COMMONWEALTH OF VIRGINIA DEPARTMENT OF TRANSPORTATION SMALL BUSINESS ENTERPRISE PROGRAM OVERVIEW OF THE VDOT SMALL BUSINESS ENTERPRISE PROGRAM
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1 COMMONWEALTH OF VIRGINIA DEPARTMENT OF TRANSPORTATION SMALL BUSINESS ENTERPRISE PROGRAM OVERVIEW OF THE VDOT SMALL BUSINESS ENTERPRISE PROGRAM The Virginia Department of Transportation (VDOT) in accordance with the requirements of U.S. Department of Transportation (USDOT) 49 CFR Part 26, Section has developed a VDOT Small Business Enterprise Program (VSBEP) to ensure that Disadvantaged Business Enterprises (DBEs) and small businesses have a maximum opportunity to participate on federally-assisted projects. The VSBEP is designed to increase the number of competitively awarded contracts to small businesses, maximize contract opportunities, minimize contract bundling, and promote the use of small businesses in VDOT contract and subcontracting opportunities. PURPOSE The purpose of the VSBEP is to augment race-neutral efforts to meet DBE goals and in accordance with 49 CFR overall DBE goals, as much as possible, should be met through race-neutral means. VDOT s DBE/Small Business Program will not only increase the number of contract opportunities for small businesses, but will also make it easier for DBEs to compete for federally-assisted contracts as a prime contractor. DBEs are small businesses and by VDOT facilitating participation for small businesses this will make possible the opportunity for more DBE participation. The VSBEP shall include elements to structure contracting requirements to facilitate competition by small businesses, taking all reasonable steps to eliminate barriers that may preclude small businesses from participating as prime contractors or subcontractors. By formalizing existing practices and implementing new procedures, the VSBEP will allow VDOT to target more effectively small business participation and create opportunities relating to VDOT s contracting and procurement. IMPLEMENTATION The Commonwealth of Virginia has an existing Small, Women- and Minority-owned (SWaM) Business Program that is race-neutral and was developed to enhance contracting opportunities for small business firms with state government entities. VDOT participates in the Commonwealth s small business program and with modifications, the SWaM program will meet 49 CFR fostering small business participation as the VDOT Small Business Enterprise Program. Program eligibility for the VSBEP will require that certified SWaM businesses meet DBE Program personal net worth and size standard requirements and consequently, program participants will compete with similarly-sized businesses. VDOT Small Business Enterprise Program Page 1
2 VDOT accepts the premise that special efforts must be made to include small businesses and disadvantaged businesses in VDOT s contract and procurement activities. The VSBEP is designed to create a level playing field on which small businesses and disadvantaged businesses can compete fairly in all facets of VDOT s procurement activities. The VSBEP will operate in a race and gender neutral manner and is designed to include all segments of the region s business community. The Program will utilize procedures that promote inclusion and opportunity, while maintaining race and gender neutral measures in their operations. VDOT is committed to ensuring small and disadvantaged firms an equitable opportunity to participate in VDOT s procurement process. To ensure that the maximum feasible portion of the overall DBE goal is met by using raceneutral means and to provide small businesses the opportunity to become prime contractors, VDOT will establish small business set-asides on selected federally-assisted construction and consulting projects that are $1 million or less and will establish goals on projects that do not have DBE goals, where feasible. The selection of federally-funded projects to be considered for VDOT small business enterprise set-asides will be based on the following criteria: Construction and Consultant projects that have an estimated contract value of $1 million or less. Availability of certified and prequalified (for construction only) DBE and SWaM firms to compete and perform work for each selected project within the geographical area of the project. Small business set-asides for construction, professional, and non-professional procurements will be determined by the VSBEP Committee consisting of representatives from the Civil Rights, Administrative Services, Alternative Project Delivery and the Scheduling and Contract Divisions. This policy applies only to VDOT contracts funded in whole or in part with federal financial assistance. This policy is not applicable to the award of VDOT contracts for the purchase of commodities or any fully funded state contracts. ELIGIBILITY FOR VDOT SMALL BUSINESS ENTERPRISE PROGRAM Eligibility guidelines for VDOT Small Business Enterprise Program participation include the following: Business must possess Virginia DBE or SWaM certification. Business must be small business as defined by SBA standards. Gross receipts must not exceed over $22.41 million in the previous three fiscal years. VDOT Small Business Enterprise Program Page 2
3 Business owner(s) must have a personal net worth (PNW) of less than $1.32 million. Owner s equity in primary residence and ownership interest in the firm is excluded from the net worth calculation. Business must register with VDOT to participate in VDOT Small Enterprise Program. VDOT Small Business Enterprise Program Goals and Objectives Identify and eliminate all obstacles that may prevent the successful participation of DBEs and other small businesses in the VDOT federally-assisted program as prime contractors or subcontractors. Increase the total statewide number of DBEs and other small businesses that are active in the VDOT federally-assisted program. Develop effective tools for assessing small business needs and barriers through surveys, reporting data and focus groups, and implement a VSBEP that effectively meets those needs and helps small business firms participate, grow, and build capacity to successfully compete for VDOT federally funded contracts. Provide business development information, guidance, referrals, specialized training, one-onone business counseling to help small businesses succeed in the transportation industry. Develop and maintain an effective reporting system to evaluate the program s effectiveness, its strengths, weaknesses, and other outcomes, including performance goals and measures. Strategies for Promoting DBE/Small Business Program Participation VDOT s strategies focus on reviewing construction and professional services procurements, making set-aside recommendations, and requiring small business participation on projects not having DBE contract goals. In support of the VDOT Small Business Enterprise Program VDOT will: Establish a VDOT Small Business Enterprise Program in order to meet the maximum feasible portion of its Disadvantaged Business Enterprise (DBE) goal through a raceneutral means in accordance with U.S. Department of Transportation, 49 CFR and VDOT Small Business Enterprise Program Page 3
4 Maintain a list of state certified small business firms eligible for the VDOT Small Business Program. Firms eligible for this program must meet the DBE personal net worth cap and size standard caps. Participate in meetings with construction and consultant division administrators regarding contracting and consulting activities to share information on initiatives, solicit input and promote increased small business competition in VDOT contracting. Identify construction and professional services projects for small business set-aside contracts within specified contract thresholds that will allow for greater participation from small businesses to include DBE firms. Encourage joint ventures consisting of small businesses, including DBEs, to compete for and perform prime contracts. Encourage the unbundling of contracts so that small businesses have more incentive to participate in the VSBEP. Encourage mentor-protégé participation as an avenue for small businesses to become more successful and grow as a small business. Develop brochures and other written material and marketing tools that promote VSBEP utilization in contracts. Review and monitor VDOT procurements to ensure that acquisition strategies provide maximum opportunities for small business competition. Host local outreach sessions and quarterly workshops on how to do business with VDOT and the small business participation initiative. Provide formal and informal training and presentations to DBES and other small businesses. Sponsor VDOT matchmaking events to ensure that small businesses are better prepared to compete for contracts and subcontracts. Ensure that small business contract data is accurately reported. Conduct an annual review to assess the extent to which small businesses are receiving a fair share of federally assisted contracts. The VDOT Small Business Enterprise Program, as a new initiative, will be monitored closely to determine, what program attributes are effective and what components of the program need to be modified to ensure program success. VDOT Small Business Enterprise Program Page 4
5 Data Collection and Reporting Federal and State Reporting The DBE and VSBEP utilization data will be collected from contractors through the quarterly submittal of Form C-63. The Civil Rights Data Tracking System is being utilized to capture payments made to DBE and SWaM subcontractors. VDOT counts DBE participation when reporting progress toward meeting DBE goals. VSBEP participation is not counted for DBE race-conscious participation credit; however small businesses will be counted toward SWaM participation and DBE participation will be reported as race-neutral participation. The VSBEP has been established to comply with federal regulations that govern the DBE program under 49 CFR VDOT Small Business Enterprise Directory VDOT will create and maintain a Small Business Enterprise Directory, consisting of information regarding all VSBEP firms that have expressed an interest in, and are eligible to participate in VSBEP contracting opportunities. The purpose of the Small Business Enterprise Directory is to determine the availability of the VSBEP firms interested in prime contracting opportunities. The Small Business Enterprise Directory is designed to capture: Business Name Contact Informtion address, phone numbers, Certification type NAICS or NIGP commodity codes In conclusion, the VSBEP will be analyzed annually to determine the effectiveness of the intent of the program which is to augment race-neutral efforts by facilitating small business participation to meet DBE goals. VDOT Small Business Enterprise Program Page 5
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