TDOT Civil Rights Office Small Business Development Program.

TDOTTDOTCivil Rights OfficeCivil Rights Office

Small BusinessSmall BusinessDevelopment Development

ProgramProgram

The DBE program is intended The DBE program is intended to remedy past and current to remedy past and current discrimination against discrimination against disadvantaged business disadvantaged business enterprises, to ensure a “level enterprises, to ensure a “level playing field,” on which DBEs playing field,” on which DBEs can compete fairly for can compete fairly for contracts.contracts.

Statement of CommitmentStatement of Commitment

What is the program?What is the program?This program was developed by the This program was developed by the Federal Highway Administration and Federal Highway Administration and is administered by the Tennessee is administered by the Tennessee Department of Transportation Civil Department of Transportation Civil Rights Office Small Business Rights Office Small Business Development Program to encourage Development Program to encourage minority, female and other minority, female and other disadvantaged firms to work in the disadvantaged firms to work in the highway/bridge industry. Both state highway/bridge industry. Both state and federal construction projects and federal construction projects and monies are included in it. and monies are included in it.

DBE ProgramDBE Program

Owners must possess the expertise to control the daily operations Owners must possess the expertise to control the daily operations and management of the firm.and management of the firm.

Owners must be able to show ownership of at least 51% of the firm Owners must be able to show ownership of at least 51% of the firm through real and substantial investments of capitalthrough real and substantial investments of capital . .

Owners’ net worth must not exceed $750,000. (excluding personal residence Owners’ net worth must not exceed $750,000. (excluding personal residence and stock/ownership in the potential DBE firm).and stock/ownership in the potential DBE firm).

Call the Small Business Development Program in Nashville at (615) 741-3681 Call the Small Business Development Program in Nashville at (615) 741-3681 or 1-888-370-3647 for further information or check our web-siteor 1-888-370-3647 for further information or check our web-site @: @: www.tdot.state.tn.us/civil-rights/smallbusiness/

Who can qualify as a DBE?Who can qualify as a DBE?

DBE Ethnic ClassificationsDBE Ethnic ClassificationsMBEMBE Minority Male Business EnterpriseMinority Male Business Enterprise

MFBEMFBE Minority Female Business EnterpriseMinority Female Business Enterprise

AIAAIA Asian Indian AmericanAsian Indian American

APAAPA Asian Pacific AmericanAsian Pacific American

BABA Black AmericanBlack American

HAHA Hispanic AmericanHispanic American

NANA Native AmericanNative American

WFBEWFBE White Female Business EnterpriseWhite Female Business Enterprise

Distribution of All DBEs by Distribution of All DBEs by RegionRegion

RegionRegion Geographic AreaGeographic AreaNumber of Number of

DBEsDBEsPercent of Percent of

DBEsDBEs

II Knoxville and Upper East TennesseeKnoxville and Upper East Tennessee 3737 14%14%

IIII Chattanooga and Southeast TennesseeChattanooga and Southeast Tennessee 2626 10%10%

IIIIII Nashville and Middle TennesseeNashville and Middle Tennessee 5151 20%20%

IVIV Memphis and West TennesseeMemphis and West Tennessee 4444 17%17%

N/AN/A Out of StateOut of State 9999 39%39%

Region IV30%

Region III22%

Region II10%

Region I8%Out of State

30%

Region I

Region II

Region III

Region IV

Out of State

17%9%

37%36% % of Instate

Contractors

% of InstateConsultants

% of InstateSuppliers

% of InstateOther

DBE Breakout By CategoryDBE Breakout By Category

Commercially Useful Function Commercially Useful Function (CUF)(CUF)

Expectations of State DBE ProgramExpectations of State DBE Program

1.1. Definition of CUF, is that the Definition of CUF, is that the DBE is responsible for the DBE is responsible for the execution of the work where the execution of the work where the DBE manages, supervises, DBE manages, supervises, obtains the materials, and obtains the materials, and performs the work items with performs the work items with his/her own forces.his/her own forces.

Commercially Useful Function Commercially Useful Function Cont’dCont’d

2.2. If a DBE is found not to be If a DBE is found not to be performing a CUF, no credit toward performing a CUF, no credit toward the prime’s DBE goal for that work the prime’s DBE goal for that work will be credited.will be credited.

3.3. No sharing of resources, i.e., No sharing of resources, i.e., equipment, employees, etc., should equipment, employees, etc., should be allowed without prior approval be allowed without prior approval of the awarding authority.of the awarding authority.

Commercially Useful Function Commercially Useful Function Cont’dCont’d4.4. If the DBE is If the DBE is

performing according to performing according to “industry practice” “industry practice” which conflicts with the which conflicts with the DBE program DBE program requirements, the DBE requirements, the DBE program requirements program requirements prevails.prevails.

Monitoring ResponsibilitiesMonitoring Responsibilities

Prime contractors have an Prime contractors have an obligation to make every effort in obligation to make every effort in complying w/ intent when awarded complying w/ intent when awarded goal projects.goal projects.

TDOT Project Engineers, in TDOT Project Engineers, in addition to assigned addition to assigned responsibilities from the Region, responsibilities from the Region, monitor CUF functions and other monitor CUF functions and other DBE matters.DBE matters.

Monitoring Responsibilities Monitoring Responsibilities

Cont’dCont’d SP 1247: Requires contractors to make an SP 1247: Requires contractors to make an effort to use DBEs for subcontracts or effort to use DBEs for subcontracts or suppliers on federal-aid contracts. TDOT suppliers on federal-aid contracts. TDOT tracks usage & reports to FHWA & the tracks usage & reports to FHWA & the Commissioner.Commissioner.

In the event a CUF issue occurs, the In the event a CUF issue occurs, the Regional Project Engineer must contact Regional Project Engineer must contact the Regional Contract Compliance Officer the Regional Contract Compliance Officer immediately to ensure the problem comes immediately to ensure the problem comes to a prompt resolution.to a prompt resolution.

Monitoring Responsibilities Monitoring Responsibilities Cont’d Cont’d

Replacement: A DBE can Replacement: A DBE can only be replaced w/ approval only be replaced w/ approval from the Civil Rights Office from the Civil Rights Office SBDP. A letter, from the SBDP. A letter, from the prime, should be written prime, should be written stating: reason for stating: reason for replacement, company they replacement, company they wish to use, & if company’s wish to use, & if company’s not a DBE, the good faith not a DBE, the good faith effort used in finding DBE as effort used in finding DBE as substitute.substitute.

TDOT’s Special Provision (SP) 1247 requires contractors to make an TDOT’s Special Provision (SP) 1247 requires contractors to make an effort to use DBEs for subcontracts or suppliers on federal-aid effort to use DBEs for subcontracts or suppliers on federal-aid contracts. TDOT tracks usage & reports to Federal Highway contracts. TDOT tracks usage & reports to Federal Highway Administration (FHWA) & the Commissioner of TDOT. Prime Administration (FHWA) & the Commissioner of TDOT. Prime contractors have an obligation to make every effort in complying w/ contractors have an obligation to make every effort in complying w/ intent whenintent when awarded goal projects.awarded goal projects.

Posted on the Civil Right’s Small Business Development Posted on the Civil Right’s Small Business Development Program’s website @:Program’s website @:

www.tdot.state.tn.us/civilrights/smallbusiness/docs/SP1247.pdfwww.tdot.state.tn.us/civilrights/smallbusiness/docs/SP1247.pdf(It can be made available for those that do not have Internet access)

How To Comply With DBE How To Comply With DBE Utilization RequirementsUtilization Requirements

DBE Highway & BridgeDBE Highway & BridgeConstruction Work AreasConstruction Work Areas

• Paving• Concrete Construction:

Reinforcement Steel• Specialty Items: Guardrail & Fence Placement

Pavement Scoring• Earthwork Services• Drainage:

Placement of Lateral Underdrains & Catchbasins• Consultants• Suppliers• Professional Services

TDOT’s FFY 2009 DBE Goal TDOT’s FFY 2009 DBE Goal ProjectionProjection

GoalGoal

Race ConsciousRace Conscious

4.49%4.49%

(Department Requiring (Department Requiring Contractor Utilize DBE Contractor Utilize DBE

Participation)Participation)

Non-GoalNon-Goal

Race NeutralRace Neutral

2.78%2.78%

(Contractor Selects DBE (Contractor Selects DBE Participation)Participation)

* Combination Of DBE Goals Set On Individual Construction Projects By SBDP & Construction Staff For * Combination Of DBE Goals Set On Individual Construction Projects By SBDP & Construction Staff For Entire Federal Fiscal Year (October – September)Entire Federal Fiscal Year (October – September)

Right-Of-WayRight-Of-Way

PlanningPlanning

EnvironmentalEnvironmental

DesignDesign

ConstructionConstruction

Goal: 7.27%*Goal: 7.27%*

Small Business Development Small Business Development Program Organizational ChartProgram Organizational Chart

Cammie Davenport WoodleExecutive Director

David NeeseBGP Mgr/SBD Coordinator

Deborah LuterDirector

Ross WebbCertification Contract Compliance Officer

Virgil White OwlDBE Contract Compliance Officer

Business Resource Group, LLC.Supportive Services

Sherri MaysContract Compliance Officer

Stephanie BrooksContract Compliance Officer

Cheryl HarlestonAdministrative Secretary

Should you have any questions/concerns Should you have any questions/concerns regarding the DBE Program or issues regarding the DBE Program or issues regarding DBEs on projects, you may regarding DBEs on projects, you may

contact:contact:

Deborah LuterDeborah LuterSmall Business Development Program Small Business Development Program

DirectorDirector

(888) 370-3647 Toll Free(888) 370-3647 Toll Free(615) 741-3681 Phone(615) 741-3681 Phone

(615) 741-3169 Fax(615) 741-3169 Fax

[email protected]@state.tn.us