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Transcript of DISADVANTAGED BUSINESS ENTERPRISE (DBE) · PDF file Section 26.81 Unified Certification...

  • DISADVANTAGED

    BUSINESS ENTERPRISE

    (DBE) PROGRAM

    2017-2020

    Rhode Island Department of Transportation

    2 Capitol Hill

    Providence, Rhode Island

  • 1 Rev.3 201901144

    Rhode Island Department of Transportation

    Disadvantaged Business Enterprise (DBE) Program Protocols

    TABLE OF CONTENTS

    PAGE NUMBER

    INTRODUCTION 5

    POLICY STATEMENT 6

    SUBPART A – GENERAL REQUIREMENTS

    Section 26.1 Objectives 7

    Section 26.3 Applicability 7

    Section 26.5 Definitions and Terms 7

    Section 26.7 Non-discrimination Requirements 7

    Section 26.11 Record Keeping and Reporting 8

    Section 26.11(a) Reporting to DOT/FHWA/FTA 8

    Section 26.11(c) Bidders List 8

    Section 26.11(d) Availability of Records 9

    Section 26.11(e) UCP Information to DOT/FHWA/FTA 9

    Section 26.13 Federal Financial Assistance Agreement 9

    Section 26.13(a) Assurances 9

    Section 26.13(b) Contract Assurance 10

    SUBPART B – ADMINISTRATIVE REQUIREMENTS

    Section 26.21 DBE Program Updates 11

    Section 26.23 Responsibilities and Implementation of DBE Program 11

    Section 26.25 DBE Liaison Officer (DBELO) Program Responsibilities 11

    RIDOT Organizational Chart 12

    Section 26.27 DBE Financial Institutions 13

    Section 26.29 Prompt Payment Mechanism 13

    Section 26.31 DBE Directory 14

  • 2 Rev.3 201901144

    TABLE OF CONTENTS

    PAGE NUMBER

    Section 26.33 Over-Concentration 14

    Section 26.35 Business Development Programs 14

    Section 26.37 Compliance Monitoring and Enforcement Mechanisms 17

    Section 26.37(a), (b) Monitoring and Enforcement Mechanisms 18

    Section 26.37(c) Method of Insuring Contractor and

    Subcontractor Compliance with DBE Requirements 18

    Section 26.39 Fostering Small Business Participation 18

    Objectives of the Program 19

    SUBPART C – GOALS, GOOD FAITH EFFORTS, AND COUNTING

    Section 26.43 Set-asides or Quotas 20

    Section 26.45 Overall Goals 20

    Section 26.47(a), (b) Failure to Meet Overall Goals 20

    Section 26.47(c) Shortfall Analysis 20

    Section 26.51 (a-c) Breakout of Estimated Race-Neutral & Race-Conscious

    Participation 21

    Section 26.51 (d-g) Contract Goals 21

    Section 26.53(a) Demonstration of Good Faith Efforts 22

    Section 26.53(b) Information to be Submitted 23

    Section 26.53(d) Administrative Reconsideration 23

    Section 26.53(f) Good Faith Efforts When a DBE is Terminated from a

    Contract 24

    Section 26.53(g) Good Faith Efforts to Replace 26

    Section 26.53(i) Applying Good Faith Efforts When DBE is Prime 26

    Section 26.53(j) Requiring All Contracts and Subcontracts Comply 26

    Section 26.55 Counting DBE Participation 26

  • 3 Rev.3 201901144

    TABLE OF CONTENTS

    SUBPART D – CERTIFICATION STANDARDS

    Section 26.61 DBE Certification 29

    Section 26.63 Social & Economic Disadvantage 29

    Section 26.65 Business Size Standards 30

    Section 26.69 Ownership 30

    Section 26.71 Control 31

    Section 26.71(n)(1) NAICS Codes 32

    Section 26.73 Other Rules 33

    SUBPART E – CERTIFICATION PROCEDURES

    Section 26.81 Unified Certification Programs 33

    Section 26.83 Procedures for Certification Decisions 33

    Rhode Island Department of Administration’s

    Minority Business Enterprise Compliance

    Office (MBECO) 34

    ODEO/MBECO Certification 34

    MBECO Federal DBE Certification Program 34

    Annual Update 35

    Department-Initiated Proceedings 35

    USDOT Directive to Initiate Proceedings 35

    Section 26.85 Interstate Certification 36

    Section 26.86 Denials of Initial Requests for Certification 36

    Section 26.87 Removal of a DBE’s Eligibility 36

    Section 26.88 Summary Suspension of Certification 37

    Section 26.89 Certification Appeals 37

    Section 26.91 Actions Following USDOT Denial of Certification 38

  • 4 Rev.3 201901144

    TABLE OF CONTENTS

    SUBPART F – COMPLIANCE AND ENFORCEMENT

    Section 26.101 Compliance Procedures 38

    Section 26.107 Participating Firms in DBE Program 38

    Section 26.109 Information, Confidentiality, and Cooperation 39

    APPENDICES

    Appendix A Sample Page DBE Directory 40

    Appendix B Sample Progress Payment Certification 41

    Appendix C Commercially Useful Function Checklist 42

    Appendix D DBE Special Provision 48

    Appendix E Good Faith Effort When DBE is Terminated 55

    Appendix F Good Faith Effort Pre-Award 57

    Appendix G DBE Verification 60

    Appendix H Definitions 61

  • 5 Rev.3 201901144

    INTRODUCTION

    The Rhode Island Department of Transportation (RIDOT or the Department) Disadvantage Business Enterprise (DBE)

    Program is comprehensive program, developed by the U.S. Department of Transportation (USDOT), which establishes

    guidelines for the participation of firms owned and operated by socially and economically disadvantaged persons in DOT-

    assisted contracting.

    The USDOT DBE (Disadvantaged Business Enterprise) program provides a vehicle for increasing the participation by

    socially and economically disadvantaged business owners in state and local procurement. USDOT DBE regulations

    require state and local transportation agencies that receive USDOT financial assistance to establish goals for the

    participation of DBEs. Each USDOT-assisted state and local transportation agency is required to establish annual DBE

    goals, review the scopes of anticipated large prime contracts throughout the year, and establish contract-specific DBE

    subcontracting goals. Along with the Office of Small and Disadvantaged Business Utilization (OSDBU), the

    Departmental Office of Civil Rights, and the Office of the General Counsel, there are three major USDOT operating

    administrations involved in the DBE program: the Federal Highway Administration (FHWA), the Federal Aviation

    Administration (FAA), and the Federal Transit Administration (FTA).

    As a major provider of public transportation and whose employees have extensive daily contact with the public, the

    RIDOT recognizes its responsibility to the community which it serves and is committed to a policy of nondiscrimination.

    The Authority has posted the Objectives/Policy Statement (26.1, 26.3) for the Public.

    In addition to establishing goals, state and local recipients also certify the eligibility of DBE firms to participate in

    USDOT-assisted projects. Some groups are presumed to be socially and economically disadvantaged for the purposes of

    participation in this program. The main objectives of the DBE program are:

    • To ensure nondiscrimination in the award and administration of federally funded transportation-related projects

    in the Department’s highway, transit, and airport financial assistance programs;

    • To create a level playing field on which DBEs can compete fairly for federally funded transportation related

    projects;

    • To ensure that the Department’s DBE program is narrowly tailored in accordance with applicable law;

    • To ensure that only firms that fully meet this part’s eligibility standards are permitted to participate as DBEs;

    • To help remove barriers to the participation of DBEs in federally funded transportation-related projects;

    • To promote the use of DBEs in all types of federally assisted contracts and procurement activities conducted by

    recipients.

    • To assist the development of firms that can compete successfully in the marketplace outside the DBE program;

    and

    • To provide appropriate flexibility to recipients of federal financial assistance in establishing and providing

    opportunities for DBEs.

  • 6 Rev.3 201901144

  • 7 Rev.3 201901144

    SUBPART A—GENERAL REQUIREMENTS

    Section 26.1 Objectives

    The objectives are found in the policy statement on the first page of this program.

    Section 26.3 Applicability

    The RIDOT is the recipient of federal–aid highway funds authorized under:

    (1) Federal-aid highway funds authorized under Titles I (other than Part B) and V of the Intermodal Surface

    Transportation Efficiency Act of 1991 (ISTEA), Pub. L. 102-240, 105 Stat. 1914, or Titles I, III, and V of the

    Transportation Equity Act for the 21st Century (TEA-21), Pub. L. 105-178, 112 Stat. 107. Titles I, III, and V of the Safe,

    Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (SAFETEA-LU), Pub. L. 109-59, 119

    Stat. 1144; and Divisions A and B of the Moving Ahead for Progress in the