Should I/WE apply for Disadvantaged Business Enterprise Program (DBE)?

If you can answer “Yes” to the following questions a door of opportunity may be around the corner and you may be eligible to participate in the U.S. Department of Transportation (DOT) DBE program, or other government agencies programs. Government procurement is big business, and federal agencies are actively seeking DBEs vendors.

  • Is your firm at least 51%-owned by a socially and economically disadvantaged individual(s) who also controls the firm?
  • Is the disadvantaged owner a U.S. citizen or lawfully admitted permanent resident of the U.S.?
  • Is your firm a small business that meets the Small Business Administration’s (SBA’s) size standard and does not exceed $17.42 million in gross annual receipts?
  • Is your firm organized as a for profit business?

Most programs will ask you fill out a detail certification application unless you are currently certified by the SBA as an 8(a) and/or SDB firm, then you may eligible for a streamlined certification application process.

Be prepare to sign an affidavit of certification that you have read and understood all of the questions in the application and that all of the foregoing information and statements submitted in the application and its attachments and supporting documents are true and correct to the best of your knowledge, and that all responses to the questions are full and complete, omitting no material information. An the responses include all material information necessary to fully and accurately identify and explain the operations, capabilities and pertinent history of your firm as well as the ownership, control and affiliations thereof.

You must also agree that the information submitted in your application is for the purpose of inducing certification approval by a government agency. For government agency program you understand that a government agency may, by means it deems appropriate, determine the accuracy and truth of the statements in the application, and that you authorize such agency to contact any entity named in the application, and your firm bonding companies, banking institutions, credit agencies, contractors, clients, and other certifying agencies for the purpose of verifying the information supplied and determining your firm’s eligibility.

You also must willing to submit to government audit, examination and review of books, records, documents and files in whatever form they exist,  of your firm and is affiliates, inspection of its places(s) of business and equipment, and to permit interviews of its principals, agents, and employees.  You understand that refusal to permit such inquiries shall be grounds for denial of certification.

It in your best interest to provide correct information, under Sec.26.107 of 49 CFR Part 26, dated February 2, 1999, if at any time, the Department or a recipient has reason to believe that any person or firm has willfully and knowingly provided incorrect information or made false statements, the Department may initiate suspension or debarment proceedings against the person or firm under 49 CFR Part 29, take enforcement action under 49 CFR Part 31, Program Fraud and Civil Remedies, and/or refer the matter to the Department of Justice for criminal prosecution under 18 U.S.C. 1001, which prohibits false statements in Federal programs.

Why do you want to take the time to get a certification, because you want to put your firm in a position to get a contracts? These programs are design to create a level playing field on which DBEs can compete fairly for contracts and to ensure that only firms that fully meet the eligibility standards are permitted to participate as DBEs. Government contracting offices buy just about everything offered in the marketplace, and you only need one big contract or several small contracts to make it worth wild. Every year the federal government awards over $500 billion for services and products to large and small businesses nationwide. Total federal spending for fiscal year 2012 was over $3 trillion. For detail search the Office of Management and Budget, Budget of the U.S. Government.

Goals for Small business subcontracting as set forth by Public Laws:

 

Business Type                        Goal                 Public Law

Small Business                           23%                 PL: 100-656

SDB                                             5%                      PL:    99-661

 

 

 

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