Florida DBE & MBE Programs: Certification & Eligibility Guide

Disadvantaged Business Enterprise (DBE) Program Florida Department of Transportation Equal Opportunity Office 1 2016

Disadvantaged Business Enterprise Program Governed by 49 CFR Part 26 Definition: DBE means a for-profit small business concern That is at least 51 percent owned by one or more individuals who are both socially and economically disadvantaged or, in the case of a corporation, in which 51 percent of the stock is owned by one or more such individuals; and Whose management and daily business operations are controlled by one or more of the socially and economically disadvantaged individuals who own it. 2

Minority Business Enterprise Program Governed by Florida Statute (Chapter 287.0943 and 295.187) Managed by the Department of Management Services Office of Supplier Diversity The goal of the Office of Supplier Diversity is to increase the number of Florida Certified Business Enterprises - minority-owned (MBE), woman-owned (WBE) and Veteran-owned (VBE). They work with eligible business owners to process and grant their certification as well as to ensure they are informed of the benefits of certification. Their certification officers are responsible for identifying and certifying eligible small businesses 3

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DBE Certification Certification is not a prequalification Certification is for Specific Types of Work Burden of Proof on Applicant Once Certified, Burden shifts to Us 5

Socially Disadvantaged Presumed Groups Women Black Americans Hispanic Americans Native Americans Asian-Pacific Americans Subcontinent Asian Americans Others if Documented 6

Socially Disadvantaged Individuals Must be a U.S. Citizen or Permanent Resident Alien Must Show Ownership 51% by Disadvantaged Owner Real & Substantial; Not Just on Paper Contribution of Capital or Expertise Must Control Business Independent Does Not rely on Others Makes Day to Day & Long Term Decisions 7

Economically Disadvantaged Personal Net Worth At or Below $1.32M Each Qualifying Owner Exclude Ownership in Business Exclude Equity in Primary Residence 8

Certified DBEs Black Americans Hispanic Americans Native Americans Asian Pacific Americans Subcontinent Asian Women Other Total 390 (26.42%) 388 (26.29%) 27 (1.83%) 80 (5.42%) 44 (2.98%) 538 (36.45%) 9 (0.96%) 1476 9

Certified DBEs (By District) District 1 District 2 District 3 District 4 District 5 District 6 District 7 Out of State Total 91 (6.17%) 95 (6.44%) 110 (7.45%) 180 (12.20%) 288 (19.51%) 152 (10.30%) 167 (11.31%) 393 (26.63%) 1476 10

Race Neutral Program The FDOT utilizes a race neutral approach in establishing its DBE goal. Ultimately, FDOT believes it can achieve its DBE goal on federally assisted contracts through normal competitive processes. Most other states utilize a race conscience approach which places a mandatory DBE goal on each individual federally assisted contract as a requirement of award. The overall goal for the DBE program for federal-funded highway contracts is established every three years. 11

Accomplishments Since Race Neutral DBE Federal % State % Fiscal Year Goal Achieved Achieved 2000-2001 8.0% 8.62% 11.55% 2001-2002 8.0% 5.10% 8.35% 2002-2003 8.0% 7.83% 8.61% 2003-2004 7.5% 7.55% 7.92% 2004-2005 7.5% 8.03% 7.50% 2005-2006 7.9% 8.06% 9.11% 2006-2007 8.1% 8.15% 9.96% 2007-2008 8.1% 7.75% 9.49% 9.00% 2008-2009 8.12% 8.16% 10.00% 2009-2010 8.18% 8.33% 10.13% 2010-2011 8.18% 8.50% 13.63% 2011-2012 8.60% 10.31% 12.71% 2012-2013 8.60% 11.78% 10.88% 2013-2014 8.60% 10.69% 14.23% 2014-2015 9.91% 13.73% 13.85% 2015-2016 9.91% 12.59% Federal Combined % Achieved 10.10% 6.57% 8.35% 7.78% 7.72% 8.71% 9.35% 9.08% 8.79% 10.02% 11.45% 11.38% 12.22% 13.79% 13.44% 14.62% 12

What the 2015 percentage means in $$ Federal Fiscal Year 2015-2016 DBE Goal Achieved Achieved Achieved 9.91% 12.59% 14.62% 13.44% Federal % State % Combined % $5,344,056,253 awarded for Federal & State projects 13.44% Committed to DBEs $718,414,087 in DBE Participation 13

BUSINESS DEVELOPMENT INITIATIVE

Business Development Initiative BACKGROUND Purpose: to increase competition move subs to primes Began in July 2006 (District Two) January 2007 in all districts FHWA approved in March 2009 March 2012 became the Small Business Component of the DBE Program Plan

Business Development Initiative STRATEGIES Reserve contracts for small businesses Contracts are up to $1,500,000 Modified pre-qualification requirements Waive bonds on contracts of a non-critical nature

Business Development Initiative ELIGIBILITY Meet USDOT definition of a small business FDOT small business size standards Construction/Maintenance - $15.0M Professional Services - $6.5M Submit notarized affidavit Provide references Professional Services must still be prequalified

BDI REPORTING 18

BDI PROGRAM For a list of reserved contracts, you can visit http://www.dot.state.fl.us/equalopportunityoffice/reserved Contracts.shtm For more information on the BDI, please visit http://www.dot.state.fl.us/equalopportunityoffice/bdi.shtm or email fdot.bdi@dot.state.fl.us 19

Websites Equal Opportunity Office www.dot.state.fl.us/equalopportunityoffice/ www.dot.state.fl.us/equalopportunityoffice/dbecertification.shtm DBE Certification Application & DBE Directory Contractor & Consultant DBE Utilization Letter Grades www.dot.state.fl.us/equalopportunityoffice/dbereports.shtm Business Development Initiative (BDI) Reserved Projects www.dot.state.fl.us/equalopportunityoffice/reservedcontracts.shtm 20