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HomeMy WebLinkAbout1988-185-11/15/1988-BUSINESS ENTERPRISE PLAN REVISED DISADVANTAGED RESOLUTION 88-185 OF THE COUNCIL OF THE CITY OF FORT COLLINS ADOPTING THE REVISED DISADVANTAGED BUSINESS ENTERPRISE PLAN OF THE CITY OF FORT COLLINS. WHEREAS, the City of Fort Collins is committed to the Disadvantaged Business Enterprise (DBE) program; and WHEREAS, the current DBE Plan is used to carry out the Department of Transportation's policy of supporting the fullest possible participation of firms owned and controlled by minorities and women as required by 49 CFR Part 23 and Subpart D, "Participation of Minority Business Enterprise in Department of Transportation Programs"; and WHEREAS, to this end, the Council of the City of Fort Collins has adopted a DBE Plan and has appointed the Purchasing Agent as the responsible official to administer and enforce the Plan; and WHEREAS, the Purchasing Agent, as DBE liaison officer, coordinates the efforts of City project managers and others to ensure that the DBE Plan is carried out and circulates the DBE Plan to area minority and non-minority businesses; and WHEREAS, the City is required to adopt a revised DBE Plan in order to continue to be eligible for UMTA grant funds; and WHEREAS, Council has reviewed the revised DBE Plan dated November 15, 1988. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS that the revised Disadvantaged Business Enterprise Plan dated November 15, 1988, attached hereto and incorporated herein, be, and the same hereby is, adopted. Passed and adopted at a regular meeting of the Council of the City of Fort Collins held this 15th day of November, 1988. Ma ATTEST: City Clerk DISADVANTAGED BUSINESS ENTERPRISE PLAN CITY OF FORT COLLINS, COLORADO (REVISED NOVEMBER 15, 1988) DISADVANTAGED BUSINESS ENTERPRISE PLAN CITY OF FORT COLLINS, COLORADO As elected and appointed officials of the City of Fort Collins, Colorado this statement expresses the City' s commitment to the Disadvantaged Business Enterprise program to carry out the Department of Transportation' s policy of supporting the fullest possible participation of firms owned and controlled by minorities and women as required by Regulatiion 49CFR , Part 23 , and Subpart D, "Participation by Minority Business Enterprise in Department of Transportation Programs." To this end, the City Council of the City of Fort Collins, Colorado, has adopted the attached Disadvantage Business Enterprise plan and has appointed the Purchasing Agent as the responsible official to administer and enforce the plan , The Purchasing Agent as DBE liaison officer will coordinate the efforts of the Project Manager and others to ensure the DBE plan is carried out. The DBE plan will be r ulated to area minority and non-minority businesses. E o e , ay or Steven C. Burkett, City Manager Wanda KraUicek, ityxCl k I - GENERAL A. PURPOSE The purpose of this plan is to carry out the Department of Transporta- tion' s policy of supporting the fullest possible participation of firms owned and controlled by disadvantaged businesses (DBEs) in Department of Transportation programs. This includes assisting DBEs throughout the life of contracts in which they participate. B. APPLICABILITY This part applies to Department of Transportation programs of the Federal Highway Administration (FHWA) and the Urban Mass Transportation Administration (UMTA) through which funds are made made available to the City of Fort Collins for accomplishing DOT purposes. C. DEFINITIONS 1. Affirmative Action means taking specific steps to eliminate dis- crimination and its effects to ensure nondiscriminatory results and practices in the future and to involve minority business enterprises in contracts and programs funded by the Department. 2. Applicant means one who submits an application request or plan to be approved by a Department official or by a primary recipient as a condition to eligibility for DOT financial assistance, and "application" means such an application request or plan. 3. Compliance means the condition existing when a recipient or con- tractor has met and implemented the requirements of this part. 4. Contract means a mutually binding legal relationship or any modifi- cation thereof obligating the seller to furnish supplies or ser- vices including construction and the buyer to pay for them. For purposes of this part a lease is a contract . 5. Contractor means one who participates through a contract or subcon- tract-in any program covered by this part and included lessees .. . 6. Department or DOT means the Department of Transportation including its operating elements . 7. DOT-ASSISTED CONTRACT means any contract or modification of a contract between a recipient and a contractor which is paid for in whole or in part with DOT financial assistance or any contract or modification of a contract between a recipient and a lessee. 8. DOT Financial Assistance means financial aid provided by the Department or the United States Railroad Assoc, to a recipient but does not include a direct contract . The financial aid may be provided directly in the form of actual money, or indirectly in the form of guarantees authorized by statute as financial assistance services of Federal personnel title or other interest in real or personal property transferred for less than fair market value or any other arrangement through which the recipient benefits financially including licenses for the construction or operation of a Deep Water Port, 9. Department Element means the following parts of DOT, a, The Federal Highway Administration (FHWA) ; b, The Urban Mass Transportation Administration (UMTA) ; 10. Joint venture means an association of two or more businesses to carry out a single business enterprise for profit for which purpose they combine their property, capital , efforts, skills and knowledge. 11 . Lessee means a business or person that leases, or is negotiating to lease property from a recipient or the Department on the recipient' s or department' s facility for the purpose of operating a transportation-related activity or for the provision of goods or services to the facility or to the public on the facility, 12. Small Business Concern; As defined Small Business Act, 13 CFR , Part 121. 13, Disadvanta ed Business (DBE) means a small business concern , See Appendix B - Guidance for Making Determinations of Social and Economic Disadvantage) . a. Which is at least 51 percent owned by one or more socially and economically disadvantaged individuals, or in the case of any publicly owned business at least 51 percent of stock of which is owned by one or more socially and economically disadvantaged individuals; or b. Which is at least 51 per centum owned by one or more women or, in the case of a publicly owned business, at least 51 per centum of the stock of which is owned by one or more women; and c. Whose management and daily business operations are controlled by one or more of the socially and economically disadvantaged individuals who own it. 14. Socially and Economically Disadvantaged Individuals means those tndtvtduals who are ctttzens of the United States (or lawfully admitted permanent resident) who are, a. Black Americans , which includes persons having origins in any of the black racial groups of Africa. b. Hispanic American, which includes persons of Mexican , Puerto Rican, Cuban, Central or South American, Portugese or Spanish culture or origin , regardless of race. c. Native Americans which includes persons who are American Indians , Eskimos , Aleuts, or Native Hawaiians. d. Asian - Pacific Americans which includes persons whose origins are from Japan, China, Taiwan, Korea, Vietnam. Laos , Cambodia, the Philippines, Samoa, Guam, the U.S. Trust Territories of the Pacific, and the North Marianas. e. Asian Indian Americans which includes persons whose origins are from India, Pakistan, and Bangladesh. f. Any other minorities or individuals found to be disadvantaged by the Small Business Administration pursuant to Section 8 (a) of the Small Business Act. g. The City of Fort Collins shall make a rebuttable presumption that individuals who are Black Americans , Hispanic Americans , Native Americans, Asian - Pacific Americans , or Asian, - Indian Americans are socially and economically disadvantaged. The City of Fort Collins also may determine, on a case-by-case basis, that individuals who are not a member of one of the aforementioned groups are socially and economically disadvantaged. 15. DBE Coordinator means the official designated by the head of the Department element to have overall responsibility for promotion of minority business enterprises in his/her Departmental element. 16 . Noncompliance means the condition existing when a recipient or contractor has failed to implement the requirements of this part. 17. Primary recipient is a recipient who receives DOT financial assistance and passes some or all of this assistance on to another recipient. 18. Program means any undertaking by a recipient to use DOT financial assistance, and includes the entire activity any part of which receives DOT financial assistance. 19. Recipient means any entity, public or private, to whom DOT financial assistance is extended, directly or through another recipient for any program. 20. Secretary means the Secretary of Transportation or any Person whom he/she has designated to act for him/her. 21 . Set Aside means a technique which limits consideration of bids or proposals to those submitted by DBEs. D. DISCRIMINATION PROHIBITED No persons shall be excluded from participation in, denied the benefits of, or otherwise discriminated against in connection with the award and performance of any contract covered by this part on the grounds of race, color, national origin or sex. II - DEPARTMENT OF TRANSPORTATION FINANCIAL ASSISTANCE PROGRAMS A. GENERAL This plan will apply to contracts and grants as follows: 1. For funds awarded exclusive of transit vehicle purchases under Sections 3, 5, 9, 9a, 17 and 18 of the Urban Mass Transportation Act of 1964 as amended and Federal Aid Urban Systems. 2. For funds awarded under Sections 6 and 8 of the Urban Mass Trans- portation Act of 1964 as amended. 3. For Federal Aid Highway Program funds . B. CITY OF FORT COLLINS REQUIREMENTS DBE PROGRAM COMPONENTS This disadvantaged business enterprise plan expresses the commitment of Fort Collins, Colorado to its objectives and outlines various levels of responsibility. This plan shall be circulated throughout the City and to minority, female and non-minority business organizations. In connection with implementation of this plan: 1. The City of Fort Collins hereby appoints the Purchasing Agent as the DBE liaison officer who will be responsible for developing , managing and implementing the DBE program on a day-to-day basis for carrying out technical assistance activities for DBEs and for disseminating information on available business opportunities so that DBEs are provided an equitable opportunity to bid on the applicant' s contracts . The DBE liaison officer will report directly to the City Manager. 2. The City of Fort Collins shall develop and use affirmative action techniques to facilitate DBE participation in contracting activities. These techniques include: a. Where appropriate, information and communication programs on contracting procedures and specific contracting opportunities will be bilingual . b. Arranging solicitation times for the presentation of bid quantities , specifications and delivery schedules so as to facilitate the participation of DBEs. c. Providing assistance, as may be required by law, to DBEs in overcoming barriers, such as the inability to obtain bond- ing, financing or technical assistance. d. Provide instructions on bid specifications, procurement policy and general bidding requirements . e. Carrying out information and communications programs on con- tracting procedures and specific contracting opportunities in a timely manner (where possible, 20 days before adver- tisement) . f. Where available, encouraging opportunities for the use of banks owned and controlled by minorities. g. Having available a directory or source list to facilitate identifying DBEs with capabilities relevant to general contracting requirements and to particular solicitations . The City shall make the directory available to bidders and pro- posers in their efforts to meet the DBE requirements. h. Insuring that the City' s DBE program benefits only firms owned and controlled by disadvantaged businesses and women . The City shall certify the eligibility of DBEs and joint ventures involving DBEs that are named by the bidders. i . Requiring prime contractors to make good-faith efforts to replace an DBE subcontractor unable to perform successfully with another DBE. j . Requiring City approval of all substitutions of subcontractors before bid opening and during contract performance in order to insure that the substitute firms are eligible DBEs. k. Submission by the City of its overall goals to the department for approval and the publishing of a notice announcing these goals, informing the public of the goals and a description of how they were selected and that they are available for inspec- tion during normal business hours for 30 days. The notice will include addresses to which comments may be sent and shall be published in general circulation media and available minority focus media and trade association publications and shall state that the comments are for informational purposes only. Comments on the goals will be accepted by the Depart- ment of Transportation and the City for 45 days from the date of notice. 1 . The City of Fort Collins will seek DBEs in the area of 50 miles and as part of its efforts to meet the goal shall expand its search to a reasonable wider geographic area of 100 miles . 3. The City of Fort Collins will insure that advertisement for bids will be sent or mailed to minority organizations and firms. 4. The City of Fort Collins will require the apparent successful contractors to submit: a. The names and addresses of DBE firms that will participate. b. Descriptions of the work each named firm will perform. c. The dollar amount of participation of each firm. 5. The City of Fort Collins will require prime contractors to meet the City of Fort Collins' goals, or document good faith efforts if unable to meet the goals . 6. The City of Fort Collins will encourage prime contractors to joint venture with DBEs. 7 . The City of Fort Collins will provide appropriate technical assis- tance. 8. The City of Fort Collins will waive bonding requirements where allowed by state statutes. 9. The City of Fort Collins establishes the overall goal for DBE participation to be 14%. The City will adjust individual contract goals to meet the overall goal . 10. When contracting for supplies, only 60% of the amount spent may be counted toward the overall goals . 11 . The City of Fort Collins will contact SBA, as necessary for pro- viding training seminars and speakers on the requirements for operating a small business. 12. The City of Fort Collins will consider the following factors in setting overall goals: a. Overall goals shall be based on projection of the number and types of contracts to be awarded by the City and paid for with DOT grants, and a projection of the number and types of DBEs likely to be available to compete for contracts from the City over the period during which the goals will be in effect. The City' s goals shall be based on the availability of DBE and on past results of the City of Fort Collins efforts to contract with DBEs and the reasons for the high or low level of those results. 13. The City of Fort Collins will compile an accurate up-to-date directory of DBEs . 14. The City of Fort Collins will review goals at least annually and whenever they expire. 15. The City of Fort Collins will submit separate overall goals and contract goals for the participation of DBEs . Goals for specific contracts will be based on the known availability of qualified DBEs. 16. The City of Fort Collins will annually review and submit new goals for departmental approval . 17. The City of Fort Collins will make a good-faith effort, including extra expense and time, to replace a defaulting DBE with another DBE and will contact available DBE referral services and individual DBEs in an effort to contract the work of the defaulting firm with another DBE , as well as to increase the participation of satisfactory DBEs in the project. The City will provide the substitute DBE with copies or descrip- tions of new or amended contracts and a completed certification form for each new DBE. 18. The City of Fort Collins will search for DBEs in at least the same areas in which they look for non DBE contractors . If there are too few DBEs in the area, it will expand its search in order to make reasonable efforts to meet overall or contract goals. 19. DBEs and DBE joint ventures must be certified as being DBEs or joint ventures by the City or by other DOT Agencies . The City will require Schedule A - Information for Determining Disadvantaged Owned Business Enterprise eligibility or Schedule B - Information for Determining Joint Venture eligibility to be filled out and returned to the City for evaluation . 20. Where permitted by law, the following criteria shall be used to insure that prime contracts are awarded to competitors that meet DBE goals or show good faith efforts to meet DBE goals . a. The City of Fort Collins shall allow the low bidder to receive the contract if it met the DBE contract goals or if it satisfied the City that it has made good faith efforts to do SO. Good faith efforts must be those that one could reasonably expect a contractor to take if the contractor were actively and aggressively seeking to meet the DBE goals. i . Attendance at pre-solicitation or pre-bid meetings that were scheduled by the City to inform DBEs of con- tracting and subcontracting opportunities. 1 ii . Whether the contractor advertised in general circulation, trade association and minority-focus media concerning the subcontracting opportunities at least 20 days before bid or proposals are due. If 20 days are not available, publication for a shorter reasonable time is acceptable. iii . Whether the contractor provided written notice to a rea- sonable number of specific DBEs that their interest in the contract was being solicited , in sufficient time to allow the DBEs to participate effectively, iv. Whether the contractor followed up initial solicitation of interest by contacting DBEs to determine with certainty whether the DBEs were interested . v. Whether the contractor selected portions of the work to be performed by DBEs in order to increase the likelihood of meeting the DBE goals ( including, where appropriate, breaking down contracts into economically feasible units to facilitate DBE participation) . vi . Whether the contractor provided interested DBEs with adequate information about plans , specification , and requirements of the contract . vii . Whether the contractor negotiated in good faith with interested DBE not rejecting DBEs as unquali- fied without sound reasons based on a thorough investiga- tion of their capabilities . viii . Whether the contractor made efforts to assist interested DBEs in obtaining bonding, lines of credit, or insurance required by the recipient or contractor. ix. Whether the contractor effectively used the services of available minority community organizations , minority, contractors groups; local , state and Federal minority business assistance offices. , and other organizations that provide assistance in the recruitment and placement of DBEs. b. Competitors that failed to demonstrate sufficient good faith efforts to reach DBE goals shall not be eligible to be awarded the contract. 21 . To insure that all obligations under contracts awarded to DBEs are met, the City shall review the contractors DBE involvement efforts during the performance of the contract. The contractor shall bring to the attention of the City any situation in which regularly scheduled progress payments are not made to DBE subcontractors . 22. Subrecipients, Contractors and Subcontractors will comply with applicable DBE requirements. C. MAINTENANCE OF RECORDS AND REPORTS The City of Fort Collins in order to monitor the progress of its program, shall develop a record keeping system which will identify and assess DBE contract awards , prime contractors progress in achieving DBE subcontract goals and other DBE affirmative action efforts. Records and reports will be categorized separately for minority and female owned firms and Section 8 (a) contractors. The City shall maintain records showing: 1 . Procedures which have been adopted to comply with the requirements; 2. Awards to DBEs. These awards shall be measured against projected DBE awards or DBE goals. To assist in this effort , the City shall obtain regular reports from prime contrac- tors on their progress in meeting contractual DBE obligations. 3. Specific efforts to identify and award contracts to DBEs; 4. Records shall be available upon the request of an authorized officer or employee of the government; and 5. The City shall submit reports conforming in frequency and format to existing contract reporting requirements of the applicable departmental element. Where no such contract reporting require- ments exist, DBE reports shall be submitted quarterly. These reports shall include as a minimum: a. The number of contracts awarded to DBEs; b. Description of general categories of contracts awarded to DBEs; c. The dollar value of contracts awarded to DBEs; d. The percentage of the dollar value of all contracts awarded during this period which were awarded to DBE; and e. Indication of whether and the extent of which the percentage met or exceeded the goal specified in the application . III - CHALLENGE AND COMPLIANCE PROCEDURES, ENFORCEMENT A. CHALLENGE PROCEDURE 1. Any third party may challenge the socially and economically dis- advantaged status of any individual (except an individual who has a current 8 (1) certification from the Small Business Administration) Presumed to be socially and economically disadvantaged if that individual is an owner of a firm certified by or seeking certifica- tion from the recipient as a disadvantaged business. The challenge shall be made in writing to the City of Fort Collins . 2. With its letter, the challenging party shall include all informa- tion availablt to it relevant to a determination of whether the challenged pary is in fact socially and economically disadvantaged . 3. The City of Fort Collins shall determine, on the bais of the information provided by the challenging party, whether there is reason to believe that the challenged party is in act not socially and disadvantaged. i . If the City of Fort Collins determines that there is not reason to believe that the challenged party is not socially and economically disadvantaged , the City shall so inform the challenging party in writing. This terminates the proceeding. ii . If the City determines that there is reason to believe that the challenged party is not socially and economically dis- advantaged, the City shall begin a proceeding as provided in paragraphs (4) , (5) , and (6) of this Section . 4. The City shall notify the challenged party in writing that his or her status as a socially and economically disadvantaged individual has been challenged . The notice shall identify the challenging party and summarize the grounds for the challenge. The notice shall also require the challenged party to provide to the City. within a reasonable time, information sufficient to permit the recipient to evaluate his or her status as a socially and economi- cally disadvantaged individual . 5. The City shall evaluate the information available to it and make a proposed determination of the social and economic disadvantage of the challenged party. The City shall notify both parties of this proposed determination in writing, setting forth the reasons for its proposal . The City shall provide an opportunity to the parties for an informal hearing, at which they can respond to this proposed determination in writing and in person , 6. Following the informal hearing, the City shall make a final deter- mination . The recipient shall inform the parties in writing of the final determination , setting forth the reasons for its decision . 7 . In making the determinations called for in paragraphs (3) , (5) and (6) of this Section , the City shall use the standards set forth in Appendix B. 8. During the pendency of a challenge under this section , the presump- tion that the challenged party is a socially and economically disadvantaged individual shall remain in effect. 9. The final determination of the recipient under subparagraphs (3) (i ) and (6) of this Section may be appealed to the Department by the adversely affected party to the proceeding under the procedures . B. COMPLAINTS Any person who believes himself or herself, another person or any specific class of individuals to be subjected to a violation of this policy may file a complaint in writing, signed and dated with the department. The complaint shall be filed no later than 180 days after the date of an alleged violation or the dates on which continuing course of conduct in violation of this policy was disclosed. No recipient, contractor or other person shall intimidate, threaten, coerce, or discriminate against any individual for the purpose of interfering with any right or privilege secured by this part or because he or she made a complaint, testified, assisted or participated in any manner in an investigation , preceeding or hearing under this part. But when such confidentiality is likely to hinder the investiga- tion, the complainant shall be advised for the purpose of waiving the privilege. C. COMPLIANCE REVIEWS All compliance reviews conducted after financial assistance has been approved or contracts have been awarded begin with a desk audit . The desk audit is a review of all material and information concerning the Cit,y' s DBE performance. An on site review includes interviews, visits to projects or facility sites receiving DOT funds and inspection of any statistical or docu- mentary materials relevant to the City' s performance which were not available for review during the desk audit. The City shall cooperate fully with these reviews . Failure or refusal to furnish requested information or failure to cooperate is a violation of this part. IV - DBE DIRECTORY The Colorado Minority Business Enterprises Directory, October, 1988, as prepared by the Colorado Office of Minority Business Enterprise, 1550 Lincoln Street, Denver, Colorado, 80203, in cooperation with the Colorado Highway Department, is hereby made a part of this plan for the City of Fort Collins . Copies of the Directory are available for review in the office of the City Clerk and Purchasing Division, APPENDIX B - GUIDANCE FOR MAKING DETERMINATIONS OF SOCIAL AND ECONOMIC DISADVANTAGE (From the Federal Register/Vol . 48 , No. 141/Thursday, July 21 , 1983) Before making any determination of social and economic disadvantage , the recipient should always determine whether a firm is a small business concern. If it is not , then the firm is not eligible to be considered a disadvantaged business , and no further determinations need be made. Under the definition of "socially and economically disadvantaged individ- ual " used in Subpart D of this Part , members of the name groups (Black Americans , Hispanic Americans, Native Americans, Asian Pacific Americans , and Asian Indian Americans) and persons certified as socially and econom- ically disadvantaged by the Small Business Administration ( SBA) under the SBA's section 8( a) program are presumed to be both socially and economical - ly disadvantaged this presumption is rebuttable . This means that , as part of a challenge to the eligibility of a firm a recipient has certified under §23.69 of this regulation , a third party may present evidence that the firm' s owners are not truly socially and/or economically disadvantaged , even though they are members of one of the presumptive groups. Recipients must follow the challenge procedure in §23.69 when a challenge is made , using this Appendix for guidance in making determinations under that procedure. Under the regulation, anyone who has been certified by SBA under its 8(a) program as socially and economically disadvantaged is automatically con- sidered to be a socially and economically disadvantaged individual for purposes of this regulation . However, the absence of an 8(a) certification does not mean that an individual or firm is ineligible under this regula- tion . Recipients should continue the existing practice of making their own judgements about whether an individual is in fact a member of one of the presumptive groups. If an individual has not maintained identification with the group to the extent that he or she is commonly recognized as a group member, it is unlikely that he or she will in fact have suffered the social disadvantage which members of the group are presumed to have experienced. If an individual has not held himself or herself out to be a member of one of the groups , has not acted as a member of a community of disadvantaged persons, and would not be identified by persons in the population at large as belonging to the disadvantaged group, the individual should be required to demonstrate social disadvantage on an individual basis. For example, an individual could demonstrate that he had a Chinese an- cestor. However, this hypothetical person has never lived in a Chinese- American community, has held himself out to be white for driver' s license or other official records purposes, has not previously claimed to be a Chinese-American, and would not be perceived by others in either the Chinese-American community or non-minority community to be a Chinese- American (or any other sort of Asian-Pacific American) by virtue of his appearance, culture, language or associations . The recipient should not regard this individuals as an Asian-Pacific American . Individuals who are not presumed to be socially and economically disadvan- taged by virtue of membership in one of these groups may, nevertheless , be found to be socially and economically disadvantaged on a case-by-case basis. If an individual requests that his or her business be certified as an eligible disadvantaged business under Subpart D, the recipient , as part of its certification process , is responsible for making a determination of social and economic disadvantage. In making determinations of social and economic disadvantage, recipients should be guided by the following standards, which have been adopted from materials prepared by the SBA. A. Social Disadvantage 1 . Elements of Social Disadvantage. In order to determine that an individual is socially disadvantaged , the recipient must conclude that the individual meets the following standards: a. The individuals social disadvantage must stem from his or her color; national origin; general physical handicap; long-term residence in an environment is isolated from the mainstream of American society, or other similar cause beyond the individ- ual ' s control . The individual cannot establish social disad- vantage on the basis of factors which are common to small business person who are not socially disadvantaged . For example, because of their marginal financial status , many small businessess have difficulty obtaining credit through normal banking channels. An individual predicating a social disadvan- tage claim on denial of bank credit or his or her firm would have to establish that the denial was based on one or more of the listed causes, or similar causes-not simply on the individ- ual ' s or the firm' s marginal financial status. b. The individual must demonstrate that he or she has personally suffered social disadvantage , not merely claim membership in a non-designated group which could be considered socially disad- vantaged . This can be achieved , for example, by describing instances of discrimination which the individual ,has experi- enced , or by recounting in some detail how his or her develop- ment in the business world has been thwarted by one or more of the listed causes or similar causes . As a general rule , the more specific an explanation of how one has personally suffered social disadvantage, the more persuasive it will be. In assessing such facts, the recipient should place substantial weight on prior administrative or judicial findings of discrim- ination experienced by the individual . Such findings , however, are not necessarily conclusive evidence of an individual ' s social disadvantage; nor are they a prerequisite for establish- ing social disadvantage. c. Business History. The recipient should consider, as evidence of an individual ' s social disadvantage, unequal access to credit or capital ; acquisition of credit under unfavorable circumstances; discrimination by potential clients ; exclusion from business or professional organizations; and other similar factors which have retarded the individual ' s business develop- ment. B. Economic Disadvantage Recipients should always make a determination of social disadvantage before proceeding to make a determination of economic disadvantage. If the recipient determines that the individual is not socially disadvantaged , it is not necessary to make the economic disadvantage determination . As a general rule, economically disadvantaged individuals are socially disadvantaged individuals whose ability to compete in the free enter- prise system has been impaired due to diminished capital and credit opportunities, as compared to others in the same or similar line of business and competitive market area who are not socially disadvan- taged. In determining the degree of diminished credit and capital opportunities of a socially disadvantaged individual , consideration will be given to both the disadvantaged individual and the applicant concern with which he or she is affiliated . In considering the economic disadvantage of firms and owners, it is important for recipients to understand that they are making a compara- tive judgement about relative disadvantage . Obviously, someone who is destitute is not likely to be in any position to own a business . The test is not absolute deprivation, but rather disadvantage compared to business owners who are not socially disadvantaged individuals and firms owned by such individuals . It is the responsibility of applicant firms and their owners to provide information to the recipient about their economic situation when they seek eligibility as disadvantaged businessess. Recipients are encour- aged to become a knowledgeable as they can about the types of busi- nessess with which they deal , so that they can make reasonably informed comparison between an applicant firm and other firms in the same line of business. Recipients are not required to make a detaiiled , point-by- point , accountant-like comparison of the businessess involved . Recip- ients are expected to make a basic judgement about whether the applicant firm and its socially disadvantaged owner(s) are in a more difficult economic situation than most firms ( including established firms) and owners who are not socially disadvantaged . Other Eligibility Considerations It is very important for recipients to realize that making a determination of social and economic disadvantage, standing alone, does not mean that a firm is eligible. The recipient must also determine that the firm is 51 percent owned by socially and economically disadvantaged individuals and that these individuals control the firm. In making these latter determina- tions recipients should continue to follow 23 .51-23 .53 of Subpart C of 49 CFR Part 23. If a firm or other party believes that any recipient' s social and economic disadvantage determination is in error, the firm or party may make an administrative certification appeal to the Department as provided in 49 CFR §23.55. SCHEDULE A INFORMATION FOR DETERMINING DISADVANTAGED BUSINESS ENTERPRISE ELIGIBILITY 1. NAME OF FIRM 2. Address of Firm 3. Phone Number of Firm 4. Indicate whether firm is sole proprietorship, partnership, joint venture, corporation or other business entity (please specify) 5 . Nature of Firm' s Business 6 . Years Firm has been in business 7 . Ownership of firm: Identify those who own 5 percent or more of the Firm' s ownership. Columns "e" and "f" need to be filled out only if the firm is less than 100 percent minority owned . a b c d e f Name Race Sex Years of Ownership Voting Ownership Percentage Percentage With firms less than 100 percent minority owned , list the contributions of money, equipment, real estate, or expertise of each of the owners. 8. Control of firm: (a) identify by name, race, sex, and title in the firm those individuals (including owners and non-owners) who are responsible for day-to-day management and policy decisionmaking, including, but not limited to, those with prime responsibility for (if the firm has a current 8 (a) certification from the Small Business Administration, evidence of the certification should be attached) . (1) Financial decisions (2) Management decision, such as-- a. Estimating b. Marketing and Sale c. Hiring and firing of management personnel d. Purchases of major items or supplies (3) Supervision of field operation 9. For each of those listed in question 8,provide a brief summary of the person' s experience and, number of ,years with the firm, indicating the person' s qualifications for the responsibilities given him or her. the responsibilities given him or her. 10. Describe or attached a copy of any Stock options or other ownership options that are outstanding , and any agreements between owners or between third parties which restrict ownership or control of minority owners. 11 . Identify any owner (see item 7) or management official (see item ) of the named firm who is or has been an employee of another firm that has an ownership interest in or a present business relationship with the name firm. Present relationships include shared space, equipment, financing, or employees as well as both firms having some of the same owners. 12. What are the gross receipts of the firm for each of the last two years? Year ending $ Year ending $ 13. Name of bonding company, if any; Bonding limit Source of letters of credit, if any 14. Are ,you authorized to do business in the state as well as locally, including all necessary business licenses? 15. Indicate if this firm or other firms with any of the same officers have previously received or been denied certification or participation as an DBE and describe the circumstances. Indicate the name of the certifying authority and the date of such certification or denial . AFFIDAVIT "The undersigned swears that the foregoing statements are true and correct and include all material information necessary to identify and explain the operations of (name of firm) as well as the ownership thereof. Further, the undersigned agrees to provide through the prime contractor or, if no prime, directly to the grantee current, complete and accurate information regarding actual work performed on the project, the payment therefor and any proposed changes , if any, of the foregoing foregoing arrangements and to permit the audit and examination of books, records and files of the name firm. Any material misrepresentation will be grounds for terminating any contract which may be awarded and for initiating action under Federal or State laws concerning false statement." NOTE lf, after filing this Schedule A and before the work of this firm is completed on the contract covered by this regulation , there is any significant change in the information submitted , you must inform the grantee of the the change through the prime contractor or, if no prime contractor , inform inform the grantee directly. Signature Name Title Date Corporate Seal (where appropriate) . Date State of County of On this. dap of 19 before me appeared (name) to me personally known, who being duly sworn, did execute the foregoing affidavit, and did state that he or she was properly authorized by (name of firm) to execute the affidavit and did so as his or her free act and deed . ( Seal ) Notary Public Commission Expires SCHEDULE B INFORMATION FOR DETERMINING JOINT VENTURE ELIGIBILITY (This form need not be filled in if all joint venture firms are owned by Disadvantaged Business Enterprises.) 1 . Name of Joint venture 2 . Address of Joint venture 3. Phone number of Joint venture 4. Identify the firms which comprise the joint venture.(The DBE partner must complete Schedule A.) (a) Describe the role of the DBE firm in the joint venture _ (b) Describe very briefly the experience and business qualifications of each non-DBE joint venturer: 5. Nature of the joint venture' s business 6. Provide a copy of the joint venture agreement. 1. What is the claimed percentage of DBE ownership? 8. Ownership of joint venture: (This need not be filled in if described in the joint venture agreement provided by question 6.) (a) Profit and loss sharing . (b) Capital contributions, including equipment . (c) Other applicable ownership interests. 9. Control of and participation in this contract , identify by name,race, sex, and "firm" those individuals (and their titles) who are responsible for day-to-day management and policy decisionmaking, including, but not limited to those prime responsibility for: (a) Financial decisions (b) Management decisions, such as: (1) Estimating (2) Marketing and Sales (3) Hiring and firing of management personnel (4) Purchasing of major items or supplies (c) Supervision of field operations NOTE If, after filing this Schedule B and before the completion of the joint venture' s work on the contract covered by this regulation , there is any significant change in the information submitted , the joint venture must inform the guarantee , either directly or through the prime contractor if the joint venture is a subcontractor. AFFIDAVIT "The undersigned swear that the foregoing statements are correct and include all material information necessary to identify and explain the terms and operation of our joint venture and the intended participation by each joint joint venturer in the undertaking. Further, the undersigned covenant and and agree to provide to the grantee current, complete and accurate information regarding actual joint venture work and the payment therefor and any proposed changes in any of the joint venture arrangements and to permit the audit and examination of the books, records and files of the joint venture, or those of each of joint venturer relevant to the joint venture, by authorized representatives of the grantee of the Federal funding agency. Any material misrepresentation will be grounds for terminating and contract which may be awarded and for initiating action under Federal or State laws concerning false statements ." NAME OF FIRM NAME OF FIRM SIGNATURE SIGNATURE NAME NAME TITLE TITLE DATE DATE Date State of County of On this day of 19 , before me appeared (name) to be personally known, who, being duly sworn did execute the foregoing affidavit, and did state that he or she was property authorized by (name of firm) _ to execute the affidavit and did so as his or her free act and deed . Notary Public Commission expires ( Seal )