1. 1 Florida Department of Transportation Equal Opportunity Office 2014 Disadvantaged Business Enterprise (DBE) Program & Business Development Initiative

2. 2 Disadvantaged Business Enterprise Program Governed by 49 CFR Part 26 Definition: –DBE means a for-profit small business concern That is at least 51 percent owned by one or more individuals who are both socially and economically disadvantaged or, in the case of a corporation, in which 51 percent 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.

3. 3 Disadvantaged Business Enterprise Program True or False: If I am a Hispanic female, my 501(c)(3) company can be certified as a DBE.

4. 4 Disadvantaged Business Enterprise Program FALSE

5. 5 Socially Disadvantaged Presumed Groups –Women –Black Americans –Hispanic Americans –Native Americans –Asian-Pacific Americans –Subcontinent Asian Americans Others if Documented

6. 6 Socially Disadvantaged Individuals Must be a U.S. Citizen or Permanent Resident Alien Must Show Ownership –51% by Disadvantaged Owner –Real & Substantial; Not Just on Paper –Contribution of Capital or Expertise Must Control Business –Independent – Does Not rely on Others –Makes Day to Day & Long Term Decisions

7. 7 Economically Disadvantaged True or False: My family & I just moved into a $3.2M home on the coast & I won a million dollars in the lottery. I can still run my DBE company.

8. 8 Economically Disadvantaged TRUE

9. 9 Economically Disadvantaged Personal Net Worth At or Below $1.32M Each Qualifying Owner Exclude Ownership in Business Exclude Equity in Primary Residence

10. 10 DBE Certification Process New Applicant DBE Application 90 days to process * If Application is Complete* Desk Review Conducted Additional Information Collected On-site Review Conducted Facts and Concerns gathered File given to Certification Manager (by the 60 th day after all information received and on-site conducted)

11. 11 Certified DBEs (As of 1/31/14) Black Americans317(23.92%) Hispanic Americans350(26.42%) Native Americans 26 (1.96%) Asian Pacific Americans 71 (5.36%) Subcontinent Asian 52 (3.93%) Women505(38.11%) Other 4 (0.30%) Total 1325

12. 12 DBE Percentages Federal DBEFederal % State %Combined % Fiscal YearGoalAchieved Achieved Achieved 2003-20047.5% 7.55% 7.92% 7.78% 2004-20057.5% 8.03% 7.50% 7.72% 2005-20067.9% 8.06% 9.11% 8.71% 2006-2007 8.1% 8.15% 9.96% 9.35% 2007-20088.1% 7.75% 9.49% 9.00% 2008-20098.12% 8.16% 10.00% 9.08% 2009-20108.18% 8.33% 10.13% 8.79% 2010-20118.18% 8.50% 13.63% 10.02% 2011-20128.60% 10.31% 12.71% 11.45% 2012-20138.60% 11.78% 10.88% 11.38%

13. 13 What the 2013 percentage means in $$ Federal DBEFederal % State %Combined % Fiscal YearGoalAchieved Achieved Achieved 2012-20138.60% 11.78% 10.88% 11.38% $3,689,333,483 awarded for Federal & State projects 11.38% Committed to DBEs $419,752,973 in DBE Participation

14. What the percentage means in the future In January, Governor Scott announced that the Florida Department of Transportation (FDOT) will receive $8.8 billion in Florida’s budget to make strategic transportation infrastructure improvements throughout the state 11% or $8.8 billion = $968,000,000 14

15. BUSINESS DEVELOPMENT INITIATIVE

16. BACKGROUND Purpose:Purpose: to increase competitionto increase competition move subs to primesmove subs to primes Began in July 2006 (District Two)Began in July 2006 (District Two) January 2007 in all districtsJanuary 2007 in all districts FHWA approved in March 2009FHWA approved in March 2009 March 2012 became the Small Business Component of the DBE Program PlanMarch 2012 became the Small Business Component of the DBE Program Plan Business Development Initiative

17. STRATEGIES Reserve contracts for small businessesReserve contracts for small businesses Contracts are up to $1,000,000Contracts are up to $1,000,000 Modified pre-qualification requirementsModified pre-qualification requirements Waive bonds on contracts of a non-critical natureWaive bonds on contracts of a non-critical nature Business Development Initiative

18. ELIGIBILITY Meet USDOT definition of a small businessMeet USDOT definition of a small business SBA size standardsSBA size standards Capped by USDOT at $22.41Capped by USDOT at $22.41 In the process of revisingIn the process of revising Submit notarized affidavitSubmit notarized affidavit Provide referencesProvide references Professional Services must still be prequalifiedProfessional Services must still be prequalified Business Development Initiative

19. RESULTS – RESERVED CONTRACTSRESULTS – RESERVED CONTRACTS 260 contracts reserved 260 contracts reserved 88 professional services 88 professional services 116 construction 116 construction 56 maintenance56 maintenance $66.3 Million reserved $66.3 Million reserved $28.3 million in professional services $28.3 million in professional services $27.8 million in construction $27.8 million in construction $10.2 million in mainten $10.2 million in mainten Business Development Initiative

20. RESULTS – RESERVED CONTRACTSRESULTS – RESERVED CONTRACTS 119 different small businesses awarded contracts 119 different small businesses awarded contracts 24 or 29% were DBEs 24 or 29% were DBEs 36 or 44% had their first FDOT contract 36 or 44% had their first FDOT contract 28 small businesses were awarded multiple contracts 28 small businesses were awarded multiple contracts 7 were DBEs 7 were DBEs 34% of BDI reserved projects are professional services contracts 34% of BDI reserved projects are professional services contracts Business Development Initiative

21. 21 BDI PROGRAM For a list of reserved contracts, you can visit http://www.dot.state.fl.us/equalopportunityoffice/reserved Contracts.shtm http://www.dot.state.fl.us/equalopportunityoffice/reserved Contracts.shtm For more information on the BDI, please visit http://www.dot.state.fl.us/equalopportunityoffice/bdi.shtm or email fdot.bdi@dot.state.fl.us http://www.dot.state.fl.us/equalopportunityoffice/bdi.shtmfdot.bdi@dot.state.fl.us

22. Equal Opportunity Office Services for Small and Disadvantaged Businesses Construction Management Development Program Bond Guarantee Program DBE Support Services Program Specialized Development Program 22

23. Construction Management Development Program Administered by the Construction Estimating Institute Offers classroom, online and on the job training and support designed to improve technical and business management skills Assistance with learning how to do business with FDOT 23

24. CMDP Classroom Training 5 Day Program – 1 day per week for five consecutive weeks 8:00 am to 4:00 pm Classes beginning next week in Pensacola, Tallahassee and Jacksonville Also available online 24

25. CMDP Class Topics Becoming an FDOT Contractor Plan Reading & Estimating Constructing & Submitting FDOT Bids Project Planning, Scheduling & Administration Fundamental Business Operations 25

26. Bond Guarantee Program Open to DBEs who have completed the CMDP The State of Florida acts as a second surety, guaranteeing the construction bonds for DBEs working on FDOT projects Bond guarantees up to 90% for a contract of $250,000 or less Bond Guarantees up to 80% for a contract greater than $250,000 and no more than $500,000. 26

27. DBE Supportive Services Program Administered by the Blackmon Roberts Group (BRG) Certification assistance Assistance to DBEs in a number of business related areas including finance, accounting, bonding, and business law. Assist DBEs in developing relationships with prime contractors and learning how to take advantage of subcontracting opportunities 27

28. Specialized Development Program Administered by the Southern Florida Minority Supplier Development Council (SFMSDC) in partnership with Ariel Business Group Assists prime contractors on major projects in identifying qualified DBEs to take advantage of subcontracting opportunities 28

29. 29 Websites Blackmon Roberts Group (Supportive Services Provider) www.blackmonroberts.com/ Construction Estimating Institute Construction Management Development & Bond Guarantee Programs www.cmdp-bgp.com/ Southern Florida Minority Supplier Development Council /Ariel Business Group FDOT DBE Specialized Development Program www.fdotdbeservices.com/

30. Contact Information Kimberly Vasquez – Construction Estimating Institute Phone: (800) 423-7058 Email: kim@estimating.org 30