Disadvantaged Business Enterprise (DBE)

Presented by Sheena Morgan

Agency Director, North Central Texas Regional Certification Agency

Your Unified Certification Source

Overview

• Definition of DBE

• Eligibility requirements

• Appendix E

• Certification Process

• Application requirements

• Texas Unified Certification Program (TUCP)

Disadvantaged Business Enterprise

• Governed by 49 CFR Part 26

• An independent for-profit small business

• Owned and controlled at least 51% by one or more socially and economically (S&E) disadvantaged individuals

• Management and daily operations are controlled by one or more S&E individual owner(s)

• Meets size standards of 13 CFR Part 121.2 and other relevant regulations

Eligibility Requirements

• Socially Disadvantaged– Part of one of the following presumptive groups

• Black Americans

• Hispanic Americans

• Native Americans

• Asian-Pacific Americans

• Subcontinent Asian Americans

• Women

• Other minorities found to be disadvantaged by the SBA

• Economically Disadvantaged– Personal Net Worth of S&E individual must be less

than $750,000• Excludes personal residence value

• Assets in applicant firm

• Take half of all marital assets

• Must include any assets/ownership held in any other firm other than applicant firm

• S&E Individual must be U.S. citizen or lawfully admitted permanent resident of the U.S.

• Firm must be a small business that meets SBA size standards and does not exceed $22.41 million in gross annual receipts

Appendix E

• Special provisions for applicants that do not fit within the defined S & E guidelines as set in federal regulations.

• Evidence of Individual Social and Economic Disadvantaged are required

• All areas of Appendix E must be met to received DBE certification under this rule

Certification Process

• Initial Review– Process to determine if all documents have been

received per the application checklist– Email sent to applicant if additional information is

needed (only one request with two week deadline)

– Email sent to applicant if application is completeInitial review normally conducted within 30 days of

receipt of application (exceptions during high volume periods)

• Pending Process– Once application is complete, applicant is pending

a final review.

– 60-90 day processing time begins once application is deemed complete.

• Final Review Process– Certification Specialist reviews application in detail

– Applicant may receive request for additional information or clarification

– Client references (if provided) will be contacted

– Site visit will be scheduled and conducted prior to DBE certification

• Determination and Recommendation– Certification

• Firm is issued Certification Letter and Certificate with certification number and renewal date

• Certification is renewed annually

– Issues of Concern / Denial• Letter identifying areas of application which do not meet

eligibility criteria is sent to applicant• 15 day reply period given to applicant• If areas are not overturned based on response firm is finally

denied for 12 month period• If applicant does not respond within 15 days firm is finally

denied for 12 month period• All appeals can be directly sent to USDOT Office of Civil

Rights

Renewal Process

• Certifications renew at end of month in which granted

• First renewal notification sent 60 days prior to renewal date

• Second renewal notification sent 30 days prior to renewal date (if information has not been received)

• Intent to Decertify notification sent giving applicant 15 days to respond

• Decertification notification sent – applicant removed for 6 month period Your "One-Stop" Regional Certification

Agency

Application Requirements

• Checklist included in application

• Important documents to look at closely:– Resume for all owners and officers of your firm

– Personal Net Worth Statement

– Personal taxes for past 3 years for each owner claiming DBE status

– Firms taxes for past 3 years (all pages/schedules)

– Proof of financial contribution

– Bank signature cards

– Schedule of Salaries

• Corporation documents

• LLC documents

• Trucking Company– Copy of insurance agreements for each truck owned

or operated– Titles of trucks (all)– List of U.S. DOT numbers for each truck

• Regular Dealer or Wholesaler– List of product lines carried– List of distribution equipment

• Franchises– Complete copy of franchise agreement– Proof of down payment for franchise

• Partnership– Partnership agreement

• Limited Partnerships– All corporate / LLC documents for general partner– Limited Partnership Agreement

• Mergers– Copy of Merger Agreement– Copy of Articles of Merger

Texas Unified Certification Program

• TUCP is a “one-stop” certification process for the Texas DBE Program, established in October 2002.

• Six Agencies perform certification process within the state of Texas– City of Austin

– City of Houston

– Corpus Christi Regional Transportation Authority

– North Central Texas Regional Certification Agency

– South Central Texas Regional Certification Agency

– Texas Department of Transportation

• Benefits of TUCP Program– Registers your business in the State of Texas and

lists it in the DBE Directory

– Federal DBE Program Certificate issues annually

– Provides the opportunity to bid statewide as a certified DBE firm for all DOT transportation modes, including Aviation, Highways and Public Transportation

Hierarchy of Certifications• Federal Certifications

– SBA (Small Business Administration) (all other federal agencies)www.sba.gov

– DBE (Federal Transportation agencies)http://www.dotcr.ost.dot.gov/asp/dbe.asp#file

• State Certifications– HUB (Historically Underutilized

Businesses)http://www.cpa.state.tx.us/procurement/prog/hub/

• Local Certifications– M/WBE Certifications provided by each

individual city– Certifications are not reciprocal

• Council Certifications– DFW Minority Supplier Development

Council – certify minority owned business onlyhttp://msdc.adaptone.com/dfwmsdc/

– Women’s Business Enterprise Southwest – certify women business onlyhttp://www.wbcsouthwest.org/wbe_certification.aspx

NCTRCA

– Collin

– Dallas

– Denton

– Ellis

– Erath

– Hood

– Jack

– Johnson

– Kaufman

– Navarro

– Palo Pinto

– Parker

– Rockwall

– Somervell

– Tarrant

– Wise

Provides DBE certification to firms headquartered in the following North Texas counties

NCTRCA Contact Information

624 Six Flags Drive, Suite 100

Arlington TX 76011

817-640-0606 phone

817-640-6315 fax

www.nctrca.org

Your Unified Certification Source