding federal contracts and subcontracts.

The Equal Employment Opportunity Commission is an independent federal agency that promotes equal opportunity in employment through administrative and judicial enforcement of the federal civil rights laws and through education and technical assistance. Applicants and employees of most private employers, state and local governments, educational institutions, employment agencies and labor organizations may be assisted by the EEOC.

American with Disabilities Act (ADA)

The Arizona Department of Transportation (ADOT) falls within the regulatory definition of Title II of the ADA for “public entity” and all regulatory requirements of Title II apply to ADOT (28 CFR 35.104). In addition to Title II, ADOT must comply with the regulatory requirements of Section 504 of the Rehabilitation Act. Section 504 applies to all programs, services, activities, and projects, whether or not Federal Financial Assistance is used for the specific program, service, benefit, activity or project.

Throughout the project delivery process, public entities must incorporate accessible requirement of Section 504 of the Rehabilitation Act and Title II of the ADA. The Resident Engineer’s oversight responsibility shall include project reviews and inspections to assure compliance with the regulations and established design practices. The Resident Engineer must work with their partners to ensure that accessibility features such as curb ramps, truncated domes, and barrier-free sidewalks/trails meet Department of Transportation ADA Standards for Transportation Facilities (ADAAG) and are incorporated into transportation projects. Features that do not meet ADAAG should be brought into compliance with Proposed Accessibility Guidelines for Pedestrian Facilities in the Public Right-of-Way (PROWAG), when feasible.  Existing features that meet ADAAG are not required to be upgraded to PROWAG. New ADA features should be designed to meet PROWAG.

Projects that involve alterations to existing roadways, existing pedestrian facilities within project limits must be reviewed to determine whether they meet ADA/504 regulations to warrant improvements throughout the original project activity, if alterations to an existing facility are taking place.

During construction pedestrian access must be maintained as appropriate to ensure adequate provisions are made within work zones for persons with disabilities with regards to accessibility in the public right-of-way.

Achieving elimination of all barriers requires time and an effective tracking process to monitor progress. The tracking and monitoring of ADA barriers is primarily contained in the Feature Inventory System (FIS) and is available for access by all ADOT employees. ADA updates and change request must be submitted to FIS and can be submitted in the field at the time of inspection.

The ADA Compliance and Feasibility Reports are completed for each project with the checklist for close out prior to the close of the project. The “Final Design” column of the ADA Compliance and Feasibility Report needs to be completed in the field by the contractor and the evaluation of ADA features must be done in the field after construction of ADA is completed and recorded in the “Constructed” column of the final ADA Compliance and Feasibility Report.  

ADA compliance must be ensured prior to the close of the project and is the responsibility of the Resident Engineer and the Project Manager. A copy of the completed ADA Compliance and Feasibility Reports must be sent to the Civil Rights Office and the Roadway Engineering Group.

Disadvantaged Business Enterprises (DBE)

ADOT has established a Disadvantaged Business Enterprise program in accordance with the regulations of the U.S. Department of Transportation (USDOT), 49 CFR Part 26. As a condition of receipt of funding, ADOT has signed an assurance that it will comply with 49 CFR Part 26. It is an ADOT policy to ensure that DBEs, as defined in Part 26, have an equal opportunity to receive and participate in USDOT-assisted contracts. It is also the policy of the department to ensure the following:

• Nondiscrimination in the award and administration of USDOT-assisted contracts.
• Create a level playing field on which DBEs can compete fairly for USDOT-assisted contracts.
• The DBE program is narrowly tailored in accordance with applicable law.
• Only firms that fully meet 49 CFR Part 26 eligibility standards are counted as DBEs.
• Help remove barriers to the participation of DBEs in USDOT-assisted contracts.
• Assist in the development of firms that can compete successfully in the marketplace outside the DBE program.

Complaint Investigations-Internal Investigations Program

The Internal Investigations Program is responsible for investigating ADOT employee complaints of discrimination under Title VII of the Civil Rights Act of 1964, as amended, and consistent with the ADOT’s Nondiscrimination policy PER 9.02.  Complaints include allegations of discrimination, retaliation, or harassment based upon race, color, national origin, religion, disability, pregnancy, age, sex, or retaliation for having participated in protected civil rights activity.

The Internal Investigations Program also administers ADOT Policy PER 2.01 Americans with Disabilities Policy.  ADOT is required to provide a reasonable accommodation for the known disability of an applicant or employee if requested unless the accommodation would either impose an undue hardship on the operation of ADOT or change the essential functions of the position.

ADOT is required to provide a reasonable accommodation for the known religious beliefs of employees and applicants if requested unless the accommodation would either impose an undue hardship on the operation of ADOT or change the essential functions of the position.  The Internal Investigations Program administers the religious accommodation process.

Financial Management Services (FMS)

Financial Management Services Roles and Responsibilities

Financial Management Services is comprised of six main sections; Chief Financial Officer (CFO), Resource Administration (RA), Financial Planning/Cash Management, Fiscal Operations, Revenue and Fuel Tax Administration and Budget. For purposes of the manual the two critical sections are Resource Administration and Fiscal Operations.

The CFO and RA are the first areas that interface in the project development manual as the CFO and FMS staff provides the funding levels that determine the size of the 5-Year Program. This information is provided to MPD and IDO to fiscally constrain the program. This goes towards the development of individual projects in the program and the size of the various subprograms used throughout the year.

Project Programming

Project Managers work with Project Accounting and Resource Administration to add specific projects into the system through Project Master. RA reviews all requests to ensure the project location, scope, termini and budget are correct. Once the Project Master is approved, RA staff adds these projects to an internal tracking database. This database is used to track pending project requests and to ensure the program is not overcommitted.

Authorization for Scoping and Development

Scoping and development projects funded from the Five-Year Program go through the Project Review Board (PRB) to get approved for scope, schedule and budget. Projects that are line items in the program are approved as PRB Only. New projects being funded from a subprogram are marked as PRB Approved and must go to the Priority Planning Advisory Committee (PPAC) and the State Transportation Board (STB) for final approval.

For projects going through the PRB process, Resource Administration prepares the Project Funding Request workbooks to authorize the project. Once approved and funded in the State’s financial system (AFIS) a copy of the package is provided to the Project manager.

For Federally Funded local scoping or Federally Funded or HURF Exchange funded local development projects, the PM must submit a Project Funding Request workbook identifying the request is for Scoping or Development. For scoping projects, the request should identify if the scoping is for a study or if the scoping is for preliminary engineering that will lead to a construction project. The workbook has a separate identifier for each and must be filled out correctly as it has an impact on Finance and FHWA expectations of project completion.

After authorization, the Project Manager is notified and work can begin. A copy of the completed authorization package is returned to the PM via email.

Authorization for Right of Way

Right of Way projects funded from the Five-Year Program go through the Project Review Board (PRB) to get approved for scope, schedule and budget. Projects that are line items in the program are approved as PRB Only. New projects being funded from a subprogram are marked as PRB Approved and must go to the Priority Planning Advisory Committee (PPAC) and the State Transportation Board (STB) for final approval. After PRB approval, the Project Manager must submit a copy of the approved environmental document and parcel map to Resource Administration.

For projects going through the PRB process, Resource Administration prepares the Project Funding Request workbooks to authorize the project. Once authorized and funded in the State’s financial system (AFIS) a copy of the package is provided to the Project manager.

For Federally Funded or HURF Exchange local right of way projects, the PM must submit a Project Funding Request workbook identifying the request is for Right of Way.

After authorization, the Project Manager is notified and right of way acquisition can begin. A copy of the completed authorization package is returned to the PM via email.

Authorization for Utility Relocation / Railroad Projects

Utility Relocation or Railroad projects funded from the Five-Year Program go through the Project Review Board (PRB) to get approved for scope, schedule and budget. Projects that are line items in the program are approved as PRB Only. New projects being funded from a subprogram are marked as PRB Approved and must go to the Priority Planning Advisory Committee (PPAC) and the State Transportation Board (STB) for final approval.

For projects going through the PRB process, Resource Administration prepares the Project Funding Request workbooks to authorize the project. Once authorized and funded in the State’s financial system (AFIS) a copy of the package is provided to the Project manager.

For Federally Funded or HURF Exchange local Utility Relocation or Railroad projects, the PM must submit a Project Funding Request workbook identifying the request is for Utility Relocation or Railroad.

After authorization, the Project Manager is notified and relocation or rail work can begin. A copy of the completed authorization package is returned to the PM via email.

Federal Authorization for Construction

Requests for construction authorization are provided to Resource Administration by either the Contracts and Specifications Section (C&S) or the Project Manager, for those projects being done through Procurement or for Certification Acceptance agency projects.

In each case the Project Funding Request workbook is completed and emailed to the Resource Administration mailbox. The email must contain the Workbook, Funding Checklist, Request for Authorization letter and a Project Map.

The package is reviewed and processed for authorization. For federally funded projects the request is submitted to FHWA for authorization. For non-federally funded projects, the authorization is processed by Resource Administration.

After authorization, the Project Manager is notified and the project can be advertised. A copy of the completed authorization package is returned to the PM via email, with a copy to C&S (if they are advertising the project).

After the project is advertised and awarded, a final recap of costs is submitted to Resource Administration for adjustment. For federal projects this requires submitting an updated Project Funding Request to FHWA and, once approved, updating the project budget in AFIS. For non-federal projects the budget is updated in AFIS once the recap is received.

Budget Adjustments

For projects already funded where a shift in budget is requested (between phases of the same project) a Project Funding Request workbook is completed by the PM and emailed to the RA Inbox.

Requests for adjustment on locally funded projects must include an approval from the local agency agreeing with the proposed change.

All transfers between phases must be accompanied by an email from the PM stating that this request will take the phase to completion. If the transfer is not sufficient to do that, the request must go to PRB.

Invoicing

Local administered projects are reimbursed by the Department. When an invoice is received by a PM, it is their responsibility to ensure work billed was completed and that the project is making substantial progress towards completion. The invoice is also reviewed to verify all costs are eligible for reimbursement. Once the review is complete, the PM signs the invoice and submits to the Contracts Payable mailbox, [email protected]. All payments must be made within 30 days of receipt of the invoice.

Inactive Projects

Inactive projects are those defined as having no expenditures within the last 180 days. This includes any open balances and any source of funding. Resource Administration also looks ahead for projects that will go inactive in the next 90 days.

Monthly, Resource Administration updates the list of current and potential inactive projects to the FMS website. Communication is sent to Division representatives notifying that the current month’s reports have been posted to the website. This includes projects with minimal activities, which do not appear to be making substantial progress towards completion.  In addition, RA sends out a weekly email to identified agency points of contact listing which projects have gone inactive in the past week. The intent is to allow the PM time to clear the project off the next month’s inactive list.

For both current and potential inactive projects, RA will send an email to the applicable ADOT division requesting the following information in writing:

• What is the current status of the project?
• Why is the project inactive?
• When is the next action or invoice expected? A specific date is required.             
• Does the excess federal funding need to be de-obligated? If not, what is the justification to keep the project funded?

The division must either submit (or cause to be submitted) an invoice or provide the information requested above within ten (10) business days of the request for information.

Funding for projects which cannot demonstrate validity may be de-obligated by FMS. Federally funded projects will also require consultation with FHWA prior to de-obligation. If a federal project is de-obligated, the reimbursements received may need to be repaid to FHWA.

Funding de-obligated from projects will be returned to the appropriate State or local funding source.

Final Voucher and Project Close Out

Once a project is complete it is ready to be final vouchered. This is the final financial review of the project by FMS.

Requests for close out on ADOT construction projects and ADOT administered local construction projects are handled by the Field Reports Section of the Construction Group. Field Reports submits a final close out package to Project Accounting consisting of; Final Vendor payment, Final Estimate and Final Acceptance Letter. Field Reports also copies Contracts Payable and the Project Manager so they are aware of the close out request.

For locally administered construction projects and ADOT administered non-construction projects, the ADOT PM is responsible for submitting the close out package to Project Accounting. Prior to submission, the PM should verify all open encumbrances have been liquidated. The request will also include a project close out letter, and if the project is a local project an acceptance letter from the local agency to ADOT.

Per the FMS Technical Bulletin 18-01, for all non-construction phases of a project, the PM should notify RA when a phase is complete and RA will release the excess funding and return it to the appropriate State, COG/MPO or local funding source.

PODI/POCI

FHWA has certain levels of risk-based project oversight associated with the program. These are Projects of Division Interest (PODI) and Projects of Corporate Interest (POCI). These have additional levels of oversight and responsibility associated with them. Please review the FHWA guidance on these items for more information.

Special Funding Sources

FHWA makes available certain funding sources that exist beyond the Department’s normal funding. Most are grant based programs for which the Department competes for and is awarded amounts for specific projects or work activities. These include Better Utilizing Investments to Leverage Development (BUIILD) and Infrastructure for Rebuilding America (INFRA) grants. These grants have very specific funding and reporting requirements. If a PM is managing one of these projects, they need to work closely with FMS to ensure obligation dates are met and all reports are filed timely.

General

Always make sure to review project budgets in PIRT/AFIS to ensure there is adequate funding to complete the funded phases of a project. As funding increases can take between a few days to two months, careful budget planning is critical to project success.

For all new ADOT projects (project begins with a ‘F’ prefix, the funding for the Indirect Cost Allocation Plan (ICAP) is included in the budget and not broken out separately. Available funds in PIRT/AFIS should be reduced by the amount of the current year ICAP rate to determine available project funding.