DBE Certification


BEFORE YOU START THE DBE APPLICATION PROCESS In order to apply for certification as a Disadvantaged Business Enterprise (DBE), your firm must meet the following eligibility criteria stated in 49 CFR Part 26: The disadvantaged individual must be a U.S. citizen (or resident alien) and be a member of a socially and economically disadvantaged group. 

The disadvantaged individual applying must have a personal net-worth (PNW) of less than $1,320,000. Items excluded from personal net worth calculation include an individual’s ownership interest in the applicant firm and his or her equity in their primary. Also, if an individual demonstrates that he/she is able to accumulate substantial wealth, the individual’s claim of economic disadvantage may be denied, even though the individual’s PNW is less than $1.32 million. 

Depending on the primary business activity, a firm (including its affiliates) must not have average annual gross receipts over the firm’s previous three fiscal years in excess of $23,980,000 ($56,420,000 for airport concessionaires in general with some exceptions). Lower size standards may apply depending on business activity determination. The firm must be a for-profit small business where socially and economically disadvantaged DBE owner(s) own at least a 51% interest, and have managerial and operational control of the business operations; the firm must not be tied to another firm in such a way as to compromise its independence and control. 

 The socially and economically DBE owner(s) must possess the power to direct or cause the direction to the management and policies of the firm and to make day-to-day, as well as long-term decisions on matters of management, policy and operations. If state or local law requires the persons to have a particular license or other credential in order to own and/or control a certain type of firm, then the socially and economically disadvantaged persons who own and control a potential DBE firm of that type must possess the required license or credential. 


DISADVANTAGED BUSINESS ENTERPRISE (DBE) INSTRUCTIONS TO BIDDERS This project is subject to Title 49, Part 26.13(b), Code of Federal Regulations [49 CFR 26.13(b)]: The contractor, sub recipient or subcontractor shall not discriminate on the basis of race, color, national origin, or sex in the performance of this contract. The contractor shall carry out applicable requirements of 49 CFR Part 26 in the award and administration of DOT-assisted contracts. 

Failure by the contractor to carry out these requirements is a material breach of this contract, which may result in the termination of this contract or such other remedy as the recipient deems appropriate. You are required to take necessary and reasonable steps to ensure that Disadvantaged Business Enterprises (DBEs) have opportunity to participate in the contract (49 CFR 26). The term “Disadvantaged Business Enterprise” or “DBE” means a for-profit small business concern owned and controlled by a socially and economically disadvantaged person(s) as defined in 49 CFR 26.5. 

 To ensure there is equal participation of the DBE groups specified in 49 CFR 26.5, the City will specify a DBE goal for each Federal-aid transportation contract. You are required to make work available to DBEs and select work parts consistent with available DBE subcontractors and suppliers. You are required to either, A) meet the DBE goal shown in the Notice Inviting Bids, or B) demonstrate that you have made adequate good faith efforts to meet this goal. FAILURE TO MEET EITHER A) OR B) REQUIREMENTS, ABOVE, WILL RENDER THE BID NON-RESPONSIVE. It is your responsibility to verify that a subcontracting firm is properly certified as a DBE at the date of bid opening. 

For a list of DBEs certified by the California Unified Certification Program, go to: http://www.dot.ca.gov/hq/bep/find_certified.htm. Credit for materials or supplies you purchase from DBEs counts towards the goal in the following manner: 1. 100 percent counts if the materials or supplies are obtained from a DBE manufacturer. 2. 60 percent counts if the materials or supplies are obtained from a DBE regular dealer. 3. Only fees, commissions, and charges for assistance in the procurement and delivery of materials or supplies count if obtained from a DBE that is neither a manufacturer nor regular dealer. 49 CFR 26.55 defines “manufacturer” and “regular dealer.”