Frequently Asked Questions
What
is the Disadvantaged Business Enterprise (DBE) Program?
MARTA's
Board of Directors issued it's second Board policy statement
in support of equal opportunity for minority and women owned
businesses 1971. Federal regulations were developed
to provide additional detail. Businesses must apply for certification
and provide evidence of ownership and control by the minority
person(s) as part of the DBE certification process.
What is a Disadvantaged Business
Enterprise (DBE)?
A DBE
is a business that is at least 5l % owned and controlled by
one or more minority persons. A minority is generally defined
as an individual who is African American, Hispanic American,
Asian American, Native American, a Woman or a Disabled person.
The Federal Government DBE Program also includes Alaskan Natives,
Pacific Islanders, Aleuts, and persons who are not minorities
but who are socially and economically disadvantaged in its
definition. The socially and economically disadvantaged owners
must demonstrate longstanding, chronic and substantial disadvantage
since the business is not owned by persons in the cited minority
groups.
How does MARTA determine which
businesses can participate in the DBE Program?
MARTA
has a very comprehensive certification process to determine
the ownership and control of firms, which apply for DBE certification.
There are many specific eligibility criteria for certification.
In assessing ownership, investments by the minority owner
are important. Control includes both managerial and operational
control with technical knowledge of the firms' major areas
of work being an important component for assessing operational
control.
Applications are carefully
reviewed and personal interviews are conducted by trained
DBE Analysts. The entire certification process assures
that only bona fide DBEs participate in the program.
Why does MARTA Require a Personal
Net Worth Statement?
Effective
fiscal year July 1, 2000 - June 30, 2001, the U. S. Department
of Transportation (USDOT) Disadvantaged Business Enterprise
(DBE) program has added a new requirement for qualifying as
a DBE; the personal net worth (PNW) of each minority individual
who owns and controls the firm as a part of the 51 % minority
ownership must be less than $750,000.00. When an individual's
personal net worth exceeds the $750,000.00 threshold, the
individual is no longer eligible to participate in the Federal
DBE Program. DBE business owners may decide not to provide
a PNW and not be considered a DBE for USDOT assisted contracts.
The PNW excludes the value of the DBE business and the personal
residence of the DBE owner(s).
Do firms graduate from the DBE
Program?
Yes. As of October 1, 2000,
if a certified DBE has a three (3) year annual average of
gross receipts (or for retail and manufacturing businesses
number of employees) that meets or exceeds the revenue (or
employee) totals as specified by the U.S. Department of Transportation
(USDOT), the firm would not be eligible to participate in
the DBE program. The first year to be included in the
average is 1997. This has existed for federally assisted
contracts within the DBE program for many years.
What are the advantages of becoming
certified as an DBE?
Certification
as a DBE provides greater exposure for work opportunities
on MARTA projects. The names of all certified DBEs appear
in the DBE Directory, a reference manual which is widely disseminated
to each MARTA administration, other state departments, local
governments, contractors and to the public. Contractors use
the DBE Directory as a basic resource for soliciting minority
participation on projects. If a firm is not certified, a contractor
cannot receive credit toward achievement of the DBE participation
goal by using that firm.
Will this certification allow
me to bid as a DBE on other federally funded contracts?
MARTAs
DBE certification program is generally accepted by other agencies.
Once you are certified through MARTA, you may participate
as a DBE subcontractor on any MARTA contract. Any business
may bid directly on any bid or proposal without regard to
certification.
How does Marta establish
the goals for disadvantaged business participation?
Every
attempt is made by MARTA to establish realistic and achievable
DBE goals. Individual contract goals are set based upon the
dollar value of the project, the availability of DBEs to perform
the work which is to be subcontracted, and the availability
of certified DBEs in the location where the work is to be
done. While the established goals may vary on individual contracts,
the total of DBE participation in each contract is combined
to one report for the MARTA DBE participation year.
What types of work are available?
Opportunities
to participate in construction work, construction-related
work and the procurement of goods and services are varied.
Disadvantaged participation is encouraged on all projects.
Although many contracts with DBEs are for sub-contract work
in construction fields, certified DBEs have leased concessions,
provided consultant services in technical fields and have
been awarded projects as prime contractors.
Once certified, can a firm be
assured of getting contracts and subcontracts?
No.
Certification does not guarantee work to a DBE; however, it
does enhance a DBEs exposure to prime contractors and the
business community. To be successful, a firm must market itself,
its personnel and its services, as any good business should.
What is expected of the DBE once
a contract is awarded?
All
firms are expected to meet performance standards as established
by contract specifications. This relates to the quality of
work done, the submission of reports and written information
in a timely manner and the firm's compliance with applicable
regulations and laws. Once a DBE has been awarded a sub-contract,
the DBE is responsible for submitting verification of all
payments received to the contracting agency. This includes
the amount of payment and date received.
Does the general contractor have
any responsibility in the DBE Program?
Yes.
The general contractor must first meet the DBE goals established
on the contract by seeking out and utilizing certified DBEs.
Once work begins, the general contractor is responsible for
all project activities including those of subcontractors.
Regular monitoring assures
that contractual items are performed in accordance with specifications.
Monthly reports must be submitted by the general contractor
such as payroll, cost and time estimation and progress reports.
When changes are needed, the general contractor must get approval
from the agency project manager. Any changes in the DBE participation
must be approved.
How can MARTA assist DBEs who
work on transportation contracts and projects?
DBEs
can receive technical assistance when experiencing difficulties
in business operations. A call to MARTA's Office of Equal
Opportunity, will guarantee that an EEO/DBE Analyst will contact
the DBE to set up an appointment to provide assistance in
business management, construction management and/or financial
guidance. The Analyst may also assist in resolving problems
on the job site such as labor disputes, project scheduling
and equipment rental issues.
How does MARTA assure that "fronts"
or "sham" organizations do not benefit from the DBE Program?
The
DBE certification process is used to determine if a firm is
minority owned and controlled. To qualify as an DBE, the owner
must demonstrate that he or she is a minority person and provide
documentation establishing at least 51 % ownership of the
company.
Once the ownership of
a firm is established, the business owner must demonstrate
the technical knowledge and experience to make independent
business operating and management decisions.
Annual reviews of all
certified firms are made to determine if the ownership and
control of the DBE has changed. Consideration is given to
reports filed by the administrations, which describe how the
DBE has managed and performed on projects. Effective contract
compliance monitoring procedures also facilitate the identification
of "front" or "sham" DBE firms.
How can suspected abuse
of the DBE Program be reported?
Suspected
abuse should be reported to the Office of Equal Opportunity
at 404-848-5240.
What happens to DBEs and general
contractors who have abused the DBE Program?
Progressive
administrative sanctions can be applied when contractors (DBEs
and non-DBEs) have abused the DBE Program. These sanctions
include:
- Suspension
of work
- Withholding
a percentage of progress payment
- Default
of the contract
- Referral to the Office of the Attorney
General for criminal investigation
- Suspension of the right of the contractor to participate in
future MARTA contracts (debarment), and
- Other appropriate administrative actions within the discretion
of the Director of the Office of Equal Opportunity
Where can I find information
on upcoming contract opportunities?
You
may contact MARTA's Office of Contracts and Procurement at 404-848-5271
to obtain information about upcoming opportunities or on this
web site by clicking this link:
You may purchase plans
and specifications from the Documentation Control counter
located on the ground floor of our headquarters building.
If, however, you are interested in providing materials, supplies,
or services to the companies, which bid on the job, you may
visit the Office of Contracts and Procurement and copy the
list of potential bidders. This information is not given by
telephone.
MARTA DEO-related links:
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