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“HOW DO I GET CERTIFIED?”
U. S. Department of Transportation
Federal Transit Administration
Opening “DOORS” ProgramDeveloping Opportunities, Outreach
and Resources for Success
Kansas City, MissouriJune 19, 2012
To ensure nondiscrimination in the award and administration of federally funded contracts;
To create a level playing field on which DBE’s can compete fairly for federally funded contracts with the inclusion of all classes;
To ensure that the Department’s DBE Program is narrowly tailored and in accordance with applicable law;
PURPOSE OF DBE PROGRAM
To ensure that only firms that fully meet the eligibility standards are permitted to participate as DBE’s;
To help remove barriers to the participation of DBE’s in DOT-funded contracts; and
To assist the development of firms that can compete successfully in the marketplace outside the DBE Program.
PURPOSE OF DBE PROGRAM (cont’d)
DBE CERTIFICATION Certification Objective
To ensure that program benefits small, for-profit business firms that are:
oAt least 51% owned and controlled by one or more individuals who are both socially and economically disadvantaged
oWhose management and daily business operations are controlled by one or more of the socially and economically disadvantaged individuals who own it
The U. S. DOT and FTA administer the DBE Program in accordance
with Federal Regulations 49 CFR Part 26
DBE CERTIFICATION
49 CFRPart 26
Federal Regulations
Eligibility Standards
Business Size
Social and Economic Disadvantage
Group Membership
Personal Net Worth
Ownership and Control
Other Rules Affecting Certification
DBE CERTIFICATION
26.63 - Group Membership The individual must demonstrate, by a
preponderance of the evidence, that he or she is a member of the group
Consider that the individual has held themselves out to be a member of the group over a long period of time prior to application for certification and regarded as a member of the group by the relevant community
DBE Certification
26.65-Business Size
Must be an existing small business
oSBA’s size standards based on the North American Industrial Classification System (NAICS)
oAnnual income not to exceed $22.41 million
• Calculated by 3 year average gross receipts
DBE CERTIFICATION
26.67-Social & Economic Disadvantage Citizens & lawfully admitted permanent
residents who are:
oWomen
oBlack Americans
oHispanic Americans
oNative Americans
oAsian-Pacific Americans
oSubcontinent Asian-Americans
oOther groups designated by SBA
DBE CERTIFICATION
26.67 – Social & Economic Disadvantage
Personal Net Worth
oEach owner claiming social and economic disadvantage is required to submit signed, notarized Personal Net Worth (PNW) Statement with supporting documentation
o$1.32 Million Personal Net Worth Cap
Excludes Equity in Primary Residence & Applicant Business Interest
DBE CERTIFICATION
26.69 – Ownership
At least 51% percent of firm must be owned by a socially and economically disadvantaged individual
Ownership must be real and substantial -- disadvantage owner must enjoy the customary incidents of ownership and share in the risk and profits associated with their ownership interest
DBE CERTIFICATION
26.69 – Ownership (continued)
The contributions of capital or expertise by the socially and economically disadvantaged owner must be real and substantial (i.e. not an unsecured note payable or an employee of the firm)
Special rules apply for ownership acquired by gift or transfer and when marital assets are used to acquire ownership
DBE CERTIFICATION
26.71 – Control The firm must be an independent business – not
dependent on its relationship with another firm(s)
Not subject to any formal or informal restrictions which limit the customary discretion of the disadvantaged owners (i.e. not restricted by-laws, voting powers)
The disadvantaged owner must possess the power to direct and make the day-to-day as well as long-term decisions on matters of management, policy and operations (must hold the highest officer position)
DBE CERTIFICATION
26.71 – Control (continued)
Others (non-disadvantaged individuals) may be involved in the business but not possess or exercise the power to control the firm or responsible for the operation of the firm.
oMay delegate authority but must be revocable
The disadvantaged owner must have an overall understanding of, and managerial and technical competence and experience directly related to the type of business seeking certification.
DBE CERTIFICATION
26.73 - Other Rules Affecting Certification Determine if the firm has exhibited a pattern of
conduct indicating its involvement in attempts to evade or subvert the intent or the requirements of the DBE Program
The firm’s eligibility is evaluated on the basis of present circumstances
Must be for-profit
Performs a commercially useful function or is a regular dealer
Holding companies and subsidiaries – additional rules regarding company structure
DBE CERTIFICATION
26.85 - Interstate Certifications (new) There is no reciprocity agreement between the
Missouri UCP and any other UCP
As of January 2011 the UCPs may accept interstate certifications (Part 26.85)
Firms should be certified in their home states first
o Submit same paperwork and copies of certification documents and correspondence to MRCC
o MRCC may request additional information from UCP
o MRCC may not accept the certification decision
DBE CERTIFICATION
Missouri agencies that receive DOT funding have implemented a Unified Certification Program (UCP). DBE certifying agencies in the state to formed the Missouri Regional Certification Committee (MRCC). Those partnering agencies include:
Missouri Department of Transportation (MoDOT)
City of St. Louis - Lambert Airport Authority
Metro in St. Louis
City of Kansas City, Missouri
Kansas City Area Transportation Authority (KCATA)
Mid American Regional Council (MARC)
East West Gateway Council of Governments (St. Louis)
DBE CERTIFICATION
New requirement under 49 CFR Part 26 changes effective January 2011
26.39 “Fostering Small Business Participation”
Becomes an element of the agencies’ DBE Programs
Submitted to FTA for approval by 2/28/12
Firms considered small business under SBA guidelines will be allowed to participate. Title 13, Code of Federal Regulations, Part 121
SMALL BUSINESS ENTERPRISE (SBE)PROGRAM
Size standards ensure a “level playing field” for competition among small businesses of varying sizes.
http://www.sba.gov/category/navigation-structure/contracting/contracting-officials/eligibility-size-standards
By definition, firms that are certified as DBE’s are considered SBE’s
SBE PROGRAM
SBE Program is race neutral and gender neutral
Agencies are encouraged to unbundle larger projects to allow small firms to bid on DOT funded projects
Unlike the DBE program, agencies may “set aside” a portion of DOT funded projects to allow exclusive participation by a small business regardless of the owner’s gender, race or geographic location
SBE PROGRAM
The MRCC has a “Small Business Enterprise (SBE) Program Declaration of Certification” that is reciprocal with all Missouri UCP agencies Includes notarized acknowledgement and
affirmation that business meets the SBA size guidelines
Requires that SBE’s are under the PNW threshold of $1.32 million
Accepts SBA certification and MRCC may ask for tax returns
SBE PROGRAM
Metro707 N. First StreetSt. Louis, Missouri 63102314-982-1492314-982-1558 (fax)www.metrostlouis.org
City of Kansas City, MissouriHuman Relations& KCI Airport4th Floor, City Hall414 East 12th StreetKansas City, Missouri 64106816-513-1836816-513-1838 (fax)www.kcmo.org
Kansas City Area TransportationAuthority1350 E. 17th StreetKansas City, Missouri 64108816-346-0224816-346-0336(fax)www.kcata.org
City of St. Louis – LambertP.O. Box 1021210701 Lambert International BoulevardSt. Louis, Missouri 63145314-426-8111314-890-1305 (fax)www.mwdbe.org
Missouri DepartmentOf Transportation105 West Capitol AvenueP.O. Box 270Jefferson City, Missouri [email protected]
East-West Gateway CouncilOf Governments1 S. Memorial Drive, Suite 1600St. Louis, MO 63102314-421-4220314-231-6120 (fax)www.ewgateway.org
How do I apply for Certification?
Federal Transit Administration:
http://fta.dot.gov/civilrights/12326.html
DOT’s Office of Small & Disadvantaged Business Utilization:
http://osdbu.dot.gov
Small Business Administration:
http://sba.gov
DBE/SBE PROGRAM REGULATIONS
Denise Bradshaw Adams
816-346-0224
E-mail: [email protected]
Website: http://www.kcata.org
KCATA’s Contact Information
