DBE Compliance News

Certification

Description

Purpose

DBE
Disadvantaged Business Enterprise

(Federal)

A DBE is a for-profit small business that is at least 51% owned and controlled by one or more socially and economically disadvantaged individuals.  These individuals must be citizens of the United States and be: (1) an individual whom a recipient finds to be a socially and economically disadvantaged individual on a case-by-case basis, or (2) either Black American, Hispanic American, Native American, Asian-Pacific American, Subcontinent Asian American, female, or any other group found to be socially and economically disadvantaged by the SBA.

US DOT mandates that all state departments of transportation implement a DBE program if they are receiving federal transportation funding. DBE certification is used by Caltrans and local agencies on transportation-related projects to assist small businesses competing for contracts. Overall and/or project-specific goals may be established to create a “level playing field” for small businesses.

The DBE directory is maintained by Caltrans.

UDBE
Underutilized Disadvantaged Business Enterprise

(Federal)

A UDBE is a firm that meets the definition of DBE and is a member of one of the following groups:

1. Black Americans
2. Native Americans
3. Asian-Pacific Americans
4. Women

The 2007 Caltrans Disparity Study recognized statistically significant disparity in their utilization of DBEs on previously awarded transportation contracts.  The designation UDBE is used to encourage small business participation by these minority groups and separate UDBE goals may apply. The use of UDBE goals is also known as race conscious.

DVBE
Disabled Veteran Business Enterprise

(State)

DVBE certification requires businesses:

• be at least 51% owned by one or more disabled veterans;
• daily business operations must be managed and controlled by one or more disabled veterans

For DVBE certification purposes, a “disabled veteran” is:

• A veteran of the US military, naval, or air service;
• The veteran must have a service-connected disability of at least 10% or more; and
• The veteran must reside in California.

The DGS-Procurement Division, Office of Small Business and DVBE Services is the State’s certifying agency that administers the DVBE Certification Program. State agencies have a goal to award at least 3% of their annual contract dollars to certified DVBEs. The state agency decides whether or not to include the DVBE participation requirements in a particular solicitation and the percentage of the goal, if it is included.

MBE/WBE
Minority Business Enterprise/ Women Business Enterprise

(State)

“Minority-owned” is a business at least 51% owned by one or more minority individuals, and whose management and daily operations are controlled by one or more minority individuals. Recognized minorities include Asian Americans, African Americans, Hispanic Americans and Native Americans, among others.

“Woman-owned” is a business at least 51% owned by one or more women, and whose management and daily business operations are controlled by one or more women.

MBE/WBE goals no longer apply to state contracting.  Prop 209 directed that certification be based upon firm size and income. “The state shall not discriminate against, or grant preferential treatment to, any individual or group on the basis of race, sex, color, ethnicity, or national origin in the operation of public employment, public education, or public contracting.”

SBA 8(a)
Small Business Administration

(Federal)

SBA 8(a) firms are owned and controlled at least 51% by socially and economically disadvantaged individuals. They meet applicable size standards for small business concerns; have been in business for at least two years; display reasonable success potential; and display good character.

The SBA administers a business assistance program for small disadvantaged businesses. The program is the 8(a) Business Development Program. The 8(a) Program offers a broad scope of assistance to firms. There are many federal contracts awarded to 8(a) firms through set-asides.

SBE
Small Business Enterprise

(State)

An SBE is independently owned and operated; not dominant in field of operation; is located in California; the owners live in California; and meets size restrictions. Some SBEs are also micro businesses.

The DGS-Procurement Division, Office of Small Business and DVBE Services is the State’s certifying agency that administers the Small Business Certification Program. Many State contracts contain SBE goals.