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      USDOT
  Disadvantaged
Business Enterprise
  (DBE) Program
   DBE Supportive Services
Equal Employment Opportunity Office
  Idaho Transportation Department
  The DBE Program …

 Is a Federal Program (USDOT)
  administered by a State Agency (ITD)
 Applies to all transportation modes
   Highway, Aviation & Transit
 Helps disadvantaged business owners
  compete for transportation-related
  contracts                              3
   What’s It Supposed
         to Do?
 Help remove barriers to DBE working
  on USDOT-assisted projects
 Assist in the development of firms so
  they can successfully compete outside
  the program
 Ensure only firms meeting eligibility
  standards can participate as DBEs
                                          4
   What Exactly Is a
       “DBE”?
  A DBE is a small, for-profit
  business concern that is at
least 51% owned & controlled
  by socially & economically
  disadvantaged individuals.
                                 5
    What Do DBEs
     Do For Us?
 Consulting, contracting &
supplying for the planning,
design and construction of
highways, airports & public
  transportation systems
                              6
      What Do We Do
        For DBEs?
 Training & Marketing Grants
 Workshops
 Short-Term Lending Program
 One-on-One Bidding/Estimating
  Assistance
 Inclusion in DBE Directories
                                  7
      What Do We Do
        For DBEs?
 Monthly DBE Newsletters
 Free Plans & Specs for
  subcontractors
 Invitations to Bid from / Referrals
  to Prime Contractors
 Non-ITD Project Notices
  Notification
                                        8
  More Advantages of
     Being a DBE
 DBE Participation Goal on Federal-
  Aid Transportation Projects (Design
  & Construction)
    DBE Annual Participation Goal for
     FFY2009 is 10.5% for Highways,
     Aviation & Transit

                                         9
  Race/Gender-Neutral
 9th Circuit Court of Appeals decision in
   Western States Paving Co. v. WSDOT in
   2005
   DBE Program not “narrowly tailored”
   State must produce evidence to support
     goal-setting
 USDOT instructed western states to
   cease goal-setting until disparity studies
   in place
   All current participation is “race/gender-
     neutral”                                    10
 Qualifying as a “DBE”

 Firm is existing, operational & for
  profit
 Firm is independent & self-sufficient
  No “umbilical cord” relationships
 Small Business Concern
  Size limits based on SBA’s standards
    per NAICS code
   Cannot exceed USDOT’s $22.41
    million ceiling                       11
 Qualifying as a “DBE”

 Presumed to be “Socially &
Economically Disadvantaged”
 Asian-Indian     Hispanic
  Americans         Americans
 Asian-Pacific    Native
  Americans         Americans
 Black Americans  Women
                                12
 Qualifying as a “DBE”

     Case-By-Case Basis
          (White Males)
 Chronic & Substantial Social
  Disadvantage in the U.S.
 Negative impact in business
  world because of social
  disadvantage                   13
Qualifying as a “DBE”

         HOWEVER:
    Presumption of “social &
   economic disadvantage” is
rebutted if adjusted personal net
   worth – excluding primary
residence & interest in applicant
  business – exceeds $750,000
                                    14
 Qualifying as a “DBE”

 Owner has Operational &
  Managerial Control
   No limits or restrictions
    Can delegate, but still retain ultimate
     authority
 Owners can establish at least 51%
  ownership
   Documentation of capital contributions
                                               15
 Becoming/Remaining
       a DBE
 Certification Process
    DBE SS Coordinator reviews app,
     requests additional info as needed
    Committee makes eligibility
     determination
    Decisions can be appealed
 Annual “No Change” Affidavits
 Cert Renewal every 3 Years
                                          16
 Why Do Applications
    Get Denied?
 Lack of Documentation
 Lack of Experience
 Lack of Control
 Emerging rather than
  Operational
                          17
          Graduation

   Ideally, DBEs outgrow the
            Program:
 Exceed business size or PNW limits
 Build working relationships with
  primes outside DBE program
 Acquire managerial & technical skills
  to successful compete with non-DBEs
                                          18
                Liz Healas
        Phone: (208) 334-8567
        Toll-Free: (800) 634-7790
e-mail: elizabeth.healas@itd.idaho.gov
if you would like further information about the
                DBE Program.