Federal Contracting Made Easy is interviewing Raymond Christy. Raymond is the Disadvantaged Business Enterprise (DBE) Coordinator for the Salt Lake City Department of Airports. I have known Raymond for over a decade now and I can tell you his passion for small businesses has grown over the years. Now let’s get to that interview.
Nancy – Raymond welcome to today’s show. Raymond – Thank you for having me today. It’s a beautiful day outside and I know it’s going to be beautiful for us here on the silver screen. Which is kind of small.
Nancy – Can you tell us a little about your background? Raymond – Well I have a varied background between logistics, consumer product sales, purchasing, contract negotiations, program coordinating and logistics.
Raymond – When I started… When I started my career with the Utah Transit Authority, a transportation agency in the state of Utah. I had to learn about what is called the Disadvantaged Business Enterprise Program. In learning about that program and the regulations that are part of that. That took me into the world of compliance as well as the disadvantaged business enterprise program. Prior to that my experience in consumer product sales, logistics, purchasing, program coordination, contract compliance helped me to understand and fuse the two worlds of compliance, procurement contracting together.
Raymond – Well it has been a lot of fun along the way. It has been interesting.
Raymond – Yes, the DBE program is under directly out of the United States Department of Transportation. And therefore, any grant recipient whether they are a port authority, tunnel, train, highway, airport, that gets grant funds from the United States Department of Transportation under their operating administration has to have a Disadvantaged Business Enterprise program when they receive more than $250,000 in grant funds in a given year.
Nancy – Okay, so why did they create the program? What is the purpose of it?
Raymond – Well for me the biggest purpose of the program it is get those small businesses opportunities so that they can grow their portfolio. Grow their resume. I’ve always said the DBE program is the way, how you take the catch out of a catch 22. You can’t get any jobs without any experience and you can’t get any experience without any jobs. So, because of the program which motivates contractors or concessionaires to seek out firms that provide goods and services that they can utilize. The program motivates them to go out and find those firms so that they can build their resume of the goods and services that they provide.
Raymond – Anyone can apply. It is kind of like all are welcome but only few are chosen. The criteria specifically takes a look at personal net worth, your company’s gross receipts, based on the Small Business Administration’s NAICS codes, North Atlantic (meant America) Industry Classification Codes System as well as your ownership. It takes a look at these criteria’s; I will get into the specifics in a second. And on paper if you can meet that criteria and then through an interview demonstrate how you meet that criteria. That is how you can get certified because you are being a certification in that you meet the criteria based on paper and what you do.
For Example, personal net worth. Your personal net worth in the DisadvantagedBusiness Enterprise or DBE program cannot exceed $1.32 Million minus the equityyou have in your business. Now the DBEprogram also has another component for those people looking at doing work inthe airport. And that is what we callthe airport concessions DBE program and the personal net worth is still thesame $1.32 million. The gross receiptsare different between the airport concessions program and the DBE program. In the DBE program your gross receipts cannotexceed $52.3 Million averaged over a three-year period. It is a little big higher… excuse me I saidthat incorrectly. In the DBE program your gross receipts cannot exceed $32million averaged over a three-year period. Whereas in the ACDBE program it is a little bit higher. Gross receipts is $53.3 million averaged overa three-year period. Thirdly based uponthe Small Business Administrations size standards under the North Atlantic(meant America) Industry Classification System (NAICS) you cannot exceed thosestandards of gross receipts annually based on what SBA deems a small business. Ialways use the example of a low voltage electrician your gross receipts in agiven year cannot exceed more than $13 million because above $13 million inannual sales the Small Business Administration does not consider you a smallbusiness.
And fourthly, the ownership of a company has to be 51% eitherwoman or minority or white male that can demonstrate that they have beensocially and economically disadvantaged. So through paper and through an on-site interview where someone comesout and will verify that you are who you are and you do what you do. That is the certification process.
Nancy – Do these numbers get adjusted, similar to how SBA adjusts the size standards? So, the number of ever get adjusted up? Or do they always stay at those levels?
Raymond – The United States Government under the United States Department of Transportation takes a look at those numbers and will adjust up or down based on inflation.
Nancy – Okay it is done by inflation. Just like SBA adjusting the size standards base on inflation. They get adjusted up. I’ve never seen them go down, they have always gone up. (both Raymond and Nancy laugh)
Raymond – We don’t want…with the way folks…the way our economy is growing, you know year in year out. Yes, you want those folks to adjust those numbers up. If we have to adjust down, we have a much bigger problem.
Raymond – Other things that. You will find is that there is a close similarity in some of the standards and criteria between what the SBA is looking at in its program versus what is looked at in the DBE, United States Department of Transportation’s DBE program.
Nancy – So you are saying that it’s the 8a program is similar to the DBE program in a lot of ways.
Raymond – Yes, it is. One of the biggest differences that I’ve found is that the DBE program looks at specific experience in what you currently have not where you are looking to grow to. But what experience you currently have and those are the areas that you are certified in. Whereas the SBA program looks at what you have done but also where you can grow to. And so, those are the two biggest differences in the program.
Nancy – Cool. So, you said something about an interview is that part of the process?
Raymond – Yes that is part of the process. It is a way of verifying and seeing exactly what you do and how you have the experience in what areas you want to provide goods and services in. Because again, a certification in the DBE program is looking at what you currently have experience in providing not what direction areas you can grow too.
Nancy – So where can there be multiple state agencies that you can apply to? Like in Utah for example, you can apply with the Utah Transit Authority (UTA), you can apply with the Salt Lake City Authority and there is another one that I can’t recall off the top of my head.
Nancy – Right. So those three authorities if you get certified in one are you good for across the state?
Raymond – No correct. In the State of Utah because the State of Utah does not have a certification program for woman and minorities business, or small businesses or veteran owned or serviced disabled businesses. The DBE certification once you are certified it is good for the whole state. Now you can get certified by one of those agencies and what happens is the certification process looks at what kinds of goods and services you are going to provide. And what’s best suited. Are you looking to do work only airports? Considering work only on highways? Were you looking to do work in transit? Or a combination of all three.
DBE On Site Interview Preparation Kit
Guidance on Calculating the Personal Net Worth of Individuals That Own Multiple Businesses (Posted – June 20, 2018)
Guidance on Recipient Responsibilities for Oversight and Monitoring of DBE Participation (Posted – August 22, 2018)
The disadvantaged owner(s) should take the time to prepare for the site visit. They should make sure that they are able to fully explain the technical side of their business and how things work. They should be able to demonstrate that they have the knowledge necessary to control the business. Enlisting the help of an attorney familiar with the certification process can help you feel confident and prepared for the questions you may face.
The site visit remains important even beyond your initial application. If successful in the certification process, the site visit report will also be used by other states if you apply for interstate certification (a.k.a. DBE certification in a state other than your home state) under 49 C.F.R. §26.85.
The site visit is a required part of the application process under 49 C.F.R. § 26.83(c)(1)(i). During COVID times, site visits have taken place via Facetime, Skype, Zoom or other video chat methods. Pursuant to guidance issued on June 29, 2021, the USDOT has instructed that site visits continue via these methods through December 31, 2021. However, during normal times these visits are in person. The representative will visit your business at its main office- be that in a physical office space or your home (for business run from a private residence – as is becoming more common these days).
Please take these visits seriously. This visit is much more than a formality. Many companies have been denied certification due to their answers to questions during site visits. Often, the interviewer determines that the applicant owner does not have the technical experience necessary to fully control the company based on discussions during the site visit. As “control” is one of the main requirements for DBE certification, this sinks the applicant’s application.
Danielle L. Dietrich, Shareholder in the Pittsburgh Office of SMGG, focuses her practice in the areas of women and diverse-owned businesses, healthcare, elder law and litigation. She has a broad range of experience in providing legal counsel and advice to her clients (both large and small), as well as having handled a wide range of disputes and litigation in Pennsylvania, Ohio and West Virginia.
What is a Disadvantaged Business Enterprise (DBE)? A DBE is a for-profit small business concern that is at least 51 percent owned by one or more individual(s) who are both socially and economically disadvantaged. For example, in the case of a corporation, such individuals must own at least 51 percent of the each class of voting stock outstanding and 51 percent of the aggregate of all stock outstanding. Also, the management and daily business operations of a DBE business must be controlled by one or more of the socially and economically disadvantaged individuals who own it.What are the criteria for DBE certification? Eligibility requirements for certification as a DBE are stated in 49 CFR, Part 26, Subpart D-Certification Standards. The following six requirements must be proved by a DBE applicant, but does not cover all the requirements found in 49 CFR, Part 26.Social and Economic Disadvantage: A disadvantaged owner must be a U.S. Citizen (or resident alien) and meet the Federal definition of socially and economically disadvantaged as defined in 49 CFR, Part 26.67. Presumptive groups include women, Black Americans, Hispanic Americans, Native Americans, Asian-Pacific Americans, Subcontinent Asian-Americans, or other minorities found to be disadvantaged by the regulations, or any individual found to be socially and economically disadvantaged on a case-by-case basis. Rules to determine social and economic disadvantage also include extending the treatment of assets held by married couples to include domestic partnerships and civil unions that are legally recognized under state law. It also codifies guidance regarding the treatment of assets transferred to an immediate family member, or to a trust a beneficiary of which is an immediate family member, for less than fair market value, within two years prior to the submission of an application for certification or within two years of a participant’s annual program review.Personal Net Worth: Only disadvantaged persons having a personal net worth (PNW) of less than $1,320,000 can be considered as a potential qualified DBE. Items excluded from a person’s net worth calculation include an individual’s ownership interest in the applicant’s firm, and his or her equity in their primary residence. Also, if an individual demonstrates that he/she is able to accumulate substantial wealth, the individual’s claim of economic disadvantage may be denied, even though the individual’s PNW is less than $1.32 million.Business Size Standard: A firm (including affiliates) must be a small business as defined by the Small Business Administration (SBA). It must not have annual gross receipts over $23,980,000 in the previous three fiscal years ($56,420,000 for airport concessions in general with some exceptions). Depending on the type of work the business performs, other lower size standards may apply Ownership: Must be a for-profit small business where socially and economically disadvantaged individuals own at least 51 percent interest and control management AND daily business operations; ownership cannot be in name only. Independence: The business must not be affiliated with another firm in such a way as to compromise its independence and control. These include, but are not limited to, such areas as personnel, facilities, equipment, financial and/or bonding support, and other resources. This means a business should be operational on its own, without support beyond what is applicable under normal industry standards. Management and Control: The socially and economically DBE owner(s) must possess the power to direct or cause the direction to the management and policies of the firm and to make day-to-day decisions, as well as long-term decisions on matters of management, policy and operations. Any delegation of duties must be revocable and where state law requires the owner to have a particular license or other credential in order to own and/or control a certain type of firm, then the socially and economically disadvantaged persons who own and control a potential DBE firm of that type must possess the required license or credential. A mere change in business structure to meet DBE requirements may not be sufficient to prove management and control.Who qualifies to be a Disadvantaged Business Enterprise? In general, to be eligible for the DBE Program, individuals must be U.S. citizens, or lawfully admitted permanent residents; who own 51%, or more of a “small business”; establish that they are both socially and economically disadvantaged within the definition of the regulation; and show through the regulation standards they control the business. The following general guidelines, taken in part from the applicable regulation (49 CFR Part 26); will help business owners determine whether they are eligible for the DBE Program: Ownership – The business must be 51% owned by a socially and economically disadvantaged individual(s). “Socially Disadvantaged” – You may be eligible if you are a member of one of the following presumptive groups — Black Americans, Hispanic Americans, Native Americans, Asian-Pacific Americans, Subcontinent Asian Americans, Women and other groups found to be disadvantaged by the Small Business Administration (SBA). Persons who are not members of one of the aforementioned presumptive groups may also be eligible if they establish their “social” and “economic” disadvantaged on an individual basis. More information on how social and economic disadvantaged is determined can be found in Appendix E of 49 CFR Part 26. A determination of whether an individual meets DBE eligibility criteria is made on a case-by-case basis. Personal Net Worth – Only socially disadvantaged persons having a personal net worth (PNW) of less than $1.32 million will be considered economically disadvantaged. Items excluded from a persons net worth calculation include an individuals ownership interest in the applicant firm, and the equity in his or her primary residence. Additional exclusions are available for owners of airport concessionaires (See 49 CFR Part 23).Business Size Determination – A firm, including its affiliates must be a small business as defined by SBA size standards. It must not have had annual gross receipts in excess of $22.41 million over the previous three fiscal years. The U.S. Department of Transportation periodically adjusts this threshold for inflation. Independence – The business must not rely on another firm or firms in such a way as to compromise its independence and control.Control – A disadvantaged owner seeking certification must possess the power to direct or cause the direction of the management and policies of the firm. The owner must also 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. Burden of Proof Allocation – Applicants carry the burden of proof regarding their eligibility and must demonstrate with a preponderance of evidence that they meet all requirements concerning group membership or individual disadvantaged status, business size, independence, ownership, and control. Additional program requirements and certification procedures are found in Regulation, 49 CFR Parts 23 and 26. What is the DBE Certification Process? Step 1 – Application is received Step 2 – Application is checked for completeness. If incomplete, the applicant is sent a letter requesting the missing information. Step 3 – Once the application is complete an on-site review is scheduled and conducted at the applicants office. During the on-site review, interviews are conducted with the owners of the firm. Step 4 – All materials submitted by the applicant and the on-site report are reviewed by the investigator, who determines if the applicant meets the eligibility standards. The investigator also reviews the work classification(s) requested and makes a recommendation regarding the adequacy of the applicants resources to perform in these work areas. Step 5 – The investigator reviews the application and makes a decision on the firms eligibility for certification in the DBE program. Step 6 – If the application is approved, the applicant is notified, in writing, of the certification approval.Is there a cost to become certified? No. There is no cost for the certification process. Where can I get a copy of the certification application? The link to download the DBE certification application is as follows: WVDOT DBE Application Firms located outside of West Virginia that are certified in their home state and applying for DBE certification in the state of West Virginia must submit the interstate application, please follow link to download: WVDOT DBE Interstate Affidavit Application.How long does my DBE certification last? Certification is ongoing, however, once certified, the business will be required to submit an annual “Annual Affidavit of No Change” and supporting documentation on the anniversary date of its original certification. This form affirms there is no change that has occurred that impacts the company’s DBE status. Why should I apply for DBE certification? DBE goals are established for projects funded by the federal government. If you are interested in these contracts, you should apply for WVDOT DBE certification.Must I complete the DBE Uniform Certification Application as well as a DBE Personal Net Worth Statement for each owner? Yes, those persons who are identified as social and economic disadvantaged individuals that make up 51 percent of the firms ownership are required to complete the application. Please follow link to download: WVPersonal Net Worth ApplicationWhat are the goals and objectives of the WVDOT DBE Program? The WVDOT Equal Opportunity Office seeks to: Ensure nondiscrimination in the award and administration of contracts. Create a level playing field on which DBEs can compete fairly for contracts. Ensure that the Departments DBE Program is narrowly tailored. Ensure that only firms that fully meet the eligibility standards are permitted to participate as DBEs. Assist in the development of firms that can compete successfully in the marketplace outside the DBE Program.What are the benefits of being a certified DBE? Some advantages to becoming a DBE certified business include: DBEs may be utilized to satisfy a DBE goal on any project with funding from the U.S. Department of Transportation (i.e. airports, transit agencies). DBEs receive statewide exposure for contracting opportunities through the DBE Directory, which provides one list of all DBE firms certified in the State of West Virginia. Prime contractors and consultants are strongly encouraged to use the DBE Directory to identify subcontractors/sub-consultants for their projects. DBEs may participate in a variety of supportive services such as training and technical assistance if they are construction and consulting firms involved in a road, highway or bridge construction or maintenance related business. Many of these services are at no cost or reduced cost to certified DBEs.How can I verify if a business is a certified DBE? The Department maintains a DBE Directory identifying all firms eligible to participate as DBEs. The DBE Directory lists the firms name, address, telephone number, and the type of work the firm has been certified to perform as a DBE. The West Virginia DBE UCP Directory is available to the public electronically, on the internet. The DBE UCP Directory is updated as additions/changes are made. Can a DBE become a prime contractor? Yes, as a DBE prime contractor, the DBE firm must also comply with the good faith efforts requirements of 49 CFR Part 26. As a DBE prime contractor, count the entire value of the work to be performed by the DBE’s own forces, as well as the work that they commit to be performed by DBE subcontractors. DBE bidders on prime contracts will be expected to make the same outreach efforts as other bidders and to document good faith efforts in situations where they do not fully meet contract goals.Do I have to be pre-qualified to be DBE certified? No, a firm is not required to be pre-qualified to become DBE certified. Contractors must be pre-qualified with the Department in order to bid for the performance of road, bridge, or public transportation construction contracts greater than $2,000,000.00. Pre-qualification is accomplished by using an application process. The Contractor Pre-qualification process results in the issuance of a Certificate of Qualification for each successful applicant which lists the approved work classes and the Maximum Capacity Rating in dollars.As a DBE prime contractor, what does it mean to be prequalified? To become prequalified, a contractor should have a “Certificate of Qualification.” To do this, the contractor must submit a Contractor’s Prequalification Statement (Contract Form SC-421) containing the information required based on the category of project. This may contain financial statements and experience records with detailed information as to available financial resources, equipment and other assets, together with an account of past experience, a record of work completed, personnel of the organization and all other facts called for in the prequalification statement. As deemed necessary, the Director of Construction may also request additional information for consideration in issuing a “Certificate of Qualification.”As a DBE how do I update information in the UCP Certified DBE database? (i.e., address, phone number, email address). The process for current DBE’ to update their information in the UCP database can be accomplished when you submit the ANNUAL “No Change” AFFIDAVIT – FOR CONTINUTING DBE CERTIFICATION” in the section of the form entitled Significant Changes: (Explain changes in the business on a separate sheet of paper and attach to this document). DBE no change affidavit As a current DBE company, how do I request additional NAICS code(s)? The process for current DBE’ to request additional NAICS codes for their DBE company can be accomplished when you submit the ANNUAL “No Change” AFFIDAVIT – FOR CONTINUTING DBE CERTIFICATION” in the section of the form entitled “New Work Area/Services – REQUEST ADDITIONAL NAICS CODES: (Request to add additional NAICS Code(s), submit copies of three executed contracts and include NAICS Code (if known). For further information on this, review NAICS website athttps://www.naics.com/search/What is the Unified Certification Program (UCP)? The UCP provides “one-stop shopping” where disadvantaged businesses that meet the DBE certification requirements and become certified are eligible to be used to meet the DBE goal requirements on any project with funding from the U.S. Department of Transportation. The UCP eliminates the need for multiple DBE certifications with recipients of funding from the U.S. Department of Transportation. How do I apply for Interstate Certification? If you are an existing DBE firm, the following documentation must be provided 1. A complete copy of the application form, all supporting documents, and any other information you have submitted to your home state or any other state related to your firms certification. This includes affidavits of no change and any notices of changes that you have submitted, as well as any correspondences concerning your application or status as a DBE firm. 2. Any notices or correspondence from states other than your home state relating to your status as an applicant or certified DBE in those states, including facts and all documentation concerning if your firm was denied certification or decertified. 3. If you have filed a certification appeal with DOT, you must provide your letter of appeal and DOTs response. 4. You must submit the Interstate affidavit application sworn to by the firms owners before a person who is authorized by State law to administer oaths executed under penalty of perjury of the laws of the United States.Note: Firms located outside of West Virginia that is certified in their home state and applying for DBE certification in the state of West Virginia, must fill out an Interstate Affidavit application. The processing time is approximately 90 days from the date the completed application and support documentation is provided.
Seek Certification through the Agency You Want To Work
So with that being in mind, you know, whether it is the highway doing the certification, or the airport doing the certification or the transit agency doing the certification it is good for all agencies that receive funds from the United States Department of Transportation. Now the biggest difference when you go outside the state other states have certification programs for the state and local municipalities. So, that particular state has one agency that that is all they do is just certifications. And with that being the case, with that certification you then can go to any municipality, any transportation agency that recognizes that certification and use that certification in that program. What we call the local program, state program or in the case of the DBE program their federal program.
Nancy – So you mentioned an MBE? Is that correct?
Raymond – Yes. MBE stands for Minority Business Enterprise or WBE – Women Business Enterprise or SBE – Small Business or Small Emerging Business Enterprise.
Nancy – So what is the difference between those and the DBE program?
Raymond –Well first and foremost does your state or local municipality have a local program? So if they don’t have a program the one thing you know that will be out there is the federal program which is the Disadvantaged Business Enterprise program.
Nancy – So that (DBE Program) is nationwide these other are state specific.
Raymond – Correct. The ACDBE program and the DBE program is going to be nationwide. The same application that you would use in one state is the same application that you would use in another state. In fact, you cannot deviate from that application and the process and the regulations and the criteria is the same all across the country. Where you get into differences or difference variations or different criteria is the Minority Business Enterprise Program, Woman Business Enterprise program, Small Business Enterprise Program the criteria maybe a little bit different or vastly different but that is by state or municipality.
Nancy – I didn’t know that, I learned something new today.
Raymond – And that’s why your doing this podcast so that folks all can be educated.
Nancy – Yes, I am trying to educate everyone on everything that is available to them. Because I think that your program offers small businesses such a unique opportunity. Where they can go work with a prime contractor and get some experience behind them and later on become a prime contractor and be able to help others along the way. That is what this country is all about. Equal opportunity for everyone.
Raymond – You are going to find airports, transit agencies, highways, somewhat, they are an end user. And when the agency sees themselves as an end user and they are proactive on the support of small business. As an end user you use a lot of different various different services and that’s where the opportunity comes in for small businesses. If that agency looks at themselves as we only do roadway work and it’s just this, an this, an this and it’s there then that limits the opportunity. Whereas if they see themselves as an end user we use all these different various goods and services and we understand the economic impact to the local community and that local economy. That is where you are going to see multiple opportunities for small businesses to thrive and grow and compete in the mainstream.
Nancy – Is there some opportunities and trainings available to these DBE businesses?
Raymond – Depending on the states a lot of department of transportations at state agencies, specifically highway state agencies have grant funds to provide support services to help with the training for small businesses to understand what the opportunities are and where they can be found as well as how that small business can access that service. You just have to find out who has those funds and have supportive services programs.
Nancy – What happens if it is not offered in the state that they are in? Can they go to another state and receive that assistance?
Raymond – They can go to other states, but they can also take a look at their community. You will find that a lot of communities’ programs that are initiated to help small businesses. Now they may be in areas of high population of based on race, Hispanics, African American, Asian Americans, but the services that they provide even though they may be directed towards a specific type of community based on race or gender. They are going to have their doors open to anyone that is a small business that is looking to grow and understand how they can do business.
So that is another place that I have found in my experience across the country is another place to go where if you can’t find free resources provided by your state or that city on how you can grow your business. That would be local non-profit businesses that partner with a lot of agencies to provide services to small businesses. It is just a phone call away. Now a days, it’s just matter of saying “Hey Google” or “Hey Siri” or “Hey Whatever” or smart phone whatever. Whatever smartphone you have. It is just a statement to that smartphone to assist.
Nancy – Well that is true. It is just a Google search away is what I always say.
Raymond – (Laughs) Yes very much so.
Nancy – So what happens after I apply to the program and you have done your interview how long does it take for my application to be processed?
Raymond – The application will be processed will be based upon if all the documents that are part of the checklist that is part of the application you have provided. And with that being the case under the regulations under the DBE program the certifying agency, agent official has 90 days to complete that application. Now that is just to give you the timeframe. Now things can happen quicker, things can take a little bit slower it all depends on the number of applications currently being processed by that certification official. But if you hand in all of the necessary documents that clock starts ticking.
Nancy – So you said something about a checklist? Is that checklist available? Can anybody download the application or is it available online?
Raymond – Well the benefit of the DBE Program or ACDBE program the application is the same application that you will find whether you are in Portland Maine or Portland Oregon, or Seattle or down in Corpus Christy. It’s the same application and the last page of the application contains a checklist of those business documents that need to be a part of your application. And these are business documents very common documents that you would have in your business. Examples: business license, if you have a loan, copy of the loan, operating agreement or a business agreement on how you are structured, what you are looking at doing, financials as well as your taxes. As well as your website or telephone numbers or fax numbers or how does someone find your location.
Nancy – So it is your business documents that a business owner should have.
Raymond – Correct, should have.
Nancy – So all the documents that should be readily available. So, do you review the finances every year or do you get re-certified at all? Or once you are certified you are certified. How long is it good for?
Raymond – Well in the DBE program which is different from the SBA’s programs. In the DBE program you are in the program. Once you get certified in the program you are in the program until you graduate because you exceed your personal net worth or gross receipts, or you do not meet on of the basic criteria for the certification. Otherwise you are in the program for life whereas in the SBA’s program, 8(a) program it is a nine-year program.
Nancy – I am assuming that you re-certify every year or every three years? How does that work?
Raymond – In the DBE Program per the regulations after you are certified you have to provide an affidavit that states that you currently meet the certification standards annually on your anniversary date. Then there are some other documents that you have to provide along with that affidavit. As long as you are providing that annual update and those requested documents on your anniversary date or the date specified by your certifier you are still within the program.
Nancy – So what should I do after I am accepted into the program? How do I market myself to these prime contractors?
Raymond – Well first and foremost in your state identify, do your research. Which agencies currently receive funds from the United States Department of Transportation? Or what agencies receive funds through one of the larger agencies? Whether it is Department of Highway, transit or airports because you can have some recipients in a given state that they receive funds through an airport, and they are a separate recipient.
Identifying Potential Clients
So, identifying those recipients with that then take your letter or certification if you received one, do a letter that says hello, I am who I am, this is what I do, I would like to meet you, I understand that you are a grant recipient from the United States Department of Transportation, I can provide these goods and services.
I would like to schedule a time to talk with you whether it is by phone or come to your office to visit with you and sit down with you. Take those proactive steps find out which agencies are having an open house on the goods and services that either they will be forecasting to purchase in the upcoming year. Attend those open houses. Do some networking at those open houses. Those opportunities to connect and get yourself out there as well as schedule appointments to meet with people go a very long way in how you can utilize the certification to grow your business.
Nancy – So it sounds very similar to what I try to teach people when they market to the federal government. It is basically the same process it is part of the federal government. Right? You are going to have to go out and market yourself with your capability statement or a little resume about your business in other words. And you are going to market to all those businesses that receive federal funds.
Raymond – Correct. And you are going to find that taking a further step then that is creating that document that very quickly and shortly that also says this is the goods and services that I provide.
This is my experience. This is where my company is located in. And I am looking forward to meeting and talking to you. Because you can get a phone call on the construction side or you can get a call or see an advertisement from a general contractor that is looking for DBE firms for a particular project that has federal funds in it. Or you happen to attend an expo and those businesses are located at that expo.
Or you are on a networking board and the opportunity presents itself. That way once you get that email address you can send or a phone number you can make that call to follow up. That’s all about getting your business in front of someone that makes them aware of what you do and what you provide. And even if the opportunity does not exist for them, they may know somebody else that is looking for the type of goods and services that you provide, would like to provide you information on the goods and services that I provide.
Nancy – Do they have to have a subcontracting plan these prime contractors? So when they bid on a job they know that they are going to select these DBEs to do business with? Or do they wait till they get the project and after you all make the determination of what percentage has to be set-aside for DBEs? How does that process happen?
Raymond – Well, first of all let’s back up for a second, the language that we use in the DBE program is different than what is used in a lot of federal programs including SBA.
In the DBE program there are not any set-asides there are a goal, a target. And that agency that is receiving the funds they have a target that they are looking to meet so that they can meet their overall based on the contracts that they have in a given year. In the DBE program it is not a set-aside because that is illegal in the DBE program. However, the agencies are very much aware that if they don’t meet their goals year after year, opportunity after opportunity, they also get questioned because per the regulations those agencies have to make good faith efforts towards meeting their goals.
FAQ
What are DBE goals?
What are the benefits of being a DBE?
- They Help You Get Government Contracts. …
- Public Funding for Transportation Can Rise. …
- Applying to Be a DBE is Easy.
What is DBE in project management?
What is DBE diversity?
