Caltrans Improves Mobility Across California Disadvantaged Business Enterprise (DBE) Certification Workshop Presented by Caltrans Office of Business and Economic Opportunity 1

LEARNING OBJECTIVES Today we shall discuss:  Title 49 of the Code of Federal Regulations (49 CFR), Part 26.  Eligibility criteria for the Unified Certification Program (UCP).  California Unified Certification Program (CUCP).  Benefits of becoming DBE certified. Caltrans Improves Mobility Across California 2

LEARNING OBJECTIVES discussed today:  DBE application/certification process.  Applicant’s responsibilities when submitting a DBE application  What to do once you are a certified DBE  Annual Update Affidavit (AUA ) requirements.  How to find a certified firm on the CUCP database. Caltrans Improves Mobility Across California 3

OBJECTIVE OF 49 CFR, PART 26 : (To allow) participation of disadvantaged business enterprises in the Department of Transportation (DOT) Financial Assistance Programs. To accomplish this, Part 26 seeks:  To ensure nondiscrimination in the award and administration of DOT assisted contracts for highway, transit, and airport programs  To create a level playing field on which DBE’s can compete fairly for DOT assisted contracts  To help eliminate barriers to the participation of DBE firms in DOT assisted contracts. Caltrans Improves Mobility Across California 4

49 CFR, PART 26 OBJECTIVES (continued):  To ensure that only firms that fully meet the eligibly standards are permitted to participate as a DBE (to be discussed later).  To ensure the DBE program is narrowly tailored* in accordance with applicable law. * Narrowly tailored is the legal principle that a law be written to specifically fulfill only its intended goals (selective and specific). Caltrans Improves Mobility Across California 5

CALIFORNIA UNIFIED CERTIFICATION PROGRAM (CUCP)  The United States Department of Transportation (USDOT) requires that a Unified Certification Program (UCP), governed by 49 CFR, Part 26, be put into practice by each state.  The purpose of the UCP is to provide “one- stop shopping” of certification services to socially and economically disadvantaged individuals. Caltrans is the statewide agency. Caltrans Improves Mobility Across California 6

7 CUCP CERTIFYING AGENCIES (10)  CA Department of Transportation (Caltrans)  S.F. Bay Area Rapid Transit (BART)  S.F. Municipal Transportation Agency (SFMTA)  Santa Clara Valley Transportation Authority (VTA)  San Mateo County Transit District (SAMTRANS)  Central Contra Costa Transit Authority (CCCTA)  City of Fresno  Yolo County Transportation District (YOLOBUS)  L.A. County Metropolitan Transportation Authority (METRO)  City of Los Angeles

BENEFITS OF BECOMING DBE CERTIFIED  Certification is recognized by 800 local agencies in California, other states and private companies.  Expands opportunities to participate on federally- funded contracts.  Become accessible to prime contractors needing to fulfill DBE participation goal requirements Caltrans Improves Mobility Across California 8

9 BENEFITS OF BECOMING DBE CERTIFIED  Increases opportunities to network at events such as procurement fairs and pre-bids.  Listings in official directories such as the CUCP database.

DBE APPLICATION PROCESS  North American Industry Classification System (NAICS) codes are required for the application and based on the firm’s primary activity; information included in package. SBA size standards are applicable.  For DBE purposes, the three (3) year annual gross receipts for the firm (including affiliates) cannot exceed $22.41million….period. Caltrans Improves Mobility Across California 10

DBE ELIGIBILITY CRITERIA  Social and Economic Disadvantage  Business Size Standards  Personal Net Worth  Ownership  Control Caltrans Improves Mobility Across California 11

SOCIAL AND ECOMOMIC DISADVANTAGE  United States citizens or lawfully admitted permanent residents who are:  Women  African Americans  Hispanic Americans  Native Americans  Asian-Pacific Americans  Subcontinent Asian Americans  Or……….. Caltrans Improves Mobility Across California 12

SOCIAL AND ECOMOMIC DISADVANTAGE Any individual found to be both socially and economically disadvantage, on a case-by- case basis, by a certifying agency pursuant to the standards of 49 CFR, Part 26, Appendix E. Caltrans Improves Mobility Across California 13

PERSONAL NET WORTH (PNW) & SIZE STANDARDS  To be eligible for the program, an individual’s personal net worth cannot exceed $1.32 million.  DBE firms are also subject to applicable small business size standards in terms of annual receipts as determined by the United States Small Business Administration (SBA) (cannot exceed $22.41million) Caltrans Improves Mobility Across California 14

OWNERSHIP  Majority ownership: the firm must be owned and controlled by at least 51 percent by a socially and economically disadvantaged individual or group of individuals.  Ownership must be real, substantial, and continuing; going beyond pro forma ownership of the firm as reflected in the ownership documents. Caltrans Improves Mobility Across California 15 for sake of; as a matter of form.

OWNERSHIP  Disadvantaged owners must enjoy the customary incidents of ownership, and share in the risks and profits commensurate with their ownership interests as demonstrated by the substance*, and not merely the form of arrangements. *real, essential, essence Caltrans Improves Mobility Across California 16

CONTROL  The socially and economically disadvantaged owner(s) must possess the power to direct or cause the direction of the management and polices of the firm as well as making the day-to-day and long-term decisions on matters of management, policy, and operations (e.g. By-laws, minutes, agreements, licensing, etc). Caltrans Improves Mobility Across California 17

CONTROL  Only an independent business may be certified as a DBE. An independent business is one that the viability of which does not depend on its relationship with another firm or firms (e.g. personnel, facilities, equipment, financial support, relationships, resources etc. within normal industry practice). Caltrans Improves Mobility Across California 18

DBE APPLICATION PROCESS  CUCP DBE Application Packages are available online at Caltrans Improves Mobility Across California 19

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Caltrans Improves Mobility Across California 23 Make sure you have submitted everything requested! Photo ID indicating gender Duty Statement

Caltrans Improves Mobility Across California 24 This page must be completed. What areas of California do you wish to or can work? BE REALISTIC

DBE APPLICATION PROCESS The Personal Financial Statement (PFS)  The PFS shall be completed by each socially and economically disadvantaged owner that make up the 51percent majority ownership of the firm.  Note if an owner is married, all assets and liabilities for the owner and his/her spouse must be disclosed; however, equity in the primary residence and ownership interest in the applicant’s firm is excluded by the certifying agency. Caltrans Improves Mobility Across California 25

Caltrans Improves Mobility Across California 26 Married owners must include all assets and liabilities for both owner and his/her Spouse. Page 2 is where real properties are listed. Also indicate if figures are for a married couple

27 Sign & Date Information regarding your properties owned. Attach separate sheet if needed.

28 Resource websites:  

APPLICANT’S RESPONSIBILITY  The Affidavit of Certification located at the end of the application must be signed, dated, and notarized prior to submitting to a certifying agency.  If you have any questions concerning the application, call Caltrans Improves Mobility Across California 29

30 WHAT HAPPENS NEXT?  Your application is assigned to an Analyst.  Analyst reviews and assess eligibility.  A Site Visit is schedule and conducted.  Certification determination completed.

ANNUAL UPDATE AFFIDAVIT  All DBE firms are required to submit an Annual Update Affidavit (aka No Change Declaration, AUA) each year.  The firm’s owner is declaring that there has been no changes affecting the firms ability to meet size standards, disadvantaged status, ownership, or control requirements as per 49 CFR, Part 26.  In addition, the past year’s taxes for the firm must also be submitted. Caltrans Improves Mobility Across California 31

Caltrans Improves Mobility Across California 32 Annual Update Affidavit (AUA). 3 steps: day letter day letter 3. Proposal to remove

I AM CERTIFIED! WHAT NOW?  Be Proactive  Educate yourself  Market your firm  Network  Be prepared  Caltrans Office Engineer (OE) webpage: Caltrans Improves Mobility Across California 33

LEARNING OBJECTIVES  DBE certification process  Annual Update Affidavit (AUA ) requirements.  how to find a certified firm on the California Unified Certification Program (CUCP) database. Caltrans Improves Mobility Across California 34

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