Caltrans Improves Mobility Across California

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Caltrans Improves Mobility Across California

• Disadvantaged Business Enterprise
  (DBE)Certification Workshop

Presented by Caltrans Office of Business and
Economic Opportunity
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LEARNING OBJECTIVES Today we shall discuss

• Title 49 of the Code of Federal Regulations
• (49 CFR), Part 26.
• Eligibility criteria for the Unified
  Certification
• Program (UCP).
• California Unified Certification Program
• (CUCP).
• Benefits of becoming DBE certified.

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LEARNING OBJECTIVES discussed today

• DBE application/certification process.
• Applicants responsibilities when submitting a
• DBE application
• What to do once you are a certified DBE
• Annual Update Affidavit (AUA ) requirements.
• How to find a certified firm on the CUCP
• database.

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OBJECTIVE OF 49 CFR, PART 26 (To allow)
participation of disadvantaged business
enterprises in the Department of Transportation
(DOT) Financial Assistance Programs.

• To accomplish this, Part 26 seeks
• To ensure nondiscrimination in the award and
• administration of DOT assisted contracts for
  
• highway, transit, and airport programs
• To create a level playing field on which DBEs
• can compete fairly for DOT assisted
  contracts
• To help eliminate barriers to the participation
  
• of DBE firms in DOT assisted contracts.

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49 CFR, PART 26 OBJECTIVES (continued)

• To ensure that only firms that fully meet the
• eligibly standards are permitted to
  participate
• as a DBE (to be discussed later).
• To ensure the DBE program is narrowly
• tailored in accordance with applicable law.
• Narrowly tailored is the legal principle that a
  law be written to specifically fulfill only its
  intended goals
• (selective and specific).

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CALIFORNIA UNIFIED CERTIFICATION PROGRAM (CUCP)

• The United States Department of
• Transportation (USDOT) requires that a
• Unified Certification Program (UCP),
• governed by 49 CFR, Part 26, be put into
• practice by each state.
• The purpose of the UCP is to provide one-
• stop shopping of certification services to
• socially and economically disadvantaged
• individuals. Caltrans is the statewide
  agency.

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CUCP CERTIFYING AGENCIES (10)

• CA Department of Transportation (Caltrans)
• S.F. Bay Area Rapid Transit (BART)
• S.F. Municipal Transportation Agency (SFMTA)
• Santa Clara Valley Transportation Authority
  (VTA)
• San Mateo County Transit District (SAMTRANS)
• Central Contra Costa Transit Authority (CCCTA)
• City of Fresno
• Yolo County Transportation District (YOLOBUS)
• L.A. County Metropolitan Transportation
  Authority (METRO)
• City of Los Angeles

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BENEFITS OF BECOMING DBE CERTIFIED

• Certification is recognized by 800 local
• agencies in California, other states and
  private
• companies.
• Expands opportunities to participate on
  federally-
• funded contracts.
• Become accessible to prime contractors needing
  to
• fulfill DBE participation goal requirements

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BENEFITS OF BECOMING DBE CERTIFIED

• Increases opportunities to network at events
  such
• as procurement fairs and pre-bids.
• Listings in official directories such as the CUCP
  database.

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DBE APPLICATION PROCESS

• North American Industry Classification
• System (NAICS) codes are required for the
• application and based on the firms primary
• activity information included in package.
  SBA
• size standards are applicable.
• For DBE purposes, the three (3) year annual
• gross receipts for the firm (including
  affiliates)
• cannot exceed 22.41million.period.

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DBE ELIGIBILITY CRITERIA

• Social and Economic Disadvantage
• Business Size Standards
• Personal Net Worth
• Ownership
• Control

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SOCIAL AND ECOMOMIC DISADVANTAGE

• United States citizens or lawfully admitted
• permanent residents who are
• Women
• African Americans
• Hispanic Americans
• Native Americans
• Asian-Pacific Americans
• Subcontinent Asian Americans
• Or..

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SOCIAL AND ECOMOMIC DISADVANTAGE
Any individual found to be both socially
and economically disadvantage, on a
case-by- case basis, by a certifying agency
pursuant to the standards of 49 CFR,
Part 26, Appendix E.
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PERSONAL NET WORTH (PNW) SIZE STANDARDS

• To be eligible for the program, an individuals
• personal net worth cannot exceed
• 1.32 million.
• DBE firms are also subject to applicable
• small business size standards in terms of
• annual receipts as determined by the United
• States Small Business Administration (SBA)
• (cannot exceed 22.41million)

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OWNERSHIP

• Majority ownership the firm must be owned
• and controlled by at least 51 percent by a
  
• socially and economically disadvantaged
• individual or group of individuals.
• Ownership must be real, substantial, and
• continuing going beyond pro forma
• ownership of the firm as reflected in the
• ownership documents.

for sake of as a matter of form.
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OWNERSHIP

• Disadvantaged owners must enjoy the
• customary incidents of ownership, and share
• in the risks and profits commensurate with
• their ownership interests as demonstrated by
• the substance, and not merely the form of
• arrangements.
• real, essential, essence

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CONTROL

• The socially and economically disadvantaged
• owner(s) must possess the power to direct or
  
• cause the direction of the management and
• polices of the firm as well as making the
• day-to-day and long-term decisions on
• matters of management, policy, and
• operations (e.g. By-laws, minutes,
  agreements, licensing, etc).

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CONTROL

• Only an independent business may be
• certified as a DBE. An independent
• business is one that the viability of which
  
• does not depend on its relationship with
• another firm or firms (e.g. personnel,
  facilities,
• equipment, financial support,
  relationships, resources
• etc. within normal industry practice).

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DBE APPLICATION PROCESS

• CUCP DBE Application Packages are available
  online
• at http//www.dot.ca.gov/hq/bep

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http//www.dot.ca.gov/hq/bep/business_forms.htm
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Page 2 of 8
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DBE APPLICATION CHECKLIST
Make sure you have submitted everything
requested! Photo ID indicating gender Duty
Statement
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SUPPLEMENTAL QUESTIONAIRE
This page must be completed. What areas of
California do you wish to or can work? BE
REALISTIC
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DBE APPLICATION PROCESS The Personal Financial
Statement (PFS)

• The PFS shall be completed by each socially
• and economically disadvantaged owner that
• make up the 51percent majority ownership of
• the firm.
• Note if an owner is married, all assets
• and liabilities for the owner and his/her
• spouse must be disclosed however,
• equity in the primary residence and
• ownership interest in the applicants firm
  is
• excluded by the certifying agency.

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PERSONAL FINANCIAL STATEMENT
Married owners must include all assets and
liabilities for both owner and his/her
Spouse. Page 2 is where real properties are
listed.
Also indicate if figures are for a married couple
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PERSONAL FINANCIAL STATEMENT PAGE 2
Information regarding your properties
owned. Attach separate sheet if needed.
Sign Date
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NAICS CODE

• Resource websites
• www.census.gov/eos/www/naics/
• www.naics.com

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APPLICANTS RESPONSIBILITY

• The Affidavit of Certification located at the
• end of the application must be signed,
  dated,
• and notarized prior to submitting to a
• certifying agency.
• If you have any questions concerning the
• application, call 916-324-1700.

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WHAT HAPPENS NEXT?

• Your application is assigned to an Analyst.
• Analyst reviews and assess eligibility.
• A Site Visit is schedule and conducted.
• Certification determination completed.

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ANNUAL UPDATE AFFIDAVIT

• All DBE firms are required to submit an
• Annual Update Affidavit (aka No Change
• Declaration, AUA) each year.
• The firms owner is declaring that there has
• been no changes affecting the firms ability
  to
• meet size standards, disadvantaged status,
• ownership, or control requirements as
• per 49 CFR, Part 26.
• In addition, the past years taxes for the firm
  
• must also be submitted.

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Annual Update Affidavit (AUA). 3 steps 1. 60
day letter 2. 30 day letter 3. Proposal to
remove
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I AM CERTIFIED! WHAT NOW?

• Be Proactive
• Educate yourself
• Market your firm
• Network
• Be prepared
• Caltrans Office Engineer (OE) webpage
• http//www.dot.ca.gov/hq/esc/oe/weekly_ads/all_adv
  ertised.php

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LEARNING OBJECTIVES

• DBE certification process
• Annual Update Affidavit (AUA ) requirements.
• how to find a certified firm on the California
  Unified Certification Program (CUCP) database.

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OFFICE OF BUSINESS ECONOMIC OPPORTUNITY

• On the web http//www.dot.ca.gov/hq/bep/
• Analyst of the Day
• [phone]