10/3/13 Meet the Primes workshop: cucp certification 2013 10 03

California Unified Certification Program

Disadvantaged Business Enterprise (DBE) Certification Workshop

DBE Background & Benefits

How Program Works

Beyond DBE

Resources

1October 3, 2013


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)


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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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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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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CUCP Certifying Agencies

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Southern California

Northern California

http://www.flysfo.com/default.asp


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


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


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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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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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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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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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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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/


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


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


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


Thank you

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