Each year, the Federal Highway Administration or (FHWA) allocates
approximately $40 billion dollars in Federal funds to State Departments of
Transportation
or DOTs
and Local Public Agencies (or LPAs) to construct and maintain our nation's
roadways.
As a Federal agency, FHWA has the responsibility to ensure that these
public funds benefit everyone and do not result discrimination prohibited by
Title 6 of the Civil Rights Act of 1964.
Even though this is law banned discrimination in federally funded
programs,
by the 1980's the USDOT found
that discriminatory practices still existed in transportation contracting.
In a effort to remedy the situation,
the USDOT relied on the principles of Title 6
to create a program to "level the playing field" for minority and women owned firms
to compete
for DOT-funded contracts.
That program is now called the Disadvantaged Business Enterprise Program or
the DBE Program, it is no longer limited to minorities and women.
The DBE Program applies to State and Local Public Agencies that receive funds from
FHWA
the Federal Transit Administration(FTA),
and the Federal Aviation Administration(FAA).
As a of condition of using Federal-aid dollars for your LPA construction
projects, it is important that you understand what the DBE Program is,
how it relates to your contacts, and what your specific role is for the program.
As recipient of Federal funds,
State DOTs must comply with USDOT
DBE Program regulations ensure compliance
by LPAs that award or administer
DOT-assisted contacts.
The DBE regulations have six parts which comprise a DBE Program.
Like a puzzle, all pieces fit together.
Each piece is very important!
There are General requirements in the regulations for establishing a DBE
program,
the objectives, and required records and reports.
Most importantly, the regulations require the State to include DBE
Assurances in every contract,
and in each financial agreement with LPAs.
LPAs must, in turn, ensure that these assurances are in all prime
contracts and subcontracts.
DBE Assurances hold recipients contractually accountable
to comply with the State's approved
DBE Program.
Non-compliance can lead to the loss of Federal funds for termination of
contracts.
The requirements to
properly implement the DBE Program in each state are prescribed in the
Administrative Requirements.
These include:
designating a DBE Liaison Officer, establishing
prompt payment and return retainage requirements, and
developing a monitoring and enforcement mechanism.
The monitoring and enforcement mechanism verifies that the work
committed to DBEs is actually performed by DBEs,
and their payments are consistent
with their approved contracts.
State DOTs must ensure that all program participants,
such as you, the LPA, comply with the DBE Program requirements.
LPAs must perform "monitoring and enforcement" activities on Federal-aid
projects.
The regulations require the State DOT to set an annual overall DBE
participation goal
and to explain how they will meet the goal.
This section also explains how DBE participation is counted towards DBE
goals.
It defines commercially useful
function and describes good faith effort procedures when a prime contractor can
not meet a DBE goal in a contract.
These are contract administration requirements that LPAs must abide by.
Other videos are available describing these requirements.
Certification is a key component of the DBE program.
A primary objective of the program is to ensure that "only firms that
'fully' meet the eligibility standards are permitted to participate as DBE's."
This part of regulation establish the eligibility criteria to
qualify as a DBE,
which are:
1. The firm must be a small business, for profit
2.
The firm must be at least 51% owned by socially and economically
disadvantaged individuals,
and 3. The firm must be controlled by socially and economically disadvantaged
individuals.
If you have reason to believe that a firm does not meet these criteria,
notify your State DOT.
The regulations require that each State handle their Certification Procedures
for DBE applications
through a "one-stop shopping" process,
called the Unified Certification Program, or
UPC.
Once a DBE firm is certified by a UCP, the certification is recognized by all
DOT recipients in the State, including LPAs.
The regulations also include procedures for making certification decisions and
removing the eligibility of DBE
firms.
A significant component of the DBE Program is Compliance and Enforcement.
Failure to comply with the DBE regulations may result in formal
enforcement actions, or
complaints filed against the State DOT or you,
the LPA.
Additionally, this part of the Program outlines the enforcement actions that
may be taken against contractors and
DBE firms that make false statements or attempt to defraud the government.
Lastly,
the regulations require cooperation, mandate confidentiality of information,
and prohibit intimidation or retaliation against any individual or firm
involved a DBE complaint.
To comply with these requirements, each State must establish a DBE Program and
develop a DBE Plan
for FHWA approval.
The DBE Plan is the State DOT's guide on how it will implement the
DBE Program. It is an essential document for those with DBE Program
responsibilities, such as you, the LPA.
Understanding your role is critical to your ability to comply
with DBE Program requirements
to ensure that your project remains eligible to receive federal funds.
What exactly does conformance to DBE Program requirements mean for you as the
LPA?
First, contact your State DOT to get a copy of the State's
DBE Program Plan.
Once you receive a copy, you will know:
What's in the plan,
who the DBE Liaison Officer is,
the administrative requirements, and
what the state expects
LPAs to do.
You will need to understand these things to ensure your Federal-aid contracts
comply with DBE requirements.
Second, you will also need to know: how your State's Unified Certification Program works,
where to locate the directory or database of certified contractors, and
how to identify the type of work they are certified to perform.
This is an important first step in counting DBE participation on federal-aid
contracts.
Bottom line,
as the LPA, you must know and follow your State's DBE Program Plan,
unless otherwise indicated by your State.
Adherence to the DBE Program requirements ensures that your
local Federal-aid project funding
is not jeopardize nor delayed
due to complaints, challenges, or other issues.