DBE: Disadvantaged Business Enterprise Program DBEs are generally small firms owned and controlled minority or women.
DBE Program • Required for FAA grants of $250,000 or more. • Generally prepared by NDA. • Must include: • Policy statement • Liaison officer • DBE financial institutions • Prompt payment clause • DBE directory • Monitoring and enforcement
DBE Program: Overall Goals • The overall goal is % of contracts that will be completed by a DBE. • NDA can also prepare this. • NDA’s standard goal setting procedure: • A: count the DBE contractors in your area • B: count all contractors and subcontractors in the same area • Divide A by B to get % goal
DBE Program: Contracts Goals • Separate goals for construction & engineering contracts. • Total of all contracts should equal Overall Goal. • Individual Contract Goals will NOT be the same % as Overall Goal.
DBE Program: Contract Clauses • Required clauses to be included verbatim: • Nondiscrimination • Prompt Payment • Notice & Proposal requirements • Termination of DBE subcontract • Special Conditions • These Clauses are already in NDA’s sample documents.
DBE Program: Bidders List • Required Components. • Firm name • Firm address • Firm’s status as DBE or non-DBE • Firm’s age • Firm’s annual gross receipts.
DBE Program: Contract Award • Two Questions to ask before award • 1. Did the bidder provide the following? • Names & addresses of DBE subcontractors • Description of DBE’s scope of work • Dollar amount of DBE subcontract • Bidder’s written commitment to use DBE • DBE’s written confirmation • If contract goal not met, good faith efforts. • 2. Did the bidder meet the goal or make a good faith effort to meet it?
DBE Program: Counting DBE Participation • Count only work done by DBE’s own forces. • DBE must perform a commercially useful function. • DBE trucker can not lease from non-DBE firm. • Material & supplies generally count 60%.
DBE Program: Monitoring • Monitor prompt payment of primes to subs. • Monitor that the DBE subs originally proposed are on the job. If not, changes must have airport/FAA approval. • Monitor that the DBE subs perform work that counts as participation.
DBE Program: Final Results • NDA/FAA form to verify that DBEs have been paid and calculate actual DBE achievements. • If DBEs used on contracts without a goal, keep a record of this. • Complete FAA’s annual survey.
DBE Program: Unified Certification • By March 2002, Dept. of Roads, airports and possibly a few cities must agree to ONE combined certification program.
DBE Program: Sample Program • NDA has sample program to meet all these requirements. • Insert Sponsor’s name and DBELO. • Add Appendix A: Organizational Chart. • Add Appendix B: Overall DBE Goal.