“ HOW DO I GET C ERTIFIED?”

1. U. S. Department of Transportation Federal Transit Administration Opening “DOORS” Program Developing Opportunities, Outreach and Resources for Success “HOW DO I GET CERTIFIED?” Kansas City, Missouri June 19, 2012

2. PURPOSE OF DBE PROGRAM • To ensure nondiscrimination in the award and administration of federally funded contracts; • To create a level playing field on which DBE’s can compete fairly for federally funded contracts with the inclusion of all classes; • To ensure that the Department’s DBE Program is narrowly tailored and in accordance with applicable law;

3. PURPOSE OF DBE PROGRAM (cont’d) • To ensure that only firms that fully meet the eligibility standards are permitted to participate as DBE’s; • To help remove barriers to the participation of DBE’s in DOT-funded contracts; and • To assist the development of firms that can compete successfully in the marketplace outside the DBE Program.

4. DBE CERTIFICATION • Certification Objective • To ensure that program benefits small, for-profit business firms that are: • At least 51% owned and controlled by one or more individuals who are both socially and economically disadvantaged • Whose management and daily business operations are controlled by one or more of the socially and economically disadvantaged individuals who own it

5. DBE CERTIFICATION The U. S. DOT and FTA administer the DBE Program in accordance with Federal Regulations 49 CFR Part 26 49 CFR Part 26 Federal Regulations

6. DBE CERTIFICATION • Eligibility Standards • Business Size • Social and Economic Disadvantage • Group Membership • Personal Net Worth • Ownership and Control • Other Rules Affecting Certification

7. DBE Certification • 26.63 - Group Membership • The individual must demonstrate, by a preponderance of the evidence, that he or she is a member of the group • Consider that the individual has held themselves out to be a member of the group over a long period of time prior to application for certification and regarded as a member of the group by the relevant community

8. DBE CERTIFICATION • 26.65-Business Size • Must be an existing small business • SBA’s size standards based on the North American Industrial Classification System (NAICS) • Annual income not to exceed $22.41 million • Calculated by 3 year average gross receipts

9. DBE CERTIFICATION • 26.67-Social & Economic Disadvantage • Citizens & lawfully admitted permanent residents who are: • Women • Black Americans • Hispanic Americans • Native Americans • Asian-Pacific Americans • Subcontinent Asian-Americans • Other groups designated by SBA

10. DBE CERTIFICATION • 26.67 – Social & Economic Disadvantage • Personal Net Worth • Each owner claiming social and economic disadvantage is required to submit signed, notarized Personal Net Worth (PNW) Statement with supporting documentation • $1.32 Million Personal Net Worth Cap • Excludes Equity in Primary Residence & Applicant Business Interest

11. DBE CERTIFICATION • 26.69 – Ownership • At least 51% percent of firm must be owned by a socially and economically disadvantaged individual • Ownership must be real and substantial -- disadvantage owner must enjoy the customary incidents of ownership and share in the risk and profits associated with their ownership interest

12. DBE CERTIFICATION • 26.69 – Ownership (continued) • The contributions of capital or expertise by the socially and economically disadvantaged owner must be real and substantial (i.e. not an unsecured note payable or an employee of the firm) • Special rules apply for ownership acquired by gift or transfer and when marital assets are used to acquire ownership

13. DBE CERTIFICATION • 26.71 – Control • The firm must be an independent business – not dependent on its relationship with another firm(s) • Not subject to any formal or informal restrictions which limit the customary discretion of the disadvantaged owners (i.e. not restricted by-laws, voting powers) • The disadvantaged owner must possess the power to direct and make the day-to-day as well as long-term decisions on matters of management, policy and operations (must hold the highest officer position)

14. DBE CERTIFICATION • 26.71 – Control (continued) • Others (non-disadvantaged individuals) may be involved in the business but not possess or exercise the power to control the firm or responsible for the operation of the firm. • May delegate authority but must be revocable • The disadvantaged owner must have an overall understanding of, and managerial and technical competence and experience directly related to the type of business seeking certification.

15. DBE CERTIFICATION • 26.73 - Other Rules Affecting Certification • Determine if the firm has exhibited a pattern of conduct indicating its involvement in attempts to evade or subvert the intent or the requirements of the DBE Program • The firm’s eligibility is evaluated on the basis of present circumstances • Must be for-profit • Performs a commercially useful function or is a regular dealer • Holding companies and subsidiaries – additional rules regarding company structure

16. DBE CERTIFICATION • 26.85 - Interstate Certifications (new) • There is no reciprocity agreement between the Missouri UCP and any other UCP • As of January 2011 the UCPs may accept interstate certifications (Part 26.85) • Firms should be certified in their home states first • Submit same paperwork and copies of certification documents and correspondence to MRCC • MRCC may request additional information from UCP • MRCC may not accept the certification decision

17. DBE CERTIFICATION Missouri agencies that receive DOT funding have implemented a Unified Certification Program (UCP). DBE certifying agencies in the state to formed the Missouri Regional Certification Committee (MRCC). Those partnering agencies include: • Missouri Department of Transportation (MoDOT) • City of St. Louis - Lambert Airport Authority • Metro in St. Louis • City of Kansas City, Missouri • Kansas City Area Transportation Authority (KCATA) • Mid American Regional Council (MARC) • East West Gateway Council of Governments (St. Louis)

18. SMALL BUSINESS ENTERPRISE (SBE)PROGRAM • New requirement under 49 CFR Part 26 changes effective January 2011 • 26.39 “Fostering Small Business Participation” • Becomes an element of the agencies’ DBE Programs • Submitted to FTA for approval by 2/28/12 • Firms considered small business under SBA guidelines will be allowed to participate. Title 13, Code of Federal Regulations, Part 121

19. SBE PROGRAM • Size standards ensure a “level playing field” for competition among small businesses of varying sizes. http://www.sba.gov/category/navigation-structure/contracting/contracting-officials/eligibility-size-standards • By definition, firms that are certified as DBE’s are considered SBE’s

20. SBE PROGRAM • SBE Program is race neutral and gender neutral • Agencies are encouraged to unbundle larger projects to allow small firms to bid on DOT funded projects • Unlike the DBE program, agencies may “set aside” a portion of DOT funded projects to allow exclusive participation by a small business regardless of the owner’s gender, race or geographic location

21. SBE PROGRAM • The MRCC has a “Small Business Enterprise (SBE) Program Declaration of Certification” that is reciprocal with all Missouri UCP agencies • Includes notarized acknowledgement and affirmation that business meets the SBA size guidelines • Requires that SBE’s are under the PNW threshold of $1.32 million • Accepts SBA certification and MRCC may ask for tax returns

22. How do I apply for Certification?

23. DBE/SBE PROGRAM REGULATIONS • Federal Transit Administration: http://fta.dot.gov/civilrights/12326.html • DOT’s Office of Small & Disadvantaged Business Utilization: http://osdbu.dot.gov • Small Business Administration: http://sba.gov

24. KCATA’s Contact Information Denise Bradshaw Adams 816-346-0224 E-mail: dbradshaw@kcata.org Website: http://www.kcata.org