Presented by: Nathan HeitzmanProject Coordinator - PA DBE Supportive Services Center

PAUCP CERTIFICATION & CERTIFICATION PROCESS

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The DBE Supportive Services Center

The Center's mission is to provide services that will enable DBEs to acquire the proficiency, expertise and experience necessary to compete, on an equal basis, with non-DBEs for federally-assisted PennDOT highway contracts and subcontracts.

Visit the Center’s website at: www.PennDBE.co

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Before we get started, let’s review a few terms.

• DBE: Disadvantaged Business Enterprise

• PAUCP: Pennsylvania Unified Certification Program

• DGS: Pennsylvania Department of General Services.

• PennDOT: Pennsylvania Dept. of Transportation

• Business Partner: Any firm registered to do business with PennDOT

• ECMS: PennDOT Engineering & Construction Management System

• DBE SSC: Pennsylvania DBE Supportive Services Center

FEDERAL FEDERAL

US Small Business

Administration

FEDERAL

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PA Unified Certification

Program

STATESTATE

PA Department of General Services

What is the difference between certifications?

STATE FUNDEDSTATE

ADMINISTRED

FEDERALLY FUNDED

FEDERALLY ADMINISTRED

FEDERALLY FUNDEDSTATE

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What’s the purpose of the DBE program?The DBE program is USDOT’s program to include women & minorities owned business on federally funded transportation projects.

The DBE regulation applies to all recipients of Federal Aviation, Highway and/or Transit funds from US DOT in excess of $250/K for a given fiscal year.

FTA FHWA FAA

USDOT

BUS & TRAIN

ROAD & BRIDGE

PLANES & AIRPORTS

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What is the history of the DBE program?• A ‘New’ Disadvantaged Business Enterprise regulation

(49 CFR Part 26) was issued in 1999. It required One-Stop-Shopping for prospective DBE applicants - at the State level.

• All recipients of US DOT funds from the FAA, FHWA and/or FTA were required to sign an agreement establishing a Unified Certification Program in their state to provide this “One-Stop Shopping”

• Pennsylvania’s UCP was established by agreement in 2001

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Have there been any recent program changes?US Secretary for Transportation Ray LaHood announced Expansion of the DBE Program in January 2011 – Revisions to 49 CFR Part 26 became official February 28, 2011

Highlights:

• Adjustment of PNW for inflation

$750,000 in 1989 value adjusted to $1.32 million in current value.

• Increased Accountability for State DOTs

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What are the goals of the DBE program?• To ensure nondiscrimination in the award and

administration of DOT-assisted contracts

• Increase DBE competitiveness on DOT-assisted contracts

• To help remove barriers to the participation of DBEs in DOT-assisted contracts

• To increase the overall capacity of DBEs pursuing DOT-assisted contracts.

“Bridging the gap…”

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Who can become a DBE?

OWNERSHIP & CONTROL

DBE (Disadvantaged Business Enterprise) is a for-profit small business that:

• Is at least 51% owned by one or more individuals who are both socially and economically disadvantaged or, in the case of a corporation, in which 51% of the stock is owned by one or more such individuals; and . .

• Whose management and daily business operations are controlled by one or more of the Socially and Economically Disadvantaged individual(s) who own it.

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Who can become a DBE?SOCIAL DISADVANTAGE

Any individual who is a citizen (or lawfully admitted permanent resident) of the United States - who is:

1. Found by a recipient to be a socially disadvantaged individual on a case-by-case basis (Per 49 CFR Part 26 Appendix E).

2. Part of a group presumed to be socially disadvantaged:• Black Americans• Hispanic Americans• Native Americans• Asian-Pacific Americans• Subcontinent Asian Americans• Women• Others as designated by the SBA

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Who can become a DBE?

ECONOMIC DISADVANTAGE

• Each individual owner of a firm applying to participate as a DBE, whose ownership and control are relied upon for DBE certification is required to certify that he or she has a Personal Net Worth (PNW) that does not exceed $1.32 million.

• Certification of Economic Disadvantage is supported with a signed, notarized statement of Personal Net Worth (PNW), with appropriate supporting documentation.

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How do you calculate Personal Net Worth?

Assets* - Liabilities* = PNW

*Exclude:• An individual's ownership interest in the

applicant firm• The individual's equity in his or her primary

residence (except any portion of such equity that is attributable to excessive withdrawals from the applicant firm).

• Do not use a contingent liability to reduce an individual's net worth (example: co-signed loans).

• With respect to retirement assets bearing significant adverse tax or interest consequences, include only the present value of such assets, less the tax and interest penalties.

DBE Certification Process

in Pennsylvania

Who processes the applications for DBE Certification?

Certification vs. Registration

Five (5) Certifying Participants

Allegheny County Department of M/W/DBE

City of Philadelphia – Philadelphia International Airport

Pennsylvania Department of Transportation (PennDOT)

Port Authority of Allegheny County Southeastern PA Transportation

Authority (SEPTA)

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What is the benefit to firms?

• Increased access to US Department of Transportation funded contracts.

• Previously, a firm was required to Certify as DBE with EACH agency they wished to work for as a Disadvantaged Business Enterprise.

• PA UCP provides a statewide DBE certification program and ONE DBE Directory where all certified DBE firms are listed: www.paucp.com

• One DBE application and One certification review to obtain DBE certification recognized by All US DOT recipients in Pennsylvania.

Download the application for DBE Certification.Download the full list of all Certified DBEs in Pennsylvania.

www.paucp.com

PAUCP Website

VISIT WWW.PAUCP.COM FOR MORE INFO ON THE

PA UNIFIED CERTIFICATION PROGAM

Can I obtain an application from the website?

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USE THE SEARCH TOOL

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How do you search for DBE firms?

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What is the value in being certified?

• DBE Certification is a tool helping firms to gain access to opportunities:

• A key that facilitates getting a foot in the door (or window) to build experience and reputation

• A marketing tool – Adding Value in Business Dealings

• Must a business have the DBE Certification to do business with recipients of FAA/FHWA/FTA funds?

NO! . . . but it helps.

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What are some things I should consider before applying?

• Consider the type of work you do; or want to do – as a Business

• Certify in the area most beneficial to your Greatest Strength or Competitive Advantage

• Horizontal Construction: PA UCP – DBE

• Vertical Construction: DGS – M/WBE

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Application Completion Tips

• Fill out the ENTIRE certification application.

• If it doesn’t apply to you, write: “N/A”

• If you don’t have the attachment: insert a page in its place explaining why

• Fill out the entire* PNW (Personal Net Worth) Calculation Sheet from most recent records (within the 3 months before submission)

*Don’t forget to SIGN it

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How does the application process work?

• Once received, Certification Applications are reviewed for Completeness• If Complete – PA UCP has 90 days• If not Complete – they’ll tell you what is needed

in writing• Review of Complete File• On-Site Visit is Scheduled and Conducted• Final Review: Complete File + Site Visit Findings• Final Decision is Rendered via Letter

PAUCP BROCHUREWhat is a DBE?

A DBE is a for-profit small business concern that is at least 51% owned by one or more individuals who are both socially and economically disadvantaged or, in the case of a corporation, in which 51% of the stock is owned by one or more such individuals; and whose management and daily business operations are controlled by one or more of the socially and economically disadvantaged individuals who own it.

How to become a DBE with PAUCP

Minority and women businesses interested in being certified by the PA Unified Certification Program (PA UCP) must submit an application to one of the Certifying Participants. Instructions and applications are available for your convenience on www.paucp.com and may be printed. Applications may also be obtained by contacting any of the Certifying Participants.

The application must be mailed or physically delivered to one of the Certifying Participants. The application must be signed and notarized. The application must also be complete and include all of the supportive documentation. All applications will be reviewed and verified. Additional information may be requested and an on-site interview will be conducted prior to a final decision.

Any questions, please contact:

THE DBE SUPPORTIVE SERVICES CENTER 877-PENN-DBE

PENNDBE@CHEYNEY.EDUWWW.PENNDBE.COM

DBE SSC – Cheyney UniversityP. 610.399.2387

ANY QUESTIONS?

Thank you for your time.

PA DBE Supportive Services CenterPresented By