DBE: Disadvantaged Business Enterprise Program DBEs are generally small firms owned and controlled minority or women.
DBE Program Required for FAA grants of $250,000 or more. Generally prepared by NDA. Must include: –Policy statement –Liaison officer –DBE financial institutions –Prompt payment clause –DBE directory –Monitoring and enforcement
The overall goal is % of contracts that will be completed by a DBE. NDA can also prepare this. NDAs standard goal setting procedure: –A: count the DBE contractors in your area –B: count all contractors and subcontractors in the same area –Divide A by B to get % goal DBE Program: Overall Goals
Separate goals for construction & engineering contracts. Total of all contracts should equal Overall Goal. Individual Contract Goals will NOT be the same % as Overall Goal. DBE Program: Contracts Goals
DBE Program: Contract Clauses Required clauses to be included verbatim: –Nondiscrimination –Prompt Payment –Notice & Proposal requirements –Termination of DBE subcontract –Special Conditions These Clauses are already in NDAs sample documents.
DBE Program: Bidders List Required Components. –Firm name –Firm address –Firms status as DBE or non-DBE –Firms age –Firms annual gross receipts.
DBE Program: Contract Award Two Questions to ask before award 1. Did the bidder provide the following? –Names & addresses of DBE subcontractors –Description of DBEs scope of work –Dollar amount of DBE subcontract –Bidders written commitment to use DBE –DBEs written confirmation –If contract goal not met, good faith efforts. 2. Did the bidder meet the goal or make a good faith effort to meet it?
DBE Program: Counting DBE Participation Count only work done by DBEs own forces. DBE must perform a commercially useful function. DBE trucker can not lease from non-DBE firm. Material & supplies generally count 60%.
DBE Program: Monitoring Monitor prompt payment of primes to subs. Monitor that the DBE subs originally proposed are on the job. If not, changes must have airport/FAA approval. Monitor that the DBE subs perform work that counts as participation.
DBE Program: Final Results NDA/FAA form to verify that DBEs have been paid and calculate actual DBE achievements. If DBEs used on contracts without a goal, keep a record of this. Complete FAAs annual survey.
DBE Program: Unified Certification By March 2002, Dept. of Roads, airports and possibly a few cities must agree to ONE combined certification program.
DBE Program: Sample Program NDA has sample program to meet all these requirements. Insert Sponsors name and DBELO. Add Appendix A: Organizational Chart. Add Appendix B: Overall DBE Goal.