A Disadvantaged Business Enterprise or DBE is a for-profit small business concern that is at least 51 percent owned by one individual or at least two individuals who are both socially and economically disadvantaged. In the case of a corporation, 51 percent of the stock must be owned by one or more socially and economically disadvantaged individuals. In addition, the business management and daily business operations are controlled by one or more of the socially and economically disadvantaged individuals who own it.
The complete list of eligibility requirements for DBE certification is stated in 49 CFR, Part 26 and can be viewed online at http://www.fhwa.dot.gov/HEP/49cfr26.HTM . The following six requirements must be proved by a DBE applicant; please note that these do not cover all the requirements found in 49 CFR, Part 26.
- Social and Economic Disadvantage: A DBE owner must be a U.S. Citizen (or resident alien) and meet the federal definition of socially and economically disadvantaged as defined in 49 CFR Part 26.67. Presumptive groups include women, Black Americans, Hispanic Americans, Native Americans, Asian-Pacific Americans, Subcontinent Asian-Americans or other minorities found to be disadvantaged by the federal regulations. Other individuals may be found to be socially and economically disadvantaged on a case-by-case basis.
- Personal Net Worth: Only disadvantaged persons (based on 49 CFR Part 26.67) having a personal net worth (PNW) of less than $750,000 can be considered as a potential owner of a qualified DBE company. Items excluded from the calculation of a person's net worth include an individual's ownership interest in the applicant firm, and his or her equity in their primary residence.
- Business Size Standard: The DBE firm (including affiliates) must be a small business as defined by the Small Business Administration (SBA). Its annual gross receipts for the three previous fiscal years cannot have exceeded $22,410,000 (or $52,470,000 for airport concessions in general with some exceptions). Depending on the type of work the business performs, other size standards may apply.
- Ownership: The DBE must be a for-profit small business concern where socially and economically disadvantaged individuals own at least 51 percent interest and control management and daily business operations.
- Independence: The DBE must not be affiliated with another firm in such a way as to compromise its independence and control. Independence should be achieved in areas including, but not limited to, personnel, facilities, equipment, financial and/or bonding support, and other resources.
- Management and Control: The DBE owner (s) must possess the power to direct or cause the direction of the management and policies of the firm and to make day-to-day decisions, as well as long-term decisions on matters of management, policy and operations.
In an effort to eliminate inequalities and disparities between entities that do business with DOTs in each state, each state DOT administers the DBE program with one DBE officer presiding as a liaison officer. Here in Georgia, that DBE liaison officer is Michael G. Cooper, Director. He and his staff have a dedicated goal to help eligible businesses become DBE-certified so they can become part of the Georgia Unified Certification Program and bid on federally funded highway construction and other projects on equal footing with larger corporations.
The Georgia Unified Certification Program (UCP) is a cooperative effort in the state of Georgia to provide a one-stop shop of information for all DBE firms and those seeking business opportunities with DBE certified firms.
The Georgia UCP is comprised of the Georgia Department of Transportation (Georgia DOT) and the Metropolitan Atlanta Rapid Transit Authority (MARTA). Georgia DOT and MARTA accept DBE certification applications and conduct certification reviews. Once reviews are completed, eligible firms are DBE certified. Your certification will be valid for all of the agencies in the UCP.
Certification is a way for your business to participate in Georgia’s DBE Program. Certification gives groups that have been historically under-represented in the construction contracting industry a chance to work on Georgia DOT federally funded highway projects; each of these projects have goals for DBE business participation.
The main reason to become certified is so that your firm can bid and compete on contracts and subcontracts in a fair, competitive environment. By obtaining DBE certification through Georgia DOT, your participation on some DOT-assisted contracts will count toward the established DBE participation goal. DBE goals are established for projects funded by the federal government. If your company is interested in these contracts, you should apply for DBE certification with Georgia DOT or MARTA with the Georgia Uniform Certification Program (UCP). If your firm is certified at Georgia DOT, it is not necessary to apply or reapply with MARTA.
To become certified, you must file an application with the Georgia DOT Uniform Certification Program (UCP) and go through a review process. Georgia DOT staff decides whether you are eligible after a thorough review of your firm's ownership, control, financial and managerial documents, and whether you have the equipment needed to do the work of a given contract. As part of the review, Georgia DOT staff will conduct a site visit to your firm's office unless the firm is located out of state In this case, Georgia DOT will contact your home state DOT office to request a copy of the most recent site visit.
No. Any firm may compete for any Georgia DOT contract as a prime contractor or as a subcontractor, regardless of whether or not the firm is a certified DBE. However, if your firm seeks to perform work on a contract as a DBE, you must first obtain DBE certification through the Georgia DOT Uniform Certification Program.
Disadvantaged Business Enterprise (DBE) Program
Equal Employment Opportunity Division
Georgia Department of Transportation
600 W. Peachtree Street, N.W., 7th Floor
Atlanta, GA 30308
When Georgia DOT establishes a contract goal for DBE participation, prime contractors seek out qualified DBE firms to meet contract goals. In general, prime contractors look for firms that are already Georgia DOT-certified as DBEs.
Being a Georgia DOT-certified DBE provides your firm with opportunities for future growth by making it easier to market your services to other Georgia DOT contractors, including listing your firm’s capabilities in the Georgia DOT Directory of Certified DBE Firms. Many contractors use this directory to identify DBEs for participation in their contracts.
No, it does not guarantee work to a firm. The DBE Program is design to assist the development of disadvantaged small businesses, and to guarantee them fair opportunities to compete for Georgia business. To be successful as a DBE, you must market yourself, your personnel and the quality of your services.
No. There is no cost for the certification process.
Hard copies of the DBE certification application are available on the 7th Floor at One Georgia Center, 600 West Peachtree Street, NW, Atlanta, Georgia 30303 or you can visit our website at http://www.dot.state.ga.us download the pdf application, complete and submit.
For certification applications or additional information about the certification process, please contact Georgia DOT’s Office of Equal Opportunity at 404-631-1972.
No, it all falls under the same umbrella as the DBE Program.
Yes, the DBE certification will allow you to participate on federally funded transportation projects with other agencies, local governments and MARTA.
Yes, the same application form is used for Airport Concession DBEs (ACDBE). The applicant must indicate ACDBE in the firm’s primary description.
On the average, it takes 90 days to process an application for certification after all required information and documents are submitted. It is helpful if the applicant provides concise and complete answers to all questions.
In fairness to all applicants, we must process each application in the order received. If time is a factor, please contact a certification analyst for more details by calling (404) 631-1972. However, the file analyst can only make an eligibility recommendation to the DBE Administrator after all requested documentation has been received. The process also requires an on-site visit to the business premises to assess managerial and operational aspects of the firm.
The certification application is first reviewed to ensure all information is complete. If all required documents from the checklist are submitted as required, the application is assigned to a Georgia DOT DBE Coordinator who reviews the file and schedules and conducts a site visit to the business. Based on all submitted information and the site visit, the DBE Coordinator issues a recommendation to accept or deny the application for DBE eligibility. If your firm’s application is approved, a Certification Letter is issued to the applicant. If your firm is denied certification, the applicant is given an opportunity to appeal the denial.
Yes. However, submitting an incomplete application will take longer to process and will delay your achievement of DBE certification. If the submitted application is missing more than three (3) required documents, the application will be returned to the applicant requesting the additional information before processing continues. It is important that all answers be accurate and complete. If a question is not applicable, then indicate "not applicable" or "n/a".
The on-site evaluation is a regulatory requirement. The Federal regulations states in 49 CFR Part 26.83 subpart C, section 1:
“Perform an on-site visit to the offices of the firm. You must interview the principal officers of the firm and review their résumés and/or work histories. You must also perform an on-site visit to job sites if there are such sites on which the firm is working at the time of the eligibility investigation in your jurisdiction or local area. You may rely upon the site visit report of any other recipient with respect to a firm applying for certification.”
The main purpose of the on-site visit as part of the certification process is to confirm information in the application and supporting documentation. It gives us a chance to see the business facilities, understand the daily management processes, and answer any remaining questions we have about a company’s eligibility. It also gives the company owners the chance to talk face-to-face with someone who knows about the DBE Program and can answer questions or give other information.
The threshold for each owner(s) shall be no greater than $750,000. Only disadvantaged persons having a personal net worth 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.
The majority disadvantaged owner(s) whose ownership and control is/are being relied upon for DBE certification should complete a Personal Financial Statement (PFS). Usually this is the person who owns 51 percent or more of the firm. If two disadvantaged owners make up a majority of 51 percent ownership, both will be required to complete the PFS. For example, if Owner A owns 33 percent; Owner B owns 33 percent; and Owner C owns 34 percent, the two disadvantaged owners whose ownership and control is being relied upon must complete the PFS.
Yes, you must indicate the current market value of your primary residence on the PFS form together with any debt you owe against it. However, the equity in your primary residence does not count toward the allowed $1,300,000 net worth; the adjustment will be made by your certification analyst.
The Georgia DOT DBE Program must comply with confidentiality requirements and we take this responsibility seriously. All files are kept behind locked doors, in offices with access restricted to DBE Certification staff.
The original certification is valid for three years. On the anniversary date of certification each year during the three-year period, the applicant will be required to submit a "No Change Affidavit." This Annual Affidavit of No Change confirms that no change has occurred impacting the business’ DBE status, including no changes in the firm’s circumstances affecting its ability to meet size, disadvantaged status, ownership or control requirements. This update also requires you to submit the most recent business and signed personal taxes. It is important to remember this requirement for updated information annually. In the third year, your firm will go through a re-certification process; you will be sent reminders of these annual requirements as the time approaches.
No, obtaining Georgia DOT DBE certification does not serve as a guarantee of work or that you’ll receive a contract. The program provides the tools for your business to effectively compete and remove any barriers or limitations in the state procurement process for small, women- and minority-owned businesses. You will still need to aggressively market your business, network, and competitively bid for projects or contracts.
Yes. However, your firm must first be certified in your home state. You must fill out the appropriate application in the state in which you reside. For example, if your firm is based in Alabama, you must proceed through Alabama’s DBE certification process before seeking work as a DBE in Georgia. In turn, if you are certified as a DBE here in your home state of Georgia, you can then apply for certification in another state. The out-of-state UCP partner or agency can request the on-site report from Georgia UCP.
Yes. Unfortunately, we do not have reciprocal certification with other states. You need to make a new application in each state in which you wish to work.
You may appeal a decision if you feel all the facts have not been duly considered. To do so, please respond in writing within 90 days from the date of your denial letter to:
U.S. Department of Transportation
Departmental Office of Civil Rights W76 S33
External Civil Rights Programs
1200 New Jersey Ave. SE 7th Floor
Washington, D.C. 20590
Attn: Joseph Austin
Your letter to the U.S. Department of Transportation must contain the following:
- information and arguments concerning why Georgia DOT’s decision should be reversed; and
- the name and address of any other U.S. DOT recipient/agency which has certified the firm, or which has rejected an application for certification from the firm, or removed the firms’ eligibility within one year prior to the date of the appeal, or before which an application for certification or a removal of eligibility is pending.
Georgia DOT periodically retains a supportive services consultant to support the successful business growth of DBE firms. We understand that there is much for business owners to learn about the agency and the transportation industry to be successful. Regularly scheduled workshops provide:
- Information about how to obtain project bidding documents and plans;
- Assistance in reading project design plans;
- Assistance in working with and for prime contractors;
- Information about relevant Georgia DOT policies, procedures and office contacts;
- Assistance in developing loan packages and financial statements;
- Other assistance from our consulting firm when requested and approved.
For more information, contact Georgia DOT by any of the following options:
Michael Cooper, EEO Director
One Georgia Center
600 West Peachtree Street, NW (7th Floor)
Atlanta, Georgia 30308
Phone: (404) 631-1972
Fax: (404) 631-1943
Website: http://www.gdot.ga.gov
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