• To create a level playing field on which such firms can compete fairly for MARTA contracts;
• Ensure non-discrimination in the award and administration of United States Department of Transportation (USDOT)-assisted contracts;
• Increase participation of qualified firms that are owned, operated and controlled by socially and economically disadvantaged individuals in the award and administration of USDOT-assisted contracts;
• Help remove present and past barriers to the participation of DBEs in USDOT-assisted contracts;
• To ensure that the DBE program is narrowly tailored in accordance with applicable law;
• To ensure that only firms that meet all the eligibility standards are permitted to participate as DBE firms; and
• To assist in the development of firms that can compete successfully in the marketplace outside the DBE program.

Owner(s) must own 51 percent of the firm and be a member(s) of one of the following groups:

• Women (Regardless of race)
  
• Black Americans
  
• Hispanic Americans
  
• Native Americans 
  
• Asian-Pacific Americans
  
• Subcontinent Asian Americans

DBE Final Rule (April 2024)

On April 9, 2024, the Department published a DBE Final Rule in the Federal Register to modernize and streamline the DBE program regulations. The following is updated overview of MARTA’s DBE Certification Program

What are the criteria for DBE certification?

A Disadvantaged Business Enterprise or DBE is a for-profit small business concern that is at least 51 percent owned by one individual or at least two individuals who are both socially and economically disadvantaged. In the case of a corporation, 51 percent of the stock must be owned by one or more socially and economically disadvantaged individuals. In addition, the business management and daily business operations are controlled by one or more of the socially and economically disadvantaged individuals who own it.

The complete list of eligibility requirements for DBE certification is stated in 49 CFR, Part 26 and can be viewed online at https://www.transit.DOT.gov/dbe.  The following six requirements must be proved by a DBE applicant; please note that these do not cover all the requirements found in 49 CFR, Part 26.

Social and Economic Disadvantage: A DBE owner must be a U.S. Citizen (or resident alien) and meet the federal definition of socially and economically disadvantaged as defined in 49 CFR Part 26.67. Presumptive groups include women, Black Americans, Hispanic Americans, Native Americans, Asian-Pacific Americans, Subcontinent Asian-Americans or other minorities found to be disadvantaged by the federal regulations. Other individuals may be found to be socially and economically disadvantaged on a case-by-case basis.

Personal Net Worth: The US Department of Transportation requires proof that participating DBE owners have a net worth not to exceed $2,047,000. When an individual's net worth exceeds the $2,047,000 threshold, the individual is no longer eligible to participate in the DBE Program. Net worth excludes the value of the business and the primary residence of the owner.

Business Size Standard: The DBE firm (including affiliates) must be a small business as defined by the Small Business Administration (SBA). Its annual gross receipts for the three previous fiscal years cannot have exceeded $30.72 million (or $56.42 million for airport concessions in general with some exceptions). (1) Banks and financial institutions.  $1 billion in assets; (2) Passenger car rental companies.  $75.23 million average annual gross receipts over the firm's previous five fiscal years; (3) Pay telephones 1,500 employees; and (4) New car dealers.  350 employees. Depending on the type of work the business performs, other size standards may apply.

Ownership: The DBE must be a for-profit small business concern where socially and economically disadvantaged individuals own at least 51 percent interest and control management and daily business operations.

Independence: The DBE must not be affiliated with another firm in such a way as to compromise its independence and control. Independence should be achieved in areas including, but not limited to, personnel, facilities, equipment, financial and/or bonding support, and other resources.

Management and Control: The DBE owner (s) must possess the power to direct or cause the direction of the management and policies of the firm and to make day-to-day decisions, as well as long-term decisions on matters of management, policy and operations.

What does the certification process involve?

The certification application is first reviewed to ensure all information is complete. If all required documents from the checklist are submitted as required, the application is assigned to a MARTA Certification Analyst who reviews the file and schedules and conducts a site visit to the business. Based on all submitted information and the site visit, the Certification Analyst issues a recommendation to accept or deny the application for DBE eligibility. If your firm’s application is approved, a Certification Letter is issued to the applicant. If your firm is denied certification, the applicant is given an opportunity to appeal the denial.

MARTA handles certification for Fulton, DeKalb and Clayton Counties ONLY. GDOT our Unified Certification Partner handles all other counties in Georgia as well as Interstate DBE Applications.

https://www.dot.ga.gov/GDOT/pages/DBE.aspx

Socially disadvantaged individuals are those who have been subjected to racial or ethnic prejudice or cultural bias within American society because of their identities as members of groups and without regard to their individual qualities. Social disadvantage must stem from circumstances beyond their control. Evidence of individual social disadvantage must include the following elements: 

(A) At least one objective distinguishing feature that has contributed to social disadvantage, such as race, ethnic origin, gender, disability, long-term residence in an environment isolated from the mainstream of American society, or other similar causes not common to individuals who are not socially disadvantaged; 

(B) Personal experiences of substantial and chronic social disadvantage in American society, not in other countries; and 

(C) Negative impact on entry into or advancement in the business world because of the disadvantage. 

Economically disadvantaged individuals are socially disadvantaged individuals whose ability to compete in the free enterprise system has been impaired due to diminished capital and credit opportunities as compared to others in the same or similar line of business who are not socially disadvantaged. Each individual claiming economic disadvantage must describe the conditions which are the basis for the claim in a narrative statement, and must submit personal financial information. 

• Contract Compliance Brochure
• DBE Certification
  • Apply for Certification
  • Login/Home page
  • GUCP DBE Directory - To access directory click on “Directories”, then searchable link
• Frequently Asked Questions
• MARTA Supplier Diversity Management Program
  
• Urban Entrepreneur Partnership
• U. S. Department of Transportation DBE Program

For more information on the Disadvantaged Business Enterprise (DBE) program, or to become DBE certified and to update your firm’s profile click here.  

• Paula M. Nash

  Executive Director, Diversity and Inclusion

  pmnash@itsmarta.com

MARTA Board of Directors issued it second Board policy statement in support of equal opportunity for minority and women owned businesses in 1971. Federal regulations were developed to provide additional detail. Businesses must apply for certification and provide evidence of ownership and control by the minority person(s) as part of the DBE certification process.

A DBE is a business that is at least 5l % owned and controlled by one or more minority persons. A minority is generally defined as an individual who is African American, Hispanic American, Asian American, Native American, or a Woman. The Federal Government DBE Program also includes Alaskan Natives, Pacific Islanders, Aleuts, and persons who are not minorities but who are socially and economically disadvantaged in its definition. The socially and economically disadvantaged owners must demonstrate longstanding, chronic and substantial disadvantage since the business is not owned by persons in the cited minority groups.

MARTA has a very comprehensive certification process to determine the ownership and control of firms, which apply for DBE certification. There are many specific eligibility criteria for certification. In assessing ownership, investments by the minority owner are important. Control includes both managerial and operational control with technical knowledge of the firm major areas of work being an important component for assessing operational control.

Applications are carefully reviewed and personal interviews are conducted by trained DBE Analysts. The entire certification process assures that only bona fide DBEs participate in the program.

The U. S. Department of Transportation (USDOT) Disadvantaged Business Enterprise (DBE) program has added a new requirement for qualifying as a DBE; the personal net worth (PNW) of each minority individual who owns and controls the firm as a part of the 51 % minority ownership must be less than $1,320,000. When an individual personal net worth exceeds the $2,047,000 threshold, the individual is no longer eligible to participate in the Federal DBE Program. DBE business owners may decide not to provide a PNW and not be considered a DBE for USDOT assisted contracts. The PNW excludes the value of the DBE business and the personal residence of the DBE owner(s), Retirement Assets Excluded from Calculations, but must be reported.

Yes. If a certified DBE has a three (3) year annual average of gross receipts (or for retail and manufacturing businesses number of employees) that meets or exceeds the revenue (or employee) totals as specified by the U.S. Small Business Administration for the NAICS codes in which it is situated, the firm will not be eligible to participate in the DBE program.

Certification as a DBE provides greater exposure for work opportunities on MARTA projects. The names of all certified DBEs appear in the DBE Directory, a reference manual which is widely disseminated to each MARTA administration, other state departments, local governments, contractors and to the public. Contractors use the DBE Directory as a basic resource for soliciting minority participation on projects. If a firm is not certified, a contractor cannot receive credit toward achievement of the DBE participation goal by using that firm.

MARTA DBE certification program is generally accepted by other agencies. Once you are certified through the Georgia Unified Certification Program (GUCP), you may participate as a DBE subcontractor on any MARTA contract. Any business may bid directly on any bid or proposal without regard to certification.

Every attempt is made by MARTA to establish realistic and achievable DBE goals. Individual contract goals are set based upon the dollar value of the project, the availability of DBEs to perform the work which is to be subcontracted, and the availability of certified DBEs in the location where the work is to be done.

Opportunities to participate in construction work, construction-related work and the procurement of goods and services are varied. Disadvantaged Business Enterprise participation is encouraged on all projects. Although many contracts with DBEs are for sub-contract work, certified DBEs have leased concessions, provided consultant services in technical fields and have been awarded projects as prime contractors, as well.

No. Certification does not guarantee work to a DBE; however, it does enhance a DBEs exposure to prime contractors and the business community. To be successful, a firm must market itself, its personnel and its services, as any good business should.

All firms are expected to meet performance standards as established by contract specifications. This relates to the quality of work done, the submission of reports and written information in a timely manner and the firm compliance with applicable regulations and laws. Once a DBE has been awarded a prime, sub or lower tier contract, the DBE is responsible for submitting verification of all payments received to the contracting agency. This includes the amount of payment and date received.

Yes. The general contractor must first meet the DBE goals established on the contract by seeking out and utilizing certified DBEs. Once work begins, the general contractor is responsible for all project activities including those of subcontractors and lower tier contractors.

Regular monitoring assures that contractual items are performed in accordance with specifications. Monthly reports must be submitted by the general contractor such as payroll, cost and time estimation and progress reports. When changes are needed, the general contractor must get approval from the agency project manager. Any changes in the DBE participation must be approved by the Executive Director of the Office of Diversity and Inclusion in writing before any actions in this connection are initiated.

DBEs can receive technical assistance when experiencing difficulties in business operations. A call to MARTA Office of Diversity and Inclusion, will guarantee that an EEO/DBE Analyst will contact the DBE to set up an appointment to provide assistance in business management, construction management and/or financial guidance. The Analyst may also assist in resolving problems on the job site such as labor disputes, project scheduling and equipment rental issues.

The DBE certification process is used to determine if a firm is minority owned and controlled. To qualify as a DBE, the owner must demonstrate that he or she is a minority person and provide documentation establishing at least 51 % ownership of the company.

Once the ownership of a firm is established, the business owner must demonstrate the technical knowledge and experience to make independent business operating and management decisions.

Annual reviews of all certified firms are made to determine if the ownership and control of the DBE has changed.  Effective contract compliance monitoring procedures also facilitate the identification of "front" or "sham" DBE firms.

Suspected abuse should be reported to the Office of Diversity and Inclusion at supplierdiversity@itsmarta.com.

Progressive administrative sanctions can be applied when contractors (DBEs and non-DBEs) have abused the DBE Program. These sanctions include:

• Suspension of work
• Withholding a percentage of progress payment
• Default of the contract
• Referral to the Office of the Attorney General for criminal investigation
• Suspension of the right of the contractor to participate in future MARTA contracts (debarment), and
• Other appropriate administrative actions within the discretion of the Executive Director of the Office of Diversity & Inclusion

Visit MARTA Procurement page

• MARTA DBE Program
• Affirmative Action Plan