Compendium of Successful Practices, Strategies, and Resources in the U.S. DOT Disadvantaged Business Enterprise Program (2019) / Chapter Skim
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Pages 77-82
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From page 77... ...
77 This appendix explores two concepts: DBE "success" and DBE "graduation." This appendix was submitted as a project deliverable and reviewed by NCHRP project panel members prior to launch of survey tasks. The Need for Definitions Many of the tasks in the study work plan require identification of "successful" DBEs as well as "graduated" DBEs.
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From page 78... ...
78 Compendium of Successful Practices, Strategies, and Resources in the U.S. DOT Disadvantaged Business Enterprise Program The study team's disparity study experience confirms this point as many of the business owners in the transportation contracting industry the study team has interviewed over many years bring up non-financial factors when discussing success.
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From page 79... ...
Defining Success and Graduation 79 Business Size Limits in 49 CFR Part 26 To be economically disadvantaged, a firm must meet both of the following criteria related to annual revenue (or in some cases, number of employees) : • Over a 3-year period, the business has average annual revenue below the ceiling set in the federal DBE Program, which was $23.98 million per year at the time of the study (49 CFR Section 26.65 (b)
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From page 80... ...
80 Compendium of Successful Practices, Strategies, and Resources in the U.S. DOT Disadvantaged Business Enterprise Program According to the discussion of the legislative history in SBA Size Standards Methodology, the Act's purpose was to encourage competitiveness of small businesses, and that Congress intended to exclude firms from the definition of small business that dominate an entire industry, nationally (U.S.
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From page 81... ...
Defining Success and Graduation 81 Focus on Competitiveness as the Key Aspect of "Success" of DBEs When interviewing state DOTs and others, and when exploring data on DBEs, the study team needs a working definition of a "successful DBE" in order to accurately and consistently request information about such firms. The study team proposes to focus on "competitiveness" as the working concept of "success" for purposes of this study.
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From page 82... ...
82 Compendium of Successful Practices, Strategies, and Resources in the U.S. DOT Disadvantaged Business Enterprise Program Even though it is not a term in the regulations, the study team used "a graduated DBE" to mean a former DBE that has been successful to the point where it was no longer certified because of its success.
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