Disadvantaged Business Enterprise (DBE) Program. Florida Department of Transportation Equal Opportunity Office

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1 Disadvantaged Business Enterprise (DBE) Program Florida Department of Transportation Equal Opportunity Office

2 Disadvantaged Business Enterprise Program True or False: If I am a Hispanic female, my 501(c)(3) company can be certified as a DBE. 2

3 Disadvantaged Business Enterprise Program FALSE 3

4 Disadvantaged Business Enterprise Program Governed by 49 CFR Part 26 Definition: DBE means 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 or, in the case of a corporation, in which 51 percent of the stock is owned by one or more such individuals; and Whose management and daily business operations are controlled by one or more of the socially and economically disadvantaged individuals who own it. 4

5 DBE Certification Process New Applicant DBE Application Received & Assigned (90 days to process) * If Application is Complete* Confidential Desk Review Conducted Additional Information Collected On-site Review Conducted Facts and Concerns gathered File given to Certification Manager (by the 60 th day after all information received and on-site conducted) 5

6 DBE Certification Process New Applicant Certification Manager Reviews Manager, EOO, Approves or Denies 6

7 DBE Certification True or False: As a certified DBE, I am prequalified to do work in the work groups that are approved by the EOO in my certification letter. 7

8 DBE Certification FALSE 8

9 DBE Certification Certification is not a prequalification Certification is for Specific Types of Work Burden of Proof on Applicant Once Certified, Burden shifts to Us 9

10 Socially Disadvantaged Presumed Groups Women Black Americans Hispanic Americans Native Americans Asian-Pacific Americans Subcontinent Asian Americans Others if Documented 10

11 Socially Disadvantaged Individuals Must be a U.S. Citizen or Permanent Resident Alien Must Show Ownership 51% by Disadvantaged Owner Real & Substantial; Not Just on Paper Contribution of Capital or Expertise Must Control Business Independent Does Not rely on Others Makes Day to Day & Long Term Decisions 11

12 Economically Disadvantaged True or False: My family & I just moved into a $3.2M home on the coast & I won a million dollars in the lottery. I can still run my DBE company. 12

13 Economically Disadvantaged TRUE 13

14 Economically Disadvantaged Personal Net Worth At or Below $1.32M Each Qualifying Owner Exclude Ownership in Business Exclude Equity in Primary Residence 14

15 Certified DBEs (As of 1/31/13) Black Americans 284 (24.46%) Hispanic Americans 280 (24.12%) Native Americans 20 (1.72%) Asian Pacific Americans 55 (4.74%) Subcontinent Asian 40 (3.45%) Women 481 (41.43%) Other 1 (0.09%) Total

16 Certified DBEs (By District) District 1 79 (6.80%) District (9.30%) District 3 97 (8.35%) District (14.13%) District (19.64%) District (11.11%) District (12.40%) Out of State 212 (18.26%) Total

17 Reasons to use a DBE Contractors get 4 bonus points on contractor grading Recognition from FDOT Secretary (Letters) Recognition & Award at FTBA Annual Convention Recognition & Award at FICE Annual Convention 17

18 Reasons to use a DBE (cont.) DBE % s Reported in Monthly Performance Review Meeting with District Secretaries Publish Reports and % s on Internet Letter Grades for Primes Conducting DBE Utilization Assessments Increases Competitive Pricing Good for Florida s Economy 18

19 Accomplishments Since Race Neutral Federal DBE Federal % State % Combined % Fiscal Year Goal Achieved Achieved Achieved % 8.62% 11.55% 10.10% % 5.10% 8.35% 6.57% % 7.83% 8.61% 8.35% % 7.55% 7.92% 7.78% % 8.03% 7.50% 7.72% % 8.06% 9.11% 8.71% % 8.15% 9.96% 9.35% % 7.75% 9.49% 9.00% % 8.16% 10.00% 9.08% % 8.33% 10.13% 8.79% % 8.50% 13.63% 10.02% % 10.31% 12.71% 11.45% 19

20 What the 2012 percentage means in $$ Federal DBE Federal % State % Combined % Fiscal Year Goal Achieved Achieved Achieved % 10.31% 12.71% 11.45% $3,280,955,375 awarded for Federal & State projects 11.45% Committed to DBEs $375,566,281 in DBE Participation 20

21 BUSINESS DEVELOPMENT INITIATIVE Florida Department of Transportation 21

22 BUSINESS DEVELOPMENT INITIATIVE BACKGROUND Purpose: to increase competition move subs to primes Began in July 2006 (District Two) January 2007 in all districts FHWA approved in March 2009 March 2012 became the Small Business Component of the DBE Program Plan 22

23 BUSINESS DEVELOPMENT INITIATIVE STRATEGIES Reserve contracts for small businesses Contracts are under $500,000 Modified pre-qualification requirements Waive bonds on contracts of a non-critical nature 23

24 BUSINESS DEVELOPMENT INITIATIVE ELIGIBILITY Meet USDOT definition of a small business SBA size standards Capped by USDOT at $22.41 In the process of revising Submit notarized affidavit Provide references Professional Services must still be prequalified 24

25 BUSINESS DEVELOPMENT INITIATIVE RESULTS RESERVED CONTRACTS 145 contracts reserved 40 professional services 69 construction 36 maintenance $32 Million reserved $12 million in professional services $14 million in construction $6 million in maintenance 25

26 BUSINESS DEVELOPMENT INITIATIVE RESULTS RESERVED CONTRACTS 82 different small businesses awarded contracts 24 or 29% were DBEs 36 or 44% had their first FDOT contract 19 small businesses were awarded multiple contracts 5 were DBEs 6.4% of professional services contracts were reserved Goal is 10% 26

27 BUSINESS DEVELOPMENT INITIATIVE Contracts By Fiscal Year (145 Total) Contracts by Number Fiscal Year 27

28 BUSINESS DEVELOPMENT INITIATIVE Contract Dollar Amount By Fiscal Year ($31,740,383 Total) $9,000,000 $8,000,000 $7,000,000 $8,258,361 $7,253,312 Dollar Amount $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,815,380 $5,803,520 $5,049,411 $2,000,000 $1,961,400 $1,000,000 $598,999 $0 Fiscal Year 28

29 BDI PROGRAM For a list of reserved contracts, you can visit Contracts.shtm For more information on the BDI, please visit di.shtm or fdot.bdi@dot.state.fl.us 29

30 Websites Equal Opportunity Office DBE Certification Application & DBE Directory Contractor & Consultant DBE Utilization Letter Grades Business Development Initiative (BDI) Reserved Projects 30

31 Websites Blackmon Roberts Group (Supportive Services Provider) Florida A&M University Construction Management Development & Bond Guarantee Programs Southern Florida Minority Supplier Development Council /Ariel Business Group FDOT DBE Specialized Development Program 31

32 Contacts For Certification, DBE & BDI Programs Arthur Wright Manager Equal Opportunity Office (850) Victoria Smith DBE Certification Manager (850) Tom Rush DBE Program Manager (850) Terry V. Watson DBE Program Specialist (850) Dwayne Moore Business Development Specialist (850)

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