2019On-the-Job Training (OJT) Program

Construction Kick-Off Webinar

Tonya Doyle-Bicy | Business & Workforce Diversity ManagerPaHoua Schroeder | Workforce Diversity Analyst/OJT Program CoordinatorJourdyn Thompson | OJT Program Technician

www.michigan.gov/OJT April 11, 2019

OJT Program Overview

• 23 Code of Federal Regulations (CFR) Part 230 Subpart A

• Contractor base OJT Program

• Administered by MDOT’s Office of Business Development (OBD)

Program Objectives

• Train and retain

• Employ women, minorities, and disadvantaged individuals

• Increase the effectiveness of training programs

• Assist with addressing Equal Employment Opportunity (EEO) goals

• Partner with industry and community-based organizations

• Assist with recruitment efforts

CalculationsAssignments are determined based on the firm’s previous three-year (fiscal) federal aid gross receipts.

a. The dollar values of the Contractor’s prime MDOT federal-aid contracts (minus the dollar amounts of their subcontracts on same)

and

b. The dollar values of the Contractor’s subcontracts (for work performed by Contractor as a subcontractor on MDOT federal-aid projects)

EligibilityMinority, woman, or disadvantaged individual

• 800 hours or less prior experience

• Does not have a construction related college degree– Not currently registered for classes

– Not on break from school

• Not a second degree relative of owner or officer

Recruitment• Resource directory available www.michigan.gov/OJT

• OBD can provide list of contacts

2019 Contractor AssignmentsTotals: 200 Assignments, 54 Contractors

Contractor Allocation Letters issued December 2018

• Contractor Yearly Training Plan (MDOT Form 0181) dueApril 30, 2019– Form Updated 02/2018

• Submit Request for OJT Trainee Approval (MDOT Form0190) for new trainees

OJT Program related materials can be found online www.michigan.gov/OJT

Contractor’s Responsibility• Timely and accurate form submissions

– Submit Trainee Monthly Reports for all months

– Includes trainees on layoff and/or leave

• Fulfill OJT assignments

• Start trainees as soon as possible

• Work trainees with crews throughout season

• Ensure trainee is completing required training

• Notify OBD of changes

OJT FormsContractor Yearly Training Plan (MDOT Form 0181)

• Lists trainees and fulfillment of assignments

• Submit annually by April 30th

• Identifies participation in VIP Pilot

Request for On-the-Job Trainee Approval (MDOT Form 0190)

• Required for all new trainees

• Required for change in training program

Trainee Monthly Report (MDOT Form 0125)

• Due the 20th of following month – Example: January report due February 20th

• Attach Certified Payrolls and/or Detailed Payrolls– Trainee Monthly Report hours and payroll report hours should

match with the exception of classroom hours.

• Submit Trainee Monthly Report for all months– Includes trainees on layoff and/or leave

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Contractor Allocation Waiver Request (MDOT Form 0343)

• Submitted by Contractor’s EEO Officer

• Subjects firm to EEO Review and/or extension of VCAP

• Remain compliant with OJT Program

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Trainee Reimbursement Request (MDOT Form 4104)– Work boots, and other work related items not supplied by contractor

– CDL Training

OJT Event Reimbursement (MDOT Form 0347)

Trainee Warehouse Order Form (MDOT Form 0344)

Dependent Child Care Reimbursement (MDOT Form

2078)

Reimbursement forms available online

http://mdotjboss.state.mi.us/webforms

MDOT reserves the right to cancel reimbursement programs at any time. Reimbursement programs are subject to change. Individual trainee reimbursement limits may apply. Select funds are available for OJT reimbursements each fiscal year. Reimbursement requests are accepted as long as reimbursement funds are available.Payments are subject to offset by the State of Michigan if there is a liability obligation with the state. Reimbursements may be considered taxable income.

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Where to submit forms

Mail: Michigan Department of TransportationOffice of Business DevelopmentPO Box 30050Lansing, Michigan 48909

Email: MDOT-OJT@michigan.gov

Fax: (517) 335-0945

OBD & OJT Coordinator Role• Ensure Contractor has fulfilled OJT assignments

• Trainee Approvals or Denials

• Monitor trainee’s progress– Trainee Monthly Reports and payrolls

– Graduate trainees

– OJT Summits

– OJT Graduation

– Trainee Interviews (in person or phone)

• Other supportive services

Non-ComplianceContractor fails to:

• Fulfill OJT assignments in timely manner

• Provide appropriate training to trainee

• Submit required forms in timely manner

Failure to comply could impact the Contractor’s pre-qualification rating.

Any Contractor found in non-compliance is subject to an EEO review by OBD.

Voluntary Incentive Program

VIP Pilot Summary

• Extension of OJT Program

• Voluntary, contractors may opt out

• Offers bid incentive for use on Pilot projects

• Selected Pilot Projects in the Metro, University, and Southern Bay regions

Performance Year (PY)

• PY 18: January 2018 – December 2018

• PY 19: January 2019 – December 2019

Incentive Year (IY)

• IY 19-20: March 2019 – February 2020

• IY 20-21: March 2020 – February 2021

Incentive earned PY 18 can be used IY 19-20 and will be administered in the same manner in subsequent years.

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Contractor EligibilityRequirements

Identified on page 3 of the VIP Pilot Manual

• Prequalified

• Compliant with OJT Program

• EEO contractor

• Have OJT assignment(s)

Bid IncentiveIn each performance year

1. OJT trainee(s) worked 1,000 hours or more per training assignment

A contractor may:

– Use additional hours accumulated by assigned OJTs

– Fulfill the assignment by a new hire, or

– Place a voluntary OJT into the assignment

2. Cumulative training hours calculated

3. Bid Incentive value identified– See chart on page 6 of VIP Pilot Manual

Example 1

EFG Contracting has three OJT assignments.

Required training hours = 3 x 1,000 hours = 3,000 hours

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Example 2

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Example 4B

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Cumulative incentives allowed:

VIP Subcontractors– Performing 25% or more of contract

– Submitted with Prime’s electronic bid

– Meet Program requirements

VIP Prime Contractor Joint Ventures– Meet Program requirements

– Meet MDOT joint venture requirements

See page 6 of the VIP Pilot Manual

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Bid incentives will be determined by OBD

• Written notification to contractor

• List of contractors and bid incentive posted on OJT website

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If a contractor disagrees with the bid incentive awarded:

• Submit written request for review within seven calendar days

• Include supporting documentation

• Request and documentation must be complete

Incentive Review

Bid Incentive Use

• Solely to determine lowest responsive bidder

• Contractor will be compensated according to bid price– other terms of contract apply

• Incentive for each contract not to exceed $500,000

• MDOT’s Contract Services Division (CSD) will determine low bidder on VIP Pilot Projects

• VIP Pilot Subcontractors must be submitted with the Prime’s electronic bid

• 1st project scheduled for December 2019 lettingBid

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OJT VIP Project Bids FolderB

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Example of As-Checked SheetB

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Contractor Responsibility

• Compliance

• Contractor Responsibility per OJT Program Manual– Use OJT Forms

– Pilot Exception: December Trainee Monthly Reports

• Trainees exceeding assigned slot(s) are voluntary

Trainees

• Must be approved by OBD

• Eligibility per OJT Program Manual

• Eligible for reimbursements

VIP Trainees

• Trainee(s) the contractor hires above their required OJT assignment(s)

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Penalties

Incentive rescinded or penalty assessed:

• Noncompliance during incentive year

• Debarred by FHWA

• Fraudulent

• Failure to execute contract per program requirements

Where to submit forms

Mail: Michigan Department of TransportationOffice of Business DevelopmentPO Box 30050Lansing, Michigan 48909

Email: MDOT-OJT@michigan.gov

Fax: (517) 335-0945

Contact UsFor questions regarding: CONTACT

• OJT Program• VIP Pilot• Bid Incentive Award• Incentive Reviews• VIP Pilot Penalties

MDOTOffice of Business

Development517-373-2377

• Applying Bid Incentive• VIP Pilot Project

Lettings

MDOTContract Services

Division517-373-4680