Disadvantaged Business Enterprise (DBE) Program
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Disadvantaged Business Enterprise (DBE) Program Understanding the program and your obligations
Presentation OverviewOrigin of programWhat is the DBE programRegulationsNAICS CodesSBA size standardsYour obligationsLeveraging your certification
Origin of ProgramThe U.S. Department of Transportation (USDOT) through its Operating Administrations, distributes billions of dollars annually to state and local transportation agencies
Origin of ProgramThese funds are used to help finance many projects across the country. The majority of these funds will be allocated for construction projects (approximately 85% )
Origin of ProgramWith 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
* = Information taken from U.S. Department of Transportation websiteOrigin of ProgramThe 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.*
* = Information taken from U.S. Department of Transportation website
Origin of ProgramThere are three major DOT Operating Administrations involved in the DBE program
Federal Highway AdministrationFederal Aviation Administration Federal Transit Administration
What is the DBE Program
It is a program of the USDOT that provides an increased opportunity for participation in state and local procurement
What is the DBE program
The main objectives of the DBE Program are:To ensure that DBEs can compete fairly for federally funded transportation-related projects.To ensure that only eligible firms participate as DBEs. To assist DBE firms in competing outside the DBE Program.
The Disadvantaged Business Enterprise (DBE) program is solely a racially based program
True/FalseFalseAfrican 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.
Regulations / 49 CFR 26 (DBE)(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;(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;(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;(g) To provide appropriate flexibility to recipients of Federal financial assistance in establishing and providing opportunities for DBEs.
NAICS CodesThe 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
NAICS CodesThe 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
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.
SBA Size Standards(Examples)238160 Roofing Contractors $14MM 561720 Janitorial Services $16.5MM722310 Food Service Contractors $35.5MM333993 Packaging Machinery Manufacturing500 employees
Your ObligationYou are expected to: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.)Partner with CBDP to help grow the program into a Model program
Leveraging your CertificationCertification should be used as a marketing tool for you to use to help modify or tweak your business position. Learn the market Identify who is buying what you are sellingIdentify and develop a niche that is lacking or void in the marketPromote your certification through Chambers, Business Association & other networking groups.Obtain WBE/MBE/DVB/SBE/NMSC Certifications from other certifying agenciesUpdate your marketing materials to show your certifications, including business cards, websites & capability statements.ALWAYS be prepared to sell
ConclusionRemember, 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!