Small Business Enterprise Program Participation Plan

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1 EXHIBIT H Small Business Enterprise Program Participation Plan Version ODOT is an Equal Opportunity Employer and Provider of Services

2 TABLE OF CONTENTS I. PURPOSE... 1 II. POLICY... 1 III. APPLICABILITY... 2 IV. DEFINITIONS... 2 V. ELIGIBILITY FOR SBE CERTIFICATION... 2 VI. CERTIFICATION PROCEDURES FOR SMALL BUSINESS ENTERPRISES... 3 VII. APPROVAL OR DENIAL OF CERTIFICATION AS A SMALL BUSINESS ENTERPRISE... 4 A. Initial Application... 4 B. Removal/Decertification... 4 VIII. FOSTERING SMALL BUSINESS ENTERPRISE PARTICIPATION... 5 IX. SET ASIDES... 5 X. SEVERABILITY... 5 XI. REVIEW... 6 XII. AUTHORITY... 6 EXHIBIT 1 TIMELINE... 7 EXHIBIT 2- SBE APPLICATION... 1 Section 1: Company Information... 1 Section 2: Supporting Documents Checklist... 2 Section 3: Declaration ODOT is an Equal Opportunity Employer and Provider of Services

3 SMALL BUSINESS ENTERPRISE PROGRAM PARTICIPATION PLAN I. PURPOSE The Ohio Department of Transportation (ODOT) has established a Small Business Enterprise (SBE) program in order to ensure all businesses, specifically small businesses, receive adequate opportunities to participate in ODOT contracting and consulting activities as prime contractors. ODOT is required by 49 Code of Federal Regulation (CFR) Subsection to implement a SBE Program in order to meet the maximum feasible portion of its Disadvantaged Business Enterprise (DBE) goal through race-neutral means in accordance with regulations of the U.S. Department of Transportation (USDOT) 49 CFR Part ODOT has received Federal financial assistance from the US Department of Transportation, and as a condition of receiving this assistance, ODOT has signed an assurance that it will comply with 49 CFR Part 26. II. POLICY As specified in 49 CFR 26.39, ODOT has created a program to foster small business. As specified in 49 CFR 26.51, the program is designed to ensure that the maximum feasible portion of the overall DBE goal is met by using race-neutral DBE participation. The program is a race-neutral small business set-aside program which restricts competition on certain prime contracts to only small businesses, regardless of the gender and ethnicity of the owners. The program will facilitate competition and small business participation on federally assisted ODOT contracts. Certified DBE firms that are also certified as SBE will be counted toward race-neutral participation in the program and will contribute to attainment of the overall DBE goal. Race-neutral DBE participation includes any time a DBE wins a prime contract through customary competitive procurement procedures or is awarded a subcontract on a prime contract that does not carry a DBE contract goal. SBE Program Participation Plan ODOT Page 1 of 7

4 III. APPLICABILITY This policy applies only to ODOT construction and consultant contracts funded in whole or in part with federal financial assistance. This policy is not applicable to the award of ODOT contracts for the purchase of commodities or on any one hundred percent (100%) state-funded contracts. Applications and questions regarding eligibility as a SBE should be addressed to: Office of Small and Disadvantaged Business Enterprise Division of Opportunity, Diversity & Inclusion Ohio Department of Transportation 1980 West Broad Street, MS 4190 Columbus, Ohio IV. DEFINITIONS ODOT will adopt the definitions contained in 49 CFR Part 26.5 and 13 CFR (c) and for this policy, except as otherwise set-forth herein. Small Business Enterprise (SBE): A small business concern in the construction and/or construction related consultant services industry: which is at least 51% owned by one or more individuals whose personal net worth and adjusted gross income do not exceed the amount stated in 49 CFR Part 26.67, or in the case of any publicly-owned business, at least 51% of its stock is owned by one or more individuals whose personal net worth and adjusted gross income do not exceed the amount stated in 49 CFR Part 26.67; and (a) whose management and daily business operations are controlled by one or more of the owners whose personal net worth and adjusted gross income do not exceed the amount stated in 49 CFR Part 26.67; and (b) whose annual receipts for the firm averaged over the most recent three years does not exceed $15,000,000 (construction firms) or $7,000,000 (construction related consultant services firms). V. ELIGIBILITY FOR SBE CERTIFICATION In order to be eligible for certification, the firm must be a for profit business that meets the SBE definition set forth in Section IV. A firm s eligibility shall be determined by utilizing the certification procedures and application process outlined in 49 CFR Part 26 or as otherwise set-forth herein. SBE Program Participation Plan ODOT Page 2 of 7

5 VI. CERTIFICATION PROCEDURES FOR SMALL BUSINESS ENTERPRISES The SBE Certification Program will be administered by ODOT in a manner similar to the administration of the DBE Certification Program. The certification criteria will follow the process outlined in 49 CFR part 26, but without the consideration of the gender and/or ethnicity of the firm s owners. A. A business may apply to ODOT at any time to be certified as a SBE. Such application must be made on the application form supplied by ODOT. B. If a business is to be considered a SBE for the purpose of bidding on and/or being awarded a SBE set-aside contract, the business must be certified by ODOT at the time of bid opening. 1. A certified SBE firm must also be properly prequalified with ODOT, in accordance with Ohio law and ODOT policies and procedures, at the time of bid opening. 2. A certified SBE firm must perform a commercially useful function. The SBE must perform or exercise responsibility for at least 30 percent of the total cost of its contract with its own work force. If the SBE subcontracts a greater portion of the work of a contract than would be expected on the basis of normal industry practice for the type of work involved, ODOT must presume that it is not performing a commercially useful function. 3. A Joint Venture may bid on and/or be awarded a SBE set-aside contract provided that the Joint Venture consists of two or more properly certified SBE firms and provided the Joint Venture is otherwise properly prequalified in accordance with Ohio law and ODOT s established prequalification specifications, policies and procedures at the time of bid opening. C. All applications must be completed in their entirety before they will be considered by ODOT. If an applicant knowingly supplies false or inaccurate information, the applicant shall be disqualified, and may be subject to further penalties as provided by law. D. The business, or any principal owner of the business, must not have been debarred or convicted of bid-related crimes or violations within the past six years in any state or federal jurisdiction, or be under notice of intent to debar in any jurisdiction. SBE Program Participation Plan ODOT Page 3 of 7

6 VII. APPROVAL OR DENIAL OF CERTIFICATION AS A SMALL BUSINESS ENTERPRISE A. Initial Application A. When an applicant is approved by ODOT as a SBE, the business will be notified in writing of such certification. The certification shall be effective as of the date of approval and shall remain valid unless revoked by ODOT. SBE firms shall be required to provide updated information and complete a No Change Declaration each year, if applicable, for renewal of SBE certification. ODOT may conduct a certification review of a certified SBE firm, including a new on-site review, three years from the date of the firm's most recent certification, or sooner if appropriate in light of changed circumstances (i.e., of the kind requiring notice under paragraph (i) of this section), a complaint, or other information concerning the firm's eligibility. If there are grounds to question the firm's eligibility, ODOT may conduct an on-site review on an unannounced basis, at the firm's offices and jobsites. B. When an applicant is denied certification as a SBE, the business shall be notified in writing of the reasons for that decision. The burden of proof of eligibility shall be upon the applicant in any such proceeding. The applicant is not prohibited from contracting with ODOT during the pendency of its appeal; however, it will be unable to bid on and/or be awarded an SBE set-aside contract during this time. B. Removal/Decertification 1. When ODOT intends to decertify a SBE for failure to meet the requirements of this program, or as the result of a third-party challenge, the business shall be notified in writing of ODOT s intent to decertify and the reasons why. An investigation may be conducted by the Office of Small and Disadvantaged Business Enterprise to determine the validity of any third-party allegations. If a preliminary determination is made to decertify the firm, the firm will be given an opportunity to contest the proposed decertification/removal via written documentation and, if warranted, an in-person meeting. The business must contest such proposed action in writing to ODOT within 30 days of receipt of said notice of Intent to Decertify. Following the review, the SBE firm will be notified in writing of ODOT s determination. The business shall be eligible to participate as a SBE during the pendency of its appeal to ODOT. SBE Program Participation Plan ODOT Page 4 of 7

7 VIII. FOSTERING SMALL BUSINESS ENTERPRISE PARTICIPATION A. ODOT shall facilitate SBE participation on ODOT construction and consultant services contracts by the following means. 1. Evaluate ODOT s prequalification requirements to ensure all of the prequalification requirements are necessary and do not act as an obstacle hindering a SBE from becoming prequalified and being able to bid as a prime contractor. a) ODOT will encourage all firms to become prequalified. 2. Continue to analyze contracts to ensure that they are not unjustifiably bundled. In determining whether a contract is unjustifiably bundled, ODOT may consider the following criteria. a) Level of risk associated with maintaining smaller-sized projects vis-à-vis a bundled contract. b) The ability to create stand-alone projects that are within work areas having a significant pool of ready, willing, and able SBE firms. 3. Examine the possibility of facilitating joint ventures among SBEs to bid on contracts. 4. Exploring best practices to share the letting information with SBEs. IX. SET ASIDES ODOT will set aside bid opportunities with cost estimates not to exceed $2,000,000 for SBE certified firms. X. SEVERABILITY If any section, subsection, provision, clause, or portion of this Program is adjudged unconstitutional or invalid by a court of competent jurisdiction, the remainder of this Program shall not be affected thereby. SBE Program Participation Plan ODOT Page 5 of 7

8 XI. REVIEW The operation of the Program contained herein and the need for its continuation will be reviewed by ODOT annually. XII. AUTHORITY 49 CFR 26 and Subsections 26.1, 26.5, 26.23, 26.39, and SBE Program Participation Plan ODOT Page 6 of 7

9 EXHIBIT 1 TIMELINE TIME PERIOD January 2015 June 2015 July 2015 Spring 2016 TASK Begin process of hiring additional staff to certify SBE firms Begin outreach efforts to construction and consultant community advising of the SBE program. Begin certifying firms that apply for SBE certification. Begin selling SBE set-aside construction and consultant contracts SBE Program Participation Plan ODOT Page 7 of 7

10 EXHIBIT 2- SBE APPLICATION The purpose of the SBE Certification Application is to verify eligibility in the program for the owner(s) and company. This information is required to become certified as a Small Business Enterprise. ELIGIBILITY REQUIREMENTS AND CERTIFICATION PROCESS: All firms must complete the application form. DBE certified firms that meet the size standards are rebuttably presumed to be eligible for SBE Certification. Regardless of gender and ethnicity of the firm s owner, the company and ODOT will follow the certification procedures and application process outlined in 49 CFR Part 26. This may include a site visit to the applicant s primary business location. A SBE is: 1) A firm 51% or more owned and controlled by an individual whose personal net worth and adjusted gross income do not exceed the amount stated in 49 CFR Part ) A for-profit business whose annual receipts for the firm averaged over the most recent three years does not exceed $15,000,000 (construction firms) or $7,000,000 (construction-related consultant services firms). To complete this document: 1. Enter the Company Information in Section Check the appropriate box for documents in Section Provide supporting documents as required. 4. Sign and date the Application. Submit the entire document with supporting documents to your certifying agent with the application. Section 1: Company Information 1. Legal name of business: 2. Other names used by business: 3. Website (if have one): 4. Federal tax ID: 5. Company phone #: 6. Mobile phone #: 7. Company fax #: 8. address: 9. County (only if an Ohio company) 10. Street address of company (No P.O. box): City: State: Zip: 11. Mailing address of company (if different): City: State: Zip: SBE Program Participation Plan E-2 ODOT Page 1

11 Section 2: Supporting Documents Checklist In order to complete your SBE certification, you must attach copies of all of the following documents as they apply to you and your company. Send individual taxes ONLY if your firm s business structure requires it (i.e. Sole Proprietor, Managing Member LLC, etc.) All Applicants Signed Federal Business Taxes for the past three years (copies of all schedules and forms referenced by the tax returns must be included). Signed Federal Individual Taxes for the past three years (copies of all schedules and forms referenced by the tax returns must be included). Personal Net Worth State (exclude equity in personal residence and equity interest in the firm) Section 3: Declaration I declare, that as an owner, I have full knowledge of the operation of my firm and that to the best of my knowledge and belief, the information submitted to the Ohio Unified Certification Program to support my firm s certification as a Small Business Enterprise is true. The gross income for my firm is as shown below. I declare that the firm meets the Small Business Administration (SBA) criteria for being a small business concern and its number of employees and average annual gross receipts (as defined by the SBA rules) over the firm s previous three fiscal years do not exceed $15,000,000 for construction firms or $7,000,000 for construction-related consultant services firms. Legal name of business: Year: Firm s Gross Income: I declare that each owner on whom the firm is relying for certification in the program does not exceed the personal net worth limit of $1.32 million or the adjusted gross income limit of $350,000 (Average AGI over the most recent three year period). (Attach additional signature pages for each owner). I recognize and accept the statements above governing the consideration of this declaration and the maintenance of my firm s certified status. I agree to provide written notice to the certifying agency or Unified Certified Program (UCP) of any material change in the information contained in the original application within 30 days of such change (e.g., ownership, address, telephone number, etc.). By my signature, I declare that I have read and understand this statement and that I have the authority to sign this declaration and that the responses, foregoing statements, and accompanying documents are true, complete, and correct and include all materials requested under penalty of perjury under the laws of the United States; and further that a material or false statement or omission made in connection with the application is sufficient cause for denial of certification, revocation of a prior approval, initiation of suspension or debarment proceedings, and may subject the person and/or entity making the false statement to any and all civil and criminal penalties available pursuant to applicable federal and state laws. Name of Firm: Authorized Representative Print Name and Title: Signature: Date: OFFICE USE ONLY Due Date Date Reviewed Certifying Agent Certifying Agency Form SB-1 Created SBE Program Participation Plan E-2 ODOT Page 2

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