ABOUT THE PROGRAM
The Office of Business Development (OBD) is responsible for administering the Greater Cleveland Regional Transit Authority's (RTA) Disadvantaged Business Enterprise (DBE) Program. The program is designed to help ensure DBE firms have a level playing field and equal opportunity to receive and participate in RTA's contract opportunities.
In accordance with Code of Federal Regulations Section 49 CFR Part 26, OBD works to promote, and encourage the inclusion of small, women and businesses in RTA procurements, as its principal mission is to engage, support, and assist the local small and disadvantaged business community, and help ensure fair and representative participation of DBEs in procurement opportunities at RTA and within the community at-large.
Every three years, RTA is required by federal regulations to calculate an overall DBE participation goal. The current goal is 22.5% on all federally assisted contracts.
Unified Certification Program
For a directory of all certified DBE firms in Ohio, click here.
Contractor/Bidders who need assistance in identifying certified DBE firms to participate on contracts should contact OBD at 216-356-3127.
Under federal regulation 49 CFR Part 26, the following groups are presumed socially and economically disadvantaged. A company that among other things is (individually or in any combination) 51 percent or more owned by persons from such groups may be eligible for certification as a Disadvantage Business Enterprise (DBE).
- Black Americans
- Hispanic Americans
- Native Americans
- Asian-Pacific Americans
- Subcontinent Asian-Pacific Americans
Persons who are not members of one of the above groups and own and control their business may also be eligible, provided they can establish their "social" and "economic" disadvantage. A determination of whether an individual meets DBE eligibility criteria is made on a case-by-case basis Appendix E to 49 CFR Part 26.
Burden of Proof - Applicants carry the responsibility to prove their eligibility, and must demonstrate that they meet all requirements concerning group membership or individual disadvantage, business size, ownership and control.
Business Size – An applicant company (including its affiliates) must demonstrate it is a “small business,” as defined by Small Business Administration standards. In general, companies cannot have annual gross receipts of more than $23.98 million in the previous three fiscal years (or $56.42 million for airport concessionaires, with some exceptions).
Personal Net Worth - The personal net worth of an applicant company’s owner(s) cannot exceed $1.32 million. A person’s ownership interest in the applicant company and equity interest in their primary residence are excluded from the net worth calculation.
Control - A disadvantaged owner seeking certification must possess the power to direct or cause the direction of the management and policies of the firm. The owner must also demonstrate an overall understanding, and managerial and technical competence and experience, directly related to the type of business in which the firm is engaged.
Independence - The business must not be tied to another firm in such a way as to compromise its independence and control.
Specific RTA responsibilities:
RTA's Office of Business Development is responsible for these specific areas. Each area affects your work as a DBE.
The Office of Business Development (OBD) is required by Federal regulations to establish Contract-Specific and Annual Overall DBE goals, as described below:
- Contract-specific DBE Goal Determination: Procurements are reviewed to establish DBE participation goals on contracts, based on identified subcontracting opportunities and ready, willing and available certified DBE firms.
- Annual Overall DBE Goal Determination: RTA makes a 3-year estimate of the overall opportunity that will exist for DBE participation on contracts bid during the federal reporting period. This estimate becomes the overall DBE Goal for the federal fiscal year. The goal is calculated according to a methodology approved by the Federal Transit Authority (FTA) and it is submitted to the FTA every 3 years for review and approval.
The Office of Business Development (OBD) is responsible to certify the eligibility of businesses to participate in the Disadvantaged Business Enterprise (DBE) Program. Companies are required to complete an application and provide certain supporting documentation, including, but not limited to, the following information:
- Business and personal tax returns for the three most-recent years.
- Company financial statements, business structure/ownership information.
- Bios and/or resumes of business owners.
Staff reviews the application and supporting documentation, and conducts an on-site review of the applicant’s place of business.
A certification decision will be reached within 30 days of receipt of a “completed” application.
User Guides (DBE Applicants)
Effective Dec. 21, 2015: All users will need to use the Request Account link (in step 1 below) to obtain a User ID. Login here if you have already obtained a new BASIC User ID.
New to the program
Signing up is simple on-line. Follow these steps to get started on your way:
- Request a Basic Account from Request Page.
- Login to CRL.
- Complete application and upload on-line.
CONTRACT COMPLIANCE AND MONITORING
The Office of Business Development (OBD) is committed to ensuring DBE participation on contracts meets the amount agreed. OBD works to ensure that DBE contract requirements are communicated to all necessary parties, properly included in the contract documents, and DBE contract terms and conditions are met.
OBD compliance and monitoring actions include, but is not limited, to the following:
- Participate in contract pre-bid and pre-award meetings to ensure contract requirements are met, and prime contractors have an understanding of their responsibilities and obligations.
- Approve DBE utilization plans proposed by contractors.
- Review certified payroll and manpower utilization reports to ensure compliance with applicable Federal, State, and Local regulations, regarding Equal Employment Opportunity (EEO).
- Ensure prompt payment is made to DBE subcontractors.
- Verify information submitted by contractors as related to DBE participation, and routinely review and confirm DBE participation attainment on contracts before invoice submittals are paid.
- Perform on-site visits to construction work projects to verify compliance with contract specifications and requirements.
- Works with prime contractors and subcontractors to promptly resolve concerns where DBE participation and compliance concerns exist.
Overall DBE participation calculation
- In establishing the overall DBE participation goal, staff seeks input from communmity organizations and other interested parties that can be expected to have informaiton and data concerning the avalibility of disadvantaged and non-disadvantaged businesses.
- The overall DBE participation goal is calculated using a methodology approved by the FTA that considers the availability of ready, willing and able DBE firms to perform the work required on contracts RTA is expected to award during the three-year period, as compared to the overall availability of firms to perform such work.
- The goal is submitted to RTA Board of trustees for consideration and approval. Once approved by the Board, the general public is informed of the proposed goal through a notice published in a newspaper of general circulation
- The proposed goal and its rationale are available for pubic inspection and comment at RTA during normal business hours for a period of 30 days after the notice appears.
Contract-specific DBE participation determination
OBD reviews the contract specification to determine whether subcontracting opportunities exists, and whether there are certified DBE firms that potentially could perform any portion of the contract work.
- In part, the determination is based upon there being ready, willing, and available certified DBE firms in the identified subcontracting categories. Where there are subcontracting opportunities and certified DBE firms are found to exist, OBD establishes a DBE participation goal for the contract.
- Bidders are required to make best efforts to achieve the DBE participation goal established for a contract through the utilization of one or more “certified” DBE firms a joint venture partner, subcontractor, sub-consultant and/or supplier of goods and services. The DBE firms used must be certified at the time the contract is awarded.
- Bidders are required to respond as instructed with specific documentation concerning the nature and dollar amount of participation for each proposed DBE firm.
- Where a bidder finds it is unable to achieve the DBE participation goal established for a contract, it is required to provide documentation showing the “good faith efforts” it made to achieve the goal.
- In general, bidders are required to provide the following documentation to support its good faith efforts:
- Each DBE firm contacted, including name, telephone number and email address for the person(s) contacted and date contacted.
- Nature and dollar amount of the work each DBE firm was solicited to perform.
- Each DBE firm's response to solicitation.
- Reasons any DBE firms contacted were not used.
- Types of actions considered in determining “good faith efforts” include, but are not limited to, the following:
- Did the bidder solicit DBE firms through sufficient responsible and available means with sufficient lead time to ensure a reasonable number of DBE firms might respond before the deadline to submit the bid?
- Did the bidder solicit DBE firms for all portions of the work to be performed where both subcontracting opportunities existed, and DBE firms were available to increase the greatest likelihood the DBE participation goal would be achieved?
- Did the bidder provide DBE firms adequate information about plans, specifications, and requirements of the contract to allow the DBE firms to adequately respond in a timely manner?
- Did the bidder negotiate in good faith with interested DBE firms and have sound reasons for rejecting the participation of any potential DBE firms?
- Contracts generally are awarded to next lowest bidder in situations where a bidder is unable to adequately demonstrate its good faith efforts to achieve the DBE participation goal established for a contract.
OBD works to identify and certify DBE firms, encourage strong relationships between RTA and DBE firms, and assist DBE firms concerning RTA’s procurement policies, procedures and contracting opportunities. OBD further engages, supports, and assists the community of small, women and minority-owned business and the contractor/bidders community, through outreach activities, technical assistance, and serving as a liaison between RTA, DBE firms, prime contractors, and others including public officials.
SMALL BUSINESS PARTICIPATION PLAN
Fostering Small Business Participation
The Authority is committed to developing relationships and increasing business participation with small business concerns in a fiscally responsible manner. In compliance with 49 CFR Part 26.39, the Authority established its Small Business Participation Plan to facilitate competition by small business concerns effective October 2012.
The Authority will take all reasonable steps to eliminate obstacles that may preclude small business participation in procurements as Prime Contractors or subcontractors. For purposes of the Plan, a small business concern is as defined in Section 3 of the Small Business Act and Small Business Administration regulations implementing it (13CFR Part 121) that also does not exceed the cap on average annual gross receipts specific in 49 CFR Part 26 – Section 26.65.
The Authority will have as a non-binding administrative target to award in the range of 5%-10% of total annual addressable spend to contractors and subcontractors that are small business concerns, as defined by the size standards contained in 13 CFR Part 121. Addressable spend excludes such items as transit motor vehicles, real estate, proprietary contracts, and/or procurements where it has been demonstrated small business concerns are not represented in local markets. The Authority will verify the size standards of companies through a self-reporting a mechanism for companies reported to have been award contracts as small business concerns.
- Program Administration
The Director of Office of Business Development shall have responsibility for administering the Plan, with the support of the Director of Procurement. These duties include, but are not limited to, the following activities:
- Develop and maintain bidder's lists of small businesses;
- Educate small business participants regarding procurement policies and procedures.
- Ensure Procurements and solicitations are designed to permit and encourage participation of small business concerns;
- Maintain a database of small business concerns to ensure such firms are included on the source lists for solicitations and are able to compete for contracts for products, commodities, and services for which they are capable of providing. Maintain record of award of contract and subcontracts to small business concerns, monitor performance and conduct an annual review to assess small business participation in purchases and contracts, and make any adjustments needed to achieve the Plan goals;
- Develop and promote policy and program initiatives that demonstrate support for awarding contract and subcontracts to small business concerns to include providing copies of Invitations For Bids, Requests for Proposals and Request for Quotations to organizations and associations such as the SBA, Council on Smaller Enterprises (COSE), Urban League, Women and Veteran Business Associations, etc. for dissemination to their members and constituents.
- Strategies to Support Small Business Participation
- The Authority will encourage the use of small business concerns by designing solicitations and procurements to allow and encourage the participation of Small Business Concerns both as prime contractors and subcontractors;
- On prime contracts not having DBE contract goals, the Authority will require the Prime Contractor to provide subcontracting opportunities of a size that small businesses, including DBEs, can reasonably perform, rather than self-performing all the work involved.
- All contractors (except small business concerns including DBEs) that receive contracts will be responsible to demonstrate reasonable efforts to include small business concerns as subcontractors.
- The Authority will consider race-neutral small business set asides for prime contracts on a case-by case basis, where staff has affirmatively determined there is a reasonable expectation of receiving at least two offers from small business concerns, and the award will be a fair and competitive price.
- The Authority will make every effort to ensure that purchases for products and service continue to be acquired using small business concerns once a product or service has been acquired successfully from a small business.
- The Authority sponsors and supports outreach activities to identify and engage small business concerns through sources, outlets, and venues to include Business Opportunity Workshops, Business Seminars, Trade Fairs, and Procurement Conference.
- The Authority provides information, networking opportunities, and technical assistance to small business concerns to ensure they are aware of procurement opportunities and know how to prepare responsive bids as prime/subcontractors;
- The Authority established a Small Business Participation Advisory Council to help implement the Small Business Participation Plan. The purpose of the Council is to improve the Authority’s spending outcomes with small business concerns that is not a function of social or economic disadvantage. The Council reviews program performance and make recommendations on ways to reach, engage, and inform to small businesses of contract and business opportunities.
- The Council is comprised of 5-7 external members to include owner/senior management executives from at least two (2) local small business firms, and representatives from organizations such as the Council on Smaller Enterprises, Urban League of Greater Cleveland, Small Business Administration, etc. The General Manager and/or Deputy General Manager for Finance and Administration, Director of Procurement, and Director of the Office of Business Development also will serve on the Council, which will meet annually.
What is a DBE?
What is a DBE goal?
Does my firm have to be certified as a DBE to do business with the RTA?
How does DBE certification help my firm get RTA business?
In what other ways does DBE certification help my firm?
What are first steps for a firm interested in becoming a DBE?
How long will it take for my firm to be certified?
When is a bidder required to make "good faith efforts"?
What is the Unified Certification Program (UCP)?
How do I bid on contracts less than $25,000?
How does RTA monitor and enforce Prevailing Wages on construction contracts?
How does RTA apply Affirmative Action to contracts?
How is DBE participation monitored?
The Federal government defines a DBE as a small business that must be at least 51 percent owned and controlled by one or more “socially and economically disadvantaged” individuals. The management and daily operations of the business must also be conducted by such individuals. Federal regulations presume that the following groups are “socially and economically disadvantaged”: African Americans, Hispanic Americans, Portuguese Americans, Native Americans, Asian-Pacific Americans, Asian-Indian Americans, women, and any other individuals found to be socially and economically disadvantaged by the Small Business Administration (SBA).
It is the estimate of an overall opportunity that exists for DBE participation on contracts. The goal is calculated according to a method approved by FTA and submitted every 3 years for review and approval.
No. Any business, no matter who owns it, may compete for any RTA contract, either as a prime contractor or as a subcontractor, whether or not they are certified as a DBE. However, if your firm is seeking to perform work on a contract as a DBE, you must first obtain DBE certification.
The Office of Business Development (OBD) reviews contracts to determine whether they present opportunities for DBEs. Based on federal guidelines, the OBD may set goals for the participation of DBEs on a contract, help the prime contractor find qualified DBE subcontractors, and monitor the performance of the prime contractor to ensure that it is using good faith efforts to meet participation goals.
When a contract is ready to bid, OBD identifies available qualified DBE firms and makes available a list of eligible DBE firms seeking bids.
When OBD establishes a goal for DBE participation, prime contractors will seek to identify qualified DBE firms to meet contract goals. In general, those contractors will look for firms that have already been certified as DBEs.
Being a certified DBE may also open the door to opportunities for growing your business, by making it easier for you to market to RTA agencies and other governmental entities. You will also gain the advantage of having your business listed in the UCP Directory of Certified DBE Firms. Prime contractors use the directory to identify DBEs for participation in their contracts.
First, you will need to complete a UCP Certification Application. Then OBD will conduct a certification review pursuant to federal regulations.
The certification process may take up to 90 days.
Q. When is a bidder required to make "good faith efforts"? How are "good faith efforts" evaluated in the bidding process?
A bidder is required to make "good faith efforts" when the firm determines that it can't meet the stated DBE goal. Types of actions considered as part of a bidder's "good faith efforts" include, but are not limited to, the following:
- Adequate solicitation of DBE subcontractors through all reasonable and available means, with sufficient time for subcontractors to respond.
- Selecting portions of the work to be performed in order to increase the likelihood that the goals will be achieved.
- Providing interested potential subcontractors with adequate information about the plans, specifications and requirements of the contract in a timely manner.
- Not rejecting potential subcontractors as unqualified without sound reasons based on a thorough investigation of their capabilities.
The UCP provides one-stop shopping for DBE firms. One unified directory, including all certified DBE firms, is available for the entire State. The advantages for the DBE firms are: one certification will enable them to be eligible to fulfill DBE goals set on any project with any governmental agency receiving Federal Transportation funding in Ohio; and the DBE firms will also have more visibility due to the unified statewide directory.
In order to bid on small purchase contracts, prospective bidders should be on the procurement bidders list. The solicitation process for small purchases is the following:
- Small purchases not exceeding $2,000 may be accomplished without quotations from vendors. DBE vendors shall be afforded maximum opportunity practical to participate.
- For purchases that have a total value between $2,000 and $5,000, a minimum of three (3) verbal quotations are required to be requested. Of these quotations, one is to be the previous supplier and efforts are to be made to include DBE vendors.
- Purchases with an estimated value between $5,000.01 and $25,000 shall require written quotation from a minimum of three (3) vendors and efforts shall be made to include DBE vendors.
The Davis-Bacon Act and the State of Ohio Revised Code, Title XLI Labor and Industry, Chapter 4115 Wage and Hours on Public Works govern RTA. RTA is required to comply with all prevailing wage and hours regulation. Prevailing wages are monitored through the submission of certified payrolls by the contractor to RTA.
All bidders are required to complete and submit Equal Employment and Affirmative Action paperwork at the time of bid. OBD reviews all EEO/AA information submitted by bidders. After a contract is awarded, all contractors are required to submit EEO reports every six months for the duration of the contract.
At the time of bid, bidders are required to submit all DBE participation forms provided in the solicitation package. After contract award, OBD conducts desk audits of all contracts and requires all contractors to submit vendor payment forms to ensure payment is made to all DBE’s for work completed.
|City of Cleveland||http://www.cleveland.oh.us/|
|Cleveland Municipal School District||http://www.cmsdnet.net/|
|Cleveland - Cuyahoga County Port Authority||http://wwww.portofcleveland.com/|
|Federal Transit Administration (FTA)||http://www.fta.dot.gov/|
|North American Industry Classification System (NAICS)||http://www.census.gov/epcd/www/naics.html|
|Northeast Ohio Areawide Coordinating Agency (NOACA) - the Metropolitan Planning Organization for the Counties of Cuyahoga, Geauga, Lake, Lorain and Medina||
|Office of Small and Disadvangage Business Utilization (OSDBU) Technical Assistance Brochure||
|Ohio Department of Transportation||http://www.dot.state.oh.us/|
|State of Ohio||http://www.ohio.gov/|
|U.S. Small Business Administration||http://www.sba.gov/|
|U.S. Department of Labor||http://www.dol.gov/|
|U.S. Department of Transportation||http://www.dot.gov/|
|Davis-Bacon Wage Determinations||http://www.wdol.gov/|
|List of Certified DBE Companies||http://www.dot.state.oh.us/DBE/Pages/DBE-Directory.aspx|
|SCORE - Service Corps of Retired Executives||http://www.score.org/|
|Surety Information Office - The Information Source on Surety Bonds in Construction||http://www.sio.org/|
|Greater Cleveland Partnership||http://www.gcpartnership.com/|
|COSE, the small business division of the Greater Cleveland Partnership||http://www.cose.org/|
|Northern Ohio Minority Business Council (NOMBC)||http://www.nombconline.org/|
|Urban League of Cleveland||http://www.ulcleveland.org/|
|U.S. Hispanic Chamber of Commerce||http://ushcc.com/|
DBE Goal for FFYs 2019-2021
In accordance with Section 49 Part 26 of the Code of Federal Regulations, RTA's proposed DBE participation goal for Federal Fiscal Years 2019-2021 is tentatively set at 22.5%, subject to FTA concurrence.
The 2019-2021 Federal Fiscal Year period run from October 1, 2018 - September 30, 2021.
Office of Business Development
- Steven Sims
- Carl Kirkland
Business Development Specialist
Goal Setting, Contract Compliance & Reporting, and Small Business Program
- Diana Jones
Business Development Specialist
Certification, Outreach, and Small Business Program
- Danielle Bennett
Administration and Support
Plan a Trip
RTA is a strong supporter of the Conference of Minority Transportation Officials (COMTO), both locally and nationally.