1. U.S. DOT’s Disadvantaged Business Enterprise (DBE) Program: Requirements and Reminders FTA Opening “DOORS” Program Kansas City, MO June 19, 2012 1

2. Basic Terms 2 DBE –Small business (as defined by SBA) owned and controlled by a socially and economically disadvantaged individual UCP –State-level entity responsible for certifying eligible firms as DBEs

3. Basic Terms (Cont’d) Race conscious –A measure or program that is focused specifically on assisting only DBEs Includes DBEs owned by women Contract goals Race Neutral –A measure or program that is, or can be, used to assist all small businesses 3

4. DBE Program: 4 Key Elements 4

5. DBE Program Document Who must have a DBE program? FTA recipients receiving planning, capital, or operating assistance who will award prime contracts exceeding $250,000 in FTA funds in a Federal fiscal year −49 C.F.R. Part 26.21(a)(2) 5

6. Key Elements of a DBE Program Document Policy Statement Standard Contract Assurances DBE Liaison Officer Prompt Payment/Retainage Provision(s) Good Faith Efforts Criteria Monitoring Mechanisms Small Business Provision Goal Setting Methodology 6

7. Policy Statement General statement, signed by your organization’s CEO/highest officer, confirming commitment to the DBE program Use the language from your financial assistance agreement! –Also appears in 49 C.F.R. Part 26.13(a) 7

8. Contract Assurance Non-discrimination clause Must be in every contract you sign with a prime contractor, and every contract your prime contractors sign with subcontractors Use exact language from 49 C.F.R. Part 26.13(b) 8

9. DBE Liaison Officer (DBELO) Individual within your organization primarily responsible for properly implementing the DBE program Must have: –Direct, independent access to CEO –Adequate staff and resources to administer the program in compliance with the DBE rule 9

10. Prompt Payment/Retainage Must have clause in prime contracts requiring the prime to pay subcontractors for satisfactorily completed work no later than 30 days from receipt of payment from the recipient Must have a mechanism to monitor/ensure prompt payment occurs 10

11. Good Faith Efforts Criteria Must have process/criteria in place for evaluating bids on solicitations with DBE contract goals –If don’t meet stated goal, did bidder make and document “good faith efforts” to meet the goal? See Appendix A for guidance, additional information 11

12. Monitoring Mechanisms In the past, the DBE rule required that recipients monitor contracts/projects with DBE participation, but without specifying what must be done Now, must perform site visits and certify to FTA (or FHWA, FAA) that the DBEs are performing the work assigned to them 12

13. Small Business Provision New Rule! Recipients must add an element to their DBE programs which fosters small business participation Must submit plan to relevant operating administration by February 28, 2012 Reviews are underway and most have been conditionally approved 13

14. What is a DBE goal? Key Points Should be based on demonstrable evidence of ready, able and willing DBE firms relative to all firms available to perform on your contracts Your overall DBE goal should reflect what you’d expect DBE participation to be absent the effects of discrimination 14

15. Step 1: Base Figure All FirmsFormula DBEs ÷ All Firms = Relative Availability 15

16. Step 1 Considerations Do: Use all current, available data Accurately account for all contracting opportunities Use weighting whenever possible 16

17. Step 1 Considerations Don’t: Use past participation as your base figure Utilize local preference Exclude some contracts/contracting opportunities because you don’t think there will be DBE participation 17

18. Where do I find DBEs? State UCP Directory Provides “one stop shopping” for recipients, prime contractors, DBEs, and the general public 18

19. UCP Directory Sample Page 19

20. Weighting The process by which you consider DBE availability relative to your anticipated available contracting opportunities May weight goals on either a project-by-project basis, or based on individual contracting opportunities derived from a single project 20

21. Weighting Formula Weighted Base Figure = (Projects % of total budget) x (Relative Availability) 21

22. Step 2: Adjust Your Base Figure Evidence to Consider Current capacity of DBEs to perform work Disparity studies Input from interested parties –Local chambers of commerce –NAACP –Minority business associations –Contracting associations 22

23. Step 2: Past Participation May use past participation as Step 2 adjustment if contracting opportunities are the same/similar to those in prior years If use, determine median past participation, then average with base figure determined in Step 1 23

24. Race Conscious-Race Neutral Split Using past DBE achievement, determine what amount of overall goal will be met via race neutral means 24

25. Accountability and Goal Submissions New Rule! If a recipient fails to meet its overall DBE goal, it must analyze the shortfall, develop corrective actions and submit the plan to the relevant operating administration (FTA, FHWA, or FAA) for approval 25

26. Monitoring and Oversight Historically under-enforced area of the DBE program Why important? –Root out fraud—no DBE “fronts”! –Ensure DBEs are getting the opportunity to perform work committed to them 26

27. New Monitoring Requirements New Rule! Recipients must monitor and provide written certification for every contract/project on which DBEs are participating, ensuring the DBE(s) are in fact performing the work 27

28. Monitoring: Removal of DBE Firms New Rule! Prime contractors may not terminate DBE subcontractors from projects without “good cause” and approval from the project sponsor/recipient 28

29. Due Dates Semiannual Two (2) Halves –October 1 st to March 31 st –April 1 st to September 30 th All funds covered by your goal Due June 1 st and December 1 st respectively ARRA DBE Reports Four (4) Quarters 1.Oct. 1 st to Dec. 1 st 2.Jan. 1 st to Mar. 31 st 3.Apr. 1 st to June 30 th 4.July 1 st to Sept. 30 th ARRA funds only! Due 10 days after period ends… –Plus grace period 29

30. How do I get this done? Know your DBE firmsKnow your DBE firms –DBELO, How are you monitoring? Know the ActivityKnow the Activity –How are you going to assist? –Where is most effective areas for participation? Know you have access to the CEO.Know you have access to the CEO. 30

31. Things to Have: Bidders List [see § 26.11] –Firm name –Address –DBE status, etc… Activity reports –What awards were made during the period? –What contracts were completed during the period? 31

32. More stuff? DBE Regulations! –ECFR @ GPO Access - Click Me!ECFR @ GPO Access - Click Me! –Especially § 26.55 TEAM Account? –With Civil Rights option! Use old forms to collect information –Practice 32

33. Find Help! On the web: –Federal Transit Administration’s DBE Page www.fta.dot.gov/dbe –Office of Small & Disadvantaged Business Utilization www.osdbu.dot.gov –TEAM Help Desk 888-443-5305 Team.HelpDesk@DOT.GOV Call your Regional Civil Rights Officer! 33

34. Need more information/assistance? Contact: Federal Transit Administration Office of Civil Rights 1200 New Jersey Ave. SE East Building, 5 th Floor Washington, D.C. 20590 Office: (202) 366-4018 34

35. Thoughts? Questions? Comments? 35