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Disadvantaged Business Enterprise (DBE) Program Understanding the program and your obligations
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Presentation Overview Origin of program Origin of program What is the DBE program What is the DBE program Regulations Regulations NAICS Codes NAICS Codes SBA size standards SBA size standards Your obligations Your obligations Leveraging your certification Leveraging your certification
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Origin of Program The U.S. Department of Transportation (USDOT) through its Operating Administrations, distributes billions of dollars annually to state and local transportation agencies The U.S. Department of Transportation (USDOT) through its Operating Administrations, distributes billions of dollars annually to state and local transportation agencies
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Origin of Program These funds are used to help finance many projects across the country. The majority of these funds will be allocated for construction projects These funds are used to help finance many projects across the country. The majority of these funds will be allocated for construction projects (approximately 85% ) (approximately 85% )
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Origin of Program With a mission to help small businesses owned and controlled by socially and economically disadvantaged individuals, the DOT adopted a policy to allow these owners to participate in contracting opportunities created by DOT financial assistance programs With a mission to help small businesses owned and controlled by socially and economically disadvantaged individuals, the DOT adopted a policy to allow these owners to participate in contracting opportunities created by DOT financial assistance programs
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* = Information taken from U.S. Department of Transportation website Origin of Program The first DBE statutory provision was enacted by Congress in 1983.* The first DBE statutory provision was enacted by Congress in 1983.* This provision required the Department to ensure that at least 10% of the funds authorized for the highway and transit Federal financial assistance programs be expended with DBEs.* This provision required the Department to ensure that at least 10% of the funds authorized for the highway and transit Federal financial assistance programs be expended with DBEs.*
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Origin of Program There are three major DOT Operating Administrations involved in the DBE program There are three major DOT Operating Administrations involved in the DBE program Federal Highway Administration Federal Highway Administration Federal Aviation Administration Federal Aviation Administration Federal Transit Administration Federal Transit Administration
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What is the DBE Program It is a program of the USDOT that provides an increased opportunity for participation in state and local procurement It is a program of the USDOT that provides an increased opportunity for participation in state and local procurement
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What is the DBE program The main objectives of the DBE Program are: The main objectives of the DBE Program are: To ensure that DBEs can compete fairly for federally funded transportation-related projects. To ensure that DBEs can compete fairly for federally funded transportation-related projects. To ensure that only eligible firms participate as DBEs. To ensure that only eligible firms participate as DBEs. To assist DBE firms in competing outside the DBE Program. To assist DBE firms in competing outside the DBE Program.
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True/False Statement Statement The Disadvantaged Business Enterprise (DBE) program is solely a racially based program The Disadvantaged Business Enterprise (DBE) program is solely a racially based program
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True/False False False African Americans, Hispanics, Native Americans, Asian-Pacific and Subcontinent Asian Americans, and women are presumed to be socially and economically disadvantaged. Other individuals can also qualify as socially and economically disadvantaged on a case-by-case basis. African Americans, Hispanics, Native Americans, Asian-Pacific and Subcontinent Asian Americans, and women are presumed to be socially and economically disadvantaged. Other individuals can also qualify as socially and economically disadvantaged on a case-by-case basis.
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Regulations / 49 CFR 26 (DBE) (a) To ensure nondiscrimination in the award and administration of DOT-assisted contracts in the Department's programs; (a) To ensure nondiscrimination in the award and administration of DOT-assisted contracts in the Department's programs; (b) To create a level playing field on which DBEs can compete fairly for DOT-assisted contracts; (b) To create a level playing field on which DBEs can compete fairly for DOT-assisted contracts; (c) To ensure that the Department's DBE program is narrowly tailored in accordance with applicable law; (c) To ensure that the Department's DBE program is narrowly tailored in accordance with applicable law; (d) To ensure that only firms that fully meet this part's eligibility standards are permitted to participate as DBEs; (d) To ensure that only firms that fully meet this part's eligibility standards are permitted to participate as DBEs; (e) To help remove barriers to the participation of DBEs in DOT-assisted contracts; (e) To help remove barriers to the participation of DBEs in DOT-assisted contracts; (f) To help develop firms to compete successfully in the marketplace outside the DBE program; (f) To help develop firms to compete successfully in the marketplace outside the DBE program; (g) To provide appropriate flexibility to recipients of Federal financial assistance in establishing and providing opportunities for DBEs. (g) To provide appropriate flexibility to recipients of Federal financial assistance in establishing and providing opportunities for DBEs.
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NAICS Codes The North American Industry Classification System (NAICS) is the standard used by Federal agencies in classifying business establishments for the purpose of collecting, analyzing and publishing statistical data related to the U.S. business economy The North American Industry Classification System (NAICS) is the standard used by Federal agencies in classifying business establishments for the purpose of collecting, analyzing and publishing statistical data related to the U.S. business economy
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NAICS Codes The NAICS Code(s) associated with your firm is crucial, because that is how your firm is classified and more importantly identified when external users are searching for qualified DBEs The NAICS Code(s) associated with your firm is crucial, because that is how your firm is classified and more importantly identified when external users are searching for qualified DBEs http://www.census.gov/eos/www /naics/ http://www.census.gov/eos/www /naics/
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SBA Size Standards A size standard is the largest that a concern can be and still qualify as a small business for Federal Government programs. Size standards are the average annual receipts ($22.4M) or the average employment of a firm.
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SBA Size Standards (Examples) 238160 Roofing Contractors $14MM 561720 Janitorial Services $16.5MM 722310 Food Service Contractors $35.5MM 333993 Packaging Machinery Manufacturing 500 employees http://www.sba.gov/size. http://www.sba.gov/size.
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Your Obligation You are expected to: Provide CBDP with complete and truthful data in a timely manner (Upon request) Provide CBDP with complete and truthful data in a timely manner (Upon request) Notify CBDP (within 30 days) regarding any changes within the business (Address, Phone, Ownership, Etc.) Notify CBDP (within 30 days) regarding any changes within the business (Address, Phone, Ownership, Etc.) Partner with CBDP to help grow the program into a “Model” program Partner with CBDP to help grow the program into a “Model” program
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Leveraging your Certification Certification should be used as a marketing tool for you to use to help modify or tweak your business position. Certification should be used as a marketing tool for you to use to help modify or tweak your business position. Learn the market Learn the market Identify who is buying what you are selling Identify who is buying what you are selling Identify and develop a niche that is lacking or void in the market Identify and develop a niche that is lacking or void in the market Promote your certification through Chambers, Business Association & other networking groups. Promote your certification through Chambers, Business Association & other networking groups. Obtain WBE/MBE/DVB/SBE/NMSC Certifications from other certifying agencies Obtain WBE/MBE/DVB/SBE/NMSC Certifications from other certifying agencies Update your marketing materials to show your certifications, including business cards, websites & capability statements. Update your marketing materials to show your certifications, including business cards, websites & capability statements. ALWAYS be prepared to sell ALWAYS be prepared to sell
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Conclusion Remember, having this certification DOES NOT guarantee work or contracts. However, it does present an opportunity in the public sector for you to do work as a DBE/ACDBE. So, use your resources, contacts and networking skills. The real work begins NOW! Remember, having this certification DOES NOT guarantee work or contracts. However, it does present an opportunity in the public sector for you to do work as a DBE/ACDBE. So, use your resources, contacts and networking skills. The real work begins NOW!
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