TDOT Civil Rights Office Small Business Development Program

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

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

Who can qualify as a DBE? Owners must possess the expertise to control the daily operations and management of the firm. Owners must be able to show ownership of at least 51% of the firm through real and substantial investments of capital. Owners’ net worth must not exceed $750,000. (excluding personal residence and stock/ownership in the potential DBE firm). Call the Small Business Development Program in Nashville at (615) 741-3681 or 1-888-370-3647 for further information or check our web-site @: www.tdot.state.tn.us/civil-rights/smallbusiness/

DBE Ethnic Classifications MBE Minority Male Business Enterprise MFBE Minority Female Business Enterprise AIA Asian Indian American APA Asian Pacific American BA Black American HA Hispanic American NA Native American WFBE White Female Business Enterprise

Distribution of All DBEs by Region Geographic Area Number of DBEs Percent of DBEs I Knoxville and Upper East Tennessee 37 14% II Chattanooga and Southeast Tennessee 26 10% III Nashville and Middle Tennessee 51 20% IV Memphis and West Tennessee 44 17% N/A Out of State 99 39%

DBE Breakout By Category

Commercially Useful Function (CUF) Expectations of State DBE Program 1. Definition of CUF, is that the DBE is responsible for the execution of the work where the DBE manages, supervises, obtains the materials, and performs the work items with his/her own forces.

Commercially Useful Function Cont’d 2. If a DBE is found not to be performing a CUF, no credit toward the prime’s DBE goal for that work will be credited. 3. No sharing of resources, i.e., equipment, employees, etc., should be allowed without prior approval of the awarding authority.

Commercially Useful Function Cont’d 4. If the DBE is performing according to “industry practice” which conflicts with the DBE program requirements, the DBE program requirements prevails.

Monitoring Responsibilities Prime contractors have an obligation to make every effort in complying w/ intent when awarded goal projects. TDOT Project Engineers, in addition to assigned responsibilities from the Region, monitor CUF functions and other DBE matters.

Monitoring Responsibilities Cont’d SP 1247: Requires contractors to make an effort to use DBEs for subcontracts or suppliers on federal-aid contracts. TDOT tracks usage & reports to FHWA & the Commissioner. In the event a CUF issue occurs, the Regional Project Engineer must contact the Regional Contract Compliance Officer immediately to ensure the problem comes to a prompt resolution.

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

How To Comply With DBE Utilization Requirements TDOT’s Special Provision (SP) 1247 requires contractors to make an effort to use DBEs for subcontracts or suppliers on federal-aid contracts. TDOT tracks usage & reports to Federal Highway Administration (FHWA) & the Commissioner of TDOT. Prime contractors have an obligation to make every effort in complying w/ intent when awarded goal projects. Posted on the Civil Right’s Small Business Development Program’s website @: www.tdot.state.tn.us/civilrights/smallbusiness/docs/SP1247.pdf (It can be made available for those that do not have Internet access)

DBE Highway & Bridge Construction 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 Projection Race Conscious 4.49% (Department Requiring Contractor Utilize DBE Participation) Non-Goal Race Neutral 2.78% (Contractor Selects DBE Participation) Goal: 7.27%* * Combination Of DBE Goals Set On Individual Construction Projects By SBDP & Construction Staff For Entire Federal Fiscal Year (October – September)

Small Business Development Program Organizational Chart

Small Business Development Program Director Should you have any questions/concerns regarding the DBE Program or issues regarding DBEs on projects, you may contact: Deborah Luter Small Business Development Program Director (888) 370-3647 Toll Free (615) 741-3681 Phone (615) 741-3169 Fax Deborah.Luter@state.tn.us