Disadvantaged Business Disadvantaged Business Enterprise (DBE) ProgramEnterprise (DBE) Program

Understanding the program and Understanding the program and your obligationsyour obligations

Presentation OverviewPresentation Overview

Origin of programOrigin of program What is the DBE programWhat is the DBE program RegulationsRegulations NAICS CodesNAICS Codes SBA size standardsSBA size standards Your obligationsYour obligations Leveraging your certificationLeveraging your certification

Origin of ProgramOrigin of Program

The U.S. Department of The U.S. Department of Transportation (USDOT) Transportation (USDOT) through its Operating through its Operating Administrations, distributes Administrations, distributes billions of dollars annually to billions of dollars annually to state and local transportation state and local transportation agenciesagencies

Origin of ProgramOrigin of Program

These funds are used to help These funds are used to help finance many projects across finance many projects across the country. The majority of the country. The majority of these funds will be allocated for these funds will be allocated for construction projects construction projects

(approximately 85% )(approximately 85% )

Origin of ProgramOrigin of Program

With a mission to help small With a mission to help small businesses owned and businesses owned and controlled by socially and controlled by socially and economically disadvantaged economically disadvantaged individuals, the DOT adopted a individuals, the DOT adopted a policy to allow these owners to policy to allow these owners to participate in contracting participate in contracting opportunities created by DOT opportunities created by DOT financial assistance programs financial assistance programs

* = Information taken from U.S. Department of * = Information taken from U.S. Department of Transportation websiteTransportation website

Origin of ProgramOrigin of Program

The first DBE statutory provision The first DBE statutory provision was enacted by Congress in was enacted by Congress in 1983.*1983.* This provision required the This provision required the

Department to ensure that at least Department to ensure that at least 10% of the funds authorized for 10% of the funds authorized for the highway and transit Federal the highway and transit Federal financial assistance programs be financial assistance programs be expended with DBEs.* expended with DBEs.*

Origin of ProgramOrigin of Program

There are three major DOT There are three major DOT Operating Administrations Operating Administrations involved in the DBE program involved in the DBE program

Federal Highway AdministrationFederal Highway Administration Federal Aviation Administration Federal Aviation Administration Federal Transit Administration Federal Transit Administration

What is the DBE ProgramWhat is the DBE Program

It is a program of the USDOT It is a program of the USDOT that provides an increased that provides an increased opportunity for participation in opportunity for participation in state and local procurementstate and local procurement

What is the DBE programWhat is the DBE program

The main objectives of the DBE The main objectives of the DBE Program are:Program are: To ensure that DBEs can compete To ensure that DBEs can compete

fairly for federally funded fairly for federally funded transportation-related projects.transportation-related projects.

To ensure that only eligible firms To ensure that only eligible firms participate as DBEs. participate as DBEs.

To assist DBE firms in competing To assist DBE firms in competing outside the DBE Program. outside the DBE Program.

True/FalseTrue/False

StatementStatement

The Disadvantaged Business The Disadvantaged Business Enterprise (DBE) program is Enterprise (DBE) program is solely a racially based programsolely a racially based program

True/FalseTrue/False

FalseFalse African Americans, Hispanics, Native African Americans, Hispanics, Native

Americans, Asian-Pacific and Americans, Asian-Pacific and Subcontinent Asian Americans, and Subcontinent Asian Americans, and women are presumed to be socially women are presumed to be socially and economically disadvantaged.  and economically disadvantaged.  Other individuals can also qualify as Other individuals can also qualify as socially and economically socially and economically disadvantaged on a case-by-case disadvantaged on a case-by-case basis.basis.

Regulations / 49 CFR 26 (DBE)Regulations / 49 CFR 26 (DBE) (a) To ensure nondiscrimination in the award and (a) To ensure nondiscrimination in the award and

administration of DOT-assisted contracts in the administration of DOT-assisted contracts in the Department's programs;Department's programs;

(b) To create a level playing field on which DBEs (b) To create a level playing field on which DBEs can compete fairly for DOT-assisted contracts;can compete fairly for DOT-assisted contracts;

(c) To ensure that the Department's DBE program (c) To ensure that the Department's DBE program is narrowly tailored in accordance with applicable is narrowly tailored in accordance with applicable law;law;

(d) To ensure that only firms that fully meet this (d) To ensure that only firms that fully meet this part's eligibility standards are permitted to part's eligibility standards are permitted to participate as DBEs;participate as DBEs;

(e) To help remove barriers to the participation of (e) To help remove barriers to the participation of DBEs in DOT-assisted contracts;DBEs in DOT-assisted contracts;

(f) To help develop firms to compete successfully in (f) To help develop firms to compete successfully in the marketplace outside the DBE program;the marketplace outside the DBE program;

(g) To provide appropriate flexibility to recipients of (g) To provide appropriate flexibility to recipients of Federal financial assistance in establishing and Federal financial assistance in establishing and providing opportunities for DBEs.providing opportunities for DBEs.

NAICS CodesNAICS Codes

The North American Industry The North American Industry Classification System (NAICS) Classification System (NAICS) is the standard used by Federal is the standard used by Federal agencies in classifying business agencies in classifying business establishments for the purpose establishments for the purpose of collecting, analyzing and of collecting, analyzing and publishing statistical data related publishing statistical data related to the U.S. business economyto the U.S. business economy

NAICS CodesNAICS Codes

The NAICS Code(s) associated The NAICS Code(s) associated with your firm is crucial, because with your firm is crucial, because that is how your firm is classified that is how your firm is classified and more importantly identified and more importantly identified when external users are when external users are searching for qualified DBEssearching for qualified DBEs

http://www.census.gov/eos/http://www.census.gov/eos/www/naics/www/naics/

SBA Size StandardsSBA 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 StandardsSBA Size Standards(Examples)(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/sizehttp://www.sba.gov/size. .

Your ObligationYour ObligationYou are expected to:You are expected to: Provide CBDP with complete and Provide CBDP with complete and

truthful data in a timely manner truthful data in a timely manner (Upon request)(Upon request)

Notify CBDP (within 30 days) Notify CBDP (within 30 days) regarding any changes within the regarding any changes within the business (Address, Phone, business (Address, Phone, Ownership, Etc.)Ownership, Etc.)

Partner with CBDP to help grow the Partner with CBDP to help grow the program into a “Model” programprogram into a “Model” program

Leveraging your CertificationLeveraging your Certification Certification should be used as Certification should be used as

a marketing tool for you to use a marketing tool for you to use to help modify or tweak your to help modify or tweak your business position. business position.

Learn the market Learn the market Identify who is buying what you are sellingIdentify who is buying what you are selling Identify and develop a niche that is lacking or void Identify and develop a niche that is lacking or void

in the marketin the market Promote your certification through Chambers, Promote your certification through Chambers,

Business Association & other networking groups.Business Association & other networking groups. Obtain WBE/MBE/DVB/SBE/NMSC Certifications Obtain WBE/MBE/DVB/SBE/NMSC Certifications

from other certifying agenciesfrom other certifying agencies Update your marketing materials to show your Update your marketing materials to show your

certifications, including business cards, websites & certifications, including business cards, websites & capability statements.capability statements.

ALWAYSALWAYS be prepared to sell be prepared to sell

ConclusionConclusion

Remember, having this Remember, having this certification certification DOES NOT DOES NOT guarantee work or contracts. guarantee work or contracts. However, it does present an However, it does present an opportunity in the public sector for opportunity in the public sector for you to do work as a DBE/ACDBE. you to do work as a DBE/ACDBE. So, use your resources, contacts So, use your resources, contacts and networking skills. The real and networking skills. The real

work begins work begins NOW!NOW!

Questions