Alaskan Way Viaduct Seawall Washington state Replamcemeltt Program Office VI Department of Transportation 999 3 Avenues 9949 2424 Seattle, WA 98104 Paula Hammond 206-805-2987/' fax 206-805-2899 Secretary Of TTY: -1_800_833_5388 December 7, 2012 Seattle Tunnel Partners 999 Third Avenue, Suite 2424 Seattle, WA 98104 Chris Dixon Subject: SR 99 Bored Tunnel Alternative Design--8uild Project Contract No. 007999 Federa|~Aid DBE Participation WSDOT Ref: Dear Mr. Dixon, As weapproach the end of our second year of the SR 99 Tunnel Project, we need to evaluate the progress Seattle Tunnel Partners (STP) has made toward meeting or exceeding the 8% DBE goal specified in the contract. As of October 31, 2012, the design effort is approximately 98% complete and the construction effort is approximately 30% complete. Also as of October 31, 2012, the combined value of contracts awarded to DBE firms (subcontractors and suppliers at all tiers) is $25,321,205, or about 28% of the $91.2 million DBE Goal. While this number is encouraging, STP's DBE Progress Report for the same period only claims DBE commitments of $9,629,288 and actual participation ofjust $3,916,072, orjust 4% of the DBE goal. The limited value of actual DBE participation to date is a cause for concern. WSDOT feels that it is imperative that STP and WSDOT work together to identify issues that are preventing us from claiming DBE participation and clear any barriers that we can. In addition, we feel it is an opportune time to focus on STP's good faith efforts toward DBE Participation so that we ca n" maximize DBE utilization on the Project. To that end, we request the following: 0 A report listing all of the DBE's currently under contract on the project. For each DBE include the Commitment the current Contract Amount including change orders) and the anticipated DBE Value of the Commitment. Where the Commitment value and the DBE Value of the Commitment differ, please provide an explanation. Many of these differences will be in regulation, such as DBE is a Regular Dealer and 60% of supplies are applicable toward the DBE Goal. WSDOT will focus on those differences that require resolution through review, approval, or other actions by WSDOT or other agencies to assist STP in achieving the maximum eligible participation for those firms. A detailed plan that shows how STP intends to meet the 8% DBE Participation goal on the project including the specific nature and volume of the Work. The plan should contain information on how specific DBE firms fit specific work categories. We also recommend that the DBE firms listed be vetted in advance to assure they possess the correct NAICS certifications for the intended work. A reporting structure that summarizes the results of procurements including DBE proposals. It should include: i a. Description of work b. Low bidder price (if not a DBE) c. Listing of DBEs who submitted bids including their bid price(s] d. Reason and details for not hiring DBE firms to perform the work (if this is the case) Clarification in STP's Procurement Procedures, Warkflows, and References manual about how STP will give consideration to DBE proposals that are not the low bid but are within a competitive range (Per 49 CFR 26 Appendix A, subparagraph IV, D2). A summary of modifications STP has made in their subcontract documents and procurement processes based on lessons learned. A response to WSDOT's letter to STP dated Jan. 3, 2012 including submittal of an updated DBE Participation Schedule. Execution of the "Evaluation and improvements towards Eight Percent DBE Parti'ci'patr'on" process included in the DBE Participation Schedule dated May 20, 2011 (page 7, lines 21 through 44) and submittal of corresponding work products and documentation. A summary of outreach and contracting efforts completed to date. A summary of the challenges STP has faced in trying to meet the DBE goal. We would be pleased to discuss these items with you further. If you are interested, please coordinate with Brian Nielsen and me to schedule a meeting. Sincerely, -. . - -- wk Linea Laird Program AdministratoI'/ SR 99 Tunnel Project cc: File, Alaskan Way Viaduct Replacement Program Randy Everett, Federal Highway Administration Page 2