Business Development - Business Center | Greater Cleveland Regional Transit Authority

The term 'disadvantaged business' generally means a small business concern, which is at least 51 percent owned by one or more socially and economically disadvantaged individuals. DBE firms are a vital component of the local and national economic landscape. Assisting DBE firms not only contributes to their individual success, it also strengthens the foundation of our economy and helps build capacity. It therefore is the policy of the Greater Cleveland Regional Transit Authority (RTA) that disadvantaged business enterprises shall have a fair opportunity to compete for and participate on RTA contracts and subcontracts, pursuant to 49 CFR Part 26.

DBE Policy Statement
The Greater Cleveland Regional Transit Authority (RTA) is committed to ensuring that all persons have an equal opportunity to receive and participate in RTA contracts, continually increasing the number of certified Disadvantaged Business Enterprises (DBE) firms, and encouraging the participation of DBE firms in prime contracting, and subcontracting opportunities.

It is further the policy of RTA to ensure that DBE firms, as defined in 49 CFR Part 26, have an equal opportunity to receive and participate in DOT-assisted contracts. In furtherance of this policy, RTA formalized, approved, and issued a DBE Policy Statement dated 9-21-04 to demonstrate its commitment to leveling the playing field through the implementation and operation of its Disadvantaged Business Enterprise (DBE) Program for all businesses interested in contracting opportunities with RTA.

The policy statement has been disseminated to RTA Board of Trustees and all of the components of the organization. The RTA also distributes the statement to DBE and non-DBE business communities that perform work on our contracts. RTA also provides information and programs that will assist DBE firms in being able to achieve the goal of successfully competing and functioning outside of the parameters of RTA�s DBE Program.

Program Objectives
Support efforts of DBE firms to participate on contracts supported by federally assisted funding sources, and assist the growth and development of such firms so they can compete successfully in the marketplace outside the DBE Program.

The types of support and assistance that is provided include the following:

Utilization: Increase the utilization of qualified DBE firms in all procurement opportunities including routine purchases, request for bids, federally assisted contracts, and any other forms of purchase.
Outreach: Encourage strong business relationships between RTA and qualified DBE firms by creating avenues to effectively communicate with firms concerning procurement policies and procedures and actively seeking to identify and certify qualified DBE firms.
Development: Explore ways to provide assistance to qualified DBE firms through training, seminars, and sharing information about new initiatives that affects minority-owned businesses.
Information: Keep qualified DBE firms informed on procurement activities and other activities taking place at RTA and in the community.

Program Eligibility
In order to become certified as a Disadvantaged Business Enterprise, your firm must meet the eligibility standards established by U.S. Department of Transportation (USDOT) Regulation 49 C.F.R. Part 26. A firm generally is eligible to participate in the DBE Program if it is owned, operated, and controlled by one or more socially and economically disadvantaged individual(s), where such ownership totals at least 51 percent and their personal net worth does not exceed $750,000 (excluding value of principal residence and interest in the business) and whose average gross receipts have not exceeded $16.6 million for the past three fiscal years.

Under federal law, social and economic disadvantaged is presumed for the following groups:

Women (regardless of race)
Black Americans
Hispanic Americans
Native Americans
Asian-Pacific Americans
Subcontinent Asian Americans
Any additional group whose members may be designated as socially and economically disadvantaged by the Small Business Administration (SBA)

Program Certification
A business must submit a DBE Certification Application in order to become certified as a Disadvantaged Business Enterprise with RTA, and meet the eligibility standards established by U.S. Department of Transportation (USDOT) Regulation 49 C.F.R. Part 26. The application allows RTA to determine whether a firm is eligible for the program under the federal regulations and provides information regarding the capability a firm in its designated area(s) of expertise.

The criteria used to determine a qualified Disadvantaged Business Enterprise (DBE) is:

Burden of Proof: The firm seeking certification has the burden of demonstrating by a preponderance of the evidence that it meets the program requirements... concerning group membership or individual disadvantage, business size ownership, and control.

Group Membership Determinations: An applicant that holds itself out to be a member of a group that is presumed to be socially and economically disadvantaged must demonstrate by a preponderance of the evidence that he or she is a member of the group.

Ownership Determination: Disadvantaged individuals must own at least 51 percent of the firm (or stock). The contributions of capital or expertise used to acquire ownership must be "real and substantial" and derived from individually and independently owned resources. Ownership interest obtained through a transfer or gift will be scrutinized to ensure the ownership transfer is irrevocable, was acquired for reasons other than obtaining certification as a DBE, and that the disadvantaged owner(s) actually controls the management, policy, and operations of the firm.

Control Determinations: Control is comprised of three parts: operational control, managerial control, and independence. The socially and economically disadvantaged owner(s) must have an overall understanding of, and managerial and technical competence and experience directly related to, the type of business in which the firm is engaged and the firm's overall operations. Generally, expertise limited to office management, administration, or bookkeeping functions unrelated to the principal business activities of the firm is insufficient to demonstrate control. Additionally, a firm must be independent and its viability must not depend on its relationship with another firm or firms. In order to be viewed as controlling a firm, a disadvantaged owner cannot engage in outside employment or other business interests that conflict with the management of the firm or prevent the individual from devoting sufficient time and attention to the affairs of the firm.

The following forms assist the prime contractor and OBD in monitoring those areas: