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DBE Program Information
The DBE
program is a federal program operating under the guidance of
the United States Department of Transportation. Authorization
for the program comes from 49 Code of Federal Regulations Part
26 (49 CFR 26). The Ohio Department of Transportation (ODOT),
as a recipient of federal transportation funds, must comply
with the requirements of 49 CFR 26. You may review 49 CFR Part
26 at:
http://www.access.gpo.gov/nara/cfr/waisidx_01/49cfr26_01.html
The overall
goal of the DBE program is to ensure that firms owned and
controlled by minorities, women, and other socially and
economically disadvantaged persons have the opportunity to
grow and become self-sufficient in order to create a level
playing field on which they can compete fairly for contracts
and subcontracts in the transportation industry.
The benefits of DBE
certification are:
Eligible for contract
awards
Ongoing training opportunities
Availability of both technical- and business-related
supportive services
To qualify for certification
as a DBE, an applicant must meet the following eligibility
standards established in the federal regulations at 49 CFR
Part 26 and 13 CFR Part 121.
Small Business Concern
A firm and its affiliates
must meet applicable size standards established by the U.S.
Small Business Administration (SBA) regulations at 13 CFR Part
121, as amended, for each work classification in which
certification is requested.
No business shall be
considered small if average annual gross receipts of the firm
and its affiliates exceed $19.57 million over the previous
three fiscal years, even though receipts do not exceed the
threshold for the applicable NAICS/SIC code.
This maximum size standard is adjusted periodically to offset
inflation.
Social and Economic
Disadvantage Status
By definition, socially and
economically disadvantaged individuals are those citizens of
the United States, or lawfully admitted permanent residents,
who:
- Have an individual
personal net worth, excluding the value of their primary
residence and assets of the firm applying for DBE
certification, of less than $750 thousand; and,
- Are women or members of
minority groups designated in 49 CFR §§ 26.5 and 26.67,
including individuals who are Black Americans, Hispanic,
Asian Pacific, Asian Indian, or Native American; or,
- Are individuals who,
although not a woman or a member of one of the designated
minority groups, establish social and economic disadvantage
based on guidelines established in Appendix E to 49 CFR Part
26.
Ownership
Disadvantaged individuals must own at least 51 percent of the
firm (or stock). The contributions of capital or expertise
used to acquire ownership must be "real and substantial" and
derived from individually and independently owned resources.
Ownership interest obtained through a transfer or gift will be
scrutinized to ensure the ownership transfer is irrevocable,
was acquired for reasons other than obtaining certification as
a DBE, and that the disadvantaged owner(s) actually controls
the management, policy, and operations of the firm.
Control
Control is comprised of three parts: operational control,
managerial control, and independence. The socially and
economically disadvantaged owner(s) must have an overall
understanding of, and managerial and technical competence and
experience directly related to, the type of business in which
the firm is engaged and the firm's overall operations.
Generally, expertise limited to office management,
administration, or bookkeeping functions unrelated to the
principal business activities of the firm is insufficient to
demonstrate control.
Additionally, a firm must be
independent, its viability must not depend on its relationship
with another firm or firms.
In order to be viewed as controlling a firm, a disadvantaged
owner cannot engage in outside employment or other business
interests that conflict with the management of the firm or
prevent the individual from devoting sufficient time and
attention to the affairs of the firm.
For questions about this process, contact
Karen Crago
or
Marleise Kelley. |
