How To Become A Disadvantaged Business Owner

Transcription

1 Disadvantaged Business Enterprise (DBE) Program Certification Workshop Presented by: Zakiya Wright, Certification Specialist Shona Meadows, Certification Specialist

2 DISADVANTAGED BUSINESS ENTERPRISE PROGRAM Legislatively mandated USDOT program that applies to Federal-aid highway dollars expended on federally-assisted contracts issued by USDOT recipients such as State Transportation Agencies First DBE statutory provision enacted by Congress in 1983 required USDOT to ensure that at least 10% of the funds authorized for the highway and transit Federal financial assistance programs be expended with DBEs DBE Program reauthorized in 2012 Moving Ahead for Progress in the 21st Century (MAP-21) Authorization for the program comes from 49 Code of Federal Regulations Part 26 2

3 OBJECTIVE OF 49 CFR, PART CFR, Part 26 seeks: To ensure nondiscrimination in the award and administration of DOT assisted contracts for highway, transit, and airport programs; To create a level playing field on which DBE s can compete fairly for DOT assisted contracts; To help eliminate barriers to the participation of DBE firms in DOT assisted contracts; 3

4 OBJECTIVE OF 49 CFR, PART 26 To ensure that only firms that fully meet the eligibly standards are permitted to participate as a DBE; To ensure the DBE program is narrowly tailored in accordance with applicable law; To assist the development of firms that can compete successfully in the marketplace outside the DBE program. 4

5 ALABAMA UNIFIED CERTIFICATION PROGRAM (ALUCP) The United States Department of Transportation (USDOT) requires that a Unified Certification Program (UCP), governed by 49 CFR, Part 26, be put into practice by each state. The purpose of the UCP is to provide one-stop shopping of certification services to socially and economically disadvantaged individuals. Eliminates the need to attain multiple certifications Certification is recognized by all federal recipients (FHWA, FAA, & FTA) in the State of Alabama 5

6 ALUCP CERTIFYING AGENCIES (5) The Alabama Department of Transportation (ALDOT) The Birmingham Airport Authority (BAA) The Huntsville-Madison County Airport (HMCAA) The Alabama State Port Authority (ASPA) The WAVE Transit Systems (WAVE) 6

7 BENEFITS OF BECOMING DBE CERTIFIED Expands opportunities to participate on federally-funded contracts; Become accessible to prime contractors needing to fulfill DBE participation goal requirements; DBEs receive information regarding upcoming ALDOT and local/municipal projects; Increases opportunities to network at events such as procurement fairs and pre-bids; Listings in official directories such as the ALUCP database; DBEs through ALDOT s DBE Supportive Services Program are provided technical expertise and management training. 7

8 WHAT IS A DBE? A DBE is a for-profit small business concern that is: At least 51 percent owned by one or more individuals who are both socially and economically disadvantaged; AND Whose management and daily business operations are controlled by one or more of the socially and economically disadvantaged individuals who own it. 8

9 DBE ELIGIBILITY CRITERIA Social and Economic Disadvantage Business Size Ownership Control 9

10 SOCIAL AND ECONOMIC DISADVANTAGE U. S. Citizen or lawfully admitted permanent residents who are: Women Black Americans Hispanic Americans Native Americans Asian-Pacific Americans Subcontinent Asian-Americans Or. any individual found to be socially and economically disadvantaged on a case-bycase basis pursuant to 49 CFR, Part 26, Appendix E. 10

11 SOCIAL AND ECONOMIC DISADVANTAGE Personal Net Worth (PNW) Less than $1.32 Million Individual ownership interest in the applicant firm is excluded Equity in primary residence is excluded Business Size Standard Small business as defined by the Small Business Administration (SBA) Annual gross receipts over a 3 year period must not be over $23.98 Million 11

12 OWNERSHIP AND CONTROL Ownership Must be a for-profit small business Disadvantaged owner(s) must own at least 51% Control management AND daily business operations Independence Business must not be affiliated to another firm in such a way that would compromise its independence and control. Includes, but are not limited to, such areas as personnel, facilities, equipment, financial and/or bonding support, and other resources. Management and Control Must have the power to direct or cause the direction Make day-to-day decisions 12

13 DBE APPLICATION PROCESS ALUCP DBE application packages are available online at 13

14 DBE APPLICATION PROCESS Application is received and checked for completeness Application Affidavit of Certification for each disadvantaged owner signed & notarized Personal Net Worth (PNW) Statement for each disadvantaged owner Personal Tax Returns for each disadvantaged owner Last 3 years Corporate Tax Returns for firm Last 3 years or life of the firm All other documents pertaining to your firm Supporting Documents Checklist 14

15 DBE APPLICATION PROCESS Personal Financial Statement(s) is forwarded to the Audit Department On-Site interview is scheduled with a DBE Certification Analyst Interview is conducted with owner(s) of the firm Conducted at firm s office location. May also visit work sites. If additional documents are needed they will be requested usually given 10 days to return DBE Certification Analyst 15

16 DBE APPLICATION PROCESS DBE Certification Analyst reviews application, on-site review, and supporting documentation to determine if applicant meets the eligibility standards. DBE Certification Analyst makes recommendation to the DBE Certification Review Board on the firm s eligibility for certification & adequacy of the applicant s resources to perform in the work classification(s) requested. If application is approved, applicant is notified in writing. Firm is then placed in a DBE Directory identifying all firms eligible to participate as DBEs. The ALUCP DBE Directory is available to the public electronically, on the internet, at. If application is denied, the Department issues a denial letter listing the reasons for the denial and provides information related to the appeal process. 16

17 HOW LONG DOES DBE CERTIFICATION LAST? As long as the firm continues to meet the standards established in 49 CFR Part 26 Certification is ongoing. Firm is required to ANNUALLY submit a No Change Affidavit (and supporting documentation) by the anniversary date of certification. Supporting Documents include, but are not limited to, the following: Signed and notarized No Change Affidavit Previous 3 years of Corporate Tax Returns 17

18 I AM CERTIFIED! WHAT NOW? Be Proactive Educate Yourself Market your firm Network Be prepared Visit ALDOT s Office Engineer webpage: 18

19 SMALL BUSINESS ELEMENT (SBE) PROGRAM 49 CFR Part regulates the SBE program Race-neutral (RN) program -- No DBE Goals on any of these projects Projects will be designated as small business set asides with a dollar range of $0 - $400,000 To qualify as a SBE, a firms average annual gross receipts, over the three (3) previous fiscal years, cannot exceed $23.98 million dollars Be a Pre-Qualified Prime Contractor with ALDOT Road and Bridge construction firms only 19

20 Questions? 20

21 For additional information regarding the DBE and SBE Programs you may contact: Alabama Department of Transportation Compliance and Business Opportunities Bureau Disadvantaged Business Enterprises (DBE) Program 2720 Gunter Park Drive West Montgomery, AL Phone (334) Fax (334)