DOT's Operating
Administrations distribute
substantial funds each year
to finance construction
projects initiated by state
and local governments, and
public transit and airport
agencies. The Transportation Equity Act for the 21st Century (TEA-21),
enacted June 9, 1998, authorized the Federal surface transportation programs for highways, highway safety, and transit for the 6-year period 1998-2003. Section 1101(b) of the act (Disadvantaged Business Enterprises) states except to the extent that the Secretary determines otherwise, not less than 10% of the amounts made available for any program under Titles I, III, and V of this act shall be expended with small business concerns owned and controlled by socially and economically disadvantaged individuals.
The Department's most
recent surface program
reauthorization
— the Safe,
Accountable, Flexible,
Efficient Transportation
Equity Act: A Legacy
for Users (SAFETEA-LU),
enacted in 2005,
extended the DBE program to
the Department's highway
and safety research
program. Recipients of DOT
funds must develop and
implement a DBE program
that conforms to DOT
standards set forth in
49 CFR
Part 23 (for airport
concessionaires) and 49 CFR
Part 26.
The integrity of DOT's Disadvantaged Business Enterprise program depends to a large extent upon the establishment of systematic procedures to ensure that only bona fide
small disadvantaged business firms are certified to participate in DOT federally assisted programs. The DOT Disadvantaged Business Enterprise Regulations
49 CFR Part 23 and 49 CFR
Part 26 place primary responsibility for the certification process upon
State Transportation Agencies,
which are tasked with
ensuring only bona fide,
small firms, owned and
controlled by a socially
and economically
disadvantaged individual(s) are certified.
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DBE Eligibility
In general, to be eligible for the DBE program, persons must own 51% or more of a "small business," establish that they are disadvantaged within the meaning of DOT regulations, and prove they control their business. The following general guidelines, taken in part from the applicable regulation (49 CFR Part 26), will help business owners determine whether they are eligible for the DBE program:
Eligibility Guidelines (in general):
Ownership - Your business must be 51% owned by a socially and economically disadvantaged individual(s).
"Disadvantaged" - You may be eligible if you are a member of a group of persons the Department considers as disadvantaged. The Department presumes certain groups are disadvantaged, including women, Black Americans, Hispanic Americans, Native Americans, Asian-Pacific Americans, Subcontinent Asian-Pacific Americans, or other minorities found to be disadvantaged by the U.S. Small Business Administration (SBA). Persons who are not members of one of the above groups and own and control their business may also be eligible if they establish their "social" and "economic" disadvantage.
The Department notes, for example, that people with disabilities have disproportionately low incomes and high rates of unemployment,
and that many may be socially and economically disadvantaged. A determination of whether an individual with a disability meets
DBE eligibility criteria is made on a case-by-case basis. More information on how social and economic disadvantage is determined
can be found in Appendix E to 49 CFR
Part 26.
Business Size Determination - A firm (including its affiliates) must be a small business as defined by SBA standards. It must not have annual gross receipts over $20,410,000 in the previous three fiscal years
($47,780,000 for airport
concessionaires in general
with some exceptions).
Under SAFETEA-LU, this
threshold will be adjusted
annually for inflation by
the Secretary.
Personal Net Worth - Only disadvantaged persons having a personal net worth (PNW)
of less than $750,000 can be
considered as a potential
qualified DBE. Items
excluded from a person's net
worth calculation include an
individual's ownership
interest in the applicant
firm, and his or her equity
in their primary residence.
Additional exclusions are
available for owners of
airport concessionaires (See
49 CFR Part 23).
Independence - The business must not be tied to another firm in such a way as to compromise its independence and control.
Control - A disadvantaged owner seeking certification must
possess the power to direct
or cause the direction of
the management and policies
of the firm. The owner
must also have an overall understanding of, and managerial and technical competence and experience directly related to, the type of business in which the firm is engaged.
Burden of Proof Allocation
- Applicants carry the
initial burden of proof
regarding their eligibility
and must demonstrate that
they meet all requirements
concerning group membership
or individual disadvantage,
business size, ownership,
and control.
Additional program requirements and certification procedures are found in the
Department's regulations 49 CFR Parts
23 and 26. Specific information can also be found in the
DBE Library
section below or within the Department of Transportation's Office of Small and Disadvantaged Business Utilization.
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Obtaining Certification as a DBE
Firms meeting the eligibility
standards must contact the specific
state or local transportation entity
for which they wish to participate
in contracts. In addition to
requesting documentary evidence
substantiating a firm's size,
owner's PNW, independence, and an
individual's ownership and control,
recipients are required to perform
an on-site visit to the firm's
offices and job sites. Firms
can obtain instructions on how to
apply to become a DBE by contacting
state departments of
transportation or
state DBE liaison and certification
officers. To ease the
burden of applying to multiple DOT
recipients within a state, the
Department requires a Unified
Certification Program (UCP) to be
developed so that applicants need
only apply once for DBE
certification that will be honored
by all recipients in the state.
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Filing an Appeal
Firms that have applied for
and were denied DBE certification and firms
whose certification has been
removed by a recipient of DOT
funds may file an administrative
appeal with the Departmental
Office of Civil Rights within 90
days from the date of denial.
How to file an appeal after being denied DBE certification by a DOT
recipient:
To file a DBE certification appeal, firms should send a letter to the U.S. Department of Transportation. The appeal should at a minimum include
information and arguments concerning why the recipient's decision should be reversed, a copy of the denial
letter, and any additional information you believe to be pertinent to the appeal.
Firms must provide the name(s) and address(es) of any DOT recipient the firm is currently certified with;
or who has rejected its application for certification; or removed the firm's eligibility within one year
prior to the date of the appeal.
This includes applications
currently pending certification
action.
All appeals should be submitted to:
U.S. Department of Transportation
Departmental Office of Civil Rights
External Civil Rights Programs Division (S-33)
1200 New Jersey Ave., S.E.
Washington, DC 20590
Phone: (202) 366-4754    
TTY: (202) 366-9696 Fax:
(202) 366-5575
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Appeal Process
Under 49 CFR Section 26.89 the Departmental Office of Civil Rights is responsible for processing all appeals of denial of DBE certification. This CFR Section specifies our procedures as follows:
Initial Processing
Upon receipt of a written appeal, DOCR will review the incoming correspondence to determine whether the appeal was filed within 90 days from the date of denial or if an extension is warranted.
If the appeal is filed within 90 days, DOCR will write to the appellant acknowledging receipt of the appeal.
At the same time, DOCR will request in writing that the recipient who denied the certification provide copies of all documentation (including hearing transcripts, interviews, applications, etc.) used in making the determination not to certify the appellant.
Review of Documentation and Decision
DOCR will review the information submitted by the recipient to determine whether the
recipient properly
applied the eligibility standards
to the firm in accordance with 49 CFR Part 26, Subpart C.
Only the
information
originally
available to the
recipient will be
considered during
the appeal and the
Department bases
its decision solely
on the
administrative
record. If any additional information or recent change of circumstances is reported, the potential DBE will be advised to reapply to the recipient, or the information will be referred to the recipient for review and consideration.
After
reviewing the
documentation, DOCR will render one of the following decisions:
- The DBE is certified (overturning the denial by the recipient); or
- The DBE is not eligible to be certified, and is denied eligibility to participate in the program (upholding the decision of the recipient); or
- The case is remanded to the recipient for additional information and/or instruction.
All
decisions by the
Department are
administratively
final. If the
Department upholds
the recipient's
denial or removal
of DBE
certification and
the firm still
wishes to
participate in the
DBE program, the
firm must reapply
to the recipient
within specified
timeframes.
DOCR will inform both the recipient and the appellant of the results of its decision. DOCR will also notify the Directors of Civil Rights in the Department's Operating Administrations (for example, the Federal Highway Administration, Federal Transit Administration, etc.) and the Director, Office of Small and Disadvantaged Business Utilization (OSDBU) of the Department's decision. The Directors of Civil Rights will ensure that appropriate field personnel are made aware of the decisions that would affect the program in their area.
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Role of Other Departmental Personnel
If the information available to DOCR suggests fraud or other criminal violations in connection with the Department's DBE program, the case will be referred to the Department's Office of the Inspector General for investigation.
The Office of the General Counsel, specifically the Office of the Assistant General Counsel for Regulation and Enforcement (C-50), will be consulted in cases that involve interpretation of DOT regulations; the Office of the Assistant General Counsel for Environmental, Civil Rights, and General Law (C-10) for legal guidance; and the Office of the Assistant General Counsel for Litigation (C-30) for legal sufficiency.
Any DOT office that receives a certification appeal should forward it to
DOCR, S-33, Room 5414, for appropriate action.
Occasionally, Operating Administrations' Civil Rights staff will be asked to facilitate the process by providing information or conducting investigations.
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DBE Contact Information
|
Department |
Address |
Contact Number |
External Civil Rights Programs Division (S-33) Departmental Office of Civil Rights |
1200 New Jersey Ave, S.E Washington, DC 20590
|
Phone: (202) 366-4754 Fax:
(202) 366-5575
TTY: (202) 366-9696 |
Office of Small and Disadvantaged Business Utilization (S-40) Department of Transportation |
1200 New Jersey Ave, S.E Washington, DC 20590
|
Phone: (800) 532-1169 (202) 366-1930 Fax: (202) 366-7538
TTY: Federal Relay Service |
Office of Civil Rights (HCR-1) Federal Highway Administration |
1200 New Jersey Ave, S.E Washington, DC 20590
|
Phone:
(202) 366-1607 Fax: (202) 366-1599
TTY: (202) 366-5751 |
Office of Civil Rights (TCR-1) Federal Transit Administration |
1200 New Jersey Ave, S.E Washington, DC 20590
|
Phone: (202) 366-4018 Fax: (202) 366-3475
TTY: Federal Relay Service |
Office of Civil Rights (ACR-1) Federal Aviation Administration
|
External Programs Team ACR-4 800 Independence Ave SW Room 1030 Washington, DC 20591
|
Phone: (202) 267-3270 Fax: (202) 267-5565
TTY: Federal Relay Service |
Federal Relay Service |
TTY: (800) 877-8339 Voice/Hearing: (800)
377-8642 VCO: (800) 877-6280 Speech-to-Speech: (877) 877-8982 |
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DOCR DBE Customer Service Standards
Our Commitments to You...
- We will acknowledge receipts of appeals filed in writing to
this office within 4 business days.
- We will process certification appeals and issue decisions within
90 days of receipt of complete appeal packages.
- We will offer at least 3 workshops each year on certification
procedures to recipients of DOT financial assistance.
- We will offer at least 3 workshops each year to individuals
and businesses on DBE eligibility criteria and grounds for denial
of certification appeal rights.
- We will provide regulatory and DBE eligibility criteria for
certification as a DBE through our Web page.
Report to Our Customers
Following the Department of
Transportation's 1999 DBE
regulation, the Departmental Office of Civil Rights (DOCR) revised its customer service standards to realistically reflect the time required of civil rights staff to process certification appeals and issue decisions. Our standard processing time of 60 days established in FY 1996 changed in FY 1999 to a standard processing time of 180 days.
However, DOCR has established as a goal, a processing time of 90-120 days from the date of receipt of records.
DOCR is an active participant in the Department's Disadvantaged Business Enterprise program and continues to work with the Office of Small and Disadvantaged Business Utilization (OSDBU) to offer workshops around the country on certification procedures to recipients of DOT financial assistance and to individuals and businesses on DBE eligibility criteria and denial of certification appeal rights.
In addition, DOCR is an
integral part of the DBE Task
Force, an internal entity
composed of Operating
Administration representatives
and chaired by the Deputy
Assistant General Counsel. The
task force reviews all DBE
programmatic issues, makes
recommendations for regulatory
changes, and develops guidance
for DOT recipients.
Improving Customer Service
DOCR has made some important changes in the day-to-day management of its DBE Certification Appeals program, changes that are intended to make the program more responsive to the needs of its customers.
DBE Appeals Tracking System: DOCR made investments to enhance its current DBE appeals tracking system. Enhancements to the system will improve the tracking and monitoring of the progress of each appeal from receipt to final agency decision.
DBE Appeal
Decisions:
Copies of
appeal decisions
are posted regularly by
DOCR on the Office of
Small and Disadvantaged
Business Utilization
website.
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DBE Library
Final Agency Decisions on DBE Certification Appeals
Guidance for DBE Program
Administrators
Questions
and Answers on the DBE Program
The following questions and answers
are presented in MS Word format:
DBE Certification Appeals Program Brochure   
HTML   
PDF
United States Codes
49 USC 47113, Minority and Disadvantaged Business Participation Each agency is required to expend a certain percentage of amounts available within a fiscal year
from the Airport and Airway Trust
Fund with small and disadvantaged businesses
or qualified HUBZone small business
concerns.
Codes of Federal Regulations
13 CFR
Part 121, Small Business Size Regulations
These regulations govern
qualifications for small
businesses and detail how SBA
determines relevant size
standards.
49 CFR
Part 21, Nondiscrimination in Federally-Assisted Programs of Department of Transportation — Effectuation of Title VI of the Civil Rights Act of 1964 No person in the United States shall, on the grounds of race, color, or national origin, be excluded from participation in, be denied the benefits of, or be otherwise subjected to discrimination under any program or activity receiving Federal financial assistance from the Department of Transportation.
49 CFR
Part 23,
Participation by Disadvantaged Business Enterprise
in Airport Concessions This regulation governs the
participation by airport
concessionaire disadvantaged
business enterprises (ACDBEs) in
the concessions activities of
airports receiving Federal
financial assistance from FAA's
airport improvement program.
Federal Register Notice (April
2, 2007) This notice adjusts the dollar limits and size limits used to define small businesses for the ACDBE program. In addition, this document, as required by statute, also adjusts the dollar limits used to define small businesses for the DBE program
49 CFR
Part 26, Participation by Disadvantaged Business Enterprises This regulation is designed to create
a level playing field on which DBEs can compete. It covers nondiscrimination in the award and administration of DOT-assisted
contracts in the Department's highway, transit, and airport financial assistance programs.
The regulation specifies program
administration requirements;
goals, good faith efforts, and
counting; DBE certification
standards and procedures; and
compliance and enforcement.
Public Laws
SAFETEA-LU (Safe,
Accountable, Flexible, Efficient
Transportation Equity Act:
A Legacy for Users)
PL 104-121, Small Business Regulatory Enforcement and Fairness Act This act is designed to simplify, develop, and enforce the Federal regulations pertaining to small businesses.
PL 107-100, Small Business Act This act dictates the actions that each Federal agency must take in order to assist small businesses.
Related Websites
Department of Transportation Office of Small and Disadvantaged Business Utilization
Small Business Administration
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Customer Service Feedback
For questions regarding
the DBE program or
certification appeals
procedures, or to make
suggestions for improving
our services, contact the External
Civil Rights Programs Development Division at:
U.S. Department of Transportation
Departmental Office of Civil Rights
External Civil Rights
Programs Division (S-33)
1200 New Jersey Ave, S.E.
Washington, DC 20590
Phone: (202) 366-4754     TTY:
(202) 366-9696
Fax: (202) 366-5575
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