1. DBE Supportive Services Equal Employment Opportunity Office Idaho Transportation Department USDOT Disadvantaged Business Enterprise (DBE) Program

2. 2 The DBE Program …   Is a Federal Program (USDOT) administered by a State Agency (ITD)   Applies to all transportation modes  Highway, Aviation & Transit   Helps disadvantaged business owners compete for transportation-related contracts

3. 3 What’s It Supposed to Do?   Help remove barriers to DBE working on USDOT-assisted projects   Assist in the development of firms so they can successfully compete outside the program  DBE Supportive Services   Ensure only firms meeting eligibility standards can participate as DBEs

4. 4 What Exactly Is a “DBE”? A DBE is a small, for-profit business concern that is at least 51% owned & controlled by socially & economically disadvantaged individuals.

5. 5 Qualifying as a “DBE”   Firm is existing, operational & for profit   Firm is independent & self-sufficient  No “umbilical cord” relationships   Small Business Concern  Size limits based on SBA’s standards per NAICS code  Cannot exceed USDOT’s $22.41 million ceiling

6. 6 Qualifying as a “DBE” ” Presumed to be “Socially & Economically Disadvantaged”  Asian-Indian Americans  Asian-Pacific Americans  Black Americans  Hispanic Americans  Native Americans  Women

7. 7 Case-By-Case Basis (White Males)   Chronic & Substantial Social Disadvantage in the U.S.   Negative impact in business world because of social disadvantage Qualifying as a “DBE”

8. 8 HOWEVER: Presumption of “social & economic disadvantage” is rebutted if adjusted personal net worth – excluding primary residence & interest in applicant business – exceeds $1.32 Million Qualifying as a “DBE”

9. 9   Owner has Operational & Managerial Control  Highest authority  No limits or restrictions  Can delegate, but still retain ultimate authority   Owners can establish at least 51% ownership  Documentation of capital contributions used to start business

10. 10 Becoming/Remaining a DBE   Certification Process  DBE SS Coordinator reviews app, requests additional info as needed  Committee makes eligibility determination  Decisions can be appealed   Annual “No Change” Affidavits   Cert Renewal every 3 Years   Must be certified in home state before applying in other states

11. 11 Why Do Applications Get Denied?   Lack of Documentation   Lack of Experience   Lack of Control   Emerging rather than Operational

12. 12 DBE Benefits   $800 Business Development Grants   One-on-One Bidding, Contract, Project Documentation Assistance   Free Plans & Specs for Subs   Inclusion in DBE Directories   Free Plans & Specs for Subs   Invitations to Bid from / Referrals to Prime Contractors

13. 13 DBE Benefits   Monthly DBE Newsletters*   Bi-weekly Business Training Calendar Emailings*   Workshops* *Available to non-DBEs, too!

14. 14 More Advantages of Being a DBE   DBE Participation Goal on Federal-Aid Transportation Projects (Design & Construction)  Proposed DBE Annual Participation Goal for FFY2012 is 6% for Highways, 0% Aviation, 7% Transit   Other Agencies have DBE Goals  EPA, HUD

15. 15 Race/Gender-Neutral   9th Circuit Court of Appeals decision in Western States Paving Co. v. WSDOT in 2005  DBE Program not “narrowly tailored”  State must produce evidence to support goal- setting   USDOT instructed western states to cease goal-setting until disparity studies in place  All current participation for ITD is “race/gender-neutral”  ITD currently conducting Disparity Study Update

16. 16 What Do DBEs Do For Us? Consulting, contracting & supplying for the planning, design and construction of highways, airports & public transportation systems

17. 17 Graduation Ideally, DBEs outgrow the Program:  Exceed business size or PNW limits  Build working relationships with primes outside DBE program  Acquire managerial & technical skills to successfully compete with non-DBEs

18. Liz Healas Phone: (208) 334-8567 Toll-Free: (800) 634-7790 e-mail: elizabeth.healas@itd.idaho.gov if you would like further information about the DBE Program.