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Disadvantaged Business Enterprise (DBE) certification information
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California Unified Certification Program
Disadvantaged Business Enterprise (DBE) Certification Workshop
DBE Background & Benefits
How Program Works
Beyond DBE
Resources
1October 3, 2013
California Unified Certification Program
DBE BackgroundU.S. Department of Transportation (DOT)
20+ years of helping small disadvantaged businesses
Over $40 billion distributed annually
About 85% goes to State highway and transportation agencies for highway construction
Balance goes to local public transit and airport authorities for mass transit and airport facilities
DBE Program is DOT’s vehicle for helping disadvantaged businesses to participate in this multibillion dollar marketplace
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Source: U.S. DOT Office of Small Disadvantaged Business Utilization (OSDBU)
California Unified Certification Program
Advantages of DBE Certification
Increased business exposureSingle Statewide CUCP DBE DatabaseUse of Database by Agencies for all DOT-funded contractsUse of Database by contractors, consultants, and other organizationsDBE data readily available on the Internet
(www.CaliforniaUCP.org)
As a DOT-certified DBE, your firm is accepted on all DOT funded contracts in California
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California Unified Certification Program
How does the DBE Program workDBE program is carried out by “recipients” of DOT financial assistanceRecipients are required to establish narrowly-tailored DBE goals
Race Neutral and Race-Conscious
Recipients are also required to ensure the eligibility of DBE firms
Businesses seeking to participate as a DBE must be certified by the California Unified Certification Program (CUCP)
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California Unified Certification Program
What is the CUCP?
Statewide program to lessen the burden on disadvantaged businesses
“One-stop shopping” certification services to disadvantaged businesses
An applicant is required to apply only once for a DBE certificate that is honored by all DOT recipients in the state
CaliforniaUCP.org
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California Unified Certification Program
CUCP Certifying Agencies
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Southern California
Northern California
California Unified Certification Program
Who is Eligible?
A firm must be a small business at least 51% owned and controlled by one or more socially and economically disadvantaged individuals
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DBE Eligibility
SmallSocial disadvantageEconomic disadvantage
California Unified Certification Program
Small Business
A firm (including its affiliates) must be small, as defined by SBA (13 CFR 121)Even if SBA requirements are met, a firm is not an eligible DBE if its 3-year average annual gross receipts exceeds $22.41 millionSize standard is defined by industry
North American Industry Classification System (NAICS)
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Size Requirements
California Unified Certification Program
Social DisadvantageRebuttable presumption of disadvantage
WomenBlack AmericansHispanic AmericansNative AmericansAsian-Pacific AmericansSubcontinent Asian Americans
Individual determination of social and economic disadvantageCitizenship or permanent residency is requiredNon-profit organizations are not eligible
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California Unified Certification Program
Economic Disadvantage
Individual's personal net worth must not exceed $1.32 million (adjusted)
Adjustments made in Net Worth calculation:
Business equity in applicant firm not includedEquity in primary residence not includedRetirement accounts are discounted to present valueSpouse’s community property not included
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California Unified Certification Program
Personal Financial Statement
• Personal Balance Sheet: Assets - Liability = Net Worth
• Include everything – we will adjust• Real estate and other assets must be at current
market value• Indicate whether for an individual or for a
married couple
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California Unified Certification Program
Ownership Criteria
At least 51% owned by socially and economically disadvantaged individuals
Ownership must be real, substantial, and continuing
Must prove contribution of capital and/or expertise to acquire majority ownership
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California Unified Certification Program
Control CriteriaIndependent: Only an independent business may be certified as a DBE. An independent business is one the viability does not depend on its relationship with another firm(s).
Control: The socially and economically disadvantaged owners 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.
Licensing: If state or local law requires a particular license to own and control a certain type of firm, then the DBE individuals must possess that license.
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California Unified Certification Program
NAICSNorth American Industry Classification System (NAICS)
DBE is certified for specific type(s) of workDemonstrated by disadvantaged owner’s controlFirm bears the burden of providing detailed company information to support NAICS codeWork Codes
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NA
ICS
http://www.census.gov/
California Unified Certification Program
Work CodesUsed to supplement NAICS
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CONSULTANTS, ARCHITECTS & ENGINEERS
C8720 CIVIL ENGINEERINGC8721 RIGHT OF WAY ENGINEERC8722 ENVIRONMENTAL ENGINEERC8740 ELECTRICAL ENGINEERSC8742 MECHANICAL ENGINEERSC8746 STRUCTURAL ENGINEERC8780 ENGINEERING- GEOTECHNICALC8781 ENGINEERING- HYDROLOGYC8782 ENGINEERING – SEISMICC8784 ENGINEERING – VALUE
California Unified Certification Program
What about SBE, SDB, DVBE,MBE, WBE, LBE…and ME?
Acronyms defined
Programs not the same
Established for specific agency purposes
Reciprocity at agency discretion
Follow the Money
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Acr
onym
s
California Unified Certification Program
What about SBE, SDB, DVBE,MBE, WBE, LBE…and ME?
Acronyms defined
Programs not the same
Established for specific agency purposes
Reciprocity at agency discretion
Recommendation: follow the money
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Sample Small Business Programs
Impo
rtan
t R
esou
rces
U.S. D
OT
www.dot.gov/osdbu/
U.S. SB
AIm
port
ant
Res
ourc
es
www.sba.gov
California U
CP
Impo
rtan
t R
esou
rces
www.CaliforniaUCP.org
California Unified Certification Program
Thank you
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